The Pentecostal Credit Union Ltd - 38th Annual General Meeting

The
Pentecostal
Credit
Union
Ltd
38th
Annual
General
Meeting
from 6pm
24 March 2018
at Tooting
Neighbourhood Centre
28 Glenburnie Road
London SW17 7PJ

Solomon’s room event highlights
Tuesday 30 January 2018

AGM agenda
1. Welcome
2. Prayer
3. Song: Here I am to Worship
4. Scripture: Ecclesiastes 11:1-6
5. Apologies
6. Minutes of last AGM: 11 March 2017
7. Matters arising
8. Directors’ report
9. Presentation from the Youth Shadow Board
10. Song: How Great is our God
11. Keynote speaker: David Frederick from Prostate Cancer UK:
‘Raising awareness of prostrate cancer’
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. Closing: A word from the founder – Rev. Carmel Jones
19. Song: Hallelujah you have won the victory
20. 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.

3
Light of the World
You stepped down into darkness
Open my eyes
Let me see
Beauty that made
This heart adore You
Hope of a life
Spent with You
Here I am to worship
Here I am to bow down
Here I am to say that You’re my God
You’re altogether lovely
Altogether worthy
Altogether wonderful to me
King of all days
Oh, so highly exalted
Glorious in Heaven above
Humbly You came
To the earth You created
All for love’s sake became poor
Altogether worthy
I’ll never know how much it cost
To see my sin upon that cross
Here I am to Worship Michael W. Smith
Altogether worthy
Altogether worthy
Altogether worthy
You’re wonderful to me
Oh God, you’re wonderful to me

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Scripture: Ecclesiastes 11:1-6
Cast thy bread upon the waters: for thou shalt find it after many days.
Give a portion to seven, and also to eight; for thou knowest not what
evil shall be upon the earth. If the clouds be full of rain, they empty
themselves upon the earth: and if the tree fall toward the south, or
toward the north, in the place where the tree falleth, there it shall be. He
that observeth the wind shall not sow; and he that regardeth the clouds
shall not reap. As thou knowest not what is the way of the spirit, nor
how the bones do grow in the womb of her that is with child: even so
thou knowest not the works of God who maketh all. In the morning sow
thy seed, and in the evening withhold not thine hand: for thou knowest
not whether shall prosper, either this or that, or whether they both shall
be alike good.

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Held on Saturday 11 March 2017
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 L Humphris (Loans and Business Administrator)
Ms E Bowes (Executive Assistant and Minute Taker)
Minutes of the 37th 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.
Prayer, hymn and scripture reading
Rev. Verona Richards facilitated the ‘praise and worship’ opening session.
She read the prayer and led the membership in the hymn – How Great is
Our God. The scripture reading was taken from 1 Chronicles 29: vs. 11-13.
Apologies
Apologies were received from Ms M Tapper and Mrs C Dixon.

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Minutes of the last meeting
Mrs Patricia Toussainte, Secretary of the Credit Union, and Mrs Tracey
Connage, Director, both read the minutes of the last meeting.
The following corrections were noted to the minutes.
• The third prize raffle award to Sis Logan was for £50 not £100.
• Mrs Katherine Johnson corrected her name spelt Kathleen to Katherine.
Rev. Jones proposed that the minutes be accepted as a true record of
events. Mr Romeo Effs seconded the proposal. The minutes were
accepted with no further changes or challenges.
Matters arising
The Chair updated the meeting on the matters arising from the 2016
AGM, concluding that the Board had delivered on all the proposals that
had come from the membership at the AGM.
• Rev. Jones proposed that quality of presentations could be improved
by making more use of PowerPoint and having a mic/pa system. This
was done for this AGM.
• Bishop Eric Brown proposed that PCU should consider having prayer
breakfasts. The PCU went on to launch Lunch and Pray events, hosted
by the Rev. Jones.
• Directors: The Board plans to establish a Youth Shadow Board (YSB).
were completed. The YSB was established in October 2016 and is
making great progress.
• Bishop Eric Brown proposed that Rev. Jones should be given an
award. This was completed. Rev Jones was presented with a Lifetime
Achievement Award at the office opening on 14 April 2016.

7
Directors’ report to the membership
The Chair presented a summary of the Directors’ Report. During his
presentation, two PCU promotional videos were played – ‘Gimme Dat’
and ‘PCU at BBC Songs of Praise’. He commenced his presentation by
stating that there was much to be proud of with regard to achievements
since we last presented our report to the membership in 2016. He
highlighted the following.
• Loans for the year total some £1.65m – a £370k increase in the loans
allocated last year and an overachievement of the £1.2m target by
some £450k.
• New membership is currently trending at 16 per month and is on an
overall upward trajectory since we began counting in 2014, when it
was averaging at five new members per month.
• In the final year of our Business Plan, we have attained 26 of the 28
specific goals that we set in order to achieve the overall objectives of
Growth, Renewal and Improvement.
• In March 2016, the PCU attained the Investor in People Bronze Award
– a significant achievement for a small employer like the PCU.
• We have engaged the services of an independent research agency to
survey customers monthly to improve customer services. Early
indicators show that the level of customer satisfaction at the PCU is
exceptionally high.
• Our campaign to increase our engagement with young people has
delivered far more than we planned for. The Youth Shadow Board
(YSB) produced the ‘Gimme Dat’ video, which led to the partnership
between New Life Assembly and PCU to develop a youth leadership
programme. This group joined the PCU YSB, which is now over-
subscribed and bulging with commitment and ideas and plans for
their development. Our work with the YSB similarly led to PCU being
featured on BBC Songs of Praise for the uniqueness of the programme.
• The sum of £1,900 was awarded to new members through the
Equiano Benevolent Gift Scheme.
• Our marketing programme, which includes our social media strategy,
is demonstrably delivering the outcomes that we aimed for, and
contributing to the increase in membership, which in turn translates
to the increase in lending.
• Our engagement with our customers and potential customers is
much improved and yielding results. This is due in no small part to
the publication of the newsletter, PCU Shares, and the face-to-face
contact with our common bond community via the Moneywise
workshops and presentations.
• The Moneywise workshops are available all over the country and, this
year, as well as in London, there were workshops in Birmingham,
Leicester and Luton.
The Chair then thanked the staff team – Shane, Lauren and Elaine – for
their work in delivering the PCU’s objectives and also thanked his fellow
Board members
The Chair then invited questions on the Directors’ report.

8
Rev. Jones commented that the Equiano Benevolent Gift Scheme (EBGS)
is a very successful programme. He said that the EBGS age criteria for
new credit union membership would be extended from 0-18 yrs to 0-26
years. He added that the scheme has definitely led to increased credit
union membership and encouraged members to ‘spread the word’
about the scheme. The opening deposit of £30 is available to any new
member aged 0-26 years, who wishes to open a credit union account.
There were no other questions or comments.
Presentation from the PCU
Youth Shadow Board (YSB)
Moses Williamson introduced himself as the Chair of the YSB and
thanked the Board for the opportunities that the PCU have given to the
YSB. He outlined the role of the YSB and the nature of the leadership
programme.
He then invited each YSB member to introduce themselves to the AGM.
Each member then in turn spoke about what they had been doing on
the programme, the impact of their learning, the changes that it had
made to their lives and the future for the YSB. Moses then closed by
thanking the membership for their support.

9
The Chair invited questions or comments to the YSB.
Fay Gordon commented that she had been involved with PCU for a very
long time and was pleased to see the progression from when Rev. Jones
and Sis Jones started the PCU at Fentiman Road to where it is now. She
added that many of the founding members were no longer with us and
it’s important that young people are here to carry on. She asked the YSB
to lead by example and encourage other young people like themselves.
Another member added that they would like to commend the Board for
the excellent work that they are doing with young people. It was really
wonderful to see the passion and enthusiasm of the YSB, and they should
keep this going.
Marcia Jones said that as a member of New Life Assembly Church, she
wanted to say what a fantastic job Elaine (Bowes) and Romeo (Effs) had
done with the young people. A lot of work had been done in a very
short period of time.
Romeo Effs added that he had worked with young people all over the
world, but he had never had a bunch of young people so dedicated and
who put their heart and soul into the programme as this group had. He
added that the family had a lot to do with it in relation to how children
are bought up and the fact that they are from Christian homes and
churches had a lot to do with providing the impetus to do what they
need to do. Even though his contractual time with the YSB had ended,
he would continue to keep giving of his time to help them to develop
into the adults that he knows they can be.
Rev. Jones asked the EBGS trustees – Ms B Tomlin and Mrs I Jones – to
stand up and agree to provide a bonus of £10 each to every YSB member
to be paid into their credit union accounts. The EBGS trustees agreed.
Banking charges
Shane Bowes introduced this item. He explained that the PCU will adopt
transaction banking as part of joining the Credit Union Expansion Project.
Transaction banking will allow a PCU member to make payments to
another person or business, or to receive payments from another person or
business, directly by logging in to their account. They will be able to do
this either via the PCU website, or by downloading an app that will
accompany the new banking facility at launch.
A transaction fee of £0.40p will be levied against the PCU each time it
remits funds to a member’s account or pays a beneficiary. Each time
funds are deposited into the bank account of the PCU by a member
paying shares, loan repayments or other creditors, the PCU will be
charged £0.01. These costs will represent a significant ongoing expense
to the credit union, which will increase over time as membership
increases, and products and services diversify.

10
Shane proposed that adult members, aged 18 and above, contribute the
sum of £2.50 per year as an annual service charge deduction from their
share accounts, as a contribution towards the estimated annual costs.
He added that £2.50 per year represented good value for money for
transaction banking facilities, a new app and a new interactive website,
with the new functionality. Members are, in effect, only making a small
contribution towards the costs of transactions that the credit union will
have to pay.
The meeting agreed the proposal and it was moved by Fay Gordon and
seconded by Marcia Jones.
Loan report
The Loan report was presented to the membership by the Loans and
Business Officer Lauren Humphris. She reported that a total of £1,681,800
had been allocated in loans between 1 October 2015 and 30 September
2016. Shane Bowes commented that this was a substantial improvement
on last year’s outturn. The annual target of £1.2m (monthly £100,000)
set by the Board was overachieved by £450,000. This represents an
increase of £370,00 on the previous year’s lending.
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 – 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, who audits TPCU’s operations in accordance with an
agreed audit plan. The Audit Committee is independent of the Board
and operates separately.
The purpose of her report was to inform the members of:
• new developments
• results of internal audits during 2015-16
• key lessons and emerging trends from internal audits
• the Board’s expertise and effectiveness, and
• the audit plan for 2016-2017.
She summarised:
• Of the 14 audit reports over the year, the majority were rated
‘substantial assurance’, which is the highest that can be achieved.
Lending, business plan implementation and marketing were amongst
those rated as substantial.
• Board scrutiny is about how well the Board is performing, and the
independent governance audit this year played a significant part in
this process.
• The PCU has a strong and effective Board. The Board makes its
decisions with a ‘scriptural mind’ and is mindful of continuing the
legacy started by the Rev. Carmel Jones. The independent audit gave
us a mark of distinction, showing that the Board is run in an excellent
way.
• The Board is resilient. The Chair is very strong and directors are not
afraid to ask questions and challenge appropriately.

11
• Annual skills reviews demonstrate that the Board have the majority of
the skills necessary to run the business. The PCU ‘buys in’ any
additional competencies we need – such as RVS Realtime supporting
the Board in social media.
• The PCU’s finances are strong and are getting stronger.
• Using SWOT to analyse PCU performance:
— in strengths the Board is very effective – management is strong
— the level of responses to PCU’s monthly customer survey responses
has improved through the use of Acuity (independent researchers)
— the area where PCU could improve is in succession planning.
Ann Waugh finally summarised the audit plan for 2016-17.
She then invited questions from the floor. There were no questions.
Leslie Laniyan thanked Ms Waugh for her report.
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 Leslie Laniyan and Patricia
Toussainte. Rev. Jones proposed that they be re-elected, which was
seconded by Chona Labor. These members were duly re-elected.
There were no other nominations from the floor.
PCU financial statements
Ms Lorna Lynch, Director, presented the financial statements.
She went through the detail and explained that the PCU had done well
and was in profit or surplus. The business was growing and the aim was
to get stronger and stronger.
There were no questions or challenges on the accounts. They were
accepted by the membership.
Dividend
A dividend of 1% was recommended. Lorna Lynch explained that this
was better than you would get from most high street banks given that
the Bank of England base rate was 0.25%. Shane Bowes was asked to
explain the detail.
Rev. Jones made a plea try to cut back on expenses and expenditure, but
that there should be no cut in the budget for the YSB. He hoped that we
could pay 1.5% for next year.
Shane Bowes said he appreciated the comments, but the membership
should bear the following in mind.
• The PCU can only pay a dividend that reflects the success of the
business and in relation to the current economic climate.
• PCU’s dividend compares favourably with other credit unions of a
similar size. For example, Bristol CU are paying 0.25% and London
Capital – one of the largest credit unions – is paying 0.75%. Many
other credit unions are paying no dividend at all. These credit unions
have large overheads and don’t provide half the services that PCU
does to its membership.
• Expenditure had reduced by a third from last year to this – by
£79,000.

Romeo Effs commented that we can only increase the dividend if the
profits increase, or if we reduce the revenue. How can the membership
help the credit union to increase its revenue? He appealed to members
to come to the PCU first with their loan needs – to see PCU as a first
point resource and encourage people in their networks to join the credit
union. Mr W Robinson added that an event would to help to boost the
marketing of the CU – such as the gala dinner few years ago.
Mr W Robinson moved to accept the dividend of 1%. Seconded by Rev.
Jones.
Appointment of the auditor
Ms Lynch proposed that Thomas Westcott be re-appointed as our
Auditors for the coming year. Shirley Williams moved that we re-appoint
Thomas Westcott as PCU auditors. This was seconded by Mr Antony
Bartley.
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 commented on the level of growth to the PCU loan book –
highlighting that the sum of £1.65m was impressive, particularly as these
were not church loans but loans to individuals. She also commended the
development of the YSB and how they were constituted – with a Chair,
Vice Chair, Secretary and Treasurer – and said how excited she was for
their future.
Master Marvin Agyei drew the raffle. The winners were:
• No. 459 – Nathaniel Williams – £150
• No. 461 – Italia Bartley – £100
• No. 454 – Shawn Paul Freck – £50.
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Founder’s closing address
Rev. Jones addressed the membership. He thanked everyone for attending.
He also said how impressed he was with the YSB and re-stated that the
Equiano Benevolent Gift Scheme would be crediting each one of their
accounts with a gift of £10.
Rev. Jones asked the membership to remember those members who had
passed away during the year. He read the names a minute’s silence was
held in their memory.
He then reminded the membership that EBGS was increasing the age for
the £30 membership opening deposit from 0-18yrs to 0-26 years, and
asked members to encourage young people to join the credit union.
Finally, he thanked the Board for the great work they were doing and
commented that the changes were very evident.
In closing, he led the membership in the hymn Through all the Changing
Scenes of Life.
Pastor D. Ecclestone closed the proceedings in prayer.
13

14
The PCU organisational chart
PCU
Membership
Board of directors Audit Committee
Leslie Laniyan MBE
Chair
Ann Waugh
Chair
Chona
Labor
Vice Chair
Patricia
Toussainte
Board member
Secretary
Complaints
Officer
Verona
Richards
Board member
Michael
Mathura
Board member
Tracey
Connage
Board member
Lorna
Lynch
Board member
Shane
Bowes
Chief Executive
Officer
Lauren
Humphris
Loans and
Business
Officer

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Dear members
September 2016 to October 2017 was another year of both challenge
and achievement for the Pentecostal Credit Union. In this final year of
our strategic planning cycle (PCU Business Plan 2014-17), we continued
to raise the bar of expectation for achievement at the PCU and we are
happy to announce that these initiatives are bearing fruit. 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 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.
• A total of 191 new members, averaging 16 per month, as compared
with five per month in 2014. Current membership data (2017-18)
indicates that this trend is continuing, which is placing us well on
track to achieving this year’s target.
The growth in membership for the 2014-15 and 2016-17 financial years
is set out below, and the increase in lending is outlined in the loans
report on p24.
Directors’ report to the membership

16
A Vision for the Future
The PCU Business Plan: 1 October 2017
to 30 September 2020
One of the most important developments for the year was the crafting
of our new business plan for the three-year period 2017-20.
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 deliver this through
the provision of high quality, and relevant, financial services and member
development activities. The current economic environment is challenging,
with the recent referendum on Britain’s continued EU membership 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.
Where we are coming from:
Strategic objectives achieved for 2014-17
Growth, Renewal and Improvement were our three strategic business plan
objectives from 1 October 2014 to 30 September 2017, and, as you know,
we set challenging targets to achieve these objectives, which are reviewed
and revised each year at the annual Board strategic planning workshop.
The targets are revised to provide the appropriate stretch in the areas of
lending, membership and shareholding, and we are proud to announce
that we achieved all of the business plan objectives set for this period
Key highlights of achievement during the three-year business planning cycle
are as follows.
• An exceptionally high level of customer satisfaction (Net Promoter
Score of 93%), evidenced by independent monthly reviews conducted
by market research company Acuity.
• Robust governance – an independent governance review in 2017
scored us a very good overall average of 80.25%.
• A skilled and committed staff team – achievement of Investors in
People Bronze award in 2016. To date the only ABCUL credit union to
have attained this.
• A well-managed organisation – the results of independent internal
audits consistently score the PCU at ‘substantial assurance’ – the
highest score possible – for lending, treasury management and
business plan implementation.
• The development of vibrant member development initiatives, which
include the establishment of our Youth Shadow Board (a succession
planning and leadership development initiative for 14 of our junior
savers) and the Moneywise Business Development Programme.
• Successful campaign to increase the number of younger members.
• 35th anniversary celebration in 2015 increased awareness of the PCU
and instigated our marketing journey.
• The establishment of a multifaceted and dynamic marketing strategy,
which includes the development of an assertive and impactful social
media presence.
• Opening refurbished offices in 2015, providing a modern and
comfortable environment from which to transact our business.
• The delivery of free financial capability sessions to our common bond
community – that is Pentecostal churches up and down the country –
via the PCU Moneywise workshops.

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• In January 2017, PCU featured on BBC Songs of Praise for the
“groundbreaking” work that we do with respect to financial education
of our young people, through our targeted “Let’s Talk About Money”
Moneywise workshops.
• 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 from 1,542 to 1,850 – up by 20%.
• Share deposit growth from £7.6m to £7.8m – despite two large
corporate withdrawals of over £1m during the same period.
Where we are going to: Strategic objectives 2017-20
Growth is essential for our survival, to provide dividends to members and
to make a reasonable return to reserves. Our loan book/portfolio is our
greatest asset and, in order to increase the loan portfolio, the PCU Board
has decided that the most cost-effective approach will be to increase our
membership. In this regard, there is a particular need to increase
membership of a younger age demographic, who will fully utilise the
services that the PCU can offer.
We also need to ensure that our staple shareholding continues to be
more than sufficient to service the loans; and to expand our membership
geographically to improve the inclusion of Pentecostal faith communities
nationally. This creates a further challenge for the PCU, to ensure that its
services are attractive to younger people and accessible nationally – making
the need for modernisation and the introduction of digital platforms of
equal priority to growth, because digital transformation will have a positive
effect on growth. Along with this, is the need for the PCU economically
to empower its membership and to continuously improve and to
become a ‘leader and influencer’ in both the credit union world and
amongst the common bond community.
2017-20 will be a period of great change and transformation, in order to
achieve this vision and mission. We are putting in place the processes to
undergo this change and to meet our ambitions. In this regard, the new
strategic objectives of Growth, Transformation and Leadership will not
be surprising. We have demonstrated that our business plan is the
central engine of operations at the PCU – it is the living and continually
evolving tool that drives our business. We will continue our vigorous
management of this strategy to ensure that we continue to deliver our
customary excellent levels of achievement and success.
For more information, please see our business plan, which will be available
in summary format on the new website. You can also request a copy
from the office.
Highlights from the year
PCU ranked in top 10 credit unions
In January 2017, the PCU was independently ranked by Advisory HQ, as
being amongst the top 10 credit unions in London. The global website,
which specialises in ranking financial firms, products and services for
consumers, chose the PCU for a variety of reasons. The site’s researchers
said they were particularly impressed by:
• our membership referral system, which offers a £50 credit for referring
five new members – they saw it as “an excellent way to strengthen the
community”

• the way we promote the saving habit and use the savings as a “pool
of resources for members when they need financing”
• our great loan options and sympathetic approach to applications
• our online account management system, and
• our offer of environmentally friendly electronic statements.
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 all
customers who use our new member and loan services each month. Acuity
provide us with high-quality reports, complete with their independent
and impartial analysis. These reports help us to improve our services and
engage better with our members. They give us better information about
what customers want and what it takes for them to be satisfied with our
service. They also report back on how they found our performance and
make suggestions for improvement.
We began the process in October 2016 and the evaluation after a year
shows that 100% of participants to the survey would use our services
again and 93% would recommend us to family and friends. This latter
figure determines our Net Promoter Score – which is a customer loyalty
metric that gauges the level of customer loyalty attained through our
Customer Relationship Management (CRM) approaches. It shows that
93% of our most recent customers are determined to be PCU ‘Promoters’ –
considered likely to exhibit value-creating behaviours, such as buying more,
remaining customers for longer, and making more positive referrals to
other potential customers.
Investor in People Bronze Award
We reported to you last year that we had attained the Investor in People
Bronze Award. To be recognised as an Investor in People, we had to
show that we lead our staff well, offer them the right support and give
them the chance to improve their skills and our organisation. But IIP is
not only about the staff, but about the health of the organisation as a
whole. The independent assessor commented:
“... with a supportive new Board, highly committed people, and
government promoting and funding a credit union initiative, the
organisation is in a strong position to expand. There are some
significant challenges, however these have been recognised.
Notably, there is a great deal of knowledge, experience, passion
and motivation in the organisation. Key strengths include:
• A highly knowledgeable and dedicated CEO
• Highly knowledgeable and active Board
• Committed people
• A culture of continuous learning
• The values are lived”
We implemented a programme to make the changes recommended for
improvement. The improvement plan was overseen by our Remuneration
Committee and was completed by September 2017.
A recent review by the IIP assessor has confirmed that we are ready, and
in her view able, to achieve the Silver award of the 6th Generation of IIP
by April 2019.
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Moneywise workshops
We reported last year on the success of our Moneywise workshops. 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 that they should 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 gone beyond just our members and we provide this
service to our common bond community generally – that is, the
Pentecostal Faith community – and we have achieved this through a series
of ‘road shows’ across the country.
We strongly believe that, in developing the financial acumen of our
membership and our congregations, we are building the economic
health and wellbeing of our churches and communities. It is important
to note that the delivery of Moneywise workshops has contributed
significantly to the level of increase in membership. The workshops are
the second highest source of membership for 2016-17. We are currently
developing a new generation of workshops that have a focus on
entrepreneurship. We are planning to deliver the Moneywise workshops
in-house, as well as in the community, within the next few months.
Member development
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 have 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 Romeo Effs. Based at the fabulous meeting facilities at
Balham Seventh Day Adventist Church, 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 learning how to be safe on line
• being inspired by young role-model entrepreneur mentors and visiting
Viacom, which hosts Nickelodeon, Channel 5 and BET TV amongst
others, and meeting senior executives who shared their own
leadership stories and encouraged our young people to achieve their
own ambitions
• a visit to the International Slavery Museum in Liverpool, where our
teens 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, ‘Song for a Cause’ category. We didn’t win, but the teens 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. The PCU
officially partnered with NTA last December in their long-established
programme to deliver food hampers to people in need in Wandsworth at
Christmas. The New Testament Assembly has delivered an impressive
2,914 hampers in the past eight years – 660 this Christmas alone. The
project was initially started by Amy Rose Powell MBE in 2008. Our young
people spent a busy Saturday in December helping NTA church members
with shopping, packing and the distribution of this year’s hampers. Most
went to single parents, pensioners and households on a low income –
whatever their religious persuasion or ethnicity.
We see this as an essential local social service, which we are pleased to
support. The NTA hamper team were very impressed our youngsters.
Bishop Delroy Powell said: “Your partnering with NTA...has made a
difference in the lives of hundreds of some of the most needy people in
our community... this Christmas.... Well done for your vision to include
the young emerging leaders... in embracing their social responsibility. I get
the sense that we are seeing future champions, who will go on to make a
significant mark in society in time to come.’’
The YSB are currently undergoing a programme developed especially for
them by The Cultivate Cloud education company. The Cultivate Cloud
(The CC) is a multi-faceted educational company that has the vision:
“to cultivate young students by empowering them to become well-
informed, influential and successful individuals, and to help students
reach their targeted career industry, using a personalised approach.”
They will work with our young people by empowering them to be well-
informed, successful and influential in their chosen career paths, to be:
• Powerful Leaders – taking dominion in their targeted career
• Wealth Creators – making their own money and being independent
of employment, but creating employment for themselves and others
• Multi Potentialite – not set in one area as society promotes in
specialising, but do all things with excellence.
20

Moneywise Business Development Programme
Research suggests that a community’s generational economic
empowerment is linked to its entrepreneurial success. Therefore, if we
are serious about empowering our communities, increasing our wealth
and providing jobs, we must advance and strengthen our businesses.
The Pentecostal faith community is brimming with entrepreneurial spirit
and flair, and the PCU is committed to encouraging and championing
the development of this great potential. For this reason, in July 2017, the
PCU launched its first business development programme for those of our
members who are either considering opening a business, have recently
opened a business, or who are already business owners but need help
and/or support in developing their business. Steeped in biblical principles,
the PCU Moneywise Business Development Programme helps participant
members to attain:
• 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 Kingdom
entrepreneurship.
The programme comprises two elements – 11 workshop tutorial sessions
and follow-on mentoring and support for up to one year to ensure that
business ideas are bought to fruition.
The programme facilitator is Claudine Reid from PJ’s Community Services,
and the first year has been highly successful. We are in the process now
of developing the programme for the second cohort, due to start in
Summer 2018.
Solomon’s Room
Students on the PCU’s Moneywise Business Development Programme
got the chance to pitch their business ideas at our ‘Solomon’s Room’,
Dragon’s-Den style event on 30 January 2018. More than 100 church
leaders, community influencers and Christian business owners joined us
for the evening, which took place at The Royal Society in London, SW1.
We named our event ‘Solomon’s Room’ after King Solomon – for us, the
ultimate Moneywise entrepreneur. As with all our activities, our business
development programme is grounded in biblical principles.
On the night, we were delighted to welcome four highly successful
business owners as our ‘Solomons’: Michael Petrie of Cloudstream,
Antonia Burrell of Antonia Burrell Holistic Skincare, Reggie Cole of Buy2
21

Let Cars and Patrick Reid of PJ’s Community Services. All our students –
Tanya Aquaah, Freddie Brown, Glynis Brewster-Nathan, Andrew and
Shireen Morrison, and Sascha Layne – won promises of mentoring and
business development support. The evening was hosted by our course
teacher, businesswoman Claudine Reid MBE. Guest speakers included
Bishop Wayne Malcolm (also known as ‘The Business Bishop’) and
businessman Levi Roots, owner of the UK’s Reggae Reggae sauce brand.
This was an important event for us, because it launched our business
plan objective of promoting entrepreneurship and business ownership as
a way to support the socioeconomic development of our communities in
the Pentecostal church.
22
Digital transformation
Central to the growth and development ambitions of the Pentecostal
Credit Union (PCU) is the launch of digitally accessible services for members,
which will enhance the customer journey of members and reduce the
number of manually initiated procedures by staff. We are embracing the
digital revolution with services you can access via your laptop or
Smartphone. Within the next few months, we will be launching a series
of technological improvements to our service delivery, which will include:
• a PCU debit card for making purchases at home, abroad or online –
for both individual and corporate members
• a new interactive website to improve the way you manage your
account online
• transaction banking, allowing you to make and receive payments
from third parties – great news for our corporate and business owner
members
• a mobile app so that you can access your account via your Smartphone.

Concluding comments
We trust that we have set out for you our achievements thus far and our
vision and objectives for the future. To summarise: 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 need to demonstrate that 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. We need to exploit the fact
that we are a Pentecostal faith-based finance house, with a powerfully
rich and compelling history relevant to our common bond community,
and with the great potential for growth to service the financial needs of
our community. Digital enablement and excellent customer service,
including the flexible and personal approach that PCU is so good at, are
crucial elements in this journey, as well as the fact that we can demonstrate
that we are a well-managed business and the most financially viable
faith-based credit union in the UK. 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, our Chief
Executive; and Lauren, our Loans and Business Officer, who 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
Chona Labor: Vice Chair
Patricia Toussainte: Secretary
Michael Mathura
Lorna Lynch
Verona Richards
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.
23

24
Loans report
1 October 2016 to 30 September 2017
Month Loans granted (£) Total (£)
October 2016 38,500 38,500
November 2016 70,462 108,962
December 2016 116,950 225,912
January 2017 63,750 289,662
February 2017 156,050 445,712
March 2017 305,438 751,150
April 2017 31,810 782,960
May 2017 167,050 950,010
June 2017 64,000 1,014,010
July 2017 37,960 1,051,970
August 2017 115,400 1,167,370
September 2017 122,080 1,289,450
TOTAL 1,289,450 1,289,450

25
Audit Committee report to the AGM
1 October 2016 to 30 September 2017
Introduction
This report is the Audit Committee Report to the members at the AGM
2018. The purpose is three-fold:
• for discussion – results of internal audits during 2016-17 and lessons
• for information – the 2017-18 internal audit schedule, and
• for information – directors’ attendance record for the year 2016-17.
The result of internal audits during
2016-17
The Audit Committee, through the outsourced internal audit function,
scrutinised 15 areas of the PCU’s operations. The audit focus was in line
with the annual audit schedule the members approved at the 2017 AGM.
The internal auditor is a company called Leroy Reid and Company Limited.
They assessed the PCU and scored the organisation’s performance
against the policies and procedures in use and to some extent good
practice in the industry. The PCU can achieve one of four ratings (which
are illustrated in Appendix 2).
Table 1 below summarises the assessment ratings the PCU achieved over
the financial year 2016-17.
TABLE 1: Dashboard of internal audit assessments for 2016-17
Audit focus Period Assessment
1. Loans and lending process Q1 Substantial assurance
2. Risk assessment and management Q1 Substantial assurance
3. Single customer view Q1 Reasonable assurance
4. Business Plan implementation Q2 Substantial assurance
6. Segregation of duties Q2 Substantial assurance
7. Provisioning Q2 Substantial assurance
9. Conduct of directors not covered by
SMF
Q3 Substantial assurance
10. Marketing and membership Q3 Reasonable assurance
11. Treasury management Q3 Substantial assurance
12. Business Plan implementation Q4 Substantial assurance
14. Digital transformation Q4 Reasonable assurance
15. Governance – leadership strategy Q4 Substantial assurance

26
Key lessons and emerging trends from
internal audits
Risk management
PCU’s Board is tasked with setting the organisation’s risk appetite and
ensuring that the framework of governance, risk management and control
is in place to manage risk within this. The Audit Committee is committed
to auditing how management and the Board are addressing risks so that
members’ interests are safeguarded, and the long-term success and
resilience of the PCU is sustained. The Audit Committee recommended
the Board review the risk categories in light of digitalisation.
Return on investments
We reviewed two new and critical areas: marketing and business plan
implementation. As a result, the Board have agreed to look at the way
they measure the impact of marketing. For example, on loan take up,
having invested in social media and workshops for the past two years
and seen growth in new members.
The PCU has learned a lot about marketing and targeting key groups for
the long-term future of the business and has in the process significantly
enhanced the PCU’s reputation.
The extent to which the Audit Committee recommendations
have been implemented
As we go into our fifth year of producing quarterly Audit Committee
Reports (the first one was in May 2014), I thought it opportune for the
Board to consider: “What do we do with the feedback we get from the
Audit Committee quarterly reports received in 2016-17?” I hope to get a
report in Q3 of 2017-18.
Consistent performance
Over the past three years, the PCU has achieved substantial assurance
consistently in many areas. These include, governance, lending, treasury
management and business plan implementation. Appendix 1 shows the
audit ratings for the periods 2014-15, 2015-16 and 2016-17.
About the Board
There has been a year-on-year drop in attendance at Board meetings,
from 93% in 2014-15 to 80% in 2015-16 to 75% in 2016-17. There
have been personal issues such as a marriage, sickness and bereavement.
The Chair has noted the trend in attendance.
I researched recently, how do you know a Board is effective? According to
a 2015 Global Survey conducted by McKinsey, the boards that are most
effective and well-rounded also have the strongest board dynamics,
characterised by openness, trust and collaboration with senior managers
and board of directors. Trust, collaboration and continuously learning.
This Board of Directors has these qualities. This Board is also aware of its
strengths, areas for improvement, opportunities and threats. Where
necessary, they are contracting-in specific capabilities.

27
Proposed audit plan for 2017-18
Each budget year, the Audit Committee sets out the areas of focus,
together with the Chair of the Board and the CEO. This year, we consider
the challenges for the PCU in the near and long-term future, members’
feedback, lessons learned from previous audits, new developments in the
credit union sector and responses to a structured questionnaire from
the Chair, CEO and Deputy Chair.
The output of the formal process is the proposed schedule of internal
audits for 2017-18, which is set out in figure 1 below.
Figure 1: Proposed schedule of interal audits for 2017-18
Area Q1 Q2 Q3 Q4
1. Loans – including corporate loans P
2. Marketing and membership P
3. Treating customers fairly P
4. Single customer view P
5. Customer feedback P
6. Digital transformation P
7. Business plan implementation, MI
and impacts
P
9. Provisioning P
10. Segregation of duties P
11. Conduct of directors P
12. Marketing and membership P
13. Risk identification, management
and control
P
15. Business plan implementation,
MI and impacts
P
16. Governance and impact P
18. Treasury management P
19. Debt recovery P
Key
Quarter 1: October to December 2017. Quarter 2: January to March 2018.
Quarter 3: April to June 2018. Quarter 4: July to September 2018.
Conclusion
The Audit Committee has a good professional relationship with the
Board. I hope you, the members, are satisfied with our report.
Ann Waugh
Audit Committee Chair
March 2018

28
Appendix 2: Internal auditor assessment 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.
Appendix 1: Trends in internal audit assessments over a three-year period (2014-15 to 2016-17)
Audit focus 2014-15 assessment 2015-16 assessment 2016-17 assessment
1. Loans and lending process – Q1 Reasonable Substantial assurance Substantial assurance
2. Risk assessment – Q1 Not reviewed Reasonable assurance Substantial assurance
3. Treating customers fairly – Q1 Not reviewed Reasonable assurance Not reviewed
4. Single customer view – Q1 Not reviewed Not reviewed Reasonable assurance
5. Segregation of duties – Q1 Not reviewed Reasonable assurance Not reviewed
6. Procurement – Q1 Substantial assurance Not reviewed Not reviewed
7. Business plan implementation – Q2 Not reviewed Reasonable assurance Substantial assurance
8. Lending process – Q2 Substantial assurance Substantial assurance Substantial assurance
9. Marketing – Q2 Not reviewed Reasonable assurance Reasonable assurance
(Q3)
10. Provisioning – Q2 Not reviewed Substantial assurance Substantial assurance
11. Segregation of duties – Q2 Not reviewed Not reviewed Substantial assurance
12. Finance and treasury – Q2 Reasonable assurance Not reviewed Not reviewed
13. Reconciliation and reviews – Q2 Reasonable assurance Not reviewed Not reviewed
14. Governance and compliance – Q2 Substantial assurance Not reviewed Not reviewed
15. Lending process – Q3 Not reviewed Substantial assurance Substantial assurance
16. Treasury management – Q3 Not reviewed Substantial assurance Substantial assurance
17. Membership – Q3 Not reviewed Substantial assurance Reasonable assurance
18. Conduct of directors not covered by
SMF – Q3
Not reviewed Not reviewed Substantial assurance
19. Marketing – Q3 Reasonable assurance Not reviewed Not reviewed
20. Capital investments – Q3 Substantial assurance Not reviewed Not reviewed
21. Business plan implementation – Q4 Not reviewed Substantial assurance Substantial assurance
22. Lending process – Q4 Substantial assurance Substantial assurance
23. Marketing – Q4 Not reviewed Substantial assurance Not reviewed
24. Digital transformation (post-
withdrawal from CUEP) – Q4
Not reviewed Not reviewed Reasonable assurance
25. Governance, leadership strategy –
Q4
Reasonable assurance Not reviewed Substantial assurance
26. Member information – Q4 Reasonable assurance Not reviewed Not reviewed
27. High-level review of the financial
controls arrangements – July 2014
Reasonable assurance Not reviewed Not reviewed

29
PENTECOSTAL CREDIT UNION
LIMITED
DIRECTORS' REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2017
FSA REGISTRATION NUMBER
213242
COMPANY NUMBER
IP00006C

PENTECOSTAL CREDIT UNION LIMITED
FSA REGISTRATION NUMBER 213242
COMPANY NUMBER IP00006C
Chief Executive Officer Mr S Bowes
Directors Mr G L Laniyan Chairman
Mr C M Labor
Mr M Mathura MLRO
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
FSA requirement Version 2 credit union
FSA 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
30

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
Notes to the financial statements 11 - 21
31

32
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2017
Page 1
The directors present their report and the financial statements for the year ended 30 September
2017.
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.
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.

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
33

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 2017 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 2017
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.
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.
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.
34

...................continued
Page 4
Other information
The other information comprises the information included in the annual report,33 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.
35

...................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.
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
36

REVENUE ACCOUNT
Page 6
2017 2016
£ £ £ £
Income
Entrance fees 740 735
Income from loans to members 343,641 340,026
Interest received on investments 112,156 109,656
Sundry income 2,601 1,996
Expansion project income 104 27,707
Total income for the year 459,242 480,120
Administrative expenses
Wages and salaries 68,068 66,539
Employer's NI contributions 4,414 4,007
Staff pension costs 607 -
Administration expenses 98,443 99,023
Data processing expenses 6,588 6,588
Fidelity bond insurance 3,931 3,875
Consultancy fees - 8,460
FCA fees 3,404 3,550
Auditors remuneration 9,149 9,832
Other legal and professional 71,610 70,933
Affiliation fees 2,469 1,949
Bank charges 1,311 766
Investment management charges 9,148 5,987
Bad debt provision 1,373 )(38,606
General expenses 1,078 73
PCU 35th anniversary celebrations - 3,610
Depreciation of assets 15,374 16,887
Profits/losses on disposal of investments 3,728 2,566
Revaluation movement on investments 44,269 4,239
Total expenditure for the year )(344,964 )(270,278
Surplus/ (Deficit) for the year before taxation 114,278 209,842
Taxation )(22,596 )(21,931
Surplus/ (Deficit) for year before appropriations 91,682 187,911
37

REVENUE ACCOUNT
Page 7
Appropriations:
Revenue reserve 91,682 187,911
Dividend )(68,312 )(104,692
Total applied 23,370 83,219
There are no recognised gains or losses other than those included above.
All figures included in the revenue account relate to continuing activities.
38

BALANCE SHEET
AS AT 30 SEPTEMBER 2017
The notes on pages 11 to 21 form an integral part of these financial statements.
Page 8
2017 2016
Notes £ £ £ £
Fixed assets
Tangible assets 6 558,519 567,701
Investments 7 1,518,786 1,520,065
2,077,305 2,087,766
Members loans 8 5,371,803 5,041,221
Less: provision for underperforming loans )(904,157 )(901,900
4,467,646 4,139,321
6,544,951 6,227,087
Current assets
Prepayments and accrued income - 6,274
Investments 9 3,457,438 2,749,368
Cash at bank and in hand 10 92,422 364,480
3,549,860 3,120,122
Total current assets 3,549,860 3,120,122
Total assets 10,094,811 9,347,209
Liabilities
Subscribed share capital
Ordinary members shares 12 7,696,376 6,974,429
Junior members shares 12 123,824 124,621
Hold shares 12 190 190
7,820,390 7,099,240
Other payables 11 39,792 36,710
Revaluation reserve 297,124 297,124
Social and educational reserve 115,409 115,409
Revenue reserve 541,502 518,132
General reserve 1,280,594 1,280,594
Total liabilities 10,094,811 9,347,209
39

BALANCE SHEET
AS AT 30 SEPTEMBER 2017
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 V Richards - Director
40

STATEMENT OF CHANGES IN RETAINED EARNINGS
Page 10
Revaluation General Revenue Social and
reserve reserve reserve educational Total
£ £ £ £ £
At 1 October 2015 297,124 1,280,594 434,913 115,409 2,128,040
Dividends paid - - )(104,692 - )(104,692
Appropriation of surplus - - 187,911 - 187,911
At 30 September 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
41

NOTES TO THE FINANCIAL STATEMENTS
Page 11
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. 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 which for the
year ended 19.50% (2016: 20.00%).
1.4. 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.
1.5. 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.
42

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Page 12
1.6. 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.
1.7. 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.
1.8. 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.
1.9. 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.
1.10. Juvenile depositors
Juvenile transactions are included within the financial statements unless specially shown
otherwise.
1.11. 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.
43

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Page 13
2. Dividends paid during the period 2017 2016
£ £
Dividends paid during the year 68,312 104,692
Dividend rate:
Balances less than £10,000 1.0% 1.5%
Balances greater than £10,000 1.0% 1.5%
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 2017 2016
The average monthly numbers of employees
(including the directors) during the year were:
Office staff 2 2
Employment costs 2017 2016
£ £
Wages and salaries 68,068 66,539
Social security costs 4,414 4,007
Pension costs 607 -
73,089 70,546
44

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Page 14
4. Auditors' remuneration
2017 2016
£ £
External auditors' remuneration - audit of the financial statements 5,904 6,084
Internal auditors' remuneration - internal audit services 3,245 3,748
9,149 9,832
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 2017 2016
£ £
Current tax
UK corporation tax 22,596 21,931
Factors affecting tax charge for period
The tax assessed for the period is higher than the standard rate of corporation tax in the UK
(19.50%). The differences are explained below:
2017 2016
£ £
Surplus before taxation 114,278 209,842
Surplus before taxation multiplied by standard rate of corporation
tax in the UK of 19.50% (2016: 20.00%) 22,284 41,968
Effects of:
Expenses not deductible for tax purposes 727 513
Non-taxable surplus/(deficit) on transactions with members )(415 )(20,550
Current tax charge for period 22,596 21,931
45

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Page 15
Land and Fixtures,
6. Tangible fixed assets buildings fittings
freehold equipment Total
£ £ £
Cost
At 1 October 2016 684,579 51,866 736,445
Additions 6,192 - 6,192
At 30 September 2017 690,771 51,866 742,637
Depreciation
At 1 October 2016 133,820 34,924 168,744
Charge for the year 11,139 4,235 15,374
At 30 September 2017 144,959 39,159 184,118
Net book values
At 30 September 2017 545,812 12,707 558,519
At 30 September 2016 550,759 16,942 567,701
7. Fixed asset investments Listed
investments Total
£ £
Cost/valuation
At 1 October 2016 1,520,065 1,520,065
Additions 265,718 265,718
Disposals )(222,728 )(222,728
Revaluations )(44,269 )(44,269
At 30 September 2017 1,518,786 1,518,786
Net book values
At 30 September 2017 1,518,786 1,518,786
At 30 September 2016 1,520,065 1,520,065
Historical cost at 30 September 2017 1,534,053
46

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Page 16
8. Members loans 2017 2016
£ £
At 1 October 2016 5,041,221 4,508,310
Repaid )(1,302,510 )(1,458,915
Granted 1,289,451 1,651,800
Interest charged 343,641 340,026
Gross loans and advances to members 5,371,803 5,041,221
Provision for underperforming loans )(904,157 )(901,900
At 30 September 2017 4,467,646 4,139,321
9. Current asset investments 2017 2016
£ £
Cash held in investments 3,457,438 2,749,368
10. Cash and cash equivalents 2017 2016
£ £
Cash at bank and in hand 92,422 364,480
11. Creditors: amounts falling due 2017 2016
within one year £ £
Trade creditors 17,196 14,779
Corporation tax 22,596 21,931
39,792 36,710
47

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Page 17
12. Subscribed capital - financial liabilities 2017 2016
(including Juniors) £ £
Balance brought forward from last year 7,099,240 7,392,759
Shares saved and loans repaid 2,073,245 1,314,301
Dividends paid 68,312 104,692
Shares withdrawn )(1,420,407 )(1,712,512
7,820,390 7,099,240
Analysed as:
Ordinary members shares 7,696,376 6,974,429
Hold shares 190 190
Junior members shares 123,824 124,621
7,820,390 7,099,240
48

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Page 18
13. 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.
49

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Page 19
14. Interest Rate Disclosure
The following table shows the average interest rates applicable to relevant financial
assets and financial liabilities.
2017 2016
Average Average
interest interest
Amount rate Amount rate
£ % £ %
Financial assets
Loans to members 5,371,803 6.40 5,041,221 6.74
The interest rates applicable to loans to members are fixed and range from 5.0% to
36.0% per annum.
15. 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.
50

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Page 20
16. 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.
2017 2016
£ £
Loans analysis
Not past due 4,832,995 291,168
Up to 3 months past due 100,091 561,036
Between 3 months and 6 months due 57,740 168,747
Between 6 months and 1 year past due 10,705 258,881
Over 1 year past due 370,272 293,103
Total loans 5,371,803 1,572,935
General provision )(479,509 )(498,654
Specific provision )(424,648 )(403,246
Total carrying value 4,467,646 4,637,975
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Page 21
17. 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 (2016: 8 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 £50,087 (2016: £48,099) including Employers National Insurance was paid to
key management personnel in respect of remuneration.
During the year, Pentecostal Credit Union paid £49,149 (2016: £43,995) in consultancy fees
to mother of a member of key management personnel.
52

Hallelujah, you have won the victory
Hallelujah, you have won the victory (lift up your voice and say now)
Hallelujah, you have won it all for me
Death could not hold you down
You are the risen king
Seated in majesty (yeah)
You are the risen king...

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 - 38th Annual General Meeting

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