Financial Report

Financial statement to members RMT news – Financial statement to members 2003 2002 £'000 £'000 Name Position Details Amount B Crow General Secretary Salary and expenses £63,287 Pension contributions £3,315 J Cogger President Attendance and lodging £11,864 The members of the Council of Executives do not receive any benefits but do receive attendance and lodging allowances which are set out below. The General Secretary, the President and the members of the Council of Executives are reimbursed for any expenditure incurred by them in the performance of their duties on behalf of the Union. Summary of Attendance and Lodging Allowances paid to the Council of Executives General Grades Name Amount Name Amount A Gordon £37,380 P Cox £33,095 D Gott £37,691 R Knight £31,834 Joe Gray £32,062 W Devlin £32,031 K Sharpe £36,650 A Grundy £28.592 Jim Gray £33,670 Shipping Grades Name Amount Name Amount M Carden £9,114 P Hall £9.946 M Dunning £12,384 S Hyslop £9,514 Subscription income 6,786 6,426 Operating expenditure (7,734) (7,595) Operating deficit before investment ops (948) (1,169) Income from investment operations 3,791 2,578 Operating surplus after investment operations 2,843 1,409 Other non-operating expenditure (1,179) (85) Surplus for the year 1,664 1,324 Political Fund 2003 2002 £'000 £'000 Subscription income 209 189 Other income 16 15 Total income 225 204 Total expenditure (151) (137) Surplus for the year 74 67 Summary income and expenditure accounts for the year ended 31 December 2003: General Fund and Orphan Fund SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FULL ACCOUNTS SUMMARY OF SALARIES AND BENEFITS PROVIDED REPORT OF THE INDEPENDENT AUDITORS Set out below is the report of the independent auditors to the members as contained in the accounts of the Union for the year ended 31 December 2003: This report is made solely to the members of the Union as a body. Our audit work has been undertaken so that we might state to the members of the Union those matters 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 any- one other than the Union and the members of the Union as a body, for our audit work, for this report, or for the opinion we have formed. Respective responsibilities of the Union’s Council of Executives and auditors As described on page 8, the Union's Council of Executives is responsible for the preparation of the accounts in accordance with applicable law and United Kingdom Accounting Standards. Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the accounts give a true and fair view. We also report to you if, in our opinion, the Union has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit. We read other information contained in the accounts and consider whether it is consistent with the audited accounts. This other information comprises only the Report of the General Secretary. We consider the implications for our report if we become aware of any apparent mis-statements or material inconsistencies with the accounts. Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence rele- vant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made in the preparation of the accounts, and of whether the accounting policies are appropriate to the Union's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts 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 accounts. Fundamental uncertainty In forming our opinion, we have considered the adequacy of the disclosures made in note 18 to the accounts concerning the possible existence of assets held by Branches and Regional Councils, which have not been notified to the head office of the Union and have therefore not been included within the accounts of the Union. Our audit opinion is not qualified in this respect. Opinion In our opinion the accounts give a true and fair view of the state of affairs of the Union as at 31 December 2003 and of its transactions for the year then ended. H W FISHER & COMPANY Chartered Accountants, Registered Auditor, Acre House, 11-15 William Road, LONDON NW1 3ER Dated :6 May 2004 We are required by the Trade Union and Labour Relations (Consolidation) Act 1992 (amended) to include the following declaration in this statement to all members. The wording is as prescribed by the Act. "A member who is concerned that some irregularity may be occurring, or have occurred, in the conduct of the financial affairs of the union may take steps with a view to investigating further, obtaining clarification and, if necessary, securing regularisation of that conduct. The member may raise any such concerns with such one or more of the following as it seems appropriate to raise it with: the officials of the union, the trustees of the property of the union, the auditor or auditors of the union, the Certification Officer (who is an independent officer appointed by the Secretary of State) and the police. Where a member believes that 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 contem- plates bringing civil proceedings against the union or responsible officials or trustees, he should consider obtaining independent legal advice." 26