THE UNION JACK CLUB A Charltsble Company Limlted by Guarantee governed by a Memorandum and Articles of Association Registered Charity Number: 208731 Reglstered Company Number: 00080683 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
The Union Jack Club A Charltable Company Limited by Guarantee governed by a Memorandum and Artlcles of Association Sandell Street. Waterloo, London SEI 8UJ Patron In Chlel.. His Majesty the King Governin8 Councll Vice Admiral Sir David Steel KBE DL Piesldent: Vlce President- 8r5gad*erJ R H Stopford CBE Honorary Treasurer: Honorary Treasurer: Mr B Wylie BFP FCA lappointed 10th December 20241 MT D A CDoper MBA, FCA Iresigned 30th September 20241 Trustees MrDEPAlbert Mr P E Dèvidstsn FRI MrCCTlte Retr Admiral S Dainion CBE Mrs R GaT5ide r Commodore J Llnter OBE Alr Commodore C Coton CBE lappointEd 10th June 20241 Mr R Srnith (appointed ioth December 20241 Chlef Executlve Ofllcer.. Mr kl H Player Setretarw. Mrs Z Nleld Solkltors: Ashurst LLP London Frulr and Wool Exchange l Duval Sqtfare london El 6PW Audltors: Moore Kin8Ston Smith ILP 6th Aoor 9 Aptx)1d Street London EC2A 9AP Bankers: Barc13ys Bank PLC UK 8anking I Churchill Place London E14 5HP Reglstered Ofllce,. 53ndell Street Walerloo London SEI 8UJ Inve5trnElIt Company.. Evelyn Partner5 45 Gresham Street London EC2V 78G Company Reg15tration Number: 00080683 ReElstsred Charity Number: Z08731 Page: I
The Union Jack Club A charitable Company Limited by Guarantee governed by a fvlemorandum and Article5 of Association Sandell Street, Waterloo. London SEI 8UJ GENERAL COIVIMITTEE (As al 31 December 20241 Warrant Officer I W Biggar Wèrrant Off¢cer I S Eardley Warrant Offlcer l KTomlinson MAcr M Dalziel Warrant Officer l R Buglass Warrant Officer I S Martin Warrant Officer l R Bould Warrant Officer S Catterall Warrant Officer I P Carney Warrant Officer l N S1mpson Warrant Olficer l J Lightfoot Warrant Officer I V Stokes OBE MVO DL Mr P Houldsworth MrJRay Mr V SiEvester Mrj Shepherd W3rrant Officer I l O'Neil Warrant Officer l M Hooper W8rrant Officer l D Hunter Warrant Officer l G Head Warrant Officer l M Cowe Warrant Officer l G Fellows Warrant Office¥ B Moore MAcr I Stone Warrant Officer D Iliffe Warrant Officer G Evan5 Warrant Ollieer I S Clark Warrant Officer E Kerslake Warrant Ofllcer l M Li8htowlers Warrant Officer S Thorpe Warrant Officer l M West Warrant Officer l M Farr Warrant Officer P Wilson Warrant Officer T Stead Page.. 2
THE UNION JACK CLUB COUNCIL'S REPORT and STRATEGIC REVIEW FOR THE YEAR ENDED 31 DECEMBER 2024 The Council, as the Governlng Body ol the Unlon Jack Club and Trustees of the Charity, present their report and accounts for the year ended 31st December 2024 in accordance with applicable accounting standards, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (The FRS 102 Charlties SORPI. the Compènie5 Act 2006 and the Charities Act 2011. STRUCTURE, GOVERNANCE AND MANAGEMENT The Unlon Jack Club The Union Jack Club consists of 13 Life Mernber5, all of whom stand surety for the guarantee as required in the Memorandum of Assoclatlon. The Articles of Association empower the Governing Council to elect new Members. New Members are elected by recommendation based on thelr expertise and quallflcations. Members are kept up to date on Trustee Issues by the dlstrlbution OF pamphlets and briefs. Members of the Councll The members of Councll during the year a shown on page l. At the Annual General Meeting of the Union Jack Club held on 4th June 2024, Mr Peter DavTdson and Mr5 Rachel Garside, being Directors of the Cornpany retiring by rotation, were re-elected as Directors of the Company for è term Df three years as defined in the Articles. notwithstanding the prDvisiDn of artitle 32. Brlgadier james Stopford, was re- elected a Director of the Company for t term of three years as defined in the Articles. The daily operntion of the Union lack Club is delegated to the Chlel Executive asslsted by the Management Team. Members of the Council meet four times a year. They review the accounts for the previous year and deliberate Dn the budget proposals put forward by the Chief Executive for the following year. Members ol the Council monltor the progress of the Budget throughout the year and assess the risks faced by the Union Jack Club, see below. General Commlttee Members of the General Committee are shown on pa8e 2. The General Committee's main duties under the overall control of the Council are to represent the mèmbership and ensure that Members. views and opinion5 are conveyed to the Council and Offlclals of the Club. It adw1ses the Countil on entrance fee5, annual subscriptions and accommodatlon charges, and decldes on the eledion of ex-5ervice members. Investment Powers and Pollcy During the year, the investments of The LlnlDn Jark Club were rnanaged by Evelyn Partneis, under a DÈ5cretionary Investment Management Agreement. The objectives of the portfolios are to seek to maxlmSse the toial reiurn on the portfolio while investing prudently and without exerclsinE undue risk. The retur4) objective of the main investment portlollo is to outpeiloTrn CPI plu5 3% pa. Additionally. the Union Jack club invest5 in a Property Fund IPITCHI, managed by Swiss knfe Asset Management. Remuneratloh Polity of Senior Management Personnel In relation to deciding remuneration for the Charity'$ senior executives, the Charity considErs the potential impact of remuneration levels and takes account of the followlnE addltlonal prin¢lples'. To ensure th3t the Charity can access the types of skills, experiences and competonties that it noeds In Its senlor stall, the Charity considers the specific scope of these roles and the link to pay. The nature of the wlder employment offer made to senior employees, Whe pay Is o*e part of a package that includes personal developrnent, personal fulfilment and association with the public benefit dellwered. Remuneration for the year ended 31 December 2024 comprlsed salary, pensitsn contributions, bonus aw8rd ajd healthcare benefit. There ère no other pecuniary beneflts for senlor or other st311 at the Charity. Page.. 3
THE UNION JACK CLUB COUNCIL'S REPORT and STRATEGIC REVIEW (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 OBIECTSAND ACTIVITIES The objects ol the Union lack Club are to promote the welfare of 5ervin8 and veteran onlisted members of the Regular, Reserve, anil Auxiliary forces of the Crown, thelr spouses and partners, and their families, as defined by the Council of the Union Jack Club. in establlshing. maintaining, and conducting a rosidential Club for their use and accommodation. The principal activity of the Union Jack Club continues to be the provision of all the normal facilities ol a re5identi31 Club in London for enlisted member5 and ex-membÈrs of the His Majesty's Armed Forces. their spouses / partners atid families. srRATEGIC REPORT R15k Management The TrusteE5 have a risk managempnt strate8y which comprises.. An annual review of principal risks and uncertaintie5 that the Union lack Club and its trading subsidiary face. The establishment of policie5. Systems and procedures to mitigate those risks identified in an Annu31 review. The provision of an adequate portfo110 01 insur3nce covers. The implementation of procedure5 deslgned to mlnimise or manage any potential impact on the Union Jack Club and its trading subsidiary* should those risks materialise. The availability of sufficient financial resources has been identilled as a main risk. The management of this 15 through regular rÈview of 3v3ilable funds. active management of trade debtors, creditors and working capital to ensure there is adequate and appropriate malntenance ol the buildin£ to allow the charity to meet it5 beneficiarie5' need$ and other objectives. The non-financial risks arising from fire, health and safety, food hyglene, GDPR and safety of members, guests and stafl are managed by robust policies, procedures and regular training of staff. Governance and Internal Control Risk assessment Is the responsibiltty of Council. The Council aims to ensure that.. the Charity Is operadng effectively 8nd efficiently,. its assets are safeguarded against unauthorised use Or disposition,. proper records are maintained and financia5 information used withill the Charity, or for publication, is reliable- and the Charlty complies with relevant laws and regulations. The systems of Internal control are designed to provide reasontble, but not absolute, assurance against material mis- statement or loss. They snclude.. a strategic plan and an annual budget approved by the Council,. regular consideration by thETrustÈes of financi31 results, variance from budgets. non~financial performance indlcators and benchmarking reviews,. delegation of authority and $eggatIoft of dutles,. and identification and management of risks. ThE Councll has introduced a formal risk management pre$S to assess busine55 risks and implement risk management strategi. A5 Part of this process the Council has reviewed the adequacy of the Charity's turrent Internal controls. The Unlon Jack Club (Tradlngl Limlted The Union Jack Club (Trading) Limlted, a wholly owned subsldiary ol the Union Jack Club, purchases, under strict controls. any accommodatlon that is not required for the benelSelarles of the Charity. The account5 Of the company are consolidated wlth those ol the Charity. Pag&'. 4
THE UNION JACK CLUB COUNCIL'S REPORT and STRATEGIC REVIEW (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 PUBLIC BENEFIT The Trustees conflrm that they have complied with the duty in section 17111 of the Charitie5 Act 2011 to have due regard to the Charity Commission's goneral guidance on public benefit, 'Charities and Publlc Benefit.. The Union Jad< Uub's charitable purpose 15 enshrSned in its objects as destribed. ACHIEVEMENTS AND PERFORMANCE At the end of the year 2024, the Union Jack aub Group had 3 Net Operating Ineome of £1,350,883 12023 Net Operating Income £2.167,3451. There was a gain on Investments ot £1,121,57512023 gain £487.8381 which increased Net Income to a 5urplu5 of £2,472,45712023 surplus £2,655,184). Improvements ta the Club in 2024 included creatlon of an accessible sulte on the 3rd floor and 2 new deluxe rooms on the 23rd floor. Every bedroom now has a smart TV and a free standing fan. During 2023. all radiator valves were replaced to enable individual control and in 2024 works were continued to replace and lag all pipework, The Union Jack Club also received legacies for £24,09212023 £1,327,505) and voluntary donations 01 £16,33912023 £25,267) generously given by Members and guests during the year, which are used for the development and maintenance of the Club. All capital prajects complÈted during the year represent the Club's fixed a55ets additions which are depreciated ovèr S . 10, 20 or 25 years. FINANCIAL REVIEW The financial statements consist of the consolidated result5 of The Union Jack Club and The Union lack Club ITr&din61 lirnited, and the consolidated 2nd Charity balance sheets. Principal sour5 of income were.. membership income of £986.09612023 £694,790),. residential services to members of £9,018,232 12023 £8,301,516) and income generate(J from non-members of £1,986,861 12023 £1.802,6471. Operating expenditure con515ted malnly of the provision of membership and residential service5 of £9.757.70412023 £9,153,356) and the cost of servicinB non-members of £1,076,48412023 £1,007,086). At the end of the year the Group had net income of £2,472.45712023 £2,655,184). land and building5 have been included In the accounts at net book value of £1.5 million12023 £1.7 million). The Council considers that the market value of the freehold land and building5 15 considerably In excess of the book values. RESERVES POLICY The Union Jack Club is a Charity and a150 a cornpally limited by guarantee and does not rdy upon public subscrlption in order to achieve it5 charltable objertives. The Club'5 reserves are represented by the buSldlngs and contents. without whlch It could not function. one invesltnent portfolio which is managed by profes510nal Investors under the direction of the Trustees, and a trading company of whlch the charitv 15 the sole shareholder. The Club achieve5 its objectlves of providing. maintaining and continuously irnproving reasonably prfced accomrr¢xlation and all the amenities of a London Club lor current and former enlisted members ol the Arrned Forces and theirfarnilies by relylng where necessary upon the income generated from investments to fund pensions and to make good any loss incurred In atJy year. The Counell has reviewed the Club'5 needs for resetves in line wlth the guldance Issued by the Charity Commlssion. The review concluded that. in order to allDW the Charity to be managed efflclently, and ensure the aub can continue to maintaln and Improve the accommodation and amenities, and cope through periods of changes in tradin& and in the event of sudden rnajor disruptions or dlsasters, a general unrestficted spendable or free reserve las delined by the Charlty Commission) should alm to be no less than 6 months operatlng costs, whl¢h In a nomial trading year would be expected to equate £ 5.2 million 3pproximatelv. At the 31st December 2024, the Club's total reserve5 am¢)unted to £17,120,33912023.. £14.612,4811 of whlth £4,528,632 was tied up In the Club's building and fixed 3ssets. and as such was not freely expendable. In addition £2,816,703 is deslgnated as the Infrastructure Fund and £2,819,033 as an Unreallsed Revaluation Reserve Fund, leaving £6,955,972 free as unrestricted funds. The reserves policy is revlewed on an annual ba51s. Note 16 Includes the utilisation of the designated funds. Page.. 5
THE UNION JACK CLUB COUNCIL'S REPORT and STRATEGIC REVIEW (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 INVESTMENT PERFORMANCE The Charity's funds are invested with Evelyn Partners, and Swiss Llfe Asset Mbnagement (Property Investmert Trust for Charltles- PITCHI. At the end of 2024, the combined portfolio value was £12,089.680. Th15 represents a net unro311sed galn forthe year Of £1,177.L7912023.. £495,891). a return o112.2%12023.. 8.0%). FUTURE PiAN5 The Unlon Jack Club plart foi 2025 Is to continue the rolllAg programrne ol refreshing and upgradlng bedroom accommodation. This involves rnoving accessible r00rn5 lower down the building and a complete refurbishment of the 17th floor. A review of facilltles offered on the reception 8roulld floor is planned for 2025. worksio commence in 2026. Planniog covers Restaurant, Main Mar, Reserve Bar Lounge. Wrlting Room and Baggage Rootn. An extsnslve upgrade to Llft$ 5, 6 and 7 Includlng new car interlors with digital display screen5. STATEMENT OF COUNaL'S RESPONSIBILITIES Tho Trustees (who are also dlrectors of The UniDn Jack Club forthe purposes of company lawl ale resnSIble lor preparing the TNStees' R@port and the Financlal Statements In accordance with applicable law and Unlted Kingdom A£countinE Standards Iunlted Kingdom Generally Accepted Accountlng Practlcel. Company law requlresTrustee5 to prepare Flnan£ial Staternent5 for each flnanci31 year which give a true and fèlrvlew of the state of the attair5 of the Charity and the Group. and of Its Income and expenditure for that perlod. In preparlngthese finènclal statements, the Trustees are yoquired to.. select suitsble accountlng policles and then applythem conslstsntly,. observe the methods and prnciplps In the Ch3ritie5 SORP., rnake judgments znd estimate5 that are reasonable and prudent,. stste whether appllcable accountlng standards. Includlng FRS 102, have been followed, subloct to any materlal departu$ dlsclosed and explained In the Financial StatementS,' statÈ whether a Staiem@nt of Recommended Practlce ISORPI applies and has hÈ@n followed, subjectl(Fany matsyial departure5 which arÈ explilned in the f Inanclal Statements., and prepare the Flnancial Statements on the golnE concein basls unless it Is Inappropriate to presume that the Charity will ¢antlnue In busines5. The Trustees are responslble fore#surlng proper accounting reco¥d5, Ihat dlsc105e the financlal posltion of the Charity with aSOnable accuracy at any time, enable them to ensure that the Financial Sl4tements tomplywith the Companies Act 2006. They are a150 responslble for 5aleguarding the asset5 of the Chailty. Company and the Group End hence for taking reasonable steps for the prevention and d&tection ol fraud 2nd other Irregularities. So lar as the Trustees are aware.. there is no relpvant audlt information of whlch the charitable company's auditor Is unaware., and the Trustee5 h4ve taken all step5 that theyought to have taken lo make themsefv@s aware of any relevant audif Information and to establlsh thatthe audltor Is aware of that inforrnatlOA. The Trustees are responsible lorthe maintenance and integrity ol the Charity and financial iAlorm3tlon Included on the Charlty's webslte. Leg*slation In the United Kin8dDtn govÈrnlng the preparation and dlssemination of financial statements may difFerfrom The fru5tees' Annual Report is approved by the Trustees of the Charlty. The Strategic Report, whh forms part of the Annual Report, 15 approved by the Trustees In their capaclty as directors In the company law of the Charity This reportwas approved by the Govemlne Council on 14 March 2025. Z Nleld MIH Company Secretary Page.. S
INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS AND TRUSTEES OF THE UNION JACK CLUB Opinion We hawe audited the flnancial statement5 of The Union Jack Club Iihe 'company'l for the year ended 31 December 2024 which comprlse the Group Statement of Financlal Activities, the Group and Parent Charitable Company B31arice Sheets, the Group Cash Flow Statement and notes tts the Financial Statements, including significant accountin6 poll¢ies. The financlal reporting frarnework that ha5 been applied in their preparatlon is applicable law and United Kingdom Acctsuntin8 Standards, including FRS 102 The Financial Reporting Stsndard Applicable in the UK and Republlc of Ireland, Iunited Kingdom Generally Accepted Accounting Practice). l# our opinion the flnancial statements.. give a true and fair view of the state of the group's and the parent chgrttable comp3ny's affairs as at 31st December 2024 and of the Broup's Incomin8 resources and application of resources, includin8 5ts Income and expenditure. for the yearthen ended,. have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice,. and have been prepared lfi accordance with the requirements ol the Companies Act 2DJ6 and ihe Charitles Act 2011. Basls for oplnlon We conducted our audit in accordance wlth International Stsndards on Auditing IUKI IISASIUKII and applicable law. Our responslb%lities under those standard5 tre further described in the Auditor's Responslblllties for the audit of Financial Statements section of our report. We are independent ol the charitable company in accordance with the ethical requlrements that are relevant to our audlt of the Financial Statements in the UK, including the FRC'S Ethical Standard, and we h2ve fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audlt evidence we have obtalned is sufficient and appropriate to provide a basis for our opinion. Conclusions relatlngto going toneern In auditlng the Financial Statements, we have concluded that the Trustees, use of the Eolng concern basis of atctsuntlmg in the preparation of the Financial Statements is apprDpriate. B35ed on the work we have performed, we have not identified any rnaterièl uncertaintie5 relating to events or condltlons that, indivldually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period ol al least twelve month5 Irom when the Flnancial Statements are authorised for Issue. Our re5pons¢bil%tles and the responsibilities of the trustees with respect to going concern are described In the relevant sections of this report. Other Infomiatlon The other information comprise5 the informatlon induded in the annu81 report, other than the financial statements and our audltor's report thereon. The trustees ?ro rÈsponsible forthe other inlomation. Our opinion ON the Financial Statements does not cover the other Information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance cDncluslOn thereon. In connection wlth our audit of the Financlal Statements. our responsibllity is to read the other information and, In doing so, consider whether the other information Is materially inconsistent with the Financlal Statoments or our knowledge obtained In the audit or otherwlse appear5 to be materially misstaied. If we Identify s(tch material incon51Stencies OT apparent material misstatements, we are required to determlne whether there is a materlal mis5taternent in the FSnancial Statements or a material misstatement of the other inforrnatlon. If, based on the work we have performed, we conclud& that there is a material misstatement of this other inlorm2tion, we are required to pOrt that fact. We have nothing to report in this gard. Pège.. 7
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF THE UNION JACK CLUB (continued) Opinlons on other matters prescrlbed byThe Companle5Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given ill Ihe. strategic report and Trustees, annual report for the financia1 year forwhich the Firtrancièl Statements are prepared is consistent with the FinaFtcl31 Staternents- and the strategic report and Trustees, annual report has be&n prepared in accordance wlth appltc&ble legal requirement5. Matters on whlch we are requlred to feport by exceptlon In the light of the knowledge and under5tallding of the group and parent charitable company 3nd its environment obtained in the course ol the audit, we have not identified materfal misststements In the strategic report or in the Trustees, annual report. We have nothing to report In respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requ5re us to report to you if. in our oplnion.. the parent charitable company has not kept adequate and stsfficient a¢eounting record5, or returns adequate for our audit have not been received from branches not visited by u5,. or the parent charttsble company's Fin2ncial Statements are not ITr agreÈment with the accountir)g records and return5,' or certain disclosures of Trustee5' remuneration specified by law are not made., or we have not received all the information and explanation5 we require for our audit. Responsibllltle5 of Trustets As explained more lully in the Trustees, re5ponslbillties statement set out on page 6, the Trustee5 (who are also the directors of the charitable company for the pu¥poses ol company lawl are responsible lor the preparation of the Financial Statements and for being satislled that they give a true and 18ir view, and for such internal control as the Trustee5 determine is necessary to enable the preparation of Financial Statements that are free from material mlsstatemenL whether due to fraud or error, In preparing the Financial Statements, the Trustee5 are responsible for assessing the group and parent charltable company's ability to continue as a going concern, disclosing, 85 applicable, matter5 related to going concern and using the going concern basis of accounting, unless the Trustees either intend to liquidate the group or parent charitable company or to cease operatlons, or have no realistic alternative but to do so. Audltoes responslbllitles for the Audlt of thè Flnanclal Statements Our objectives 3Te to obtain reasonable assurance about whether the Financial Staternenls as a whole 3re free from material misstatement, whether due to fraud or error, and to issuo an auditorfs report that includes our opinion. Reasonable assurance is a high level of 2Ssurance, but Ss not a guarantee that an audit conducted in accordance with ISAS IUKI will always detert a materlal misstatement when it exists. Mi55tatement5 can arise from fraud or error and are considered material if, individually or in aggregète, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audlt in accordan with1SAs IUKI we exercise professlonal judgement and maintain professlonal s¢Épticism throughout the audlt. We also.. Identify and asses5 the rlsks of material mSsstatement of the flnancial statements, whether due to fraud or erior, deslgn and perform audit procedures responsive to those risks, and obtain audit Evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of nCFt detectlng a material misstatement resulting from fraud Is highef than one resulting frtrm error, as fraud may involve tollusion, forgery. intentional omission5, nii5repres@ntations, or the override of Internal control. Obtain an understanding ol internal control relevant to the audit in order to design audit procedures thèt are appropriate in the circum5tan¢es, but not for the purpose5 of expressing an opin1on on the ellectiveness of the Rroup and parent charitable'company's internal control. Page.. 8
INDEPENDENT AUDITOR'S REPORTTOTHE MEMBERS ANDTRUSTEES OF THE UNION JACK CLUB {continued) Evaluate the appropriateness of the accounting policies usod and the reasonableness of accounting estimates and related disclosures made by the Trustee5. Conclude orn the approprialeness of the Tru5tees' use of the golng concern basis ol actounting and. based on the audit evldence obtained, whether a material uncertainty exists related to events or condltlons that may cast significant doubt on the group and parent charitable company's ability to contlnue as a going concern. If we conclude that a material uncertainty exists, we are required to dr8w attp.ntlon In our auditor's report to the related disc105ures in the financial stateme#ts or, if such disclosures are inadequate, to modify our opinion. Our conclusiorss are based on the audil eviden obtained up to the date of our auditor's report. However, fttture events or conditions may ctuse the group or parent charitable company to Cease to continue as a Boing concern. Evaluate the overall presentation. strurture ènd content of the linamcial staternents, including the disclosures, and whether the flnancial statements represent the underlying trèn58Ctions and events in a manner that achieves fair presentation. Obtaln Sufficient approprlate audlt evidence regarding the financial information of the entities or business activitle5 Wlthin the group io express an opinion on the consolidated flnanclal statement5. We are re5POnsible for the direction, supervision and performance of the group audit. We rernain 501ely responsible for our audit. We communlcate with those charged with governan regardln& ètnong other matters, the planned scope and timing of the aÈtdit and slgnlficant audit findings. Including any significant deficienci in internal control that we identify durin8 our audit. Explanatlon as to what extènt thÈ audlt was consldered capable of detettlng Irregularilles, Includlng fraud Irregularitles, includlng fraud, are instances of non-compliance with laws and regulations. We design procedures in Ilne with our responsibilities, outlined above, to detect material misstatements In iespect of irr&gu13ritles, including fraud. The extent to which our procedures are capable of detecting irregularltles, Includlng fraud is detsiled below. The objectives of our audit in respect of fraud a.. to Identify and assess tho risks of materlal misstatement of the Financial Statements due to fraud,, to obtain sufflclent appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, thrO8h doslgning and irnplemeTrting appropriate responses to those assessed risk5,' and to respond appropriately to instancos of fraud or suspected fraud identified during the audlt. However, the primary responsibillty for the prevention and detectlon of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows: We obtained an understanding of the legal and regulatory requirements applicable to the charltable company and conSided that the most significant are the Companies Act 26. the tharities Act 2011, the Charity SORP, and LIK flnèncial reporknng standards as issued by the Flnancial Reporting Council. We obtained an uTrderslandin8 of how the charitable company ctrmplie5 Wlth these requirements bv discusslons wlth management and those charged with governance. We assessed the rlsk of materlal misstatemeftt of the Financial Statements, including the risk of material mi5Statement due to fraud and how it might occur. by holding discussions with mana6emEnt and those charged with Bovernance. We Snqulred of rnanagernent and those charged wlth goverthance as to any known Instsnces of non- compliance or 5uspetted non-compliance with law5 and gUlations. Based on this understandln& we designed specific approprlate audit procedures to identify instances of non-complian with laws and regulations. This included making enquiries of management and those charged with governance and obtalning additional corroborative evldence as required. Page.. 9
INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF THE UNION JACKCLUB There are Inherent limitatioS in the audit proc&dures descrfbed above. We are less likely to become aware of instances of non-compliance with13w5 and regulations that are not closely felated to events 3nd transactlons reflectod in the financial stètemETrt5. A150. the risk of not detecting a materlal m15Statement due to fraud is higher than the risk of not delecting one resulting from error, ès fraud may involve dellberate concealment by, for oxarnple, forgery or intentional misrepresentations, or through collu510n. Use of our YÈport This report 15 made 501ely to the ¢harit3ble iompanvs members. as a body, in actordance with Chapter 3 01 Part 16 of the Companie5 Act 2006. Our audit work has been undertaken so that we might state to the charltable company's members those mattels which we are required to state to them in an zuditorfs report and for no other purpose. To the fullest extent permitted by law. we do not 8ccept or 3ssume responsibility to any party other than the charitable ccHnpany, the charltèble company's memb&rs, as a body, and the charily's trustees. as a body, for our audlt wcrk, for this repor( orforthe oplnlon we hève fortned. Adam Fullerton (Senlor Statutory Auditorl for aFTrd on behalf of Moore Kingston Smith LLP, Statutory Auditor 6th Floor g Appold Street London EC2A 2AP Date.. lo f,- Qo2r Page.. 10
THE UNION JACK CLUB CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ( Incorporating Income and Expenditure Account ) FOR THE YEAR ENDED 31 DECEMBER 2024 2024 Note Unrestritted Fund Infra5trurtu¥e l Legacy Fvnd Tot81 2024 INCOME + ENDOWMENTS Donations and legacies Trading 8Ctivifjes Other Income Other Income-1Tr5yranTr Clalm Investment Income 152.879 1.986,861 38.105 152,879 1,986,861 38,105 292,511 2,470.356 292,511 2.470,356 CharttableA£tlvltles Subscriptions Provision of resldentl81 services 986.096 9,018.232 986.096 9.Ok8,232 Total Oper4tinB Income 12,474.684 12,474,684 EXPENDITLIRE Ralsln8 Funds 1.076.484 65.954 56,201 160,458 7,OUO 1,366.097 L076,484 65,954 56.201 160.458 7,OOD 1.366,097 Fundr£lsingand publlcity Investmenr managementfees Finance costs Flnance cost of penslon Ilab11Ity Total cos¢ of rai5ingfund5 Charltable Actlvltles PIovi5ion of membershlp and resldentlal service5 9.757,704 9.757,704 Totsl Operatlng Expenditure 11.123,800 11.123,800 Net Operatlng IncomellExpenthturel 1,350.882 1,35D,882 Net Galn on investment asseis io 1,121.575 1,121,575 Net Income 2,472.457 2.472,457 Tran5fÈr between Fund5 Atiuarlal Gain on pension scheme Gross iransFei between funds 15 16 35.400 35.400 Net Movemeni In Funds 2,507,857 2,507,857 Fund balance5 brouEht forward l January 2024 11,795.778 2,816,703 14.612.481 Frtd balèncès car¥led forward at 31 DÉcember 2024 17 al 14,303,635 2,816,703 17.120.339 The statementof flnancial actwitie5. whlch Incorporates the Income and expenditure account, Includes all gains and losses recognlsed in the year. All incomlnÈ rèsourtP5 resources eKpended are derlved from tontinuiTrg activitles. Comparatlve flwre5 can be found on page 12 Page.. 11
THE UNION JACK CLUB CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ( Incorporating Income and Expenditure Account ) FOR THE YEAR ENDED 31 DECEMBER 2023 2023 Note Unvestrlrted Infrastructurel Legacy Fund Fund Total Z023 INCOME + ENDOWMENTS Donaiions and legacles 1,433,039 1,802,647 93.963 12,643 233,249 3.575,541 1,433.039 1,802,647 93,963 12,643 233,249 3,575,541 other Income OtherintomÈ- ISUanCe Clai InStment Income Ckrltabk Artlvliles Substripifons Provlslon Gf resldentlal serve$ 694,790 8.301,516 694,790 8HOL516 Total Operallnz Inrome 12,57L848 12,57L848 EXPENDiniRE Ralslng Funds I,W7,086 52.IB7 4L116 142.6S8 8.100 1.251,147 1.007,086 52,187 4t.116 142,658 8.1 1.25LL47 Invesimeni managemeni fees 15 Total $t01 r•lslnKfurtds CharltsbleActivitlES Provislon of membership and reSIdlIa1 setylces 9,153,356 9,IS3,356 Total Operatlng Expendlture 10,404,S03 10.4011,503 Nel Operatlng Incomel IENpendltuYel 2,167,345 2.167,34S Nelgaln on Irbvestmenla5sets io 487.838 487,838 Net Incon 2.655,184 2,655,184 Tr8tysler bÈtweety Fund5 Aciuarlal losson penslon S(Me Gro55 transferbetween funds 113,E(JOI 11,3ZO,3951 111,6001 16 1.320,395 Wet mant In funds 1321,189 1.320,395 2,641,583 Fund balances broughtfv)rward JJarnuary 202 10.474,589 1,496,308 11,970,898 Fnd balanttscaiilad forward ot 31 De¢eMber 2023 17bl 1¥795,778 2,816.704 14,612.481 The statementof fin3nci31 actlvitles, whlth Incorptsrate5 the income and expendltute account, includes 311 galns and lossÈs re¢ognlsed In Ihe year. All incoming re50urcesand resources expended are deriwed from contlnulng activitie5. Comparatlve figure5 can be fournd orn pa8e 11 Pa8e.' 12
THE UNION JACK CLUB BALANCE SHEET AS AT 31 DECEMBER 2024 Charlty Group Notes 2024 2023 2024 2023 Flxed Assets Tangible a55ets Investments 4,606,632 12,089,682 4,436,949 9.717.3(X) 4,606.632 12,D89,680 4,436,949 9,717.298 io 16,696.314 14,154,250 16,696,312 14,154,248 CurrentAssets Stocks Debtors Cash at bank and in hand li 12 96.875 1,492,805 1,886,866 92,693 1.442,611 1,816,274 122.114 1.529,507 2,171,136 111,160 1,513,227 2,283.754 3,476,547 3,351.578 3,822,757 3.908,141 Creditors.. Amounts falling due wlthln one year 13 13,818,119) 13,497.3151 13,253,949) 13,258,315) Net Current Asset$ 1341,5711 1145,7371 568,808 649.826 Total Assets less Cuirent Liabilitles 16.354,742 14,008,513 17,265,120 14,804,074 CreditOf5.' Amounts falling due after mts than one year.. Discretionary pension prov5slon 14 15 123,0801 1121,700 122,5921 1169,000 123,0801 1121,700 122,5921 1169,000 Net Assets 16,209,962 13,816,921 17,120,339 14,612,481 Accumulated Funds Unrestricted Funds.. Designated Revaluation Rese¥ve Designated Fixed Asset Reserve Designated Infrastructure Fund Incorne and Expenditure Reserve 16 16 16 16 2,819,033 4,528,632 2,816.703 6,045,593 1.622,680 4,280,949 2,816,703 5,096,589 2,819,033 4.528,632 2,816,703 6,955,971 1,622.680 4,280,949 2.816,703 5,892.149 17al 16,209,962 13,816,921 17,120,339 14.612,481 As permitted by S408 of the Compani* Act 2006. the Company ha5 not presented its own statement of linanclal activities and related notes. The Charity surplus for the year was £2.393.04112023 surplus £2,512,047) The linanci81 statements We approved and authorised for issue by the Governing Council of The Unlon lack Club or) 14 March 2025 and were slgned below on its behalf bv.. PresldÈnt Vlce Admlral Sir David Steel KBE DL Treasurer Mr Ben Wylie BFP FCA Company No.. 00080683 Page.. 13
THE UNION JACK CLUB CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Cash flow from operatlnE actlvltles Net cash provided by operatln8 activitie5 1.957.403 3,ISI,188 Cash flows from Investing actlvltles Investment incorne and interest received Finance costs (Decreasel I Incre3se in ca%h held by investment tnaTrager Proceeds from disposal of fixed asset investments Acqu15Ition of flxed asset investments Payments to acqulre tangible fixed assets 292,511 1160,4581 123,4251 1,849,567 13.076,9501 951.265 233.249 1142,6581 135,233 719.185 13,682,710) 682,162 12.070,021 13,419,764) Cash flows from flnane4ng attivities Net decrease in cash and cash equivalents 1112,6181 1268.5741 Cash and cash equivalents at beginning Df year 2,283,754 2.552,328 Cash and cash equlvalents at end of yèar 2,171,135 2.283.754 Reconclllatlon of net Intome to net tash flowfrom operatln8 artlvltles 2024 2023 Nei Movement In Funds 2,507,857 2.641.585 Adjustments for: Less Investrnent income Add finance costs Add depreclation and disposal of tsngible fixed a55et5 Add Loss / Subtract gain on investment assets Add I Subtract Pension provision adjustment Subtract loss on sale of tangible fixed assets Increase in stocks Increase / Decrease in debtors Increase / decrease in credltors Decrease iti LongTorm Credltors 1292,5111 160,458 756,852 11,121,574) I47,3) 24.732 110.9541 116,2801 14.3651 488 1233,2491 142.658 792,480 1487,8381 200 124,8841 11,255,436) 1,568,324 7,348 Net ¢3sh provided by operatln8 actlvltles 1,957,403 3,151,188 Analysis of changes in net debt As at the IstJanuary 2024 Cash Flow As at the 31st December 2024 Cash £2,283,754 1112.6181 £2.171,136 Page.. 14
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 COMPANY INFORMATION Thp Union Jack Club, a registered charlty, Is a company limltod by guarantee, not having a share capital and is iticorporated in England and Wales. In the event of a winding up, each member may be TEqulred to contrlbute an amount not exceeding £1 towards the settlement of the aub's liabillties. The re8i5tEred office is Sandell StreÈL Waterloo, London, SEI 8UJ. ACCOUNTING POUCIES Accounting Convèntlon The Flnanct31 Ststements are prepared under the historlcal c05t convention, modified by the inclusion of fixed asset Investments at market value (note 101, and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The Charitable Company and its subsidiary are a public benelit group lor the purposes of FRS 102 and therefore the Charity also prepared its Fihancial Statements in accordance with the Staternenl of Hecommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applScable In the UK and Republic Of Ireland (The FRS 102 Charities SORPI, the Companies Att 2006 lunder the provision of the Large and Medium-sized Companles and Groups (Accounts and Reportsl Regulations 2008 ISI 2008141011, and the Charitie5 Act 2011. The Financial Statements consolidate The Union Jack Club and sts sLsbsidi3ry, The Union lack Club (Trading) Llmlted. A separate Statement of Financlal Aclivitie5 and Income and Expenditure Account are not presented for the Charitv itself as the Charity has taken advantaEe of the exemptions afforded by section 408 of the Companles Act 2(M)6. The Financial Statements are prepared in sterling, whSch Is the financial currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest pound. The princip31 accounting poliaes adopted in the preparatlon of the financial Statements are set oyt below. Going Concern The Financial Statements have been prepared on a going concern b3515 which assume5 the charity and tradin company will continue operatlonal existence for the foreseeable future. The Trustees have a5S25sed whether the use ol the going CDncern basls Is appropriate and have tonsldered possible events or condltions that mlght cast significant doubt Dn the ablllty of the charity 3nd trading Company to continue as a going ¢oncern. The Trustees have reviewed the forecasts and projections prepared by management for 3 period of at least twelve months from the date of approval of these 15nancial statement5. These show that the Club is projected to make a surplus for the year endlng 31st December 2025. These forecast5 have been preparpd on a prudent basis, and the Trustees believe the ssumptions and estimates used in their preparation are re3son3ble. Following a revlewof the financial situation. the Trustee5 are conlident that glven Its strong asset base. including its r7restricted Investment portfolio, the chartty and trading company has sufficient reserves to cover liabilitie5 as thev fall duÈ and therefore the financial statements are accordingly prepared ors a going concern basis. Page.. 15
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 ACCOUNTING POLICIES Icontlnuedl Tanglble Flxed Assetg Tangible fixed assets with a Cost of £5,000 or more are capitallsed. Depreciation of tangible fixed assets Is provided, on 3 stfaight line basis, at amounts estimated to Wfite off the cost over thelr expected usefvl life as follows: Freehc>ld buildings Major plant Items FurnltLire, Ilttlngs and sundry equipment Computer equipment 10- 50 years 20 & 25 years Iwhero appropriatel 5 & 10 ¥ears (where approprlatel 3 & 5 yeats (where appropriatel The Club's collecrlon of pèintlng5 and clocks is c3rrled at valuatlDn and is Thot depreciated on the grounds that any depreciation charge would be imrnaterial. Certain fixed a55et5 in Furniture & Fittings are now recognlsed as hamng S years of useful economic Ilfe IUELI. Provlslon for Resldentlal 5ervicè5 Ilncome and Expendlturel This represent5 the amounts derived from the provlsion of services. which fall wlthin the aub's ordinary artivities, all of which are continulng. Donations. LeRacles and Glfts All income is recognised when there ¢s entÉtlement to the funds, the receipt Is probable and the amount can be measured reliably. Donatlons, legacies and Élfts are included in InMIng resource5 when receivable. When donors speclfy that donatlons, legacles or glfts are for particular purposes, they are treated as restricted income. Subscriptlon5 Subscriptions Income derives from subscrlption fees of members. The subscription period runs in conjunction with the financial year. Tradlne Income Trading Income con515ts of income generated by the subsidlary from the provision of accommodation alld catering to non members. Investment5 Interest receivèble and Income from investments are included on the basls of the amount earned during the year. Inv25tmEnt5 are classified as fixed assets In accordance with the Charltles SORP. Both reallsed and unrea115ed gains and losses are rècogni5ed in the Ststement of F¥nancial Activities. Financlal assetslliabllltles measured at amortised cost Cash and cash equlvalents include cash at banks and in hand and short term depot$ wlth a maturity date of three months or le5 Debtors and creditors receivable or payable wlthin one year of the reportin8 date are carried at their at transaction price. Oebttsrs ènd creditors that are receivable or payable In rnore tl>an one year and not sublect to a market rate of interest are measured at the present value of the experted future receipts or payment discounted at a rnarket rate of interest, Operatlng Leases ReNtals under operating leases hève been tharged to the Statement of Financial Acllvities on a strai8ht line basls. Resources Expended Resources expended are included in the Statement of Financlal Actlvlties on an accruals basis. Liabilities a recognised once there is a legal or constructive obligation to transfer economic benefit to a third party,11 15 probable that a transfer of economlc benelit5 will be required in settlement and the amount of the obligation can be measured Certain expendlture is directly attributsble to specific acuvltles and has been included In those cost categories. Certain other costs, which arè attributable to more than one aetivilyj are apportioned across cost categories on the basis of occupancy rates between the Charity and its subsidiary, and the proportion ol time spent by stafl on those Page.. 16
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Penslom Contributlons The Unlon Jack Club pays deflned wntributions towards stakeholder penslon schemes for qualifyln8 employees. The annual cost Is expensed in the Statement of Flnan¢ial A¢livlties. Provision is made the Financial Statements for the Council's estimatod liability in respect of existing discretionary pensions directly paid by the Club within the Statement of Financial Activitie5, Balance Sheet and Césh Flow Statement in accordance with FRS 102 SORP module'Retirerllent and post-employment benefits,. The Union lack Club eonrributes to money purchase schemes for certain senlor employees., contributions are assessed on entry as a level monetary amount payable over the employee's expected career with the Club. The Union J3ck Club also provides the contributory Group Personal Pension Plan foy all qualifying @mployees. The Plan is set up in line with the workplace pension scheme set up by the govwnment under NEST INational Employment SavinRs Trust). Stixks Stocks are stated at the lower ol c05t and net realisable value, Fund Accountlng Fund5 held by the Charity are etther.. Unrestricted generolfunds these are funds which can be used in accordance with the charitable objects at the discretion of the Counol. Re5trKtedfvnds these are funds that can only be used for particular purposes specifled by thE donor or whe fund5 are raised for particular purposes within the objects of the Charity. Unrestricted designated funds these lunds represent funds whSch have been separately desIated by the Trustees trf the Charity, as part of unrestrScted funds. Crltlcal accovntlng E5tlmate5 and area5 of ludgement In preparlng Flnancial Staternents It is necessary to mako certaln judgernents, estimates and assumptlons that affect the amounts recognised in the Ftnanci81 Statements. In the view of the Trustees in applying the accounting policies adopted. apart from the estimate listed below, no judgements were required thai have a significant effect on the amounts recognised in the Financial Statements nor do any estimates or assumptions made carry a significant risk of material adj(Astment in the next financial year. Judgements included in these accounts.. the pension estimate in Note 15a. DONATIONS, GIFTS AND LEGACIES Unrestrictsd Restrlcted 2024 Indimdual Don3tlOll5 Legacy Gift Md Reclaim On Subs & Donations Servlce non-publicfunds 16,339 24,092 112,449 16.339 24,092 112,449 152,879 152,879 bl Unrestrlcted Restrlcted 2023 Individual Doftatlons Legacy Gift Aid Reclaim On Subs & Donations Service non-publlc funds 25,267 1,327,505 80,267 25,267 1.327.505 80,267 1,433,039 1,433,039 Page.. 17
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 NET INCOME FROM TRADING AcfiviTIES OF SUBSIDIARY (all unre5trlcted for current and prlor yearl The Union Jack Club h35 one wholly owned subsidiary, The Union Jack Club ITradingl limited. which operates the trading activity of the Club and gifts its taxable profit to the Club. A summawy of the results of the subsidiary is shown below.. 2024 2023 Turnover Cost of sales 1,973,239 1.795.054 1,072,555 999,9111 Gross profit Administration expense5 Operating profit 900,685 13.9291 795,143 17,1751 896,756 787,968 Other income 13.622 7,593 Profit on Ordinary Activie5 before taxation 910,378 795,561 Tax on Profft Dn Ordinary Actwitie5 Retained earnlngs brought forward 795,561 666.027 Gift Aid Distribution to The Union lack Club 795.5611 1666,0271 Retalned earnlnBS carrled forward 910,378 795,561 The Union Jack aub's trading activities include an aont of £1,054,379 12023 É983,5141 for rent and other servlces charged by the Club to its subsidiary which is eliminated on consolidation. The group's trading actlvlties conslst of the turnover of the subsidiary a5 shown above. Expenditure of £1,076,483 12023 £1,007,086) Is also Included which cotllprises c05t Df 5ale5 and administration expenses. INVESTMENT INCOME (all unrestrirted for current and prlor yearl 2024 2023 Shares UK Ilsted Property Portfolio UK listed Shares Over5ea5 listed 118,210 33,482 55,308 98,221 34,783 34.796 207,000 85,511 167,8 65,449 UK bank deposit interest Total for the Group 292,511 233.249 Page.. 18
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 INCOMING RESOURCES FROM CHARITAULE ACTIVITIES lall unrestrlcled fDr current and prloryearl 2024 2023 Subscriptions Provlslon ol resldentlal seNlces'. A¢commodatio Qtering and barsales 986,096 694.790 6,016,989 3.OOL.243 5,636,138 2,665.378 10,004,327 8,996,306 INSURANCE CLAIM 2024 2023 Other Income- Insurance Claim 12,643 EXPENDITUAE Staff Costs Other Depreclatlon Total al EXPENDITURE ON RA151NG FUNOS Trading activltles 2024 1,076,484 65,954 56.201 160.458 7.000 L076,484 65.954 56.201 160,458 7,000 1,366,097 Investment managernent fee5 Finance cosrs Flnance cost ol pension liability 1,366.097 ExpeNDITURE ON CHARITABLE ACTIVITES Provlslon of membershlp and resldentlal services 5,894,061 3.106.791 756,852 9,757,704 Total Operating ExpenditUTe 5,894,061 4,472,888 756,852 11.123,801 IrKludinE audltor remuneration of £20,65012023 £14,051) Staff Costs other Depre¢latlon Total bl EXPENDITURE ON RAISING FUNDS Trading activitles Fundraislng and publlclty Investment managemeftt fees Flnance costs Finance cost of penslon Ilablllty 2025 1,007,086 52,187 41,116 142,658 8,100 1,007,086 52,187 41.116 142.658 8.100 1,251.147 1,251.147 EXPENDITURE ON CHARITABLE AcfiviTES Provision of membershlp and resldentl21 sÈrvlcÈs 5.527.921 2,852.358 773,077 9,153,356 Total Operatlng Expendlture 5.527.921 4,103.505 773 077 10,404,503 All of the above were unrestrkted expendltsjre for the curn1 and In the PllDr year. PÈgÈ.' 19
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS {continued) FOR THE YEAR ENDED 31 DECEMBER 2024 EXPENDITURE Icontlnuedl cl ANALYSIS OF SUPPORT COSTS Provision of membership and resldentlal servlces intludes support costs as follows.. 2024 2023 Administratlon stalf costs Legal and other professlonal 730,773 ),564 705,597 83,S96 821,337 789.193 Basis of allocatlon.. The above costs are fully allocated to the provision of membership and residential Servi$. dl STAFF COSTS 2024 2023 Wages and $31aries Pension eontributlons Employer's National Insurance Contributions 5,250,Ig4 168,033 475,834 4,970,826 151,029 406,066 Club 5tsff costs 5,894,061 5,527,921 2024 No. 2023 No. The number of employees receivtng emoluments of £60.000 or more was as follows.. £60,001- E70.000 £70.001- £80,OOQI £80,001- £90,000 £130,001- £140,000 2024 2023 The average monthly nurnber of employees during the year was as follows.. Mandgement and Administratlon Union Jack Club stsff li 151 io 162 162 172 Note.. On average 137 of the 162 employees were Permanent Stall12023 130 of the 172 employees were Permanent stafll èl TRUSTEES AND KEY MANAGEMENT PERSONNEL No Trustee recelved emoluments in the perlod12023 £NILI. Totsl travel expenses of 2024 £1,59912023 £4,553) were paid to 3 12023 31 TrusteÈs during the period. Key management personnel Included the Trustees, Chief Executive and Senior staff reporting dsrectly to the Chlef Executive. The tot31 emolum&nts of the Charity's key management personnel were £3(19,13012023 £290,966). Page.. 20
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Charltv Furniture. Flttlngs and Equlpment TANG16LE FIXEDASSETS Freehold Land and Bulldln8S Group and Charbty Total Cost At l January 2024 Additlons Disposals Removal of flIV deprecièted a55ets 6,855,920 5,198,154 951.265 165,7511 1864,9101 12,054,074 951,265 165.7511 1864,9101 At 31 Deeember 2024 6,855,920 5 218.759 12 074 679 Depretlatlon At ljanuary 2024 Charge for the year Disposals Removal of fully depreciated assets 5,170,729 190,176 2,446.396 566,676 141,0211 1864,9101 7,617,125 756,852 141,0211 1864,9101 At 31 December 2024 5,360,905 2.107.142 7.468.Q48 Net Bookvalue At 31 December 2024 1,495,015 3,111,617 4,6C16,632 At 31 December 2023 1.685.192 2.751,758 4,436,949 Fixed assets held bythe Urkion Jack Club are as detailed above. Freehold sand and buildings comprise the Union lack Club's premises at 91 Waterloo Road, Gascoigne Room and Sandell Sireet. The Union Jack aub's premlses were built as part of a redevelopment, completed in 1975, for which the Union lack Club provided the site but paSd only a small part of the building costs. These premises were revalued in 1975 at £3.9m. It shtsuld be recognlsed that the value of the premises hé5 substantially increased in value. The other costs represent additions since 1975. In accordance with the transitional ar¥angements of the original FRS 15, Tangible Fixed Assets, the valuation h85 not been updated. Page.. 21
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 10 FIXED ASSET INVESTMENTS 2024 2023 Group Investments at marketvalue.. At l J3nuary 2024 Addltions Disposals Net ie81ised gain / I loss l on disposal Nei unlealised Investment gairt / I lossl 9,673,233 3,076,950 11,849,567) 155,6041 1,177,179 12,022,190 6,221,870 3,682,71C) 1719,1851 17,9811 495.819 9,673,233 Cash held by Investment manager 67,490 44.065 At 31 December 2024 12,089,680 9,717,298 Investments comprise= UK equitles and funds Overseas equitie5 Cash held 5,222,569 6,799,621 67,490 5,610,838 4,062,395 44,065 12,089,680 9 717.298 Hi5tori¢al cost at 31 December 2024 9,281,156 6.401.269 Club As above Investment In subsldlary undertaking 12,089,680 9,717,298 12.089.682 9.717,3CM) 11 STOCKS Charlty Group 2024 2023 2024 2023 Stocks- CleaninE/Fine Wines Shop Caterfng Bar 48,788 30,526 48,788 25.239 19,240 28,847 30,526 18,467 23,384 38,783 19,240 28,847 23,384 38,783 96,875 122 114 111,160 Page.. 22
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS {continued} FOR THE YEAR ENDED 31 DECEMBER 2024 IZ DEBTORS Charity Group 20Z4 2023 2024 2023 Trade debtors Membership Debtor5Accoufjt Other debtor5 Prepayrnents and accrueil income 6,802 1,026,203 14,555 445,246 33,322 911,844 4,860 492,585 43,503 1,026.203 14,555 445,246 103,938 911,844 4,860 492,585 1,492,805 1,442,611 1.529,507 1,513,227 L3 CREDITORS.. AmDUnts falllngdue withln one year Charity Group 2024 2023 2024 2013 Trade ¢rÈdit¢rs Amount owed to 5ub5É(fiary other creditors othertax and social secu¥ity credltors Accruals Deferred Income 237,365 679,237 40,244 646,937 523,461 1,690,875 488,891 354,528 16,187 667,039 445,310 1,525,360 241.581 555.349 96.126 698,907 526,461 1,690,875 16,187 671,555 489,865 1,525,360 3,818,119 3,497.315 3,253,949 3,258,315 14 CREDITORS.. AmouAt5falllng due aftÈrmorÈ one year ha¥lty Group 2024 2023 2024 2023 Deferred Income 23,080 22,592 23,080 22,592 23,080 22,592 23.080 22,592 15 PENSION PROV1510N al Dlscretlonary Penslons tliscretionary pen5ion5 have been granted to certaln former employees, whlch are pald bythe Club directly. Therefore, prowsion of £121,70012023 £169,800) h£s been made In these atcounts for the future liability expecte(f In respect of exTsting penslonÈrs In Ilne wlth thÈ rÈquiremÉnts of FRS102. No specific asset5 are held. The latest valuatlon of these Ilabllltles wa5 carried out a5 at 31 aecember 2024 by an independent quallfled actuarv. Penslon payments are ch8r8ed £8ainst the Pro510 whichls re-355essed annually. Pension payments for the year were £18,900. IntEre5ton the provision and the1I2bility aring on the Eranting of new penslons Is charged to the Intome and expenditurp aciount. Actuarial experEnce g3ins and105ses are reco8nlsed under othercomprehensive income. The key FR5102 855vmption5 used to value the Ilabllltles are setout In the follo& table. The table a150 sets outthe present value of the FR5102 Ilabllltles. Thls present value Is Èqual to the gros5 pension Ilablllty. AssumDtlons 2014 2023 2022 Dlscount rate Pett5ion increase5 Life expectancyfora 65year old female pensloner Life expectancyfora 65 year old male pensioner 5.0% 3.5% 88.4 85.7 4.4% 3.5% 88.3 85.7 5.1% 3.5% 88,7 86.1 Page.. 23
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 15 PENSION PROVISION Icontlnued) The gross pension liabllity under FRS 102 moved as follows during the year to 31 December 2024 2024 2023 Gross pension Ilabillty at start of year PerTrsions paid Charge to finance income Actuarlal Igalnl1105s recognised outside the income and expendlture account 169,¢J)O 118.9001 7,000 135,4001 168.800 121,5001 8.100 13.600 Gr055 pension liability at year end 121,700 169,000 The following amounts are included as Ichargesl/credits to finance income under FR5 102.. Interest tsn gr055 pen5ton liability 7,000 8,1(K> Aduarial Ig8inl I Ioss recognised outslde the Income and expenditure account 135,4001 13,600 Other Penslon Arrdngements The Union lack Club commenced paylng defined contributions towards stakeholder pension schemes for certain existing employees from l June 2001. The annual cost is expensed in the statement of financial activities. The Union Jatk aub provide5 a cotTrtributory pension scheme for all employees. At Ihe end of 2024, there were 93 employees in the scheme. The Club Contributes 5% of employee's salary ènd the ernplDyee 3%. The remainder of employees decided to opt out ot the scheme. The annual cost is expensed it) the staterThent of financtal activities. The Union Jack Club also contribute5 5% of employee's salary to other defined penslon schemes. Employees are able to increase the employee's contribution if desired. Page.. 24
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 16 MOVEMENT ON RESERVES Deslgnated Revaluatlon Reserve DeslEnated FIKed Asset Reserve Deslgnated Infrastructure Fund Income and EKpenditure Reserve Total At l January 2024 1,622,680 4,280,949 2,816,703 5.892.149 14,612,481 Surplus I IDellcitl for the year L350,883 1,350.883 Net Galns and transfers 1,196,353 247,683 1287,0611 1,156,975 Utillsatlon of funds At 31 December 2024 2,819.033 4,528,632 2.816,703 6,955,971 17,120.339 Included in the income and expenditure resetve is a penslon liability of £12L70012023 £169,0001 Net galns and transfers represetit the actuarlal gain / Ilossl on pension liabilities, realised and unrealised gains/ Ilossesl on Investments and any transfers to / from clesignated funds. It also includes a transfer between the revaluation resetve and the income and expendltu¥e reserve of £78,000 which is the difference between the depreciation on the hlstoric cost I£Nill and the revalued 3mount1£3.9 mlllionl, of freehold buildlngs compleied I 1975. The depreclatlon rate is 2% SEra1ght line. In 2014 Trustees made the decision to formally recognige ihe monies tied up in the tanglble fixed assets of the charitv as a designated fund, to make it clear to the reader of the accounts that thls money 15 not freely expendable OTr the Charity's actlvitie5, A transfer was mède from unrestricted general funds to reflect thi5. TheTangible Fixed Assets designated fund 15 i&tilised over the lilotime of the assets. In 2018, the Tru5tee5 made the decision to cover any forthcoming major ropeirs externally or internally to the building by creating a rnajor repair fund. In 2019, the Trustees decided to retitle the fund as Infrastructure Fund which was utilised during the year to develop the Gascolgne Room. The Trustees have decided to contlnue with the De5ign3ted Infrastructure Fund which was establlshed in the 2019 account5. During 2024, Nil was added to the fund. In 2023, £1,320.395 wa5 added. Page.. 25
THE UNION JACK CLUB NOTES TO THE FINANCIAL STATEMENTS {Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 17 ANALYSIS OF NET ASSETS BY FUND 2024 Deslgnated DeslÉnated Revaluation Fixed Asset Resen ReseNe Designated Infrasirurture Fund Income and Expendlture Beserve 2024 Total Tangible fixed a55Pt5 Investments Netassets Qeditors > One Yeèr 78,000 2,741,033 4.528.632 4,606,632 12.089,680 568,808 1144,7801 6,531,944 56B,808 1144.7801 2.816,703 2 819 033 6,955,972 4,528,632 2 816,703 17,120,339 bl 2OZ3 Deslgnated Revaluation fteseNe Deslwated Hxed Asset Re5evve OÈsigftated Infiastruaure Fund Incorne and Expenditure Reserve 2023 Total Tangible fixed assets InvestmenES Net Jssets C¥Èditors > One Year 156,ODO 1,466,680 4,280.949 4.436,949 9.717,298 649,826 1191,5921 2,816,703 5,433,915 649,826 1191,5921 1622 680 4 280 949 2.816.703 5,892.149 14,612,481 18 COMMITMENTS Capital coThmltrnents contracted for at the balance sheet date but not provlded for In these financial ststements were valued at £87,78612023- 54,5231. 19 OPERATING LEASE COMMITMÈNTS The Charlty had annual operating lease corllmitrnents as follows.. withln I year Between l and S years 1024 2023 15,502 28.325 20 RELATED PARTYTRANSACTIONS Accommodatlon sales between Charity and Trading company dursng the yearwere £360.30712023 E332.3281. Rotsrn Hire sales between Charlty and Trading company durlng the year WEre E345,95412023 £308,562). Food sales between Charlty and Trading company during the year were £267.52512D23 £268,6391. Liquor sales between Charity and Tradlng company during the year were £80,59312023 £73.9861. GiftAid to be pald to the Charltyfor 2024, pald in 2025 is 10,378 (Gift Ald for 2023, paid during 2024 wa5 £795.5611. The Intercompèny balance for 2024 between the Ch4rity and the Trading company Is £679,23712023 £354,528> Page,, 26