Teesside University Students’ Union

Report to those Charged with Governance

Year Ended 31 July 2015

ANDERSON BARROWCLIFF LLP

Chartered Accountants

TEESSIDE UNIVERSITY STUDENTS’ UNION

REPORT TO THOSE CHARGED WITH GOVERNANCE

YEAR ENDED 31 JULY 2015

Introduction

The points included within this report are the areas of weakness that we have noticed during the course

of our audit. They are not intended to be an exhaustive list of all accounting system weaknesses within

the Teesside University Students’ Union.

UNIVERSITY OF TEESSIDE STUDENTS’ UNION

REPORT TO THOSE CHARGED WITH GOVERNANCE

YEAR ENDED 31 JULY 2015

Salaried staff timesheets not approved, and unused holidays.

Observation

On review of a sample of salaried staff timesheets it appears there is no evidence of reviewing /

authorising timesheets by line managers.

It was also noted that two members of staff have over 5 day’s holiday entitlement left at the year end.

Per the contracts of employment a maximum of 5 days can be carried forward.

Implication

Salaried staff may be being paid or accruing time in lieu for unauthorised overtime.

The Students Union have accrued a cost of £6,525, for the two staff members with over 5 days holiday.

The total of the holiday pay accrual for salaried staff is £8,701.

Recommendation

All salaried staff who prepare timesheets should be approved by their line manager. Any overtime

should be agreed with their line manager.

Holidays should be monitored on a regular basis and communicated with employees that a maximum

of 5 holidays is allowed to be carried forward into the following year.

Client response

TEESSIDE UNIVERSITY STUDENTS’ UNION

REPORT TO THOSE CHARGED WITH GOVERNANCE

YEAR ENDED 31 JULY 2015

Purchase splits for Tees S U Limited

Observation

It was noted on review of the gross profit margins, the margins for Tees S U Limited appeared lower

than expected due to an inaccurate apportionment of purchases.

Implication

The results for Tees S U Limited may not be an accurate representation of how the company’s activities

are performing.

Recommendation

You should review the sales reports from the EPOS system and calculate an accurate recharge of

purchases for Tees S U Limited.

Client Response

After discussions during the audit, the purchases allocation were reviewed and amended. The corrected

apportionments have being used to prepare the accounts for Tees S U Limited.

UNIVERSITY OF TEESSIDE STUDENTS’ UNION

REPORT TO THOSE CHARGED WITH GOVERNANCE

YEAR ENDED 31 JULY 2015

Purchase Ledger Balances

Observation

As pointed out in prior years, the list of purchase ledger balances includes several supplier balances

totalling £2,139.60 which are over three months old.

Implication

The creditors could be overstated if they include amounts which are not actually due.

Recommendation

You should review your list of balances and ensure that the old amounts are valid creditors.

Where input VAT has been reclaimed and the invoice remains unpaid for over 6 months, the input vat

should be repaid.

Client Response

UNIVERSITY OF TEESSIDE STUDENTS’ UNION

REPORT TO THOSE CHARGED WITH GOVERNANCE

YEAR ENDED 31 JULY 2015

Employer allowance not claimed

Observation

The £2,000 employers allowance hasn’t being claimed for 2014/15 or 2015/16.

Implication

The Students’ Union is not receiving an allowance it is eligible for.

Recommendation

The employers allowance should be claimed for 2014/15 and 2015/16.

Client response

UNIVERSITY OF TEESSIDE STUDENTS’ UNION

REPORT TO THOSE CHARGED WITH GOVERNANCE

YEAR ENDED 31 JULY 2015

Clubs and societies restricted funds

Observation

It was noted that the clubs and societies restricted funds balance has being increasing year on year.

Implication

The funds aren’t being sufficiently used in the year to the benefit of the students in clubs and societies.

Recommendation

The balance for each club and society should be reviewed and funded accordingly for the students in

the year.

Client response