FINANCIAL STATEMENT

september 2005 :: RMTnews 27 SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FULL ACCOUNTS Summary income and expenditure accounts for the year ended 31 December 2004: GENERAL FUND AND ORPHAN FUND 2004 2003 £'000 £'000 Subscription income 7,926 6,786 Operating expenditure (8,083) (7,609) Operating deficit before investment operations (157) (823) Income from investment operations and donations 1,237 3,666 Operating surplus after investment operations 1,080 2,843 Other non-operating income/(expenditure) 9 (1,179) Surplus for the year 1,089 1,664 POLITICAL FUND 2004 2003 £'000 £'000 Subscription income 191 209 Investment income - 16 Other income 1 - Total income 192 225 Total expenditure (225) (151) (Deficit)/surplus for the year (33) 74 SUMMARY OF SALARIES AND BENEFITS PROVIDED Name Position Details Amount R Crow General Secretary Salary and expenses £75,975 Pension contributions £18,205 T Donaghey President Attendance and £32,403 lodging allowances 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 P Pinkney £38,720 P Cox £31,462 D Collinson £37,866 R Knight £32,011 Joe Gray £35,440 W Devlin £31,519 A Lister £34,158 A Grundy £32,377 Jim Gray £35,277 M Facey £39,271 Shipping Grades Name Amount Name Amount M Carden £9,547 P Hall £8,078 M Dunning £11,086 S Hyslop £9,007 We have audited the accounts of the National Union of Rail, Maritime and Transport Workers for the year ended 31 December 2004, set out on pages 10 to 31. These have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets, and the accounting policies set out on page 16. This report is made solely to the Union’s members, as a body. Our audit work has been undertaken so that we might state to the Union’s members 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 anyone other than the Union and the Union’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors 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 Annual Report and consider whether it is consistent with the audited accounts. This other information comprises only the Honorary Treasurers’ Report. We consider the implications for our report if we become aware of any apparent misstatements 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 relevant 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 the information in the accounts. Fundamental Uncertainty In forming our opinion, we have considered the adequacy of the disclosures made in note 17 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 the Union as at 31 December 2004 and of its transactions for the year then ended. H W FISHER & COMP H W FISHER & COMPANY ANY Chartered Accountants, Registered Auditor Acre House, 11 – 15 William Road London NW1 3ER, United Kingdom Dated: 9 May 2005 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 2004: REPORT OF THE INDEPENDENT AUDITORS 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 contemplates bringing civil proceedings against the union or responsible officials or trustees, he should consider obtaining independent legal advice.” Financial statement to members as required under the Trade Union and Labour Relations (consolidation) Act 1992 (amended)