The Greater Accra Regional Director of Department of Co-operatives, the Tema Metro Director of Department of Co-operatives, the Tema Chapter Manager of CUA, the Audit Team, fellow Co-operators, distinguished Ladies and Gentlemen.
It is with great pleasure that as Chairman of the Board of Directors of our noble society – North Tema Co-Operative Credit Union, I address you this morning on the state of our society on the 32nd Annual General Meeting on the theme “North Tema still your financial anchor even in Covid 19 times”.
I find the theme chosen by the organizers of our AGM to be very appropriate and I want to thank the organizers together with the Management and staff not only for the theme but also for all the efforts that have been put in to ensure that we are able to successfully organize this AGM.
The framers of the Bye laws in their wisdom deemed it important that as a society/family we should meet periodically (in our case quarterly) during the year and at the end of the year to fraternize, share ideas and for the stewards to render audited accounts to members as well as receive feedback on the thoughts, feelings, concerns, aspirations and dreams of members.
It is gratifying to note that in spite of all the difficulties – the unavailability of our usual meeting venue, an upcoming election, a crowded calendar and not the least the restrictions of Covid 19 , we have been able to come together to hold this AGM. This reinforces the co-operative spirit in us that as individuals there is so little we can do but together we can do so much. On behalf of the other Board members, we express our gratitude for your presence, support and contributions during this AGM.
Per your mandate you elected a seven-member Board comprising of:
Aaron Sagoe Chairperson
Nicholas Opoku Vice Chairperson
Nii Laryea Ashia Secretary
Seth Odonkor Assistant Secretary
Mary Adwoa Anaman Treasurer
Victoria Badagbor Assistant Treasurer
Makafui Sebuabeh Member
The Board would like to thank you for the trust you have placed in us to steer the affairs of this great society for four years. On behalf of the Board of Directors, it is my pleasure to present to you the annual report for the year ended 30th June, 2020.
If last year was challenging as a result of the financial clean up by Bank of Ghana, then the situation has been aggravated by the Covid 19 pandemic. The worldwide pandemic has not only affected the financial situations of members but has also affected the fortunes of our society.
Notwithstanding the numerous challenges we faced as a society, I am happy to state that the leadership of our Credit Union has been able to manage the business of the society in a proficient, prudent and gainful manner during these hard times to serve members successfully.
MEMBERSHIP
In the course of the year, our membership increased by 2,282 as compared to 1,282 indicating a significant increase of 78%. The huge jump was caused by intensive marketing activities by the marketing team. It is the hope of the Board that with the formation of the Marketing Champion club made up of both staff and members, the society will be able to attract new members who will commit themselves to the worthy cause of the society. The challenge of the society over the years has been how to keep every member active and committed to the cause. It is our aim to put in place strategies that will revive and awaken dormant members and bring them back to the fold.
FINANCIAL PERFORMANCE
Ladies and gentlemen, the Covid 19 pandemic posed a serious challenge to the activities of the society and as a Board, we had to listen to the concerns of members as well as remain competitive in the market especially during the lock down period. We reduced interest rate on all our products not only to remain competitive but also to alleviate the plight of members. In spite of these, our Credit Union saw moderate increase in terms of total asset, deposit mobilization, income generation and net surplus for the 2019/2020 financial year. Thank you for your acceptance and patronage of the Union’s products and services. This is a perfect indication of your allegiance and trust in NTTCU.
Total Assets
The total assets of the society at the end of the 2019/2020 financial year was GHC 35,814,974.75 as against GHC 30,325,871.32 in the 2018/19 financial year indicating an increment of 18.1% o. Although this was short of the 23% increase experienced in the 2018/2019 financial year due to aforementioned reasons, it is worth mentioning that such a growth is satisfactory. Again I am pleased to inform members that good income generation strategies coupled with prudent investment practices put in place by the stewards of this great Credit Union will continue to strengthen our financial position.
Deposit
The society continues to experience increase in deposits and during the year under review, the society mobilized the sum of GHC21,235,214.44 in the form of savings, current account, fixed deposit, susu, kiddy account and Me-daakye Anidaso. This fell short of the previous year’s deposit mobilization of GH21,744,201.35 by 2.3% due to the effect of financial sector clean up exercise by Bank of Ghana and COVID-19 pandemic.
The Board and Management have mapped up strategies to help mobilise deposit remotely. In addition to Deposit made easy and other electronic means of payments, plans are underway to collaborate with United Bank of Africa (UBA) to introduce Automated Clearing House (ACH) Direct Debit system into the Union’s operations to help members set direct debit with their respective bankers to increase deposit mobilization.
Added to this, the Board has increased minimum monthly savings from GHC60.00 to GHC100.00. We, therefore, encourage members to adhere to the minimum savings in order to grow their investments as well as place the society on a solid foundation.
In addition, to help boost the deposit mobilization drive of the society, Management and the Board has developed a new savings product dubbed ‘Smart Savings Plan’ for implementation in the 2020/2021 financial year. The product seeks to help members save towards a specific medium term goal.
Loans
In all 3,092 loans were disbursed to the tune of GHC16,110,720.00 in the year under review as compared to GHC16,078,000.00 in 2018/2019 financial year for obvious reasons mentioned above depicting a minor increase of 0.2%.
Also I am happy to mention that as a happy family the society took the initiative to award members a stimulus package for three (3) months by reducing monthly interest on loans to alleviate hardships encountered by members as a result of the COVID-19 pandemic as follows:
- Personal Loans with savings from 2.65% to 2.3%
- Personal Loans above savings from 3% to 2.7%
- Business Loan from 3.8% to 3.5%
- Church Loan from 4% to 3.7%
In terms of loan repayment, there was a moderate increase of 17.8% from GHC13,860,100.60 to GHC16,334,386.78 during the same period.
As loan delivery remains a core business for the upkeep of the society, the leadership has introduced new loans products in the 2020/2021 financial year.
Delinquency
Fellow Co-operators, as a community based Credit Union, NTCCU operates on the philosophy of ‘People helping People’ by collecting savings and providing loans to its members to meet their financial needs. Equally member borrowers have a greater responsibility to repay their loans on time for the smooth running of the society. I must emphasize that society has done its best by providing so many avenues for members to repay their loans including walk-in, mobile money through the Union’s momo account, mobile money through ‘Deposit Made Easy’, post-dated cheques among others.
Irrespective of all these avenues some members are recalcitrant in complying with the Union’s loan repayment terms. Such conduct is restraining the Union from receiving its expected revenue in the form of interest and at the same time increasing the Union’s cost of operation.
To bring the delinquency rate to CUA accepted standards, the Board and Management have engaged the services of a debt collection company to apply the needed measures including legal action to recover overdue loans at the cost of the defaulting members.
Member Share
The Union’s Member share capital as at June 30, 2020 stood at GHC1,458,548.84 signifying 4.1% of the Union’s total assets as against the expected CUA standard of 5% of total asset. It is the shares that make one a proud member of our society and we entreat members to go above the minimum and own the society by increasing their share values.
Again to reflect the economic trends of the times, the Board in consultation with Management resolved to increase member shares from GHC100.00 to GHC200.00 and we encourage members to go above the minimum and own the society by increasing their share values. Management will in the course of the year embark on promotions to increase member shares and we encourage all and sundry to be part of this membership drive.
Surplus
Amidst the difficult economic terrain in the 2019/20 financial year, the society was able to make a modest net surplus of GHC466, 466, 44 representing 54.96% decrease over the previous year’s amount of GHC1, 035,813.39. We should be proud that during these difficult times when companies were shut down and workers were laid off, our society stood firm as well as cushioned us during the period. As stewards of the Union we will do our best to improve upon this performance in the 2020/2021 financial year.
Dividend
Much as we would want to pay last year’s dividend to members, we are unable to do so due to the negative effect of the Covid 19 on our activities. To continue with prudent management of our funds for the growth of the society, we propose the payment of 10% dividends on members’ shares. As usual we recommend that half of the dividends should be paid into member’s current account and the other half added to their shares.
LOCKED UP FUNDS
We are pleased to inform members that some recoveries have been received from PENT Assets and Wealth Management as well as IGS Financial Services Limited which will further strengthen the financial situation of the Society. Board and Management will continue to do everything within our means to recover the outstanding sums with the remaining investment houses.
NEW INITIATIVES
- New Products
Management and Board in recognition of the important role that the granting of loans play in the development of members and the growth of the society, has declared the 2020/2021 financial year as a year of LOANS. We would like to encourage members to contact staff and Management to take advantage of this initiative for the betterment of members, groups and the society. In addition to Personal, Back-to-school, Business, Church and short-term loans, two new loan portfolios have been developed for our benefit, namely Susu Loan and Special Business Loan to support susu contributors and Small and Medium Enterprises (SMEs) grow their businesses.
- Smart Savings Plan
The Board and Management have developed Smart Savings Plan for implementation to enrich members’ savings towards specific medium term goals. As you have always been patriotic, we trust that a greater number if not all will patronise this product.
- Automated Clearing House (ACH) Direct Debit
Plans are underway to collaborate with United Bank of Africa (UBA) to introduce Automated Clearing House (ACH) Direct Debit system into the society’s operations to help members especially salary workers to set direct debit with their respective bankers for savings, loan repayment, fixed deposit, Me-Daakye Anidaso investment etc.
- Personnel Recruitment
NTTCU has come of age and in projecting for the future, we have realised the need to recruit, train and develop the manpower of the Union. In this vein, we are going to engage the services of qualified and competent personnel to augment the staff that we have in order to remain competitive and take the society to a new height.
- Renovation Of Buildings
In reference to the Union’s five–year strategic plan it is stipulated that the Union will refurbish its buildings to create a member friendly environment to enhance and sustain quality service to members. For this reason the Board and Management have factored renovation in the 2020/2021 financial year budget to give a facelift to its buildings. In view of this the Board would like to request members to embrace its decision to remodel the interior and exterior structure of F. E. Daniels Memorial House as well as the frontage of NTCCU House One to give the buildings an ultramodern look that befits its status.
This initiative will not only assist in preserving the building for a long term but will also add to the beauty and branding of the society. We would plead with members to bear with us during the period of renovation. We assure you that we would do all it takes to minimise any inconvenience that might arise during this period.
CONCLUSION
NTTCU remains and will continue to be your financial anchor even in Covid 19 times. When situations and conditions arise that changes the status quo of an individual, institution or society, it is wise for that person or entity to change in order to adapt to the new occurring. Anything short of constructive change will lead to the extinction of the individual or society.
The Covid 19 pandemic has made the times in which we live very unpredictable and difficult. Having said that we also know that there are certain principles that will guide and sustain us even in difficult times.
It is worth mentioning that cultivating a good saving habit, investing in things that matter most, cutting unnecessary expenditure, living a healthy life and not the least cutting one’s coat according to one’s size has always remained lifelong principles that has never failed anyone even in difficult times.
On behalf of the Board I want to assure you that North Tema Co-Operative Credit Union will continue to serve you to the best of our ability and as stewards, we will continue to cover your back, grow your investments and grow the society.
It is our aim that as soon as possible, we would start holding our usual quarterly meetings to enable us enjoy the benefits that comes with these regular meetings.
We encourage you to observe the Covid 19 protocols and keep safe to enable you enjoy the fruits of your labour which we believe with the support of NTTCU we can all achieve in our lifetime.
GOD BLESS YOU
GOD BLESS NORTH TEMA CO-OPERATIVE CREDIT UNION
GOD BLESS OUR HOMELAND GHANA.
SIGNED
AARON SAGOE
CHAIRMAN (DECEMBER 2020)