MINUTES FOR IMPUMELELO SACCO ANNUAL GENERAL MEETING.

Transcription

1 MINUTES FOR IMPUMELELO SACCO ANNUAL GENERAL MEETING. Date : Time : 1000 hours Venue : Divine Healing Ministries Members Present : 680 Members Agenda 1. Opening 2. Quorum and adoption of agenda 3. Program directors remarks 4. Review and adoption of previous minutes 5. Matters arising 6. Annual reports - Chairperson 7. Closing - Supervisory - Auditors/Financial Program Director: Ms Nomathemba Ginindza. 1. Opening The meeting was opened with a word of prayer by Ms Tiny Dlamini. 2. Quorum and adoption of the agenda. The program director read the agenda and it was adopted by Nkosinathi Maziya and seconded by Tiny Dlamini. 3. Program directors remarks The Program director welcomed the membership to the annual general meeting. Requested their cooperation and to stay until end of the meeting. 1

2 4. Review and adoption of previous minutes The minutes were read by Mr Sabelo Simelane, adopted by Nomvula Mkhonta and seconded by Lungile Dlamini as a true reflection of previous discussions. 5. Matters arising. There were no matters arising. 6. Chairperson Annual report The Chairperson welcomed members of Impumelelo, Board of Directors, Staff, Auditors and visitors to the A.G.M and stated that he will deliver report of the membership business. He commended members for attending. The report covered: a. Welcoming remarks b. Annual general meeting objectives c. Membership portfolio d. Operational activities e. Policy review and development f. Workshop and seminars g. Plot development h. Education i. Credit j. Mini survey k. ITC l. Challenges m. Conclusion b. A.G.M Objectives The chairperson stated that the A.G.M was a forum set by- laws where members of the board report about the functioning of the society. c. Membership The chairperson highlighted that the membership is a backbone of the society. Stated that as a democratic and autonomous entity, members were free to join and 2

3 resign as they please. For fiscal year 2012/ members joined, 38 resigned and 11 passed on. d. Operational activities In December 2012, the BOD developed a strategic plan that serves as a road map, guiding the operations of the SACCO. It covers three specific areas; Financial Organizational Marketing e.policy review or development The board policy was reviewed to ensure that board members keep abreast with the current communication technologies and also reduce the costs on communication. The loan policy was also reviewed to increase limit on education loan. f. Plot development Titselo loan product and Umncweba savings product were developed as directed by membership towards raising funds for plot development. Policies were developed to guide the operations of these products. g. Workshops and seminars BoDs and Staff were involved in capacity building for the enhanced and professional running of the SACCO. Workshops attended during reporting period were: SACCA Congress-Uganda Leadership workshop FSRA Credit Management worship Marketing workshop Board orientation 3

4 H.Education The education committee is responsible for sensitizing members about products and operations of the SACCO. During past fiscal year the team was able to develop a marketing strategy through assistance of consultants, visited 12 institutions and developed promotional items. The committee also facilitated the SACCO s social responsibility (donated shoes and jerseys worth of E to Dudusi primary School. I. Credit The credit committee is responsible for approving and rejecting loan applications. The committee is also responsible for providing financial counseling when required. The committee was able to meet as per schedule. They also facilitate payment of delinquent loans. J. ITC This provides services to assist the SACCO on members financial activity for credit worthiness and to recover delinquencies. The SACCO commenced utilization of this service during 2012/2013 fiscal year. K. Mini Survey During SGM of March 2013, membership was requested to fill questionnaires. The aim was to get relevant SACCO products to members. The findings were that members were still happy with the current products and there was no need to add more. Members recommended the marketing of holiday savings. L. Challenges o Introduction of 10% withholding tax which is charged on interest on members savings and shares. o Introduction of the Financial Service Regulatory Authority (FSRA). There are levies to be paid by the SACCO for regulation and licensing. o Some members still do not meet Employment Act requirement of 33% net pay thus they unable to access services and often lead to resignations. 4

5 o Some members have no culture of saving, they are interested in and concerned about credit hence they become heavily in debt. o Unavailability of stop order facilities which makes it difficult for collection and lead to delinquency. o The persistent availability of unallocated funds. Members deposit money without references and failure to remit deposit slips to the SACCO. o Meeting attendance by non members just for lunch allowance. o Threat that SACCOs will be removed from Government payroll system. M. Conclusion The Chairperson commended the membership for electing the current board. He mentioned that every board member had been diligent in exercising their tasks. The staff had continued to display commitment, hard work and determination for the benefit of the membership. He requested members to treat them with respect and compassion. He also appreciated the support from SASCCO and the Office of the Commissioner of Cooperatives. He stated that Impumelelo SACCO has been growing in leaps and bounds over the years, financially, technically and organizationally. He mentioned that there is still room for improvement and urged every member to play their part in ensuring that the Sacco s vision is realised. 7. The Supervisory Committee report. The report was delivered by the Chairperson of the committee, Mr Gcina Dlamini. On behalf of Supervisory committee, He welcomed members and appreciated their presence. He thanked members for attending AGM. The committee s report covered Control procedures Accounting environment Control environment. a. Control Procedures 5

6 The committee observed that policies and procedures were in place and were reviewed as per need. Duties were observed to be sound and there was productivity. b. Accounting environment The accounting system (Mtatane) is appropriate and adequate in record keeping. It is able to detect areas of concern e.g. delinquencies. The quality of books and record keeping system was found to be appropriate and safe as it tallies with the international accounting standards. c. Control environment The SACCO has functional committees which were performing diligently according to policies and strategic plan. Authority and responsibilities were according to the By-Laws of the society. There is still the challenge of suspense balance and delinquent loans. Also the society faces a transitional period to be regulated by FSRA. In conclusion the Chairperson of the Supervisory committee thanked the board and staff for working tireless towards improving the SACCO operations. He thanked the membership for entrusting the supervisory committee with the responsibility of internal auditing. The reports were adopted by Tiny Dlamini and seconded by Sabelo Simelane. 8. Financial and Audited Report The report was delivered by the treasurer (Mr. Penuel Fakudze), the report covers the following activities: (i) (ii) (iii) (iv) Preamble Financial Position Finance Performance Bad Debt Recovery 6

7 (v) Dividends Financial Position Asset Portfolio The treasurer mentioned that the audited statement reflected an increase of 16% in assets. The asset growth was due to financial assets, member s loans, cash and cash equivalents. Equity and Liabilities The treasurer mentioned that the audited statement showed a growth in share holding, Reserves and Member s savings (Reserves had increased from E 3, to E 5, , savings form E 26, to E 31, and shares from E 2, to E 3, ) Financial Performance According to the audited statements the society had recorded 50.7% increase in surplus for the year 2013(in 2012 surplus recorded was E 627, 409 whilst in 2013 audited statement reflects E 1, Budget Analysis Income and Expenditure The treasurer reported that according the budget income estimates, the society had a short fall in notable items like bank and investment interest and subscriptions. He reported that the following expenses had utilized more than its budgeted allocation: - A.G.M expenses - Depreciation - Employees Cost - Rent Paid 7

8 Auditors Opinion The auditor (Mr Chimwanza) from FIPS audit firm thanked the society for entrusting their company to audit the SACCO s activities for the year 2012/2013. He reported that the financial statements fairly present in all material respects the financial position of the society at 30 June 2013 and the results of its operations and cash flow information for the period then ended in accordance with International Financial Reporting Standards in the manner required by the Cooperative societies Act He mentioned that the society was able to meet its member s needs any time the need arises, and also mentioned that the supervisory committee doing its best in monitoring the society s operations. The auditor mentioned that the general membership should be aware of 10% withholding tax that was charged on interest on shares and savings. He reported that during their audit, they were concerned with the issue of unallocated funds, as reflected on the society s books. The auditor mentioned that during his audit examination, they noted that all subcommittees were doing their duties as expected. T-shirts The general membership showed an interest in having T-shirts bearing the company logo. Members requested that the T- shirts should be sourced and sold to interested a fee of E which will be deducted from their salaries. The Financial Report was adopted by Alma Dlamini and seconded by Thandi Zikalala. 7. Closing Remarks 8

9 The program director thanked the membership for their cooperation and participating during the meeting. The meeting was closed with prayer by Ms Thandi 1300 hrs. Minutes Recorded by Thembie Mabeleza Signed by (chairperson).date.. 9

10 10