REPORT OF THE INDEPENDENT AUDITORS

RMT helpline 0800 376 3706 :: november/december 2013 :: RMTnews 27 We have audited the accounts of the National Union of Rail, Maritime and Transport Workers for the year ended 31 December 2012, set out on pages 15 to 39. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 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 THE UNION’S COUNCIL OF EXECUTIVES AND AUDITORS As explained more fully in the Statement of Responsibilities of the Council of Executives on page 13, the Union’s Council of Executives is responsible for the preparation of accounts which give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE ACCOUNTS An audit involves obtaining evidence about the amounts and disclosures in the accounts sufficient to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Union’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Union’s Council of Executives; and the overall presentation of the accounts. In addition, we read all the financial and non-financial information in the Report of the General Secretary to identify material inconsistencies with the audited accounts. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON ACCOUNTS In our opinion the accounts give a true and fair view of the state of the Union’s affairs as at 31 December 2012 and of its income and expenditure for the year then ended. Matters on which we are required to report by exception We are required by the Trade Union and Labour Relations (Consolidation) Act 1992 (Amended) to report to you by exception in respect of the following matters if, in our opinion: - A satisfactory system of control over transactions has not been maintained. - The Union has not kept proper accounting records. - The accounts are not in agreement with the books of account. - We have not received all the information and explanations we need for our audit. We have nothing to report to you in respect of the above matters. H W FISHER & COMPANY Chartered Accountants Statutory Auditor Acre House, 11 – 15 William Road, London NW1 3ER, United Kingdom Dated: 20 May 2013 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 2012: SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FULL ACCOUNTS Summary income and expenditure accounts for the year ended 31 December 2012: General Fund and Orphan Fund 2010 2009 £'000 £'000 Subscription income 13,923 13,027 Operating expenditure (14,769) (14,981) Operating deficit before investment operations (846) (1,954) Income from investment operations and donations 2,655 2,157 Operating surplus after investment operations 1,809 203 Other non-operating income and expenditure 36 438 Surplus for the year 1,845 641 Political Fund 2010 2009 £'000 £'000 Subscription income 241 236 Investment income 2 3 Total income 243 239 Total expenditure (244) (289) Deficit for the year (1) (50) SUMMARY OF SALARIES AND BENEFITS PROVIDED Name Position Details Amount R Crow General Secretary Salary £89,805 Pension contributions £34,429 M Cash Assistant General Salary £69,510 Secretary Pension contributions £18,634 P Sikorski Assistant General Salary £45,967 Secretary (outgoing) Pension contributions £7,956 S Hedley Assistant General Salary £19,587 Secretary (incoming) Pension contributions £5,247 A Gordon President Attendance, lodging allowance and reimbursed expenses £48,745 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 Assistant General Secretaries, 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 and reimbursed expenses paid to the Council of Executives General Grades salary + expenses - allowances Name Amount Name Amount J Booth £ 44,349 D Letcher £ 54,148 T Butler £ 34,066 P March £ 52,928 D Connor £ 56,379 D Marr £ 43,283 A Gordon £ 48,745 K Morrison £ 58,667 O Herbert £ 55,629 M Thompson £ 4,832 S Hoyle £ 50,043 M Sargent £ 44,353 D Ireland £ 47,928 P Walker £ 8,815 Shipping Grades Name Amount Name Amount M Dunning £ 8,539 K Lingwood £ 3,569 A Gordon £ 18,214 D Procter £ 11,759 J Laing £ 4,252* In addition, the Union provides accommodation while on Union business 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.”