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2025-08-31-accounts

Company registration number: 01987227 Charity registration number: 517324

UNION FOUNDATION TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

HSJ Accountants Ltd Severn House Hazell Drive Newport NP10 8FY

Union Foundation Contents

Page
Trustees' Report 1—7
Independent Auditor's Report 8—11
Statement of Financial Activities (including Income and Expenditure Account) 12
Comparative Statement of Financial Activities (including Income and Expenditure Account) 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Statement of Cash Flows 16
Notes to the Financial Statements 17—26

Union Foundation Company No. 01987227 Trustees' Report For The Year Ended 31 August 2025

The trustees present their report and the financial statements for the year ended 31 August 2025.

Objectives and Activities

Aims and Objectives

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Union's vision is the reformation of Christ's church worldwide, and its mission is growing leaders, growing churches.

Union provides a mission ecosystem that can accelerate healthy, sustainable church growth by creating training pathways.

The following four strategies are employed to enable Union to realise its vision and achieve its mission:

Criteria or measures the charity uses to assess success in the reporting period. We measure achievement according to our four strategies:

Scholars - Engagement with pastors, theologians and scholars, nationally and internationally; theological publishing, conferences and other high-level input to theological research; helping to nurture and realise the potential of theological scholars in the church.

School of Theology - Numbers of students; increasing numbers of healthy learning communities with sustained numbers of students; the quality of the students' academic achievement and the level of their spiritual growth and maturity as developing leaders; the collective increase in fee income.

Publishing - Engagement and consumption of Union media; magazines, books, video, articles, podcasts, conference attendance etc.; web traffic demonstrating engagement and usefulness of materials published on the www.unionpublishing.org website; social media engagement. International licensing agreements.

Mission - Capture and publication of mission stories from Union's ecosystem; monitoring numbers of students across the school who go on to mission, resourcing church planting or church rejuvenation with finance and people; activities of learning hubs involved in mission in their local context.

Significant Activities

Union Scholars - https://unionscholars

The Union Scholars programme launched with 30 participants across three cohorts. Participants come from 15 countries (including Sweden, Rwanda, and Argentina), and around 50% are UST students/graduates, with 50% studying at other institutions including Oxford and Cambridge Universities. Some participants are already in doctoral study, while others are considering this or shortly beginning their PhDs. The academic year 2025/26 begins with an intake of 15 new participants, building on the strong start of the previous year.

...CONTINUED

Page 1

Union Foundation Trustees' Report (continued) For The Year Ended 31 August 2025

Significant Activities - continued

Union School of Theology - www.ust.ac.uk

Our School of Theology (UST) is validated by the Open University for its Graduate Diploma, Master in Theology and PhD. UST has maintained quality assurance from the QAA for its degree programmes validated by the OU.

Student recruitment figures are extremely encouraging and resilient, with annual growth of 10% and the admission of 100 new students, the degree student body now over 300. The school's new MA programme is in partnership with Kairos University, who is accredited by the Association of Theological Schools (ATS).

This year, we opened 3 new Learning Communities which act as hubs for theological education, church planting, and healthy church growth through resources. We currently have 33 Learning communities with 58% of students outside the UK in over 30 nations.

Union Publishing - www.unionpublishing.org

Union Publishing has made significant progress in providing the Church with resources that inspire delight in God while fostering growth in Christ.

The launch of Union Grow has been very strong, with nearly 600 members accessing hundreds of resources in more than 30 video-based short courses. We have launched Grow Groups: a level of functionality on the platform designed to enable church small groups or elderships to access material and train together with a ‘mentor’ figure administrating and directing their informal study. Grow Groups were rolled out in September, these serve as an excellent on-ramp to UST’s formal courses and micro-credentials. Live audiences have appreciated attending filming sessions for video series at the ministry centre.

Nine Union Publishing books are now available in translation in 19 languages, meaning that these nine titles are effectively 26 globally. Our partner publishers and translators mean that we are reaching readers in Kurdish, Vietnamese, Telugu, and Marathi (India), among others.

Union Mission - www.union-mission.org

Union Mission has been able to channel around £100,000 to 15 church planting projects in Europe. 213 projects were supported in total with over £1.6 million awarded since 2017. Union Mission giving is serving to tie the areas of our ecosystem more closely together. For example, a generous donor made a special donation to support a small Welsh chapel in Llanelli. This chapel is led by an Argentinian missionary fluent in both Spanish and Welsh and is linked to us through the Daniel Rowlands network. UST MTh graduate planting a church in Hackbridge, London, was supported with prayer and funding.

Summary of charity's progress against its objectives

Union is committed to further developing its ministry ecosystem to serve healthy and sustainable church growth. This is resulting in a growing international profile in the area of theological resources, training & education, community and church mission. Union Foundation's intention is to be able to come alongside churches and be a resource to help them disciple and raise their people in the faith. Creating training pathways to raise up future leaders.

Evidence of the charity's progress, measured by the achievement of its strategic plan, demonstrates a measurable service to the church. Union Publishing continues to produce world-class resources which help Christians enjoy God and serve his church, mobilising potential leaders to be trained for ministry. Our School of Theology has made theological education more accessible through its Learning Communities along with generous scholarships. This has allowed the charity to move forward and achieve its strategic objectives in a timely manner. A third of UST graduates are establishing a new church or re-establishing a dying one, either during or after their studies, with some accessing church planting funds.

Public Benefit

The organisation's trustees can confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Union Foundation is a Christian ministry which primarily benefits the international church constituency it serves and enables healthy growth. These benefits stem from the four strategies which work together as a church growth ecosystem to ensure health and growth around the world.

Union covers a wide range of learning: from the highest academic level, our published research benefits the knowledge base of the international church and church lay leaders are equipped by the provision of free articles and inexpensive books for their personal growth. Union is keen to maximise the effectiveness of its students by seeing them strategically deployed where they can be most useful in mission. We do this by working closely with many churches, networks and agencies who offer great expertise and specific geographical knowledge. A number of new churches, which are now serving and helping local communities in the UK and in Europe, have been established with support from Union Mission.

Union's premises and facilities are made available as an ongoing resource to benefit and serve the needs of local churches and host conferences on issues of local, national and global significance

Page 2

Union Foundation Trustees' Report (continued) For The Year Ended 31 August 2025

The trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.

Financial Review

Financial Position

Income from student fees increased from £574k to £657k this year.

Income from Union Publishing reduced from £90k to £80k compared to last year, and income from Other trading activities – the Ministry Centre and the Courtyard Café & Bookshop - increased from £59k to £90k. We are seeing continued growth and recognition of these ministries. Income from donations reduced from £821k to £770k but our total income overall increased from £1,549m to £1,600m.

Total expenditure increased from £1,577m to £1,757m, affected particularly by a significant review of our staff remuneration and an increase in National Insurance and other costs.

Our net expenditure was a deficit of £157k compared to £28k last year.

We are developing strategic partnerships to help fund the ministry of Union and continue to work towards greater financial resilience in the longer term.

Cash flow

Union has undergone a huge transformation, growing from a residential theological college into a larger global ministry with a vision to enable healthy church growth through investing in leaders and churches. This has meant ongoing changes to the organisation, its structure, its training model & provision and its processes. This comes with significant investment. Especially as UST is pioneering cutting edge theological education and resources.

The increasing costs of providing theological education in the UK are challenging, including the cost burden of regulatory compliance and programme validation. However, there are a number of good developments and plans to ensure we have adequate funds to meet these challenges :

Growing our Friends of Union programme to become the backbone of the ministry with regular monthly givers.

Reserves Policy

The trustees aim to maintain sufficient resources to fund the running and development of the Foundation and the ownership of the buildings and other fixed assets, in accordance with the charitable objects. The aim over time would be to obviate the need to use an overdraft facility. Subject to funds being available, it is our policy is to maintain a reserve of approximately 25% of annual expenditure.

As at 31 August 2025 total reserves were £1,390,919 (2024: £1,547,597), of which £86,384 (2024: £68,234) is represented by restricted funds. At the Balance Sheet date £1,904,980 (2024: £1,950,217) has been invested in the charity's fixed assets and therefore the charity is currently left with no free reserves

Funds Materially in Deficit

Funds received for specific purposes are shown as restricted funds in the accounts. In addition, the trustees designate some of the donations received towards scholarships for students.

Page 3

Union Foundation Trustees' Report (continued) For The Year Ended 31 August 2025

Risk Management

The principal risks faced by Union as outlined in our corporate Risk Register are the challenges of a small-sized enterprise with pressure on cash flow as Union grows, with investment on online development as well as broadening its activities into research, publishing and mission.

Union is on course to be setting aside free reserves in the following year as per our finance policy.

Future Plans

Union's strategic vision is the reformation of Christ's church worldwide. We want to help recruit, raise, deploy and support church leaders to grow the church. Union is building its network of alumni, learning communities and church planting hubs as well as friends who want to connect and be equipped and encouraged through its ministry ecosystem.

We will keep innovating and investing in online infrastructure and decentralised learning. Our ministry model is to be flexible and accessible for the church, which will mean how people access Union will be robust enough to cope with any future lockdowns or travel restrictions. The Post-COVID era expects this from all Higher Education providers and Union has been in the providential position to have invested and developed in this direction for many years. The pandemic has merely accelerated what was already happening in HE. We will also keep investing in our ministry centre in Wales to enhance the experience for all who will relax, study and stay at the Ministry Centre.

Structure, Governance and Management

Governing Document

Union Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association dated 7 February 1986, amended on 20 June 2003, 2 March 2006 and 27 Feb 2011, and further amended by Change of Name 19 October 2016 and again amended on 2 February 2023. It is registered as a charity with the Charity Commission. Day to day management is undertaken by the President, under authority delegated by the Board of Trustees.

Recruitment and appointment of new trustees

Trustees are appointed to represent the global Christian community across various denominational and non-denominational groupings making up the conservative (largely Reformed) Christian constituency which the school serves. Trustees are appointed who have an appropriate range of skills and experience for the effective strategic management of the charity. The charity is able to benefit from trustees who bring a greater range of strategic and management expertise and experience from national and international business and charitable organisations.

Induction and training of new trustees

New Board Members are carefully chosen for the particular skills and experience they bring to the School. Each new trustee receives a copy of the latest annual accounts, the Memorandum and Articles and the Charity Commission's advice on trustee responsibility. Most new Board Members already have considerable experience as charity trustees. The President liaises with Board Members, particularly via the Chairman, providing them with information about the activities and general operations. This facilitates decision-making by the Board with regard to strategic initiatives. Trustees are required to carry out a self-appraisal periodically, a board development plan being created from the feedback to ensure the health of the Board.

Organisational structure

The Board of Trustees administers the charity and meets three times a year. The President was appointed by the trustees to manage the day-to-day operations of the charity and present regular reports to the trustees.

The Executive Director serves the Trustee Board as Company Secretary, and the Vice President focuses on internal leadership and management of teams and staff.

Key management remuneration

The finance committee reviews the charities salary scale each year and makes recommendations to the board.

Related parties

Union Foundation US was set up by Union Foundation to help fundraise in the USA and operates as fiscal agent. Union has a long-standing partnership with SaRang Church in South Korea. The leaders and congregation in Seoul have been very supportive for the past fifteen years.

Risk management

Union has a robust Risk Management Framework which includes a risk register co-owned by several lead staff, identifying major risks to which the charity is exposed. There is a comprehensive IT Disaster Recovery plan in place. The trustees are satisfied that the right systems are in place to meet major risks and ensure Union is prepared to tackle challenging scenarios through Union's Business Continuity Management and Plan. This has been achieved in collaboration with the Board.

The annual financial accounts are professionally audited externally, and management accounts are provided to the trustees on a monthly basis. Insurance cover is reviewed annually, informed by an independent expert. All health and safety systems are regularly scrutinised.

Page 4

Union Foundation Trustees' Report (continued) For The Year Ended 31 August 2025

Reference and Administrative Details

Trustees

Rev S Ko - Chairman Rev M P Tindall - Vice Chairman Rev S M Levy Rev T J Archer Rev Dr D Birdsall (resigned 23/03/2026) Mr K I Kim Mr Y Lee Dr D Shin Dr G Adams Mr D Henderson Dr E E Edifor Mr T Winklehner (appointed 12/09/2025)

Company Secretary

Dr J Morris

Charity Number

517324

Company Number

01987227

Registered Office

Bryntirion House Bryntirion Bridgend CF31 4DX

Accountants

HSJ Accountants Ltd Severn House Hazell Drive Newport NP10 8FY

Auditors

HSJ Audit Limited Severn House Hazel Drive Newport NP10 8FY

Solicitors

Property Law Loosemores Alliance House 18-19 High Street Cardiff CF10 1PT

Page 5

Union Foundation Trustees' Report (continued) For The Year Ended 31 August 2025

Solicitors

Charity Law Bates Wells 10 Queen Street Place London EC4R 1BE

Referenced and Administrative Details

Senior Staff

President Vice President Executive Director

Rev Dr Michael Reeves Dr Daniel Hames Dr Joel Morris

Page 6

Union Foundation Trustees' Report (continued) For The Year Ended 31 August 2025

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Union Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statement unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements the trustees are required to:

The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at anytime the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:

they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.

The trustees' report was approved by the board of trustees and signed on its behalf by:

Rev S Ko

Trustee 28 May 2026

Page 7

Independent Auditor's Report to the Members of Union Foundation

Opinion

We have audited the financial statements of Union Foundation (the "charity") for the year ended 31 August 2025 which comprise the Statement of Financial Activities (including Income and Expenditure Account), Balance Sheet, Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions Relating to Going Concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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 conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on Other Matters Prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees' Report, which includes the Director's Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Director's Report included within the Trustees' Report have been prepared in accordance with applicable legal requirements.

Page 8

Independent Auditor's Report (continued) to the Members of Union Foundation

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director's Report included within the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 1—7, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation 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 assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 9

Independent Auditor's Report (continued) to the Members of Union Foundation

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company and the sector in which it operates to identify the key laws and regulations affecting the charitable company.

As part of this assessment process we discussed with the key laws and regulations with management. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006.

We discussed with management how compliance with these laws and regulations is monitored and discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity's ability to continue trading and the risk of material misstatement to the accounts.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than not detecting one resulting from error as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use Of Our Report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Page 10

Independent Auditor's Report (continued) to the Members of Union Foundation

Andrew Hill FCCA ACA DChA BFP (Senior Statutory Auditor) for and on behalf of HSJ Audit Limited, Statutory Auditor

29 May 2026

HSJ Audit Limited Severn House Hazel Drive Newport NP10 8FY

Page 11

Union Foundation Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 August 2025

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities:
Theological training
Union publishing
Other trading activities
4
Investments
5
Other
6
EXPENDITURE ON:
Raising funds
8
Charitable activities:
8
Theological training
Union publishing
Mission Grants
NET EXPENDITURE
Transfers between funds
23
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
23		 Unrestricted
funds
£
614,915
657,283
79,867
89,664
138
3,712		 Restricted
funds
£
155,026
-
-
-
-
-		 2025
Total
funds
£
769,941
657,283
79,867
89,664
138
3,712		 2024
Total
funds
£
820,500
574,211
89,634
59,191
338
5,506
1,445,579 155,026 1,600,605 1,549,380
(46,993)
(1,427,458)
(120,615)
(10,258)		 (1)
(22,035)
(763)
(129,160)		 (46,994)
(1,449,493)
(121,378)
(139,418)		 (47,457)
(1,314,797)
(112,666)
(102,952)
(1,605,324) (151,959) (1,757,283) (1,577,872)
(159,745)
(17,257)		 3,067
17,257		 (156,678)
-		 (28,492)
-
(177,002)
1,479,363		 20,324
68,234		 (156,678)
1,547,597		 (28,492)
1,576,089
1,302,361 88,558 1,390,919 1,547,597

The notes on pages 16 to 26 form part of these financial statements.

Page 12

Union Foundation Comparative Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 August 2025

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities:
Theological training
Union publishing
Other trading activities
4
Investments
5
Other
6
EXPENDITURE ON:
Raising funds
8
Charitable activities:
8
Theological training
Union publishing
Mission Grants
NET EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
23		 Unrestricted
funds
£
643,317
574,211
89,634
59,191
338
5,506		 Restricted
funds
£
177,183
-
-
-
-
-		 2024
Total
funds
£
820,500
574,211
89,634
59,191
338
5,506
1,372,197 177,183 1,549,380
(47,457)
(1,258,084)
(112,666)
(7,755)		 -
(56,713)
-
(95,197)		 (47,457)
(1,314,797)
(112,666)
(102,952)
(1,425,962) (151,910) (1,577,872)
(53,765) 25,273 (28,492)
(53,765)
1,533,128		 25,273
42,961		 (28,492)
1,576,089
1,479,363 68,234 1,547,597

The notes on pages 16 to 26 form part of these financial statements.

Page 13

Union Foundation Balance Sheet As At 31 August 2025

Notes
FIXED ASSETS
Tangible Assets
13
CURRENT ASSETS
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: Amounts Falling Due Within One Year
16
NET CURRENT ASSETS (LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
Creditors: Amounts Falling Due After More Than One
Year
17
NET ASSETS
FUNDS OF THE CHARITY
Restricted Funds
Unrestricted Funds
TOTAL FUNDS
23		 Unrestricted
funds
£
1,904,980		 Restricted
funds
£
-		 2025
Total
funds
£
1,904,980		 2024
Total
funds
£
1,950,217
1,904,980
45,416
93,543
13,555		 -
-
-
88,924		 1,904,980
45,416
93,543
93,904		 1,950,217
34,999
84,029
71,577
152,514
(318,661)		 88,924
(366)		 232,863
(310,452)		 190,605
(396,085)
(166,147) 88,558 (77,589) (205,480)
1,738,833 88,558 1,827,391 1,744,737
(436,472) - (436,472) (197,140)
1,302,361 88,558 1,390,919 1,547,597
88,558
1,302,361		 68,234
1,479,363
1,390,919 1,547,597

On behalf of the board

Rev S Ko

Trustee 28 May 2026

The notes on pages 16 to 26 form part of these financial statements.

Page 14

Union Foundation Statement of Cash Flows For The Year Ended 31 August 2025

Notes
Cash flows from operating activities
Net cash (used in)/generated from operations
1
Interest paid
Net cash (used in)/generated from operating activities
Cash flows from investing activities
Purchase of tangible assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Proceeds from new bank borrowings
Repayment of bank borrowings
Proceeds from new other loans
Net cash generated from/(used in) financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
2
Cash and cash equivalents at end of year
2		 2025
£
(108,010)
(25,491)
(133,501)
(449)
138
(311)
192,234
(8,645)
50,000
233,589
99,777
(7,647)
92,130		 2024
£
107,496
(28,036)
79,460
(30,821)
338
(30,483)
-
(44,028)
-
(44,028)
4,949
(12,596)
(7,647)

Page 15

Union Foundation Notes to the Statement of Cash Flows For The Year Ended 31 August 2025

1. Reconciliation of expenditure to cash (used in)/generated from operations

Net expenditure
Adjustments for:
Interest expense
Interest income
Depreciation of tangible assets
Loss on disposal of tangible assets
Movements in working capital:
Increase in stocks
Increase in trade and other debtors
(Decrease)/increase in trade and other creditors
Net cash (used in)/generated from operations		 2025
£
(156,678)
25,491
(138)
48,721
-
(10,417)
(9,514)
(5,475)
(108,010)		 2024
£
(28,492)
28,036
(338)
44,806
877
(7,384)
(22,063)
92,054
107,496

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

Cash at bank and in hand
Overdraft facilities repayable on demand
Cash and cash equivalents as stated in the Statement of Cash Flows		 2025
£
93,904
(1,774)
92,130		 2024
£
71,577
(79,224)
(7,647)

3. Analysis of changes in net debt

Cash at bank and in hand
Overdraft facilities repayable on demand
Cash and cash equivalents
Debts falling due within one year
Debts falling due after more than one year		 As at 1
September
2024
£
71,577
(79,224)		 Cash flows
£
22,327
77,450		 As at 31
August 2025
£
93,904
(1,774)
(7,647)
(38,299)
(197,140)		 99,777
15,148
(239,332)		 92,130
(23,151)
(436,472)
(243,086) (124,407) (367,493)

Page 16

Union Foundation Notes to the Financial Statements For The Year Ended 31 August 2025

1. General Information

Union Foundation is a company limited by guarantee, incorporated in Wales within the United Kingdom. The registered office is Bryntirion, Bridgend CF31 4DX.

The financial statements are prepared in Sterling (£), the company's functional currency, and rounded to the nearest pound.

The principal activities and nature of the charity's operations is to provide rigorous biblical and accessible education, training and resources for church leaders and church members to enable their personal and corporate growth in Christ.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with the Charities 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 applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

The charitable company is a Public Benefit Entity as defined by FRS 102.

2.2. Incoming Resources

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.

This includes capital grants.

Donations and legacies income

Donations and legacies income includes donations, gifts and grants that provide core funding or are of a general nature and are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when the donor specifies it must be used in future accounting periods or the donor has imposed conditions which must be met before the charity has unconditional entitlement.

Income from charitable activities

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

Income from other trading activities

Income from other trading activities includes income received under contract. This income is recognised as the related services are provided and there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Income is deferred when the amounts received are in advance of the performance of the service or event to which they relate.

Investment income

Investment income is recognised on a receivable basis.

Page 17

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

2.3. Resources Expended

Basis of recognition of liabilities

Expenditure is recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. This includes governance costs which are those costs associated with meeting the constitutional and statutory requirements of the charity and include the accountancy fees and costs linked to the strategic management of the charity as well as a proportion of salaries based on an approximation of time spent in this area.

Allocation and apportionment of costs

All costs are allocated between the expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on an appropriate basis. Allocation of expenses has occurred between direct expenditure and support costs for some wages and salaries and related costs based on an estimate of time spent in those areas. A similar allocation has occurred for the premises and related costs based on an estimate of the areas used.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets

All fixed assets are initially recorded at cost. The charity has taken advantage of the option available on transition to FRS 102 to treat revalued assets as recorded at deemed cost.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Freehold 2% straight line Fixtures & Fittings 20% straight line Computer Equipment 20% straight line

2.5. Stocks and Work in Progress

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

2.6. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.7. Taxation

The charity is exempt from corporation tax on its charitable activities.

Page 18

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

2.8.

Debtors

Trade debtors and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Foreigncurrencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme, and it contributes to employees' individual personal pension plans. Contributions payable to the schemes are charged to the Statement of Financial Activities in the period to which they relate.

Fund accounting

Unrestricted funds are those which may be used for general charitable purposes at the discretion of the trustees.

Restricted funds have been received with specific stipulations from the donor as to their use and may only be used for such purposes.

Transfers are made from restricted to unrestricted funds once the conditions for the restriction have been met. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

3. Income from Donations and Legacies

Donations and gifts
Gift aid
Legacies		 Unrestricted
funds
£
611,451
3,464
-		 Restricted
funds
£
155,026
-
-		 2025
Total
funds
£
766,477
3,464
-
614,915 155,026 769,941

Page 19

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

Donations and gifts
Gift aid
Legacies
4.
Income from Other Trading Activities
Cafe and bookshops sales
Property income
5.
Investment Income
Bank interest receivable
6.
Other Income
Miscellaneous income
7.
Net Income/(Expenditure)
The net expenditure is stated after charging/(crediting):
Bad debts
Depreciation of tangible fixed assets - owned
Gain/Loss on disposal of tangible fixed assets		 Unrestricted
funds
£
609,317
-
34,000		 Restricted
funds
£
177,183
-
-		 2024
Total
funds
£
786,500
-
34,000
643,317 177,183 820,500
2025
Unrestricted
funds
£
28,399
61,265		 2024
Unrestricted
funds
£
23,811
35,380
89,664 59,191
2025
Unrestricted
funds
£
138		 2024
Unrestricted
funds
£
338
2025
Unrestricted
funds
£
3,712		 2024
Unrestricted
funds
£
5,506
2025
£
(19)
45,686
-		 2024
£
2,400
44,806
877

Page 20

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

8. Analysis of Expenditure

Raising funds
Theological training
Union publishing
Mission Grants
Raising funds
Theological training
Union publishing
Mission Grants		 Activities
undertaken
directly
£
46,994
987,374
70,084
129,160		 Support
costs
(see note 9)
£
-
462,119
51,294
10,258		 2025
Total
£
46,994
1,449,493
121,378
139,418
1,233,612 523,671 1,757,283
Activities
undertaken
directly
£
47,457
973,521
73,884
95,197		 Support
costs
(see note 9)
£
-
341,276
38,782
7,755		 2024
Total
£
47,457
1,314,797
112,666
102,952
1,190,059 387,813 1,577,872

9. Support Costs

Employee costs
General administration
Depreciation
Interest payable
Governance costs		 Theological
training
£
252,614
175,425
1,869
25,491
6,720		 Union
publishing
£
28,706
22,376
212
-
-		 Mission
Grants
£
5,741
4,475
42
-
-		 2025
Total
£
287,061
202,276
2,123
25,491
6,720
462,119 51,294 10,258 523,671
Employee costs
General administration
Depreciation
Interest payable
Governance costs		 Theological
training
£
165,513
125,864
1,869
28,036
19,994		 Union
publishing
£
18,808
18,155
212
-
1,607		 Mission
Grants
£
3,762
3,630
42
-
321		 2024
Total
£
188,083
147,649
2,123
28,036
21,922
341,276 38,782 7,755 387,813

Page 21

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

10. Auditor's Remuneration

Remuneration received by the charitable company's auditors and their associates during the year was as follows:

2025 2024
£ £
Audit Services
Audit of the company's financial statements 5,700 5,855
  1. Staff Costs

Staff costs were as follows:

Wages and salaries
Social security costs
Other pension costs		 2025
£
710,900
65,514
48,380
824,794		 2024
£
631,431
55,860
42,767
730,058

No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000.

The total key management personnel remuneration benefits paid during the year was £286,561 (2024 - £329,908)

12. Average Number of Employees

Average number of employees during the year was: 28 (2024: 23)

13. Tangible Assets

3.
Tangible Assets
Cost
As at 1 September 2024
Additions
As at 31 August 2025
Depreciation
As at 1 September 2024
Provided during the period
As at 31 August 2025
Net Book Value
As at 31 August 2025
As at 1 September 2024
4.
Stocks
Stock		 Land &
Property
Freehold
£
2,389,151
449		 Fixtures &
Fittings
£
228,639
-		 Computer
Equipment
£
43,200
-		 Total
£
2,660,990
449
2,389,600 228,639 43,200 2,661,439
493,432
26,183		 180,723
14,463		 36,618
5,040		 710,773
45,686
519,615 195,186 41,658 756,459
1,869,985 33,453 1,542 1,904,980
1,895,719 47,916 6,582 1,950,217
2025
£
45,416		 2024
£
34,999

14. Stocks

Page 22

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

15.
Debtors
Due within one year
Trade debtors
Other debtors
16.
Creditors: Amounts Falling Due Within One Year
Trade creditors
Bank loans and overdrafts
Other loans
Other creditors
Taxation and social security
Accruals and deferred income
17.
Creditors: Amounts Falling Due After More Than One Year
Bank loans
Other loans
18.
Secured Creditors
Of the creditors the following amounts are secured.
Bank loans and overdrafts		 2025
£
26,628
66,915
93,543
2025
£
106,216
9,675
15,250
21,092
18,607
139,612
310,452
2025
£
386,472
50,000
436,472
2025
£
394,374		 2024
£
18,173
65,856
84,029
2024
£
114,497
101,523
16,000
10,559
15,638
137,868
396,085
2024
£
179,840
17,300
197,140
2024
£
281,363

The Stewardship Services (Uket) Limited loan is secured by way of a fixed charge over the property known as Bryntirion House, Bryntirion, Bridgend, CF31 4DX.

The NatWest overdraft facility is secured by way of a fixed charge over the same property as noted above.

Page 23

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

19. Loans

An analysis of the maturity of loans is given below:

Amounts falling due within one year or on demand:
Bank loans
Other loans
Amounts falling due between one and five years:
Bank loans
Other loans		 2025
£
7,901
15,250
23,151
2025
£
386,472
50,000
436,472		 2024
£
22,299
16,000
38,299
2024
£
179,840
17,300
197,140

21. Deferred Income

Deferred income movements in the year were as follows:

Balance at the start of the period
Income deferred in the current period
Amounts released in income from previous periods
Balance at the end of the period		 2025
£
124,538
152,598
(124,538)		 2024
£
61,739
124,538
(61,739)
152,598 124,538

22. Pension Commitments

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

During the year the charge to the statement of financial activities in respect of defined contribution schemes was £48,380 (2024: £42,767).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

23. Movement in Funds

3.
Movement in Funds
As at 1
September As at 31
2024 Income Expenditure Transfers August 2025
£ £ £ £ £
Unrestricted funds
General:
General unrestricted fund 1,479,363 1,445,579 (1,605,324) (17,257) 1,302,361
Restricted funds
Welsh Publications 1,290 - - - 1,290
SaRang Scolarship Fund 3,124 21,372 (18,210) - 6,286
SaRang project fund 25,782 84,121 (127,160) 17,257 -
Building and roofing fund 10,019 40,005 - - 50,024
...CONTINUED

Page 24

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

Chairman's expense fund
Language prize fund
Student hardship fund
Daniel Rowland centre
Strategic development
Union Church Planting Donations
Mission Admin
Total restricted funds
Total funds
Unrestricted funds
General:
General unrestricted fund
Restricted funds
Bursary gifts
Welsh Publications
SaRang Scolarship Fund
SaRang project fund
Building and roofing fund
Chairman's expense fund
Language prize fund
Student hardship fund
Daniel Rowland centre
Strategic development
Video publishing fund
Total restricted funds
Total funds		 2,273
2,300
5,607
16,668
1,171
-
-		 -
-
3,780
-
840
4,174
734		 -
-
(2,500)
(1,325)
(764)
(2,000)
-		 -
-
-
-
-
-
-		 2,273
2,300
6,887
15,343
1,247
2,174
734
68,234 155,026 (151,959) 17,257 88,558
1,547,597 1,600,605 (1,757,283) - 1,390,919
As at 1
September
2023
£
1,533,128
-
1,290
-
13,327
-
2,273
2,300
3,253
9,825
-
10,693		 Income
£
1,372,197
3,496
-
33,348
107,652
10,019
-
-
3,250
17,809
1,609
-		 Expenditure
£
(1,425,962)
(22,532)
-
(11,188)
(95,197)
-
-
-
(896)
(10,966)
(438)
(10,693)		 Transfers
£
-
19,036
-
(19,036)
-
-
-
-
-
-
-
-		 As at 31
August 2024
£
1,479,363
-
1,290
3,124
25,782
10,019
2,273
2,300
5,607
16,668
1,171
-
42,961 177,183 (151,910) - 68,234
1,576,089 1,549,380 (1,577,872) - 1,547,597

Bursary gifts are donations made towards the fees of students at the college.

The Welsh Publications fund represents a donation received for the purpose of funding the publication of books in the Welsh language.

The SaRang scholarships fund consists of donations received from the SaRang Community Church to provide assistance for students towards their fees.

The SaRang projects fund is for the purpose of supporting mission projects, mainly in the UK and Europe. These are, generally, either the planting of new churches or the revitalization of existing churches.

...CONTINUED

Page 25

Union Foundation Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

23. Movement in Funds - continued

The Chairman's expenses fund represents donations received from SaRang Community Church to cover the travel expenses of the Chairman and sundry other costs at his discretion.

Language Prize - In accordance with the donor's wishes, a fund has been created to help support and encourage training in the biblical languages. The fund will be used to award prizes to the best performing students in Greek and Hebrew, as decided by the Programme Leaders.

Video Publishing fund

This funds comprises donations given to support the production of videos and other similar learning resources for use by students and for publication and sale through Union Publishing.

Student Hardship fund

This fund is mainly the accumulation of voluntary contributions by staff through Give As You Earn. The money raised is used to assist students in particular financial difficulties. Decisions on which students can be helped are made by a staff.

Daniel Rowland Centre

This is a partnership between Union and those sharing the gospel in Welsh-speaking and bilingual settings in Wales. Donations received are used to support the salary and expenses of the Network Coordinator.

Building fund

From time to time we receive donations for the repair or development of the buildings at Bryntirion House.

Strategic Development fund

This fund comprises donations which have been given to contribute towards expenses incurred in pursuing Union's strategic development through networking and conferences.

24. Transactions with Trustees

None of the trustees received any remuneration or any other benefits from an employment with the charity or a related entity during the current or previous year.

During the year the expenses reimbursed to the trustees or paid directly to third parties were as follows:

2025 2024
£ £
Travel 300 686

Number of trustees reimbursed for expenses during the year was 1 (2024: 1)

25. Related Party Disclosures

Union Foundation and SaRang Church have a formal agreement to work together. During the year SaRang donated a total of £258,165 (2024 - £334,269).

Union Foundation received donations of £271,960 (2024 - £211,159) from Union Foundation US (a not-for-profit organisation incorporated in the United States). Joel Morris and Mike Reeves, key management personnel with Union Foundation are directors of Union Foundation US.

Union Foundation received donations from trustees totalling £5,135 during the year.

26. Company limited by guarantee

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

27. FRC's Ethical Standard - Provision Available for Small Entities

In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

Page 26