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WARWICK STUDENTS' UNION ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 1 August 2011 to 31 July 2012

COMPANY REGISTRATION NUMBER: 07297865 CHARITY NUMBER: 1136894


CONTENTS PAGE

Legal and Administrative Information Annual Report of the Board of Trustees Statement of the Board of Trustees' Responsibilities Independent Auditors' Report

1 -5 6 - 19 20 21 - 22

Group Statement of Financial Activities

23

Balance Sheets

24

Consolidated Cash Flow Statement

25

Principal Accounting Policies

26 - 29

Notes to the Financial Statements: Note 1 Note 2 Note 3 Note 4

Charitable Activity and Support Costs Governance Costs Net Incoming Resources for the Period Staff Costs

30 - 31 31 32 32 - 33

Note 5 Note 6 Note 7 Note 8 Note 9

33 34 34 35 - 36 36

Note 10 Note 11 Note 12

Trustees' Remuneration and Expenses Tangible Fixed Assets Capital Commitments Fixed Asset Investments Stocks Debtors Creditors Provisions for Liabilities and Charges

Note 13 Note 14 Note 15

Restricted Funds Designated Funds Analysis of Net Assets between Funds

38 38 39

Note 16 Note 17 Note 18

Lease Commitments Cash Flow Statement Pension Scheme

39 40 41

Note 19

Related Party Transactions

42

WARWICK STUDENTS' UNION For the year ended 31 July 2012

37 37 38


LEGAL AND ADMINISTRATIVE INFORMATION UNION

WARWICK STUDENTS' UNION

CHARITABLE STATUS

Warwick Students' Union is a charitable company limited by guarantee. Warwick Students' Union is a charity established under the Education Act 1994. Warwick Students' Union charity registered with the Charity Commission for England and Wales on 15 July 2010. Registered UK charity number: 1136894

COMPANY

Warwick Students' Union is a charitable company limited by guarantee registered in England and Wales on 29 June 2010. Registered company number: 7297865

REGISTERED OFFICE

WARWICK STUDENTS' UNION University of Warwick Gibbet Hill Road COVENTRY CV4 7AL

BOARD OF TRUSTEES

Search and Nominations Committee ensures that Warwick Students' Union has effective systems for the appointment and training of trustees and that the membership of the Board of Trustees is appropriate.

SABBATICAL OFFICERS 2011-2012

2012-2013

Appointed

Resigned

L Boe S Ruston G Whitworth C Luck M Rogers C Sury I John

President Education Union Development Democracy Societies Sports Welfare

1 August 2011

31 July 2012

1 August 2011

31 July 2012

1 August 2011

31 July 2012

1 August 2011

31 July 2012

1 August 2011

31 July 2012

N Swain J Entwistle-Wilkinson C March A Chowcat S Cragg N Cabral B Sundell

President Education Democracy & Development Postgraduate Societies Sports Welfare & Campaigns

1 August 2012

WARWICK STUDENTS' UNION For the year ended 31 July 2012

1

1 August 2011

31 July 2012

1 August 2011

22 June 2012

1 August 2012 1 August 2012 1 August 2012 1 August 2012 1 August 2012 1 August 2012


LEGAL AND ADMINISTRATIVE INFORMATION BOARD of TRUSTEES continued WARWICK STUDENTS' UNION TRUSTEES Sabbatical Officer Trustees

Student Trustees

External Trustees

SECRETARY

Appointed

L Boe Chair S Ruston G Whitworth C Luck M Rogers Vice Chair C Sury I John N Swain Chair J Entwistle-Wilkinson C March A Chowcat S Cragg N Cabral B Sundell A Clarey C Watts J L E Wolfson S Cragg A K S Mou C Ogilvie A Evans S Hewlings A Moore N Shiers S Brazell P Kallberg

WARWICK STUDENTS' UNION For the year ended 31 July 2012

1 August 2010

31 July 2012

1 August 2010

31 July 2012

1 August 2010

31 July 2012

1 August 2010

31 July 2012

1 August 2011

31 July 2012

1 August 2011

31 July 2012

1 August 2011

22 June 2012

1 August 2012 1 August 2012 1 August 2012 1 August 2012 1 August 2012 1 August 2012 1 August 2012 29 June 2010

31 July 2012

29 June 2010

31 July 2012

1 August 2010

31 July 2012

1 August 2011

31 July 2012

1 August 2011

31 July 2012

1 August 2011

31 July 2012

1 August 2012 1 August 2012 1 August 2012 1 August 2012 5 December 2012 5 December 2012

L C Morrison T W I King T Smeaton J Ryder E Cox H J Hunt

1 August 2010

17 January 2012

1 August 2010

5 December 2012

7 December 2011 7 December 2011

J Clements

29 June 2010

Appointed J Clements

14 July 2008

2

12 October 2011

1 August 2010 1 August 2010

SENIOR MANAGEMENT Chief Executive

Resigned


LEGAL AND ADMINISTRATIVE INFORMATION COMPANY

STUDENTS' UNION SERVICES WARWICK LIMITED

GOVERNING INSTRUMENT

The company is a limited company with share capital. It is governed by its Memorandum and Articles of Association.

COMPANY REGISTERED NUMBER DIRECTORS

2197761 The following director was appointed on 1 August 2010 and resigned on 31 July 2012: G Whitworth The following director was appointed on 1st August 2011 and resigned on 31 July 2012: C Sury The following directors were appointed on 1 August 2012: C March N Cabral The following director was appointed on 18 November 2010: A H Smith

COMPANY SECRETARY

J Clements

REGISTERED OFFICE

SUHQ Warwick Students' Union University of Warwick Gibbet Hill Road Coventry CV4 7AL

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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LEGAL AND ADMINISTRATIVE INFORMATION COMPANY

MEMBERSHIP SOLUTIONS LIMITED

GOVERNING INSTRUMENT

The company is a limited company with share capital. It is governed by its Memorandum and Articles of Association.

COMPANY REGISTERED NUMBER DIRECTORS

5525449 The following director has held office since incorporation 2 August 2005: C Horton The following director was appointed on 29 November 2007: S Gilling The following director was appointed on 12 July 2008: J Clements The following director was appointed on 1 August 2009: J Bonsall The following directors were appointed on 1 August 2011 and resigned on 31 July 2012: L Boe G Whitworth The following directors were appointed on 1 August 2012: N Swain C March

COMPANY SECRETARY

J Clements

REGISTERED OFFICE

SUHQ Warwick Students' Union University of Warwick Gibbet Hill Road Coventry CV4 7AL

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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LEGAL AND ADMINISTRATIVE INFORMATION BANKERS

NatWest plc 24 Broadgate Coventry West Midlands CV1 1NE Barclays Bank plc 25 High Street Coventry West Midlands CV1 5QZ

SOLICITORS

Band Hatton & Co 1 Copthall House Station Square Coventry West Midlands CV1 2FY Bates Wells and Braithwate London LLP 2 - 6 Cannon Street London EC4M 6YH

AUDITORS

WARWICK STUDENTS' UNION For the year ended 31 July 2012

Baker Tilly UK Audit LLP Chartered Accountants St Philips Point Temple Row Birmingham B2 5AF

5


ANNUAL REPORT OF THE BOARD OF TRUSTEES The Board of Trustees of the Union submit their Annual Report for the period ended 31 July 2012 which includes the administrative information set out on pages 1 to 5 together with the audited accounts for the year. The Board of Trustees have prepared this in accordance with the Accounting and Reporting by Charities published in March 2005 (Statement of Recommended Practice 2005).

MEMBERS OF THE UNION Full Members All registered students of the University of Warwick except those who exercise their right not to be a member under clause 22 (c) of the Education Act 1994. Sabbatical Officers of the Union are full members of the Union. Associate Members Those persons admitted to membership by the Student Council or a delegated officer, who have paid any required fee.

STRUCTURE, GOVERNANCE AND MANAGEMENT Warwick Students' Union (the Union) is constituted under the Education Act 1994 as a charity with internal rules and regulations approved by University Council, the governing body of the University of Warwick. The Union's charitable objects under the Act, to advance the University's educational purposes by providing representation and support for the students of the University of Warwick, are supplemented by the further object of helping members to develop their own charitable activities as participants in civil society. Warwick Students' Union has moved from the traditional unincorporated association model and has registered as a charity with the Charity Commission and incorporated as a company limited by guarantee as of 1 August 2010, when Students' Unions connected with exempt higher 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.

BOARD OF TRUSTEES The Union is administered by its Board of Trustees comprising:- up to five appointed external lay members - up to six appointed full student members who are not Sabbatical Officers - up to seven student Sabbatical Officers (including the President of the Union) The President of the Union acts as Chair of the Board of Trustees. The appointed Student Trustees are recruited to the Board and selected by the Trustees and Student Council to serve a maximum term of two years.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) BOARD OF TRUSTEES continued Officers of the Union The Officers of the Union are: -

Sabbatical Officer Trustees Chair and Deputy Chair of Student Council Chairs of the societies and sports committees four Liberation Officers University Faculty Representatives on the Student Staff Liaison Committees

There are up to seven Sabbatical Officer Trustees including a President, Deputy President and a Sabbatical Officer with responsibility for finance. The Sabbatical Officers are officer trustees elected through a secret ballot by the members each year, normally serving for one year in office but can serve a second term if re-elected. These are full time posts remunerated as authorised by the Education Act and the Memorandum and Articles of Warwick Students' Union. Trustees Induction and Training Upon appointment all trustees receive a variety of information through their induction. Trustees are briefed on their legal obligations and other trustee responsibilities. The Sabbatical Officers are new to the Board every year, so they undergo more intensive, in depth training to ensure that they are fully aware of their roles and responsibilities and can perform their duties to the best of their abilities as soon as possible. There is an on-going training programme for Trustees for issues which may occur during their term of office.

TRUSTEES POWERS AND RESPONSIBILITIES Trustees' General Authority The Board of Trustees has ultimate responsibility for the financial matters and procedures of the Union. The Board of Trustees may choose to prohibit the implementation of any policy recommended by Student Council which has financial implications if it is passed without a realistic financial plan is not legal or may not be in the best interests of the Union. The Board of Trustees is assisted by committees where appropriate and has delegated the day-to-day running of Warwick Students' Union to the Chief Executive. Committees The Board of Trustees meets at least five times a year to receive reports from committees, Sabbatical Officers, Senior Management and the Chief Executive, to review the Union's performance and administration generally and to agree policy issues arising, subject to consultation with the Student Council.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT Committees The Board of Trustees meets at least five times a year to receive reports from committees, Sabbatical Officers, Senior Management and the Chief Executive, to review the Union's performance and administration generally and to agree policy issues arising, subject to consultation with the Student Council. The Board of Trustees is supported by three committees which focus on certain key aspects of Warwick Students' Union governance and management:- The Search and Nominations Committee - The Audit and Risk Committee - The Finance and Human Resources Committee Search and Nominations Committee This ensures that new trustees are recruited, inducted and developed properly. They also have responsibility for recruitment of the Chief Executive. Audit and Risk Committee This monitors the Union's finances, risk profile and other aspects which could impact on Warwick Students' Union's organisational health as well as ensuring that the Union is complying with relevant legislation. Finance and Human Resources Committee This examines issues relating to finance. It scrutinises the management and annual accounts, financial plans and annual budgets. It also monitors issues relating to staff including the staff survey results, pay changes, training and development as well as staff policies.

STUDENT COUNCIL The Union operates on democratic principles, working for and with our members, the students of the University of Warwick. The voice of students is represented by Student Council, elected by and from members of the Union. Student Council has the primary responsibility for the setting, implementation and oversight of Union policy. Union policy may be amended by resolutions debated at All Student Meetings and voted for by members. The composition and proceedings of Student Council are set out in the By-laws. Policies held by Student Council cannot be overturned without being debated and voted on at a further All Student Meeting. Policies may be overturned by the Board of Trustees only for financial, reputational or legal reasons.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) STUDENT COUNCIL continued The Union maintains a policy file and record of lapsed policies. Policies lapse after two years unless renewed by Student Council who will specify the next renewal date. The Student Council receives a quarterly report from the Trustees. RELATIONSHIP WITH THE UNIVERSITY OF WARWICK The relationship between the University and the Union is established in the Charter, Statutes, Ordinances and Regulations of the University. The Union receives a block grant from the University and occupies a building owned by the University Foundation Fund which is leased to the Union at an agreed rent. There is no reason to believe that the block grant or equivalent support from the University of Warwick will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to take such steps as are reasonably practicable to ensure that the Union operates in a fair and democratic manner and is accountable for its finances. Warwick Students' Union therefore works alongside the University of Warwick to ensure that the affairs of the Union are properly conducted and that the educational and welfare needs of the Union's members are met. RISK MANAGEMENT The Trustee Board has examined the main strategic business and operational risks faced by the Union. A risk register has been established and is updated at least annually. Where appropriate, systems and procedures have been established to mitigate the risks the Union faces and these are periodically reviewed to ensure that they continue to meet the needs of the Union. Budgetary and internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with the health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure they continue to meet the needs of the Union. DISABLED PERSONS Full and fair consideration is given to applications for employment by disabled persons, having regard to their aptitudes and abilities. Should an employee become disabled during their employment, all efforts will be made to continue their employment and to provide appropriate training and support. Training, career development and promotion opportunities will be, as far as possible, identical to those for other employees.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) AIMS, OBJECTIVES AND ACTIVITIES Our Mission Warwick Students' Union - creating a better experience for students at Warwick. Our Objects The objects of the Union are the advancement of education of students at the University of Warwick for the public benefit by:(i) promoting the interests and welfare of students at Warwick Students' Union during their course of study and representing, supporting and advising students. (ii) being the recognised representative channel between students and the University of Warwick and any other external bodies; and (iii) providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students. The Trustees have had regard to the Charity Commission Guidance on Public Benefit and believe that the objects above comply with the public benefit requirement. Our Values We are:-

Democratic, student led, member focussed and representative the Independent voice of Warwick students Ethical, fair, principled, transparent and environmentally sound Fun, friendly, vibrant and entertaining Informative, supportive, knowledgeable, responsive and useful Enriching, helping students develop and nurture their aspirations Accessible, diverse, welcoming, tolerant and inclusive

In pursuit of this vision, the Union will ensure the diversity of its membership is recognised, valued and supported and as such has established departments and services for use by its members and to support its work with the University of Warwick and other organisations on behalf of students. These include the Union's Advice and Welfare Centre and the Student Resources Centre which hosts Democracy and Representation, Student Activities and Student Development. There is also the Venue, Union Bars and Catering outlets. The Sabbatical Officers represent students by sitting on key committees and working groups of the University of Warwick. This ensures that the student voice is heard and responded to at all levels of the University to enhance the student experience. Student representatives now sit on and

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) AIMS, OBJECTIVES AND ACTIVITIES (continued) Our Values continued contribute to over 30 University committees and through the Staff - Student Liaison Committee system (SSLC) approximately 650 students effectively liaise with University departments to raise student concerns and work to improve the teaching and learning experiences of students. The Union's Executive Officers also meet regularly with Local Authorities, local Primary Care Trusts and other providers of public services affecting students. To further enhance the student experience, Warwick Students' Union involves and supports students from all walks of life to get involved with both the University and local community by actively promoting the benefits of volunteering in student-led activities such as Warwick Volunteers and the Inspire scheme This involves students visiting comprehensive schools in the West Midlands area to talk about their lives as students with pupils who may not have considered embarking on a course in higher education. Warwick Students' Union also supports approximately 75 sports clubs and 230 student societies offering students a wide range of academic, social, cultural, charitable and interest based groups. Students have the opportunity to meet new people and share their interests as well as develop transferrable skills.

ACHIEVEMENTS AND PERFORMANCE Headline Key Performance Indicators (KPI's) Well run organisations set clear objectives each year and communicate these to everyone involved. A crucial component of these objectives is being able to see whether they have been successfully achieved. The measures put in place are Key Performance Indicators (KPI's) and they are - in simple terms - the way of benchmarking achievement relating to aims for the year. Seven areas were identified for monitoring with KPI's during the 2011-12 financial year: - Membership Participation: Membership numbers - Warwick Sport and Societies Federation - Representation: Voter turn out in autumn and officer elections - Communications: % of students voting that the website is at least average (Big 5 Survey) - Staff: % of staff who feel valued by the Union (Staff Survey) - Finance: Achieve or exceed budget surplus of ÂŁ49k for 2011-12 - Impact: % of people who feel that the Union has contributed positively to their time at Warwick - Environmental Impact: Achieve at least a silver Green Impact Award

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) ACHIEVEMENTS AND PERFORMANCE (continued) Warwick Students' Union achieved the following published objectives for 2011-12: Objective

Achievement

Impact - Our purpose: Number of people who feel Warwick SU has contributed positively to their time at Warwick (source: Big 5 Survey)

Target at least 85% - achieved 92% The result was higher than anticipated and higher than last year's 82%. A real achievement.

Representation: Voter Turnout for Autumn and Officer elections

Autumn voter turnout 1,564 - target 1,500 Officer voter turnout 6,346 - target 5,000 A really pleasing result. The result for the Officer elections was 790 higher than last year (2010: 5,556), With new structures in place following the Democracy Review it is hoped that these results will continue.

Involvement - Membership Participation: Increase the number of students joining sports clubs and societies

Memberships increased by 2,569 on 17,200 target This was an increase of 2,891 on last year. Membership of Societies Federation was particularly pleasing, rising by 2,691 on last year.

Engagement and Communications: % of students voting the Union's website at least average (source: Big 5 Survey)

Target at least 90% - achieved 98% This result was also much higher than last year - 84%. The website had been redesigned for the 2011-12 Academic Year and the success of the update is reflected in the greatly improved response.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) ACHIEVEMENTS AND PERFORMANCE (continued) Objective

Achievement

Our people: staff feel valued by the Union for their contribution (source: Staff Survey)

Student staff target 3.80 - achieved 3.76 Permanent staff target 4.15 - achieved 4.19 This survey uses a five point Likert Scale where: 1 = I don't feel valued for my contribution 3 = My contribution is neither valued or not valued 5 = I feel my contribution is very valued The results are an average and are a good result. These results are an increase on last year (2011: student staff 3.28 permanent staff 4.15).

Our finances: Achieve planned surplus of ÂŁ49k

Achieved a surplus of ÂŁ214k This is the third year in a row that surplus for the Union has been greater than budget. These additional surpluses have rebuilt the reserves position for the Union.

Environmental impact: Achieve at least a silver level in Green Impact Awards

Achieved Gold This is the third year in succession that Warwick SU has achieved a gold impact award. The Union will be involved in the Green Impact Excellance programme in the coming year.

FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014 The current strategic plan centres around seven key values (previously outlined in the Aims, Objectives and Activities section). These values will help the Union the create a better experience for students at Warwick. The key action points emerging from the Union's strategic plan can be grouped as follows:

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014 (continued) From the Membership - The membership want greater exploitation of technology for communication, including work on the Union website to ensure it is up-to-date and attractive. - The importance of the Union operating ethically and with environmental impact in mind. - The importance of transparency around Union processes and structures. - There are frustrations around the bureaucracy with managing funds for societies. The procedures and regulations around these funds needs better explanation. Future Challenges - Pensions are in crisis in the UK and this will impact on the perception by staff of benefits. - There will be further legislative changes for pensions that require compliance. - The Union tries to do too much for its resources and needs to ensure that it doesn't over promise and not deliver. - To build back the Union's reserves position after the financial impact of the redevelopment of the Union's facilities. - To maintain the Union's reputation with key stakeholders such as the University. Other Potential Impacts - The Government may change licensing laws to decrease alcohol sales. - There may be further increases to VAT. - Sponsorship opportunities may decrease in certain industry sectors. - Pay settlements may increase above the Union's financial plan estimates. - The Union's membership research is insufficient.

Headline Key Performance Indicators (KPI's) Seven areas were identified for monitoring with KPI's during the 2012-13 financial year: Membership Participation: - % of student who feel clubs and societies are good value for money (target: 76%) - Postgraduate Association attendees (target: 80) Representation: - voter turnout in Autumn Elections (target: 1,550) - voter turnout in Officer Elections (target: 6,000) Communications: - % of students aware of each major SU Campaign (target: at least 50% awareness each) Staff: - student staff who feel valued for their contribution (Staff Survey - target: 4.00) - permanent staff who feel valued for their contribution (Staff Survey - target: 4.20)

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) Headline Key Performance Indicators (KPI's) (continued) Finance: - Achieve or exceed budget surplus of £60k for 2012-13 Impact: - % of students satisfied with the Union (National Student Survey - target: 78%) Environmental Impact: - Reduce the volume of waste (target: 118 tonnes - a 7% reduction)

Assess the Impact: The Membership Services Review Work will continue to be focussed on the delivery of Membership Services following the review during 2011-12. This will include how the new structure has helped deliver key services to students such as advice and welfare, representation, democracy, campaigning, development and student activities.

FINANCIAL REVIEW As a result of the changes to the Charities Act 2006, Warwick Students' Union created a new company limited by guarantee on 29 June 2010 and registered with the Charity Commission on 15 July 2010. All the assets and liabilities held by the previous unincorporated membership association were transferred to the new company on 1 August 2010.

Income and Expenditure The overall surplus for the year was £214,353 (2011: £265,297). This represents 3% of total incoming resources (2011: 4%) and was £165,690 ahead of the budget for the year of £48,663. This was another good financial year for the Union, enabling the reserves to be built back to £542,581 including minority interest. This amount includes a designated reserve of £180,000 for future building refurbishment. Total incoming resources increased by £181,230 to £6,871,153 (2011: £6,689,923). The annual recurrent grant contribution from the University increased by £120,401 (7%) to £1,833,792 (2011: £1,713,391). This grant included an additional amount from a successful bid to the University for further support and development of the excellent work by the Student-Staff Liaison Committees. The Food and Beverage areas continue to trade well contributing £2,012 (2011: £78,308) and with income £12,944 ahead of last year - £2,491,194 (2011: £2,478,250). There were mixed results for the different outlets. Strong trading performances were turned in by the Union's baguettes-to-order outlet: The Bread Oven and the Union's tea shop: CuriosiTea. The Union's pub: The Dirty Duck had poorer results than last year but the Terrace Bar's sales were up. Overall the students were choosing to socialise in the Union but spreading their trade between the bars. The Union's restaurant: Xananas

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW (continued) had a tough year. Issues with gas supply to the kitchen impacted sales and the external barbeque provision during the summer months was washed out by the poor summer weather. Xananas kitchen and restaurant areas were refurbished during August and it is hoped that the works ensure that the coming year will see a turn around in results for the restaurant. Early indicators are good. The Union's Venue, The Copper Rooms has experienced difficult trading. The market for live music is now very different and students social habits have changed. This is not just happening at Warwick. There is change nationally in the way that live music venues operate. The Venues did not increase income on last year - a reduction of £100,299 to £1,152,458 (2011: £1,252,757). Action was taken in the prior year to scale back the programmes to minimise losses and set a more realistic budget for the 2011-12 year. The Venue's surplus was £32,553 better than budget despite the outdoor Summer Festival event ticket sales being poor. They were impacted by bad weather and the success of the England football team in the Euro 2012 tournament. Total Resources Expended increased by £232,174 to £6,656,800 (2011: 6,424,626). This is consistent with the increase in incoming resources and includes an increase in deficit repair contribution for the Union's pension fund - the Students' Union Superannuation Scheme - which closed to future accrual on 30 September 2011. The contribution increased by £39,104 (38%) to £142,010 (2011: £102,906). Students' Union Services Warwick Limited This is the subsidiary company for non-primary purpose trading. Turnover for the company increased by £33,619 on the previous year at £267,382 (2011: £233,763). The 2011-12 year included income from one-off conference events and vacation facility hire. Students' Union Services Warwick Limited made a donation under gift aid of £137,732 (2011: £118,461) to Warwick Students' Union. This was an increase of £19,271 on the previous year. It is anticipated that going forward Students' Union Services Warwick Limited will be impacted by the current economic climate and the budgeted operating profit for the 2012-13 financial year is £100,353. This reflects the reduction in conference and vacation bookings, coin and vending machines as well as income generated from external room hire. Membership Solutions Limited The 2011-12 financial year saw Membership Solutions Limited (MSL) making a transfer under gift aid to Warwick Students' Union of £142,120 (2011: £125,658) an increase of £16,462. Turnover for the company increased by £82,434 to £435,259 (2011: £352,825). During the 2011-12 financial year MSL increased its client base to approximately 35 students' unions nationally. MSL made a loss on ordinary activities before taxation of £63 (2011: surplus of £5,467). MSL continues to grow and provide IT membership solutions across the UK.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

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ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW (continued) Net Assets and Cash Flow Total Net Assets increased by £214,854 to £542,581 (2011: £327,727). This consisted of the following movements: - the net book value of Tangible Fixed Assets increased by £19,805 to £129,383 (2011: £109,578). - the Current Assets increased by £521,011 to £1,706,380 (2011: £1,185,369). The majority of this movement is due to an increase in cash balances and short term deposits of £498,209. Debtor balances increased by £17,296 reflecting the increase in trade debtors for Membership Solutions Limited as the customer base increases. - the value of Creditors increased by £308,767 to £1,300,463 (2011: £991,696). This is mostly due to an increase in trade creditors of £160,283 to £307,864 (2011: £147,581). The final quarter rent for £135,000 was included in this balance at the end of July 2012. The amounts held as custodian funds for sports clubs and student societies also increased by £40,096 to £422,932 (2011: £382,836). - the value of Provisions for Liabilities was £17,195 (2011: nil). This provision was set aside for redundancy costs following the membership services staffing restructure. These results reflected a much healthier balance sheet position for the Union at 31 July 2012 as it builds back its reserves. Reserves Free unrestricted general reserves at 31 July 2012 increased by £207,940 to £342,943 (2011: £135,003) this takes the reserves back to 2006-07 levels prior to the building redevelopment. In 2011 the Board of Trustees approved that £180,000 be set aside in a designated reserve for future building refurbishment. This is a pleasing increase in reserves and the contribution for the year was ahead of budget. The Board of Trustees has been considering the level of reserves the Union will requires to cover for any unforeseen changes in commercial operations as well as future investment in infrastructure. Custodian Funds Warwick Students' Union acts as a custodian for funds raised by the many sports clubs, student societies and RAG (raising and giving) affiliated to the Union. These funds are held in a separate bank account and the year end balances for each sports club and society are within the Union's creditor balance (see Note 11). The balance held for sports clubs and student societies at 31 July 2012 was £422,932 (2011: £382,836). This includes £2,329 held at the end of the year for distribution to charities.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

17


ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW (continued) Custodian Funds (continued) The income and expenditure for the student sports clubs and societies is not reported within the Union's Statement of Financial Activities. During the financial year the sports clubs and societies received £1,709,608 of income (2011: £1,541,106). Included in this income were grants from the Union of £151,309 (2011: 173,023) for Warwick Sport and £45,941 (2011: £45,941) from the Societies Federation for student societies. These grant awards were spent in the year and appear in the Union's Statement of Financial Activities as a cost in the "Student Activities, Societies and Sports Clubs" line. Future Funding Every year the Union produces a Five Year Plan. This process enables the Union to review the current and future financial performance of its activities. The plan (including the budget for the 2012-13 financial year) was approved by the Board of Trustees in May 2012. The budget for 2012-13 forecasts a surplus for the Union of £57,447 representing 0.8% of income (2011: 0.7%) and includes an approved block grant from the University of Warwick of £1,958,834 (2011: £1,886,371). The current Five Year Plan includes an annual block grant from the University of Warwick across the planning period of at least the level of the 2012-13 approved grant. Although the Union has no definitive guarantee that funding will continue from the University at these levels, the Union will continue its dialogue with the University about the future and monitor the impacts of the changes in Higher Education Funding. The Capital Commitments note (Note 7) reports authorised but not yet contracted expenditure of £2,512 (2011: £60,000) and contracted expenditure of £35,118 (2011: nil). This is directly attributable to the refurbishment of the Union's Xananas restaurant. This project was undertaken over the summer of 2012 and the majority of major work is now complete. Following the review of Membership Services the Union will be looking at any capital impact of changes needed to improve service delivery to students. This will be included in the 2013 Five Year Plan. The Union potentially faces significant financial risk as a result of the current pension deficit reported from the Students' Union Superannuation Scheme (SUSS). This is a defined benefit scheme whose membership consists of students' unions and related bodies throughout the country (see Note 18). This scheme closed to future accrual on 30 September 2011. The Union's contributions towards the pension deficit will have doubled in two years from the level paid in 2009-10. The amount contributed at 31 July 2012 was £142,010 (2011: £102,906). Provision for increases in pension deficit contribution costs have been included in the current Five Year Plan based on the forecast on-going increase in contribution rate of 3.2% per annum.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

18


ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) INVESTMENT POLICY The Trustees objective is to invest surplus cash to best advantage with minimum risk. The Union has taken a prudent stance with funds being held in high interest bearing deposit accounts for periods not exceeding 6 months. Cash funds so invested are usually over a minimum balance of £100,000 and must be placed with an approved and reputable banking institution. Investment returns in the year reflect the stated policy as well as the lower interest rates available due to market conditions. This policy will be reviewed in the coming year to ensure that it continues to reflect best advantage with minimum risk.

RESERVES POLICY Following the Union's registration with the Charity Commission the Trustees have considered the level of free reserves required. A policy will be formulated in the coming year. Issues considered by the Trustees when looking at reserves were future investment and contingency requirements for risks. This includes items such as future building requirements and the pension fund deficit. Designated reserves are held to fund future building refurbishment plans and the current level is £180,000 (2011: £180,000).

AUDITORS Baker Tilly UK Audit LLP has indicated its willingness to continue in office.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS The Board of Trustees members who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each member of the Board of Trustees members have confirmed that they have taken all the steps that they ought to have taken as Board of Trustees members in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. On behalf of the Board of Trustees.

N Swain President Date:

WARWICK STUDENTS' UNION For the year ended 31 July 2012

C March Democracy & Development Officer

19


STATEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES The trustees (who are also directors of Warwick Students' Union for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the trustees to prepare financial statements for each financial year with give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those financial statements, the Board of Trustees are required to:a) select suitable accounting policies and then apply them consistently; b) observe the methods and principles in the Charities SORP; c) make judgements and estimates that are reasonable and prudent; d) state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdications.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

20


INDEPENDENT AUDITORS' REPORT to the Members of Warwick Students' Union We have audited the group and parent charity financial statements of Warwick Students' Union ("the financial Statements") for the year ended 31 July 2012 on pages 23 to 42 which comprise the Group Statement of Financial Activities, the Group and Charitable Company Balance Sheets, the Group Cash Flow Statement, and related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Statement of Trustees' Responsibilities set out on page 20, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS A description of the scope of an audit of financial statements is provided on the APB's website at: www.frc.org.uk/apb/scope/private.cfm

OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: - give a true and fair view of the state of the group's and the charitable company's affairs as at 31 July 2012 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the Companies Act 2006.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

21


INDEPENDENT AUDITORS' REPORT (continued) MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - the parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

PAUL OXTOBY (Senior Statutory Auditor) For and on behalf of: BAKER TILLY UK AUDIT LLP Statutory Auditor Chartered Accountants St Philips Point Temple Row Birmingham B2 5AF Date:

WARWICK STUDENTS' UNION For the year ended 31 July 2012

22


GROUP STATEMENT OF FINANCIAL ACTIVITY

Note

£

2012 TOTAL £

2011 TOTAL £

Unrestricted

Designated

Restricted

Funds

Funds

Funds

£

£

INCOMING RESOURCES Incoming resources from generated funds: Voluntary Income - University Grant

1,886,371

-

11,132

1,897,503

1,768,325

666,526

-

-

666,526

559,062

148,555

-

-

148,555

137,385

485

-

-

485

337

2,491,194

-

-

2,491,194

2,478,250

1,152,458

-

-

1,152,458

1,252,757

16,018

-

-

16,018

17,105

14,870

-

12,205

27,075

34,068

117,694

-

353,645

471,339

442,634

6,494,171

-

376,982

6,871,153

6,689,923

355,646

-

-

355,646

282,995

1

2,489,182

-

-

2,489,182

2,399,942

1

1,555,358

-

-

1,555,358

1,588,284

1

558,886

-

16,521

575,407

533,469

1

458,404

-

325

458,729

443,826

1

836,843

-

353,648

1,190,491

1,135,289

2

31,987

-

-

31,987

40,821

6,286,306

-

370,494

6,656,800

6,424,626

207,865

-

6,488

214,353

265,297

75

-

-

75

-

-

-

-

-

-

Fund Balances Brought Forward

135,003

180,000

12,724

327,727

62,430

TOTAL FUNDS CARRIED FORWARD

342,943

180,000

19,212

542,155

327,727

Activities for Generating Funds - Commercial income - Marketing and sponsorship Investment Income - Interest Receivable Incoming Resources from Charitable Activities - Food and beverage - Venues, events and entertainments - Administration and support services - Student services and representation - Student activities, societies and sports clubs TOTAL INCOMING RESOURCES RESOURCES EXPENDED Cost of Generating Funds - Commercial activities Charitable Activities for Students - Food and beverage - Venues, events and entertainments - Student membership services - Representation and affiliations - Student activities, societies and sports clubs Governance costs TOTAL RESOURCES EXPENDED

NET INCOMING RESOURCES for the PERIOD Equity minority interests

8

Transfers between Funds

14 / 15

This statement of financial activities represents a consolidation of the income and costs for Warwick Students' Union, Students' Union Services Warwick Limited and Membership Solutions Limited, all operations are continuing. No separate Statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been included in the statement of financial activities.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

23


BALANCE SHEETS

Company Registration Number: 07297865 GROUP 2012 Note

FIXED ASSETS Tangible fixed assets Investments

CURRENT ASSETS Stocks Debtors Short-term deposits Cash at bank and in hand

CREDITORS: Amounts falling due within one year

6 8

9 10

11

NET CURRENT ASSETS PROVISIONS for LIABILITIES and CHARGES

12

NET ASSETS

UNION 2012

2011

2011

£

£

£

£

129,383 24,476

109,578 24,476

129,383 25,746

109,578 16,341

153,859

134,054

155,129

125,919

34,710 193,737 206,598 1,271,335

29,204 176,441 211,577 768,147

34,710 384,251 35,872 1,221,237

29,204 313,132 54,604 762,572

1,706,380

1,185,369

1,676,070

1,159,512

(1,300,463)

(991,696)

(1,270,441)

(956,289)

405,917

193,673

405,629

203,223

(17,195)

-

(17,195)

-

542,581

327,727

543,563

329,142

13

19,212

12,724

19,212

12,724

Unrestricted Funds - General - Designated

14

342,943 180,000

135,003 180,000

344,351 180,000

136,418 180,000

EQUITY MINORITY INTERESTS

8

426

-

-

-

542,581

327,727

543,563

329,142

REPRESENTING: CHARITABLE FUNDS Restricted Funds

TOTAL FUNDS

The financial statements on pages 23 to 43 were approved by the Board of Trustees and authorised for issue on 2013 and are signed on its behalf by:

N Swain President

C March Democracy & Development Officer

The Group Balance Sheet represents a consolidation of the Balance Sheets of Warwick Students' Union, Students' Union Services Warwick Limited and Membership Solutions Limited. WARWICK STUDENTS' UNION For the year ended 31 July 2012

24


CONSOLIDATED CASH FLOW STATEMENT

Note

2012 £

2011 £

17(a)

595,897

280,620

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest receivable 17(a)

485

337

-

-

(98,668)

(63,873)

497,714

217,084

4,979

143,942

495

-

503,188

361,026

2012 £

2011 £

503,188

361,026

(4,979)

(143,942)

498,209

217,084

979,724

762,640

1,477,933

979,724

Net cash inflow from operating activities

Taxation CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Payments to acquire tangible fixed assets

6

Cash inflow before Use of Liquid Resources and Financing Management of Liquid Resources Net withdrawals from Short Term Investments Financing Receipts from minority interest shareholder on share issue for Membership Solutions Limited

Increase in Cash in the Period

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

Increase in cash in the period Decrease in Short Term Deposits

Movement in net funds in the period

17(b)

Net funds at 1 August

Net funds at 31 July

WARWICK STUDENTS' UNION For the year ended 31 July 2012

17(b)

25


PRINCIPAL ACCOUNTING POLICIES PRESENTATION OF ACCOUNTS The Union's Articles of governance require the trustees to prepare accounts for each financial year. These accounts represent a consolidation of the accounts of Warwick Students' Union and its subsidiary undertakings Students' Union Services Warwick Limited and Membership Solutions Limited.

BASIS OF ACCOUNTING The accounts have been prepared under the Charities Act 2011 on the historical cost convention in accordance with the Statement of Recommended Practice: "Accounting and Reporting by Charities" published in March 2005 (SORP 2005) and with applicable UK Accounting and Financial Reporting Standards (UK Generally Accepted Accounting Practice).

GOING CONCERN The current economic conditions create uncertainty particularly over the level of demand for the Union's services and the level of future income provided under the block grant agreement with the University of Warwick. The Union's forecasts and projections, taking account of reasonably possible changes in trading performance show that the Union should be able to operate within the level of its current facilities for at least twelve months from the date of approval of these accounts. The Union has held discussions with the University about future funding and no matters have been drawn to its attention to suggest that future funding may not be forthcoming at budgeted levels. The Trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

26


PRINCIPAL ACCOUNTING POLICIES (continued) BASIS OF CONSOLIDATION The financial statements consolidate the financial statements of the charitable company and its subsidiary undertakings. Inter-group profits are eliminated on consolidation. The consolidation is carried out on a line-by-line basis. A separate Statement of Financial Activities (SoFA) for the charity itself is not presented because the charity has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006 and paragraph 397 of the Charities SORP 2005. For the charitable company for the period ended 31 July:-

Incoming resources Resources expended

Net incoming resources

2012 ÂŁ

2011 ÂŁ

6,550,186 6,335,765

6,428,985 6,169,155

214,421

259,830

INCOMING RESOURCES All income and capital resources are recognised in the accounts when the Charity is legally entitled to the income and the amount can be quantified with reasonable certainty. Income from commercial trading activities (net of Value Added Tax) is recognised as earned as the related goods and services are provided. Investment income is recognised on a receivable basis.

GRANTS The Union receives voluntary income from the University of Warwick in the form of a block grant and this is credited to the financial statements in respect of the period to which each grant relates.

RESOURCES EXPENDED Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Overhead costs are apportioned to activities on a basis consistent with the use of the resources. Expenditure includes irrecoverable Value Added Tax. Governance costs comprise those costs associated with the governance of the charity. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

27


PRINCIPAL ACCOUNTING POLICIES (continued) TANGIBLE FIXED ASSETS Fixed assets are stated at cost less accumulated depreciation. Expenditure on individual capital items or groups of related items costing less than ÂŁ1,500 are written-off to the income and expenditure account in the year in which they occurred. Depreciation is provided to write-off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful lives as follows: Building improvements, Fixtures & Fittings General Equipment IT equipment

3 - 10 years 3 - 5 years 3 years

The Union occupies premises provided by the University of Warwick Foundation. On 1 August 2010 the assets of the University of Warwick Students' Union (an unincorporated exempt charity) were transferred to Warwick Students' Union (an incorporated exempt charity). The tangible fixed assets taken on are depreciated using their remaining useful life at 1 August 2010. INVESTMENTS Warwick Students' Union's fixed asset investments in NUS Services Limited are valued at cost, as these assets are not readily saleable and a reliable market value is not readily available. The Board of Trustees value the shareholding in the subsidiary companies at the lower of cost and net realisable value. LEASE CONTRACTS Rentals paid under operating leases are charged to income as the cost falls due. STOCKS Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in, first out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal. TAXATION From 1 August 2010 Warwick Students' Union became a registered charity and therefore benefits from exemptions from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year. Students' Union Services Warwick Limited The taxable profits of Students' Union Services Warwick Limited are donated under Gift Aid to the Union with the consequence that no taxation is payable by that company.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

28


PRINCIPAL ACCOUNTING POLICIES (continued) TAXATION (continued) Membership Solutions Limited The profits for the year for Membership Solutions Limited are donated under Gift Aid to the Union with the consequence that no taxation is payable by that company. FUNDS STRUCTURE Warwick Students' Union administers and accounts for a number of charitable funds, as follows: - Unrestricted Funds representing unspent income which may be used for any activity / purpose at the Broad of Trustees discretion. - Designated Funds set aside by the Board of Trustees to be spent on some specific purpose at its own discretion. The Board of Trustees intend to use some of these designated funds to finance future building refurbishment. - Restricted Funds raised and administered by Warwick Students' Union for specific purposes. This includes revenue received from a donor to be used for activities prescribed by the donor. - Custodian Funds entrusted to Warwick Students' Union for safekeeping, but not under its management control such as Sports Club and Society funds (including annual Raising and Giving). Such custodian activities are disclosed in the Annual Report, but as the funds are not managed by Warwick Students' Union they cannot be included in these accounts.

DEFINED BENEFIT PENSION SCHEME The group participates in the Students' Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the Trustees on the advice of the Actuary. The scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS17, in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year. The scheme closed to future accrual on 30 September 2011. From 1 October 2011 the group participates in the National Union of Students' Pension Scheme, a defined contribution scheme proved by Aegon, a brand name of Scottish Equitable plc.

LIQUID RESOURCES Liquid resources represent those amounts on short term deposits with financial institutions.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

29


NOTES TO THE FINANCIAL STATEMENTS 1: CHARITABLE ACTIVITY AND SUPPORT COSTS Charitable Activity Costs

TOTAL

Other Operating

Support

£

Staff Costs £

Cost of Sales £

Expenses £

Costs £

2,489,182 1,555,358 575,407 458,729 1,190,491

924,909 417,347 222,611 140,038 68,615

836,646 553,884 -

158,491 98,765 26,566 59,171 444,332

569,136 485,362 326,230 259,520 677,544

6,269,167

1,773,520

1,390,530

787,325

2,317,792

6,100,810

1,781,840

1,396,711

752,891

2,169,368

Charitable Activity Cost Reallocation Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation and Affiliations Student Activities, Societies and Sports Clubs

2011 Last Year

Charitable Activity Costs Summary

Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation and Affiliations Student Activities, Societies and Sports Clubs

2012

2011

£

£

2,489,182 1,555,358 575,407 458,729 1,190,491

2,399,942 1,588,284 533,489 443,826 1,135,289

6,269,167

6,100,810

Student Representation expenses includes the affiliation fee for the National Union of Students' of £49,361 (2011: £49,361).

Support Costs

Marketing, IT &

Admin & General

TOTAL

Premises

Finance & HR

Communications

Management

£

£

£

£

£

29.2%

569,136 485,362 326,230 259,520 677,544

227,279 246,219 142,050 94,700 236,749

202,648 100,018 45,055 25,611 162,377

58,311 58,276 58,276 58,311 116,622

80,898 80,849 80,849 80,898 161,796

100.0%

2,317,792

946,997

535,709

349,796

485,290

2,169,368

960,924

450,919

324,053

433,472

Use

Support Costs Reallocation Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation & Affiliations Student Activities, Societies and Sports Clubs

2011 Last Year

Support Costs Summary Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation & Affiliations Student Activities, Societies and Sports Clubs

WARWICK STUDENTS' UNION For the year ended 31 July 2012

24.6% 20.9% 14.1% 11.2%

2012

2011

£

£

569,136 485,362 326,230 259,520 677,544

516,339 456,449 303,698 241,295 651,587

2,317,792

2,169,368

30


NOTES TO THE FINANCIAL STATEMENTS (continued) 1: CHARITABLE ACTIVITY AND SUPPORT COSTS (continued) Support costs are allocated on the following basis: -

Premises is allocated on space occupied Finance is allocated on total number of financial transactions HR is allocated based on staff costs Marketing, IT Services and Communications are pro-rata across all activities Administration and General Management are pro-rata across all activities

Finance and HR costs include:

- Pension deficit contribution - Redundancy and severance payments

Administration and General Management costs include:

- Insurance - Irrecoverable Value Added Tax

2: GOVERNANCE COSTS

Auditors' remuneration - Audit fees Auditors' remuneration - Other services Professional fees - Pension advice Other legal and professional fees Board of Trustees - Committee expenses Board of Trustees - Travel reimbursements

WARWICK STUDENTS' UNION For the year ended 31 July 2012

31

2012 £

2011 £

142,010 17,195

102,906 -

159,205

102,906

2012 £

2011 £

70,153 135,900

65,756 133,958

206,053

199,714

2012 £

2011 £

15,000 7,285 9,253 340 109

20,000 5,250 7,500 7,738 127 206

31,987

40,821


NOTES TO THE FINANCIAL STATEMENTS (continued) 3: NET INCOMING RESOURCES FOR THE PERIOD Net incoming resources for the period is stated after charging: Auditors' remuneration: - Audit Fees - Other Fees

Depreciation and amounts written-off Tangible Fixed Assets: - Owned Assets - Loss on Disposal of Assets

Operating lease rentals: - Plant and machinery - Buildings

4: STAFF COSTS

Wages and Salaries National Insurance Pension Costs

WARWICK STUDENTS' UNION For the year ended 31 July 2012

32

2012 £

2011 £

15,000 7,285

20,000 5,250

22,285

25,250

75,830 3,034

88,502 13,229

78,864

101,731

18,637 450,000

40,387 450,000

468,637

490,387

2012 £

2011 £

2,541,469 183,940 76,756

2,531,429 167,194 80,484

2,802,165

2,779,107


NOTES TO THE FINANCIAL STATEMENTS (continued) 4: STAFF COSTS (continued) The average staffing was as follows: Monthly Salaried Staff / Full Time Equivalent Weekly Paid Student Staff / Full Time Equivalent

The following number of employees received remuneration above £60,000 within the year: £70,000

-

£79,999

2012 Number

2011 Number

100 / 83 482 / 56

102 / 85 579 / 53

582 / 139

681 / 138

2012 Number

2011 Number

1

1

The above staff member was accruing retirement benefits under the pension scheme disclosed in note 18.

5: TRUSTEES REMUNERATION AND EXPENSES As well as having a role as a trustee of Warwick Students' Union the seven Student Sabbatical Officers perform a full time role to be the voice of students. They are authorised in the Union's governing document to represent students, undertake campaigning and support work as distinct from their trustee responsibilities. They listen to how students want things to be done, work with Warwick Students' Union staff, the Board of Trustees and partners to make it happen. They represent students to the University of Warwick, external organisations and the wider community. Each of the Student Sabbatical Officers were paid a salary of £18,267 during the year with a total cost to Warwick Students' Union of £142,803 (2011: £140,320) including salary and national insurance. This salary was remunerated by way of their role as a Sabbatical Officer not as an Officer Trustee. The eleven other member Trustees of the Board were reimbursed a total of £109 (2011: £206) for personal travel and subsistence expenses in performing their role as trustee, no trustees received any remuneration as a result of their role as trustee.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

33


NOTES TO THE FINANCIAL STATEMENTS (continued) 6: TANGIBLE FIXED ASSETS - GROUP AND UNION

Fixtures, Building

Fittings and

TOTAL £

Improvements

IT Equipment

£

£

Cost 1 August 2011

192,369

36,243

156,126

Disposal of asset Additions

(18,409) 98,669

-

(18,409) 98,669

31 July 2012

272,629

36,243

236,386

Depreciation 1 August 2011

82,791

6,779

76,012

Disposal of asset Charge for the year

(15,375) 75,830

7,052

(15,375) 68,778

31 July 2012

143,246

13,831

129,415

Net Book Value 31 July 2011

109,578

29,464

80,114

31 July 2012

129,383

22,412

106,971

2012 £

2011 £

2,512 35,118

60,000 -

37,630

60,000

7: CAPITAL COMMITMENTS Future capital expenditure: Authorised but not contracted Contracted

WARWICK STUDENTS' UNION For the year ended 31 July 2012

34


NOTES TO THE FINANCIAL STATEMENTS (continued) 8: FIXED ASSET INVESTMENTS

2012 £

2011 £

16,664 60 7,752

16,664 60 7,752

24,476

24,476

NUS Services

Shares in

TOTAL £

Limited

Group

£

£

16,341

16,144

197

9,405

-

9,405

25,746

16,144

9,602

Group Cost NUS Services Limited: deposit under Students' Unions central billing scheme NUS Services Limited: 'A' Shares NUS Services Limited: 'B' Shares

Union

Cost 1 August 2011 Additions - Membership Solutions Limited

31 July 2012

Warwick Students' Union holds equity share capital in the following unlisted companies:

Students' Union Services Warwick Limited 102 ordinary shares of £1 each being 100% of issued ordinary shares. Students' Union Services Warwick Limited is registered and operates in Great Britain. The primary nature of the business being trading services on behalf of the charity. Turnover for the year ended 31 July 2012 was £267,382 (2011: £233,763) and profits of £137,732 (2011: £118,461) were generated which was donated to the Union under gift aid. Net assets at 31 July 2012 were £102 (2010: £102).

Membership Solutions Limited Warwick Students' Union holds 9,500 (2011: 95) £1 ordinary shares in Membership Solutions Limited, a company limited by shares registered in Great Britain, being 95% of its issued share capital. The primary nature of the business is the sale of membership and other IT related systems.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

35


NOTES TO THE FINANCIAL STATEMENTS (continued) 8: FIXED ASSET INVESTMENTS (continued) Turnover for the year ended 31 July 2012 was £435,259 (2011: £352,825) and a loss for the year of £63 (2011: profit £5,467) was recorded after the payment of a donation made under gift aid to the Union of £142,120 (2011: £125,658). Net assets at 31 July 2012 were £8,517 following a share issue during the year of £9,500 (2011: net liabilities £1,320). The minority interest holdings in Membership Solutions Limited were not previously reflected in the consolidated financial statements on the basis of immateriality, however this year they have been brought into the financial statements as a current year adjustment to reflect the postion. Equity Minority Interests

2012 £

5% share of loss in Membership Solutions Limited

75

Minority interests of 5% in Membership Solutions Limited: - share capital - reserves

500 (74)

426 The principal activity of Membership Solutions Limited is the sale of membership and other IT related systems. NUS Services Limited The Union holds shares in NUS Services Limited, a purchasing consortium for member student unions providing purchasing benefits through collective operations. NUS Services Limited also holds a deposit from the Union in respect of payment for monthly supplies of brewed and other products.

9: STOCKS

Goods for resale

GROUP 2012 £ 34,710

WARWICK STUDENTS' UNION For the year ended 31 July 2012 36

2011 £ 29,204

UNION 2012 £ 34,710

2011 £ 29,204


NOTES TO THE FINANCIAL STATEMENTS (continued) 10: DEBTORS

GROUP 2012 £

2011 £

UNION 2012 £

2011 £

Amounts falling due within one year: Trade debtors Amounts due from subsidiary undertakings Other debtors Prepayments and accrued income

11: CREDITORS

153,370

138,214

64,678

73,997

-

-

288,385

210,679

3,970

6,296

3,970

6,296

36,397

31,931

27,218

22,160

193,737

176,441

384,251

313,132

GROUP 2012 £

2011 £

UNION 2012 £

2011 £

Amounts falling due within one year: Trade creditors

307,864

147,581

307,063

146,395

Amounts held for clubs and societies

422,932

382,836

422,932

382,836

Other taxation and social security

156,690

131,328

156,690

131,328

69,720

61,810

63,708

61,810

343,257

268,141

320,048

233,920

1,300,463

991,696

1,270,441

956,289

Other creditors Accruals and deferred income

Amounts held for clubs and societies represent balances held on behalf of these bodies, these funds have been generated separately from the activities of the Union and the use of these funds is directed by the individual club or society. Warwick Students' Union acts as a custodian for these funds.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

37


NOTES TO THE FINANCIAL STATEMENTS (continued) 12: PROVISIONS FOR LIABILITIES AND CHARGES

Staff Restructuring £

At 1 August 2011 Provision for restructuring during the year

17,195

At 31 July 2012

17,195

13: RESTRICTED FUNDS 1 August 2011

Income

Expenditure

Transfers

31 July 2012

£

£

£

£

£

6,478 4,330 1,916 -

353,646 325 10,000 10,000 1,455 1,132 424

(353,646) (325) (2,128) (3,735) (792) (7,281) (1,455) (1,132) -

-

4,350 595 1,124 2,719 10,000 424

12,724

376,982

(370,494)

-

19,212

Warwick Sport Campaigns Projects - Inspire Scheme Projects - Internationalisation Projects - Community Scheme Projects - SU Communities Projects - Social Enterprise Projects - Environmental Projects - Equipment Projects - Media Centre

All of the above restricted reserves represent funds received specifically for the identified activity and are either supported by service level agreements or one-off grant applications.

14: DESIGNATED FUNDS

Building Refurbishment

1 August 2011

Income

Expenditure

Transfers

31 July 2012

£

£

£

£

£

180,000

-

-

-

180,000

180,000

-

-

-

180,000

The designated reserve to finance building refurbishment was created to set aside funds for planned future development of facilities and refurbishment of trading areas.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

38


NOTES TO THE FINANCIAL STATEMENTS (continued) 15: ANALYSIS OF NET ASSETS BETWEEN FUNDS Fixed Assets £

Net Current Assets / (Liabilities) £

2012 Net Assets / (Liabilities) £

2011 Net Assets / (Liabilities) £

Restricted Funds

-

19,212

19,212

12,724

Designated Funds

-

180,000

180,000

180,000

145,526 8,332

189,223 287

334,749 8,619

136,220 (1,217)

153,858

388,722

542,580

327,727

General Funds:

Warwick Students' Union Subsidiary Undertakings

16: LEASING COMMITMENTS At 31 July 2012 Warwick Students' Union had annual commitments under non-cancellable operating leases as follows: GROUP AND UNION 2012 2011 £ £ Land and Buildings Operating leases expiring within: over 5 years 450,000 450,000 Plant and Machinery Operating leases expiring within: 1 year 2 to 5 years

7,313 -

40,387

457,313

490,387

The amount paid during the year in respect of operating leases for plant and machinery was £18,637.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

39


NOTES TO THE FINANCIAL STATEMENTS (continued) 17: CASH FLOW STATEMENT

(a)

GROUP 2012 £

Reconciliation of net incoming resources for the year to net cash inflow / (outflow) from operating activities: Net incoming resources

214,353

265,297

(Increase) in stocks (Increase) in debtors

(5,506) (17,296)

(213) (12,989)

Increase in creditors Increase / (Decrease) in provisions

308,767 17,195

2,955 (75,824)

75,830 3,039 (485)

88,502 13,229 (337)

595,897

280,620

Cash Flow £

At 1 August 2011 £

Depreciation Loss on asset disposal Interest receivable

Net cash inflow from operating activities

(b)

2011 £

Analysis of changes in net funds

At 31 July 2012 £

Cash at bank and in hand Short term deposits

WARWICK STUDENTS' UNION For the year ended 31 July 2012

40

1,271,335 206,598

503,188 (4,979)

768,147 211,577

1,477,933

498,209

979,724


NOTES TO THE FINANCIAL STATEMENTS (continued) 18: PENSION SCHEME The Union participates in the Students' Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students' unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a "final salary" basis, with benefits in respect of service from 1 October 2003 to 30 September 2011 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme closed to future accrual. The most recent valuation of the Scheme was carried out as at 1 October 2010 and showed that the market value of the Scheme's assets was £67,141,000 with these assets representing 58% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £47,869,000. The assumptions which have the most significant effect upon the results of the valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions. The following assumptions applied at 1 October 2010:- The investment return would be 6.6% per annum before retirement and 4.6% per annum after retirement. - Pensions accrued on a CARE basis would revalue at 3.2% per annum. - Present and future pensions would increase at rates specified by scheme rules with appropriate assumptions where these are dependent on inflation. The 2010 valuation set out recommended a monthly contribution requirement by each Union expressed in monetary terms intended to clear the on-going funding deficit over a period of 20 years and will increase by at least 3.2% each year. These contributions also include an allowance for cost of the on-going administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 2011 and will be formally reviewed following completion of the next valuation due with an effective date of 1 October 2013. Surpluses or deficits which arise at future valuations will also impact on the Union's future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme's levy to the Pension Protection Fund. The contribution rate (excluding deficit contributions) for the period to 30 September 2011 applicable to the Union for the majority of members was 8.17% of Earnings for members and 9.38% of Earnings for the Union (17.3%/17.55% in aggregate). The contributions paid into the Scheme by the Union in respect of eligible employees for the year ended 31 July 2012 amounted to £183,390 (2011: £183,390), including funding deficit contributions.

WARWICK STUDENTS' UNION For the year ended 31 July 2012

41


NOTES TO THE FINANCIAL STATEMENTS (continued) 18: PENSION SCHEME (continued) At the year end there were outstanding amounts of £23,603 (2011: nil) in other creditors relating to the contributions to the pension scheme. The contributions expected to be paid into the scheme during the year to 31 July 2013 are £159,116.

19: RELATED PARTY TRANSACTIONS a)

b)

Membership Solutions Limited The Union received a donation under gift aid from Membership Solutions Limited of £142,120 (2011: £125,658). The Union purchased £34,612 (2011: £17,216) of IT services from Membership Solutions Limited and provided £21,639 (2011: £5,832) of services. At the year end, the Union was owed £88,400 (2011: £26,775) from Membership Solutions Limited. 2012 £

2011 £

Salary support, administrative and expenses Premises and equipment rental Interest charged on current account

7,284 13,764 591

1,536 3,795 501

21,639

5,832

Students' Union Services Warwick Limited The Union received a donation under gift aid from Students' Union Services Warwick Limited of £137,732 (2011: £118,461). The Union paid £179 (2011: £145) in current account interest with Students' Union Services Warwick Limited and provided £44,063 (2011: £48,174) of services to Students' Union Services Warwick Limited. At the year end the Union was owed £199,985 (2011: 183,904) from Students' Union Services Warwick Limited. 2012 2011 £ £ Salary support, administrative and expenses Premises and equipment rental Interest charged on current account

WARWICK STUDENTS' UNION For the year ended 31 July 2012

42

6,666 37,355 42

7,272 40,752 150

44,063

48,174


Warwick SU Accounts 2011-12