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 2018 to 30th June 2019 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;
- The Performance indicators
- Minimum savings by members
- Issuing of cheque books
- Dumping for Loans
- Medium of communication
- X’mas Package as a promotional strategy
- Product and service of KATHCCU
- The way forward
Our membership rose from 3,623 last year to 4,048 comprising 2,590 females, 1,345 males and 113 groups this year. This represents an increase of 10.5%. Today our active membership stands at 3,196 i.e.79.0%. Non Active members stand at 852 i.e. 21%.
Fellow Cooperators, our membership includes staff of Manhyia Hospital, Kumasi Children Hospital, Kuntenase Hospital, Suntreso Hospital, Tafo Hospital, Apromase Hospital, Hart Advantist 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 on board all our dormant members to become active members once again and to get our newly appointed hospital staff to join the union. Nonetheless there is still more work to do to get more people to enroll as members.
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₵7,668,996.40 this financial year as compared to GH₵ 5,892,915.38 last year representing 23.2% increase.
Fellow cooperators, today we can report to you that KATH-CCU is 66.4% liquid above the 20% Standard by CUA.
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₵ 7,550,185.93 this financial year as compared to GH₵6,287,247.98 last year, representing an increase of 16.7%.
Fellow cooperators, the union granted loans to its members to the tune of GH₵ 2,278,167.87 as compared to GH₵2,586,679.29 last year representing a percentage decrease of 11.93 %. Our members utilized these loans in various ventures including the following;
Others—17% 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 4 types of loans;
- Loans within Savings
- Normal Loan-1:2 ratio
- 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
- Emergency Loans given to members who are on source deduction at controller. It depends on the amount deducted monthly.
- Salary Loans given to members who channel all their salary through the Credit Union.
- Credit Line / Overdraft
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₵1,819,722.80 compared to GH₵1,342,200.47 last year representing a percentage increase of 26.25%
Our total assets increased by 14.1% from GH₵10,688,431.96 in 2018 to GH₵12,447,071.59 this financial year. This is very phenomenal as it has propelled us into the Large Credit Unions Zone. It is a fact that KATH-CCU is a Large Credit Union.
In the year under review, we realized a surplus of GH₵546,299.08 as against GH₵1,160,686.10 in 2018 from our operations. This represents a decrease of 52.9%. This is solely due to the decrease of interest rates by the Central Bank form 28% to 13% on our investment. Out of the appropriated net surplus, a dividend of 17% as compared to 15% last year of share value is proposed for members. In view the Board has proposed a dividend of 5% to be paid to the shares of our members
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
ISSUING OF CHEQUE BOOKS
Effective 1st July all members should withdraw their monies with their cheque books to give more security to the funds and enhance third party withdrawal. Therefore withdrawal by third parties with authority notes will not be allowed. The Cheque book can be cleared at any GT bank nationwide. This directive is from the Central Bank.
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.
MEDIUM OF COMMUNICATION
Solely by the IT: Union’s Website, Text messages and notice boards at the Union’s office. These are the modes of communication to our members.
X’MAS PACKAGE AS A PROMOTIONAL STRATEGY
It’s solely for promotional purpose and so we set out a specific period of time for its collection. When the period’s over there is no more sharing of the package. All members shall have the minimum savings (GHȻ 100.00) and minimum shares of GHȻ 200.00 to qualify for the package.
PRODUCT AND SERVICE OF KATHCCU
1. Members’ Shares
2. Members Savings
3. Guarantee Savings
4. Mobile Money Transfer
5. Western Union Money Transfer
7. Youth Savings
8. Spouse Savings
9. Normal loans
10. Emergency Loans
11. Loans Within Savings
12. Creditline / Overdraft
13. Salary Accounts
14. Mobile Banking
15. Financial Consultancy/Advisory
16. Bank Standing Orders
We have 3 slots on the Board to be contested by members. One slot for supervisory committee and therefore nominations will be opened on 1st July, 2020. Interested members shall pick their nomination forms at the Union’s office.
THE WAY FORWARD
All members should endeavor to have their cheque books. Saving regular and service loans and have their minimum shares. I am happy to announce that the duration for emergency loan repayment has increased to 2 years. 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.
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.