Napo AGM 2020 Reflections

Hi Jim,

Good on Napo for doing this: much better effort, frankly, than the Labour party non-conference. Given the early adopter status of this, there were glitches and problems, but not a bad effort.

I am pretty sure we were quorate which surpassed my rather bleak expectations. Francis O’Grady made a great and very motivating speech, starting with an obviously heartfelt tribute to Harry Fletcher. She of course claimed the reunification as a great Union triumph, but actually in a very moving way, not least bigging up all the members who have slogged through this all these years. Also made some very pertinent points about the importance of Health and Safety, a thing derided by so many for so long until March this year.

Katie Lomas who opened made a strong point about the challenge of recruiting hundreds of new officers/trainees being an easy task when compared to finding the resources to train and support them, ie drawing from the already overworked experienced staff.

Covid of course a theme running through all business.

Gordon Jackson had as usual submitted good questions on the accounts, and the whole issue of the parlous state of finances continues. The message from Keith (Officer for Finance) Stokeld was that significant savings have been made this year, also that we are poised for new premises.

I found it really difficult to engage and concentrate: it was more like watching the telly. When it got to motions there was a means to speak but it involved emailing an address and then awaiting a reply with a link to something which then linked you into the on screen proceedings. I tried to do this in support of a speech proposing better treatment of older workers but got lost in the system. There were much fewer speeches and questions from the virtual floor, partly due to the complexity of the process to speak, partly I think as the format makes the “audience” more passive. Not a particular criticism, more an observation. Doubtless we will all get better at this stuff over the next year or so.

Speaking personally, the fringe events, held on zoom, were much more engaging, simply as we could interact in a much more “normal” way and see each other. I went to several sessions.

Low point of the day: having drifted off for refreshment, logged back in to find myself in an on-line tutorial on Delius system. Delivered by some bloke developing the Delius system I think. I get enough of this shit at work, Napo conference absolutely not the place for that, so I went back out for cheese and biscuits.

High spots: the fringe events, Frances O’Grady’s speech, David Lammy, third time I have heard him talking about probation in as many weeks. He has really done his homework. He is quite rightly not making promises about a manifesto that isn't written, and interestingly talked about the need to get the public onside about justice reforms. He isn't of course the shadow Justice Minister: which is Nick Thomas-Symonds.

Our Gen Sec is on tomorrow. I am sad about the relentless Napo bashing on your blog comments, but BUT, I do have to say, when the finance officer Keith was questioned about the increased pay going to the Gen Sec, (in the face of stagnant wages and unpaid increments of members) his defence of this was that it wasn’t a pay rise, it was the result of a job evaluation exercise, Napo as a good employer could not honour this. However, it slipped out that the job evaluation exercise was at the request of - ie initiated by - the General Secretary. Grrrr

Anon

--oo00oo--

Regarding the financial situation referred to above, here are an edited version of the relevant report:-

Finance Vice Chair’s REPORT TO AGM 2020 

The Annual Accounts – 2019 

At the time of writing, I am conscious the impact of corona virus has had on society and the loss some members will have experienced on a personal level. I would like to acknowledge this. No doubt, the impact of the pandemic will be referred to in other reports and contributions connected to personal loss and the way Napo has had to adapt since March. The AGM for 2020 will be no exception. Therefore, this finance report is being prepared for an AGM with a very different format. In an effort to ensure members are provided with sufficient information, this report has been prepared with the aim of completing one of the essential elements of the AGM, namely the approval of the Annual Accounts by members. 

I am submitting the statutory accounts for the year ended 31 December 2019. These comprise the Income and Expenditure Account, Balance Sheet; Movement of Funds Summary supported by notes to the accounts and detailed breakdown of the income and expenditure figures. 

I am pleased to inform members that despite yet another difficult year, the union has retained its capacity to function as a going concern as noted in the Independent Auditors Report which forms part of the annual accounts. This continues to be an aspect that members are concerned to establish, and remains a subject of debate. I am encouraged by the responses from member’s keen to stress their interest around this, as they emphasise how important they consider Napo retains its capacity to function. 

Plans for the future are being shaped by the way the union and employer business is being conducted. In any event doing things differently was always on the agenda, but enforced change has shown there are other options to carry out Union activities in an inclusive way, often at a much-reduced cost. This provides the union with an opportunity to plan in a way that will enable a positive financial outlook. 

The financial health of the union has been assisted by the way the Finance Sub Committee has scrutinised the budget. This will continue to be the case in reviewing ongoing expenditure as part of the process following the approval of the budget set by the NEC. This includes a clear commitment to setting a balanced budget to maintain the financial stability of the Union for the future. 

Crucial to this will be achieving a satisfactory balance between expenditure and income, along with ensuring the reserves from the sale of Chivalry Road are used as intended. 

Reserves have been held in a mixture of investments including the traditional deposit and current accounts. Some of the funds were used to meet revenue commitments and this assisted the running of the union, while the principle aims of securing long-term office space remained on the agenda. 

One of the consequences of the pandemic, in addition to the development of a different way of working, has been a review of the requirements for office space. With Napo staff finding an increasing capacity to work from home, it has been possible to revise the requirements for office space. This along with revising the geographical parameters has allowed for a widening of the search for potential property. Acquiring a suitable property that becomes part of Napo’s assets as opposed to renting will greatly assist in reducing accommodation costs, thus assisting the budget setting process for the future. 

Unfortunately, the decision taken last year to increase the Direct Debit subscription rate for those members earning £35,001 - £40,000 from £23 a month to £24 has yet to be implemented. This was scheduled to be effective as of June this year after the launch of the database. Unfortunately, at the time of writing, this had yet to take place. It was therefore decided to suspend the increase, as the cost of imposing it without the support of the appropriate technology would not have been cost effective. 

2019 Accounts

The overall income for the year was £1,202,879 and expenditure was £1,617,590; this includes £231,703 spent on representing members, and £13,576 paid to branches from the organising fund. The overall deficit for the 2019 financial year was £416,019. A transfer of funds from the General Reserve once again has offset this deficit. 

It was always anticipated that the financial year would end with a deficit but this was higher than budgeted for, largely due to an increase in demand for members’ representation. Members who have attended previous AGM’s will recall how the legal and representation fund has been a matter of debate and it should remain so. 

Income 

Subscriptions 

For the 2019 financial year, the amount received from membership subscription was £1,129,398, which was a modest increase on the previous year of £20,169, reversing the trend of preceding years of decline. There is an urgent need to prepare for reunification by ensuring members moving to the NPS who have yet to switch to direct debit do so. There is an ongoing recruitment campaign, which hopefully will see us welcoming new members thus strengthen the Union and is financial situation.