Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698834844412.pdf (Trinidad and Tobago)
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DEPOSIT INSURANCE CORPORATION STATEMENT OF NET COMPREHENSIVE INCOME AND DEPOSIT INSURANCE FUND 4.
Notes 2 (i) Income: Interest earned Initial contributions and annual premia Amortisation of discounts on investments Gains on revaluation of investments Gain on disposal of fixed assets Foreign exchange gains Liquidation/receivership fees Other Expenses: Personnel General and administrative Foreign exchange losses Loss on disposal of fixed assets Amortisation of premiums on investments Depreciation on property, plant and equipment 10 11 2(h), 9 Net income Less: Insurance claims (CIB depositors) Net income for the year Fund balance at beginning of year Fund balance at end of year 30 September 2011 $’000 2010 $’000 98,249 103,644 234 - 4 1 15 8 103,056 89,033 220 - 3 - 24 5 202,155 192,341 3,961 2,369 - - 6,013 896 4,391 1,960 4 2 3,548 803 13,239 10,708 188,916 - 181,633 (570) 188,916 1,593,344 181,063 1,412,281 1,782,260 1,593,344 (The accompanying notes form part of these financial statements) 5.
DEPOSIT INSURANCE CORPORATION STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2011 Stated Capital $’000 Deposit Insurance Fund $’000 Total $’000 Balance as at 1 October 2009 1,000 1,412,281 1,413,281 Net income for the year - 181,063 181,063 Balance as at 1 October 2010 1,000 1,593,344 1,594,344 Net income for the year - 188,916 188,916 Balance as at 30 September 2011 1,000 1,782,260 1,783,260 (The accompanying notes form part of these financial statements) DEPOSIT INSURANCE CORPORATION STATEMENT OF CASH FLOWS 6.
Cash Flows from Operating Activities: Net income Adjustments for: Amortisation of premiums on investments Depreciation Foreign exchange (gains) / losses Gain on disposal of fixed assets Loss on disposal of fixed assets Amortisation of discounts on investments 30 September 2011 $’000 2010 $’000 188,916 181,633 6,013 896 (1) (4) - (234) 3,548 803 4 (3) 2 (220) Operating surplus before working capital changes: 195,586 185,767 Net change in liquidation advances recoverable Net change in accounts receivable Net change in security deposit Net change in current balance due to Central Bank Net change in accounts payable - (851) (5) (1) - (3) 5,670 (6) (52) (35) Cash provided by operating activities 194,729 191,341 Cash Flows from Investing Activities: Purchase of Government Treasury Bills – Local Proceeds from redemption of Government Treasury Bills - Local Purchase of Government Treasury Notes Proceeds from redemption of Government Treasury Notes Purchase of Corporate Bonds Purchase of Government Bonds – Local Proceeds from redemption of Government Bonds Additions to property, plant and equipment Proceeds from sale of property, plant and equipment (144,844) 29,207 (277,219) 302,668 (92,580) (144,331) 76,756 (2,948) 10 - 201,220 - 65,000 - (534,713) 117,724 (1,346) 93 Cash used in investing activities (253,281) (152,022) Cash Flows from Financing Activities: Reduction in Deposit Insurance Fund - (570) Cash used in financing activities - (570) Net change in cash and cash equivalents (58,552) 38,749 Cash and cash equivalents, beginning of year 186,376 147,627 Cash and cash equivalents, end of year 127,824 186,376 (The accompanying notes form part of these financial statements) DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 7.
1.

Principal Activity: The Deposit Insurance Corporation was established by the Central Bank and Financial Institutions (Non-Banking) (Amendment) Act, 1986 (Act No.

2 of 1986), which amended the Central Bank Act Chapter 79:02.

(All references made to legislation in the ensuing paragraphs unless specifically stated otherwise, relate to the Central Bank Act Chapter 79:02).

The Corporation is a statutory body, the authorised capital of which is fixed by the Act in the amount of $1,000,000.
However, an increase may be approved by the Minister to whom the responsibility for finance is assigned.

The Corporation’s principal objective is to manage a Deposit Insurance Fund established by the Act to provide insurance coverage on deposits held with member institutions to a maximum of $75,000 per depositor in each capacity and right in each institution.

Membership of the Fund is compulsory for all institutions licensed under the Financial Institutions Act, 2008.
It should be noted that effective 17 January 2012 the maximum coverage limit was increased to $125,000 per depositor in each capacity and right in each institution.
Section 44W of the Act authorises the Corporation to take such action as it deems necessary to fulfil its mandate including levying premia and contributions from member institutions, hiring of staff, borrowing, lending, arranging for the restructuring of a failed member whether by merger with a financially sound member or otherwise and acquiring the undertaking of any member institution which is in financial difficulty.
The Corporation may also act as receiver or liquidator of an insolvent member institution.

2.

Summary of Significant Accounting Policies: (a) Basis of preparation These financial statements are expressed in Trinidad and Tobago dollars, rounded to the nearest thousand and are prepared under the historical cost convention in accordance with International Financial Reporting Standards (IFRS).
(b) Use of estimates The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Corporation’s accounting policies.
It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period.

Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates.
DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 8.

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Summary of Significant Accounting Policies (Cont’d): (c) New Accounting Standards and Interpretations - i) The Corporation has not applied the following IFRIC interpretations that became effective during the current year, as they do not apply to the activities of the Corporation: IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.
ii) The Corporation has not applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Corporation or have no material impact on its financial statements, except for IFRS 9 Financial Instruments: IFRS 1 IFRS 1 First-time Adoption of International Financial Reporting Standards – Amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011).
First-time Adoption of International Financial Reporting Standards – Replacement of “fixed dates” for certain exceptions with “the date of transition to IFRSs’ (effective for accounting periods beginning on or after 1 July 2011).

IFRS 1 First-time Adoption of International Financial Reporting Standards – Additional exemption for entities ceasing to suffer from hyperinflation (effective for accounting periods beginning on or after 1 July 2011).
IFRS 7 Financial Instruments: Disclosure – Amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011).

IFRS 7 Financial Instruments: Disclosure – Amendments enhancing disclosure about transfers of financial assets (effective for accounting periods beginning on or after 1 July 2011).

IFRS 9 Financial Instruments: Classification and Measurement (effective for accounting periods beginning on or after 1 January 2015).
IFRS 9 Instruments: Accounting Financial Derecognition (effective for accounting periods beginning on or after 1 January 2015).

for Financial Liabilities and IFRS 10 Consolidated Financial Statements (effective for accounting periods beginning on or after 1 January 2013).

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 9.

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Summary of Significant Accounting Policies (Cont’d): (c) New Accounting Standards and Interpretations (cont’d) - ii) IFRS 11 Joint Arrangements (effective for accounting periods beginning on or after 1 January 2013).

IFRS 12 Disclosure of Interest in Other Entities (effective for accounting periods beginning on or after 1 January 2013).

IFRS 13 Fair Value Measurement (effective for accounting periods beginning on or after 1 January 2013).
IAS 1 IAS 1 IAS 12 IAS 19 Presentation of Financial Statements – Amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011).

Presentation of Financial Statements – Amendments to revise the way other comprehensive income is presented (effective for accounting periods beginning on or after 1 July 2012).
Income Taxes – Limited scope amendment - recovery of underlying assets (effective for accounting periods beginning on or after 1 January 2012).

Employee Benefits – Amended standard resulting from the Post- Employment Benefits and Termination Benefits projects (effective for accounting periods beginning on or after 1 January 2013).

IAS 24 Related Party Disclosure: Revised definition of related parties (effective for accounting periods beginning on or after 1 January 2011).
IAS 27 Consolidated and Separate Financial Statements – Reissued as IAS 27 for accounting periods Separate Financial Statements beginning on or after 1 January 2013).

(effective IAS 28 Investments in Associates – Reissued as IAS 28 Investments in Associates and Joint Ventures (effective for accounting periods beginning on or after 1 January 2013).
IAS 32 Financial Instruments; Presentation – Amendments to application guidance on the offsetting of financial assets and financial liabilities (effective for accounting periods beginning on or after 1 January 2014).

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DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 2.
Summary of Significant Accounting Policies (Cont’d): (c) New Accounting Standards and Interpretations (cont’d) - ii) IAS 34 Interim Financial Reporting – Amendments resulting from May 2010 Annual Improvements to IFRSs (effective for accounting periods beginning on or after 1 January 2011).

The adoption of IFRS 9 Financial Instruments may result in significant changes in the Corporation’s classification and presentation of financial instruments.
(d) Investments - The Corporation has classified all investments into the following categories: Available-for-sale These securities are intended to be held for an indefinite period of time but may be sold in response to the needs for liquidity or changes in interest rates, exchange rates or equity prices.

After initial recognition, available-for-sale investments are measured at fair value with unrealised gains or losses recognised in the Investment Re-measurement Reserve.
For actively traded investments, fair value is determined by reference to the Stock Exchange quoted market prices at the Statement of Financial Position date, adjusted for transaction costs necessary to realise the investment.

For investments where there is no quoted market price, the carrying value is deemed to approximate fair value.
Held to maturity These are securities which are held with the positive intention of holding them to maturity and are stated at amortised cost less provisions made for any permanent diminution in value.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 11.

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Summary of Significant Accounting Policies (Cont’d): (e) Financial instruments - Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial assets and financial liabilities are recognised on the Corporation’s Statement of Financial Position when the Corporation becomes a party to the contractual provisions of the instrument.
Financial assets All regular way purchases and sales of financial assets are recognised or derecognised on the trade date, that is, the date on which the Corporation commits itself to purchase or sell an asset.

A regular way purchase and sale of financial assets is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the timeframe established generally by regulation or convention in the marketplace concerned.
When financial assets are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the asset.

Financial assets are derecognised when the contractual rights to receive the cash flows expire or where the risks and rewards of ownership of the assets have been transferred.
Impairment of financial assets The Corporation assesses at each Statement of Financial Position date whether there is objective evidence that a financial asset or group of financial assets is impaired.
A financial asset or group of financial assets is impaired and impairment losses are incurred if and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
Objective evidence that a financial assets or group of financial assets is impaired includes observable data that comes to the attention of the Corporation about the following loss events: i) ii) Significant financial difficulty of the issuer or obligor.

A breach of contract, such as default or delinquency in interest or principal payments.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 12.

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Summary of Significant Accounting Policies (Cont’d): (e) Financial instruments (cont’d) - iii) iv) v) It becoming probable that the borrower will enter in bankruptcy or other financial reorganization.

The disappearance of an active market for that financial asset because of financial difficulties.
Observable data indicating that there is a measurable decrease in the estimated cash-flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with individual financial assets in the group, including adverse changes in the payment status of borrowers in the Corporation or national or economic conditions that correlate with defaults on assets in the Corporation.
The Corporation first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant.

If the Corporation determines that no objective evidence of impairment exists for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment.
Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.
Impairment of financial assets Impairment losses are recorded in an allowance account and are measured and recognised as follows: i) Financial assets measured at amortised cost The difference between the assets’ carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate is recognised in the Statement of Comprehensive Income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as improvement in the debtor’s credit rating), the previously recognised loss is reversed to the extent that the carrying amount of the financial asset does not exceed what the amortised cost would have been had the impairment not been recognised at the date that the impairment is reversed.
The amount of the reversal in recognised in the Statement of Comprehensive Income.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 13.

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Summary of Significant Accounting Policies (Cont’d): (e) Financial instruments (cont’d) - ii) Financial assets measured at cost The difference between the assets’ carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the current market’s rate of return for similar financial assets is recognised in the Statement of Comprehensive Income.

These losses are not reversed.


Financial liabilities When financial liabilities are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the liability.

Financial liabilities are re-measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when they are extinguished, that is, when the obligation specified in the contract is discharged, cancelled or expired.
The difference between the carrying amount of a financial liability extinguished and the consideration paid is recognised in the Statement of Comprehensive Income.

Cash and cash equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of twelve months or less and are carried at cost, which approximates market value.

Accounts receivable Accounts receivable are initially measured at cost.
Appropriate allowances for estimated irrecoverable amounts are recognised in the Statement of Comprehensive Income when there is objective evidence that the asset is impaired.

Non-current assets The security deposit attached to the rental agreement with Central Bank of Trinidad and Tobago has been presented as a non-current asset.

The security deposit amounts to $39,750.


Accounts payable Accounts payable are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 14.

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Summary of Significant Accounting Policies (Cont’d): (f) Provisions Provisions are recognised when the Corporation has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation.

Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
(g) Foreign currency translation Transactions denominated in foreign currencies are recorded at the rates ruling at the dates of the transactions.

Assets and liabilities denominated in foreign currencies are expressed in Trinidad and Tobago dollars at year end average rates.

Exchange gains and losses are reflected in the Statement of Net Comprehensive Income and Deposit Insurance Fund.
(h) Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation.

Depreciation is provided on a reducing balance basis at rates calculated to write off the cost of the assets over their estimated useful lives for all asset groups except computer equipment and software.
The rates used are as follows: Motor vehicles Furniture and fixtures Office equipment Leasehold improvements - - - - per annum 25% per annum 10% 15% per annum 33 1/3% per annum The method of depreciation on computer equipment and software is the straight-line method, however in fiscal 2011; the estimated useful life on computer equipment was changed from a period of five (5) years to four (4) years.

The estimated useful life on computer software was maintained at five (5) years.
No depreciation is charged in the year of disposal.

However, a full year’s charge is made in the year of acquisition.

(i) Comparative figures Certain comparative figures were restated to facilitate changes in presentation.

These changes had no effect on the previously reported net income.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 15.

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Summary of Significant Accounting Policies (Cont’d): (j) Levy of initial contributions and annual premia All institutions are required to pay an initial contribution on becoming members, and annual premia in subsequent years.

Initial contributions paid by member institutions are matched by the Central Bank (Section 44M).
The payment of initial contributions is based on a rate of 0.4 per centum of the average deposit liabilities existing at the end of the first and second quarters of the first twelve (12) months of operation.
Annual premia in respect of a given year are paid on the basis of a rate of 0.2 per centum of the average deposit liabilities existing at the end of each of the quarters in the preceding calendar year, except that for a new institution the first year’s levy is based on its average deposit liabilities existing in the first year of operation.
(k) Exemption from the provisions of taxation and insurance legislation The Corporation is exempt from the provisions of any Act relating to income taxation or company taxation and from payment of stamp duty, and is also exempt from the provisions of the Insurance Act 1980, [Section 55 (1) and (2)].

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3.

Financial Risk Management: Financial risk factors The Corporation is exposed to interest rate risk, credit risk, liquidity risk, currency risk, operational risk, compliance risk and reputation risk arising from the financial instruments that it holds.
The risk management policies employed by the Corporation to manage these risks are discussed below: (a) Interest rate risk - Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
The Corporation is exposed to interest rate risk through the effect of fluctuations in the prevailing levels of interest rates on interest bearing financial assets and liabilities, including investments in bonds, loans, customer deposits and other funding instruments.

The exposure is managed through the matching of funding products with financial services and monitoring market conditions and yields.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 16.

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Financial Risk Management (Cont’d): Financial risk factors (cont’d) (b) Credit risk - Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the Statement of Financial Position date.

The Corporation relies heavily on its written Accounting Procedures document.
Cash balances are held with high credit quality financial institutions and the Corporation has policies to limit the amount of exposure to any single financial institution.

The Corporation also actively monitors global economic developments and government policies that may affect the growth rate of the local economy.

(c) Liquidity risk - Liquidity risk is the risk that arises when the maturity dates of assets and liabilities do not match.
An unmatched position potentially enhances profitability, but can also increase the risk of losses.

The Corporation has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

Risk management The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the management of the Corporation.
The Corporation employs various asset/liability techniques to manage liquidity gaps.

Liquidity gaps are mitigated by the marketable nature of a substantial segment of the Corporation’s assets.

To manage and reduce liquidity risk the Corporation’s management actively seeks to match cash inflows with liability requirements.

(d) Currency risk - Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates.
Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Corporation’s measurement currency.

The Corporation is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar.

The Corporation’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 17.

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Financial Risk Management (Cont’d): Financial risk factors (cont’d) (e) Operational risk - Operational risk is the risk derived from deficiencies relating to the Corporation’s information technology and control systems, as well as the risk of human error and natural disasters.

The Corporation’s systems are evaluated, maintained and upgraded continuously.
Supervisory controls are also installed to minimise human error.

(f) Compliance risk - Compliance risk is the risk of financial loss, including fines and other penalties, which arise from non-compliance with laws and regulations of the state.

The risk is limited to a significant extent due to the supervision applied by the Central Bank of Trinidad and Tobago, as well as by the monitoring controls applied by the Corporation.
(g) Reputation risk - The risk of loss of reputation arising from the negative publicity relating to the Corporation’s operations (whether true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Corporation.

The Corporation engages in public social endeavours to engender trust and minimize this risk.

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4.

Critical Accounting Estimates and Judgments: The preparation of financial statements in accordance with International Financial Reporting Standards requires management to make judgements, estimates and assumptions in the process of applying the Corporation’s accounting policies.

See Note 2 (b).

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events, that are believed to be reasonable under the circumstances.
The Corporation makes estimates and assumptions concerning the future.

However, actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Changes in accounting estimates are recognised in the Statement of Comprehensive Income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods.
DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 18.

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Critical Accounting Estimates and Judgments (Cont’d): The critical judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: i) Whether investments are classified as held-to-maturity investments, available-for-sale or loans and receivables.

ii) Whether leases are classified as operating leases or finance leases.
iii) Which depreciation method for property, plant and equipment is used.
The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of Financial Position date (requiring management’s most difficult, subjective or complex judgements) that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: i) Impairment of assets Management assesses at each Statement of Financial Position date whether assets are impaired.
An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment.

Recoverable amount is the present value of the future cash flows.

Provisions are made for the excess of the carrying value over its recoverable amount.
ii) Property, Plant and Equipment Management exercises judgement in determining whether future economic benefits can be derived from expenditures to be capitalised and in estimating the useful lives and residual values of these assets.

5.

Assets Under Administration: There exist five (5) failed non-banking financial institutions for which the Corporation serves as liquidator.
These companies and their year of liquidation are as follows:      Commercial Finance Company Limited (in liquidation) Trade Confirmers Limited (in liquidation) Swait Finance Limited (in liquidation) Caribbean Mortgage and Funds Limited (in liquidation) Principal Finance Company Limited (in liquidation) 1986 1986 1986 1991 1993 In its role as liquidator, the Corporation is engaged in liquidating the assets of these failed institutions in an attempt to settle the outstanding liabilities associated with these institutions.
DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 19.

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Assets Under Administration (Cont’d): The Corporation submits reports every six (6) months to The Official Receiver (High Court) providing details of receipts and payments for the period being reported.

Lastly, these liquidations have not as yet been wound up due to legal matters before the Courts.
The Statement of Financial Position does not include the assets of these closed financial institutions under the administration of the Corporation.

However, the table presented hereunder provides in summary, the balances as at 30 September 2011.

In relation to the table, the following points should be noted:        Column (A) – The assets at closure are reported at net realizable value representing a reasonable estimate of the amount for which the assets could have been sold.
Column (B) – The liabilities at closure represent the total amount owing by the failed institutions, inclusive of deposit liabilities, as at the date of closure.

Column (C) – Liabilities incurred represent liquidation expenses from the date of closure up to the end of the reporting period.

Column (D) – Total realisations represent the amount received to date from the sale of liquidated assets.
Column (E) – Total payments represent liquidation expenses paid and insurance payments recovered as at the reporting date.

Column (B+C-E) – Remaining liabilities represent the balance due to unsecured creditors as at the reporting date.

The legislation authorises the DIC to recover insurance paid from the sales proceeds of liquidated assets in priority to unsecured creditors.
Total Value of Assets at Closure Total Liabilities at Closure Total Liabilities incurred as at 30 September 2011 Total Realisations as at 30 September 2011 Total Payments as at 30 September 2011 Remaining Liabilities as at 30 September 2011 (A) (B) (C) $’000 $’000 $’000 (D) $’000 (E) (B+C-E) $’000 $’000 156,765 492,316 15,793 57,897 57,347 450,762 By High Court Order No.
CV2010-01442 dated 17 October 2011 under the Honourable Justice Ronnie Boodoosingh, the Court ruled that Clico Investment Bank be wound up under the provisions of the Companies Act, Chapter 18:01 and the Deposit Insurance Corporation was appointed Liquidator of the company.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 20.

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Cash and Cash Equivalents: Cash and bank balances Term deposits Money Market deposits 7.

Held-to-Maturity Investments: a.


Current Government Treasury Bills Government Treasury Notes Government Bonds b. Non-Current Corporate Bonds Government Treasury Notes Government Bonds 8.
Accounts Receivable: Interest receivable Other receivable 30 September 2011 $’000 2010 $’000 2,097 12,800 112,927 112 9,350 176,914 127,824 186,376 30 September 2011 $’000 2010 $’000 115,637 - 24,285 - 302,712 30,873 139,922 333,585 92,580 367,757 - 90,619 955,810 1,024,319 1,484,656 1,046,429 1,624,578 1,380,014 30 September 2011 $’000 2010 $’000 26,172 550 25,520 351 26,722 25,871 21.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 9.
Property, Plant and Equipment: Leasehold Improvements $’000 Motor Vehicles $’000 Furniture and Fixtures $’000 Office Equipment $’000 Computer Equipment $’000 Computer Software $’000 Work-in- Progress $’000 Total $’000 Cost Balance as at 1 October 2010 Additions Transfers Disposals 370 - - - 474 229 - (124) 581 46 - - 258 12 (2) - 521 177 2 - 3,065 114 - - 2,370 - - - 5,269 2,948 - (124) Balance as at 30 September 2011 370 579 627 268 700 3,179 2,370 8,093 Accumulated Depreciation Balance as at 1 October 2010 Charge for the year Disposals 362 3 - 206 123 (119) 363 26 - 149 18 - 418 90 - 902 636 - - - - 2,400 896 (119) Balance as at 30 September 2011 365 210 389 167 508 1,538 - 3,177 Net Book Value Balance as at 30 September 2011 5 369 238 101 192 1,641 2,370 4,916 Balance as at 30 September 2010 8 268 218 109 103 2,163 - 2,869 22.
DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 9.
Property, Plant and Equipment (Cont’d): Leasehold Improvements $’000 Motor Vehicles $’000 Furniture and Fixtures $’000 Office Equipment $’000 Computer Equipment $’000 Computer Software $’000 Work-in- Progress $’000 Total $’000 Cost Balance as at 1 October 2009 Additions Transfers Disposals 370 - - - 407 350 - (283) 591 3 - (13) 174 85 - (1) 616 44 - (139) 979 864 1,222 - 1,222 - (1,222) - 4,359 1,346 - (436) Balance as at 30 September 2010 370 474 581 258 521 3,065 - 5,269 Accumulated Depreciation Balance as at 1 October 2009 Charge for the year Disposals 358 4 - 310 89 (193) 348 25 (10) 130 20 (1) 506 52 (140) 289 613 - - - - 1,941 803 (344) Balance as at 30 September 2010 362 206 363 149 418 902 - 2,400 Net Book Value Balance as at 30 September 2010 8 268 218 109 103 2,163 - 2,869 Balance as at 30 September 2009 12 97 243 44 110 690 1,222 2,418 DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 23.
10.

Personnel Expenses: Allowances Salaries and overtime Staff benefits Directors’ fees Gratuity Pension contributions National Insurance contributions Medical and Workmen Compensation Insurance 30 September 2011 $’000 2010 $’000 560 2,345 174 581 1 128 108 64 686 3,053 185 154 45 114 102 52 3,961 4,391 In fiscal 2011, the fee structure applicable to Directors’ Fees increased retroactive to June 2008.
As a result, directors received payment of arrears for the period 2008 – 2011 based on the revised fees and allowances.

11.
General and Administrative Expenses: Office rental and related expenses Repairs and maintenance Equipment rental Property services Motor vehicle Information technology Printing and stationery Public relations and advertising Telecommunications Professional fees Library services Archiving Meetings Training and education International Association of Deposit Insurers (IADI) membership fees Management contract (Administrative services provided by the Central Bank of Trinidad and Tobago) Conferences and official visits Miscellaneous 30 September 2011 $’000 2010 $’ DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 24.
12.

Retirement Benefits: The Corporation does not operate a pension plan but a non-compulsory arrangement exists whereby the Corporation contributes 150% of an employee’s contribution to an approved individual annuity or the Individual Retirement Unit Account of the Trinidad and Tobago Unit Trust Corporation up to a maximum of 10% of an employee’s base salary.

Costs incurred for 2011 were $128,000 (2010: $114,000).

13.
13.

Related Party Transactions: Significant aspects of the relationship between the Corporation and the Central Bank of Trinidad and Tobago (the Central Bank) are as follows: (a) Capital contribution The paid-up capital has been contributed entirely by the Central Bank of Trinidad and Tobago.

(b) Representation on the Board of Management (Section 44Q (1) (a)) Two (2) members represent the Central Bank of Trinidad and Tobago on the Board of Management of the Corporation.
(c) Current liabilities Personnel and administration expenses reimbursable to the Central Bank 30 September 2011 $’000 2010 $’000 109 110 109 110 (d) Operational arrangements between the Central Bank and the Corporation the financial year, During the Central Bank provided under contract, office accommodation and other administrative services to the Corporation.

The costs incurred for the year ended 30 September 2011 under these arrangements were $741,000 (2010: $660,000).
Limited commercial banking type facilities are also provided by the Central Bank.

DEPOSIT INSURANCE CORPORATION NOTES TO THE FINANCIAL STATEMENTS 30 SEPTEMBER 2011 25.

13.

Related Party Transactions (Cont’d): (e) Key management personnel compensation Short-term employee benefits Post-employment benefits 30 September 2011 $’000 2010 $’000 849 34 1,069 51 883 1,120 14.

Employees: At 30 September 2011 the Corporation had in its employ a staff of 16 persons (2010: 16).