The Pentecostal Credit Union Ltd - 39th Annual General Meeting

From 6pm, 23 March 2019
At Tooting Neighbourhood Centre
28 Glenburnie Road, London SW17 7PJ
The Pentecostal Credit Union Ltd
39th Annual General
Meeting

AGM agenda
1. Welcome
2. Prayer
3. Song: Bless the Lord O My Soul
4. Scripture: Proverbs 16 vs. 1-16
5. Apologies
6. Minutes of last AGM: 24 March 2018
7. Matters arising
8. Directors’ report
9. Presentation from the Youth Shadow Board
10. Song: How Great is our God
11. Keynote speaker: Pastor Cornelius and Dr Christine Brown from The Mind
Café: Black mental health and our young people
12. Loan report
13. Audit Committee report
14. Nominations for the Board
15. PCU Financial Statements
a. Directors’ report and recommendation of dividend
b. Independent auditors’ report
c. Accounts
16. Appointment of auditor
17. Raffle
18. Song: Hear My Cry O Lord
19. Close in prayer

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Prayer: St Francis of Assisi
Lord, make me an instrument of Thy peace;
Where there is hatred, let me sow love;
Where there is injury, pardon;
Where there is error, truth;
Where there is doubt, faith;
Where there is despair, hope;
Where there is darkness, light;
And where there is sadness, joy.
O Divine Master, Grant that I may not so much seek
To be consoled as to console;
To be understood as to understand;
To be loved as to love.
For it is in giving that we receive;
It is in pardoning that we are pardoned;
And it is in dying that we are born to eternal life.

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Chorus
Bless the Lord oh my soul
Oh my soul
Worship His Holy name
Sing like never before
Oh my soul
I’ll worship Your Holy name
The sun comes up
It’s a new day dawning
It’s time to sing Your song again
Whatever may pass
And whatever lies before me
Let me be singing
When the evening comes
Chorus
You’re rich in love
And You’re slow to anger
Your name is great
And Your heart is kind
For all Your goodness
I will keep on singing
Ten thousand reasons
For my heart to find
Bless the Lord O My Soul
Chorus
Bless You Lord
And on that day
When my strength is failing
The end draws near
And my time has come
Still my soul will
Sing Your praise unending
Ten thousand years
And then forever more
Chorus

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Scripture: Proverbs 16 vs. 1-16
16 We may make our plans, but God has the last word.
2 You may think everything you do is right, but the LORD judges your
motives.
3 Ask the LORD to bless your plans, and you will be successful in
carrying them out.
4 Everything the LORD has made has its destiny; and the destiny of the
wicked is destruction.
5 The LORD hates everyone who is arrogant; he will never let them
escape punishment.
6 Be loyal and faithful, and God will forgive your sin. Obey the LORD
and nothing evil will happen to you.
7 When you please the LORD, you can make your enemies into friends.
8 It is better to have a little, honestly earned, than to have a large
income, dishonestly gained.
9 You may make your plans, but God directs your actions.
10 The king speaks with divine authority; his decisions are always right.
11 The LORD wants weights and measures to be honest and every sale
to be fair.
12 Kings cannot tolerate evil, because justice is what makes a
government strong.
13 A king wants to hear the truth and will favour those who speak it.
14 A wise person will try to keep the king happy; if the king becomes
angry, someone may die.
15 The king’s favour is like the clouds that bring rain in the springtime –
life is there.
16 It is better – much better – to have wisdom and knowledge than
gold and silver.

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Held on Saturday 24 March 2018
at 28 Glenburnie Road, London SW17 7JP
Directors present
Leslie Laniyan (Chair)
Chona Labor (Vice Chair)
Patricia Toussainte (Secretary)
Rev. Verona Richards (Director)
Tracey Connage (Director)
Lorna Lynch (Director)
Michael Mathura (Director)
Ann Waugh (Chair, Audit Committee)
Staff in attendance
Mr S Bowes (Chief Executive Officer)
Ms E Bowes (Executive Assistant and Minute Taker)
Minutes of the 38th Annual General
Meeting of the Pentecostal Credit Union
1. Welcome
The AGM convened at 6.30pm. Mr Leslie Laniyan (LL), the Chair of the
PCU, presided over the meeting and welcomed the members.
2-4. Prayer, hymn and scripture reading
Rev. Verona Richards (VR) facilitated the ‘praise and worship’ opening
session. She opened in prayer and led the membership in the hymn –
‘Here I am to Worship’. The scripture reading was taken from Ecclesiastes
11:1-6.
5. Apologies
Apologies were received from Sis. Logan.

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6. Minutes of the last meeting
Mrs Patricia Toussainte (PT), Secretary of the Credit Union, read a
summary of the minutes.
Joshua Maloney proposed that the minutes be accepted as a true record
of events. Italia James seconded the proposal. The minutes were
accepted with no changes or challenges.
7. Matters arising
The Chair updated the meeting on the matters arising from the 2017
AGM as follows.
• Last year, PCU management had proposed, and members agreed,
that adult members would contribute the sum of £2.50 per year as
an annual service charge deduction from their share accounts,
towards the estimated annual costs of the PCU adopting transaction
banking as part of joining the Credit Union Expansion Project (CUEP).
However, with the demise of CUEP, this charge had not been levied.
The Chair referred members to the CEO for further information.
• Also last year, Equiano Charity trustees agreed to provide a bonus of
£10 to each Youth Shadow Board (YSB) member, to be paid into their
credit union accounts. In accordance with this, Equiano had paid a
£10 gift to each YSB member.
8. Directors’ report to the membership
The Chair presented a summary of the
Directors’ Report.
He commenced his presentation by stating
that a successful year of trading resulted in
the business making a healthy surplus at
year end, and overall steady growth in
terms of savings, loans, membership and
capital.
The PCU is in an exceptional fiscal position,
as its assets, capital and loan portfolio are
out of all proportion to its size and are well
over and above regulatory requirements.
He highlighted the following.
• Lending for 2016-17 was £1.28m, increasing the loan portfolio by
some £330,000 (5%), and surpassing the £250,000 annual target of
loan book increase by £80,000.
• During the same period, 191 new members joined the credit union,
averaging 16 per month as compared with five in 2014.
• In the final year of our business plan cycle for 2014-2017, we
achieved all the business plan objectives set for this period. Key
highlights included:
– HQ Advisory rated the PCU as one of the top 10 credit unions in
London in 2017
– loan book growth from £4.6m to £5.3m (on target)
– membership growth of 20%, from 1,542 to 1,850, and
– share deposit growth from £7.6m to £7.8m – despite two large
corporate withdrawals of over £1m during the same period.

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• One of the most important developments for the year was the crafting
of our new business plan for the three-year period from 2017-2020.
This business planning cycle will be a period of great change and
transformation in order to achieve the PCU vision and mission. The
business plan outlines how we are putting in place the processes to
undergo this change and to meet our ambitions. The new strategic
objectives are: Growth, Transformation and Leadership.
• We have achieved excellence in customer service. An annual evaluation
of our monthly independent customer survey revealed that 100% of
participants to the survey would use our services again and 93%
would recommend us to family and friends.
• In July 2017, we launched our first business development programme
for members with entrepreneurial ambitions.
• On 30 January 2018, students on the business development
programme got the chance to pitch their business ideas to successful
entrepreneurs in the Pentecostal faith at our ‘Solomon’s Room’,
Dragon’s-Den style event, which took place at The Royal Society in
London, SW1. At the event, more than 100 church leaders, community
influencers and Christian business owners joined us for the evening.
• We are en route to launching digitally accessible services for members,
which will enhance the customer journey and reduce the number of
manually initiated procedures by staff.
Finally LL thanked the staff team for their work in delivering the PCU
objectives and also thanked his fellow Board members. The Chair then
invited questions on the Directors’ report.
There were no questions or comments.
9. Presentation from the PCU
Youth Shadow Board (YSB)
Moses Williamson (MW) introduced himself as the Chair of the YSB and
thanked the Board for the opportunities that the PCU have given to the
YSB. Together with his YSB colleagues, they outlined their achievements
over the year.
Key highlights were:
• A vibrant summer programme of eight days of fulfilling leadership
development activities during the August summer break. The group
took part in a host of activities, including a confidence-building drama
workshop and a seminar on developing their social media skills and

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learning how to be safe on line. The highlight of the programme was
a visit to the International Slavery Museum in Liverpool, where they
took a guided tour and learned about the history of the African
Diaspora in the UK. The programme finale was a master class with
top black chocolatier Paul Wayne Gregory, who shared with them his
inspirational story.
• The Gimme Dat video was shortlisted in the 2017 JUMP Music Video
Awards, in the ‘Song for a Cause’ category. They didn’t win, but they
had a great night out at the awards ceremony in October.
• Volunteering at the New Testament Assembly (NTA) in Tooting,
supporting the church’s Christmas Hamper Programme. This
programme is now delivered in partnership with the PCU, and the
YSB spent a busy Saturday in December helping NTA church members
with shopping, packing and the distribution of hampers.
10. Key note speaker: Raising Awareness of
Prostate Cancer: David Frederick from Prostate Cancer UK
The Chair welcomed David Frederick (DF) to the AGM. David would be
speaking about an important subject with respect to men’s health –
Prostate Cancer.
DF opened by commending the work of the PCU. He especially
commended the YSB, commenting that they were doing great things
and applauding them for their achievements. DF then told the AGM
about his own background as an officer of a credit union and how
important he felt that credit unions are in people’s lives today.
DF’s second love after credit unions was men’s health and, in particular,
black men’s health with respect to prostate cancer. David relayed his
own prostate cancer journey and explained why it was important to him
to bring this message to black communities – to give back. He spoke of
the reluctance of black men to have health checks, especially when it
comes to the area of the prostate, but he stressed the critical importance
of black men going to their GP for regular checks and as soon as they
feel that something is wrong. One in four black men will get prostate
cancer at some point in their lives. Black men are more likely to get
prostate cancer than other men, who have a one in eight chance of
getting prostate cancer. The risk is increased if you are aged 45 or over,
and increases as you get older, and is also increased if your father or
brother has had it.

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DF then took questions from the floor.
LL thanked DF for his frank, provocative, yet humorous presentation and
encouraged all the men attending to ensure that they have regular
health checks.
11. Loan report
The Loan report was presented to the membership by the chief executive
officer, Shane Bowes (SB).
Shane reported that a total of £1,289,450 had been allocated in loans
between 1 October 2016 and 30 September 2017. SB commented that
this averages over £100k per month, which is remarkable performance
for a credit union of this size.
There were no questions.
12. Report of the Audit Committee
Ms Ann Waugh (AW), the Chair of the Audit Committee, presented her
report. She began by explaining the role of the Audit Committee – to
safeguard the interests of the membership and to ensure that the board
is compliant with legal and regulatory requirements. She further explained
that the Audit Committee works with an independently commissioned
auditor, Leroy Reid and Co., which audits the PCU’s operations in
accordance with an agreed Audit Plan. The Audit Committee is
independent of the Board and operates separately.
The purpose of Ann’s report was to inform the members of:
a) New developments
b) Results of internal audits during 2016/17
c) Key lessons and emerging trends from internal audits
d) Board’s expertise and effectiveness
e) Audit Plan for 2017-2018.
She summarised:
• Of the 15 areas audited over the year, 12 were rated ‘substantial
assurance’, which is the highest that can be achieved.
• The Audit committee are pleased with these results and are able to
confirm to the membership that the PCU is following its policies and
procedures, and operating effectively and efficiently.
• The PCU’s performance is consistently high. It is doing very well. But a
recommendation would be for the PCU to seek to learn lessons about
risk management, especially as we move to become a digitally
enabled business

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• Board attendance for this period dropped from 93% to 75%, due to
sickness, bereavements and also one wedding.
• Finally, AW summarised the Audit Plan for 2016-17.
AW invited questions from the floor. There were no questions.
LL thanked AW for her report.
13. Nominations for election to the Board
In accordance with Rule 103, one third of the Board had resigned and
were seeking re-election. These directors were Verona Richards and
Michael Mathura. Elaine Bowes (EB) proposed that they be re-elected,
seconded by LL. These members were duly re-elected.
LL announced the resignation of the Vice Chair, Chona Labor (CL), who
was moving on to ‘greater things’ in his life. He thanked CL for his
contribution to the development of the PCU over his years of tenureship
on the Board and wished him the best for the future.
There were no other nominations from the floor.
14. PCU financial statements
Ms Lorna Lynch (Lo.L), Director, presented the financial statements.
She highlighted that:
• income had decreased by 20k, due to our membership of the credit
union expansion project, and
• total expenditure had increased as a result of increased bad debt
provision.
She concluded that the business was going in the right direction.
Lo.L invited questions. Bishop Delroy Powell asked about investments.
SB responded and explained where the credit union had made
investments and why.
There were no questions or challenges on the accounts. They were
accepted by the membership.
Dividend
A dividend of 1% was recommended. Bishop Powell moved to accept
the dividend of 1%. Seconded by Rev. Jones.
15. Appointment of the auditor
Ms Lynch proposed that Thomas Westcott be re-appointed as our
auditors for the coming year. Italia James seconded this.

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16. Raffle
Mrs Jones presided over the raffle draw. She thanked the Board and
congratulated them for the very proficient way that they were running the
business on behalf of the membership. She thanked the membership for
purchasing the book authored by the Founder, Rev. Carmel Jones – an
autobiography of his life. She reminded the membership that the proceeds
were going to the Equiano Charity. LL commented that the book was a
compelling read. She also thanked the Board for inviting David Frederick
to speak to the membership on such an important topic and thanked
him for his presentation.
Master Makhaya James drew the raffle. The winners were:
• No. 89, Glenford Hill – £150
• No. 80, Mr Gordon – £100
• No. 93, Mrs Roberts – £50
Founder’s closing address
Rev. Jones addressed the membership. He thanked everyone for attending.
Commented that this was such a special evening and that the PCU always
excited him. He commended especially David Fredericks and thanked him
for his presentation on prostate cancer.
He then introduced Rev. Lovel Bent. He described him as a “man who
stood by me and supported me”. His church in East Dulwich is the second
church that the PCU purchased. Rev. Jones also recognised the late Bishop
Melvin Powell as another staunch supporter of the PCU, who had stood
with him in the early days of the PCU’s development. He commented that
the PCU is where it is today because of these men and others like them.
Apostle Bent addressed the AGM. He thanked Rev. Jones for the journeys
they had been on together and said that he owed him for the contribution
to where the New Life Assembly is now. He also addressed the YSB and
told them that they are involved in a great venture at the PCU. He referred
especially to YSB members who are members of New Life Assembly. He
reminded them that the funds to purchase the church came from the PCU.
Rev. Bent then thanked everyone who supported the PCU. He said that it
was important that black communities could hold up the organisation and
say, “We did this”. He applauded Rev. Jones as the pioneer who founded
the organisation, and finally thanked the membership for listening to him.
16. End
Rev. Verona Richards led the AGM in the final song, Hallelujah, and prayed
the closing prayer.

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Dear members
September 2017 to October 2018 was one of our most important years
with respect to development and transformation. A successful year of
trading resulted in the business making a healthy surplus at year end, and
overall steady growth in terms of savings, loans, membership and capital.
The PCU is in an exceptional fiscal position, as its assets, capital and loan
portfolio are out of all proportion to its size and well over and above
regulatory requirements.
Highlight achievements for growth are as follows.
• Lending for 2017-18 was £1,638,592; increasing the loan portfolio
by some £360,505 (6.7%) and surpassing the £250,000 annual
target of loan book increase by £110,505.
• 198 new members averaging 16 per month, as compared with five
per month in 2014.
The table below demonstrates the growth in membership from 2014,
together with the six-month average trend.
Directors’ report to the membership

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Highlights from the year
Digital transformation at the PCU
One of the most important developments
for the year was the transition to
becoming a digitally enabled credit
union. In July 2018, we rolled out a fully
interactive website with online banking
facilities. In October, we launched a
mobile app which enables our customers
to access their PCU accounts, pay bills,
make payments and withdraw money on
a mobile phone. Also in October, we
launched a Mastercard debit card. Since
Monday 8 October 2018, our members
have been able to enjoy the convenience
of making payments with a debit card
and using ATMs, and enjoy the added
benefits of contactless technology. The
PCU debit card can be used in shops and
when making online purchases, for money
transfers and bill payments. In addition it
can be used anywhere in the world
where the Mastercard logo is displayed.
We are so proud of this development. It is all about enhancing our services
for our users.
The PCU’s Moneywise Business Development Programme
In July 2017, we launched our first business development programme
for members who are either considering opening a business, have
recently opened a business, or who are already business owners but
needed help/support in developing their business. Steeped in biblical
principles, the PCU Moneywise Business Development Programme helped
and helps our participant members to attain/develop:
• increased confidence in business start-up, sustainability and growth
• foundations and structures to develop a successful business
• a tangible business plan
• a range of tools and techniques to develop and grow their business
• the characteristics of a Kingdom entrepreneur and Kingdome
entrepreneurship.
We told members about this development at the last AGM. I am happy
to report that, as a result of the success of the first programme, we
launched the second programme in September 2018. Five of our members
are currently being coached by Claudine Reid from PJ’s Community
Services – who deliver the programme on our behalf.
Solomon’s Room
At the last AGM, we told you about our Solomon’s Room event, where
students on our Moneywise Business Development Programme got the
chance to pitch their business ideas to successful entrepreneurs from our
Pentecostal faith community, in a Dragon’s-Den style affair, on 30 January
2018. We want to highlight its importance for the 2017-18 financial year,
as it launched our business plan objective of promoting entrepreneurship
and business ownership as a way to support the socioeconomic

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development of our communities in the Pentecostal church. During the
year it has become clear that Solomon’s Room has opened up opportunities
for the PCU to be seen as ‘thought leaders’ and influencers in this field
of finance and business development in our communities.
Moneywise workshops
We continue to deliver our financial capability Moneywise Workshops. These
are training events, which are free to our churches and associated bodies.
As you may know, we are accredited by the National Skills Academy in
Financial Services to provide training in financial capability. We developed
the concept of ‘Moneywise’ using the government’s edict to credit unions
to provide education to their members in the ‘wise use of money’. Our
concept of Moneywise is based on scripture, so our workshops have a
biblical foundation. We have been delivering these in a roadshow of
workshops across the country. During 2017-18, we went to churches in
Manchester, Birmingham, Bristol, Peterborough and Aldershot, as well as
delivering a host of workshops in London and the south east.
Last year, we told you that we would be hosting these events in-house,
aimed at our members specifically, but not exclusively. To this end, on
Saturday 27 April 2019, we will be running a half-day workshop – ”Be
Moneywise at PCU: Getting the most from your credit union”. This
workshop is primarily for our members, particularly new members, but
anyone who attends a Pentecostal church in the UK, and is interested in
joining the PCU, can also attend. We pride ourselves in offering you the
best service that we can, but it is also important to us that you know and
understand how to make the best use of us and the services that PCU
provides. We will be sharing top tips about financial management and
how to get the best from PCU services. The workshop will be held at our
offices in Balham and is, of course, free. It will run from 11am until 3pm
and we will provide light refreshments. There are just 10 spaces available,
so, if you would like to attend, please register by emailing info@pcuuk.com
or calling the office on 020 8673 2542. You can also email or call for
further information.
The PCU Youth Shadow Board
The PCU Youth Shadow Board (YSB) continues to grow from strength to
strength. You will recall that the YSB is our young leaders’ development
programme for our junior savers. They’ve also had an exciting year.
Highlights include the following.
• A vibrant summer programme of eight days of fulfilling leadership
development activities during the August summer break, jointly
facilitated by the PCU and Tanya Aquaa from TIA – The Inner Attitude.
The focus was on team-building skills during eight days of leadership
workshops. The overall aim of the programme was to work with the
young people, to develop, equip and expose them to leadership styles,
traits, concepts and tasks that will promote success on their journey
as PCU YSB members.
• Of particular importance to us was the workshop they undertook on
‘Gangs, guns and knife crime: How to stay safe’. We are all devastated
by the malevolent behaviour that is infiltrating and destroying the
lives of many of our young people today – both the victims and
perpetrators of gang, knife and gun crime. It is all too close to us,
and we felt that we had to make an interjection with our YSB – all of
whom personally know, or know of, young people in their peer group
who have been victims of this type of crime. We wanted to give them

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the skills and confidence to handle themselves properly if they are
ever confronted with this malevolence in all its guises. We want to
thank Zoma Okpala from the Makeda Weaver Project in Hackney for
delivering a frank but insightful workshop to our young leaders, and
also to NTA for supporting the workshop by providing food for the
teens for the day, and also by sending along some of their young
people to take part.
• Volunteering at the New Testament Assembly (NTA) in Tooting to
support the church’s long-established Christmas Hamper Programme,
which delivers food hampers to people in need in Wandsworth. The PCU
officially partnered with NTA in December 2017. The NTA has delivered
more than 3,600 hampers in eight years – 700 this Christmas alone.
The project was initially started by Amy Rose Powell MBE in 2008. In
our second year of partnership with NTA, our young people spent a
Saturday last December helping NTA church members with shopping,
packing and the distribution of hampers. Patricia Toussainte and David
Frederick from our board and audit committee also took part. Hampers
went to single parents, pensioners and households on a low income.
We are immensely proud of the Youth Shadow Board. They have
developed into confident young people, developing the skills to govern:
to be responsible and accountable, to set goals and to monitor and
achieve them, to live and work with integrity and to manage their
business in an orderly and transparent fashion, and to learn and develop
continually. News of their success has travelled, and they are now being
invited to speak at events aimed at young people. In February 2019, they
addressed a careers’ conference at Wolverhampton University and they
are speaking at the COGIC International Youth Conference in May.
Achieving excellence in customer services
One of our most important objectives is to provide the very best services
that we can to our members. In order to demonstrate that we genuinely
deliver on this commitment, we commissioned the services of an
independent and expert research company, called Acuity, to survey
customers that use our new membership and loans services each month.
We have been conducting these customer surveys now for two years
and the results have been excellent.
PCU survey results – February to November 2018

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During 2017-18, 96% of customers surveyed said our staff are courteous
and professional. In all, 95% would use our services again and 76% would
recommend us to family and friends. We now publish the results of our
costumer satisfaction survey every three months on our website.
Governance and staffing at the PCU
We’ve had a few changes during the year in terms of governance and
staffing at PCU. At the last AGM, our then Vice Chair, Chona Labor,
resigned as a result of a new job, which resulted in increased work
commitments. Two months later Michael Mathura also resigned – also as
a result of new working commitments. He went to a new job in Liverpool.
We want to thank both Chona and Michael for their dedication and
commitment to the PCU over the years. This left two vacancies on the
Board. In addition, we decided to extend the membership of the Audit
Committee by one person. I would like to introduce Pastor Ron Nathan
and Marcia Jones, who we have nominated for election by you. Plus
David Frederick, who we have nominated for election by you to the
Audit Committee.
We also want to welcome Lauren Humphris back from her maternity
leave. Lauren has come back to her post as Loans and Business Officer
and attends work three days a week. We also want to welcome Anca
Bordei, who covered for Lauren’s maternity leave and who is now with
us full time. We have thus increased the staff team at the PCU, enabling
us to respond even more efficiently to your needs.
Growth, transformation and leadership: The PCU Business
Plan 2017-2020
We are happy to report that we are on course to achieving the objectives
set out in our Business Plan 2017-2020. The business plan receives
constant scrutiny by the Board at each Board meeting. But we additionally
meet for two days every year to focus exclusively on business plan
implementation and to review progress and, if required, set new targets.
The business plan summarises how the PCU is building its future. We are
a financial co-operative and we believe in the economic empowerment
of our membership to achieve their aspirations. We do this through the
provision of high quality and relevant financial services and member
development activities. The current economic environment is challenging,
with Brexit creating uncertainty. Against this backdrop, we want to use
our assets to maximum effect and this means ensuring that our business
is managed and directed in the most efficient and effective way possible
to continue to deliver an excellent level of service to you our members.
Concluding comments
I am proud to repeat what I said last year in the concluding comments of
the Directors’ Report. The Pentecostal Credit Union is a ‘sleeping giant’,
with great potential and emerging power for growth, and with the
capacity to make a remarkable impact on the lives of our members. It is
our responsibility to ensure that this potential is realised, and this power
is unleashed. We are a serious alternative financial provider that should
be your first choice when thinking about finance to meet your needs and
those of your family. However, our member development programmes
and general workshops show that we are more than just a provider of
financial services. We also live our strapline: ‘shaping lives, making a
difference’. Digital enablement and excellent customer service, including

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the flexible and personal approach that the PCU is so good at, are crucial
elements on our journey, as well as the fact that we can demonstrate that
we are a well-managed business. The future is bright.
Our thanks
Finally, it remains for us to thank those people to whom we owe our
continued progress and success. Our staff team: Shane Bowes, our Chief
Executive; Lauren Humphris and Anca Bordei, our Loans and Business
Officers; and Elaine Bowes, our Marketing and Communications Manager
– all of whom remain committed to providing you with the best possible
service and to developing the organisation to be a beacon credit union
that you can be proud of. But, most importantly, we want to thank you –
the members. Your commitment, prayers and devotion continue to be a
pillar of strength to us. We remain utterly committed to your best
interests and to providing you with the best financial services that we
can deliver.
From the Board of Directors
Leslie Laniyan: Chair
Verona Richards: Vice Chair
Patricia Toussainte: Secretary
Lorna Lynch
Tracey Connage
Ann Waugh: Chair of the Audit Committee
Footnote: Regulatory compliance
In accordance with regulatory requirements, we can inform the
membership that the PCU has Fidelity Bond Insurance and Public Liability
Insurance in place. We are also fully compliant with Single Customer
View requirements and we do not carry out any other additional activities
other than those that we are approved to carry out.

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Loans report
1 October 2017 to 30 September 2018
Month Loans granted (£) Total (£)
October 2017 95,150 95,150
November 2017 94,370 189,520
December 2017 73,700 263,220
January 2018 38,000 301,220
February 2018 239,450 540,670
March 2018 233,600 774,270
April 2018 397,500 1,171,700
May 2018 147,450 1,319,220
June 2018 88,702 1,407,922
July 2018 101,400 1,509,322
August 2018 81,620 1,590,942
September 2018 47,650 1,638,592
TOTAL 1,638,592 1,638,592

19
Audit Committee report to the AGM
1 October 2017 to 30 September 2018
Purpose of Audit Committee Report to
members
The Audit Committee Report to the members at AGM 2019 has three
objectives:
1. To present the results of internal audits during 2017-18.
2. To propose the internal audit schedule for 2018-19.
3. To report the attendance record of Directors for the year 2016-2017.
Introduction
The Audit Committee consists of two members, David Fredrick, who is
currently co-opted, and myself, Ann Waugh. The Audit Committee has
been represented at 100% of the Board of Directors’ meetings during
the fiscal year 2017-18.
The Audit Committee recognises the importance of maintaining the
independence of the internal auditor. We conduct our business through
the outsourced internal audit function, Leroy Reid and Company Limited.
The result of internal audits during
2017-18
The Audit Committee scrutinised 20 areas of the PCU’s operations. The
audit focus was in line with the annual audit schedule approved by the
Board. Table 1 below summarises the assessment ratings the PCU
achieved over the financial year 2017-2018.
Audit focus during 2017-18 Substantial assurance Reasonable assurance
1. Loans and lending process – Q1
2. Marketing and membership – Q1
3. Treating customers fairly – Q1
4. Single customer view – Q1
5. Customer feedback – Q1
6. Governance and leadership – Q1
7. Business Plan implementation – Q2
9. Segregation duties – Q2
10. Digital transformation – Q2
11. Provisioning – Q2
13. Conduct of directors not covered by senior mgt function – Q3
14. Marketing and membership – Q3
15. Risk identification, management and control – Q3
Table 1

20
Audit focus 2017-18 Substantial assurance Reasonable assurance
16. Business plan implementation – Q4
18. Governance and impact – Q4
19. Treasury management – Q4
20. Debt recovery – Q4
TOTAL 14/20 6/20
Table 1: Continued
The Audit Committee recognises that the PCU is doing what it sets out in
the Policy and Procedures Manual for the areas audited. The results for
2017-18, when compared to the past five years’ internal audits results,
show that the PCU achieves substantial assurance, consistently, in many
areas. These include treasury management, provisioning, loans and the
lending process, and business plan implementation.
The areas for improvement, or to achieve higher than reasonable
assurance, include risk management, return on investment from marketing
and market development activities, and governance and leadership.
The internal audit schedule for 2018-19
The internal audit schedule shows how we will focus our efforts on the
areas of strategic importance to PCU and where potential concerns could
exist. The internal audit schedule for 2018-19 is set out below in Table 2.
Audit focus for 2018-19 Q1
(Oct to Dec 2018)
Q2
(Jan to Mar 2019)
Q3
(Apr to Jun 2019)
Q4
(Jul to Sept 2019)
1. Loans and lending process
2. Payments – HMRC, PAYE etc
3. Risk management
4. Consultants: deployment and
benefits
5. Marketing: membership, digital
product take-up, MI, cost/benefit
process
6. HR and capacity planning process
7. Member participation
8. Treasury management and debt
recovery processes
9. Strategic awayday: budget, business
plan implementation, MI process
10. MI, business plan, full-year actual
results, audited accounts, and full-year
project
Table 2
We are continuing to take a strategic, operational, financial and
compliance perspective of the areas of focus, whilst ensuring fit with the
PCU’s capability, size and culture. We endeavour, as usual, to understand
and co-ordinate with the other risk management and control activities in

21
PCU. We endeavour to provide good internal audit and Audit Committee
recommendations and guidance, and to add value to our members’
long-term financial interests, which is why we come to you today, to
approve this schedule.
Board commitment and attendance
Leadership matters most in times of uncertainty. Leaders guide us through
adversity, hardship, disruption, transformation, transition, recovery and
new beginnings. The directors’ commitment and dedication to PCU, as
measured by attendance at Board meetings, has been good this year. On
average, individual directors’ attendance during 2017-18 was 78%. An
increase on 2016-17, which was 75%. The trend is going in the right
direction – upwards.
Conclusion
We are living through a fundamental transformation in the way we work
and conduct PCU business. For example, in the past year, the PCU has
begun to offer loans, savings and member development via the website
and the PCUapp. Also, the reality of BREXIT is just around the corner.
Blair Sheppard, Global Leader, Strategy and Leadership Development,
PwC said, “That to stay ahead, you need to focus on your ability to
continuously adapt, engage with others in that process, and most
importantly retain your core sense of identity and values”. By the grace
and leading of God, the PCU and you as members will succeed.
Ann Waugh
Audit Committee Chair
March 2019
Assessment rating Definition
Substantial assurance Robust series of internal controls in place designed to achieve the system
objectives and which are being consistently applied.
Reasonable assurance Series of internal controls in place, however there are some control improvements
that would assist in ensuring the continuous and effective achievement of the
system objectives.
Limited assurance The controls in place are not sufficient to ensure the continuous and effective
achievement of the system objectives.
No assurance Fundamental breakdown or absence of core internal controls.
Appendix 1

PENTECOSTAL CREDIT UNION
LIMITED
DIRECTORS' REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2018
FCA/PRA REGISTRATION
NUMBER 213242
COMPANY NUMBER
IP00006C
22

23
PENTECOSTAL CREDIT UNION LIMITED
FCA/PRA REGISTRATION NUMBER 213242
COMPANY NUMBER IP00006C
Chief Executive Officer Mr S Bowes
Directors Mr G L Laniyan Chairman
Mr C M Labor (resigned 21/02/18)
Mr M Mathura (resigned 10/05/18)
Ms P M Toussainte
Mrs T Connage
Miss L Lynch
Ms V Richards
Audit committee members Miss A Waugh
Treasurer Mr S Bowes
Secretary Ms P M Toussainte
Loans officer Miss L Humphris
Miss A Bordei
Regulators Financial Conduct Authority
Prudential Regulatory Authority
FCA/PRA registration number 213242
Company number IP00006C
Registered office and 15 Oldridge Road
Business address Balham
London
SW12 8PZ
Auditors Thomas Westcott
26-28 Southernhay East
Exeter
Devon
EX1 1NS

CONTENTS
Page
Directors' report 1 - 2
Independent Auditors' report 3 - 5
Revenue account 6 - 7
Balance sheet 8 - 9
Statement of changes in Retained Earnings 10
Cash flow statement 11
Notes to the financial statements 12 - 24
24

DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2018
Page 1
The directors present their report and the financial statements for the year ended 30 September
2018.
Directors
The Principal activity of the directors is to be responsible for the delivery of the business of the
Pentecostal Credit Union and legislative and regulatory compliance. To provide strategic direction to
the staff team and to ensure the best interests of the membership are met.
The directors who served during the year are as stated below:
Mr G L Laniyan - Chair
Mr C M Labor - Vice Chair (resigned 21/02/18)
Ms P M Toussainte - Secretary
Mr M Mathura - Director (resigned 10/05/18)
Mrs T Connage - Director
Miss L Lynch - Director
Ms V Richards - Director
Non- Executive Director:
Miss A Waugh - Chair of Audit Committee
Statement of directors' responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in
accordance with applicable law and regulations.
Co-operative and Community Benefit Societies 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 surplus/deficit of the credit union for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the company will continue in business.
The directors are responsible for keeping proper accounting records that are sufficient to show and
explain the credit union's transactions and disclose with reasonable accuracy at any time the
financial position of the credit union and enable them to ensure that the financial statements comply
with Co-operative and Community Benefit Societies Act 2014 and the Credit Union Act 1979. 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.
25

DIRECTORS' REPORT
.................... continued
Page 2
Each of the persons who is a director at the date of approval of this report confirm that:
- so far as each director is aware, there is no relevant audit information of which the credit union's
auditor is unaware; and
- each director has taken all steps that they ought to have taken as a director to make themself
aware of any relevant audit information and to establish that the credit union's auditor is aware of
that information.
This report was approved by the Board on .................................... and signed on its behalf by
Ms Patricia Toussainte
Secretary
26

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF
Page 3
Opinion
We have audited the financial statements of Pentecostal Credit Union Limited for the year ended 30
September 2018 which comprise 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).
In our opinion the financial statements:
- give a true and fair view of the state of the credit union's affairs as at 30 September 2018
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 Societies Act 2014
and the Credit Union Act 1979.
Basis of opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK))
and applicable law. Our respsonsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial statements section of our report. We are
independent of the group in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our
other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK)
require us to report to you where:
- the directors’ use of the going concern basis of accounting in the preparation of the
financial statements is not appropriate; or
- the directors have not disclosed in the financial statements any identified material
uncertainties that may cast significant doubt about the company’s ability to continue to
adopt the going concern basis of accounting for a period of at least twelve months from
the date when the financial statements are authorised for issue.
27

...................continued
Page 4
Other information
The other information comprises the information included in the annual report, other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other
information. Our opinion on the financial statements does not cover the other information and,
except to the extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon. In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. If,
based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the credit union and its environment obtained in
the course of the audit, we have not identified material misstatements in the directors' report.
We have nothing to report in respect of the following matters where the Co-operative and
Community Benefit Societies Act 2014 requires 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.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities statement on pages 1 to 2, the directors
are responsible for the preparation of the financial statements and for being satisfied that they give
a true and fair view, and for such internal control as the directors determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
28

...................continued
Page 5
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.This description
forms part of our auditor’s report.
This report is made solely to the Credit Union's members, as a body, in accordance with the
Co-operative and Community Benefit Societies Act 2014 and the Credit Union Act 1979. Our audit
work has been undertaken so that we might state to the credit union's members those matters we
are required to state to them in an auditors' 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 Credit Union
and the Credit Union's members as a body, for our audit work, for this report, or for the opinions we
have formed.
Shona Godefroy FCCA (senior statutory auditor)
For and on behalf of Thomas Westcott
Chartered Accountants and Statutory Auditors
26-28 Southernhay East
Exeter
Devon
EX1 1NS
29

REVENUE ACCOUNT
Page 6
2018 2017
£ £ £ £
Income
Entrance fees 950 740
Income from loans to members 362,849 343,641
Interest received on investments 149,223 112,156
Sundry income 3,149 2,601
Expansion project income - 104
Total income for the year 516,171 459,242
Administrative expenses
Wages and salaries 67,377 68,068
Employer's NI contributions 3,972 4,414
Staff pension costs 1,150 607
Administration expenses 96,484 98,443
Data processing expenses 8,266 6,588
Fidelity bond insurance 4,004 3,931
Consultancy fees 21,669 -
FCA fees 960 3,404
Auditors remuneration 9,250 9,149
Other legal and professional 82,062 71,610
Affiliation fees 4,099 2,469
Bank charges 1,591 1,311
Investment management charges 9,323 9,148
Bad debt provision )(131,882 1,373
General expenses 1,037 1,078
Depreciation on intangible assets 544 -
Depreciation of assets 18,717 15,374
Profits/losses on disposal of investments 66,644 3,728
Revaluation movement on investments 27,329 44,269
Total expenditure for the year )(292,596 )(344,964
Surplus/ (Deficit) for the year before taxation 223,575 114,278
Taxation )(27,625 )(22,596
Surplus/ (Deficit) for year before appropriations 195,950 91,682
30

REVENUE ACCOUNT
Page 7
Appropriations:
Revenue reserve 195,950 91,682
Dividend )(73,471 )(68,312
Total applied 122,479 23,370
There are no recognised gains or losses other than those included above.
All figures included in the revenue account relate to continuing activities.
31

BALANCE SHEET
AS AT 30 SEPTEMBER 2018
The notes on pages 12 to 24 form an integral part of these financial statements.
Page 8
2018 2017
Notes £ £ £ £
Fixed assets
Intangible assets 6 1,634 -
Tangible assets 7 558,301 558,519
Investments 8 1,560,355 1,518,786
2,120,290 2,077,305
Members loans 9 5,727,563 5,371,803
Less: provision for underperforming loans )(790,746 )(904,157
4,936,817 4,467,646
7,057,107 6,544,951
Current assets
Other receivables 10 30,000 -
Investments 11 3,394,435 3,457,438
Cash at bank and in hand 12 80,605 92,422
3,505,040 3,549,860
Total current assets 3,505,040 3,549,860
Total assets 10,562,147 10,094,811
Liabilities
Subscribed share capital
Ordinary members shares 14 8,027,088 7,696,376
Junior members shares 14 130,290 123,824
Hold shares 14 190 190
8,157,568 7,820,390
Other payables 13 47,471 39,792
Revaluation reserve 297,124 297,124
Social and educational reserve 115,409 115,409
Revenue reserve 663,981 541,502
General reserve 1,280,594 1,280,594
Total liabilities 10,562,147 10,094,811
32

BALANCE SHEET
AS AT 30 SEPTEMBER 2018
Page 9
The financial statements were approved by the directors on and signed on its behalf by
Ms P M Toussainte - Secretary
Mr G L Laniyan - Director
Ms L Lynch - Director
33

STATEMENT OF CHANGES IN RETAINED EARNINGS
Page 10
Revaluation General Revenue Social and
reserve reserve reserve educational Total
£ £ £ £ £
At 1 October 2016 297,124 1,280,594 518,132 115,409 2,211,259
Dividends paid - - )(68,312 - )(68,312
Appropriation of surplus - - 91,682 - 91,682
At 30 September 2017 297,124 1,280,594 541,502 115,409 2,234,629
Dividends paid - - )(73,471 - )(73,471
Appropriation of surplus - - 195,950 - 195,950
At 30 September 2018 297,124 1,280,594 663,981 115,409 2,357,108
34

CASH FLOW STATEMENT
Page 11
2018 2017
Notes £ £
Cash flows from operating activities
Profit for the financial year 195,950 91,682
Adjustments for:
Depreciation of tangible assets 18,717 15,374
Amortisation of intangible assets 544 -
(Increase) in receivables )(499,171 )(322,051
Increase in payables 7,679 3,082
Increase in subscribed share capital 337,178 721,150
Net cash outflow from operating activities 60,897 509,237
Cash flows from investing activities
Purchase of intangible assets )(2,178 -
Purchase of tangible assets )(18,499 )(6,192
(Increase) in investments 21,434 (706,791)
Net cash (used in)/from investing activities 757 (712,983)
Cash flows from financing activities
Equity dividends paid (73,471) (68,312)
Net cash (used in)/from financing activities (73,471) (68,312)
Increase/(Decrease) in cash in the year (11,817) (272,058)
Cash and cash equivalents at beginning of year 92,422 364,480
Cash and cash equivalents at end of year 80,605 92,422
35

NOTES TO THE FINANCIAL STATEMENTS
Page 12
1. Accounting policies
1.1. Accounting convention
The Credit Union is registered under the Co-operative and Community Benefit Societies Act
2014. The financial have been prepared under the historical cost convention in accordance
with the Co-operative and Community Benefit Societies Act 2014 and the Credit Union Act
1979 and comply with financial reporting standards of the the Accounting Standards Board.
In accordance with the regulatory environment for credit unions, deposits from members can
be made by subscription for redeemable shares, deferred shares and interest bearng shares.
At present the Credit Union only has redeemable shares.
These financial statements have been prepared in accordance with FRS102, the financial
reporting standard applicable in the UK and Republic of Ireland.
Pentecostal Credit Union Limited is regulated by the Financial Servicies Authority as a
Version 2 Credit Union. It was established for the promotion and encouragement of regular
savings and the creation of credit for the benefit of the members at fair and affordable rates of
interest.
1.2. Going Concern
The financial statements are prepared on the going concern basis. The directors of
Pentecostal Credit Union Limited believe this is appropriate despite a mismatch in the
maturity of analysis of subscribed capital and loans to members, because any deficit would
be covered by the investments currently held by the Credit Union.
1.3. Interest
All interest payable and receivable is accounted for on an accruals basis.
1.4. Taxation
Corporation tax payable is provided on investment income at the current rate which for the
year ended 19.00% (2017: 19.50%).
36

.................... continued
Page 13
1.5. Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements,
estimates and assumptions that affect the amounts reported. These estimates and
judgements are continually reviewed and are based on experience and other factors,
including expectations of future events that are believed to be reasonable under the
circumstances.
Accounting estimates and assumptions are made concerning the future and, by their nature,
will rarely equal the related actual outcome.
1.6. Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value,
over the useful life of that asset as follows:
Patents - 25% reducing balance
If there is an indication that there has been a significant change in amortisation rate, useful life or
residual value of an intangible asset, the amortisation is revised prospectively to relfect the new
estimates.
1.7. Tangible fixed assets and depreciation
Depreciation is provided at rates calculated to write off the cost or valuation less
residual value of each asset over its expected useful life, as follows:
Land and buildings - 2% reducing balance
Fixtures, fittings and equipment - 25% reducing balance
Tangible fixed assets are stated at cost less accumulated depreciation.
1.8. Investments
Investments held as fixed assets are revalued at mid-market value at the balance sheet date
and the gain or loss taken to the profit or loss account.
Current asset investments are taken at the lower of cost and net realisable value.
37

.................... continued
Page 14
1.9. Financial assets - loans and advances to members
Loans to members are financial assets with fixed or determinable payments, and are not
quoted in an active market. Loans are recognised when cash is advanced to members and
measured at amortised cost using the effective interest method.
Loans are derecognised when the right to recieve cash flows from the asset have expired,
usually when all amounts outstanding have been repaid by the member.
1.10. Impairment review
The Credit Union assesses at each balance sheet date, if there is objective evidence that any
of its loans to members are impaired. The loans are assessed collectively in groups that
share similar credit risk characteristics, because no loans are individually significant. In
addition, if, during the course of the year, there is objective evidence that any individual loan
is impaired, a specific loss will be recognised.
Any impairment losses are recognised in the revenue account, as the difference between the
carrying value of the loan and the net present value of the expected cash flows.
1.11. Pensions
The pension costs charged in the financial statements represent the contribution payable by
the company during the year.
The regular cost of providing retirement pensions and related benefits is charged to the profit
and loss account over the employees' service lives on the basis of a constant percentage of
earnings.
1.12. Financial liabilities - subscribed capital
Members' shareholdings in the Credit Union are redeemable and therefore are classified as
financial liabilities and described as subscribed capital. They are initially recognised at the
amount of cash deposited and subsequently measured at amortised cost.
1.13. Juvenile depositors
Juvenile transactions are included within the financial statements unless specially shown
otherwise.
1.14. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash and loans and advances to
banks with maturity of less than or equal to three months.
38

.................... continued
Page 15
2. Dividends paid during the period 2018 2017
£ £
Dividends paid during the year 73,471 68,312
Dividend rate:
Balances less than £10,000 1.0% 1.0%
Balances greater than £10,000 1.0% 1.0%
Dividends are paid to members for the prior year. The dividend is formally proposed by the
Directors after the year end and is confirmed at the following AGM. As a result it does not
represent a liability at the balance sheet date.
3. Employees
Number of employees 2018 2017
The average monthly numbers of employees
(including the directors) during the year were:
Office staff 3 2
Employment costs 2018 2017
£ £
Wages and salaries 67,377 68,068
Social security costs 3,972 4,414
Pension costs 1,150 607
72,499 73,089
39

.................... continued
Page 16
4. Auditors' remuneration
2018 2017
£ £
External auditors' remuneration - audit of the financial statements 6,180 5,904
Internal auditors' remuneration - internal audit services 3,070 3,245
9,250 9,149
In common with many other Credit Unions of our size and nature we use our auditors to
prepare and submit returns to the tax authorities and to assist us with the preparation of the
financial statements.
5. Tax on profit on ordinary activities
Analysis of charge in period 2018 2017
£ £
Current tax
UK corporation tax 27,625 22,596
2018 2017
£ £
Surplus before taxation 223,575 114,278
Surplus before taxation multiplied by standard rate of corporation
tax in the UK of 19.00% (2017: 19.50%) 42,479 22,284
Effects of:
Expenses not deductible for tax purposes 12,662 727
Adjustments to tax charge in respect of previous periods (727) -
Non-taxable surplus/(deficit) on transactions with members (26,789) )(415
Current tax charge for period 27,625 22,596
40

41
.................... continued
Page 17
6. Intangible fixed assets
Patents Total
£ £
Cost
Additions 2,178 2,178
At 30 September 2018 2,178 2,178
Amortisation
Charge for year 544 544
At 30 September 2018 544 544
Net book values
At 30 September 2018 1,634 1,634
Land and Fixtures,
7. Tangible fixed assets buildings fittings
freehold equipment Total
£ £ £
Cost
At 1 October 2017 690,771 51,866 742,637
Additions - 18,499 18,499
At 30 September 2018 690,771 70,365 761,136
Depreciation
At 1 October 2017 144,959 39,159 184,118
Charge for the year 10,916 7,801 18,717
At 30 September 2018 155,875 46,960 202,835
Net book values
At 30 September 2018 534,896 23,405 558,301
At 30 September 2017 545,812 12,707 558,519

.................... continued
Page 18
8. Fixed asset investments Listed
investments Total
£ £
Cost/valuation
At 1 October 2017 1,518,786 1,518,786
Additions 947,177 947,177
Disposals )(878,279 )(878,279
Revaluations )(27,329 )(27,329
At 30 September 2018 1,560,355 1,560,355
Net book values
At 30 September 2018 1,560,355 1,560,355
At 30 September 2017 1,518,786 1,518,786
Historical cost at 30 September 2018 1,636,190
9. Members loans 2018 2017
£ £
At 1 October 2017 5,371,803 5,041,221
Repaid )(1,626,665 )(1,302,510
Granted 1,638,592 1,289,451
Interest charged 362,849 343,641
Loans written off )(19,016 -
Gross loans and advances to members 5,727,563 5,371,803
Provision for underperforming loans )(790,746 )(904,157
At 30 September 2018 4,936,817 4,467,646
42

.................... continued
Page 19
10. Receivables 2018 2017
£ £
Sundry receivables 30,000 -
30,000 -
11. Current asset investments 2018 2017
£ £
Cash held in investments 3,394,435 3,457,438
12. Cash and cash equivalents 2018 2017
£ £
Cash at bank and in hand 80,605 92,422
13. Payables: amounts falling due 2018 2017
within one year £ £
Trade payables 19,119 17,196
Corporation tax 28,352 22,596
47,471 39,792
43

.................... continued
Page 20
14. Subscribed capital - financial liabilities 2018 2017
(including Juniors) £ £
Balance brought forward from last year 7,820,390 7,099,240
Shares saved and loans repaid 1,705,858 2,073,245
Dividends paid 73,472 68,312
Shares withdrawn )(1,442,152 )(1,420,407
8,157,568 7,820,390
Analysed as:
Ordinary members shares 8,027,088 7,696,376
Hold shares 190 190
Junior members shares 130,290 123,824
8,157,568 7,820,390
44

.................... continued
Page 21
15. Financial Risk Management
The Pentecostal Credit Union Limited manages its subscribed capital and loans to members
so that it earns income from the margin between interest receivable and interest payable
(including dividends paid).
The main financial risks arising from the activities of Pentecostal Credit Union Limited are
credit risk, liquidity risk and interest rate risk. The Board reviews and agrees policies for
managing each of these risks, which are summarised below:
Credit Risk:
Credit risk is the risk that a borrower will default on their contractual obligations relating to
repayments to Pentecostal Credit Union Limited, resulting in financial loss to the Pentecostal
Credit Union Limited. In order to manage this risk the Board approves the lending policy of
Pentecostal Credit Union Limited and all changes to it. All loan applications are assessed with
reference to the lending policy in force at the time. Subsequently loans are regularly reviewed
for any factors that may indicate the likelihood of repayment has changed. The Credit Union
also monitors its banking arrangements for Credit Risk.
Liquidity Risk:
The policy of Pentestal Credit Union Limited is to maintain sufficient funds in liquid form at
time to ensure that it can meet its liabilties as they fall due and meet the liquidity ratios set by
the regulators. the objective of the policy is to provide a degree of protection against any
unexpected developments that may arise.
Market Risk:
Market risk generally comprises of interest rate risk, currency risk and other price risk. The
main risk impacting the Credit Union are set out below:
Interest rate risk: The main interest rate risk for Pentecostal Credit Union Limited arises
between the interest rate exposure on loans, bank deposits and shares that form an integral
part of a Credit Union's operations. Dividend rates are based on the historical results of the
Credit Union and the Credit Union's strategic plans. The Credit Union does not use interest
rate options to hedge its own position.
Foreign Currency Risk: All transactions are carried out in sterling and therefore the Credit
Union is not exposed to any form of foreign currency risk.
45

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Page 22
16. Interest Rate Disclosure
The following table shows the average interest rates applicable to relevant financial
assets and financial liabilities.
2018 2017
Average Average
interest interest
Amount rate Amount rate
£ % £ %
Financial assets
Loans to members 5,727,563 6.34 5,371,803 6.40
The interest rates applicable to loans to members are fixed and range from 5.0% to
36.0% per annum.
17. Liquidity Risk Disclosure
Excluding short-term other payables, as noted in the balance sheet, Pentecostal Credit Union
Limited's financial liabilities, the subscribed capital, are repayable on demand.
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Page 23
18. Credit Risk Disclosure
Pentecostal Credit Union Limited does not offer mortgages and as a result all loans to
members are unsecured, except that there are restrictions on the extent to which borrowers
may withdraw their savings whilst loans are outstanding and some loans are fully secured by
members savings.
The carrying amount of the loans to members represents Pentecostal Credit Union's
maximum exposure to credit risk. The following table provides information on the credit
quality of loan repayments.
2018 2017
£ £
Loans analysis
Not past due 5,127,081 4,832,995
Up to 3 months past due 138,182 100,091
Between 3 months and 6 months due 67,238 57,740
Between 6 months and 1 year past due 120,012 10,705
Over 1 year past due 275,050 370,272
Total loans 5,727,563 5,371,803
General provision )(439,495 )(479,509
Specific provision )(351,251 )(424,648
Total carrying value 4,936,817 4,467,646
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Page 24
19. Related party transactions
Loans can be made to directors, as members of the Credit Union, in the course of business
and on the same terms as are available to other members, in accordance with the
requirements of the Financial Conduct Authority. During the year, 7 members of the Board,
staff and their close family members (2017: 7 members) had loans with the Credit Union.
These loans were approved on the same basis as loans to other members of the Credit
Union.
During the year £50,751 (2017: £50,087) including Employers National Insurance was paid to
key management personnel in respect of remuneration.
During the year, Pentecostal Credit Union paid £49,133 (2017: £49,149) in consultancy fees
to the mother of a member of key management personnel.
48

Hear my cry, Oh Lord,
Attend unto my prayer.
From the end of the earth,
Will I cry out to Thee.
When my heart is overwhelmed,
Lead me to the Rock,
That is higher than I.
For Thou hast been,
A shelter for me.
And a strong tower,
From the enemy.
Hear my cry, O Lord,
Attend unto my prayer.
From the end of the earth,
Will I cry out to Thee.
That is higher than I
Hear my cry oh Lord

The Pentecostal Credit Union is authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the
Prudential Regulation Authority (FRN 213242).
The Pentecostal Credit Union Limited
15 Oldridge Road
Balham
London SW12 8PL
Phone 020 8673 2542
Email info@pcuuk.com
www.pcuuk.com
/pentecostalcreditunion
@PentecostalCU

The Pentecostal Credit Union Ltd - 39th Annual General Meeting

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