Year-End Process for Branch Finances: A Practical Guide

Treasurers Summit, 19th November 2024 Barry Lyons b.lyons@unison.co.uk i.audit@unison.co.uk

A BRIEF OUTLINE OF OLBA THE YEAR-END PROCESS

Why do we have an Annual Financial Return (AFR) process?

Designed to show an accurate and fair representation of your branch s finances at year-end. By rule, the AGM must receive a report on the branch finances and presentation of branch accounts (G3.5.1) This is a way for the branch to review the financial results against budget.

The accounts must be audited by a duly appointed member of the branch or failing that a third-party auditor or UNISON s Internal Audit Section Year-end is crucial to the union, as the information provided from AFRs is included in the union s consolidated accounts.

Timeline

December Contact your auditors and agree an audit date that is realistic for you all. Do not wait until the start of March try and complete the year end as early as you can. Auditors may want to carry out an interim audit before year-end. Download the audit program from Supporting Documents and issue this to them.

Decide if you are going to give physical documents to your auditors or scan them onto OLBA. If the latter, do it before year-end. Contact all members who may claim expenses to remind them to submit any outstanding claims relating to December as soon as possible after the year-end. You could give them a cut-off date.

Make sure that you are going to have all the purchase invoices relating to this year as soon as possible after the year-end. You may need to contact the supplier to ensure this.

Early January Make sure that your cash books are written up to 31 December AND RECONCILE THEM TO THE BANK STATEMENTS AS AT 31 DECEMBER.

January/February Identify year-end debtors and creditors and insert them into OLBA. The audit should now be ongoing. When the audit is complete, and adjustments made, complete the AFR.

March The AFR process must be completed by 15 March. Consequences Rule D1.3.3 Disenfranchised for the rest of the year Financial penalties Appeals committee

But if you get your branch audit complete by the end of February, it should be easy to meet the deadline. Instructions are issued in mid- January.

OLBA will ask you to confirm youve included all your debtors and creditors, It will check whether the branch funding figures in your OLBA match ours. Ask you if your accounts are ready for audit. At this point DON T GO ANY FURTHER UNLESS YOUR AUDIT HAS BEEN COMPLETED.

Potential Problems!

Timetable problems Bank reconciliations not having been done. Bank statements missing. Branch funding data missing. Validation checks failing The Treasurer has gone too far before audit completed. Things that may get the return rejected by the OLBA Team.

Things that may get the return rejected by the OLBA Team. Equipment not analysed as fixedassets No salary accrual Non-Unity statements not loaded. AFR reserves don t match the Authorisation Sheet

i.audit@unison.co.uk

A BRIEF OUTLINE OF OLBA BUDGETS & ACCRUALS

A BRIEF OUTLINE OF OLBA CONFERENCE EXPENSES AND DEPENDANTS

Three scenarios: Child accompanying member to conference Home care of a child not accompanying the member to conference Home care for an adult dependant

Child accompanies the member to conference and is in the creche No daily allowance if lunch/snacks are supplied by the cr che/supervisor; When returning home after 6:00pm, an evening meal allowance of 10 up to the child s 11th birthday, or 15 from their 11th to 17th birthday.

Child accompanies the member to conference and is in the creche When staying overnight: An evening meal allowance of 10 up to the child s 11th birthday, or 15 from their 11th to 17th birthday, if an evening meal is not included. An incidental allowance of 5 if the evening meal is included.

Child does not accompany the member to conference. Only that expenditure which is over and above what would normally be incurred by the member can be reclaimed from UNISON.

Child does not accompany the member to conference. Where a registered childcare provider is used, the actual cost of additional childcare can be paid. These additional costs must be itemised and receipted.

Child does not accompany the member to conference. Registered childcare provider - actual cost of additional childcare. Where a family member or friend provides additional childcare, and incurs costs in doing so, the UK average hourly rate is the maximum that can be claimed and will be capped at 50 per day. Again, such costs must be itemised and receipted.

Child does not accompany the member to conference. Registered childcare provider - actual cost of additional childcare. Family member or friend up to 50 per day. Overnight care paid at a maximum of the UK national average rate, up to a maximum of 50 per night, subject to itemisation and receipt.

Child does not accompany the member to conference. Note that those in receipt of the above payments are responsible for notifying HMRC.

Adult dependants Again, only that expenditure which is over and above what would normally be incurred by the member can be reclaimed from UNISON.

Adult dependants Maximum claim 32 per day and 16 overnight (after 6pm)

Adult dependants Maximum claim 32 per day and 16 overnight (after 6pm) Plus 20% for any additional adult dependants

Adult dependants Attendance Allowance Payment Disability Living Allowance Payment Blue Badge Parking Permit Disabled Person s Rail Card Disabled Person s Concessionary Fare Pass Tribunal Decision Blind/Partial Sight Registration Incapacity Benefit Payment Industrial Injury Payment Medical Certificate Other similar evidence, e.g. doctor s letter

A BRIEF OUTLINE OF OLBA ANY QUESTIONS?