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2021-07-31-accounts

REGISTERED COMPANY NUMBER: 07275807 (England and Wales) REGISTERED CHARITY NUMBER: 1136470

Report of the Trustees and

Financial Statements

for the Year Ended 31 July 2021

for

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Contents of the Financial Statements FOR THE YEAR ENDED 31 JULY 2021

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 26
Detailed Statement of Financial Activities 27 to 29

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

The Trustees present their report and the audited financial statements of the charity for the year ended 31 July 2021. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (FRS 102) (effective 1 January 2019) in preparing the annual report and financial statements of the charity.

OBJECTIVES AND ACTIVITIES Objectives and aims

As laid out in the Students' Union (SU) governing document the objects remain as:

The advancement of education of students at the University of Wolverhampton for the public benefit by:

o Promoting the interests and welfare of students at the University of Wolverhampton during their course of study and representing, supporting and advising students

o Being the recognised representative channel between students and the University of Wolverhampton and any other external bodies

o Providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students

The core aims of the Students Union remain:

o To enhance the student voice across the University o To maximise the student experience for all students

o To promote and support students' success

Page 1

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

ACHIEVEMENT AND PERFORMANCE

2020/21 has been a significant year of progress for the SU. We have taken the opportunity to establish a new strategic plan, which represents an exciting and timely step change for the SU.

We put students at the very heart of the strategy process. We set out to and successfully engaged with a diverse range of students who in the middle of a pandemic shared their hopes, aspirations and needs with us.

The Strategic Plan is rooted in evidence through:

o A robust student survey of 1,139 (conducted independently)

o Qualitative student engagement - 46 students through focus groups and in depth 1:1s

o A qualitative survey of stakeholders with 92 respondents (conducted independently)

We have a new vision

"Proudly Wolverhampton. Inspiring and empowering all students to get the best out of university and life".

We have a new mission

"At the heart of the student community, making life better, amplifying student voices, providing exciting opportunities and delivering services with impact".

We have new values (SIBI)

o S upportive o I nclusive

o B rave

o I nnovative

We have new strategic themes, which are underpinned by a number of impactful projects that will add value and innovation

o Belonging, Identity and Community

o Well-Being o Opportunities o Student Voice

The Strategic Plan is aligned with the University of Wolverhampton's new 10 year Strategy, Vision 2030 and thus provides significant opportunities for increased collaboration and positive impact for our members.

At the same time as developing the Strategic Plan, the SU has been focussed on supporting our members through the challenges of the pandemic. In accordance with government guidelines, our offices have remained largely shut for the last year and the majority of our services have been delivered on line. The exception has been the Walsall lounge/café services, which was allowed to open for a limited duration.

Despite these challenges, the SU has delivered greater impactful services. For example:

o Advice Centre assisted 2,461 students this year and dealt with 3,041 enquiries from students. Advice Centre has also supported 128 students who were experiencing hardship through our Pandemic Support.

o School Reps project has supported 1,148 enquiries affecting the experience of 3,254 students.

o Societies increased memberships from 492 students to 1036.

o Organised 191 virtual events to provide some fun, engaging activities throughout lockdown.

The SU has also strengthened its governance and for the first time in some years operated with a full complement of board and senior management team.

Page 2

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

Our elected Sabbatical Officers (and trustees) have had an exceptional year, rising to the challenge of supporting students at such a difficult time. They worked with local charities to organise food parcels for students. They also successfully influenced the University to include international students for the very first time in the criteria for hardship support.

The SU has received the block grant of £1m plus a cost of living increase of 1.5% for the 2021/22 year. However, the SU has requested further support to help deliver the priorities within the SU Strategic Plan, which will also contribute towards delivering the outcomes of the University's Vision 2030.

Page 3

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

FINANCIAL REVIEW

Reserves policy

Scope of Reserves Policy and Definition of "Free Reserves":

The reserve policy covers all free reserves held at the SU. The SU defines free reserves as that part of a charity's income funds that is freely available to spend for any or all of the charity's purposes once it has met its commitments and covered its other planned expenditure.

Funds excluded from the definition of free reserves, and hence the policy, are:

The designation of funds is not binding however, and the Trustee Board may change its plans and release these amounts to "free reserves".

Reasons for Holding Reserves:

The reserves policy determines the level of reserves required to enable the SU to:

- fund working capital

Calculation of Required Reserves:

The policy for activities run by UWSU is based on its two major income streams affecting the level of free reserves: I. University Block Grant (83.3% of total income)

II. Trading Activity Income. (0.7% of total income)

The minimum reserves required are calculated as:-

"3.5 Months operating costs (as defined by the annual budgeted organisational expenditure), known as the 'operating reserve'."

It was agreed by the Trustees to increase the measurement from 3 to 3.5 months for this year to reflect the impact of the pandemic.

Reserves in excess of the required reserves are held as 'free reserves' or 'designated reserves', in accordance with the Trustee Board. If reserves fall below 3.5 months' operating costs for more than 6 months, the Trustees would ask the management to formulate a recovery plan to be submitted to Trustee Board for approval. If there are surplus funds available above the minimum level, the Committee should plan to utilise these within three years.

The Union sets aside a designated reserve to cover 3.5 months worth of operating costs so that there are sufficient funds available in an 'operating reserve' to ensure adequate security for the Union exists.

Going Concern

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on the charity of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 4

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

FUTURE PLANS

Priorities for 2021/22

Our overall priority for the next academic year is to drive the implementation of the Strategic Plan, which will include:

o Reconfiguring the organisational structures to ensure that we are aligned to deliver a step change in services.

o Deliver key pilot projects aligned with the strategic plan and ensure they are co designed with students.

o Continuing to build a positive, mutually beneficial partnership with the University especially in the context of our respective strategic plans.

o Develop mutually beneficial external partnerships that add value and innovation.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company registered in England and Wales, limited by guarantee, as defined by the Companies Act 2006. The Students' Union is constituted in accordance with its Constitution and is administered and managed by the Trustees.

The sabbatical officers are elected by the membership, through a secret cross campus ballot, to take office on 1 July in the year in which they are elected and hold office for one year until the following 30 June.

The new Committees of the Board have all met this year and have strengthened the scrutiny role of the Board. These sub-committees are Management Board (monthly finance committee), Audit & Risk Committee and People and Culture Committee.

Furthermore, the Trustee Board established a Task and Finish Group for six months to oversee the development of the Strategic Plan.

Recruitment and appointment of new trustees

Recruitment of two Lay Trustees and new Student Trustees took place in September 2020.

Organisational structure

The University of Wolverhampton Students' Union (hereafter referred to as the Students' Union) falls under the definition of a "Students' Union" in section 20(1) of the Education Act 1994. The Students' Union is a company limited by guarantee with charitable status.

Wolverhampton University (hereafter referred to as the University) exercises its duty under the Education Act 1994 to take such steps as are reasonably practicable to secure that the Students' Union operates in a fair and democratic manner and is accountable for its finances. The Students' Union and the University agreed a comprehensive data-sharing agreement in November 2019.

Democratic structures

A review of democratic processes and structures was undertaken in 2019/20 and implemented in the 2020/21 academic year.

Management structure

The Students' Union employs professional staff to ensure effective management of its many activities and to implement the policy decisions made by the Board of Trustees and Union Council. There is delegated authority, through the Chief Executive Officer, for operational decision-making and accountability within the various areas of the Students' Union, in accordance with agreed structures.

Page 5

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The Trustee Board audit & risk sub-committee has met throughout the year to review the major strategic, business and operational risks via an approved Risk Register. The Board have a schedule for the review and refresh of all its policies which ensures there is a planned programme in place to ensure all policies are up to date and in line with any legislative changes. In response to the Covid19 Pandemic, a business continuity plan was developed and reviewed by the trustees through the year. The Union has been included in the University's process on risk assessments for on-campus activities and preparations for return to campus following public health and university guidelines. Officers and senior staff have attended various University emergency groups throughout the pandemic.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

07275807 (England and Wales)

Registered Charity number

1136470

Registered office

Students' Union Wulfruna Street Wolverhampton West Midlands WV1 1LY

Trustees

Sarah Bishop - External Trustee - Appointed 26th October 2015 Bilgin Yuksel - External Trustee - Appointed 8th February 2019 Chetan Bhatti - External Trustee - Appointed 26th October 2020 Veronica Leigh-Hanson - External Trustee - Appointed 26th October 2020 Omoriawo Idiakheua - Student Trustee - Appointed 26th October 2020 Joshua Oke - Student Trustee - Appointed 18th February 2021 Jennifer McFarlane - Student Trustee - Appointed 26th October 2020 - Resigned 16th August 2021 David Brown - External Trustee - Appointed 20th January 2020 - Resigned 27st July 2021 Gary Butler - University Trustee - Appointed 28th June 2018 - Resigned 26th October 2020 Ayokunle Falana - Sabbatical Officer - Re-appointed 1st July 2019 - Resigned 1st July 2021 Esther Shonibare - Sabbatical Officer - Re-appointed 1st July 2019 - Resigned 1st July 2021 Oluwatobi Falana - Sabbatical Officer - Appointed 1st July 2020 Olalere Bamigbade - Sabbatical Officer - Appointed 1st July 2020 Angel Morphew - Sabbatical Officer - Appointed 26th October 2020 Tayabah Mahmood - Sabbatical Officer - Appointed 1st July 2021

Company Secretary

D V Williams

Auditors

Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

Page 6

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Report of the Trustees FOR THE YEAR ENDED 31 JULY 2021

PUBLIC BENEFIT

The Trustees have had regard to the guidance provided by the Charity Commission regarding public benefit and believe that the Union demonstrates the benefits it provides to the public by the charitable activities described above.

Throughout the pandemic, the SU has worked with local charities to organise food parcels for students experiencing hardship.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of University of Wolverhampton Students' Union for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

In so far as the trustees are aware:

AUDITORS

The auditors, Haines Watts Bristol Limited, have been re-appointed to act as auditors for the forthcoming year.

Approved by order of the board of trustees on 11 November 2021 and signed on its behalf by:

S Bishop - Trustee

Page 7

Report of the Independent Auditors to the Members of University of Wolverhampton Students' Union

Opinion

We have audited the financial statements of University of Wolverhampton Students' Union (the 'charitable company') for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's 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 relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity's operations and activities. The Trustees' view on the impact of COVID-19 is disclosed on page 4.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial 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.

Page 8

Report of the Independent Auditors to the Members of University of Wolverhampton Students' Union

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its 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 following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As 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 law) are responsible for the preparation of the financial statements and for being satisfied that they 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 free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, 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 or to cease operations, or have no realistic alternative but to do so.

Page 9

Report of the Independent Auditors to the Members of University of Wolverhampton Students' Union

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial 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 conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud 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-compliance with laws and regulations. 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:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud and error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks applicable to the Charitable Company and the sector in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006, UK GAAP, the UK Corporate Governance Code, Education Act 1994, UK corporate tax laws and the Charities Act.

We obtained an understanding of how the Charitable Company are complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations. We corroborated our enquiries through our review of board minutes, other relevant meeting minutes and review of correspondence with regulatory bodies.

We assessed the susceptibility of the Charitable Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included:

o Identifying and assessing the controls management has in place to prevent and detect fraud;

o Challenging assumptions and judgments made by management in its significant accounting estimates and judgments: in particular to deferred income, annual depreciation and the facilities in kind annual charge;

o Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and

o Assessing the extent of compliance with the relevant laws and regulations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions.

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.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 10

Report of the Independent Auditors to the Members of University of Wolverhampton Students' Union

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 work, for this report, or for the opinions we have formed.

Matthew Bracher FCA (Senior Statutory Auditor) for and on behalf of Haines Watts Bristol Limited Chartered Accountants and Statutory Auditors Bath House 6-8 Bath Street Bristol BS1 6HL

11 November 2021

Page 11

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Statement of Financial Activities (Incorporating an Income and Expenditure Account) FOR THE YEAR ENDED 31 JULY 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
5
Charitable activities
Marketing
Advice and Representation Centre
Societies
TOTUM
Student Services
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Raising funds
6
Charitable activities
7
Advice and Representation Centre
Societies
Student Services
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
1,187,343
-
-
-
508
1,525
-
8,044
929
1,198,349
90,308
403,251
-
635,454
1,129,013
69,336
318,809
388,145		 Restricted
funds
£
1,500
-
-
-
-
-
-
-
-
1,500
-
1,500
-
-
1,500
-
-
-		 2021
Total
funds
£
1,188,843
-
-
-
508
1,525
-
8,044
929
1,199,849
90,308
404,751
-
635,454
1,130,513
69,336
318,809
388,145		 2020
Total
funds
£
1,143,776
7,664
1,731
3,840
3,537
2,622
5,413
60,091
2,282
1,230,956
112,925
428,883
8,508
665,278
1,215,594
15,362
303,447
318,809

The notes form part of these financial statements

Page 12

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION (REGISTERED NUMBER: 07275807)

Balance Sheet 31 JULY 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
13
8,956
CURRENT ASSETS
Stocks
14
1,968
Debtors
15
57,356
Cash at bank and in hand
438,164
497,488
CREDITORS
Amounts falling due within one year
16
(118,299)
NET CURRENT ASSETS
379,189
TOTAL ASSETS LESS CURRENT
LIABILITIES
388,145
NET ASSETS
388,145
FUNDS
18
Unrestricted funds
TOTAL FUNDS		 Restricted
funds
£
-
-
-
-
-
-
-
-
-		 2021
Total
funds
£
8,956
1,968
57,356
438,164
497,488
(118,299)
379,189
388,145
388,145
388,145
388,145		 2020
Total
funds
£
14,171
3,925
49,104
329,808
382,837
(78,199)
304,638
318,809
318,809
318,809
318,809

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 11 November 2021 and were signed on its behalf by:

S Bishop - Trustee

T Mahmood - Trustee

The notes form part of these financial statements

Page 13

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Cash Flow Statement FOR THE YEAR ENDED 31 JULY 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
108,356
108,356
-
-
108,356
329,808
438,164		 2020
£
30,169
30,169
(13,116)
(13,116)
17,053
312,755
329,808

The notes form part of these financial statements

Page 14

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Cash Flow Statement FOR THE YEAR ENDED 31 JULY 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2021 2020
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 69,336 15,362
Adjustments for:
Depreciation charges 5,215 3,853
Decrease/(increase) in stocks 1,957 (287)
(Increase)/decrease in debtors (8,252) 4,219
Increase in creditors 40,100 7,022
Net cash provided by operations 108,356 30,169
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.8.20 Cash flow At 31.7.21
£ £ £
Net cash
Cash at bank and in hand 329,808 108,356 438,164
329,808 108,356 438,164
Total 329,808 108,356 438,164

The notes form part of these financial statements

Page 15

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', 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.

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have tested their cash flow analysis to take into account the impact on the charity of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

The relationship between the University of Wolverhampton and the University of Wolverhampton Students' Union is established in the Regulations of the University and detailed in the University of Wolverhampton Students' Union's articles approved by both organisations. The University of Wolverhampton Students' Union receives a block grant from the University and part occupies a number of buildings. The University pays for utilities, portering and some cleaning staff. This non-monetary support is intrinsic to the relationship between the University and the Students' Union.

Although the University of Wolverhampton Students' Union continues to generate supplementary funding from various primary purpose trading activities, it will always be dependent upon the University's support.

There is no reason to believe that this or equivalent support from the University of Wolverhampton will not continue for the foreseeable future as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body. The Trustees have decided that it is therefore appropriate to prepare the financial statements on the going concern basis.

The Students' Union is a Public Benefit entity as defined under FRS102.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.

Income

The Students' Union receives a block grant and other miscellaneous grants from the University of Wolverhampton each financial year. These are included within donations and legacies on a receivable basis.

Donated services and facilities donated by the University of Wolverhampton are included within donations and legacies at their estimated value to the Students' Union when received, and under the appropriate expenditure heading depending on the nature of the service or facility provided. Time donated by the Students' Union members is not recognised in the financial statements as this cannot be reliably measured.

All income from charitable activities and trading activities are recognised on an accruals basis, exclusive of value added tax, with any money received for services provided after the year end deferred.

Other income is credited to the Statement of Financial Activities in the year in which it is receivable.

Page 16

continued...

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES - continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it 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 accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Allocation and apportionment of costs

Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life less any residual value.

Fixtures and fittings - 33% straight line Improvements to property - 20% straight line

Assets are capitalised if they cost more than £1,000 and are expected to last more than a year.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities and therefore no provision for corporation tax has made within the financial statements.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds are funds set aside by the Board of Trustees for a specific purpose and are included within unrestricted reserves within the financial statements.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the charitable company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

continued...

Page 17

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES - continued

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other debtors, and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the charitable company's contractual obligations are discharged, cancelled, or they expire.

2. DONATIONS AND LEGACIES

Donations
Grants
Other grants
Donated services and facilities		 2021
£
-
1,000,000
21,850
166,993
1,188,843		 2020
£
155
984,531
1,500
157,590
1,143,776

The amount relating to donated services and facilities has been re-estimated this financial year on advice from the University concerning the value of the costs associated with the accomodation and related services provided.

Grants received, included in the above, are as follows:

2021 2020
£ £
University of Wolverhampton block grant 1,000,000 984,531

continued...

Page 18

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

3.
OTHER TRADING ACTIVITIES
Events
Advertising income
The SU Lounge
4.
INVESTMENT INCOME
Investment income
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Sundry income
Charitable activities
Furlough scheme income
Charitable activities
Furlough scheme income
Marketing
Furlough scheme income
Advice and Representation Centre
Society income
Societies
TOTUM card sales
TOTUM
Sundry income
Student Services
Furlough scheme income
Student Services
Printing, laminating and
binding
Student Services
Miscellaneous events income
Student Services		 2021
£
1,600
3,711
2,733
8,044
2021
£
929
2021
£
-
-
-
-
508
1,525
-
-
-
-
2,033		 2020
£
14,235
22,553
23,303
60,091
2020
£
2,282
2020
£
376
7,288
1,731
3,840
3,537
2,622
195
443
6
4,769
24,807

continued...

Page 19

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

6. RAISING FUNDS

Other trading activities

Staff costs
Events
Advertising
The SU Lounge		 2021
£
66,464
12,379
-
11,465
90,308		 2020
£
67,489
16,245
(1,000)
30,191
112,925

7. CHARITABLE ACTIVITIES COSTS

Advice and Representation Centre
Student Services
SUPPORT COSTS
Advice and Representation Centre
Student Services
Advice and Representation Centre
Student Services		 Direct
Costs
£
162,091
254,852
416,943
Management
£
128,845
202,089
330,934
Marketing
£
34,708
54,438
89,146

8. SUPPORT COSTS

continued...

Page 20

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2021 2020
£ £
Auditors' remuneration - audit 7,750 7,500
Other non-audit services 883 264
Depreciation - owned assets 5,215 3,853

10. TRUSTEES' REMUNERATION AND BENEFITS

In accordance with the University of Wolverhampton Students' Union memorandum and articles of association, salaries and employer pension contributions of £82,707 (2020: £76,172) were paid to the elected officers in respect of qualifying services.

Trustees' expenses

For the years ended 31 July 2021 and 31 July 2020 travel expenses of £36 (2020 - £188) were reimbursed to trustees as part of their role as officers.

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Full Time
Student Staff		 2021
£
673,176
44,297
18,380
735,853
2021
23
24
47		 2020
£
679,858
43,151
20,915
743,924
2020
24
23
47

No employees received emoluments in excess of £60,000.

continued...

Page 21

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,142,276
Charitable activities
Charitable activities
7,664
Marketing
1,731
Advice and Representation Centre
3,840
Societies
3,537
TOTUM
2,622
Student Services
5,413
Other trading activities
60,091
Investment income
2,282
Total
1,229,456
EXPENDITURE ON
Raising funds
112,925
Charitable activities
Advice and Representation Centre
428,883
Societies
8,508
Student Services
663,778
Total
1,214,094
NET INCOME
15,362
RECONCILIATION OF FUNDS
Total funds brought forward
303,447
TOTAL FUNDS CARRIED FORWARD
318,809		 Restricted
funds
£
1,500
-
-
-
-
-
-
-
-
1,500
-
-
-
1,500
1,500
-
-
-		 Total
funds
£
1,143,776
7,664
1,731
3,840
3,537
2,622
5,413
60,091
2,282
1,230,956
112,925
428,883
8,508
665,278
1,215,594
15,362
303,447
318,809

continued...

Page 22

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

13.
TANGIBLE FIXED ASSETS
Improvements
to
property
£
COST
At 1 August 2020 and 31 July 2021
8,239
DEPRECIATION
At 1 August 2020
961
Charge for year
1,648
At 31 July 2021
2,609
NET BOOK VALUE
At 31 July 2021
5,630
At 31 July 2020
7,278
14.
STOCKS
Stocks
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
VAT
Prepayments and accrued income		 Fixtures
and
fittings
£
114,190
107,297
3,567
110,864
3,326
6,893
2021
£
1,968
2021
£
19,951
5,004
2,798
29,603
57,356		 Fixtures
and
fittings
£
114,190
107,297
3,567
110,864
3,326
6,893
2021
£
1,968
2021
£
19,951
5,004
2,798
29,603
57,356		 Totals
£
122,429		 Totals
£
122,429		 Totals
£
122,429
108,258
5,215
113,473
8,956
14,171
2020
£
3,925
2020
£
222
5,004
7,350
36,528		 2020
£
3,925
49,104

continued...

Page 23

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income		 2021
£
50,881
13,144
3,770
50,504
118,299		 2020
£
28,034
7,490
2,716
39,959
78,199

Included in accruals and deferred income is £21,196 (2020 - £350) relating to income received but relating to future periods.

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
18.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS		 At 1.8.20
£
318,809
318,809
Incoming
resources
£
1,198,349
1,500
1,199,849		 2021
£
2,067
Net
movement
in funds
£
69,336
69,336
Resources
expended
£
(1,129,013)
(1,500)
(1,130,513)		 2020
£
8,268
At
31.7.21
£
388,145
388,145
Movement
in funds
£
69,336
-		 2020
£
8,268
At
31.7.21
£
388,145		 2020
£
8,268
388,145
69,336

continued...

Page 24

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

18. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
TOTAL FUNDS
Comparative net movement in funds, included in the above are as
Unrestricted funds
General fund
Restricted funds
Restricted Funds
TOTAL FUNDS		 At 1.8.19
£
303,447
303,447
follows:
Incoming
resources
£
1,229,456
1,500
1,230,956		 Net
movement
in funds
£
15,362
15,362
Resources
expended
£
(1,214,094)
(1,500)
(1,215,594)		 At
31.7.20
£
318,809
318,809
Movement
in funds
£
15,362
-
15,362

Included within unrestricted funds are the following designated funds:

Societies - £2,925 (2020 - £3,223) COVID-19 hardship fund - £400 (2020 - £3,896) Fixed asset reserve - £8,956 (2020 - £14,171) Operating reserve - £252,169 (2020 - £234,329) Capital improvements reserve - £50,000 (2020 - £50,000)

Societies

Any unspent income at the end of the year, whether raised by members or as a result of unspent grant income from the Union, is carried forward for use in future periods. Any deficit of a society at the end of a year is written off to the SOFA so as not to prejudice future members of that society.

COVID-19 hardship fund

Given the impact of COVID-19 the Board of Trustees agreed in 2020 to change the use of the services held in the employment support fund to help students in hardship during the pandemic. Previously the fund was available to assist students with the practical elements of obtaining employment such as workwear and transport costs.

Fixed asset reserve

The fixed asset reserve reflects fixed assets already purchased. As these assets are depreciated, a transfer is made from the designated reserve to the general reserve.

Page 25

continued...

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Notes to the Financial Statements - continued FOR THE YEAR ENDED 31 JULY 2021

18. MOVEMENT IN FUNDS - continued

Operating reserve

The operating reserve represents three and a half months operating costs in line with the Union's stated reserves policy.

At the year end the general reserve, which is used for the ongoing business of the Union in general, stood at £73,695 (2020 - £13,190).

19. EMPLOYEE BENEFIT OBLIGATIONS

The University of Wolverhampton Students' Union operates a defined contribution pension scheme. The assets of the scheme are held in a separately administered fund. The pension cost charge represents contributions payable by the Union to the fund and amounted to £18,380 (2020 - £20,915). Included within other creditors are unpaid pension contributions of £3,770 (2020 - £2,716).

20. CONTINGENT LIABILITIES

At the point of approving the financial statements, conditions exist which may give rise to a future VAT liability to the Students' Union, which cannot be currently accurately assessed as to quantum.

21. RELATED PARTY DISCLOSURES

The University of Wolverhampton Students' Union received a recurrent block grant from the University of Wolverhampton of £1,000,000 (2020 - £984,531) during the year. In addition the Union received other grants and other income of £21,850 (2020 - £1,855) during the year. A balance of £14,967 (2020 - £NIL) was owed to the Students' Union at the year end and is included within debtors.

The Union made purchases of £8,208 (2020 - £20,659) from the University of Wolverhampton during the year. The balance owed to the University at the year end was £NIL (2020 - £NIL).

The Union occupies the University's buildings on a rent free basis under an informal arrangement. In accordance with the Charities SORP FRS102 the trustees have estimated the use of the buildings and utilities with reference to market rents at £166,993 (2020 - £157,590).

Trustee and key management personnel remuneration for the year was £130,726 (2020 - £135,040).

22. ULTIMATE CONTROLLING PARTY

The ultimate control of the University of Wolverhampton Students' Union is vested under the Constitution in the members in General Meetings. As such no single person or entity controls the Union as defined by Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Page 26

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 JULY 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Grants
Other grants
Donated services and facilities
Other trading activities
Events
Advertising income
The SU Lounge
Investment income
Investment income
Charitable activities
TOTUM card sales
Sundry income
Furlough scheme income
Printing, laminating and binding
Society income
Miscellaneous events income
Total incoming resources
EXPENDITURE
Other trading activities
Wages
Social security
Pensions
Events
Advertising
The SU Lounge		 2021
£
-
1,000,000
21,850
166,993
1,188,843
1,600
3,711
2,733
8,044
929
1,525
-
-
-
508
-
2,033
1,199,849
60,022
4,330
2,112
12,379
-
11,465
90,308		 2020
£
155
984,531
1,500
157,590
1,143,776
14,235
22,553
23,303
60,091
2,282
2,622
571
13,302
6
3,537
4,769
24,807
1,230,956
62,607
3,011
1,871
16,245
(1,000)
30,191
112,925

This page does not form part of the statutory financial statements

Page 27

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 JULY 2021

Other trading activities
Charitable activities
Wages
Social security
Pensions
Affiliations
Campaigns
Conferences
Elections and referenda
Subscriptions
Licences
Society expenditure
Well @ Wolves
Society development fund
Market research
C19 hardship fund vouchers
Insurance
Event production costs
Student voice operational costs
AGM
Support costs
Management
Wages
Social security
Pensions
Insurance
Postage and stationery
Sundries
Repairs and maintenance
Equipment purchases
Travel
Refreshments and hospitality
Photocopier leasing and maintenance
Depreciation
Facilities in kind
Finance
Wages
Social security
Carried forward		 2021
£
354,358
20,370
7,253
20,274
75
1,783
116
3,257
232
-
904
40
384
6,170
246
1,253
-
228
416,943
117,938
9,794
4,502
12,760
1,154
-
64
5,153
861
-
8,340
3,375
166,993
330,934
76,406
5,750
82,156		 2020
£
319,656
20,361
8,261
30,812
1,718
2,719
992
3,161
1,011
3,118
2,538
2,411
871
3,240
246
1,051
1,614
-
403,780
173,915
11,892
6,605
12,017
1,888
112
1,155
11,818
2,031
881
8,318
1,893
157,590
390,115
75,002
5,310
80,312

This page does not form part of the statutory financial statements

Page 28

UNIVERSITY OF WOLVERHAMPTON STUDENTS' UNION

Detailed Statement of Financial Activities FOR THE YEAR ENDED 31 JULY 2021

Finance
Brought forward
Pensions
Bank charges
Cash in transit charges
Computer software, licences and support
Accountancy fees
Irrecoverable VAT
Human resources
Sundries
Recruitment
Training and development
Legal and professional
Payroll administration
Marketing
Wages
Social security
Pensions
Printing
Sundries
Website charges
Governance costs
Auditors' remuneration - audit
Auditors' remuneration for non audit work
Total resources expended
Net income		 2021
£
82,156
3,624
932
33
1,884
1,858
8,389
98,876
1,898
13,063
3,963
71,666
5,083
95,673
64,452
4,053
889
1,158
6,682
11,912
89,146
7,750
883
8,633
1,130,513
69,336		 2020
£
80,312
3,422
1,296
165
1,758
2,939
11,435
101,327
2,261
7,808
8,308
105,149
5,641
129,167
48,678
2,577
756
3,985
2,442
12,078
70,516
7,500
264
7,764
1,215,594
15,362

This page does not form part of the statutory financial statements

Page 29