EC Meeting Papers July 2018

GENERAL FEDERATION OF TRADE UNIONS EDUCATIONAL TRUST

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

16.

Movement in funds

Group Investment

The Trustees consider the capital element of the exceptional Gift Aid received in 2005 amounting to £3,000,000 should be treated as a restricted fund on the grounds that whilst the income from this capital fund can be used in accordance with charitable objectives set out in the trust deed, the capital fund itself cannot be expended. Accordingly the Statement of Financial Activities on page 9 has been presented to separately disclose the restricted funds is made each year to maintain the capital element of the 2005 exceptional Gift Aid at its market value. During 2012 the Trust disposed of its managed investments portfolio and used the realised proceeds to purchase a hotel property and a limited company to operate the hotel business. As such, the income and expenditure from the hotel trading activities, and any realised or unrealised gain/(loss) on revaluation is treated as restricted funds in the Consolidated Statement of Financial Activities. During 2014 a training company was incorporated as a subsidiary of the hotel trading company and, as such, the income and expenditure from the training company trading activities is treated in the same manner.

Group

At 1 January 2017

Net movement in funds

Transfers between funds

At 31 December 2017

£

£

£

£

Unrestricted funds General reserve fund

(1,059,958)

(181,866)

-

(1,241,824)

Restricted funds Restricted reserve fund - investment

2,207,043

(236,603)

-

1,970,440

TOTAL FUNDS

1,147,085

(418,469)

-

728,616

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds General reserve fund

102,713

(284,579)

(181,866)

Restricted funds Restricted reserve fund - investment

1,707,559

(1,944,162)

(236,603)

TOTAL FUNDS

1,810,272

(2,228,741)

(418,469)

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