EC Meeting November 2018

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.