Appendix 2 - Accounts

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