Annual General Meeting 2022 - PowerPoint Presentation

1. Annual General Meeting 202217th March 2022 Held VIRTUALLY VIA GoTo Webinar Platform, supported by ABCUL(Association of British Credit Unions)

2. Welcome to the 33rd Annual General Meeting of Salford Credit UnionJack Youd, Chair of Salford Credit Union

3. QuorumRule 94- 15 members of the Credit Union shall constitute a Quorum

4. AGENDAQuorum for AGM confirmed and any apologies for absence Welcome by Chair of Board of Directors and approval of agenda Approval of Minutes of AGM of March 2021 Presentation of Annual Report from Board of Directors Chair’s report, Secretary’s Report, Credit Committee Report, Treasurer’s Report Supervisory Committee Report Presentation of Auditor’s Report and Accounts Declaration of surplus available of distribution and Board of Directors’ recommendationAppointment of Auditors Motions- none received Elections Close of formal AGM Business 

5. Minutes from 11th March 2021 AGM: SUMMARYWelcome & Quorum confirmed; 2020 AGM Minutes summarised - approved Reports from Chair, Secretary, Credit Committee and Acting Treasurer- all approvedDeclaration of Surplus available for distribution : £7995. No Dividend recommended- approvedAppointment of Auditor: Lindley Adams re-appointed.Delegation of Power to grant interim dividend and set interest rates- agreedMotions: none receivedElections: Alec McFadden & Jack Youd: re-elected as DirectorsWilson Nkurunziza and Haroon Majid: elected as DirectorsMike Dyson was elected as SupervisorClose of Formal AGM business

6. Minutes 11/03/21 AGM: VOTING1 Does the membership agree the minutes of last year’s AGM are a true and accurate record?YesNoAbstain- I did not attend last year

7. Acting Chair’s Report- Jack Youd2020/2021- responded positively to challenges of Covid since Spring 2020Focussed on keeping services going and operating safelyKey services maintained despite Covid; services provided online, phone and post Office generally closed to public, members now seen by appointment Covid grants gave confidence to invest in improved services & productsDownwards trends of previous year now being reversed:Savings up 8%New membership up 15%Loans increased- 39% in number, 22% in valueAt 30/09/2021: £1,252,862 out on loan-highest amount for 7 years+Savings increased-to £3m! Many members told us their CU savings were a lifeline

8. Acting Chair’s Report- 22020/21 saw changes in team personnelSam Owen left in February. Muntazir Shah joined in May as new Finance OfficerPaul Wilde joined via the Kickstart Scheme as Junior Office AdministratorChanges also at Board level Jim King stood down after 9 years loyal serviceMember David Warburton-Broadhurst co-opted (April) and elected Chair (July) but resigned October.I was elected Chair in October- been an active Director since 2014 New Director co-opted September 2021: Philip HowcroftVery sadly some members passed away in 2021, including former colleague Lynda Hunt A moment to remember them and offer thanks for their lives

9. Acting Chair’s Report- 3Continue to work with many supportive partners-Particular thanks to Salford City Council and Pendleton TogetherWork with CU4GM Consortium: 60,000+ members, £40m AssetsSalford Family Loan launched November 2020- meets local needs, helped 500+ families build savingsSystems improved to help members:For 2021/22 Continue to offer the Salford Family LoanImprove Payroll membership offer and work with more partnersImprove services to help existing MembersStrong performance overall- another year of People Helping People Despite Covid we achieved £24,281 surplus includes Covid Grants of £22.7k to strengthen capital and meet Regulators’ targetsNot recommending Dividend this year but positive signs of growth for the future.We encourage all members to use SCU for savings and loans and please tell your friends how we can helpTHANK YOU to all members, volunteers, staff and fellow Directors for all your support Jack Youd-Electronic Signable forms and Open Banking introduced-More improvements underway, supported by SCC IT colleagues: strengthening cyber securityGM Month of Awareness October 2021

10. Chair’s Report- VOTING2 Does the membership approve the Chair’s report?YesNo

11. Secretary’s Report- Alec McFaddenMember & Director for over 10 years- Company Secretary or Treasurer, currently Secretary & Acting TreasurerDespite Covid & Lockdowns- focussed on providing services to membersRetained loyal membership and recruited 529 moreMany new members finding Family Loan helpful-532 loans providedBy end September 2021: 4066 Adult members and 257 Juniors

12. Secretary’s Report- 2Regulatory Developments attended to as requiredRegulatory returns to Bank of England and FCACompliance with regulations a standing item on agendaIn accordance with 2016 Rule Book for Credit Unions I CONFIRM TO CREDIT UNION MEMBERS that:We comply with Single Customer View requirements; in event of closure all necessary data can be provided within required timescalesThe Credit Union maintains adequate insuranceBoard & Volunteer DevelopmentsBoard met monthly as required- some via Zoom; includes two new directors elected at 2021 AGM- Wilson Nkurunziza and Haroon MajidJim King stood down as Chair in July after many years service New Director David Warburton- Broadhurst (co-opted April) elected Chair but resigned OctoberJack Youd elected Acting Chair in OctoberNew Director Philip Howcroft co-opted November 2021Annual Board Awayday July 2021, supported by Paul Jones Liverpool John Moores UniversitySome Volunteers now helping again in the office- looking forward to seeing more of them in 2022

13. Secretary’s Report- 3Marketing developments in 2022Covid meant we couldn’t be represented at local events as in previous years but did develop other approachesVideo made for Black History Month- now on our NEW SCU youtube channelAdvert created for Salford City Radio and on Gladiator Football website, on Salford City FC pageAdvert in the Salford Weekly Advertiser and on Albion School Parent’s Information folderWorked with CU4GM on Month of Awareness in OctoberRegular Social media campaignsFuture plans- more promotions, including with supportive partners- Salford City Council, Housing Associations, payroll partners and leaflets across the City including Salford Libraries and McDonaldsSome Volunteers now helping again in the office- looking forward to seeing more of them in 2022PLEASE ENCOURAGE ALL YOUR FRIENDS, NEIGHVOURS AND WORK COLLEAGUES- to join Salford Credit Union, to help themselves and help our local communityAlec McFadden

14. Secretary’s Report- VOTING3 Does the membership approve the Secretary’s report?YesNo

15. Credit Committee ReportFirst year of Covid saw reduction in demand for loans for most CUsSCU saw major downturn in 2019/20 figuresTo help local people during Covid- SCU developed Salford Family Loan: 500+ now benefittedIN TOTALHelped more people than in previous year2291 loans granted (39% up on 1649) and £1m lent (22% up on £822,634 lent in 2019/20)Over 80% of loans less than £10004%- holidays, 9%- car purchase/repairs, 10%- Xmas, 21%- Home improvements/ goods, 31%- Family Loan/Top upLoan book was £1.253m by end September and 1577 of our members had loans (38%)Loan book now highest in recent years and maintained above £1m since Sept 2018

16. Credit Committee Report: Credit ControlCREDIT CONTROL -address historic bad debts and reduce new onesCovid has impacted on some members- had to take on IVAs (Individual Voluntary Arrangements) or DROs (Debt Relief Orders)Responsible provision for bad debts- financial climate uncertainOffered some members Loan Repayment Holidays- when members contact us we try to find a way forwardDebt collection processes applied sensitively- working with our members Aim to help members when we canImportant we speak to members: missed payments and defaults can affect Credit ScoreWe can refer members for advice- eg to CAB, Salford Welfare Rights and Salford Unemployed Resources Centre THANK YOU to all our members who repay their loans in line with their loan agreementsHERE TO HELP OUR MEMBERSWe ask all members to save builds their financial resilience May have savings available if we can’t offer loan or we return savings if in member’s best interestsCredit Union now uses full Credit ScoringMembers build their Credit Score with every loan repayment made on timeImproved credit rating may be better able to access other financial servicesAll loans considered individually- in light of regulations and current policiesUnlike other lenders- always aim to put members’ needs first

17. Credit Committee ReportDEVELOPMENT WORKNew Loan calculator on website. New Join & Borrow Form; online systems invaluable with LockdownStill plan to offer App; researched and piloted Family Loan & Savings Plan- launched November 2020OUR LOANSAll our loans- Personal Loan, Payroll Loan, Savers Secure loan and Family Loan are really competitiveWe save our members money each time they borrow with usAnd all our members keep building their savings while paying back their loansWe estimate we saved our members £1.5m -£3m last year compared to doorstep lenders or credit cards That money stays in our members’ pockets and in our local economyThe Credit Union is currently cash rich and can now consider loans up to £10,000 Please encourage more of your friends and family to use the Credit Union for their borrowing needs! Mark Brazendale

18. Credit Committee Report- VOTING4 Does the membership approve the Credit Committee report?YesNo

19. Acting Treasurer’s Report: Alec McFadden 1The report is based on the Audited Accounts for the year ended 30 September 2020Our External Auditors, Lindley Adams Ltd, provided an Unqualified Audit Report, confirmed Proper books of accounts kept in accordance with legislationThey received all information and explanations necessary to complete the auditNo Going Concern issuesSurplus of £24,281 (includes £20k grant towards reserves) Savings – continued to grow, now over £3m- trusted by our members £20k grant released, part of Covid responseLoan interest income rose by 2.4% to £228,455. 2.4% increase on previous year despite the earlier impact of CovidLoan book increased by 6% to £1,252862 Bank interest reduced by 39% - due to historically low interest rates Administrative expenses increased by 4.7%- £7932; increase in supplies, fees and employment costs Bad Debts decreased compared to previous years- impairment costs down from £55k to £24k- reflects very cautious approach and strong board focus

20. Acting Treasurer’s Report- 2 I confirm we continued to meet all regulators financial targets Includes critical capital to asset ratio: 6.62% at 30th September 2021The minimum is 3% for a credit union to remain a going concernNew PRA guidance for 2020 and Covid risks- if fall below 5% then extra regulatory scrutiny. 5% threshold remains key SCU targetNeed to retain reserves as we continue to respond to the impact of Covid, increased cost of living and other uncertainties with risk of higher bad debts. Now have Risk & Finance Committees doing extra work Aim to increase loan income over coming year, with Family Loans & Savings product and more promotion of Personal & Payroll loansSurplus of £24k includes £20k grant so not sufficient to offer a dividend this year but further growth will make this realistic for future years.Overall I confirm the Credit Union remains in stable financial position and on solid platform to deliver growthAlec McFadden

21. Acting Treasurer’s Report- VOTING5 Does the membership approve the Acting Treasurer’s report?YesNo

22. Supervisory Committee Report- Paul HartSupervisory Committee has role as ‘eyes and ears’ of Credit Union members make sure the right things are being done in the right wayKey activity: attend monthly Board meetings including Annual meeting with Accountants. We get access to all reports, monitor progress, ask questions and request further information. Also:Check Board minutesEnsure Treasurer makes monthly reportsEnsure Board is updated on new and closed accountsCheck regulator’s targets and guidance are metEnsure annual audit is in hand and any queries responded to appropriatelyCheck any conflicts of interest are consistently consideredWe have also attended the new Risk & Finance CommitteesWe have provided feedback throughout the year to ensure the success of the Credit Union and interest of members’ remains at the heart of all decisions During the year we also carried out other checks on specific areas which we judged to be critical to the Credit Union’s effective operationsAny potential improvement areas referred to team and adopted.

23. Supervisory Committee Report-2Review of lending decisions: central to Credit Union operationsreviewed samples of loans including new loans and those ‘gone bad’ Looked at documentation and process to ensure consistent with policy and no exposure to excess riskChecked any staff and Directors’ loans Specific review of Family Loan accounts including systems and processesChecks confirmed satisfactory complianceReviewed processes for opening and closing accounts and deposits and withdrawalsIncluded random checks on individual accounts as well as Staff & Directors’ AccountsCarried out comprehensive review of Provisioning for Bad Debts- major risk. Confirmed compliance with PRA guidance. Previous Early Warning System recommended now well embedded Supervisors checked how the Board responded to Covid challenges and please to see early actions taken to keep members, staff and volunteers safe, with Trade Body and regulars guidance followedMaintained awareness of Annual Audit process and note that good transparency with Auditors. Note that increasingly documents stored electronically, enabling remote checks. Auditors now using messaging app for member checks, increases response rate and provides further assurance.Overall we believe the Credit Union is fulfilling its role and striving for improvement and we look forward to playing an active role on behalf of all members over the coming yearIf you have relevant experience and want to join this Committee please get in touch! Paul Hart

24. Supervisor’s Report- VOTING6 Does the membership approve the Supervisor’s report?YesNo

25. Presentation of external Auditor’s report & Accounts Auditors- Lindley Adams, Halifax, applying FRS 102Director’s Report:Confirms principle business: encourage saving & prudent borrowing by membersConfirms results, for surplus & membershipConfirms Directors serving for the YearSets out Financial risk management objectives and policiesSigned statement of Directors’ responsibilitiesReport of independent AuditorsRevenue Account, Balance sheet, Statement of changes to retained earnings, Cash flow statement and Notes to financial statementsConfirm a true and fair view of CU affairsEXTRACT presented below:

26. Revenue Account for the year ended 30 September 2021         2021                  2020££Loan Interest receivable and similar income228,455223,107Interest payable00Net interest income228,455223,107Net fees and commissions payable(5,451)(2,673)Other income22,70385,646Administrative expenses(175,739)(167,807)Depreciation and amortisation(43)(43)Other operating expenses(20,807)(19,996)Impairment gains (losses) on loans to members(24,158)(55,143)Surplus Before Taxation24,96063,096Taxation(679)(1096)Surplus for the Financial Year24,28161,995Movement in Reserves  GeneralLloyds Deferred    ReserveDev FundSharesTOTAL   _______ ________________As at 1 October 2020135,88054,0007,000196,880 Surplus for the year  24,28100As at 30 September 2021160,16154,0007,000221,161

27. Balance Sheet as at 30 September 2020        2021                   2020ASSETS££Loans and advances to banks2,333,5002,111,881 Loans and advances to members998,644904,235Tangible fixed assets043 Prepayments and accrued income6,8233,006Total assets3,338,9673,055,165LIABILITIES  Subscribed capital - repayable on demand3,043,7822,815,814Other payables74,02442,471------------------------------------------------------3,117,8062,858,285Retained earnings221,161196,880Total liabilities3,338,9673,055,165Effect on Regulatory CapitalRegulatory Capital is made up of; ££General Reserve 160,161135,880Lloyds Development Fund 54,00054,000Deferred Shares 7,0007,000CapitalA221,161196,880This is divided by;   Total Assets B3,338,9673,055,165CAPITAL TO ASSETS RATIO (A / B X 100):6.62%6.44%

28. Presentation of external Auditor’s report & Accounts: VOTING 7 Does the membership approve the Audited Accounts for the year 2020/21? YesNo

29. Declaration of surplus available for Distribution and Board of Director’s recommendation of application of sameSurplus available for Distribution- £ 24,281Directors have calculated that because this includes £20k of grant towards reserves the remaining balance would not enable enough of a dividend for our 4066 membersBoard’s Recommendation: transfer surplus to general reserves

30. Declaration of surplus available for Distribution and Board of Director’s recommendation: VOTE8 Does the membership approve the Board’s recommendation to not pay a dividend in this financial year? YesNo

31. Appointment of AuditorsThe Board of Directors recommended that: Lindley Adams Ltd, Chartered Accountants and Statutory Auditors of 28, Prescott Street HalifaxShould be retained as auditor to Salford Credit UnionMEMBERS REQUESTED TO AGREE TO RETAIN LINDLEY ADAMS LTD

32. Appointment of Auditors: VOTE9 Does the membership approve the Board’s recommendation to re-appoint Lindley Adams as our auditors for the current financial year?YesNo

33. Motions:No motions submitted by Board or Members

34. Elections:BOARD OF DIRECTORS: The following nominations have been received and are supported by the Board of DirectorsKaren BurnsMiranda ClarkePhilip HowcroftMEMBERS REQUESTED TO VOTE ON EACH OF THESE NOMINATIONS

35. Any Questions for the Board?

36. CLOSE OF FORMAL AGM BUSINESSTHANK YOUTo all members, past and present for your attendance and supportFrom the Directors, staff and volunteers of Salford Credit UnionStay safe and we hope to see you in person next year…..