The Future (of the Purchasing Consortium)

Big Issues Matt Raised Share ownership does not correlate with participation level NUS committed to reducing affiliation fees and needs to drive income generation Duplication Maximising Group Tax efficiency

Other Issues and Guiding Principles Membership ownership in decision making Cooperative principles We do not have an “equitable” way to distribute profits from Services How do we eliminate the duplication in governance – so we can move faster and be more efficient How do we get greater / more impactful benefit from our volunteers

Objectives Find equitable way of distributing surplus from NUS Services Ltd NUS to reduce dependence on affiliation fee NUS Services to be more tax efficient Eliminate duplicated governance Greater benefit from involvement

Key Principles Students and Unions’ staff have high levels of involvement in the direction and leadership The Members should be involved in the oversight and direction of each of the Cooperative Enterprise Units Services’ role is to increase income generation opportunities for all Unions Three lines of Enterprise today: Purchasing Digital & Media Extra Members = Unions that participate in a particular Cooperative Enterprise

Option for discussion NUS to become the single shareholder Each of the Cooperative Enterprise Units to have its own Development and Oversight Board Streamlined Services Board Surpluses from each Cooperative Enterprise Unit calculated and applied equitably

Ethical & Environmental Governance DOB = Direction and Oversight Board ARR Services Board DOB DOB DOB Purchasing CEU Digital & Media CEU Extra CEU Business Developmt Infra- structure Ethical & Environmental

Governance Roles Services Board Strategic direction New revenue streams Annual budget Surplus apportionment methodology Development and Oversight Boards Direction Performance management Determination of rebate methodology NUS Audit, Risk & Remuneration Oversight of infrastructure provision

Where does the surplus go? For each CEU: It is proposed that the surplus, for each CEU, is split three ways: Rebate Affiliation Fee Reduction Reinvest Surplus Distributed to members Activity based Rebate so before tax Applied to Affiliation Fees Could be used only to reduce members fees on a percentage basis or to all fees Retained by company Reinvested in CEU or business development or Could be donated to Charity

How do we determine the surplus? Revenue Cost of Sales Department costs Overhead share Surplus For each of the Cooperative Enterprise Units: Purchasing Digital & Media Extra This would be used to calculate their surplus

Annual Convention Board reports back to membership on activities of the company for past and next year(s) Election of members of: Services Board Direction and Oversight Boards Have not determined on what basis the elections would be held

Benefits of this approach Students and Union staff involved at all levels More focused involvement Greater return to Unions both directly (through rebates) and indirectly (through reduced affiliation fees) Encourages all Unions to participate Eliminates duplication of governance Allows for funding route for Charity

What If’s NUS makes NUSSL do something New Income Streams are identified NUSSL Board acts in the interests of NUS not members NUS goes into decline

Percentages and Pounds

LT Volumes

As It Stands Opportunity not advertised to all No central oversight of partners of risk By law 2 and 11 don’t help expansion Organisations which are controlled by a student organisation or which supply services directly to students Outlets wholly managed or by a subsidiary of the member organisation. To be resold to another organisation for the sole purpose of sale to consumers (predominately students)

For Discussion Is this an opportunity Should we be limiting ourselves when we are reaching into the youth market Would other organisation mean non affiliates ( at an appropriate cost) Central Oversight and advice?

Discussion