Registered Company Number.. 03934555 {England and Wales) Charity Registration No. 1136115 University of Portsmouth °.upsu Students, Uriior7 The University of Portsmouth Students, UnAon Report and Consolidated Financial Statements For the year ended 31 July 2024
The Unfverslty of Portsmouth Student's Unlon Contents of the Financial Statements for the Year Ended 31 July 2023 Page Report of the Trustees Ito13 Report of the Independent Auditors 14to17 Statement of Financial Activities 18 Balance Sheet 19 Cash Flow Statement 20 Notes to the Cash Flow Statement 21 Note5 to the Financial Statements 22to34
The Unlverslty of Portsmouth Student's Unlon Report of the Trnstees for the Year Ended 31 Juty 2024 REFERENCE ANO ADMINISTRATIVE DEfAILS Full-time (Elertedl offirTrStees Weare Officer Ine5 Brzychryk (appointed 1st July 2023. re518ned 30th June 20241 Welfzre Oflicer Cofinor Sutherland (appointed Istjuly 20241 Learning Experience Officer Kaletan Albin lappointed Istjuly 2023. resigned 30th June 20241 Le3rnin8 ExFerlence Officer Blessing Okafor13ppointed 1st July 20241 Development Offlcer Temidayo Dosunmu lappolntrd on Istjuly 2022, resigned 30th June 20241 DevÈlopment Officer Ummu-salamah Danluma lappolnted Istjuty 20241 Academic Representation Officef Marlla k)lic lappointed 1st July 20231 Democracy and Campaigns Officer Maizey Annear lappointed Istjuly 2023. resigned 25th August 20231 DerDocroEy and Carnpaigns Officer Anwarjawula lappDlnled 26th August 20231 SturfeniTrustee$ Non-Portlolio Non-Portfolio Non-Portfollo 5ubhlesh N81r lappolnted 25th April 2023, resigned 24th October 20231 Oliver Cripp5 lappoinied 25th April 20231 Eguonoghene Adams lappolnted 1st July 2023, reslgned 24th April 20241 Univ¢rs4ty Nominated Trustee Non-PortFollo Mary Wllli8m5 (appointed 21st Aprll 20201 External Twstees Non-Portfolio Non-Portfolh) Non-Portfo150 Vlctoria Turner lappolnted on 29th Janvary 20191 lan Robinson lappointed on 29th January 20191 Rlchard Askey lappolnted 24th Aprll 20241 Company Secretary Marlla Sollc lappointed 1st July 2023, resigned 30th June 20241 Anw3rJawula lappolnted 1st July 20241 Chlel Executlve Anna Clodfelter ReElstered Qffi StudÈAt Union Building Cambrldge Road Pcrtsmouth Hants POI 2EF Registered Company rnbel 03934555 ReElstered Chath Number 1136115 Audltor5 Morris Crocker Station House, North Street Havant Pog IQU Banker5 B3rc13ys Bank PIC Leicester LE87 288 Charlty Bank Limited 194 High Street Tonbridge KentTN9 IBE Santander UK PIC Abbey National House 2 Triton Square Re8ents Place London NWI 3AN UfiityTrust nk PIE Nine Brindleyplace Blimingham 812HB Lloyds TSB Bank PIC 25 Gresham Street London EC2V 7HN
The Unlversity of Portsmouth Student's Unlon Report of the Trustee5 For the Year Ended 31 Juty 2024 REFERENCE AND ADMINISTRATIVE DETAILS Icontlnuedl Solicitors Warner Goodman LLP Colman House 2-4 Landport Terrace Portsmouth POI 2RG The Trustees, who are dlrectors for the purposes of comp4ny law, have pleasure In pre5entlng their annual report for the purposes of Charities Act 2011 and Companies Act 2006, together wlth the ac¢ounts for the year ended 31st July 2024. The trustees have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charltles" IFRS 1021 in preparing the annual report and financial statements of the Univèrslty of Portsmouth Students, Union (the Union). STRUCTURE GOVERNANCE AND MANAGEMENT The Union Ss a registered charity Icharlty No: 11361151 Ilnked to the University of Portsmouth (the Unlversityl. The Unlon is also a company limlted by guarantee registered In England and Wales Icompany No.. 39345551. The Unlon Is constituted by its Memorandum and Artides of Association and is controlled by a Board of Trustee5. who acr as Dlrectors for the purposes of company law and Trustees for the purposes of charity law. Decisions are made by slmple majority vote. The Unlon is a students, union. as defined In the Educatlon Act 1994, vhth internal regulations and rules approved by its Board of Trustee5. The Unlon has twèlvè Trustees and are made up of the followlng persons: Flve Officer Trustees, elected annually in accordance wlth the Union's Memorandum and Artlcles of A$50ciation and elections rules Three StudÈnt Trustees, appo5nted in accordance wlth the Unlon's Memorandum and Articles of Assoclatlon One University Nomlnated Trustee. appointed in accordance with the Union's Memorandum and Artlcle5 of Assoclation Three External Trustees, appointed In accordance with the Union'5 Memijrandum and Artlcles of Association. The Union's Board af Trustees meets at least quarterly and are responsible for maintaining legal, flnancial and reputational stewardship. The Board of Trustee5 is also responslblè for settlng the organisation's strategy, In line with student member priorities. The Board approves general policies and approving the annual budgets and accounts. All Trustees are provided with the Charity Commission's Guldance to Trustees and are given an introduction to the activities of the Unlon by the existlng 804rd and the Chief Executlve. Trustees are provided with training as and when requlred. based on indlvldual and collertive needs. The Current Govemance Structure comprise5 of two subcornmittèès, Flnan¢e and Rlsk Committee and Student Focus & Governance Committee.
The Unlverslty of Portsmouth Student'5 Unipn Roport of the Trustees For the Year Ended 31 July 2024 STRUCTURE GOVERNANCE AND MANAGEMEKf (Continuedl udent Focus and Governance Committee ThÈ Student Focus and Governance Committee has responsibility as delegated by the Board of Trustees for decislon rnaking and actions tu) ensure that the Union,. a. maintains effertive and influential representstion maintains aciesslble, equitable and Inclusive artivity to proactlvely en8a8e sdentS from across the student cornmunity c. give a true and fair view of the State of the group's and the charitable company's affairs as at 31 July 2023 and of the groups incoming resources and appltcation of reSoUs, including it5 income and Èxpendlture, for the year then ènded,- d. maintains student leadershlp throL+gh fit for purpose and effectSve govemance and democratlc structure5 e. maintalns robust governance in relation to the Unions statutory reqU1ments ensures the Union responds at Board level to democratic outcomes in a way that shows respect and comrnitment to the Union as a student-led organisation The student Fo¢us and Governance Commlttèe reports declslons Fnatle and 15 accountable to the Board of Trustees. Mèmbership Iquorary is 50% + I to include an External Trustee and a Elected Officer): Two EleL1ed Offlcer5 (appointed by Leadership Team wlth re8ard to ski115 and expEriencel one of whl¢h wlll Chalr Two External or one University Trustee and one External trustee (appointed by Leadership Tearn with regard to skllls and experience) the External Trustee wlll vice-chalr. Two Student Trustee$13ppolnted by Leadership Team wFth regard to skills and Èxperlencèl Student Council Representatlve Deputy Chief Executive Dlrector of Membership Sèrvlces In an advisory capacity only ie non-voting members.. The Chief Executive, Head of Marketing & Insights lor appolnted function Manager), Head of Student Opportunltles & Operations lor appointed function Manager), Function Manager Insights There shall be at least two meeting5 in each acèdemit year, at least one before Christmas. Finance and Risk Committee The Firiance & Risk Committee has responsibility as delegated by the Board of Trustees for decision maklng and actlons to Ènsurè that the Union,- a. remains In sound financlal health maintains effertive risk management practices ¢. complle5 Wlth relevant le8islation and regulatlons The Finance & Risk Committee report5 deci5i0ns malle and is accountable to the Board of Trustees. Membership Iquoracy is 50% + I to Include an External Trustee and a Elected Officer).. • Two Elected Offlcers lappointed by Leadership Team wlth regard to skllls and experience) one of which will Chair. Two External andlor UnlrS1ty Trustees lappolnted by Leadership Team regard to skS11s and experientel one of whlch wlll vice-chalr. One student trustee (appointed by Leadership Team with regard to skills and experlencel Deputy to the Chief Executive Head of Central Servlces In an advisory capacity only- The Chief Executive and Union Financial Advisers
The Unlverslty Portsmouth Studènt's Union Report of the Trustees For the Yèar Ended 31 July 2024 STRUCTURE GOVERNANCE AND MANAGEMENT Icantlnuedl The committee meets on a quarterly basls in Ilne with financial quarter reporting framewor The democratic and representative framework of UPSU is as follows.. 'Have your sav is a democratic PTocess at the Union that enables students to get their volcè hÈard and change5 mgde. Every student can have a say on the Union and the University by submitting an Sdea through our Have Your Say plztform. Idea5 are then reviewed by Studènt Countil and actioned or put out to students to 4 vote if further student consultation 15 needed. The Board of Trugteèg maintains an oversight of these policSe5 in accgrdance with the Buard'5 dutles to maintaln legal, financial and reputational llewardship. Student Councll is the student4ed declsion making body at the Students. Union. They work together to tackle issues and run campaign5 which affect all parts of studènt lifÈ, from course based issues and ideas to lobbyin8 and resolving challengès that affert their wider Unlversity experlence. In 23124 Student Council was made up ot 10 Faculty Reps and 4 Student Offlcers took up post with a focus on the student experience and Ilbèratlon i55ue5. LIPSU is currentty undertaking a Democracy Review to improve its democratic decislon making. engagè mttré students in the proce55 and evaluate the volunteer and ftjll tlme offlcer posltlons. A yearly enhancement plan15 reviewed and supported by UPSU leadership to ensure that whilst the review is taking paltè improvements are Fnade year on year based on studÈnt and offlcer feedback. It should be noted that, due to financial constraints the Board took the declsion to reduce the flve full time officers to fotsr for the electlons In 2025. Proce5se5 are being implemented to ensure the four roles are basèd on student need and we wlll be gaining student feedback tsn this during the first quarter of 24/25. This will be implemented for a full two years125126 and 261271 to enable its impact to be monitored bÈforÈ further review. Da todo nrnnln of the Union is delegated by The Board of Trustees to a Chief Executive ICEOI. To ensure effectlve management the Chief Executive leads a Strategic Leadèrship Tèam, with re5pon5ibiltty for Strategic delivery and operatlonal oversight of the Union's actlvltles and services. Durlng thls financial year there were significant changes In stafflng due to funding restrictions, the restrurture resulted in a number of compulsory redundancy processes and In addltion to natural reductlon, reduced the staffing FfA by approximately 30%. The impact on the Senior staff team was the rÈduttlon of Senior staff posts from 7 to 5. There was an uplift of one post to create a thlrd SMT role- l. Chief EKecutSve- Anna Clodfelter ISMTI ii. Deputy Chief Executivé- Fern Lewis ISMTI ill. Diredor of Membership Setwices- Brendan Mccarthy ISMT) iv. Head of Central Services- Cherelyn Cuthbert Head of Marketing and En8agement- Anita Butler The five OflScer Trustees and the Senlor Managemènt Team arè members of thè Unlon's Leadership Team. The role of the Learlership Team is to review the mld-level performance of the organlsatlon, approve operational policies and toordlnate ongoing activities in accordance with the Unlon's strategy and directions from the Board ofTrustees. The full term5 of reference for the Leadership Team can be seen within the Union's byelaws. The Union employs 28 permanent stsff and a further 30 occasional staff for the sake of quality delivery. contlftuous improvement and for the management of its activities. All staff are accountable to the Chief Executive for the performance of their duties, via è linè-management structure of delegated authorlty.
The Unfversity Portsmouth Student's Unlon Report of the Trustees For the Year Ended 31 July 2024 STRUCTURE GOVERNANCE AND MANAGEMENT {Continued Salary bandings for all staff were revlewed through a sector ben¢hmarfting projert with Southampton and Sussex SUS, against sertor comparators and taking into account post covid market shifts. They were agreed by trustees in June 2022. they will be reviewed again in 2025. The Union operates a performance related pay framework for all staff including the Strategic Management Team. Staff are appraised against agreed annual objective5 by line managers and pay award5 are agreed annually by the Finance and Risk Committee. The CEO obejrtives and pay award is approved by the 8oard of Trustee, CEO appraisal 15 undertaken by a panel of Trustees who also oversee the DCE appraisal. RELATIONSHIP WITH RELATED PAiYfiES The relationship between the Universty and the Union is established in a Financial Memorandum of Undèrstsnding and a Partnership Agreement. The Unlon receives a Block Grarbt from the University. The Unlon also part-oceupies buildings owned by the University and enjoys a positive and supportive relationship with th& institution,. this non-monetary support Is intrSnslc to the relationshlp between the University and the Union and the associated benetits to the student body. Although the Union continues to generate supplementary funding from various mutual-trading activities. it s dependent on the University'5 Block Grant. The Universlty made a commitment to invest £250k for 2 years 22123 and 23124 for the UPSU Student Outcomes Change Project, with the ambition of establishing a long term partnership and co-funded project. During the 23124 year the University needed to make significant cuts to ensure the financial stability of the University. The 2nd year of the investment of £250k was reduced by £63k and it was confirmed that ongoing funding for this work would not be available. The University continues to review spending. It has been confirmed that the 61ock Grant remains ststic forthe 5th year. Whilst financially challenging for all. the Union appreciates the UniversitVs investment in the Union and for cc*nfirminE that they will provide Continued financial support at similar levels of block grant for the foreseeable future, subject to ther financial health. The 1994 Education Act imposes a duty on the University to ensure that the Union operates in a fair and democratic manner and is accountable for its finances. A joint Code of Practice and a Financial Memorandum of Understanding exists between the two organisations whlch Is revlewed annually and approved by both the Union Finance & Rlsk Committee and University Infrastructure and Flnance Committee. The Union'5 trading company,. Portsmouth Students, Union Tradlng Company Ltd IPSUT) is a wholly owned trading subsi(liary company of the Union. which generate5 commercial income to support the Union's charitable objectives. In 2023124 PSUT generated an operating profit of £79,429 from its activities. of which £79.429 was gifted to the Union. AFFIUATIONS There were no affillatSon resolutions during the year 23124 as defined within the provisions of the 1994 Education Act.
The Unlversfty of Portsmouth Student's Unlon Report of the Trustèes For the Year Ended 31 July 2024 RISK MANAGEMENT The Trurtees examine the major strategic, businèss and operational rlsks faced by the Union. The Union maintains a rlsk reglster that is updated qLrarterly and fully reviewed annually wlth exptionS and occurrences reported quarterfy to the Flnance and Rlsk Committee. Where appropriate, 5Y5tems or procedurès have been established to mitigate the rlsks faced by the Unlon. These procedurès are periodically revieweil to ensure that they contlnue to meet the needs of the Unlon. Health & Safety proce55e5 and frameworks and Finance processes are continually revlewed and updated by staff teams resulting in the embedding of excellent practice across the organisation. Bud8etary and Internal control risk5 are minimised by the Implementatlon of procedure5 for authorlsatlon of all transactions and projects. In addltlon, stringent procedure5 are in place to ensure the health and safety of staff, volunteers and participants on all activities crganised by the Unlon. All other types of rlsk have speclflc mitigation activltles that are delegated to senior and opèratlonal managers of the Urhion. OBJECTIVES AND ACTIVITIES, ACHIEVEMENTS ANO PERFORMANCE The Union currently oper4te5 a three year strategic cycle- 23124 was year one of the 23-26 Strategy as developed. wlth student consultation, In 22123 Our VIOn, Valugs and Guldlng Prln¢lples: Iupdated Aprll 2023 wlth Student c¢insultatlonl Vlslon: e have a positive Impact with every Portsmouth student-. students are heard. students ore empowered, studenis thrlve". Our Values: A Unltjn you can count on A Union led by stvdellts A Union for every student A Union that makes a difference Guldlng Prlnclple5: l. Students Democratically gulde us 11. Equity of Opportunityfor students 111. Our independent status Is paramount IV. Partnerships strengthen our work V. RÈlèvant and resilient for current and future students Vl. We flght for students rights
The UnFver5ity of Portsmouth'$ Student Unlon Report of the Trustees For the Year Ended 31 ju 2024 oBJEIVEs AND ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE (continued) Our Constltuiional Objects: (as defined In our Artl¢le of Associatlonl The Union Is committed to the fulfilment of its charitable objects for the publit benefit through the advancement of education of Students at the University of Portsmouth for the publlc benefit by.. l. promotlng the interests and welfare of Students at the University of Portsrnoijth during thelr course of study and representing4 SUPPOrting and adv15in8 Students,. being the recognised representatlve channel between Students and rhe Unlvèrsity of Portsmouth and any other extemal bodles: and 2. providing 5tJcial, cultural. sporting and recreational actlwtie5 and forums for discussions and debate for the personal dÈvelopment of its Students. These are supplemented by the further object of.. 'helping members to develot) their own charitable èctlvltie5 a5 actNe partlclpants In tlvll society., These objects are wholly cgn515tent with the Union's Constitutional objects. How we deliver our ObJetts: In pursuit of these aims for the public beneflt, the Union has e5tabli5hed departments and servlces for use by its member5 and works with the Univer5Ity and other organlsatlons on behalf of stLTrdents. The Union ensures dtverslty of its membershlp Is recognisÈd by irrplementlng activity for and monltorln8 its particlpation from all sectlons of the 5tsJdent community and by electin8 and supportlng students as champions of Ilberation campaigns. The Union Tepresent5 Students of the University on relevant local, natlonal and internatlonal issue5 by maintaining a high proportion of student reprèsentatives- over 1200- but this 15 to be reviewed in 24125 to increase the quallty of representation over the volume ot rÈprÈsentatives'. ¢ S Elerted Officers (formerly known as Sabbs - full time 0 20 student Council members- academlc, liberation and student experience rèp5 0 1.050 Course reps and 5 Faculty Reps 0 15 Unlon Led representative grwp leads - including PGM Ambassadors & Group Exec Student representatTrves are prèsent on all policy and strategy making bodies in UPSLI and across the formal governance strurture in the University. In Summer 2024, the collaboration and commitments for student invglvement through Universlty development and decision making was fDrmalised in a reco8nised Partnership AgrèÉmÈnt. When revlewing thè Union's objertives and planning the Unlon's attivities, the Unign give5 due con5ideratlon to thè Charity Commi55ion'5 general and relevant supplementsry guidance on public benefit.
The Unl¥ersity of Portsmouth Student's Unlon Report of the Trustees Forthe Year Ended 31 July 2024 OBJEcllvES AND A1vITIES, ACHIEVEMENTS AND PERFORMANCE IContlnued} Our Alms and Outcome$ 2023124: In year one of our 23-26 strategy the KPIS and aims were set and agreed by Board from benchmarks established as part of the strategic development- As an orginlsatlDn upsu 202¥23 benchmark 8y 2026 recommendatlons Question Measured via 2023124 The students, union effectively represents students, academic interests I would recommend my Student's Unlon Representation 69.72%- 103rd 70.97%- 97th Remain in Score quartile 2 NSS Q26 Net Promoter Score Annual Survey -2.98 -16.35 -iOtoO The Student's Union has had a p051tive impact on my time at University Vision Annual Surve¥ 52.(XJ% 72.80% How rnuch do you agree that UPSU 15 a Union you can count on How much do you agree that UPSU Is a Union led by student5 How much do you agree that UPSU is a Union for every student How mLrch do you agree that UPSU is a Unlon that makes a difference Annual survey 60.30% 83.50% No lower than benchmark & monitor over time 35 they are new metrlcs Annual Survey 42.00% 91.30% Values zEa Annual Survey 69.00% 83.30% Annual SuTvey 59.70% 79.00% The full Smpact port for the year 23124 can be found at https'.//docs.google.comlpresentation/dlliAlhZhrUBgDbb- GIPiFnxrae8iYVLtskrCUUcv502Vw/edit#slide-id.p Due to the financial challenge5 and resultant restructuie that took place between November 23 and May 24, the Union focussed its resources on core actlvity and the completion of the Student Outcome5 ProJect. Informed by student dats, annual priorities were set as part of the Strategy development Ilnternational students. Student Leaders. EDI, Cost of Livin& Climate, Digital and Wellbeing) Our Functions all have annual plans to deliver objectives line with the strategy- there are plans for Advice. Representation. Developmen¢ Projects, Marketin& Insights. Central Services and the Busine55 A detailed annual operational plan with supporting operational aims and KPIS in line with the delivery of the Unions strategic objectives can be obtained by request by emailing hello@upsu.net
The Unsverslty of portsm0h Student's Unlon Report of the Trustees For the Year Ended 31 July 2024 Operational Otrtcomes 23124: l. To achievè the overall budget for the union for 2023124 A. Achieved wlth a deflclt of E71,435 against a deficit of £76,481 on the overall budget. 2. To achieve the budget for PSIJT- trading cornpany- for 20231Z4 A. Not achleved with a 5urplu5 of £79,429 agalnst a budgeted surplus of £140,992 2. To maintain a S year forward flnoncial plan In-line with Future Union strateglc alms.. A. Due to the uncertainty of future Block Grant increases, the 5 year Financial plan has been updated to reflect the University position. In antlclpatlon of funding di5CU55ion5 Wlth the University in earfy 2025 the forward plan ha5 assumed a freeze in block grant and deficit budgets sub5idised by reserves in excess of reservès policy levels for thÈ next two years ending in 25n6 and circa £150k deflclt for 26/27. 3. Business as usual- qu8lity outcomes for Uop students A. Of the KP15 across a range of representative, welfare and development objectives for the organlsatlon.. . 75% Succe55 or. exceeded li. 25% Not met ol removed VOLLINTEER CONTRIBUTtON In achieving thE objectlVe5 above there has been a slgnificant contribLttion from ThÈ Unltsn's studÈnt volunteers. ThÈ Union has approximately 7,IX)O Unique Society members that are supported to f3fjilit4te and participate in student activities. In addition to this we had approximately 800 Course Reps, 5 Faculty Reps and 12 Student Councll membeis. There were 700 commlttee members for student groups* collectively volurbteerlng ovef 22.400 hours across thÈ year. This èttlmatlon Is based on anecdotal dlscu55ion5 wlth commltteè members at our'Groups DrorFIn', where most agreed that they avera8ed around an hour of admin per weok of the academ1¢ year. Our faculty p5 recorded roughly 300 hours of volunteeringi course reps recorded 30,000 hours of volunteer time and student council mèmbers around 200 hours. FINANCIAL REVIEW The group's gr05s income from all sources totallÈd £1,849,63812023'. £1,991.9821. Core expenditure was EI,798,65712023..£1,843,5971 plus a further mf)vement in Pension deflcit liability of loss of £126,501 due to an increase In inflotion and ValuatIon ¢f the pension12023'. £347,036) giving a 2024 total of £1,716.54412023: £1,724,263) and, other than the pension movernen¢ was broadly within the stated budget wlth the followlng exception5'. Reduction of £63.4k in UOP fundln8 from the second year of Student Outcomes Project due to UOP going through a reset process Decrease In management charge income of £27.Ik due to recruitment gaps reduction in operatin8 costs. Decrease in PSUT income of £60.2k of which £SOk had been already reported and agreed at the Board of Directors due to unrealised targets in QI. A new target for Retail of £64.7k was not achIed. The data idÈntified the same number of customers but lower value pÈr transartion (total under budget C)f £16.8kl. Partnerships had been reduced by £65k due to nighi time economy partner and inhouse sales to £154.6k achieving only £145.2k due to loss of Graduation opportunlty due to UOP model of inviting clients onsltè for zero cost (total under budget of £74.5kl both offset by and undErspend on expense5 of £31.Ik £126.7k underspend in Salaries due to ¢ruItMent gaps and reset in year, redundancies and assoclated staff churn E22.4k overspend on casual stsff additional shifts to cover recruitment gaps
The Unlverslty of Portsmouth Student's Unlon Report of the Trustees Forthe Year Ended 31 ju 2024 FINANCIAi REVIEW Icontlnuedl E28.9k underspend on Operating costs made up from £15.8k In central costs mainly due to depreciation, prlnting reduction. Irrècoverable VAT Teduction, £16.Ik in Finance mainly due to not implementing the onboarding 5VStem. pause on a governance rèvlew as one was Completed in the prevlou5 year and additional interest on bank accounts, offset by £3.6k overspend gn HR mainly due to recruitment char8e5 The Union budgeted an overall deficlt In 23124 approved by Trustee5 of £76,481. This Ove11 budget Includes payment of the in year pension deticit contribution. A deficit of £71,435 was achieved. When comparing agalnst the core budget only. which excludes the pension contribution, the union achleved a surplus of £64,123 compared to è budgeted Surplus of £57,739. Thls positlve outcome Is credit to the staff teams who responded at pace to make c95t 5aving5 to meet in year revised budgets and efficiencie5 whilst protectinB the quality of service to our student members, all In a year of slgnificant disruption and change due to the unplanned restTUCture. The Union has continued to benefit from the recognltlon and support of the University. and for 23124 thè Unlon reiVed £1,267,551 in block grant. The Union last revlewed its resee5 requlrements durlng 22123 assesslng the required amount of charltsble funds allocated to Reserves and Development funds. The updated reserves policy was slgned off at Finance & Risk Committee in October 2022- the reserves and development funds policy Is as follows.. e calculated minimum reserves Is £246k. An additional balance of reservès are deslEnated to be utlllsod forthÈ dèvelopment fund. This amount will be determined periodically by the board/committee. The amount avallable will not exceed the diffetsnce between the free reserves and thÈ minimum reserves. The deIttPMent fund is avallable ft>r longer term Unltsn development or to provide speciflc protection against the pensions related risks in future years" Thè Union's free reseNes stood at £574.11812023.. £648.2841 at the year-end which meets the Union's desired reserve levels. Reserves have been calculated as *ollows'. Total reserves Le.. Restrictèd reserves Add.. Penslon deficit Le55.. Fixed assets 1,079,595 62,831 1,716,544 574 118 The Union's accounts show an updated provision for the future liabilities due to the Students, Union Superannuation Scheme basèd on the 30 lunÈ 2023 valuation. Thè valuatitsn of the liabilities show the amount avallable to pay pension beneflts In the future has de¢llned when compared to its fvture Ilabilities. The Unlon in corrmon with other participating student unions has to pay its share of the Intre3sed funding 5hortFall and is requlred to pay inirea5ed contributions based on previous contribution5 payable and the term has bèen extended. A separate SerVe has been created in the accounts due to the long-term nature of the liability. The Union acts as trustee for restricted fvnds raised by the students, rnany Clubs and Socleties amountin8 to income of £20.53012023= £25,799) and expenditure of £29,60312023: £22,6801 in addition to the grant- supported fvnds disbursed to them as Shown in the accounts. io
The Unlverslty of Purt5mouth Student'5 Unlon Report of the Trustees Forthe Year Ended 31 July 2024 FINANCIAi REVIEW (Continued) student Groups at the Union raised around £7,000 in actlvlties and fundraisers this year for local and national charitles. The process has changEd to increase development and independence for our groups. we lèt them do thls all Indepet)dently with little input! The Unlon did not make any grants to other oryanlsatlon5 during this or the precedlng year. The Trustees conflrm that the Union has suffltlènt funds to meet all its obli8ation5. The Block Grant for 2024125 ha5 been set at £1,267.554 the Student Outcomes additional funding received for the last two years has now ceased with an in year reduction of £63.Sk of the budgeted £250k. The Union is very grateful forthè Block Grant fundlng and the Investment for the Student Outcomes Project from the Unlversity received over the last two year5. The commercial actlvltles for 2024125, through PSUT, are budgeted at £87,254. FUTURE PLANS Despite a significant reductlon in staffing and re5ource5, the Unlon remalns committed to furthering its charrf(able objèctlve5 through setting stretching targets In delivering eycellent activities, servlces and representatlon to Unlverslty of Portsmouth students. Year two of our Strategic plan dellvery continue5 Wlthin the three theme5: Academlc Suttes5- All studenw aCadeIC outcomes are improved as a result of the work that we do Future Readlness- Student5, futures are made clearer and enhan by the work that we do Soclal Capltsl- Students are supported to find themselves, be themselve5, connett and belong Each theme has a set of commltments Idèntifying the key outcomes that'students will say,. aiming to rètain focus on the positive impart we dellver for students. Strategy and commitments can be found at https-//docs.8oogle.comldocumentld/lFojcfDFtvjNHNRrqMj4XIFdGLMweaNaK7squPyM/edIt?ta-t.o The Plans, Objectlves and KPIS for 24125 can be found at https-/ldoc5.google.comlsprÈ3dsheets/d/lTbq5UBDHOHuyoqeZRpFNuSYgpEWNYqbcudh3dlFSFGwledlt?gld=49 378(K142#gid=493780042 Our annual priorities for 202415, as informed by student data are- Student Mental Health Cost of Living Belunging and Communlty Our enabling stratÈglÉs remain as: Climate and Sustainablllty •EDI People . Spa5 • Tradln8 Finance li
The UnlversSty of Portsmouth Student's Unlon Report of the Trustees For the Year Ended 31 July 2024 FUTURE PLANS Ictsntinuedl Additlonal areas of focus for 24125 include: Reforming the academic rep structure- a pilot commences September 2024 with the alm to Smplement a se¢ttsr leadlng framework for Sept 25 The completlon of the bulldSng move into temporary accommodation for two year5- Nov 24 The socialising and optimising of the new Partnership Agreernent across faculties and services. supported by our DVC Education as the Uop lead partner in this prolect, we are very grateful for her support In developing and Implementing thls long needed partnership framework- from Oct 24 University StrategyAlrgnrnent- as the Universlty revlses Its strategy, the UnSon wlll seek opportunities to support and enhante the aims and objectives of the Unlversity for the benefit of students- Oct 24 onward5 12
The Unlverslty of Portsmouth Studenvs Union Report of the Tlustees For the Year Ended 31 July 2024 Trusteorf respon5itiilities in relation tt> the flnanclal statements The trustees Iwho are also the direttors of The Universlty of Portsmouth Student's Unlon IA Company Limlted by Guaranteel for the purposes of Eofflpany lawl are re5pon5ible for preparing the Report of the TrLe5 and thè flnan¢lal statements in accordance with applicable law and Unlted Kingdom Accounting Stsndards Iunited Kingdom Generally Accepted Accountln8 Practice). Company law rpquire5 the tru5tee5 to prepare flnancial statements for each flnancial year which give a true and fair view of the state of affalrs of the charitable company and of the Sncoming resovrces and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees a required to.. • select sultablÈ accounting policies and then appfy them conslstenlly- observe the methods and prir7ciples In the Charity SORP; make Judgements and estimates that are reasonable and prudent,. prepare the financial statements on the 80ing concern basis unless It Is Inappropriate to presume that the charltable company will continue in business. Thè trustees are responsible for keeplng proper accountin8 records whlch disc105e with reasonable accuracy at any tlme the financial position of the charitable company and to enable them to ensure that the financlal statetnent5 wrnply with the Companles Act 2006. They are also responslble for sèfeguarding the a55ets of the charitable company and hen for taking reasonable step5 for the prevention and detedion Of fraud and other irregularities. In so far a5 the trustees are aware.. • the is no relevant audit infomiatlon of which the charitable company's auditors are unaware- and the trustees have taken all steps that they ought to have takerh tty make themselves aware of any relevant audit information and to establish that the auditors are aware of that Appolntment of Auditor5 In accordance with the unlon's financial procedures a formal tender process was undertaken in April 2022 to appoint auditors for121122} the Auditors were appointed by the Board of TrLtstÉès on 28th June 2022 and the next tender process wlll takè place in April 2026. ThSs repDrt ha5 been prepared having taken advantage of the small tompanies, exemption in the Companies Act 2006 and was approved by the 8oard and slgned on Its behalf. Approved by order of the board of trustees on 23rd October 2024 and signed on its behalf by.. Anwar lawula IDemocrary & Campaigns Officer, Company Secretary) 13
R*port of the Independent Audltors to the Mernbers of The UTrlversity of Portsmouth Student's Union For the Year Ended 31 July 2024 We have audited the financial Statements of The University of Portsmouth Student's Union (the 'charitable company'l for the year ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolldated Cash Flow Statement and notes to the flnancial statements, including a summary of Significant accounting policies. The financial reporting framework that has been applled in their preparation is applicable law and United Klngdom Accounting Standards (United Kingdom Generally Accepted Accountlng Practlcel. Oplnion on financial stalements In our opinion the flnanclal statements: give a true and fair view of the state of the group's and the tharitable company's affairs as at 31 July 2023 and of the groups iDcomirbg resource5 and application of resources. Including its income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practlce.. and have been prepared in accordance wlth the requlrements of the Companles Act 2006. Basls for oplnlon We conducted our audlt In accordance wlth International standards on Auditing IUKI IISAS IUKII and applltable law. Our responsibillties under those standards are further described in the Auditors responsibilities for the audit of the financial ststements section of our report. We are independent of the charitable company in accordance with the ethical requlrements that are relevant to our audlt of the financial statements in the UK. including the FRC'5 Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatin8 to 8olnE concern We have nothing to report in respect of the following rnatters in relation to which the1SAs IUKI requlre us to report to you where.. the trustees, use of the going concern basis of accounting in the preparation of the flnancial statements is not appropriate- or • the trustees have not dlsclosed in the financial statements any identified material uncertsinties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financi315tatements are authorised for issue. Oplnlon on other matters prescribed by the Companies Act 2006 In our opinion, basod on the work undertaken in the course of the audit- the information glven in the Report of the Trustees for the flnancial year for which the flnancial statements are prepared is consistent wlth the financial statements: and the Report of the Trustees has been prePad in accordance with applicable legal requirements. 14
Report of the Independent Audltors to the Member5 of The University of Portsmouth Student'5 Unlon For the Year Ended 31 July 2024 Other Infomiation The trustees are responslble for the other information. The other informatlDn comprises the Information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connettion with our audit of the financial statements, our responslbility is to read the other information and, in doing so, consider whether the other infomiation 15 materially inconsistent with the financial statements or our knowledge obtained in the audit or otheise appears to be materially mi55tated. If, based on the WDrk we have performed, we conclude that there is a material misstatement of thi5 Other information, we are required to report that fact. We have nothing to report in thi5 regard. Matters on whlch we are requlred to report by exceptlon In the Irght of the knowledge and understanding of the charltable company and it5 environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the followlng matters where the Companies Art 2005 requlres us to report to you if, in our opinion- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accountlng records and returns; or • certain disclosures of trustees, remuneratlon specified by law are not made; or we have not received all the information and explanations we require for our audit- or the trustees were not entitled to take advantage of the small companies exemption frorn the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responslbllities of trustee$ A5 explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responslble for the preparation of the financial Statements and for being satisfied that they give a true and fair view. and for such internal control a5 the tru5tee5 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are re5pon5ible for asse55ing the charitable company's ability to continue as a going concern, di5closingi as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company orto cease operations, or have no realistlc alternative but to do so. 15
Report of the Independent Audltors to the Members of The University of Portsmouth Student's Unlon For the Year Ended 31 July 2024 Our respon51bllltie5 for the audlt of the financlal statements. Our oblectives are to obtain reasonable assurance about whether the financlal statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit condutted in accordance with ISAS IUKI will always detect a material misstatement when It exlsts. Mi55tatements can arise from frdud 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 statement5. Irregularities, including fraud, ore instances of non-compliance with laws and regulations. We deslgn prOdureS in line with our responsibilities, outlined above, to detect material misstatements In respect of irregularities. including fraud. The extent to whlch our procedures are capable of detecting irregularities, including fraud is detailed below.. From discussion with management and those charged with governance infomiatlon about the entity 15 documented to assess the activity within the organisation. We discuss managemenvs assessment of risk in respect of irregularities. fraud and going concern. Based on these discussion5 and our own a55e55ments we determined that the key risk area5 were income recognition in respect of cut off issues and management override concerning the size of the organisation. We set financial statement materiality level based on the level of income. As a not for profit organisatlon raising income is its primary focus which is why income was used to determine the level of materiallty. Our overall assessment of risk was used io determine performance materiality at an appropriate level. Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventattve measure against fraud and error which appear to be operating as documented. Substantive testins tested a sample of the population, representative of the population, to identify errors. The testing did not Identify any material misststements in areas tested. Audit substantive tests concluded no material errors over the key risk area5 Of income recognitlon and management override. The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation. Management assessed there 15 no going concern risk. The audit undertook a review of budgets, management accounts and the review of board mlnutes and came to the same concluslon as management. 16
Report of the Independent Auditors to the Members of The Univer51ty of Portsmouth Student's Union For the Year Ended 31 July 2024 Use of our report This report Is made solely to the eharltable company's members, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit wotrk has been undertaken so that we might state to the charltable 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 the charitable company's members as a body. for our audit worl for this report, or for the opinions we have formed. Paul Underwood (Senior Statutory Auditorl for and on behalf of Morris Crocker knmited Chartered Accountants Statutory Auditors Station House North Street Havant Hampshire P09 IQU Date.. 17
The Unlverslty of Portsmouth Student's Unlon Consolldated Statement of Flnan¢lal Actlvltles Forth• ar ended 31 July 2024 Unrestrlcted funds Re5trl£ted fvnd5 Total 2024 Total 2023 Note5 INCOME AND ENDOWMENTS FROM Donations and le8acles Other trading activities Income from Investments Charitable actlvities Other incorne 1.535.780 260,842 3.839 16,833 11,814 1,535,780 260,842 3.839 37,363 11.814 1.649,156 289.302 1,785 43,990 7,749 20,530 Total Income 1,829,108 20,510 1,849.638 1.991.982 EXPENDITURE ON Ralsing funds 69,605 69,605 75,750 Charltable actlvltie5 1,699,449 29,603 1.729.052 1.757.847 Total 1,769,054 29,603 1,798.657 1,843.597 Net Inc•mell•xp•ndre) 60,054 19.073) 50,981 148,385 Other recogni5ed galnslllosses) Actuarial 8ains/llossesl on defined benefit 5cheme5 1126.5011 1126.5011 1347,0361 Net movements In funds {66.4471 19,0731 175,5201 1198.6511 Reconciliailon of fund5 Total funds brou8ht forward 11,075,979) 71,904 11.004,0751 1805.4241 Total fvnds ¢arrled fonvard 11,142,4261 62.831 11,079.5951 11.004.0751 All incorning re50ur¢es and resour$ expended a derived from continuing actlvSties. 18
The Unfverslty of Portsrnouth Studènt's Unlon Consolldated Balance Sheet Forthe year ended 31 ju 2024 fjfQllP 20Z4 fjroup 2023 £00 tharlty 2024 £'ooo Charlty 2023 £'ooo Note5 Flxed a55ets Tangible assets Investments 14 Total flxed assets Current a5set5 Stocks Debtors Cash at bank and in hand 46.971 27,360 755.352 63.426 48,277 732.774 16 90.272 721.677 132.391 693,659 Total current assets 829,684 844,477 811,949 826,050 Uabifitles Creditors falling due within one year 17 1192.7351 1124,2891 1175.0011 1105.8631 Net current assetsllllabllltlesl 636.949 720.188 636.948 720,187 Total a$5ets le55 ¢urrent liabllltle5 636,949 720,188 636.949 720,188 Pr¢Slon$ for IlabltIeS 22 11,716,544) 11,724,263) 11,716,544) 11,724,2631 Net1114bllltle5l/assetS 11.079.595) 11.004,0751 11.079.5951 11,004,075) Funds Pension deficit General fund5 11,716,544) 574.118 11,724,263) 648,284 11,716.5441 11,724.2631 574,118 S48.284 Unrestricted fund5 20 11.142.426) {1.075.9791 11,142,426) 11,075,979) Rèstricted funds 62,831 71.904 62.831 71,904 Total charlty funds 11,079,595) 11,C¥)4,0751 11,079,595) 11,004,075) These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Att 2006 r¢latin8 to Charitable small companies. The financlal statements were approved by the Board of Trustees on 23rd October 2024 and were slgn•d on its behalf by.. Anwarlawula IDemocrary & Campaigns Officer, Cornpany Secretary) The notes form part of these financi31 statements 19
The Univèrsity of Portsmouth Student's Union statement of Cash FI0ry and Consolldated Statement of Cash Flows for the year endlnB 31 July 2024 Group 2024 Group 2023 Charlty 2024 Charity 2023 Notes Net Income for the reportlns perlod (as per the statement of flnanclal actlvltle51 Cash generated from operations 18,740 159,4221 24,180 180.5531 Net cash provlded by {used In) operatln8 actlvltles 18.740 159,4221 24,180 180,5531 Cash flows from investing ac11e9 Interest income 3,839 1,785 3,839 1,785 Purchase of tangible fixed assets Cash provlded by (used In) Investlng actlvltles 3,839 1,785 3.839 1,785 Change In cash and cash equlvalents in the reporting period 22,578 157,6371 28,018 178,7681 Cash and cash equivalents at the beginning of the reporting period 732,774 790AII 693,659 772.427 Total cash at the end of the year 755,352 732.774 721,677 693.659 20
The Unlverslty of Portsmouth Student's Union Notes to the C05h Flow Statement for the year ended 31 July 2024 11 Reconcillatlon of net 5rKome to net cash flow from operatln8 artivitie5 Group 2024 Group 2023 Charfty 2024 a)arity 2023 Net income for the reporting perlod (a$ per the statement of flnan¢ial artivitie5) Adjustments for: DepreciatSon char8èS Interest income Flnance cost of pension deficit Penslon deficit Tepayments Decrease/lincreasel in stocks Ilncreasel/decrea5e in debtors Increaselldecreasel in creditors 175,5201 1198,6511 175.5201 1198.6511 ,000 12,IXJO 13,8391 11,7851 13.8391 11,7851 126.501 347,036 126,501 347,036 1134.2201 1127,824) 1134,2201 1127,8241 16,455 115.7991 20,917 7,978 68,446 182,3771 42.120 69,138 123,8271 187,5021 Net ¢a5h provided by lused In) aperatlng artlvltles 18,740 159.4221 24.180 (80,5531 21 Analysis of changes in net debt Group At 1.4.Z3 Cash flow At 31.3.24 Net Cash Cash at bank and In hand 732.774 22,578 755,352 732,774 22,578 755.352 Compinv At 1.4.23 Qsh flow At 31.3.24 Net cash Cash at bank and In hand 693,659 28.018 721,677 693,659 28,018 721,677 21
The Unlversity of Portsmouih Student's Union Notes to the Flnanclal Statements For the year ended 31 July 2024 Accounting Pollcles Basls of preparatlon The finantlal statements of the charitable companyi which is a public benefit entity under FRS 102, have been prepared in accordance wlth the Charities SORP IFRS 102) 'Accounting and Reporting by Charities- Statement of Recommended Prartice applicable to tharities preparing their accounts in accordance with thè Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective I january 20151,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial Statements have been prepared under the historical cost convention with the exception of investments which are included at market value. The consolidated financial statements have been prepared on a going concern basls as the trustees believe that no rnaterial uncertainties exist. The trustees have considered the level of funds held and the experted level Df income and expenditure for the 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves tor the charity. The Charitable company do@s participate in a define(I benefit scheme and at the date of this report the liability on this scheme was £1,716,544 which is repayable by annual instalments. This liability is currently ring-fend in the unrestricted reserve5. The trustees have consldered thSs factor In their assessment and they do not cDnslder there to be any slgnificant concern in being able to contlnue a5 a going concern. Group financial statements The financi31 statements consolidate the results of the charity and its wholly owned subsldlary Portsmouth Students. Union Trading on a Ilne-by-line basis. A separate Statement of Financial Artivities and Income and Expenditure Account for the charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 21x16. Income All income 15 recognised In the Statement of Financlal Actlvities once the charlty has entitlement to the funds, It Is probable that the income will be received and the ?mount can be measured reliably. Expendlture Liabilities are recognlsed as expenditure as soon as there is a legal or construrtive obligation committing the charity to that expenditure, it is probable that a transfer of economlc benefits will be required in settlement and the amount of the obligation can be measured rellably. Expenditure is accounted for on an accruals basis and has been classified under headln8S that aggregate all cost related to the category. Support cost alliKation Support costs are those that as51St the work of the charity but do not dlrectly represent charltable activities and include office costs, governance and administrative payrtsll costs. They are Incurred directly in support of expenditure on the objects of the charity and include project management. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitable activities on a basis con515tent with the use of resources. 22
The Univèrslty of Portsmouth Student's Unlon Notes t¢ the FSnanclal Statements Forthe year ended 31 July 2024 Auounting Pollcles contlnued Donated s•Nlces and facllltles Thè University of Portsmouth provldes the thartty with office space and sports facilitles at nci charge. As required by Charltle5 SORP IFRS 1021, the donation of these farilities is included a5 an in£oming resource within note 2 and a matching OUtgo5ng resource wiihln the 5tztement of financial actSvltie5 at the tru5tees' estimatt of their valuè to thè tharity. Employee benefits When employee5 have rendèred serviceto tho charity. short-term employee benefits to whlch the employees are entitled are recognised at the undiscounted amount experted to be paid in exchange for that service. PensloEJ Costs and other post-retlrem?nt benefits The charitable cornpany operate5 a defined contrlbutlon penslon scheme. Contrlbvtions payable to the charltable company's penslon scheme are charged to the Statement of Financial Activities in the peritsd to which they relate. Unlverslty of Portsmouth Students, Unlon partlclpates In the Students. Union Superannuation Scherne1SUSSI, a defined benefit scheme which is exterTha1 funded and contrarted OLrt of State Second Pension. The fund is valued at least every three year5 by a professionally qualified independent actuary wych the rates of contribution payable belng determlned by the pension scheme tfustees on advlce of the actuary. The scheme operates as a pooled arrangement, with contrlbutlons paid at a centrally agreed rate. As a consequence. no Share of the underlying assets and Ilabilities can be directly attributed to University of Portgmouth Student's Union. Under the terrns of FRS 102, the discounted present value of future cash flows under a deflclt funding arrdngernEnt is included as a Ilabillty in the52 accounts and the change in that valuation from year to year is taken to the statement of flnancial actlvitles. Wlth effett from 30 September 2011 the scheme was closed to future actrual. Payments tri the SUSS contlnued afterthe closure of the scheme In the form of deffcit funding and levies. Tangible fixed 359et$ Deptiation 15 provided at the following annual rates in order to write off each asset over its estimated useful Ilfe. Mc*tor vehlcles Fixtures and flttlngs AU Equipment 25% on cost IO% and 2CPA on cost 33% on cost Flxed asset investments Fixed asset investments comprise the entirè share Capital of the charity's subsidiary trading company, Portsmouth Students, Union Trading rnited. Th• investment is valued at cost on the basi5 there 15 no avallable falr value for the share capltal. Flnancial Instruments The company only enters Into baslc fln2nclal Instruments transactions that result in the recognition of financial assets and liabilities like trnde and other accounts receivable and payable, loans from banks and other third partie5 and loans to related parties and investrnents in non-puttable ordinary share5. 23
The UnlveTSity of Portsmouth Student's Unlon Notes to the Flnanclal Statèments- Conllnued For the year ended 31 July 2024 l Accountlng Polkles. contlNed Trade ?nd other debtor5 Short term debtors are measured at tran5artion prlce. léss any Impalrment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost U51ng the effectTrre interest method, le55 any impalrment. Cash and cash e4U4valènts Cash and cash equiwdlent5 Comprise cash at bank and on hand, deposits wtth banks and other short-term highly liquld Investmènts and bank overdrdfts. In the balance shee( bank overdrafts are shown wlthln borrowlng5 or current liabilities. Trnde and other credttors Short term trade creditors are measured at the tran5aCtlon prlce. Other financial liabllitles, including bank loan5, are measured initially at farr value, net ol transartion costs, and afe measured subsequently at amorti5ed c05t using the effective interest method. Stocks Stocks are valued at the lower of cost and net reallsable value, after making due allowance for obsolete and slow MonE Items. TaKatlDn The charity is exempt from corporatlon tax gn it5 charitable actlvities. The company Is subject to tax which recognised at the amotjnt of tax payable using the tsx rate5 and laws that have been enacted of Substantively enacted by the balance Sheet date. Fund a£utIn Unrestricted fund5 can be used in accordance with the charitable objective5 at the discretion of the trustees. Rèstrided funds can only be used for particular restricted purposes wlthin the objects of the tharity. Restrictions arise when specffied by the donor or when funds are raised for particular restrirted purposes. Further explanation of the nature and purpose of each fund 15 included in the notes to the financial statements. Donations and leg4¢ies 2024 2023 Block grant received Addkional 8rants recewed Donated Facilities 1,267,560 186.620 81.600 1.297,556 270.000 81.600 1,535.780 1,649.156 24
The University of Portsmouth student's Union Notes to the Flnanrlal Statements- Contlnued F¢r the year ended 31 July 2024 Othertradlng actlvltles Z024 2023 Income from tradlng subsldlary Commercial partnershlps Retsll Income Other income 145.260 115,582 164,971 123.531 800 260,842 289.302 Income from investments 2024 2023 Bank deposlt Interest 3.839 1,785 3,839 1,785 Income from charitablè actlvltles 2024 2023 Development- Group Income 37,363 43,990 37,363 43,990 Other Income 2024 2023 Events Postage Other 9,702 1,765 347 5.8QO 1.244 705 11,814 7.749 7 Charitable a¢tivitie5 Costs Support sts (note 8) Dlre¢t Costs Totals Devèlopment Representation Welfare Other charitable artfvitie5 74.283 190,862 24,144 464,257 473,631 464,257 37,618 538.540 664,493 488,401 37,618 289,289 1.439,763 1.729,052 25
The University of Portsmouth Student's Union Notes to the Financlal Ststements- Conttnued For the year ended 31 Juty 2024 Support costs Central Operatlons Go¥emance Costs Totsls Development Representstion Welfare Other charitable attivities 463.899 473.273 463.899 9.983 358 358 358 464,257 473,631 464,257 37,618 27,635 1,411,054 28,709 1,439,763 Support costs have been apportloned on a basls that Is consistent wlth use of resources. Support costs. included in the above. are as follows.. Central Operatlons Z024 Total actlvk185 2023 Total actlvltie5 Salaries and training Membership engagement Central admin and overheads Irrecoverable VAT Central depreciation 993,650 S2,194 359,156 6.054 1,012,947 42,825 366,617 3,762 12.000 1.411.054 1.438,151 Governance costs 2024 Totsl activitles 2023 Total a¢tivities Audit Central Admin Management attounts Trustee Expense5 11,607 5.588 10,500 1,014 12,350 6,465 10,682 321 28,709 29.818 26
The University of Portsmouth Student'5 Unlon Notes to the Flnanclal Statements For the year ended 31 July 2024 9 Raislngfund5 expendlture 2024 2023 Other activities 69,605 75,750 10 Net Incomellexpendlture) Net income/lexpenditurel 15 Stated after charginyjlcreditingl: 2024 2023 Audltors, remuneration- current audttors audit fees Depreciation- owned assets 11,607 12,350 12,OlXI 11,607 24,350 11 Staff costs 2024 2023 Wages and salaries Social security tosts other pension costs 1.236,300 74,219 26,168 1,210.890 84.453 25.190 1,336,687 1,320,533 The average monthly number of employees during the year for the group was as follows.. 2024 99 2023 ioi There average number of employee5 Wlth emoluments (excludin8 employer pension contributions and employer National Insurancè contributions) above £60,CKJO in this or the preceding year is a5 follows.. 2024 2023 £70,001- £80.000 The key personnel management of The University Portsmouth Student's Union are considered to be the CEO, Deputy CEO, Director of Student Engagement and the Head of Central Services. The total remuneration paid in the year ended 31 July 2024 amounted to £220,60512023: £185,9541. 27
The Unlvet%lty of Portsmouth Student's Unlon Notes to the Flnandal Stattmertts For the year ended 31 July 2024 12 Flnanclal PÈrFormancé of the charlty Thè consolldated statement of financial activities Includes the results of the charit¢5 wholly owned subsidiary Portsmouth Students, Unlon Trading Umited. The summary financ5al perforrnar of the charity alone Is.. 2023 Turnovef Expendlture on charitable actwities Other reco8nised gains/llossesl Net Income 1,780,033 1,916,232 11,729,052) 11,767,847) 1126.5011 347.0361 175,5201 {198,6511 Total funds broughtforward 11,004,075) 1805,4241 Totsl fvnds carried forward 11,079,595) 11,004,075) Represented by: Unre5trKted funds General Funds Penslon Deflelt Restricted funds 574.118 648,284 11.716.544) 11.724.263) 62,831 71,904 11.079.5951 11.004.075) 13 Flnandal Performan¢e of the subsldlary Portsmouth Stud&nts' Union Trading Company Limlted is a wholly owned trading 5ubsidlary Incorporated In the United Kingdom (company number 063203821. A summary of the trading resuhs Is shown below. The summary financial performance ofthe sub5idlary aSone is.. 2024 2023 Turnover Cost of sales and administration costs Management charges 260,842 169.2241 1112,1891 79,429 289.302 175.3691 1139,5531 74,380 Glft ald payment to UPSU 179.4291 174,3801 Net profit Retained in subsidiary The assets and liabilities of the Portsmouth Students, Union Tradlng Company timited w?re: 2024 2023 Totsl assets 107,497 1107,4961 123,226 1123,2251 Total netassets AggregatE share capital and resetves 28
The Unlver5fty of Portsmouth Student's Unfon Notes to the Flnandal Statement5 For the year ended 31 July Z024 14 TaD8ible flxed a$5ets- Charity and group FIMture5 & ffttlng5 Total Cost At I Au8USt 2023 Additions Disp05315 215,248 215,248 At 31 July 2024 215,248 215.248 Depreclatlon At I Au8USt 2023 Charge for year On disposals 215.248 215.248 At 31 July 2024 215.248 215.248 N•t IM>tskvalue At 31 AlY 2024 At 31 July 2023 15 Stock5 2024 2023 Stocks 46,971 63,426 16 Debtors Group 2024 Group 2023 Charlty 2024 Charitv 2023 Trade debtors Prepayments and accrued incorne Other debtors Intèrtornpany 27.360 21.623 26,654 SID 938 26,654 89,762 104,799 27.360 48.277 90,272 132.391 29
The Unlverslty of Portsmouth Student'5 Unlon Note5 to the Financial Statements For the year ended 31 July 2024 17 Credltors: Amounts FallNw due wlthln one year Group 2024 Group 202a Charlty 2024 Charltv 2023 Trade creditors Social security and other taxes Accruals and deferred inwme Other creditors VAT payable 8,460 2,048 19,137 149,169 3.106 1.542 4,703 19.137 159.864 3.287 8,400 192,735 107,610 5.664 2,555 95.572 4,472 1,116 124,289 175,001 105,863 18 Deferred Income Deferred income relates to additional block grant income received in advance to offset some of the inflation for the 2023124 year. Group 2024 Group Z023 Charlty 20Z4 Charlty Z023 Balance as at l August 2023 Amount released to Incomlng resources Amount deferred in year 50.000 150,0001 50,0 150,0001 63.376 63.376 Balan as at 31 July 2024 63,376 63.376 19 Analysls ol net assets between funds- Group 2024 Total funds 2023 Totsl funds Unrestrlcted Restrlrted fund fund Fixed assets Current assets Current liabllities Penslon deficlt 766,853 1192.7351 11,716,544) 62,831 829.684 844,477 1192,7351 1124,2891 11,716,5441 11,724,263) 11,142.4261 62,831 11,079,595) 11.004,0751 30
Thè Un5verslty of Portsmoyth StudenV$ Llnlon Notes to thè Flnanclal Statemènts For the year endod 31 July2024 20 Movement In funds- Group Net movement In fund5 At 1.8.23 Transfe At 31.7.24 Unrestdcted fvnd5 Pension deficit General funds Total unrestricted fund5 11,724,263) 648.284 {1,075.9791 1126,5011 60,054 166,4471 134.220 134,2201 11.716,5441 574,118 11.142,4261 Rdstrlcied funds Sports and societies Ring fenced funds Total rÉstricted funds 71.146 758 71,904 19.0731 62,073 758 62.831 19.0731 TOTAL FUNDS 11,004,0751 175,5201 11,079.5951 Net movement in funds, included In the above are as follows.. nmIng resources Re50urces A¢tLbarial Ga1rt5 expended I (Losses) Movement n funds UnTestrlGted fund5 Pension dÉficlt Genenl funds 1126,5011 1126.5011 60,054 1,829.108 11,769,054) Re5trlcted funds Sports and socleties Ring fenced funds 20.530 129,6031 19,0731 1,849,638 11,798,657) 1126.5011 175.5201 Comparati¥è for ffiovement In fund5- Group Net movement in funds At 1.8.22 Transfèrs At 31.7.23 Unre5tFicted funds Pen51Dn delicit General funds Total unrestricted funds 11,505,051) 630,842 1874,209) 1347,0361 145,266 1201,7701 127,824 1127,8241 11.724,2631 648,284 (1,075,979) R05trlcted fvnds Sports and societies Ring fenced fund5 Total restrlcted funds 68.027 758 68.785 3,119 71,146 758 71.904 3,119 TOTAL FUND5 1805,4241 1198,6511 11,004,075) 31
The Unlverslty of Portsmouth Student's Unlon Notes to the F5nanclal Statements For the year ¢ndÈd 31 July 2024 20 Comparatlve for movement In funds- Group- contlnu•d Comparative net movement In fvnds. In¢luded In the above are as follow5.. Incomlng resources Resource5 Actuarial Gains expended / ILosse51 Movement In funds Unre5trlrted funds PerTr5ion defirlt General funds 1347,0361 1347.0361 145.266 1.966.183 11,820,917) Rertdrted funds Sport5 and societies Rlng fenced funds 25.799 122,6801 3,119 1,991.982 IL843.5971 1347.0361 1198.6511 21 Pen51on Commitments The charlty opèrates 3 defined contribution scheme. The total contrlbutlons pald Into the scheme by the Unlon in respect of ellglblè employees for the year under miew was £26,16812023.. £25,190). 22 Prow51on for Ilabllltles 2024 2023 Provisions 1,716,544 1,724.263 The union 15 a Particlpatln8 Employer in the Students, Union Superannuation Scheme whlch is a defined beneflt 5chetne whose mErnbership conslsts of employee5 of students, union5 and related bodies throughout the United Kingdom. Benefits in respect of seNice up to 30 SeptèmbÈr 2003 are accrued on a ' final sa13ry" ba51s. wlth benefits in respect of servlce frorn l October 2003 accrulng on a Carèer Average Rèvalued Earnlngs ICAREI basls. Wlth effect frorn 30th September 2011 the Scherne closed to future accrual. Thè most recent Triannual V31uation of the Scheme was carried out as at 30 June 2022 and showed that the market value of the Scheme's assets was £106.7m12019.. £119.1rnl excluding AVC'S and Incurred pensioners with these assets representlng 46%12019.. 46961 of the value of benefits that have accrued to rnernbers. The deficit on an on80in8 fundln8 basis amounted to £136.7m12019.. £140.9ml. 32
The Unl¥er51ty of Portsmouth Studont's Unlon Notes to the Flnancial Ststements For tho yearended 31Juty Z024 22 Provl$lohfpr Ilabllbtles continued The actuarlal valuatlort ot the scheme as at 30 June 2022 revealed ? fund1 shortfall ITechnical Provlslons mlnu5 value of assetsl of £133,645,000. To ellmlnate this funding shortfall, the Trustees and NUS (the Prln¢lpal Employer) have agreed ihat additional contrIbl05 will be pald to the Scheme by the partlclpatlng unlons as ftsllows: £745.671 per month. to be paidtowards the Scheme from l October 2023, In¢reaslnK by 5% at èach Subsequent I October. These amounts include an all¢wan¢e for the expense5 of admlnlstering the Scheme 01 £536,038 per annum fmm l Ottober 2023, incre051ng by 5% at each subsequent l October. The amounts also include zn 811gwance fgr an e¥pen5e reserve of £3,000,000 which is an estlmated of the costs associated with windln8-up the Scheme and the completion of the GMP equalisation exerei5e. These contrlbution5 are payable monthly In arrear5, wlthln 19 day5 of the end of each month. A participatlng unlon may* at thelr d5scrÈtion, pay all or part of the contributlons In advance. Partlcipating unions wlll be glvÈn the option of pawn8 a dlscounted lump sum Instead of thelr monthly contributions between October 2023 and elther5epternber 2026, September 2029 or September 2032. The funding shortfall is expetted to be elimlnated in 13 years 7 months of l Ottober 2023, whlch F5 by l May 2037. Thls expettation is b35ed on the followingas5UrnPtions'. Technlcal Prowslons calculated accordln8 to the method and a5surnptiOn5 Set out In the Statement of FundinB Prthuples- and the return on existing assets and the rÈturn on new ¢ontrlbutions dring the period being ctsnslstent with the calculatlon of the Technical Provislons as at 30 June 2022 but allowing for an initial additional investrTTent return of 0.5% p.3. In year 14, Ilnearty reducingto zero over year S-12. During the year ended 31 July 2024, the Unrverslty of Portsmouth StudÈnts' Unlon madE a deficit contribution whlch amounted to £134.22012023.. £127,8241. At the balance Sheet date the charity had monthly commitments to pay deflcw fundlng contrtbutioThs of £9.145 increasing in line wlth the recovery plan of 5% per annum uniii 31Juty 2033. 2024 202 Provi5ian at start of the period Effect of unwinding discouni and changes in rats Deficit contributlon paid 1.724,263 126,501 1134,2201 1.505.051 347.036 1127,8241 Provision at the end of the perlod Income and eXPendure impart 1,716,544 1.724.263 Effett of unwinding discouRt and changes In rate 126.501 347,036 126,501 347,036 AslPtIonS 31.07.24 3L07.23 per annum % perannum Rate of discount 4.75% 5.10% The dlscount ratÈS Shown above are the equivalent Single discount rates which, when used to discount the future recovery plan contributions dye, would wve the same re5uItS 35 uslng a full M corpor8te bond yleld curve to discount the same recovery plan ¢ontTibutions. 33
The Untverslty of Portsmouth Siudent's Union Notes to the Flnanclal statements For the year ended 31 July 2024 24 Related party transartions The charlty'5 tru5tee5, as detailed on page l. were relmbursed or had expenses pald on their behalf totalling £10,258 {2023: £12,665) in respect of travel. subslstence and training. As authorised under Section 6 of the Articles of Assotlatlon, a total of £96,56312023: £121,946) was pald in remuneratlon to 812023: 91 elected officer trustees. Pension contributions paid by the Union on behalf of five12023: five) of the trustees Ilsted above totalled £1.87512023.. £2,461). The Universlry of Portsrnouth Students, Union IUPSUI operates a tradir>g subsidiary, Portsmouth Students, Union Trading Company Limlted IPSUT). PSUT is wholly owned by UPSU and was established to handle the sales of clothin& merchand15e, a(Ivertising and exhlbitlon space on beh31f of the student5, union. A monthly management charge is made by the charlty in respect of the operation and administration of thi5 company. The Unlversity of Portsmouth is, by virtue of the provisions of section 22 of the Education Act 1994, required to take all practlcal steps to ensure that the charity operates fairly and democratically and accounts for its finances. During the year under review. the charlty received grants totalling £1,267,56012023: £1.317,5591 from the Unlverslty of Portsmouth. 34