EC Meeting November 2018

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

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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.