GFTU BGCM 2017

FINANCES

1. The GFTU has transferred its investment portfolio from Credit Suisse to two investment managers, Brook MacDonald and City Asset Management chosen after tender. The performance has improved in line with general improvements in equity markets. Performance reporting arrangements have improved. 2. The accounts of the General Federation of Trade Unions for 2015 and 2016 have been approved by the Executive Committee. 3. The accounts of the Pensions Scheme have been prepared and will be considered by the Trustees at their next meeting. 4. The accounts of the Educational Trust have been prepared and will be considered by the Trustees at their next meeting. 5. The accounts of the GFTU ET Trading Company and Albion Education and Training Ltd will be considered at their next meeting. 6. A new professionally organised finance team has been organised which in addition to strengthening the GFTU’s own financial management enables us to provide financial administration, accounting and auditing to other partners and trade unions. Already this facility has been taken up under service level agreements by three other parties. 7. New financial procedures, systems and policies have been adopted throughout. 8. A Finance and General Purposes sub-committee of the Executive Committee monitors the finances in detail between EC meetings and takes necessary external professional advice.. 9. Management accounts are produced monthly, key performance indicator records are monitored bi-weekly, budgets are set and performance against budget is assessed monthly. 10. The Executive Committee has agreed to focus investment plans and due diligence at this stage on the expansion of the Quorn Grange site. This plan includes new houses for rent, a new double sized nursery facility, and 24 new rooms for the hotel. 11. Three business plans for each element of the plan have been considered by the EC and subjected to external professional scrutiny. A valuation of the planned project has been obtained, a cash flow projection and a new build time line.

12. Planning permission for the project was granted in February 2017. 13. Affiliates are encouraged to make the most and best possible use of Quorn Grange Hotel. 14. The GFTU’s strategy has been to ask the Educational Trust to become more self-sufficient and reliant and to consider new ways of raising revenues consistent with our objectives and ethics. A range of new services with commission and benefit to the Trust have consequently been introduced alongside the capacity to run union financial work and training at cost. 15. We have returned a better financial picture over the last two years than for some time. 16. The GFTU will be seeking to generate capital for its new build at Quorn from a combination of resources from its own reserves, commercial loans, partnership arrangements with affiliates and joint ventures. We see this as a co-operative project.

Finances | Page 29