RTBU National Council Financial Report

discussion and Analysis of the Financial Statements

Information on the Australian Rail, Tram and Bus Industry Union, National Council Concise Financial Report:

The financial statements and disclosures in the concise financial report have been derived from the 2004 financial report of the Australian Rail, Tram and Bus Industry Union, National Council.

A copy of the full financial report and auditors report can be sent to any members, free of charge, upon request.

This discussion and analysis is provided to assist members in understanding the concise report. The discussion and analysis is based on Australian Rail, Tram and Bus Industry Union, National Council 2004 financial report.

Statement of Financial Performance:

The Surplus attributed to members this year is $130,591 compared to a surplus of $52,932 in 2003. This surplus is mainly due to a reduction in operating cost and increase in revenue.

Statement of Financial Position:

Total assets increased by $102,584 mainly due to an increase in investments while total liabilities decreased by $28,007 due to a reduction in sundry creditors. As a consequence members funds increased by $130,591 from the 2003 year.

Statement of Cash Flows:

Cash assets increased from $911,241 as at 31 December 2003 to $1,157,134 as at 31 December 2004. Cash flows from operations increased by 91% during the year from $133,467 in 2003 to $254,332 in 2004. This increase was a result of:

• an increase in member contributions
• interest on investments
• increase in rent received

Operating Report

This Operating Report covers the activities of the Australian Rail, Tram and Bus Union, National Council, for the financial year ended 31st December 2004, the results of those activities and any significant changes in the nature of those activities during the year.

1. Principal Activities of the National Council

The principal activities of the National Council of the Union, during the past year fell into the following categories:

• Implementation of the decisions of the National Executive and National Council
• Implementation of the union's organising agenda, including direct assistance and strategic advice on particular industry or site organising projects, the training and development of officials and assistance to branches on planning and resourcing campaigns.
• Industrial support including representation of individual member grievances, advice on legal and legislative matters, holding of union elections as provided for in the rules of the union, and responding to the needs of branches and members as provided for within the rules of the union, within the scope of any statuory or legal obligations.
• The administration of federal awards, the certification of federal industrial agreements, the variation of awards following major test cases, and making application to vary federal awards on behalf of branches.
• National media and communications to members, branches and the broader community via media releases in support of campaigns, web based technology, including the national magazine RTBU Worker.
• Coordination of and negotiation of key national industries, and assistance to branches on bargaining by request.

The National Council has consulted with the ACTU on the development of claims to be pursued in the AIRC and union policy in general. Where appropriate, the National Council has assisted branches in the implementation of relevant decisions via the variation of awards.

The National Council has also been involved in lobbying and negotiations with different levels of Government and key industry organizations around issues of importance to ART&BIU members, eg training, skill shortage, fatigue management, vehicle design.

2. The National Council's Financial Affairs

The financial position of the National Council has improved marginally due to the identification of cost savings and increases in membership fees as a result of wage increases.

During the 2003-4 financial year, the National Council funded branches to implement mutually agreed growth projects and activities arising out of agreed branch projects and industrial campaigns.

3. Right of Members to Resign

All Members of the Union have the right to resign from the union in accordance with Rule 14 of the Union Rules (and Section 174 of the Workplace Relations Act); namely by providing notice addressed and delivered to the Secretary of the relevant Branch, including via email.

4. Directorship of Superannuation Funds

To the best of our knowledge and belief, no officer of the organisation, by virtue of their office of the Rail Tram and Bus Union, National Council is

1. a trustee of a superannuation entity or exempt public sector superannuation scheme; or
2. a director of a company that is the trustee of a superannuation entity or an exempt public sector superannuation scheme; and
3. where a criterion for the officer being the trustee or director is that the officer is an officer of a registered organisation.

5. Membership of the Union

There were 32,958 members of the union as at 31st December 2004.

6. Employees of the National Office

As at 31 December 2004 the National Office employed 7 fulltime employees and 2 part time employees with a total number of 8 employees on a full time equivalent basis.

7. National Executive

The following persons were members of the National Executive, during the year ended 31st December 2004:

National Executive's Statement

On 8 April 2005 the National Executive of the Rail Tram and Bus Union, National Council passed the following resolution in relation to the general purpose financial report ("GPFR") of the National Council for the year ended 31 December 2004.

The National Executive declares in relation to the GPFR that in its opinion:

1. the financial report and notes comply with the Australian Accounting Standards;
2. the financial report and notes comply with the reporting guidelines of the Industrial Registrar;
3. the financial report and notes give a true and fair view of the financial performance, financial position and cash flows of the National Council for the financial year ended 31 December 2004;
4. there are reasonable grounds to believe that the National Council will be able to pay its debts as and when they become due and payable; and
5. during the financial year ended 31 December 2004 and since the end of the financial year:

1. meetings of the National Executive were held in accordance with the rules of the organisation and the rules of the National Council; and
2. the financial affairs of the National Council have been managed in accordance with the rules of the organisation and the rules of the National Council; and
3. the financial records of the National Council have been kept and maintained in accordance with Schedule 1B to the Workplace Relations Act 1996 and the Workplace Relations (Registration and Accountability of Organisations) Regulations 2003; and
4. the financial records of the National Council have been kept, as far as practicable, in a consistent manner to each of the other branches of the organisation; and
5. the information sought in any request of a member of the National Council or a Registrar duly made under section 272 of Schedule 1B to the Workplace Relations Act 1996 has been furnished to the member or Registrar; and
6. there has been compliance with any order for inspection of the financial records made by the Commission under section 273 of Schedule 1B to the Workplace Relations Act 1996.

Signed in accordance with a resolution of the National Executive:

Robert Hayden

April 8, 2005

Statement of Financial Performance for the Year Ended 31 December 2004

Statement of Financial Position as at 31 December 2004

Statement of Cash Flows for the Year Ended 31 December 2004

Notes to the Financial Statements for the Year Ended 31 December 2004

Note 1: Basic Preparation of the Concise Financial Report

The concise financial report has been prepared in accordance with applicable Accounting Standards and the Workplace Relations Act 1996.

The financial statements, specific disclosures and other information included in the concise financial report are derived from and are consistent with the full report of the Australian Rail Tram and Bus Industry Union, National Council. The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Australian Rail Tram and Bus Union, National Council as the full financial report.

The accounting policies have been consistently applied by the entity and are consistent with those of the previous financial year.

Note 2: Information to be provided to Members or Registrar

In accordance with the requirements of the Workplace Relations Act, 1996, the attention of members is drawn to the provisions of Sub-Sections [1], [2] and [3] of Section 272 of Schedule 1B which read as follows:-

1. A member of a reporting unit, or a Registrar, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.
2. The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.
3. A reporting unit must comply with an application made under subsection (1).

Independent Audit Report

To the members of the Australian Rail Tram and Bus Industry Union, National Council

Scope

We have audited the concise financial report of Australian Rail Tram and Bus Industry Union, National Council for the financial year ended 31 December 2004 comprising the National Executive's Statement, Statement of Financial Performance, Statement of Financial Position, Statement of Cash Flows and notes to the financial statements. The National Executive is responsible for the financial report. We have conducted an independent audit of this financial report in order to express an opinion on it to the members.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the concise financial report is free of material misstatement. We have also performed an independent audit of the full financial report of Australian Rail Tram and Bus Industry Union, National Council for the year ended 31 December 2004. Our audit report on the full financial report was signed on 8 April 2005, and was not subject to any qualification.

Our procedures in respect of the audit of the concise financial report included testing that the information in the concise financial report is consistent with the full financial report, and examination, on a test basis, of evidence supporting the amounts, discussion and analysis, and other disclosures which were not directly derived from the full financial report. These procedures have been undertaken to form an opinion whether, in all material respects, the concise financial report is presented fairly in accordance with Accounting Standards and the Workplace Relations Act 1996.

Audit Opinion

In our opinion, the concise financial report of Australian Rail Tram and Bus Industry Union, National Council complies with Accounting Standards and the Workplace Relations Act 1996.

A.J. WILLIAMS & CO.

D. S. MCLEAN

Registered Company Auditor.
SYDNEY NSW 2000
8 April 2005