This lad Andy G posted these questions on a few forums I visit, since they are the kind of questions you all might ask, I thought I’d post them and Spirit of Shankly’s reply.
Please can someone form SOS guide me on the following:
I am aware from previous posts that only members are privvy to accounts and decisions on spending money and no problem with that, I am also aware that a cheque has been received by Anne Williams and I thank SOS for that, but would like to know the following before I join:
1). Is SOS or RTK a profit making organisation in itself and if so where do the profits go?
2). Where SOS are organising things for fans benefits, will it be made clear if SOS as a group or any of it's members will profit from such deals? I think no one has a problem with this happening on particular issues, but just a bit of transparancy is required.
With Question 2 for example, if someone organises SOS/RTK coaches for supporters, the organisers should travel free themselves or make some profit for the work they put in and no problem with this. Everyone wins because the SOS members get cheaper travel etc., it should just be made clear from the start.
3). How will decisions on spending money be made
4). Will the accounts be made available to all members?
No reasons for my questions except for experience in other organisational matters.
I will link this thread to the other websites so that anyone else with who might be interested gets to see what they are signing up for.
Cheers for your help.
Andy
Official S.O.S reply by the finance committee chairman. .
1. SOS is constituted as an Industrial Provident Society and registered with the Financial Services Authority. As such, the organisation must generate a surplus (AKA "profit") in order to remain solvent and continue to legally exist. However, none of these surpluses are to be distributed to members in the form of dividends (as would happen in a "normal" limited company). In this sense the organisation can rightly be termed "not for profit".
Money generated may only be spent in furthering the objects of the union, as set out in the constitution - available to all members and filed at the Financial Services Authority. In order to ensure that this happens there are two levels of scrutiny. Firstly, expenditure has to be signed off be two members of the Management Committee. After this, the Finance Committee is requested to process the payment, with two members of the Committee being required to ensure payments are signed off by the Mangement Committee and then subsequently sign the cheque for payment. In order to ensure independence and seperation of duties, the Finance Committee members would not ordinarily be members of the Management Committee (However, until the AGM, a member of the Finance Committee is temporarily acting as Vice Chair of the Union). It seems a bit complicated, but it works, spreads responsibility and ensures that spending is scrutinised by an independent body (with two qualified accountants on it).
2. Regarding members "profiting" from "deals", where members submit the best priced quote for a particular job, then provided an interest is declared they are allowed to receive "reasonable" payment. In practice, the members are actually providing services at little or no cost; e.g the constitution was drafted and submitted for free (saved thousands of pounds), the website is being produced at much less than cost price (saved thousands of pounds), the members involved in organising the End Of Season Night all paid for tickets (even one of the main organisers who was stuck in Pontins and couldn't get to the Olympia!) The only people who may get free travel on the coaches will be the stewards (and that is still to be decided), and they will be picked on the basis of ability to do the job.
Rest assured that ever penny spent from union funds is scrutinised in minute detail - no-one will be profiteering.
3. Answered above, and as governed by our constitution.
4. As an IPS, the union is legally bound to make its accounts public. In fact, one of the tasks we discussed at tonight's Finance Committee was the appointment of external auditors to verify the accuracy and completeness of the accounts. All accounts, the constitution, and details of Management Committee membership will be filed with the Financial Services Authority and available for public scrutiny.
In addition to the above, we are preparing arrangements for an AGM - as agreed when we first established the existing Management Committee - and this will give any bona fide member the opportunity to stand for election to the Mangement Committee. The election will be managed by an independent third party (probably the Electoral Reform Society) and we will be looking at using our soon to be launched website for online nominations and, if possible, online voting for non-local members
hope that helps clear up any questions you might have.
Please can someone form SOS guide me on the following:
I am aware from previous posts that only members are privvy to accounts and decisions on spending money and no problem with that, I am also aware that a cheque has been received by Anne Williams and I thank SOS for that, but would like to know the following before I join:
1). Is SOS or RTK a profit making organisation in itself and if so where do the profits go?
2). Where SOS are organising things for fans benefits, will it be made clear if SOS as a group or any of it's members will profit from such deals? I think no one has a problem with this happening on particular issues, but just a bit of transparancy is required.
With Question 2 for example, if someone organises SOS/RTK coaches for supporters, the organisers should travel free themselves or make some profit for the work they put in and no problem with this. Everyone wins because the SOS members get cheaper travel etc., it should just be made clear from the start.
3). How will decisions on spending money be made
4). Will the accounts be made available to all members?
No reasons for my questions except for experience in other organisational matters.
I will link this thread to the other websites so that anyone else with who might be interested gets to see what they are signing up for.
Cheers for your help.
Andy
Official S.O.S reply by the finance committee chairman. .
1. SOS is constituted as an Industrial Provident Society and registered with the Financial Services Authority. As such, the organisation must generate a surplus (AKA "profit") in order to remain solvent and continue to legally exist. However, none of these surpluses are to be distributed to members in the form of dividends (as would happen in a "normal" limited company). In this sense the organisation can rightly be termed "not for profit".
Money generated may only be spent in furthering the objects of the union, as set out in the constitution - available to all members and filed at the Financial Services Authority. In order to ensure that this happens there are two levels of scrutiny. Firstly, expenditure has to be signed off be two members of the Management Committee. After this, the Finance Committee is requested to process the payment, with two members of the Committee being required to ensure payments are signed off by the Mangement Committee and then subsequently sign the cheque for payment. In order to ensure independence and seperation of duties, the Finance Committee members would not ordinarily be members of the Management Committee (However, until the AGM, a member of the Finance Committee is temporarily acting as Vice Chair of the Union). It seems a bit complicated, but it works, spreads responsibility and ensures that spending is scrutinised by an independent body (with two qualified accountants on it).
2. Regarding members "profiting" from "deals", where members submit the best priced quote for a particular job, then provided an interest is declared they are allowed to receive "reasonable" payment. In practice, the members are actually providing services at little or no cost; e.g the constitution was drafted and submitted for free (saved thousands of pounds), the website is being produced at much less than cost price (saved thousands of pounds), the members involved in organising the End Of Season Night all paid for tickets (even one of the main organisers who was stuck in Pontins and couldn't get to the Olympia!) The only people who may get free travel on the coaches will be the stewards (and that is still to be decided), and they will be picked on the basis of ability to do the job.
Rest assured that ever penny spent from union funds is scrutinised in minute detail - no-one will be profiteering.
3. Answered above, and as governed by our constitution.
4. As an IPS, the union is legally bound to make its accounts public. In fact, one of the tasks we discussed at tonight's Finance Committee was the appointment of external auditors to verify the accuracy and completeness of the accounts. All accounts, the constitution, and details of Management Committee membership will be filed with the Financial Services Authority and available for public scrutiny.
In addition to the above, we are preparing arrangements for an AGM - as agreed when we first established the existing Management Committee - and this will give any bona fide member the opportunity to stand for election to the Mangement Committee. The election will be managed by an independent third party (probably the Electoral Reform Society) and we will be looking at using our soon to be launched website for online nominations and, if possible, online voting for non-local members
hope that helps clear up any questions you might have.
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