I wrote a while back predicting that the EPMU would report a huge loss in their 2011 Financial accounts (PDF, 438k)and I was correct. It wasn‚Äôt based on any rummaging around rubbish bins or receiving tips, it was based on following their balance sheet and profit and loss trends as reported on the MED website since 2005.
Their 2011 loss is $540k (Group) before tax and revaluations.
This takes their combined losses since 2005 to nearly $4m.
In 2005 the EPMU spent $352,840.00 on restructuring. Since 2005 their books have been full of revaluations, losses, transferring of debts to the EPMU Training and Education Foundation Trust and ‚Äúprior period errors‚ÄĚ. In the 2011 Statement of Changes in Equity there is a ‚Äúprior period error‚ÄĚ of $1.4M (note 25).
The EPMU payroll is nearly $7M ‚Äď an average $60,000 gives them a payroll staff of approx. 116 people. (This is an estimate) ‚Äď that‚Äôs a lot of staff and is 60% of their costs.
The erosion of equity is the members issue and for them to discuss.
The general public though is allowed to view the financial performance of an incorporated society as the incorporated societies listed receive special tax treatment. This is fair and equitable and the New Zealanders as a whole should be rewarded for effectively donating time and money to charitable causes by having transparency.
However any incorporated society still has an obligation for good financial management. The EPMU paid donations of $45,000.00 of which we know $40,000.00 was paid to the Labour Party according to the Party Donation lists.
Is it wise to make donations when a business is struggling cashflow wise?
Then again these accounts are for the period that Andrew Little was the boss and he was desperate for a good list ranking. Hopefully now he is gone the red ink can stop flowing.