THOSE SNP FINANCES

THOSE SNP FINANCES

Now we know that the “plan” is to reduce the size of the NEC from 42 members to 32. This is to be achieved by eliminating 50% of the elected Regional representatives while leaving the appointed representatives in place, indeed adding and renaming some of their number.

Alongside this move is a plan to take much tighter control of many key areas by insisting the NEC must be in total control of selection of personnel. Let me give you an example. In the past the elected National Treasurer was free to select members of the Party to serve on his Finance and Audit Committee. This made sense because this can be a specialised task where expertise is needed. It is unlikely that this is freely available amongst members of the NEC. Hence the need for qualified accountants or finance specialists experienced in financial supervision and auditing. It is worth reminding readers at this point that in recent times three members of this team and the National Treasurer himself resigned over being denied access to the information that would have allowed them to fulfill these responsibilities.

They are taking measures, ACCORDING TO THE LEAKED REPORT to ensure that never happens again. Membership of that sub committee is now subject to NEC control rather than the elected National Treasurers appointment AND a majority of members must be NEC members themselves. This paragraph taken directly from the leaked report outlines the new plan

“Members of the Finance, Audit and Risk committee should be selected by the NEC taking account of recommendations from the National Treasurer. In making recommendations, the National Treasurer should ensure nominees have appropriate skills and experience. The NEC must ensure the committee has the necessary skills to discharge its responsibilities. A majority of members should come from within the membership of the NEC”

This is the clique taking political control for the future. In my view it is very unlikely that sufficient financial skills and experience exists in the current NEC. I can think of a few but they are the ones most likely to face the chop as they are in the group of elected members that are going to be cut by 50%. I can see trouble ahead but you will be the last to know about it.

The report also makes clear that it will be the Chief Executive and his staff that will dominate this responsibility and again I quote directly

“While office bearers can change relatively frequently, and those elected to positions of internal leadership often combine their positions with the demands of elected public office, the professional staff employed by the SNP are focused on the party’s day-to-day operations, and tend to be in post over a longer period; they therefore often acquire a stronger grasp of the party’s internal dynamics and ‘institutional memory’ than elected office bearers, developing considerable expertise, and providing stability and continuity.”

This in itself is an admission that the skills required are unlikely to be found at NEC level. Part of the role of any Finance and Audit Committee is to review and manage the performance of the full time employees that are dealing with the finances of the Party. Here it appears the roles are reversed and it will be Mr Murrell in charge. This is a crucial area of concern. The following appears in the Herald and relates to the need for a safeguarding statement from the auditors of the SNP 2020 Accounts.

“The auditors’ statement underlines their procedures to detect fraud, but also the possibility of failing to do so because of the “inherent limitations of an audit”.

The text states: “We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: revenue recognition. 

“We also obtained an understanding of the legal and regulatory frameworks that the party operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. 

“The key laws and regulations we considered in this context included the Political Parties, Elections and Referendums Act 2000 and tax legislation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation.” 

The new statement is also included in the 2020 accounts of the SNP Westminster Group.”

So the auditors are providing themselves with a “get out of jail card”. Now I wonder why these statements are appearing in the accounts this time round. I think I, and I suspect most readers know that answer. In the current circumstances who can blame them?

The accounts have recently been published http://search.electoralcommission.org.uk/Api/Accounts/Documents/23205 and are being spun as some sort of success. For instance they claim a surplus for the year in excess of £ 1 million pounds but it does not translate into cash in the bank. The following explains

SNP 2020 accounts show a headline surplus of a million pounds (bottom of page 21 left column). However there has been a huge increase in the Party’s “tangible assets in furniture, fixtures and fittings” from under £60K in 2019 to over £422K in 2020 (page 22 second line left column). This includes spending of over £385K on “asset additions” (page 36 second line left column).

Carry the 615K figure (page 36 second line right column) to page 23 third line left column. This helps reduces the real end of year surplus to just over £260K (page 23 final figure left column).

The £385K (page 36 second line left column) is apparently the cost of changing and upgrading office space at SNP HQ. The main room being remodelled was considered too small for meetings of the now 40+ NEC members.

Staff have been working from home. The SNP don’t actually own the office they just lease it.

The amount spent on this work is equivalent to almost the entire donations income for 2020 of £416K (page 21 second line figure left column) a lot more than was spent on campaign costs at £194K (page 21 between notes 11 and 12 left column). or the levy paid by MPs and MSPs of £304K (page 30 item 7 left column).

Accounts will have to be approved by conference later in the year. November. The books were prepared on the “ongoing concern basis” according to the auditors. I was interested in that term so I googled it. Here is the reply
Is a going concern good or bad? A going concern is considered good for the time being. It means your business is facing financial distress but is still able to make payments to keep it operating.

So, as usual with the SNP these days, things may not be what the seem, or indeed as they are frequently spun. Perhaps not all is rosy in the garden after all!

No better example can there be other than the controversy surrounding the £600K “Ringfenced” money for Indyref2 with the SNP constantly denying it was spent elsewhere, then admitting it may have been, before returning to the outright denial mode again.

In the Treasurers Report that accompanies the report we, at last get a definitive statement, albeit it is still disguised to avoid it being fully understood by those with limited knowledge of financial terminology.

The National Treasurer wrote “In fact the money is “earmarked” through the internal process set out above and will be deployed fully through future cash flow for the purpose of promoting a referendum on independence and campaigns intended to secure independence.”

The key words are “future CASHFLOW” , not retained funds, or even a combination of the two routes. It is clear it means new money, as yet to be obtained.

It has been like drawing teeth but we have eventually got there. I asked earlier today why they didn’t admit to spending the money elsewhere earlier. The only answer I have received so far is the suggestion “they knew it was a crime”

I have been busy today with other matters so I am likely to return to this topic in due course but I am also working on an expose of the Hate Crime preparations within the Party which I am sure will appall members when it is completed.

I am, as always

YOURS FOR SCOTLAND.

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