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Charity Number: 1148216 Company Registration Number: 08126776 University of Westminster Students’ Union Annual Report and Accounts For the Period 1 September 2012 to 31 July 2013 UNIVERSITy OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 Administrative Information Introduction The Trustees of the University of Westminster Students’ Union (UWSU) present their report for the period 1 September 2012 to 31 July 2013. The Union’s intention is to prepare accounts normally to the end of July. It was necessary to extend the prior reporting period by an additional month to allow completion of the incorporation process on 1 September 2012, when the Union became an incorporated registered chailty. Charitable Status The University of Westminster Students’ Union (UWSU) is an incorporated charity (limited by guarantee). The charity registration number is 1148216. The company registration number is 8126776. It was originally established under the Education Act 1994 and was registered with the Charity Commission on ig July 2012, when students’ unions connected with exempt higher/further education institutions were removed by section 11(9), Charities Act 2006 from the list of exempt charities in Schedule 2 to the Charities Act 1993. On incorporation as a limited company on 2 July 2012, the unincorporated Union transferred its assets and liabilities to the newly incorporated charitable Union on 1 September 2012. Prior to this date, the incorporated charity did not trade. Due to this being the first period of the incorporated Union, the comparative data in the primary statements or notes, and any reference in the narrative of these financial statements to results or activities in previous periods relates to the unincorporated Union, Principal address and Registered Office University of Westminster Students’ Union, 309 Regent Street, London W1B 2HW. Charity Trustees Full-time (Sabbatical) Officers From 1 Aug 2012 From 1 July th to 30 June 2013 2013 President Tank Mahri Kaled Mimouni Vice President Marylebone Jenny Chan Jayesh Gohil Vice President Harrow Jenny Ybanez Rianne Gordon Vice President Regents and Tichfield Jamal Achchi Muaz Mahmoud Vice President Cavendish Miriam Hanna Miriam Hanna External Trustees th Louis Coiffait (from 28 Feb 2013 and current Chair) Simon Finch (from 23 May 2013) James Paskins (from 23 May 2013) Liz Choonara Pan Dhillon (to 3l Jan 2013) Ordinary Student Trustee Leila Saghir-Pashley (from 23 May 2013) 1 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 University Trustees Myszka Gu±kowska (from Vt August 2012 to 23 May 2013) Jane Lewis (23 May 2013 onwards) Chris Meloy Auditors Bankers Solicitors Crowe Clark Whitehill Barclays Bank PLC Bates Wells and Braithwaite 49 Blagrave Street Level 27, Churchill Place 2-6 Cannon Street Reading Canary Wharf London Berkshire London EC4M 6YH RG1 1PL E14 5RB UWSU employs a Chief Executive to work closely with the Executive Sabbatical Officers and ensure effective management of the Students’ Union. This role was undertaken by Nick Berg during 2012/13 and is currently filled by an Acting Chief Executive (Andy Smith). Structure, governance and management UWSU is constituted under the Education Act 1994 (the Act) as a charitable company limited by guarantee (see page 1) with internal regulations and rules approved by the governing body of the University of Westminster. UWSU’s objects under the Act are to advance the University’s educational purposes by providing representation and support for the students and are supplemented by the further object of helping members to develop their own charitable activities as active partic!pants in civil society. The Union has a Memorandum and Articles of Association which sets out its governance structure. UWSU is administered by its Chief Executive with the delegated authority of the Board of Trustees which includes students elected annually by cross-campus secret ballot of the UWSU membership. The full time or ‘sabbatical’ posts are remunerated as authorised by the Education Acts and cannot exceed two years duration for each holder. UWSU operates on democratic principles with supervisory power vested in the Board of Trustees which approves the general policy, budget, and annual accounts. The trustees have delegated day to day running of UWSU to the Chief Executive. As trustees all lected officers receive an induction into their legal and administrative responsibilities, with an ongoing training programme as and when needed. The Trustees meet quarterly to receive reports from the Chief Executive and to review the Union’s performance and administration and to decide policy issues. UWSU also employs a number of non- student staff for the sake of continuity in the management of its many activities. The staff are accountable to the Chief Executive for the performance of their duties. Relationship with the University The relationship between the Union and the University have established in the Memorandum of Understanding and detailed in the UWSU Constitution approved by both parties. UWSU receives a block grant (subvention) from the University and also occupies space owned by the University which also supplies utilities and services. This non-monetary support is intrinsic to the agreement between the University and UWSU. As recommended by the Charity SORP, which has been adopted for accounting purposes, an estimated value has been placed on this free service (the space grant). UWSU supplements the subvention from the University by means of its various trading activities. 2 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 There is no reason to believe that the support will not continue from the University 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. Risk Management The Chief Executive and Senior Team have examined the major strategic, business and operational risks faced by UWSU. A risk register has been established is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks UWSU faces. Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants, which are periodically reviewed to ensure that they continue to meet the needs of the Union. Aims, Objectives and Activities The objects of the Union are the advancement of education of Students at University of Westminster for the public benefit by: • Promoting the interests and welfare of Students at University of Westminster during their course of study and representing, supporting and advising Students; • Being the recognised representative channel between Students and University of Westminster 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. This year we continued our work to reengage with our students, deliver a portfolio of services relevant to current needs and support the University in its ambitions. There was considerable success and we have achieved a lot, but the growth in activity has meant great pressure on the finances. We continue to increase our impact on the areas critical for student and ultimately the University. We will be at the centre of helping the University outperform its competitor group and neutralising the advantage of the aspirational group. We will work to ensure the delivery of a quality student experience at the University of Westminster through: • Developing community and pride around the student • Helping the University deliver • Being where the student is at • Broadening our appeal. When reviewing our objectives and planning our activities, UWSU gives due consideration to the Charity Commission’s general and relevant supplementary guidance on public benefit. Achievements and Performance We have had a two year period which has seen a step change in our service provision and activity. There is a demonstrable vibrancy around the SU and what it is delivering to the Students and University. This is difficult to quantity and has been costly to implement but is the right thing to do for our members. Clearly this has challenged us as an organisation and we are starting to consolidate. As an organisation the important aspect is that we have clearly continued to demonstrate the role and impact that UWSU can have on the Westminster experience. 3 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 This year we have also benefited from completing all the recruitment to our Trustee Board which has brought a wealth of experience and support to the organisation which was not available in the past. The Board and Sub-Committees are working well and being properly supported, Further the university has recognised our change by providing an additional 055k for the 13/14 Subvention plus additional ringfenced funds for specific projects of £8Ok. They have also provided financial support in this financial year to allow us to continue our strategy without having to dramatically contract operations. Amongst some of the notable changes are: TJT1TiJiTT1TiTi i t . t ( I i E C 6 , ° — to — — - 4 a - 0- c’ to C C 4- 3 - C C -o o o n Z u 0 S C ZZ t C — -“ a z E ci >-C ‘ 0 t - C C - 3 to. a fl a D a ‘.— 5- - a - w — ‘to - ci (to a C 5 S (n - , - - = ..-. 3 I! na WI flfl — UEL n n y n n n]n nJy n dk 687 639 9>24 Greenwich [y n y y n n n n 9 n. n n 1 1369 n ‘36 LondonMet y n y y n n n n 8 y n n dk 15 447 8 >24 Kingston Y n n y n y n y 30 n n n n 1979 761 7 >12 Middlesex y n y n y n n y 2 n n n n 1352 384 QueenMary y y y y y y n n 14 n n n 300 24582288174 10 LondonSouthgank y n n y n y n n 5 n n n n 1168 269 40 10 universityof Arts n n n y n n n n 2 n n n 500 2197 2931 86 12 WestLondon y n V n n n n n 8 t t/ t/ 160 3530 4531 >36 Moving to the sites Perhaps the most visible sign of change are our site offices across four of the main university locations. This has made us highly visible and in all of the sites it is no longer possible to not notice the SU as part of the daily university experience. Continuing to grow election turnout for the sabbatical elections This suggests a much higher level of engagement with our members and a clear interest in the direction of the SU. Last year saw l of our students vote, a rise from 1 in 2011. It was .l% 8 8 . 2 % highest of our university competitor group and in the third quartile nationally. Continuing increases in participation in student activities In the space of 18 months we have seen virtually a double (194%) increase in the number of registered members of clubs and societies. Positive engagement with the University There have been many areas where we have positively engaged to drive University goals and enhance the student experience. For example the Great Start, 24 hour library opening at key times of the academic year such as coursework deadlines and exams and Staff Appreciation Awards. In this year - 4 UNIVERSITY Of WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 we successfully recruited 199 Friends of Arriving New Student (FANS), maintained contact with most of the course reps and identified vacant course rep positions and had 689 students nominating staff for awards. In return we can identify where we have had impact on the recruitment, retention and employability of students which are slowly being reflected in the national league tables. Successful communications strategy Since the launch of Smoke TV and a change in our web platform we have had much more effective engagement with our members through our formal and informal communications. Our output has seen the number of views much higher than any of our competitors and with the rate of TV output much greater than most students’ unions nationally. We are now producing over 10 new films a month during term times and this is helping us reach and engage with a much greater audience. At the end of the academic year we had 8312 “likes” of our Facebook page which is 37% of our total student numbers and neady half of our FTh figure A step change in welfare and advice For most of the year we had a three strong welfare team that gives greater access to signposting and independent advice. We have an on-site presence during the term for at least three days in the week. This has demonstrated the value and importance of the advice service which has previously been very low profile. The clearest indication of our success is that we have been involved in returning 42 students to their studies who would have otherwise left the university, 12 of those students had already been excluded. In total we dealt with 360 students. A dialogue with the students The Union now has a dialogue with a much broader range of students and a strategic agenda set on their needs. The site based officers have successfully moved the organisation closer to the students it represents making it more relevant, visible and transparent in the work it does. Providing better involvement opportunities for students We employ greater number of students and recruit more students in voluntary roles (e.g. FANS) A much greater events and social package Under the banner of our events department, So Fresh ‘n’ So Clean, we have delivered a number of high profile events but we have also concentrated on more events through our School Student Associations and course based societies. Over the two years our internal room bookings for club and society events have nearly tripled Future Plans Consolidating and ensuring the organisation can continue to develop Now we are more certain in our future and the portfolio of activities we need to provide it is time to ensure we are appropriately resourced to deliver and continue to develop. This will involve reviewing: • Finance and budgets • HR Strategy • KPI’s and the strategic plan 5 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 Building a sense of community around the student We are now embedded on the sites and need to continue to improve the impact of our physical location —improving opening hours and physical space will be important. Being able to access a greater range of services through the site offices: • Welfare • Ticket sales • Branded goods • Sports and societies membership and information A greater push on SSA volunteer recruitment: • Students driving the local agenda Campus awareness weeks: • Highlighting the qualities of where you study, trying to improve the understanding and respect for the campus A step change in course based societies: • These will become the “entry point” for students into the SU activities and be the primary community which they engage with • A school development plan. Ensuring the delivery of a quality university experience Most of our activity impacts on key university targets as well as supporting the students generally. Whilst we have seen some success in impacting on the NSS scores we need to do signiflcantly more. Recruitment • Alternative prospectus and online content • Growth of Great Start Programme • Increased support and activity for open days Progression • Course based societies as above • Increasing the roll out of peer assisted learning programmes and effectively supporting and engaging with the University Learning Futures project Retention • Continuing to identify the role and importance of FANS at the start of the year • Increasing the awareness of the importance of engaging with clubs and societies • Greater welfare and advice presence on the sites of study Employability • Identifying core skills gained through being involved in the SU labelling and helping students to understand their value and benefit • Continuing to employ students where possible • Working on the enterprise agenda to include student business enterprise and supporting entrepreneurial approaches in voluntary opportunities Improving the NSS Scores: • Each officer and SSA will have NSS led goals and be judged against the NSS score • Expanding the impact of the staff awards as a vehicle for disseminating good practice 6 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 • Increasing the awareness of the importance of support and feedback for students • Integrating our welfare and advice with the University academic support • Using the course rep network to work with the University on their ongoing improvement Being relevant to all our members Continue to build networks that allow us to engage in a dialogue with our key stakeholders: • Course reps • SSA volunteers • Club and society activists • Course based societies • Welfare users The research/dialogue function should be integrated to all staff roles Continuing our work with different target student groups: • Growing the Postgraduate Students’ Association (PGSA) so it is based in the schools with an institution wide committee to develop their representation, social activity and create educational policy • Establishing international students associations on the same lines as the PGSA • Mature students • Student parents • Students who live at home/learn and go students • Distance students • Part time students • Students on placement/year abroad study Breadth/Depth impact analysis: • We will continue to list all of our key outcomes and link with the KPIs. We will assess how many students we are reaching and how deep our impact is. Our role as an organisation will be to increase the breadth and depth of these scores. Financial Review UWSU’s gross income for the period was £1,558,432 and total expenditure was £2,244,558. Opening reserves of £303,480 were fully utHised to support increased levels of activity. Net current liabilities at the end of the period were £382,646, which includes cash-based support received from the University totalling £512,719. The Union incurred a deficit following a period of committing to substantial increases in activity outside original budget plans particularly sports teams, societies, student media and site-based. The Union — has been in discussion with the University since January 2013 regarding the impact of additional investment and the strategic considerations of continuing to deliver, rather than ceasing, the enhanced range of services for the benefit of its members. The Union was impacted during the year by a reduced contribution from trading outlets compared with previous periods, largely due to renovations at the Harrow site. Trading experienced a £lOk loss overall, which equated to a negative variance of £69k compared with budget. 7 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 The cash support received from the University was in addition to the subvention of £635,000 for the period (which equates to the annual block grant of £720,000 less £85,000 which was accrued in August 2012, in the prior year period). We are grateful to the University to the increase in subvention (to £975,000) which has been secured for 2013/14. The Union undertook work over the summer of 2013 to reduce its cost base and obtained support from the University in relation to transitional costs (including £27,000 in the financial period 2012/13). The Union is now operating within its budget, which is based on an enhanced annual subvention of £975,000. The Union also receives space provided by the University and benefitted from the provision of additional site-based offices in 2012/13. These have been valued at £237,897 based on the calculation used in the prior period. This amount is matched by a rent charge in these accounts so does not have a bottom line impact in the accounts. Reserves Policy The Union requires a level of reserves to enable it to maintain its provision of student services in the event of a major unforeseen contingency and to help it absorb the impact of one-off costs or specific project costs. In bringing down its reserves, the Union has been working with an intention of having a minimum of approximately £50k in cash reserves. The Union ended the financial year with £21k in bank and cash. The Union is developing a strategy to build up its reserves balances over the medium term to enable it to cope with any unexpected downturn in funding or additional calls on its resources without immediately curtailing activities. It is also working in consultation with the University on a longer term plan which will allow settlement of liabilities from 2012/13. The Union has secured grant of £975k for 2013/14 and Trustees have agreed a balanced budget which includes investment of the full amount to ensure continued investment in services for the 2013/14 year. Provision of Information to Auditor So far as each of the Directors is aware at the time the report is approved: • There is no relevant audit information of which the charitable company’s auditor is unaware; and • The Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. V áz./ LcL4 (Y3dtF\i/ Trustee Dated 8 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 STATEMENT OF TRUSTEES’ RESPONSIBILIITES The Trustees (who are also directors of University of Westminster Students’ Union for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: • select suitable accounting polides and then apply them consistently; • observe the methods and pMnapies in the Charities SORP; • make judgments and 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; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 9 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 Independent Auditor’s Report to the Members of University of Westminster Students’ Union We have audited the financial statements of University of Westminster Students’ Union for the period ended 31 July 2013 set out pages 12 to 21. 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. 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 the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. 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 Boards 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 charitable 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’ Annual Report and any other surround information 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 charitable company’s affairs as at 31 July 2013 and of its 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. 10 UNIVERSITY OF WESTMINSTER STUDENTS’ UNION Annual Report and Accounts for the Period Ended 31 July 2013 Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees Annual 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 requires us to report to you if, in our opinion: • adequate accounting records have not been kept; or • the Nnancial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or A • we have not received all the information and explanations we require for our audit. Alastair Lyon Senior Statutory Auditor For and on behalf of Crowe Clark Whitehill LIP Statutory Auditor Reading Date L 11 ______________________ ______________________ _____________________ _____________________ UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Penod Ended 31 July2013 STATEMENT OF FINANCIAL ACTIVITIES Unincorporated Union 2013 2012 Note General Restricted 11 month period 13 month period Funds Funds I2t.! Total £ £ £ £ INCOMING RESOURCES Voluntary income University subvention 635,000 — 635,000 805,000 Other Grants 27,697 - 27,697 Grant of serviced accommodation 1(c) 237,897 - 237,897 281,151 Activities for generating funds Marketing and Sponsorship 23,972 - 23,972 46,342 Investment income 86 - 86 3:386 Charitable activities for students Bars 138,989 - 138,989 223,658 Shops 441,607 - 441,607 558,030 Clubs and Societies 15,134 - 15,134 14,563 Events 18,795 18,795 0 Other income 19,255 - 19,255 821 TOTAL INCOMING RESOURCES 1,558,432 - 1,558,432 1,932,951 RESOURCES EXPENDED Cost of generating funds Fundraising and marketing costs 5,150 - 5,150 27,240 Charitable Activities Events including Freshers’ Fair 114,936 - 114,936 153,359 Bars 244,853 - 244,853 316,540 Shops 565,960 5,668 571,628 644,786 Student Media and Communications 304,270 - 304,270 238,127 Student Activities 482,367 - 482,367 401,229 Welfare 93,384 - 93,384 91,333 Site Based Activity 240,369 - 240,369 153,357 Research and Representation 119,501 - 119,501 184,162 Governance 68,100 - 68,100 81,111 TOTAL RESOURCES EXPENDED 2-5 2,238,890 5,668 2,244,558 2,291,244 NET OUTGOING (680,458) (5,668) (686,126) (358,293) RESOURCES Funds brought forward 297,812 5,668 303,480 661,773 Funds carried forward (382,646) - (382,646) 303,480 The statement of financial activities includes all gains and losses recognised in the period, All incoming resources and resources expended derive from continuing activities. The Union’s financial reporting penod was shortened by a month in 2013 to revert to the normal reporting period of end of July. This was required due to late completion of the incorporation process in 2012, which resulted in a 13-month prior accounting period. The notes on pages 14 to 21 form part of these accounts. 12 UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 BALANCE SHEET AS AT 31 JULY 2013 Company Number: 08126776 Unincorporated Union Asat Asat Notes 31-Jul-13 31-Aug-12 £ £ FIXED ASSETS Tangible fixed assets 6 89,905 94,279 Investments 7 660 660 90,565 94,939 CURRENT ASSETS Stock 43,146 30,516 Debtors and Prepayments 8 50,827 162,978 Cash at Bank and in Hand 21,166 287,488 115,139 480,982 CURRENT LIABILITIES Amounts falling due within one year 9 (588,350) (272,441) NET CURRENT (LIABILITIES)/(ASSETS) (473,211) 208,541 Amounts falling due after one year - - NET (LIABILITIES)! ASSETS (382,646) 303,480 Financed by: Funds 10,11 Restricted Funds - 5,668 Unrestricted Funds (382,646) 297,812 (382,646) 303,480 Approved and authorised for issue on behalf of the University of Westminster Students Union on 27 February 2014 by/— — tL*X Trustee CL /er1T The notes on pages 14 to 21 form part of these accounts. 13 UNIVERSIW OF WESTMINSTER STUDENTS UNION Annual Report and Accoutns for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS 1 ACCOUNTING POLICIES a) Accounting Convention These accounts are prepared under the Charities Act 2011 on the historical cost convention in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities published in March 2005 (SORP 2005) and with applicable UK Accounting & Financial Reporting Standards. b) Going Concern The Trustees consider that there is a reasonable expectation that the Charity has adequate resources and support from the University to continue in operational existance for the forseeable future and, for this reason, they continue to adopt the going concern basis in preparing the annual financial statements. c) Incoming resources All income and capital resources are recognised in the accounts when the Union is legally entitled to the income and the amount can be quantified with reasonable certainty. The University grant of free serviced accommmodation is accounted for as income and expenditure of the year at an estimated value to the Union by reference to alternatives available on the commercial market. d) Resources expended Expenditure includes irrecoverable VAT. i) Charitable expenditure and costs of generating funds comprises the direct and indirect costs of - delivering public benefit. ii) Governance costs those incurred for compliance and statutory requirements, such as the annual - audit, annual elections and training for sabbatical officers. iii) Space grant the value of free serviced campus accommodation is apportioned on estimated floor - space occupied. iv) Other central overhead costs are apportioned to charitable and other projects / activities on a usage basis, pro rata to the total costs of each project or activity undertaken. e) Tangible fixed assets Fixed assets are stated at cost less accumulated depreciation. Assets are not capitalised below £1,000 cost per item/set. Equipment, fixtures and fittings are included at cost. Depreciation is provided at the following annual rates in order to write the cost of assets off over their estimated useful lives:- Fixtures and fittings 20% per annum on cost Computer and Office Equipment 20% per annum on cost Improvements to Buildings 10% per annum on cost f) Investments UWSU’s fixed asset investments are valued at cost, as these assets are not readily saleable and a reliable market value is not readily ascertainable. 14 UNIVERSITY OF WESTMINSTER STUDENTS UNiON Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS ACCOUNTING POLICIES (CONTINUED) g) Pension Costs UWSU participates in the Students’ Union Superannuation Scheme, a defined benefit 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 contnbutions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. 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 now operates a defined contribution pension scheme and the pension charge represents the amounts payable to the fund in respect of the period. Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the balance sheet. h) Stock Stock is valued at the lower of cost and net realisable value. I) Liabilities Liabilities are recognised when the entity has an obligation to transfer economic benefits as a result of past transactions or events. j) Fund accounting UWSU administers and accounts for a number of funds, as follows: I) Unrestricted funds representing unspent income which may be used for any activity! purpose at the Executive Committee’s own discretion; H) Restricted funds raised and administered by UWSU for specific purposes as determined by students such as Club and Societies’ accounts, as well as revenue received for purposes specified by the donor and also (if not material enough to require a separate column in the SoFA) any small capital grants received from the University; and hi) Custodian Funds entrusted to UWSU for safekeeping, but not under its management control, e.g. Clubs & Societies’ funds. Such custodian activities are disclosed in the Annual Report, but as the funds are not managed by UWSU they cannot be included in the accounts, 15 UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS (Continued) 2 Resources Expended Cost of Staff Other Sales Costs Costs Total £ £ £ £ Cost of generating funds Fundraising and marketing costs - 1,453 3,697 5,150 Charitable Activities Events including Freshers’ Fair - 25,739 89,197 114,936 Bars 68,163 84,675 92,015 244,853 Shops 311,590 132,174 127,864 571,628 Student Media and Communications - 139,540 164,730 304,270 Student Activities - 85,380 396,987 482,367 Welfare - YS,2/1 18,113 93,384 Site Based Activity - 211,649 28,720 240,369 Research and Representation - 82,334 37,167 119,501 Governance Governance - 38,993 29,107 68,100 379,753 877,208 987,597 2,244,558 Included in governance costs above is the annual audit fee of £9,750. 3 Central overhead costs included in Note 2 Rent Staff Other Total % £ £ £ £ Cost of generating funds Fundraising and marketing costs 1 2,379 1.453 1153 4,985 Charitable Activities Events including Freshers’ Fair 7 16,653 10.171 8,071 34,895 Bars 14 33,306 20.343 16,141 69,790 Shops 28 66,611 40,686 32,283 139,580 Student Media and Communications 10 23,789 14,531 11.530 49,850 Student Activities 18 42,821 26,155 20,753 89,729 Welfare 4 9,516 5,812 4,612 19,940 Site Based Activity 7 16,653 10.171 8.071 34,895 Research and Representation 8 19,032 11,624 9.224 39,880 Governance Governance 3 7,137 4,359 3,459 14,955 237,897 145,305 115,297 498,499 Other costs comprised: NUS Affiliation Fees 38,753 Insurance 19,492 Depreciation 14,053 Other costs, including office costs 42,999 115,297 16 _______ UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS (Continued) Unincorporated Union 2013 2012 4 Staff Costs 11. month period 13 month period £ £ Wages and salaries 748,464 713,445 Social security 55,065 52,536 Pension Costs 21,897 16,845 825,426 782,826 No employee earned over £60,000 in either period. The staffing was as follows: Number Number Full time 25 26 Students term time only - 49 46 74 72 5 Trustees’ Remuneration and Expenses Each of the five sabbatical officers are paid as authorised in the Unions governing document, for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities. This work included voicing student opinion with the University and local community, defending and extending the rights of students through petitions etc. and also organising and supporting student volunteers and service provision for them. The total salary and social security costs for the sabbatical officers amounted to £103,813 (2012 : £115471 ). The number of Trustees was increased to five (from four) at the end of 2011/12. Trustees were reimbursed any expenses in connection with their duties during the period totalling £12,074 (2012: £nil). 17 _________________ UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAl. STATEMENTS (Continued) 6 TANGIBLE FIXED ASSETS Other fixtures, Building Bar Fixtures fittings and Improvements and Fittings equipment Total £ £ £ £ COST At 31 August 2012 174,012 153,550 216,440 544,002 Additions - - 39,609 39,609 Disposals (10,032) - - (10,032) As at 31 July 2013 163,980 153,550 256,049 573,579 DEPRECIATION At 31 August 2012 158,209 135,919 155,595 449,723 Charge for the Period 15,803 5,431 22,749 43,983 Disposals (10,032) - (10,032) As at 31 July 2013 163980 141,350 178,344 483,674 NET BOOK VALUE As at 31 July 2013 - 12,200 77,705 89,905 At 31 August 2012 15,803 17,631 60,845 94,279 7 INVESTMENTS Unincorporated Union 2013 2012 At cost 1 September 2012 and 31 July 2013 - £ £ Shares in NUS Services Limited A Shares of £1 each 60 60 B shares of £20 each 600 600 660 660 18 UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8 DEBTORS Unincorporated Union 2013 2012 £ £ Trade Debtors 27,783 17,892 Prepayments and Accrued Income 18,003 127576 Tax and Social Security 15,472 Other Debtors 5,041 2,038 50,827 162,978 9 CREDITORS: Amounts falling due within one year Unincorporated Union 2013 2012 £ £ Amounts due to University 492,727 140,560 University loan 20,000 Trade creditors 70,493 94,076 Accruals and deferred income 4,459 29,707 Other creditors 671 8,098 588,350 131,881 10 FUNDS 01-Sep Incoming Outgoing 31-Jul 2012 Resources Resources 2013 £ £ £ £ Restricted funds 5,668 (5,668) Unrestricted funds 297,812 1,558,432 (2,238,890) (382,646) Total Funds 303,480 1,558,432 (2,244,558) (382,646) Restricted funds relate to fixed assets in the Unions shops. The costs relate to depreciation. 11 ANALYSIS OF NET ASSETS Unrestricted Restricted Total BETWEEN FUNDS Funds Funds Funds Fixed assets 90,565 - 90,565 Net current liabilities (473,211) (473,211) (382,646) - (382,646) 19 UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS (Continued) 12 CONTROL RELATIONSHIP Ultimate control of UWSU rests with its membership, represented by the University of Westminster Court of Governors. 13 RELATED PARTY TRANSACTIONS The Controlling party of the Union is the Union Executive, by virtue of the Trustees’ position as elected representatives. Subvention income is received from the University of Westminster. The income reported for the 13 month period ending 31 July 2013 amounted to £635,000 (2012: £805,000), compnsed of annual subvention of £720,000 less amounts attributed to August 2012 of £85,000, The Union was owed £27,780 by the University in respect of these sales at the end of the period (2012: £2,084). The University also provides a payroll service for the Union. At period end the Union owed £492,719 (2012: £133,509) for salaries and wages and £28 (2012: £7,051) in respect of other services. In addition, a £20,000 loan was received from the University. The Union holds shares in NUSSL wtich is involved in the negotiations of contracts between suppliers and a number of student unions for the ourchasing of some goods and services for them. 20 UNIVERSITY OF WESTMINSTER STUDENTS UNION Annual Report and Accounts for the Period Ended 31 July 2013 NOTES TO THE FINANCIAL STATEMENTS (Continued) 14 PENSIONS The Union participates in the Students’ Union Superannuation Scheme (SUSS), 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 onwards 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 SSW of the benefits 0 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 valuations 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. Salaries would increase at 3. per annum, equivalent to 0.5% per annum above Consumer Price 1o 20 Index inflation (or 0.3% above Retail Price Index inflation). Pensions accruing on the pre-CARE basis would revalue at 2.7% per annum. Other increases in deferment and in payment will remain at 3.2% other than those that are subject to a fixed increase. 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 contribution expressed in monetary terms intended to clear the ongoing funding deficit over an extended period of 20 (previously 15) years starting from 1 October 2012 and increasing each year by 3.2%. Deficit contributions have been apportioned between Participating Unions on the basis of accrued liabilities assuming that all of these liabilities relate to the current or last known employer. 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 contributions paid into the scheme by the Union in respect of eligible employees for the period ended 31 July 2013 amounted to £1,439 (2012: £1,247); additional payments included contribution to pension deficit payment of £12,591 (2012: £12,330). Defined Contribution Scheme Following the closure of the SUSS scheme to future accrual on 30 September 2011, the Union operates a defined contribution pension scheme for the benefit of certain employees based on a matched rate of 3- 6°/s. The assets of the scheme are administered in a fund independent from those of the Union. The total contributions payable into the scheme by the Union in respect of eligible employees for the period ended 31 July 2013 amounted to £4,289 (2012: £2,051). 21
"UWSU 2013 signed accounts - University of Westminster "