warwick su accounts 2010-11
DESCRIPTION
Warwick SU Accounts 2010-11TRANSCRIPT
WARWICK STUDENTS' UNION
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
For the period from 29 June 2010 to 31 July 2011
COMPANY REGISTRATION NUMBER: 07297865
CHARITY NUMBER: 1136894
CONTENTS
PAGE
Legal and Administrative Information 1 - 6
Annual Report of the Board of Trustees 7 - 19
Statement of the Board of Trustees' Responsibilities 20
Independent Auditors' Report 21 - 22
Group Statement of Financial Activity 23
Balance Sheets 24
Consolidated Cash Flow Statement 25
Principal Accounting Policies 26 - 29
Notes to the Financial Statements:
Note 1 Charitable Activity and Support Costs 30 - 31
Note 2 Governance Costs 31
Note 3 Net Incoming Resources for the Period 32
Note 4 Staff Costs 32 - 33
Note 5 Trustees' Remuneration and Expenses 33
Note 6 Tangible Fixed Assets 34
Note 7 Capital Commitments 34
Note 8 Fixed Asset Investments 35 - 36
Note 9 Stocks 36
Note 10 Debtors 37
Note 11 Creditors 37
Note 12 Provisions for Liabilities and Charges 38
Note 13 Restricted Funds 38
Note 14 Designated Funds 38
Note 15 Analysis of Net Assets between Funds 39
Note 16 Lease Commitments 39
Note 17 Cash Flow Statement 40
Note 18 Pension Scheme 41
Note 19 Related Party Transactions 42
Note 20 Merger 43
WARWICK STUDENTS' UNION
For the period ended 31 July 2011
LEGAL AND ADMINISTRATIVE INFORMATION
UNION WARWICK STUDENTS' UNION
CHARITABLE STATUS Warwick Students' Union is a charitable company limited by guarantee.
Warwick Students' Union is a charity established under the Education
Act 1994.
Warwick Students' Union charity registered with the Charity Commission
for England and Wales on 15 July 2010.
Registered UK charity number: 1136894
COMPANY Warwick Students' Union is a charitable company limited by guarantee
registered in England and Wales on 29 June 2010.
Registered company number: 7297865
REGISTERED OFFICE WARWICK STUDENTS' UNION
University of Warwick
Gibbet Hill Road
COVENTRY
CV4 7AL
BOARD OF TRUSTEES Search and Nominations Committee ensures that Warwick Students'
Union has effective systems for the appointment and training of trustees
and that the membership of the Board of Trustees is appropriate.
Sabbatical Officers Appointed Resigned
2010-2011 D Stevens President / Chair 1 August 2010 31 July 2011
S Ruston Education 1 August 2010
S Stanley Finance 1 August 2010 31 July 2011
C Luck Communications 1 August 2010
A White Societies 1 August 2010 31 July 2011
G Whitworth Sports 1 August 2010
L Boe Welfare 1 August 2010
2011-2012 L Boe President 1 August 2011 re-elected
S Ruston Education 1 August 2011 re-elected
G Whitworth Union Development 1 August 2011 re-elected
C Luck Democracy 1 August 2011 re-elected
M Rogers Societies 1 August 2011
C Sury Sports 1 August 2011
I John Welfare 1 August 2011
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 1
BOARD of TRUSTEES continued
UNIVERSITY of WARWICK STUDENTS' UNION Appointed Resigned
Student Trustees B Wood Vice Chair 24 November 2008 13 July 2011
S Stanley 24 November 2008 28 June 2010
A Clarey * 24 November 2008 28 June 2010
C Watts * 24 November 2008 28 June 2010
M Wassermann 16 February 2009 28 June 2010
External Trustees T Smeaton * 24 November 2008 31 July 2010
S P Baylis * 9 March 2009 13 July 2011
L C Morrison * 10 May 2010 31 July 2010
T W I King * 10 May 2010 31 July 2010
J Ryder * 10 May 2010 31 July 2010
On 1 August 2010 the trade, assets and liabilites transferred from University of Warwick Students'
Union (an unincorporated exempt charity) to Warwick Students' Union (an incorporated exempt charity).
The designated trustees also transferred to the new entity, Warwick Students' Union.
Board of Trustee members marked with an asterisk (*) transferred to Warwick Students' Union.
WARWICK STUDENTS' UNION Appointed Resigned
Student Trustees A Clarey 29 June 2010
C Watts 29 June 2010
T Evans 1 August 2010 13 July 2011
V N J Fowler 1 August 2010 13 July 2011
J L E Wolfson 1 August 2010
C Olgilvie 1 August 2011
A K S Mou 1 August 2011
S Cragg 1 August 2011
LEGAL AND ADMINISTRATIVE INFORMATION
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 2
BOARD of TRUSTEES continued
WARWICK STUDENTS' UNION continued Appointed Resigned
External Trustees T Smeaton 1 August 2010
S P Baylis 1 August 2010 13 July 2011
L C Morrison 1 August 2010 12 October 2011
T W I King 1 August 2010
J Ryder 1 August 2010
SENIOR MANAGEMENT Appointed
Chief Executive J Clements 14 July 2008
LEGAL AND ADMINISTRATIVE INFORMATION
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 3
COMPANY STUDENTS' UNION SERVICES WARWICK LIMITED
GOVERNING INSTRUMENT The company is a limited company with share capital. It is
governed by its Memorandum and Articles of Association.
COMPANY REGISTERED
NUMBER 2197761
DIRECTORS The following director was appointed on 1 August 2010 and
resigned on 31 July 2011:
S Stanley
The following director was appointed on 1st August 2010:
G Whitworth
The following director was appointed on 18 November 2010:
A H Smith
The following director was appointed on 1 August 2011:
C Sury
COMPANY SECRETARY J Clements
REGISTERED OFFICE SUHQ
Warwick Students' Union
University of Warwick
Gibbet Hill Road
Coventry
CV4 7AL
LEGAL AND ADMINISTRATIVE INFORMATION
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 4
COMPANY MEMBERSHIP SOLUTIONS LIMITED
GOVERNING INSTRUMENT The company is a limited company with share capital. It is
governed by its Memorandum and Articles of Association.
COMPANY REGISTERED
NUMBER 5525449
DIRECTORS The following director has held office since incorporation
2 August 2005:
C Horton
The following director was appointed on 29 November 2007:
S Gilling
The following director was appointed on 12 July 2008:
J Clements
The following director was appointed on 1 August 2009:
J Bonsall
The following directors were appointed on 1 August 2010 and
resigned on 31 July 2011:
D Stevens
S Stanley
The following directors were appointed on 1 August 2011:
L Boe
G Whitworth
COMPANY SECRETARY J Clements
REGISTERED OFFICE SUHQ
Warwick Students' Union
University of Warwick
Gibbet Hill Road
Coventry
CV4 7AL
LEGAL AND ADMINISTRATIVE INFORMATION
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 5
LEGAL AND ADMINISTRATIVE INFORMATION
BANKERS NatWest plc
24 Broadgate
Coventry
West Midlands
CV1 1ZZ
Barclays Bank plc
25 High Street
Coventry
West Midlands
CV1 5QZ
SOLICITORS Band Hatton & Co
1 Copthall House
Station Square
Coventry
West Midlands
CV1 2FY
Bates Wells and Braithwate London LLP
2 - 6 Cannon Street
London
EC4M 6YH
AUDITORS BakerTilly UK Audit LLP
Chartered Accountants
St Philips Point
Temple Row
Birmingham
B2 5AF
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 6
ANNUAL REPORT OF THE BOARD OF TRUSTEES
The Board of Trustees of the Union submit their Annual Report for the period ended 31 July 2011
which includes the administrative information set out on pages 1 to 6 together with the audited
accounts for the year. This is the first year that the Board of Trustees have presented this in
accordance with the Accounting and Reporting by Charities published in March 2005 (Statement
of Recommended Practice 2005).
MEMBERS OF THE UNION
Full Members
All registered students of the University of Warwick except those who exercise their right not to be
a member under clause 22 (c) c) of the Education Act 1994. Sabbatical Officers of the Union are
full members of the Union.
Associate Members
Those persons admitted to membership by the Union Council or a delegated officer, who have paid
any required fee.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Warwick Students' Union (the Union) is constituted under the Education Act 1994 as a charity
with internal rules and regulations approved by University Council, the governing body of the
University of Warwick. The Union's charitable objects under the Act, to advance the University's
educational purposes by providing representation and support for the students of the University
of Warwick, are supplemented by the further object of helping members to develop their own
charitable activities as participants in civil society.
Following the publication of the Charities Act 2006, Warwick Students' Union has moved from the
traditional unincorporated association model and has registered as a charity with the Charity
Commission and incorporated as a company limited by guarantee, as of 1 August 2010.
BOARD OF TRUSTEES
The Union is administered by its Board of Trustees comprising of:-
- up to five appointed external lay members
- up to six appointed full student members who are not Sabbatical Officers
- up to seven student Sabbatical Officers (including the President of the Union)
The President of the Union acts as Chair of the Board of Trustees.
The appointed Student Trustees are recruited to the Board and selected by the Trustees and
Union Council to serve a maximum term of two years.
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
BOARD OF TRUSTEES continued
Officers of the Union
The Officers of the Union are:
- Sabbatical Officer Trustees
- Chair and Deputy Chair of Union Council
- Chairs and members of Union Standing and Representation Committee
There are seven Sabbatical Officer Trustees including a President, Deputy President and a Sabbatical
Officer with responsiblity for finance.
The Sabbatical Officers are officer trustees elected through a secret ballot by the members each
year, normally serving for one year in office but can serve a second term if re-elected. These are
full time posts remunerated as authorised by the Education Act and the Memorandum and Articles
of Warwick Students' Union.
Trustees Induction and Training
Upon appointment all trustees receive a variety of information through their induction. Trustees
are briefed on their legal obligations and other trustee responsibilities. The Sabbatical Officers are
new to the Board every year, so they undergo more intensive, in depth training to ensure that they
are fully aware of their roles and responsibilities and can perform their duties to the best of their
abilities as soon as possible. There is an on-going training programme for Trustees for issues which
may occur during their term of office.
TRUSTEES POWERS AND RESPONSIBILITIES
Trustees' General Authority
The Board of Trustees has ultimate responsibility for the financial matters and procedures of the
Union. The Board of Trustees may choose to prohibit the implementation of any policy
recommended by Union Council which has financial implications if it is passed without a realistic
financial plan, is not legal or may not be in the best interests of the Union.
The Board of Trustees is assisted by committees where appropriate and has delegated the
day-to-day running of Warwick Students' Union to the Chief Executive.
Committees
The Board of Trustees meets at least five times a year to receive reports from committees,
Sabbatical Officers, Senior Management and the Chief Executive, to review the Union's
performance and administration generally and to agree policy issues arising, subject to
consultation with Union Council.
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
STRUCTURE, GOVERNANCE AND MANAGEMENT continued
Committees continued
The Board of Trustees is supported by four committees which focus on certain key aspects of
Warwick Students' Union governance and management:-
- The Executive Committee
- The Search and Nominations Committee
- The Audit and Risk Committee
- The Finance and Human Resources Committee
The Executive Committee
This consists of the Sabbatical Officer Trustees and Part Time Officers. The Executive Committee
covers aspects of student voice such as representation and campaigning focusing on policy
implementation.
Search and Nominations Committee
This ensures that new trustees are recruited, inducted and developed properly. They also have
responsibility for recruitment of the Chief Executive.
Audit and Risk Committee
This monitors the Union's finances, risk profile and other aspects which could impact on Warwick
Students' Union's organisational health as well as ensuring that the Union is complying with relevant
legislation.
Finance and Human Resources Committee
This examines issues relating to finance. It scrutinises the management and annual accounts,
financial plans and annual budgets. It also monitors issues relating to staff including the staff
survey results, pay changes, training and development as well as staff policies.
UNION COUNCIL
The Union operates on democratic principles, working for and with our members, the students of
the University of Warwick. The voice of students is represented by Union Council, elected by and
from members of the Union.
The Unions' policy making bodies are:
- General Meetings
- Referenda
- Union Council
Union policy may be amended by resolution of a Referendum, General Meeting or Union Council.
The composition and proceedings of Union Council are set out in the Bye Laws.
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
STRUCTURE, GOVERNANCE AND MANAGEMENT continued
UNION COUNCIL continued
Policies passed by Referendum cannot be overturned without a further Referendum or General
Meeting. Policies passed by General Meetings cannot be overturned without being debated and
voted on at a further General Meeting.
The Union maintains a policy file and record of lapsed policies. Policies lapse after two years
unless renewed by Union Council who will specify the next renewal date.
The Union Council receives a quarterly report from the Trustees.
RELATIONSHIP WITH THE UNIVERSITY OF WARWICK
The relationship between the University and the Union is established in the Charter, Statutes,
Ordinances and Regulations of the University. The Union receives a block grant from the
University and occupies a building owned by the University Foundation Fund which is leased to
the Union at an agreed rent.
There is no reason to believe that the block grant or equivalent support from the University of
Warwick will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on
the University to take such steps as are reasonably practicable to ensure that the Union operates
in a fair and democratic manner and is accountable for its finances.
Warwick Students' Union therefore works alongside the University of Warwick to ensure that the
affairs of the Union are properly conducted and that the educational and welfare needs of the
Union's members are met.
RISK MANAGEMENT
The Trustee Board has examined the main strategic business and operational risks faced by the
Union. A risk register has been established and is updated at least annually. Where appropriate,
systems and procedures have been established to mitigate the risks the Union faces and these
are periodically reviewed to ensure that they continue to meet the needs of the Union.
Budgetary and internal control risks are minimised by the implementation of procedures for
authorisation of all transactions and projects.
Procedures are in place to ensure compliance with the health and safety of staff, volunteers and
participants on all activities organised by the Union.
These procedures are periodically reviewed to ensure they continue to meet the needs of the Union.
WARWICK STUDENTS' UNION
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
AIMS, OBJECTIVES AND ACTIVITIES
Our Mission
Warwick Students' Union - creating a better experience for students at Warwick.
Our Objects
The objects of the Union are the advancement of education of students at the University of Warwick
for the public benefit by:-
(i) promoting the interests and welfare of students at Warwick Students' Union during their
course of study and representing, supporting and advising students.
(ii) being the recognised representative channel between students and the University of
Warwick and any other external bodies; and
(iii) providing social, cultural, sporting and recreational activities and forums for discussions and
debate for the personal development of its students.
Our Values
We are:-
- Democratic, student led, member focussed and representative
- the Independent voice of Warwick students
- Ethical, fair, principled, transparent and environmentally sound
- Fun, friendly, vibrant and entertaining
- Informative, supportive, knowledgeable, responsive and useful
- Enriching, helping students develop and nurture their aspirations
- Accesssible, diverse, welcoming, tolerant and inclusive
In pursuit of this vision, the Union will ensure the diversity of its membership is recognised, valued
and supported and as such has established departments and services for use by its members and
to support its work with the University of Warwick and other organisations on behalf of students.
These include the Union's Advice and Welfare Centre, Democracy and Representation Office,
Student Activities and Development Office, the Student Resources Centre, the Venue, Bars and
Catering outlets.
The Executive Officers represent students by sitting on key committees and working groups of the
University of Warwick. This ensures that the student voice is heard and responded to at all levels of
the University to enhance the student experience. Student representatives now sit on and
contribute to over 30 University committees and through the Staff - Student Liaison Committee
system (SSLC) approximately 650 students effectively liaise with University departments to
raise student concerns and work to improve the teaching and learning experiences of students.
WARWICK STUDENTS' UNION
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
AIMS, OBJECTIVES AND ACTIVITIES continued
The Union's Executive Officers also meet regularly with Local Authorities, local Primary Care Trusts
and other providers of public services affecting students.
To further enhance the student experience, Warwick Students' Union involves and supports students
from all walks of life to get involved with both the University and local community by actively promoting
the benefits of volunteering in student-led activities such as Warwick Volunteers and the Inspire scheme.
This involves students visiting comprehensive schools in the West Midlands area to talk about their
lives as students with pupils who may not have considered embarking on a course in higher education.
Warwick Students' Union also supports approximately 75 sports clubs and 300 student societies offering
students a wide range of academic, social, cultural, charitable and interest based groups. Students
have the opportunity to meet new people and share their interests as well as develop transferrable
skills.
ACHIEVEMENTS AND PERFORMANCE
The 2010-11 year was a year of transition as it was the final year of the previous strategic plan. Warwick
Students' Union achieved the following published objectives for 2010-11:
Objective Achievement
Our purpose:
Number of people who feel Warwick SU Target at least 85% - achieved 82%
has contributed positively to their time at
Warwick (source: Big 5 Survey) The result was higher than anticipated and a real
cause for celebration at a time when the Union
was looking to the future as part of the update
of the new Strategic Plan.
Representation:
Achieve Voter Turnout of 30% of members Voter turnout 356 ahead of the 5,200 target
in Officer Elections
A really pleasing result. It is hoped that this strong
performance can be built on with the work
currently underway on the Democracy Review.
Involvement:
Increase the number of students joining Memberships increased by 528 on 16,350 target
sports clubs and societies
Warwick Sport in particular did well with over 6,000
student memberships covering a wide variety of
activities from archery, ice hockey to ballroom dancing
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 12
ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
ACHIEVEMENTS AND PERFORMANCE continued
Objective Achievement
Engagement:
% of students who feel the SU listens to Target at least 50% - achieved 29%
feedback (source: Big 5 Survey)
This result was disappointing and the Union looked
closely at ways in which both feedback could be
collated and the positive impacts and actions taken
communicated back to members. Rant Week and
Have Your Say were introduced as well as an
information campaign - You Said We Did.
Work on this will be on-going.
Our people:
Achieve IIP Accreditation 2011 Achieved
Our finances:
Achieve planned surplus of £57k Achieved a surplus of £265k
A really good result which helped to build back reserves
Environmental impact:
Achieve at least a silver level in Achieved Gold
Green Impact Awards
FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014
During 2011 Warwick Students' Union launched it's new strategic plan for 2011-2014. This plan
reflects the comments and feedback of members responding to questions and research undertaken
by the Union. The Union's overall strategic objectives are reviewed every three years.
The detailed actions identified in the plan will be reviewed each year to account for any changes to
student population, changes to Union policy or changes as a result of the manifestos of the students
elected to represent the members.
The plan centres around seven key values (previously outlined in the Aims, Objectives and Activities
section). These values will help the Union the create a better experience for students at Warwick.
WARWICK STUDENTS' UNION
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014 continued
Several key action points emerged from this review:
From the Membership
- The membership want greater exploitation of technology for communication, including
work on the Union website to ensure it is up-to-date and attractive.
- The importance of the Union operating ethically and with environmental impact in mind.
- The importance of transparency around Union processes and structures.
- There are frustrations around the bureaucracy with managing funds for societies. The
procedures and regulations around these funds needs better explanation.
Future Challenges
- Pensions are in crisis in the UK and this will impact on the perception by staff of benefits.
- There will be further legislative changes for pensions that require compliance.
- The Union tries to do too much for it's resources and needs to ensure that it doesn't
over promise and not deliver.
- To build back the Union's reserves position after the financial impact of the redevelopment
of the Union's facilties.
- To maintain the Union's reputation with key stakeholders such as the University.
Other Potential Impacts
- The Government may change licensing laws to decrease alcohol sales.
- There may be further increases to VAT.
- Sponsorship opportunities may decrease in certain industry sectors.
- Pay settlements may increase above the Union's financial plan estimates.
- The Union's membership research is insufficient.
Headline Key Performace Indicators (KPI's)
Well run organisations set clear objectives each year and communicate these to everyone involved. A
crucial component of these objectives is being able to see whether thay have been successfully
achieved. The measures put in place are Key Performance Indicators (KPI's) and they are - in simple
terms - the way of benchmarking achievement relating to aims for the year.
Seven areas were identified for monitoring with KPI's during the 2011-12 financial year:
- Membership Participation: Membership numbers - Warwick Sport and Societies Federation
- Representation: Voter turn out in autumn and officer elections
- Communications: % of students voting that the website is at least average (Big 5 Survey)
- Staff: % of staff who feel valued by the Union (Staff Survey)
- Finance: Achieve or exceed budget surplus of £49k for 2011-12
- Impact: % of people who feel that the Union has contributed positively to their time at Warwick
- Environmental Impact: Achieve at least a silver Green Impact Award
WARWICK STUDENTS' UNION
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014 continued
Review: Membership Services
During 2011-12 there will be a review of Membership Services. This will look at the Union's strategy
and members feed back. This will shape the key services delivered to students such as advice and
welfare, representation, democracy and student activities for the Union going forward.
Review: Democracy
Running alongside the review of Membership Services will be the Democracy Review. This will look at
the structures which allow members to participate and shape decision making. Part of this will be
a fresh look at the current Sabbatical Officer roles to ensure that they reflect the views and needs of the
Union's members.
FINANCIAL REVIEW
As a result of the changes to the Charities Act 2006, Warwick Students' Union created a new company
limited by guarantee on 29 June 2010 and registered with the Charity Commission on 15 July 2010.
All the assets and liabilities held by the previous unincorporated membership association were
transferred to the new company on 1 August 2010.
These are the first accounts presented according to the Charity Commission's Statement of
Recommended Practice (2005) format. Comparatives for 2009-10 relating to the unincorporated
membership association have been restated to reflect SORP 2005 reporting.
Income and Expenditure
The overall surplus for the year was £265,297 (2010: £566,876). This represents 4% of total incoming
resources and was £207,750 ahead of the budget for the year of £57,547.
This was the second good financial year for the Union and the first full year of trade in the newly
refurbished building. This enabled the Board of Trustees to approve £180,000 to be transferred from
general reserves to a designated reserve for future building refurbishment.
Total incoming resources increased by £272,495 to £6,689,923 (2010: £6,417,428). The grant
contribution from the University was down overall by £124,723. This grant is made up of two elements -
recurrent and non-recurrent grant. The annual recurrent grant actually increased by £293,595 to
£1,713,391 (2010: £1,419,798). This additional funding included a modest inflationary increase,
contribution for increased pension costs and an amount to continue supporting the Union with the
excellent work it undertakes on the Student-Staff Liaison Committees (SSLC'S). The prior year
non-recurrent grant of £473,250 was a one-off award to assist the Union with the impact of the closure
during the building redevelopment.
The Food and Beverage outlets traded very well contributing £78,308 (2010: £54,421) and with
income £250,507 ahead of last year - £2,478,250 (2010: £2,227,743). This was the first year of full
WARWICK STUDENTS' UNION
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
FINANCIAL REVIEW continued
trade out of the newly refurbished building and strong trading performances were turned in by the
Union's baguettes-to-order outlet: The Bread Oven, the Union's pub: The Dirty Duck and the Union's tea
shop: CuriosiTea.
The story wasn't the same for the Union's Venue, The Copper Rooms. Since the original proposal in 2006
for the building redevelopment the business model has changed. The market for live music is now very
different and students social habits have changed. This is not just happening at Warwick. There is change
nationally in the way that live music venues operate. Disappointingly the Venues did not increase income
significantly - only £27,310 increase on last year to £1,252,757 (2010: £1,225,447). Costs also
increased in line and action was taken during the year to scale back the programmes to minimise losses.
The budget for the 2011-12 year is more realistic and to date the financial performance of the Venue
is good.
Total Resources Expended increased by £574,074 to £6,424,626 (2010: 5,850,552). This reflects
the new rental charge payable to the University of Warwick Foundation Fund of £450,000 per annum
for the Union buildings.
Students' Union Services Warwick Limited
This is the subsidiary company for non-primary purpose trading. Turnover for the company was down
£87,962 on the previous year at £233,763 (2010: 321,725). The 2009-10 year included some
one-off summer conference trade which was sadly not repeated in summer 2011.
Students' Union Services Warwick Limited made a donation under gift aid of £118,461 (2010: £167,229)
to Warwick Students' Union. This was a decrease of £48,768 on the previous year.
It is anticipated that going forward Students' Union Services Warwick Limited will be impacted by the
current economic climate and the budgetted operating profit for the 2011-12 financial year is £38,145.
This reflects the reduction in conference and vacation bookings as well as income generated from
external room hire.
Membership Solutions Limited
The 2010-11 financial year saw Membership Solutions Limited (MSL) making a transfer under gift aid to
Warwick Students' Union for the first time of £125,658 (2010: nil).
This was a good year for MSL with the delivery of the NUS website - NUS Connect see:
http://www.nusconnect.org.uk/.
Turnover for the company increased by £151,553 to £352,825 (2010: £201, 272). During the 2010-11
financial year MSL increased its client client base to approximately 30 students' unions nationally.
MSL made profits on ordinary activities before taxation of £5,467 (2010: £28,957) finally utilising the
brought forward losses from previous years.
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ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
FINANCIAL REVIEW continued
Net Assets and Cash Flow
Total Net Assets increased by £265,297 to £327,727 (2010: £62,430). This consisted of the following
movements:
- the net book value of Total Fixed Assets fell by £37,858 to £109,578 (2010: £147,436).
This is due to the transfer of Tangible Fixed Assets at net book value on 1 August 2010
as detailed in Tangible Fixed Assets Note 6.
- the Current Assets increased by £230,286 to £1,185,369 (2010: £955,083).
This included an increase in cash balances and short term deposits of £217,084
(see Consolidated Cash Flow Statement). Debtor balances increased by £12,989
(Note 10) due to an increase in Trade Debtors.
- the value of Creditors increased by £2,955 to £991,696 (2010: £988,741).
This is mostly due to an increase in the amounts held as custodian funds for sports
clubs and student societies (Note 11).
- the value of Provisions for Liabilities was reduced to nil at year end (2010: £75,824)
This was a provision set aside for redundancy costs following the staffing restructure
in 2010.
These results reflected a much healthier balance sheet position for the Union at 31 July 2011 as it
builds back it's reserves.
Reserves
Free unrestricted general reserves at 31 July 2011 increased by £102,573 to £135,003
(2010: £62,430). The Board of Trustees also approved that £180,000 be set aside in a designated
reserve for building refurbishment. At 31 July 2011 total unrestricted reserves were £315,003
(2010: £62,430) taking the reserves back to 2006-07 levels prior to the building redevelopment.
This is a pleasing increase in reserves and the contribution for the year was ahead of budget. During
the coming year the Board of Trustees will consider what level of reserves the Union will require to
cover the Union for any unforseen changes in commercial operations as well as future investment in
infrastructure.
Custodian Funds
Warwick Students' Union acts as a custodian for funds raised by the many sports clubs, student
societies and RAG (raising and giving) affiliated to the Union. These funds are held in a separate
bank account and the year end balances for each sports club and society are within the Union's
creditor balance (see Note 11). The balance held for sports clubs and student societies at
31 July 2011 was £382,836 (2010: £324,450). This includes £7,321 held at the end of the year
for distribution to charities.
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 17
ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
FINANCIAL REVIEW continued
Custodian Funds continued
The income and expenditure for the student sports clubs and societies is not reported within the
Union's Statement of Financial Activity. During the financial year the sports clubs and societies
received £1,541,106 of income. Included in this were grants from the Union of £173,023 for
Warwick Sport and £45,933 from the Societies Federation for student societies. These grant awards
were spent in the year and appear in the Union's Statement of Financial Activity as a cost in the
"Student Activities, Societies and Sports Clubs" line.
Future Funding
Every year the Union produces a Five Year Plan. This process enables the Union to review the current
and future financial performance of its activities. The plan (including the budget for the 2011-12
financial year) was approved by the Board of Trustees in June 2011.
The budget for 2011-12 forecasts a surplus for the Union of £48,663 (representing 0.7% of income)
and includes an approved block grant from the University of Warwick of £1,832,775
(2010: £1,768,325).
The current Five Year Plan includes an annual block grant from the University of Warwick across the
planning period of at least the level of the 2011-12 approved grant. Although the Union has no
definitive guarantee that funding will continue from the University at these levels, the Union will
continue it's dialogue with the University about the future and monitor the impacts of the changes in
Higher Education Funding.
The Capital Commitments note (Note 7) reports authorised but not yet contracted expenditure of
£60,000 this is directly attributable to the refurbishment of the Union's Xananas restaurant. This
project was delayed over the summer of 2011 and it is hoped that the majority of major work will be
completed before the end of the financial year 31 July 2012.
The Union is under going a review of Membership Services and any impacts on the capital plan will
be included during the 2012 Five Year Plan.
The Union potentially faces significant financial risk as a result of the current pension deficit
reported from the Students' Union Superannuation Scheme (SUSS). This is a defined benefit scheme
whose membership consists of students' unions and related bodies throughout the country (see
Note 18). This scheme closed to future accrual on 30 September 2011.
The Union's contributions towards the pension deficit will have doubled in two years from the level
paid in 2009-10. The amount contributed at 31 July 2011 was £102,906 (2010: £72,060).
Provision for increases in pension deficit contribution costs have been included in the current Five Year
Plan based on the forecast on-going increase in contribution rate of 3.2% per annum.
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 18
ANNUAL REPORT OF THE BOARD OF TRUSTEES continued
INVESTMENT POLICY
The Trustees objective is to invest surplus cash to best advantage with minimum risk. The Union
has taken a prudent stance with funds being held in high interest bearing deposit accounts for
periods not exceeding 6 months. Cash funds so invested are usually over a minimum balance of
£100,000 and must be placed with an approved and reputable banking institution.
Investment returns in the year reflect the stated policy as well a the lower interest rates available
due to market conditions.
This policy will be reviewed in the coming year to ensure that it continues to reflect best advantage
with minimum risk.
RESERVES POLICY
Following the Union's registration with the Charity Commission the Trustees will be considering
the level of free reserves required.
Prior to incorporation and transfer to the incorporated charity limited by guarantee the Union's
free reserves position was £62,430 as set out in Note 15.
Designated reserves are held to fund building refurbishment plans.
AUDITORS
BakerTilly UK Audit LLP has indicated its willingness to continue in office.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
The Board of Trustees members who were in office on the date of approval of these financial
statements have confirmed, as far as they are aware, that there is no relevant audit information
of which the auditors are unaware. Each member of the Board of Trustees members have
confirmed that they have taken all the steps that they ought to have taken as Board of Trustees
members in order to make themselves aware of any relevant audit information and to establish
that it has been communicated to the auditor.
On behalf of the Board of Trustees.
L Boe G Whitworth
President Union Development Officer
8 February 2012
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 19
The Board of Trustees are responsible for preparing the Report of the Board of Trustees and the
financial statements in accordance with applicable law and regulations.
Charity law requires the Board of Trustees to prepare financial statements for each financial
year. Under that law the Board of Trustees have elected to prepare the financial statements
in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law). Under charity law the Board of 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 Union and the group and of the surplus or deficit of the group for that
period.
In preparing those financial statements, the Board of Trustees are required to:-
a) select suitable accounting policies and then apply them consistently;
b) make judgements and estimates that are reasonable and prudent;
c) state whether applicable UK Accounting Standards have been followed,
subject to any material departures disclosed and explained in the financial
statements.
d) prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the group and the Union will continue in business.
The Board of Trustees are responsible for keeping adequate accounting records that are
sufficient to show and explain the group's and the Union's transactions and disclose with
reasonable accuracy at any time the financial position of the Union. They are also responsible
for safeguarding the assets of the group and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
STATEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 20
We have audited the financial statements of the University of Warwick Students' Union for the period
29 June to 31 July 2011 on pages 23 to 43. 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 charitable company's
members as a body, for our audit work, for this report, or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF BOARD OF TRUSTEES AND AUDITOR
As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the
directors of the 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.
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 (APB's) Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
A description of the scope of an audit of financial statements is provided on the APB's website at:
www.frc.org.uk/apb/scope
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 charitable company's
affairs as at 31 July 2011 and of its incoming resources and application of resources,
including its income and expenditure, for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
- have been prepared in accordance with the Companies Act 2006.
INDEPENDENT AUDITORS' REPORT to the Members of Warwick Students' Union
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 21
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:
- the charity has not kept adequate accounting records, or returns adequate for our audit
have not been received from branches not visited by us; or
- the 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.
PAUL OXTOBY (Senior Statutory Auditor)
For and on behalf of:
BAKER TILLY UK AUDIT LLP
Statutory Auditor
Chartered Accountants
St Philips Point
Temple Row
Birmingham
B2 5AF
8 February 2012
INDEPENDENT AUDITORS' REPORT continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 22
GROUP STATEMENT OF FINANCIAL ACTIVITY
Unrestricted Designated Restricted 2011 2010
Funds Funds Funds TOTAL TOTAL
Note £ £ £ £ £
INCOMING RESOURCES
Incoming resources from generated funds:
Voluntary Income
- University Grant 1,768,325 - - 1,768,325 1,893,048
Activities for Generating Funds
- Commercial income 559,062 - - 559,062 505,109
- Marketing and sponsorship 137,385 - - 137,385 137,996
Investment Income - Interest Receviable 337 - - 337 3,414
Incoming Resources from Charitable Activities
- Food and beverage 2,478,250 - - 2,478,250 2,227,743
- Venues, events and entertainments 1,252,757 - - 1,252,757 1,225,447
- Administration and support services 17,105 - - 17,105 9,051
- Student services and representation 16,464 - 17,604 34,068 25,244
- Student activities, societies and sports clubs 96,609 - 346,025 442,634 390,376
TOTAL INCOMING RESOURCES 6,326,294 - 363,629 6,689,923 6,417,428
RESOURCES EXPENDED
Cost of Generating Funds
- Commercial activities 282,995 - - 282,995 238,038
Charitable Activities for Students
- Food and beverage 1 2,399,942 - - 2,399,942 2,173,322
- Venues, events and entertainments 1 1,588,284 - - 1,588,284 1,530,897
- Student membership services 1 530,572 - 2,897 533,469 520,304
- Representation and affiliations 1 441,841 - 1,985 443,826 394,239
- Student activities, societies and sports clubs 1 789,266 - 346,023 1,135,289 946,916
Governance costs 2 40,821 40,821 46,836
TOTAL RESOURCES EXPENDED 6,073,721 - 350,905 6,424,626 5,850,552
NET INCOMING RESOURCES for the PERIOD 252,573 - 12,724 265,297 566,876
Transfers between Funds 14 / 15 (180,000) 180,000 - - -
Fund Balances Brought Forward 62,430 - - 62,430 (504,446)
TOTAL FUNDS CARRIED FORWARD 135,003 180,000 12,724 327,727 62,430
On 1 August 2010 the assets, liabilities and trade of the University of Warwick Students' Union (an unincorporated exempt
charity) were transferred to Warwick Students' Union (an incorporated exempt charity). All incoming resources and
resources expended derive from continuing activities. The current year figures represent the trading activities from
1 August 2010 and the comparative period represents the transactions for the year 1 August 2009 to 31 July 2010.
This statement of financial activity represents a consolidation of the income and costs for Warwick Students' Union,
Students' Union Services Warwick Limited and Membership Solutions Limited.
No separate Statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been
included in the statement of financial activities.
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 23
GROUP UNION
2011 2010 2011 2010
Note £ £ £ £
FIXED ASSETS
Tangible fixed assets 6 109,578 147,436 109,578 147,436
Investments 8 24,476 24,476 16,341 8,534
134,054 171,912 125,919 155,970
CURRENT ASSETS
Stocks 9 29,204 28,991 29,204 28,991
Debtors 10 176,441 163,452 313,132 242,668
Short-term deposits 211,577 355,519 54,604 342,857
Cash at bank and in hand 768,147 407,121 762,572 334,397
1,185,369 955,083 1,159,512 948,913
CREDITORS: Amounts falling
due within one year 11 (991,696) (988,741) (956,289) (959,748)
NET CURRENT ASSETS / (LIABILITIES) 193,673 (33,658) 203,223 (10,835)
PROVISIONS for LIABILITIES - (75,824) - (75,824)
NET ASSETS 327,727 62,430 329,142 69,311
REPRESENTING:
CHARITABLE FUNDS
Restricted Funds 13 12,724 - 12,724 -
Unrestricted Funds
- General 135,003 62,430 136,418 69,311
- Designated 14 180,000 - 180,000 -
TOTAL FUNDS 327,727 62,430 329,142 69,311
The financial statements on pages 23 to 43 were approved by the the Board of Trustees and authorised for
issue on 8 February 2012 and are signed on its behalf by:
L Boe G Whitworth
President Union Development Officer
The Group Balance Sheet represents a consolidation of the Balance Sheets of Warwick Students' Union,
Students' Union Services Warwick Limited and Membership Solutions Limited.
BALANCE SHEETS Company Registration Number: 07297865
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 24
2011 2010
Note £ £
Net cash inflow from operating activities 17(a) 280,620 631,773
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest receivable 17(a) 337 3,414
Taxation - -
CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Payments to acquire tangible fixed assets 6 (63,873) (159,613)
Increase in Cash in the Period 217,084 475,574
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
2011 2010
£ £
Increase in cash in the period 217,084 475,574
Change in net funds resulting from non-cash flows - -
Movement in net funds in the period 17(b) 217,084 475,574
Net funds at 1 August 762,640 287,066
Net funds at 31 July 17(b) 979,724 762,640
CONSOLIDATED CASH FLOW STATEMENT
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 25
PRINCIPAL ACCOUNTING POLICIES
PRESENTATION OF ACCOUNTS
The Union's Articles of governance require the trustees to prepare accounts for each financial year.
These accounts represent a consolidation of the accounts of Warwick Students' Union and its
subsidiary undertakings Students' Union Services Warwick Limited and Membership Solutions
Limited.
BASIS OF ACCOUNTING
The accounts have been prepared under the Charities Act 1993 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 and Financial Reporting
Standards (UK Generally Accepted Accounting Practice).
FUTURE FUNDING
The current economic conditions create uncertainty particularly over the level of demand for the
Union's services and the level of future income provided under the block grant agreement with the
University of Warwick.
The Union's forecasts and projections, taking account of reasonably possible changes in trading
performance show that the Union should be able to operate within the level of its current facilities
for at least twelve months from the date of approval of these accounts. The Union has held
discussions with the University about future funding and no matters have been drawn to its
attention to suggest that future funding may not be forthcoming at budgeted levels.
The Trustees have a reasonable expectation that the Union has adequate resources to continue
in operational existence for the foreseeable future. Thus they continue to adopt the going concern
basis of accounting in preparing the annual financial statements.
MERGER AND COMPARATIVE AMOUNTS
On 1 August 2010 the trade, assets and liabilities of the University of Warwick Students' Union (an
unincorporated exempt charity) were transferred to Warwick Students' Union (incorporated registered
charity). This transfer meets the definition of a group reconstruction in accordance with Financial
Reporting Standard 6 - Acquisitions and Mergers - and has been accounted for in line with the
principles of merger accounting.
In line with the principles of merger accounting, comparative balances are shown throughout
representing the activities of the University of Warwick Students' Union (an unincorporated body) for
the period 1 August 2009 to 31 July 2010.
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 26
BASIS OF CONSOLIDATION
The financial statements consolidate the financial statements of the charitable company and its
subsidiary undertakings. Inter-group profits are eliminated on consolidation. The consolidation is
carried out on a line-by-line basis. A separate Statement of Financial Activities (SoFA) for the charity
itself is not presented because the charity has taken advantage of the exemption afforded by Section
408 of the Companies Act 2006 and paragraph 397 of the Charities SORP 2005.
For the charitable company for the period ended 31 July:- 2011 2010
£ £
Incoming resources 6,347,454 6,061,660
Resources expended 6,087,623 5,589,896
Net incoming resources 259,831 471,764
As disclosed in note 7 Fixed Asset Investments, the minority interest arising on the consolidation of
Membership Solutions Limited has not been reflected in these consolidated financial statements on
the basis that the value is not material.
INCOMING RESOURCES
All income and capital resources are recognised in the accounts when the Charity is legally entitled
to the income and the amount can be quantified with reasonable certainty. Income from
commercial trading activities (net of Value Added Tax) is recognised as earned as the related goods
and services are provided.
Investment income is recognised on a receivable basis.
GRANTS
The Union receives voluntary income from the University of Warwick in the form of a block grant and
this is credited to the financial statements in respect of the period to which each grant relates.
RESOURCES EXPENDED
Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Overhead
costs are apportioned to activities on a basis consistent with the use of the resources. Expenditure
includes irrecoverable Value Added Tax.
PRINCIPAL ACCOUNTING POLICIES continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 27
TANGIBLE FIXED ASSETS
Fixed assets are stated at cost less accumulated depreciation. Expenditure on individual capital items
or groups of related items costing less than £1,500 are written-off to the income and expenditure
account in the year in which they occurred.
Depreciation is provided to write-off the cost less the estimated residual value of tangible fixed assets
by equal instalments over their estimated useful lives as follows:
Building improvements 3 - 10 years
Fixtures, fittings and office equipment 3 - 5 years
IT equipment 3 years
The Union occupies premises provided by the University of Warwick Foundation.
INVESTMENTS
Warwick Students' Union's fixed asset investments are valued at cost, as these assets are not readily
saleable and a reliable market value is not readily available.
The Board of Trustees value the shareholding in the subsidiary companies at net asset value.
LEASE CONTRACTS
Rentals paid under operating leases are charged to income as the cost falls due.
STOCKS
Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in, first
out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal.
TAXATION
From 1 August 2010 Warwick Students' Union became a registered charity and therefore benefits
from exemptions from taxation on its income and gains falling within Section 505 of the Taxes Act
1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are
applied to its charitable objectives. No tax charge has arisen in the year.
Students' Union Services Warwick Limited
The taxable profits of Students' Union Services Warwick Limited are donated under Gift Aid to the
Union with the consequence that no taxation is payable by that company.
Membership Solutions Limited
The profits for the year for Membership Solutions Limited have been offset against losses brought
forward for tax purposes. No taxation arises on the results of Membership Solution Limited.
PRINCIPAL ACCOUNTING POLICIES continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 28
FUNDS STRUCTURE
Warwick Students' Union administers and accounts for a number of charitable funds, as follows:
- Unrestricted Funds representing unspent income which may be used for any
activity / purpose at the Broad of Trustees discretion.
- Designated Funds set aside by the Board of Trustees to be spent on some specific
purpose at its own discretion. The Board of Trustees intend to use some of these
designated funds to finance future building refurbishment.
- Restricted Funds raised and administered by Warwick Students' Union for specific
purposes. This includes revenue received from a donor to be used for activities
prescribed by the donor.
- Custodian Funds entrusted to Warwick Students' Union for safekeeping, but not under
its management control such as Sports Club and Society funds (including annual Raising
and Giving). Such custodian activities are disclosed in the Annual Report, but as the
funds are not managed by Warwick Students' Union they cannot be included in these
accounts.
DEFINED BENEFIT PENSION SCHEME
The group 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 contributions 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 scheme closed to future accrual on 30 September 2011.
From 1 October 2011 the group participates in the National Union of Students' Pension Scheme, a
defined contribution scheme proved by Aegon, a brand name of Scottish Equitable plc.
PRINCIPAL ACCOUNTING POLICIES continued
WARWICK STUDENTS' UNION
For the year ended 31 July 2011 29
NOTES TO THE FINANCIAL STATEMENTS
1: CHARITABLE ACTIVITY AND SUPPORT COSTSOther
Operating Support
Charitable Activity Costs TOTAL Staff Costs Cost of Sales Expenses Costs
£ £ £ £ £
Charitable Activity Cost Reallocation
Food and Beverage 2,399,942 935,541 803,818 144,244 516,339
Venues, Events and Entertainments 1,588,284 421,431 592,893 117,511 456,449
Student Membership Services 533,469 214,411 - 15,360 303,698
Student Representation and Affiliations 443,826 140,320 - 62,211 241,295
Student Activities, Societies and Sports Clubs 1,135,289 70,137 - 413,565 651,587
6,100,810 1,781,840 1,396,711 752,891 2,169,368
Charitable Activity Costs Summary 2011 2010
£ £
Food and Beverage 2,399,942 2,173,322
Venues, Events and Entertainments 1,588,284 1,530,897
Student Membership Services 533,469 520,304
Student Representation and Affiliations 443,826 394,239
Student Activities, Societies and Sports Clubs 1,135,289 946,916
6,100,810 5,565,678
Student Representation expenses includes the affiliation fee for the National Union of Students' of £49,361
(2010: £49,347).
Marketing, IT & Admin & General
Support Costs Use TOTAL Premises Finance & HR Communications Management
£ £ £ £ £
Support Costs Reallocation
Food and Beverage 23.8% 516,339 230,622 159,437 54,020 72,260
Venues, Events and Entertainments 21.0% 456,449 249,840 80,406 53,987 72,216
Student Membership Services 14.0% 303,698 144,139 33,356 53,987 72,216
Student Representation & Affiliations 11.1% 241,295 96,092 18,923 54,020 72,260
Student Activities, Societies and Sports Clubs 30.0% 651,587 240,231 158,797 108,039 144,520
100.0% 2,169,368 960,924 450,919 324,053 433,472
Support Costs Summary 2011 2010
£ £
Food and Beverage 516,339 470,759
Venues, Events and Entertainments 456,449 352,764
Student Membership Services 303,698 234,457
Student Representation & Affiliations 241,295 188,072
Student Activities, Societies and Sports Clubs 651,587 495,910
2,169,368 1,741,962
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 30
NOTES TO THE FINANCIAL STATEMENTS continued
1: CHARITABLE ACTIVITY AND SUPPORT COSTS continued
Support costs are allocated on the following basis:
- Premises is allocated on space occupied
- Finance is allocated on total number of financial transactions
- HR is allocated based on staff costs
- Marketing, IT Services and Communications are pro-rata across all activities
- Administration and General Management are pro-rata across all activities
Finance and HR costs include: 2011 2010
£ £
- Pension deficit contribution 102,906 72,060
- Redundancy and severance payments - 100,160
102,906 172,220
Administration and General Management costs include: 2011 2010
£ £
- Insurance 65,756 58,615
- Irrecoverable Value Added Tax 133,958 124,020
199,714 182,635
2: GOVERNANCE COSTS 2011 2010
£ £
Auditors Remuneration - Audit Fees 20,000 18,000
Auditors Remuneration - Other Services 5,250 1,250
Legal Fees - Preparation for incorporation and charity registration 3,264 26,620
Professional Fees - Pension advice 7,500 -
Other Legal and Professional Fees 4,474 341
Board of Trustees - Committee expenses 127 556
Board of Trustees - Travel reimbursements 206 69
40,821 46,836
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 31
NOTES TO THE FINANCIAL STATEMENTS continued
3: NET INCOMING RESOURCES FOR THE PERIOD 2011 2010
Net incoming resources for the period is stated after charging: £ £
Auditors remuneration:
- Audit Fees 20,000 18,000
- Other Fees 5,250 1,250
25,250 19,250
Depreciation and amounts written-off Tangible Fixed Assets:
- Owned Assets 88,502 142,165
- Loss on Disposal of Assets 13,229 -
101,731 142,165
Operating lease rentals:
- Plant and machinery 40,387 40,387
- Buildings 450,000 -
490,387 40,387
4: STAFF COSTS 2011 2010
£ £
Wages and Salaries 2,531,429 2,488,535
National Insurance 167,194 170,994
Pension Costs 80,484 91,627
2,779,107 2,751,156
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 32
NOTES TO THE FINANCIAL STATEMENTS continued
4: STAFF COSTS continued 2011 2010
The average staffing was as follows: Number Number
Monthly Salaried Staff / Full Time Equivalent 93 / 84 98 / 95
Weekly Paid Student Staff / Full Time Equivalent 581 / 52 396 / 44
674 / 136 494 / 139
The following number of employees received 2011 2010
remuneration above £60,000 within the year: Number Number
£70,000 - £79,999- £74,999 1 1
The above staff member was accruing retirement benefits under the pension scheme disclosed in
note 18.
5: TRUSTEES REMUNERATION AND EXPENSES
As well as having a role as a trustee of Warwick Students' Union the seven Student Sabbatical
Officers perform a full time role to be the voice of students. They are authorised in the Union's
governing document to represent students, undertake campaigning and support work as distinct
from their trustee responsibilities. They listen to how students want things to be done, work with
Warwick Students' Union staff, the Board of Trustees and partners to make it happen. They
represent students to the University of Warwick, external organisations and the wider community.
Each of the Student Sabbatical Officers were paid a salary of £18,117 during the year with a total
cost to Warwick Students' Union of £140,320 (2010: £143,078) including salary and national
insurance.
The eleven other members Trustees of the Board were reimburseed a total of £206 (2010: £69) for
personal travel and subsistence expenses in performing their role as trustee.
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 33
NOTES TO THE FINANCIAL STATEMENTS continued
6: TANGIBLE FIXED ASSETS - GROUP AND UNION Fixtures,
Building Fittings and
TOTAL Improvements IT Equiment
£ £ £
Cost
1 August 2010 147,436 20,447 126,989
Disposal of asset (18,940) (2,108) (16,832)
Additions 63,873 17,904 45,969
31 July 2011 192,369 36,243 156,126
Depreciation
1 August 2010 - - -
Disposal of asset (5,711) (350) (5,361)
Charge for the year 88,502 7,129 81,373
31 July 2011 82,791 6,779 76,012
Net Book Value
31 July 2010 147,436 20,447 126,989
31 July 2011 109,578 29,464 80,114
7: CAPITAL COMMITMENTS 2011 2010
Future capital expenditure: £ £
Authorised but not contracted 60,000 7,500
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 34
NOTES TO THE FINANCIAL STATEMENTS continued
8: FIXED ASSET INVESTMENTS 2011 2010
£ £
Group
Cost
NUS Services Limited: deposit under
Students' Unions central billing scheme 16,664 16,664
NUS Services Limited: 'A' Shares 60 60
NUS Services Limited: 'B' Shares 7,752 7,752
24,476 24,476
Union NUS Services Shares in
TOTAL Limited Group
£ £ £
Cost
1 August 2010 8,534 8,332 202
Disposal of shares - Students' Union Warwick Events Limited (100) - (100)
Additions - Membership Solutions Limited 95 - 95
Additions - NUS Services Limited 'A' Shares 60 60 -
Additions - NUS Services Limited 'B' Shares 7,752 7,752 -
31 July 2011 16,341 16,144 197
At the 1 August 2010 the fixed asset investments held by The University of Warwick Students' Union (an
unincorporated exempt charity) transferred to Warwick Students' Union.
Warwick Students' Union on holds equity share capital in the following unlisted companies:
Students' Union Services Warwick Limited
102 ordinary shares of £1 each being 100% of issued ordinary shares. Students' Union Services
Warwick Limited is registered and operates in Great Britain. The primary nature of the business being
trading services on behalf of the charity.
Turnover for the year ended 31 July 2011 was £233,763 (2010: £321,725) and profits of £118,461
(2010: £167,229) was generated which was donated to the Union under gift aid.
Net assets at 31 July 2011 were £102 (2010: £102).
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 35
NOTES TO THE FINANCIAL STATEMENTS continued
8: FIXED ASSET INVESTMENTS continued
Membership Solutions Limited
Warwick Students' Union holds 95 £1 ordinary shares in Membership Solutions Limited, a company
limited by shares registered in Great Britain, being 95% of its issued share capital. The primary
nature of the business is the sale of membership and other IT related systems.
Turnover for the year ended 31 July 2011 was £352,825 (2010: £201,272) and profit for the year
of £5,467 (2010: £28,957) was recorded after the payment of a donation made under gift aid to the
Union of £125,658 (2010: nil).
Net liabilities at 31 July 2011 were £1,320 (2010: £6,787).
The minority interest value of £273 arising on the consolidation of Membership Solutions Limited and
the cumulative balance sheet value of (£71) has not been reflected in the consolidated financial
statements on the basis of immateriality.
The principal activity of Membership Solutions Limited is the sale of membership and other IT related
systems.
Students' Union Warwick Events Limited
This company ceased to trade and was dissolved on 1 August 2010. The £100 share capital held by
the University of Warwick Students' Union was written-off on dissolution.
NUS Services Limited
The Union holds shares in NUS Services Limited, a purchasing consortium for member student unions
providing purchasing benefits through collective operations. NUS Services Limited also holds a
deposit from the Union in respect of payment for monthly supplies of brewed and other products.
9: STOCKS GROUP UNION
2011 2010 2011 2010
£ £ £ £
Goods for resale 29,204 28,991 29,204 28,991
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 36
NOTES TO THE FINANCIAL STATEMENTS continued
10: DEBTORS GROUP UNION
2011 2010 2011 2010
£ £ £ £
Amounts falling due within one year:
Trade debtors 138,214 117,979 73,997 6,208
Amounts due from
subsidiary undertakings - - 210,679 193,767
Other debtors 6,296 1,921 6,296 1,921
Prepayments and accrued income 31,931 43,552 22,160 40,772
176,441 163,452 313,132 242,668
11: CREDITORS GROUP UNION
2011 2010 2011 2010
£ £ £ £
Amounts falling due within one year:
Trade creditors 147,581 147,784 146,395 142,863
Amounts due to
subsidiary undertakings - - - 100
Amounts held for clubs and societies 382,836 324,450 382,836 324,450
Other taxation and social security 131,328 150,087 131,328 150,087
Other creditors 61,810 46,681 61,810 46,681
Accruals and deferred income 268,141 319,739 233,920 295,567
991,696 988,741 956,289 959,748
Amounts held for clubs and societies represent balances held on behalf of these bodies, these funds
have been generated separately from the activities of the Union and the use of these funds is directed by
the individual club or society. Warwick Students' Union acts as a custodian for these funds.
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 37
12: PROVISIONS FOR LIABILITIES AND CHARGES Staff
Restructuring
£
At 1 August 2010 75,824
Payments during the year (75,824)
At 31 July 2011 -
13: RESTRICTED FUNDS
1 August 2010 Income Expenditure Transfers 31 July 2011
£ £ £ £ £
Warwick Sport - 346,023 (346,023) - -
Campaigns - 1,985 (1,985) - -
Projects - Community Scheme - 1,916 - - 1,916
Projects - Health Awareness - 200 (200) - -
Projects - Student Development - 321 (321) - -
Projects - Membership Surveys - 150 (150) - -
Projects - Inspire Scheme - 7,500 (1,022) - 6,478
Projects - Internationalisation - 4,500 (170) - 4,330
Proejcts - Environmental - 1,034 (1,034) - -
- 363,629 (350,905) - 12,724
All of the above restricted reserves represent funds received specifically for the identified activity and are
either supported by service level agreements or one-off grant applications.
14: DESIGNATED FUNDS
1 August 2010 Income Expenditure Transfers 31 July 2011
£ £ £ £ £
Building Refurbishment - - - - - 180,000 180,000
- - - 180,000 180,000
The designated reserve to finance building refurbishment was created to set aside funds for planned
future development of facilities and refurbishment of trading areas.
NOTES TO THE FINANCIAL STATEMENTS continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 38
15: ANALYSIS OF NET ASSETS BETWEEN FUNDS
Net Current 2011 2010
Fixed Assets / Net Assets / Net Assets /
Assets (Liabilities) (Liabilities) (Liabilities)
£ £ £ £
Restricted Funds - 12,724 12,724 -
Designated Funds - 180,000 180,000 -
General Funds: Warwick Students' Union 125,721 10,499 136,220 69,311
Subsidiary Undertakings 8,332 (9,549) (1,217) (6,881)
134,053 193,674 327,727 62,430
16: LEASING COMMITMENTS
At 31 July 2011 Warwick Students' Union had annual commitments under non-cancellable operating
leases as follows:
GROUP AND UNION
2011 2010
£ £
Land and Buildings
Operating leases expiring within:
over 5 years 450,000 -
Plant and Machinery
Operating leases expiring within:
2 to 5 years 40,387 40,387
490,387 40,387
NOTES TO THE FINANCIAL STATEMENTS continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 39
NOTES TO THE FINANCIAL STATEMENTS continued
17: CASH FLOW STATEMENT GROUP
2011 2010
£ £
(a) Reconciliation of net incoming resources
for the year to net cash inflow / (outflow) from
operating activities:
Net incoming resources 265,297 566,876
(Increase) in stocks (213) (19,772)
(Increase) in debtors (12,989) (56,333)
Increase / (Decrease) in creditors 2,955 (73,573)
(Decrease) / Increase in provisions (75,824) 75,824
Depreciation 88,502 142,165
Loss on asset disposal 13,229 -
Interest receivable (337) (3,414)
Net cash inflow from operating activities 280,620 631,773
(b) Analysis of changes in net funds At At
31 July 2011 Cash Flow 1 August 2010
£ £ £
Cash at bank and in hand 768,147 361,026 407,121
Short term deposits 211,577 (143,942) 355,519
979,724 217,084 762,640
The balances at 1 August 2010 represent the amounts transferred from the University of Warwick
Students' Union (an unincorporated exempt charity) to Warwick Students' Union (an incorporated exempt
charity).
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 40
18: PENSION SCHEME
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 the benefits in respect of service from 1 October 2003 to 30 September 2011 accruing on
a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme
closed to future accrual on 30 September 2011.
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 pensions over the period up
to retirement and once in payment.
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 accrued on a CARE basis would revalue in line with RPI at 3.2% per annum and
pensions accrued on the final salary basis would revalue in line with CPI at 2.7% 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 set our recommended monthly contributions expressed in monetary terms intended
to clear the on-going funding deficit oerva period of 20 years. These amounts are applied with effect from
1 October 2011 and will increase each year by 3.2%. They will be formally reviewed following completion
of the next valuation due with an effective date of 1 October 2013. In addition to these contributions,
The Union also pays its share of the scheme's levy to the Pension Protection Fund.
The scheme closed to future accrual on 30 September 2011 but as the Scheme was still open to future
accrual to 31 July 2011 the Union was also required to pay contributions towards the cost of benefits
accrued by members in that year. The contribution rate (excluding deficit contributions) for the period
from 1 August 2010 to 31 July 2011 applicable to this Union for the majority of members is 8.17% of
Earnings for members and 9.38% of Earnings for the Union (17.3%/17.55% in aggregate).
The contributions paid into the Scheme by the Union in respect of eligible employees for the year ended
31 July 2011 amounted to £183,390 (2010: £163,687), including funding deficit contributions.
NOTES TO THE FINANCIAL STATEMENTS continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 41
NOTES TO THE FINANCIAL STATEMENTS continued
19: RELATED PARTY TRANSACTIONS
a) Membership Solutions Limited
The Union received a donation under gift aid from Membership Solutions Limited of £125,658
(2010: nil). The Union purchased £17,216 (2010: £17,216) of services from Membership
Solutions Limited and provided £5,832 (2010: £38,564) of services.
2011 2010
£ £
Salary support, administrative and expenses 1,800 35,033
Premises and equipment rental 3,531 3,531
Interest charged on current account 501 -
5,832 38,564
b) Students' Union Services Warwick Limited
The Union received a donation under gift aid from Students' Union Services Warwick
Limited of £118,461 (2010: £167,229). The Union paid £145 (2010: nil) in current account
interest with Students' Union Services Warwick Limited and provided £48,174 (2010: £48,010)
of services to Students' Union Services Warwick Limited.
2011 2010
£ £
Salary support, administrative and expenses 7,272 7,274
Premises and equipment rental 40,752 40,736
Interest charged on current account 150 -
48,174 48,010
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 42
20: MERGER
On 1 August 2010 the trade, assets and liabilities of the University of Warwick Students' Union (an
unincorporated exempt charity) were transferred to Warwick Students' Union (an incorporated
exempt charity).
The assets and liabilities of the University of Warwick Students' Union (an unincorporated exempt
charity) at the 1 August 2010 are set out below:
Book Value
£
Tangible Fixed Assets 147,436
Investments 8,534
Stocks 28,991
Debtors 242,668
Short Term Deposits 342,857
Cash at Bank and In Hand 334,397
Total Assets 1,104,883
Creditors due within one year (959,748)
Provisions for Liabilities (75,824)
Net Assets 69,311
The results and financial position of the University of Warwick Students' Union (an unincorporated
exempt charity) have been shown throughout these financial statements as comparative amounts as
the group reconstruction fails to be treated as a merger in accordance with Financial Reporting
Standard 6 - Acquisitions and Mergers.
Prior to the transfer outlined above, the charity did not trade in the period 29 June 2010 to
31 July 2010.
NOTES TO THE FINANCIAL STATEMENTS continued
WARWICK STUDENTS' UNION
For the period ended 31 July 2011 43