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St Albans District Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority


  © St Albans District Credit Union 2011



Directors' Report

The   Directors   present   their   report   and   the financial   statements   for   the   year ended 30th September 2016.

2015/16 was another successful year for the Credit Union with growth in a number of areas. Total membership remained quite steady with both full and junior membership showing only small increases, although some removal of lapsed members from the register during the ye.ar has distorted the year end figures. Share deposits again showed a significant increase overall, up by £121,604 (up 16.9%), with both adult and junior saving showing good growth. The value of Credit Union loans granted in the year increased to £175,100 (up 14%), but the number of loans granted fell from 127 to 1 18. The Board policy of tighter control of lending over the last three years has affected the Credit Union's loan

book and at the year end this was showing only a small increase over 2014/ 15 at £225.000.The total loans granted since formation of the Credit Union in 2002 is now just under £2 million.

During the year we also granted 8 Local Authority Loan to the value of £ 16.930, under the existing agreement  with St Albans District Council, to assist local families into the private sector housing. This was a significant reduction on the 2014/ 15 figures, but the Credit Union has no control over the number or timing of these loans. The agreement is due to be reviewed in March 20 17.

The general growth of the Credit Union, the continued pressure on the control and recovery of bad debts on loans, and the contribution made by the fees for managing the District Council's loan scheme has resulted in a surplus of £8.424 for the year and the Board will be recommending a year-end dividend of 0.5% to the AGM.

During the year. a second payroll deduction scheme was agreed, with the West Hertfordshire Hospitals  NHS Trust following lengthy discussions. This covers all staff and employees in the Trust's three local hospitals. To date take-up into the scheme has been low and work is still needed to raise awareness within the hospitals.

In December the Credit Union was awarded a grant of £20,000 from the Lloyds Banking Group Credit Union Development Fund to specifically improve its IT system.  Following an extensive review by a small working group, the Board approved the purchase of the Curtains IT platform in March 2016 and this was installed and made operational  within the St Albans office from I July 2016.  At the financial year end the first phase covering the transfer of records from the previous system and the immediate entry of member transactions has been completed and work is continuing on the introduction of on-line banking. To assist in this, the Board has further agreed that the Credit Union 's present website should be upgraded and a local website design company is assisting the Credit Union 's Marketing Group to produce a more modern website. It is expected that both online banking and the new website will be available to members early in 2017. Later in the year a further grant of £2,750 was awarded by St Albans District Council to assist the purchase of hardware to support the new systems. The expenditure on new technology during the year. over and above the grants received, has had a negative effect on the surplus reported for the year.

The Board and its committees continue to review ways in which the Credit Union can increase its loan book.A number of methods of marketing new loans have been tried. including door to door leaflet drops in targeted areas of St Albans, encouraging existing members with lower interest loyalty loans and targeting local rail travellers with season ticket loans. During the year, the Credit Committee also introduced two new loan products: a Christmas Savings Loan and a low interest Home Owners’ Loan.

The Credit Union office in Hatfield Road, St Albans continues to be very well used. The Harpenden. London Colney and Wheathampstead offices have continued their limited opening and provide an important presence in their community. A single session is run each Wednesday in the Local Services Hub based in the St Albans Civic Centre.

Treasure Chest schemes continue to be run in a number of local primary schools.

The Credit union continues to be represented at credit union forums, both at regional meetings organised by ABCUL Eastern Region and at the more local Hertfordshire Credit Union Forum.

The Board  wishes  to thank all the Credit Union's volunteers and its single paid staff member for their work in achieving a sucessful 2015/ 16.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Co-operative and Community Benefit Act law and Credit Union law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the credit union and of the excess of income over expenditure of the credit union for that period. In preparing those financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed subject to       any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is      inappropriate to presume that the credit union will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the society and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Act 2014. They are also responsible for safeguarding the assets of the credit union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors confirm that so far as they are aware, there is no relevant audit information of which the credit union's auditors are unaware. They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the credit union's auditors are aware of that information.

The Directors' Report was approved by the Board of Directors on and signed on its behalf by:

Independent Aud itors' Report

We have audited the financial statements of St Albans & District Credit Union Limited for the year ended 30th September 2016 which comprise of the revenue account, the balance sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

This report is made solely to the society's members, as a body, in accordance with section 83 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the society's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility  to anyone other than the society and the society's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors' Responsibilities the directors are responsible for the preparation of financial statements which give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK

and Ireland). Those standards require us to comply with the Auditing Practices Board 's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the credit union 's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors’ report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. lf we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the credit union’s affairs as at 30th September 2016 and of its income and expenditure for the year then ended; and

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and with the Co-operative and Community Benefit Act 2014 and the Credit Unions Act 1979.

the information provided in the directors' report is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Co-operative and Community Benefit Act 2014 & Credit Unions Act 1979  require us to report to you if, in our opinion:

proper books of account have not been kept by the credit union in accordance with the requirements of the legislation,

a satisfactory system of control over transactions has not been maintained by the credit union in accordance with the requirements of the legislation,

the revenue account or the other accounts (if any) to which our report relates, and the balance sheet are not in agreement with the books of account of the credit union.

we have not obtained all the information and explanations necessary for the purposes of our audit.

Appleby & Wood

Statutory Auditors

40 The Lock Building 72 High Street

London E 15 2QB


Year 2015/16

Year 2014/15











Saings - £000









Loans Granted











Out on Loan


CU Funds

Other Funds








Total Assets £000 (year-end)



Surplus £000



St Albans District Credit Union