ANNUAL REPORT

2019

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TABLE OF CONTENTS Winners of the 2019 OPPA Credit Union Educational Scholarship Awards 2

2019 Photo Highlights 3

Minutes of the 47th Annual General Meeting 4

Report of the Board of Directors 8

Report of the Chief Executive Officer 9

Report of the Senior Manager, Credit and Risk 10

Audit Committee Report 11

Five Year Operating Highlights 13

Board of Directors 14

Management and Staff 15

Service Awards 16

Management’s Responsibility for Financial Reporting 17 Auditor’s Report and Summary Financial Statements 18

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Ethan HayesLauryn Rogers Kobee Quinn

Riley Bosetti Eric Houghton

financial backup for life.

The strategic direction of the OPPA Credit Union is to give back to the membership

and provide advice in life events. The intent of the Educational Scholarship Award is to

provide funding for the post-secondary educational needs of our members' children

and to increase awareness of OPPA Credit Union services.

2019 Scholarship

WI N N E R S

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2019 PHOTO HIGHLIGHTS

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MINUTES OF THE 47th ANNUAL MEETING

ONTARIO PROVINCIAL POLICE ASSOCIATION CREDIT UNION LIMITED VESPRA HILLS GOLF & COUNTRY CLUB 2694 WILSON DR, MINESING, ONTARIO

APRIL 24, 2019

THE meeting was called to order at 6:35 p.m. by Fred Bertucca. It was confirmed that a quorum was present with 55 members and 13 guests:

• Michael Jones – Jones & O’Connell • Alex Lalonde – DICO • Bob & Liz Arbour – President & Vice President of the OPPVA • Barb McAfee – Long-time Member & Wife of Robert McAfee • Ruth Sokolik – CUMIS • Vicki Jones – Genworth • Carmen Marrier – Local OPPVA Chapter • George Chou – Aviso • Charlotte Porter & Vicki Craig – CGI • Wendy Bradley – CCUA • Randy Tanaka – Level Five Strategic Partners

An official welcome was extended to all in attendance. A moment of silence was held in remembrance of all OPPA Credit Union members who passed away during the last year with a special note regarding the passing of founding member and original CEO Robert McAfee who passed away on August 13, 2018. ADOPTION OF 2018 AGM MINUTES MOTION Moved by David Crane, seconded by Jill Bennett, that the minutes of the 46th

Annual Meeting held on April 25, 2018 be adopted as published in the 2018 Annual Report.

VOTE – 55 FOR CARRIED

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REPORTS AUDITORS’ REPORT The Auditors’ Report for the year 2018 was reviewed by Mike Jones of Jones and O’Connell. MOTION Moved by Karen Zammit, seconded by Pat Downey, that the Auditors’ Report

for 2018 be adopted as presented. VOTE – 55 FOR

CARRIED AUDIT COMMITTEE REPORT MOTION Moved by Casey Thompson, seconded by Sherri deGroot, that the Audit

Committee Report for 2018 be adopted as published in the 2018 Annual Report.

VOTE – 55 FOR

CARRIED BOARD OF DIRECTORS REPORT MOTION Moved by Bob Arbour, seconded by Barb McAfee, that the Report of the

Board of Directors be adopted as published in the 2018 Annual Report.

VOTE – 55 FOR CARRIED

CHIEF EXECUTIVE OFFICER’S REPORT MOTION Moved by Neil Vingerhoets, seconded by Tammy LaloMalec, that the Report

of the Chief Executive Officer be adopted as published in the 2018 Annual Report.

VOTE – 55 FOR CARRIED

REPORT OF THE SENIOR MANAGER, CREDIT AND RISK MOTION Moved by Anita Plewes, seconded by Shannon Antonio, that the Report of the

Senior Manager, Credit and Risk be adopted as published in the 2018 Annual Report.

VOTE – 55 FOR CARRIED

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NEW BUSINESS APPOINTMENT OF AUDITORS MOTION Moved by Andrew Shannon, seconded by Pat Downey, that as per

recommendation of the Audit Committee, we appoint the firm of Tinkham and Associates as auditors for the fiscal year 2019.

VOTE – 55 FOR

CARRIED

ELECTION OF OFFICERS Fred Bertucca called on Neil Vingerhoets to act as Election Chairperson for the election of officers. The three positions expiring at this Annual Meeting (Suzanne Chaddock, Scott Couse and Matthew Lewandowski), were declared vacant. Tanya Hodgin, Chair of the Nominating Committee, brought forth names of the qualified nominees - Matthew Lewandowski, Harold Coffin and Sandy Thomas for the vacant positions. Tanya indicated that Matthew Lewandowski had previously submitted his intent to stand for re-election and that all nominees qualify for the position of Director as outlined in the Credit Union Act, Sections 91 and 92 and has no conflict of interest to declare as per the Credit Union Act, Section 146 (1). Neil Vingerhoets announced that as there were three qualified nominees for the three vacancies and there were no further candidates, Matthew Lewandowski, Harold Coffin and Sandy Thomas were declared elected by acclamation for a three-year term. RECOGNITION AWARDS Bill Whyte recognized Suzanne Chaddock and Scott Couse for their service to the credit union. He noted that Suzanne recently served 2 Terms (6 Years) on the board and had previously been recognized for in 2009 for 3 previous terms for a total of 15 years and that Scott had served for 6 Terms (18 Years). Scott was unable to attend the meeting but had sent some farewell remarks which Fred read to the members and guests. Fred Bertucca announced staff Service Awards for Anita Plewes and Nancy Noel for 5 years of service, Casey Thompson for 20 Years of Service and Karen Zammit for 25 years of service.

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OPEN DISCUSSION An open discussion period was held P. Downey questioned how the Credit Union was able to increase deposits as much as was done last year. B Whyte explained that the Credit Union increased its focus on deposit gathering last year and noted that this trend will continue into this year as well with specials and incentives being offered to encourage investment growth. I. Lawrenson questioned the decrease in annual income over the past 5 years from $407,298 in 2014 to $298,954 last year, 2018. B Whyte explained that with the number of competitors increasing drastically over the past 5-10 years in the financial services industry, margins have been shrinking, which has a direct effect on income. Our 5-year strategic plan allows for this decrease in the margin and looks at other ways for the credit union to increase annual income in order to be less dependent on margins. There was an inquiry from the floor as to whether the credit union has plans in place to focus on growth with new members and with retirees. B Whyte confirmed that yes; those are both areas that the credit union focuses on for membership growth. With recruits we offer some great options to get more and more of them on board right from the beginning. For retirees, the credit union has just invested in some new planning software to assist the Advisor team help their members plan for retirement. A suggestion was made that the Credit Union consider having retirees somehow speak to the recruits about the importance in planning from a place of experience. B Whyte agreed that this would be a great way to help us reach them and that it is worth considering. A draw for door prizes was held. ADJOURNMENT MOTION Moved by Karen Zammit, seconded by Casey Thompson, that the meeting

adjourn at 7:20 p.m. VOTE – 55 FOR

CARRIED

Fred Bertucca Board Chair

Karen Zammit Corporate Secretary

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REPORT OF THE BOARD OF DIRECTORS On behalf of the OPPACU Board of Directors, it is my privilege to present the 2019 Annual

Report of the OPPA Credit Union.

This year represented the first full year under our new CEO Bill Whyte and during this

time, great strides have been taken towards the goals of the 5-year plan. The “new member

focused staffing model” has been adopted, a reduction of expenses, and a methodical

change to the IT structure, has resulted in positive outcomes. We have also modernized

how the OPPA Credit Union Board operates, introducing technology to streamline process,

enabling the focus to be kept at the strategic level.

We introduced 2 new board members who brought with them a wealth of knowledge,

insight and connections to both the OPP and the OPPA.

We continue to strengthen our relationships with the OPP Association, OPP Vets

association and the many detachments/units within the OPP. We are also working towards

expanding our reach to the families of our members.

As always, our thanks to the Credit Union leadership and staff for their hard work in

executing our strategic direction and, more importantly, their commitment to our

members, and flexibility during this transitional year. Their focus as always, remains with

the members and their financial wellness.

As we move further into 2020, I hope that you and your families are able to be safe and

healthy during this pandemic.

I wish you all well.

Fred Bertucca Board Chair

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REPORT OF THE CHIEF EXECUTIVE OFFICER In last year’s report I referenced that 2019 would bring changes and would require dedication and commitment from the employees and board. I am pleased to report 2019 was a successful year in both the necessary changes that were undertaken and the overall growth that was accomplished. For the OPPA Credit Union (OPPACU), balance sheet assets grew by $2,140,050 with total assets under administration increasing to $225,310,053 as of December 31st, 2019.

As planned in 2019 we commenced implementation of our new five-year strategic plan. The plan was considered fundamental to both our immediate and future success. Improving processes, expanding our product and service offerings, leveraging technology and meeting more of our Members’ needs were key components of this key phase of growth.

In regards to processes, progress was made in streamlining many existing processes that in turn increased our staff capacity to meet Member’s needs and inquiries more effectively. Additionally, Management revamped and expanded our product offering to be more competitive and provide appropriate returns for our Members in the areas of lending, deposits and investments. It should be noted that OPPACU had a record year in deposit growth, achieving $12,103,917 in growth while meeting our objectives in both lending and wealth overall. We also launched a new interactive website that allows us to communicate, provide information, and support the processing of transactions for our Members. This is important as we can provide updates and special offers for our Members quickly and effectively. Finally, and most importantly, as it validates our strategic plan, over 400 Members increased their dealing with the credit union and consequently OPPACU became the primary financial institution for more Members in 2019.

Given our record growth in deposits we were able to pay down our outstanding securitization book and reduce our reliance with Canada Mortgage & Housing Corporation in this area. This is a key aspect of our five-year strategic plan as it will allow OPPACU to effectively balance and diversify our mortgage book.

While 2019 established a foundation for our strategic plan, the work accomplished will start to pay dividends immediately, and in 2020 we expect our net income to almost double from the previous year. Increasing our income is critical for the OPPACU as we need to continue to invest in technology, products and services in order to remain competitive for our Members. I would like to thank our Members, all employees, the management team, and the Board of Directors for their commitment, dedication and efforts throughout 2019.

Bill Whyte Chief Executive Officer

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REPORT OF THE SENIOR MANAGER, CREDIT AND RISK In 2019 the OPPA Credit Union continued to meet and satisfy our members borrowing requirements granting $68,362,673.32 in new loans and mortgages. We provided 96 new recruits with funds

needed to attend Ontario Police College and start their careers with the OPP. We provided 160 new mortgages to members, many of whom were purchasing their first home and many others whose

career paths had them transferring to a new location. We continue to follow our fundamental principal of establishing life-long relationships with our members, while we respond to changes

within the financial industry.

The statistics below represent the number of loans for 2019.

Loan Type Number of Loans Loan Value

2019 2019

Personal Loans 65 $1,398,272

Recruit Loans 96 $1,221,715

Personal Lines of Credit 72 $1,412,970

Mortgages 160 $43,454,647

Commercial Mortgages 7 $1,514,043

Bridge Loans 30 $10,630,150

Home Equity Lines of Credit 79 $8,730,877

Totals 509 $68,362,674

Number of loans declined – 43

Delinquent loans over 90 days at December 31, 2019 – 0

To manage credit risk, our loan portfolio is constantly reviewed to ensure that the lending

function is managed within industry standards, and that items such as delinquency and loan

write-offs are kept to a minimum.

In conclusion I would like to recognize our Advisor and Member Solutions teams for their

dedication, hard work and support throughout the year. We remain constant with our

intention to provide financial services for our members while we create a sustainable future

for the credit union.

`

Karen Zammit Senior Manager, Credit and Risk

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AUDIT COMMITTEE REPORT The Audit Committee of the Board of Directors fulfils the responsibilities of the Audit

Committee as set out in the Credit Unions and Caisse Populaire Act (Ontario)(the “Act”) and

conducts its affairs in accordance with the requirements of the Act and its accompanying

regulations. Our Audit Committee consists of three Board appointed members, with the

CEO and Board Chair as ex-officio members.

The Audit Committee’s function is to assist the Board of Directors fulfil its oversight

responsibilities. It does this by reviewing the financial information and reporting processes,

including the risks and controls related to those processes which management and the Board

have established.

The Committee held 5 meetings during 2019 to complete their responsibilities. Key

activities included:

• Serve as the principal communication link between the external auditors and the

Board of Directors and, in particular, review the terms of engagement and scope of

the audit and review the Credit Union’s annual financial statements prior to Board

approval for issuance to members.

• Review the performance of the Internal and External Auditors.

• Monitor the adherence of Directors, Officers, and employees with the Credit

Union’s policies and code of conduct.

• Review outstanding legal issues.

• Review risk management issues.

• Enterprise Risk Management - Ensure that emerging risks are identified, and

mitigation strategies are in place and communicated to the Board of Directors.

• Serve as the Boards liaison with the internal auditor and review the internal audit

mandate, work plans and reports.

• Complete a self-assessment on the effectiveness of the Committee and take the

necessary steps to ensure effectiveness.

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The audited financial statements for the fiscal year ended December 31, 2019 have been

reviewed and the Committee recommends their acceptance and approval by the Board of

Directors. The Audit Committee also recommends the approval of Tinkham and Associates

LLP to perform the annual external audit for 2020.

Based on its findings, the Audit Committee issues reports and makes recommendations to

the Board of Directors or Senior Management, as appropriate, with respect to the matters

outlined above. Appropriate follow up is conducted to ensure that the recommendations are

considered and implemented.

In 2019 the Committee worked closely with Senior Management receiving full cooperation

and support. Management has implemented all Committee recommendations and there are

no matters which the Committee believes should be reported to the members or which are

required to be disclosed pursuant to the Act or the regulations.

Steve Ridout Audit Committee Chair

Committee Members: Steve Ridout, Chair

Tanya Hodgin, Vice Chair

Matt Lewandowski

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FIVE YEAR OPERATING HIGHLIGHTS

27.5 27.5

28.5

27.5 27.5

2015 2016 2017 2018 2019

Staff

77907836

77137759

7634

2015 2016 2017 2018 2019

Voting Members

$188,577,447

$204,673,971

$219,314,000 $223,254,740 $225,310,053

2015 2016 2017 2018 2019

Assets Under Administration

$339,958 $362,406

$261,673 $298,954

$243,546

2015 2016 2017 2018 2019

Net Profit

Total new memberships in 2019 were 374. We

are continuing to review and close inactive

memberships and dormant accounts. Not

included in the annual total are new members

under the age of 18.

Printed copies of complete financial

statements, along with accompanying notes and

all required disclosures are available on request.

Call 1-800-461-4288 or

contactus@oppacu.com

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BOARD OF DIRECTORS 2019-2020

* Term expires at Annual Meeting held in 2021

Date Elected Term Expires

Fred Bertucca, Chair 2008 2020*

John Tod, Vice-Chair 2014 2020*

Steve Ridout, Audit Chair 2006 2021

Matthew Lewandowski, Director 2013 2022

Tanya Hodgin, Director 2014 2020*

Harold Coffin, Director 2019 2022

Sandy Thomas, Director 2019 2022

In Memoriam Our deepest sympathy is extended to the families of the OPPA Credit

Union members who passed away during 2019.

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MANAGEMENT AND STAFF (@ DECEMBER 31, 2019)

CHIEF EXECUTIVE OFFICER Bill Whyte

CHIEF FINANCIAL OFFICER Andrew Shannon

MANAGEMENT Karen Zammit - Director, Credit and Compliance

Shelagh Pepper – Director, Employee Services Sherri-Ann Degroot – Director, Brand & Business Development James Page - Director, Member Experience & Financial Services

Dale Gamble – Supervisor, Member Solutions & Support

FINANCIAL ADVISORS Shannon Antonio Jennifer Collins

Casey Thompson Kasandra Dutton

Stacey Zigah

ADVISOR SUPPORT TEAM Bonnie Elliot

Jolene Hollmann Shelley Jong

MEMBER SOLUTIONS TEAM Carla Kruger

Shawna Cleaveley Rosanne Wyer

Bettyann McKee Peter Caruana*

MEMBER SUPPORT TEAM Danita McKenzie* Samantha Quinn

ACCOUNTING Anita Plewes - Supervisor

Iris Bilokrely - Co-Ordinator, Banking System & Administration Colleen Jacobs - Clearing & Accounting Administrator

MARKETING ASSISTANT – Peter Caruana*

CREDIT & COMPLIANCE ADMINISTRATOR – Nancy Noel

BOARD & COMPLIANCE ADMINISTRATOR – Tammy LaloMalec

DEVELOPMENT & TRAINING OFFICER – Laurie Dennis

* Part-time

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5 Years

Rosanne Wyer Member Solutions

STAFF SERVICE AWARDS

Each year presentations are made to staff recognizing significant milestones in their career with the OPPA Credit Union. We are pleased to present the following awards at the 2019 Annual General Meeting:

Shelley Jong Advisor Support

CONGRATULATIONS!

Shelagh Pepper Director

Employee Services

10 Years

15 Years

Danita McKenzie Member Support

30 Years

Jennifer Collins Financial Advisor

Iris Bilokrely Banking System & Admin Coordinator

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MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying summarized financial statements of OPPA Credit Union Limited and all

the information in this annual report are the responsibility of Management and have been

approved by the Board of Directors.

The financial statements have been prepared by Management in accordance with

International Financial Reporting Standards. When alternative accounting methods exist,

Management has chosen those it deems most appropriate in the circumstances. Financial

statements are not precise since they include certain amounts based on estimates and

judgements. Management has determined such amounts on a reasonable basis in order to

ensure the financial statements are presented fairly, in all material respects. Management

has prepared the financial information presented elsewhere in the annual report and has

ensured that it is consistent with that in the financial statements. OPPA Credit Union

maintains systems of internal accounting and administrative controls of high quality,

consistent with reasonable cost. Such systems are designed to provide reasonable

assurance that the financial information is relevant, reliable and accurate and that the Credit

Union’s assets are appropriately accounted for and adequately safeguarded.

The Board of Directors is responsible for ensuring that Management fulfils its

responsibilities for financial reporting and is ultimately responsible for reviewing and

approving the financial statements. The Board carries out this responsibility principally

through its Audit Committee. The Audit Committee is appointed by the Board. The

Committee meets periodically with Management and the external auditors to discuss

internal controls over the financial reporting process, auditing matters and financial

reporting issues, to satisfy itself that each party is properly discharging its responsibilities

and to review the annual report, the financial statements and the external auditors’ report.

The Committee reports its findings to the Board for consideration when approving the

financial statements for issuance to the owners.

The financial statements have been audited by Tinkham LLP, the external auditors, in

accordance with Canadian generally accepted auditing standards on behalf of the owners.

Tinkham LLP has full and free access to the Audit Committee.

Bill Whyte Chief Executive Officer

Andrew Shannon Chief Operating Officer

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AUDITOR’S REPORT AND SUMMARY FINANCIAL STATEMENTS

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123 Ferris Lane

Barrie ON, L4M 2Y1

Toll Free 800-461-4288 Local 705-726-5656 Fax 705-726-1449

www.oppacu.com

financial backup for life.