Charity registration number: 313439 GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Trustees. report and financial statements for the year ended 31 December 2024
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Contents Page Reference and administrative details of the Trust. its Trustees and athfisers Trustees, report Independent auditor5, report on the financial slatements Consolidated statement of flnancial activlties Consolidated balance sheet Trust balance sheet 8-11 12 13 14 Consolidated statement of cash flows 15 Notes to the financial statements 16-32
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Refèrence and administrative details of the Trus( its Trustses and advisers for the year ended 31 December 2024 Trustees S Woolley, Chaic G ttle S Parkinson E Nicholson NRae A Pratten S Orchard R McKenie (appointed 15 November 2024) B Chacko (appointed 11 November 2024) J Westerman CBE A Prochaska M Sanders M Bennett Company reglstered number 313439 Reglstered office 86 Wood Lane Quom Leicestershire LE12 8DB Company secretary G Little Independent auditors PKF Smith Cooper Audit Limitad statutory Auditors 2 La Market Square Nottingham NG11PB Page 1
GENERAL FEDERATION OFTRADE UNIONS EDUCATIONAL TRUST Trustees. report for the year ended 31 December 2024 The Trustees present their rèport wtth the financial statements of the chaiity for the year ended 31 Dernber 2024. Objectives and activities a. Policies and objectives The principal objective of the Trust is to provide educational courses and seminars for the individual members of the trade unions that are affiliated trade unions. It also produces publications and carries out project work in support of these activities and for the wider benefft of the communty. In setting objectives and planning for activities, the Trustees have given due consideratlon to general guidance published by the CharÉty Commission relating to public benefit. including the guidance 'Public benefrt: running a charity (PB2)'. Strategic report Achievements and perfomiance . Main a¢hievements of the Trust and revlew of actlvities ore Education Progr8mme Reach The past y6ar has been a period of significant growth for the Gu Educational Trust. In July 2023, we launched our 2023124 education programme of 38 courses. This recrutted 537 students during 2023. In July 2024, we launched our 2024125 educaticn programme of 70 courses. In 2024, across both programmes, we recruited 1,657 students, mor8 than tripling the reach of the Educational Trust. This also represents a signrficant increase in average students per course from 14.1 to 23.7, meaning greater reach for individual courses and greatgr efficiency across the work of the Educational Trust. No of courses launched No of students reglstered Averag8 Students per course 2023 2024 38 70 537 1657 14.1 23.7 +2090/9 +68 /0 Core Education Programme Impact 14 % of students left feedback in 2024. Of these 67°A strongly agreed that the objecttves of the course were met. 100 /0 agreed or strongly agreed that the objectives of the course were met. In addition, the following impact was reported by students. Page 2
GENERAL FEDERATION OFTRADE UNIONS EDUCATIONAL TRUST TTustees' report (continued) for the year ended 31 December 2024 Strategic report (continued) Achievements and perforniance (continued) /D of students re ortin rowth in the followin areas: Ability to build sustainable change in organisations and workplaces, including workplaces free from discrimination, bul and harassment Knowledge and awareness to build positive change in my unions andlor workplaces My confidence and leadership skills to take part in trade unionl workplace activities My knowledge and awareness of education opportunities and learning and employment athwa s available to me and I feel su orted to access them Opportunity to have an effective voice Opportunity to have fair work and to support dev81opment of fair employment for others, includin affectin roved and condttions Opportunity to build strong networks of support through networking or peer mentoring /0 Students reporting development Sn the following skAIIs: Communication skills Employment law and practice Equality and diversity Leadership skills Organise my union group at work 84Yts 70Q/c* 660/0 740/0 64°/ 620/D 53Q/D 59/ 43/ts Knoedge Transfer Partnètship We are delighted to say that as part of our development strategy for the educational prograrnme 2023-2024, we have been able to Secu a knowledge transfer partnership with SOAS. the School of Oriental and African Studies IUnNersity of London). This m8ans we will be developing in depth political economy courses. Working closely with the expertise of the economics departrnent of SOAS. we will welcome a new Associate in 2025 to help us expand our capacty for delivering political economy training. including delNery of an international onlin8 leGture series with SOAS (Untversity of London), The New School for Social Research (New York) and the Centre for Heterodox Ewnomics (UntveTsity of Tu15a). Through this collaboration. we will produce political economy courses and resources for the whole trade union and labour movement. Education Support and ConsuRancy In addition to our core programme, we have offered bespoke courses, consultancy or other educational support to a range of unions, including NAHT, BMA. TSSA, FBU. Equity. BFAWU, Aegis. Napo. RCM, BDA, HCSA and UKPHD, Research P8rtnerships Throughout 2024, we have also stepped up our research involvement and are starting to collaborate on a nLJmber of projects, 8s well as the research being (x)nducted intemally as part of the tffP project. which will focus in the first instsnce on the implications of the gig economy for trade union organisation. wages and conditions. We are party to a successful project with the Universty of LNerpool to secure funding to establish a Centre for People's Justice, built around the School of Law and Social Justic8 at the Univ8rsity. Now the funding has been reived, we look forward to playing a role in shaping the new centre and invotving affiliates in this work. We are SuppOng a project with King's College London entitled Al regulation from below: UK-US collaboratnie research on the uses and responses to Al technologies by workers and trade/labor unionists. This will involve collaboration between academics and activists in Britain and the US on the impact of Al on jobs and worker responses to this. We are also extending a previous project wth University of Wolverhampton on the impact and legaty of the closure of the coal industy. A small pot of money wll be used for dissemination of project findings on deindustrÈalisalion through Gu education courses and potentially newsletterslpublications. This is very relevant in the current context and allows us to link with current work we are doing on Page 3
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Trustees. POrt {continued) for the year ended 31 December 2024 Strategic report (continued) Achievements and perforniance {continued) deindustrialisation. politics and Culttj. Friends of the GFTU Educational Tnist Our Friends of the GFTU Educational Trust initiative is a comerstone of our funding and engagement strategy. Launched with a Parliamentary reception in March 2024, it gives supporters and opportunity to directly contribute to the work of the Educational Trust and build a close relationship with us. By becoming a Friend. members can support the future of trade union education and choose their level of involvement. Financial review a. Flnanclal revlew The results of the year are set out in tha consolidated Statement of Financial Activitses on page 11 and show a surplus of £54,479 (2023: £380,126 deficit). The group had n8t assets of £543,208 (2023: £488,729) as shown on the Balance Sheet on page 12, represented by a restricted fund surplus of £1.505.794 (2023: £1,351,379) and an unrestricted fund deficit of £962,586 (2023- £862,650). The trust continues to be. in part. financially supported by the Federation, which maintains adequate resources t9 fund the Trust's operations through the panent of a management charge. The Federation has assured th& Trustees that it expects to maintain these payTnents to the Trust at a 5uffi¢ient level to enable the Trust to txjntinue its current activities. In 2024 the General Federation of Trad8 UniDns had a deficit of £303.288 (2023: £1,573,408) and showed deficit before th8 payment of management charges to the Trust of £193,288 (2023: £1,373,408). However, the trustees acknowledge this is not a sustsinable p0SOn and are committed to reducing the requirement for this level of management charge by covering more of its own costs. It proposes to do this by: Ensuring the trading company starts to make surpluses again; Implementing its fundraising strategy to generate funds for its training activities. and Increasing eamed inrne from accounting and other services. The Trust's trading subsidiary was set up in 2012 to run the Quom Grange Hotel. As well as pawng rent to the Trust, the hotel contributes any surpluses to the Trust and cnjcially provides the Trust wth subsidised training rooms and free or Iow-COSt residential accommodation for delegates on our courses. This is a key part of our strategy to ensure out training is affordable to everyone. Unfortunately, Quom Grange Plotel, alongside the whole hotel Industy, was htt very badly by the Pandemic and since 2020 it has been making defitrAts. The Trustees together with the directors of the trading company and the members of the GFTU, have carried out an in4Jepth review of the investment in the trading company. Together they believe that the investrnent in the trading subsidiary remains of value to the Group. The hotel is forecasting a small surplus in 2025 which is planned to increase in fubjre years. Furthemiore, the hotel continues to provide valuable, subsidi5ed accommodation for the Trust (this year saving the trust over £100,000 in extemal bookings). Trustees continue to monitor the hotel's financial postlion closely and will take remedial action immediately, rf needed. Page 4
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Trustees. report (contfnued) for the year ended 31 Decembèr 2024 b. Reserves policy The Trust has two funds. the General Reserve Fund, which the Trust8es are free to use in accordance with th6 charitable objectives set out in the Trust Deed and the Restricted Reserve fund. which can only be used to fund the specrfic projects undertaken by the Trust. There is no goveming requirement to hold a specÈfic level of General Reserves, due to the financial support of the Trust by the General Federation of Trade Unions. At present the General Reserve stands at £962,586 deficit (2023". £862.650). The Trusys policy is to achieve posttive general reserves over the medium term. . Going concem As described in Note 1.2 to the Financial Statements. each year the Trustees assèss whether the use of going cOnM is appropriate. The Trust has made a consolidated loss in the year to 31 December 2024. prior to any contributions from the General Federation of Trade Unions. and is foreSt to report a consolidated loss in the year to 31 December 2025. As at 31 December 2024, the Trust owed £4,847k to its relat&d undertaking the General Federation of Trade Unions (GU). No specffic terms and conditions are attached regarding repayment or interest in respect of balances due, but the Gu has agreed not to seek repayment of the amounts for a minimum of 12 months from the date of approval of the financial ststements. Furtherniore, the Trust continues to receive operational and financial support from the GFfu. which it has done for many years, and the members of the GFfu have confimied that this will continue to be the case. However, the GFTU cannot continue to fijnd the Tnjst indefinitely, and the extent of any support will, in part, be dependent on the performanca of the GFfu Trading Company and the abilty of the Trust to secur8 further independent funding. The GFTUET Trading Company has made operating losses in the year 31 December 2024 and is forecast to make a small profit in 31 Bernber 2025. Furthem)or6, the Trust was owed £873k by the GFTUET Trading Company at the 31 Dember 2024 and the debt will not be settled in full or in part in the fOSeeable future. No provision has been made against debts due, as it is the opinion of the Trustees, that the GFfuET Trading Company will be in position to repay the debt in due course. This opinion is based on information provided by the Trading Company, which forecasts a retum to profitabilty in the year ended 31 December 2025, following a review of the Companys operations and remedial action being taken. In the absence of other funding, which the Trust is endeavouring obtain, the Trust is dependent upon the continued support of the GFTU to meet its, liabilities as they fall due. The Trustees are satisfied that following a review of cashftow forecasts there will be sufficient funds available for the Trust to continue as going concem for a minimum of 12 months from the date of approval of the financlal statsments. d. Principal rlsks and uncertalnties The Trustees have assessed the major risks to which the Trust is exposed. in particular those related to th8 financing of the Trust and ils dependence on payments from the Federation. The Trustees are satisfied that all possible steps have been tsken to mitigate those risks. The risks and opportunttses facing the trust in this s8ctDr have been under constant review. Structurei governance and management . Constitution The Trust, an unincorporated organisation, charity number 313439, is a recognised charity, operated under the rules of its Trust Deed dated 29 October 1970. The managemènt of the Trust is the responsibiltty of the Trustees who are elected and co-opted under the terms of the Trust Deed (as amended). The General Federation of Trade Unions has the power to appoint the Trustees. subject to there not being a majority of Trustees who are also officers, employees or Trustees of the Federation. The Trustees have reviewed the application and relevance of the Trust deed and made no amendments. Developments in legislation and guidance from the Charity Commissioners have been considered. Page 5
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Trustees. report (continued) for the year ended 31 December 2024 Structure, govemanGe and management (continued) b. Methods of appointment or election of Trustees The Trust Deed provides that the General Federation of Trade Unions may appoint trustee5, subject to there being a majority of independent trustees. Should a vacancy for an independent trustee occur. the Trustees seek nominations for the individuals having regard to any specific skills needed. G. Organlsational structure and decislon-maklng policies The board of trustees meet regularly to discuss the devèlopment of the Trust along with finan and issues relevant to the running of the Trust. The day to day operations of the charity are managed by the Secretary who has delegated authority, wtthin the tems of delegation approved by the trustees, for all operational matters. d. Policies adopted for the induction and training of Trustees New trustees are fully briefed by the Secretary with regard to their legal obligations under the charities legislation, the content of the Trust Deed, the decision making processes and recent financial performance. Trustees are encouraged to 8tt8nd appropriate extemal training events wh8r8 they will facilitste the underLgking of their role. e. Related party relationshlps The Trust continues to maintain its close relationship with the General Federation of Trade Unions whose principal activity is to provide services to members of affiliated trade unions. The Federation has confimied its continuing support in order that the Trust can carry out its charitable objecttves. l. Financlal risk management The Trustees have assessed the major risks to which the Group and the Trust are exposed, in particular those related to the operations and finances of the Group and the Trust, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. Page 6
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Trustees. report (continued) for the year endÈd 310ecember 2024 Statement of Trustees, responsibilities The Trustees are responsibl8 for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (Unrted Kingdom Generally Accepted Accounting Practice). The law applicable to charittes in England and Wales requires the charity trustees to prepare financial statements for each year which gNe a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources. of the charity for that period. In preparing those financial statements, the trustees are qUired to select suitable accounting policies and then apply them consistent. observe the methods and principles of the Charities SORP (FRS 102). make Judgments and accounting estimates that ar8 reasonab18 and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concem basis unless it is inappropriate to presume that th& Group will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial posibon of the charity and to enable them to ensu that the financial statements comply with the Charities Act 2011. the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are a0 responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detsction of fraud and other irregutartties. Disclosure of infomiation to auditors Each of the p&rsons who are Trustees at the time when this Trustees, report is approved has confirmed that., so far as that Trustee is aware. there is no relevant audit informatiorb of which the charitsble group's auditors are unaware, and that Truste6 has tsken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information. Approved by order of the members of the board of Trustees and signed on their behalf by: S Woolley Chair of Trustees Date: 2-5-Zfj Page 7
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Independent audltors. report to the Members of Gèneral Federation of Trade Unions Educatlonal Trust Opinion We have audited the financial statements of General Federation of Trade Unions Educational Trust (the 'parent charitable companv) and its subsidiaries (the 'group'} for the year ended 31 December 2024 which comprlse the Consolidated st8tement of financial activttses, the Consolidated balance sheel, the Trust balance sheet, the Consolidated statement of cash fiows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice)- In our opinion the financial ststements: give a true and fair view of the state of the Group's and of the parent charitys affairs as at 31 December 2024 and of the Group's incoming reSoUrS and application of resources, including its income and expenditure for the year then ended; have been properly prepared in accordance with United Fthngdom Generally Accepted Accounting Practi. and hav8 b8en prepared in accordants WFth th8 requirements of the Charities Act 2011. Basis for oplnlon We conducted our audit in accordance wlth Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audil of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasls of matter We draw your attention to note 1.2 which describes events or condltions which cast doubt on the ability of the Trust to obtain repayment of amounts due from its subsidiary undertaking of £873k, which Impacts th8 Trusys Statement of Financial Position but not on a Consolidated basis. No provision has been made against amounts due, albeit there is no likely repayment, in full or substsntially in part, for a least one year from the date of approval of the financial statements. Furthermore, we draw your attention to note 25 which describes a signtficant adjusting post balan sheet event due to the impairment of the Trusys most signfficant asset and the resultant debt foregone by the G&neral Federations of Trade Unions. Our opinion is not modified in respect of these matters. Page 8
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Independent audilors. report to the Members of General Federation of Trade Unions Educational Trust (continued) Material uncertainty related to going concern We draw attention to note 1.2 in the financial statements, which indicates that there are condttions identified that m8y cast significant doubt on the Trusvs abilty to continue as a going CDncern. The Trust has net current liabililies and has reported a consolidated loss in the year to 31 December 2024. prior to any contributions from the General Federation of Trade Union, and Ft forecasts to do so in the year ended 31 December 2025. The Trust is reliant on the support of the General Federation of Trade Unions to meet its liabilities as they fall due. As stated in not& 1.2, these events or conditions, along wth the other matters as set forth in note 1.2, indicate that a material uncèrtainty exists that may cast significant doubt on the Trusts ability to continue as a going concern. Our opinion is not modified in respect of thÉs matter. In auditing the financlal statements. we have concluded that the Truste8s' use of the going concern basis of accounting in the preparation of the financial statements is approprtate. Our responsibilities and the responsibilities of the Trustees wth respect lo going concern are described in the relevant sections of this report. other informatlon The other information comprises the infomation included in the Annual report other than thè financial ststements and our Audltors. report thereon. The Trust88s are responsible for the other information contained within th8 Annual report. Our opinion on the financial statements does not cover the other informatlon and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read th6 Other information and. in doing so. consider whether the other infonnation is materially inconsistent with the financial statements or our knowledge obtsined in the course of the audit, or otherwise appear5 to be materially misststed. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a materral misstatement in the financial statements Ihemselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on whlch wé are required to report by exceptlon We have nothing to report in respect of the following matter5 where the Charities Act 2011 requir8S US to report to you rf, in our opinlon: the inforrnation given in the Trustees, report is inconsistent in any material respect with the financial statements: or the parent charity has not kept sufficient accounting records" or the parent charity financial statements are not in agreement with the accounting records and returns", or we have not receNed all the infonnation and explanations we require for our audtt. Responsibilities of trustees As explained more fulEy in the Truslees, responsibilities statement, the Trustees are responsible for the prepar8tion of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assesslng the Group's and the parent chartvs ability to continue as a going concem. disclosing. as applicable, matters related to going concern and using the going concem basis of acwunting unle55 the Trustees e(ther intend to liquidate the Group or the par&nt charity or to cease operations, or have no realistÈc alternative but to do so. Page 9
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Independent auditors. report to the Members of General Federation of Trade Unions Educational Trust (continued) Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Chartlies Act 2011 and report in accordance wtth the Act and relevant regulations made or having effect theunder. Our objectwes a to obtain reasonable assurance about whether the financial statements as a whole are free from material misststemen( whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancè with ISAS (UK) will atways detect a material misstatement when it exist5. Misstatements can artse from fraud or error and are considered material rf. individually or in the aggregate. they could reasonably be expected to influence the economic decisions Df users taken on the basis of these financial statements. Irregularities. including fraud, are instances of non-compliance wtth laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting iegUlaritieS, including fraud is detailed below: Based on our understanding of the charity and industy. we identify the key laws and regulations affectlng the charity. We identffied that the principal risk of fraud or non-compliance with laws and regulations related to: management bias in respect of accounting estimates and judgements made: management overrfde of control. posting of unusual journals or transactions. We focussed on those areas that could give rise to a material misststement in thè charitvs financial stat8ments. Our prOdreS included. but were not limrted to: enquiry of management and those charged with govemance around actual and potential litigation 2nd claims, including instances of non-complian with laws and regulations and fraud. reviewing legal expenditure In the year to identify instances of non-compliance with laws and regulatlons and fraud; reviewing financial statement disclosures and testing to supporting documentation to assess compliance wlth applicable laws and regulations; performing audff( work over the risk of managem8nt overrrde of controls, including testing of joumal entrtes and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular the assumptions used in relation to the defined benefft pension scheme. investrnont property valuations and impaiment of tangible red assets. It is the primary responsibilty of management. wrth the oversight of those charged with govemance, to 6nsure that the entitys operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. Because of the inherent limitations of an audi¢ there is a risk that we will not detect all IegularitieS, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk IncaseS the more that compliance wtth a law or regulation is removed from th8 events and transactions reflected in the financial statements. as we will be less likeEy to become aware of instani*s of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud invofves intentional concealment. forgery, collusion. omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located Dn the Financial Reporting Council's website at: www.frc.o .uklauditorsres onsibilities. This description forms part of our Audttors. report. Page 10
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Independent audltors. report to the Members of General Federation of Trade Unions Educational Trust (conttnued) Use of our report This report is made solely to the charitys trustees. as a body, in accordan with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audrt work has been undertaken so that we might state to thg charivs trustees those matters we a required to state to them in an Auditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibilty to anyone other than the charity and the charitys trustees, as a body, for our audit work, for this report or for the opinions we have formed. (Lth ,I PKF Smith Cooper Audit Limited Statutory Audttors 2 Lace Market Square Nottingham NG1 1PB Date: 9 May 2025 Page11
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Consolldated Statement of financial acttvities (incorporating income and expenditure account) for the year ended 31 December 2024 Restrtcted Unrestrithd funds funds 2024 2024 Total funds 2024 Total funds 2023 Note Income from: Income recetved from GFru Donations Trading actNities: Hotèl Hotel - exceptional other operating Income Investment income Other income 110,000 110.000 200,000 216 1.353,052 1.353,052 1.583.273 300,000 300,000 56 262 724,790 258,054 258,054 Total Income 1,653.108 368,054 2,021,162 1,908.541 Expenditure on: Trading activits'es Hotel Day Nursery Charitable activities: Education Trust expenditure Impairment of tangible fixed assets (note 23) Amounts due to GFTU foregone (note 23) 1,470.693 28.000 1,470,693 28,000 1,609,498 669.011 669,011 576,169 7,400,000 (201,021) (201,021) (1.400.000) Total expenditure 1,498,693 467.990 1.966,683 2, 185,667 Net Incomel(expenditure) before net losses on investments (Los5) on revaluation of Investment property Net incomel(expendlture) before taxation 154,41 S (99,936) 54,479 (277, 726) (65,000) 154,415 (99,936) 54,479 (342.126) (38,000) Taxation Net movement in funds 154,415 (99,936) 54,479 (380, 126) Reconclliation of funds: Total funds brought fotward Net movement in funds 1,351.379 154.415 (862,650) (99.936) 488,729 54,479 868, 855 (380, 126) Total funds carried forward 1,505.794 (962.586) 543.208 488.729 The Consolidated statement of financial activities indudes all gains and losses recognised in the year. Page 12
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Registered number: 313439 Consolidated balance sheet as at 31 December 2024 2024 2023 Note Fixed assets Tangible assets Investment propety 10 11 3,055.785 2,345,000 3.188.830 2,345,000 5,400,785 5.533.830 Current assets stocks Debtors Cash at bank and in hand 12,431 410,886 15,666 9,154 104,458 72,823 13 438,983 186,435 Creditors: amounts falling due within one year 14 (5,296,560) (5,231,536) Net current Ilabllltles {4,857,$77) (5,045, 101) Total assets less Gurront liabilities 543,208 488, 729 Total net assets 543,208 488, 729 Charity funds Restricted funds Unrestricted funds 15 15 1,505,794 (962,586) 1,357,379 (862, 650) Total funds 543.208 488, 729 The Trustees acknowledge their responsibillties for complytng with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for sue by the Trustees and signed on their behalf by. S Woolley Chair of Trustees Date: g-S-Z025 Pag8 13
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Registered number: 313439 Trust balance sheet as at 31 December 2024 2024 2023 Note Ftxed assets Tangible assets Investments Investment property 10 2,905,165 2,986,236 12 11 2,345,000 2,345,000 5,250,167 5.337,238 Current assets Debtors Cash at bank and in hand 13 884.541 4,048 894,500 9, 708 888.589 904,208 Creditors: amounts falling due within one year 14 (4,882,379) (4, 883, 657) Net current liabilities (3,993,790) (3,979,449) Total assets less curront liabilities 1,256,377 1,351, 789 Total net assets 1,256,377 1,351,789 Charlty funds Restricted funds Unrestricted funds 15 15 2,052,351 (795,974) 2,052,357 (700,562) Total funds 1,256,377 7,357,789 The Trustees acknowledge their responsibilities for comptwng with the requirements of the Act with respect to accounting racords and preparation of financial ststements. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: oolley Chair of Trustees Date.. S-5-ZOZ¥ Page 14
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Consolidated statement of cash flows for the year ended 31 Decèmber 2024 2024 2023 Cash flows from operating acVItieS Net sh used in operating activities (167,660) (191,677) Cash flows from investing activities Rents from investrnent propety Purchase of tangible fixed assets 115,267 (4,764) 103.647 {17.555) Net cash provided by Investlng activrties 110,503 86,092 Cash flows from flnancing activities Net cash provided by flnancing activities Change In cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year (57,15n (105,585) 72,823 178.408 Cash and cash equivalents at the end of the year 15,666 72, 823 The notes on pages 16 to 32 form part of these financial statements Page 15
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notès to the financial statements for the year ended 31 December 2024 Accountlng policies 1.1 Basis of preparation of financial statsments The financial ststements have been prepared in accordance with the Chartttes SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applible in the UK and Republic of Ireland (FRS 102) (effecttve 1 January 20191. the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). the Charities Act 2011.and applicable regulations The accounts have been prePad under the historical cost convention with items recognlsed at cost or transaction value unless othernisÈ ststed. The Consolidated statement of financial actlvttles (SOFA) and Consolidated balance sheet consolidate the financial statements of the Trust and its subsidiary undertakings. The resutts of the subsidiaries are consolidated on a line by line basis. No separate stalement of financial activities is presented for the parent undertaking in accordance wrth UK GAAP. The financial statements are presented in sterling which is the functional currency of the Group and are rounded to the nearest £1. 1.2 Going concern The financial statements have been prepared on a going concern basis. The Trustees assess whether the use of going concern is appropriate i.e. whether there are any materlal unc6rtainties related to events or conditions that may cast signtficant doubt on the ability of th8 Trust to continue as a going concem for a period of at least one year from the date of approval of the financial statements. The Trust has made a con501idated loss in the year to 31 December 2024, prfor to any contrlbutlons from the General Federation of Trade Unions and is forecast to report a consolidated loss in the year to 31 December 2025. As at 31 Dember 2024. the Trust owed £4,847k to its related undertaking the General Federation of Trade Unions (Gu). No specrfic terms and conditions are attached regarding repaymerst or interest in respect of balances due. but the GFTU has agreed not to seek repayment of the amounts for a minimum of 12 months from the date of approval of the financial statements. Furthermore, the Trust conkn'nues to re1ve operational and financial support from the GFTU, which tt has done for many years, and the members of the Gu have confirmed that this will continue to be the case. However, the GFTU cannot continue to fijnd the Trust indefinitely, and the extent of any support wll, in part. be dependent on the perfomance of the GFTUET Trading Company and the ability Df the Trust to secure further independent funding. The GFTu Trading Company has made losses in the year 31 Dernber 2024 and is forecast to make a small profit in 31 Dember 2025. Furthemore, the Trust was owed £873k by the GFTUET Trading Company at the 31 December 2024 and the debt will not be settled in full or in part in the foreseeable future. No provision has been made against debts due, as it is the opinion of the Trustees, that the GFTUEr Trading Company will be in position to repay the debt in due course. This opinion is based on information provided by the Trading Company, which forecasts a retum to profitability in the year ended 31 December 2025. following a review of the Companys operations and remedial action being taken. In the absence of other funding. which the Trust is endeavouring obtain, the Trust is dependent upon the continued support of the GFfu to meet tts. liabilities as they fall due. Notwithstanding the above. the Trustees are satisfied that following a review of cashfiow forecasts there will be sufficient funds available for the Trust to continue as going concem for a minimum of 12 months from the date of approval of the financial statements. Page 16
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 Accounting policies (continued) 1.3 Income Donation5 and similar is recognised On the Trust has enbtlement to thè in(x)me. it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Consolidated statement of financial activities on a receivable basts. The balance of income recewed for specific purposes but not expended during the period is shown in th relevant funds on the Balan sheet. Where incomè is te[Ved in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferrad income. Where entiuement occurs before income is received. the incorne is accrued. Management charges is recognised in the year it is receivable. Income from hotel trading actmties represents fair value of the consideration rec6ived or reTrivable, excluding discounts, rebates. value added tax and other sales taxes. Revenue from the sale of food and drink is recognised at point of sale. Revenue from accommodation. events end room hire is recognised over the period to which the Servi late. 1.4 Expenditure Expenditure Is recognised once there is a legal or constructive obligatlon to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in sett16ment and the amount of the obligation can be measured reliably. No expenditure Is netted off incoming resources. Al costs have been attributed to the functional categories of resources expended In the Statement of Financial Activities. Expenditure on charitable activities is incurred on directIy undertaknng the activities which further the Group's objectives. as well as any associated support costs. Governance costs comprise all costs involving the accountsbilty of the Group and its compliance with regulation and good practi. These costs include costs relating to statutory audit and professional fees together with an apportionment of overheads and support costs. Costs of hotel and training company trading actÉvities comprise cost of sales, establlshment, employment. administration, depreciation and financial costs of generating the income from hotel trading activities. All expenditure is inclusive of irrecoverable VAT. 1.5 Exceptional items Exceptional items are transactions that fall within the ordinary activities of the Trust but are presented separately due to th8ir size or incidence. 1.6 Taxation The Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tsx purposes. Accordingly, tt)e Trust is potentially exempt from taxation in respect of income or capital gains recetved within categories cOVed by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusÉvety to charitable purposes. Subsidiary undertakings are liable to Corporation and Capital Gains Tax. Page 17
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for year ended 31 December 2024 Accounting polici8s (continued) 1.7 Tangible fixed assets and depreciation Tangible fixed assets are Initial recognised at cost. After recognition. under the cost model, t8ngible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tsngible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible ftxed assets 18SS their residual value over their estimated useful lives. Depreciation is provided on the following bases: Land and buildings 2010 straight line Improvements to property 20 /0 straight line Fixtures, fittings and equipment 200A straight line or 330/D reducing balan Gains and losses on disposals are determined by rnparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities. 1.8 Investment property Investmènt properties are initially measured at cost and subsequently remeasured to fair value at each reporting date. Changes in fair value are recognised in the SOFA. 1.9 Investments Investments in subsidiaries are valued at cost less provision for impairment. 1.10 stocks Stocks are stated at the lower of cost and net realisable value, being the estimated selling price16SS costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributsble overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the Carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediatety in th8 Statement of Financial Activities. 1.11 Debtors Debtors and creditors with no st8ted interest rate and receivable or payable within one year are recorded at transaction pri. Any losses arising from impairnient are recognised in the Ststement of Financial Activities. 1.12 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short Maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.13 Flnancial instruments The Group onty has financial assets and financial liabile5 of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement Value with the exception of bank loans which a subsequently measured at amortised cost using the effective interest method. Page 18
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial slatements for the year ended 31 December 2024 Accounting policies (contlnued) 1.14 Operating leases Rentals paid under operating leases are charged to the Consolidated statement of financial actrvtties on a straight line basis over the lease temi. 1.15 Pensions Defined contrlbution scheme The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. Deflned benefit scheme Certain members of staff have joint contracts of employment wrth this entity and the General Federations of Trade Unions (GTFU) and have participated in the Defined Benefit Pension Scheme (DBPS) operated by the GU. However. the GFfu is the only admitted body to the DBPS and no financial commitments exist in respect of ongoing contributions to be made by the Trust to the scheme, these are solely the responsibility of the GU. Therefore, the actuarial irnpact of the DBPS is reflected in the financial statements of the GFTU only. The pension costs of the staff who work for the Trust are charged to the income and expendtture account as they become payable. 1.16 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is sat out in the notes to the financial statements. Page 19
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 Critical accounting estimates and areas of judgment Estimates and judgments are continualty 8valuated and a based on historical experience and other factors, including expectab'ons of future events that are believed to b& reasonable under the circumstances. The Trust makes estimates and assumptions Concerning Ihe ftjture. The resulting accounting estimates and assumptions will, by definition. seldom equal the related actual results. The estimates and assumptions that have a signfficant risk of causing a material adjustment to the canying amounts of assets and liabil(ties within the next financial year are discussed below. Tanglbl• Fixed Assets Managernent judgement is required in assessing the fair value of tangible fixed assets, including the future economic benefit expected to be generated by those assets. Specifically, the investment made in the purchase and refurbishment of the hotel. operated by the Trusfs subsidiary undertaking. The assessment of the useful economic life and method of depreciating those assets also requires judgement. Depreciation is charged to the SOFA based on the usefijl economic lrfe selected of 50 years, which is the period over which the Trust expects to consume the economic benefits of the hotel. Depreciation is charged based on the drfference between the cost and residual value of the asset. At each balan sheet date, the trustees undertake an impalrment rèview to ensure that the carying value of the hotel is not in excess of residual value. The residual value of the asset is based on a professional third paty valuation. Investment Properties The Trust carries its investment properties at fair value. with changes in fair value being recognised in the SOFA. The Trust engages a local independent estate agent to determine the fair value of the properties. due to the availability of comparable market data. Other incomlng resources Unrestricted funds 2024 Total funds 2024 Total funds 2023 MEWS housing rent Accounts services and commissions Other income 115,267 91,T17 51.010 115,267 91,777 51,010 103.647 5,225 15,978 258,054 258,054 124.790 Total 2023 124. 790 724, 790 In the Consolidated statement of financial activtties. all other material income headings relate to one item and therefore no separate Income note has been di5Glosed. Page 20
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 Analysis of expenditure on charitable activities Summary by fund type Unrestricted funds 2024 Total 2024 Total 2023 Education 467,990 467,990 576.169 Total 2023 576. 769 576, 169 Anatysis of èxpendtture by activities Support costs 2024 Total funds 2024 Tot81 funds 2023 EdUtIOn 467,990 467,990 576,169 Totsl 2023 576,169 576, 169 Anatysis ofsupport costs Total funds 2024 Total fvnds 2023 Staff costs Depreciation Occupancy costs other Costs Governance costs 406.040 85,835 37,737 (68,822) 7,200 341,109 67, 546 14,700 144,7T4 8,040 467,990 576. 169 Page 21
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 Educational Trust Statement of financial activities Restricted Unrestricted Funds Funds 2024 2024 Total Funds 2024 Total Funds 2023 Income Inco£ r8ce11 from GFtu Donation Quorn Grange Fbtel rent MEWS hoLksing rent Otr)er rent Accounts seNces and ccxrwrisson Other incoff 110,01)0 110,000 200.000 216 54, 000 103,647 8, 752 5, 225 14,970 26,000 115,267 6,925 100.012 51,010 26,000 115,267 6,925 100,012 51,010 409,214 409,214 386, 150 Expendlture Slaff costs Depreciation Occupancy costs Other costs verance costs 1mpalrnnt of fiy£d assets AtrDunts due to G vffitten off 406,040 85,835 37,737 166.541 406,040 85,835 37,737 166,541 341, 709 67,546 35,291 177,867 8,040 1,400,000 (1,400, QOO) (201,021) (201,021) 629, 853 Net income before net gains on investments Gain on revaluation of inStrIt property (95,412) (95,412) (243, 703) Net mvement In funds 95,412 95,412 (243. 703) Reconciliation of funds: Total funds brought forward rrrEnt in funds 2,052,351 (700.562) (95,412) 1.351.789 (95.412) 1,595,492 (243, 703) Total funds carried forward 795,974 052,351 1,256,377 1.351.789 Page 22
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 Auditors. remuneration 2024 2023 Fe8s payable to the Trusvs auditor for the audit of the Trust's annual accounts T,525 8,040 staff costs Group 2024 Group 2023 Trust 2024 Trust 2023 Wages and salaries Social securty costs Pension costs 1.203,292 33,473 24,928 1, 175.855 27,430 25,214 347,639 33,473 24,928 288,465 27,430 25,214 1,261,693 1,228.499 406.040 341, 109 The average number of persons èmployed by the Trust during the year was as follows: Group 2024 Gmup 2023 No. Trust 2024 Trust 2023 No. Research and Campaign Administration Education Fundraising Hotel Staff 42 46 56 58 14 No employee reiVed remuneration amounting to more than £60,000 in either year. Key management personnel remuneration during the year totalled £157.422 (2023: £165,032) for short- term employment benefits and £13,229 (2023: £18,016) for post*mployment benefits. Page 23
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statèments for the year ended 31 De¢ember2024 Trustees. remuneration and expenses During the year, 1 Trustee reNed remuneration for services provided as an employee of the Charity. No renumeration was paid in relation to their role as a Trustee. Durtng the year ended 31 December 2024, no Trustee expenses have been incurred (2023 - £2,380). 10. Tanglble fixed assets Group Fixtures, Land and Propety fittings and bulldings improvements equlpment Total Cost At 1 January 2024 Additions Disposals 4,318.120 399,428 693,538 4,764 (90.945) 5,411,086 4,764 (208,031) (117.086) At 31 December 2024 4,318.120 282,342 607,357 5,207,819 Depreclation At 1 January 2024 Charge for the year On disposals 1,488,416 36,662 297,656 16,716 (109,868) 436,184 63.071 (76,8031 2,222,256 116,449 (186,671) At 31 Dember 2024 1,525.078 204,504 422,452 2,152,034 Nat book value At 31 December 2024 2,793.042 77,838 184,905 3,055,785 At 7 January 2023 2,829.704 101,772 257,354 3, 188,83Q Page 24
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for thè year ended 31 December 2024 10. Tangible fixed assets (contlnued) Trust Fixturès, Freehold Property fittings and property irnprovements •quipment Total Cost At 1 January 2024 Additions 4,318,120 392.567 4,764 4.719.129 4,764 At 31 December 2024 4,318,120 8,442 397,331 4,723,893 Deprèclatlon At 1 January 2024 Charge for the yèar 1,488,416 36,662 5.466 1,672 239,011 47,501 1,732,893 85,835 At 31 December 2024 1,525,078 7,138 286,512 1,818,728 Net book value At 31 December 2024 2,793,042 1,304 110.819 2,905,165 At 1 January 2023 2.829,704 2,976 753,556 2,986,236 11. Invèstment property Group and Trust Freehold Investment property Valuation At 1 January 2023 2,345,000 At 31 Dernber 2024 2,345,000 The investment property was rewewed on a desk-top basis as at 31 December 2024 by Berkley Estates, based on market values for similar properties in the area. Page 25
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 12. Fixed asset investments Investments sub5idlary companies Trust Cost or valuation At 1 January 2024 At 31 Decamber 2024 Princlpal subsldiaries The following was a subsidiary undertaking of the Trust: Nam• Company number Princlpal activity Class of shares Holding GFTUET Trading Company Limited 08282681 Quom Grange Hot81 Ordinary 100Y. The financial resutts of the subsidiari8s for the year we. Names Income Expenditure Profitl(Logs) for the year Net assetsl(liabi Iltles) GFTUET Trading Company Llmlted 1,691.760 (1.541,869) 149,891 (713,166) The registered office of the subsidiary undertaking is the same as thal of th8 parent charty. The subscribers to the shares of Gru Trading Company Limited are G Little and S Woolley, trustee5 to the Trust and the Trust is the beneficial owner of those shares. Page 26
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes lo the fjnancial statemènts for the year ended 31 December 2024 13. Debtors Group 2024 Group 2023 Trust 2024 Trust 2023 Due wtthin one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income 64,583 32,779 2,9S3 873,186 5, 185 853. 109 31,117 5,089 337.901 8,402 67, 190 5, 089 8,402 410.886 104.458 884,541 894,500 14. Creditors: Amounts falling due within one year Group 2024 Group 2023 Trust 2024 Trust 2023 Amounts due to GFru Trade Creditors Other taxation and social security Other creditors 4,847,614 169.436 54.721 224,789 4.847,614 155,582 108.271 120,OS9 4847,614 12,351 4,847,614 9,393 20,574 26.650 5,296,560 5,231,536 4,882,379 4, 883, 657 Amounts due to the GFfu are classified within one year in absence of a fomial loan agreement beeen the parties and is therefore technically repayable on demand. However, the GFfu have confirmed that the is no expectation that amounts would need to be repaid in the foreseeable future. Group 2024 Group 2023 Trust 2024 Trust 2023 Deferred income at 1 January 2024 Resources deferred during the year Amounts released from previous periods 15.T11 9,425 (15,771) 7.521 15,771 (T.521) 15,771 9.425 {15.771) 7,521 15, 771 (7,527) 9.425 15.7T1 9,425 15.777 Deferred income relates to course fees reIVed in advance of delivery and grant income reiVed in advance of entttlement. Page 27
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notss to the financial stalements for the year ended 31 December 2024 15. Statement of funds Statement of funds - current year Balance at 31 December 2024 Balance at 1 January 2022 Income Expenditure Unrestricted funds General reseNe fvnd Revaluation reserve (1,261.59n 398,947 368.054 (467.990) (1,361,533) 398,947 (862,650) 368,054 (467.990) (962,586) Restricted funds Restricted Funds - all funds 1.3S1.379 1,653,108 (1,498.693) 1,505,794 Totsl of lunds 488.729 2,021,162 11,966,683) 543,208 Page 28
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 Statement of funds (continued) Statement of funds - prior year 15. Balance at 1 January 2021 Balance at 31 DeGemb&r 2023 Gains/ (Losses) Jncome Expenditure Taxation Unrestricted funds General Funds- all funds Revaluation resetve (1.010,696) 325.268 (576. 769) (1,267,597) 463,947 (65,000) 398, 947 (546, 749) 325.268 (576. 169) (65,000) (862,650) Restricted funds Restricted Funds all funds 1,415,604 1.583,273 (1,609.498) (38.000) 1.351,379 Totsl of funds 868,855 1,908.541 (2,185,667) (38.000) (65,OOOJ 488, 729 Restricted reserve fund - investrnent During 2012 the Trust disposed of its managed inv8Stments portfolro and used the realised procèeds to purchase a hotel propety and a limited company to operate the hotel business. As such, the income and expenditure from the hotel trading aciTVities, and any realised or unrealised gainl(loss) on revaluation is treated as restricted funds in the Consolidated Ststement of Financial Activites. 16. Anatysis of net assets between fvnds Analysis of net assets between funds - current period Restricted Un$triCted funds funds 2024 2024 Total funds 2024 Tangible fixed assets Investment propety Cuent assets Creditors due within one year 2.604,092 451.693 3.055,785 2,345,000 2,345,000 420,581 18.402 438,983 (1.518.879) (3.777,681) (5,296,560) Totsl 1.505,794 {962,586) 543,208 Page 29
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to thè financlal statements for the year ended 31 December 2024 16. Anatysls of net assets between funds (continued) Analysi5 of net assets between funds - prior period Reslricted UnstriCted funds funds 2023 2023 Total fvnds 2023 Tangible fixèd assets Investment property Current assets Creditors due wtthin one year 1.567.182 1,621,648 3, 188.830 2,345,000 2,345, 000 135,076 51,359 186,435 (350,879) (4.880,657) (5,231,536) Total 1,351,379 (862, 650J 488. 729 17. Reconciliation of net movement in funds to net cash flow from operat5ng actlvlties Group 2024 Group 2023 Net incom818XP8nditur8 for the period (as per Statement of Flnanclal Activities) 54,479 (380, 126) Adjustments for: Depreciation charges Impairment of tsngible fixed assets Losses l(Gainsl on investment property Rents from investment property Loss on disposal of fixed assets Decreasel(increase) in stocks Decreasel(increase) in debtors Increasel(deCa$e) in credttors 116,449 103, 155 7.400,000 65.OJO (115,267) (103,64T) 21,360 (3,27n 1,712 (306,428) 37,525 65,024 (1,315,296J Net cash used in opèrating activities (167,660) (191,677J 18. Anatysis of cash and cash equivalents Group 2024 Gmup 2023 Cash in hand 15,666 72,823 Page 30
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notès to the financial statemènts for the year ended 31 December 2024 19. Analysis of changes in net debt At31 December 2024 January 2024 Cash flows Cash at bank and in hand 72,823 (57,157) 15,666 72,823 (57,15n 15,666 20. Contingent Ilablllties A claim of £106.000 has been made on the Trust in conneclion with the refurbishment of the hotel operated by the Trusfs trading company. Having tsken appropriate advice, in the Trustees, view the Trust Is not liable and is contesting the claim on the basis that the work was not completed in accordance with the contract. Therefore. the claim has not been provided for in the financial statements, es in the Trustees, opinion. it is not probable that it will b& paid. 21. Penslon commitments The Charity and ts subsidiary operates a defined contrtbution pen5i0n scheme for its employees. The pension costs for th6 year represents contributions payable by the Charty and its subsidiary to the scheme and amounted to £24.928 (2023: £25,214) Contribullons totalling £2,410 (2023: £3.445} were payable to the scheme at the end of the year and are included within accruals. 22. Operating lease commitments At 31 December 2024 the Group and the Trust had commrtments to make future minimum lease payments under non-oncellable operating leases as follows". Group 2024 Gmup 2023 Trust 2024 Trust 2023 Not later than l year Later than 1 year and not later than 5 years 4,251 9,121 6.721 13,372 2,470 13,372 20,093 2,47Q Page 31
GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST Notes to the financial statements for the year ended 31 December 2024 23. Exceptional item In the prior year, an impairment charge of £1.4m was provided for in respect of the Tru5Vs major fixed asset, a hotel. The Trust was originally provided with in excess of £6m of funds to purchase and refurbish the hotel and related assets by a related party- the General Federation of Trade Unions (GFfu). In 2023, the members of Gu elected to forego the equivalent amount of £1.4m in respect of amounts owing by the Trust to GFru. In the current year an additional amount of £201,021 was forgona in respect of these debts as reported in more detail in note 25. 24. Related party transactions The Educational Trust was established by the General Federation of Trade Unions IGFTU) and continues to be supported financially by it During the year management charges of £110.000 (2023: £200,000) were paid by GFTU to the Trust. GFTU also recharges employment costs of £406,040 12023: £341,109) to the Trust. An amount of £201,021 (2023: £1.400,00) due to Gu from the Trust was written off. as reported in more detail in not6 25. At the balance sheet date an amount of £4.847.614 (2023: £4.847.614) was due to Gu from the Tnjst. strike Map UK Ltd is a related party due to a common directorship. The Trust made sales to the company of £10,718 (2023.. £384). The is an amount in debtors due from the company of £553 (2023.. £413). Clouds Unfold Limited Is a related paty due to a common directorship. The Trust made purchases from the company of £Nil (£1,100). 25. Post balance sheet evènts Subsequent to the yearnd, the members of the GFfu elected to forego an amount of £201,021 in respect of amounts owing by the Trust to the GFfu. Whilst the fr)rmal election wa5 made subsequent to the yearnd, this has been reported in the financial statements as an adjustlng post balance sheet event. This was on the basis that events or conditions existed at the reporting date which meant the debt could not be repaid in full to the GFtU, nor is it the intention of the GTFU to expect repayment. The amounts had already been forwarded in full to the Gu during the year*nded 31 December 2024. The Trust has aayS been financially supported by the GFfu on an annual basis. and there is a significant amount of mutuality to the two entities operations. There are no conditions. legal or otherwise, in existence in respect of the balances owed by the Trust to the GFTU. For those reasons, in the Trustee, opinion, if the debt forgone was not reflected in the financial statements at the 31 December 2024. 8 true and fair view would not be reported. Page 32