The Pentecostal Credit Union - 36th Annual General Meeting

36th Annual General Meeting
The Pentecostal
Credit Union Ltd
from 6pm
19 March 2016
venue Tooting
Neighbourhood Centre
28 Glenburnie Road
London SW17 7PJ

AGM agenda
1. Welcome
2. Prayer
3. Hymn: Standing on the Promises
4. Scripture: Psalm 16: Vs. 8-11
5. Apologies
6. Minutes of last AGM: 14 March 2015
7. Matters arising
8. Directors’ report to the membership
9. Loan report
10. Audit Committee report
11. Nominations for the Board
12. PCU Financial Statements
• Directors’ report and recommendation of dividend
• Independent auditor’s report
• Accounts
• Appointment of auditor
13. Raffle
14. Close: With a word from the founder – Rev. Carmel Jones

2
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.

3
Standing on the promises
Standing on the promises of Christ my King,
Through eternal ages let His praises ring,
Glory in the highest, I will shout and sing,
Standing on the promises of God.
Chorus
Standing, standing,
Standing on the promises of Christ my Saviour;
Standing, standing,
I’m standing on the promises of God.
Standing on the promises that cannot fail,
When the howling storms of doubt and fear assail,
By the living Word of God I shall prevail,
Chorus
Standing on the promises I now can see
Perfect, present cleansing in the blood for me;
Standing in the liberty where Christ makes free,
Chorus
Standing on the promises of Christ the Lord,
Bound to Him eternally by love’s strong chord,
Overcoming daily with the Spirit’s sword,
Chorus
Standing on the promises I cannot fall,
Listening every moment to the Spirit’s call
Resting in my Saviour as my all in all,

4
Scripture: Psalms 16: 8-11
I keep my eyes always on the Lord.
With him at my right hand,
I will not be shaken.
Therefore my heart is glad and my tongue rejoices;
my body also will rest secure,
Because you will not abandon me to the realm of the dead,
nor will you let your faithful one see decay.
You make known to me the path of life;
you will fill me with joy in your presence,
with eternal pleasures at your right hand.

5
Held on Saturday 14 March 2015 at 28 Glenburnie Road,
London SW17 7JP
Directors present
Leslie Laniyan (Chair)
Chona Labor (Vice Chair)
Patricia Toussainte (Secretary)
Tracey Connage (Director)
Lorna Lynch (Director)
Verona Richards (Director – Co-opted)
Michael Mathura (Director)
Ann Waugh (Chair, Audit Committee)
Staff in attendance
Mr H Boatswain (Interim CEO)
Mr S Bowes (Operations Manager)
Ms L Humphris (Finance Administrator)
Ms E Bowes (Executive Assistant and Minute Taker)
Minutes of the 35th Annual General
Meeting of the Pentecostal Credit Union
Welcome
The AGM convened at 6.30pm. Mr Leslie Laniyan, the Chair of the PCU,
presided over the meeting and welcomed the members.

6
Prayer, hymn and scripture reading
The Chair introduced the Rev. Verona Richards, Co-opted Director, and
invited her to facilitate the ‘praise and worship’ opening session. Rev.
Richards opened with a prayer and lead the membership in the hymn –
‘How Great Thou Art’.
Apologies
There were no apologies.
Minutes of the last meeting
Mrs Patricia Toussainte, Secretary of the credit union, read the minutes of
the last meeting. Mrs Shirley Williams proposed that the minutes be
accepted as a true record of events. Mr Anthony Bartley seconded the
proposal. The minutes were accepted with no changes or challenges.
Matters arising
The Chair highlighted progress on the PCU Business Plan objective to
increase the membership. Progress had been very slow and the targets
had not been met. The Chair appealed to the membership to do what
they could to help. He invited Shane Bowes, Operations Manager, to
speak further on this.
Mr Bowes said that the PCU had initiated a ‘Refer a Friend’ scheme
where members who referred five people would receive £25. To date,
no-one had taken this up. Pastor Noel Brown said he was a very great
supporter of the PCU and much in favour of growing the membership.
He commented that there should be a particular focus on younger people.

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The Chair asked the Rev. Jones to report back on the Equiano Benevolent
Scheme (EBS). The membership agreed a donation to this charity at the
AGM in 2013. The Rev. Jones responded that EBS had progressed well
and had helped numerous people. A full Annual Report would be made
available.
The Rev. Jones stressed that the EBS was there to help people in need
and referred members wanting more information to the scheme’s
leaflets. It was stressed that EBS is an independent scheme. People are
helped to open a credit union account and EBS funds are paid into their
credit union account.
Anthony Bartley asked why the funds had to go through a credit union
account and suggested that the allocation of funds seemed complicated.
Shane Bowes explained that the purpose of EBS was to discourage people
in need from using pay day lenders, encouraging them instead to open a
credit union account. Dorothy McFarlane commented that she felt this
was an excellent idea and that anything to help people in need to use
their money wisely was a good thing.
Pastor Noel Brown offered that one thing pay day lenders do well is to
cut the red tape and make things more simple. He felt that EBS should
look to make the process of funding more accessible and less complicated.
The Rev. Jones added that he was very much in favour of this and keen
to hear from anyone with ideas on how this might be achieved.
Other matters arising would be dealt with during the meeting.
Directors’ report to the membership
Mrs Tracey Connage, Director, presented the directors’ report, highlighting
the following.
The annual Board strategic planning weekend in July 2014 had reviewed
the Business/strategic Plan, focusing particularly on:
• developing the PCU’s vision, mission and values, and
• reviewing progress on the strategic objectives of growth, renewal and
improvement, and setting new targets for the coming year.
The PCU marketing strategy was now seen as a vital element of the
Business Plan.
The PCU had developed an in-house Management Information Toolkit to
measure business productivity against our strategic and financial targets.
There were plans to move towards digital products and services,
following the commissioning of a market segmentation research report.
The PCU had taken part in the government’s Credit Union Expansion
Project (CUEP). The Department of Work and Pensions has contributed
£38m towards the growth of credit unions in the UK.
The offices at 15 Oldridge Road in Balham would be refurbished.
Governance was improving and the Board of Directors were continuing
to develop their expertise.
There were plans for the PCU’s 35th anniversary celebrations in 2015.
Mrs Connage concluded by acknowledging and thanking the membership
for their continued prayers and support for the PCU. She then invited
questions from the floor.

8
Pastor Richards asked about progress on the high-profile legal case. The
Chair responded that litigation was continuing, but that we expected to
conclude this year.
Bishop Thomas asked about the cost of the office refurbishment. Mr
Hugh Boatswain, Interim CEO, responded that this would be in the
region of £135,000. He continued that moving and renting was not an
option. Investing in the building and increasing the credit union’s asset
base were the best things to do. He noted that we had encountered
some health and safety issues with the building, which were urgent, but
which had increased the originally anticipated costs.
Pastor Noel Brown asked if the 35th Anniversary Celebration could be
used as a way to attract new people to the credit union.
Mr Maynard Gordon asked how a young person such as himself could
be part of the segmentation research project. Mr Bowes responded that
the PCU are looking for volunteers for the focus group work and wanted
young people to be part of that. Mr Gordon was asked to leave his
contact details.
The Chair introduced Mr Chona Labor, Vice Chair, who delivered a
PowerPoint presentation of the PCU Management Information Toolkit.
He explained that the toolkit includes the PCU Business Plan strategy,
risks, financial and management metrics. Mr Labor provided a flavour of
the key points reported on and highlighted the ratios in:
• solvency
• capital to assets
• delinquency, and
• corporate loans.
Mr Labor reported that we are within the regulatory limits in all but the
corporate loans ratio, where we are above the limit. However, this is
improving and trending towards the regulatory limit of 10% of the total
loan book. He re-iterated the earlier point made by the Chair about the
need to improve membership growth.
Mr Labor then invited questions from the floor.
Fay Gordon asked if the PCU owned its website. Mr Bowes responded
that the website and software are owned by the PCU.
Shirley Williams asked if the toolkit was on the website. Other members
also felt it would be useful to have website access to the Management
Information framework.
Pastor Noel Brown suggested that the PCU website could be linked to
the website of member churches.
Loan report
The loan report was presented to the membership by the Operations
Manager, Mr Shane Bowes. He reported that a total of £552,680 had
been allocated in loans between 1 October 2013 and 30 September
2014. Mr Bowes explained that the Business Plan strategic target, set by
the Board in July 2014, was to make £60,000 worth of loans each month.
He went on to explain that the growth of the loan book, which is the
ultimate aim, is impacted by loan repayments and is part of the overall
calculations. However, this target has been achieved and exceeded since
the beginning of 2015.

9
Dorothy McFarlane asked if the £60,000 figure had to be achieved each
month or was there a yearly final target to which the monthly amount
contributes. Mr Bowes responded that there were variables over the
months and whilst the monthly targets are the operational objectives,
ultimately the annual target must be met. He reminded the membership
that the size of the loan book has an impact on dividends.
Report of the Audit Committee
Ms Ann Waugh, the Chair of the Audit Committee, presented her report.
She began by explaining the role of the Audit Committee – which is 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, who audits the PCU’s operations in accordance
with an agreed Audit Plan. The Audit Committee is independent of the
Board and operates separately.
Ms Waugh then presented the results of the year’s audits. She concluded
that the PCU had a strong Board with good decision-making capacity.
Board meeting attendance was very good at 93% throughout the year
and the regulator (the Prudential Regulation Authority) had indicated
satisfaction with governance at the PCU.
From now on, the Audit Committee would be focusing on the delivery of
the three strategic objectives of growth, renewal and improvement. In
addition to this, the Audit Plan programmes the scrutiny of capital
investment, loans, marketing, risk assessment, staff and Board
competencies and key person risk.
Nominations for election to the Board
The Rev. Verona Richards had been co-opted to the Board and was now
nominated for election to the Board. She had been through the PCU’s
‘Fit and Proper Test’ and had obtained approval from the Financial
Conduct Authority in the form of Approved Persons Controlled Function 1.
The Rev. Richards was duly elected by the membership.
In addition, and in accordance with Rule 103, one-third of the Board
had resigned and were seeking re-election. These directors were Michael
Mathura and Chona Labor. These members were also duly re-elected.
There were no other nominations.
12. Rule change
Elaine Bowes, the PCU’s Executive Assistant, explained the reason for the
proposed rule changes. There were two proposals:
• To Rule 7: A change to the common bond rule to enable membership
of anyone who attends a Pentecostal Church in the UK and to comply
with the Equality Act 2010, which the previous rule breached. Also,
that the membership approve the delegation to the Board of
amendments to the appended bona fide list of Pentecostal churches,
as necessary.
• To Rule 110: A change in the frequency of Board meetings from
monthly to bi-monthly.

10
The Rev. Jones proposed the change to Rule 7. This was seconded by Fay
Gordon. All were in favour. Fay Gordon proposed the change to Rule
110. This was seconded by Dorothy McFarlane. All were in favour.
PCU financial statements
Mr Shane Bowes, Operations Manager, presented the financial
reports. In response to a question from Bishop Thomas about the rise in
loan delinquency provision, he explained that the credit union must
make a provision for existing loans and those that might go into bad
debt. The bad debt provision had increased from £500,000 last year, to
some £900,000 this year. This was as a result of a combination of
factors, including existing bad loans and the legal case.
There were no other questions. The membership accepted the accounts.
Dividend
A dividend of 1.% was recommended. It was recognised that this was a
reduction in the 1.5% dividend for 2014-2015. The Chair indicated that
with the settlement of the legal case and recoup of the funds owed to
the PCU, there would be an improved dividend offer for 2015-2016.
The Rev. Dorrit Akinbobola asked if it were possible to predict the
dividend for each year. Mr Bowes responded that this was not possible
with any certainty. She also asked what investments the credit union
makes. Mr Bowes explained the regulatory requirements with respect to
credit union investments and listed the institutions that the PCU currently
has investments with.
The proposal for a 1% dividend was made by Bishop Thomas. The
membership accepted this as the dividend for 2015-2016.
Appointment of the auditor
Mr Shane Bowes recommended that Thomas Westcott be re-appointed
as our auditors for the coming year. This was accepted by the membership.
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. Master James Laniyan drew
the raffle. The winners were: Lorna Brown – £150; Michael Mathura –
£100; Icilda Roberts – £100.

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Founder’s closing address
To commence his closing address, the Rev. Jones acknowledged the
presence of Ministers who had attended the AGM. They were:
Bishop Thomas Pastor Richards
Pastor Curry Rev. Smith
Rev. Akinbobola
and Pastor Hall.
The Rev. Jones welcomed everyone. He thanked the Board for the splendid
work they were doing, but asked them to keep a close eye on spend –
reminding everyone that if we are not able to recoup money owed through
the legal case, this will affect income. He noted, however, that an end to
the litigation will mean no further payments to expensive lawyers.
The Rev. Jones closed the meeting in prayer, after leading the membership
in the hymn, ‘Standing on the Promises’.

12
The PCU organisational chart
at 1 January 2016
PCU
Membership
Board (governing body)
Mr Ganiyu Laniyan (Chair, SMF8)
Mr Chona Labor (Vice Chair)
Ms Patricia Toussainte (Secretary)
Mr Michael Mathura (Director)
Ms Lorna Lynch (Director)
Mrs Tracey Connage (Director)
Ms Verona Richards (Director)
Audit Committee
Ann Waugh
Chair of Audit Committee
(Non-Executive Director)
Marketing
Committee
Mr Chona Labor (Chair)
Mr Ganiyu Laniyan
Ms Verona Richards
Mr Shane Bowes
Ms Elaine Bowes
Remuneration
Committee
Mr Ganiyu Laniyan (Chair)
Mr Michael Mathura
Mrs Tracey Connage
Ms Patricia Toussainte
Mr Shane Bowes
Chief Executive Officer
Shane Bowes (SMF8)
Loans & Business
Administrator
Lauren Humphris
Executive Assistant
Elaine Bowes

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Dear members
We are happy to report another year of success and achievement for the
Pentecostal Credit Union. We have not rested on our laurels and have been
driving the attainment of the targets and objectives that we established
to develop the credit union and that are outlined in our Business and
Development Plan 2014-2017.
Strategic objectives
Growth, renewal and improvement are our three strategic objectives up
until 2017, and we have set challenging targets to achieve these objectives
that we review and revise each year. After last year’s review, we revised
the targets to provide greater stretch in the areas of lending, shareholding,
and income.
As we reported at the AGM last year, achieving membership growth has
been a challenge for us, so we focused particularly on this area and reset
the target to enable attainability but with the stretch necessary. We are
happy to report that, since February 2015, the rate of membership increase
has more than doubled, with an average of 12 people joining per month,
as compared with five previously. More recent analysis of membership
shows that this is improving.
Directors’ report to the membership

14
Marketing
The dynamism of our marketing strategy is responsible for this improvement
in membership. We have adopted and are delivering a multi-faceted
marketing plan, which includes radio adverts, presentations, sponsorships
and an assertive social media strategy on Facebook, Twitter, LinkedIn and
YouTube.
We are building awareness of the PCU in our ‘common bond’ community,
developing our profile and initiating fruitful relationships that are leading
to the growth of the business. Marketing is the lynchpin of our growth
agenda. Follow us on Twitter, engage with us on Facebook and become
a regular subscriber to our YouTube channel, where we are building an
impressive library of video content.
As part of our marketing and promotional work, we will be embarking
on a series of road shows from May 2016 to promote the PCU to the
Pentecostal faith community. We will be advertising the roadshows shortly,
but if you would like your church to be a part of these events, please let
us know. Call the office and speak to Shane for more information.

15
Improvements in products and services
We reported last year on the segmentation research project we
commissioned. This enabled us to talk to a portion of our members
across all the various profiles –lifestyle, age, gender, economic, domestic
and familial circumstances. By doing this, we have been able to group
our membership into segments, so that we can shape the development
of products and services into the future.
The Digital Age is here and we must upscale our product offering to
remain competitive and vital. The results of this research are helping us
to do this, as is our membership of the Credit Union Expansion Project –
the government’s injection of funds to help build and transform the
credit union sector in the UK. 2016 is the year of transformation and you
will see some evolutionary changes during this year to the products and
services that we offer you.
A new office
Many of you will have visited the new offices at Oldridge Road. Major
refurbishment of the building has provided a contemporary, bright and
comfortable environment from which we can transact our business. It is
a huge improvement on the previous office facilities. We now have two
reception areas, a private room for members who wish to discuss their
business confidentially, a Board meeting and training room with a fully
fitted kitchen, in addition to the revamped offices upstairs for the staff.
We are planning an office opening on 14th April, where Bishop Delroy
Powell will officiate a service to re-dedicate the building and the credit
union itself to the ministry of providing financial services to the
Pentecostal faith community in the UK. The Deputy Mayor of
Wandsworth, Councillor Leslie McDonnell, will be formally opening the
office. We also plan to have the office open from 3pm, so any member
can come in, have some refreshments and see the new facilities.

Developing our young people
Last year we told you about our plans to establish a Youth Shadow
Board. We think it’s really important to invest in the development of our
young savers and we are doing this by setting up a ‘shadow’ Board
made up of young members aged 11-18 years old. This ‘shadow’ Board
will not be elected by the membership, but will be able to influence the
main Board, by making proposals and suggestions about how we can
improve the way we manage the organisation and the products and
services we provide, particularly to younger people.
We really need to hear more from our younger membership directly. We
need to make sure that we are developing services that our younger
members really want, and we encourage more younger people to join
the credit union. We also want to be able to provide personal and
citizenship development opportunities for our young members, so that if
in the future they would like to volunteer for full Board membership of
this organisation (or any organisation) they will have the skills to do this.
This will be great for their CVs.
To date, take-up has been slow, but we are speaking directly to the
parents of our young members to encourage them to join. Please help us
to promote this great opportunity to develop our young savers. All Youth
Shadow Board members have to be members of the PCU. We have some
leaflets about the initiative, so take one away with you and promote the
initiative to anyone you think may be eligible to join.
More good news
Rule change at PCU
Last year we asked you to vote for a change to our rules to amend the
common bond criteria for membership to enable anyone who attends a
Pentecostal Church in the UK to join – and deleting the family
connection criteria, and reduce the frequency of Board meetings from
monthly to bi-monthly.
We are happy to report that our submission for the new rule change was
approved by the Financial Conduct Authority.
PCU Shares
This is the title of our new quarterly newsletter. You should all have
received the March edition. It’s our way of engaging and keeping in
touch with the membership. We hope you like the newsletter. We’re
planning to have a slot for members to contribute, so send any
information or news that you would like to share to info@pcuuk.com, or
call Lauren or Shane.
Settled litigation
We have settled the high profile legal case that has been the one less
positive aspect of our operations over the past four years or so. We have
recovered as much of the money owed as we could get – and we still
have more sums to recover, but the litigation is over and we successfully
proved to the court that the money was owed to the credit union.
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Welcome to
our new
newsletter
We hope you like our new
newsletter, which is designed to
share our news, give you lots of
information about our services –
and invite you to join us as a
volunteer.
The newsletter is part of our
transformation plans for PCU over
the coming year. It will allow us to
keep you up to date and pass on
useful information.
Leslie Laniyan
Chair of the PCU Board
Bright new office
(& new services on the way)
The refurbishment of our Balham offices is now complete,
giving us a brighter reception area and better spaces for
our staff and meetings.
pcushares
March 2016
Our newly updated offices reflect the
way we’re working to transform the
entire business – to provide our
members with a modern, accessible
service that better meets their needs.
On 14 April, we will hold a small
opening event. Bishop Delroy Powell
from the New Testament Assembly will
lead a service to re-dedicate the building
and the credit union to the ministry
of providing financial services to the
Pentecostal faith community in the UK.
Inside
Meet PCU’s staff 2
Church Credit Champions
Network 2
Become a PCU Ambassador 3
Involving young people 3
Tips to stay on top of your
finances 3
Focus on: Our YouTube channel 4
News from the Pentecostal Credit Union
Before (bottom left) and after (below
and right). Our tired offices are now
transformed.

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PCU’s 35th Anniversary Celebration
The great triumph of the year was our 35th Anniversary Celebration on 6
June last year. We hosted a gala dinner and gospel show for 300 guests
at the Wandsworth Civic Suite and the event was a resounding success.
We sold out the tickets two weeks before the event, and there was a
waiting list of people hoping to get tickets up to hours before the show.
We held the event because we wanted to celebrate the great achievements
of this credit union – one of the oldest and financially strongest credit unions
in the country. We wanted to honour the founding members, to mark the
history and success of black enterprise in the UK, and most importantly
we wanted to promote the credit union, raise our profile and increase
our membership. The event helped to do all of those things and we are
still reaping the benefits of that effort today – in increased awareness of
us and increased membership. Thank you all for supporting us in this.
Regulatory compliance
In accordance with new 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.
Our thanks
We must now thank those people without whom none of this would have
been possible. Our excellent staff team: Shane Bowes, our Chief Executive
Officer and Lauren Humphris, our Loans and Business Administrator, who
keep this business flowing and thriving. We also want to thank Hugh
Boatswain who acted as interim CEO for two years and left us in December.
But most importantly, we want to thank you the membership. Your
commitment is unshakeable and you continue to provide that pillar of
support that we rely on. For this, you have our deepest gratitude and we
remain totally dedicated to the governance of the PCU and delivering
excellent services to you all.
The directors
Leslie Laniyan (Chair), Chona Labor (Vice Chair), Patricia Toussainte
(Secretary and Complaints Officer), Michael Mathura, Lorna Lynch,
Tracey Connage, Verona Richards, Ann Waugh (Chair, Audit Committee)
March 2016

18
Loans report
1 October 2014 to 30 September 2015
Month Loans granted (£) Total (£)
October 2014 80,500 80,500
November 2014 141,034 221,534
December 2014 117,799 339,333
January 2015 80,000 419,333
February 2015 65,300 484,633
March 2015 74,050 558,683
April 2015 37,560 596,243
May 2015 95,500 691,743
June 2015 207,471 899,214
July 2015 174,382 1,073,596
August 2015 114,150 1,187,746
September 2015 92,900 1,280,646
TOTAL 1,280,646 1,280,646

Introduction
The Audit Committee exists to:
1. Safeguard your interests
2. Ensure the Board meets all legal and regulatory requirements, as well
as financial probity
We scrutinise and audit The Pentecostal Credit Union Limited’s (PCU)
practices so that they safeguard your interests, treat you fairly and
comply with the law of the land.
We are not part of the Board and operate completely independently of
it; we are what are known in the sector as non-executive directors. With
the Financial Conduct Authority (FCA), we have a controlled function
status. We are here for you the members.
Each financial year, we set out the areas of focus, together with the
Board, based on challenges ahead, listening to members’ feedback,
lessons learned from previous audits and new developments in the credit
union sector.
The purpose of the Audit Committee Report is to inform PCU members
of:
1. New internal auditor
2. Results of Internal Audits during 2014-2015
3. Key lessons and emerging trends from internal audits
4. Board’s expertise and effectiveness
5. Audit Plan for 2015-2016
1. New internal auditor
The Audit Committee’s role is to oversee the internal auditor’s work. The
internal auditor checks the systems and processes, and reports to us –
and we, in turn, report this to the Board. I mentioned in the 2015 AGM
that we would be appointing a new internal auditor. Leroy Reid and
Company Ltd, a company with over 34 years’ experience of auditing,
won the tender for the work. February 2015 saw the start of our two-
year internal audit contract.
2. The result of internal audits during
2014-2015
The internal auditor covered 11 areas of operation during the internal
audit for the year 2014-2015. These provided regular scrutiny of the
PCU’s areas of operations. They work to an annual plan that ensures that
the entire business undergoes full scrutiny during the financial year. They
assess the PCU and score the organisation’s performance against the
policies and procedures in use. The PCU can achieve one of four ratings
(which are illustrated in figure 1, in the appendix).
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Audit Committee report to the AGM
October 2014 to September 2015

20
TABLE 1: Internal Audits – 2014/2015
Audit focus Assessment Board meeting
1. Lending process – Q1 Reasonable assurance 16 January 2015
2. Procurement – building works
– Q1
Substantial assurance 16 January 2015
3. Governance & compliance – Q2 Substantial assurance 17 July 2015
4. Lending process – Q2 Substantial assurance 17 July 2015
5. Finance & treasury – Q2 Reasonable assurance 17 July 2015
6. Reconciliation & reviews – Q2 Reasonable assurance 17 July 2015
7. Marketing – Q3 Reasonable assurance 13 November 2015
8. Capital Investments – Q3 Substantial assurance 13 November 2015
9. Governance & management
– Q4
Reasonable assurance 13 November 2015
10. Lending process – Q4 Reasonable assurance 13 November 2015
11. Risk management – Q4 Not completed Due February 2016
12. Member information – Q4 Reasonable assurance 13 November 2015
Table 1 below summarises the assessment ratings the PCU achieved over
the financial year 2014-2015.
Seven out of 12 audits have been rated ‘reasonable assurance’. Four
were rated as substantial assurance. One has yet to be finalised and
should be carried forward into next year’s schedule of audits.

3. Key lessons and emerging trends from
internal audits
In any organisation there are things:
a) They ‘know’ about themselves – eg their strengths.
b) Which are ‘hidden’ to other people (members, business partners, etc)
but the organisation knows about them – eg areas for development.
c) Likewise there are ‘blind-spots’ – things they do not know about
themselves, but others know about the organisation.
d) There are also ‘unknown’ things about an organisation – things we
do not know and other people partners do not know either.
The Audit Committee through the internal audit process aids the PCU to
learn and grow from audits, feedback, collaboration and discovery. It is
very similar to the model called Johari’s Window – also referred to as a
‘disclosure/feedback model of self awareness’, and an ‘information
processing tool’ (see figure 1).
Learning from audits commences with the strategic objectives, key risks
and expectations of members. We then look at how the PCU goes about
meeting your wishes and expectations through the credit union laws and
their own policies and procedures. We also scrutinise the appropriateness
of decisions in light of the emerging trends and securing a long-term
legacy for the PCU’s current and future members.
The Audit Committee Chair and Chair of the Board of Directors appraise
the Internal Audit reports, listen to management feedback and responses
to the recommendations and consider the challenges organisations of
our size and experience face. With both Chairs quality assuring the
process, it has helped the PCU to learn from the findings of the internal
auditor and make the Board more aware of its blind spots.
Thankfully, the members have a Board of Directors and a management
team that are open to learning and determined to improve. Improvements
have been made to our marketing strategy as well as to the management
information reports that the Board need to make decisions. The PCU is
aiming to maintain a substantial assurance rating on its lending process.
4. Board expertise and effectiveness
The Board of Directors have the majority of the right competencies to
address the company’s short-term and long-term issues, and a strong
Chairman. Where possible, we contract in specific competencies such as
marketing and strategic business planning. The directors challenge
appropriately the management group. The Chair ensures there are
thorough discussions and rigorous decision-making at and in between
Board meetings.
Overall attendance at Board meetings is 93%. There have been no
consecutive absences. Absences were accompanied by apologies and
occurred because of illness, holiday or previously planned engagements.
One director resigned in November 2015.
21
OPEN SELF
Known to both
self and others
BLIND SELF
Unnoticed by
self, but known
to others
HIDDEN SELF
Known to self,
but not to
others
UNKNOWN SELF
Unknown to
self and
others
Known to self Unknown to self
KnowntoothersUnknowntoothers
Figure 1: Johari’s Window
(Luft and Ingham, 1955)

5. Audit Plan for 2015-2016
Through discussions with the Chair and CEO, and noting news coming
from the Association of British Credit Union Ltd, the Audit Committee
has identified the follow areas for review. The new audit schedule for
2015-2016 is outlined below and was approved at the October 2014
Board meeting.
22
TABLE 2: Audit Schedule for 2015-2016
Area Q1
Oct-Dec
2015
Q2
Jan-Mar
2016
Q3
Apr-Jun
2016
Q4
Jul-Sept
2016
1. Business plan implementation ü ü
2. Loans – lending process ü ü ü ü
3. Marketing ü ü
4. Membership ü
5. Provisioning ü
6. Risk assessment &
management
ü
7. Segregation of duties ü
8. Treasury management ü
9. Treating customers fairly ü
Conclusion
The Audit Committee has a good professional relationship with the
Board. The Prudential Regulation Authority (PRA) is satisfied with our
work and I hope you the members are too.
Ann Waugh Chair, the PCU Audit Committee
26 February 2016
Appendix 1
Each review provides an assessment of the effectiveness of the PCU’s
controls for mitigating key risks.
Figure 2: Internal auditor investment ratings
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.

PENTECOSTAL CREDIT UNION
LIMITED
DIRECTORS' REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2015
FCA REGISTRATION NUMBER
213242
COMPANY NUMBER
IP00006C

PENTECOSTAL CREDIT UNION LIMITED
FCA REGISTRATION NUMBER 213242
COMPANY NUMBER IP00006C
Chief Executive Officer Mr H Boatswain
Mr S Bowes
(Resigned December 2015)
(Appointed December 2015)
Directors Mr G L Laniyan
Mr C M Labor
Mr M Mathura
Ms P M Toussainte
Mrs T Connage
Miss L Lynch
Ms V Richards
Chairman
Audit committee members Miss A Waugh
Treasurer Mr S Bowes
Secretary Ms P M Toussainte
Loans officer Miss L Humphris
FCA requirement Version 2 credit union
FCA registration number 213242
Company number IP00006C
Registered office and
Business address
15 Oldridge Road
Balham
London
SW12 8PZ
Auditors Thomas Westcott
26-28 Southernhay East
Exeter
Devon
EX1 1NS

CONTENTS
Page
Directors' report 1 - 2
Auditors' report 3 - 4
Income and expenditure account 5
Balance sheet 6
Notes to the financial statements 7 - 12

DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
Page 1
The directors present their report and the financial statements for the year ended 30 September
2015.
Principal activity
Pentecostal Credit Union Limited is regulated by the Financial Conduct 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.
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
Ms P M Toussainte - Secretary
Mr M Mathura - Director
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.

DIRECTORS' REPORT
Page 2
.................... continued
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.
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

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF
Independent auditors' report to the shareholders of
PentecostalCreditUnionLimited
We have audited the financial statements of Pentecostal Credit Union Limited for the year ended 30
September 2015 which comprise the income and expenditure account, the appropriation 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).
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.
Respective responsibilities of directors and the auditors
As explained more fully in the Directors' Responsibilities statement on pages 2 to 3, the directors are
responsibile for the preparation of the 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 (APB'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 director's 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. If we become aware of any apparent material misstatements or inconsistencies we
consider the implications for our report.
Opinion on the 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 30 September 2015
and of its income and expenditure for the year then ended; and

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF
...................continued
- 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.
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 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 income and expenditure 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.
Shona Godefroy FCCA(senior statutory auditor)
For and on behalf of Thomas Westcott
Chartered Accountants and Statutory Auditors
26-28SouthernhayEast
Exeter
Devon
EX1 1NS

REGISTRATION NUMBER 213242
DETAILED TRADING PROFIT AND LOSS ACCOUNT
AND EXPENSES SCHEDULE
2015
£ £ £
2014
£
Income
Entrance fees 570 300
Income from loans to members 322,425 352,742
Interest received on investments 69,419 67,327
Bad debts recovered 175,395 -
Sundry income 5,139 1,283
PCU 35th anniversary celebrations income 7,754 -
Total income for the year 580,702 421,652
Administrative expenses
Administration expenses 135,771 194,568
Data processing expenses 6,588 8,876
Fidelity bond insurance 3,934 4,085
Consultancy fees 30,375 33,750
FCA fees 6,712 7,707
Auditors remuneration 8,608 7,530
Other legal and professional 135,407 117,320
Affiliation fees 1,813 1,830
Bank charges 675 359
Bad debt provision (33,788) 383,957
General expenses 473 1,062
PCU 35th anniversary celebrations
Charitable donations - other
35,991
-
-
10,000
Depreciation of assets 16,368 10,971
Total expenditure for the year 348,927 782,015
Surplus/ (Deficit) for the year before taxation 231,775 (360,363)
Taxation 13,884 13,465
Surplus/ (Deficit) for year before appropriations 217,891 (373,828)
There are no recognised gains or losses other than those included above.
All figures included in the income and expenditure account relate to continuing activities.
Appropriations:
Revenue reserve 8 217,891 (373,828)
Dividend 8 (71,040) (104,924)
Total applied 146,851 (478,752)

BALANCE SHEET
AS AT 30 SEPTEMBER 2015
Page 6
Notes
2015
£ £
2014
£ £
Fixed assets 4 504,340 326,109
Members loans 5 4,508,310 4,649,819
Less: provision for underperforming loans (940,506) (974,294)
3,567,804 3,675,525
4,072,144 4,001,634
Current assets
Prepayments and accrued income 6,709 8,938
Investments 3,684,797 5,619,943
Cash at bank and in hand 1,783,403 164,388
5,474,909 5,793,269
Creditors: amounts falling
due within one year 6 (26,254) (35,537)
Net current assets 5,448,655 5,757,732
Total assets less current liabilities 9,520,799 9,759,366
Net assets 9,520,799 9,759,366
Capital and reserves
Ordinary members shares 7 7,271,640 7,659,769
Junior members shares 7 120,929 118,218
Hold shares 7 190 190
Revaluation reserve 8 297,124 297,124
Social and educational reserve 8 115,409 115,409
Revenue reserve 8 434,913 288,062
General reserve 8 1,280,594 1,280,594
Total capital and reserves 9,520,799 9,759,366
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
The notes on pages 7 to 12 form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS
Page 7
1. Accountingpolicies
1.1. Accounting convention
The Credit Union is registered under the Co-operative and Community Benefit Societies Act
2014. The financial statements 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.
1.2. Interest
All interest payable and receivable is accounted for on an accruals basis.
1.3. Taxation
Corporation tax payable is provided on investment income at the current rate.
1.4. Tangiblefixedassetsanddepreciation
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% reducingbalance
Tangible fixed assets are stated at cost less accumulated depreciation.
1.5. Provisionfor doubtfuldebts
Provision for doubtful debts is stated after specifically reviewing all loans in arrears. The criteria
used is whether the loan will be repaid within the medium term and whether there is a regular
pattern of repayments and is in accordance with the requirements of the Financial Services
Authority.
1.6. Juvenile depositors
Juvenile transactions are included within the financial statements unless specially shown
otherwise.

.................... continued
2. Auditors' remuneration
2015 2014
£ £
External auditors' remuneration - audit of the financial statements 4,860 4,740
Internal auditors' remuneration - internal audit services 3,748 2,790
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.
3. Tax on profit/(loss) on ordinary activities
Analysis of charge in period 2015 2014
£ £
Current tax
UK corporation tax 13,884 13,465

.................... continued
Land and Fixtures,
4. Tangible fixed assets buildings fittings
freehold equipment Total
£ £ £
Cost
At 1 October 2014 425,000 36,598 461,598
Additions 182,504 12,095 194,599
At 30 September 2015 607,504 48,693 656,197
Depreciation
At 1 October 2014 112,684 22,805 135,489
Charge for the year 9,896 6,472 16,368
At 30 September 2015 122,580 29,277 151,857
Net book values
At 30 September 2015 484,924 19,416 504,340
At 30 September 2014 312,316 13,793 326,109

.................... continued
Page 10
5. Members loans 2015
£
2014
£
Members loan accounts (see below) 4,508,310 4,649,819
Provision for underperforming loans (940,506) (974,294)
3,567,804 3,675,525
Members loans
(including Juniors)
Balances brought forward from last year 4,649,819 4,848,000
Repaid (1,694,927) (1,095,988)
Granted 1,235,805 552,680
Interest charged 317,613 345,127
Loans written off - -
4,508,310 4,649,819
6. Creditors:amountsfallingdue
within one year
2015
£
2014
£
Trade creditors 12,371 22,072
Corporation tax 13,883 13,465
26,254 35,537

.................... continued
Page 11
7. Members shares
(including Juniors)
2015
£
2014
£
Balance brought forward from last year 7,778,177 7,595,426
Shares saved and loans repaid 1,472,732 1,398,131
Dividends paid 71,040 104,924
Shares withdrawn (1,929,190) (1,320,304)
7,392,759 7,778,177
Analysed as:
Ordinary members shares 7,271,640 7,659,769
Hold shares 190 190
Junior members shares 120,929 118,218
7,392,759 7,778,177
8. Reserves Revaluation
reserve
General
reserve
Revenue
reserve
Social and
educational Total
£ £ £ £ £
At 1 October 2014 297,124 1,280,594 288,062 115,409 1,981,189
Dividends paid - - (71,040) - (71,040)
Appropriation of surplus - - 217,891 - 217,891
At 30 September 2015 297,124 1,280,594 434,913 115,409 2,128,040

.................... continued
Page 12
9. Capital commitments 2015
£
2014
£
Details of capital commitments at the
accounting date are as follows:
Contracted for but not provided in
the financial statements 39,269 153,875
The credit union has entered into a contract for improvements to their premises.
10. 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, Pentecostal Credit Union paid £29,795 (2014: £19,582) in consultancy fees
to Mrs E Bowes, mother of Mr S Bowes.
11. Members numbers 2015 2014
(including Juniors)
Members as at 30 September 1,574 1,511
Junior members as at 30 September 29 25
Total 1,603 1,536

Celebrating the PCU’s 35th anniversary
1980-2015
38

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 - 36th Annual General Meeting

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