Leeds UnNersity Union Annual Report and Accounts for the year ended 31 Juty 2023 Leeds Universi Union A company limited by guarantee Trustees, re 31 UI 2023 ort and financial statements Company registered number 07284768 Charity registration number 1136742 Leeds Unwer5ity Union Annual Report and Accounts for the year ended 31 July 2023 Contents Administrative Infomiation Trustees, Report Ststement of tru5tees' responslbilltle5 16 Independent audltorfs rewt to the members Leeds University Union Statement offinancial artivities for the year endirva 31 July 2023 Balance Sheet at 31 July 2023 17 21. 23 Statement of cash flows for the year endlng 31 July 2023 Notes to the Accounts 24 Leeds UnOveT5ity Union Annual Report and Accounts for the year ended 31 July 2023 Admlnlstratlve Infonnatlon CharIta￿e Status Leeds University Union fLuifJ is a company limited by guarantee registered in England and Wales (company number 072847681 which was incorporated on 15June 2010. LUU was formalty reglstered as a charty with the Charity Commlsslon in July 2010 Ire&"stration number 1136742}. Prlnclpal Address The registered and prInCi￿ offlce Is Leeds Unlverslty un￿ft. Llfton Place, Leeds, L52 9JZ. The Board of Trustees The Directors of LUU are its Trustees for the purposes of Charlty Law and throughout thls report are cdlectlvety referred to as the Trustees. The Trustees serving during the year and SIn￿ the year end are as follows: Student ExeoJtt¥e Officers and Trustees To 30.0&23 Union AffaSrs & Communications Offlcer (Chalr) Maria Papageorglou Artivities & Opportunlts'e5 Officer Ella Willlams Education Officer Bethan Corner Equallty & Llberation Offlcer Harya￿ Mohammed International & Postgraduate Offlcer cky Zhou Wellbeing Officer Emity Tabern Union Affalrs & Communlcation5 Offlcer Ichalr) Actlvities & Opportunltles Offlcer Educatlon Officer Equalbty & Llberatlon Officer Internatlonal & Postgraduate Officer Wellbeing Officer From 01.07.23 EmltyTabern Ella Williams 8ethan Corner Haryati Mohammed msha Khan Hannah Catterall Sbjdent Trustee5 Nicolas Padula Plnho {from 23.03.231 Michael Mberi Penelope Mllner (to 07.07.231 Natalja Nassonova {to 06.07.23) Rani Alami (to 31.12.22) ElSzabeth Wright Ifrom 07.07.231 Shmuel Von Welsl lfrom 07.07231 Extemal Trustees Josh Smtth Neil aephan Annabel Tonge Darnola Timeyln Leeds UnNorsity Union Annual Report and Accounts for the year ended 31 Juty 2023 Auditor Saffery LLP Mitre House North Park Road Bank U¢)yds TSB Bank PLC &7 Park Row Leeds Harrogate. HG1 5RX L51 SJD LUU employs a Chief Executive, ￿dan Grill& who works closely with the Student ExecutNe Officers and Trustee Board to ensure effertive governance and management of the organisation. The Chief Executlve is head of a Senior Leadership Team made up of. Hannah Brian (Deputy Chlef Exe(utive Student Engagemeno un￿1 06.01.23 Suè Stones (Deputy Chief Executive Opera￿ons) Rachel Emrnott (Dirertor of Flnance & Risk} with effert from 03.10.22 Jasper Hegarty-Ditton {Director of Digitsl and Datal Rorl Raqulb (Dlrector of Communication51 with effert from 22.08.22 (new p05tl Antonla Frezza (Dlrector of People and Qualltyl who. after taklng up a onewear sabbatlcal from 26.08.22 did not return to P05t Harpreet Slngh (Dlrector of People and Quality) effect from 29.08.22 untll 30.08.23 Douglas Muzawa21 IDlrett¢y of Student Commun5tles. new po#1 wlth effett from 01.07.23 In response to changlng student nèeds and the challenglng ènvlronmen¢ ovèr thè Course of the year LUU made some structural changes to the make-up of the Senior Leadershlp Team. The updated 5trutture Is de51gned to algn the 2022-26 Strategy and. followlng the departure of the Deputy Chlef Executlve Student Enga8emen¢ Include5 a newty created post: Dlrector of Student Communltles. Leeds Universty Union Annual Reporr and A(ciJunts for the year ended 31 July 2023 Trusteeg Reptr( The Board of Trustees. who art as Dlrectors for the purposes of Company Law. present their Annual Report for the year ended 31 Juty 2023 wthlch Includes the administratfve information set out on page 2. the Strategic Report and Olrettor< Report for C¢)mpanies Act 2¢X16 purposes. and the audited accounts for the year. Structur4 governance and mana8ement The primary alm of LUU is the a(fvancement of education ofstudents at The University of Leeds for the publlc benefit. The governance of LUU Is d¢xumented in its Artlcles ofAssoclation and its Byfrlaws, which can be found on the LUU website (NwM.luu.org.uk). The 8oard of Trustees Is responslble for the strateglc directlon. 8overnance and sustainability of LUU. The Board is made up of six Student ExecutNe Officers. four Student Trustees and four External Trustees. The Student E¥ecutive Officers are elected through a secret ballot by the members each year. nomialty servln8 fi>r one year In ¢)fflce but can serve a second term ￿ re- elected. The four Student Trustees are recrulted io ihe 8oard and are recommended to the Board by an appointments panel. The Student Trustee5 Serve for a term of up to two years and a maxlmum of two terms as long as they remaln reglstered students at the Unlversty of Leed5. The E￿ernal Trustees are reCr￿lled to the Board to brlng a wlder perspe(tlve and Skill Sec from Outside of LUU. A term for Extemal Trustees lasts for up to four years and they can also serve for two terms. Upon appointrnent all trustees recelve a varSety of Informatlon through their Inductlon. Trusteès a brlefed on thelr legal obli8atlons and other trustee responsibilities. All trustees meet with the Chief Executive before thelr first meeting and receNe an Inductyon infomation pack which Includes their role responslbllltles, historlcal and current Information about LUU and Infomiation on Its Strateglc Plan. The trustee Indurtion is framed ar￿nd the prlnciples of the NCVO Charity Governance Code, Every year the Board of Trustees completes a skllls aud1¢ and new tnjstees J150 do thls durlng Inducdon. Trustees also take part in Peer Assessments perlodicalty. in line wlth thelr term of appointment- within the year. a Tripartite Board Effettfveness Review was undertaken In collaboration with Kent studen￿ Unlon and Blrmlngham Gulld of Students. The Student Executive Officers are newto the Board everyyear. so they undergo a more intensive training perlod. This tralning start5 after they are eletted. and before they start their term of offlce to ensure that they are fully aware of their roles and responsibilitie5 and can perform their duties to the best of their abllitles as soon as possible. They attend tralnlng sessions on the history of g¢)vernance at LUU. their legal responslbllmes as trustees, briefing se551ons on key issues and decisions that have been made by the Board of TTUStees and rece￿ training on how to deal %•Ath potentlal conflicts of interest. This year, four of the Student Executive Officers were re-elected to a position in the team, which imparted the training design for the team overall. Leeds UnNersity Union Annual Report and Accounts for the year ended 31 Juty 2023 The Board ofTru5tees is supported by five Su￿comMittees, which meetthree to four time5 a year and focus on certsin key aspects of WLfs governance and managemeni whith are.. The Audlt & Rt5k CommSttee monltors LUU'S rlsk profile. health & safety. rlsk managemen( compllance ￿th relevant leglslatlon and other matters which could Impact on LULfs future health. The Commiitee revieYd5 and comrnissions internal audit work and scnJtini5e5 the annual account5 at ajolnt meetlng vAth the Flnance Commlttee. The Flnance Committee monitors LUU'S flnanoal perforrnance. apprat5es requests for capitsl expendlture and revlews our commerclal strategy. The Commlttee also re￿ewS the annual budget nd scrutinizes the annual accounts in a jolnt meetlng with the Audit & ￿'Sk Committee. The People and Value5 Commlttee examlne5 i55ue5 relatin8 to LUU workforce including staff policles, changes to pay land speclfl(alty that of the Chlef Executlve}. tralnln8 and development and volunteerln& The Appolntments and Gr￿e￿nce Comrnlttee is responslble fof monltorlng and contlnuous Improvement in governance arrangements at LUU. The Committee ensures that new trustees are recrulted, Inducted and developed property and It a150 has overall responslblllty for recrultlng the Chlef Executlve. Tr* En8agement ar￿ De￿I0￿￿nt Commlttee examlnes our approach to member engagemenL Induding through marketlng and communicatlons, external partnershlps and through LUU member- focused aCtI￿tle LUU operates on democratlc principles. with Policy belng acted upon ty the slx elected officers who form the Student Executlve. Durlng the year members have the opportunty to bring forward ideas to one of three Union Forums to help form Poliry on issues which contribute to Trtter Leeds". -8etter Unfversiv or'Better Union". Forums are based on the principles of deliberatSve and dlrect democracy wlth pollcy being voted for approval by a randomty selerted Student Panel of 16 students, and Issues that are contentlou% or don't have a majorityvote. are referred to Referendum. The Student Panel 15 demographicalty representatNe of the LÈed5 University student body as outllned In Luifs 8ye-Law5. The Senlor ieadersNp Team The Chlef Executfve Is supported ty slx permanent senlor executfve officers that together forrn the senior Leadership Team {SLT). This team prowdes the strategic management of LUU, managlng Its operatlons. glvlng leadershlp to ￿ staff and ensurlng that the board and Its sutKommittees are kept fully Informed on all aspects of the organlsation and are regarded as being the key management personnel of the charty outside of the trustees. Leed5 Unrversity Union Annual Report and Accounts for rhe year ended 31 Juty 2023 Relattonshlp wilh the Unherslty of Leeds Under the Educatlon Art 1994, the UnNersity of Leeds has a ststutory duty to take such steps as are reasonab￿ practTrcable to ensure that the Union operates In a falr and democratic manner and Is held to proper account for its finances. LUU therefore work5 alongslde the Unrverslty 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 meL The formal relationship wlth the Unfver51ty is governed by a Code of Prartlce and LUU works closety with the Unfverslty and its Students to develop appropriate Bye-Laws for its working practices. The Unlverslty of Leeds is not a related party a5 defined by the Charltles FRS 102 Ststement of Recommended Prartlce ISORPI. ms. ObletlTrfts and AdI￿5e$ The prlmary aim of LUU Is the advancement of education of students at The University of Leeds for the public benefit. LUU achleves thls through- promotlng the interests and welfare of students at the Unfversty of Leeds durin8 their course of s￿(ty and representln& supponin8 and adwsing students.. being the recogn15ed representatlve channel between Students and the Unlverslty of Leeds and any other external bodies,. and provldlng social. cultural, sportÈng and recrea￿onal actlvltles and forums for dlscus5ions and debate for the personal development of students. At all tlmes the trustees of LUV have had regard to the Charlty Comm155lon guldance on publlc benefft. Wh115t pursuSng our aims and objectlves and pro%rydlng varlous actmties for its members LUU Seeks at all time5 to: ensure that the dp4prsity of Its membership is recognlsed and that equal access Is avallable to all members of whatever orl8ln or orlentatlon: pursue its aims and objertives Independent of any political party or rellgious group,. and pursue èqual opportunities by taking p051twe artion wlthln rhe law to facllitate paruclpatlon of groups dlscrlmlnated against by society- LUU provldes a varlety of seThices and activitles for swdents IndudlnK. Advlce Centre- we continue to prcmde a speclallst Se￿(e to cyjr rnember5 In the areas of housOn& money and academic Issues. We have supported many stydents with complex needs such as domestic violence and rnental ilthealth with partners in the University and the clty. The number of enquiries to our Aifvice service was 26.757 this year. compared to 21517 enquiries in the previous year. The team employ a service model using the LUU fwr. wth an Integrated information and advisory sefmce. which helps to manage the Advice Team's capacity a5 enquiries can be resolved 0n-th￿ay. The fvll range of servkes can be prowded remotely. in¢ludin8 one-to- one 5UPPOrt for complex cases. Attivities- a choice of over 380 clLtbs and s(Kietie5 Offer a dNersity of opportunities for Social and skiU5 development. There were 33.994 dub and society membershlps sold durln8 Leed5 University Union Annual Report and Accounts for the year ended 31 Juty 2023 the year, (iown from 38.586 last year. We run a"GNe it a Go- programme that provides taster sessions to give students an insight into the range of a(tivltles avallable to them, as well as trbps to many locatlons In the UK. We also support student-led volunteerin& facilitating a wide variety of community volunteering opportunities. The Student Actiwties team is made up of staff and students, and alw provides supporL advice and help with the safe running of activities e5pecialty around health and safety. reCrulin￿nt communication. delivery and finance including fundrai&ng ènd developmenL Joblink- we continued to prowde part4ime work for Students and dellvered an employablllty prograinme that provlded guidance to several thousand students. Over the year we paid £1,614k In wages to students through ourJobLink agency. up on the prevlous year1£1.569kl. Community Engagement- our team continue to manage and develop a range of community-based initiatives includlng housing falrs and Iltter plcklng. Partners In thls work Include othèr HE and FE institutlons In Leeds. Unipol Student Homes and Leeds City Councll. Campalgnlng and Representation- we contlnue to support students in campalgnlng for change on campus and in the city. We contlnued our support for school and course reps with tralnlng 1nrtlat￿es and undertook to help students partner ￿rfth thelr Unlverslty to Innovate and Improve thelr education experlence. The number of students voting in the LeadLUU this year was 3.865. a redurtlon of 26% compared to the previous year. but equlvalent to 11% of the total student populatlon. There were 36 candldète5 In totsl. We are conducting a study of nationwde democratic engagement to understand how we can improve democratic participation and raise the profile of democratic engagement at LUU, Including guidance from our subcornrnittee5. Bars and Venues- a choice of fNe barslcafes are open during the day and evening- Terrace, .Old Bar, Cornmon Ground. Scream and Balcony Café all with caterin8 and non-alcohollc beverages. Balcony Café was closed in December 2023 and options are belng considered for use of the space. Our nlght-tlme Ilcensed venue. Stylus, provldes popular late.night entertainment V￿th regular live music. Events- thls team provides the live muslc and DJS for our venues, worklng wlth external promoters to host events In our venues. We akso stage the Fresherfs & Welcome events and Leeds Ball on the slte of the Unlversity (ampv& which attracts around 3.700 students. Shops- operated by LUU are c￿0p {convenlence store operated under a franchise agreement wlth COVOPI, Gear (University branded clothing) and Union Shop15tatlonery and cards). Operated through a tenancy arrangement are Wakl Makl Ihot take away food}. Humpit {healthy takeaway food). Cooplands (take away food) and Pearls Bubble Tea. In 2022-23. LUU entered a tenancy agreement with Cantina (Vegan junk food) and the tenancy agreement for Bayfield¥ Optlclans ended on 31 stjuty 2023 (the Unlt had ceased tradin8 from 6th May 20221. A new outleL Tantino {Italian tak￿maY food) opened in September 2023 under a tenancy agreement Fundrai5ing- LUU does not undertake fundraising from the public and does not tjse professlonal fundraisers. As such no complaints procedures or further policie5 in this area are considered necessary. It does hold some events for its students that are deslgned to Leed5 University Union Annual Report and Accounts for the year ended 31 Juty 2023 raise funds to support the student semce artivities undertaken by LUU, notably the Leed5 Ball held injune each year. Strat￿C Report Athlevements and Perforni￿Ce In 2022 LUU launched a new strategic Plan for 2022-26 informed by a period of Consulta￿0￿ with students and other key Stakeh￿ders, including the University of Leeds. This Strategy 15 focused on our or8anisation vision Together we11 make sure you love your tlme at Leedg. and is based around achlevlng three COTe. measurable Strategic Impacts for students: Fuellin8 your passlons Inspirlng you to be your best sell Creating a celebrated. fun and Iwety communlty you can be proud to be a part of In order to achleve these Impacts, a 5erles of key strategic Outcomes were Identified for students and forming the key focus of projert worK these being: Galnlng new skills and being more employable.. Belng more educated and informed,. Belng produrtive and sawng time and money, Havlng less stress and Improved mentsl health; Being in a good, or better mood.. Being fltter and heafthler,. Feelsng safe and 5UPPQrted,' More friends and a wider soclal neThYorK"feelins like you bel¢)n Being more confident and feellng empov**red. These strategic outcomes. vthich were artlculated uslng analysls of large-scale student feedbacl are the targeted outcomes of the services LUU offers to Studen￿ These services can be defined as LUU'S organisational Outputs.. Clubs and Societs'es Building Operatlons- HÈlp & Support; Represèntatlon & Campalgnln& StudentJobs,- and Events. Strateglc projerts to Improve LUU'S Outcomes are therefore linked with the corresponding Outputs to aid the focus of targeted service developments. These projects must also account to LUU'S strateglc Design Prlnclples, whlch state that they must be Incluslve, Student-Led. Data DriveTr. and Climate Friendty. Leeds Unfversity Union Annual Report and Accounts for the year ended 31 Juty 2023 Luu's Strategy Map" outlining our 2022-26 Stratesy. f u• r4 Togcfher, well make sure you love your time ,It l.ccds Ji IP L••d8 UHI• ¢• Leed5 Unr¥ersity Union Annual Report and Accounts for the year ended 31 Juty 2023 The Strateglc Impacts and key successes during the year, assessed against the 2022-26 plan, were as follow5-. Strate clrn Fuelllngyourpasslons Successes Employment of over 3.800 students through the year. prSmarily through the Joblink service. Contlnued successful rollout of the Love to Learn system, delbverlng bespoke training modules for both staff and volunteer5. Gaining new skills and belng more employable Being more educated and Informed Bein8 produrtive and savlng time and money Insplrfn¥you to beyourbestsem Succe55ful dellvery of a Varsty programme In collaboratlon wlth Leeds Beckett SU. Delivery of an In-person award show programme show in term three, wfth hundreds of member5 able to partlcipate In the celebration both onllne and In erson. Posltfve feedback on Customer Experience throughout LUU oudets. Contlnuèd strong membershlp sales for Club5 & Soclètlès. Development of a new Membershlp System enabling students to use a dedicated system, Engage, to run and track elertions and events. Organisational attainment of the Leaders in Diversity Award. Having less Stre55 and Improved mental health 8eing in a 8ood. or better mood Bein8 filler and healthler Creattnga celebrated¢ommunlty Feellng safe and supported More frlends and a wider social neNvork. feeling Ilke you belong Being more confident and feeling empowered Quallty Management LUU uses a number of èxtèrnal tools for quality assurance which Ilnk to the prlorlties and rlsks lald out in our strategic plan. In 2023. LUU was rL4ccrÈdited under the Quality Sfudents. Unlons {QSUI standard and was proud to have achieved Ihe"Excellenf level In each of the 12 areas of organisatlonal performance. This year LUU continues to hold accreditation under the Alcohol Impact scheme under the expanded Drug & hjcohol Impart pllot and has once agaln been accredited at the highest P055ible level under both the SO>UK Green Impact Award and the national Best Bar None scheme, In which LUU were the National Winners for 2022. In Au8USt 2023 LUU was accredlted as a Leaderln DNeThtywith the National Centre for Diversity. io Leeds University Union Annual Report and Accounts for the year ended 31 Juty 2023 Financial Revlew This year LUU ha5 reported an overall deficit of £19k. This comprises a deficit In unrestrlcted funds of £72k and a surplv5 on restricted funds of £53k. It compaFes to a surplus of £53k in the previous year, whlch was all In unrestrirted fund% 2022-23 proved to be a very challen￿ng year acro55 LUU. with many factor5 gutside of our control havlng slgnlfl(ant financlal impact The maln challenges Included.. Utilities costs lelectricty. steam and waterl Increaslng by more than double. from £128k in 2021-22 to £325k In 2022-23. These costs are charged to LUU by the Unfverslty of Leeds and absorbed Into our operating costs. The increase in the National Minimurn Wage (NMW) by 9.6% in April 2023. which was 4.6% hlgher than the value included In budget and which had an estimated £26k impact over the last 4 months of the year. Over the period from April 2022 to April 2024, we estimate that the NLW Increases will have added £398k to LUU'S cost base. The knockryon impart of the increase in the NMW on some of our pay-grades and thelr a550ciated rate5 of pay, In order to malntaln adequate levels of senlorlty and segregatlon amongst the team. The irnpart of high Snflatlon and the cost of IMn8 crtsis. putting pressure on our entlre cost base. In an attempt to asslst our monthty-pald staff through thls perlod, we made a 3% award In Decembèr 2022 and a One￿ff. non-consolldated award of £400 to each ellglble monthty-paid staff member in january 2023. The c05t of these awards to LUU was £155k. All other cost* includlng dlrert costs and support costs, were under inflats'onary pressure. Our buslne55 model Is such thai we absorb these increases on support costs and are Ilmlted In passlng on dlrect costs to students because ¢)ur prlorlty Is to ensure our services are affordable. We sought to malntaln maTglns Yéhefe possible, without ¢ompromi5in8 quallty. The cost of Ilving crisis meant that our customers {the majority of whlch are students) had less money to spend In our outlets. lknr recent years there has been a marked shift in student spendlng habits. and in campus dynamlcs. Ourlng 2022-23 the majority of exams were held remotety, as they had In thè previous 2-3 years. That meant that many students returned home to study and Complete their exams negatrvety affertlng footfall on carnpus and therefore the tumover in our cornmercial outlets. Our Event5 and Venues buslness suffered from multiple cancellations during the year. 2021- 22 was deemed to be a Covid-19 trecOVe￿ year for this income stream, so we had budgeted an Increase for 2022-23. However, income actualty fell from £1.7m to £1.3m. In response to the above, LUU took some difficult decisions during the year: Increased controls around recruitment. to slow down the process and make targeted savings. Put a stop on all but essential spend acr¢)ss LUU. A pause on planned capltal expendlture for half of the year. A restrurturing of the Senior Leadership Team to align wlth LUU'S new strategy. Redesignation of restritted to unrestrirted ftjnding from the University of Leeds. li Leeds Untversity Union Annual ReF)orr and Accounts for the year ended 31 Juty 2023 Despite the challenges, we had successe We have contlnued to receive the full block grant from the UnNersity of Leeds as per the ongoing fvnding arrangement vrrith £4.04m received In the year12022.' £3.91 m). The block grant is subject to a 4% annual Inflationary increase. £560k was allocated from the Universtys strateglc development fvnd for 4 years cornmenclng 2022-23 lan Increase on previous years vthich was £260k annual￿}. The Unlvèrsity restricted £380k of thls funding for Impact Projert5, which we expended on student educatlon. agreed actiwty In postgraduate research, student representation, Internalional student engagement and student attalnmenL Opportunities and well.belng. A balance of £53k was committed but unspent at the end of theyear and is carried forward thln restrirted fijrmls. The remainin8 fvnding was unrestrlcted In nature and has been Used to meet some of the challenges outllned above. We have the agreement of the University to continue to apply this split of restrictedlunrestrlcted funds to the end of 202> 26 and to condense the Impact Funding projects into three key areas: Students as Partner5. Student Opportunitles, and Wellbeing & Student Success. This year has seen an Increase In Student Se￿(e5 Income to £2.23m12022.' £2.06ml, Including Impact Fundin& with £1.90m belng generated ty ourjoblink a8ency. Student Attlvlties Income increased from É107k to £202k. The measures Implemented Ir¢ response to the finandal challengès meant that we were able to retum a deficit of lust £72K V•thich Is lower than rhe budgeted deficit1£335kl and lower than our forecast deflcit1£399k at Q1. down to £146k by 031. Our Balance Sheet remalns comparatlvety strong wlth totsl net assets of £3.5m1£3.5m in 20221. and cash balance of £2.Om1£2.Om in 20221. The cash balance comprises £1.08m of LUU cash, £0.91 m of cash held on behalf of student clubs and societie5 and £0.04m from ticket sales held on behalf of event promoters. Our unrestrlctÈd funds Stood at £3.4m *ith a further £6Qkof re5trlcted funds. Our genèral rèsefft is £1.015k at the year erKI. The free reserves of the charity are the unrestricted reserves less those funds deslgnated for future projects and the fixed asset reserve. We rÈvwd our reseryes pollcy In 2022-23, so that ￿ the target level for free reserves is calculated as the costs which the charity would be requlred to meet In the event that all of its operation5 ceased and there was no Income to cover those costs. The minimum target level Is calculated wlth reference to average Salary. wage5 ond other costs apportloned on the basls of liability risk. The calculated free reserves target level at the end of 2022-23 wa5 £665k Our free rèserves are £1.015k12022.' £1285kl and are therefore comfortabty above the target level. Thls headroom Is deemed appropriate gwen the volatility of the current economlc climate. Additionalty. over the next 2-5 years significant investment NMII be requlred Into LUIYS Infrastrucrure and Iherefore it is deemed appropriate that reseNes are held at above the minimum target level, so that they may be used to enable that investment in future years. 12 Leeds University Union Annual Report and Accounts for the year ende(131 Juty 2023 The minlmum target will be recalculated annualty. In conjunction budget setting. and reported to the Finance Committee to approve as the target reserves balance for the following year on beha of the Board of TnJstees. Any reserves in excess of this minirnum target will be considered to be retained as contin8ency funds or may be designated for future strategic projects. The tharity will not unduty hold reserve5 at an excess level. The fixed asset reserve is not included within free reserves. Where applicabl¢ LUU will èlso hold restrirted fvnds and these mlght include multl-year restricted project Costs. The authorlty to use funds whlch would take the level below the minimum target wlll tontlnue to be managed through the existing Financial Procedures and Terms of Reference for the Finance and Audit & Risk Committees. Any request to Use reserves wlll Indude an anatysis and determination of the use of the fund5 and plans for replenishment. G(Ang Concern The ongolng financSal 5UPPQrt from the Unfverslty of Leeds enables LUU to sustain its activities and provide for the student experience. Slgnfficant additional cash was provided during the Covld-19 pandemlc. The UnlvÈrsSty has pledged to continue to support LUU Into the fijture and from 2022-23 the strateglc development fun(i has been increased from £260kfyear to £560klyear, of which £380k Is restricted and £180k Is unrestricted. LUU is grateful.to the Universty of Leed5 for thls SUPPOrt for whlch It Is rellant to enable it to meet its objects. When considered alongslde a strong cash posltlon and free reserves levels, this relationship pro￿deS comfort to the Trustees over 8oing concern. Although the external fartors referenced above mean there are uncertainties around the ablllty to generate commerclal income and pressure5 on costs. LUU VAII contlnue to èndeavour to mltlgate the impact of these through agile financial managemenL induding regular cashflow forecast updates and by contlnulng to work dosely the University of Leeds. Rlsk Management arKI Control The strateglc rlsk register of LUU recèives regular update5 vthlch are consldered by the Audlt and Risk Cornmittee ot each meetlng a review by the board on an annual basls. Operatlonal rlsks are managed at a team level wlth mitlgations controlled through operational plannlng. The key rlsks faced by the charity revofve around its reputstion both the Universlty of Leeds and our student members. The Unlwerslty is a slgnlficant fijnder of the charity and we work In partnership with the Un6verslty to dellver èver Improvlng Services for the students. The relatlon5hlp15 malntalne¢J by developlng close working relationships witt) senlor member5 of the Unlver5tty team ty our trustees, partlcularly the elected student eXecut￿e. and by the Senior Leadership Team. To meet our alms, the students need to be well represented and supported by LUU. We invest in representatlon and democracy teams to ensure that engagement with students is effectfve and any potential risk in this area Is mftlgated. The Strategic Rlsk Reslster was revlewed In Ilne with the new Strategic Plan during the year. LUU appolnts internal auditors. RSM. who undertook followwup audits of commercial income and external speaker policy during the year. as well as conducting continuous assurance work on key Leeds univers.ity Union Annual Report and Accounts for the year ended 31 Juty 2023 oversee the implementation of the key recommendations from the audit artivity. reporring to the LUU Audft & Rlsk SubcommlttÈe. The Unlon also faces on%olng flnancial and control risks which are mitigated through a robust budget management process and comprehenswe data protection policies supported by training. LUU also invests In Internal audrt services supported by thorough follow-up on proposed actions by Senior managers and monitored VFa the Audit and Rlsk Committee. FU￿re plans Going into the s￿Ond year of the 2022-2026 strate￿ we'plan to contsnue work on Some core strate8ic projects to align work ￿th thls new strategic mandate. A series of Supponing Strate8ies have been developed which help to frame strategic projert work making tar8eted developments to achleve LUU5 identlfled S¢xlal Outcomes. These Supportlng Strategles are spllt into eight areas for the Strateglc Impacts and five operational areès- Strategic Impa(t - Fuelling your passions Strategic Impart- Insplring you to be your best self.. Strateglc Impart- Creatin8 a celebrated. fun and INety community,. People & EDI: Flnance & RisL' Marketing & Communicatlons: Data & Di8ital: Bullding & Sustainabllty. Supportlng Strategies are comprlsed of 6- and 12.month prolert sprints, whlch allows senlor management and stakeholders to regulady review and adjust projects as necessary and dirert resources to where they are m05t needed. A key focu5 for strategic work in the next year wlll be partnership work. A series of Impact Fundèd Projects have been developed In areas of key partnershlp between LUV and the University of Leeds.. Students as Partners, Student Opportunities. and Wellbeing & Student Success. We wlll spend this second year of the strate8y refining our strateglc projett work through the supporting strategles. working c105ety with the University on key areas of pannership, developing the measurernents of our strategic perfomiance. and IdentJ￿.n8 and prioriti2ing kty issue5 impactlng students. Custodlan kU¥ltle5- (￿b5 and Sodeues and RAG LUU acts as custodian for fund5 r￿Sed by the studentg many clubs and sodetbes and these funds are separately identified In the accounts. £2.4m was handled by LUU during the year wlth a balance of £0.9m remaining at the end of the year. This include5 the annual RAG pr¢xeeds from fundraislng events that are distributed to trs intended charitfies. The RAG proceeds came to £23k in the year and £30k was held at the end of the year. 14 Leeds UniveT5ty Union Annual Report and Accounts for the year ended 31 Juty 2023 We wish to thank all Staff at LUV for their continued commitment and hard work to make this another 5u¢ce55ful year at LUU. Audltor In accordance wlth sectlon 487 of the Companles Act 2006, a resolutlon for the reappointment of Saffery LLP as auditor of the company Is to be proposed at the relevant Board of Trustees Meetlng on an annual ba51s. Thls Trustees. report Icomprlslng the Strateglc Report and the Dlrecrors Reponl wa5 approved by the Trustees and slgned on their behalf. EmltyTabern Chalr Ann•bel Tor 14 December2023 Leeds University Union Unlverslty Square Leeds LS2 9JZ 15 Leed5 UnIver￿ty Unlon Annual Report and Accounts for the year ended 31 Juty2023 Statement of trusteeg reSPon￿bIlItIeS The trustees (who are also dirertors of Leeds University Union for the purposes of company lawl are responsible for preparlng the Trusteeg Report and the financlal statements in accordance wlth applicable law and United Kingdom Accounting Standards (United Kingdorn Gènèrally kcepted Atcounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair vlew of the stste of affalrs of the charltable company and of the incomlng resources and appllcatlon of rescmjrces. Indudlng the Income and expenditure, of the charitable cornpany for that period. In preparlng these finan(ial statement% the trustees are requbred to: select 5uitsble accounting policles and then appty them conslstently observe the methods and principles in the Charities SORP IFRS 102) make lud8ements and estlmatÈs that are reasonable and prudent • state whether appllcable accounting Standards have bèèn followed, subJe(t to any material departures disclosed and explaSned in the financial ststements and prepare the financSal statements on the going concern ba515 unless It Is Inapproprlate to prèsume that the charty wlll contlnue In bu5ines5. The trustees are responslble for keèpSng prcper accounting records that dlsclose with reasonable accuracy at any tlme the financial posltton of the charlfable company and enable them to ensure that the flnanclal statements comply with the Companies Act 2￿6, They are also responsible for safeguardlng the assets of the charitable company and hence for tskin8 reasonable steps for the preventlon and detection of fraud and other IrregUlari￿t$. In 50 far a5 the trustees are aware: there is no relevant aud￿ Informatlon of which the charltable companys auditor Is unaware and • the trustees have tsken all steps that they ought to have takèn to rnake theMSe￿e$ aware of.any relevant audit Information and to e5tsblish that the audltor Is aware of that information. The trustees are responslble for the malntenance and Integrty of the corporate and financial inforrnation included on the charitable compatys website. Legislation in the UnTted Kingdom governing the reparation and dis5ernination of flnancial statements may differ from legislation in otherlurlsdirtions. 16 Leeds University Union Annual Report and Accounrs for the year ended 31 July 2023 Leeds Unfverslty Unlon Independent audriofs reportto the members O&wnion We have audited the financial statements of Leeds Universty Union for the year ended 31 July 2023 which comprise the statement of financial aciNities. balance sheet and cash flow sratement and notes to the financial statements. Including significant accountlng polloes. The flnancial reporting framework that has been applied in thelr p￿parats"on is applicable law and United Klrhgdom Accountin8 Standards, including Financial Reporting Standard 102. the Flnanclal Reportlng Standard pplicable in the UK and Republic of Ireland Iunlted Klngdom Generalty Accepted Accounting Prartlcel. In our oplnlon the flnanclal statements: glve a true and falr vlew of the charltable CoMpan￿S state of affairs as at 31 July 2023 and of Its Incomlng rèsources and appllcation of resour￿, indudlng its IncOff￿ and expenditure, for the year then ended have been property prepared In accordance vlth Unlted Klngdom Generalty Accepted Accountlng Practlce. and have been prepared in accordance with the Companles Art 21XJ6. Basls for oplnlon We condutted our audit In acf ordance Trmth International Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those 5tandard5 are further descrlbed In the Auditorfs . responsibilities for the audit of the financlal ststementS 5edon of our report. We are Independent of the charitable company in accordance with the ethical requirements that are relevant to our audlt of the financial statements in the UK including the FRC5 Ethical Standard, and we have fulfilled our other ethlcal responslbllltles In accordance wrth these requirements. WÈ believe that the audit dence we have obtained is sufficient and appropriate to provide a basis for our oplnion. Concluslons relatlng to gdnz concem In audltlng the financlal statements. we concluded that the trusteeg use of the goin8 concern basls of accounting in the preparation of the finanoal statements is appropriate. Based on the work we have performed. we hove not Identffled any matemal uncertaintles relating to events or conditions thaL indlv1dua1￿ or collertfvely. may cast slgnlficant doubt on the charitable company's abllsty to contlnue as a going concem for a period of at least tsvelve months from when the financial statements are authorised for issue. Our responslbblltles and the responslbllotbes of the trustees respect to golng concem are described in the relevant sertions of this report. Other Informatlon The trustees are responslble for the other Information. The other information comprlses the information induded in the annual rep(rt other than the financial statements and our auditorfs 17 Leeds unive￿Ity Union Annual Report and Accounts for the year ended 31 Juty 2023 report thereon. Our tipinion on the financial statements does not cover the other information and, except to the extent otherwAse explicity ststed in our repori we do not express any form of a55urance concluslon thereon. Our responsibility is to read the other Information and. in doing so. conslder whether the other information is materlally inconsistent with the financlal staternents ￿ our knowledge obtained In the course of the audit or othenvlse appears to be materlalty mlsstated. If we identify such materlal inconsistenaes or apparent materlal mlsstatements. we are required to determlne whether this glves rise to a material misstatement in the financial statemènts themselves. tf. based on the work we have performed. we conclude that there 15 o materlal misstatement of this other information we are requlred to report that fact. We have nothing to report In thls regard. Oplnlons on ther matters prescrlbed bythe Companles Act 21x16 In our opinion. based on the work undertaken in the course of the audit:. the Informatlon glven In the Trustees. Annual Report whlch Indudes the Dirertors, Report and the Strategic Report for the financial year for which the finanoal statements are prepared Is consistent wlth the financial statements, and the Trustee￿ Annual Reporr which includes the Dlrectorg Report and the Strateglc Report has been prepared in accordance wlth appllcable legal requlrements. Matters on whlch we are requlred to report by excep In the light of the knowledge and understanding of the charitable company and its environment obtsined In the course of the aud1¢ we have not iden(ified material misstatements in the Trustees, Annual Report and Strate8ic Report. We have nothing to report In respect ofthe followlng matters where the Companles Act 2006 requlres us to report to you if. in our opinion= adequate accounting records have not been kepL or retums adequate for our audit have not been received from branches not vislted by us or the flnancSal 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 recelved all the informathon and explan￿OnS we requlre for our audlt Responslbllltles of trustees As explalned more fully in the Trustee< Responsibilitles Statement set out on page 16. the trustee5 (who are also directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financlal statements and for being satisfjed that they gwe 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 misstatemenL whether due to fraud or error. 18 Leeds University Union Annual Report and Accounts for the year ended 31 Juty 2023 In preparing the financlal statements. the trustees are responsible for assessing the charitsble compan￿$ ability to continue a5 a going concern. disdosing. as appllcable, matters related to going concern arid using the goin8 concern basls of accountong unless the trustees either inten¢J to Ilquldate the charitsble company or to cease operation& or have no realistic altematfve to do so. Audmofs respOn￿bIll￿eS for the audlt of the flnandal statements We have been appointed as auditors under the Companies A(t 2006 and report in accordance with regulatlons made under that Act. Our oblectlves are to obtain reasonable assurance about wthether the flnanclal statements as a whole are free from material rnisstatemenL whether due to fraud or error. and to issue an auditorfs report that indudes our oplnlon. Reasonable assurance is a high level of assurance. but Is not a guarantee that an aud￿ conducted In accordance with ISAS (UK) wlll a￿ayS detect a matèrlal mlsstatement when It exlsts. MIs5tatements can arise from fraud or effor and are consldered materlal If. Indlvldualty or In the aggregate. they could reasonabty be expected to influence the economlc declslons of users taken on the basis of these financlal statements. Irregularltles, Includlng fraud. are Instances of non-compllance with laws and regulations. We deslgn pr¢cedures in Ilne with our re5ponsibilitle& outlined above. to detert materlal mlsstatements in respect of Irregularities. including fraud. The spe(ffic procedures for thls engagement and the extent to whlch these are capable of detectlng Irregularities. induding fraud are detailed below. Idendfylng and assessing risks related to irregularitie5'. We assessed the susceptibility of the charitable companys financlal statements to materfal mlsststement and how fraud mlght occur, Includlng through discussions vAth the trustee¥ discussions within our audit team planning meetin& updating our record of internal controls and en5urin8 these contro15 operated as intended. We evaluated posslble Incentfves and opportunities for fraudulent manlpulatlon of the finanaal statements. We identified laws and regulatlons that are of signiflcance in the context of the charitable company by discusslons with trustees and updatlng our understanding of the sector In whlch the tharltablè company operates. Laws and regulatlons of direcr slgnlficance In the context of the charitable company include The Companies Act 2006. and guidance i55ued by the Charity Commlsslon for England and Wales. Audlt response 10 rlsks ident6fied: We considered the extent of compllance wlth these laws and regulatlons as part of cMJr audit procedures on the related financlal statement ttems Includlng a review of financial statement dlsdosures. We revlewed the charftable compan￿$ records of breaches of laws and regulation5, mlnutes of meetings and correspondence with relevant authortties to it1entsfy potential rnaterial misstatements arising. We discu55ed the charitable companys policies and procedures for compliance with laws and regulations y￿th members of management responsible for compliance. 19 Leed5 University Union Annual Report and Accounts for the year ended 31 Juty 2023 Durlng the plannlng meeting wtth the audit team. the engagement parther drew attention to the key areas whlch mlght involve non•crMnpliance wlth laws and regulation5 or fraud. We enquired of managèment whether they were aware of any Instance5 of nontar (19.232} 53,252 Adjustments for. Depreciation and amortisation Interest r￿e1vable from Investments {Increase) in stock DecreaSel{In￿e3seI in debtors Increase in credltors Net cash provided by operatlng acmes 493.306 426,275 113,974) {2981 126,S681 141.1071 19.681 {430,5251 275,204 23,464 72&417 31,061 Net debt At 1 August Cash Flows Other Tron￿5h 2022 movements At 31 July 2023 Cash at bank and in hand Debt due withln one year Debtdue after oneyear Net funds 1,979.731 51,851 Z031,582 1,971731 51.851 2,031.582 Comparallbt Net debt At l ￿￿1$t Gish Other non