Optimizing Financial Management for Success

Organising our finances to win! Dan Sartin Chair Finance and Resource Management Committee (FRMC)

1. Overview of the unions finances and the role of the Treasurer 2. New Organising Framework process and Branch Finances

2023 Membership grew by +6,888 net in 2023 (0.56% on 2022); Activists grew by +4,097 in 2023 (+56% on 2022) Income increased in 2023 by + 7.9m 2024 so far +37,292 membership growth to 04/11/24 (3.0%) +3,975 activists to 04/11/24 (on target to exceed 2023 figures) Subscription income outturn forecast to increase in 2024 to 190 million ( 9.7 million ahead of 2023 outturn of 180.3 million) Members moving through the subs bands: congestion in Band K 2ndmost populous band after H; highest band for income 42.1m The union is in a good position on membership and income; Organising to Win

HEADLINE: Union in a strong position financially, but does still need to make changes 2 years of very high inflation has expanded our cost base Reflected in pay rises for staff including a 15 ph min wage which we are rightly proud of; should take effect from 1.1.25 Pension deficit now reduced, but we re still paying in 5 million a year as part of a deficit recovery plan and employer contributions at 27.8% UNISON hasn t reviewed itself or changed its structures or its finances for 30 years+ In 2023, the NEC set up a Staffing Review. This work stalled but is now picking up pace after a recent change of approach. Deficit budgets necessary in last 6 years, and likely will be again in 2025 though budget not set till December Subs growth has given us a welcome window of opportunity

FRMC working groups: Resourcing our work; Financial governance Progress: Resourcing our work 1. Subs bands: last changed 2003; leave A to J as is, but MiP in Health; Test with payroll: At WSCC, 36% of DOCAS payers are Band K; 77.6% of Bank K payers earn more than 40,001; Band K 21.7% Y K over 35,000 22.50 K 35,001- 40,000 22.50 L 40,001- 50,000 + ? M 50,001- 60,000 + ? N 60,001- 70,000 + ? O over 70,000 + ?

Progress: Resourcing our work 2. Funding Industrial Action (still working on this) Demands on the national IAF Decreased by 6.7 million in 2023 Branch IAFs went up in same period, as not used Strike pay increased, and available from day 1 Principle should be when your branch needs it, IAF is there Branch reserves grew again in 2023; not a sign of efficiency!

Progress: financial governance With Hassan Ortega Organising Framework and how it deals with Finance Training and ongoing support to Treasurers needs Improving OLBA The OF has been main focus Understanding the centrality of the Treasurer s role Good financial organisation usually means a healthy branch Finances underpin everything Critical to Organising to Win

New Organising Framework: New UNISON system. Inhouse. UNISON staff platform. Draw down existing data rather than repeat repeat repeat No longer a tickbox exercise Same timeline. From 1stOct AGM (before 31stMarch) 2 sections to be completed separately or consecutively Objective 1/2/3 (Organising, Bargaining, Ballot readiness, Equalities) Objective 4 (Finance, WARMS, Case Management, GDPR) Generates meaningful action plans based on responses. Must involve Branch Sec and RO and others by agreement Involve Treasurer at least in Section 2 To ensure meaningful process, NEC recommend 2 x 3hrs set aside

Section 2 Obj 4 Content: Branch Finance and Financial Governance Branch balance sheet & expenditure E.g. does the branch have the finances it needs to meet its organising objectives Prompt questions on BSOF bids, using reserves, using branch-employed staff Honoraria Branch Employed Staff Branch Property Security of Branch Funds Training and Support for Treasurers and AFR Submission E.g. what support or training is required; will support be needed with AFR Trigger questions: 1. Is the branch facing potential financial difficulties? (RO comment) 2. Are branch staffing costs affordable for the branch? (RO comment) 3. What controls are in place to protect the security of branch funds? (RO comment) 4. Does branch committee receive and agree branch accounts on a regular basis? (no text box for RO comment)

Questions also on: WARMS, Case Management, GDPR We hope the OF process will be: Slicker, more automated Less boring More conducive to planning and monitoring at BCMs Bring finances to the foreground within all branches Please let us know how it goes and how it could be improved

Improve OLBA Make life easier for Treasurers Pensions portal: coming very soon (weeks not months) Questions?