Educational Trustees Meeting

Agenda

Minutes of previous meeting.

Secretary's report.

Draft ET Trading Company accounts.

Recent Management Accounts.

Draft License Agreement with farmer.

Project 120 Notes.

Notes of a meeting with Andy Hodder.

The Shout Out Project Brochure.

The Shout Out Project time line.

The Birmingham People's Centre Letter.

Minutes of the GFTU Educational Trust

November 2017

Present: Lynn Ambler, Dami Benbow, John Callow, Doug Nicholls, Steve Orchard, Angela Pratten, Alice Prochaska, Maddy Radcliff, Michael Sanders, John Smith, Antionietta Torsiello, Oshor Williams

In attendance: Michael Dick, Sue Malden (for the first half of the meeting)

1. Apologies

Apologies were received from: Charlotte Appleyard, Nadine Rae & Bindu Paul

2. New Members

There were no new members.

3. Support for Governors, good governance and relevant paperwork

Doug Nicholls provided an overview of the Educational Trust, its aims and the scope of its charitable work. John Smith explained the role of trustees and the statutory framework that governs members of the Trust.

4. Minutes of the previous meeting.

The minutes of the previous meeting had not been available. This item was put back.

5. Matters arising from the previous minutes.

This item was put back to the next meeting.

Item 8 on the agenda was consequently moved forward to become the new item 6.

6. History Project – BECTU

Michael Dick and Sue Malden gave a presentation, including audio visuals, about their work on the BECTU History Project and website. Doug Nicholls expressed the hope that there would be a close dialogue between GFTU Educational Trust and BECTU over the project.

7. New Build

The Secretary outlined the plans for the new build at Quorn. 10 new houses were to be built on the site currently occupied by the Lodge. It was estimated that this would bring in a rental income of £85k per annum. At the hotel, there would be an additional 25 rooms and the extension of the existing function room (the Goodacre Suite).

There had been difficulties with the initial architect.

There would be an extra £130k increase on the extension of the function room.

1

In addition, there were drainage difficulties with the site as the hotel was built upon granite. The current car park area would need to be tanked, to provide an underground reservoir for the run- off water. This would necessitate an extra spend. It had been planned to expand the facilities and capacity of the Nursery, to accommodate 60 children (double the current number). It was thought that this would bring in £70k to the Educational Trust. However, the hotel appeared to have been subsidising the Nursery to a greater extent than had previously been thought, through previously shared services. As a result, the Nursery new build was now in doubt. There was a discussion over the farm track to be used by contractors for access to the building site. Again, this will inflate the budget for the total build.

There was a discussion of the possibility of additional house builds.

The build was now estimated to cost between £5 and £5.5 million.

£3.5 million was to be offered, upfront, by the GFTU.

The balance would be secured through loans. There was a discussion as to whether crowdfunding could be used as an additional source of revenue.

8. Ownership of the site.

The Secretary proposed that 2-4 of the members of the Educational Trust should become named trustees, in whom ownership of the property at Quorn should be vested. It was agreed that Doug Nicholls and John Smith would be the nominated Trustees. There was. However, the question of unlimited liability and a discussion took place around what the implications of this were for individual trustees. The Secretary undertook to explore the principle of limited personal liability and would ask Morrishes’ Solicitors to approach Wrighley’s in order to obtain a swift answer. He would also resolve the position on personal liability as regards the hotel and the nursery.

It was agreed to increase the insurance cover for all Trustees to £1m.

9. Agreement of Budgets

It was reported that the Nursery budget had not yet been decided upon.

All other budgets were ready, but discussion would be held over for the next meeting.

10. Secretary’s Report

A written report was submitted and circulated.

A 1% spend on art was suggested and discussed for the hotel new build.

The post of Education Administrator had been advertised and was, shortly, to be filled.

2

There was a report on the Liberating Arts Festival (4-5 November). The learning objectives had been fulfilled and it was felt that the event had been an extremely positive one. There was a financial implication in running the festival and a shortfall of £10-12k would be met in the form of a subsidy from the Educational Trust.

11. Education Officer’s Report.

A written report was submitted and circulated.

There was a discussion around the projected children’s film programme at Tolpuddle and the costs entailed in the hire of film tents. There was further discussion of the ways in which Instagram, Snapchat and comic books might all assist in TU education.

12. The previous set of minutes were noted.

13. AOB

There was a discussion of the GFTU’s 120 th anniversary and how this might be framed given that the TUC, in 2018, was to be held in Manchester. There was discussion of the possibility of holding an event or fringe at the Mechanics’ Institute.

The next BGCM, marking the 120 th anniversary of the Federation, would be held in May 2019.

3

GFTU Educational Trust

Secretary’s Report.

November-May 2018.

This report incorporates the Education Officers’ Report.

1 Technical, Insurance and Legal. 1.1 As requested at the last Trustees’ meeting, individual indemnity insurance for all Trustees has been increased to £1 million. 1.2 In researching the title deeds prior to the new build, our lawyers, Morrish and Co. discovered that in their view the sale transfer had incorrectly attributed the ownership to the Trust whereas it should have been in the name of two Trustees or more. Attempts to enlist the support of the Charity Commission to make this amendment failed. They would not get involved. I subsequently had discussions with the lawyers who recommended that they pursue the solicitors who acted for us during the sale and the vendor’s solicitors for allowing this error. I decided not to do this in the first instance but to write instead myself to our previous lawyer hoping they could make the amendment without recourse to claims, counter claims and costs. I await their response. 1.3 There have been protracted discussions with our neighbouring farmer about the terms of access to his road during our new build year. These are reaching conclusion and the terms of the attached license agreement are by and large agreed.

1.4 Licenses for the use of our Trust property and land by the GFTU and the GFTU Trading Company have been drafted and precise terms for these will be considered subsequently.

2 New Build. 2.1 Following detailed consideration the GFTU decided to accept the tender from J Tomlinson for the new build work on the site. This is valued at £4.9m. There is additional work also to be undertaken.

2.2 The GFTU have generously agreed to fund the Educational Trust to enable this work to be undertaken.

2.3 This decision has been taken on the basis that the housing development will generate a minimum of £85k a year and the new hotel development some £256k per annum.

2.4 The question of the nursery development was considered in great detail and alternative business plans were requested for office rental, a spa or a conference centre in the new building. This were considered carefully and it was clear that the spa option was the most secure and lucrative. The GFTU did not consider it had the funds for this option and canvassed the affiliated unions to see if any loans were possible. To date around £500k worth of potential loans have been offered without prejudice and subject to detailed terms. The GFTU is keeping the viability of this element of the project under review.

2.5 The cost of new hotel offices was not factored into the overall build plan and quotations up to around £35k have been received for this work.

2.6 The GFTU will move into temporary office accommodation for 5 weeks during the new build period and will move into the existing nursery building.

2.7 The necessary environmental, wildlife, asbestos, utilities and ICT surveys have now been completed prior to the new build. No obstacles have been raised.

2.8 A new cost plan for the new build and programme plan have been produced. The GFTU will not be taking any loans for this project. It will be funded entirely from our financial investments. The build programme will be 50 weeks.

2.9 The form of the building contract is a design and build which in essence means that all of the liabilities are with the contractor and not with the GFTU or Education Trust.

2.10 From an educational point of view it should be noted that the new build adds two new classrooms to the GFTU offices. It will be the intention to get modern ICT equipment for these. Nursery 3.1 Following very detailed examination and external advice it because very clear that the option of building and running a new larger nursery was not viable. 3

3.2 Meetings were held with 4 potential buyers of the nursery or companies to run a new nursery for us under a license agreement. These too did not prove viable.

3.3 Redundancies of all nursery staff were therefore made. I am pleased to report however that all but one member of staff obtained alternative employment on or prior to the closure date. One remaining member of staff did not fund work immediately and we offered her some temporary work to deal with the nursery closure and I am pleased to report she has not found full time employment also. 3.4 The Operations Manager had a lot of work to do to effect a smooth closure and then to ensure that the building was left in good order and that all paperwork and records were secured and he should be thanked for this work.

3.5 The Operations Manager secured sales amounting to £1000 for some remaining equipment and this has been placed in the ET bank account.

3.6 The nursery fee management was not good and some £20K of fees remain outstanding. Detailed consideration to the prospects of debt collection have been given by the finance officer, Head of Finance and Operations Manager. It has been agreed to prioritise some recent debts.

3.7 The closure of the nursery also relieves the budget of the hotel by some £25k per annum for food supplies.

4

Third Age Challenge Trust

4.1 We have deregistered this company.

5 ET Trading Company

5.1 The draft accounts of our Trading Company, which primarily manages the hotel, are attached. 5.2 It should be noted that there have been cash flow problems at the hotel over the last two years and an accumulated debt of some £194k to the GFTU has accumulated. A strict repayment schedule has been agreed over the next eighteen months and the first repayment amount has been paid. 5.3 There was a serious case of fraud against the company by an energy broker. The Head of Finance has had a serious amount of work to do to report this to all relevant authorities. Fortunately nearly all of the money that was removed due a fraudulent signature has been repaid. Ofgem, the police, fraud team and so on have all been reported. 5.4 The Hotel General Manager and Events Organiser have held meetings with all wedding couples. A condition with the contractor for the new build was of course to minimise any disruption to business. This will be the main focus of the weekly site meetings and the Hotel Manager’s role over the year.

6

Staffing

6.1

Ros Hartshorn has joined the team as Education Administrator.

7

Accounts and Finances

7.1 The ET has been audited and the final accounts await the completion of the Nursery audit and accounts as they are fully consolidated accounts and take longer than all others. The draft accounts will be circulated to Trustees shortly by email and approved at our next meeting. In the mean time the latest management accounts are attached. 7.2 Some £228k reduction on the GFTU portfolio was recorded in the last quarter with the dip in the markets. This again proves the difficulty of relying on money market investments.

8

Potential New Partnership

8.1 I attached notes of some proposals that Dr Andy Hodder of Birmingham University and I were discussing recently. This is a welcome new development. See attached.

9

Federation News/Viewpoint

9.1 The Trust formerly funded along with the Institute for Employment Rights, the publication Federation News a successful balance of academically rigorous and popular articles. I then changed this to Federation Viewpoint but became unconvinced of its impact. However several academics and trade unionists have indicated that there is a need for a resurrection of such a publication perhaps as a digital version. 9.2 As you will see Dr Hodder is prepared to resurrect this and I think we should welcome this development and publish in our 120 th year next year.

10

Grants and Requests

10.1 We receive random and intermittent and very varied requests for funding, especially from students. We do not have a systematic and professional process for dealing with these. I propose that we ask the Education Officer to produce a set of protocols for discussion at our next meeting. 10.2 Just by way of reminder in 2018 we are supporting the Tolpuddle Martyrs Radical Film Festival, Workable Books publications Class Songs, and A graphic novel on the history of the Labour Movement, Edda Nicolson’s PhD, The Durham Miners’ Gala. 10.3 We are partners to the coalfields research project at the University of Wolverhampton and partners to the funding bid for work on radical poetry at the University of Manchester. 10.4 I am proposing to this meeting of Trustees a £10k grant for 2018 for the Shout Out Project. Their papers are attached. They bring political literacy programmes to schools. Delegates to the GFTU Union Building Conference were extremely impressed by their work. I have never previously proposed such a large grant and this is testament to the importance with which the GFTU attaches to this work this year. 11.1 The agreed strategy of the Trust is to supplement the previous exclusive source of funding for education by the GFTU through the creation of new funding streams. 11.2 The ownership of Quorn Grange and now the significant new building on site are the current main income generators. 11.3 However, it should be borne in mind that there is considerable untapped potential for fundraising directly to the education work of the trust and indeed to our interest in arts culture and heritage. Are we in a position to form a sub group to consider further funding potential? 11.4 Additionally we should bear in mind that the GFTU has opened up actual and new funding streams that directly benefit the Trust. Our most successful income generator at the moment is the expansion of the Finance functions of the GFTU to provide accounts and audit services for affiliates and others. We have just won a new tender to do all of the accounts and finance work of one national union. 11.5 We also generate income through the Education Team managing affiliated unions’ education work. 11.7 In addition, the most extensive range of support services for affiliates has now been launched. You can see this on the GFTU website. It is called win:win. Basically all unions using our services get discounts and the providers put commission into the Trust. Some services such as the ethical shop are publicly available. 11.8 The Operations Manager and I had a full day meeting to develop a strategy to see how we can get this offers taken up and start generating new income streams. 10.5 We have received a request for funding for the Birmingham 11 Fundraising 11.6 We are seeking to expand such work.

11.9 These other income streams are significant for two reasons, firstly they help our charitable objectives, secondly the new build plan we have designed does not entirely solve the long term financial issue we have been trying to resolve. To full balance our books and ensure that we are not spending each year out of the family silver, we require around another £100k a year.

11.10 £10k has been generated for the Trust by undertaking an education review for PCS.

11.11 £10k has been generated for the Trust by undertaking an organisational review for the GGCA. This kind of contract work for affiliates benefitting the Trust is opens new and welcome opportunities.

12

New Trustees

12.1 I am very pleased that all Trustees approved by email the proposal for Jill Westerman to join us as a Trustee and we look forward to welcoming Jill at our next meeting.

13

Project 120

The GFTU celebrates its 120 th year next year.

13.1

13.2 A sub group has met to consider how this could be best celebrated. Notes of our meeting are attached. I hope that the Trustees may be able to support this plan recognising that this will require perhaps in the region of £20k from the Trust next year.

13.3

Any additional ideas are welcome.

13.4 Since this meeting I am pleased to say that all partners are signed up to the project. Also it has been news to me to discover that the Modern Records Office and the Working Class Memorial Library both have significant GFTU Holdings. 13.5 Warwick Modern records Office have suggested that they produce an online digital exhibition of the GFTU which I have welcomed on our behalf. 13.6 It is of course equally in the Trust’s interests that the year leads to increased GFTU affiliations as well as a successful record or the GFTU. 14.1 The Union Building Conference at Yarnfield (23-25 February) was well attended by delegates from GFTU’s affiliated unions. There were presentations around the Educational work of the GFTU and the shared services offer to our affiliates, as well as contributions from international speakers and a podcast from John McDonnell, the Shadow Chancellor, stressing the vital roles of working class education and the youth service. The event also provided a valuable opportunity to showcase the GFTU’s ‘Trade Union Education’ book. 14.2 Work is ongoing with the publication schedule for Workable book titles for 2018. The volume on Trade Union Education is gaining traction; through its use as a course text on Level 4; its dissemination through some Education Officers; and its appearance on some PGCE reading lists. TSSA, in particular, have actively promoted it and ordered copies for their officials. 14.3 The relationship with Northern College continues to strengthen, and is proving to be extremely beneficial for both parties. Northern are attending the Education Officers’ 14 Education Work.

meetings organised by the GFTU and contributed a session at the Union Building Conference in February. 14.4 The GFTU’s Next Generation Youth Festival was held on 20-22 April and brought together delegations from the PCS, Nautilus, Community and Bakers’ unions, in what was a very successful and enjoyable event. Two young members Thanks are due to Sarah Woolley and Charlotte Appleyard for both planning the event and for all their hard work over the weekend. 14.5 The first part of the ‘Learning to Teach in Trade Union Education’ Level 4 course was held at Quorn (13-14 April), tutored by R. Chiosso and A. Smith with S. Woolley & J. Callow. 15 PCS officers attended what was a new departure for both the GFTU and Leeds Beckett University. The feedback was very positive and the second session will be held on 18-19 May. 14.6 The Learning Pool site is being redeveloped and made available to affiliates, with new materials being added and developed all the while. This enables distance learning to be offered to our affiliate members alongside the more traditional taught courses. The Education Officer and Operations Manager have, to date, had two training sessions on the system. 14.7 The draft 2018-19 Education Programme is being finalised, and is attached to this report. The idea is to provide learning pathways (coded as Foundation, Developing and Advanced skills sets) that will take Reps on a journey from literacy and numeral skills right through to degree and postgraduate levels. 14.8 The Education Officer and Operations Manager met with the Social Workers’ Union to discuss shared services and educational provision, together with the appointment of a part- time administrative support worker who would primarily service the SWU’s increasing remit and requirements. 14.9 The GFTU is to produce (among other projects) an illustrated commemorative brochure to mark its 120th anniversary. Affiliates are invited to contribute 800-1,000 on any aspect of their union’s past, present or projected future – and their relationship to the GFTU ‘family’. 14.10 Five Leaves bookshop in Nottingham and the Secular Hall in Leicester are keen to explore the hosting of joint events with the GFTU. This might be one means of resolving the problem with the Sunday Schools, which continue to register minimal interest. 14.11 A paper on Posted Labour Directives 96/71/EC and 2014/67/EU has been submitted to Formac, as part of the GFTU commitment to the 2018-19 programme. 14.12 Tutor recruitment is ongoing, with an aim to making the pool wider and more reflective of wider society. Three more tutors have been recruited since February. 14.13 The GFTU is planning to participate in conjunction with The Race Equality Council, in Leicester, with a programme around the life and achievements of Walter Tull, in order to mark Black History Month in October (1888-1918). The idea is to reach out to community groups and schools, utilising local author Michaela Morgan’s ‘Walter Tull Scrapbook’. 14.14 Course recruitment is still an issue, though not quite so threatening as in past months. EA27 ‘Suing an Employer’ received 2 applications; and – surprisingly – EA09 New Reps Development only had 4 applications.

However, the EA53 Course on Parliament was heavily oversubscribed. 15 delegates (from NAPO, GMB & PCS) spent two days in the Commons and the Lords, meeting with Shadow Cabinet Ministers, MPs and Lords. The course responses were extremely enthusiastic. 14.15 The Trust has offered a comprehensive range of GDPR training options on a cost basis and revenue will come back into the Trust. Please see the GFTU website for details of these courses. 14.16 In terms of approximate course breakdowns – 75% are male, 25% female; and 12% defining themselves as disabled.

The following courses have run, since February:

Northern College – Shop stewards Stage 1 – 14 attended, 1 no show, 1 cancellation (5-9 February)

Northern College – Health & Safety Stage 1 – 17 attended (19-23 March)

TSSA – Reps Intro – 12 attended - 1 no show, 2 cancellations – (6-8 March)

EA53 – Getting the Most out of Parliament – 15 attended (21-22 March)

TSSA – Health & Safety Next steps – 6 attended – (20-22 March)

TSSA – IR Next Steps – 7 attended – (20-22 March)

TSSA – Preparing for Retirement – 14 attended – (24 March)

EA78 – Principles & Practice of TU Education – 15 attended (12-13 April)

EA11 – Experienced Reps Development – 8 attended, 1 cancelled (16-17 April)

Northern College – ULR 2 – 11 attended, 1 cancelled 2 no shows (16-20 April)

Northern College – Negotiating Skills – 13 attended, 4 cancelled (23-27 April)

15

Workable Books.

15.1

This is our partnership venture with New Internationalist.

15.2

A sales meeting has been held about the first two publications.

15.3 The Mary Quiale Club is holding a special event with performances on May 19 th to celebrate our publication Workers’ Play Time. This is a great example of keeping our history and culture alive. 15.4 A super by publication of songs and images has been produced along with Dave Rogers of Banner Theatre and some subsidy will be necessary, probably around £3,000 to ensure this is printed to full standard. Heroes in the Evening Mist, the posthumous last novel of William Ash is ready for publication. I am working as the history advisor with two award winning graphic novelists, Sean Wilson (based in Japan) writer, and Robert Brooks, (based in Poland). This publication will be ready in September and again given the lack of interest in this project by the Arts Council of England and so on will require a small subsidy again around £3,000.

16

Art at Quorn.

16.1 We are committed to art at Quorn. I have donated temporarily some more tapestries and we have also been successful in getting a commitment to a large lump of granite to turn into an eye catching sculpture on site in 2019 after the new build. We have had discussions with the Artists’ Union of England about this. 16.2 We will ensure that the new GFTU office on site reflects the imagery and culture of the movement more than is currently possible.

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

FOR

GFTUET TRADING COMPANY LIMITED

GFTUET TRADING COMPANY LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

5

Balance Sheet

6

Notes to the Financial Statements

7

Trading and Profit and Loss Account

10

GFTUET TRADING COMPANY LIMITED

COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2017

Directors:

Ms L J Ambler J E Fray D J Nicholls Ms N Sharpe J F Smith

Registered office:

84 Wood Lane Quorn Loughborough Leicestershire LE12 8DB

Registered number:

08282681 (England and Wales)

Auditors:

Sturgess Hutchinson (Leicester) Limited Chartered Certified Accountants & Registered Auditors 10 Station Road Earl Shilton

Leicester LE9 7GA

1

GFTUET TRADING COMPANY LIMITED

REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31 DECEMBER 2017

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

Principal activity The principal activity of the company in the year under review was that of a hotel.

Directors The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this report.

Ms L J Ambler J E Fray D J Nicholls Ms N Sharpe J F Smith

Statement of directors' responsibilities The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements 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. Statement as to disclosure of information to auditors So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. Auditors The auditors, Sturgess Hutchinson (Leicester) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

On behalf of the board:

........................................................................ J E Fray - Director

Date: .............................................

2

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GFTUET TRADING COMPANY LIMITED

Opinion We have audited the financial statements of GFTUET Trading Company Limited (the 'company') for the year ended 31 December 2017 on pages five to nine. 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). This report is made solely to the 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 company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2017 and of its loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Other information The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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, 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. Opinion 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Directors has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

- certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

3

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF GFTUET TRADING COMPANY LIMITED

Responsibilities of directors As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Our 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 a Report of the Auditors 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.

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

David Goodwin (Senior Statutory Auditor) for and on behalf of Sturgess Hutchinson (Leicester) Limited Chartered Certified Accountants & Registered Auditors 10 Station Road Earl Shilton

Leicester LE9 7GA

Date: .............................................

4

GFTUET TRADING COMPANY LIMITED

INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017

2017

2016

Notes

£

£

Turnover

1,431,423

1,470,793

Cost of sales

840,100

978,261

Gross profit

591,323

492,532

Administrative expenses

698,055

657,382

Operating loss

4

(106,732)

(164,850)

Gift Aid

5

48,000

78,000

(154,732)

(242,850)

Interest receivable and similar income

44

70

Loss before taxation

(154,688)

(242,780)

Tax on loss

-

-

Loss for the financial year

(154,688)

(242,780)

The notes form part of these financial statements

5

GFTUET TRADING COMPANY LIMITED (REGISTERED NUMBER: 08282681)

BALANCE SHEET 31 DECEMBER 2017

2017

2016

Notes

£

£

£

£

Fixed assets Tangible assets

6 7

419,991

478,666

Investments

2

2

419,993

478,668

Current assets Stocks

10,128 140,446 27,668

10,812 175,494 51,274

Debtors

8

Cash at bank and in hand

178,242

237,580

Creditors Amounts falling due within one year

9

586,580

609,905

Net current liabilities

(408,338)

(372,325)

Total assets less current liabilities

11,655

106,343

Creditors Amounts falling due after more than one year

10

568,719

508,719

Net liabilities

(557,064)

(402,376)

Capital and reserves Called up share capital

2

2

Retained earnings

(557,066)

(402,378)

Shareholders' funds

(557,064)

(402,376)

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on ............................................. and were signed on its behalf by:

........................................................................ J E Fray - Director

The notes form part of these financial statements

6

GFTUET TRADING COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

1.

Statutory information

GFTUET Trading Company Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.

Accounting policies

Basis of preparing the financial statements These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Turnover Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Plant and machinery etc - 15% on reducing balance Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Taxation Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Going concern The financial statements have been prepared on the going concern basis. The company has secured long term funding from the General Federation of Trade Unions Educational Trust and on that basis the directors believe that it is appropriate to use the going concern basis.

3.

Employees and directors

The average monthly number of employees during the year was 51 (2016 - 61).

4.

Operating loss

The operating loss is stated after charging:

2017

2016

£

£

Depreciation - owned assets

77,826

69,200

Auditors' remuneration

4,000

4,000

7

GFTUET TRADING COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2017

5.

Exceptional items

2017

2016

£

£

Gift Aid

(48,000)

(78,000)

6.

Tangible fixed assets

Plant and machinery etc £

Cost At 1 January 2017

699,826 30,080 (20,542)

Additions Disposals

At 31 December 2017

709,364

Depreciation At 1 January 2017 Charge for year

221,160 77,826

Eliminated on disposal

(9,613)

At 31 December 2017

289,373

Net book value At 31 December 2017

419,991

At 31 December 2016

478,666

7.

Fixed asset investments

Shares in group undertakings £

Cost At 1 January 2017 and 31 December 2017

2

Net book value At 31 December 2017

2

At 31 December 2016

2

8.

Debtors: amounts falling due within one year

2017

2016

£

£

Trade debtors Other debtors

26,263 114,183

66,519 108,975

140,446

175,494

9.

Creditors: amounts falling due within one year

2017

2016

£

£

Trade creditors

184,277 47,446 354,857

99,707 51,351 458,847

Taxation and social security

Other creditors

586,580

609,905

8

GFTUET TRADING COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2017

10.

Creditors: amounts falling due after more than one year

2017

2016

£

£

Amounts owed to group undertakings

568,719

508,719

11.

Ultimate controlling party

The controlling party is the General Federation of Trade Unions Educational Trust.

9

GFTUET TRADING COMPANY LIMITED

TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2017

2017

2016

£

£

£

£

Sales

1,431,423

1,470,793

Cost of sales Opening stock

10,812 299,815 504,659 34,942

10,603 262,839 692,904

Purchases

Wages

Other direct costs

22,727

850,228 (10,128)

989,073 (10,812)

Closing stock

840,100

978,261

Gross profit

591,323

492,532

Other income Deposit account interest

44

70

591,367

492,602

Expenditure Wages

210,890 56,948 13,324 62,471 70,705 66,865 77,826 12,259 10,871 28,802 10,115 26,839

198,368 45,918 17,031 85,295 34,320 72,290 69,200 10,040 22,809 10,634 24,882 9,247

Rates and water

Insurance

Light and heat

Repairs to property Cleaning and waste

Depreciation of tangible fixed assets

Telephone

Post and stationery

Advertising Travelling

Computer costs Sundry expenses

9,807

9,098

Subscriptions

11,650

11,408 19,530

Legal fees

2,645 4,000

Auditors' remuneration

4,000

Entertainment

-

84

Bad debts

8,687

-

684,704

644,154

(93,337)

(151,552)

Finance costs Bank charges

13,351

13,228

(106,688)

(164,780)

Gift Aid Gift Aid

48,000

78,000

Net loss

(154,688)

(242,780)

This page does not form part of the statutory financial statements

10

ET Management Accounts YTD Mar 18

GFTUET Full Year 2018

Budget YTD Mar 18

Actual YTD Mar 18

Budget left to spend for the year

Income source

Variance

Notes

Accounts Processing Services

- - -

Recharge for services provided- QGH

Contributions

Sponsorship/Commission Bank Interest Received

350

350

- -

Misc Income- intercompany recharge

-

Gift Aid-GFTU Gift Aid- Albion Gift Aid-QGH

100,000

25,000

(25,000)

100,000

-

-

- -

-

48,000

12,000

12,000

36,000 (8,000) 12,634

Gift Aid-QGH Nursery Customised Course Fees

-

8,000 7,366

8,000 2,366

20,000

5,000

Core Courses

- - -

- - -

- - -

Trade Union Management Programme Grant/Arts Festival/Spon'ship/Project

-

Other Income

12,000

3,000

146

(2,854)

11,854

-

-

-

Total income

180,000

45,000

27,862

(17,138)

152,488

Expenditure

Staffing Salary+ NIC

202,762 22,407

50,690.50

52,638

1,948

150,124 18,160

Pensions

5,602

4,247

Redundancy & Severance

-

- -

-

-

Staff Welfare

2,400 2,000 5,000 4,500

600 500

(600) (111)

2,400 1,611 4,750

Staff Travel and Subs

389 250

Essential Car user Allowance

1,250 1,125

(1,000)

GS Travel HOE Travel

3,793

2,668

707

-

-

-

-

Other employment costs- Agency

1,200 4,000

300

319

19

882

Training and development

1,000

2,027

1,027

1,973

Agency

- - -

- -

- - -

Pensions Recovery Payments

Staffing total

244,269

61,067

63,663

2,596

180,606

Premises Rent and Rates

1,500

375

- -

(375)

1,500

Repair and maintenance

250

63

(63)

250

Utilities

3,200

800

64

(736)

3,136

Health and Safety

-

-

-

Insurance

2,000

500

-

(500)

2,000

Depreciation

18,000

4,500

2,984

(1,516)

15,016

-

-

-

Premises total

24,950

6,238

3,049

(3,189)

21,901

Administration Stationery, Postage Courier & delivery cost Telephone & mobile IT, website, maintainence

5,500

1,375

1,684

309

3,816

-

-

-

5,000 6,000 1,500

1,250 1,500

1,263 2,437

13

3,737 3,563

937 376

Printing & Copying Office relocation

375

751

749

- -

-

- -

Administration total

18,000

4,500

6,134

1,634

11,866

Management fees Trustees Expenses

3,000 8,000 2,000

750

365

(385)

2,635 8,000 2,000 8,334 5,000 2,000

Conference expenses (BGCM/EC) Conference expenses (other)/Speakers

2,000

(2,000)

500

-

(500) (834)

Accountancy and audit

10,000

2,500 1,250

1,666

Legal & Profession DDA Compliance

5,000 2,000

-

(1,250)

500

(500)

Investment management fee Management fees total

-

-

-

30,000

7,500

2,031

(5,469)

27,969

Programme and Event Gift Aid Payment/Grants

5,000 8,000

1,250 2,000

-

(1,250)

5,000 6,833

Affiliations, Donations, Subscriptions, Communications & Campaigning

1,167

(833)

-

-

-

-

Advertising and promotion

2,500

625

2,002

1,377

498

Room hire

-

- -

-

-

Publicity leaflets

7,000 2,500 1,250

1,750

(1,750)

7,000 2,362 1,250

Educational officers' meeting

625 313

139

(487) (313)

Tutors' meeting

International Study Visit

35,000

8,750 1,750

-

(8,750) (1,610)

35,000

Youth Festival History Festival

7,000

140

6,860

-

-

-

Arts & Cultural Festival

10,000

2,500

- -

(2,500)

10,000

ESNA Visist Other events

-

-

-

10,000

2,500

595

(1,905)

9,405 3,000 8,000

Open College Network Panel Fees+Membership

3,000 8,000

750

(750)

Workable books

2,000

(2,000)

Trade Union Management Programme

- - -

- -

- -

Links with Universities

-

Core Course -Student hotel & Travel

5,058 5,100

5,058 2,600

(5,058)

4,900 Northen College Invoices

Core Course - Tutor Fees

10,000

2,500 1,250 2,000

Core Course - Tutor Travel & Sub

5,000 8,000

201

(1,049) (2,000)

4,799 8,000

Core Course- Resource, books, printing, certificates Customised Course -Student hotel & Travel

-

-

3,533 1,250

3,533

(3,533)

Customised Course- Tutor fees

2,000 5,000 2,000

500

750

750

Customised Course- Tutor Travel and sub

1,250

223

(1,027)

4,777

Customised Course- Resource, books, printing, cert.

500

9,609

9,109

(7,609)

Bank charges Miscellaneous

200 500

50

132 824

82

68

125

699

(324)

-

-

-

Programme and Event total

131,950

32,988

29,972

(3,016)

101,978