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2021-07-31-accounts

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Leeds University Union

A company limited by guarantee

Trustees’ report and financial statements

31 July 2021

Company registered number 7284768 Charity registration number 1136742

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Contents:

Contents:
Page
Administrative Information 2
Trustees’ Report 4
Statement of Trustees' responsibilities for the Trustees’
annual report and the financial statements 12
Independent Auditor’s Report 13
Statement of Financial Activities 17
Balance Sheet 18
Cash Flow Statement 19
Notes to the Accounts 20

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Administrative Information

Charitable Status

Leeds University Union (‘LUU’) is a company limited by guarantee registered in England and Wales (company number 7284768) which was incorporated on 15th June 2010. LUU was formally registered as a charity with the Charity Commission in July 2010 (registration number 1136742).

Principal Address

The registered and principal office is Leeds University Union, Lifton Place, Leeds, LS2 9JZ

The Board of Trustees

The Directors of LUU are its Trustees for the purposes of Charity Law and throughout this report are collectively referred to as the Trustees. The Trustees serving during the year and since the year end are as follows:

Student Executive Officers and Trustees To 30.06.21 From 01.07.21 Union Affairs Officer (Chair) Isobel Walter Activities Officer Lucy Murphy Community Officer Charlotte Morton Education Officer Carolina Hall-Rodriguez Equality and Diversity Officer Laila Fletcher Welfare Officer Sophia Hartley Union Affairs & Communications Officer (Chair) Aysha Burton Education Officer Megan Hodgkinson Equality & Liberation Officer Natasha Fowler-Ekar International & Postgraduate Officer Nicole Jimenez Mogrovejo Wellbeing Officer Bethany Eaton

Student Trustees External Trustees Roland Maposa Asad Ali (to 17.12.20) Harry Dunbar Neil Clephan Emily Webb Annabel Tonge Sreya Vadlamani Oliver Laird Damola Timeyin (from 17.12.20)

Auditor

Bank

Saffery Champness LLP Lloyds TSB Bank PLC Mitre House 6-7 Park Row North Park Road Leeds Harrogate, HG1 5RX LS1 5JD

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

LUU employs a Chief Executive, Aidan Grills, who works closely with the Student Executive Officers and Trustee Board to ensure effective governance and management of the organisation. The Chief Executive is head of a Senior Leadership Team made up of Hannah Brian (Deputy Chief Executive Student Engagement), Sue Stones (Deputy Chief Executive Operations), Keith Ross (Director of Finance & Risk), Jasper Hegarty-Ditton (Director of Digital and Communications) and Antonia Frezza (Director of People and Quality).

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Trustees’ Report

The Board of Trustees, who act as Directors for the purposes of Company Law, present their Annual Report for the year ended 31st July 2021 which includes the administrative information set out on page 2, Strategic Report and Directors Report for Companies Act 2006 purposes, and the audited accounts for the year.

Structure, governance and management

The primary aim of LUU is the advancement of education of students at The University of Leeds for the public benefit.

The governance of LUU is documented in its Articles of Association and its Bye-laws, which can be found on the LUU website (www.luu.org.uk).

The Board of Trustees is responsible for the strategic direction, governance and sustainability of LUU. The Board is made up of six Student Executive Officers, four Student Trustees and four External Trustees. The Student Executive Officers are elected through a secret ballot by the members each year, normally serving for one year in office but can serve a second term if reelected. The four Student Trustees are recruited to the Board and are recommended to the Board by an appointments panel. The Student Trustees serve for a term of up to two years and a maximum of two terms as long as they remain registered students at the University of Leeds. The External Trustees are recruited to the Board to bring a wider perspective and skill set from outside of LUU. A term for External Trustees lasts for up to four years and they can also serve for two terms.

Upon appointment all trustees receive a variety of information through their induction. Trustees are briefed on their legal obligations and other trustee responsibilities. All trustees meet with the Chief Executive before their first meeting and receive an induction information pack which includes their role responsibilities, historical and current information about LUU and information on its Strategic Plan. The trustee induction is framed around the principles of the NCVO Charity Governance Code.

Every year the Board of Trustees completes a skills audit, and new trustees also do this during induction. Trustees also take part in Peer Assessments periodically, in line with their term of appointment.

The Student Executive Officers are new to the Board every year, so they undergo a more intensive training period. This training starts after they are elected, and before they start their term of office to ensure that they are fully aware of their roles and responsibilities and can perform their duties to the best of their abilities as soon as possible. They attend training sessions on the history of governance at LUU, their legal responsibilities as trustees, briefing sessions on key issues and decisions that have been made by the Board of Trustees and receive training on how to deal with potential conflicts of interest.

An additional Student Executive Officer, the International Officer, was added to the team in June 2020. This reflects the growing importance of international students at the University of Leeds and the role will ensure that our global community is properly represented and that

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

opportunities are created to share different cultures and experiences. For the year covered by this report this role is not designated as a trustee, whilst a reorganization of the portfolios of the Executive was undertaken to incorporate the new role. This role was adjusted to include Postgraduate Students from June 2021, and the other Officer Trustee roles were amended to ensure consistency across their portfolios. This resulted in changes to a number of the role titles, and removal of the Community Officer role.

The Board of Trustees is supported by five sub-committees, which meet three to four times a year and focus on certain key aspects of LUU’s governance and management, which are:

The Audit & Risk Committee monitors LUU’s risk profile, health & safety, risk management, compliance with relevant legislation and other matters which could impact on LUU’s future health. The Committee reviews and commissions internal audit work and scrutinises the annual accounts at a joint meeting with the Finance Committee.

The Finance Committee monitors LUU’s financial performance, appraises requests for capital expenditure and reviews our commercial strategy. The Committee also reviews the annual budget and scrutinizes the annual accounts in a joint meeting with the Audit & Risk Committee.

The People and Values Committee examines issues relating to LUU workforce including staff policies, changes to pay (and specifically that of the Chief Executive), training and development and volunteering.

The Appointments and Governance Committee is responsible for monitoring and continuous improvement in governance arrangements at LUU. The Committee ensures that new trustees are recruited, inducted and developed properly and it also has overall responsibility for recruiting the Chief Executive.

The Engagement and Development Committee examines our approach to member

engagement, including through marketing and communications, external partnerships and through LUU member-focused activities.

LUU operates on democratic principles, with Policy being acted upon by the seven elected officers who form the Student Executive. During the year members have the opportunity to bring forward ideas to one of three Union Forums to help form Policy on issues which contribute to “Better Leeds”, “Better University” or “Better Union”. Forums are based on the principles of deliberative and direct democracy with policy being voted for approval by a randomly selected Student Panel of 16 students, and issues that are contentious, or don’t have a majority vote, are referred to Referendum. The Student Panel is demographically representative of the Leeds University student body as outlined in LUU’s Bye-Laws.

The Senior Leadership Team

The Chief Executive is supported by five permanent senior executive officers that together form the Senior Leadership Team (SLT). This team provides the strategic management of LUU, managing its operations, giving leadership to its staff and ensuring that the board and its subcommittees are kept fully informed on all aspects of the organisation and are regarded as being the key management personnel of the charity outside of the trustees.

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Relationship with the University of Leeds

Under the Education Act 1994, the University of Leeds has a statutory duty to take such steps as are reasonably practicable to ensure that the Union operates in a fair and democratic manner and is held to proper account for its finances. LUU therefore works alongside the University of Leeds in ensuring that the affairs of the Union are properly conducted and that the educational and welfare needs of LUU’s members are met. The formal relationship with the University is governed by a Code of Practice and LUU works closely with the University and its students to develop appropriate Bye-Laws for its working practices. The University of Leeds is not a related party as defined by the Charities FRS 102 Statement of Recommended Practice (SORP).

Aims, Objectives and Activities

The primary aim of LUU is the advancement of education of students at The University of Leeds for the public benefit. LUU achieves this through:

At all times the trustees of LUU have had regard to the Charity Commission guidance on public benefit.

Whilst pursuing our aims and objectives and providing various activities for its members LUU seeks at all times to:

LUU provides a variety of services and activities for students including:

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

the year, up from 28,345 last year. We run a “Give it a Go” programme that provides taster sessions to give students an insight into the range of activities available to them, as well as trips to many locations in the UK. We also support student-led volunteering, facilitating a wide variety of community volunteering opportunities. The Student Activities team is made up of staff and students, and also provides support, advice and help with the safe running of activities especially around health and safety, recruitment, communication, delivery and finance including fundraising and development.

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Strategic Report

Achievements and Performance

Despite the significant impact of the COVID-19 pandemic, LUU is pleased to report significant achievement and continued progress against our high-level objectives. In September 2018 we launched a new 4-year Strategy, 2018-2022. This Strategy is focused on our organisation vision ‘Together we’ll make sure you love your time at Leeds’, and is based around achieving three core, measurable Strategic Impacts for students:

Activity within the plan is distributed across nine operational Missions which encompass all areas of LUU activity. Year three of the Strategy has seen some significant adaptation of activity in light of the impact of the pandemic on LUU operations, which has accelerated the progress of digital delivery of both commercial and engagement activities.

The Strategic Impacts and key successes during the year were as follows:

Strategic Impact Successes
You are ready for your future
Measures:-
•
Student staff and volunteer insight:I
am learning and developing in LUU
•
Student insight:LUU is effectively
representing my academic interests
•
Take up of learning & volunteering
opportunities
•
Number of student jobs created by
LUU		 •
57% positive feedback in the National
Student Survey, placing LUU 6th
overall in the Russell Group.
•
Employment of over 1,500 students
through the year, primarily through the
Joblink service.
•
Continued successful rollout of the
Love to Learn system, delivering
bespoke training modules for both
staff and volunteers.
You are happy, feeling good and having fun
Measures:-
•
Positive wellbeing indicator
•
Club and society membership
•
Attendances/ tickets for student
programmes
•
Attendances/ tickets for general
events		 •
Continued strong membership sales
for Clubs & Societies despite a lower
level of activity in the year.
•
Expansion of the online events
offering, with LUU providing live-stream
music events and craft sessions.
•
A hybrid awards show in term three,
with hundreds of members able to
participate in the celebration both
online and inperson.
You are a valued member of LUU
Measures:-
•
Active digital member engagement
•
Student satisfaction with services
•
Transactions across LUU services
•
Footfall into LUU building (daily
average)		 •
Positive feedback on service provision
throughout LUU outlets, with
particularly strong results for Old Bar
and their UberEats delivery service.
•
Rebuilding of transactions and footfall
in the later part of the year, reinstating
LUU as a key hub for students on
campus.

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Quality Management

LUU uses a number of external tools for quality assurance which link to the priorities and risks laid out in our strategic plan. In 2018, LUU was the first students’ union to be re-accredited under the Quality Students’ Unions (QSU) standard and was proud to have achieved the “Excellent” level in each of the 12 areas of organisational performance. This year LUU continues to hold accreditation under the Alcohol Impact scheme and has once again been accredited at the highest possible level under both the NUS Green Impact Award and the national Best Bar None scheme.

Financial Review

This year LUU has reported a deficit of £187k, compared to a deficit of £295k in the previous year. The results have been significantly impacted by the Covid-19 pandemic, which saw restricted access to both the University campus and the LUU building with the resultant commercial income much lower than in a normal year. To mitigate the impact of the reduced commercial income a significant staffing restructure was undertaken at the start of the year managed through voluntary redundancies and some reductions in working hours. Following the restructuring, staff were generally retained across the period with the salary cost being mitigated by Coronavirus Job Retention Scheme grant claims.

We have continued to receive the full block grant from the University of Leeds as per the current four-year agreement (2018-22) with £3.6m received in the year. The University of Leeds also provided an additional grant of £500k to protect the reserves of LUU during the disrupted year and to ensure the continued financial sustainability of LUU into the longer term. A further £260k was allocated from the University’s strategic development fund for student education, used to support agreed activity in postgraduate research, student representation, international student engagement and student attainment, opportunities and well-being. This funding is being recognised as it is spent with £66k (2020: £166k) being carried forward to be spent over the final year. This year has seen an increase in Student Services income with development funding being included here along with a strong growth in the income from our Joblink agency.

LUU appoints internal auditors, RSM, who conducted an audit of cyber risk management during the year, which focused on malware protection, home and mobile working, user education and awareness, incident management, as well as oversight where the IT environment is externally managed. A follow up audit was also carried out which reviewed progress on the actions resulting from previous audits. Our internal Audit Working Group continues to oversee the implementation of the key recommendations from the audit reports.

Our Balance Sheet remains strong with total net assets of £3.4m (£3.6m in 2020), and a cash balance of £2.2m (£1.9m in 2020). The cash balance comprises £1.0m of LUU cash, £1.1m of cash held on behalf of student clubs and societies and £0.1m from ticket sales held on behalf of event promoters. Our unrestricted funds stood at £3.4m with a further £6k of restricted funds. Our general reserve is £1,046k at the year end.

The free reserves of the charity are the unrestricted reserves less those funds designated for future projects and the fixed asset reserve. Our target for free reserves is a range with the low point based on the lowest cash balance over the year and the high point equivalent to one

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

year’s variable income. This year the range is between £333k and £697k the same as last year. Our free reserves of £1,046k (2020: £809k) are therefore comfortably above the high end of the target range as they were last year, in part bolstered by the additional grant funding from the University of Leeds. We expect that the free reserves will reduce in 2021-22, but will still remain above the top of the target range at the end of the year. We consider that this high level of free reserves is appropriate in light of the continuing uncertainty surrounding the Covid-19 pandemic and its lasting economic impacts.

Risk Management and Control

The strategic risk register of LUU receives regular updates which are considered by the Audit and Risk Committee at each meeting with a review by the board on an annual basis. Operational risks are managed at a team level with mitigations controlled through operational planning. The key risks faced by the charity revolve around its reputation with both the University of Leeds and our student members. The University is a significant funder of the charity and we work in partnership with the University to deliver ever improving services for the students. The relationship is maintained by developing close working relationships with senior members of the University team by our trustees, particularly the elected student executive, and by the Senior Leadership Team. To meet our aims, the students need to be well represented and supported by LUU. We invest in representation and democracy teams to ensure that engagement with students is effective and any potential risk in this area is mitigated.

The Union also faces on-going financial and control risks which are mitigated through a robust budget management process and comprehensive data protection policies supported by training. LUU also invests in internal audit services supported by thorough follow-up on proposed actions by senior managers and monitored via the Audit and Risk Committee.

The Covid-19 pandemic has continued to impact LUU with social distancing measures reducing income from our commercial outlets and reducing student numbers on the university campus. LUU is grateful to the University of Leeds for the continued support given to LUU which has sustained our ability to provide for the student experience.

Future Plans

Going into the final year of the 2018-2022 Strategy we plan to finalise some core strategic projects, alongside creating establishing work to lead into the 2022-26 Strategy which is currently under development. In the coming year, LUU intends to:

10

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Statement of trustees’ responsibilities

The trustees (who are also directors of Leeds University Union for the purposes of company law) are responsible for preparing the Trustees’ Report 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 these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Leeds University Union

Independent auditor’s report to the members

Opinion

We have audited the financial statements of Leeds University Union for the year ended 31 July 2021 which comprise the statement of financial activities, balance sheet and cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the charitable company’s state of affairs as at 31 July 2021 and of its incoming resources 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 Practice; and

have been prepared in accordance with the Companies Act 2006.

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 Auditor’s 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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 auditor’s report 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.

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

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 course of 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.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Trustees’ Annual Report which includes the Directors’ Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Trustees’ Annual Report which includes the Directors’ Report and the Strategic Report has been prepared in accordance with applicable legal requirements.

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 Trustees’ Annual Report and Strategic Report.

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:

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 accounting records and returns; or certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 12, the trustees (who are also 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 to do so.

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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 an auditor’s report 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of

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Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is 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 collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sally Appleton (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Chartered Accountants Mitre House North Park Road Harrogate HG1 5RX

Statutory Auditors

Date: 15 March 2022

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Leeds University Union

Annual Report and Accounts for the year ended 31st July 2021

Leeds University Union

Statement of financial activities for year ending 31 July 2021

Note
Income
Donations:
University Grant
Income from charitable activities:
Bars
Venues
Shops
Student Services
Student Advice funding
Student representation & affiliations
Student Activities/Volunteering funding
Other trading activities:
Rental Income
Media Sales & Conferences
Investment income
Coronavirus Job Retention Scheme Grant
Other income
Total
Expenditure
Expenditure on charitable activities:
Bars
Venues
Shops
Student Services
Student Advice
Student representation & affiliations
Student Activities/Volunteering
Media Sales & Conferences
Total
Net (expenditure)
2-8
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total Funds Total Funds
Funds
Funds
2021
2020
£
£
£
£
4,090,568
-
4,090,568
3,527,568
579,286
-
579,286
1,478,423
149,679
-
149,679
930,517
985,405
-
985,405
2,651,778
1,737,673
-
1,737,673
975,376
12,231
-
12,231
61,576
1,860
-
1,860
95,212
-
-
-
269,718
71,623
-
71,623
120,469
88,850
-
88,850
230,821
248
-
248
3,797
668,526
-
668,526
844,470
28,500
-
28,500
27,127
8,414,449
-
8,414,449
11,216,852
1,582,692
-
1,582,692
2,310,237
952,964
-
952,964
1,682,219
2,029,741
-
2,029,741
3,300,198
1,934,037
-
1,934,037
2,009,789
570,036
-
570,036
583,445
707,491
-
707,491
796,991
766,804
-
766,804
754,284
58,111
-
58,111
74,377
8,601,876
-
8,601,876
11,511,540
(187,427)
-
(187,427)
(294,688)
3,619,125
6,092
3,625,217
3,919,905
3,431,698
6,092
3,437,790
3,625,217

The notes on pages 20 to 32 form part of these financial statements.

The charitable company has no recognised gains or losses other than the net incoming resources for the year.

17

Leeds University Un￿n Annuol Report ond Accounts for the yeor ended 31 sl July ￿)27 th••t•g•tXJdy X Note TJryibl• •S•bts lrt•ngible i%Z9N z777,￿0 32476 Z¥7rJ Z￿0. io ock in h•nd D•btObS and P￿pa￿Trents C•th•t bank•nd in hand NIAdepoat li LicfJ.111 L051763 I￿322 l874xe 13 15Z222 J17&554 UobllMI•• Crnditorn mo￿￿111rvJ within one >•ar 2￿203) ZX623 LOS1017 814,931 1437.Tr) 1625217 1437.M 3625217 Ilb•kndsof th• ch• Reicted FLY￿5 Unnpknctad Funds Pa¥Jrw• Gonernl ft￿Ne 16 16 16 2￿57r3 IBW286 LCAS925 ￿839 143La A61S125 Toknl¢h•amd• 3437.7Y) 1625217 The nol8s on poge$ 2010 32 lorm part ol these finoncld statemen15. Approved ¢Jn behalf ol Leeds Unrversity Urkn on the 16 December 2021 by.. Aysha BLrlon Chor Annabel Tonge Advtsory Twstee Company reglstrattin: 72847é8

Annual Report and Accounts for the year ended 31st July 2021

Leeds University Union

Leeds University Union

Statement of cash flows for year ending 31 July 2021

Note
Cash flows from operating activities:
Net cash provided by operating activities
19
Cash flows from investing activities:
Interest income
Purchase of tangible fixed assets
Purchase of intangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
Repayment of borrowing
Net cash used in financing activities
Increase/(decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
2020
£
£
352,466
(979,251)
248
3,797
(36,962)
(294,895)
(938)
(15,142)
(37,652)
(306,240)
-
-
-
-
314,814
(1,285,491)
1,874,508
3,159,999
2,189,322
1,874,508

The notes on pages 20 to 32 form part of these financial statements.

19

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

1 Accounting Policies

The Union’s Articles of governance require the Trustees to prepare accounts for each financial year. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial information.

(a) Accounting Convention

The company is limited by guarantee and has no share capital. It is registered as a charity under the Charities Act 2011 (registered charity number 1136742).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2015) – (charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

In considering whether or not there are any material uncertainties about the company’s ability to continue as a going concern, the Trustees have taken account of several key points:

After careful consideration of the above, the Trustees have concluded that there are no material uncertainties about the company’s ability to continue as a going concern.

(b) Incoming Resources

All income and capital resources are recognised in the accounts when it is probable that they will be received. Income is deferred only when the company has to fulfill conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period. Grant income is recognised in the year for which the award is made against the activity it is attributable to. The element of grant that has been received in advance has been treated as deferred income in line with the above policy. Rental income is recognised on a receivable basis. Investment income comprises interest received on cash balances. Revenue

from the sale of goods is recognised when the significant risks and rewards of ownership of the

20

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

1 Accounting Policies continued

goods have passed to the buyer, usually upon cash receipt at the point of sale. Revenue is measured at the fair value of the consideration received, excluding discounts and VAT.

(c) Resources Expended

Charitable expenditure comprises the direct and indirect costs of delivering the public benefit. It is accounted for on an accruals basis and is recognised when the liability is incurred. Overhead costs are apportioned to activities on a basis consistent with the use of the resources. Expenditure includes irrecoverable VAT. Governance costs include those costs incurred in defining the strategic direction of the charity in particular constitutional and statutory requirements. General support costs associated with the central functions of finance, IT and human resources have been allocated across the departments on a basis consistent with the use of those resources.

(d) Cash on hand and cash equivalents

Cash, for the purposes of the cash flow statement, comprises cash in hand and deposits repayable less overdrafts payable on demand. This includes cash held on behalf of LUU’s clubs and societies and the RAG society.

(e) Fixed Assets and Depreciation

Expenditure on individual capital items or groups of related items costing less than £1,000 are written off to the income and expenditure account in the year in which they occurred. Depreciation is provided to write off the cost less the estimated residual value of tangible fixed assets by equal installments over their estimated useful economic lives as follows:

Leasehold buildings 15 years
Leasehold Improvements 10 years
Fixtures, Fittings and other equipment 5 years
Computers and other IT equipment 4 years

Expenditure directly related to the build of new web sites is capitalised as an intangible asset. Amortisation is charged to the profit and loss on a straight-line basis over the useful lives of the intangible assets. Intangible assets are amortised from the date they are available for use. These assets are amortised over four years.

The company reviews the amortisation period and method when events and circumstances indicate that the useful life may have changed since the last reporting date. Intangible assets are tested for impairment in accordance with FRS 102 Section 27 Impairment of assets where there is an indication that an intangible asset may be impaired.

The building is leased from the University over a 15 year period, commencing on 16 September 2016.

21

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

1 Accounting Policies continued

(f) Leases

Operating lease rentals are charged to the profit and loss account on a straight-line basis over the period of the lease.

(g) Pension Costs

LUU participates in the University of Leeds Pensions and Assurance Scheme providing benefits based on final pensionable pay. The Union is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore accounts for the scheme as if it were a defined contribution scheme. LUU also participates in two defined contribution schemes. The amount charged to the income statement represents the contributions payable to the schemes in respect of the accounting year.

(h) Stock

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

(i) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amounts prepaid.

(j) Creditors

Creditors are recognised where the Company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured reliably. Creditors are recognised at their settlement amount.

(k) Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognized at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

(l) Fund Accounting

LUU administers and accounts for a number of charitable funds as follows:

22

Leeds University Union

Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

1 Accounting Policies continued

(m) Tax

LUU is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge has arisen in the year.

(n) Clubs and Society funds

LUU acts as custodian for the student clubs and societies, processing payments, processing receipts and holding the balance of their funds on their behalf.

2 Surplus for the financial year

The surplus for the financial year as shown in the statement of financial activities is stated after charging:

2021 2020
£ £
Auditor's remuneration - audit of these financial statements 12,876 12,360
Depreciation and amortisation on owned assets 462,413 532,237
Impairment of owned assets - 28,587
Operating lease rentals 369,155 369,153

3 Charitable and Other Activity Costs

Bars
Venues
Shops
Student Services
Student Advice
Student representation
Student Activities/Volunteering
Media Sales & Conferences
Total Costs		 Purchases
Staff
Support
Costs
Total
£
£
£
£
262,031
537,380
783,281
1,582,692
147,453
307,903
497,608
952,964
839,306
385,316
805,119
2,029,741
73,223
1,395,449
465,365
1,934,037
11,130
278,383
280,523
570,036
20,648
362,205
324,638
707,491
117,710
240,008
409,086
766,804
620
46,307
11,184
58,111
1,472,121
3,552,951
3,576,804
8,601,876

23

Annual Report and Accounts for the year ended 31st July 2021

Leeds University Union

Notes to the Accounts

4 Support Costs Included in Note 3

Bars
Venues
Shops
Student Services
Student Advice
Student representation
Student Activities/Volunteering
Media Sales & Conferences
Total Costs		 Use
Staff
Premises Marketing Governance
Other
Total
£
£
£
£
£
£
22%
388,680
256,201
8,834
3,278
126,288
783,281
14%
282,516
103,221
8,747
4,006
99,118
497,608
23%
414,830
217,494
9,534
2,914
160,347
805,119
13%
260,033
80,751
12,333
4,006
108,242
465,365
8%
179,478
21,838
6,297
3,278
69,632
280,523
9%
211,361
23,646
22,216
2,914
64,501
324,638
11%
256,424
42,218
6,385
4,735
99,324
409,086
0%
6,252
2,338
233
79
2,282
11,184		 Use
Staff
Premises Marketing Governance
Other
Total
£
£
£
£
£
£
22%
388,680
256,201
8,834
3,278
126,288
783,281
14%
282,516
103,221
8,747
4,006
99,118
497,608
23%
414,830
217,494
9,534
2,914
160,347
805,119
13%
260,033
80,751
12,333
4,006
108,242
465,365
8%
179,478
21,838
6,297
3,278
69,632
280,523
9%
211,361
23,646
22,216
2,914
64,501
324,638
11%
256,424
42,218
6,385
4,735
99,324
409,086
0%
6,252
2,338
233
79
2,282
11,184
100% 1,999,574
747,707
74,579
25,210
729,734
3,576,804
At beginning
of year
Incoming
resources
Outgoing
resources
At end of
year
£
£
£
£
2,810,286
37,900
(462,413)
2,385,773
808,839
8,376,549
(8,139,463)
1,045,925
3,619,125
8,414,449
(8,601,876)
3,431,698
At beginning
of year
Incoming
resources
Outgoing
resources
At end of
year
£
£
£
£
6,092
-
-
6,092
5 Unrestricted funds
General funds
Fixed assets and investments
Net current assets
6 Restricted funds
Net current assets

24

Leeds University Union

Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

7 Staff Costs
Wages and salaries
National Insurance
Pensions
Total Costs
The average staffing was as follows:
Monthly salaried staff
Weekly paid student staff		 2021
2020
£
£
5,059,052
6,068,529
300,565
330,169
192,908
227,350
5,552,525
6,626,048
2021
2020
145
170
254
282
399
452

During our busiest week of the year, we employed 442 students on a weekly paid contract.

The total salary of the Senior Leadership Team (SLT) was £485,000 in the year (£402,000 in 2020). The salary of the Chief Executive is determined by the People and Values Committee with reference to market salary levels. The salaries of the remainder of SLT are determined by the Chief Executive again with reference to market salary levels.

Three employees were paid more than £60,000 in salary and one participates in the University of Leeds Pensions and Assurance Scheme.

Salary Employees
£70,001 to £80,000 2
£90,001 to £100,000 1

Redundancy payments of £73,331 were made to 18 individuals during the year as a result of a voluntary redundancy scheme.

During the year a significant number of LUU staff were furloughed and claims for the salaries, employer’s pension contributions and employer’s National Insurance contributions of these staff were made in accordance with rules of the Coronavirus Job Retention Scheme introduced by the UK Government. The income received in this regard was £668,526 (2020 - £844,470) which was spent in full in the year, and both grant income and the associated staff costs are included within unrestricted transactions within the statement of financial activities.

25

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

8 Trustees Remuneration and Expenses

As well as having a role as a Trustee of LUU, the six Student Executive Officers perform a full time role for a year to be the voice of students. They listen to how students want things to be done, work with LUU staff, the Board of Trustees and partners to make it happen. They represent students to the University of Leeds, external organisations and the wider community.

Each of the Student Executive Officers was paid a salary of £19,406 during the year with a total cost to LUU of £147,731 (£133,513 in 2020) which includes national insurance and pension contributions. The level of salary is set out in their contract of employment.

Eight Trustees of the Board were reimbursed a total of £148 (£1,172 in 2020) for personal travel and subsistence expenses in performing their role as a Trustee.

9 Tangible fixed assets
Cost
Brought forward 1 Aug 20
Additions in the year
Disposals in the year
As at 31 July 2021
Depreciation
Brought forward 1 Aug 20
Charge for the year
Disposals in the year
As at 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Leasehold
Leasehold
Fixtures &
Equipment
Total
buildings improvements
fittings
£
£
£
£
£
3,535,056
1,795,563
1,154,506
1,093,861
7,578,986
-
-
11,843
25,119
36,962
-
-
-
-
-
3,535,056
1,795,563
1,166,349
1,118,980
7,615,948
1,690,488
1,546,150
777,319
787,219
4,801,176
165,696
54,879
117,151
114,142
451,868
-
-
-
-
1,856,184
1,601,029
894,470
901,361
5,253,044
1,678,872
194,534
271,879
217,619
2,362,904
1,844,568
249,413
377,187
306,642
2,777,810

26

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

10 Intangible fixed assets
Cost
Brought forward 1 Aug 20
Additions in the year
Impairments in the year
As at 31 July 2021
Depreciation
Brought forward 1 Aug 20
Charge for the year
Impairments in the year
As at 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 £
56,680
938
-
57,618
24,204
10,545
-
34,749
22,869
32,476
11 Debtors and prepayments
Trade debtors
Sundry debtors and prepayments
The University of Leeds
12 Cash at bank and in hand
LUU cash
Cash held on behalf of student clubs and societies
Cash from ticket sales held on behalf of event promoters		 2021
2020
£
£
120,091
96,513
210,163
318,157
778,857
639,093
1,109,111
1,053,763
2021
2020
£
£
1,052,991
764,878
1,081,610
1,047,413
54,721
62,217
2,189,322
1,874,508

13 Deposits

NUS Services Limited holds a deposit of £6,090 from the Union in respect of payment for monthly supplies of brewed and other products approximately equivalent to 0.3% of trading turnover.

27

Leeds University Union

Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

14 Creditors: amounts falling due within one year
Trade creditors
Sundry creditors, accruals and deferred income
Clubs and societies
The University of Leeds		 2021
2020
£
£
160,361
63,067
1,231,422
1,242,009
1,081,610
1,047,413
12,812
9,134
2,486,205
2,361,623
15 Capital commitments
The Union had the following commitments for capital works at 31 July:
Authorised and contracted		 2021
2020
£
£
7,444
6,000

16 Analysis of Net Assets Between Funds

16 Analysis of Net Assets Between Funds
Fixed Assets and Investments
Net Current Assets		 Unrestricted
Restricted
Total
Funds
Funds
£
£
£
2,385,773
-
2,385,773
1,045,925
6,092
1,052,017
3,431,698
6,092
3,437,790

Unrestricted funds are made up of the Fixed Assets Reserve of £2,385,773 (2020 - £2,810,286) and the balance remaining is the General Reserve of £1,045,925 (2020 - £808,839).

The Fixed Assets Reserve represents the balance of our fixed assets. The residual unrestricted funds represent the General Reserve of the charity.

The restricted funds are various small grants received to undertake specific projects such as helping our work in the Leeds community, and there have been no movements year on year.

28

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

17 Leasing Commitments

At 31st July, LUU had commitments under non-cancellable operating leases as follows:

Plant and Machinery
Operating leases payable within:
1 Year
2 to 5 Years
Building
Operating leases payable within:
1 Year
2 to 5 Years
Over 5 years		 2021
2020
£
£
3,585
3,585
1,899
5,485
418,001
418,001
1,672,004
1,672,004
2,141,539
2,559,540
4,237,028
4,658,615

18 Lessors

LUU has several leases with tenants with terms varying between 5 and 14 years. Rents are fixed for 5 years and most leases include a provision for five-yearly rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.

At 31st July, LUU had contracts with tenants for the following minimum lease payments:

1 Year
2 to 5 Years
Over 5 years		 2021
2020
£
£
107,890
95,202
384,012
343,725
180,016
262,814
671,918
701,741

29

Annual Report and Accounts for the year ended 31st July 2021

Leeds University Union

Notes to the Accounts

19 Reconciliation of net expenditure to net cash flow from operating activities

2021 2020
£ £
Net (expenditure) for the year (187,427) (294,688)
Adjustments for:
Depreciation and amortisation 462,413 532,237
Impairment of fixed assets - 28,587
Interest receivable from investments (248) (3,797)
Decrease/(increase) in stocks 8,494 2,129
(Increase)/decrease in debtors (55,348) (518,235)
(Decrease)/Increase in creditors 124,582 (725,484)
Net cash provided/(utilised) by operating activities 352,466 (979,251)
Net Debt
**1 August 2020 ** **Cash Flows ** **Other non-cash ** 31 July 2021
Movements
£ £ £ £
Cash at bank and in hand 1,874,508 314,814 - 2,189,322
Debt due within one year - - - -
Debt due after one year - - - -
Net funds 1,874,508 314,814 - 2,189,322

30

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

20 Prior year Statement of Financial Activities

Leeds University Union

Statement of financial activities for year ending 31 July 2020

Note
Income
Donations:
University Grant
Income from charitable activities:
Bars
Venues
Shops
Student Services
Student Advice funding
Student representation & affiliations
Student Activities/Volunteering funding
Other trading activities:
Rental Income
Media Sales & Conferences
Investment income
Coronavirus Job Retention Scheme Grant
Other income
Total
Expenditure
Expenditure on charitable activities:
Bars
Venues
Shops
Student Services
Student Advice
Student representation & affiliations
Student Activities/Volunteering
Media Sales & Conferences
Total
Net (expenditure)/income
2-8
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total Funds Total Funds
Funds
Funds
2020
2019
£
£
£
£
3,527,568
-
3,527,568
3,465,576
1,478,423
-
1,478,423
2,615,860
930,517
-
930,517
1,518,181
2,651,778
-
2,651,778
2,685,201
975,376
-
975,376
1,142,459
61,576
-
61,576
59,375
95,212
-
95,212
112,515
269,718
-
269,718
269,138
120,469
-
120,469
144,699
230,821
-
230,821
261,330
3,797
-
3,797
5,276
844,470
-
844,470
-
27,127
-
27,127
19,169
11,216,852
-
11,216,852
12,298,779
2,310,237
-
2,310,237
2,796,532
1,682,219
-
1,682,219
2,101,490
3,300,198
-
3,300,198
3,186,496
2,009,789
-
2,009,789
1,982,945
582,480
965
583,445
570,287
795,171
1,820
796,991
764,154
749,284
5,000
754,284
720,948
74,377
-
74,377
173,659
11,503,755
7,785
11,511,540
12,296,511
(286,903)
(7,785)
(294,688)
2,268
3,906,028
13,877
3,919,905
3,917,637
3,619,125
6,092
3,625,217
3,919,905

31

Leeds University Union Annual Report and Accounts for the year ended 31st July 2021

Notes to the Accounts

21 Pensions Costs

LUU has three separate pension arrangements. A defined benefit arrangement through the University of Leeds Pension and Assurance Scheme (PAS), which is closed to new entrants. The People’s Pension Scheme which is a defined contribution scheme managed by B&CE and provides flexibility for staff to make contributions with LUU matching them to a maximum of 6% of salary. The arrangement also provides a three times salary death in service benefit through a registered group life policy through UNUM. A third scheme, Nest, also a defined contribution scheme, has been used to auto enroll those staff eligible under the new legislation starting in November 2013.

For the defined contribution schemes the cost charge for the year represents contributions payable by the company to the schemes and amounted to £113,489 (2020: £92,274). Contributions amounting to £18,909 (2020: £10,351) were payable to the schemes and are included in creditors.

Members of staff who were already contributing into the PAS scheme were able to continue to do so. The assets of the scheme are held in separate trustee administered funds. PAS is a defined benefit scheme externally funded and valued by an actuary every three years. The rates of contribution payable are decided by the pension trustees based on the advice of the actuaries.

The triennial valuation dated 31 March 2020 showed that there was a deficit of £66.2m, equivalent to a funding level of 87%. Given the unusual market conditions prevailing in March 2020, a further valuation was carried out as at 31 March 2021. This valuation showed that there was a surplus of £24.2m, equivalent to a funding level of 105%. During the year the employer contribution rate was 16%, with the employee contribution rate at 7.5%, both unchanged from the previous year. The University continues to pay the annual PPF levy and the cost of any ill health early retirement benefit enhancements.

The assets of the PAS scheme are not separable and therefore the proportion of any surplus or deficit arising in the scheme cannot be attributed to members employed by the Union (either past or present). The Union accounts for the scheme as if it were a defined contribution scheme.

Employer contributions to these schemes are charged to the Income and Expenditure Account in the year in which they are paid and are included within the disclosure of individual activities in these accounts.

32