1. The Future (of the Purchasing Consortium)

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Percentages and Pounds

15. LT Volumes

16. 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)

17. 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?

18. Discussion