REPORT OF THE AUDITORS

RMT helpline 0800 376 3706 :: november/december 2022 :: RMTnews 28 OPINION We have audited the financial statements of the National Union of Rail, Maritime & Transport Workers [“The Union”] for the year ended 31 December 2021 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 2021 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 National 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 other information comprises the information included in the Annual Report other than the financial statements and our auditors report thereon. The National Executive Committee is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 We have nothing to report in respect of the following matters where 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. 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 are 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 intend 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 to 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 mostly 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 the Trade Union and Labour Relations (Consolidation) Act 1992 (Amended). 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 2021: SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FULL ACCOUNTS Summary income and expenditure accounts for the year ended 31 December 2021: General Fund and Orphan Fund 2021 2020 As restated £'000 £'000 Subscription income 18,437 18,101 Operating expenditure (19,333) (18,308) Operating result (896) (207) Other income/(expenditure) 7067 (1,454) Result for the year 6,171 (1,661) Other comprehensive income 12,706 (3,503) Comprehensive result for the year 18,877 (5,164) Political Fund 2021 2020 £'000 £'000 Subscription income 235 239 Operating expenditure (174) (135) Operating result 61 104 Other income 0 9 Result and comprehensive result for the year 61 113 SUMMARY OF SALARIES AND BENEFITS PROVIDED Name Position Details Amount M Cash General Secretary Salary £103,496 Pension contributions £17,697 Other benefits £660 M Lynch GS & Assistant General Salary £90,227 Secretary Pension contributions £22,418 Other benefits £2,860 S Hedley Assistant General Salary £62,529 Secretary Pension contributions £21,223 Other benefits £2,860 M Rogers President Attendance, lodging allowance and £56,419 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 *In addition, the Union provides accommodation while on Union business Name Amount Oluwarotimi Ajayi £1,041 I Allen £55,933 Millie Apedo-Amah £55,455 J Armstrong £53,891 Andy Budds £1,041 David Goard £1,041 A Gordon £54,230 Alex Gordon £1,041 MJ Herbison £56,745 G Jackson* £12,388 K Jewell* £53,255 Dale Kember £1,041 Name Amount David King £1,041 J Kirby £58,586 Peter March £21,758 P McDonnell £55,564 S. Miskimmon £56,464 W Moore £54,338 K L Morrison £56,356 B Rawcliffe* £77,112 M Rodgers* £56,419 L Rundle* £53,357 S Shaw £55,064 J Wood £57,593