EC Meeting November 2018

General Secretary’s Report.

November 2018

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Finance and Budgets.

1.1 The EC intended to leave as close to £1m in the main GFTU account after the new build. With some decline in the money markets and a start of year dip in the stock markets, together with unforeseen additional expenditure on the build, this will not be so possible. The current projection is around £930k. 1.2 Even with the £1m remaining in the GFTU account and with the hotel achieving its income still be a shortfall between the affiliation income and the required expenditure. While the GFTU is investing all its eggs in one basket post build this does not remain enough to develop further. We have to increase income to maintain a high quality and extensive level of education and servicing. 1.3 To achieve this two things are necessary. The Win win project must start to work and generate new income streams and more significantly we need to explore the potential for new education partnerships and funding. 1.4 In relation to the former a detailed report of uptake on Win Win should be presented to the next EC. 1.5 In relation to the latter, I propose that we do not immediately fill the Education Officer’s post. Our current programme can be administered and managed. In the interim we should explore the appointment on a contract for services basis of an expert in FE and HE funding to produce a long term funding strategy for the Trust. This should be managed to cost less than the equivalent of the Education Officer’s salary and to report as soon as possible. I have identified some individuals who could tender for this work. In any event we need to progress with such discussions. 1.6 I have asked for a report from our Finance Advisor on whether we should take all of our money out of our investments now and place it in our current account. 1.7 I have asked our Finance Advisor to investigate the idea of moving our investments to a new company that would then lend us 50% against the remaining new build costs. 1.9 The Hotel Directors considered the hotel budgets very carefully and requested some amendments. The Hotel Directors welcomed a new director Steve Orchard to the meeting. A revised budget is attached. 1.10 The new Senior Finance Officer Claire Smith has very helpfully taken on a number of reports following the absence of the Head of Finance. This has included new budget projections and management accounts. 1.8 Reports on these two items are awaited.

1.11

VAT returns on the new build have been promptly received from the HMRC.

1.12 The Pensions Trust meets in early December and copies of the latest investment report is attached. A factor review has been undertaken by Mercers and we await an update. Our first

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