Page 1

Charity # 1140278

University of Essex Students’ Union Annual Report and Accounts FOR THE YEAR ENDED 31 JULY 2011


UNIVERSITY OF ESSEX STUDENTS’ UNION ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31 July 2011 CONTENTS Page

Administrative Information

1

Trustees' Annual Report

2–6

Independent Auditors' Report

7–8

Consolidated Statement of Financial Activities

9

Consolidated Balance Sheet

10

Charity Balance Sheet

11

Notes to the Financial Statements

12 - 22


UNIVERSITY OF ESSEX STUDENTS’ UNION TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 July 2011

Administrative information Charitable Status The University of Essex Students’ Union is an unincorporated charity established under the Education Act 1994 and registered with the Charity Commission (No. 1140278) since 8 February 2011, 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. Principal Address Wivenhoe Park Colchester Essex CO4 3SQ Sabbatical Trustees Resigned at 30th June 2011 Kishor Krishnamoorthi Ashley Rudge Zoe Lester Jevanni Letford Alex Reily

Appointed at 1st July 2011 Hentley Ignatius Ashley Rudge James Thornton Kunal Patel Camilla Thoreson Leonardis Badatis Daniel Smy

Student Trustees Resigned at 30th June 2011 Lisa Hiscock Haider Ali Khan Elizabeth Mantazari

Appointed at 1st July 2011 Krystle Acquah Christopher Clarke Johnnie Norton

Southend Student Trustee Resigned at 30th June 2011 Gibson Lusigi

Appointed at 1st July 2011 Alina Cristina Jipa.

Loughton Student Trustee Resigned at 30th June 2011 Alex Cann

Appointed at 1st July 2011 Paul Williams

External Trustees Barry Hadden David Motum Neil O’Hare Auditors Crowe Clark Whitehill LLP Chartered Accountants and Registered Auditors Aquis House 49-51 Blagrave Street Reading Berks RG1 1PL

Bankers Lloyds TSB Bank plc 27 High Street Colchester CO1 1DU

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UNIVERSITY OF ESSEX STUDENTS’ UNION TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 July 2011

UESU employs a Chief Executive to work closely with the Executive Officers and ensure effective management of the charity as head of a senior management team as follows:Chief Executive Deputy Chief Executive Director of Finance Director of Commercial Development Director of Marketing and Communication

Craig Stephens Christine Marianne Provan Barbara Reynolds Reeves Watson Steve Haugh

The Executive Committee present their Annual Report for the year ended 31st July 2011, which includes the administrative information set out on page 1, together with the audited accounts for that year. Structure, governance and management UESU is constituted under the Education Act 1994 as a charity (see page 1) with internal regulations or Rules approved by the governing body of University of Essex (the University). UESU’s charitable Objects under the Act, to advance the University’s educational purposes by providing representation and support for the students of the University, are supplemented by the further Object of helping members to develop their own charitable activities as active participants in civil society. UESU is administered by its Trustees of 13 students elected annually by cross-campus secret ballot of the UESU membership and 3 External Trustees appointed though a recruitment process. The 7 posts of President, VP Education, VP Services and Communications, VP Student Activities, VP Welfare and Community, VP Southend and Loughton and VP International are fulltime, or ‘sabbatical’, posts remunerated as authorised by the Education Acts and cannot exceed two years duration for each holder. The 7 full-time Sabbaticals 6 Student Trustees and 3 External Trustees are regarded as the charity trustees of UESU for the purposes of the Charities Acts. UESU operates on democratic principles, with supervisory power vested in UESU Union Council, which can veto decisions made by the Executive Committee, approves its general policy, annual budgets and accounts and elects students to serve on all UESU committees. UESU Union Council membership comprises the Executive Committee together with representatives of students’ interests in UESU Clubs and Societies, Equal Opportunities Groups and Academic Courses. The Trustees, assisted by sub-committees where appropriate, has delegated the day-to-day running of UESU to a Chief Executive, named above. As the charity trustees, all Trustees receive an induction into their legal and administrative responsibilities, with an ongoing training programme as and when needed for issues arising during their term of office. The Trustees meets every 6 weeks to receive reports from individual Officers, sub-committees and the Chief Executive, to review the charity’s performance and administration generally and to decide policy issues arising, subject to UESU Union Council oversight. UESU also employs a number of non-student full-time staff for the sake of continuity in the management of its many activities. Those staff are accountable to the Chief Executive for the performance of their duties.

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UNIVERSITY OF ESSEX STUDENTS’ UNION TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 July 2011

Relationship with University of Essex The relationship between the University and UESU is established in the Regulations of the University and detailed in UESU Rules approved by both organisations. UESU receives a Block Grant from the University, and part-occupies a building owned by the University, which does not charge any rental or lease payments. This non-monetary support is intrinsic to the relationship between the University and UESU. As recommended by the Charities SORP, which has been adopted for this and future financial years for due compliance with the new requirements for Students’ Unions provided for in the Charities Act 2006, an estimated value to UESU for this free serviced accommodation has been included in the accounts for the first time, priced at a conservative £326,000 subject to further research on market prices for the few viable alternatives possible. Although UESU continues to generate supplementary funding from various mutual trading activities, it will always be dependent on the University’s support. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body. Risk Management The Trustees have examined the major strategic, business and operational risks faced by University of Essex Students’ Union. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. 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 health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. Aims, Objectives and activities The Trustees have identified UESU’s mission as ‘Positively Affecting the life of every student’, with the following long-term aims: 1. promoting the interests and welfare of Students at University of Essex during their course of study and representing, supporting and advising Students; 2. being the recognised representative channel between Students and University of Essex and any other external bodies; and 3. providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its Students. In pursuit of these aims for the public benefit, UESU will ensure the diversity of its membership is recognised, valued and supported and has established departments and services for use by its members and to support its work with the University and other organisations on behalf of students. These include the UESU Advice Centre, the UESU Lettings Office, the UESU Activities and Development Centre, the UESU Bar & food bar, the UESU nightclubs (Sub Zero and level 2), and the UESU Shops (Campus, Go Go Global, Bakery, Pick-me-Ups and everythingEssex). Executive Officers of UESU sit on every committee of the University and meet regularly with the Local Authority, local Primary Care Trusts and other providers of public services affecting students. Page 3


UNIVERSITY OF ESSEX STUDENTS’ UNION TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 July 2011

UESU continues to represent the students of this University on relevant local, national and international issues by maintaining a high proportion of student representatives. Student representatives now sit on and contribute to over 50 University committees and academic programme forums which allows the Union to cater effectively to the needs of the students. Student representatives are present on all policy and strategy making boards. To further enhance the student experience, UESU attract students from all walks of life to get involved in the Union, the University and the local community by actively promoting the benefits of volunteering in student-led activities. As a result, in 10/11, 697 students volunteered to work on projects within the local community or within the University or union. When reviewing our objectives and planning our activities, we have given due consideration to the Charity Commission’s general and relevant supplementary guidance on public benefit. 1. Achievements and Performance The Union has achieved much over the last twelve months and has had many successes: a) Representation and Democracy The executive team had a very productive year. Some of the more significant successful campaigns and achievements include: • Two new Sabbatical posts elected in response to needs identified by students, funded through an increase in the block grant • Record voter numbers participating in the Union Elections of 3543 an increase of 950 on 2009/10. • With 120 different nationalities voting • 100% attendance by the Education Committee at the University Senate. • The VP education worked with the University to introduce a policy of ‘better distributed deadlines for essays’. This will help students better manage their workloads. • 300 Students from the University of Essex attended the National Demonstration on the fees debate. • After a Union Council meeting where the VC was asked about lectures being recorded onto MP3 format the VP education followed this up and these have now been introduced. • £6620 went into students pockets after the most successful book fair to date. b) Students Activities and Development The restructure from last year has seen the department go from strength to strength. • Biggest ever Freshers fair which attracts over 5000 students • 1720 students got active by joining a sports team • 2497 students made most of their life outside of studies by joining a Society. • Volunteering numbers increased to 697 (332 -2010), and the V-Oscars night was a huge success with talks from local schools on the benefits of student volunteering. • Increase in BUCS participation levels with 45 teams in the BUCS league versus 38 prior year, finishing 38th, our highest place finish. • Successful collaborative bid with the University for funding for the Coach Education Scheme which is part of the SPACE Programme (Sport Participation and Coach Education). The scheme financially assists with the costs associated with obtaining coach and/or officiating certifications. • Highest number of Society Guild members to date at 2497 and the first Golden Guilds Award Ceremony took place with record attendance.

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UNIVERSITY OF ESSEX STUDENTS’ UNION TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 July 2011

• • • • • •

Increased levels of Clubs & Society involvement in volunteering and in the community Our LGBT Society won the NUS Higher Education best Campaign award, their second award from NUS in consecutive years An increase in the block grant of £20,000 for BUCS activity. SX:TV won an award for its Marketing The Union ran an international talent show called 1/135 representing the number of nationalities at the University. 1138 students were able to pick up their prescriptions from the SU reception, making this service more accessible to students living on campus.

c) Advice Centre: Another very busy year for our independent Advice Centre including the following: • The funding of a new Senior Immigration post funded by an increase in the block grant • 3147 students got free advice • 100% success rate with all tier 4 immigration applications • The student street guide was produced and delivered to all students living off campus. The guide highlights the need to be a good citizen in their community. d) SUEI The Union was reassessed for SUEI and was once again achieved the Bronze award 2. Financial Performance It has been a difficult financial year for the Union, SU bar and SU food bar suffered a drop in footfall following the refurbishment and as such failed to achieve budget. The Union surveyed students and acted on those findings bringing about improved customer service and food offerings resulting in a stronger financial performance in the latter part of the year but not sufficient to make up the earlier shortfall. The ongoing preloading culture also had a significant impact on bar sales in both the venues and bars than in previous years. The retail division, however, continued to see growth and exceeded budget, partly offsetting the budget shortfall in the other commercial divisions. Strict financial controls were also introduced resulting in the Union making a small financial surplus (noted below). There was one significant bad debt in the year namely Student Media Group ( SMG). 3. Partnership This year the board were involved in discussions regarding working in partnership with Essex Commercial Services. It started with the Loughton Campus bar redevelopment, and ended with the development and opening of everythingEssex. Working in partnership with the University’s commercial company is designed to increase the student experience through the effective coordination of all commercial services on campus. 4. Plans for 2011/12 I. This year will see the introduction of a number of Sub Committees of the Board with the intention of making sure that the board have thorough overview on the work of the union. II. The Union is working on a number of research projects looking at the needs of its members and making sure that all services are responsive to their needs III. The Big Plan will be continually monitored by the board and successes highlighted to the membership. IV. Key internal procedures are being reviewed and updated as part of the Unions ongoing improvement programme. 5. Results The Surplus for the year, after taxation, amounted to £9,228 (2010 – surplus £156,640). Page 5


UNIVERSITY OF ESSEX STUDENTS’ UNION TRUSTEES’ ANNUAL REPORT YEAR ENDED 31 July 2011

Trustees’ Responsibilities The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under charity 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 charity and the group and of the surplus or deficit of the group for that period. In preparing these financial statements, the Trustees are required to: • • • •

select suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the charity’s and the group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and the group and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PROVISION OF INFORMATION TO AUDITORS The Trustees at the time when this Trustees' Report is approved have confirmed that: • •

so far as the Trustees are aware, there is no relevant audit information of which the Union's auditors are unaware, and the Trustees have taken all the steps that ought to have been taken as the Trustees in order to be aware of any information needed by the Union's auditors in connection with preparing their report and to establish that the Union's auditors are aware of that information.

This report was approved by the board on

and signed on its behalf.

Hentley Ignatius Chair of Trustees

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UNIVERSITY OF ESSEX STUDENTS’ UNION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF UNIVERSITY OF ESSEX STUDENTS' UNION

We have audited the financial statements of University of Essex Students’ Union for the year ended 31 July 2011 set out pages 10 to 23 and the related notes numbered 1 to 19. 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 charity’s trustees as a body, in accordance with Section 44 of the Charities Act 1993. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees 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 are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity'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 to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: •

give a true and fair view of the state of the group’s and the charity’s affairs as at 31 July 2011 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Charities Act 1993.

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UNIVERSITY OF ESSEX STUDENTS’ UNION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF UNIVERSITY OF ESSEX STUDENTS' UNION

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 1993 requires us to report to you if, in our opinion: •

the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

sufficient accounting records have not been kept by the parent charity; or

the financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit.

[This report has not yet been signed] Alastair Lyon Senior Statutory Auditor For and on behalf of Crowe Clark Whitehill LLP Statutory Auditor Aquis House 49-51 Blagrave Street Reading Berks RG1 1PL

[Date]

Crowe Clark Whitehill LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR Note Unrestricted Restricted Income Income

Capital Grants

Gross Income Voluntary income: - Donations, University Grant, etc. - Grant of serviced accommodation Activities to generate funds: - Advertising and media - Investment income Charitable activities for students: - Bars, venues and entertainment - Shops and vending - Catering - Societies & clubs - Lettings Other income

1c)

Total income Resources expended Costs of Generating Funds: - Finance costs Charitable Activities for students: - Representation and campaigns - Advice centre - Student activities and volunteering - Clubs and societies - Bars, ventures and entertainments - Catering - Shops and vending - Lettings Governance Total expenditure Net (outgoing)/incoming for the year Capital grant amortisation Clubs and societies allocation Transfers

2–5

Total 2011 £

Total 2010 £

934,742 326,000

32,850 -

187,600 -

1,155,192 326,000

1,391,363 326,000

41,875 145

-

-

41,875 145

49,934 -

1,769,061 2,145,494 331,039 57,277 2,570 51,495

159,299 -

-

1,769,061 2,145,494 331,039 216,576 2,570 51,495

1,802,388 1,978,717 419,085 139,243 45,936

5,659,698

192,149

187,600

6,039,447

6,152,666

32,508

-

-

32,508

36,307

-

362,822 107,530 77,044 329,891 2,279,483 479,103 2,089,614 69,106 219,900

148,760 112,004 56,946 340,470 2,199,616 682,948 1,951,633 22,545 193,939

-

6,047,001

5,745,168

354,155 104,193 69,569 133,913 2,279,483 479,103 2,089,614 69,106 219,900

8,667 3,336 7,475 195,978 -

5,831,545

215,456

-

(171,847) 231,011 (49,937) -

(23,307) 49,937 (15,000)

187,600 (231,011) 15,000

(7,554) -

407,498 -

Net incoming/(outgoing) resources after transfer between funds Fund balances brought forward

9,227 292,374

11,630 58,558

(28,411) 1,313,629

(7,554) 1,664,561

407,498 1,257,063

Fund balances carried forward

301,601

70,188

1,285,218

1,657,007

1,664,561

The notes on pages 11 to 23 form part of these accounts Page 9


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 CONSOLIDATED BALANCE SHEET

2011 £

2010 £

£

£

Notes

Fixed Assets Tangible fixed assets Investments

6 7

Current Assets Stocks in bars, shops & other outlets Debtors & prepayments Cash at bank & in hand

Current Liabilities Creditors: Amounts due within one year

8 9

10

2,062,021 1,860

2,048,054 1,860

2,063,881

2,049,914

100,993 144,560 184,076

79,856 207,127 282,323

429,629

569,306

(436,503)

(454,659)

Net Current Assets

(6,874)

Total Assets less Current Liabilities Creditors: Amounts falling due after one year

114,647

2,057,007

2,164,561

11 (400,000)

Net Assets

(500,000)

1,657,007

1,664,561

Representing Charitable Funds:Capital Grants Fund University Grant for Refurbishment Restricted Income Funds Sports &Society Equipment Reserve Sports & Society Restricted Funds Sundry Other Funding

12

1,285,218

1,313,629

13 13 13

29,534 17,607 23,047

34,024 24,534 1,355,406

Unrestricted Income Funds Free reserves (Undesignated)

Total Funds

301,601

14

1,372,187

292,374 301,601

292,374

1,657,007

1,664,561

All of the above results are derived from continuing activities.

The notes on pages 13 to 23 form part of these financial statements Page 10


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 CHARITY BALANCE SHEET

2011 £

2010 £

£

£

Notes

Fixed Assets Tangible fixed assets Investments

6 7

Current Assets Stocks in bars, shops & other outlets Debtors & prepayments Cash at bank & in hand

Current Liabilities Creditors: Amounts due within one year

8 9

10

2,048,054 1,861

2,063,883

2,049,915

87,504 242,776 148,817

79,856 207,127 282,323

455,097

569,306

(459,404)

(454,660)

Net Current Assets Total Assets less Current Liabilities Creditors: Amounts falling due after one Year

2,062,021 1,862

19,693

114,646

2,083,576

2,164,561

11 (400,000)

Net Assets

(500,000)

1,683,576

1,664,561

Representing Charitable Funds:Capital Grants Fund University Grant for Refurbishment Restricted Income Funds Sports & Society Equipment Reserve Sports & Society Restricted Funds Sundry Other Funding

12

1,285,218

1,313,629

13 13 13

29,534 17,607 23,047

34,024 24,534 1,355,406

Unrestricted Income Funds Free reserves (Undesignated)

15

Total Funds

328,170

1,372,187

292,374 328,170

292,374

1,683,576

1,664,561

Approved on behalf of the University of Essex Students’ Union on ……………………… by: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trustee

The notes on pages 13 to 23 form part of these accounts Page 11


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS

1

Accounting Policies (a)

Accounting convention These accounts are 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 & Financial Reporting Standards. Consolidated financial statements (‘group accounts”) have been prepared in respect of the charity and its wholly owned subsidiaries, Essex Student Lets Limited and UESU Limited. The parent has taken exemption from presenting its unconsolidated profit and loss account under section 408 of the Companies Act 2006. The charity has cash resources and is supported by the University of Essex. The trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

(b)

Cash flow statement The executive committee has taken advantage of the exemption in Financial Reporting Standard No 1 from including a cash flow statement in the financial statements.

(c)

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. The University grant of free serviced accommodation on the campus is accounted for as income and expenditure of the year at an estimated value to University of Essex Students’ Union by reference to the alternatives available on the commercial market.

(d)

Resources expended Expenditure includes irrecoverable VAT. Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Governance costs are those incurred for compliance with constitutional and statutory requirements, such as the annual audit, annual elections and training for sabbatical officers. The value of free serviced campus accommodation is apportioned on estimated floor space occupied. 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. Depreciation is provided at the following annual rates in order to write the cost of assets off over their estimated useful lives:Building Developments Motor Vehicles Furniture, fittings and equipment

- 5% - 20% per annum straight line - 25% per annum straight line - 20% - 33% per annum straight line

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UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

(f)

Investments University of Essex 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 ascertainable.

(g)

Pension costs The Union participates in Local Government Pension Scheme (LGPS), University of Essex Pension Scheme (UEPS), and for certain employees, the University Superannuation Scheme (USS). Under the schemes, pensions are based on final pensionable salary, and contributions are based on final salary. The union's contributions to the schemes are charged to the Income and Expenditure account so as to spread the cost of the pension over the expected service lives of the employees who are the members of the schemes within participating employers. The Union Superannuation Scheme is 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.

(h)

Taxation No provision is made in these accounts for corporation tax as the union is exempt from such taxes as a result of having derived its charitable status from its parent governing body, University of Essex.

(i)

Leased assets Rentals payable under operating leases are charged as expenditure on a straight line basis over the period of the lease.

(j)

Stock Stock is valued at the lower of the cost and its net realisable value.

(k)

Fund accounting University of Essex Students’ Union administers and accounts for a number of charitable funds, as follows:(i)

Unrestricted Funds representing unspent income which may be used for any activity/purpose at the Trustees’ own discretion;

(ii)

Designated Funds set aside by the Trustees to be spent on some specific purpose at its own discretion;

(ii)

Restricted funds raised and administered by University of Essex Students’ Union 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.

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UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

2

Charitable and other Activity costs Cost of Sales £

Charitable activities - Representation and campaigns - Advice centre - Student activities and volunteering - Clubs and societies - Bars, ventures and entertainments - Catering - Shops and vending - Lettings Governance Total costs

Staff Costs £

Rent & Premises £

Other Costs

Total

£

£

-

148,981 80,511

67,773 10,429

137,401 13,253

354,155 104,193

-

49,993 73,492

6,964 13,329

12,612 47,092

69,569 133,913

605,995 137,126 1,421,623 -

798,077 239,986 492,809 52,509 142,084

174,637 37,851 67,668 7,361 22,011

700,774 64,140 107,514 9,237 55,805

2,279,483 479,103 2,089,614 69,106 219,900

2,164,744

2,078,441

408,023

1,147,829

5,799,037

Included in the above governance costs is the annual audit fee of £14,520 (2010: £11,690). 3

Central Overhead Costs included in Note 2 Staff Usage

Charitable activities - Representation and campaigns - Advice centre - Student activities and volunteering - Clubs and societies - Bars, ventures and entertainments - Catering - Shops and vending - Lettings Governance Totals

£

Rent & Premises £

Other

Total

£

£

10% 3%

69,376 20,410

35,450 10,429

30,111 8,859

134,937 39,699

2% 4%

13,628 26,085

6,964 13,329

5,915 11,322

26,507 50,736

46% 9% 18% 2% 6%

351,935 71,918 140,479 14,533 43,076

163,426 33,396 65,233 6,749 22,011

152,628 31,190 60,923 6,303 18,697

667,989 136,503 266,635 27,584 83,784

751,440

356,988

325,946

1,434,374

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UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

4

Staff Costs Wages and salaries Social security Pension costs Other staff costs

2011 £ 1,816,684 97,900 141,582 22,275

2010 £ 1,807,426 104,928 129,555 18,719

£2,078,441

£2,060,628

One employee earned over £60,000 per annum (2010: one). The average staffing was as follows:-

Full time Students

5

2011

2010

52 127

49 110

Trustees’ Remuneration and Expenses Each of the five sabbatical officers received £17,312 throughout the academic year. as authorised in the Union’s governing document, for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities. This work includes voicing student opinion with the institution and local community, defending and extending the rights of students through petitions, discussion with MPs and also organising and supporting student volunteers and service provision for them. The total employer costs for sabbatical officers in the year amounted to £97,397 (2010: £94,037). Ten Trustees were reimbursed a total of £4,252 for the year in respect of personal travel and subsistence expenses.

Page 15


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

6

7

Tangible Fixed Assets – Consolidated and Charity Building Development

Motor Vehicle

FFE

Total 2011 £

Cost At 1 July 2010 Additions Disposals

4,140,547 384,973 (919,843)

31,860 -

466,166 46,588 (403,948)

4,606,713 463,421 (1,323,791)

At 31 July 2011

3,605,677

31,860

108,806

3,746,343

Depreciation At 1 July 2010 Charge for the year Disposals

2,143,425 409,532 (917,554)

4,646 -

415,234 32,669 (403,630)

2558,659 446,847 (1,321,184)

At 31 July 2011

1,635,403

4,646

44,273

1,684,322

Net Book Values - at 31 July 2011

1,970,274

27,214

64,533

2,062,021

- at 31 July 2010

1,997,122

-

50,932

2,048,054

Investments – Consolidated and Charity 2011 £ At Cost Investment in NUS Services Limited Investment in UESU Limited Investment in Essex Student Lets Limited

2010 £

1,860

1,860

1 1

1 -

1,862

1,861

In order to continue receiving retrospective discounts through the Central Billing System University of Essex Students’ Union has minority holdings of 60 ‘A’ and 90 ‘B’ voting shares in this trading company. 8

Stocks

Stocks

2011 Group £

Charity £

100,993

87,504

2010 Group Charity £ £ 79,856

79,856

Page 16


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

9

Debtors

Trade debtors Other debtors Prepayments & accrued income Intercompany debtors

10

12

Charity £ 62,745 11,362 51,743 116,926

Group £ 105,770 20,558 80,799 -

Charity £ 105,770 20,558 80,799 -

144,560

242,776

207,127

207,127

2011

Capital Grants Fund At 1 July 2010 Received in year Transferred from restricted funds Amortisation Balance at 31 July 2011

2010

Group £

Charity £

151,936 85,928 44,761 53,878

151,936 112,024 43,730 51,714

185,422 61,319 28,438 79,480

185,422 61,319 28,439 79,480

100,000

100,000

100,000

100,000

436,503

459,404

454,659

454,660

Creditors: Amounts due after more than one year

Bank loans

2010

Group £ 76,191 11,362 57,007 -

Creditors: Amounts due within one year

Trade creditors Social security & other taxes Other creditors Accruals and deferred income Loan repayments due within one year

11

2011

Group £

2011

Charity £

2010

Group £

Charity £

400,000

400,000

Group £ 500,000 2011 £ 1,313,629 187,600 15,000 (231,011) £ 1,285,218

Charity £ 500,000 2010 £ 1,083,840 488,866 (259,077) £ 1,313,629

Capital grants are provided by the University to fund the capital requirements of the Union. These are being released to unrestricted funds over the useful economic lives of the assets to match the depreciation charge of the assets capitalised.

Page 17


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

13

Restricted Funds Funds: Sports & Society Equipment Reserve Sports & Society Restricted Funds Sundry Other Funding

£

Carried Forward £

(4,490)

-

29,534

171,162

(203,491)

49,937

17,607

24,534

20,987

(7,475)

(15,000)

23,047

58,558

192,149

(215,456)

34,937

70,188

Brought Forward £

Income £

Expenditure £

34,024

-

-

Transfers

Sports & Society Equipment Reserve: this fund is restricted to the purchase/repair of equipment belonging to clubs & societies. It is made up of a general fund and funds raised for a specific club or society. Sports & Society Restricted funds: this fund constitutes Club & Society balances carried forward to 2011/12 (made up of funds raised by the clubs/societies and/or membership fees not spent in the year). Sundry Other Funding: this is funding received for specific events / purposes and is mainly made up of Alumni funding. 14

Net Assets of the Funds of the Charity and Group Fixed Assets Capital Grant Fund Restricted Income Funds Unrestricted funds

£ 1,130,218 29,534 904,131

Charity

2,063,883

Subsidiary Reserves Group 15

Unrestricted Funds

(2) 2,063,881

Net Current Assets £ 155,000 40,654 (175,961)

Long term liabilities £ (400,000)

Total £ 1,285,218 70,188 328,170

(400,000)

1,683,576

19,693 (26,567) (6,874)

(26,569)

(400,000)

1,657,007

Income

Expenditure

Transfers

Free reserves

Brought Forward £ 292,374

£ 4,481,488

£ (4,626,766)

£ 181,074

Carried Forward £ 328,170

Charity

292,374

4,481,488

(4,626,766)

181,074

328,170

-

1,178,210

(1,204,779)

-

292,374

5,659,698

(5,831,545)

181,074

Non charitable trading funds

(26,569) 301,601 Page 18


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

16

Leasing Commitments At 31 July 2011 University of Essex Students’ Union had annual commitments under noncancellable operating leases as detailed below:2011 2010 £ £ Plant and machinery 28,610 2,566 Operating leases expiring within one year 11,800 Operating leases expiring within two to five years 32,410 The amount paid during the year in respect of operating leases for plant and machinery was £47,821.

17

Control Relationship Ultimate control of University of Essex Students’ Union rests with its membership, represented by UESU Council.

18

Related Party Transactions The Union is in receipt of a recurrent grant from the University of Essex of £762,242 (2010 - £646,000). In addition the Union occupies its building on a rent free basis under an informal license subject to the union maintaining the building in a good state of repair. The trustees of the Union are the members of the Trustee Board. The Sabbatical members of the Trustee Board receive remuneration for their services as provided for within the constitution. The aggregate amount payable under such contracts in the year was £97,397 (2010: £94,037).

19

Capital Commitments 2011 £ Contracted capital commitments for the group and the charity

170,685

2010 £ 372,004

Capital commitments in 2011 relate to the EPOS Project and the Union/Copy Shop. These projects have been partially funded by capital grants, £155,000 of which is included in the capital grant reserve as at 31 July 2011.

Page 19


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

20

Pension Costs The Students' Union has three principal pension schemes for employees. These are the Universities Superannuation Scheme (USS), the Local Government Pension Scheme (LGPS), and the University of Essex Pension Scheme (UEPS). The assets of the schemes are held in separate trustee-administered funds. All three schemes are defined benefit schemes and contracted out of the State Earnings-Related Pension Scheme. The LGPS became a closed scheme in August 1997. The UEPS became a closed scheme in March 2004. Subsequently, all staff who are not members of a pension scheme may join the USS. Universities Superannuation Scheme: The Universities Superannuation Scheme, is a defined benefit scheme which is externally funded and contracted out of the State Second Pension Scheme (S2P). The assets of the scheme are held in a separate trustee-administered fund. It is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme. The cost recognised within the surplus/deficit for the year in the income and expenditure account being equal to the contributions payable to the scheme in the year. The latest actuarial valuation of the scheme was at 31 March 2008. The assumptions which have the most significant effect on the result of the valuation are those relating to the rate of return on investments (i.e. the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the past service liabilities the financial assumptions were derived from market yields prevailing at the valuation date. It was assumed that the valuation rate of interest would be 6.4% per annum, salary increases would be 4.3% per annum and pensions would increase by 3.3% per annum. In relation to the future service liabilities it was assumed that the valuation rate of interest would be 6.1%, salary increases would be 4.3% per annum and pensions would increase by 3.3% per annum. The valuation was carried out using the projected unit method. At the valuation date, the market value of the assets of the scheme was £28,842.6m. The assets were sufficient to cover 103% of the benefits which had accrued to members after allowing for expected future increases in earnings. The institution contribution rate required for future service benefits alone at the date of the valuation was 16% of salaries. Surpluses or deficits which arise at future valuations may impact on the future contribution commitment. The next formal actuarial valuation is due as at 31 March 2011 when the above rates will be reviewed. The contributions paid into the scheme in respect of eligible employees for the year ended 31 July 2011 amounted to £113,428 (2010 - £96,908).

Page 20


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

20

Pension Costs (continued) Local Government Pension Scheme The Students' Union participates in a defined benefit scheme operated by Essex County Council. Although the Fund is a defined benefit scheme, because University of Essex Students Union, as an Admission Body, is grouped together with the University of Essex, it is not possible to separately identify its share of the underlying assets and liabilities and it is therefore accounted for as a defined contribution scheme. Whilst the most recent valuation took place at 31 March 2010 and has specified the employer rates applicable for the three years from 1 April 2011, these financial statements reflect the contributions set by the 2007 valuation. The ongoing contribution rate for University of Essex Students’ Union during 2010/11 was 17.431% of pensionable pay. The value of the scheme’s assets at 31 March 2007 was sufficient to cover 79.6% of the benefits that had accrued to members. Any payments to meet unfunded benefits which are recharged to University of Essex Students Union, or financial strain payments made by University of Essex Students Union are in addition to the above. The main actuarial assumptions used in both the 2007 and 2010 valuation are set out below:

2007 funding target

2007 normal cost

2010 funding target

2010 normal cost

Investment return Pre-retirement

6.9% p.a.

6.5% p.a.

7,0% p.a.

6.75% p.a.

Investment return Post-retirement

5.4% p.a.

6.5% p.a.

5.5% p.a.

6.75% p.a.

Salary increases

4.6% p.a.

4.25% p.a.

4.5% p.a.

4.5 % p.a.

Pension increases in payment

3.1% p.a.

2.75% p.a.

3.0% p.a.

3.0% p.a.

The 2010 Valuation determined that the scheme’s assets were sufficient to cover 71% of the benefits that had accrued to members. The value of the Fund’s assets at the 2010 valuation was £3,085m and the value of the liabilities was £4,319m. The past service deficiency was £1,234m. Employer's pension contributions charged during the year amounted to £15,650 (2010 £15,871).

Page 21


UNIVERSITY OF ESSEX STUDENTS’ UNION Annual Report and Accounts for the year ended 31 July 2011 NOTES TO THE ACCOUNTS, continued

20

Pension Costs (continued) University of Essex Pension Scheme (UEPS) The Students' Union participates in a defined benefit scheme operated by the University of Essex. The contributions are determined by independent qualified actuaries, on the basis of triennial valuations. Although the scheme is a defined benefit scheme, because the Students' Union is grouped together with the University itself, it is not possible to separately identify its share of the underlying assets and liabilities and it is therefore accounted for as a defined contribution scheme. The pension cost is assessed every three years in accordance with the advice of a qualified actuary. The assumptions and other data that have the most significant effect on the determination of the contribution levels are as follows: Last actuarial valuation Actuarial method Investment returns per annum Pension increases per annum Salary scale increase per annum Market value of assets at date of last valuation (whole fund)

31 July 2010 Projected Unit 6.4% per annum 3.4% per annum 4.4% per annum £12,476,000

Employer's pension contributions paid by the Students' Union during the year amounted to £12,141 (2010: £16,303).

Page 22

Essex-2011-FINAL-3-11-11  

http://www.essexstudent.com/pageassets/my_union/studentconf/Essex-2011-FINAL-3-11-11.pdf

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