Page 1

Leeds Met Students’ Union

June 30

2010

Statement of Accounts For The Year Ended 30 June 2010


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010

Contents ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 JUNE 2010 ............................................................... 3 TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2010……………………………………………………..4 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LEEDS MET STUDENTS’ UNION ................ 11 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2010 ....................................... 12 BALANCE SHEET AS AT 30 JUNE 2010 ............................................................................................................ 13 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010………………………………………… 14

2


LEEDS MET STUDENTS’ UNION ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 JUNE 2010 Charitable Status Leeds Met Students’ Union is an incorporated company (No 7103465) and was established under the Education Act 1994. The Students’ Union is currently registering with the Charity Commission as Students’ Unions connected with exempt higher education institutions have been removed by section 11(9), Charities Act 2006, from the list of exempt charities in Schedule 2 to the Charities Act 1993. Principal address and registered office Leeds Met Students’ Union, B Block, Calverley Street, Leeds, LS1 3HE Charity Trustees / Directors Full Time Student Executive Trustees (elected by cross campus ballot) Office from July 2010 President Liam Challenger AP Community Wellbeing Jo Johnson AP Development Megan Taylor AP Diversity Jawanza Ipyana AP Education Carley Birkin AU President James Perry

Office from July 2009 Lewis Coakley Liam Challenger Ben McDougall Vicki Baars William Watson -

Student Trustees (selected by Nominations Committee) Student Trustee Anne-Marie Watkinson Student Trustee Scott McHugh (resigned June 2010) Student Trustee (elected by Student Representative Council) Student Trustee Abigail Phillips (resigned June 2010) External Trustees (selected by Nominations Committee) External Trustee John Priestley External Trustee Vivienne Rivis External Trustee Mike Wilkinson External Trustee (nominated by Leeds Metropolitan University) External Trustee Pete Briggs Auditors Crowe Clark Whitehill LLP (Formerly Horwath Clark Whitehill LLP) Arkwright House Parsonage Gardens Manchester M3 2HP

Bankers Lloyds TSB th

7 Floor 6/7 Park Row Leeds LS1 1VX

Solicitors Blacks LLP Hanover House 22 Clarendon Road Leeds LS2 9NZ

Leeds Met Students’ Union employs a Chief Executive to work closely with the Executive Officers and the Board of Trustees to ensure effective management of the Students’ Union as head of a senior management team as follows: Chief Executive Deputy Chief Executive Head of Finance Head of Communications & Events Head of Student Development Head of Representative Services

Nicky Goldthorpe Joanne Offer Oliver Yemeli Hannah Limming Anna Wallace Cassandra Pirelli

3


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 th

The Board of Trustees present their Annual Report for the year ended 30 June 2010, which includes the administrative information set out on page 2, together with the audited accounts for that year. Structure, governance and management Leeds Met Students’ Union is constituted under the Education Act 1994 as an unincorporated association of Leeds Metropolitan University (the University). The Union is bound by its Constitution. The Board of Trustees is in overall control of the Students’ Union subject only to a vote of the membership at an Annual General Meeting or in a referendum. The trustees of the Union are the five Sabbatical Trustees (President, Associate President Community Wellbeing, Associate President Development, Associate President Diversity, Associate President Education); one elected student trustee, two selected student trustees, and up to four external trustees (one of whom is nominated by the University). The Sabbatical Trustees are elected annually by a cross-campus ballot of all student members. Sabbatical Trustees are full time officers with a term of office of one year. The elected Student Trustee is the student elected as Chair of the Students’ Representative Council. The selected Student Trustees are recruited from within the student body and are selected by the Nominations and Governance Committee. The External Trustees are recruited outside of the student body and are selected by the Nominations and Governance Committee. The Sabbatical Team of five elected officers, together with the Chief Executive and five other senior managers have the responsibility for implementing the policies and strategies of the Union, approved by the Trustee Board. The Board of Trustee’s responsibilities are set out in the Students’ Union’s Memorandum and Articles which have been approved by Leeds Metropolitan University’s Board of Governors. The Students’ Union’s Board of Trustees is responsible for determining the mission, vision and values of the Students’ Union; the effective and efficient use of resources, the solvency of the organisation; approving annual estimates of income and expenditure; setting and monitoring organisational strategies, policies and regulations; putting in place effective systems of control and accountability; appointing the Chief Executive; and appointing the external auditors. th

The Board met four times in the year ended 30 June 2010, and considered, amongst other things, the strategy of the Students’ Union, the appointment of external auditors, the future of the Students’ Union’s pension scheme and the composition of the senior management team. The Board of Trustees discharges its responsibilities through 3 formally constituted committees. These are the Finance and Audit Committee, Employment and Remuneration Committee and Nominations and Governance Committee. The Board has established terms of reference for each committee which clearly set out the powers delegated by the Board and the committee’s authority to take decisions and act on behalf of the Board. The composition of the committees is designed to ensure an appropriate balance of external and sabbatical trustees. The roles of committees are summarised below and a table indicates their membership in the year th ended 30 June 2010.

4


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 The Finance and Audit Committee is responsible for scrutinising the financial statements, reviewing the internal control environment, overseeing risk management processes and advising the Board on risk management policy and recommending the appointment of external auditors. The Committee is also responsible for advising the Board on the financial health and solvency of the Union, financial strategy and financial forecasts. This year, the Finance and Audit Committee met five times. The Chief Executive and Head of Finance attend the meetings but are not members of the Committee. The Employment and Remuneration Committee advises the Board on policy and strategy relating to employment, health and safety and equal opportunities. This year, the Employment and Remuneration Committee met four times. The Chief Executive and Deputy Chief Executive attend the meetings but are not members of the Committee. The Nominations and Governance Committee is responsible for advising the Board on the appointment of trustees and the membership of committees. It also advises the Board on developments and good practice in governance. This year, the Nominations and Governance Committee met three times. Trustee

Category of Membership

Lewis Coakley (Chair) Vicki Baars

Sabbatical Trustee Sabbatical Trustee External Trustee Sabbatical Trustee Sabbatical Trustee Student Trustee Student Trustee External Trustee Student Trustee

Pete Briggs Liam Challenger Ben McDougall Scott McHugh Abigail Phillips Vivienne Rivis Anne Marie Watkinson William Watson Mike Wilkinson (Vice Chair)

Sabbatical Trustee External Trustee

Finance & Audit Committee Member

Employment & Remuneration Committee Ex Officio

Nominations& Governance Committee Member

Member Chair

Member

Member Member Chair

Chair

The Chair and Vice Chair form the Chair’s Group which has delegated responsibility from the Board to monitor the performance of the Chief Executive and make recommendations to the Board relating to the Chief Executive’s annual performance review. The Chair’s Group met four times this year. The Union has a wholly owned trading subsidiary, Leeds Met Students’ Union Trading Limited, for the purposes of carrying out the non-primary purpose trading activities of the Union. The Directors of the Company are the Students’ Union Board of Trustees.

5


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 Relationship with Leeds Metropolitan University The relationship between Leeds Metropolitan University and Leeds Met Students’ Union is established in the Regulations of the University and detailed in Leeds Met Students’ Union’s Articles approved by both organisations. Leeds Met Students’ Union receives a Block Grant from the University and part-occupies three buildings (two of which are owned by the University and one is owned by UPP, a private housing company). The University pays for utilities, portering and some cleaning staff. This non-monetary support is intrinsic to the relationship between the University and the Students’ Union. 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 Leeds Met Students’ Union for this free serviced accommodation has been included in the accounts for the first time, priced at a conservative £230K subject to further research on market prices for the few viable alternatives possible. Although Leeds Met Students’ Union continues to generate supplementary funding from various primary purpose 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 Trustee Board of the Students’ Union has examined the major strategic, business and operational risks faced by Leeds Met Students’ Union. A risk register has been established and will be updated at least annually. Where appropriate, systems or procedures will be established to mitigate the risks the Students’ Union faces. Budgetary and internal control risks have been minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure that they can continue to meet the needs of the Students’ Union. Aims, objectives and activities Leeds Met Students’ Union’s mission is “to endlessly strive to enhance the student experience” with a long term vision that we “will connect with, represent and inspire all students at Leeds Met”. Our charitable objects are detailed below. The advancement of education of the students of Leeds Metropolitan University for the public benefit by: •

providing the recognised representative channel between the members of the University, and between the members and any other body;

promoting the welfare, wellbeing, and interest of students through representation, advocacy and guidance;

enhancing the experience of students at Leeds Metropolitan University through the provision of cultural, educational, social, recreational, developmental, and sporting opportunities and facilities;

representing the views and interests of students within the University and the wider community; and

fostering the values of democracy, openness, inclusivity, and tolerance amongst students.

In pursuit of these aims we represent 30,000 students to the University; the local community and nationally via the National Union of Students. The Student Executive Officers are voted into their roles by the members to represent them. Their roles have different areas of interest but they are all here to listen to how the members want things to be done, and work with Union Staff and the Board of Trustees to make it happen. They represent members to the University, external organisations and the community.

6


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 The Union’s approach to representation centres around the Student Academic Representatives (STARs) and the Associate President Education whose aim is to ensure students receive the best possible education. STARs are elected to represent students’ learning and teaching issues. All of our 600 STARs receive training and support from the Union to enable them to represent students effectively. Being a STAR enables students to develop skills such as negotiation and assertiveness which are highly desirable to employers. The Union runs an Advice Service, which is a professional, friendly service to provide help to students with any problems. Our service is free and confidential. We give information in person at our reception desk, via email or from the website and we also run targeted information campaigns throughout the year. We also offer individual advice and we can act as a student’s representative. The main areas we help with are housing, money and University procedures. We provide an independent housing advice service, offering advice and representation in all aspects of housing. We offer information and advice on student finances including loans, fees and funding. We provide information, advice and representation on all aspects of University procedures, including appeals, plagiarism and re-sits. We can offer information and advice on contracts and pay, national insurance, tax and employment rights, and on health and wellbeing. We also provide general advice in many other areas. There are over 34 societies that students can get involved in making their leisure time at University more fun. We have a wide range of societies from Departmental Groups, to Faith and Cultural Groups, General Interest Groups, Media Groups, Performance Groups, and Political and Campaigning Groups. 82% of the 1,700 students in our societies agree that being involved in the Students’ Union has improved their student experience (source: Leeds Met Students’ Union Annual Review 2010). We run a variety of student-led projects supporting students in their own development and also ensuring that we continue to make positive contributions in the local community. Our Kids@Heart project provides after school clubs, the ReFloat project provides free glass recycling and we also provide a sports coaching for children in a local secondary school. We contribute to city wide strategies in running projects which help combat the environmental impact of the student changeover period and we help raise aspirations amongst young people by running projects which encourage interaction between them and University students. Students involved in our societies and volunteering gain valuable experience and skills which they can transfer to the jobs market when then leave University. We run three venues for students at Leeds Met University which provide students with a safe space in which to socialise and relax. We also have an entertainments venue which we use for social events such as gigs and drama performance and we also provide employment opportunities for about 150 students each year. The Student Representative Council which comprises 37 student representatives is responsible for dealing with the Union’s representational and campaigning activity. Any member of the Union can attend a Student Representative Council meeting and ask questions or make proposals. Our Halls Representatives represent students living in halls of residence and any student living in halls, who needs independent help or support from a peer, can speak to them. Our Community Representatives represent students of Leeds Met University living in the local community and attend community meetings with local residents, feeding back any issues to the Associate President Community Wellbeing as appropriate. The Students’ Union is a democratic organisation and officers are elected in cross campus ballots. Last year over 4,000 students voted in our elections (compared to 850 in the previous year which is an increase of just under 80%). We also run two referendums each year so that all students can have their say. Any student can put a question in for a referendum and the final questions are agreed by the Student Representative Council. Last year, students voted for a child friendly Union, better feedback on assessed work, improvements to timetabling and cheaper bus services. Our Associate President Diversity co-ordinates the work of our diversity caucus, which runs events such as “Christmas in a multi-cultural Britain” and “Women and Faith” and enables students to take part in events such as Leeds Pride, Holocaust Memorial Day and Black History Month. 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.

7


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 Achievements and performance Leeds Met Students’ Union achieved the following published objectives for 2009/10: Objective

Achievement

1

To be the recognised channel for student feedback.

Responses to the Students’ Union’s Annual Student Survey increased by just under 1,000. The report was discussed at course, faculty and university level with many recommendations being delivered.

2

To enable students to represent themselves in an efficient and effective manner.

Following a wholesale review of student representation at course and faculty level a more robust system of student representation was launched in 2009-10.

3

To focus on academic issues and representation.

During the year, 600 Student Academic Representatives were recruited. 250 STARs received over 20 hours of training so that they could represent the students on their courses.

4

To ensure that every student voice is heard.

The Students’ Union implemented a new governance system which puts students at the heart of the Students’ Union’s systems and procedures. This system included the introduction of Referendums for students to vote on issues such as cheaper buses in Leeds, improvements to timetabling, improved feedback on assessed work, and a child friendly Union.

5

To be committed to the wellbeing of our members.

The Students’ Union’s Advice Service sees an average of over 3,000 students each year. The Students’ Union also ran a number of campaigns during the year including our Knowledge Campaign aimed at improving student safety in the local community and our Keep Calm, Don’t Carry On campaign to get students to think about seeing a adviser if they have a problem.

6

To know who all our members are and relate to them properly.

A review of the way in which the Students’ Union communicates with our members was started in 2009-10 and will be completed during the next academic year. A communications budget was introduced along with a new post of Communications Assistant.

7

To support students in fulfilling their aspirations.

Over 2,000 students were involved in the Student Development Department. The Students’ Union has 34 active societies with over 1,700 members. The budget for societies was increased last year so that societies had more funding to support their activities.

8

To encourage students participation in volunteering and the local community.

CALM (Community Action at Leeds Met) organised 14 student led projects, including the Kids@Heart project, to provide after school clubs at two local schools, a sports coaching project at a local secondary school and Refloat which provides free glass recycling in LS6.

9

To attract and develop student leaders.

Each of the 6 Student Executive Officer positions was contested this year and over 4,000 students voted in the elections. Over 600 students were involved in planning and delivering activities for their fellow students. These students averaged around 2 hours of volunteering per week each, equating to more than 25,000 hours over the course of the year.

8


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 10

To provide inspiring opportunities for personal and professional development.

90% of students responding to our Annual Survey thought that it was important or very important that the Students’ Union works to develop students’ employability and support their recreational needs. 82% of students involved in societies agreed that being involved in the Students’ Union made their student experience better.

11

To generate income to support our delivery areas

10p in every £1 students spend in the Students’ Union goes back to our societies, volunteering, student media, academic representation, advice service and democracy.

12

To provide services that satisfy student demand.

Almost 50% of students at Leeds Met have attended a gig at the Students’ Union at some point. We organised 34 gigs during the year selling over 21,340 tickets.

13

To provide an excellent customer experience

Each of the three venues were visited by mystery shoppers organised through NUS Services Ltd during the year and were scored as “excellent” on meeting and greeting customers.

14

To seek out and invest in innovative partnerships.

The Students’ Union has built an excellent working relationship with Leeds University Union and we are currently discussing ways in which we could collaborate. We also have a successful partnership with the University to jointly administer the STARs programme.

Future Plans Leeds Met Students’ Union plans to build upon the achievements we made in 2009-10 (detailed above) in order to ensure that we are at the heart of students’ experience at Leeds Metropolitan University. In addition to our continuing work on the objectives above, our objectives for 2010/2011 and beyond are to: •

work closely with the University to implement Faculty Representatives to enhance the STARs programme;

consult the student membership and other stakeholders in reviewing the Students’ Union’s communications and to implement a marketing and communications strategy;

achieve a Green Impact silver award in 2011;

achieve Investors in People status in 2012;

review all our staffing processes and procedures to ensure that we have a team who can contribute positively to the student experience;

work with external retailers to enhance the services we offer to students;

work with the University to provide a Muslim prayer room within the Students’ Union;

set up and develop a second hand book shop for students; and

develop our national profile through officer/staff volunteer involvement in student and other organisations.

9


LEEDS MET STUDENTS’ UNION TRUSTEES’ REPORT FOR THE YEAR ENDED 30 JUNE 2010 Financial Review Leeds Met Students’ Union’s gross income from all sources this year totalled £2,223,081. Total expenditure of £2,143,022 on the wide-ranging student benefits we provide within a broadly balanced budget, as well as on the revenue-generating activities we undertake, left a surplus for the year of £80,060 increasing Leeds Met Students’ Union’s total reserves from £14,601 to £94,661. We have reviewed Leeds Met Students’ Union’s reserves requirements. Reserves stood at just below £95,000 at the year end. This level falls well short of our current minimum requirement of six months activity costs in hand. However, the Trustees are considering reviewing our reserves requirements in order to be more realistic as well as ensuring that we are able to cope with any unexpected downturn in funding or additional calls on our resources without immediately curtailing activities. The aim is to build up unrestricted reserves of between £250,000 to £300,000, at today’s prices in the future from the first available reserves generated by Leeds met Students’ Union. It is our intention to build our designated reserves up to the desired levels within the next five years. Leeds Met Students’ Union is currently affiliated to the National Union of Students at a cost of £43,927 per year, NUS Services Ltd at a cost of £300 per year, the Association for Managers in Students’ Unions (AMSU) at a cost of £750 per year, Advice UK at a cost of £280 per year and the National Association of Money Advisors (NASMA) at a cost of £195 per year. Custodian Activities: Societies Funds Leeds Met Students’ Union is custodian of the annual RAG proceeds from fundraising events organised by the students under Leeds Met Students’ Union auspices for distribution to the intended charities. Funds raised by this year’s RAG, amounting to £5,531, were added to the undistributed balance of £100 from the previous year, out of which £5,231 was distributed to eight major charities nominated by the RAG Committee, leaving a balance of £400 in hand for next year’s RAG activities. Future Funding The Board of Trustees confirms that Leeds Met Students’ Union has sufficient funds to meet all its obligations. The Block Grant from the University for 2010-11 has been confirmed at £844,866 and the commercial activities are expected to generate significant funds. Board of Trustees’ Responsibilities Charity Law and Leeds Met Students’ Union’s Articles require us as the charity trustees to prepare annual financial statements giving a true and fair view of the state of affairs of Leeds Met Students’ Union at its financial year-end and of Leeds Met Students’ Union’s income and expenditure for the year. In preparing those financial statements we are required to: • • •

select the most suitable accounting policies and apply them consistently; make judgements and estimates that are reasonable and prudent; and prepare the financial statements on a going concern basis unless it is not appropriate to presume that Leeds Met Students’ Union will continue in business.

We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Students’ Union and enable us to ensure that the financial statements comply with charity law and the particular requirements of Leeds Met Students’ Union’s Student Representative Council and the University under the Education Act 1994. We are also responsible for safeguarding the assets of the Students’ Union 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. Liam Challenger President 16 November 2010

10


LEEDS MET STUDENTS’ UNION INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LEEDS MET STUDENTS’ UNION We have audited the financial statements of Leeds Met Students’ Union for the year ended 30 June 2010 (the “financial statements”) which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes numbered 1 to 21. These financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Union’s members as a body. Our audit work has been undertaken so that we might state to the Union’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permissible, by law, we do not accept or assume responsibility to anyone other than the Union and the Union’s members as a body, for our audit work, for this report, or for the opinion we have formed. Respective responsibilities of Trustees and auditors The Union’s Executive Committee is responsible for preparing the Executive Report and the financial statements. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared. We also report to you if, in our opinion, the Executive Report is not consistent with the financial statements, if the Union has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit. Basis of opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Executive Committee in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Union’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Unqualified opinion In our opinion the financial statements: •

give a true and fair view, in accordance with the United Kingdom Generally Accepted Accounting Practice, of the state of the union’s affairs as at 30 June 2010 and of its income and expenditure for the year then ended.

Arkwright House Parsonage Gardens Manchester M3 2HP

CROWE CLARK WHITEHILL LLP Chartered Accountants & Registered Auditors

23/11/2010

11


LEEDS MET STUDENTS’ UNION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2010

Notes

Restricted £

2010 UnRestricted £

2009 (Restated) Total £

Total £

1,084,100 101

1,087,678 286

INCOMING RESOURCES Incoming resources from generated funds Voluntary income Donations & Grants Investment income Incoming resources from charitable activities Other income Total Incoming resources RESOURCES EXPENDED Cost of generating funds Charitable activities Governance costs Total resources expended Net Movement in Funds Fund Balances Brought Forward Fund Balances Carried Forward

2

230,000 -

854,100 101

3

33,547

1,096,262

4

-

9,071

9,071

10,112

263,547

1,959,534

2,223,081

2,323,878

262,817 -

1,858,060 22,144

2,120,878 22,144

2,113,209 18,257

262,817

1,880,204

2,143,022

2,131,466

730

79,330

80,060

192,412

6,475

8,126

14,601

(177,805)

7,205

87,456

94,661

14,601

5 6

1,129,809

1,225,801

The statement of financial activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses has not been prepared.

All the above amounts relate to continuing activities with exception of prior year where amounts relating to the discontinuation of The Met Shop have been included.

12


LEEDS MET STUDENTS’ UNION BALANCE SHEET AS AT 30 JUNE 2010 2009 (restated)

2010

Notes £

£

£

£

FIXED ASSETS Tangible assets

8

117,193

113,468

Investment

9

60

60

117,253

113,528

CURRENT ASSETS Stock Debtors Cash at bank CREDITORS: amounts falling due within one year

10

11

NET CURRENT ASSETS/(LIABILITIES)

14,583 44,235 119,758 178,576

11,649 92,258 134,856 238,763

(201,167)

(238,246) (22,591)

TOTAL ASSETS LESS CURRENTS

94,661

517 114,045

LIABILITIES CREDITORS-Amounts falling due after one year

12

NET ASSETS/(LIABILITIES) RESERVES

-

(99,444)

94,661

14,601

7,205

6,475

87,456

8,126

94,661

14,601

16

Restricted Clubs and societies accounts Unrestricted Appropriation account

The financial statements were approved and authorised for issue by the Board of Trustee and on 16 November 2010 were signed on its behalf

L Challenger President

N Goldthorpe Chief Executive

13


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 1. Accounting Policies (a) Accounting convention The accounts have been prepared under the Historical Cost Convention and in accordance with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” published in March 2005, the Financial Reporting Standard for Small Entities (effective April 2008), and applicable UK Accounting Standards.

(b) Incoming resources All incoming resources are recognised in the Statement of Financial Activities (SOFA) when the Charity is legally entitled to the income and the amount can be quantified with reasonable certainty. Incoming resources are not shown net of expenditure.

(c) Resources expended All expenditure is accounted for on an accruals basis and is stated net of VAT. Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs which can be directly allocated to activities and those costs of an indirect nature necessary to support them. Costs are allocated between the expenditure categories of the SOFA based on usage of the resource. Where costs cannot be directly allocated they are apportioned on an appropriate basis and recognised in SOFA. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

(d) Grants received Revenue grants other than the block grant are credited to the SOFA in the year in which they are received. The block grant is credited to the SOFA in the year in which it is receivable. In the SOFA grants are shown as income and the related expenditure disclosed as appropriate.

(e) Tangible fixed assets Fixed assets are stated at cost less accumulated depreciation. Assets are capitalised if they cost more than £500 and are expected to last more than a year. Equipment, fixtures, fittings and building improvements are included at cost. Depreciation is provided at the following annual rates in order to write the cost of assets off over their estimated useful lives using the straight line method:Fixtures and Fittings 20% - 33% of Cost Computer and Office Equipment 20% of Cost Improvements to Buildings Between 20% of costs

14


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 (f)

Investments Fixed asset investments are valued at cost.

(g) Pension costs The union 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 consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS17, in these contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year.

(h) Leased assets Rentals payable under operating leases are charged to the SOFA on a straight line basis over the period of the lease.

(i)

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

(j)

Fund accounting The Students’ Union has three distinct types of fund in its balance sheet:Unrestricted, or general, funds arising from the accumulated surplus from its various activities. Restricted funds representing surpluses set aside by the Students’ Union for specific purposes, such as Club and Societies Accounts. It also includes monies placed in the custody of the Students’ Union but not under its control. Designated Funds are funds set aside by the Board of Trustees for a specific purpose. The income and expenditure are shown in the SOFA. The assets and liabilities representing each fund are shown in the notes to the accounts.

(k) Going concern The relationship between Leeds Metropolitan University and Leeds Met Students’ Union is established in the Regulations of the University and detailed in Leeds Met Students’ Union’s Articles approved by both organisations. Leeds Met Students’ Union receives a Block Grant from the University and part-occupies three buildings (two of which are owned by the University and one is owned by UPP, a private housing company). The University pays for utilities, portering and some cleaning staff. This non-monetary support is intrinsic to the relationship between the University and the Students’ Union. Although Leeds Met Students’ Union continues to generate supplementary funding from various primary purpose 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. The financial statements have therefore been prepared on the going concern basis.

15


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 2.

Donations and Grants 2010 UnRestricted £

Restricted £ Block Grant from Leeds Metropolitan University Facilities in kind

2009

230,000 230,000

854,100 854,100

Total £

854,100 230,000 1,084,100

Total £

857,678 230,000 1,087,678

3. Incoming Resources from Charitable Activities 2010

2009

UnRestricted £

Restricted £

Total £

Total £

Clubs and Societies Freshers income NUS Extra Cards Marketing & Communication Student Media Other charitable income Bars Kitchen Games and Vending Entertainment Other trading income

33,547 -

39,903 16,946 9,094 5,104 1,618 590,475 230,450 53,126 102,182 47,364

33,547 39,903 16,946 9,094 5,104 1,618 590,475 230,450 53,126 102,182 47,364

25,947 45,816 18,061 2,127 2,740 977 623,625 213,558 70,436 114,585 107,929

Total Incoming Resources From Charitable Activities

33,547

1,096,262

1,129,809

1,225,801

4. Other income 2010 Restricted £ Rental income Sundry income

2009

UnRestricted £

Total £

Total £

-

8,571 500

8,571 500

10,112 -

-

9,071

9,071

10,112

16


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010

5. Cost of Charitable Activities 2010 UnRestricted £

Restricted £

2009 Total £

Total £

Representation Sabbatical salaries Staff wages Affiliations, subscription and membership costs Conferences and training Travel Publications Elections Student Caucuses NUS Extra Support staff costs Other support costs

-

110,627 67,646

110,627 67,646

95,856 34,500

38,826

64,367 12,924 3,382 2,172 5,036 13,165 11,899 77,770 52,499

64,367 12,924 3,382 2,172 5,036 13,165 11,899 77,770 91,325

64,116 14,247 2,990 833 4,055 8,085 8,286 63,652 97,893

Representation total expenditure

38,826

421,486

460,312

394,514

Student advice and welfare Staff wages Training and office costs Support staff costs Other support costs

11,529

85,073 1,945 23,093 15,589

85,073 1,945 23,093 27,118

83,731 3,805 23,917 36,782

Representation total expenditure

11,529

125,699

137,229

148,235

Student development Staff wages Student societies Student media Volunteering costs Support staff costs Other support costs

32,817 13,792

48,204 12,464 4,523 6,091 27,625 18,649

48,204 45,281 4,523 6,091 27,625 32,441

72,761 27,776 4,481 3,364 24,292 37,360

Student development total expenditure

46,609

117,556

164,166

170,034

17


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 4

Cost of Charitable Activities (continued) 2010 Restricted £

UnRestricted £

2009 Total £

Total £

Engagement (marketing and communication) Staff wages Staff wages Website Marketing and publicity Freshers Support staff costs Other support costs

7,853

4,681 1,492 25,291 7,912 19,897 15,730 10,618

4,681 1,492 25,291 7,912 19,897 15,730 18,471

1,080 2,529 61,313 17,738 27,280

Engagement total expenditure

7,853

85,621

93,474

109,940

158,000

376,740 263,212 134,255 147,305 47,447 138,738 -

376,740 263,212 134,255 147,305 47,447 138,738 158,000

464,007 262,994 137,959 86,397 88,256 86,399 158,000

Trading Trade stock Trade staff wages Trade student wages Trade operating costs Trade depreciation Support staff costs Other support costs Trading total expenditure Summary of charitable costs by type Representation Student advice and welfare Student development Engagement Trading

158,000

1,107,697

1,265,697

1,284,012

38,826 11,529 46,609 7,853 158,000

421,486 125,699 117,557 85,621 1,107,697

460,313 137,228 164,166 93,474 1,265,697

394,514 148,235 176,509 109,940 1,284,012

Summary total expenditure

262,817

1,858,060

2,120,878

2,113,209

Support costs allocated above 2010

Wages and salaries Recruitment costs Staff travel and subsistence Training Printing and stationery Telephones Insurance Postage Computer licences Repairs and maintenance Depreciation General expenses Bank charges Total support costs

2009

Total £ 282,955 5,274 4,728 10,530 9,588 14,801 6,635 1,292 7,144 3,421 8,596 24,025 1,322

Total £ 215,999 13,455 3,137 5,305 7,115 17,421 6,000 2,289 5,609 8,150 13,793 41,518 3,525

380,311

343,315

18


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 6. Governance Costs 2010

2009

Total £ Auditors’ remuneration: As auditors For non-audit services Amounts paid to predecessor auditors: As auditors For non-audit services

Total £

10,000 6,500 16,500

-

5,644 5,644

13,750 4,507 18,257

22,144

18,257

7. Staff cost 2010

Wages and salaries NI costs Pension costs

2009

Total £ 878,340 64,281 55,524 998,145

Total £ 772,195 53,480 61,012 886,687

2010 No.

2009 No.

No employee earned over £60,000 per annum. The average number of employees was as follows:

43 80 123

Full time Student – term time only

38 85 123

8. Tangible Fixed Assets

Computer equipment 2010 £ 118,477 935 119,412

Fixtures fittings and Office equipment 2010 £ 80,216 7,392 87,608

Total 2010 £ 408,757 59,767 468,524

2009 £ 705,827 78,924 (279,710) 505,041

100,447 21,541 121,988

93,149 11,763 104,912

52,116 12,850 64,966

295,288 56,043 351,331

547,196 97,854 (253,477) 391,573

6,370

53,803

14,500

22,641

117,193

113,468

12,128

47,913

25,328

28,100

113,469

158,631

Cost At 1 July 2009 Additions Disposals At 30 June 2010

Buildings 2010 £ 11,038 24,009 35,047

City dances and concerts 2010 £ 50,666 50,666

Bar furnishing 2010 £ 148,360 27,431 175,791

Accumulated depreciation At 1 July 2009 Charge Disposals At 30 June 2010

11,038 4,131 15,169

38,538 5,758 44,296

Net book amount At 30 June 2010

19,878 -

At 30 Jun 2009

19


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 9. Investments 2010

2009 (Restated)

£

£

At Cost at 1 July 2009 and 30 June 2010: 60

Investment in NUS Services Limited

60

At 31 July 2010 the Union held investments in the following company which is incorporated in the United Kingdom. Name of Company NUS Services Limited A Shares

Main Trading Activity Purchasing Services

Equity Held 0.33%

10. Debtors 2010 £ Trade debtors Prepayments and accrued income Due from LMU Other debtors

2009 (Restated) £ 6,131 36,022 834 1,248

27,672 63,338 1,248

44,235

92,258

11. Creditors: amounts falling due within one year 2010 £ Trade creditors Due to LMU PAYE and Social Security VAT Accruals and deferred income LMU Loan Repayment

2009 (Restated) £ 19,020 9,978 16,051 8,546 48,128 99,444

37,549 8,895 16,207 10,684 66,163 98,748

201,167

238,246

20


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 12. Loan from Leeds Metropolitan University 2010

2009

£

£

At 1 July 2009

198,192

282,102

Repayments made in year

(98,748)

(83,910)

99,444

198,192

At 30 June 2010

2010

2009

Repayment due as follows

£

Due within 1 year Due 1-2 years

99,444 -

98,748 99,444

99,444

198,192

£

Interest is payable on the loan at the Bank of England base rate and this is charged to the SOFA in the accounting period of repayment.

13. Leasing Commitment The amount paid during the year in respect of assets under operating leases was £10,144 (2009: £7,291), in addition the student’s Union has an annual commitment of £1,009 for website hosting and maintenance which has not expired.

14. Trustees’ Remuneration The full time Sabbatical Officers were the only members of the Board of Trustees to receive any remuneration. There were six Sabbatical Officers in this financial year (five in 2009). The salary costs were as followed:

Salaries including National Insurance Contributions

2010

2009

£

£

110,627

95,856

110,627 95,856 Other Members of the Board of Trustees are reimbursed for their travel costs and any other expenses incurred during the course of their duties. During the year, no expenses were reimbursed. (2009 – nil).

21


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 15. Pension Costs The Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit Scheme whose membership consists of employees if students’ unions and related bodies throughout the country. Benefits in respects of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respects of service from 1 October 2003 onwards accruing on a career Average Devalued Earnings (CARE) basis. The most recent valuation on the scheme was carried out as at 1 October 2007 and showed that the market value of the Scheme’s assets was £56,318,000 with these assets representing 69% of the value of benefits that had accrued to members after allowing for expected future increase in rearing. The deficit on an ongoing funding basis amounted to £24,901,000 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 salaried and pensions. The following assumptions applied at 1 October 2007:• The investment return would be 7.3% per annum before retirement and 5.3% per annum after retirement. • Salaries would increase at 5.2% per annum, equivalent to 2.0% per annum above inflation. Pensions accruing on the CARE basis would revalue at 3.2% per annum. • Present and future pensions would increase at rates specified by Scheme rules with appropriations assumptions where these are dependent on inflation. The 2007 valuation recommended a contribution requirement expressed in two parts: a rate of 17.3% of Earning (with higher rates in certain circumstances) paying for future accrual, with additional monthly contributions expressed in monetary terms intended to clear the ongoing funding deficit over a period of 15 years. These rates applied with effect from 1 October 2008 and will be reviewed following completion of the next valuation due with an effective date of 1 October 2010. Surpluses or deficits which arise at future valuations will also impact on the Union’s future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension Protection Funds. The contribution rate (excluding deficit contributions) for the period from 1 October 2009 to 30 June 2010 applicable to this Union for the majority of members is 10% of Earnings for members and 7.3% of Earning for the Union (17.3% in aggregate) Prior to 1 October 2008, the contribution rates were based on the results of the 2004 actuarial valuation; a rate of 15.7% of Earning (with higher rates in certain circumstances) paying for future accrual, with additional monthly contributions expressed in monetary terms in respects of the deficit. The contributions paid into the Scheme by the Union in respect of eligible employees for the year ended 30 June 2010 amounted to £77,887(2009: £61,012), including funding deficit contributions.

22


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010

16. Reserves

Balance at 1 July 2008 as previously stated £

Prior year adjustment £

Balances at 1 July 2008 as restated £

-

-

Unrestricted reserves Designated reserves: Cyclical maintenance reserve

6,444

General reserves: Appropriation account Total unrestricted reserves Total reserves

Restricted reserves Rent in kind Clubs and society accounts Total restricted reserves

Incoming resources

Outgoing resources

Surplus at 30 June 2009 at restated

£

Balance as at 30 June 2010 £

230,000 33,547 263,547

(230,000) (32,817) (262,817)

7,205 7,205

-

-

-

-

6,444 -

8,126 8,126

1,959,534 1,959,534

(1,880,204) (1,880,204)

87,456 87,456

-

14,601

2,223,081

(2,143,022)

94,661

£

Incoming resources £

-

6,475 6,475

-

(6,444)

2,297,931 2,297,931

(2,111,994) (2,111,994)

2,323,878

(2,131,466)

£

£

Transfers £

-

25,947 25,947

(19,472) (19,472)

-

6,444

-

(185,563) (179,119)

1,308 1,308

(184,255) (177,781)

(179,119)

1,308

(177,811)

Outgoing resources

23


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 17. Capital Commitments At 30 June 2010 the Union had capital commitments of £45,000 (2009: £71,000) in respect of the replacement of equipment, fixtures and fittings in the bars, this will be funded from the free reserves.

18. Related Party Transactions The Union is an exempt charity for the purpose of the Charity Act 1993 deriving charitable status from Leeds Metropolitan University. This will change when transitional arrangements under the Charity Act 2006 are completed. The Union is in receipt of a recurrent grant from the Parent body of £854,100 (2009: £857,678). In addition the Union occupies the University’s buildings on a rent free basis under an informal arrangement. In accordance with Charities SORP 2005, the Trustees have valued the use of the buildings with reference to market rents at £230,000 (2009 - £230,000).

19. Taxation The Union’s activities fall within the exemption afforded by the provision of the Income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in these accounts.

20. Controlling interest The ultimate control of the Union is vested under the Constitution in the members in General Meetings. As such no single person or entity controls the Union as defined by Financial Reporting Standard for Small Entities (effective April 2008).

21. Prior Year Adjustment The Students’ Union has adopted the principles of accounting and reporting under the Charities Statement of Recommended Practice (SORP 2005), for the first time in the current period, in advance of registration with the Charities Commission. Accordingly, comparatives have been restated where appropriate. In addition, the Union had a shareholding investment in NUS Services Limited that had not been recognised in the balance sheet in prior years.

22. Affiliations, Subscriptions and Membership 2010 £ AMSU Advise UK Ltd (Formerly FIAC) National Union of Students NUS Services LTD (Central Billing Membership fee) UNIPOL

750 280 43,493 300 21,320 66,143

2009 £ 757 280 41,279 300 21,500 64,116

23. Support Costs Costs incurred by the Union such as support staff costs, and administration costs are shared between activities. The Union’s policy is to allocate these costs between various activities on the basis of assessed consumption, currently the basis used for shared costs are sales income, staff head count and staff costs.

24. Events after the balance sheet date On 1 August 2010, the assets and liabilities of the Leeds Met Students’ Union were transferred in a company limited by guarantee, Leeds Met Students’ Union (registered number 7103465). All activities will be undertaken by this organisation in the future and the unincorporated association will be wound up.

24


LEEDS MET STUDENTS’ UNION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2010 25.

Analysis of net assets between funds

Tangible fixed assets Investments Current assets Creditors due within one year Creditors due in more than one year

Restricted Funds 2010 £

Unrestricted Funds 2010 £

Total Funds 2010 £

Total Funds 2009 £

7,205 -

117,193 60 171,371 (201,167) -

117,193 60 178,576 (201,167) -

113,468 60 238,763 (238,246) (99,444)

7,205

87,456

94,661

14,601

25

audited-accounts-2010