UNIVERSITY OF LEICESTER STUDENTS' UNION

Transcription

1 Registered number: Charity number: TRUSTEES' REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and administrative details of the charity, its trustees and advisers 1-2 Trustees' report 3-8 Independent auditor's report 9-10 Consolidated statement of financial activities 11 Consolidated balance sheet 12 Company balance sheet 13 Notes to the financial statements 14-29

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS Trustees K Julian, External Trustee N Reed, External Trustee H Hunt, External Trustee A Shakespeare, External Trustee (resigned 7 July 2014) R Holland, President* A Hamilton, Student Development Officer* A Mitchell, Engagement Officer* L Patrick, Education Officer* R Gallagher, Wellbeing Officer* J Gillott, Student Trustee* M Rubin, President** J Appleyard, Experience Officer** S Kelly-Walsh, Engagement Officer** Y Nikolov, Education Officer** V Nguhi, Student Trustee** * Full time Officers elected to hold office from 29 June 2015 until 1 July 2016 (** 1 July 2014 until 26 June 2015) Company registered number Charity registered number Registered office Percy Gee Building University Road Leicester LE1 7RH Company secretary T Page Chief executive officer T Page Independent auditor Crowe Clark Whitehill LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS Administrative details (continued) Bankers National Westminster Bank Plc Granby Street Leicester LE1 9GT Page 2

5 TRUSTEES' REPORT The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of University of Leicester Students' Union (ULSU) (the company) for the year ended 31 July The Trustees confirm that the Annual report and financial statements of the company and the group comply with the current statutory requirements, the requirements of the company and the group's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March Structure, governance and management a. CONSTITUTION The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. The company and the group is constituted under a Memorandum of Association and is a registered charity number ULSU also has internal regulations or Rules approved by the Board of Trustees and regulated by the governing body of the University of Leicester (the University) in accordance with the 1994 Education Act and the Charity Commission. ULSU s charitable Objects are: The advancement of education of Students at the University for the public benefit by: promoting the interests and welfare of Students at the University during their course of study and representing, supporting and advising Students; being the recognised representative channel between Students and the University and any other external bodies; and providing social, cultural, sporting and recreational activities, and forums for discussions and debate for the personal development of its Students. b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES ULSU is administered by its Board of Trustees of up to five students elected annually by cross campus secret ballot of the ULSU membership (and are full time, or sabbatical, posts remunerated as authorised by the Education Acts and cannot exceed two years duration for each holder); up to five external trustees appointed for up to four years by an appointments panel, and a student that is appointed by the appointments panel, and has no employment in any capacity with the Union. c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES All the charity trustees receive an induction into their legal and administrative responsibilities, with an on-going training programme as and when needed for issues arising during their term of office. Page 3

6 TRUSTEES' REPORT (continued) d. ORGANISATIONAL STRUCTURE AND DECISION MAKING The Board of Trustees, assisted by sub committees where appropriate, has delegated the day to day running of ULSU to a Chief Executive. The Board of Trustees meets at least four times a year to receive reports from individual Officers, sub committees and the Chief Executive, to review the charity s performance and administration generally and to decide policy issues arising. A Board sub committee, the Operations Board, made up of the Unions Managers, meets monthly to oversee the Unions regular activities. ULSU also employs a number of non student full time staff for the sake of continuity in the management of its many activities. These staff members are accountable to the Chief Executive for the performance of their duties. e. RELATIONSHIP WITH UNIVERSITY OF LEICESTER The relationship between the University and ULSU is established in the Regulations of the University and detailed in ULSU Rules approved by both organisations. ULSU receives a Block Grant from the University, and leases most of the Percy Gee Building owned by the University, which also pays for utilities. This non monetary support is intrinsic to the relationship between the University and ULSU. An estimated value to ULSU for this free serviced accommodation has been included in the accounts, valued at 300,000. Although ULSU continues to generate supplementary funding from various trading activities, it is dependent on the University s support. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body. f. RISK MANAGEMENT The Board of Trustees continually examine the major strategic, business and operational risks faced by ULSU and confirms that systems are in place to manage those risks, including annual reviews by the Board. Objectives and Activities a. POLICIES AND OBJECTIVES The Board of Trustees has focused its current activities on developing an exceptional student experience, in line with its constitutional objectives. The Union has adopted a new vision An innovative Union that empowers students to deliver change. In pursuit of these objectives, ULSU has established departments and services for use by its members and to support its work with the University and other organisations on behalf of students. These include a live music venue, bars, various retail operations, food and coffee outlets, a Student Voice campaigning and representation function, an Education advice service and support for student volunteers and group leaders.. Officer Trustees of ULSU sit on every University committee and meet regularly with the Local Authority, and other providers of public services affecting students. ULSU s commitment to its members includes volunteer development opportunities for nearly 3,000 students in activities ranging from competitive sports to student academic representation within the various Colleges of the University. This year saw the development of a new membership services team with training and personal development at the heart of its work to empower students to run their own groups and projects. In setting our objectives and planning our activities the Trustees have given careful consideration to the Charity Page 4

7 TRUSTEES' REPORT (continued) Commission's general guidance on public benefit. Achievements and performance a. GOING CONCERN After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. b. REVIEW OF ACTIVITIES The Union operates around three strategic areas of activity: Student Voice Student Support Student Life Student Voice Much of the ULSU's main focus is centred around representation and campaigns to improve the educational experience at the University. This is conducted via a large number of elected representatives. They are trained and supported by a staff team in our new membership services hub. The representative function is headed by the four Student Officer Trustees, that are employed full-time to carry out their functions. It was agreed in this year to increase the number of officers to five. Issues addressed this year included: Increased focus on campaigning, particularly the voter registration campaign. Continued focus on the training and development of course representatives. A continued focus on employability and skills development. There was an increase in uptake and completion of the Leicester Award for Employability and new developmental master classes were introduced. Objectives for the year ahead Plans for the coming year include: Developing greater awareness of the issues facing minority groups such as black, gay, female and disabled students and run appropriate campaigns and links to faith groups. Successfully extending the Green Project around healthy food. Expand the capacity of the Zero Tolerance campaign into the city. A large priority campaign on Postgraduate funding in the UK. A campaign to achieve best value for students from the Univeristy sports memberhship. Running a pilot for a university wide peer mentoring scheme. A new community engagement project drawing students closer to their neighbours. Student Support As always, the year has been very busy for the Unions support services. There have been more appeals and more complex casework. The relative lack of resources and the increasing demand for the service, together with a need and desire to extend its reach to those students in most need lead to a re-evaluation of the model of service delivery. This has involved developing a peer-to-peer process for students requiring advice and support. Page 5

8 TRUSTEES' REPORT (continued) Objectives for the year ahead: An aspiration to work with at least 750 students with their appeals. Developing a new students advisor team empowered to help their colleagues. Student Life The Union endeavours to enhance the overall experience of being a student in Leicester. This includes the provision of over 190 student societies, sports both competitive and recreational, media opportunities such as a radio station, and a newspaper. The Union gives grants totalling over 140,000 to student groups to support their work. Campaigns have been conducted to draw attention to the overall experience of being a student parent and events have been held to support them including a tea and toys session. We continue to work with the University on the very successful International Students Welcome Week immediately preceding the main Fresher s Week which helps enhance the International Student experience. The year culminated in a hugely popular University of Leicester Student Awards evening which was run in collaboration with the Career Development Service. Over 300 students came to this black tie meal hosted with the Vice Chancellor. We also had a very successful final event of the year; the summer social weekender; a whole weekend of entertainment for students. Fresher s Week was a huge success and over 10,000 students visited the Fair of student groups and commercial sponsors in the first two days of the week. New activities included: Give it a go which gave students the opportunity to try new activities, also A taste of Leicestershire which gave an opportunity for local businesses to display their services to students. The Union also operates a large music venue in partnership with the Academy Music Group; a retail operation and a range of catering outlets including a Starbucks franchise, a full-service restaurant and a value common room. The partnerships with AMG and Starbucks were renegotiated and renewed this year. Objectives for the year ahead Expanding the quality outcomes model of student funding to focus on the development of an integrated student life programme. This has been extended to participation grants to widen access for students from a low socio-economic background. Expanding the student focussed live music. A focus upon membership development. Working in a more collaborative venture with the University to develop a cross-campus commercial and social strategy. The Union is also engaging in developing a new strategy for the next period of its development with research into members needs and wants, as well as an in depth analysis of the threats in the future. Developing new and exciting ways of engaging in student opinions, particularly as customers by establishing student Boards for the commercial activities. Financial review ULSU s gross income from all sources this year totalled 5,017,848. Total expenditure was 5,013,263 resulting in a surplus for the year of 4,585, increasing ULSU's total reserves to 1,096,997 before the introduction of the share of the joint venture s results. The Union has continued to benefit from the recognition and support of the University, and this year the annual block grant went up to 858,829. The Union's trading subsidiary operates a number of trading operations including: a live music venue, retail operations, restaurant, Starbucks franchise and a conference trade. Trading surplus was 237,247 which is covenanted to the Union. Page 6

9 TRUSTEES' REPORT (continued) The Union holds a 50% share in Student Union Lettings Limited. The company is registered as a charitable company limited by guarantee. 50% of the net income and assets of the company have been included in these financial statements. a. RESERVES POLICY The Union aims to hold 6 months' wages in unrestricted reserves. This would equate to approximately 495,383 in the current year. This would enable an orderly winding down of the organisation in the event that it was necessary. Free Reserves Free reserves stood at 822,278 at the year end. This position is after deducting from total unrestricted funds of 845,930, the amount of 23,652 held as a designated fund to finance the further development of societies and media activities over the next year or two. Clubs and Societies fundraising balances are treated as restricted reserves. Subs and affiliations At the present time ULSU is affiliated to the NUS, for which our total subscription costs amounted to 38,610 for the year and BUCS for which our total subscription costs amounted to 8,744 for the year. No donations were made during the year to any external bodies out of ULSU s own resources. Plans for the future a. FUTURE FUNDING The Board of Trustees confirms that ULSU has sufficient funds to meet all its obligations. The Block Grant for 2015/16 has been confirmed at 868,427 and the commercial activities are expected to generate significant funds. TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who are also directors of ULSU for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation. Page 7

10 TRUSTEES' REPORT (continued) The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE 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 charitable group'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 charitable group's auditor in connection with preparing its report and to establish that the charitable group's auditor is aware of that information. AUDITOR The auditor, Crowe Clark Whitehill LLP, has indicated its willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditor at a meeting of the Trustees. This report was approved by the Trustees on 8 December 2015 and signed on their behalf by: R Holland President Page 8

11 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF LEICESTER STUDENTS' UNION We have audited the financial statements of University of Leicester Students' Union for the year ended 31 July 2015 set out on pages 11 to 29. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company'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 charitable company and its members, as a body, for our audit work, for this report, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under the Companies Act 2006 and section 145 of the Charities Act 2011 and report to you in accordance with those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: give a true and fair view of the state of the group's and the parent charitable company's affairs as at 31 July 2015 and of the group's incoming resources and application of resources, including its income and expenditure, 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 and the Charities Act Page 9

12 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF LEICESTER STUDENTS' UNION OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion: the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit; or the Trustees were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group strategic report. Helen Drew (Senior statutory auditor) for and on behalf of Crowe Clark Whitehill LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Date: Page 10

13 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account) INCOMING RESOURCES Note Restricted Unrestricted funds funds Total funds 2015 Total funds 2014 Incoming resources from generated funds: Voluntary income: Donations, University Grant, etc. 2 97,530 1,411,824 1,509,354 1,467,041 Activities for generating funds 3/4-2,872,960 2,872,960 2,812,885 Share of joint venture gross income - 350, , ,160 Incoming resources from charitable activities 499, , , ,715 Other incoming resources 5-15,315 15,315 19,583 TOTAL INCOMING RESOURCES INCLUDING SHARE OF JOINT VENTURE 597,019 4,771,521 5,368,540 5,208,384 Less share of joint venture - (350,692) (350,692) (311,160) TOTAL INCOMING RESOURCES 597,019 4,420,829 5,017,848 4,897,224 RESOURCES EXPENDED Costs of generating funds: ULSU Trading Ltd expenses 4-2,775,209 2,775,209 2,823,067 Charitable activities 7 588,748 1,519,902 2,108,650 1,830,411 Governance costs 28, , , ,609 TOTAL RESOURCES EXPENDED 6 617,318 4,395,945 5,013,263 4,756,087 NET INCOME / (EXPENDITURE) BEFORE JOINT VENTURES (20,299) 24,884 4, ,137 Share of net income from joint ventures - 79,912 79,912 59,655 NET MOVEMENT IN FUNDS FOR THE YEAR (20,299) 104,796 84, ,792 Total funds at 1 August , ,046 1,092, ,620 TOTAL FUNDS AT 31 JULY , ,842 1,176,909 1,092,412 All activities relate to continuing operations. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 14 to 29 form part of these financial statements. Page 11

14 REGISTERED NUMBER: CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2015 FIXED ASSETS Note Intangible assets ,429 Tangible assets , ,747 CURRENT ASSETS 223, ,176 Stocks 14 60,794 60,105 Debtors , ,716 Cash at bank 1,220,391 1,428,988 1,790,654 1,781,809 CREDITORS: amounts falling due within one year 16 (433,990) (399,431) NET CURRENT ASSETS 1,356,664 1,382,378 TOTAL ASSETS LESS CURRENT LIABILITIES 1,579,671 1,552,554 CREDITORS: amounts falling due after more than one year 17 (402,762) (460,142) NET ASSETS 1,176,909 1,092,412 CHARITY FUNDS Restricted funds , ,366 Unrestricted funds , ,046 TOTAL FUNDS 1,176,909 1,092,412 The financial statements were approved by the Trustees on 8 December 2015 and signed on their behalf, by: R Holland President The notes on pages 14 to 29 form part of these financial statements. Page 12

15 REGISTERED NUMBER: COMPANY BALANCE SHEET AS AT 31 JULY 2015 FIXED ASSETS Note Intangible assets ,429 Tangible assets , ,747 Investments CURRENT ASSETS 223, ,178 Stocks 14 60,794 60,105 Debtors , ,034 Cash at bank 1,220,391 1,428,988 2,027,901 1,911,127 CREDITORS: amounts falling due within one year 16 (671,239) (528,751) NET CURRENT ASSETS 1,356,662 1,382,376 TOTAL ASSETS LESS CURRENT LIABILITIES 1,579,671 1,552,554 CREDITORS: amounts falling due after more than one year 17 (402,762) (460,142) NET ASSETS 1,176,909 1,092,412 CHARITY FUNDS Restricted funds , ,366 Unrestricted funds , ,046 TOTAL FUNDS 1,176,909 1,092,412 The financial statements were approved by the Trustees on 8 December 2015 and signed on their behalf, by: R Holland President The notes on pages 14 to 29 form part of these financial statements. Page 13

16 1. ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, applicable accounting standards and the Companies Act The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. No separate SOFA has been presented for the company alone as permitted by section 408 of the Companies Act 2006 and paragraph 397 of the SORP. 1.2 Basis of consolidation The financial statements consolidate the accounts of ULSU and all of its subsidiary undertakings ('subsidiaries'). The company has taken advantage of the exemption contained within 408 of the Companies Act 2006 not to present its own Income and expenditure account. The income and expenditure account deficit for the year dealt with in the accounts of the company was NIL ( NIL). 1.3 Going concern The company has cash resources and has no requirement for external funding. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting in preparing the annual financial statements. 1.4 Company status The company is a company limited by guarantee. In the event of the company being wound up, the liability in respect of the guarantee is limited to 1 per member of the company. 1.5 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. 1.6 Incoming resources All incoming resources are included in the Statement of financial activities when the charity has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. Page 14

17 1. ACCOUNTING POLICIES (continued) 1.7 Resources expended Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Governance costs are those incurred in connection with administration of the company compliance with constitutional and statutory requirements. and 1.8 Intangible fixed assets and amortisation Intangible fixed assets are valued at cost less amortisation. The asset is being amortised over its estimtated economic life of five years. 1.9 Tangible fixed assets and depreciation All assets costing more than 500 are capitalised. 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: Fixtures & Fittings - 25% - 33% of cost Trading improvements - 25% - 33% of cost Other fixed assets - 25% of cost 1.10 Investments ULSU's fixed asset investments are valued at cost, as these assets are not readily saleable and a reliable market value is not readily ascertainable. (i) Subsidiary undertakings and joint ventures Investments in subsidiaries are valued at cost less provision for impairment. (i) Subsidiary undertakings and joint ventures Investments in subsidiaries are valued at cost less provision for impairment Stocks Stocks are valued at the lower of cost and net realisable value. Page 15

18 1. ACCOUNTING POLICIES (continued) 1.12 Pensions ULSU participates in the Students' Union Superannuation Scheme, a defined benefits scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. The scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to ULSU. Under the terms of FRS17, in these circumstances contributions are accounted for as if the scheme were a defined contribution scheme based on actual contributions paid through the year. The Union also contributes to defined contribution pension schemes for its employees. The pension charge represents the amounts payable by the company to the fund in respect of the year. 2. VOLUNTARY INCOME Restricted Unrestricted funds funds Total funds 2015 Total funds 2014 Donations and University Grants - 1,111,824 1,111,824 1,101,316 Grant of serviced accommodation - 300, , ,000 Green fund restricted income 71,700-71,700 65,725 Widening participation 25,830-25,830 - Voluntary income 97,530 1,411,824 1,509,354 1,467, NON-ANCILLARY TRADING INCOME Restricted Unrestricted funds funds Total funds 2015 Total funds 2014 Rental income - 43,504 43,504 43,500 Page 16

19 4. SUBSIDIARY TRADING COMPANY The ULSU owns 100% of the issued share capital of it's subsidiary, University of Leicester Students Union Trading Ltd. The subsidiary participates in trading activities relating to the Union. Its taxable profits are donated to the Union. A summary of the subsidiary's results is shown below: Profit and loss account Turnover 2,829,456 2,769,385 Cost of sales (1,178,953) (1,214,435) Gross profit 1,650,503 1,554,950 Administrative expenses (1,413,256) (1,425,632) Net profit 237, ,318 Gift aid donation (237,247) (129,318) Retained in subsidiary - - The net assets of ULSU Trading Ltd at 31 July 2015 amounted to 2 (2014-2). Included within the expenditure in the consolidated Statement of Financial Activities is notional rent of 183,000 (2014: 183,000). 5. OTHER INCOMING RESOURCES Restricted Unrestricted funds funds Total funds 2015 Total funds 2014 Other incoming resources - 6,361 6,361 8,367 Bank interest received - 8,954 8,954 11,216-15,315 15,315 19,583 Page 17

20 6. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE Staff costs Depreciation Other costs Total Total ULSU Trading Ltd 987,121 47,844 1,740,244 2,775,209 2,823,067 Costs of generating funds 987,121 47,844 1,740,244 2,775,209 2,823,067 Education & Representation 207,196 7,083 82, , ,187 Welfare 23,342 7,083 90, ,671 99,815 Campaigns & Communications - 7,083 84,592 91,675 85,506 Shops 46,152 14,874 72, ,181 88,009 Societies & clubs 216,581 25, ,986 1,184,065 1,228,153 Green Fund 31,496-39,009 70,505 47,741 Other costs 190, ,571 - Widening participation 17,253-3,483 20,736 - Charitable activities 732,591 61,621 1,314,438 2,108,650 1,830,411 Governance 75,386 9,208 44, , ,609 1,795, ,673 3,099,492 5,013,263 4,756, ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES Certain central overhead support costs have been reallocated to the various activities as noted in the accounting policies. The effect of this reallocation on the various expenditure heading is shown here: Activities undertaken directly 2015 Support costs Total Total Education & Representation 162, , , ,187 Welfare 7, , ,671 99,815 Campaigns & Communications - 91,675 91,675 85,506 Shops - 133, ,181 88,009 Societies & clubs 763, ,141 1,184,065 1,228,153 Green Fund 70,505-70,505 47,741 Other costs - 190, ,571 - Widening participation 20,736-20,736 - Total 1,024,971 1,083,679 2,108,650 1,830,411 Page 18

21 Support costs comprised: Staff costs 312, ,891 Depreciation 70,829 96,727 Rent 300, ,000 Less notional rent re ULSU Trading Ltd (183,000) (183,000) Insurances 33,290 27,809 NUS Subscription 38,610 38,317 Bad debts 800 (559) Pension Scheme Funding 219,772 48,009 Marketing costs 34,569 7,908 Stationery and telephone 12,901 11,333 Repairs and maintenance General building repairs and cleaning 139, ,720 Bank and Interest charges 50,237 42,898 Other sundry expenses 183, ,889 Element of these costs treated as Governance expense (129,404) (102,609) Total 1,083, , NET INCOME / (EXPENDITURE) This is stated after charging: Amortisation - intangible fixed assets 5,000 5,000 Depreciation of tangible fixed assets: - owned by the charitable group 113, ,968 Auditor's remuneration 15,250 14,875 Governance Internal audit costs STAFF COSTS Staff costs were as follows: Wages and salaries 1,456,370 1,502,121 Social security costs 76,043 74,891 Other pension costs 262,685 88,486 1,795,098 1,665,498 Page 19

22 9. STAFF COSTS (continued) The average monthly number of employees during the year was as follows: No. No. Full time Students - term time only The number of higher paid employees was: No. No. In the band 60,001-70, Page 20

23 10. TRUSTEES' REMUNERATION The Executive Committee's sabbatical officers were remunerated as allowed by the Education Act 1994 and their salary, NI and pension costs amounted to 86,313 (2014: 78,679) in aggregate. The split of salary costs (excluding NI costs) is as detailed below: TRUSTEE NAME 2015 D Flatt - 16,643 M Danylchenko - 16,821 S Kelly Walsh 16,830 18,030 M Rubin 16,937 18,030 J Appleyard 17,403 1,530 Y Nikolov 17,654 1,530 R Holland 2,072 - A Mitchell 2,072 - A Hamilton 2,072 - R Gallagher 2,072 - L Patrick 2,072 - Total 79,184 72, There were Nil other trustee-benefits for the year (2014: Nil). Two Trustees received reimbursement of expenses totalling 260 (2014: 310). 11. INTANGIBLE FIXED ASSETS Starbucks Licence Group Cost At 1 August 2014 and 31 July ,000 Amortisation At 1 August ,571 Charge for the year 5,000 At 31 July ,571 Net book value At 31 July At 31 July ,429 Page 21

24 11. INTANGIBLE FIXED ASSETS (continued) Starbucks Licence Company Cost At 1 August 2014 and 31 July ,000 Amortisation At 1 August ,571 Charge for the year 5,000 At 31 July ,571 Net book value At 31 July At 31 July , TANGIBLE FIXED ASSETS Fixtures & fittings Group Cost At 1 August ,277,847 Additions 171,529 Disposals (64,193) At 31 July ,385,183 Depreciation At 1 August ,113,100 Charge for the year 113,673 On disposals (64,168) At 31 July ,162,605 Net book value At 31 July ,578 At 31 July ,747 Page 22

25 The net book value of fixed assets represents: 2015 Assets used for charitable activities 146, ,886 Commercial activities 75,630 50, , ,747 Fixtures & fittings Company Cost At 1 August ,277,847 Additions 171,529 Disposals (64,193) At 31 July ,385,183 Depreciation At 1 August ,113,100 Charge for the year 113,673 On disposals (64,168) At 31 July ,162,605 Net book value At 31 July ,578 At 31 July , FIXED ASSET INVESTMENTS Subsidiary Company Cost: At 1 August 2014 and 31 July ULSU also holds a 50% stake in Student Union Lettings Limited which was incorporated on 12 July 2012 as a company limited by guarantee and is a joint venture with De Montfort University Students Union Limited. Student Union Lettings Limited commenced trading on 1 August 2012 and 50% of the net income and assets of the company have been included in these financial statements. Page 23

26 14. STOCKS Group Company Stocks in bars, shops & other outlets 60,794 60,105 60,794 60, DEBTORS Group Company Trade debtors 69,762 48,736 69,762 48,736 Amounts owed by group undertakings , ,318 Amounts owed by joint ventures 239, , , ,747 Other taxation and social security Other debtors 11,610 1,561 7,375 2,700 11,610 1,561 7,375 2,700 Prepayments and accrued income 186,877 74, ,877 74, , , , , CREDITORS: Amounts falling due within one year Group Company Trade creditors 191, , , ,960 Amounts owed to group undertakings , ,320 Other taxation and social security 23,228 23,050 23,228 23,050 Other creditors 89, ,423 89, ,423 Accruals and deferred income 130, , , , , , , ,751 Deferred income Group Company Deferred income at 1 August ,015 67,015 Amounts released from previous years (19,238) (19,238) Deferred income at 31 July ,777 47,777 Deferred income relates to amounts received in respect of multi-year contracts. Page 24

27 17. CREDITORS: Amounts falling due after more than one year Group Company Loan from University 402, , , ,142 It is intended that the loan from the University will be repayable over 10 years from 2012, with a fixed interest rate of 4.5%. Page 25

28 18. STATEMENT OF FUNDS Unrestricted funds Brought Incoming Resources Carried Forward resources Expended Forward Free Reserves 807,616 4,405,466 (4,390,804) 822,278 Media Reserve 5,141 - (5,141) - Society Grant Reserves 8,289 15,363-23, ,046 4,420,829 (4,395,945) 845,930 Share of net income from joint ventures 79,912 79,912 4,500, ,842 Restricted funds Pension Scheme Funding 29,200 - (29,200) - Clubs and Societies 224, ,489 (496,877) 226,794 Green Fund 17,984 71,700 (70,505) 19,179 Widening Participation - 25,830 (20,736) 5, , ,019 (617,318) 251,067 Total of funds, before joint ventures 1,092,412 5,017,848 (5,013,263) 1,096,997 Share of net income from joint ventures 79,912 79,912 5,097,760 1,176,909 SUMMARY OF FUNDS Brought Incoming Resources Carried Forward resources Expended Forward Unrestricted funds 821,046 4,420,829 (4,395,945) 845,930 Restricted funds 271, ,019 (617,318) 251,067 1,092,412 5,017,848 (5,013,263) 1,096,997 Share of net income from joint ventures 79,912 79,912 5,097,760 1,176,909 Page 26

29 18. STATEMENT OF FUNDS (continued) The restricted funds relate to: A one-off grant from the University to address a section 75 deficit in the PAS Pension Scheme. The bulk of this fund is to be paid to the trustees of the PAS. The Clubs and Societies Funds represent balances held for specific clubs and societies where the ultimate control would vest with the Union. The Green Fund relates to funds received directly from NUS Students' Green Fund to fund a project on sustainable food production on campus. The Widening Participation fund relates to funds received directly from the University of Leicester to increase engagement of the student body in widening participation. This will include empowering student groups to deliver outreach activities to young people and other prospective students from disadvantaged backgrounds, raising awareness amongst current students about the issues related to fair access and student success. 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Restricted Unrestricted funds funds Total funds 2015 Total funds 2014 Tangible fixed assets - 222, , ,747 Intangible fixed assets ,429 Current assets 251,067 1,539,587 1,790,654 1,781,809 Creditors due within one year - (433,990) (433,990) (399,431) Creditors due in more than one year - (402,762) (402,762) (460,142) 251, ,842 1,176,909 1,092,412 Page 27

30 20. PENSION COMMITMENTS The Union participates in the Students Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a final salary basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme closed to future accrual. The most recent valuation of the scheme was carried out as at 1 October 2010 and showed that the market value of the scheme s assets was 67,141,000 with these assets representing 58% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to 47,869,000. The assumptions which have the most significant effect upon the results of the valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions. The following assumptions applied at 1 October 2010:- The investment return would be 6.6% per annum before retirement and 4.6% per annum after retirement Pensions accruing on the CARE basis would revalue at 3.2% per annum. Present and future pensions would increase at rates specified by scheme rules with appropriate assumptions where these are dependent on inflation. The 2010 valuation recommended a monthly contribution requirement by each Union expressed in monetary terms intended to clear the ongoing funding deficit over a period of 20 years and will increase by at least 3.2% each year. These contributions also include an allowance for cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 2011 and will be formally reviewed following completion of the next valuation due with an effective date of 1 October Surpluses or deficits which arise at future valuations will also impact on the Union s future contribution commitment. In addition to the above contributions, the Union also pays its share of the scheme s levy to the Pension Protection Fund. The contribution rate (excluding deficit contributions) for the period to 30 September 2011 applicable to Union for the majority of members was 17.3% in aggregate. The total contributions paid into the scheme by the Union in respect of eligible employees for the year were 219,772 (2014: 48,009). The Universities Superannuation Scheme (USS). The contributions paid during the year amounted to 25,649 (2014: 28,456). The NUS Aegon Pension Scheme. The contributions paid during the year amounted to 13,776 (2014: 10,037). The National Employment Savings Trust (NEST). The contributions paid during the year amounted to 4,463 (2014: 1,679). Page 28

31 21. PRINCIPAL SUBSIDIARIES AND JOINT VENTURES a. Principal subsidiaries Company name University of Leicester Students Union Trading Ltd Country Percentage Shareholding Description England 100 Trading subsidiary b. Principal joint ventures Company name Country Percentage Shareholding Description Student Union Lettings Limited England 50 Student lettings agency Page 29