REPORT OF THE BOARD OF DIRECTORS TO MEMBERS AT THE 12TH ANNUAL GENERAL MEETING.


 

Our Slogan: KATH-CCU—Members First!

The Regional Director of Co-operatives, the Metro Director of Co-operatives, Regional Manager of CUA, Representatives of CUA, Representatives of Department of Co-operatives, invited Guest, Fellow Co-operators, ladies and gentlemen, on behalf of the Board of Directors of KATH-CCU, I present our report which covers the performance of KATH-CCU from 1st July 2019 to 30th June 2020 to the members here present.

The vision and mission of this great movement of ours continue to be realized and actualized with each passing year and I am grateful to all for your immense contributions to this feat.

My presentation will briefly highlight the following areas;

  1. Membership
  2. The Performance indicators
  3. Minimum savings by members
  4. Dumping for Loans
  5. Letter from KATH Management
  6. The way forward

MEMBERSHIP

Our membership rose from 4,048 last year to 4,504 comprising 2,896 females, 1,476 males and 132 groups this year. This represents an increase of 10.5%.  Today our active membership stands at 3,321 i.e.73.7%. Non Active members stand at 1,183 i.e. 26.3%.

Fellow Cooperators, our membership includes staff of Manhyia Hospital, Kumasi Children Hospital, Kuntenase Hospital, Suntreso Hospital, Tafo Hospital, Apromase Hospital, Hart Adventist Hospital, KMA Hospital, KMA Fire Service staff, Bekwi Fire Service staff, Ambulance Service Staff, Kumasi Prisons Staff, SDA Senior High School, Armed Forces Military Hospital, Armed Forces Senior High School and Armed Forces Junior High School.

Let me thank the education committee for their tremendous efforts to get all these institutions on board. Nonetheless there is still more work to do to get more people to enroll as members.

We also wish to inform members here present to come to the office to update their information in terms of beneficiary, their active phone numbers, address and other relevant information.

PERFORMANCE INDICATORS

Investment

Fellow Cooperators, over the past decade, the Board with the Manager have made serious efforts to invest our surplus income in low-risk ventures in various reliable investment houses. These liquid investments have risen to the tune of GH₵ 10,640,303.01 this financial year as compared to GH₵ 7,668,996.40 last year representing 27.9% increase.

Fellow cooperators, today we can report to you that KATH-CCU is 71.9% liquid above the 20% Standard by CUA.

Savings

Even though the micro and macro financial environment of Ghana have been unstable, turbulent and not very favourable for members in the year under review to save nonetheless our members’ savings rose to GH₵ 10,320,253.59 this financial year as compared to GH₵ 7,550,185.93 last year, representing an increase of 26.9%.

Loans

Fellow cooperators, the union granted loans to its members to the tune of GH₵ 2,313,552.89 as compared to GH₵ 2,278,167.87 last year representing a percentage increase of 1.5 %. Our members utilized these loans in various ventures including the following;

Housing—34%

School Fees—27%

Business Capital–23%

Transport—3%

Others—13%  rent advance, medical bills, Agriculture and funerals

The union will continue to empower its members in all life endeavors to be happy all the time.

Invited guests, all these loans granted fell within our 6 types of loans;

  1. Loans within Savings
  2. Normal Loan-1:2 ratio
  3. Special Loan (Ability To Pay) – 1:4 ratio. Given to members with GH₵1,000.00 shareholdings which repayment will be based on strictly source deduction
  4. Emergency Loans given to members who are on source deduction at controller. It depends on the amount deducted monthly.
  5. Salary Loans given to members who channel all their salary through the Credit Union.
  6. Credit Line / Overdraft

Shares

Our minimum member shares by KATHCCU standard is ₵200 but a member can hold shares up to any amount higher but less than 20% of our total assets.

Fellow cooperators, during the year under review, members’ shares rose to GH₵ 2,078,950.19 compared to GH₵ 1,819,722.80 last year representing a percentage increase of 12.5%

Total Assets

Our total assets increased by 20.6% from GH₵ 12,447,071.59 in 2019 to GH₵ 15,682,323.21 this financial year. This indicate that KATH-CCU is a Large Credit Union.

Surplus

In the year under review, we realized a surplus of GH₵ 548,372.73 as against GH₵ 546,299.08 in 2019 from our operations. This represents an increase of 0.4%. This insignificant increase is due to the reduction on rates on investment by the Central Bank, the effect of the financial Sector clean up and the reduction in loan interest by the Union. In view of the challenges in the financial sector clean up, the Board has proposed a dividend of 5% to be paid on the shares of our members.

MINIMUM SAVINGS

I will encourage all our members to continue to save and maintain the minimum saving of GH₵ 100.00 at all times. This means that members can not withdraw below the GHȻ 100.00

DUMPING FOR LOANS

Members have the habits of depositing huge sums of money with the purpose of obtaining loans instantly. This practice is not allowed in Credit Unions. Loans given to members are based on regular savings and not dumping.

LETTER FROM KATH MANAGEMENT

We have received about 4 letters from the Management of KATH to the effect that, we need to pay for our electricity consumption. As such, we have to surcharge our members with the cost of the electricity consumption and also purchase a standby generator if members agree. I must say we have to increase our interest rate on loans from 2.5% (16.25% per annum) to 3% (19.5% per annum) if the proposal from KATH management is carried through.

THE WAY FORWARD

All members should endeavor to have their cheque books, save regularly, service their loans and have the minimum shares. I am happy to announce that the duration for emergency loan repayment has been increased to 2 years and the interest rate has been reduced from 32% to 22.75%. Loan defaulters are becoming a bane to the Credit Union and therefore urge members to honor their loans obligations.

We have opened up our common bond to enroll all workers on Controller and Accountant General Payroll in the Ashanti Region.

APPRECIATION

I thank the Board, Executives, Manager and staff of the union and all members for contributing to this success of KATHCCU. One day our story will be told that we all contributed to make KATHCCU a large credit union in Ghana.

Thank you and God bless us all.

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