appendix 2
accounts
for the year ended 31 December 1998
Statement of the General Council's responsibilities
Trade Union law requires the General Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the TUC and of the surplus or deficit of the TUC for that period. In preparing those financial statements the General Council is required to:-
a Select suitable accounting policies and then apply them consistently;
b Make judgements and estimates that are reasonable and prudent;
c Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the TUC will continue to operate.
The General Council is also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the TUC and to enable them to ensure that the financial statements comply with the Trade Union and Labour Relations (Consolidation) Act 1992. It must also establish and maintain a satisfactory system of control over its accounting records, its cash holdings and all its receipts and remittances.
It is also responsible for safeguarding the assets of the TUC and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Report of the auditors to the
members of the Trades Union Congress
We have audited the financial statements on pages XXX to XXX which have been prepared under the historical cost convention and the accounting policies as set out on page XXX.
Respective Responsibilities of the General Council and Auditors
As described on page 1 the General Council is responsible for the preparation of the financial statements. It is our responsibility to form an independent opinion based on our audit on those statements and to report our opinion to you.
Basis of our Opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the financial statements. It also includesan assessment of the significant estimates and judgements made by the General Council in the preparation of the financial statements and of whether the accounting policies are appropriate to the TUC's circumstances consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
In our opinion, the financial statements give a true and fair view of the state of the TUC's affairs as at 31 December 1998 and of its deficit for the year then ended and have been properly prepared in accordance with the Trade Union and Labour Relations (Consolidation) Act 1992.
HARD DOWDY
Chartered Accountants
Registered Auditor
23/28 Great Russell Street
London
WC1B 3NG
1999
Trades Union Congress
Income and expenditure account for the year ended 31 December 1998
Note | Total 1998 | Total 1997 | Administration Fund | Development Fund | Other Funds | ||||||
£ | £ | £ | £ | £ | |||||||
Income | |||||||||||
Affiliation Fees | 1 b | 10,893,813 | 10,674,839 | 9,806,613 | 1,087,200 | - | |||||
Property Rental and Service Charges | 807,196 | 721,815 | 805,720 | 1,476 | - | ||||||
Investment Income | 181,937 | 151,546 | 181,937 | - | - | ||||||
Sale of Publications | 123,456 | 237,363 | 83,978 | 39,478 | - | ||||||
Education Facilities | 803,877 | 729,091 | 803,877 | - | - | ||||||
Donations and Fees Received | 566,035 | 1,718,681 | 131,934 | 434,101 | - | ||||||
Grants Receivable from Public Funds | 44,737 | 68,386 | 44,737 | - | - | ||||||
Total Income | £13,421,051 | £14,301,721 | £11,858,796 | £1,562,255 | £- | ||||||
Expenditure | |||||||||||
Staff Costs | 2 | 5,736,287 | 5,815,316 | 5,487,802 | 248,485 | - | |||||
Property Charges | 3 | 1,787,868 | 1,819,140 | 1,787,868 | - | - | |||||
Office Expenses | 4 | 2,671,509 | 3,544,953 | 1,909,055 | 762,454 | - | |||||
International Affiliation Fees | 5 | 1,249,312 | 1,237,128 | 1,249,312 | - | - | |||||
Travel and Meetings | 602,529 | 613,558 | 403,722 | 198,807 | - | ||||||
Congress | 81,803 | 144,860 | 81,803 | - | - | ||||||
Trade Union Education | 257,806 | 26,149 | 250,877 | 6,929 | - | ||||||
Grants and Donations | 6 | 971,257 | 601,874 | 949,125 | 22,132 | - | |||||
Depreciation | 1 c | 458,265 | 527,864 | 343,670 | 114,595 | - | |||||
Taxation | 7 | 16,606 | 54,655 | 16,606 | - | - | |||||
VAT Recovered | (92,042) | (154,449) | (92,042) | - | - | ||||||
Total Expenditure | £13,741,200 | £14,231,048 | £12,387,798 | £1,353,402 | £- | ||||||
Operating (Deficit) Surplus | (320,149) | 70,673 | (529,002) | 208,853 | - | ||||||
Funds at 1 January 1998 | 5,897,265 | 5,563,597 | 3,311,003 | 2,352,409 | 233,853 | ||||||
Gain on Foreign Exchange | - | 5,939 | - | - | - | ||||||
Profit on Sales of Assets | 1,050 | 7,474 | 1,050 | - | - | ||||||
Profit on Disposal of Investments | 183,335 | 249,582 | 183,335 | - | - | ||||||
Funds Employed | £5,761,501 | £5,897,265 | £2,966,386 | £2,561,262 | £233,853 |
Balance sheet
As at 31 December 1998
Note | 1998 | 1997 | ||||
£ | £ | |||||
Assets | ||||||
TANGIBLE FIXED ASSETS | 8 | 3,797,522 | 3,835,740 | |||
INVESTMENTS | 9 | 2,172,666 | 1,875,120 | |||
Current assets | ||||||
Cash Funds | 831,825 | 417,575 | ||||
Sundry Debtors and Prepayments | 1,334,150 | 1,748,824 | ||||
Short Term Loans | 63,250 | 48,829 | ||||
TUC Educational Trust | 1,260,157 | 1,741,014 | ||||
3,489,382 | 3,956,242 | |||||
Less: current liabilities | ||||||
Sundry Creditors and Accrued Expenses | 2,097,393 | 2,346,085 | ||||
Net current assets | 1,391,989 | 1,610,157 | ||||
NET ASSETS LESS CURRENT LIABILITIES | 7,362,177 | 7,321,017 | ||||
LESS: LOAN | 1,882,002 | 1,451,332 | ||||
Net assets | £5,480,175 | £5,869,685 | ||||
Financed by: | ||||||
FUNDS EMPLOYED | 5,761,501 | 5,897,265 | ||||
PROVISION FOR DILAPIDATIONS | (281,326) | (27,580) | ||||
Net funds | £5,480,175 | £5,869,685 |
Notes to the accounts
For the year ended 31 December 1998
1 | ACCOUNTING POLICIES | |||
a | Basis of Accounts | |||
The Accounts have been prepared under the historical cost basis of accounting and in accordance with applicable Accounting Standards. | ||||
b | Affiliation Fee Income | |||
Affiliation Fees are shown in the Accounts on the basis of cash receivable during the year. | ||||
c | Depreciation and Amortisation | |||
Freehold Property | The rate of depreciation has been changed. The balance of cost remaining at 1 January 1998 is to be depreciated over 9 years. Subsequent additions to be depreciated over 10 years. | |||
Leasehold Property | The cost plus further expenditure will be written off over the period of the lease which runs from 25 December 1981 for a term of 125 years. | |||
Furniture and Fittings | 10% or 25% per annum on cost as applicable. | |||
Equipment | 20% or 25% per annum on cost as applicable. | |||
Motor Vehicle | 25% per annum on cost. | |||
Furniture, Fittings and Equipment with a nil book value at the beginning of the year have been treated as disposals. |
Notes continued | 1998 | 1997 | ||
£ | £ | |||
2 | Staff costs | |||
Salaries and National Insurance | 4,789,466 | 4,752,193 | ||
Pension Contributions | 556,758 | 490,488 | ||
Welfare and Training | 229,337 | 274,817 | ||
Restructuring Costs | 107,790 | 193,614 | ||
Advertising | 52,936 | 104,204 | ||
£5,736,287 | £5,815,316 | |||
3 | Property charges | |||
Rent and Rates | 389,981 | 402,072 | ||
Heat and Light | 90,623 | 103,964 | ||
Cleaning | 122,731 | 64,121 | ||
Insurance | 78,252 | 86,869 | ||
Lifts and Maintenance | 243,592 | 366,896 | ||
External Functions | 437,023 | 295,218 | ||
Provision for Dilapidations | 425,666 | 500,000 | ||
£1,787,868 | £1,819,140 |
1998 | 1997 | |||
£ | £ | |||
4 | Office expenses | |||
Communications | 377,017 | 442,984 | ||
Stationery and Printed Materials | 745,673 | 818,833 | ||
Renewals and Repairs to Office Equipment | 427,616 | 337,279 | ||
Motor Expenses | 9,649 | 8,777 | ||
Audit Fees | 19,617 | 16,118 | ||
Bank Charges | 8,125 | 8,336 | ||
Loan Interest | 154,704 | 26,390 | ||
Legal and Professional Fees | ||||
Projects and Campaigns | 425,848 | 1,198,893 | ||
Conferences | 124,672 | 37,355 | ||
Finance and Management | 124,926 | 61,847 | ||
Consultancy Fees | 78,263 | 75,516 | ||
Training and Development | 41,867 | 46,769 | ||
Communications | 26,041 | 96,646 | ||
Other |
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