BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED
NON-CONSOLIDATED ANNUAL REPORT 2015
52
BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED
Notes to the Non-consolidated Financial Statements
For the year ended March 31, 2015
(Expressed in Barbados dollars)
41
23. Commitments and Contingencies...(continued)
(iv) Lease commitments
The Credit Union leases branch facilities under operating leases. Payments made under these
leases are recognised in the statement of income on a straight-line basis over the term of the lease.
The future minimum rental payments related to these commitments are as follows:
2015
2014
Less than one year
$
627,265
296,196
Between one and five years
2,903,100
1,184,784
$ 3,530,365
1,480,980
During the year, $753,149 (2014 - $285,915) was recorded as an expense in the statement of
income in respect of operating leases.
24. Financial Risk Management
Introduction
Risk is inherent in the Credit Unionʼs activities but is managed through a process of on-going
identification, measurement and monitoring, subject to risk limits and other controls. This process of risk
management is critical to the Credit Unionʼs continuing profitability and each individual is accountable
for the risk exposures relating to his or her responsibilities. The Credit Union is exposed to credit risk,
liquidity risk, market risk and operational risk.
The Credit Unionʼs aim therefore is to achieve an appropriate balance between risk and return and
minimise potential adverse effects on its financial performance.
The independent risk control process does not include business risks such as changes in the
environment, technology and industry. The Credit Union's policy is to monitor those business risks
through its strategic planning process.
Risk management structure
The Board of Directors is responsible for the overall risk management approach and for approving the
risk management strategies and principles.
The Supervisory Committee has the responsibility to monitor the overall risk process within the Credit
Union.
The Credit Unionʼs policy is that risk management processes are audited annually by the Internal Audit
function, which examines both the adequacy of the processes and the Credit Unionʼs compliance with
the processes. Internal Audit discusses the results of all assessments with management, and reports its
findings and recommendations to the Supervisory Committee.
