The Ghana Revenue Authority (GRA) Co-operative Credit Union Limited total income improved by 33.8 per cent from more than GH¢4 million in 2020 to GH¢ 6.04 million as of the financial year ending June 2021.
The improvement was as a result of the innovative efforts from the Union’s leadership, with good signs of liquid investment products.
Dr Godwin Aaron Monyo, Chairman of the Union, speaking at the Union’s 12th annual general meeting in Accra, said market for funds mobilisation continued to shrink very fast because of competition as a result of hyper-expansion in the banking sector.
The programme is on the theme:” Building Sustainable Credit Union to Withstand Disruptions.”
“We maintain that it will require real business acumen, time-tested innovativeness, sound management practices, and quick proactive measures to remain in business,” he said.
He called for financial discipline and judicious allocation and use of funds to cut costs and make savings.
Touching on expenditure, he said cost of funds continued to be the singular dominant constituent of operating expenses, taking about 61 per cent of the total figure.
The total expenditure for the year under review stood at GH¢ 5,440,392.00 compared to GH¢3,570,884.00 in 2020.
The increment, Mr Monyo explained, was due to savings and other investment products that earned returns, which were a cost to the Union and saw good business and attracted encouraging patronage.
The total savings of the Union for the 2021 financial year stood at GH¢ 89,107,563.00, including fixed deposit investment and guaranteed deposit account.
On investment, the Union’s liquid investment leapt from GH¢ 7,496,992.00 in 2020 to GH¢ 11,830,641.00 in 2021, while other investments increased from GH¢ 18,551,663.00 in 2020 to GH¢ 24,421,225.00 in 2021.
The Union’s total assets had grown from GH¢ 135,942,252.00 as at June 30, 2021 to GH¢ 121,450,373.00 as at June 30,2020.
Mr Monyo stated that the Union’s net loan balance stood at GH¢71,768.683.00 in 2021 as against GH¢ 69,597,301.00 in 2020.
He assured members that the check-off system put in place was fully working to guarantee full recovery of loans except in very few exceptional cases.
All the loans granted, he stressed, were covered under the Credit Union Association’s operated Loan Protection Plan.
Mrs Cecilia Mannieson, chairperson, Supervisory Committee of GRA Credit Union, recommended to the incoming board and management team to adequately resource the committee with astute people who have in-depth knowledge of internal control processes and an adequate financial background.
That, she stated, would effectively manage and discharge its functions to support management in its day-to-day decision-making process to protect the investments of shareholders.
DrAmmishaddaiOwusu-Amoah, the Commissioner-General, GRA, encouraged members to develop the habit of savings and be active members of the Union to facilitate the growth of its revenue.
He assured the Union of management support, especially advisory services, in bringing the needed the revenue to the Union’s financial portfolios.
Mr Cyprian T.A.Basing, General Manager, Credit Union Association, Ghana admonished management of the Union to be innovative and develop sustainable strategies to enhance the Union’s revenue.
He charged the leadership to ensure effective corporate governance mechanisms to stand the test of any shocks that might arose in the financial sector. -GNA