Credit Union Annual Report 2022 - Flipbook - Page 73
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
11. Information Technology fund
The Credit Union established this fund in 1993 by appropriation from the Undistributed Surplus to enable the Credit
Union to set aside funds to provide longer-term mortgage loans to members. At the AGM on November 28, 2018, the
members agreed to transfer $693,400 from the Mortgage Fund to supplement the dividend. Members resolved that the
remaining balance of $904,974 is now designated for Information Technology (“IT Fund”) purposes. Included in
$170,108 of expenses claimed from Information Technology fund are $67,444 of depreciation of Computer Equipment
and Computer software, and $102,664 of non-interest expenses.
12. Development fund
The Credit Union established this fund in 1992 by appropriation from Undistributed Surplus for future devel opment of
the Credit Union. During the current financial year there were no changes made to the Development Fund.
13. Scholarship fund and training fund
On November 24, 2021, at the AGM in respect of the year ended July 31, 2021, the members resolved to transfer an
amount of $300,000 (2021: $200,000) to the Scholarship grants and $206,482 (2021: $102,803) to training of the
volunteers and staff. This was satisfied by way of appropriation of funds from the Undistributed Surplus in
accordance with Article XIV of the Rules (Note 21).
14. Dividends paid/payable
On November 25, 2020, at the AGM in respect of the year ended July 31, 2021, the members resolved to pay a
dividend of 2.1% or $7,744,278 (2021: 2.8% or $8,147,484) This was satisfied by way of appropriation of funds from
the Undistributed Surplus and was recorded in the financial statements for the year ended July 31, 2022.
15. Loan interest rebate/payable
In 2022 a 2% (2021:2%) loan interest rebate was accrued in amount of $340,228(2021: $350,000) and is recorded as
a debit to loan interest income and a credit in accounts payable and accrued expenses.
16. Services fees – cash advances
The Credit Union offers cash advances to members whereby members can obtain an unsecured payroll advance, which
are repayable in full within one month from date of grant. Subject to certain qualifying criteria and conditions,
the members are permitted to obtain a cash advance up to 50% of their monthly salary less any loan payments to be
repaid in the following month.
The Credit Union does not charge any interest on cash advances but levies a service fee of 12% (2021: 10%) of the total
value of the sum advanced. During the year ended July 31, 2022, the cash advance fees earned was $363,994
(2021: $267,620) and is included within interest income – service fees cash advances, in the Statement of
Comprehensive Income.
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