CWU ACCOUNTS 2014 – QUESTIONS TO THE ACCOUNTS
LTB 207/15 CWU Accounts 2015 dated 8th April 2015 stated as follows:
“Branches are now invited to submit questions on this set of accounts. Questions must be addressed to the Senior Deputy General Secretary and received by no later than 14:00 on the 21st April 2015.”
At the closing time and date the following questions had been submitted by both the North/North West London Branch and the South East London Postal and Counters Branch.
Page 28 Note L:
We have noticed the cost of Regional Representation (Regional Officers) has increased from £457,031 (2013) to £565,510 (2014), which is an increase of £108,479. We have noticed that the Divisional Reps costs have reduced year on year by £3217, from £374,552 (2013) to £371,335 (2014).
Question: Why are the Regional Officers costs so different to that of the Divisional Reps costs?
We ask this as there are only 10 Regional Secretaries yet there are 18 Divisional Reps. Could you explain this and also give a breakdown on the Regional Officers costs?
Page 29 Note Q:
Question: Could you please explain and breakdown the Professional & Financial charges for the Superannuation Schemes administration costs which have increased from £229,267 (2013) to £308,686 (2014).
Question 1: Regional Officers/Divisional Reps Costs
The £108k year on year increase for Regional Officers is due to a £62k increase in special leave payments arising out of CWU General Conference policy regarding the funding of Regional Secretaries.
A £35k one off payment agreed by the NEC in 2009 to fit out premises in Northern Ireland, the cost of which was not actually incurred until 2014.
Finally, £20k accounted against London Region expenses as an £8k one off payment for loss of earnings to a former London Regional Secretary and £11k Regional Secretary Election costs.
The £3k decrease in Divisional costs is accounted for as follows:
- £11k decrease in Scotland/N Ireland Division.
- £4k decrease in the SE Division.
- A £7k increase Romec Div Reps structure.
- Finally a £7k increase Midland Divisional costs.
Regional costs (excluding the special leave and other payments detailed above) for 2014 are as follows:
|Reg. – Eastern||13,694.07|
|Reg. – London||91,564.12|
|Reg. – Midland||17,169.71|
|Reg. – North East||26,978.45|
|Reg. – Northern Ireland||12,604.28|
|Reg. – North West||12,919.17|
|Reg. – South East||7,058.67|
|Reg. – South West||16,149.48|
|Reg. – Scotland||11,659.88|
|Reg. – Wales||9,962.95|
Question 2 Professional and Financial Charges Superannuation Schemes
The breakdown for the increase in this cost for the year on year variance is due to a £72k credit against the NCUSSS scheme in 2013. For the 2012 year end an accrual was entered for £72k for an Aon Hewitt invoice that had been received, but not yet posted into the accounts.
On review it was found that this cost was not due to be paid by the CWU but was to be paid by the scheme directly, this left a credit of £72k sitting in 2013 with no invoice to counteract it.
If you take out the £72k credit in 2013 it revises the year on year difference to a £7k increase, which is a more realistic variance. But for accounting purposes the item has to be recorded as shown in the accounts.
Any enquiries regarding this Letter to Branches should be addressed to the Senior Deputy General Secretary Department on telephone number 020 8971 723, or email address firstname.lastname@example.org.
Senior Deputy General Secretary