Page 9 - Kildare CU 2022 AR

REPORT OF
THE BOARD OF DIRECTORS
The directors present their report and the audited financial statements for the financial year ended 30 September 2022.
Principal activities
The principal activity of Kildare Credit Union Limited is the provision of savings and loans to members in its common bond. The Credit Union manages its members’ shares, capital and loans to members so that it earns income from the margin between interest receivable and interest payable.
Authorisations
The credit union is authorised as follows:
• A Credit Union entitled under the European Union (Payment Services) Regulations 2018 to provide payment services.
Business Review
The directors are satisfied with both the level of business and the year-end financial position. The directors expect to develop and expand the current activities of the Credit Union and they are confident of its ability to operate successfully into the future. During the year the Credit Union incurred a liability of €327,950 to the Irish League of Credit Union’s Defined Benefit (“ILCU DB”) pension funding plan. This has been disclosed in Note 7 of the accounts. A Savings Protection Scheme (“SPS”) refund of €350,477 was receivable in the period, 90% of this refund was received as at 30 September 2022.
The ongoing effects of the war in Ukraine, high inflation and heightened uncertainty are reducing consumer and business confidence. There is a lot of uncertainty with high inflation reducing the real disposable incomes of households, volatility of gas prices across Europe and the changing interest rate environment. This uncertainty may have implications on the credit union’s ability to grow its loan book and generate income.
Results and distributions to members
The excess income over expenditure for the year is set out in the Income & Expenditure account on page 13.
The Board propose to the membership a payment of dividend and a rebate of loan interest for the current year in line with note 6 in the financial statements, subject to agreement by the membership at the Annual General Meeting.
Principal Risks and Uncertainties
The main financial risks arising from the activities of Kildare Credit Union Limited are credit risk, liquidity risk, interest rate risk and continuous compliance with regulatory and legislative requirements. The Board reviews and agrees policies for managing each of these risks which are summarised at Note 25.
Post balance sheet events
There were no significant events affecting the Credit Union since the balance sheet date.
For the year ended 30 September 2022
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