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Annual financial statement
Annual financial statement
The Trade Union and Labour Relations (Consolidation) Act 1992 requires unions to provide members with an annual statement containing financial information summarised from the annual return (AR 21) to the certification officer for trade unions. The required information for the year ending 31 December 2009 is set out below. Full financial statements for the union are available from the union accountant at head office.
Summary extract from the annual return
General fund This meets the costs of providing benefits and services to members or groups of members as entitlements.
It funds the day-to-day running costs of the union, including property, equipment, vehicles, materials and staffing.
Subscription income shown is net of local fees. Other income derives from rent, commissions, advertising and sales.
Sustentation fund This is regulated by union rules. It meets costs incurred in industrial action and other campaigns to promote and protect the pay and conditions of members. Income includes 2 per cent of national subscription income.
Legacy fund This fund is managed in conjunction with the Teacher Support Network.
Branches fund Entries for this fund are the consolidated income and expenditure totals of all the union’s divisions and associations. Income is through local fee determined at local level, together with other income generated by division or association sources and grants from the national union. Expenditure within national and local rules is determined by divisions and associations themselves.
Income
General fund
Members' subscriptions £27,040,927
Investment income £1,117,833
Other income £851,155
Total income £29,009,915
Total expenditure (£24,312,422)
Balance income/expenditure £4,697,493
Interfund transfer (£883,077)
Surplus (deficit) £3,814,416
Sustentation fund
Members' subscriptions £
275,821
Investment income £45,613
Other income £339,836
Total income £661,270
Total expenditure (£173,179)
Balance income/expenditure (£488,091)
Interfund transfer –
Surplus (deficit) £488,091
International Development Fund
Members' subscriptions £265,020
Investment income –
Other income –
Total income £265,020
Total expenditure (£112,354)
Balance income/expenditure £152,666
Interfund transfer –
Surplus (deficit) £152,666
Pensions reserve
Members' subscriptions –
Other income £1,717,000
Total income £1,717,000
Total expenditure
(£1,902,000)
Balance income/expenditure (£185,000)
Interfund transfer £581,000
Surplus (deficit) £396,000
Legacy fund Members' subscriptions – Investment income £7 Other income – Total income £7 Total expenditure – Balance income/expenditure £7 Interfund transfer – Surplus (deficit) £7
Branches fund
Members' subscriptions £
3,318,803
Investment income £
37,824
Other income £23,002
Total income £3,379,629
Total expenditure (£3,746,328)
Balance income/expenditure (£366,699)
Interfund transfer £302,077
Surplus (deficit) (£64,622)
All funds except political
Members' subscriptions £
30,900,571
Investment income £
1,201,277
Other income £2,930,993
Total income £35,032,841
Total expenditure (£30,246,283)
Balance income/expenditure (£4,786,558)
Interfund transfer –
Surplus (deficit) (£4,786,558)
Political fund
Members' subscriptions £
Investment income –
Other income –
Total income £356,030
Total expenditure (£54,764)
Balance income/expenditure £301,266
Interfund transfer –
Surplus (deficit) £301,266
Total funds Members' subscriptions £
Investment income £1,201,277
Other income £2,930,993
Total income £35,388,871
Total expenditure (£30,301,047)
Balance income/expenditure £5,087,824
Interfund transfer –
Surplus (deficit) £5,087,824
Statement
The Trade Union & Labour Relations (Consolidation) Act 1992, as amended by the Employment Relations Act 1999, requires that the following statement is included in this Annual Statement to members:
A member who is concerned that some irregularity may be occurring, or have occurred, in the conduct of the union’s financial affairs may take steps to investigate further, obtaining clarification and, if necessary, securing regularisation of that conduct.
The member may raise any such concern with one or more of the following: the officials of the union; the trustees of the property of the union; the auditor or auditors of the union; the certification officer (an independent officer appointed by the Secretary of State) and the police.
Where a member believes the financial affairs of the union have been or are being conducted in breach of the law or in breach of rules of the union, and contemplates bringing civil proceedings against the union or responsible officials or trustees, he or she should consider obtaining independent legal advice.
Auditor’s report
On 28 May 2010 Knox Cropper, chartered accountants and registered auditors, reported on the AR 21 as follows:
We have audited the financial statements for the National Union of Teachers for the year ended 31 December 2009, which comprises six fund accounts, the balance sheet and the related notes.
This report is made solely to the union, as a body, in accordance with the union’s rules and relevant legislation. Our audit has been undertaken so that we may state to the union those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the union as a body, for our audit work, for this report or for the opinions we have formed.
Respective responsibilities of the NUT executive and auditors
The executive’s responsibilities for preparing the annual report and financial statements in accordance with applicable law and UK accounting standards are set out in the Statement of National Executive Committee Responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and international standards.
We report to you our opinion as to whether the financial statements give a true and fair view. We also report to you if, in our opinion, the union has not kept proper accounting records, proper returns have not been received from branches, or if we have not received all the information and explanations we require for our audit.
We read other information contained in the AR 21, and consider whether it is consistent with the audited financial statements. This other information consists only of the information disclosed on pages 1 and 2 of the AR 21. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to other information.
Basis of opinion
We conducted our audit inaccordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the executive in the preparation of the financial statements, and of whether the accounting policies are appropriate to the union’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit to obtain all the information and explanations we considered necessary to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of the union’s affairs as at 31 December 2009 and of its results for the year then ended and have been properly prepared in accordance with UK accountancy standards and the Trade Union & Labour Relations (Consolidation) Act 1992.
General secretary
Gross salary £94,374
Employer NI contributions £10,0566
Employer superannuation £22,462
Total £126,892
Executive honoraria and IT grants
Helen Andrews £625, No IT grant
Lesley Auger £625, none
Peter Bevis £625, £535 = £1,160
Christopher Blakey £625, £719 = £1,344
David Brinson £625, £331 = £956
Dominic Byrne £625, none
Kevin Courtney £625, £100 = £725
Hazel Danson £625, none
Angela Davies £625, £472 = £1,097
Julie Davies £625, £1,000 = £1,625
Kendra Deacon £625, £371 = £996
Neil Foden £625, none
Nina Franklin £625, none
Barrie Frost £625, none
Keith Gardiner £625, none
Baljeet Ghale £625, none
Jerry Glazier £625, none
Gill Goodswen £625, none
Nick Grant £625, none
Ian Grayson £625, £277 = £902
William Greenshields £625, £808 = £1,433
David Harvey £625, none
John Holmes £625, none
Christine Hood £625, none
Max Hyde £625, £873 = £1,498
Goronwy Jones £625, none
Simon Jones £2,035 (includes child care allowance of £1,410), none
Alex Kenny £625, none
Roger King £625, none
Michael Lerry £625, none
David Lyons £625, none
Julie Lyon-Taylor £625, none
Judy Moorhouse £625, £995 = £1,620
Ian Murch £625, none
Patrick Murphy £625, none
Veronica Peppiatt £625, £1,000 = £1,650
Martin Reed £625, none
Edward Ritson £625, £308 = £933
Jane Rudon £625, none
Kenneth Rustidge £625, none
Alan Rutter £625, none
Anthony Tonks £625, £192 = £817
Examiner of accounts Hilary Bills £625, none
Totals Honoraria: £27,660 IT: £7,981 Sum: £35,641
All enquiries about the statement of accounts should be addressed to: Union Accountant, NUT, Hamilton House, Mabledon Place, London WC1H 9BD.