By Aminata Kuyateh
The Medical and Health Services Co-operative Credit Union (MHSCCU) Saturday held its annual general meeting under the theme “ people helping people for economic progress”.
The treasurer of the credit union has reported a massive 25% increase in members saving income from D138,008,246.00 in 2021 to D172,074,711.00 in 2022.
The impressive development was reported by the board treasurer Lamin P. Fofana at the union’s Annual General Meeting held at NACCUG head office in Kanifing.
Chairman of the board, Malang Fofana emphasized the union’s commitment to good governance, accountability,transparency and in line with the company law which dictates that the board should report back to the general members about the activities of the credit union at an annual general meeting(AGM).
Chairman Fofana reminded members that as part of their drive to expand services, products and financial inclusion for their esteemed members, the credit union benefited from DSIK grant amounting to D2.6 million which was disbursed as SME scheme to 18 members (13 females and 5 males) involved in various businesses.
Treasurer, Lamin P. Fofana gave detailed of the financial year for 2022, revenue generated through interest on loans and sundry incomes amounted to D16,631,007 for 2022 compared to D13,828,239 for 2021, representing in a 21% growth, while net operating income grew from D15,217,213 in 2021 to D17,437,937 in 2022, representing 15% growth.
“The credit union has registered a net deficit amounting to D109,227.00 compared to a surplus of D414,361.00 for the year 2021 resulting in a 27% decline for the year. However, the major contributing factor that leads to the drop in surplus is a result of the system failure to charge members for building funds and membership dues during the year under review”, Fofana disclosed.
He added that the interest paid on the deposit is D1,165,355 as compared to the previous year when the interest charge was nil. Due to the expansion of the service area and the opening of new branches across the regions (Tallinding,Basse and Bwiam) has a significant impact on the net income for the year.
Fofana said for the period under review, loans disbursed to members have also increased from D116,976,168 in 2021 to 189,522,046 in 2022, representing 62% in loan disbursement.while for the under review, members’ savings have also increase from D138,008,246.00 in 2021 to D172,074,711.00 in 2022, representing a saving growth of 25%.
“Our credit union is making a positive difference in the lives of our esteemed members”, he informed the members that the credit unions are faced with multitudes of risks and challenges for their survival, growth and self-sustainability, the risks include loan default, liquidity risk and market risk among others.
Chairman supervisory committee, Nfamara Ceesay said a five-year financial summary from 2018-2022 as per the recently concluded audited accounts and financial statements of the union , shows a net deficit compared to the other periods under review.
He assured the members that the financial statements prepared by the directors shows a true and fair view of the financial performance and cash flow for the period under review following generally accepted accounting principles.
