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BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
ANNUAL REPORT 2013
Notes to the Consolidated Financial Statements
For the year ended March 31, 2013, with comparative figures for 2012
(Expressed in Barbados dollars)
24. COMMITMENTS AND CONTINGENCIES
(i) Operating lease commitments
Where the Group is the lessee, the future minimum lease payments under non-cancellable operating leases are as follows:
2013
2012
Less than one year
$ 598,167
341,592
Between one and five years
1,040,145
87,984
$ 1,638,312
429,576
(ii) Loan commitments
2013
2012
Consumer loans approved and pending disbursement
$ 14,688,864
13,031,524
Mortgage loans approved and pending disbursement
27,882,596
22,824,659
Available balances on line of credit accounts
15,265,307
14,086,275
$ 57,836,767
49,942,458
(iii) Loan facilities
Loan facilities committed but not recognised in the financial statements as at March 31, 2013 are as follows:
(a) an approved line of credit facility of $10,000,000 (2012: $10,000,000) with a bank. This facility is secured by a first legal
mortgage over the property at Belmont Road. At March 31, 2013 this facility was undisbursed.
(b) an approved line of credit facility of $125,000 (2012: $125,000) with a bank for the purpose of securing the corporate
credits used by the Credit Union during the normal course of business. This facility is secured by an equivalent value of
held-to-maturity investments. The commitment due on this facility at year end was $ 13,740 (2012 - $19,853).
(iv) Legal proceedings
At March 31, 2013, there were certain legal proceedings against the Group. However, based on the advice of legal counsel it is
not practicable to determine the potential loss to the Group.
25. FINANCIAL RISK MANAGEMENT
25.1Introduction
Risk is inherent in the Group’s activities but is managed through a process of on-going identification, measurement and
monitoring, subject to risk limits and other controls. This process of risk management is critical to the Group’s continuing
profitability and each individual is accountable for the risk exposures relating to his or her responsibilities. The Group is exposed
to credit risk, liquidity risk, market risk and operational risk.
The Group’s aim therefore is to achieve an appropriate balance between risk and return and minimise potential adverse effects
on its financial performance.
The independent risk control process does not include business risks such as changes in the environment, technology and
industry. The Group’s policy is to monitor those business risks through its strategic planning process.
Risk management structure
The Board of Directors is responsible for the overall risk management approach and for approving the risk management
strategies and principles.
Supervisory and Finance Committees have the responsibility to monitor the overall risk process within the Group.
The Group’s policy is that risk management processes are audited annually by the Internal Audit function, which examines
both the adequacy of the processes and the Group’s compliance with the processes. Internal Audit discusses the results of all
assessments with management, and reports its findings and recommendations to the Supervisory and Finance Committees.
