Report financial irregularity in a trade union or employers’ association
Types of financial irregularities the Certification Officer (CO) can investigate and how to ask the CO to conduct an investigation.
What the CO can investigate
The CO can only investigate the financial affairs of a trade union or employers’ association if there are circumstances suggesting one of the following:
- the financial affairs of the trade union are being or have been conducted for a fraudulent or unlawful purpose
- persons concerned with the management of those financial affairs have, in connection with that management, been guilty of fraud, misfeasance or other misconduct
- the trade union has failed to comply with any duty imposed on it by the Trade Union and Labour Relations (Consolidation) Act 1992 in relation to its financial affairs
- a rule of the union relating to its financial affairs has not been complied with
The CO can carry out an investigation regardless of whether the concerns relate to something happening now or something that happened in the past.
The CO’s approach to dealing with concerns
The CO aims to deliver her functions, including these powers, in a way that is fair, impartial and independent. In considering concerns she will give particular attention to:
- proportionality – considering whether the impact, including cost, of taking action exceeds the benefits that might be derived as a result of that action
- accountability – explaining the reasons for her decisions
- consistency – ensuring that there is a consistent approach to decision making
- transparency – ensuring that parties are informed of her decision and the reasons for
- targeting – ensuring that any action, including investigation and enforcement, is focused on the risk arising from the issue being considered
If the CO cannot handle your concern
You can also report concerns about financial irregularities to other people or organisations such as:
- officials at the trade union or employer’s association
- the property trustees at the trade union or employers’ association
- a union’s or employers’ association’s auditors
- the police
- HM Revenue & Customs (HMRC)
You have the right to contact others with your concern as well as the CO. However, the CO would not usually investigate a matter that is already being investigated by another authority such as the police or HMRC.
Who can ask the CO to investigate
Anyone can ask the CO to consider making an investigation into financial irregularity at a trade union or employers’ association. You do not have to be a member or an employee.
Your concern must relate to one of the irregularities that the CO has the power to investigate.
The CO also has the power to investigate an organisation’s financial affairs without receiving a complaint. For example, she may start an investigation after responding to suggestions in the media that a trade union may be breaking the law in the way it is managing its finances.
If you are an employee of a trade union, you may also want to read the CO’s guidance for Whistleblowers
How to raise a concern with the CO
When you contact the CO, you will need to:
- explain how your concerns relate to one of the financial irregularities that she has the power to investigate
- include as much evidence as possible to support your concerns
- explain why you think the CO should conduct an investigation
You should contact the CO as soon as possible after you suspect financial irregularity, even if you just want to talk about the possibility of raising a concern.
Email: [email protected]
Telephone: 0330 109 3602
After you raise a concern
The CO will consider the facts and evidence you provide. She or her team can take any of the following steps, if they think that there is sufficient evidence of possible financial irregularity.
Asking you for more information
Someone from the CO’s team may ask you to explain your concerns further, either in writing or face to face.
Meeting with the union or employers’ association
A member of the CO’s team may meet with the organisation to get information for the investigation.
Asking the organisation for a response
The CO’s team may ask the union or employers’ association for comment or an explanation, in response to your concerns. They may then come back to you to get more information.
The CO may also use her powers to require a union or employers’ association to provide relevant documents, for example accounting records or minutes of meetings.
Appointing inspectors
The CO has the power to appoint inspectors to investigate and report on the organisation’s financial affairs. The inspectors will usually be members of the CO’s team
The inspectors will have powers such as requiring:
- the organisation to supply relevant documents to support the investigation
- people from the organisation to attend meetings with the inspectors
- anybody else with relevant information to provide documents or meet with the inspectors
Anonymity
The CO will not reveal your identity if you contact them to discuss the possibility of raising a concern.
However, it may be difficult for her or her team to investigate your concern if they cannot contact you for clarification on the facts you have provided.
After you have raised a concern, the CO will usually reveal your identity:
- to the organisation you have complained about
- to anybody else she thinks needs to know (for example her legal advisers or other prosecuting authorities)
- if your name is included in any inspector’s report which is published on her website
In rare circumstances, the CO can choose to withhold your identity if you provide evidence that disclosing your identity might put you at risk (for example if you are at risk of violence or physical danger).
Possible outcomes
No action is taken
The CO may find that there is not sufficient evidence of possible financial irregularity or that she does not have the power to deal with a particular issue. In these cases, a member of the team will contact you to let you know that the CO will not be progressing further with an investigation.
This does not prevent you contacting somebody else (for example officials at the union or employers’ association) to discuss your concerns. You or somebody else can also ask the CO to reconsider their decision in the future, for example if you discover more evidence.
The CO resolves the issue without inspectors
If the CO can resolve an issue without inspectors, she will write to the trade union or employers’ association setting out findings, observations and suggested actions to prevent the issue happening again.
The CO may publish a copy of the letter on her website.
She will also contact you to let you know the outcome and to explain why she has not appointed inspectors.
The CO appoints inspectors
The CO will decide what the inspectors should investigate and report on. She can stop an investigation at any point (for example if she decides to refer a case to the police).
The CO will normally publish the inspectors report on her website. There may be a delay to the publication if, for instance, she has referred the issues to another authority.
A member of the CO team will normally contact you to tell you the outcome.
The CO identifies other problems
Sometimes enquiries into an organisation’s financial affairs can identify other problems. If that happens, the CO may extend the investigation to include problems that you did not include in your original complaint.
She may also refer the issues to another authority.
If you are not happy with an outcome
You can contact the Parliamentary and Health Service Ombudsman and/or apply for a judicial review.