REPORT 0F THE INDEPENDENT AUDITORS

RMT helpline 0800 376 3706 :: february 2021 :: RMTnews 22 OPINION We have audited the financial statements of the National Union of Rail, Maritime & Transport Workers [“The Union”] for the year ended 31 December 2018 which comprise the Income and Expenditure account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including a summary of the significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - Give a true and fair view of the state of the Union's affairs as at 31 December 2018 and of its income and expenditure for the year then ended; and - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Union in accordance with the ethical requirements that are relevant to the audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN We have nothing to report in respect of the following matters in relation to which the ISA’s (UK) require us to report to you where: - The National Executive Committee’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - The National Executive Committee has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Union’s ability to continue to adopt a going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. OTHER INFORMATION The National Executive Committee is responsible for the other information. The other information comprises the information included in the Report of the General Secretary and schedules attached to the financial statements other than the financial statements and our auditors report thereon. Our opinion of the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION The Trade Union and Labour Relations (Consolidation) Act 1992 (Amended) requires us to report to you if, in our opinion: - A satisfactory system of control over transactions has not been maintained; or - The Union has not kept proper accounting records; or - The financial statements are not in agreement with the books of account; or - We have not received all the information and explanations we need for our audit. We have nothing to report in this regard. RESPONSIBILITIES OF THE NATIONAL EXECUTIVE COMMITTEE As explained more fully in the Statement of Responsibilities of the National Executive Committee, the National Executive Committee is responsible for the preparation of financial statements and being satisfied that they give a true and fair view, and for such internal control as the National Executive Committee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the National Executive Committee is responsible for assessing the Union's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the National Executive Committee either intends to liquidate the Union or to cease operations, or have no realistic alternative but to do so. AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in according with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 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. H W FISHER & COMPANY Chartered Accountants, Statutory Auditor Date: 21 October 2020 Acre House, 11 - 15 William Road, London NW1 3ER, United Kingdom 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 2019: SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FULL ACCOUNTS Summary income and expenditure accounts for the year ended 31 December 2018: General Fund and Orphan Fund 2019 2018 £'000 £'000 Contribution income 17,344 16,626 Operating expenditure (19,3231) (20,808) Operating result (1,977) (4,182) Other income 3,840 105 Result for the year 1,863 (4,077) Other comprehensive income 5,732 1,180 Comprehensive result for the year 7,595 (2,897) Political Fund 2019 2018 £'000 £'000 Contribution income 233 238 Operating expenditure (115) (153) Operating result 118 85 Other income 26 17 Result and comprehensive result for the year 144 102 SUMMARY OF SALARIES AND BENEFITS PROVIDED Name Position Details Amount M Cash General Secretary Salary £107,055 Pension contributions £37,311 Other benefits £8,437 S Hedley Assistant General Salary £60,297 Secretary Pension contributions £21,013 Other benefits £9,215 M Lynch Assistant General Salary £83,335 Secretary Pension contributions £21,553 Other benefits £1,566 S Hoyle President Attendance, lodging allowance and £64,665 reimbursed expenses The members of the National Executive Committee 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 National Executive Committee 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 National Executive Committee Name Amount Name Amount M Armstrong* £56,554 D Marr £53,640 P Burton £54,707 M Nothard* £58,825 M Craig* £29,005 S Nott* £60,279 L Gaynor* £19,961 B Rawcliffe* £56,389 P Howes* £57,551 P Reilly* £56,416 G Jackson* £58,835 M Rodgers* £64,665 K Jewell* £40,495 L Rundle* £56,375 G Kite* £57,173 P Shaw* £25,805 A Littlechild £53,517 *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.”