DELOITTE REVIEW: TWU TRAINING, EDUCATION AND INDUSTRIAL RIGHTS FUND
The Transport Workers Union of NSW has received a report from Deloitte which has reviewed the operations of the Training Education & Industrial Rights Fund.
The Deloitte review was commissioned by the TWU in October 2007 and was established to independently assess the operations of the Fund and to provide advice and recommendations in relation to the operation and objects of the Fund.
Specifically the Deloitte Review was commissioned to:
- Confirm the process for the administration of the Fund to ensure that the Fund meets its purposes (as defined in the Agreements) including the monitoring and reporting of the Fund’s activities
- Confirm that expenditure pertaining to the Fund is consistent with the Fund’s purposes (as defined in the Agreements) and that appropriate documentation has been maintained to support such expenditure
- Confirm that appropriate documentation has been maintained to support monies received and disbursed by the Fund.
The Deloitte review does not claim that the TWU has acted improperly or inappropriately with the funds payments.
Deloitte finds:
“The majority of expenditure tested was found to have been incurred within the broad Agreement wording of the Fund objectives. Some items of expenditure tested during the review period, whilst relatively small compared to the overall expenditure of the Fund, may fall outside the objectives of the Fund.”
Deloitte has made a recommendation, which has been endorsed by the TWU leadership and the TWU NSW Executive.
The recommendation is to improve the overall governance structure of the Fund.
Deloitte recommends improvements in the Council objectives, clearer separation of the Fund from general TWU accounts, better guidelines for expenditure, regular and independent oversight of the accuracy of contributions and expenditure of the Fund.
This entails ensuring a more formal establishment of the Training, Education and Industrial Rights Council. Therefore, a resolution establishing a company limited by guarantee, to assume the functions of the fund, has been passed by the Union’s rank & file Committee of Management.
This new structure will include employer representation on its’ board and union representatives will be nominated from the TWU’s rank & file Committee of Management.
TWU NSW Secretary, Mr Tony Sheldon today welcomed the report from Deloitte. He said the report has examined the facts and provided clear observations and advice regarding the conduct of the fund.
Mr Sheldon said he was satisfied the review had provided detailed analysis of the Fund and had clarified fact from allegation. Mr Sheldon said while the conduct of the fund was not improper, the review clearly indicated the need for a more robust administration and operation of the fund.
“We accept the constructive observations that we need to improve the operation of the fund. Deloitte have clearly indicated that the fund was administered in good faith – as opposed to best governance. I am now confident we will correct that omission and move forward with a transparent and robust structure”, said Mr Sheldon.
Update On Federal Inquiries
The TWU continues to cooperate with all inquiries into the fund commissioned by the previous Federal Government.
In correspondence with the Union, the Australian Industrial Registry (AIR) has said:
To date, on the basis of the information before me I am broadly satisfied that there has not been any omission in the financial reports of the TWU and its NSW Branch in relation to an Industrial Rights Training and Education Fund reported in the ‘Sunday program of 23 September 2007.’
The AIR will finalise its position after considering the Deloitte report, transmitted through to them on Friday February 22nd 2008.
The TWU will continue its cooperation with all inquiries.
Click here to download a full copy of the Report
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