Branch FinancesDelivering a better way...

Trevor Richards, Group Head of Finance (Projects)Michael Fadden, Branch Finance Coordinator

Cheryl Myles, Head of Branch Development18 February 2014

Back in Oct we shared our intention to look at….

• how we better deliver our financial accounting commitments?

• adhere to legal/governance challenges• support the Treasurer role/skills challenges you can often face locally• address the resourcing challenges we have here in Wimbledon

•how we clarify and resolve the reserves situation?

•how we better calculate and administer the annual branch funds?

• better support and embed Business Plan completion

....not helped by the fact that CIPD and Branches operate on a different calendar year(1 July to 30 June and 1 April to 31 March respectively)

Since then we have done a number of things:

• Engaged our internal Finance team on what it would take to transition to a more centralised approach and what the benefits and implications for Branches and Wimbledon would be – the draft Finance Toolkit is WIP in relation to those plans and we are working on templates to support the process

• Engaged with a number of Chairs/Treasury experience to ascertain their views and ensure we were approaching this change with understanding and pragmatism

•Sarah Harvey – Sussex Branch Treasurer•Mark Pavlika – North London Chair (and past Treasurer)•Karen Partridge – West London Chair•Gina Billington – Shropshire Chair (past Treasurer)

• Engaged CIPD CEO and Finance Director on future ambitions for Branches and ‘Regionalisation’ and secured alignment on an enabling Reserves policy • Book webinars to engage Treasurers ensuring direct involvement in shaping the implementation

• Arranged a further face-to-face meeting with Chairs, Council Reps & Treasurers on 4 March 2014

Proposed Operational changes to support a more centralised approach to branch accounting…

Wimbledon Branches

Additional Finance headcount (inc 2 FTEs) to enable the transition of key responsibilities:•Administration of Branch purchase ledgers•Administration of Branch sales ledgers and credit control•Branch banking•Production and circulation of Reports

•Monthly Branch operating statements & detailed transaction listing•Provide input into budgeting and

forecasting process• Expenses - Wimbledon to action BACS payments

We anticipate that Investment required will be covered by savings in Central and local Audits, Book-keeping etc

Retain responsibility and control of local Plan & Budget whilst reducing the administrative burden •Annual Budget and Plans – branches to continue to produce aligned to CIPD’s financial year•Suppliers and Expenses

• Authorise locally • Inform Wimbledon of all supplier payments• Authorise expenses.

•Sales Invoicing – raise invoices locally, inform Wimbledon (Credit control Wimbledon)•Reporting – Process led by Wimbledon Operating statement & detailed transaction listing to each branch monthly•Banking – centralise banking arrangements, administered by Wimbledon

An aligned Financial year will enable a more joined up approach to planning and the activities we undertake

Branch Activity Plan continues through April 1 to Jun 30 (with funding assumed to be in line with 2013/14 levels for the same period. No Business Plan required unless additional funds are needed)

Branch business planning for 2014/15 undertaken ideally before Jun 30 knowing CIPD’s annual priorities and ahead of our financial year kicking off

Branch Activity Plan continues through April 1 to Jun 30 (with funding assumed to be in line with 2013/14 levels for the same period. No Business Plan required unless additional funds are needed)

Branch business planning for 2014/15 undertaken ideally before Jun 30 knowing CIPD’s annual priorities and ahead of our financial year kicking off

April/May May/JuneJuly/August

Start new financial year

Submit 2013/14 Year End Accounts

CIPD 2014/15 objectives confirmed and communicated to Branches

Submit 2013/14 Year End Accounts

CIPD 2014/15 objectives confirmed and communicated to Branches

Committee meetingsCommittee meetings

Branch business plan completionBranch business plan completion

Limited activity

Holiday season

Limited activity

Holiday seasonInformal Council meetings should help this be a ‘softer’ rather than

one-off hard activity

Informal Council meetings should help this be a ‘softer’ rather than

one-off hard activity

TimelineTimeline

Sept

Planned changes initial thoughts?

Branch Reserves

Our proposed approach to Branch Reserves facilitates a stronger Branch network and enables our joint ambitions for greater local impact

• Maintain £750k annual investment/allocation to Branches to fund local Branch Activities in service of local members (in line with current investment) (subject to Business Plan approval, accessible from July 1st)

• Ring-fence a One-Off Fund of £750k to enable:

•additional Branch activities •strategic ‘regionalisation’ initiatives

Both subject to the submission of a valid business case (Funds accessible throughout the year)

1. Aligned Financial Year as of 1st July 2014 2. Commitment to provide regular visibility on how Funds are being invested

Additional funds remain accessible to Branches subject to the same stringent business case submission process as all other CIPD business areas

£750k

£750k

+

How can we help you to deliver this message to members in a positive way ?

Next steps …..

• •Following feedback develop and share revised implementation plan, giving clear guidance on what’s required by whom and by when on 4 March 2014

• Revise the ‘Toolkit’ based on feedback, complete finance templates and circulate for final comment on 4 March 2014

• Finance Resources – scope new JDs and get recruitment underway

• Develop and share new Business Plan and Finance template and gain feedback from Treasurers/Chairs before adding to Branch extranet but in time for branch planning

Next Steps…..