REPORT OF THE INDEPENDENT AUDITORS

RMT helpline 0800 376 3706 :: november/december 2021 :: RMTnews 26 OPINION We have audited the financial statements of the National Union of Rail, Maritime & Transport Workers [“The Union”] for the year ended 31 December 2020 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 2020 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 In auditing the financial statements, we have concluded that the Executive Committee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Union's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the National Executive Committee with respect to going concern are described in the relevant sections of this report. 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: As part of our planning process: • We enquired of management the systems and controls the union has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The union did not inform us of any known, suspected or alleged fraud. • We obtained an understanding of the legal and regulatory frameworks applicable to the union. We determined that the following were most relevant: FRS 102 and 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 2020: SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FULL ACCOUNTS Summary income and expenditure accounts for the year ended 31 December 2020: General Fund and Orphan Fund 2020 2019 £'000 £'000 Subscription income 18,101 17,344 Operating expenditure (17,480) (19,321) Operating result 621 (1,977) Other income/(expenditure) (1,454) 3,840 Result for the year (833) 1,863 Other comprehensive income (3,026) 5,732 Comprehensive result for the year (3,859) 7,595 Political Fund 2020 2019 £'000 £'000 Subscription income 239 233 Operating expenditure (135) (115) Operating result 104 118 Other income 9 26 Result and comprehensive result for the year 113 144 SUMMARY OF SALARIES AND BENEFITS PROVIDED Name Position Details Amount M Cash General Secretary Salary £109,542 Pension contributions £38,370 Other benefits £1,432 S Hedley Assistant General Salary £61,720 Secretary Pension contributions £21,610 Other benefits £2,945 M Lynch Assistant General Salary £85,282 Secretary Pension contributions £22,175 M Rogers President Attendance, lodging allowance and £57,082 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 I Allen £56,381 D Marr £53,528 J Armstrong £56,426 P McDonnell £57,279 P Burton £54,094 W Moore £1,256 M Craig* £174 K L Morrison £1,256 L Gaynor* £1,738 M Nothard* £55,870 A Gordon £58,934 S Nott* £55,081 MJ Herbison £1,286 B Rawcliffe* £55,353 P Howes* £54,623 M Rodgers* £57,082 G Jackson* £56,341 L Rundle* £54,337 K Jewell* £56,011 S Shaw £1,256 J Kirby £57,468 J Wood £56,443 *In addition, the Union provides accommodation while on Union business