EC Meeting November 2018

GFTU EC MEETING

Friday 23 rd November 2018

Quorn Grange Hotel Leicestershire

How to find us

Easily reached by either road or rail (or by air from East Midlands airport just 30 minutes away), Quorn Grange Hotel is a useful base for guests wishing to visit the attractions in the area. In addition, the cities of Leicester and Nottingham are only a short distance away.

BY ROAD From the North : Leave the M1 at junction 23 (Loughborough) following signs for the A6 south (Leicester). Shortly after leaving Loughborough, turn off the A6 dual carriageway into Quorn. Go straight through Quorn. Wood Lane is a right turn, at the far end of the village, at the third mini roundabout. Quorn Grange Hotel is about a quarter of a mile further on, on the left. From the South : Leave the M1 at junction 21a and take the A46 Leicester western bypass (Newark). Turn left from the A46 onto the A6 dual carriageway, turning left at a small roundabout signposted Quorn/Mountsorrel. At the next roundabout, turn right towards Quorn. After about one mile, turn left into Wood Lane at a mini roundabout. Quorn Grange Hotel is about a quarter of a mile further on, on the left.

BY RAIL There are Midland Mainline services from London St Pancras to Sheffield which stop at Loughborough and Leicester.

BUS

The number 2 kinchbus, 126 and 127 bus runs from Leicester bus station to Quorn. The number 2 kinchbus, 126 and 127 bus runs from Loughborough town centre to Quorn.

Number 2 bus information

Number 126 / 127 bus information

Quorn Grange Hotel 88 Wood Lane Quorn Leicestershire LE12 8DB

Tel: 01509 412167 Fax: 01509 415621

General Federation of Trade Unions

Executive Committee November 2018

AGENDA

1

Apologies for absence

2

Declaration of any other business

3

Minutes of the previous meeting, correction, matters arising

4

Issues from affiliates.

5

International Issues. Report from Hanoi Federation of Labour visit. Latin America. Poland follow up.

6

Finance and Budgets. GFTU Accounts and Budget GFTU ET Accounts and Budget Hotel accounts and Budget Pension Scheme.

7

New Build Report

8

BGCM, Motions, Arrangements.

9

General Secretary’s Report.

10

Any Other Business.

EC Minutes September 2018

General Federation of Trade Unions

Executive Committee Minutes

September 19 th 2018

Quorn Grange Hotel, Leicestershire

In attendance: Bro. Doug Nicholls, (Gen Sec), Sis. Claire Ryan, (Minute Taker).

Bro. Ronnie Draper, Bro. Garry Elliott, Sis. Theresa Easton, Sis. Keeley Lipscombe, Bro. Robert Mooney, Sis. Yvonne Pattison, Sis. Angela Pratten, Bro. Osher Williams, Bro. John McGowan, Bro. Ian Lawrence, Bro. Brian Linn, , Bro. John Smith, Bro Joe Simpson, Bro. Robert Mooney, Bro. Manuel Cortes.

Apologies: Sis. Sarah Woolley Bro. Colin Kirkham , Sis. Christine Miller, Sis. Ellie Peers, Bro. Roy Rickhuss, Sis. Janie Nicholl, Bro. Steve Gillan, Sis. Claire Jones, Bro. Nick McCarthy, Sis Christine Bond, Sis. Maddy Radcliffe, Bro. Alasdair McDiarmid, Sis. Philippa Childs, Bro. Freddie Seale, Bro. Neil Crew.

Paperwork circulated for the meeting: Agenda, Directions, Minutes of previous meeting, Financial and Accounts Information, General Secretary’s Report, International Report, Education Programme 2018 -2020, TUC Comic Strip, EC Expenses Claim Form. Political Education Report.

1. Declaration of Any Other Business.

Bro. Smith reported that Freddie Seale of GMB who holds a young members EC seat had only attended one EC meeting. It was suspected he was no longer a member of GMB. EC members discussed cohort his seat with the candidate that followed him in the Young Members Seat ballot.

2. Minutes of the Previous Meeting, Corrections, Adoption.

Corrections

Sis. Pattison and Sis. Lawson sent apologises that needed recording correctly.

1

EC Minutes September 2018

These were agreed as a true and accurate record.

3. Matters Arising.

No matters arising.

Around the table Unions update:

Bro. Draper (BFAWU) reported that there was exciting news and further McDonalds strike were due to take place in the near future across the country on the 4 th October. Letters would be sent out today. There would also be strikes taking place at Weatherspoon’s. Wetherspoons had written to Bro. Draper and Mr Martin would be invited for talks. Wetherspoons pay increase had already been brought forward from April next year to September this year. Bro. Draper reported that Unite would also coincidentally be striking against TGI Friday on the same day. Bro. Draper planned to invite Francis O’Grady and John McDonnell would also be invited to the International meeting taking place on the 3 rd October. Sis. Euston (SAU) reported that she would be stepping down from the Executive and that Sheree Angela Matthews who is the voluntary secretary would be taking her place. Sis. Euston reported this was a positive handover and discussed the impact on her role to be more actively involved with members and campaigns. Bro. Mooney – (Community) Reported on the continued problems with disability and employment. Bro. Mooney had met with the Chief Executive of local Housing Association and a motion was being presented to the TUC that 10% of all apprentices should specifically be disabled employees. Bro. Mooney discussed the Scottish government had recently set up a working group to increase the employment of people with disabilities. Bro. Mooney stated that in over his 40 years within the trade union movement there has been no movement in the percentage of employed disability. Sis. Pattison (NAPO) reported that NAPO had been locked in pay talks as the employer for several weeks and progress had been made but not finalised just yet. There are continued concerns for double waking bank cover for night premises staff who are often inexperienced and working with high risk offenders. Members continue to have problems in several areas including pensions and training. Bro. Lawrence (NAPO) reported on the developments of the consultation exercise which is a regurgitation of the original privatisation budget. Bro. Lawrence Continue to campaign to get the budget over turned but would need a labour government to assist with this.

Sis. Pattison added that the current 22 contracts across the country would be reduced to 10 contracts which is very concerning and putting all at high risk.

Sis. Pratten (AEP) Reported that a motion of corporate punishment had been put forward at the TUC which had caused discussion on televisions and social media and confirmed that their annual AGM would be taking place in November.

2

EC Minutes September 2018

Bro. Cortes (TSSA) reported that there were three disputes currently underway. Railway freight, Scottish railway dispute between the different treatment of staff and train drivers. Bro. Cortes reported campaigning on the political front against the sale of railway arches. Bro. Cortes reported on the likely set up of large chain shops in them and the displacement of small local business and the implications on the safety of the arches with their structure and failure of safety tests. Short term economic gain was again replacing a national asset.

Bro. Cortes reported on the campaign against Scotland ferries tender all ferry routes campaign against to put the Scottish government under pressure.

Bro. Cortes confirmed that TSSA would be moving into their new premises in November.

Bro. Elliott (Nautilus International) reported on the negative effect that Brexit would have on UK seafarers and how Brexit would put jobs at risk.

Bro. Elliott reported that in the first time in 20 years Nautilus had had two recent successful industrial action disputes. One dispute was with the Scottish government and northlink ferries they go out to tender and 15% increase in pay was achieved.

The other dispute was against Stenaline with RMT a sister union, Nautilus received a superior increase as a standalone union.

Bro. Simpson (POA) reported that during the TUC 17 assaults had taken place on prison staff and the injuries received. After negotiations with the Government had broken down, members were contacted on Thursday and 126 branches walked out. Emergency cover was put in place. Meetings were held and a press release was issued. Bro. Simpson discussed the talks and reported that last night at 6pm an agreement was finally made. Bro. Simpson stated that a drug reduction and violence strategy would be actioned. There is the possibility of contempt of court for the action but stressed this action was not against the court this was for the safety of prison staff and prisoners.

Bro. Simpson also reported on the issues faced at Birmingham Prison and hope to forge ahead for improvements.

Bro. Linn reported that he usually attended STC parliamentary meeting group but for the first time he attended a SMP meeting to campaign for collective bargaining however not a single SMP arrived to attend the meeting. Bro. Linn continues to campaign for diversity and inclusion. Bro. Linn confirmed that a webinar would be going ahead. Bro. Linn confirmed that a future pay increase was looking successful within the finance sector. Sis. Lawson (VOICE) Reported on the STRB’s pay increase announcement which was less than unions had asked for and would only begin to address the decline in teachers’ real pay in the last seven years. The government published 3.5% increase fully funded increase however this was a fabrication by the government is only paying the difference of what they should have been budgeting for. The actual pay rise would be between 1%- 2.5%. VOICE has pressed it should be 3.5% and this was only directed at England and not Wales, it has since been published Scotland would be included.

3

EC Minutes September 2018

Sis. Lawson also reported there were also members working within the NHS and the issues the differences in the lower pay ranges and staff that had been in their positions for many years.

Sis. Lawson reported on the impact that the free entitlement was causing and the result of closures of private day care settings due to this funding.

Sis. Lawson was disappointed with the government that there would not be a graduate leadership programme A letter had been sent to Minister to discuss and move forward on discussions for careers within early years childcare workers in the private and voluntary sector.

Sis. Lawson asked if job adverts could be advertised on GFTU website which Bro. Nicholls confirmed.

Bro. McGowan reported on the continued campaign against huge cuts in local authorities within social services areas particularly in Northampton. Bro. McGowan reported that forty two out of seventy two universities who present social work had been signed up which would positively help to recruit more social workers. Bro. McGowan discussed the continuous campaign for working conditions and a further debate would take place in November. A new survey of which 3500 respondents had participated to look at issues of stress and management had proven to be productive. Bro. McGowan reported that a number of local authorities had signed up to use this tool kit and Bro. McGowan had met with Lord Patel and expressed that a positive campaign within social work continued.

Bro. Williams reported on the recent recruitment and involvement of female members in the union. Bro. Williams spoke of the interest of making players aware of the membership which is different to the male footballer’s recruitment due to sponsorship rights and how they are recruited in the different teams and leagues. This has been a very positive interaction.

Bro. Smith reported on MU campaign response to the metoo campaign where members put testimony’s on to get feedback from other members. Bro. Smith reported on a current case and the legal action that can be taken in such cases.

4. Accounts.

EC Members were joined by Wendy Cheung, Finance Manager and Claire Smith Senior Finance Officer who gave an overview of the accounts information that had been circulated. Sis. Cheung clarified to Bro. Williams that not all invoices for customised courses had been included. Bro. Nicholls reminded EC members that included in the hotel budget was the repayment of loan and GFTU salaries along with a regular payment into the ET every month. Bro. Nicholls reported that January, February and March were slower months for the hotel and encouraged unions to use the hotel in during these months.

4

EC Minutes September 2018

Sis. Cheung discussed bad debts from the nursery and advised EC members that approximately £12k would have to be written off.

5. Third Building.

Bro. Nicholls reported that the conclusion had been made not to proceed with the third building at this stage. Services would be provided in case of a future build. Exceptional pledges from unions of £425,000 had been raised which was just short of the £550,000 target.

EC Members discussed the positive goodwill received and agreed for Bro. Nicholls to send thank you letters to those pledging unions.

6. New Build Progress.

Bro. Nicholls reported on inevitable overspends and discussed the developments and progress of the new build. Bro. Nicholls and EC members discussed penalty clauses within the contract which were detailed in the General Secretary’s report. Bro. Nicholls confirmed at this stage the contractors owed between £12-15k penalties already.

Bro. Smith gave a positive report on how well the hotel business that had continued despite the building work disruption. Bro. Smith gave congratulations to Bro. Nicholls for his negotiating work with the contractors.

7. New Education Programme.

Hard copies of the new education programme were available to EC members and had been circulated in papers.

Bro. Nicholls reported that the new programme included tightened cancellation policies which was agreed at the last EC meeting. There would also be a strict 30 day deadline for applicants. Bro. Nicholls confirmed that the position of the Education Officer would be advertised. Bro. Nicholls confirmed that a minimum of eight students were required for courses to go ahead. EC members gave positive feedback on the overall layout and content of the education programme.

8. New Education Opportunities.

Bro. Nicholls discussed the Political Education Paper that had been circulated in papers. It was agreed to circulate this more widely .Bro. Nicholls had been working with two artists on a graphic novel publication of the history of our movement that would be published next year.

5

EC Minutes September 2018

GFTU’s work with the ‘Shout out’ project continued and a further meeting this month had been arranged.

Bro. Nicholls reminded the EC that the Financial strategy is to invest in Quorn to fund future education without relying on money markets. Education funding through the trust would need to be looked in to and investigated further as the amounts likely to be raised by just operating the hotel would be insufficient to meet all current costs. It was agreed that Kellogg and Ruskin colleges would be contacted to explore the possibilities for future funding possi further.

9.

BGCM.

It was agreed that BGCM deadlines and timetable would be circulated by email to all EC members.

Bro. Nicholls welcomed ideas for speakers and confirmed the BGCM would take place at Quorn Grange Hotel May 19-21 2019.

10. International Report. Venezuela. Kurdish issues. Vietnam.

Bro. Nicholls suggested inviting HDP in Turkey to the BGCM. This was agreed.

Bro. Lawrence offered to provide a more detailed report from his Brussels forward during the BGCM. This was agreed.

Bro. Cortes reported that he had spoken at the TUC on the Kurdistan situation during fringe meeting.

11. Win:Win

Bro. Nicholls reported that more promotion and union use of the Win:Win services were needed to make this a success.

12. General Secretary’s Report.

General Secretary’s report was discussed and agreed.

13. Any Other Business.

Sis. Lipscombe suggested creating a whatsapp communication group for EC members, it was agreed for Keeley to be the administrator. EC members agreed and contact details would be circulated complying with GDPR.

Sis. Lawson and Bro. Cortes offered their premises to hold EC meetings whilst building was ongoing at Quorn Grange Hotel.

Bro. Nicholls confirmed the General Secretary’s meeting would be going ahead 10 th October 2018 at Quorn Grange Hotel.

6

EC Minutes September 2018

The meeting closed 2.45pm

7

GFTU Management Accounts YTD Oct 2018

GFTU Budget Full Year 2018

Budget YTD Oct 18

Actual YTD Oct 18

Variance YTD Oct 18

Budget left to spend / achieve for the year

Notes

Income source Accounts Processing Services

35,306 Full year POA, YTD SWU & TSSA 15,766 Hotel Bookkeeping Services

109,700

91,417 35,000

74,394 26,234

(17,023)

Recharge for services provided- QGH Recharge for services provided- QGN

42,000

(8,766)

0

-

5,400

5,400

(5,400)

Contributions

194,500 194,500

195,434

934

(934)

Sponsorship/Commission

0

- -

- -

- -

- -

Investment Income -TU Unit Trusts Investment Income- Zeneca Investment Income- RBS Investment Income- Unity Trust Managed Investment Income BM & CAM

3,960 £1,368 Astra Zeneca dividends in Sept 18

8,000

6,667

4,040

(2,627)

-

-

-

-

(51,058) Profit on Sale of Unquoted Investments

4,000

3,333

55,058 96,411

51,725

118,589 Unrealised gain as at end of Q3

215,000 179,167

(82,756)

Bank Interest Received

- - - - - - - -

- - - - - -

- - - - - -

- - - - - -

Misc Income- intercompany recharge

Gift Aid-GFTU Gift Aid- Albion Gift Aid-QGH

Customised Course Fees

Union Conference Building/ BGCM Grant/Arts Festival/Spon'ship/Project

6,875

6,875

(6,875)

-

-

-

Other Income

12,000

10,000

2,534

(7,466)

9,466

Extra Ordinary Income

-

-

Total income

585,200

520,083

466,379

(53,704)

118,821

Expenditure Staffing

31,301 Staff salaries have been split between GFTU & ET

Salary And NIC

156,607 130,506

125,306

(5,200)

Salary for shared Service

-

-

-

-

Pension

13,010

10,842

14,098

3,256

(1,088)

Redundancy & Severance

-

-

-

-

Staff Welfare

860

717

875

158

(15)

Essential Car user Allowance

1,828 2,000

1,523 1,667

3,750 1,259

2,227

(1,922)

Staff Travel and Subs

(408)

741

Staff Travel shared Service

-

-

-

-

GS Travel HOE Travel

1,500

1,250

1,843

593

(343)

-

- - -

-

-

Other employment costs Training and development

800

667

(667)

800

- -

-

-

Agency

1,194

1,194

(1,194) 69,965

Pensions Recovery Payments

70,000

58,333

35

(58,298)

Pension Scheme Cost

- -

- -

- -

- -

Pension prior year adjustment

Total

246,605

205,504

148,360

(57,145)

98,245

Premises Rent and Rates

300 250 800

250 208 667

497

247

(197)

Repair and maintenance

-

(208)

250

Utilities

1,285

618

(485)

Health and Safety

-

-

-

Insurance

500

417

564

147

(64)

Depreciation

7,500

6,250

3,897

(2,353)

3,603

(472) Nursery Fees

Cleaning

-

472

472

Total

9,350

7,792

6,715

(1,077)

2,635

Administration Stationery, Postage Courier & delivery cost Telephone & mobile

1,600

1,333

2,170

837

(570)

-

- -

-

700

583

(583)

700

Sage costs £4,614; Virgin Media £504. TSSA recharge £1,035 in Oct 18

IT, website, maintainence

4,000

3,333

7,479

4,146

(3,479)

Printing & Copying Office relocation

2,000

1,667

3,035

1,368

(1,035)

- -

- -

- -

Total

8,300

6,917

12,684

5,768

(4,384)

Management fees Executive Committee Expenses Conference expenses (BGCM/EC)

2,000

1,667

9,858

8,192

(7,858) 12,750

12,750

10,625

-

(10,625)

(6,272) BFAWU recharged in Aug for accommodation costs (-£2k)

Conference expenses (other)/Speakers

3,000

2,500

9,272

6,772

Accountancy and audit

8,500

7,083

19,502

12,419

(11,002) £6.8k in May for GFTU and Pension audit. £12k in July for 2 x Sturgess invoices for examining the Trust & Company's records.

Legal & Professional

10,000

8,333

3,600

(4,733)

6,400

Accruals W/O for Legal and Accountancy

Prior Year Adjustment

-

( 22,861 )

(22,861)

22,861

Investment management fee

60,000

50,000

-

(50,000)

60,000

PPF & Pension Regulator Levy (£30,831 in Sept 18. £3,676 recharged to PCS)

Pension scheme levy

5,500

4,583

28,827

24,243

(23,327)

Pension scheme audit and accounts Pension scheme legal & professional

5,000

4,167

-

(4,167) (11,468) (52,228)

5,000

17,301 Mercer invoices

35,000

29,167

17,699

Total

141,750

118,125

65,897

75,853

GFTU Management Accounts YTD Oct 2018

GFTU Budget Full Year 2018

Budget YTD Oct 18

Actual YTD Oct 18

Variance YTD Oct 18

Budget left to spend / achieve for the year

Notes

Programme and Event Gift Aid Payment/Grants

100,000

83,333 11,667

-

(83,333) (9,171) (4,167)

100,000

Affiliations, Donations, Subscriptions, Communications & Campaigning

14,000

2,495

11,505

5,000 4,000 2,000

4,167 3,333 1,667

-

5,000 2,334 2,000

Advertising and promotion

1,666 (1,668)

Room hire

-

(1,667)

(1,254) For The Many leaflets

Publicity leaflets Youth Festival History Festival

1,254 1,254

- - - - - - - -

- - - - - - -

- - - - - - -

Arts & Cultural Festival

Other events

E learning

Union Confenrance Building

Links with Universities

Bank charges

1,000

833

995

162

5

International Study Visit Poland £7.5k, Manifesto for Labour Law £615; £4.3k misposting - money owed from Pension Fund. Corrected in Nov 18.

Miscellaneous

500

417

12,612

12,195

(12,112)

P&L Sale of asset

- -

- -

-

- -

Total

126,500

105,417

19,022

(86,395)

107,478

Management recharge

Total Expenditures

532,505

443,754

252,677

(191,077)

Surplus/deficit before Capital Expenditure

52,695

76,329

213,702

137,373

GFTU General Federation of Trade Unions Balance Sheet

YTD Oct 18

Fixed Assets Office Equipment

14,808

New Build

696

Motor Vehicles Investments

-

4,626,408

4,641,912

Current Assets Debtors & Prepayments

82,788

Intercompany Bank Account

3,897,300

47,734

4,027,822

Current Liabilities Creditors: Short Term Taxation (PAYE /NIC)

6,995 8,098

Wages (Pension)

0

15,093

Current Assets less Current Liabilities:

4,012,729

Total Assets less Current Liabilities:

8,654,641

Long Term Liabilities

(1,130,000)

Total Assets less Total Liabilities:

7,524,641

Capital & Reserves Reserves Investment Revaluation

6,673,001 734,349 213,702 (96,411)

P&L Account

Unrealised gain on investments

7,524,641

GFTU Management Accounts YTD Oct 2018

GFTU Budget Full Year 2018

Budget YTD Oct 18

Actual YTD Oct 18

Variance YTD Oct 18

Budget left to spend / achieve for the year

Notes

Income source Accounts Processing Services

35,306 Full year POA, YTD SWU & TSSA 15,766 Hotel Bookkeeping Services

109,700

91,417 35,000

74,394 26,234

(17,023)

Recharge for services provided- QGH Recharge for services provided- QGN

42,000

(8,766)

0

-

5,400

5,400

(5,400)

Contributions

194,500 194,500

195,434

934

(934)

Sponsorship/Commission

0

- -

- -

- -

- -

Investment Income -TU Unit Trusts Investment Income- Zeneca Investment Income- RBS Investment Income- Unity Trust Managed Investment Income BM & CAM

3,960 £1,368 Astra Zeneca dividends in Sept 18

8,000

6,667

4,040

(2,627)

-

-

-

-

(51,058) Profit on Sale of Unquoted Investments

4,000

3,333

55,058 96,411

51,725

118,589 Unrealised gain as at end of Q3

215,000 179,167

(82,756)

Bank Interest Received

- - - - - - - -

- - - - - -

- - - - - -

- - - - - -

Misc Income- intercompany recharge

Gift Aid-GFTU Gift Aid- Albion Gift Aid-QGH

Customised Course Fees

Union Conference Building/ BGCM Grant/Arts Festival/Spon'ship/Project

6,875

6,875

(6,875)

-

-

-

Other Income

12,000

10,000

2,534

(7,466)

9,466

Extra Ordinary Income

-

-

Total income

585,200

520,083

466,379

(53,704)

118,821

Expenditure Staffing

31,301 Staff salaries have been split between GFTU & ET

Salary And NIC

156,607 130,506

125,306

(5,200)

Salary for shared Service

-

-

-

-

Pension

13,010

10,842

14,098

3,256

(1,088)

Redundancy & Severance

-

-

-

-

Staff Welfare

860

717

875

158

(15)

Essential Car user Allowance

1,828 2,000

1,523 1,667

3,750 1,259

2,227

(1,922)

Staff Travel and Subs

(408)

741

Staff Travel shared Service

-

-

-

-

GS Travel HOE Travel

1,500

1,250

1,843

593

(343)

-

- - -

-

-

Other employment costs Training and development

800

667

(667)

800

- -

-

-

Agency

1,194

1,194

(1,194) 69,965

Pensions Recovery Payments

70,000

58,333

35

(58,298)

Pension Scheme Cost

- -

- -

- -

- -

Pension prior year adjustment

Total

246,605

205,504

148,360

(57,145)

98,245

Premises Rent and Rates

300 250 800

250 208 667

497

247

(197)

Repair and maintenance

-

(208)

250

Utilities

1,285

618

(485)

Health and Safety

-

-

-

Insurance

500

417

564

147

(64)

Depreciation

7,500

6,250

3,897

(2,353)

3,603

(472) Nursery Fees

Cleaning

-

472

472

Total

9,350

7,792

6,715

(1,077)

2,635

Administration Stationery, Postage Courier & delivery cost Telephone & mobile

1,600

1,333

2,170

837

(570)

-

- -

-

700

583

(583)

700

Sage costs £4,614; Virgin Media £504. TSSA recharge £1,035 in Oct 18

IT, website, maintainence

4,000

3,333

7,479

4,146

(3,479)

Printing & Copying Office relocation

2,000

1,667

3,035

1,368

(1,035)

- -

- -

- -

Total

8,300

6,917

12,684

5,768

(4,384)

Management fees Executive Committee Expenses Conference expenses (BGCM/EC)

2,000

1,667

9,858

8,192

(7,858) 12,750

12,750

10,625

-

(10,625)

(6,272) BFAWU recharged in Aug for accommodation costs (-£2k)

Conference expenses (other)/Speakers

3,000

2,500

9,272

6,772

Accountancy and audit

8,500

7,083

19,502

12,419

(11,002) £6.8k in May for GFTU and Pension audit. £12k in July for 2 x Sturgess invoices for examining the Trust & Company's records.

Legal & Professional

10,000

8,333

3,600

(4,733)

6,400

Accruals W/O for Legal and Accountancy

Prior Year Adjustment

-

( 22,861 )

(22,861)

22,861

Investment management fee

60,000

50,000

-

(50,000)

60,000

PPF & Pension Regulator Levy (£30,831 in Sept 18. £3,676 recharged to PCS)

Pension scheme levy

5,500

4,583

28,827

24,243

(23,327)

Pension scheme audit and accounts Pension scheme legal & professional

5,000

4,167

-

(4,167) (11,468) (52,228)

5,000

17,301 Mercer invoices

35,000

29,167

17,699

Total

141,750

118,125

65,897

75,853

GFTU Management Accounts YTD Oct 2018

GFTU Budget Full Year 2018

Budget YTD Oct 18

Actual YTD Oct 18

Variance YTD Oct 18

Budget left to spend / achieve for the year

Notes

Programme and Event Gift Aid Payment/Grants

100,000

83,333 11,667

-

(83,333) (9,171) (4,167)

100,000

Affiliations, Donations, Subscriptions, Communications & Campaigning

14,000

2,495

11,505

5,000 4,000 2,000

4,167 3,333 1,667

-

5,000 2,334 2,000

Advertising and promotion

1,666 (1,668)

Room hire

-

(1,667)

(1,254) For The Many leaflets

Publicity leaflets Youth Festival History Festival

1,254 1,254

- - - - - - - -

- - - - - - -

- - - - - - -

Arts & Cultural Festival

Other events

E learning

Union Confenrance Building

Links with Universities

Bank charges

1,000

833

995

162

5

International Study Visit Poland £7.5k, Manifesto for Labour Law £615; £4.3k misposting - money owed from Pension Fund. Corrected in Nov 18.

Miscellaneous

500

417

12,612

12,195

(12,112)

P&L Sale of asset

- -

- -

-

- -

Total

126,500

105,417

19,022

(86,395)

107,478

Management recharge

Total Expenditures

532,505

443,754

252,677

(191,077)

Surplus/deficit before Capital Expenditure

52,695

76,329

213,702

137,373

GFTU

REVIEW OF ACCOUNTS AS AT 31 st OCTOBER 2018

Income:

There were no further affiliations in the period.

Accounts/Processing Services generated £3.7k revenue in the month of October.

A total of £990k was drawn down from the Managed Investment Fund in the month of October. £450k at the start of the month, primarily to pay the contractors Client Cert fee 4 and a further £540k later on in the month to cover the contractors 5 th Client Cert fee (due 6 th Nov) and to facilitate payment of GFTU and ET creditors. Income is -£53.7k behind YTD budget. This includes the unrealised gain on the managed fund investment as per the latest fund managers’ report of £96k. The original budgeted Managed Investment Income for 2018 was £215,000.

Expenses:

Recharges have been made where possible to offset legal and professional fees relating to the administration of the pension scheme.

Overall total expenses are £191k below the pro-rata budget for YTD Oct 18.

However, the following costs are anticipated before year end and must also be taken into consideration:-

Investment management fee

£50k £83k



Gift Aid



 Pension Scheme Audit, Accounts, Legal & Prof £16k  Pensions Recovery Payments £58k TOTAL £207k

This suggests expenditure will be in line with budget by the end of the financial year.

Budget

The original budget for the year was an estimated surplus of £52,695.

If expenditure continues at YTD levels, there will be an estimated underspend of £22k in the year ending 31.12.18. (£252,677 YTD / 10* 12 = £303,212 + £207,000 as detailed above = £510,212. Budget £532,505; Var +£22,293 [+£122,293 excl Gift Aid])

If income continues at YTD levels, there will be an estimated shortfall of -£79k.

(£269,341 + £197,038 YTD / 10 * 12 = £505,787. Budget £585,200; Var -£79,413 [-£195,106 excl. unrealised gain on investment]) Overall:- Income £505,787 less Expenditure £510,212 = -£4,425 DEFICIT [-£120,118 excluding unrealised gain; -£20,118 also excl. Gift Aid] GFTU must be in a surplus position at year end if it is to be able to make a Gift Aid payment to the Education Trust.

Investment:

Latest investment reports show balance in Managed Funds as at 01 October 2018 of £5,052,262. Drawdowns in the quarter totalled -£750k. There is a calculated gain of £96,411 which is shown as unrealised. Since this report, a further £540k has been drawn down from the investment, taking the balance to £4,512,262.

Bank:

Bank balance as at 31.10.18 is £48,287.19 (Nov 6 th Payroll run pending).

GFTU ET Balance Sheet

Year to Date Oct 2018

Fixed Assets

Office Equipment

1,239

Furniture and Fixtures

961

Investments

2,082,385

2,084,584

Current Assets Debtors

66,437

New Build

1,553,309

Intercompany (Hotel, Nursery & Albion)

783,295 472,152 173,476

Bank Account

VAT

3,048,668

Current Liabilities Creditors Short term

480,277

Intercompany (GFTU & Pension)

3,675,639

4,155,916

Current Assets less Current Liabilities:

-1,107,248

Total Assets less Current Liabilities:

977,336

Capital & Reserves Reserve

2,956,109

P & L Account

-1,978,772

977,336

ET Management Accounts YTD Oct 18

GFTU ET Full Year 2018

Budget YTD Oct 18

Budget left to spend for the year

Actual YTD Oct 18 Variance to Budget

Income source

Notes

Accounts Processing Services

- - - - - -

1,540.00

1,540.00

-

1,540.00

Recharge for services provided- QGH

- -

- -

- -

Contributions

Sponsorship/Commission Bank Interest Received

612.50

612.50

-

612.50

- - - -

- -

- -

Misc Income- intercompany recharge

Gift Aid-GFTU Gift Aid- Albion Gift Aid-QGH

100,000.00

83,333.33

-

83,333.33

100,000.00

-

-

-

-

Hotel rent Jan - May 18 @ £4k per month

48,000.00

40,000.00

20,000.00 12,000.00 43,352.73

-

20,000.00 12,000.00 26,686.06

28,000.00 12,000.00 23,352.73

Bad debt to write off £16k invoiced in Oct 18

Gift Aid-QGH Nursery Customised Course Fees

-

- -

20,000.00

16,666.67

Core Courses

- - -

- - -

- - -

- - -

Trade Union Management Programme Grant/Arts Festival/Spon'ship/Project

PCS £10k; QGH Rent 5 months Jun - Oct @ £4k

Other Income

12,000.00

10,000.00

34,809.00

24,809.00

-

22,809.00

Total income

180,000.00

150,000.00

112,314.23

-

37,685.77

67,685.77

Expenditure

Staffing Salary+ NIC

202,762.00 22,407.00

168,968.33 18,672.50

173,612.86 15,069.01

4,644.53 3,603.49

29,149.14

Pensions

-

7,337.99

Redundancy & Severance

-

- -

-

-

Staff Welfare

2,400.00 2,000.00 5,000.00 4,500.00

2,000.00 1,666.67 4,166.67 3,750.00

-

2,000.00

2,400.00

Staff Travel and Subs

2,222.99 1,125.00 4,650.70

556.32

-

222.99

No car user allowance for Feb 18

Essential Car user Allowance

-

3,041.67

3,875.00

GS Travel HOE Travel

900.70

-

150.70

-

-

-

-

Other employment costs- Agency

1,200.00 4,000.00

1,000.00 3,333.33

794.00

- -

206.00 420.53

406.00

Training and development

2,912.80

1,087.20

Agency

- -

- -

- -

- -

Pensions Recovery Payments

Staffing total

244,269.00

203,557.50

200,387.36

-

3,170.14

43,881.64

Premises Rent and Rates

1,500.00

1,250.00

-

-

1,250.00 5,440.99 2,682.86

1,500.00 5,399.32 3,216.19

Removal costs and storage

Repair and maintenance

250.00

208.33

5,649.32

-

Utilities

3,200.00

2,666.67

-

16.19

-

Health and Safety

-

- -

-

-

Insurance

2,000.00 18,000.00

1,666.67 15,000.00

- -

1,666.67 5,052.30

2,000.00 8,052.30

Depreciation

9,947.70

Premises total

24,950.00

20,791.67

15,580.83

-

5,210.84

9,369.17

Administration Stationery, Postage Courier & delivery cost Telephone & mobile IT, website, maintenance

5,500.00

4,583.33

5,030.52

447.19

469.48

-

-

-

-

5,000.00 6,000.00 1,500.00

4,166.67 5,000.00 1,250.00

3,931.98 7,299.60 4,933.38

-

234.69

1,068.02 1,299.60 3,433.38

2,299.60 3,683.38

- -

Printing & Copying Office relocation

-

-

-

-

Administration total

18,000.00

15,000.00

21,195.48

6,195.48

(3,195.48)

Management fees Trustees Expenses

3,000.00 8,000.00 2,000.00 10,000.00 5,000.00 2,000.00

2,500.00 6,666.67 1,666.67 8,333.33 4,166.67 1,666.67

2,279.55 23,814.41

-

220.45

720.45

Yarnfield Weekend Package £24.6k, Lanyards £582

Conference expenses (BGCM/EC) Conference expenses (other)/Speakers

17,147.74 1,666.67

-

15,814.41 2,000.00 1,670.00 5,000.00 2,000.00

-

- - - -

Accrual at £833 per month

Accountancy and audit

8,330.00

3.33

Legal & Profession DDA Compliance

- - -

4,166.67 1,666.67

Investment management fee

-

-

-

Management fees total

30,000.00

25,000.00

34,423.96

9,423.96

(4,423.96)

Programme and Events Gift Aid Payment/Grants

5,000.00

4,166.67

-

-

4,166.67

5,000.00

Children & Young Peoples Prog, Learning Pool £6.5k and £20k Donation ShoutOut

Affiliations, Donations, Subscriptions, Communications & Campaigning

8,000.00

6,666.67

31,490.47

24,823.80

-

23,490.47

-

-

-

-

Advertising and promotion

2,500.00

2,083.33

7,332.17

5,248.84

-

4,832.17

Room hire

-

- -

-

-

Publicity leaflets

7,000.00 2,500.00 1,250.00 35,000.00 7,000.00

5,833.33 2,083.33 1,041.67 29,166.67 5,833.33

- - - -

5,833.33 1,708.86 1,041.67 7,703.91

7,000.00 2,125.53 1,250.00 13,537.24

Educational officers' meeting

374.47

Tutors' meeting

-

Venezuela & Poland Visits

International Study Visit

21,462.76 6,368.25

Youth Festival History Festival

534.92

631.75

-

- - - - - - -

-

-

Arts & Cultural Festival

10,000.00

8,333.33

-

8,333.33

10,000.00

ESNA Visit Other events

-

-

-

10,000.00 3,000.00 8,000.00

8,333.33 2,500.00 6,666.67

594.85

- - -

7,738.48 2,500.00 6,666.67

9,405.15 3,000.00 8,000.00

Open College Network Panel Fees+Membership

Workable books

Trade Union Management Programme

- - -

- -

- -

Links with Universities

-

Core Course -Student hotel & Travel

9,186.18 11,748.91

9,186.18 3,415.58 3,351.99 15,887.57 57,447.22 4,395.79 2,669.71 10,738.29

- -

9,186.18 1,748.91 4,185.32 14,554.24 57,447.22 4,062.46 3,503.04 10,404.96

Northern College Invoices

Core Course - Tutor Fees

10,000.00 5,000.00 8,000.00

8,333.33 4,166.67 6,666.67 1,666.67 4,166.67 1,666.67 -

Core Course - Tutor Travel & Sub

814.68

-

Core Course- Resource, books, printing, certificates Customised Course -Student hotel & Travel

22,554.24 57,447.22 6,062.46 1,496.96 12,404.96

- - -

Customised Course- Tutor fees

2,000.00 5,000.00 2,000.00

£10,430 hotel costs in Oct 18

Customised Course- Tutor Travel and sub

-

Customised Course- Resource, books, printing, cert.

- -

Bank charges

200.00

166.67

251.68

85.01

51.68

University of Wolverhampton receipt - Edda; ILM fees; Irrecoverable VAT (due to Partial Exemption)

Miscellaneous

500.00

416.67

77,295.94

76,879.27

-

76,795.94

Programme and Event total

131,950.00

109,958.33

266,886.20

156,927.87

(134,936.20)

£396k in Oct for Client Cert Fee 4

1,552,612.60 2,091,086.43

New Build

Total Expenditures

449,169.00

374,307.50

1,716,778.93

Surplus/deficit before Capital Expenditure

(269,169.00)

(224,307.50)

(1,978,772.20)

-

1,754,464.70

GFTU ET

REVIEW OF ACCOUNTS AS AT 31 st OCTOBER 2018

Income:

Customised Courses held in May 18 were invoiced in October 18, amounting to £16k. Courses held from June onwards are still to be invoiced. Total income from customised courses to date is £43,353. Total spent on customised courses to date is £77,412. Income is circa £38k behind budget for the year. Any Gift Aid income would not be received until year end and would be dependent upon GFTU and QGH showing a surplus at this time. Budgeted Gift Aid income is £148k, being £100k from GFTU and £48k from QGH. If the New Build costs are excluded (£1,552k as at 31.10.18), overall YTD expenditure is adverse to budget by circa £164k. The main areas of overspend are:-  Conference expenses include £24k Yarnfield weekend package  Affiliations, Donations and Subscriptions includes £6,500 for “Learning Pool” and 2 invoices at £10,000 each for Shout Out  Repairs and Maintenance includes removal and storage costs from April invoices (Nursery closure) at £5.5k  Total amount spent on Core Courses so far is £35,118 v annual budget £23,000  Total amount spent on Customised Courses so far is £77,412 v annual budget £9,000  Non-reclaimable VAT due to partial exemption (this is a sizeable value now the building work on the GFTU office is well underway) – To confirm with Sturgess Hutchinson. Expenses:

Advertising and promotion is for the Win:Win and some Education programmes.

Other event charges are for Vietnamese trip and the International Study Visit costs includes £2k for Venezuela trip and £19.5k for Poland trip.

Northern College

YTD spend with Northern College as at 31.10.18 is £31,430. This includes invoices totalling £12,274 in August 18 for courses held in June/July. Discussions are ongoing as to the burden of these costs moving forwards.

Budget

The original budget for the year excluding the new build was an estimated loss of -£269k.

If expenditure continues at YTD levels, there will be an estimated overspend of £197k in the year ending 31.12.18.

If income continues at YTD levels, there will be an estimated shortfall of -£45k.

Given the YTD position, GFTU ET is unlikely to achieve the original budget of -£269k, even if the year- end Gift Aid payments are forthcoming. Gift Aid payments can only be made if the organisations are showing a profit at year end. Given the YTD results for the Hotel, it should not be assumed that this gift aid will be available.

Bank:

Cash flow remains under pressure. The fifth client cert fees were paid in early November totalling £449k (gross), this took into account a deduction of £10k fines for delays against plan. The next client cert fee invoice is expected in the next few weeks at an estimated value of £279k.

Consideration is being given to options available regarding the investment portfolio.

A key focus of the Finance team in the run in to year end must be to ensure as many customised courses are invoiced as possible.

Bank balance as at 31/10/18 is £471,724.06 (Tomlinsons invoice £448,941.54 payment pending).

Hotel Sales 2015-2018

250,000.00

200,000.00

150,000.00

2015 2016 2017 2018

100,000.00

50,000.00

-

January

February

March

April

May

June

July

August

September

October

November

December

January

February

March

April

May

June

July

August

September 142,373.92 122,170.00 147,266.32

October

November December

Total

2015 2016 2017 2018

71,507.97 65,457.00 69,680.00 84,943.00 15,263.00

83,912.22 78,246.12 88,225.00 107,994.10 19,769.10

101,136.75 104,533.56 86,334.00 107,823.00 21,489.00

90,479.69 87,556.48 130,695.90 117,886.00 12,809.90

144,564.76 112,411.00 128,433.00 145,462.00 17,029.00

125,722.33 104,985.00 130,683.21 157,549.62 26,866.41

93,968.18 124,536.00 155,762.51 147,122.89

148,952.40 115,397.00 146,436.32 197,097.23 50,660.91

116,747.35 93,994.20 120,711.68

98,422.34 107,437.55 101,783.25

123,528.38 128,105.29 125,646.82

1,341,316.29 1,244,829.20 1,431,658.01 1,065,877.84 186,828.81

Variance

-

-

-

-

-

8,639.62

-

147,266.32

120,711.68

101,783.25

125,646.82

Hotel Budget V Actual Net Profit by Month

January (43,625)

February (23,524)

March

April

May

June

July

August September

October November December

Total

2018 Actual Net Profit

(39,677)

(2,063)

11,160

11,191

10,860

11,921

0

0

0

0

(63,757)

2018 Budget Net Profit

(22,831)

(21,738)

2,340

22,847

3,947

11,146

12,521

12,319

9,874

5,704

(6,498)

929

30,557 94,315

Variance

20,794

1,786

42,017

24,910

(7,213)

(45)

1,661

398

9,874

5,704

(6,498)

929

2018 Hotel Budget vs Actual Net Profit/(Loss)

30,000

20,000

10,000

0

January

February

March

April

May

June

July

August

September

October

November

December

2018 Actual Net Profit

(10,000)

2018 Budget Net Profit

(20,000)

(30,000)

(40,000)

(50,000)

Budget v ACTUAL Sales

January

February

March

April

May

June

July

August

September

October

November December

Total

2018 Budget 2018 Sales

95,226 84,943

107,035 107,994

128,976 107,823 (21,153)

161,453 117,886 (43,567)

150,187 145,462 (4,725)

162,069 157,550 (4,520)

170,466 147,123 (23,343)

182,550 197,097 14,547

1,157,961 1,065,878 (92,083)

Variance

(10,283)

959

0

0

0

0

2018 Hotel Sales vs Budget

250,000

0

0

200,000

1,065,878

(92,083)

150,000

2018 Budget 2018 Sales

100,000

50,000

0

January

February

March

April

May

June

July

August

September

October

November

December