GOLDSMITHS STUDENTS' UNION

Transcription

1 CNCL/ GOLDSMITHS STUDENTS' UNION FINANCIAL STATEMENTS

2 CONTENTS Page Trustee Board and Union Information 1 Trustees' report 1-6 Statement of Trustees' responsibilities 7 Auditors' report 8-9 Balance sheet 11 Notes to the financial statements Income and Expenditure Account 10

3 UNION INFORMATION CHIEF EXECUTIVE Graham Gaskell REGISTERED OFFICE Dixon Road New Cross London SE14 6NW AUDITOR Crowe Clark Whitehill LLP Blagrave Street Reading Berkshire RG1 1PL TRUSTEE BOARD / Bindz Patel - President James Hayward - Campaigns and communications officer Francesca Bancarino - Welfare and Education Officer Manoj Kerai - Activities and Services Officer Alexandra Thorne - Student Trustee Amy Pidwill - Student Trustee Charlotte Eve - Student Trustee Marc McCormick - Student Trustee Paul Collier - External Trustee & Honorary Treasurer Justine Stephens - External Trustee Sharon Wagstaff - External Trustee (Resigned June ) Tom Philpott (Appointed February ) 2009/ Jesse Fajemisin - President Bindz Patel - Welfare and Education Officer Rheem Al-Adhami - Student Activities Officer (resigned 26 March ) Jennifer Jones - Campaigns and Communications Officer (resigned- -30 November 2009) Ruth Bibby - Student Trustee Emily Harthern - Student Trustee Katherine Daish - Student Trustee Sian Lapwood - Student Trustee Justine Stephens (External Trustee) Paul Collier (External trustee & Honorary Treasurer) Page 1

4 TRUSTEES' REPORT Trustees' Report The Students Union is pleased to present our Financial Statements for -11, a year that saw significant changes across the Students Union. The Union had an extremely successful year in -11. We were victorious in our most important Goldsmiths campaign, to prevent the closure of the College nursery, something which looked almost inevitable a year ago. Financially we generated a surplus of over 59,000, significantly higher than we d planned. And we persuaded the College to make changes based on evidence-based representation (such as the introduction of an International Rent Guarantee scheme) as well as seeing continued success and growth for our sports teams. GSU has now generated surpluses in seven of the last eight years and our reserves have grown significantly during this time. However, we recognise that conditions for our commercial services will remain challenging and that the Union needs to continue to build its reserves to levels capable of dealing with an unexpected problem or further downturns in trading turnover, particularly given the fact we are now running the nursery. We are still hugely dependant on the College for our grant funding and at a time when all Higher Education institutions will be making cutbacks it s important we continue to diversify our income streams, generate more of our own funds from fundraising and marketing and seek to find efficiencies in all that we do. Income Despite a small reduction in funding from the College, our overall income increased by 8% (51,814). This was largely due to the improvement in our trading, and in particular in the performance of the entertainments. Bar and entertainments The SU bar experienced yet another sharp decline in turnover; this has now fallen from 318,764 in 2006/7 to 207,642 in /11. This was larger than we had projected and was compounded by the profit margin achieved being below the rate we budgeted for. However, cutbacks in our running costs in areas such as security reduced the impact somewhat and while the deficit on the bar of 6,592 is disappointing, it at least it represents an improvement on the deficit of 12,499 recorded the year before. The excellent practices in the bar were recognised by our achieving Gold in the Best Bar None scheme. One of the success stories of last year was the performance of our entertainments. After a number of years of significant deficits (including one of 51,840 last year) we finally managed to make a surplus overall. This was partly due to a small reduction in the number of events, but also the result of very careful management and the constant search for efficiencies in this area. Shop -11 was a poor year for the SU shop, with sales falling back by 8% to 360,979. This was the first year sales have declined after consistent growth of around 10% a year since However, the opportunity provided by a restructure of staffing led to a reduction in salary costs in the second half of the year and the fact that the refurbishment costs are now fully depreciated meant the shop generated 12,196 in net profit. The shop provides essential arts materials for students and over 180,000 customers were served over the course of the year. Growth in competition from the café in the NAB and the soon-to-open local Sainsbury s will undoubtedly make it harder to attract more customers but we believe there are opportunities in growing on-line sales of memorabilia to alumni. Page 2

5 TRUSTEES' REPORT Expenditure Expenditure overall fell back slightly, with a significant reduction in the costs associated with our Central Services (such as expenditure on legal costs and recruitment) but with a growth of over 10% on Representation, which is of course at the heart of the Union s mission. Clubs, societies and student activities Participation in our sports clubs has continued to increase, with the number of members of our sports teams growing from 386 in to 564 in and reaching 632 last year. Society members fell back from 2,478 in to 2,060 last year, in large part due to the demise of the popular Bass Society. Balance Sheet The Union spent just 3,726 on investment in tangible fixed assets in -11, but significant investment has taken place over the late summer which will show in the -12 accounts. Overall depreciation meant that the value of the Union s tangible fixed assets fell from 49,512 to 30,698 and the state of the building means that further capital investment will be required very soon. We have managed to reduce the levels of stock of stock we hold, and cash balances increased significantly, so that the Students Union s capital and reserves now stand at 282,035. Reserves The Finance Committee have set a reserves policy which aims to generate reserves equivalent to six months running costs for the Union s commercial services within the medium term. While we are still some way off this - at current levels it would require reserves of roughly 360,000 it s clear that important progress has been made when one considers that the Union s net current assets have risen from 76,222 in 2007 to 251,277 this year. Some key achievements in -11 The campaign to persuade the College to keep the College nursery open was successful and was recognized by NUS as runner up in the campaign of the year category at the NUS Annual awards. A huge turnout from Goldsmiths students at the November demonstration against higher fees. Another increase in the number of students participating in sports clubs and victory (again) in the annual Varsity competition against the University of the Arts. Gold in Sound Impact Awards, which recognises environmentally friendly unions. Gold in the Best Bar None awards. On-line elections run for the first time ever, an increase in turnout and no complaints raised by candidates. Reviewed our staff handbook and conducted a job evaluation on all permanent jobs. Page 3

6 TRUSTEES' REPORT Membership figures (taken from the Higher Education Statistics Agency for 2009/10, the most recent year that figures are available for) Student numbers Total 8,160 Undergraduate 5,510 (of which 4905 are studying FT, 605 are PT) Postgraduate 2,460 (1,595 FT, 865 PT) Further education 185 (70 FT, 115 PT) International Students EU Students 725 (360 Postgraduate, 365 Undergraduate) Non EU Students 720 (535 PG, 375 UG) Total of 1,635 out of 8,160 Students 20% of total student numbers are international Looking to the future -12 will see the Students Union registering with the Charities Commission. We are very aware that the SU Building has suffered from years of under-investment and are planning a number of improvements in the short term, alongside a thorough review into the long term needs of the organisation and possibilities for refurbishment. As a Students Union we believe our future lies in the effective representation of all our members, we continue to focus on the development of diverse services and projects that offer significant opportunities to our members and ultimately have a positive and measurable impact on their lives. The current strategic plan outlines a series of projects and initiatives designed to meet the challenges facing Goldsmiths Students Union. Four strategic themes are common to these initiatives: Strategic Theme One - Financial sustainability This is a critical area. Without ensuring our financial sustainability we will have to cut services, activities and staff. In some instances, in other students unions around the country, this has led to bankruptcy (Aberdeen) or resulted in the College or University taking over part of their students union (Queen Mary and Portsmouth) or all of their students union (London Met). Strategic Theme Two Delivering diverse opportunities The Students Union believes there is no single Student Experience, but many student experiences. The Union has the capacity to have significant impact on the lives of students through the delivery of diverse opportunities, enabling our students to make the most of their time at Goldsmiths. We believe we are able to do this by placing equality and diversity at the heart of organisation s culture and activity. Page 4

7 TRUSTEES' REPORT Strategic Theme Three Representing students effectively Our mission stipulates that representation is at the heart of all that we do. If we are not representing all students effectively then we simply will not be fulfilling our raison d etre. This is especially important at a time when students will be expecting more of their College and will need mechanisms to channel their criticisms. This is particularly true of under-represented and minority groups. Strategic Theme Four Professional, ethical services We operate in a competitive environment where students enter into higher education with increasingly higher expectations. For the Union to remain sustainable it must deliver excellent services across the organisation that measurably impact on students lives. Our belief in collectivism ensures we embrace our responsibilities beyond the walls of Goldsmiths. The Union believes that the pursuit of ethical and environmental excellence throughout the organisation and active lobbying for it beyond we will ensure meet our responsibilities and become a sustainable organisation. Key Performance Indicators (KPIs) Our key performance indicators are those areas that are critical to our success as an organisation and, as such, these will be constantly monitored. Our key performance indicators are: Increasing participation and involvement Election Turnout (%) and no. of candidates. No. of students involved in clubs, societies, volunteering, media. No. of NUS Extra cards sold. Being effective campaigners and representatives Campaigning objectives are achieved. Students recognise campaigns made a difference to their lives. Number of students seen through our advice centre. High levels of Membership Satisfaction Students see the Students Union as having made a positive difference to their lives. Achieving our financial targets Generating surpluses. The targets for these areas are detailed in the strategic plan. Projects for /12 The most significant projects for the Union in /12 are: Developing a new Strategic Plan. A new website for the Union and greatly improved levels of engagement with our members. Fighting cuts in Higher Education and against higher tuition fees. Agreeing a revised Memorandum of Understanding with the College and registering with the Charity Commission. Work towards Silver accreditation under the Students Union Evaluation Initiative. Working to achieve another Gold in the Sound Impact Awards. Establishing workplace representation for students in part-time employment through the GMB partnership Page 5

8 TRUSTEES' REPORT We will also aim to achieve the targets in Union-led campaigns for /12, which are broadly grouped around: Union ethos: Promoting Union policy, supporting campaigns linked to our beliefs and values and having a zero tolerance approach to sexual harassment. Goldsmiths not for profit: Making sure Goldsmiths College does not outsource student services or academic courses to private companies and defending the integrity of education at Goldsmiths from damaging cuts. Support our students: Lobbying the College to provide funding for the development of our advice service. Increase the number of student volunteers in particular with our two main projects: Open Book and the Safety Night Bus. Our successes last year were a result of the hard work and commitment of union staff, officers and volunteers, but I must finish with a special mention of last years President, Bindz Patel, who provided exceptional leadership. James Haywood President -12 RESULTS The profit for the year, after taxation, amounted to 59,465 ( - 2,202). PRESIDENT The president who served during the year was: Bindz Patel PROVISION OF INFORMATION TO AUDITOR Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:! so far as that Trustee is aware, there is no relevant audit information of which the Union's auditor is unaware, and! that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the Union's auditor in connection with preparing its report and to establish that the Union's auditor is aware of that information. AUDITOR The auditor, Crowe Clark Whitehill LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act This report was approved by the board on and signed on its behalf. James Hayward President Page 6

9 STATEMENT OF TRUSTEES' RESPONSIBILITIES Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Union and of the surplus or deficit for that year. In preparing the financial statements the Trustees are required to select suitable accounting policies, as described below, and then apply them on a consistent basis, making judgments and estimates that are prudent and reasonable. The Trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Union will continue to operate. The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the Union. It is also responsible for safeguarding the assets of the Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Risk Management The Trustees have undertaken to examine the major risks that the Union faces. That review is an integral part of the annual planning cycle. The Union has, and continues to develop, systems to monitor and control these risks in order to mitigate any impact that they have on the Union and its operations. The Trustees are responsible for preparing the Trustees' Report and the Financial Statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare for each financial year. Under that law the Trustees have elected to prepare the in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees 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, the Trustees are required to:! select suitable accounting policies and then apply them consistently;! make judgments and 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 Trustees 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 comply with the Companies Act The Trustees 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. Page 7

10 INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GOLDSMITHS STUDENTS' UNION We have audited the financial statements of Goldsmiths Students' Union, set out on pages 9 to 19. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Union's members as a body. Our audit work has been undertaken so that we might state to the Union's members those matters 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 Union and the Union's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Trustees' and auditors The trustees responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Trustees' Responsibilities. We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act We also report to you if, in our opinion, the information given in the Trustees Annual Report is not consistent with those financial statements, if the charity has not kept sufficient accounting records, or if we have not received all the information and explanations we require for our audit. We read the Trustees Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it. BASIS OF AUDIT OPINION We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) 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 includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity'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. Page 8

11 INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GOLDSMITHS STUDENTS' UNION OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements:! give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of affairs of the charity as at 31 July and of its incoming resources and application of resources, for the year then ended; and! have been properly prepared in accordance with the Charities Act CROWE CLARK WHITEHILL LLP Statutory Auditor Reading Page 9

12 INCOME & EXPENDITURE ACCOUNT Note INCOME Grants receivable 2 605, ,679 Net trading result 3 13,389 (53,087) Sundry income 4 10,917 10,804 Investment income , ,537 EXPENDITURE Representation 6 322, ,090 Central services 7 115, ,411 Clubs and societies 8 64,068 60,728 Building costs 9 49,248 53,184 Student activities 10 2,453 11, , ,335 SURPLUS FOR THE YEAR BEFORE ALLOCATION TO FUNDS 76,810 2,202 TRANSFERS Transfer to development reserve (17,345) - SURPLUS FOR THE YEAR TO INCOME AND EXPENDITURE ACCOUNT 59,465 2,202 The notes on pages 11 to 19 form part of these financial statements. Page 10

13 BALANCE SHEET as at 31 July Note FIXED ASSETS Tangible fixed assets 12 30,698 49,452 Fixed asset investments ,758 49,512 CURRENT ASSETS Stocks 14 48,443 54,923 Debtors 15 39,070 48,142 Cash at bank 234, , , ,598 CREDITORS: amounts falling due within one year 16 (71,014) (58,885) NET CURRENT ASSETS 251, ,713 TOTAL ASSETS LESS CURRENT LIABILITIES 282, ,225 CAPITAL AND RESERVES - - Development reserve 17 17,345 - Income and expenditure account , ,225 FUNDS 282, ,225 The financial statements were approved and authorised for issue by the board and were signed on its behalf on G Gaskell Chief Executive James Hayward President The notes on 11 to 19 form part of these financial statements. Page 11

14 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES 1.1 Basis of accounting The financial statements have been prepared under the historical cost convention. The Trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. This is on the basis they continue to obtain support from the College. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements. 1.2 Cash flow statement The Trustee Board has taken advantage of the exemption in Financial Reporting Standard No 1 from including a cash flow statement in the financial statements. 1.3 Turnover Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. 1.4 Depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Bar extension & Entertainment % straight line Union Bar - 25% straight line Shop refurbishment - 25% straight line Union equipment % straight line 1.5 Operating leases Rentals under operating leases are charged on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. 1.6 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 1.7 Pensions Since February 2009, the Union has participated in the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P). The liabilities are valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuary, based on the latest actuarial valuation of the scheme, and are accounted for on the basis of charging the cost of providing pensions over the period during the institution benefits from the employees' services. Page 12

15 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES (continued) 1.8 Accounting by charities - Statement of Recommended Practice (SORP) As a result of its exempt charitable status the Union is not required to adopt the SORP in the presentation of the Financial Statements. However, in accordance with the establishment of best practice, where appropriate the Union will make disclosures in accordance with the broader principles of the SORP. 1.9 Taxation No provision is made in these accounts for corporation tax as the Union is exempt from such taxes as a result of having derived its charitable status from its parent governing body, Goldsmiths College. 2. GRANTS RECEIVABLE Block Grant 605, , NET TRADING INCOME Turnover Surplus / (Deficit) Turnover Surplus / (Deficit) Retail operations 570,301 5, ,506 9,909 Other trading activities 101,166 7,785 83,477 (62,996) 671,467 13, ,983 (53,087) 4. SUNDRY INCOME Other income Sponsorship Smiths 311 1,272 Pension income 9,881 8,785 10,917 10,804 Pension income represents pension costs paid for on behalf of Goldsmiths College. Page 13

16 NOTES TO THE FINANCIAL STATEMENTS 5. INVESTMENT INCOME Bank deposit interest NUSSL Deposit interest REPRESENTATION Conference fees and expenses 15,227 10,284 Elections 3,755 1,735 Trustee Board expenses NUS affiliation fee 31,191 25,916 Wages and salaries 190, ,355 Bad debts (54) (170) Welfare 1,007 2,928 Diversity support - 1,833 Pension 9,881 8,786 Course Rep scheme 16,545 25,988 Other affiliation fees 42,602 43,124 Campaigns 4,369 5,989 Additional projects 7,691 2, , ,090 Page 14

17 NOTES TO THE FINANCIAL STATEMENTS 7. CENTRAL SERVICES Administration Costs Audit and accountancy 9,500 8,500 Bad debts 1,569 (1,679) Bank charges 1,689 2,407 Depreciation 3,282 5,709 Insurance 19,453 17,830 Legal ,068 Salaries and wages 64,847 77,991 Staff expenses 1,832 2,116 Staff recruitment 643 6,889 Stationery, photocopying, publications and postage 1,274 3,717 Telephone 5,472 8,933 Training 4,862 9,818 Loss on disposal of fixed assets - 1, , ,411 Page 15

18 NOTES TO THE FINANCIAL STATEMENTS 8. CLUBS AND SOCIETIES Sports Clubs income Fitness gym income (31,061) (28,717) Annual membership fees (6,458) (5,582) External Venue Hire (9,013) (10,133) (46,532) (44,432) Sports Clubs Expense Affiliations 3,448 3,725 Bad debts Varsity Salaries and wages 38,161 34,024 Transport (including Minibus) 1,524 1,696 AU Dinner Club activities 19,986 20,107 Sports administration ,674 60,794 Societies Expense Volunteering projects expenditure Diversity support Bad debts Grants 5,029 2,658 Membership expenditure 800 9,382 Salaries and wages 38,010 32,270 44,926 44,366 64,068 60,728 Page 16

19 NOTES TO THE FINANCIAL STATEMENTS 9. BUILDING COSTS Maintenance and repair of premises 7,692 12,497 Salaries and wages 18,215 16,711 Cleaning 20,792 23,976 Society developments Depreciation 3,339 - Common room income (1,450) - 49,248 53, STUDENT ACTIVITIES Induction and enrolment project 994 6,569 Made in Goldsmiths 1,459 4,881 Student development ,453 11, STAFF SALARIES AND WAGES Gross salaries 572, ,522 Pension contributions 9,881 8,785 Total 582, ,307 Page 17

20 NOTES TO THE FINANCIAL STATEMENTS 12. TANGIBLE FIXED ASSETS Bar extension Union bar Shop refurbishment and Union equipment Entertainment Total COST At 1 August 599,744 66, ,093 67, ,689 Additions - - 3,726-3,726 At 31 July 599,744 66, ,819 67, ,415 DEPRECIATION At 1 August 599,744 56, ,885 47, ,237 Charge for the year - 5,968 6,921 9,591 22,480 At 31 July 599,744 62, ,806 57, ,717 NET BOOK VALUE At 31 July - 3,720 17,013 9,965 30,698 At 31 July - 9,688 20,208 19,556 49, INVESTMENTS COST: At 1 August and 31 July 60 NET BOOK VALUE: At 31 July 60 At 31 July 60 At 31 July the Union held investments in the following companies which are incorporated in the United Kingdom. Name of Company Main Trading Activity Equity Held NUS Services Limited Purchasing Services A Shares 0.36% B Shares 0.00% Page 18

21 NOTES TO THE FINANCIAL STATEMENTS 14. STOCKS Bar and shop 48,443 54, DEBTORS Trade debtors 4,538 13,382 Other debtors 9,645 18,892 Prepayments and accrued income 24,887 15,868 39,070 48, CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors 23,237 21,447 Social security and other taxes 9,981 8,184 Other creditors 22 5,260 Accruals and deferred income 37,774 23,994 71,014 58, RESERVES Develop - ment reserve Transfer to reserves in year 17,345 At 31 July 17,345 Page 19

22 NOTES TO THE FINANCIAL STATEMENTS 18. RELATED PARTY TRANSACTIONS The Union is an exempt charity for the purposes of the Charities Act 1993 deriving charitable status from its governing parent body, the Goldsmiths College. The Union is in receipt of a recurrent grant from the parent body of 605,830 (: 620,679). The amount due from Goldsmiths College at the year end was 5,941 (: 18,869). In addition the Union occupies its building on a rent free basis under an informal license subject to the union maintaining the building in a good state of repair. The Sabbaticals of the Union are the members of the Trustee Board and receive remuneration for their services as provided for within the Constitution. The aggregate amount payable under such contracts in the year was 94,124 (: 80,082). The total board expenses paid during the year to the Trustees was 58 (: 11) and reimbursed travel expenditure amounted to 1,531 (: 403). 19. INCOME AND EXPENDITURE ACCOUNT At 1 August 205, ,023 Retained surplus for the financial year 59,465 2,202 At 31 July 264, , CAPITAL COMMITMENTS At 31 July the company had capital commitments as follows: Contracted for but not provided in these financial statements 11, OPERATING LEASE COMMITMENTS At 31 July the company had annual commitments under non-cancellable operating leases as follows: Land and buildings Other EXPIRY DATE: Within 1 year - - 1,673 1,673 Page 20

23 NOTES TO THE FINANCIAL STATEMENTS 22. AFFILIATIONS NUS 31,191 25,916 BUCS / BUSA 1,865 1,605 Jitsu Foundation NCVO ULU 43,056 43,124 Sports PENSION SCHEME The Union is a participating employer of the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension Scheme (S2P). The assets of the scheme are held in a separate trustee-administered fund. It is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme. The cost recognised within the surplus/deficit for the year in the income and expenditure account being equal to the contributions payable to the scheme in the year. The latest actuarial valuation of the scheme was at 31 March The assumptions which have the most significant effect on the result of the valuation are those relating to the rate of return on investments (i.e. the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the past service liabilities the financial assumptions were derived from market yields prevailing at the valuation date. It was assumed that the valuation date of interest would be 6.4% per annum, salary increases would be 4.3% per annum and pensions would increase by 3.3% per annum. In relation to the future service liabilities it was assumed that the valuation rate of interest would be 6.1%, salary increases would be 4.3% per annum and pensions would increase by 3.3% per annum. The valuation was carried out using the projected unit method. At the valuation date, the market value of the assets of the scheme was 28,842.6M. The assets were sufficient to cover 103% of the benefits which had accrued to members after allowing for expected future increases in earnings. The institution contribution rate required for future service benefits alone at the date of the valuation was 16% of salaries. Surpluses or deficits which arise at future valuations may impact on the future contribution commitment. The next formal actuarial valuation is due as at 31 March when the above rates will be reviewed. The total pension cost for the Union was 9,881 ( - 8,785). 24. CONTROLLING PARTY The Union is controlled by the Trustee Board, which is subject to democratic election by the voting membership of the Union. Under the constitution, the ultimate control of the Union is vested in the membership in General meeting. As such no single person or entity controls the Union as defined by Financial Reporting Standard 8. Page 21

24 NOTES TO THE FINANCIAL STATEMENTS The following pages do not form part of the audited financial statements which are the subject of the auditors' report on page 8. Information is provided for the use of the executive committee and senior management team of Union of Goldsmiths Students' Union. PAGE Net trading income - summary 23 Union Bar 24 Union Shop 25 Entertainments 26 Other trading 27 Page 22

25 NOTES TO THE FINANCIAL STATEMENTS TRADING OUTLET Turnover Surplus/ (deficit) Turnover Surplus/ (deficit) Union bar 207,642 (6,592) 247,145 (12,498) Union shop 362,659 12, ,361 22,407 Entertainments 103,539 25,205 72,916 (51,839) Other 14,972 (17,418) 10,561 (11,157) 688,812 13, ,983 (53,087) SUMMARY OF FUNCTIONS Bars 207,642 (6,592) 247,145 (12,498) Shops 362,659 12, ,361 22,407 Other 101,166 7,787 83,477 (62,996) Total 671,467 13, ,983 (53,087) Page 23

26 DETAILED TRADING ACCOUNTS - UNION BAR SALES Sales 207, ,145 COST OF SALES Opening stock 11,020 9,041 Purchases 76,535 96,358 Closing stock (7,026) (11,020) 80,529 94,379 Retrospective discount 3,131 4,966 OPERATING EXPENSES Bad debts (105) - Consumables 2,474 4,460 Credit card charges 1,871 1,650 Depreciation 5,968 5,733 Repairs and maintenance 5,265 5,587 Security 25,253 33,874 Stocktaking fees 1,400 2,550 Student staff 42,463 57,644 Sundry expenses 1, Travel expenses and staff uniforms 4,079 9,901 Wages and salaries 42,271 46,938 Gases 1,768 1,062 Staff training 2, , ,231 NET (DEFICIT) (6,592) (12,499) Page 24

27 DETAILED TRADING ACCOUNTS - UNION SHOP TURNOVER Sales 360, ,655 Pay for display 1,680 1, , ,361 COST OF SALES Opening stock 43,903 32,421 Purchases 252, ,897 Closing stock (41,418) (43,903) 255, ,415 OPERATING EXPENSES Depreciation ,905 Student staff 27,027 23,280 Sundry expenses Wages and salaries 61,037 62,478 Repairs and renewals 2, Travel expenses 927 2,200 Bank charges 2,198 1,650 Uniform Bad debts - (1,432) 95, ,539 NET SURPLUS 12,194 22,407 Page 25

28 DETAILED TRADING ACCOUNT - ENTERTAINMENTS INCOME Sales 17,345 - Bands and disco tickets 54,340 52,763 Space and hall hire 25,147 21,268 Sundry income 6,707 (1,115) 103,539 72,916 COST OF SALES Groups, bands, disc jockeys and other entertainment 22,480 31,056 Summer ball expenditure - 7,532 22,480 38,588 OPERATING EXPENSES Depreciation 9,591 12,311 PPL Licence 2, Posters, printing and advertising 1,110 - Security 8,990 14,637 Student staff 3,692 9,957 Sundry expenses 1,125 1,159 Wages and salaries 24,318 41,370 Repairs and Maintenance 5,042 6,078 Bad debts (994) - 55,854 86,168 NET SURPLUS/(DEFICIT) 25,205 (51,840) Page 26

29 DETAILED TRADING ACCOUNTS - OTHER TRADING TURNOVER Sales 1,559 1,497 NUS extra 3,746 2,046 Freshers Fair 9,667 7,018 14,972 10,561 OPERATING EXPENSES Fresher's Fair expenditure 6,008 4,707 Fresher's printing costs Communications and PR Marketing and advertising 4,146 6,375 Salaries 22,059 10,026 32,390 21,718 NET (DEFICIT) (17,418) (11,157) Page 27