Creating a fairer affiliation fee system

1
Creating a fairer affiliation fee system

• Graham Gaskell, Chair of NUS Finance Committee

2
Plan for workshop

• Overview of finance committee and process so far
• Consultation so far
• Vivezas suggested new methodology
• Feedback from you all
• A letter suggesting what youd pay next year to
  enable planning

3
What is Finance Committee?

• Established by Conference
• Independent of NEC and Management
• Ensures mandates from Conference delivered
• Ensures financial stability
• Scrutiny of finances of NUS
• Overseeing fees review with NUS staff and officers

4
Members

• Voting members (elected at NUS Conference)
• Graham Gaskell - Chair
• Chand Nazir
• Peter Hanafin
• Jennifer Gunstone
• Non voting members
• Joe Rukin - NUS National Treasurer
• Steven Findlay (NEC)
• Dave Charlesworth (co-opted member)
• Mike Day (co-opted member)
• Aaron Porter (co-opted member)
• Also in attendance Matt Hyde John Roaf

5
Affiliation fee review so far

• Clear mandate for change
• Great deal of time dedicated to this
• Early consultations
• Appointment of Viveza as consultants
• Consultation day on December 5th 2006

6
Issues with current system

• Under-declaration of block grant
• Deals done in the past
• Perceived lack of fairness
• Perceived lack of value for money
• Rate chart follows no determinable formula
• Difficulties of comparisons re income

7
Starting points

• Transparency
• Ability of unions to pay
• Simple to calculate
• Fairness comparisons of like with like
• Flexibility for unions experiencing hardship
• The new system must be regularly reviewed
• Maximum and minimum amount remain
• Reduction of overall take from affiliation fees

8
Input from consultations

• Clear consensus that current system is flawed
• Weve made cutbacks, so should NUS
• Better to have complicated and fair than simple
  and unfair
• Greater transparency re NUS finances and where
  money goes
• NUS needs to be better value, more relevant and
  efficient
• Not much consensus beyond that!

9
The new system

• Geoff to unveil in just a moment!
• Finance Committee will decide which items should
  be automatically exempted, and which items may be
  exempted depending on circumstances. Currently
  these exemptions are expected to apply
• Category 1 (automatic) exemptions
• Utility (not phone) bills rent and repairs
  payable to the institution for union buildings
  housing non-commercial services costs related to
  university services being located in a union
  building council tax SLO salary (Student
  Liaison Officers in FE)

10
The new system

• Category 2 (discretionary) exemptions
• Loan repayments to the institution rent and
  repairs (not refurbishments or renovations)
  payable to the institution for union buildings
  which solely house commercial services.
• Payments to a union from a parent institution
  besides the block grant/subvention may be
  considered part of the block grant at the
  discretion of finance committee.
• N.b. Ability to apply for hardship key and
  budgeted for

11
After this

• Finance Committee meets on 16th February to agree
  new methodology
• Will form part of Finance Committee report which
  will be voted upon by conference
• Will be regularly reviewed and drive to reduce
  overall take remains a priority

12
Over to Geoff

• With thanks!
• N.b. A risk for Viveza poisoned chalice
• Tremendous job and a pleasure to work with