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Head office3830, Décarie boulevardMontreal (Quebec) H4A 3J7(514) 482-9366
Approval of Annual ReportApproval of Annual Report
We hereby certify that the 13th Annual Report of Caisse populaire Desjardins de Notre-Dame-de-Grâce fulfills the requirements of the Act respecting financial services cooperatives and that it was duly approved by the Caisse Board of Directors.
Nadia PapineauNadia Papineau--CoutureCouture, president
Jacques Jacques FaguyFaguy, vice-president
LEADER IN A
CHANGING WORLD
3 ATMs
Available 24 hours a day / 7 days a week.
Visit our Web site at:
www.desjardins.com/caissenotredamedegrace
By telephone: 1-800-CAISSES
By Internet: www.desjardins.com
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St-Raymond automated Service Centre5580, Upper Lachine Rd
Monday 9:30 a.m. - 3:00 p.m. Tuesday 9:30 a.m. - 3:00 p.m. Wednesday 9:30 a.m. - 6:30 p.m. Thursday 9:30 a.m. - 6:30 p.m. Friday 9:30 a.m. - 3:00 p.m.
Monday 9:30 a.m. - 2:30 p.m. Tuesday 9:30 a.m. - 2:30 p.m. Wednesday 9:30 a.m. - 2:30 p.m. Thursday 9:30 a.m. - 2:30 p.m. Friday 9:30 a.m. - 2:30 p.m.
Monday 8:30 a.m. - 4:00 p.m. Tuesday 8:30 a.m. - 4:00 p.m. Wednesday 8:30 a.m. - 7:00 p.m. Thursday 8:30 a.m. - 7:00 p.m. Friday 8:30 a.m. - 3:00 p.m.
1. Appointments avai lable outside of regular business hours.
Teller services – Commercial
Teller services
Standard transactions and advisory services (1)
CONTENTS
Notice of meeting 3
Agenda 4
Message from our President 5
Report by the Board of Supervision 6
Message from the General Manager 7
Report on the use of the Community Development Fund 11
Our officers 13
Our team 14
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Auditor’s Report and Verified Financial Statements Appendix
NOTICE OF MEETING
To the Members of Caisse populaire Desjardins de Notre-Dame-de-Grâce
You are hereby convened to the Annual General Meeting of your Caisse, which will take place:
Date: Monday, April 12th, 2010 Time: 6:00 p.m. Location: Meeting room at the Notre-Dame-de-Grâce Church 5333 Notre-Dame-de-Grâce Avenue in Montreal At the Meeting, members will receive information on the Annual Report and the Board of Supervision Report. They will decide on the distribution of annual surplus earnings and on the interest payable on permanent shares and on surplus shares, elect members of the Board of Directors and the Board of Supervision, and deal with any other item on the agenda. Two question periods are also provided: one directed to members of the Board of Directors and the other directed to the Board of Supervision. Elections
Any physical person who is a full member shall be considered eligible, as long as that person has been a member for at least 90 days and is not ineligible under the terms of the Act. Nominations may not be submitted to the General Meeting unless prior written notice, signed by a member and countersigned by the candidate, is given according to the rules defined by the Caisse Internal By-laws and remitted to the Caisse before closing time on April 1st 2010. Notice of Nomination forms are available at the Caisse but their use is not mandatory.
All Members of the Caisse are cordially invited to attend and participate in this General Meeting.
Signed on February 24th, 2010
André Cohen, Secretary
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All members welcome!
AGENDA
1. Welcome and introduction of guests
2. Approval of the agenda
3. Approval of the minutes of the last Annual General Meeting
4. Report by the Board of Directors
5. Report by the Board of Supervision
6. Presentation of financial statements
7. Questions for the Board of Directors
8. Questions for the Board of Supervision
9. Report on the use of the Community Development Fund
10. Information and decision concerning the Community Development Fund
11. Approval of interest rate on permanent shares
12. Approval of interest rate on surplus shares
13. Approval of the allocation of the year’s surplus earnings
14. Elections to the Board of Directors
15. Elections to the Board of Supervision
16. Other business
17. Acknowledgements
18. Closing
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MESSAGE FROM OUR PRESIDENT
Throughout the trying economic times of 2009, the Caisse doubled its efforts to continue offering high quality services and to ensure that your needs were being met. This was made possible thanks to the accessibility of our services and the advisory strength of our personnel.
The key lesson we must draw from this financial crisis is how crucial it is for financial institutions to maintain their capital base, and perhaps even strengthen it. Certainly, Desjardins’ capital ratio remains one of the highest in the Canadian banking industry. In fact, for the first time in its history, the Mouvement Desjardins made the 2009 list of the 50 safest financial institutions in the world. Desjardins ranked 26th according to Global Finance, a New York-based institution that has been comparing the major banks for the last 18 years, most notably on the basis of their assets and on the rating assigned by the large credit-rating agencies. The future looks more promising, and we are now at the beginning of an economic recovery. However, it must be noted that this year, the general lowering of interest rates has had a negative impact on the net interest income of all the network caisses. In the economic context of 2009, the Caisse was prudent and insured rigorous management in all areas. In spite of the highly competitive environment in which the Caisse is evolving, our last fiscal year closed with excellent results, considering the context.
These results give us the flexibility to offer you the best products and services, while continuing our development and playing a determining role in the sustainable development of our community.
As you will see in the Caisse’s cooperative difference report, the caution we showed in regard to capitalization has not affected the Caisse’s ongoing involvement in the community. Through our Community Development Fund, and the donations and sponsorships that we have granted, as well as our personnel’s involvement in the “Donnez au suivant” (Pay it forward) committee, the Caisse contributes permanently to the well-being of our community.
Be assured that cooperative values continue to be the foundation of our mission, as well as the basis of our service offering and of the day-to-day management of our Caisse. Whatever your needs, our entire team dedicates its skills and professionalism and energy in assisting you in the management of your personal finances.
As always, your officers are diligent in adopting a strategic orientation that is both cautious and considerate of the members they represent. Finally, it is together - members, managers, employees and officers - that we will build the future of our Caisse: a caisse engaged in a movement rich in cooperative values, and moving more than ever towards a more accountable, equitable and sustainable world. The Mouvement Desjardins, whose caisses network are the cornerstone, thinks and acts long-term, while bringing people and assets together every day: making money work for people and the community.
Nadia Papineau-Couture President of the Board of Directors
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REPORT BY THE BOARD OF SUPERVISION
The function of the Board of Supervision is to supervise caisse operations with respect to ethics, professional conduct and cooperation, on behalf of the membership, as represented at the General Meeting. This report describes the main activities carried out during the past year.
Supervision of ethics The Board of Supervision ensured that the conduct, decisions and actions of the Caisse, its officers and its employees reflected the values and principles outlined in the Code of Ethics and Professional Conduct. Supervision of professional conduct
The Board of Supervision ensured that the Caisse, its officers and its employees adhered to the rules of conduct outlined in the Code of Ethics and Professional Conduct.
The Board’s monitoring activities in terms of professional conduct focused mainly on three aspects: Conflict of interest situations No conflict of interest situations were noted. Loans granted to restricted parties No loans were granted Non-loan contracts granted to restricted parties under the Code No non-loan contracts were granted. Supervision of cooperation The Board’s monitoring activities in terms of the cooperation aspect focused mainly on the following: Democratic activities
o Mechanisms for receiving members’ comments, member consultations and distribution of information o Officer training and information provided to them
Information and support on cooperative, economic and financial activity
o Means used to support members, particularly young members, new members and members in financial difficulty. o Staff training on the cooperative aspect of Desjardins Group and Caisse activities, specifically targeting new
members to prepare them for their role in providing information and support to members.
Sustainable local development and collaboration with others o Actions carried out to support local development. o Caisse and staff involvement in local organizations. o Transparent, effective and efficient orientations and policies for granting donations and sponsorships as well as
the use of the Community Development Fund (CDF). Permanent and cooperative values and commercial and management practices
o Member satisfaction assessments. o Our continuous improvement process and complaints handling mechanism.
Finally, our Caisse’s main challenges for the coming years are integrity, respect for members’ rights, cooperative, economic and financial education, and community involvement. The Board of Supervision promises to work with the Caisse Board of Directors and its general management to meet these challenges effectively. Denis Lefebvre Chair, Board of Supervision
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MESSAGE FROM THE GENERAL MANAGER
It is my pleasure to present to you the financial report for Caisse populaire Desjardins de Notre-Dame-de-Grâce for the fiscal year ended December 31, 2009.
VOLUME OF BUSINESS UNDER MANAGEMENT Change in Business Volume ($ million)
2005 2006 2007 2008 2009 Investment-savings* 159.7 186.4 201.0 214.2 243.1 Financing* 147.2 166.7 174.3 190.3 200.3 * Balance sheet and Desjardins components (off balance sheet)
Backed by $443,388,300 in business under management, up 9.6% over last year, the Caisse is very well positioned in its market. As part of Desjardins Group, the Caisse has access to a complete range of financial products and services to meet the ever-growing needs of its 8,828 members. Overall, the investment-savings outstanding (caisses and components combined) now represents 54.8% of business volume, while financing products (caisses and components combined) make up 45.2% of total business volume.
NOTES ON THE FINANCIAL STATEMENTS BALANCE SHEET Change in Balance Sheet ($ millions)
2005 2006 2007 2008 2009 Assets 160.5 177.4 183.6 199.9 208.9 Liabilities 147.7 163.5 168.2 184.5 191.6 Holdings 12.8 13.9 15.4 15.5 17.3
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($ m illions) proportion ($ m illions) proportion ($ m illions) (%)
Inve stme nt-savings * 243.1 54.8% 214.2 53.0% 28.9 13.5%
Financing* 200.3 45.2% 190.3 47.0% 10.0 5.3%
Total bus ine ss volum e 443.4 100.0% 404.5 100.0% 38.9 9.6%
2009 2008 Change
* B a lanc e sh eet and De sjar dins co mpo nen ts ( o ff bala nce she et)
The assets of your Caisse grew by $9,019,513 to $208 960 410, representing growth of 4.5% over last year. Caisse liabilities were $191,636,088, representing growth of 3.8%. Borrowings increased by $362,062, or 1.2%, and now total $29,707,356. As at December 31, 2009, your cooperative’s holdings increased by $1,861,975, from $15,462,347 to $17,324,322, an increase of 12.0%. In addition to Caisse equity, holdings are comprised of permanent shares ($2,260,970), surplus shares ($156,028), surplus earnings to be distributed ($657,647) and reserves ($14,132,109). The Caisse has $11,991,626 accumulated in the General Reserve and Appreciation Reserve.
The Caisse has $459,379 in its Stabilization Reserve and $127,359 in its Community Development Fund. Additionally, your Caisse has accumulated a total of $1,553,745 in its Reserve for Member Dividends (RMD). Caisse equity, meanwhile, is in accordance with the 6.75% international capitalization standards for expansion assets and 10.8% standard for risk assets.
2009 2008
($ m illions) ($ m illions ) ($ m illions) (%)
As sets 208.9 199.9 9.0 4.5%
Liabilitie s 191.6 184.5 7.1 3.8%
Holdings 17.3 15.5 1.8 12.0%
Change
STATEMENT OF RESULTS
During the past year, your Caisse generated surplus earnings before fair value, taxes and member dividends of $1,103,717, down by 25.4% compared to the previous year. These surplus earnings were negatively affected by the decrease in interest rates. 2009 2008
($ millions) ($ millions) ($ millions) (%)
Interest income 8.7 10.0 -1.3 -13.1%Interest charges 3.9 4.5 -0.6 -13.8%Net interest income 4.7 5.4 -0.7 -12.6%Provision and losses on loans (recovery)
0.0 0.4 -0.4 -91.0%
Other income 1.7 1.5 0.2 13.9%Other charges 5.3 5.0 0.3 6.1%Surplus earnings before fair value, taxes and member dividends*
1.1 1.5 -0.4 -25.5%
Member dividends** 0.4 0.3 0.1 34.3%
** For 2009, amount recommended to General Meeting for approval by members.
Change
* Surplus earnings include Community Development Fund expense
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Interest income was $8,653,001, a decrease of 13.1% over last year. Interest charges, meanwhile, fell by 13.8%, a difference of $624,536 over the previous year. Losses on loans were $40,823, or 0.2% of the total personal and business loan portfolio. Other income, generated largely from products and services of Desjardins components, was $1,656,620, up 13.9% compared to last year. Other charges also show slight overall growth, representing a variance of $301,168, or 6.1%. Change in Surplus Earnings and Member Dividends ($)
2005 2006 2007 2008 2009
Surplus earnings 2,541,714 2,023,447 2,325,982 1,041,539 1,310,298 Member dividends 825,000 757,000 1,014,182 312,271 419,000
Once again this year, our surplus distribution proposal includes the payment of member dividends totalling $419,000. For the past eleven years, total member dividends were $6.5 million. This year’s distribution, which supports a larger contribution to the reserve, reflects the balanced and responsible approach that has been proposed to all caisses. In view of the current economic and financial context, it is important for your Caisse, and for Desjardins Group as a whole, to strengthen its capitalization. While banks have the option of issuing shares in order to raise their capitalization levels, our cooperative financial group must first ensure the balanced management of surplus earnings.
INVESTMENT FUNDS
Investment funds owned by the caisses enable the Fédération des caisses Desjardins du Québec to coordinate investments in Desjardins Group subsidiaries, as well as in regional investments.
Through their activities, these subsidiaries in turn enable the caisses to provide an extensive range of financial products and services to individuals, groups and businesses.
The following table shows the Caisse’s investment in each of the funds, as well as the year-end yield.
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Shares held as at December 31, 2009 Average yield
Provincial Funds (Dollar amount) (Percentage)
Caisse centrale Desjardins (CCD) 1,776,498 12.71Société de Services des caisses Desjardins (SER) -2,042Desjardins Venture Capital (INV) 135,121 0.78Desjardins Securities (VM) 125,907 34.23Desjardins Trust (FD) 234,790 2.67Desjardins Financial Corporation (RF1) 143,605 5.19Desjardins Financial Corporation (FIN3) 2,978,295 17.25
Regional Funds
FID-MON 37,881 (1.20)FED 3 374 1.85
CONCLUSION
In closing, I would like to thank the entire staff for their constant hard work and adaptability to the many changes that have taken place in our ways of doing business. I would also like to thank the officers for their commitment and availability, and all the members of the Caisse for their confidence and their loyalty to the Caisse and its services.
Lise Drolet General Manager
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REPORT ON THE USE OF THE COMMUNITY DEVELOPMENT FUND
One of the goals of the Caisse is to contribute to community development and cooperation. To this end, the Act Respecting Financial Cooperatives allows caisses to set up and maintain a Community Development Fund from its surplus earnings. The funds allocated to the Community Development Fund must support the socioeconomic development of communities, cooperation, mutual assistance, democratic and associative life as well as cooperative, economic and financial education. All projects submitted in 2009 were carefully assessed by the members of the Community Development Fund, made of 5 Caisse officers who thereafter recommended the Board of Directors the approval of the following projects:
Les ateliers Boîte à lunch In this program, more than 180 young people from 11 primary and secondary schools in Notre-Dame-de-Grâce participate in educational workshops in which they prepare the contents of a healthy lunchbox. Families also have the opportunity to meet in neighbourhood parks and community centres to prepare and share nutritious meals. Improving the nutritional health of young people, enhancing self-esteem and autonomy, and supporting parents as first educators and people in charge of the well-being of their children are just some of the objectives of this program. Action communiterre The mission of this organization is environmental education, urban agriculture, and food safety. The Caisse financed the intergenerational project “Ensemble, du jardin à l’assiette” (From the Garden to your Plate), which brings together young people and the elderly to cook and share nutritious meals. Numerous program objectives include reducing the isolation of elderly people, facilitating the transmission of culinary and cultural knowledge from one generation to another, and learning to develop life skills that lead to independence. A Mutual Assistance Fund (P.E.S.O. or Prêt d’Entraide du Sud-Ouest) In partnership with the “Association coopérative d’économie familiale (ACEF) du Sud-Ouest de Montréal”, our Caisse, in cooperation with eight other Caisses, is actively involved in the Desjardins Mutual Assistance Fund. The Fund’s objective is to help people in financial difficulties with consulting services to help them manage their budget and, if needed, a loan to tide them over. Those targeted have no access to conventional credit based on the usual criteria. In this way, the creation of the Fund has allowed us to help many people in our community who have had financial difficulties. Le programme pilote de soutien à l’étude This pilot program, in collaboration with the Club de judo Shidokan and l’école secondaire Saint-Luc, is offering 15 young people a cooperative experience of study support by practicing judo. Ten (10) young people from a challenging area are paired with five (5) young, competition-level judokas. This program is based on the values and practices of cooperation, coaching, and mentoring, and is intended as a complement to the educational development of the students.
L’école Les-Enfants-du-Monde The Caisse has also supported l’école Les-Enfants-du-Monde with the purchase of tetherball equipment, contributing to the revitalization of the schoolyard.
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The Mosaik Family Resource Centre The mission of this organization is to foster links between families in an environment of mutual support and respect so they can reaffirm their role in society and enrich themselves to have a better quality of life. Women aware The mission of this organization is to support and educate women and the general public about domestic violence and its impact on the families that are its victims as well as its possible effects on society. The P.A.C.T.E. program (Programme d’Actions Communautaires, Témoin de notre Engagement) This new program is a way to participate in the community life of the Caisse with a gesture of cooperation in support of our community. Since being a member of the Caisse means being co-owner, each new member is called to exercise his or her decision-making power by choosing from among three suggested organizations the one to which he or she would like to donate $5. This sum is deducted from the Community Development Fund and is delivered, in the name of the new member, to the chosen organization. In 2009, our Caisse invested $56,368 in Community Development Fund projects. Over the past eight years, during Annual General Meetings, members decided to grant an amount of $360,000 to the Community Development Fund. On December 31 2009, the available balance was $127,359. To meet the increasing demands, members of the Board of Directors will recommend, during the approval of allocations of the year’s surplus earnings, to allocate an additional amount of $50,000 to the Community Development Fund. In addition, our Caisse has granted $15,000 in donations and sponsorships to support various projects, among which feature:
-Association de Bocce St-Raymond -Fondation de l’école Notre-Dame-de-Grâce -Corporation de développement économique communautaire (CDEC CDN/NDG) : “I’m active in NDG” and “Recognizing Movers & Shakers in CDN/NDG” -Scout Troop 12 N.D.G. -Société Élizabeth Fry -Centraide -Head & Hands -Festi-Faim -Fondation Desjardins
We also wish to acknowledge the commitment of our employees who, with the creation of the “Donnez au suivant” (Pay It Forward) committee have contributed to causes that are near to their hearts, such as the “Fondation pour la promotion de la pédiatrie sociale”, the fight against breast cancer, and the distribution of Christmas baskets in collaboration with the elderly from the Résidence de la Providence.
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In closing, we salute all the members of the community who give their time so generously and put their hearts into carrying out projects that contribute to the social and economic development of our community.
OUR OFFICERS
BOARD OF DIRECTORS
Name Capacity Occupation Term ending
Nadia Papineau-Couture (*) President Certified marketing research professional
12-31-2009
Jacques Faguy Vice-president Computer technician 12-31-2011
André Cohen Secretary Administrative Director 12-31-2010
Charlotte Barrette-Brisson Director Translator 12-31-2010
Véronique Hardy Director Certified Management Accountant
12-31-2011
Yves Larivée (*) Director Notary 12-31-2009
Line Martin Director Notary 12-31-2011
Mark A. Potechin Director Lawyer 12-31-2010
Miriam Torres (*) Director Consultant 12-31-2009
BOARD OF SUPERVISION
Name Capacity Occupation Term ending
Denis Lefebvre Chair Retired 12-31-2010
Solange Carbonneau (*) Secretary Retired 12-31-2009
André Daoust Member Independent translator 12-31-2011
Florianne Martel Member Retired 12-31-2011
Claude Saint-Germain Member Retired 12-31-2010
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(*) Re-eligible outgoing officers
OUR TEAM Management
Lise Drolet General Manager
Sylvie Blanchette Manager, Asset Management and services to individuals
Christiane Labelle Administrative Assistant
Asset Management Team
Sylvie Blanchette, Manager
Johanne Levac Financial Planner
Diane Rolland Financial Planner
Annie Robert Advisor, Business Development
Irena Cane Officer, Financial Services
Naïma Zindine Officer, Financial Services
Investment and Financing Team
Ginette R. Cousineau, Coordinator
Our advisors Our officers Nicole Avital Personal Finance Celia Carias Garcia Financial Services
Samia Ben Hassine (*) Personal Finance Johanne Ouellette Financial Services
Marie-Pier Bousquet Personal Finance Chantal Giroux Operations Support
Nancy Charland (*) Personal Finance
Janie Leclerc Personal Finance
Nathalie Moroney (*) Personal Finance
Angelica Aldea Member Services
Johane Guimond Member Services
Operations and Assisted Transactions Team
Marc Servant, Coordinator
Diane Vizien Officer, Operations Support Hen Young Jung Officer, Member Services
Diane Bannon Officer, Member Reception Valéria Mulstein Officer, Member Services
Michelle Frick Officer, Telephone Support Michel Pilon Officer, Member Services
Suzanne Capendu (*) Officer, Member Services
Associative Affairs
Sylvie Thibault Officer, Associative Affairs
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(*) Contractual employees