1. Art and Diseño

Table of Contents
Notice of Meeting ......
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Welcome address ......
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Minutes of the 7th AGM held on January 9, 2014
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Board of Management's Report ......
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Supervisory Committee Report ......
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Loans Committee Report
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Financial Statements for the period ending June 30, 2014 ......
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What you need to know ......
GRACCU
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8th Annual General Meeting
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G R A CO-OPERATIVE CREDIT UNION LIMITED
NOTICE OF MEETING
Members of the Board of Management of the GRA Co-operative Credit Union
th
Limited (GRACCU) do hereby give notice to all members that the 8 Annual
General Meeting is to be held on Thursday January 29, 2015 at the College of
Physicians and Surgeons Conference Hall, at 10.00 a.m. prompt.
Agenda
1. Confirmation of the previous Annual General Meeting minutes.
2. Report of Chairman of the Management Board.
3. Presentation of Auditor's Report
4. Discussion of Reports
5. Any other Business
6. Adjournment Sine die
Credit Union Song
It's a small world after all (3 times)
It's a small, small world
It's a small world after all
It's a world of laughter
It's a world of tears and cheers
It's a Credit Union World
GRACCU
8th Annual General Meeting
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LOANS COMMITTEE
GRACCU MANAGER
Mark Yeboah
GRACCU
8th Annual General Meeting
5
Welcome Address
BY MR. GODWIN AARON MONYO
Chairman, Board of Management of
Ghana Revenue Authority Cooperative Credit Union (GRACCU)
M
r. Chairman, distinguished invited guests, fellow members of the happy
th
th
family, the occasion today Thursday the 29 of January, 2015 is the 8
Annual General Meeting of the Ghana Revenue Authority Co-operative
Credit Union Ltd. (GRACCU). With the greatest pleasure, I welcome you all on
behalf of the Board of Management and on my own behalf, to this memorable
occasion. I describe it as memorable because it marks the end of a tenure of four years
and at the same time it is going to usher in another lap of four long years. Kindly rise up
with me for one minute to silently acknowledge God for the abundant grace and
favour He has bestowed on us.
The theme for this Annual general meeting, Mr. Chairman, is “Personal Savings,
Organizational Good- Past, Present and Future”. This theme has been carefully
chosen to reflect the role of credit unions in the development of the individuals,
organizations and nations.
The complementary role of GRA Credit Union in the socio-economic development of
the GRA workers cannot be over emphasized. The credit union complements the
efforts of the Authority significantly in making readily available monies to member
staff for their personal development, for their businesses, housing projects and in
emergencies like hospitalization and funerals.
Mr. Chairman this annual general meeting is special because our collective decisions
today will determine the future of our cherished credit union. We shall be electing a
new management team to take over the affairs of the union. In taking this critical
decision we need to take stock of activities during the period under review and
perhaps take an eye view of the quadrennial period which is ending today.
As I have always referred to, in the words of Mrs. Rejoice Kwawu of the Department
of Co-operatives “An annual general meeting is an occasion of serious stock taking.
The leaders are given the opportunity to tell the members how well or badly they have
managed the organization entrusted into their care. It is also an occasion for the
GRACCU
8th Annual General Meeting
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members to renew or revoke their confidence in leadership”. This is exactly what we
are here to do.
Fellow Co-Operators, to refresh your memories, four years ago the current
management took over from Alifui-Segbaya led administration in a democratic
st
election held on 21 January 2010. The Alifui-Segbaya led Board handed over to us
quite a solid foundation with total assets of GH¢1.2 million and a functioning
permanent office and two (2) staff with a total membership of 1,107.
Mr. Chairman, in our collective resolve to improve upon what had been bequeathed to
us, the current board which will be stepping aside very soon, hit the ground running,
and initiated various actions and activities, and permit me to mention just a few here:
!
A nationwide education campaign was launched and pursued vigorously by
Management when they took over. It was aimed at creating staff awareness on
the existence of the Union and to bring to their knowledge the merits of
making savings using the credit union platform. This saw a leap in
membership which now stands at 4,630 and a corresponding increase in total
assets which stands at GH¢30.5million.
!
Following the passage of ACT791 which established the Ghana Revenue
Authority, the Management Board on assuming office quickly moved to have
the name changed from IRS Co-operative Credit Union to Ghana Revenue
Authority Credit Union (GRACCU). This rebranding was successfully
th
launched on 10 November, 2010 at Kwofie Gardens- Customs Division Head
Office.
!
It is gladdening to note that, GRACCU was the first among all various
associations and groupings within the erstwhile Revenue Agencies to embrace
the integration. Permit me to celebrate the personalities whose legal and
administrative advice made the integration of the credit union a success. Chief
among them were:
6
Mr. George Blankson
6
Mr. Anthony Minlah
6
Mr. E.O. Darko
6
Mr. John Nyarko
6
Mrs. Rejoice Kwawu
GRACCU
- Commissioner- General, GRA
- Immediate Past Commissioner, SSD
- Immediate Past General Manager, CUA,
Ghana
- Former Metro Director, Dept. of
Co-operatives
- Dept. of Co-operatives
8th Annual General Meeting
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6
Mr. Opoku Mensah
- Former Regional Manager-Accra
Chapter of CUA.
6
Mr. Gabriel Alifui-Segbaya - Former Chairman GRACCU
The X-Officio Board member
We wish to put on record that this rebranding exercise has been the secret of the
phenomenal strides we have made in membership expansion and funds mobilization
and this is what has brought us this far.
! We have automated the accounting process through the purchase and
installation of CU-Soft, the recommended software for all credit unions.
!
We printed and distributed widely, GRACCU Bye-laws and Operational
manuals to members to educate them on their rights and obligations as
members and also on the dos and the don'ts of the Union.
!
We distributed GRACCU customized T-Shirts, Calendars and Brochures, all
aimed at awareness creation. These have become routine matters which we
attend to every year.
!
We designed GRACCU cloth which, with the permission of the
Commissioner-General, has become one of the Friday wears of the Authority.
!
With the support of the Commissioner-General, the GRACCU office has been
expanded and reasonably refurbished to accommodate staff and the ever
growing business activities of the union.
!
A very intensive education training workshop was organized for GRACCU
Coordinators at CUA Training Centre (CUTRAC), Kasoa. The training
programme was designed to educate coordinators on credit union operations,
their role in the union and also to give them an insight into the succession plan
for the union.
!
GRACCU WEBSITE: As reported last year the GRACCU website has been
developed and efforts are underway to upload members' information to the
site. This if successfully completed will make it easy for members to access
information relating to their shares and savings online and also to transact
business using the platform.
!
GRACCU Buses: on June 6, 2013 a ground breaking ceremony was held on
the fore court of Parliament House to outdoor the JMET/MEIYA/GRACCU
th
Buses. As I reported to you during the 7 annual general meeting, JMET
Corporation which expressed interest in doing business with companies in
GRACCU
8th Annual General Meeting
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Ghana was introduced to the Credit Union Board by GRA Management on
their return from an official assignment in China. Serious negotiations were
entered into and the buses were supplied to the union.
A service centre has been opened at the Spintex Road Opposite Takyi Plaza to service
the buses. The performance of the buses so far has been captured in the financial
statements and shall be discussed during the business session.
!
GRACCU, during the period under review, participated in all Accra Chapter
meetings; attended Biennial Conferences organized by CUA Ghana, and also
attended World Council of Credit Unions conferences held in Scotland,
Poland, Canada and Australia.
Our participation in the international conferences has been possible as a result of the
support the Authority has been giving to the union. We are proud to report to members
that the delegation to the Gold Coast conference in Australia was led by Mr. Frank
Gamadey, a Board member of the Authority.
Mr. Chairman, the allocation of an extra office space and the leading of the GRA
Credit Union delegation to the WOCCU Conference by the GRA Board member is a
solid proof of how the Authority has been supportive of the Union. It is also a clear
demonstration that the GRA Management recognizes and appreciates the important
role of the Union in the scheme of GOOD GOVERNANCE of the Authority.
!
In June 2014, the Board introduced a new product known as GUARANTIED
DEPOSIT ACCOUNT, (GDA). The product is a high yielding investment
aimed at helping members to undertake development projects without
necessarily taking loans. The product is also designed to serve as a retirement
plan for members.
I wish to use this opportunity to urge “officers and men” who have not yet enrolled on
the GDA to kindly come on board, for in GRACCU we believe that our individual
personal savings will inure to the total good of the Ghana Revenue Authority.
Mr. Chairman, even though the four year term of my administration has made
significant achievements and has continued to render credible services to members, it
has not been all sweet and rosy; there are challenges which we are grappling with.
Admittedly, with my relatively short experience in human resource management and
administration, I am yet to see any human-centred institution or organization that is
problem-free. Perhaps it is “utopian” to think that a time will come when GRACCU
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8th Annual General Meeting
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will be free from problems and challenges. An apparent solution of one problem leads
to the emergence or creation of another. This is a feature of any dynamic and
progressive human institution.
We have repeatedly reported for the full knowledge of members that the continuous
and increasing demand for withdrawal of savings by members who are servicing loans
is the slow but sure killer potion being administered to the Union to kill it. The threat to
withdraw from the union when the request is not met is not helping us. It is tantamount
to arm twisting and perhaps blackmailing to be very frank with us all.
This HUMAN-FACE approach we have inherited has become a major weakness of
the current administration and a serious threat to the survival of the Union. The
practice has become so endemic that if not stopped, it could threaten the very
existence of the credit union we all love. Members do not know the enormity of the
problem and the sleepless nights that the office staff in particular and the Management
Board go through in trying to manage the challenge. I urge the incoming Board to
apply to the letter without bending, Article 10 of the GRACCU Bye-law which puts
restriction on withdrawal when savings is used as collateral. I intend to bring up this
during the business session and open a full debate on it in order to bring the issue into
the right perspective.
Mr. Chairman, another challenge that confronted us particularly in the year under
review was the blatant impudence of JMET Corporation, the supplier of the
JMET/GRACCU commercial buses in not complying with the terms of the
substantive agreement with them in respect of spare parts supply. This in no small way
affected the operations of the Auto Loan Scheme to the general dissatisfaction of
subscribers.
But the good news is that our mother organization, the employer of employers, the one
and only GHANA REVENUE AUTHORITY is mediating between our beloved
Credit Union and JMET CORPORATION to solve this problem. It is my hope that the
issue will be addressed soon to enable us reap the full benefits that the buses were
expected to bring to the beneficiaries and members.
Mr. Chairman, fellow co-operators, distinguished invited guests, ladies and
gentlemen; in my prologue to this address I mentioned that this Annual General
Meeting would be a memorable one. It is going to see the stepping down of the entire
Management team comprising the Board, the Supervisory Committee and the Loans
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8th Annual General Meeting
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Committee and almost simultaneously the election and induction of same into office
to begin another four-year term.
I wish to do some “thinking aloud” here which is intended to advise the team that will
be coming in, a few hours from now.
I must confess truly to you all that to see oneself in the chair of GRACCU, one of the
fastest growing credit unions in the country at the moment, even for a single day is a
great privilege.
To occupy the chair of GRACCU uninterrupted for four years, leading a wholly elitist
and well informed organization; taking decisions to affect the lives of people with
equally sterling leadership capabilities and mostly higher brain power therefore, is a
great honour and privilege but it goes with a price; it is very, very DEMANDING.
This type of leadership goes with a lot of self sacrifice in terms of time, personal
privacy and the peace of mind. It can be very frustrating fellow cooperators, and
therefore you need God–given patience and tolerance. You need unalloyed dedication
and demonstrable commitment to succeed. Why? because your decisions can make or
mar the joy and the life of a fellow human being. You incur the displeasure of many
persons or group of persons including your own colleagues at the hem of affairs.
In my relatively short experience as a person involved in a very small section of the
entire super administrative structure of GRA, I have come to appreciate that decision
making is the fulcrum of management. If you cannot take decisions then you have no
business being in a leadership position and playing an administrative role.
It is important to remind us all that decisions are not made out of nothing; they are not
made in vacuum. Decisions are made based upon information that is available to the
decision making authority. This information may be incomplete or partially correct; it
may be suppressed in part, willfully distorted or totally and completely wrong. Thus
any decision based on a wrong premise or incomplete information will be faulty
abinitio.
Whether they are policy decisions, routine administrative decisions or situational
decisions, all decisions affect people in one way or the other, that is, positively or
adversely. But the strength of the decision maker is that, once the prerequisites of a
good decision, which are essential in the decision-making process, have been met,
these being:
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8th Annual General Meeting
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1. That the decision is based, not on the “Rule of the Thumb” but on information
extrapolated and analysed extensively
2. That the decision is bona fide and made without malice or duress, fear or
favour
3. And that the decision is made in the overall interest of the generality of the
people and for the good of the entity
He goes ahead to take the decision and stand by it.
It was in this vein that most decisions of the Management Board were taken. We are
aware that everything did not work to perfection by the expectation of most of our
members.
I wish to use this platform to ask that those members or non-members, who were
peeved, were disappointed and perhaps greatly embarrassed and those who were
adversely affected by the actions and inactions of my administration in the course of
our work to forgive us. We did not intend to offend anybody. We aspired hard to meet
the high aspirations of every member of the HAPPY FAMILY, without fear or favour
but our best could not meet all expectations. We admit without any reservation that it
was simply the pressure of overwhelming demands that we were not able to meet that
influenced some of the seeming harsh decisions we had taken some of the time.
We have come this far through collective hard work of staff, leadership and dedicated
members of our Union. If we go down the memory lane of our four year tenure, it is
easy to see where we went wrong, why we went wrong and how we went wrong in
some of the decisions we might have made and in some of the actions we might have
taken.
It has been four years of humble leadership and readiness to accept criticism and
correction. It is an integral part of the learning process. What we know now can never
be the same as what we knew a year ago, two years ago or three long years ago. Thank
you for the opportunity given us to make our modest contribution to the growth of
GRACCU in particular and to the development of Credit Unions in Ghana.
Mr. Chairman, during the business session the board will submit itself for critical
evaluation in terms of its performance. I wish to state in very clear terms that should
the praise bells be rung, remember it is the patronage of you, valued members and
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8th Annual General Meeting
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customers at the same time, and the hard work, patience and dedication of my other
colleagues in management and our office staff that made it happen.
However, should it be the opposite and members are not satisfied with performance, I
Godwin Aaron Monyo underwrite all and do hereby exonerate my fellow board
members from any blame and take full responsibility.
Mr. Chairman, I want to thank the members once again for identifying with the
singular collective goal of our union- GRACCU OUR FUTURE and working hard
towards its realization. Once again I wish to remind you that, the destiny of GHANA
REVENUE AUTHORITY CO-OPERATIVE CREDIT UNION lies in your hands. I
wish you fruitful deliberations.
Finally Mr. Chairman, I wish to thank GRA Management for their continuous support
for the credit union without which we could not have come this far. I also want to make
a passionate appeal to the GRA Management, as organizers and managers of labour,
not to see the credit union as members' private enterprise, but to see it as part of the
Authority's welfare system taking into account the over 70 percent of staff who belong
to the credit union and to continue to support it as they have been doing in diverse
ways.
Concluding, I want to place on record my sincere gratitude to my supervisors and
colleagues in HR for the co-operation that they gave me all these years as chairman of
GRACCU. It is not easy to combine management of GRACCU and normal office
schedule. I must confess that I could have failed had it not been for the magnanimity of
my supervisors, particularly Madam Hannah Felicity Quarm in releasing me to attend
to GRACCU matters. I will ever remain grateful to all.
God bless you all.
GRACCU
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What you need to know
A Credit Union is formed when a group of people with the same interest called
“common bond” agree to save together to create a financial pool out of which they can
credit among themselves in times of need for productive or provident purposes. It is a
financial co-operative owned and run by members, who pool their savings together.
One of the principal reasons for the organization of a Credit Union is to satisfy the
economic needs of its members through granting of loans. The Credit Union lends the
savings of its members to those members who are in need of credit for productive or
provident purpose. The funds accumulated in the Credit Union through the systematic
savings of its members are the main source of credit to members.
The Credit Union System is one of the sustainable non-banking financial institutions
in the world. It is service-oriented and has low overhead costs. It is organized and
managed by the people themselves and continues to live with them in the long-term. It
is one of the best institutions that can serve the needs of the local people because it is
community oriented.
Yes, Credit Unions were originally community based but in recent times, work places
have embraced the Credit Union idea. We have therefore seen the development and
growth of workplace credit unions which are now known to be doing much better than
the community based unions.
Credit Unions in Ghana are affiliated to the Ghana Co-operative Credit Unions
Association (CUA) Limited. CUA in turn recommends them to the Department of Cooperatives under the Ministry of Youth and Employment for registration under the
NLC Decree 252 of 1968, to become legal entities. As we gather today there is a
Legislative Instrument (L.I.) before Parliament seeking to regulate the business of
Credit Unions in the country.
CUA was formed with the objective of promoting and developing Credit Unions in
Ghana by providing them with education and training at all levels together with
insurance and central banking services. Other services provided by CUA include
representing the affiliated unions both nationally and internationally, audit services,
computer services and the formulation of operational policies and performance
standards to promote efficiency and quality Credit Unions.
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CUA operates through Regional Chapters. A Regional Chapter is a group of Credit
Unions within a defined area. There are eleven Chapters in the country. Chapters are
the democratic niche for Credit Union members within a region or a defined area. The
objectives of each Chapter are to:
1. Foster the growth and development of Credit Unions in the region;
2. Co-ordinate the activities of the various Credit Unions;
3. Develop and maintain Credit Union leadership and
4. Assist in the registration of Credit Unions.
Chapter leaders are assisted by CUA to formulate business plans to make Chapters
effective. These include learning how to promote CUA programmes, identifying
members' training needs, creating a forum for the exchange of ideas and ensuring that
the Credit Unions operate according to sound business principles.
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Minutes of the 7th Annual General Meeting
OF THE GHANA REVENUE AUTHORITY CO-OPERATIVE
CREDIT UNION LTD. (GRACCU) HELD AT THE COLLEGE OF PHYSICIANS
AND SURGEONS ON 9TH JANUARY, 2014
The hall was called to order by the Master of Ceremony (MC) for the day, Mr. Yusif
Quainoo at 10am after the dignitaries had been ushered to their seats for the first
session.
Prayer was said by Mr. Richard Kwashie, Vice Chairman of GRACCU at about
1010HRS.
Mrs. Winifred Adu-Brobey, GRACCU Board Member introduced the chairman for
the session in the person of Mr. George Blankson, the Commissioner-General of
GRA. He made a short acceptance speech and asked for co-operation from all in
attendance to make the meeting a successful one.
There was a short musical interlude by the resident dance band at the National Theatre
after which the Chairman of GRACCU Mr. Godwin Monyo delivered the welcome
address. In his address, the Chairman mentioned a few of the strides that the Union had
made in the year being reviewed. These included the Rebranding and launching of the
Union, the Automation of the accounting system of the Union, the introduction of a
customer-friendly Loan Policy, membership growth and Total Assets expansion.
Mr. Godwin Monyo mentioned also the Auto Loan Scheme, the allocation of
additional office space to the Union by the GRA Management and the representation
of the Union at WOCCU conferences in 2012 and 2013 in Poland and Canada
respectively.
The Chairman, in expatiating on the Theme for the 2013 Annual General Meeting
which was “ Financial Independence Our Goal”, stated that the modern concept of
Credit Union had moved away from the original idea which viewed Credit Unions as
basically social organizations. He declared, “Today Credit Unions are no longer any
of these; they have become big time businesses, competing for scarce investment
funds from the common capital market. Thus it has become imperative for the
leadership of modern credit unions to be innovative and shrewd in designing products
that can bring in more income and in the long run, maximize the earnings of the
contributors”.
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Thus this new business concept of Credit Unions became the driving force behind
most of the ventures that the Union had initiated and entered into.
However, under this bold declaration of achievements by the Chairman, there was the
silent and inert fear of a looming threat to the sustainability of the Union and this was
the continuous and increasing demand for savings withdrawal by members who were
servicing loans, he admitted. He therefore solicited the full co-operation of every
member to adhere to policy and observe good practices to enable the Union to stand
and to continue to render credible services to all members.
In conclusion, the Chairman stated that he was happy to welcome members to the 7th
Annual General Meeting and wished them very fruitful deliberations.
The General Manager of Credit Unions Association (CUA) Mr. E. O. Darko was then
introduced to deliver a short address. As characteristic of him Mr. Darko extolled the
benefits of Credit Unions and how they have imparted the lives of members and nonmembers across the length and breadth of the entire nation. He exhorted all to cultivate
the habit of saving through the credit union medium to improve their own lives. This,
he advised, could only be achieved through self discipline and control of frivolous
spending.
Fraternal messages were read in solidarity with GRACCU. Mrs. Aboagye delivered
one on behalf of the Ghana Revenue Authority Ladies Club. Others came from the
Statistical Service, KAMCU and the Ghana Broadcasting Corporation (GBC) Credit
Union. Messages were also read from the financial partners of GRACCU including
CAL Bank.
After a short musical interlude by the dance group Mr. Coleman, the Director of
Cooperatives, Ghana was invited to make a short statement. He encouraged members
to work for the progress of the union. He cautioned members against withdrawing
savings while servicing loans as this practice would affect the development of the
union.
The key note address for the ceremony was delivered by Mr. Anthony Bedzra, Head of
Tax Policy at the Ministry of Finance on behalf of the Minister. The message centred
on using savings as a vehicle for progress. He congratulated GRACCU Management
for their hard work and ingenuity but advised that they should always appraise their
investments critically so as to avoid high risk areas.
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AWARDS
Awards were given to some individuals and groups of persons. Mr. Godwin Monyo
Chairman of GRACCU in introducing the award winners explained the criteria for
selecting them. The previous Management Team of the Union received awards for
working hard to lay the foundation for the development of GRACCU.
Another category of award winners was high saving members and these included the
Commissioner-General and Mr. Annan of Customs Division. High Shareholders were
also mentioned for awards. Special awards went to Mr. Coleman of the Department of
Co-operatives for his support for the development of Co-operatives and Miss. Eyram
Asafo- Akoto, a Client Service Officer at the GRACCU office won the Best Worker
Award.
CHAIRMAN' S CLOSING REMARKS
The chairman for the occasion Mr. George Blankson, Commissioner-General of the
Ghana Revenue Authority gave his closing remarks after a musical interlude.
He acknowledged the credit union as an integral partner in GRA. He called for prudent
management of the union and also added his voice in discouraging frequent savings
withdrawal. He commended the current managers of the union for the remarkable
progress they had made in terms of membership expansion and overall assets growth.
The first session of the meeting ended with a closing prayer by Mr. Eric Boakye at
12pm.This was followed by lunch break with a buffet at the fore court of the premises.
DIGNITARIES PRESENT
·
Mr. George Blankson, Commissioner-General Ghana Revenue Authority
·
Mr. Benjamin Egbem, Deputy Commissioner, Finance, Ghana Revenue
Authority
·
Mr. Kwame Owusu, Deputy Commissioner, Administration, Ghana Revenue
Authority
·
Ms. Morrison Deputy Commissioner, Modernisation Project Office, GRA
·
Mad. Hannah Quarm, Assistant Commissioner Human Resource I GRA
·
Mr. Koney Mensah, Assistant Commissioner, Human Resource II,GRA
·
Mr. E. O. Darko, General Manager Credit Unions Ghana (CUA)
·
Mrs. Rejoice Kwawu, Greater Accra Regional Director, Department of
Cooperatives
·
Mr. John Nyarko Accra Metro Director Department of Cooperatives
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·
Mr. Coleman, Director, Department of Cooperatives, Ghana
·
Mr. Israel Tsegah, Vice Chairman, Greater Accra Chapter of Credit Unions
The house was called to order for the business session with the Credit Union song at
about 1240HRS. After the song a representative of Marvel Properties Limited,
property developers, presented a programme for supporting members of the union to
build or complete their projects. He mentioned two places where the Company had
land to develop for interested staff. A Sales Executive of the Company took a little
time to explain the types of houses they could develop for prospective buyers. These
ranged from one bedroom to luxury apartment.
READING OF PREVIOUS MINUTES AND REPORTS
The business session itself began at 1300HRS and was conducted under the
chairmanship of Mr. John Nyarko, Metropolitan Director, Department of Cooperatives, Accra. The minutes of the previous annual general meeting were read and
after the necessary corrections had been made a member moved for acceptance and it
was seconded by Mr. Okatakyie Opare.
The chairman for this session Mr. John Nyarko, took the floor to address the house on
the modalities for the discussion of the various reports. The chairman of GRACCU
Mr. Godwin Monyo presented the Management Report. The report of the Supervisory
Committee was presented by the chairperson of the Committee Mrs. Cecilia Akua
Manieson whilst that of the Loans Committee was presented by its chairman Mr.
William Dzogbewu. GRACCU budget for 2014 was also presented by the Treasurer
Mr. Edward Appiah.The chairman then asked for acceptance of the various reports
through a motion. Mr. Joseph Darko moved for the acceptance of the reports and he
was seconded by Mr. Prosper Lotsu. The session chairman opened the floor for the
discussion of the reports. Mr. Prosper Lotsu of Customs Division Tema responded
first by asking to know why members could not get their statements of accounts from
GRACCU. He was however ruled out of order and advised to reserve the question for
the appropriate time.
Madam Theresa Djan in her contribution recommended that all members be given
operational manual of GRACCU for easy reference and for knowledge and
information.
Mr. Kingsley Dadey referred to page 54 of the AGM Report and asked to know why it
was projected that members would be offered more loans than expected savings. He
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wanted to know also why interest projected to accrue on loans coming from funds
contributed by members should be so high. He finally questioned why provision of
forty-one thousand Ghana cedis(GHS41000) had been made for loan losses when it
was certain that every loan granted was recoverable through the GRA pay roll system.
Mr. Godwin Monyo Chairman of GRACCU indicated that copies of the operational
manual were still available for everyone even though the Education Committee had
gone round and had given out copies to members present at every office visited the
previous year.(Copies of the Operational Policy and Bye-Laws were immediately
distributed to all occupants in the hall). He further explained in respect of the
provision for Loan Losses that it is merely a conservative accounting principle being
applied and that it did not affect anything. The provision only goes to reduce the net
profit for the year but no money flows out.
Contributing Mr. E. O. Darko General Manager of CUA Ghana advised that
management of GRACCU should maintain about 20% of liquidity to avert the
tendency of going out for monies to advance loans to members at high cost. He also
cautioned against the practice of withdrawing part savings whilst servicing loans. Mr.
Darko explained the prudence of capturing any expenditure incurred in a particular
period and reflecting it in that accounting year to show the true state of affairs for that
financial year.
In another question a member wanted to know why EZI Loans and Savings was not
captured in the report as one of the institutions who received high interest on external
loans that GRACCU had contracted. Mr. Monyo explained that it was an error that ,
EZI had been paid off in 2011. He concluded that there was the need to discourage
request for withdrawal of savings whilst a member is indebted to the Union. The
Chairman emphasized that that was the only way to save the Union from contracting
external loans.
A member wanted to know why no reason was given when a loan application was
rejected and mentioned that perhaps, because of the initial encouragement for
members to come for loans that pushed many to ask for loans and that if the situation
had changed members should be made aware to forestall any further pressure. Mr.
Fiadzoe of the Petroleum Revenue Unit suggested that perhaps the interest on loans is
not adequate enough for the system to make enough income in this economic era.
GRACCU
8th Annual General Meeting
20
Responding to some of the issues, Mr. Darko first said that CUA interest rates are
fixed low so that poor members can have access to money for development. He
however suggested that members should be educated to save towards projects rather
than relying on loans.
When Mr. Monyo took the floor he explained to members a few issues that were
raised. Concerning some high expenditure figures in the accounts, the Chairman
explained that some money was spent on office renovation and expansion. He
explained that guaranteeing of loans by other members is not necessarily to target
monies of such guarantors but to enable them help trace defaulters who may abscond.
Mr. Monyo, in answer to a question having to do with business with the Merchant
Bank, stated that at the time Merchant Bank was transacting business with the Union
their name was not in the news and that Merchant Bank was one of the banks that
understood the Credit Union very well and was always ready to offer help when
approached. Indeed the Chairman said Merchant Bank was one of the reliable partners
of the Union.
Regarding members' statements of account Mr. Godwin Monyo said a statement of
account is given to a member upon request because it contains personal details and
would not therefore be appropriate to give someone's statement to another member for
onward transmission. However he assured members that when the website came into
full operation, individuals could access both their statement and any other document
of the Union using their unique password.
Reacting to the concern that members were not informed when their loan applications
were rejected the chairman explained that most often the Loans Committee was
usually faced with problems such as failure of applicants to provide pay slips, non
acquisition or inadequacy of shares or that applicants may not have completed their
application forms correctly disclosing all the information required. Mr. Monyo said
he was aware that failed applications were always communicated to the applicants for
the necessary corrections to be made.
Mr. Nyarko the chairman for the business session responded to a questioner who
sought to know about the audit fees charged in the accounts. He explained that the fees
are charged by CUA, Ghana where staff are appointed from to undertake the auditing
of Credit Unions. He stated that savings are encouraged to accumulate the funds for
GRACCU
8th Annual General Meeting
21
loans and suggested that the union should strictly apply the ratio system of CUA until
the liquidity situation of the Union improved.
RESOLUTIONS
The following resolutions were discussed and passed at the end of a lively debate:
1. That the minimum shares payable by every member be raised to Four Hundred
Ghana cedis (GHS400).
2. That the minimum savings balance for every member shall be Three Hundred
Ghana Cedis (GHS300).
3. That marriage and child birth benefits be expunged from the welfare benefits
payable while the welfare contribution be increased to Twenty Ghana cedis
(GHS20).
Under other matters, a member raised issues concerning the challenges that the
owners of the mini vehicles faced when they sent their vehicles for servicing at the
station on the Spintex Road in Accra, explaining that this was the major reason she had
defaulted in repayment.
Mr. Monyo explained that the service station which was operating was jointly
operated by JMET, a private investor and the Union. He hinted that equipment were
being brought to revitalise the place for efficient operations.
Concluding, the Chairman of GRACCU, Mr. Godwin Monyo sincerely apologised to
members for not sending the resolutions and audited accounts to staff in advance to
enable members scrutinise them well for discussion.
As issues were thoroughly discussed, Mr. Quainoo moved for the meeting to be
adjourned sine die and was seconded by Mr. Eric Boakye.The closing prayer was said
by the Master of Ceremonies to end the meeting at about 1520HRS.
GRACCU
8th Annual General Meeting
22
GHANA REVENUE AUTHORITY
CO-OPERATIVE CREDIT UNION LIMITED (GRACCU)
Board of Management's Report
Introduction
Fellow Co-operators, my constitutional duty to you in this section of the AGM is to lay
th
the report of the GRACCU Board of Management for the financial year ending 30
June 2014 before you for examination and discussion, and it is again my pleasure to do
so as I have done on previous occasions. It is a serious moment in the life cycle of the
Union because it is perhaps the only time that our Bye-laws offer members, the full
exercise of their constitutional mandate that they wield over elected executives.
This is the time that you actually exercise your ultimate oversight responsibility by
receiving from the board the report of all activities engaged in during the period under
review, analysing the report to either ratify or reject it and evaluating our performance
with a view to renewing or revoking the mandate you have given us to work for the
tenure so determined.
The areas of focus of this report follow almost the same pattern as the previous ones
and they are:
i. Administration
ii. General Operations
iii. Membership and members' savings
iv. Members' shares
v. Loans to members
vi. Investments
vii. New products
viii.Total assets
1.0 Administration
The Management Board that steered the affairs of the union for the period under
review comprised the following:
Godwin Monyo
Chairman
Richard Kwashie
Vice Chairman
Edward Appiah
Treasurer
Mrs Doris N. Gyepi-Gabrah
Secretary
Mrs Winifred Adu-Brobey
Member
GRACCU
8th Annual General Meeting
23
William Okyere
Kwasi Essien
Eric Boakye
Vida Dorcas Wuaku
Member
Member
Member
Member
2.0 General Operations
i)
Staffing: The union has staff strength of eleven made up of six males and
five females. The office administration is headed by a manager, Mr Mark
Yeboah. We envisage that as the volume of operations increases more
hands may be required until the optimal staffing position is achieved in the
years ahead.
ii)
Office Space: For now we do not envisage any dramatic event in the very
near future that will demand a request for extra office space. We are
satisfied that what we have now is reasonably adequate to allow us to
conduct the business of the union in a congenial and customer-friendly
atmosphere. We will try to make maximum use of the office space that we
have now through careful physical space management.
iii)
Computerisation: In addition to full computerisation of our operations, a
full Website has been developed for the union. All efforts are being made
to upload members' data unto the site. This, when completed, will enable
members to transact business with their union on line and also to freely
and speedily access information relating to their interest.
iv)
Member Education: Member education continued in the period under
review and will always continue as long as we wish our union to remain
dynamic and vibrant.
We wish to report to members that there is a vigorous education on the
Guaranteed Deposit Account (GDA) a product that we launched at the tail
end of the financial year under review.
3.0 Membership
Membership of the union is always affected by resignations and retirements but every
year there are new additions. In the 2014 financial year there were 129 resignations
and retirements and we had a total of 344 new registrations. Thus there was a net
th
addition of 215 bringing the total membership of the union to 4630 as at 30 June,
2014.
GRACCU
8th Annual General Meeting
24
We will continue to encourage staff to register with the union for our ultimate goal is to
have all employees of GRA, both staff and Management becoming members of the
Happy Family.
3.1 Members' savings
We wish to report to AGM that increase in loan servicing over long periods and also
corresponding increased savings withdrawal are two major factors that are affecting
members' savings. One core business of Credit Unions is to encourage members to
save, but it appears this core purpose is gradually being relegated to the background
and loans have taken the centre stage of credit union business.
In the last financial year total savings moved sluggishly from GHC 9.9 million to
th
GHC 13.44 million as at 30 June, 2014.The Cu-Soft accounting soft-ware that we
have in place, has made it possible for us to constantly update members' accounts.
4.0 Members' Shares
The minimum shares amount for a member has been raised to GHC 400.00. Steps are
being taken to ensure that those members whose share holding falls below this
minimum amount regularise their positions.
We need to remind our members once again that ownership of shares is one of the
requirements for membership of a Credit Union. If a member does not have the
minimum share required, that member cannot be considered as a full member and will
thus not be entitled to enjoy the benefits of fully paid- up members. The board will
begin to enforce some of these provisions in future.
Total shares increased from GHC 784,294.00 to GHC 1,134,707.00 in the year under
review.
5.0 Loans to members
Fellow co-operators, one only needs a cursory look at our Balance Sheet to know that
loans to members are mostly externally sourced. This is because the demand for loans
has far outstripped our internally generated funds.
The price we pay for these external loans is well known to all of us:
1. High interest payments
2. High deduction rates and long servicing periods
3. Low savings
4. Low net profit and
5. Low dividend payment.
GRACCU
8th Annual General Meeting
25
If we further analyse the balance sheet, we will observe that two main items account
for about 90% of our total assets. They are Loans to members and other current assets.
The latter represents external loans while Net Loans to members is supported by
Members' savings.
As I have already stated, demand for loans continues to increase disproportionally to
our internally mobilized funds and the time has come when we cannot source external
loans to be able to meet demands. Our Loans Policy has to change if we want to
remain competitive in the business of funds mobilization from the same money
market. Remember we are competing with banks to attract savings from the same
market.
Effective this December, we have implemented GRACCU- CAL BANK Scheme
Loan. Under this arrangement, our members upon our recommendation will contract
loans directly from CAL Bank.It is envisaged that when this scheme is in full
operation in the coming years and our external loan balances are reduced, more
resources arising from our own internal sources will be channelled into very attractive
products, all aimed at enhancing the financial wellbeing of contributors.
We believe also that when the Scheme Loan is fully implemented and managed by the
Bank exclusively and our current loan balances are reduced to the minimum, we will
have the true picture to be able to evaluate the health of our credit union.
Our net loans balance stood at GH¢12,622,197.00 as at 30th June, 2014. We want to
assure our members that the check-off system we have in place guarantees full
recovery of loans unless in very few exceptional cases. Loans delinquency is very
negligible next to nothing, thus the provision for loan losses is a conservative standard
provision allowed under the accounting principle of prudence. More over all loans
granted are covered under the CUA operated Loan Protection Plan (LPP).
6.0 Investments
Our investments as usual are between Liquid investments and Non-Liquid
investments, with the Liquid investments accounting for about 95% of our total
investments which stood at GH¢3.3 million as at 30th June, 2014.
Our non-liquid investment shrank from GH¢1,150,833.00 as at June 2013 to
GH¢191,140.00 as at June 2014. In the 7th Annual General Meeting report, the Board
made a commitment to review our assets. This was captured under Total Assets, item
8.0 and I quote:
GRACCU
8th Annual General Meeting
26
“The Board is always reviewing the composition of the assets because this is very
critical to the sustainability of the Union. As recommended by our Auditors, we will
be critically examining our projects and those that seem to be non-performing will be
withdrawn or liquidated in order to release locked up capital for re-injection. The
Board will also take a hard look at our loans portfolio........”
In line with this, the Board reviewed two critical areas of our operations, hence the
decision to implement the Scheme Loan and to liquidate most of our non-performing
project investments and concentrate on high yielding instruments contained in the
Liquid–Investments portfolio.
7.0 New Products
th
In the latter part of the 2014 financial year ended 30 June 2014, GRACCU launched a
new product called Guaranteed Deposit Account (GDA). As mentioned elsewhere in
this report, this product is a high yielding investment aimed at helping members to
undertake development projects without resort to loans. The product is also designed
to serve as a retirement plan for members.
Vigorous education has been embarked upon to bring members to sign up to the
product. We have covered eight regions, leaving two regions, namely Central and
Western to cover in the next few weeks.
We have projected that if this product is well received as indicators are already
showing, and heavily patronized and well administered, it will no longer be attractive
to take loans for projects development.
8.0 The Auto Loan Scheme
From the Financial Statements you will see the plus or minus of the operations of this
scheme. We have a liability of GH¢10,919,149.71 arising from the purchase of the
buses and this is represented by an income of GH¢1,942,478.39 and a current asset of
GH¢13,030,706.86
By all standards this product that we worked very hard for and launched last year was a
ground-breaking one with very high potentials but the business world is not a wholly
predictable one. We could not realize the full benefits of the buses as projected
because of the failure of the suppliers to supply the needed spare parts.
GRACCU
8th Annual General Meeting
27
This was a serious breach of condition in the contract, but as I mentioned in my
welcome address, GRA Management has waded into the issue to try and resolve it
amicably. It is our hope that in the coming weeks or months when the peripheral
issues will have been resolved, the full benefits of the buses will begin to accrue to the
beneficiaries in particular and the union as a whole.
9.0 Total Assets
Fellow co-operators, we have worked hard to lift up the image and financial standing
of our union in the four years that we have been at the hem of affairs. It has not been
easy all the way; as the proverbial saying goes: “when the entire economy in which we
are operating sneezes, then every microcosm of that universal set catches cold”. We all
know that 2014 has been challenging to the business community.
But I must say that we are collectively proud of our performance as represented by our
total assets figure. Within four years of operation, we have achieved an average
growth rate of 108.5% per year in our assets, using the financial year which ended on
June 30, 2010 as our base year.
Our assets have increased from GH¢ 16,992,479.81 as at June 30, 2013 to
GH¢ 30,516,303.08 as at June 30, 2014.
PERFORMANCE HIGHLIGHTS
2014
ITEMS
%
2013
%
2012
%
2011
Increase
GH¢
Increase
GH¢
Increase
GH¢
1
Loans
12,622,197.27
33.96
9,422,695.35
57.83
5,970,028.62 131.50
2,578,836.93
2
Savings
13,439,148.14
35.74
9,901,007.29
66.17
5,958,527.78 119.52
2,714,345.97
External Loans
14,339,092.35
225.1
4,410,615.05
123.58
1,972,749.30
79.99
1,096,052.25
3
Shares
1,134,707.84
44.68
784,294.23
93.03
406,305.08 145.44
165,543.20
4
Interest on Loans
3,735,816.97
141.15
1,549,177.55
28.74
1,203,308.50 154.01
473,717.30
5
Expenditure
3,760,792.31
158.59
1,454,341.47
35.0
1,076,948.75 180.12
384,458.98
6
Reserves
1,130,483.09
37.22
823,823.15
37.55
7
Total Income
4,180,923.03
134.66
1,781,726.73
38.14
8
Surplus
420,130.72
28.33
327,385.26
53.79
9
Total Assets
30,516,303.08
79.59 16,992,479.81
89.74
10
Membership
4,630.00
9.74
GRACCU
4,219.00
598,945.92
41.34
423,749.84
1,289,832.12 118.73
589,678.29
212,883.37
3.73
205,219.31
8,955,838.19 101.20
4,451,229.41
53.75
8th Annual General Meeting
2,744
28
Fellow Co-operators, as said earlier, our statutory duty at this AGM is to give an
account of our stewardship for the year ended 30th June, 2014 and to have
retrospection of the three preceding years. We have sought to do this sincerely to the
best of our knowledge, believing that the account that we have given represents fairly
the actual state of affairs of the Ghana Revenue Authority Co-operative Credit Union
th
(GRACCU) as at the close of business on 30 June 2014. We cannot simply be our
own judges. We leave the rest entirely to you as partners in business and at the same
time as analytical enterprising investors.
Obligations to CUA
We again restate the commitment of the GRA Co-operative Credit Union to honouring
all of its obligations to CUA and its Agencies and to all related institutions and
organisations including the Department of Co-operatives either directly or indirectly.
We will continue to fulfil our statutory obligations as well as those arising from
affiliation, which include:
a) Payment of CUA/Chapter Dues
b) Regular transfer of Statutory Reserves
c) Contributing to the Central Finance Facility Fund (CFF)
d) Contributing to the Stabilization Fund
e) Participating in the Risk Management Programme
f) Responding to appeals for project or activity funding.
g) Participating in all CUA organized programmes and activities
Appreciation
We want to first of all thank the Almighty God for his daily mercies upon us and for
seeing us through the year we are reviewing today and for the four years that we have
been in office presiding over the business of GRACCU.
We want to thank the Commissioner-General and all Commissioners of GRA, indeed
the entire Management of Ghana Revenue Authority for supporting us in our efforts to
help uplift the workers' financial wellness which is one of the thematic areas under
the GRA EMPLOYEE WELLBEING PROGRAMME. We once again extend
invitation to all staff including Management to be part of the Happy Family.
GRACCU is firmly committed to improving the quality of life of our members and we
want all staff of GRA to benefit from it.
We are grateful to the Board, Management and staff of CUA for their continued
technical assistance to us. We want to thank the Registrar of Co-operatives and his
staff at the Greater Accra office for their involvement either directly or indirectly in
the running of our Union. We are greatly indebted to all, (our secret admirers and well
wishers as well as our critics) who in diverse ways have helped the Union to come this
far.
GRACCU
8th Annual General Meeting
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Our thanks also go to all staff of the Finance Unit and the office of the CommissionerGeneral for their support in the areas of correspondence and input processing. We
recognise and appreciate their invaluable services to the union over the years. Thank
you.
We wish to say a big Thank You to our hardworking staff under the leadership of the
manager Mark Yeboah who is unassuming but very steel in character in the discharge
of his duties. We recognize your hard work without which we could not have achieved
all that we are reporting on today. Our thumbs are up for you for your hard work. We
believe you will continue to give of your best in the years ahead.
Thank you all.
As captured in the agenda for this AGM, the entire Management Team will be
stepping down for new elections to be conducted. I wish to say that in a human
institution such as ours, we must make adequate room for errors, weaknesses and
failings, omissions and commissions since no human being is infallible.
It was most likely that we the Board and our assigns, the other committee members
and the office staff, individually or collectively, jointly or severally, in the course of
our work, offended you in one way or the other. The way we might have talked to you,
answered your calls and attended to your needs and requests would have offended
you. Let the spirit of forgiveness rule our hearts and let us chart a new course in the
coming years.
I wish, on behalf of the outgoing Management Board, to solicit your full co-operation
and support for the incoming Management Board so that together we shall all work to
increase the fortunes of GRACCU.
Conclusion
Cherished member, we say you are unique and special because you are the
BUSINESS. You are the Owner and at the same time the Customer of the business, a
unique position indeed! Continue to be actively involved in the affairs of the Union in
every way possible.
Thank you for your interest in and your contributions to the business of the Union over
the years. It is your collective interest that is moving the Credit Union forward. We are
counting on your sustained interest and above all, your co-operation in matters
concerning policy that together we can move our Union faster than we have done so
far.
May God be with you all.
GODWIN AARON MONYO (CHAIRMAN)
GRACCU
8th Annual General Meeting
30
Supervisory Committee Report
FOR THE PERIOD, JULY 2013 TO JUNE 2014
The Committee was made up of five (5) officers namely:
1) Mrs. Cecilia Ekua K. Manieson ---------------------------- Chairperson
2) Miss Evelyn Amegbletor ------------------------------------ Secretary
3) Mrs. Edem Onyekuba --------------------------------------- Member
4) Mr. Yusif Quainoo -------------------------------------------Member
5) Mr. Joseph B. Ababio-----------------------------------------Member
DUTIES OF THE COMMITTEE
The statutory duties of the committee, among other things, are
1. To ensure that, the Board of Directors carry out their functions in accordance
with the Bye-laws of the Union; hold the appropriate meetings for the purpose
of running the Union and ensuring that policy decisions taken at such board
meetings are fully implemented and monitored for the benefit of the Union.
2. To exercise oversight responsibility over other statutory and ad hoc
committees particularly the Loans Committee to ensure that their functions
are discharged according to prescribed procedure and that the reports of such
committees are submitted to the Board and that recommendations so made
and accepted by the Board are implemented.
3. To ensure that, proper Books of Accounts are kept and Financial Statements
are prepared from such accounts for regular auditing and presentation to the
Annual General Meeting and
4. To present a report to the Annual General Meeting.
SCOPE OF WORK
The Committee met several times to carry out the above stated duties. Board Minutes
were examined, Books of Accounts were periodically checked, Loans Committee
Reports were examined and other office records necessary to carry out our statutory
functions were all carefully reviewed. There were physical verifications and other
surprise checks, all forming part of our programmed work to ensure that compliance.
GRACCU
8th Annual General Meeting
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OBSERVATIONS AND RECOMMENDATIONS
All exceptions and lapses that came to our notice were duly reported on and discussed
with the Committees involved and ultimately with the Board.
In most cases our findings and corresponding recommendations made to the
appropriate Committees or the Board were followed up to ensure redress or
implementation.
We are happy to report to members that most of our observations and the appropriate
recommendations have been addressed while others which could not be readily
implemented have been noted down by the Board for implementation.
In conclusion, we wish to state that, the Board conducted the business of the Union in
the year under review with much diligence, decorum and with very high standard of
openness and business acumen despite a few minor lapses. These are to be expected
because no system is perfect.
The Board worked very hard to increase membership and the total assets of the Union
in spite of very many challenges such as overwhelming demand for loans and ever
increasing part savings withdrawal, the “ the Twin Sisters” that combine effectively to
create liquidity problem
We thank you all for the cooperation that we have had from you during our four year
tenure and also for the opportunity that you have given us to serve you in our modest
way.
Thank you.
CHAIRPERSON
MRS. CECILIA EKUA MANIESON
GRACCU
8th Annual General Meeting
32
Annual Report on Activities of Loans Committee
FOR THE YEAR JULY 2013 TO JUNE 2014
Committee Members
The Loans Committee is made up of five (5) members namely:
§
WILLIAM DZOGBEWU
CHAIRMAN
§
EMMANUEL ASIEDU
MEMBER
§
IBRAHIM HANSEN
MEMBER
§
STELLA BAIDOO TSIBU
MEMBER
§
ELIZABETH PORTUPHY (MRS) SECRETARY
Meetings
The Loans Committee members met Twenty-Eight (28) times to deliberate on loan
applications received. At these meetings minutes of the committee were forwarded to
the Manager and subsequently to the Board for the necessary actions to be taken on the
applications approved.
LOAN POLICY
·
During the year the following policies guided the committee in its
considerations:·
Loans were attached to minimum shares of GH¢400.00.
·
The interest rate applied on loans was 2.5% on reducing balance.
SRL
NO.
SHARES VALUE
SAVINGS BALANCE
LOAN AMOUNT
QUALIFIED
1
Minimum Shares of GH¢400.00
GH¢1.00 up to GH¢750.00
Double the savings amount
2
Shares up to GH¢400.00
GH¢751.00 up to GH¢1,000.00
Up to GH¢4,000.00
3
Shares from GH¢400.00-800.00
GH¢1,001.00 up to GH¢2,000.00
Up to GH¢8,000.00
4
Shares from GH¢400.00 -1,000.00 GH¢2,001.00 up to GH¢4,000.00
above.
Up to 15,000.00
5
Shares above GH¢1,000.00
Up to GH50,000.00
Above GH¢4,000.00.
GRACCU
8th Annual General Meeting
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In the Financial Year ending June 30 2014, four hundred and eight (408) applications
were received and processed. A total amount of GHC 4,667,498.00 was approved and
disbursed.
OBSERVATIONS
During our sittings to deliberate on loan applications, the Committee strictly applied
the GHC 400.00 minimum share for qualification for a loan. We noted that in spite of
intensive education of members on requirements for a valid loan application, some
members still applied for loans without the necessary attachments particularly their pay
slips. This delayed the processing of loan applications.
In other instances some members still applied for huge amounts of loans far beyond
their savings threshold and their relative Debt-Service-Ratio (DSR.) These
considerations always affected quick processing of loan applications.
Some members failed to meet the stipulated initial six months period of uninterrupted
savings before one could qualify for a loan.
RECOMMENDATIONS:
The committee puts forward the following issues which have always been a concern to
it in its consideration of loan applications and wishes to advise all loan applicants to
take judicial notice of them:
§
Members should always attach their pay slip to their Loan Application Form.
§
Members are encouraged to take note of the loan thresholds when applying for
loan and so strictly operate within those parameters.
§
Members should cultivate the habit of saving more as it is the savings balance at
any given point that determines the quantum of the loan one can access.
CONCLUSION
The committee wishes to express its appreciation to the Board, the Office Manager and
his Staff and all the valued members of our Union for the support accorded the Loans
Committee.
We take this opportunity to apologise to members whose expectations we were unable
to meet due to circumstances beyond our control. It is our hope that they would be able
to meet the required conditions spelt out in the Bye-Laws when applying for a loan
facility to prevent any “GO SLOW” in the loan processing in the future. “After all we
believe in people helping people”. Thank you.
WILLIAM DZOGBEWU (CHAIRMAN, LOANS COMMITTEE)
GRACCU
8th Annual General Meeting
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ACCOUNTS
GHANA COOPERATIVE CREDIT UNIONS ASSOCIATIONS (CUA) LIMITED
(HEAD OFFICE) (Reg. #4032)
44 Jones Nelson Street, Adabraka, P.O. Box 12148, Accra-North, Ghana,
Tel no. 233-21-220299, 231717
Telex: 2166 Tricord: Email HYPERLINK mailto:[email protected]
[email protected]
GRA COOPERATIVE CREDIT UNION
REPORT OF THE AUDITORS TO THE MEMBERS FOR THE
YEAR ENDED JUNE 30, 2014
We have audited the Financial Statements of the Ghana Revenue Authority Cooperative Credit Union
Limited (GRACCU) which have been prepared under historical, cost convention. We have obtained all
the information and explanations we required.
Responsibility
These financial statements are the responsibility of the Unions Directors. Our responsibility is to
express independent opinion on these financial statements based on our audit.
Basis of opinion
We conducted our audit in accordance with generally accepted auditing standards. These standards
require that we plan and perform our audit to obtain reasonable assurance, whether the financial
statements are free of material misstatements. An audit includes examining, on test basis evidence
supporting the amounts and disclosures in the financial statement. We believe that our audit provides a
reasonable basis of our opinion.
Opinion
In our opinion, proper records have been kept and the financial statements which are in agreement
therewith, comply with the requirements of our Cooperative Societies Decree of 1968 (NLCD 252) and
give a true and fair view of the state of affairs of the society, as at June 30,
GRACCU
8th Annual General Meeting
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GRA CO-OPERATIVE CREDIT UNION LTD.
FINANCIAL HIGHLIGHTS 1 AS AT 30TH JUNE 2014
OPERATING STATEMENT
PARTICULARS
AVERAGE
ASSETS-
ACTUAL
AMOUNT
23,754,391.45
%
STANDARD
AMOUNT
%
INTEREST EARNINGS
GH¢
Interest on Loans
Interest on Financial Invest
Int. on other Investments
TOTAL FINANCIAL INCOME
3,735,816.97
386,412.70
325.14
4,122,554.81
15.7
1.6
0
17.3
4,750,878.29
475,087.83
237,543.91
5,463,510.03
20
2
1
23
LESS COST OF FUNDS
Interest on Members’ Savings
Interest on Borrowings
TOTAL COST OF FUNDS
786,299.55
2,129,360.74
2,915,660.29
3.3
9.0
12.3
1,187,719.57
475,087.83
1,662,807.40
5
2
7
GROSS FINANCIAL MARGIN
1,206,894.52
5.9
3,800,702.63
16
Less: Increase in Provision for
Loan Losses
32,318.00
0.1
950,175.66
4
NET FINANCIAL MARGIN
1,174,576.52
4.9
2,850,526.97
12
58,368.22
0.2
237,543.91
1
1,232,944.74
5.2
3,088,070.89
13
LESS: OPERATING EXPENSES
Personnel
Occupancy
Organizational
Security
Administration
TOTAL OPERATING EXPENSES
317,570.21
17,330.90
280,288.00
65,600.72
132,024.19
812,814.02
1.3
0.1
1.2
0.3
0.6
3.4
593,859.79
237,543.91
237,543.91
237,543.91
356,315.87
1,662,807.40
2.5
1
1
1
1.5
7
NET OPERATING MARGIN
420,130.72
1.8
1,425,263.49
6
Add Non-Financial Income
GROSS MARGIN
GRACCU
GH¢
8th Annual General Meeting
37
GRA CO-OPERATIVE CREDIT UNION LTD.
FINANCIAL HIGHLIGHTS II AS AT 30TH JUNE, 2014
BALANCE SHEET
ASSETS
PARTICULARS
TOTAL ASSETS
Liquid Funds
Liquid Investments
Other Investments
Net loans to Members
Other Current Assets
Non Current Assets
TOTAL
LIABILITIES
PARTICULARS
Current Liabilities
External Loans
Members’ Savings
Members’ Shares
Reserve
TOTAL
ACTUAL
AMOUNT
GH¢
21,690.38
3,109,115.82
191,139.97
12,622,197.27
14,507,855.21
64,304.43
30,516,303.08
ACTUAL
AMOUNT
GH¢
472,871.66
14,339,092.35
13,439,148.14
1,134,707.84
1,130,483.09
30,516,303.08
GRACCU
GH¢
%
0.1
10.2
0.6
41.4
47.5
0.2
100
%
1.55
47.01
44.04
3.70
3.70
100.00
30,516,303.08
STANDARD
AMOUNT
GH¢
610,326.06
5,492,934.55
1,525,815.15
21,361,412.16
0.00
1,525,815.15
30,516,303.08
STANDARD
AMOUNT
GH¢
0.00
1,525,815.15
24,413,042.46
1,525,815.15
3,051,630.32
30,516,303.08
8th Annual General Meeting
%
2
18
5
70
0
5
100
%
0
5
80
5
10
100
38
GRA CO-OPERATIVE CREDIT UNION LTD.
STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE
FOR THE YEAR ENDED 30 TH JUNE 2014
NOTES
INCOME
2014
2013
GH ¢
GH ¢
41 Interest on loan
2
3,735,816.97
1,549,177.55
42 Interest on Liquid Investments
3
386,412.70
170,777.69
45 Other Financial Income
4
325.14
9,720.49
4,122,554.81
1,729,675.73
58,368.22
52,051.00
4,180,923.03
1,781,726.73
46 Non-Financial income
5
TOTAL INCOME
LESS EXPENDITURE:
51 Cost of Funds
6
2,915,660.29
964,550.72
52 Personnel Cost
7
317,570.21
149,634.62
53 Occupancy
8
17,330.90
8,430.00
54 Organizational
55 Security
56 Administration
9
10
11
280,288.00
65,600.72
132,024.19
175,053.00
21,904.51
94,189.47
12 / 24
32,318.00
40,579.15
3,760,792.31
1,454,341.47
420,130.72
327,385.26
Surplus c/f
420,130.72
327,385.26
25% Statutory Reserve
105,032.68
81,846.32
27% Provision for Dividend
113,470.78
65,477.05
10% Education Reserve
42,013.07
32,471.53
38%Operating Reserve
159,614.19
147,590.36
420,130.72
327,385.26
57 Provision for Loan Losses
TOTAL OPERATING EXPENSES
Surplus
SURPLUS APPROPRIATION
GRACCU
8th Annual General Meeting
39
GRA CO-OPERATIVE CREDIT UNION LTD.
STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2014
ASSETS
11
12
13
14
15
16
NOTES
Liquid Funds
Liquid Investments
Other Investments
Net Loans to Members
Other Current Assets
Non Current Assets
13
14
15
16/24
17
22
TOTAL ASSETS
LIABILITIES
21 Current Liabilities
22 Members’ Savings
23 External Loans
18
19
20
CAPITAL
31 Members’ Shares
32 Reserves (incl Net Surplus)
21
23
TOTAL LIABILITIES AND CAPITAL
GRACCU
2014
GH ¢
2013
GH ¢
21,690.38
3,109,115.82
191,139.97
12,622,197.27
14,507,855.21
64,304.43
38,325.35
1,619,261.80
1,150,833.52
9,422,695.35
4,747,191.35
14,172.44
30,516,303.08
16,992,479.81
472,871.66
13,439,148.14
14,339,092.35
1,074,876.09
9,901,007.29
4,410,615.05
28,251,112.15
15,386,498.43
1,134,707.84
1,130,483.09
784,294.23
821,687.15
2,265,190.93
1,605,981.38
30,516,303.08
16,992,479.81
8th Annual General Meeting
40
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The Significant accounting policies adopted by the union and used in the
preparation of the Financial Statement are as follows:
a) Basis of Accounting
The financial statements have been prepared under the historical cost convention.
b) Income Recognition
Interest on Members' loans is recognised when payment is received (i.e. on cash
basis). Investments income is recognised on accrual basis; income earned on
.
certain
investments is not earned in cash but applied to the investment fund
c) Expenses
Expenses are recognised when incurred without regard to receipt or payment of
cash.
d) Provision for Loan Losses
Provision on Loan is determined based on the age of the loans.
An increase in provision for loan losses is treated as an expense in the income
statement; however a reduction is not considered as income due to the adoption of
the Prudence Concept and the cash accounting basis of recognising income.
e) Interest on Members' Savings
Interest on Members' Savings is paid on quarterly basis.
f) Depreciation
Depreciation on Fixed Assets is charged on a straight line basis as follows:
Premises
2.0%
Furniture and Fittings
10.0%
Equipment and Vehicles
20.0%
Office Equipment
25.0%
Computer and IT Equipment
33.33%
Software
33.33%
GRACCU
8th Annual General Meeting
41
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS
2. INTEREST ON LOANS
Interest on Normal Loans
Interest on Consumer Term Loan
Interest on Loan Auto Car
Interest on Koans Buildings & Land
3. INTEREST ON LIQUID INVESTMENTS
Interest on Merchant Fixed Deposits
Interest on Unibank Fixed Deposits
Interest on ADB Fixed Deposits
Interest on NTHC Investment
Interest on Fixed Deposit Esi Savings
Interest on Fixed Deposit CAL Bank
Gain on M - Fund
Interest on Merban Investment
Interest on Statutory Reserve
Interest on CUA CFF Savings
4. OTHER FINANCIAL INCOME
Interest on Current Account
Interest on UniBank Current Account
Dividend on CUA Shares
GRACCU
2014
GH ¢
2013
GH ¢
1,674,383.15
118,955.43
1,942,478.39
3,735,816.97
1,314,849.00
201,034.75
63,636.98
65,008.33
21,135.40
45,917.36
5,930.45
16,725.17
34,530.75
226,406.68
11,323.68
783.85
10,968.93
22,036.66
386,412.70
205.14
120.00
325.14
8th Annual General Meeting
33,293.80
1,549,177.55
3,443.03
12,820.79
5,433.36
11,088.97
170,777.69
3,470.82
6,129.67
120.00
9,720.49
42
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
2014
GH ¢
5. NON FINANCIAL INCOME
Entrance Fee
Commission on LPP
Withdrawal Charges
Loan Processing Fee
2013
GH ¢
2,620.00
4,810.70
24,193.65
26,743.87
58,368.22
6,750.00
25,117.94
15,913.06
4,270.00
52,051.00
726,599.98
59,699.57
372,484.35
1,756,876.39
2,915,660.29
435,517.74
267,679.15
22,760.70
13,470.00
5,894.96
317,570.21
107,168.05
10,417.27
11,210.00
13,509.60
3,338.00
1,991.70
2,000.00
149,634.62
17,330.90
17,330.90
8,430.00
8,430.00
6. COST OF FUNDS
Interest on Members' Savings
Interest on Members' Fixed Deposits
Interest on Bank Overdraft
Interest on External Loans
7. PERSONNEL COST
Salaries
SSNIT contribution, part of CU
Staff Allowance/Overtime
Staff Bonus
Medical Expenses
C-CUPP, part of CU
Acting Allowance
Other Personnel Cost
8. OCCUPANCY
Repairs & Maintenance
GRACCU
2,228.00
5,537.40
8th Annual General Meeting
529,032.98
964,550.72
43
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
2014
GH ¢
9. ORGANIZATIONAL COST
CUA Dues
Chapter Dues
Chapter Building Levy
Board Meetings Expenses
Supervisory Committee Allowances
Co-ordinators Allowances/Transportation
Loans Committee sitting Allowances
Promotions Expenses
Board and Committee Meetings Expenses
Donations
Public Relation
Training & Development
WOCCU Conference & ACCOSCA
Yearly Calendar for Members
Publicity and Education
Biennial Conference
Honorarium
Exiting Benefits
Annual General Meeting
10. SECURITY
CUA Stabilization Fund
Audit Fees
11. ADMINISTRATION
Ttavelling andTransport
Bank Charges
GSE Stock
Postage & Telephone
Repairs & Maintenance of Equipment
Audit Expenses
Office Expenses
General Expenses
Hire-Purchase Expenses
Printing and Stationery
Depreciation on Non Current Assets
GRACCU
2013
GH ¢
10,000.00
7,000.00
13,000.00
3,000.00
11,775.00
2,580.00
24,587.00
1,200.00
7,704.00
10,630.00
15,012.00
18,600.00
10,400.00
11,535.00
22,770.00
24,000.00
86,495.00
10,000.00
6,000.00
3,300.00
10,678.00
3,250.00
6,340.00
1,700.00
23,004.00
21,547.00
3,950.00
19,096.00
22,708.00
28,280.00
15,200.00
-
280,288.00
175,053.00
53,600.72
12,000.00
65,600.72
14,824.51
7,080.00
21,904.51
10,764.00
58,570.00
2,075.00
840.00
3,960.00
4,163.00
12,729.55
38,922.48
132,024.19
21,313.00
11,467.89
287.59
1,105.00
2,347.00
5,720.00
3,036.00
581.00
9,529.00
20,272.30
18,530.69
94,189.47
8th Annual General Meeting
44
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
12. PROVISION FOR LOAN LOSSES
Please see also note 24 Accumulated
Provision for Loan Losses
Increase in Provision for Loan Losses
13. LIQUID FUNDS
Cash on Hand
Subtotal Cash Balance
Money Transfer
Fidelity Current Account
ADB Current A/C
Subtotal Bank Current Balance
14. LIQUID INVESTMENTS
Fixed Deposit Merchant Bank
Fixed Deposit Ezi Savings & Loans
Fixed Deposit UniBank
Merban Holding Investment
M-fund Investment
NTHC Investment
Fixed Deposit CAL Bank
Fixed Deposit City Investment
UniBank Savings
Central Finance Facility (CFF) Savings
2014
GH ¢
2013
GH ¢
32,318.00
32,318.00
40,579.15
40,579.15
4,589.09
4,589.09
10.00
4,955.88
12,135.41
17,101.29
21,690.38
1,680.93
1,680.93
14,433.00
638,368.60
524,731.62
100,000.00
173,018.26
85,272.86
57,111.26
82,655.62
1,926,406.68
50,000.00
69,432.09
43,844.50
65,930.45
100,000.00
269,300.80
3,109,115.82
GRACCU
8th Annual General Meeting
22,211.42
36,644.42
38,325.35
406,129.67
136,175.21
1,619,261.80
45
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
2014
GH ¢
2013
GH ¢
15 .OTHER INVESTMENTS
Land Investment- Oyibi
53,500.00
Land Ajyei Kotoku
10,000.00
53,500.00
–
122,444.97
72,444.97
–
–
1,000.00
4,195.00
183,079.55
191,139.97
1,150,833.52
10,987,071.40
8,092,767.55
200,000.00
1,562,622.87
–
1,425,106.80
12,749,694.27
9,517,874.35
127,497.00
95,179.00
12,622,197.27
9,422,695.35
CUA Statutory Reserves Deposit
Land Investment - 21st Century
Building Project - Koans Estate
CUA Shares
CUA Kasoa Training Centre Shares
16. NET LOANS TO MEMBERS
Loans to Members
Welfare Loan
Consumer Loans
Subtotal: Total Loan Balance
less: accum Provision for Loan Losses
17. OTHER CURRENT ASSETS
Staff Salary Advance
836,614.00
1,000.00
4,195.00
–
2,560.00
Car Loan
GRACCU Cloth
36,705.93
108,762.70
5,428.53
65,402.70
GRACCU Buses
Welfare Bus
13,030,706.86
–
3,528,829.29
59,115.00
33,324.00
38,480.00
75,520.07
1,222,835.65
14,507,855.21
84,243.35
963,132.48
4,747,191.35
Welfare
Staff Loan
Accounts Receivables GRA
GRACCU
8th Annual General Meeting
46
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
2014
GH ¢
2013
GH ¢
18. Current Liabilities
Audit Fees Payable
12,000.00
7,080.00
Stabilization Fund payable
58,425.23
14,824.51
–
14,693.35
178,947.83
65,477.05
–
10,778.65
13,265.46
16,138.49
8,364.74
1,622.52
199,553.40
436,597.90
–
505,527.62
2,315.00
472,871.66
–
1,072,740.09
19. Members' Savings
Members' Savings
13,400,178.28
9,883,007.29
Subtotal: Total Regular Savings
Other Savings - Fixed Deposits
Subtotal: Total Other Savings
13,400,178.28
38,969.86
38,969.86
9,883,007.29
18,000.00
18,000.00
13,439,148.14
9,901,007.29
484,783.05
4,474,549.71
6,444,600.00
208,333.31
2,726,826.28
2,376,333.35
1,615,879.61
–
374,999.99
43,402.10
14,339,092.35
4,410,615.05
1,134,707.84
1,134,707.84
784,294.23
784,294.23
UniBank Current
Dividend on Members' Shares payable
GRA Income Tax payable
SSNIT contribution payable
C-CUPP contribution payable
Merchant Bank Current-Overdraft
Ezi Savings & Loans-Overdraft
CAL Bank Acc-2 Overdraft
20. External Loans
Loan from UniBank
CAL Bank Ltd
JMET China (Buses)
Loan from CUA CFF
Loan from Merchant Bank
21. Members' Shares
Members' Shares
GRACCU
8th Annual General Meeting
47
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
22. Non Current Assets Schedule
Non Current Assets
Land & Premises
Cost
0.00
Office Equipment
Furniture & Fittings
GRACCU Website
GRACCU Vehicle
Computer and IT Equipment
Software
15,704.85
15,105.50
5,000.00
33,458.41
8,075.00
Total Gross N. C. Assets
77,343.76
Disposal
Additions
0.00
0.00
Depreciation
Balance b/f Disposal
Land & Premises
Office Equipment
15,704.82
Furniture & Fittings
10,053.50
GRACCU Website
1,666.50
GRACCU Vehicle
Computer and IT Equipment
28,880.51
Software
6,865.99
Balance
0.00
0.00
9,014.00
32,448.00
8,005.00
8,000.00
31,587.47
24,718.85
47,553.50
13,005.00
8,000.00
65,045.88
8,075.00
89,054.47
166,398.23
Charge for the year
Balance
4,943.77
4,755.35
4,334.56
2,000.00
21,679.79
1,209.01
20,648.59
14,808.85
6,001.06
2,000.00
50,560.30
8,075.00
38,922.48
102,093.80
0.00
50,131.99
64,304.43
Balance b/f Adjustments
274,646.99
0.00
Appropriation
105,032.88
Balance
379,679.67
Total Depreciation
63,171.32
Net Non Current Assets
14,172.44
23. Reserves
Statutory Reserve
Education Reserve
32738.53
0.00
42,013.07
74,751.60
Operating Reserve
516,437.63
0.00
159,614.19
676,051.82
Total Reserve
823,823.15
0.00
306,659.94
1,130,483.09
GRACCU
8th Annual General Meeting
48
GRA CO-OPERATIVE CREDIT UNION LTD.
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
24. Accumulated Provision For Loan Losses
Balance b/f
Less Set Aside (see below)
95,179.00
0.00
Will be transferred to note 12. Provision
for and Write Off
Subtotal
Bad Loans written off
Increase in Provision
95,179.00
0.00
32,318.00
Accumulated Provision
for Loan Losses
127,497.00
Ageing Report
Current
1 - 3 months
4 - 6 months
7 - 9 months
10 - 12 months
Accumulated Provision
Over 12 months
No. of Loans
0
0
0
0
0
0
Total Loan Balance
Loan Balance
12,749,694.27
0.00
0.00
0.00
0.00
0.00
%
1%
10%
30%
60%
100%
set aside
Required Provision
127,497.00
0.00
0.00
0.00
0.00
127,497.00
0.00
12,749,694.27
GRACCU
8th Annual General Meeting
49
GRA CO-OPERATIVE CREDIT UNION LTD.
BUDGET FOR 2014/2015 FINANCIAL YEAR
1.
BALANCE SHEET
ASSETS
Liquid Funds
BUDGETED
ACTUAL
ACTUAL
JUNE, 2015
JUNE, 2014
JUNE, 2013
GH¢,000
GH¢,000
GH¢,000
18.00
21.00
38.00
5,200.00
3,109.00
1,619.00
Other Investments
300.00
191.00
1,150.00
Loans to Members
14,300.00
12,622.00
9,422.00
Other Assets
12,632.00
14,507.00
4,761.00
Fixed Assets
70.00
64.00
14.00
32,520.00
30,514.00
17,004.00
Members' Shares
1,450.00
1,334.00
784.00
Accumulated Reserves
1,320.00
1,130.00
823.00
Members' Savings
18,700.00
13,540.00
9,901.00
Other Liabilities
11,050.00
14,510.00
5,496.00
Total
32,520.00
30,514.00
17,004.00
Liquid Investments
Total
Capital & Liabilities
GRACCU
8th Annual General Meeting
50
GRA CO-OPERATIVE CREDIT UNION LTD.
BUDGET FOR 2014/2015 FINANCIAL YEAR (Cont’d)
2. INCOME & EXPENDITURE
INCOME
BUDGETED
ACTUAL
JUNE,2015
JUNE,2014
ACTUAL
JUNE,2013
GH¢,000
GH¢,000
GH¢,000
4,855.00
3,735.00
1,549.00
Interest on Financial Investment
821.00
386.00
170.00
Interest on Other Investment
250.00
325.00
9.00
64.00
58.00
52.00
5,990.00
4,504.00
1,780.00
3,498.00
2,915.00
965.00
40.00
32.00
41.00
Personnel
380.00
317.00
150.00
Occupancy
20.00
17.00
8.00
380.00
280.00
175.00
95.00
65.00
22.00
158.00
80.00
132.00
55.00
94.00
-
TOTAL
4,651.00
3,816.00
1,455.00
BUDGET SURPLUS
1,339.00
691.00
325.00
Interest on Loans
Non-Financial Income
TOTAL
LESS EXPENSES
Cost of Funds
Provision for Loan Loss
OPERATIONAL EXPENSES:
Organisational
Security
Administration
Exiting Expenses
GRACCU
8th Annual General Meeting
51
Notes to the Budget
The provisional budget for the 2014/2015 financial year has been drawn by
Management, being mindful of the slowing down of business in the 2013/2014
financial year and therefore has been very conservative in projecting figures
especially under realizable income.
The Board is of the view that the remarkable accelerated growth witnessed in the
2012/2013 financial year is almost over as the penetration of the membership market
is reaching the saturation point. Thus the geometric progression that was recorded in
membership resulting in equally geometric increase in savings and assets growth is no
longer attainable.
This expected trend accounts for the marginal increases that have been made in our
projected income and expenditure.
PROJECTED INCOME
Income earnable in the 2014/2015 financial is expected to come from two main
sources; interest on loans and interest on liquid investments. Any change that will
affect these two variables drastically will impact heavily on our ability to achieve
targets.
PROJECTED EXPENDITURE
i. Cost of funds will continue to remain the major expenditure item in the
medium term until we are able to liquidate our external loans.
ii. Apart from Organizational and Personnel costs which are projected to
increase a little above average, all other expenditures are expected to
increase marginally. In conformity with CUA directives the Annual
General Meeting expenses relating to 2013/2014 financial year will be
wholly charged against 2014/2015 financial year.
iii. Personnel cost will also increase averagely to be able to take care of demands
that come with inflationary trends. It is the policy of Management to do
everything necessary to attract and retain particularly trained staff and to
motivate them sufficiently to deliver.
iv. The Board intends to maintain the interest paid on members' savings in order
to encourage more savings.
In all the Board will do everything possible to be prudent in incurring expenditure but
very shrewd in managing the investments portfolio of the Union in order to maximize
ROI.
GRACCU
8th Annual General Meeting
52
GRACCU-WELFARE ASSOCIATION
STATEMENT OF INCOME FOR THE YEAR
ENDED 30TH JUNE 2013
NOTES
503,330.00
503,330.00
2013
GH ¢
241,665.00
241,665.00
241,665.00
TOTAL OPERATING EXPENSES
67,090.00
7,800.00
288,728.00
363,618.00
37,550.00
7,750.00
270,822.52
316,122.52
Net Surplus or Deficit
139,712.00
(74,457.52)
INCOME
41 Subscription
42 Interest on Liquid Investments
45 Other Financial Income
46 Non Financial Income
TOTAL INCOME
LESS EXPENDITURE:
51 Cost of Funds
52 Member Benefit
53 Occupancy
54 Organizational
55 Security
56 Administration
57 Provision for Loan Losses
2014
GH ¢
-
2
3
4
5
6
3
8
4
10
5
12 / 24
SURPLUS APPROPRIATION
Net Surplus c/f
25% Statutory Reserve
-
-
Education Reserve
-
-
Proposed Dividend
-
-
Operating Reserve
-
-
GRACCU
8th Annual General Meeting
-
53
GRACCU-WELFARE ASSOCIATION
STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE 2014
NOTES
ASSETS
11 Liquid Funds
12 Liquid Investments
13 Other Investments
14/24 Net Loans To Members
15 Other Current Assets
16/25 Non Current Assets
TOTAL ASSETS
6
14
15
16 / 24
7
22
LIABILITIES
21 Current Liabilities
22 Members’ Savings
23 External Loans
8
19
20
CAPITAL
31 Members Shares
32 Reserves
21
9
TOTAL LIABILITIES AND CAPITAL
2014
GH ¢
193,950.00
193,950.00
2013
GH ¢
5,475.41
24,050.00
29,525.41
200,000.00
200,000.00
38,480.00
38,480.00
(6,050.00)
(6,050.00)
193,950.00
(8,954.59)
(8,954.59)
29,525.41
Approved by Management Board.
KWASI ESSIEN
Chairman
GRACCU
8th Annual General Meeting
54
GRACCU-WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
The Significant accounting policies adopted by the union and used in the
preparation of the Financial Statement are as follows:
a) Basis of Accounting
The financial statements have been prepared under the historical cost convention.
b) Income Recognition
Interest on members' loans is recognised when payment is received (i.e on a cash basis).
Investment income is recognised on an accrual basis, income earned on certain investment
is not received in cash but applied to the investment fund.
c) Expenses
Expenses are recognised when incurred, without regard to receipt or payment of cash.
d) Provision For Loan Losses
Provision on Loan is determined base on the age of the loans. An increase in provision for
loan losses is treated as an expense in the income statement, however a reduction is not
considered as income due to the adoption of the prudence concept.
e) Interest on Members' Savings
Interest on Members' Savings is paid on yearly balance (Auditor should change this
if policy is different)
f) Depreciations
Depreciation on fixed Assets is charge on a straight line basis
Premises
2.0%
Furniture & Fittings
10.0%
Equipment and Vehicles
20.0%
Office Equipment
25.0%
Computer and IT Equipment
33.33%
Software
33.33%
GRACCU
8th Annual General Meeting
55
GRACCU-WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
2. Subscription
Subscription
Interest on Other Loans
3. MEMBERS BENEFIT
Birth Benefits
Death Benefits
Marriage Benefits
Disaster, accident & others
Cashiers Allowance
Medical Assistance
C-CUPP, part of CU
Other Personnel Cost
4. Organizational Cost
CUA Dues
Department of Co-operative Dues
Donations
Telephone & Sitting Allowance
Education & Training
Hotel Accom. & Protocol
Committee Allowances
Honorarium
Annual General Meeting
Other Organizational Cost
GRACCU
2014
GH ¢
503,330.00
503,330.00
2013
GH ¢
241,665.00
241,665.00
7,140.00
52,400.00
2,850.00
1,800.00
2,900.00
67,090.00
4,100.00
29,300.00
1,350.00
1,200.00
1,600.00
37,550.00
4,200.00
3,600.00
7,800.00
3,250.00
4,500.00
7,750.00
8th Annual General Meeting
56
GRACCU-WELFARE ASSOCIATION
NOTES TO THE FINANCIAL STATEMENTS
9. Non Current Asset Schedule
9. Reserves
Statutory Reserve
Balance b/f
0.00
Education Reserve
0.00
Operating Reserve
-8,954.59
0.00
Total Reserve
Ajustments
Appropriation
0.00
0.00
0.00
Balance
0.00
0.00
0.00
GRACCU
8th Annual General Meeting
57
P I C T U R E S
Mr. George Blankson - CG of GRA and Chairman of the 7th AGM
addressing the 7th Annual General Meeting
Chairman Godwin Aaron Monyo delivering his welcome address at the 7th AGM
GRACCU
8th Annual General Meeting
58
P I C T U R E S
Some dignitaries in a discussion at the 7th AGM. From left: Mr. Ken Bosompem,
Regional Manager, Accra Chapter, Mr. Romeo Odonkor Audit Manager, CUA,
Mr. Francis Fiayiya, Manager of UG Coop. Credit Union Ltd., and
Mr. John Nyarko, Accra Metro Director of Co-operatives.
Mr. George Blankson (5th Left), Commissioner General
of GRA and dignitaries at the 7th AGM
GRACCU
8th Annual General Meeting
59
P I C T U R E S
A Section of participants at the 7th AGM
A member making a
contribution during the
business session of the
7th AGM
GRACCU
8th Annual General Meeting
60
P I C T U R E S
Snacks time during the 7th AGM
Group picture of some participants at the 7th AGM
GRACCU
8th Annual General Meeting
61
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