Registered number: 07091173 Charity number: 1136030 CAMBRIDGE UNION SOCIETY (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) CONTENTS Page Reference and admlnlstratlve details of the Charlty, Its Trustees and advisers Trustees, report Independent auditors. roport on the financial statements Consolidated statement of financial activlties 9-13 14 Consolidated balance sheet 15-16 Charlty balance sheet Consolldated statement of cash flows 17-18 19 Notes to the financial statements 20-42
CAMBRIDGE UNION SOCIETY IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2024 Trustees Dr Mohamed El-Erian MA DPhil The Rl Hon the Lord Parkinson ofwhitley Bay MA Sir Christopher J Greenwood CBE CMG QC Mr D H Branch MA (Cantab) Ms R Green MA (Cantabl Mr P Harrison Mr J N Heath, MA FRICS Mr D N Robinson MA (Cant3b) FCA Ms A A K Taylor MA (Hons) (Canlab} (resigned 25 October 2023) Mr C J M Palmer, Michaelmas President {resigned 1 December 2023) Ms L Walker. Vice President 2023 (resigned 14 March 2024} Mr L P M Pausch. Vice President 2024 lappoinled 14 March 2024) Ms S C Nathan OBE BA (Cantab} Mr N David Lent President (appointed 1 December2023, resigned 14 March 2024) Ms N Pauly Easter President (appointed 14 March 2024, resigned 13 June 2024} Mr A D'Angelo (appointed 2 September 20241 Company registered number 07091173 Charity registered number 1136030 Registered office 9a Bridge Street Cambridge CB2 1UB Bursar Colonel IRetd} J J Brown MA, MBE, FCILT, FCMI Independentauditors Streets Audit LLP Chartered Accountants and Statutory Auditor 3 Wellbrook Court Girton Cambridge CB3 ONA Bankers HSBC 63 StAndrew's Street Cambridge CB2 3BZ Solicitors Howes Percival Terringlon House 13-15 Hills Road Cambridge CB2 1NL Investmont Managers Quilter Cheviot One Kingsway London WC2B 6AN Page 1
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 30 JUNE 2024 The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Cambridge Union Society (the company} and its subsidiary, Cambridge Union Society Enterprises Limited (CUSEL} for the year ended 30 June 2024. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice ISORP), applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2015}, as amended by Second Edition 2019. Objectives and activities . Policies and objectives The truslees and officers have embarked on a development strategy for the Union. The overarching aim of the strategy is to safeguard and promote the future of the charity and its historic buildings by developing its property to benefit members and enhance its income. The Trustees and officers have reviewed the general objects of the charity (listed below) that are for the benefit of the Cambridge Union Society members and of the public more generally. The charity's primary object is the advancement of education, in particular by.. promoting the skill of debating and the consideration of matters of public life or importance., hosling educational events including, but not limited to, debates on lopics of importance and lectures given by individual persons of dislinclion-, providing training in the practice of debating to Cambridge Union Society members and also by providing for the tuition of olhers in the practice of debating by Cambridge Union Society members., providing for the entrance of Cambridge Union Society members in debating competitions, including competitions held by the charity, and also by providing opportunities for members of the public to compete in the practice of debating., the organisation and promotion of events aimed al widening access to Cambridge University and the promotion of higher education more generally., providing opportunities to encourage the exchange of ideas and provision of access by the public to the charily's facilities and events., providing workshops for the pupils of schools and colleges to attend to introduce them to the practice of debating., and enabling students and young people from disadvantaged backgrounds to participate in activities and events aimed at increasing their confidence, skills and aspirations. The charity organises and hosts three competitions-, the worldwide Inter Varsity, a national and an international schools, debating competition to encourage Ihe skills of young debaters. Several bursaries are offered to institutions and individuals with limited means to take part in these competitions each year. The charity also encourages a number of younger students from slate schools to visit the Union where they are encouraged lo learn to debate. These schemes continue to grow and broaden their reach in the UK. In addition, the Charity works inlernalionally with Learning Leaders, a US based charity lo promote free speech in the Far East by providing prepared material and personal support to schools and Universities developing debating as well as entry to competitions. The Union is also now expanding work internationally through the schools competition system notably in India and Africa with more countries applying for contracted agreements. n setting its policies and objectives, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. Page 2
CAMBRIDGE UNION SOCIETY (A company limited by guarantee} TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024 Strategic report Achievements and performance . Overview The Union has delivered a full programme of events over the last year. The trading company continues to develop its brand, and the popularity of ils hospitality business is improving steadily alongside signifioant adVanS in business systems. The Corporate hosting business has expanded quickly and allows the Union to make best use of its facilities especially outside of the academic year. Both of these elements means thal CUSEL is contributing towards the charitable aims of the Society and improving day to day operations on site. The society offers lo members a full programme of debates, talks and events through internationally acclaimed personalities and covering a diverse and challenging range of topics. Members are also encouraged to participale in the outreach programme and compelitive debating. In conjunction with the above the Society now has developing plans to maintain and modernise its facililies in the medium and longer terms. b. Review of activities Building Improvements Building improvements over the year included further enhancement of the members lounge with club style furniture and new lighting, the Old Snooker Room was turned into a permanent conference and meeting space and redecoration was carried out in several areas. The Chamber received a major investment in AV equipment focusing on updating and improving the speaker syslem. The first of the identified major projects was also started to improve the long-term resilience of the building with the replacement of the guttering and drains on Round Church Street with enhanced rainwater goods to cope with increased rainfall. Seemingly unglamorous but the increased intensity of recent rainfall was overcoming the Victorian rainwater system, and this is being replaced with larger gutters and drainpipes with repairs and enhancements to roofing and dampcourses. Finally, the garden continues to be improved both for the benefit of members and customers. Debating The Union has seen a full and vibrant programme of competitive debating over the year with more teams and individuals entering competitions than before the Covid pandemic. The Society hosted large numbers of teams for all ils major competitions with 44 teams competing at Inter Varsity level from all over the world, 20 teams attending the Women's competition and 394 schools leams battling it out for the Cambridge Schools title. Our own teams also recorded an excellent season winning the Leiden and Copenhagen Open compelilions, being finalists at Oxford IV, Imperial IV and semi finalists at the World Championships in Vietnam, European Championships in Bulgaria, Doxbridge and Manchester Opens. Nine Cambridge students achieved top 10 placings in these competitions including high rankings for the novices. Page 3
CAMBRIDGE UNION SOCIETY {A oompany limited by guarantee) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 30JUNE2024 strategic report(continued) Achievements and performance (continued) Speakers, Debates and Performance The Union held 26 main debates across all three terms. These included weekly events all ofwhich had a strong attendance of over 200 and about a half of which had a full house of 450. In addition a number of smaller specialist debates were held attracting an average audience of around 60. As usual all these debates lackled difficult subjects 2nd the discussions this year attracted considerable external interest and media coverage. National and international politicians, notable academics and business leaders once again generously supported the Union with their time in participating in Ihese debates. The Hawking Fellowship was given for the first time as a group award reflecting the importance of collaboralive development in science. Open Al received the award for its work on ChatGPT and was received by Sam Altman their CEO. Mr Altman hosted a capacity event where the audience was invited to examine the impact of Al. This also attracted good natured but probing protest inside and outside the chamber and was considered an important evening of discussion, later shared on our You Tube account. A very broad range of speakers attended the Union to participate in panel events or to present their own talks. From professional sports people to business leaders and celebrities, highlights included talks from the then Chancellor Jeremy Hunt. physicist Sabrina Paterski, commentator, Ben Shapiro, Nobel Prize winner Oleksandra Maluiichuk, Speaker of the House Lindsay Hoyle and entrepreneur Peter Thiel. Subjects covered reflected this breadth and allowed students to interrogate ideas and concepls firsthand. Outreach Students from the Union continued and expanded the educational outreach programme. Cambridge state schools visited regularly being offered time and space in the Union's facilities to develop student communications skills whilst members assisted with debating activities. This culminated in participation at major debates each term for invited schools. Financial review . Overview The Society has improved its financial position over the year. The Iwo rnain income streams are memberships fees and the profits from CUSEL. Ambitious membership targets were set for Michaelmas 2023 and despite strong early sales these were not met during the year with sales reaching the average figure for recent years of around 1850 new members. Likewise, trading was muted in the tough economic conditions apparent for most of the winter and spring period. Sponsorship of the Union a180 decreased with the ending of existing agreements. CarefLtI budgeting was put in place and costs reduced wherever manageable which proved effective by year end and in conjunction with improved trading conditions allowed the Society to complete the financial year in sound condition. CUSEL continued lo trade effectively and achieved a very significant increase in business hospitality returns through better use of the facilities. This is considered a successful trading year and better Ihan previous years. At the end of the year CUSEL covenanted £123,883 to the charity and did pay a full set of rental and service charges throughout the year which greally enhanced the charity's day lo day operations. The Society's investment portfolio declined over the year to a net value of £626,553 whilst generating £164,810 in income. This was in line with expectations. Page 4
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024 b. Going concern The charity has prepared cash flows and budgets for the underlying operations of the charity and ils subsidiary. Accordingly, the trustees have a reasonable expectalion Ihat Ihe group has adequate resources lo continue in operational existen for the foreseeable future. For this reason, the trustees continue lo adopt the going concern basis in preparing the financial slalements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. c. Reserdos policy To ensure prudent financial planning, the Trustees have set a target of Resetves to meet up to 3 months of operations and to provide stabilisalion for emergency, unbudgeted and unexpected workslexpenses at scale for a sum of £550,000. The reserves are currently kept in investments. This policy is reviewed regularly. 3 months operational reserves Stabilisalion for emergency major building maintenance works £300,000 £250,000 d. Princlpal rlsks and uncertainties The major risk moving forward is for CUSEL to return the investment made in the Orator and build on that to provide long term revenue to the charity. This is subjecl to monthly management reviews by Trustees and a focus on managing performance. The historic elements of the bulldlng and its infrastructure remain a rlsk whlch is managed with an improving estate plan and maintenance system. High utility costs present an ongoing challenge. The predicted rise in ulility costs has been rnanaged as the Union benefited from changing utility contracts and acquiring fixed priced contracts unlil 2025 during the year and before prIS rose to their maximum. The ongoing cyber risk and threat to information systems is taken seriously. The Union meets cyber essential standards Ihrough its IT and systems providers whilst cyber insurance is also in place. A good relationship beeen the Trustees and the student officers is essential to the good running of the Union and has therefore been identified as an important risk to the charity. This has been improved by the inclusion of the president, vice president as trustees and by regular social gatherings involving both Irustees and Standing Committee officers. The Trustees formally review Ihe major strategic risk register twice a year and monitor key risks at each meeting. The procedure for the selection of potential conlroversial speakers which is considered the most dynamic risk has been codified to minimise risk to the charity's reputation and in which the Truslees hold Ihe final decision. e. Material investments pollcy In accordance with Ihe charity's laws, Ihe members have aulhorised the trLJStees to invest in such stocks, shares, investments and property as they see fit. In order lo comply with Ihe recommended practi of the Charity Commission and of the accounting profession, investments are stated at market value in the accounts. In common with many universities and similar instilutions, the charity only invests on an ethical basis. Page 5
CAMBRIDGE UNION SOCIETY (A company Ilmlted by guaTantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024 Structure, governance and management a. Constltution Cambridge Union Society is registered as a charitable company limited by guarantee and was set up by a Trust deed. The Cambridge Union Society was formed and regislered with both Companies House (Registered Company Number.. 07091173) and the Charity Commission (Registered Charity Number: 1136030) and the assets transferred from the old to the new charity on 1 July 2010. There have been some small changes to the constitution of the charity during the reporting year. The subsidiary company, Cambridge Union Society Enterprlses Limited was created to handle the growing buslness interests of the charily. The Cambridge Union Society Enterprises Limited or CUSEL (Registered Company Number.. 06785468) started its operations on the 1 July 2010. b. Trustees The trustees of the charity who setved during the year are at the head of this report. Methods of appolntment or election of Trustees New trustees are currently appointed on the basis of recommendation and formal acceptan by the serving officers of Standing Committee, Ihe student elected officers who run the Union on a daily basis and by the serving trustees. The chair of the trustees is normally recruited from the heads of house of colleges of Cambridge University. The current chair is the President of Queens College. In accordance with the laws ofThe Cambridge Union Society, a trustee's term of office shall be for 5 years from the date of his or her appointment. Prior to Ihe expiration of a trustee's term of office the board may vote, without the Iruslee being present lo extend thal trustee's term of office for a further 5 years. There shall be no limit lo the number of times a Irustee's term may be extended. The student Trltstees term of office as a trustee shall be the same as his or her term of office as the President, Vice president of the Union. d. Pay policy for senior staff The Iruslees delegate operational running of the charity to the Bursar. The Bursar's salary is bench marked against the University pay scales. Policies adopted for the induction and training of Trustees Induction and training of new trustees is completed on an informal basis. f. Organisational structure and decision rnaklng The truslees set out the general policy of the charity. The day to day affairs of the charity are administered by the Standing Committee of volunteer officers of the society supported by the regular staff led by the Bursar. The trading board meets monthly except for August and December and the Union Maln board at least six times a year to provide slrategic guidance. Page 6
CAMBRIDGE UNION SOCIETY (A company limlted by guarantee} TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024 Plans for future perlods The Union remains popular and is the largest of all student societies at Cambridge. Trustees and members continue to develop the core aims and objectives of Ihe charity to meet contemporary need and ensure the long- term relevance of the society lo its members and those we assist. The Union is developing an overarching plan for ils facilities which represents its largest asset to ensure Ihey are maintained and utilised to best effect. The society continues to expand Its reach abroad through supporting contracts for competitions and training. Statement of Trustees. responsibilities The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees, report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounling Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial slatements unless Ihey are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resourGes and application of resources, including their income and expendlture, for that period. In preparlng these financial statements, the Trustees are required to.. select suilable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP (FRS 1021. make judgments and accounting estimates that are reasonable and prudent; stale whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial slalements., prepare the financial slalements on the going COnrTr basis unless it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounling records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure thal the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable sleps for the prevention and detection of fraud and olher Irregularities. Dlsclosure of information to audltors Each of the persons who are Trustees at the time when this Trustees, report is approved has confimied that: so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and thal Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to eslablish that the charitable group's auditors are aware of that information. Page 7
CAMBRIDGE UNION SOCIETY {A company limited by guarantee> TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024 Auditors The auditors, Streets Audil LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved order the members the board of eir behalf by.. Trustees on ands Dr Mohamed El-Erian MA DPhll (Chair of Trustees) Mr D N Roblnson MA (Cantab) FCA (Trustee) Page 8
CAMBRIDGE UNION SOCIETY {A company limited by guaranteo) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CAMBRIDGE UNION SOCIETY Opinion We have audited the financial statements of Cambridge Union Society (the 'parent charitable companll and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise Ihe Consolidated statemenl of financial aclivilies, the Consolidated balance sheet, the Charity balan sheet, the Consolidated slatemenl of cash flows and the related notes, including a summary of significant accounting policies. The financial reporling framework that has been applied in their preparalion is applicable law and United Kingdom Accounting Slandards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, {Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state ofthe Group's and ofthe parent charitable companvs affairs as at 30 June 2024 and of the Group's incoming resources and application of resources, including ils income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice-, and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Audiling (UK} IISAS (UK)) and applicable law. Our responsibilities under those standards are further described In the Auditors, responsibilities for the audil of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other elhical responsibilities in accordance with these requirements. We believe Ihat the audit evidence we have obtained is sufficienl and appropriate lo provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable companvs abillty to continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going conrn are described in the relevant sections of Ihis report. Page 9
CAMBRIDGE UNION SOCIETY (A company limited by guaranteo) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CAMBRIDGE UNION SOCIETY (CONTINUED) Other informatlon The other information comprEses the information Included in the Annual report other than the flnanclal slatemenls and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibilily is to read the other informalion and, in doing so, consider whether the other information is materially inconsislent with the financial statements or our knowledge oblained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are reqLtired to determine whether this gives rise to a material rnisstatement in the financlal statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, report and the Strategic report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In the light of our knowledge and understanding of Ihe charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the Truslees, report inoluding the Strategic report. We have nothing to ieport in respect of the following matters in relation to which Companies Act 2006 requires us lo report lo you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accounling records, or relums adequate for our audit have not been received from branches not visited by us. or the parent charltable 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 811 the information and explanations we require for our audil. Page 10
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF CAMBRIDGE UNION SOCIETY (CONTINUED) Responslblllties of trustees As explained more fully in the Trustees, responsibilities statement, 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 Ihey give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are Iree from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable companvs ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using ihe going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charilable company or to cease operations, or have no realistic alternative but to do so. Page11
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CAMBRIDGE UNION SOCIETY (CONTINUED) Audltors. responsibilities for the audlt of the financial statements Our objectives are to obtaln reasonable assurance aboul whether the financial statements as a whole are free from material misslalement, whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assuran is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when il exisls. Misstatements can arise from fraLEd or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-complian with laws and regulalions. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Our approach lo identifying and assessing the risks of material misslatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: the engagemenl partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-complian with applicable laws and regulations. we identified the laws and regulations applicable to the company through discussions wlth directors and other management, and from our commercial experience of the sector,. we focused on specific laws and regulations which we consldered may have a direct materlal effect on the financial slatements or the operations of the company, inoluding the Companies Act 2006, taxation legislation, data protection, anli-bribery, employment, environmental, health and safety legislation., - we assessed the extent of Complian with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were communlcated within the audit team regularly and the team remained alert lo inslances of non-compliance Ihroughout the audit. We assessed the susceptlbllity of the companvs financial statements to material mlsstatemenl, including obtaining an understanding of how fraud might occur, by- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud., and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships. tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estlmates were indicative of potenlial bias., and investigated the rationale behind significant or unusual transactions. Page 12
CAMBRIDGE UNION SOCIETY {A company limited by guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF CAMBRIDGE UNION SOCIE (CONTINUED) In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were nol limited to.. agreeing financial statement disclosures to underlying supporting documenlalion., enquiring of management as lo actual and potenlial liligation and claims. and reviewing correspondence with HMRC, relevant regulators and the companls legal advisors. There are Inherent limitations in our audit prOdureS described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and olher management and the inspection of regulatory and legal correspondence, if any. Material misstatemenls that arise due to fraud can be harder to detect than those that arise from error as Ihey may involve deliberate concealrnenl or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklaudilorsres onsibilities. This description forms part of our Auditors, report. Use of our report This report is made solely to the charitable companys members, as a body, in accordan with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to Ihe charitable company's members those matters we are required to state to them in an Auditors, 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed. Shane Tharby (Senior statutory audltor) for and on behalf of Streets Audit LLP Chartered Accountants and Slalulory Auditor 3 Wellbrook Court Girton Cambridge CB3 ONA Date.. Page 13
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2024 Unrestricted funds 2024 Total funds 2024 Total funds 2023 Note Income from: Donations and legacies Charitable activities other trading activities- Fundraising Trading subsidiary activities Investments other income 20 20 354,524 10,250 333,088 354,524 68,789 1,769,947 164,810 4,139 68,789 1,769,947 164,810 4,139 59,325 1, 526,302 120, 142 26,152 Total income 2,362,229 2,362.229 2,075,259 Expenditure on: Raising funds: Investment management Trading subsidiary costs Charitable activities 10 4,744 1,510,665 960,594 4,744 1,510,665 960,594 5,830 1,452,249 957,065 Total expenditure 2,476,003 2,476,003 2,415.144 Net expenditur8 before net gains on investments Net gains on investments Net movement In funds before other recognlsed gainsl(losse5) (113,774) 63,288 (113,774) 63,288 (339,885) 14,292 (50,486) (50,486) (325,593J other recognised gainsl(losses}: Gains on revaluation of fixed assets 50,000 Net movement Sn funds {50,486} 150,4861 (275,593) Reconclllation of funds: Total funds brought forward Net movement in funds 8,878,622 (50,486) 8,878,622 (50,486} 9, 154,215 (275,593) Total funds carried forward 8,828,136 8,828,136 8, 878, 622 The Consolidated statement of financial activities includes all gains and losses recognised in the year. The notes on pages 20 to 42 form part of these flnancial statements. Page 14
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 07091173 CONSOLIDATED BALANCE SHEET {CONTINUED) AS AT 30 JUNE 2024 2024 2023 Noto Charity funds Restricted funds Unreslricted funds 24 24 8,828,136 8,878, 622 Total funds 8,828,136 8, 878, 622 The Trustees acknowledge their responslbilities for complylng wlth the requiremenls of the Acl wlth respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees on and signed on th behalf by.. U. Dr Mohamed El-Erian MA DPhil Chair of Trustees Mr D N Roblnson MA (Cantab) FCA Trustee The notes on pages 20 to 42 form part of Ihese financial statements. Page 16
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 07091173 CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2024 2024 2023 Note Fixed assets Intangible assets Tangible assels Investments Investment property 15 16 18 17 24,367 8,782,647 626,553 1,050,000 31,167 8,932, 757 712,884 1,050,000 10,483,567 10,726,788 Current assets stocks Debtors 19 20 36,075 289,276 338,497 29,822 164,522 169.207 Cash at bank and in hand 663,848 363.551 Creditors.. amounts falling due withln one year 21 1872,450) (828,432) Net current liabilities (208,602) (464,881) Total assets less current liabilities 10,274,965 10,261,907 Creditors.. amounts falling due after more than one year 22 (1,446,829) (1,383,285J Total net assets 8,828,136 8, 878,622 Page 15
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) REGISTERED NUMBER: 07091173 CHARITY BALANCE SHEET AS AT 30 JUNE 2024 2024 2023 Note Fixed assets Intangible assels Tangible assets Investments Investment property 15 16 24,367 8,782,647 626,554 1,050,000 31, 167 8,932, 757 712, 865 1,050.000 18 17 10,483,568 10, 726, 789 Current assets Debtors Cash at bank and in hand 20 12,925 173,706 56,506 111,187 186,631 167,693 Creditors.. amounts falling due within one year 21 (409,610) (638,525) Net current liabilities {222,979) (470,832) Total assets less current liabilities 10,260,589 10,255,957 Creditors.. amounts falllng due after more than one year 22 {1,432,453) (1,320,230) Total net assets 8,828,136 8,935, 727 Page 17
CAMBRIDGE UNION SOCIETY {A company limited by guarantee) REGISTERED NUMBER: 07091173 CHARITY BALANCE SHEET (CONTINUED) AS AT 30 JUNE 2024 2024 2023 Note Charity funds Restricted funds Unreslricted funds 24 24 8,828,136 8,935, 727 Total funds 8,828,136 8,935,727 The Charitls net movement in funds for the year was £(111,984) (2023 - £(220,267)). The Truslees acknowledge thelr responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial slalements. The financial statements were approved and authorised for issue by the Trustees on and sign ir behalf by.. Dr Mohamed El-Erian MA DPhll (Chair of Trustee8) Mr D N Roblnson MA jcantab) FCA (Trustee) The notes on pages 20 to 42 form part of these financial statements. Page18
CAMBRIDGE UNION SOCIETY (A Company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024 2024 2023 Cash flows from operating activlties Net cash used in operating activities (88,505) (390,006) Cash flows from investing aclivities Dividends, interests and rents from investments Purchase of tangible fixed assets Proceeds from sale of investments Net movement on investments 164,810 (30,1631 120,142 (95,241) 22,009 101,265 149,599 Net cash provided by investing activities 284,246 148,175 Cash flows from finan¢ing activities Repayments of borrowing (26,451) (126,442) Net cash used in financing activlties (26,451) (126,442) Change In cash and eash equivalents in the year Cash and cash equlvalents at Ihe beginning ofthe year 169,290 (368,273) 53T,480 169,207 Cash and cash equivalents at the end of tha year 338,497 169,207 The notes on pages 20 to 42 forffl part of Ihese financial statements Page 19
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 General Information The charity is a private company limited by guarantee, registered in England and Wales and a regislered charity in England and Wales. The address of the registered office is ga Bridge Street, Cambridge, CB2 1UB. The charitls functional and presentational currency is GBP. Accounting pollcles 2.1 Basls of preparation of flnanclal statements The financial statements have been prepared in accordance with Ihe Charltles SORP IFRS 102) - Accounting and Reporting by Charities= Statement of Recommended practi applicable to charities preparing Ihelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Finanoial Reporting Standard applicable in Ihe UK and Republic of Ireland (FRS 102} and the Companies Act 2006. Cambridge Union Society meets the definition of a public benefit enlity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting pollcy. The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and Its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statemenl of financial activities in these financial statements. The Charily has taken advantage of the exemptions available lo qualifying entilies and has not prepared a charity only Slatement of Cash Flows. 2.2 Company ststus The Union is a company limited by guarantee. The members of the company are the Trustees, names on page 1. In the event of the Union being wound up, the Ilablllty In respect of the guarantee is limited to £1 per member of the Union. 2.3 Golng concern Management have prepared financial forecast and projected cash flows which the Trustees have reviewed in detail. This review by the Trustees has included Ltnderslanding the assumptions used in preparing these forecasts and satisfying themselves Ihat, against the current economic backdrop, the financial projections do indeed look both prudent and reasonable. Based on this, the Trustees have concluded that the Charity continues lo have sufficient resources to meet ils liabilities as they fall due for the foreseeable future. As a consequence, these financial slalemenls have been prepared on a going concern basis. Page 20
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Accounting policie5 {continued) 2.4 Incom8 All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be rneasured reliably. Donation income is recognised when it is probable that the donations will be receivable. Income from charitable activities comprise income received from activities performed in furtherence of the objects of the charity, including those services provided by members of the society. Annual memberships are recognised in the academic year to which it relates. Life memberships are recognised evenly over three academic periods as this Is the length of time the average student spends In Cambridge and therefore the period of time over which the vast majority of the benefits are provided. Dividends are recognised on a receivables basis. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company., this is normally upon nolificalion of the interest paid or payable by the bank. Rental income under long term leases is accrued over the period of the lease. Our trading activities comprise income reiVed from those activities performed by tho charlty with the primary purpose of fundraising. This income is recognised upon sale of goods (being bar I cafeteria sales) or provision of service (upon the hire of rooms or advertisements with the termcard). Income is recognised exclusive of Value Added Tax. 2.5 Expenditure Expenditure is reGognised once there is a legal or conslruclive obligalion to transfer economic benefit to a third party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direcl costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned beeen Ihose activities on a basis consistent with the use of resources. All support costs are seen to relate to charitable activies. Support cosls are those costs incurred directly in supporl of expenditure on the objecls of the charity and include management, administration and governance costs. Governance costs are those incurred in connection with administration of Ihe charity and compliance with constitutional and stautory requirements, including the annual audit fee. Costs of generating funds are costs incurred in attracting voluntary income. and Ihose incurred in trading activities that raise funds. P8ge 21
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Accounting policies (continued) 2.6 Intangible assèts and amortisation Intangible assets are capitalised and recognised when future economic benefits are probable, and the cost or value of the asset can be measured reliably. Intangible assets are inilially recognised at cost. After recognition. under the cost model, intangible assets are measured at cost less any accumulated amortisalion and any accumulated impairment losses. Amortisallon Is provided on intangible assets at rates calculated to write off Ihe cost of each asset on a slraight-line basis over its expected useful life. Amortisation is provlded on the following basis.. Website 20 OA straight Ilne 2.7 Tanglble fixed assets and depreciatlon Freehold property is included at valuation on an existing use basis, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. A formal valuation is held when the Truslees feel it is necessary to ensure that the carrying value of the freehold property is not materially different from it's fair value. Tangible fixed assets (except freehold property) are carried at cost nel of depreciation and any provision for Impalrment, wilh Ihe except of freehold land, which is included at valuation and not depreciated. Depreciation is provided at rates calculated to wiite off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives. At each reporting date the Charily assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined lo be Ihe higher of ils fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Depreciation Is provided on the following bases= Freehold property Fixtures and fillings Computer equipment 2 % straight line on buildings 10 - 33.33 % straight line 33.33 % straight line Page 22
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Accounting policies (continued) 2.8 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their trarisaclion cost and subsequently measured at fair value at the Balan sheet dale, unless the value cannot be measured reliably in which case it is measured al cost less impairment. Investmenl gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl{Losses) on inveslmenls, in the Consolidated Slatement of Financial Activities. Investments in subsidiaries are valued at cost less provision for impairment. Investment property is carried at fair value determined by the Trustees based on professional advice received. Fair values are derived from the current markel rents and investment property yields for comparable real estale, adjusted if necessary for any dlfference in the nature, locatlon or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities. 2.9 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowan for obsolete and slow-moving stocks. 2.10 Debtors Trade and olher debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. 2.11 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of Ihree monlhs or less from the date of acquisition or opening of Ihe deposit or similar account. 2.12 Liabilities and provisions Liabilities are recognised when Ihere is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charily anlicipates it will pay to settle the debt or the amount il has received as advanced payments for Ihe goods or services it musl provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Aclivities as a finance cost. Page 23
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Accountlng polScles {continued) 2.13 Flnancial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial inslruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value wilh the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.14 Operating leases Rentals paid under operating leases are charged lo the Consolidated statement of flnancial activities on a straighl-line basis over the lease term. 2.15 Penslons The group provides defined contribution schemes which meet ils obligations to employees. The pension charge represents the amounts payable by the company to these funds in respect of the year. An annuity is provided for the pension payable to the widow of a former employee. The present value of the future payments is accounted for, split between amounts due within one year and amounts due In more than one year. 2.16 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Critical accounting estlmates and areas of judgment Eslimales and judgments are continually evaluated and are based on historical experience and other factors, including expectatlons of future events that are belleved to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Charlty makes estimates and assumptlons concerning the future. The resulting accounting estimales and assumptions will, by definition, seldorn equal the related actual results. The eslimales and assumptions thal have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Fair value of investmenl property which is eslimated using professional advice. Deferred membership income. Membership income is deferred in relalion to the period the membership covers. Page 24
CAMBRIDGE UNION SOCIETY (A company limited by guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Income from donations and legacies Unrestricted funds 2024 Total funds 2024 Total funds 2023 Donations 20 20 10,250 Total 2023 10,250 10,250 Income from charitable actlvltles Unrestricted funds 2024 Total funds 2024 Total funds 2023 Member subscriptions Debating event and competition income 311,718 42,806 311,718 42,806 294,318 38,770 354,524 354,524 333,088 Total 2023 333, 088 333,088 Income from other tradlng activities Income from fundraising events Unrestricted funds 2024 Total funds 2024 Tofal funds 2023 Advertising and sponsorship 68,789 68,789 59,325 Total 2023 59,325 59,325 Page 25
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Income from other trading activities (continued) Income from non charitable trading actiVStl8s Unrestricted funds 2024 Total funds 2024 Total funds 2023 Income from trading subsidlary 1,769,947 1.769.947 1,526,302 Total 2023 1, 526,302 1,526,302 Trading activites Unrestrlcted funds 2024 Total funds 2024 Total funds 2023 Net Income from trading subsldlary Income from trading subsidiary Expenses from trading subsidiary 1,769,947 1,769,947 1,526,302 {1,510,665) (1,510,665) (1,452,249) Total 2024 259,282 259,282 74,053 The total income and expenditure from trading activiles shown above dlffers to the financial statements of the subsidiary company as a result of the elimination of trading within the group on consolidation. Page 26
CAMBRIDGE UNION SOCIETY IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 Investment income Unrestricted funds 2024 Total funds 2024 Total funds 2023 Rents Dividends 145,524 14,794 4,492 145,524 14,794 4,492 100,291 18,623 1,228 Interest receivable 164,810 164,810 120,142 Total 2023 120,142 120, 142 Other incoming rosources Unrestricted funds 2024 Total funds 2024 Total funds 2023 other income 4,139 4,139 26,152 Total 2023 26,152 26, 152 10. Investment management costs Unrestricted funds 2024 Total funds 2024 Total funds 2023 Investment management fees 4,744 4,744 5,830 Total 2023 5,830 5,830 Page 27
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 11. Analysis of expenditure by activities Activities undertaken directly 2024 Support costs Total funds 2024 Total funds 2023 2024 Membership and speakers Compelitive debating 443,178 52,586 464,830 908,008 52,586 867,230 89,835 495.764 464,830 960,594 957,065 Tot812023 528,445 428,620 957,065 Analysis of direct costs Membership and Competitlve speakers debating 2024 2024 Total funds 2024 Total funds 2023 Depreciation and amortisation Advertising and publicity Membership administration Premises costs Member events and tours Cambridge and external IV Debating competitions Debate dinners 187,073 1,500 6,222 206,788 41,595 187,073 1,500 6,222 206,788 41,595 10,500 26,245 15,841 180,366 7,851 653 195, 839 54,270 48,693 18,215 22,558 10,500 26,245 15,841 443,178 52,586 495,764 528,445 Total 2023 438,610 89,835 528,445 Page 28
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 11. Analysis of expenditure by activities {continuedl Analysis of support costs Membership and speakers 2024 Total funds 2024 Total funds 2023 staff costs Legal and professional fees Office costs Provision for bad and doubtful debts Audit and accountancy fees Interest on loan 264,364 2,750 78,861 264,364 2,750 78,861 21g,806 14,171 115,870 (28,030) 25,190 81,613 25,450 93,405 25,450 93,405 464,830 464,830 428,620 Total 2023 428, 620 428,620 Governan costs included above totalled £25,450 (2023 - £25,190), being auditors remuneration of £11,00012023 - £11,000) and non-audil costs of£14,450 (2023- £14,190). 12. Auditors, remuneration 2024 2023 Fees payable to the Charitls auditor for the audit of the Charivs annual account5 7,000 7,000 Fees payable to the Charitls auditor in respect of= All non-audit services not included above 18,450 18,190 Page 29
CAMBRIDGE UNION SOCIETY IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 13. Staff costs Group 2024 Group 2023 Charlty 2024 Charity 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 969,297 82,095 878,043 69,830 219,330 22,922 184,114 19,013 69,123 59,4T2 22,112 16,679 1,120,515 1,007,345 264,364 219,806 The average number of persons employed by the Charity during the year was as follows.. Group 2024 Gmup 2023 Charity 2024 Charity 2023 Staff 44 51 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. Group 2024 Gmup 2023 In the band £70,001- £80,000 In the band £80,001- £90,000 The key managemenl personnel of the Charity comprise the Bursar and the Trustees. During the year, no trustees received any remuneration or benefit in kind (2023 £Nil). The total remuneration, including pension conlribulions and employers nalional insurance contributions of key management personnel was: £103.835 (2023- £97,499). 14. Trustees, remuneratlon and expenses During the year, no Trustees received any rernuneration or other benefits (2023 - £NIL). During the year ended 30 June 2024, no Trustee expenses have been incurred (2023- £NIL). Page 30
CAMBRIDGE UNION SOCIETY (A company IlmTtèd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 1 S. Intanglble assets GTOUP and Charity Website Cost At 1 July 2023 34,000 At 30 June 2024 34,000 Amortisation At 1 July 2023 Charge for the year 2,833 6,800 At 30 June 2024 9,633 Net book value At 30 June 2024 24,367 At 30 June 2023 3t,t67 Page 31
CAMBRIDGE UNION SOCIETY (A company limited by guarantao) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 16. Tangible fixed assets Group and Charity Fixtures, Land and fittings and buildings computer Improvoments (Valuation) equipment to bulldings Total Cost or valuatlon At 1 July 2023 Additions 9,623,842 542,688 11,870 235,449 18,293 10,401,979 30,163 At 30 June 2024 9,623,842 554,558 253,742 10,432,142 Depreciatlon At 1 July 2023 Charge for the year 793,077 159,879 493,933 10,504 182,212 9,890 1,469,222 180,273 At 30 June 2024 952,956 504,437 192,102 1,649,495 Net book value At 30 June 2024 8,670,886 50,121 61,640 8,782,647 At 30 June 2023 8,830, 765 48, 755 53,237 8,932, 757 Included in land and buildings is freehold land at a valuation of £1,612,000 (2023 £1,612,000), which is not depreclated. Lambert Smllh Hampton reva5ued Ihe freehold property at 11 October 2021 on an exisling use basis. The carrying amount under the cost model of the assets which have been revalued would have been £950 (2023 - £950). Page 32
CAMBRIDGE UNION SOCIETY {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 17. Invoslment property Group and Charity Freehold investment propety Valuatlon Al 1 July 2023 1,050,000 At 30 June 2024 1,050,000 The properties were valued by the Trustees on an existing use basis taking into account previous professional valualions undertaken as at 11 October 2021. 18. Flxed asset investments Cash held at investment manager Listed securities Total Group Cost or valuation At 1 July 2023 Additions 700,271 53,697 1191,025) 55,501 12,593 712,864 53,697 (191,025> 55,501 {4,4841 Disposals Revalualion5 Movement on cash (4,484) At 30 June 2024 618,444 8,109 626,553 Net book value AI 30 June 2024 618,444 8,109 626,553 At 30 June 2023 700,271 12,593 712,864 Page 33
CAMBRIDGE UNION SOCIETY (A company limited by guarantee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 18. Flxad asset investments (continued) Investments in subsidiary companies Cash held at investment manager Listed securltles Total Charity Cost or valuation At 1 July 2023 Additions Disposals Revaluatlons Movement on cash 700,271 53,697 (191,025) 55,501 12,593 712,865 53,697 (191,025) 55,501 (4,484) (4,484) At 30 June 2024 618,444 8,109 626,554 Net book value At 30 June 2024 618,444 8,109 626,554 At 30 June 2023 700,277 12,593 712,865 All listed inveslments are listed on recognised stock exchanges. Day-to-day management of the investments was delegated by the trustees during the year to Quilter Cheviot. All investmgnts are carried out at their market value. Investment in equities and fixed interest securities are all traded in quoted public markets. Holdings in common inveslment funds, unit Irusts and open- ended inveslment companies are al Ihe bid price. The basis of fair value for quoted investments is equivalent to the markel value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the charity is considered in the financial review and investment policy and performance sections of the Trustees, Annual Report. The main risk lo the charity from the financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidily risk is anticipated to be low as all assets are traded and the commitment to inletvention by central banks and market regulators has continued to provide for orderly trading in the markets and so the ability to buy and sell quoted equities and stock is anticipated to continue. The charitrfs investments are mainly traded in markets with good liquidily and high trading volumes. The charity has no material investment holdings in rnarkels subject to exchange controls or trading restrictions. The charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diverslfication of holdings wilhln investment asset olasses that are quoled on recognlsed stock exchanges. The charity does not make use of derivatives and slmllar complex financial instruments as it lakes the view that investments are held for Iheir volatility in any partlcular 5 year period will normally be corrected. Page 34
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 18. Fixed asset investments (continued) Principal subsidiaries The Union has 8 wholly owned subsidiary whlch Is incorporated in the UK. Cambridge Unlon Society Enterprises Limited operates the trading activities of the Union. The company covenants its taxable profits to The Cambridge Union Society. A summary of the companys results is shown below. Audited accounts will be filed with the Registrar of Companies. The followlng were subsidiary undertakings of the Charity.. Names Company number Registered office or prlnclpal Principal activity place of buslness Cambridge Union Society Enterprises Limited 06785468 9a Bridge Street, Cambridge. CB2 1UB Trading activilles of the Union The above entity is 100 % owned by the charity and is included in the consolidated accounts. The financial results of the subsidiary for the year were.. Name Income Expendlture Profitl{Lossl I Surplusl (Deficit) for the year Cambridge Union Society Enterprises Limited 1,769,947 (1,588,959) 180,988 Cambridge Union Soclety Enterprises Limited have net assets of £1. 19. Stocks Group 2024 Group 2023 Goods for resale 36,075 29,822 Page 35
CAMBRIDGE UNION SOCIETY {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 20. Debtors Group 2024 Gmup 2023 Charity 2024 Charity 2023 Due within one year Trade debtors Other debtors Prepayments and accrued income 285,930 3,346 146,116 25 9,579 3,346 38, 125 18.381 18,381 289,276 164,522 12,925 56,506 21. Creditors: Amounts falling due within one year Group 2024 Group 2023 Charity 2024 Charity 2023 Bank loans Trade creditors Amounts owed to group undertakings Unfunded pension liability other taxation and social security other creditors Accruals and deferred income 126,442 157,071 126,442 75,501 131,677 3,000 36,352 57,583 207,970 69,664 24,360 152,383 3,000 6,802 56,540 166,525 3,000 126,840 92,826 580,120 3, 000 84,825 101,225 355,869 872,450 828,432 409,610 638, 525 The bank loan is secured over the freehold property and Incurs interest at a rate of 2.15 % over the Bank of England base rate per annum. Page 36
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 22. Creditors: Amounts falling due after more than one year Group 2024 Group 2023 Charity 2024 Charity 2023 Bank loans Unfunded pension liability Accruals and deferred income 1,315,497 25,967 105,365 1,275,506 28,967 138,812 1,315,497 25,967 90,989 1,215,506 28,967 75, 757 1,446,829 1,383,285 1,432,453 1,320,230 The bank loan is secured over the freehold property and incurs interest at a rate of 2.15% over the Bank of England base rate per annum. 23. Deferred income GTOUP 2024 Group 2023 Charity 2024 Charity 2023 Deferred income at 1 July 2023 Resources deferred during the year Amounts released from previous periods 447,559 496,003 561,315 266,379 (330,890) (314,823) 266,248 320, 642 181,755 142, 173 (190,491) (196,567) Deferred Income at 30 June 2024 677,984 447,559 257,512 266,248 Page 37
CAMBRIDGE UNION SOCIETY (A company limited by guarantea) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 24. Statement of funds Statement of funds - current year As restated Balance at 1 July 2023 Balance at 30 June 2024 Galnsl (Loss85> Income Expenditure Unrestricted funds General Funds Revaluation reserve 7,042,515 1,836,107 2,362,229 (2,476,003) 63,288 6,992,029 1,836,107 8,878,622 2,362,229 (2,476,003) 63,288 8,828,136 Page 38
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 24. Statement of funds (continued) statement of funds - prior year As restated Balance at 30 June 2023 Balance al l July 2022 Gains/ (Losses) Income Expendifu Unrestricted funds General Funds Revaluation reserve 7,368, 108 1, 786, 107 2,075,259 (2,415, t44J 14,292 50,000 7,042,515 1,836, 107 9, 154,215 2,075,259 (2,415, 144) 64,292 8,878, 622 25. Analysis of not assets between funds Analysls of net assets between funds - current perlod Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Intangible fixed assets Fixed asset investments Inveslment property Current assets Creditors due within one year Creditors due in more than one year 8,782,647 8,782,647 24,367 24,367 626,553 626,553 1,050,000 1,050,000 663,848 663,848 {872,450) <872,4501 (1,446,829) {1,446,8291 Total 8,828,136 8,828,136 Page 39
CAMBRIDGE UNION SOCIETY (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 25. Analysis of net assets between funds (continued) Analysls of net assets between funds - prior period As restated As restated Unrestricted Total funds funds 2023 2023 Tangible fixed assets Intangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year 8,932, 757 8,932, 757 31,167 31,167 712,864 712,864 1,050,000 1, 050,000 363,551 363,551 (828,432) (828,432) (1,383,285) (1.383,285) Total As restated 8,878, 622 8,878, 622 26. Reconclllatlon of net movement in funds to net cash flow from operating actlvltles Group 2024 Group 2023 Nel expenditure for the period (as per Statement of Financial Activities) {50,486) (325, 593) Adjustments for: Depreciation charges Dividends, interests and rents from investments Increase in stocks Decreasel(increase) In debtors Increaselldecreasel in creditors Increase in long term creditors Lossesl(gains) on inveslments 187,073 (164,810) 16,2531 1126,757} 172,463 {36,447) {63,288) 180,366 (120,142) {2, 140J 108,278 (172, 688) (43, 795) (14,292) Net cash used in operatlng acttvities {88,505) (390,006) Page 40
CAMBRIDGE UNION SOCIETY {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 27. Analysis of cash and cash equivalents Group 2024 Group 2023 Cash in hand 338,497 169.207 Total cash and cash equlvalents 338,497 169,207 28. Analysis of changes In net debt At 1 July 2023 Cash flows New At30 June advance5 2024 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 169,207 {126,442) 11,215,506) 169,290 126,442 1,215,506 338,497 (1,315,497} (1,315,497) (1,172,741) 1,511,238 (1,315,497} (977,000) 29. Capltal commitments Group 2024 Group 2023 Charity 2024 Charity 2023 Conlracted for but not provided in these financlal statements Improvements and repairs to buildings 151,046 151,046 30. Pension commitments The group provides defined contrtbution pension schemes to ils employees. The assets of these schemes are held separately from those of the group in independently administered funds. The pension charge represents conlributions payable by the group lo the funds and amounts to £69,123 (2023 £59,472). £5,202 (2023 - £11,029) was payable to the funds at the balance sheet date. Page 41
CAMBRIDGE UNION SOCIETY {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 31. Prior year adjustments During the year the company undertook a review of the deferred income balances previously reported as al 30 June 2023 and identified an error which results in the deferred income beir)g understated by £57,105 and the brought forward profit and loss reserves overstated by £57,105. The error was originally posted in the year ended 30 June 2022 and therefore has been adjusted in the prior year brought forward reserves. This has been accounted for as a prior year adjustment. During the year a review was undertaken of the turnover categories and it was noted that discretionary tips recelved from customers that are passed onto staff were incorrectly belng Ireated as part of turnover. This has now been corrected as has resltlted in turnover reducing by £48,659 and cost of sales also reduoing by £48,659. This has had no impact on gross profit or overall results and has been accounted for as a prior year adjustment. 32. Operatlng lease commitments At 30 June 2024 the Group and the Charily had commitments to make future minimum lease payments under non-cancellable operaling leases as follows= Group 2024 Group 2023 Charlty 2024 Charity 2023 Not later than 1 year Later Ihan 1 year and not later than 5 years 6,122 17,854 6,122 23,976 6,122 17,854 6, 122 23,976 23,976 30,098 23,976 30,098 33. Related party transactions Cambridge Union Society Enterprises Limiled is a wholly owned subsidiary of The Cambridge Union Society. During the year, the charity made sales of £78,393 (2023 £68,000) to the company. The company has made a gift aid payment of Its taxable profits of£123,883 {2023- £62,607) to the charity. At 30 June 2024 the charity owed £152,383 {2023- £131,677) to the company. Page 42