WARWICK STUDENTS, UNION Trustees Annual Report and Consolidated Financial Statements For the year ended 3191 July 2022 warwick *ACOTZLUQ' owr2023 COMPANIES HOUSE A07 77 Company Registration Number. 07297865 Charity Number: 1136894 CONTENTS Page Directors Report Tru5teeslDirectors OfWarW￿k Students. Union Subsidiary Companies Le9al and Administrative Infomation. Indemnity Insurance Disabled Persons Statement Employee Engagement Statement Matters of Strategic Importan Statement as lo Discbjsure of Informaknon to Auditors Strategic Report Members of the Union Slructrjre. GOverna￿e and Management offi￿rS of the Union Board of Trustees Relationship with the Universty of WarwKk Risk Management Key Policy Statements Aims. ObjectNes and Activities Charity CoMmiss￿n Key Achievements The Year Ahead Financial Review Funds held as Custodian Trustee on behaw of olhers Auditor Statement of the Board of Trustees. Responsibllltles 26 Independent Audilorfs Report 27 Consolidated Statement of Financial Activities 31 Statements of Financial Position 32 Consolidated Statement of Cash Flows 33 Principal Accounting Policies Notes to the Financial Statements 40 DIRECTORS REPOR T Union Warwck Students, Union Charitable Status Warwck Students, Union ts a charity established under the Education Act 1994. Wamck Students. Union registered V￿th the Charity Commission for England and Wales on 15th July 2010. RegiSte￿d Charity Number: 1136894 war￿￿{ Students. Union is a charitable company limrted by guarantee and rEgistered in England and Wales on 29 June 2010. Company Registered company number. 07297865 WARWICK STUDENTS. UNION Universty of Warwick Gibbet Hill Road COVENTRY CV4 7AL Registered Office BOARD OF TRUSTEES Governance and Appointments Committee ensures that Warwick Students. Union has effective systems for the appointment and training of Trustees are also Directors of the Company and that the membership of the Board of Trustees is appropnate. FULL TIME OFFICERS . Appointed Resigned 2021-22 S Dzumbira l Atkins J Jefferson N Parson5 C Hsiang-Lo W Brewer C Sayer President Education Democracy & De¥el¢)pment Postgraduate . Sceielies Sports Weffare & Campaigns 1 August 2021 1 August 2021 1 August 2021 1 September 2021 t August 2021 1 Augusl 2021 1 August 2021 31 July 2022 20 May 2022 31 July 2022 31 August 2022 31 July 2022 31 July 2022 . 8 June 2022" 2022-23 W 8rewer C Hsrang-Lo J Sperry PrespJent VP Educab"on VP Dem¢)cra¢y & Development VP Postgraduate . VP Sccieties VP Sports VP Welfare & Campa￿n$ 1 August 2022 1 August 2022 1 August 2022 . H Rehman A Taylor E Birch O Amole 1 September 2022 1 Avgusl 2022 1 August 2022 1 August 2022 I | Page Warwick Stu¢enW Un Annual Repm and (Orrfol￿l1Ied Ststement$ 2022 BOARD OF TRUSTEESIDIRECTORS Full Time Officer Trustses S Dzumbira Appointed Resigned 1 September 2020 31 July 2022 1 August 2021 20 May 2022 1 August 2021 31 July 2022 1 September 2021 . 31 August 2022 1 August 2021 8 June 2022 1 August 2021 1 August 2021 1 August 2022 1 September 2022 A Taylor 1 August 2022 E Birch 1 August 2022 O Amole 1 August 2022 Shingai Dzumbira reswned the Chair of the Board of Trustees on 31 July 2022. Will Brewer became Chalr on 1 August 2022. Chair l Atkins J Jefferson N Parsons C Sayer W Brewer C H$iang-Lo J Sperry H Rehman Chair Student Trustees T Kunin 1 August 2020 1 August 2021 25 August 2021 1 August 2021 1 August 2021 1 August 2021 1 August 2022 1 August 2022 1 August 2022 1 August 2022 1 August 2022 31 July 2022 31 July 2022 31 July 2022 31 July 2022 19 February 2022 C Earl A Vemulapalli E Hod9son Psun T Bames-wise D Blake T Chaloner C Heather S John J Thomas External Trustees A Hill-wilson 1 August 2018 1 September 2020 1 September 2020 1 September 2020 12 May 2022 12 May 2022 S Daeche 16 May 2022 H Dhillon A Minott J Dubber R Pegg Secretary M Crook 1 August 2019 SENIOR MANAGEMENT Chief Executive Robert Parkinson M Groves-williams {Interim) Roohi Mehra Tra¢y Murphy {Inlerim) Appointed 14 October 2019 29 March 2022 6 June 2022 1 November 2022 Rtsigned 31 March 2022 8 June 2022 31 October 2022 2 | Page w￿￿ck Slt*lenls' UnK Annual Report and Cffi501kYaled Slalements 2022 SUBSIDIARY COMPANIES Company Membership Solutions Limited Membership soluts.ons Limrted IMSL) is a subsidiary of the Union and provKles IT systems for the further edUcat￿n marke( principally in the UK bul also in Europe and the rest of the world. It wovides websrte. venue management. e-commerce and membership suptKtrrt services. Governing instrument The company is a limrted company with share capital. It is govemed by its Memorandum and Arbcles ol As%)cialion. Company reglslered number 5525449 Directors Appointed Resigned J 8onsall G Parker S Hansen G Bryant R pa￿InSOn S Dzumbira R Mehra W Brewer J Sperry T Murphy R Pegg 1 August 2009 1 August 2015 22 January 2018 1 August 2019 6 November 2019 7 October 2021 28 July 2022 20 ￿tOber 2022 20 October 2022 30 November 2022 30 November 2022 31 March 2022 31 July 2022 2 November 2022 30 November 2022 Company Secretary M Cr(M)k Registered Office SUHa WARWICK STUDENTS. UNION University of Wa￿1Ck Gibbel Hill Road COVENTRY CV4 7AL Warwick Students. un￿ Annual Report and Cor¢ohdated StateN*nts 2022 Company Students. Union sep41￿s Warwick Limited This is the UnTh)'s subsK1iary company for non-primary purF%)se trading which covers the sale of miscellaneous goods and services. This includes events prov￿ed for the general public and nol just for student members such as extemally promoted live music in the Copper Rooms and conference ￿lated a¢b"vity during vacation. Governing instrument The ccmpany is a limited company with share capital. It is govemed by its Memorandum and ArtKles of Association: Company registered number 2197761 Directors Appolnted Rèsigned A Smith R Pafkinson J Jefferson CLO R Mehra E Birch J Sperry 18"November 2010 6 November 2019 20 October 2021 20 October 2021 4 July 2022 27 October 2022 27 (ktober 2022 31 March 2022 31 July 2022 27 October 2022 2 November 2022 Company Secretary M Crook Registered Office SUHQ WARWICK STUDENTS, UNION Universrty of WaThvick Gibbet Hill Road COVENTRY CV4 7AL war￿th st￿ents. Un￿n Annual Report aNI Cornso&d¥ted Slalements 2022 LEGAL AND ADMINISTRA TIVE INFORMA TION Bankers Natwest PLC 24 Broadgate Coventry West Midlands CV1 1NE Solicitors Band Hatton Button 53-55 Butts Rd, Coventry CV1 3BH DFA Law 2 Waterside Way. Northampton NN4 7XD Bates Wells and Braithwaite LLP 10 Queen Street Place London EC4R 1BE Woodroffes Solicitors "7 Beeston Place London SW1W OJJ Auditor RSM UK Audit LLP Chartered Accountants 11P Floor 103 Colmore Row Bimingham B3 3AG 51Page War%tsi¢k Studefils. Un*)n Arinual Report and Consolhyaled Staterrents 2022 INDEMNITYINSURANCE Warwick Students, Union has in place Professional Indemntty Insurance cover of £2m and this insurance policy includes cover for the Trustees. Directors. Officers and employees of the Union. DISABLED PERSONS Full and fair consideration is given to applications for employment by disabled persons. having regard to their aptitudes and abilities. Should an employee become disabled during their employment, all efforts will be made to continue their employment and to provide appropriate training and support. The Union is a Elisabilty Confident employer and training. ￿reer development and promotion opportunities will be. as far as possible, ident￿71 to those for other employees. EMPLOYEE ENGAGEMENT The Union encourages the involvement of its employees in its management through regular meetings of the Staff Consultative Forum. This forum has the responsibility for the dissemination of infomiation of particular con￿rn to employees and for re￿[VIng their views on important matters of policy. MArrERS OF STRA TEGIC IMPORTANCE Infomiation is not shovm wthin the Diredors. Report as rt is inslead included within the Stralegic Report on page 7 to 25. under Companies Act 2006 S414c (111. STA TEMENT AS TO DISCLOSURE OF INFORMA TION TO AUDITOR The Board of Trustees who were in Offi￿ on the date of approval of these financial statements have confimed. as far as they are aware. that there is no relevant audit information of which the auditor is unaware. Each member of the Board of Trustees has confirmed that they have taken all the steps that they ought to have taken as Board of Trustees members in c￿der to make themselves aware of any relevant audit infomiation and to establish that it has been communicated to the auditor. The Oirectors, Report is approved on behalf of the Board of Trustees: W Brewer PresKlent Date: 16 February 2023 J Sperry VP Democracy and Development w￿l¢K Students. Union Annual Report and Con501kYaled Slaletr*nls 2022 STRATEGIC REPORT The Board of Trustees of the Union submit their Strategic Report for the year ended 31 July 2022. The financial statements have been prepared in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), (effective 1 January 2015), Charities SORP {FRS102) and the Companies Act 2006. Members of the Union Full Members All registered students of the University of WapAick except those who exercise their right not to be a member under dause 22 (c) of the Education Act 1994. Full-Time Officers of the Union are full members of the Union. Associate Members Those persons admitted to membership by the Student Council or a delegated officer. who have paKI any required fee. Structure, Govemance and Management Wa￿iCk Students, Union (the Union) is constituted under the Education Act 1994 as a charity with internal rules and regulations approved by Universty Council. the goveming body of the University of Warwck. The Union's charitable objects under the Act, to advan￿ the Unr4ersity's educational purposes by providing representation and support for the students of the University of Warwick, are supplemented by the further objed of helping membets to develop their own haritsble activities as participants in avil society. The Union is administered by its Trustee Board of eighteen members comprising of seven Full-Time Trustees, six Student Trustees and five extemal Trustees bvho are regarded as the Chanty Trustees of Warwick Students. Union for the purposes of the Charities Act. At 31 July 2022 there were seventeen trustees in post. The Union operates on democratic principles. workirKJ for and vth our members, the students of the Universty of Wanwick. There are two key student bodies - Student Council and the All Student Meeting. Student Council comprises of an eleded Chair and Deputy Chair of Council. the Full-Time . Officers. the Chairs of each of the Executive Committees and a nu(nber of Part-Time OffI￿rS. Student Council exists to ratify and pass routine. uncontroversial las decided by the Democracy Comrnittee) resolution changes to By4aws and the procedures arKI principles of the Students, Union. Warwd( Siudenis, Unv)n Annual Report and Consolidated statements 2022 Student Council has the primary responsibilty f(K the implementation and oversight of Union policy.. Union policy, regulations and principles are debated and voted for by members by way of arnonline secret ballot following an All Student Meeting. The composition and proceedings of Student Council are set out in the By-laws. The voice of students is represented through a series of Union executive bodies called Committees. There are eight Committees. Seven are directly elected Committees and.the eighth consists of the Union's eight Part-Time off￿erS. The Democracy Committee {has"6 diredly elected positions. plus the Chair and Deputy Chair of Council. Retuming Otficer {non-voting) and the VP Democracy and Development- 10 in total, 9 voting); The Development Committee (has 6 directly elected positions, plus the Environment & Ethics Officer and the VP Democracy and Development- 8 in total): The Education Committee (has 16 eleded Faculty Representatives wth 7 protected places for postgraduate students. elected into the role of Facuty Reps)- The Postgraduate Committee (has 4 directly elected posrtions, 10 Postgraduate Faculty Reps and the VP Postgraduate - 15 in tolal)- The Societies Committee (has 8 directly e￿￿ed positions plus the VP Societies - 9 in total)., The Sports Committee (has 8 directly elected positions plus the VP Sports - 9 in total}- The Welfare Committee (has 6 directly elected Welfare Exec positions, 2 Mental Health Awareness Reps. and the VP Weffare & Campaigns - 9 in total), and The Liberation and Diversrty Commrttee (includes the 5 part-time Liberation Officers, the Part-Time & Mature Students, Officer. the 2 Intemational Students, Officers and the President- 9 in total). These COmm￿eeS are at the heart of how the SU represent and acts on members. interests and ideas. The Committees run campaigns, organise events. hold the Officers lo account and make change that will affect students and the wider community. Policies held by Student Council cannot be overtumed without being debated and voted on at an All Sludent Meeling. Policies may be overturned by the Board of Trustees only for financial. reputational or legal reasons in accordan￿ wtlh Article 40.3. The Union maintains a policy file and record of lapsed policies. Poliaes lapse after iwo year5 unless renewRd by student Council vtho viill specify the next renewal date. As per the Memorandum and Artides of Association. the Student Council should re￿1ve a report from the Board of Trustees on Union activrty each quarter. During 2021-2022, no written reports were submitted to the Student Council. Warwrk Sluderbts, Union. Annual Report and Consolidaied StstThnts 2022 Officers of the Union The Officers of the Union are: Seven Full-Time Officer Trustees. Five Liberation Part-Time Officers,. Four Part-Time Officers.. Chair and Deputy Chair of Student Council- Chairs of the societies and sports executive committees" Chairs of six other committees., an.d University Faculty Representatives. The Full-Tirne Officers are also trustees of the charty. elected through a secret ballot by the members each year, normally serving for one year in office but can seNe a second term rf re-elected. These are'remunerated posts. (although the trustee positions are .unremunerated) as authorised under the Education Act and the Memorandum and Artides of Warwick Students. Union. Board of Trustees The Union is administered by its Board of Trustees comprising.. Up to five appointed external lay members.. Up to six elected full student members who are not Full-Time Officers.. and Up to seven Full-Time off￿rs (including the President of the Union) The President of the Union acts as Chair of the Board of Trustees. In 2021-2022 Student Trustees were elected by Ihe student body to the Board before bein9 confirmed by a process of ratrfication by the Student Council and the Board of Trustees, to serve a maximum tem of years. In future years Student Trustees are appointed following an application process. The appointed Lay Trustees are recruited to the Board and selected by the Trustees and Student Council to nomially serve a tem of three years vA)ich may be extended for a second tenn. Tmstees, General Authori The Board of Trustees has ultimate responsibility for the financial matters and procedures of the Union. The Board of Trustees may choose to prohibit the implementation of any policy recommended by Student Council which has financial implications rf it is passed wbthout a realistic financial plan, is not legal, or may not be in the best interests of the Union in accordan￿ with Article 40.3 of the Memorandum and Articles of Association. 9 | Page Wamick Siu¢Jenls' Un￿)ry Annual Report and Consolidated SlaleTh*nts 2022 Trustees Induction and Trainin .Upon appointment all Trustees receive a variety of infomation through their induction. Trustees are briefed on their legal obligations and other trustee responsibilities. The Full- Time Officers are"usually new lo the Board every year. so they undergo more intensive, in depth training to ensure that they are fully aware of their roles and responsibilities and can perform their range of duties to the best of their abilities as soon as possible. There is an on-going training prograrnme for Trustees for issues which may o¢¢ur during their term of office and to reinforce prevailing legislative requirements. The Board of Trustees and the Chief Executi The Board of Trustees. assisted by sutkcomrnittees where appropriate. has delegated the day-t¢￿aY running of Warwick Students. Union to the Chief Executive. The Union also employs a number of core staff to provide continuity, consistency and knowledge in the managemenl of the many Union activities. The staff team are accountable to the Chief Executive for the perfonnance of their dLrties. Committees The Board of. Trustees meets at least five times a year to receive reports from committees, Full-Time Officers, Senior Management and the Chief Executtve. to review the Union's perforrnan￿ and administration generally. to consider the Su's strategic objectives and their implementation arKJ to agree pdicy issues arising, subject to consultation with the Student Council. During the year, the Board of Trustees was suppjrted by three committees vthich focus on certain key aspects of Warwick Studerts. Union govemance and management.. The Governance and Appointments Committee: The Audit and.Risk Committee,. and The People and Remuneration Committee. Govemance and Appointments Committee This ensures that new trustees are recrurted, inducted and developed properfy. They also have responsibility for reviewng the Temis of References of the Board of Trustees Sub" Committees arKI Code of Conduct for Trustees. Audit and Risk Committee This monitors the Union's framework for accountability. financial control, risk profile.and other aspects which could impact on Warwck Students, Union's organisational health as well as ensuring that the Union is complying wth relevant legislation. The Committee is responsible for ensuring that there is a framework of effective intemal and extemal audit coverage and for overseeing reports of data breaches to the Information Commissioner's Office and serious inadents to the Charity Commission. 101 Page War￿k Students. Unitirt Aanual Report and Cons&•Yated Sl*rnents 2022 . People and Remuneration This monitors issues relating to staff induding the staff survey results, pay changes, training and development as well as staff policies. It also oversees the process for recruitment of the Chief Executive and senior management posts. Relationship with the University of wa￿l¢k The relationship between the universi.ty and the Union is established in the Charter, statutes. Ordinances and Regulations of the University. The Union receives an unrestricted block grant from the University and occupies a building owned by the University of War%Yick and another by the Unrversity of Warwick Foundation Fund bthich are leased to the Union at agreed rents. There is no ￿aSOn to believe that the block grant or equivalent support from the University of Wamick will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to take such steps as are reasonably practicable to ensure that the Union operates in a fair and democratic manner arid is accountable for its finances. Warnick Students. Union therefore Wofks alongside the University of Warwick to ensure that the affairs of the Union are properly conducted and that the educational and welfare needs of the. Union's members are met. 11 | Page Warwck Sludefi15' UnK)n Annual Report and CoThsoIKlated Slaterrents 2022 Risk Management The Trustee Board has examined the main strategic business and operational risks faced by the Union. A risk register has been established and is fonnally reViev￿d and upjated during the year. The Union delegates the management of strategic risk to its senior management team, with oversight by the Audit and Risk Committee. Mitigating actions are identified and implemented to reduce the level of risk the Union is exposed to. The impact of this mitigating actions are assessed by the Audit and Risk Committee vtho obtain assurance from the senior management team that the level of risk exposure sits within acoptable levels as detemiined by the Union Board of Tmstees. Budgetary and internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in Pla￿ to ensure compliance th the health and safety of staff. volunteers and partiapants on all activities organised by the Union. These procedures are periodically reviewed to ensu￿ they continue to meet the needs of the Union. The strategic risks that are identifted by the Board of Trustees are: Risk Area Risk Identified Governance and Compliance Failure to protect stafflstudents from serious harm. Failure to manage a sèrious incident wrth potential for significant reputational damage. Failure to protect personal data in line wth GDPR ulations. • Failure to address the funding gap over the next three years. • Failure to respond to the financial challenge of . Cov1￿19 and its aftermath. VAT changes affecting food sales at the Thrty Duck. • Failure of commercial activity and events to break- evenldeliver return to the Charity. • Rising energy costs. Over relian￿ on the Univers block rant • Failure to effedively manage HR casework. • Failure to succession plan, particularly in key areas_ Failure to deliver an effective ED&1 review and su culture. A decline in student engagement wrth the SU arKI its democratic processes. Failure to deliver a qualty service and experience for students. Failure to add￿$$ the Su's consistently poor NSS score. Failure to demonstrate value for money for the Universtly. Failure to b.alance commercial interests with student weffare. Risks to the financial sustainability of the SU People and talent management Stakeholder engagement 12 | Page WarwKk Students. VnK)n Annual Report and Consol￿81ed stslen￿nts 2022 Key Policy Statements Investment Policy The Trustees. objective is to invest surplus cash.to best advantage with minimum risk. The Union has taken a prudent stance with funds being held in high interest-bearing deposit accounts for periods not exceeding 12 months. Cash funds so invested are usually over a minimum balance of £2L)).000 and must be placed wtih an approved and repuiable banking institution to minimise risk. Investment retums in the year reflect the stated policy as well as the lower interest rates available due to market condrtions. Reserves Policy The Trustees regularty consider the level of free reserrfes required. Issues considerèd by the Trustees during 2021-22 when looking at the level of reserves V￿re future investment and contingency requirements for risks. This includes such items as future strategic projects which includes the requirement for any building refurbishment.and infrastructure development and the impacl of the increase in the Students. Union Superannuation Scheme (SUSS) pensions liability and temporary losses of income from commercial activity. . The Board of Trustees has agreed that the Union should have an unrestricted reserve target of behveen £500,000 and £1,000,OLJJ (exduding the unreslrTrcted pension fund balance). Total unrestncted reserves at 31 July 2022, stand at £1,582,741 (2021.. £1,084,646) and excluding fixed assets stands at £1.401.182 {2021.' £851.291). The increase in total unreslricted reserves, excluding fixed assets. impact on pensions liability and in the face of increasing costs, relates to the surplus of funds generated by operational adivity undertaken by the Charity during 2021-22. Designated reseNes are held to fund future strategic projects, including a.review of the Union's Governance Structures and work related to Equalty, Diversity and Inclusion and the current balance held is £205,965 (2021: £268,672). As a result of the recognition of Warwick Students. Union'5 SUSS pension deficit artsing from the implementation of the FRS102 accounting disdosures, a negative unrestricted pension fund balan￿ of £6.604.658 (2021. (£7,945,203)> is ￿COgnised at 31 July 2022 (see Note 21). representing the Warwick Students, Union share of the liability. The Union is paying deficit contributions in line with the agreed contributions schedule. currently planned to end in Augusl 2035. as discussed in Note 21, which has been agreed with SUSS Trustees based on the latest valuation, to eliminate the defiat position in the medium term. This is a standard position within the sector. Remuneration Policy The People and Remuneration Committee of the Trustees is responsible for defining pay policy and making recommendations in relation to pay. benefits and other employment related policies for Warwick Students, Union Staff. The Board of Membership Solutions Limited are responsible for pay matters relating to staff employed by Membership Solutions Limited. 131Page . Wa￿￿(k Stu(lents' un￿Th Annual Report and CO￿￿lda1ed Slaterrents 2022 . The Board.of Trustees spectfically wnsiders and agrees any matters relating to the Students, Union's Chief Executive's pay and benefits. The Chief Executive does not receive ' any form of bonus or perfomiance related pay and their benefits afe proportionately the same as other staff. This role is benchmarked against the charity sector rather than the public or private sector. Each role's salary is detem)ined by a fair evaluation process (J'ob evaluation) based on ten factors relevant'to the Union's mission, values and charitable objectives. The complexity of roles, knowledge and skills required as well as levels of responsibility are considered. The evaluation process determines a salary band and these bands are I￿nchMarked in the middle quartile for the sector. Benchmarking is undertaken at least every five years and more frequently when required. Warwck Students, Union uses a pay scale wh￿h was originally aligned to the Higher Education Single Pay Spine. The annual pay ￿vieW is determined each year through an evaluation of sector benchmarks and takes as a starting wint the pay negots"ations in hgher education. The Union applies" annual cost of living (inflationary) increases to the pay scale each year after taking in to account the general economic conditions and the a.ffordability of the proposed increases. The People and Remuneration Committee recommend for approval any annual cost of living rise (which can be zero) to the Board of Trustees that falls within the financial budget approved by the Board of Trustees in its annual five-year plan. The Union will monitor the spread of pay in the Union as a ratio of pay dispersion. The ratios considered will be the highest paid to median pay and the lOv￿St paid to median pay. The targets are between 3 and 3.5 to l and no more than 4 to 1 respectively. In accordance wth policy and desire to be a good employer, the Union has an aspiralion to be a Living Wage Foundation employer and the Board of Trustees evaluates prc4Jress in this respect each year during its five-year planning. F￿0￿Ss. Aims, Objectives and Activltles .In June 2021, the Board of Trustees approved a strate9ic plan for Warwick Students, Union covering the penod 2021- 2025. It reaffinns the Union's existing charitable objectives and sets out the vision."mission. ambition. values. priorities, work programmes and largels for th& planning period. Vision A wodd-class students, union for a world-class university. Mission The best experience for every student at Warwick. Ambition To be a dynamic force for chan9e where our members feel a sense of community. 141Page wa￿Ck Sludenis. Unv Annual Report and ConsolAJaied Siateft*nts 2022 Priorities Ensure the student voice is Central to university life. Improve students, welfare. Develop a well-led and values-driven organisation.. Create great networks and communities. Ensure the Students, Union is financially and environmentally sustainable. Values Student Focussed- We put students at the heart of everything we do, and stand in solidarity with our liberation communities. Welcoming - We are supportive. helpful, inclusive and value diversity. Democrati¢- We are representative. ethical, transparent and accountable. Independent - We are the independent voice of WaThvick students. Enriching- We nurture students. aspirations and help them develop. Charltable Objects Warwick StLJdents' Union exists for the advancement of education of students at the University of WaThvick by.. Promoting their interests and welfare. Representing. supporting and adwsing. Being the recognised representative of students to the University. . Providing social. cultural and recreational activities. Providing forums for discussi¢)n. debate and personal development. Trustees have. given due consideration to the Charity Commission's guidan￿ on public benefrt and believe these objects continue to comply with the public benefrt requirement. Work Programmes Advice and support - Building an excellent advice service. which offers qualrty support in key issues and improved links to extemal support providers, and supporting disadvantaged students. Student Voice - Academic representation. campaigning on the issues that matter to students. decolonising the curriculum, support for liberation groups. a critical friend to the University and democratic processes vthich maximise involvement. Positive Change - Consulting on new organisational values, a programme of reforms to m¢Jdernise the Union,. implementing equalty. diversty and inclusion review, colleague development and an innovative leadership programme for student offI￿r$. Building Student Communities - Supporting the development of clubs and socielies. improving the university experience for marginalised student groups. enabling a great introduction to Wafwick through Welcome Week and helping to deliver a modem commercial offer on campus. A Sustainable Future - Providing good financial foundations. setting new environmental .targets, maximising use of new technologies and delivenng a digital transformation. project. 15 | Page Warnmck Sludenis. Union Annual Report and ConsolKlaied Stateft*nis 2022 Strategic Plan Targets for achievement by 2025 45% of members voting in Students. Union election throughout the year. 2022-2023 -350 2023-2024 -40% 2024-2025 - 45% Annual financial goals achieved each year. 970k of Advi￿ Centre users feel empowered to make irrformed choices. 2022-2023 2023-2024 2024-2025 -97% 200k more studenls actNely engaged with the SU. 90% of staff colleagues report the Union lives its values. 2022-2023 - 82°/0 2023-2024 - 86% 2024-2025 -900 Top 10 Russell Group Students, Union by National Student Survey (NSS) score. 2022-2023 13 2023-2024 11 2024-2025 10 Three quarters of students say they are satisfied with War%*ryth Students, Union. 2022-2023 650 2023-2024 -70% 2024-2025 -75% Charity Commission All Charities are required to make a serious incident report to the Charity Commission, where an adverse event, whether actual or alleged, resutts in or risks svJnificant'. harm to the charity's beneficiaries, staff. vdunteers or others who come into contact with the charity through its work; loss of the charity's money or assets; damage to the charity's property., hami to the charrty's work or reputation. During the year. War*Mck Students. Union did not make a serious incident report to the Charity Commission. 161 Page WaFwth Sludenls. Annual Report and Consolwjaied Statements 2022 Key achievements Due to the restriclions in place to manage the COVIt>19 crisis at the start of the year, the Board of Trustees maintsined the operation of systems and procedures that enabled se￿1￿$ to continue to be provided to students. and then to be delivered in a COVID safe way as restrictions relaxed through the year and more face to face operations became possible. . As a consequence of these pr0￿dUreS, Ihe Union was able to recommence its commercial and social functions for the majority of the year. albert with some caution and with the requirement in August and September to continue to furlough staff on a full-time or flexible basis, and continued to receive grant from the Job Retention Scheme. .The SU Strategic Han indudes seven targets against vthich we vèill judge our perfomiance over the next five years. The targets f¢XUS on the following areas". Students voting in SU eleclions Achievement of our annual financial goals Advi￿ Centre users empowered to make infomed choices Students actively engaging Y￿th the SU SU Russell Group ranking by National Student SLsrvey (NSS) score Colleagues reporting that the SU lives its values Student satisfaction with the SU With the Strategic Plan now fimity in place. and work projects beginning to be delivered in order to achieve the objectives it contains, il is important that we undertake regular monitoring of our prTr3ress to ensure we Temain on track to meet our annual targets. Students voting in SU elections Our Spring Cffficer Elections 2022 took place during the final week of February and elected 13 posts - the new Full-time Officer team as well as some of our Part-lime Officers. With COVID restrictions over. campaigning and promotion W￿re able to take pla￿ in the physical environment once again. and Suc￿$$fullY increased our voter tumout to 4,100 - increasing by 354 votes from last year. We introduced voter booths across campus for the first time since we started using MSL sofhyare for digital voting. and had Suc￿sS in reaching memberships across the University. We involved many SU staff in working at the voting booths and gave them an opportunity to speak with and chat to our membership. This was matched by buy-in from various University departments. such as WBS, WMS, WMG and others that helped promote our elections and encourage students to take part in them. On the final day of voting. we incentivised St￿entS with an opportunrty to win Amazon vouchers. It was the first time we had tried this, and the upswing in voter numbers that day suggests it is something should repeat next time around. Results N￿h1 was delivered in coniunction with our Head T￿hnician and RAW (Warwick's radio station) from within our own building. including a livestream that had a total of 600+ views. The overall experience ensured we maximised our student engagement, reaching drfferenl parts of the University to engage with our elections. and enhancing our understanding of candidates, experiences with reachir¥J said memberships. Although across all elections there have been 6.510 individual student voters, vthich equates to 24.1 0￿ of our student membership, we did not meet our target of 30% of students voting in 2021-2022. 171 Page WaThwd( Students. Union Annual Report and Co*)501kYa¢ed Slaterrents 2022 A¢hievernent of our financial goals The budget approved by Trustees for the year"included a degree of prudence, primarily around our comme'rcial activities. due in the main to the Un￿rtaintY that still existed around the restnctions that would be in place as a result of COVID-19. In lenms of the outturn for.the Union itself. our operalions have faced a number of challenges. particularly within our food-based offers. This includes increased commodity cosls and the requirement to charge VAT on catering sales through the Dirty Duck from September 2021. Levels of users of our commercial services did not match expectations and we lost a weekly POP! club night in support of the campaign against violence against wornen. As a consequence. our commercial activities returned a lower contribution to the charity than anticipated. De$￿te this, and having to incur other unbudgeted costs during the year, including the recruitmenl of a new CEO and Lay Trustee posts. the Union has returned a surplus in excess of Ihat"forecast due in the main to.the better"levels of grft aid from the Unions subsidiary companies and savings arising from vacancies during the year and as a consequence we have achieved our Key perf0mian￿ Target in this area. Advice Centre users empowered to make infornied Choices This KPI target for 2021-22 is set at 92% of users agreeing that they feel emp0V￿red to rnake informed choices after using the Advice Centre. The actual number of users agreeing that they feel empowered to make informed choices in 2021-2022 was 98%. Engaging more.students with the SU The SU has developed a system. {KARMA) to measure active student engagement. Using student data provided to us by the Universrty and managed on the MSL system. the SU assigns an engagement score to the drfferent SU activities undertaken by students_ For example. attendance at an event like Pop! carries a low engagement score. joining a club or society carries" a medium score. and standing for election a high score. To be 'aclively engaged.. students must have a medium to huh engagement score. To improve the availability and currency of data we began a process of engaging directly ￿th . Schools around the University (particularly WMS, WBS and WMG), whose students we know from anecdotal evidence do not traditionally engage as well with the SU as some others. Each of these Schools has al least one Director of Student Experien￿. who we have now had initial meetings with lo discuss how vle can work more closely together. All of these conversations have been incredibly positive. wth the Schools keen to help promote SU services to their students in order to enhan￿ their University experience. The Spring Officer Elections were the first example of this collaborative work bearing fruit, with Schools using their own communication channels to raise awa￿ne$S ofthe eledions. in some cases reframing the candidate role as a graduate job or career*nhancement opportunity, and allowing the SU to have a physical presen￿ in their buildings. This has re5ulled in generating an initial 24 candidates (up from 12 in 2021) and 576 voters {up from 445 in 2021) from these three schools. The year-end result for students engaging with the SU 23% compared with the target of 200A. 181 Page WafvI￿k Studenis. Umn Annual Report and COnsol￿ale￿ Stalaments 2022 We will look to ixoaden and strengthen these relationships going forward, and they should provide a solid base upon which to build when the KARMA system begins to identrfy further areas we need lo focus on. Colleagues reporting the SU lives its values Responses to our last Colleague Opinion survey in May 2022 showed that 68% of staff thought the SU lives ils values, compared to the target of 77%. The Su's Learning and Development Adviser corKluded a Training-Needs Analysis in tem one, which revealed that relatively few colleagues have a full understanding of the Su's values. Colleagues across departments are passionate about working for a studenl-focused organisation but feel that the other values may be less specific to their work. Findings from the analysis identrfied six a￿aS for Leaming & Development to focus on. in order to drive up our perfomance in tems of living the SU values.. 1. Equality, Diversity & Inclusivity 2. People Development 3. Senior Leadership Training 4. WSU Values 5. Perfomiance Management 6. Cross-functional collaboration & communication , SU Russell Group Ranking by NSS score The National Student Survey launched on 7th February, and is run by Ipsos MORI. The question students (final years only) get asked about the SU is on how well we represent their academic interests, but we know that respondents consider how they feel about all aspects of SU provision when answering. This year we targeted a five-place increase to #15 in the rankings, and a communications plan was been pul in place to showcase the impact of the Su's work in a vafjety of ways including." Temly Impact report are published and kyomoted across all channels highlighting a .huge number of ways in which the SU enhances the studenl experien￿ at Warwick, with the intent￿n of plarning positive SU associations in the minds of our final year students. We emailed all Coutse Reps to ask them for details of successes they have had, or positive changes they have made. and also asked rf they would be wlling to write a short blog Post alx)ut why they enjoy being a course rep. We received several responses, including one video, which we tumed into a series of posts across our social media channels to highlight the great work done by the Su's Course Reps. We used findings from the term one Student Pulse survey to identrfy where the SU had successfully delivered change in line with student feedback. Details of how the SU had impacted the University experience around Welcome Week. study space, representation and wellbeing were turned into a 'You asked, we acted. type website news article, vthich was promoted in our all-sludent email and other digital channels. The existing Your Union campaign was bolslered with additional information and comms support to provide all sludenls with information on fundamental aspects of the SU, including our relationship wth the University, our staff and OffI￿rS, how we are funded, and what we do. All the above was condensed into two targeted email newsletters that were sent lo final year students only, in.which we were quite clear that we are taking all these positive 191Page WarwiGk st￿[￿nIS. Annual Report and Corsdmlated stat￿￿ts 2022 steps to try and improve our perf¢)miance in the National Student Survey, and realise our vision of becoming a world-class Students. Union. All visual elements of these communication featured the NSS logo, to establish a mental link between positive information about the SU and the National Student SuNey. The final result for 2021-2022 was 18th, up from 20th in 2020-2021. Student satisfaclion with the SU The target for sludent satisfadion was to achieve a score of 500/0 or higher in the 202112022 term one Pulse survey. In order to drive this. the Communications & Marketing team put additional focus on reminding students about the excellent work done by the SU, including Welcome Week wrap-up video. Full-time Olficer reports. feeding back on work done around teaching and drink-spiking. and updating students on the DDOS presence at COP26. These messages, and a concerted effort across the SU to meet the needs of our students, resulted in a score of 490A - just 1 Ok off our target. and an increase of 14°/o on 202012021. The Year Ahead Delivery of the Strategic Han 2021-2025 will be the Union's ￿ntral focus for the nexl 12 months. Plans are in pla￿ to support the implementation of the five new work programmes ' and achieve the agreed key performance indicators for 2022-2023, which are as foll0v￿.. 35 h of members voting in Wamck Students, Union elections. 940/0 of Advi￿ Centre users feel empowered to make infonned choices. 5% more students actively engaged wth the Students. Union. 820A of staff colleagues engaged with the Students. Union. Top 13 Russell Group Students. Union by NSS score. 650/0 of students satisfied with the Students, Union. Annual financial goals achieved. In 2021, the Union commissioned Advance HE to carry out a wide-ranging govemance and structures review, later named the Governance Regeneration Project. The review recommended changes to strengthen SU 9ovemance. engage students more effectively in policy-making. and brin9 governing documents into line wth sector best practic&. Implementing these recommendations is an important priority, linked to the successful delivery of the student voice ar￿ positive change work programmes. Work has progressed stgnificantly on these priorities and the expectation is that they will be fully implemented by the conclusion of term 2. Following the departure of the Chief Executive, the Board of Trustees will be appointing a new Chief Executive. but have appointed the current Director of People as Acting Chief Executive for a period of 6 months, to ensure the Union continues to have effective leadership. is able to review commercial activity and develop future financial planning. requirements. implement the final stages of the Union's govemance review and eroagement with students. 20IPage SludÈnts' Union Annual Report and Consolidaied Siateft*nt$ 2022 Financial Review Income and Expenditure The overall results for the year were: 2022 2021 Movement Incorrie Expenditure Net InGome for the Year As a 0￿ of Total Income 8.028.247 6.240.925 1,787,322 22.3% 5.470.223 5.309.622 160,601 2.90 2,558,024 931,303 1,626,721 The annual recurrent grant contribLrtion from the University increased by £58,942 {2%) to £3,006,024 (2021.. £2.947,082). Additionally. the Union recogni5es contributions in kind totalling £82.970 (2021. £82,968) for management services as grant income from the University. Overall income has increased by £2.558,0024 {2021'. decrease £2,498,149) The COVID-19 crisis continued to have an impact on the Union's retail activity during the year despite a gradual relaxalion of restrictions by the Govemment, but the ability to open our outlets to students and hold large scale events. saw an uptum in trading activrty Gompared to the previous years, atthough not back to pre-pandemic levels. Income from our Food arKI Beverage outlets totalled £1,657,330 {2021: £291,560) and being able to hold our regular dub nights and other events generated income of £1.063.775 (2021.. £14,636) At the start of the year we continued to furlough staff due to the restrictions implemented by the Government and received a total of £41.337 (2021. £657.006) from the Government's Job Retention Scheme. which enabled the Union to continue to pay its staff throughout the closure and restriction period. A change in discount rate used to detemiine the Union's share of the SUSS Pension liability from 1.70h to 3.70A has resulted in a nO￿￿$h reduction in expenditure of £1.340,545 that reflects the reduction in the pension liabilrty. The Union has also paid tennination payments to t¥vo members of staff totalling £13,103 {2021'. £93,951). Net Assets The yearaon-year movements were: 2022 2021 Movement Fixed Assets.. Tangible Fixed Assets.. Investments 181,559 16,664 233,355 16.664 (51,796) Current Assets 3.508.541 2.621.520 Creditors.. Amounts falling due within one year (1.834,250) {1,445.802} 1,872,514 1.425,737 <6.604.658> (7,945.203) 887,021 (388,448) 446.777 1.340.545 Provisions for liabilities and tharges Net Ilabllitles 14,732,144) (6.519,466) 1.787.322 wa￿￿k SIL*lents' Union Annual Report and ConSol￿aled Stslen*nts 2022 Total Net Liabilities decreased by £1.787.322 to £4.732.144 (2021.. £6,519,466). The value of tangible fixed assels decreased by £51,796 to £181,559 {2021'. £233,355). During the year £58,781 of fixed assets V￿re acquired. This principally related to pr¢xurement of IT and other equipment and to support staff in delivering the Un￿n'S strategic objectives. Cash and short-term deposits have increased by £787.845 to £2.958.458 (2021.. £2,170,613), rdecting the net cash inflow during the year, see Note 20 The provision for liabilities aThJ charges relates entirely to the Students. Union Superannuation Scheme (SUSS) pensK)n deficit liabilty {see note 13 and note 21). The amounts held as custodian on behaff of student sports dubs and societies increased by £50.745 to £832.755 (2021. £782,009). This is included in the total level of Union creditors at the year end. Reserves Free unrestricted general reserves at 31 July 2022 increased by £498.095 to £1,583,241 12021= £1,085.146). In line with the requirements of FRS102, Wanmck Students, Union reports the discounted Students. Union Superannuation Scheme (SUSS) pension liabilrty for Warwick Students. Union. At 31 July 2022 this was cabjlated to be £6,604,658 (2021: £7.945.203). The Board of Trustees have prevbously approved that £300,000 (2021.. £300,000) be set aside in a designated reserve for future strategic Infrastructu￿ developments. As at 31 July 2022 the value of designated funds held was £205.965. Students. Unlon Services Warwick Limited For 2021-22 Students, Union Services war￿l¢k Limited (SUSW) made a gtft aid donation of £79.905 {2021: £20.844) to Warwick Students, Union, an increase in contribution of £59,061. As restridions related to COVID 19 were relaxed. the Union has seen a return of income generated through work undertaken on behalf of Warwck Conferences. and from supporting the Commony￿alth Games as well as income from media and advertising. Overall turnover during 2021-22 incxeased by £85.943 Ory the previous year at £153.950 (2021.. £68,007) Membership Solutions Limited The 2021-22 financial year saw Membership Solutions Limtted {MSL) making a transfer under grfl aid of £266,62612021'. £297,186) a decrease in contribution of £30,560. MSL has delivered a successful set of financial results and consolidated ils position as the market leader for website and membership management systems in UK Higher Education students, unions despite inC￿8$1ng competition in this sector. 22 | Page WaThMck Students. Union Annu* Report and cons￿l131ed Siaiements 2022 It has won several new ¢lients and MSL'S client base under contract continues to ex￿ed 1C institutions. Tumover recognised in the year for the company increased by £274.356 10 £1.424,726 (2021: £1,174,603) due in the main to increased transaction income as client student unions began to undertake activity following relaxation of COVED 19 restrictions and increases in the company's client base. Fundraising The Union does not undertake any street or door-to4oor fundraising activity and does not engage a third-party organisation to advise or undertake fundraising on its behalf. The Raising and Giving Society do raise funds through collection to be donated to charitable organisations selected by students. and other than acting as custodian of funds, the Union does not influence or CLMlrol this activity. All commercial activity is undertaken Y￿th the aim of raising funds to support Charitable Activity, and the Union does hold up to eight events annually with the expressed purpose of fundraising. These events take advantage of HMRC relief in respect of Value Added Tax and comply Trmth the associated HMRC guidance issued in respect of such events. Future Funding Every year the Union produces a Five-year Plan that enables the Union to review the current and future finanaal performance of its activities. The plan (induding the budget for the 2022-2023 financial year) was approved by the Board of Trustees in May 2022. The budget for 2022-2023 forecasts a group deficit position of £22.986 (2021: surplus £553.607>. The forecast includes expendrture plans totslling £98,629 (2021". £52.570) to be funded from the deS￿nated reserve. This plan also included an approved recwrent block grant from the University of Wamick for 2022-23 of £3.096.202 {2021." 3.006.024) an increase of £90. 178 (30h). The current Five- Year Plan assumes that the University of Warwick will continue to contribute an annual recurrent block grant at least to the level approved for 2022-2023 across the planning period. Although the Union has no definitive guarantee that funding will continue from the University at these levels, the Union continues to engage with the University about the future and currently has no reason to suppose that funding at the Gurrent level will not continue into 2022-2024. The Capital Commitments (note 7) reports that there are no capital commitments approved but not yet contracted and vthile the Union is still in the period of recovery post-pandemic restrictions, capitsl investment will be closely controlled to ensure cash resources remain strong. The Union faces signrficant financial risk as a resum of the current pension deficit reported from the Students, Union Superannuation Scheme (SUSS). This is a defined benefit scheme whose membership consists of students. unions and related bodies throughout the country (see Note 21). This scheme closed to future accrual on 30 September 2011. 23 |Page W￿ck Sludent5' UnK)n Annual Report anrt ConsolKJated Staternents 2022 The amount contributed in the year to 31 July 2022 was £448,705 {2021'. £367,301) (see Note 211. Contribution amounts are included in Ihe Group's Five-year Plan and a known increase of 5 /0 per annum is included in the plan. However. the outcome of the triennial actuarial review undertaken by SUSS Trustees as at June 2022, is not expected until the all member meeting to take place in February 2023, and for prudence the plan includes an assumption of a 10% increase in contribution from October 2024 and then 5% per annum thereafter. This has resulted in a cash pension defKit commitment in 2022-2023 of £484,125 (2022: £448,705), before accounting adjustments for FRS102. These accounting adjustments consist of a non-cash notional adjustment to reduce the pension liability of (£891.840) (2022. {£1.340.545)). This is based on the pension deficit being accounted for as a liability under FRS 102, at the net present value of the agreed future payments. The net present value discount rate applied in forecasting our future liability is 1.7% (2022: 3.7 OAI. Should this change dunng the year, the accounting adjuslment used to discount future payments will be adjusted to refiect any change in discount rate. Funds Held as Custodian Trustee on Behalf of Others Custodian Funds Warwick Students, Union acts as a custodian for funds raised by the many sports clubs, student socielies and RAG (Raising and Giving) affiliated to the Union. These funds are held in a'separate bank arxount and the yearend balances for each sports dub and society ar8 within the Union's creditor balance (see Note 11). The balance held for student sports dubs arKI societies at 31 July 2022 was £832.755 (2020". £782.009). see Note 11. The income and expenditure for the student sp￿lS dubs and societies is not reported within the Union's Statement of Financial Activities. During the financial year the sports clubs and societies received £1,758,216 of income (2021.. £398.198}. Included in this income were grants from the Union's Sports Exec and Warwick Sport of £291,210 {2021.' £105,691) for sports clubs and £49.371 (2021. £31.781) from the Union's Societies Exec for student societies (see Note 18). These grant awards were spent in the year and appear in the Union's Statement of Financial . Activities as a cost in the "Student Activities, Societies and Sports Clubs" line. Auditor RSM UK Audrt LLP have agreed to urKlertake the audit of the 2022-2023 accounts. 241 Page WaMc& Students, lJnv)n Annual Report and ConsolN1aied Stai*nents 2022 The Trustees. Strategic Report is approved on behaw of the Board of Trustees.. Will Brewer President Date.. 16 February 2023 Jack Sperry VP Democracy andDevelopment 251 Page War*ick Siudenls. Union Annual Report and ConsdKlaied 2022 STA TEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES The Trustees (who are also directors of Warwid( Students. Union for the purposes of company lawl are responsible for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year with give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that penod. In preparing those financial statements, the Board of Trustees is required to.. Select suitable accounting policies and then apply them consistently., Observe the methods and prinrAples in the Charrties SORP: Make judgements and estimates that are reasonable and prudent., Stale whether applicable UK Accounting Standards have been followed, subject to any material departures disdosed and explained in the financial statements.. and Prepare the financial statements on the going concem basis unless it is inappropriate . to presume that the charitable company will conts.nue in business. b) d) The Trustees are responsible for keeping proper accounting records that disdose 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware.. There is no relevant audit infomation of which the charitable companls auditor Is unaware: and The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infomation and to establish that the audttor is abvare of that infonnation. The Tnistees are ￿SPonsible for the Maintenan￿ and integrity of the corporate arKJ financial information included on the chantable company's website. Legislation in the United Kingdom governing the preparation and dissemination of f￿anCIal statements may differ from legislation in other jurisdictions. 261 Page Warwick Slu¢Jents' Un￿n Annual Report and CorEdtyJaled Slal•Trnts 2022 INDEPENDENT AUDITORS'REPORT To the Members of Warwick Students. Union Opinion We have audited the financial statements ofWapMck Students. Union (the'parenl charitable company,) and its subsidiaries (the 'group'l for the year ended 31 July 2022 which comprise the Group Statement of Financial Activrties, the Group and Company Balance Sheets. Consolhlated Cash Flow Stalernenls and notes to the financial statemenls, includin9 significant awounting poliues. The financial reporting framework that has teen aPpl￿d in their preparation is appl￿ble law and United ￿'ngdOM Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. {United Kingdom Generally Accepted Accounts'ng PraCt￿e). In our opinion the financial statements". give a tnje and fair VEW of the state of the group's and the parent charitable company's affairs as al 31 July 2022 and of the group's incoming reSoUr￿S and applicab.on of resources, including its income and expenditure. for the year then ended,. have been properly prepared in accordance with Unile(l Kingdom Generally A￿pted Accounting Praclice,. and have been p￿Pared in acC￿tsn￿ with the requirements of the CoMpan￿S Act 2006. Basls for opinion . We have been appointed auditors under the Companies Act 2008 and section 151 of Ihe Charities Act 2011 and report In accordance with those Aets. We conducted our audit in accordance wilh Intemational Stsndards on Auditing IUKI (ISAS {UK)} and applicable law. Our responsibilities under those standards are further described in the Auditorfs respon5ibilib"e5 for the audit of the financial ststements section of our report. We are independent of the group and parent charrtable company in accordance with the elhThl requirements that are relevant lo our audit of the financial statements in the UK. induding the FRC'S Eth￿1 Standard and we have fulfilled our other ethical ￿SpOnsIbl11￿"eS in accordance with these requirements. We believe . that the audit evidence we have obtained is suffioent and appropnate lo provide a basis for our opinion.. Conclusions relating to going concem In auditing the financial slatemenls. we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the finanaal state￿￿￿ts is appropnate. Based on the work we have FÉrfomied. we have not identified any material uncertainties relating lo events or conditions that, individually or collectively. may cast signrfieant doubt on the group's or parent Chantable Company's abilrty to continue as a going concern for a per￿1 of at least twelve months from when the financial ststements are authonsed for issue. Our responsibilities and the resFonsibilities of the Irustees with resFeCt to going ¢on¢erft a descrited in the relevant sections of this rewrt_ Other infomiation The other infotmation comprises the infomialion included in the Trustees Annual Report other than the finanryal statements and.our audrtof s report thereon. The trustees are resFX)nsible for the other information contained wilhin the Trustees Annual Report Our opinion on the financial statements does not Cover the other infomation and. except lo the extenl otherwise explicrtly stated in our report we do not express any form of assurance condusion thereon. 27 | Page Warwck Slu(lenls' Union Annual Report and Consdidaied Slaternenls 2022 INDEPENDENT AUDITORS, REPOR T (Continued) Our fesponsibility is to read the other infomiabon and, in (loing so. consider whether the other information is maleitally inconsistent the financ￿1 statements or our knowledge obtsined in the course of the audit or olherwse appèars lo be malenally misstated. If we identify such material inconsistencies or apparent material misstatements. we are required lo delemiine whether this gNes rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we ¢onclude that there is a malerial misstatement of this other information. we are required lo report that fact. We have nothing to reFX)rt in thts regard. Oplnions on other matters prescribed by the Companles Acl 2006 In our opinion, based on the work undertaken in the course of the auditr. the inf0mpt￿n given in the Trustees Annual Rewrt. which indudes the Directors. Report and the Stralegic Report prepared.for the purposes of company law. for the financial year for which the financial statements are prepared is consislenl wilh the financial statements., and the Directors. Report and the Strateg¢ Report induded within the Trustees Annual Report have been prepared in aC¢Ordan￿ with apPI￿able *al requirements. Mattevs on which we ore r•quired to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and .Iheir environment obtained in the course of the audiL we have not Klentsfied material rnisstaternents in the Directors, Report or the Strategic Report included wrthin the Truslees Annual Report. We have nothing to report in resFecl of the following matter5 where the Companies Act 2C￿ requires us lo report to you rf, in our opinion". adequate accounting records have not been kept by the parent charitsble company. or retums adequate for our audit have not been received from branches nol visited by us". or the parent charitsble company finanual staiements a￿ not in agreement with Ihe accounting records and retums". or certain disdosures of trustees. remunerai#)n St￿￿fied by law are not made., or we have rKIt received all the infomiation and explanakn.ons we require for our audit. Responslbllitles ol Trnstees As explained more fully in the Ststemenl of Trustees. res[￿SibilItieS set out on page 26, the trustees {who are also the directors ofthe Charitsb￿ company for the purposes ofmmpany law} are responsible for the preparation of the financial statements and for being sab"sfied that they give a true and fair view, and for such internal control as the trustees delemiine is necessary lo enable the preparation of financtal statements thal are free from material misstslement. whether due to fraud or error. In preparing the financial ststements. the trustees are resFwsibk'for assessing the group's and parent haritable company s ability lo conb'nue as a going concem. disclosing, as applicable, matters related lo going concem and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or io cease operations, or have no realistic altemative but to.do so. 281Page War¥*ick Students, LIn￿n Annval Report and CorwI￿al8￿ S￿1￿ert5 2022 INDEPENDENT AUDITORS. REPORT (Continued) Auditorfs responslbllities for the audit of the financial statements Our objectives are to oblain reasonable assurance about whether the financial statements as a whole are free from material misstatemen( whether due to fraud or error, and lo issue an auditorfs 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 IUKI will always delect a material misstalernent when it exists. Misslalemenls 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 dea5ions of users taken on the basis of these financial statements. The extent lo which the audit was considered capable of detecting irregularities. including fraud Irregularities afe instances of non-compliance wth laws and regulations. The obj-ecttves of our audit are to obtain sufficient appropriale audit evidence regarding compliance wth laws and fegulaiions that have a direct effe¢t on the determination of malenal amounts and di5dosu￿S in the financial slalements, to perform audit prccedures to help kyenlfy instances of non-compliance with other laws and regulalions that may have a material effect on the financial statements, and to respon.d appropriately lo identified or suspected nOn￿COMpliance with laws and regulations Klenlrfied during the audit. In relation to fraud, the objecty.ves of our audrt are to klenttfy and assess the risk of material misstatement of the financial slatements due lo fraud, lo oblain suffiC￿nt appropriate aLsdit evidence regarding the assessed risks of rnalerial misslaternenl due lo fraud through desvaning and implernenling appropriate responses and to respond appropriately to fraud c* SUSFecied fraud m1entif￿ during the audit. However, it is the primary responsibilty of managemenL wrth the oversight of those charged with governance, to ensure that the enlills operab.ons are corKlucted in accordance with the provisions of .laws and regulab'ons and for the preventson and detection of ffaud. In identifying and assessing risks of material misstatement in respect of irregularities, induding fraud, the group audit engagement team-. obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the group and parent charitsble company operates in and how the gfOUP and parent charitable ￿MpanY are ￿mPlyIng wth the ￿al and regulatory frameworks", inquired of management, and those charged governan¢e, about their own identsf￿11O￿ and assessment of the risks of irregularities. i￿lUding any known actual. suspected or alleged instances of fraud., discussed matters aboul r￿n-COMpliance with laws and regulations and how fraud might oecur including assessment of how atKI where the financ￿1 statements may be susceptible to fraud. As a iesult of Ihese procedures we consider the sNJnificant laws and regulations that have a direct impact on the financial stslements are FRS 102, Charities SORP {FRS 1021, Companies Act 2006. Charities Act 2011. the parent charitable company's governing document, tax legislation and Charitse5 {Proleclion and Social Inveslmenll A¢1 2016. We performed audit procedures to dele¢t non- 0mplian￿$ which may have a material impact on the financ￿1 stslements wh￿h included reviewin9 the financial statements including the Trustees Annual Report, remaining alert lo new or unusual transactions which may not be in accordance wrth the governing documents, inspecting correspondence with iocal tax authorities and evaluab.ng advice re￿ived from extemal advisors. The most stgnificant laws and regulatKins that have an indirect impact on the financial ststements are those in relation to the Food Standards Act 1999. UK General Dats Protection Re9ulalion, Health and Safety at Work elc. Act 1974, and The Repo￿.n9 of Injuries. Diseases and Dangerous Occurrences Regulations 2013. We pertomed audit procedures lo inquire of management and those charged with governance whether the group ￿ in compliance ￿ these law and regulats.ons and inspected Correspondence with regulatory authonbes. 291 Page WarY4ick Sluden15' Union Annual Report and CO￿l￿JaIed Sl#temÈnts 2022 INDEPENDENT AUDITORS. REPOR T (Continued) The audit engagement team identified the risk of management override of controls and revenue recognrtion as the areas Whe￿ the finanaal statements were most Su￿ptib1e to material misstatement ' due lo fraud. Audrt pr(Kedures perfomed in¢luded but were not limited to testing manual journal entries and other adjuslmenls and evaluating the business rationale in relation to signif￿nI, unusual transacts.ons and transactions entered into outside the nomial ¢ourse of business, obtaining revenue docUmentat￿1n and confirrning the revenue has t*en corfectly recognised in line wth FRS102 A further description of our reS￿n￿bIll￿.es for the audrt of the financial statements is provided on the Financial Repottyng Council's websrte at htt ."IlwwM.frc.o .ukJaudttorsres nsibililies. This description . forms part of our auditorfs reporL Use of our report This report is made sokly lo the Charitab￿ company's members. as a Lx)dy. in accordano with Chapter 3 of Part 16 of the CoMpan￿S Act 2006. Our audit work has been undertaken so that we mvJht state lo the charitable company s members those matters we are required to stste to them in an audilorfs report and for no other purpose. To the fUl￿st extent perinitted by law, we do not accept or assume resp)nsibilily to anyone other than the charitsble company and the ehariiable'company's members as a body. for our audit work. for this report, or for the opinion5 we have formed. PAUL OXTOBY (Senior Statutory Auditor) Fof and on behalf of RSM UK AUDIT LLP. Statutory Audtlor Chartered Accountants 103 C￿MOre Row Birmingham B3 3AG Date 301 Page Warwick Slu¢Jenls' Union Annual Report and Cowl*Jaied Sta*n*nts 2022 CONSOLIDA TED STA TEMENT OF FINANCIAL ACTIVITIES Incluthng income and expenditure account lor the year ended 31 July 2022 Unrnstriet•d Dtrsignated Restrict•d Funds Funds Funds 2022 TOTAL 2021 TOTAL Note INCOME Donations University Grants Government Grants 3.092,644 50.740 35.310 3.127,954 50,740 3.054.950 657,006 Income from Charitsble Activsties Food and Bevera9e VènuÈs. Events & Enlertainments Administration and Support SeThtis Students Services & Representa¢kin s￿dent Activities. Socielies & Sporfs CILth Ineome from Tradin9 Activitie8 Commercial Income Marketing & SkX)nsorship Investmènt Incomè- Interest Reeèivab 1.657.330 1,C63.775 1.6S7,330 1.063,775 6.188 1,683 526,112 291.560 14.636. 136.84BI 1.139 267.983 1,683 323.179 202.933 1,578,162 14.955 1.578,162 14,955 1.348 1217.913 1.4SO 434 TOTAL INCOIAE 7.788,504 239,743 8,028,247 5,470.223 EXPENDITURE Expenditure on Raisin9 Funds Commerckil Activities Expenditure on Chafltable Activlties Food and Beverage Venues, Events & Entertainménts Student Mefflbership knices Reprèsentation & Affiliatyons SuJdÈnt Activities, Sorietyes & Sports Clubs 1.220.894 1320,894 878,135 1,6C4J.210 1,WS.O&S 668.359 1.600,210 1,005.066 699,993 366,998 1.347.764 1,425,471 622.335 899,922 404,813 1,078,946 31,634 1,151.044 196,720 TOTAL EXPENDITURE 6,012.571 228.354 6.240.925 5,309.622 NET INCOME 1,775.933 11.389 1.787.322 160,601 Transfers Bets¥een Funds NET MOVEMENTS IN FUNDS 15 62.708 1.838.641 162,708} {62.7081 11.389 1.787.322 160,601 F¢Jnd Balances Br￿ht For¥Ard {6.860,057) 268.672 71,919 {6.519,4661 . {6,680.C671 TOTAL FUNDS CARRIED FORWARD (5,021.4161 205.964 83.308 {4.732.1441 16,519,466) This Consolidated Statement of Financial Activities represents a consolidation of the income and costs for Wa￿iCk Students, Union. Students. Union Services WaThMck Limited and Membership Solutions Limited, all operations are continuing. 311 Page Sludenls. UnK)n Annual Rewrt and Consolidated SiatemÈnts 2022 STA TEMENTS OF FINANCIAL posifioN Company Registration Number.. 07297865 GROUP 2021 UNION 2022 2022 2021 Note FIXED ASSETS Tangible Fixed As5¢1$ Intan9ible Fixed Assets Investments 181.559 233.355 . 181,559 233,355 16,664 16.e64 17,934 17,934 198.223 250,019 199.493 251.289 CURRENT ASSETS Stocks Debtors short.term Dep)sit¥ Cash at Bank and in Hand 18,562 531.521 1.876,556 1,081,9)2 34.238 416.e69 1.242,737 927.876 18,562 479.382 1.498,079 1.070.101 34.236 324,467 1,039,244 915,215 10 3.$08.541 . 2.621.520 3.066.124 2.313.164 CREDITORS Amounts fall￿9 due wlhin ye 11 {l,834.2￿)I (1.445.802) 11,393.603) 11.139.216) NET CURRENT ASSETS 1.674.291 1.175.718 1.672.521 1.173.948 Prowsions for Liabilities & Charges 13 {6.&)4.6581 17,9452031 16.604.658) 17.945.203} NET LIABILITIES {4.732,1441 16.519.466) 14.732,6441 16.519,9661 REPRESENTING Charitable Funds Restricled FuThY5 17 83.>)8 71.919 83,308 71.919 Unrestricted F￿*1$ General Pension Designated 1.583,241 16.e04.6581 205.965 1.085.146 (7.945.203) 268,672 1.582,741. ' 1.084,646 (6.604.6￿) 17.945,203 205,%5 268.672 15 TOTAL FUNDS {4.732.1441 16.519.466) 14.732.644) 16.519.966) The Company's surplus and tolal comprehensive expenditure for the year was £1,787,322 (2021.. surplus: £160,601) The financial statements on pages 31 to 56 were approved by the Board of Trustees and authorised for issue on 16 February 2023 and are signed on rts behalf by: O. f (5/QAJ&L Jack Sperry VP Democracy and Development President 32 IPaEe War%wck st￿ents. Uni Annual Report and Consol￿ale￿ stsle￿￿rts 2022 CONSOLIDA TED STA TEMENT OF CASH FLOWS 2022 2021 Nel Cash Inflow from OperaknrwJ Ad1￿.￿$ 845.278 29.338 INVESTMENT ACTIVITIES Inte￿$t Received Purchase ofTangible Assets 434 (35.8041 158,7811 Cash used in Investing ACIN￿e$ (57.4331 135.370} INCREASEIIOECREASEI IN CASH AND CASH EauivALEMT 787,84S 16.0321 Cash and Cash Equivalents at the ￿InnIng of ihe Year 2.170.613 2.176,845 Cash and Ca¥h EqU￿alentS at the ErMI of the Year . 2,956.458 2.170,613 REPRESENTEO BY: Cash and short.temi Oeposiis at Bank 2.958.458 2.170.883 331 Page WafwKk SIL¥1enis' Union Annual Report and ConsdKtated Statements 2022 PRINCIPAL ACCOUNTING POLICIES General Infomiation Warwick Students, Union Limrted is a Charital￿e ￿rnpanY limrted by guarantee and domiciled and incorporated in England. The address of the Company's registered Offi￿ and principal place of business is Warwick Students, Union. Universrty of WaThwick, Gibbet Hill Road, Coventry, CV4 7AL. These accounts represent a consolidation of the accounts of Warwick Students, Union and its subsidiary undertakings Students, Union servI￿s Warwick Limrted and Membership Solutions Limited. The Company s and the Group's principal activities are as disclosed in the Annual Report of the Board of Trustees. Basis of Accounting The accounts have been prepared under the Charities Acl 2011. in accordance with the Statement of Recommended Practice. 'Accounting and Reportiro by Charities.. Statement of Recommended Practice" applicable to charities preparing their accounls in accordance wilh the Finanoal Reporting Stsndard applicable in the UK and Republic of Ireland IFRS102) effective 1 January 2015 (Charities SORP IFRS102) - Second Edition), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102> and the Companies Act 2006 Warwick Students, Union meets the definition of a public benefit entty under FRS102. Assets and liabilities are initially recognised at histoncal cost or transaction value unless otherwise stated in the relevant accounting policy note(s). FRS102 Reduced Disclosures In accordance wth FRS 102. the Company has taken advantage of the exemptions from the following disclosure requirement5-. Section 7 'Statement of Cash Flows, _ Presentatton of a Statement of Cash Flow and related notes and disclosures.. and Section 33 'Related Party Disdosures'_ Compensation for key management personnel. Judgements and Estimations The Board of Trustees have not made any signrficant judgements and estimats'ons in the process of applying the accounting policies eX￿pt for the rewgnrtion of the Students, Union Superannualion Scheme.{SUSS) pension liability. see Note 21_ There are no areas of estimation uncertainty that have a significant risk of Gausing a material adjustment to the carying amounts of assets and liabilities within the next financial year except for SUSS pension liability. The SUSS pension scheme conducted a fu51 actuarial evaluation as at 30 June 2019 and all estimates are based on the infomiation arising from this valuation. This includes a review of the discount rate used in the calculatson of the pensi￿ liabilty vthich after ConS￿￿eration has been increased to 3.70A (2021.. 1.7%). 34 |Page War%*id( Sludenls, VnK•n Allnual Report and Censohoaied sts¢￿ents 2022 PRINCIPAL ACCOUNTING POLICIES (continued) Financial Instruments Warwick Students. Union and tts subsidiaries only have financial assets and financial liabilities of a kind that qualify as basic finanaal instruments. Basic financial instruments are initially recognised at transaction value and subsequently ffleasu￿d at their settlement value. Going Concern Wamick Students, Union reports a net liabilities position of £4,732,144 on its consolidated balance sheet as at 31 July 2022. This is directly as a result of recTr3nising the discounted Students, Union Superannuation Scheme (SUSS) pension liability calculated as £6,604.658 (2021.. £7,945,203) for both the Union and its subsidiary companies. However, this liability is payable on an incremental basis over a period to August 2035 and the￿ is no reason to believe that Warwith Students. Union" cannot meet its annual commitments to repay this liability. An independent actuarial review of the scheme is taking place as at 30 June 2022, and any changes in deficit contributions will come into effect from October 2023. The Board of 'Trustees wll montior the impact that this may have on the Union.. The cu￿ent economi¢ conditions. particularfy in tems of cost of living issues facing students, creates uncertainty parts"cularly over the level of demand for the Union's seNices. The Union will, as part of the 2023 Five-year Planning pro￿$$, will consider a range of options to mitigate the impact of this.. including identifying cost reductions. commercial pricing and what activities can be delivered. HoV￿ver, current infomiation from the University of WaThvick indicates that future income provided under the block grant agreement will be maintained at least at currenl levels. although discussions on a revised funding covenant with the University are planned to be included in the forthcoming planning process. The Union's forecasts and projections, takirvJ account a prudent assumption on the return to pre-COVID levels of trading and increased costs. show that the Union should be able to operate within the level of its current facilities for at least twelve months from the date of approval of these accounts. Cash balan￿S held by the Union remain heatthy and increased by a total of £787.845 over the year. Trustees Gonsider that cash balances held remain sufficient to meet current liabilities and to support the approved Reserves Polry. It is forecast to be a reduction in the level of unrestricted reseNes at the end of 2022-2023. The Trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. They continue to adopt the going concern basis of accounting in preparing the annual financial statements. 351 Page War￿Ck Students, Uni Annual Report and CMs¢l*Jated Slalefflen15 2022 PRINCIPAL ACCOUNTING POUCIES (continued) Basis of Consolidation The financial statements ¢onsolidate the finanaal statements of the charitable company and its subsidiary undertakings. Inter-group transactions, balan￿S and profits are eliminated on consolidation. The consolidation is Garried out on a line-by-line basis. In accordance wbth Section 9 of FRS102 - Consolidated arKI Separate Financial Statements - both Students, Union Serwces Warwick Limited and Membership Solutions Limited are considered to be under the control of the Union. A separate Statement of Financial Activities (SOFA) for the charity itself is not presented because the charily has taken advantage of the exemption afforded by Section 408 of the Companies Aci 2006. For the charitable company f¢y the peri¢)d ended 31 July. 2022 2021 Income Expenditure 6.842,740 (5,055,418) 4.619,292 {4,458.691) Nel Income for the Period 1.787,322 160,601 Tangible Fixed Assets Fixed assets are stated at cost less accumulated depreciation. The cost of minor additions - aside from computer equipment - or those costing below £1,500 are not capitalised and are written-off to the income and expenditure account in the year in which the expenditure occurred. IT equipment is caprtalised if the item value is greater than £400 irKlividually or in aggregate. The Union occupies premises provided by the Universty of Warwid( and the University Of￿a￿ick Foundation Fund under lease and does not include these as assets. Intangible Fixed Assets Intangible Fixed Assets includes significant investrnent in non-physical assets such as software systems. Software sy.stems are capitalised rf the item value is greater than £10,000. Depreciation Depreuation is provided to write-off the cost less the estimated residual value of fixed assets. by equal instalments over their estimated useful lives as follo￿5.. Years 3-10 Building Improvements. Fixtures & Fittings General Equipment. Vehicles IT Equipment - Desk Top Computers IT Equipment - Laptop Computers Sofhvare 361 P.age wal￿dE Sludenis. UnK*n Annual Report and Consolwjaied stat￿￿ents 2022 PRINCIPAL ACCOUNTING POLICIES (continued) Stocks Stoths are valued at the lower of cost and net realisable value. Cost is recognised on a first in, first out basFS. Net realisable value is based on estimated selling price less the estirnated cost of disposa1. Income The Union receives donations in the fom of a block grant fr￿￿ the University of War¥vTr¢k and this is credited to the financial statements in resped of the period to whth each grant relates. .All income and capital resources are recognised in the accounts when the Charity is legally entitled to the income, the amount can be quantthed, arKI re￿ipt is probable. Income from charitable activities includes income re￿iVed under Contract or where entitlement to grant funding is subject to specific perfomiance conditions or relates to primary purpose charitable trading. Such income is recognised as eamed as the related goods or services are provided. Income from commercial trading activities (net of Value Added Tax) is recognised as eamed when the related goods and services are provided. Investment income is recognised on a receivable basis Expenditure Expenditure is recognised vthen a liability is incurred. Liabilities are reccgnised as soon as Ihere is a legal or Constructive obligation commttting the charity to pay OLrt resources. This applies to the annual grant awards made by the Union to third party student sports clubs and societies. Contractual arrangements and perfomiance related grants are recognised as goods or services are provided. Expenditure incurred on charitable activtties comprises the direct and indirecl costs of delivering public benefit. This indudes expenditure associated 4Mth student democracy. academic representation, student advi￿ and weffare. student development and charitable trading. Expenditure on raising funds includes costs incurred in trading and commercial activities undertaken to raise funds as V￿11 as to attract donations. Support costs consist of overheads and govemance costs and are apportioned to activities on a basis consistent with the use of the resources. Support costs include central functions such as Finance and HR (see note 2) and the building leases. Expenditure includes irrecoverable Value Added Tax. Termination Payments The Union recognises a liability for terminats'on benefrts at the point vthere it is committed to making the payments in retum for employee rRdurKlancy. Leased Assets All leases are operating leases and the annual rentals are charged to expenditure as the costs fall due. 371Page Sludents. Unic . Annual Re￿rt ConsolHYaled Sialemenls 2022 PRINCIPAL ACCOUNTING POLICIES (continued) Defined Benefit Pension Scheme The group participates in the Students, Union SuFerannuation Scheme, a defined benefrt scheme thich is externally funded and the members are contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualrfied independent actuary with the rates of contribution PaYa￿e being detemined by the Trustees on the advice of the actuary. The scheme closed to futu￿ accrual on 30 September 2011. INhilst the Scheme operates as a pooled arrangement. under FRS102. a contractual agreement under a multi*mployer defined ￿nerrt pension scheme to fund a past deficit should be accrued for as a liability discounted to net present value. War¥vick Students. Union participates in both the National Union of Students Pension Scheme (NUSPS) - proved by Ae9on which is a brand name of.Scottish Equrtable plc - and the government NEST scheme. Both NUSPS and NEST are defined contnbution schemes and are accounted for under the terns of FRS102 based upon adual contributions paid during the year. Investments Warwid( Students. Union has fixed asset investments in NUS Services Limited which are valued at cost. as these assets are not readily saleable and a reliable market value is not readily available. The Board of Trustees value the shareholding in the subsKliary companies at fair value. Funds Structure Warwick Students, Union administers and accounts for a number of charitable funds. as follows" Unrestricted Funds representing unspent income vthich may be used for any activity I purpose at'the Board of Trustees, discretion. Deswnated Funds set aside by the Board of Trustees to be spent on some specffic purpose at ils own discretion, which indudes financing key strategic projects such as. building refurbishment. Restricted Funds raised and administered by waTh1￿Ck Students. Union for specific purposes. This includes revenue receNed from a donor to be used for adivities prescribed by the donor. Custodian Funds entrusted to Warwick Students, Union for safekeeping. but not under its control such as Sports Club and Society funds (including annual Raising and Giving). Custodian activities are disclosed in the Annual Report. but any associated income or expenditure has been excluded from these accounts. and a matching creditor is in place for these. Taxation Warbwck Students. Union became a registered charity on 1 August 2010 and is considered to pass the tests sèt out in Paragraph 1 Schedule 6 Finance Act 2010. Therefore. rt meets the definition of a charitable company for UK corporation tax purposes. Accordin9ly. the charity is potentially exempt from taxation in respect of income or capttal gains received bwthin 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 chanlable purposes. 38 | Page Warnwck Students, Union Annual Report and Consolllaled Ststeff*nts 2022 PRINCIPAL ACCOUNTING POUCIES (continued) Students. Union Services Warwick Limited The taxable profrts of Students. Union se￿ices Warwick Limited are donated. through a deed of Govenant. under Gift Aid to the Union wbth the Consequen￿ that no tsxation is payable by that company. Membership Solutions Limited The tsxable proffts of Membership Solutions Limited are donated. through a deed of covenant, under Grft Aid to the Union with the consequence that rK* tsxation is payable by that company. 391 Page W*ivick Students. UnK)n Annual Report and Consolhdated Slaternents 2022 NOTES TO THE FINANCIAL STA TEMENTS Consolidated Prior Year Statement of Financial Activities for the Year Ended 31 July 2021 Unr*strieted Funds Designated Funds Re5tri¢ted Funds 2021 TOTAL INCOME Donations University Grants J¢)b Retent￿ Scheme Grant 3,030,050 657.( 24.9CQ 3,054,950 657.CK 1ncome.from Charitabl• A¢ti¥lti•s IFood and 8evera9e Venues. Events & Entertainments Administrabon ar¥J Support Services Studènts Services & RÈpreser7talion Student Activities. Societies & Sports Ckjbs In¢crfne from Trading Activities Cornrneraal Income Marketing & Sponswship Investrnent Inc¢)me- Interest Receivable 291,560 14,636 I40.0￿} 1.139 227.339 291,$60 14.636 136,8481 1.139 .267.983 3.242 1.217.913 1,450 434 1.217,913 1.450 434 TOTAL INCOME 5,401,437 68.786 5.470,223 EXPENDITURE Expenditure on Raising Funds Commercial Adi¥its"es Expenditure on Charitable Activitie¥ Food and Beverage Venues, Events & Entertainments Student Membership Services Rep￿SentatIOn & Affilialions Student Activibes. socith.es & Sports Clubs Increase In SUSS Pens5ons Llabillty 878.135 878.135 1.425,471 622.135 8gX),050 404.813 1,038,302 1,425.471 622,335 899,922. 404.813 1,078,946 9.872 TOTAL EXPENorfuRE 5,259.106 50.516 5.309.622 NET INCOME 142.331 18.270 160.601 Transfers Be￿en Funds NET MOVEMEMT IN FUNDS 32.081 174.412 132.0811 {32.081} 18,270 160,601 Fund Balances Broughl FoThAr (7.034.469) 3CM).753 53,649 16,680,067) TOTAL FUNDS CARRIED FORWARD 16.860.OS7) 268,672 71.919 16,519,466) 401 Page WaTh¥Kk SILKlenls' Union. Annual Report and c￿5011daIed Statements 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 2. Charitable Activity and Support Costs Optrating Expenses Support Costs Charitable Activlty Cosls Charitsble AclNity Cost Reallocat Food and 8everage Venues. Events & EntertAinments Student Membership Semces Sludenl Representation and Affiliation$ Student Activities. Societies and Sports, TOTAL Staff Costs Cost of Sales 1,600,210 1,005.066 699.993 366.998 769.181 253.253 421.960 163,115 491,194 323,848 120.240 52.495 105.235 11,214 412979 219,595 375,470 172,798 192,669 698311 5.020.031 1,143.983 815.042 702.163 1,658.843 2021 4.431.487 1.701.344 115.983 294.879 . 2.319,281 Cl￿ritable Actlvlty Costs Summary 2022 2021 Food and Beverage Venues, Evènts & Enlertainments Student Membership SeNces Sludent Representation arKI Affiliab"(￿s Sludent A¢tivi¢ies. Socteties and SwJrt$' 1.6CQ,210 1.O05.L￿6 699,993 1.425.471 622.335 899,922 404.813 1.078,946 1.347.764 5.020.031 4.431A87 Student Representation expenses indudes the affiliation fee for the National Union of Students, of £37.500 (2021.. £37.500) For further infomiation on affiliations see Note 23. Affiliations on page 56. Govemaneè. Admin & General 1anagem•nt h1arketlng, IT& Comms. Finance &HR Support Costs TOTAL Premis•s support.cost RealloG8ti¢ Food and Bevèrage Venues. Events & Entertainffents Student Membership SeNces Student Reprèsèntation and Affiliats"ons Sbjdent Activities. Soaeties and SpNts Clubs 42.1 13.2 219.595 375,470 172.798 192.669 698311 251.665 272.637 1ST.2￿* 104.860 262.151 (167,883) 132.899) 1120.224) {48.(￿} 164.533 70,657 70.614 70.614 70,657 141 314 65,156 65,118 65,118 65.15S 130,313 10.5 100.0 1.658.843 1.048.603 1204.4771 423.8S6 390.861 2021 2.319,281 910.564 798.9S9 331.464 278.294 Support Costs Sumfftary. 2022 2021 Food and Beverage Venues. Events & Entertainments Student Membership s￿ice$ Student Representstton and Affilrdb"ons Student kbvities, Sct*ties and sp￿ Clubs 641.262 514.303 404.119 282,089 827 947. 571.029 426.538 372.744 237.178 711.792 ' 2.669.720 2,319.281 41 IPage Warwth StLHlents' Union Annual Report and Consolmlated Stat￿nIs 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 2. Charitable Activity and Support Costs (continued) Support costs are allocated on the following basis: Premises is allocated on space occupied Finance is allocated on total number of finanoal transactior HR is allocated based on staff costs Marketing, IT Services and Communications are pro-rata across all activities. Governan￿. Administration and General Management are pro-rata across all activities Governan￿, Administration and General Management costs include.. 2022 2021 Govemance Costs Auditors, remuneration - Audtl Fees Auditors, remuneration - Taxab'on Services Professional Fees- IT Contracts & Structures Other Legal and Professional Fees Board of Trustees - Committee Expenses Board of Truslees - Travel Reimbursements 24.950 22.673 5.874 49.714 18,000 24.575 11,896 45,652 103,211 100.123 Insurance Irrecoverable Value Added Tax. 72.462 82.384 38,156 220 663 262 052 3. Net Movement in Funds 2022 2021 Net Movement in Funds for the Period is Stated After Charging Auditors, remuneration Auditor Fees Tax advisory 24.950 22,673 18.000 24,575 Cost of Stock Recognised as an Expense 491.194 100.179 Stock expended in each year relates to the costs of fo¢)d and beverages sold across the Union's venues. 42 | Page war￿￿k Students. U¢Mon Annual Report and Consolidatetl Stater￿nts 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 3. Net Movement in Funds (Continued) 2022 2021 Net Movement in Funds for the Period is Stated After Charging Depreciation and Amounts Written-off Owned Tangible Fixed Assets Owned Intangible Fixed Assets. 110,577 119.132 2.050 121182 Operating Lease Rentsls -Plant and Machinery Buildings 475.307 475 307 475 307 4. Staff Costs 2022 2021 The Aggregate Payroll for the Year was Salaries and Wages National Insurance Oefined Contribution Pension - Contn'butions in the Year Defined Benefrt Pension (SUSS) - Unwinding of Discount Factor 3,140.732 277.604 142,697 119.037 2,823,607 266,142 147.277 146.232 3 680 070 3 383,258 Pension Liability Changes relate to effect of changes arising from the triennial actuarial valuation on the overall SUSS pension liability in line with FRS102. -The dis¢ount faelor relates to the reduci#)n in the SUSS Pen$ms liability arising from the annual payments m￿e to the SUSS Trustees as part of the Fdan to reduce the unfvnded part of the 5theme. 2022 2021 The A verage Staff Numbers was as Follows Monthly Salaried Staff l Full Time Equivalent- Group Monthly Salaried Staff l Full Time Equivalent- Union 115.00184.03 119.00187.65 99.75 171.22 106.75 176.33 Weekly Paid Staff l Full Tirne Equivalent- Group Weekly Paid Staff l Full Time Equivalent- Union 258.00 125.06 143.00 110 46 258.00 125.06 143.00 110.46 431Page Wa¢v+ick Slts¢Jenis' un￿ Annual Report and Consokojated Slaternents 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 4. SL1ff Costs (Continued) The number of employees employed by the Union and MSL receiving benefrts above £60.000 within the year.. 2022 2021 £65,000 - £69.999 £8Q,000 - £84,999 £85,000- £89.999 . £90,000- £94,999 . £105.000- £109,999 £135,000- £139,999 The above members of staff, including those are not part of the Unions Key Management Personnel, are in the Union's defined contribution scheme. The employer pension contributions amounled to £20.096 (2021. £19.980) forthese employees. A further amount of £2,971 {2021'. £Nil} has been provided for in respect of bonus payments agreed by Ihe Membership Soluiions Limited Board, but not yet paid. vthich are includèd in the above analysis. Warwick Students. Union made temiinations payments to tbvo employees in respect of the termination of their employment during 2021-22. These payments total £13.103 (2021: £93.951}. 5. Key Management Personnel. Trustee Remuneration and Expenses The key management personnel are the TrusteelDirectors, Full-fime Officyrs and the Chief Executive of Warwick Students. UnK)n. As well as having a role as a Trustee of Warwick Students. Union the seven Full-Time Officers pèrfomi . a role as the voice of Wap•vick students. They are authonsed in the Union's govemirvj document to represent students. undertake campaoning and support work as dislinct from their trustee responsibilities. They listen to how students want things to be done and work with Warwick Students. Union staff, the Board of Trustees and partners to make it happen. They represent students to the University of WaThvick. external organisations and the wider. community. Each of the Full-Time Officers received a salary of £22.110 {2021: £21.784) during the year. This salary was remunerated by way of their role as a Full-Time Offi￿r- not as a Trustee. 2022 2021 Total Remuneration Paid to Key Management Personnel is Salaries National Insurance Pension Costs 221.274 21,829 224.712 21,329 248.842 253 672 441 Page Warwtck Sluden15' Vnion Annual Report and Con5d￿¥te￿ Statements 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 5. Key Management Personnel. Trustee Remuneration and Expenses (continued) The Board of Trustees are entitled to ¢laim and be reimbursed for personal travel and subsistence expenses in perforniing their role as a Trustee. and the amount paid to Trustees for such expenses was £nil (2021.. £nil). No Trustees received any remuneration as a result of their role as Trustee. A number of the Union's Trustees have personally. chosen to waive their expenses and not claim travel expenses to attend Board and Committee meetings. The value of these expenses is unknown. Warwick Students. Union also incurred costs of £3.461 {2021'. £3.461) wrthin the year relats'NJ to Professional Indemnity Insuran￿ cover of £2m (2021.. £2m). This policy included cover for the Trustees, Directors, Offi￿rS and employees of the Union. 6. Flxed Assets- Group and Union Fixtures, Fittings and IT Equipment Building Improvements Intangible Isoftwaro) TOTAL Cost 1 August 2021 1,144,303 73,039 1,012.483 58,781 Additions 58.781 31 July 2022 1,203.084 73,039 1,071,264 58,781 Dep￿CIall0n 1 August 2021 910,948 35,114 817.053 58,781 Charge for the Year 110.577 6,377 31 July 2022 1,021,525 41,491 921,253 58.781 Net Book Value 31 July 2021 233,355 195.430 31 July 2022 181.559 31,548 ' 150,011 451 Page wa￿￿k Students. Uni Annual ReFort and c￿)￿1￿jaie￿ Sta¢￿Ents 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 7. Capital Commitments 2022 2021 Future Capital Expenditure Authorised but not Contracted Contracted 8. Fixed Asset Investments GROUP 2022 UNION 2022 2021 2021 NUS Sepiices Limited . 16.664 16.664 8.332 8.332 Investment in Subsidiary Companies 9.602 These amounts represent deposits held under NUS Services Limited Central Billing Scheme for Students, Unions and is held in respect of payment for monthly supplies of breV￿d and other products. Warwick Students, Union also holds equty share capttal in the foll0v￿ng unlisted companies.. Students. Union Services Warwjck Limited." Warwick Students. Union holds 102 ordinary shares of £1 each being 100% of issued ordinary shares. Students, Union Serwces Warwick Limited is registered and operates in Great Brttain. The primary nature of the business being non-primary purpose trading services on behalf of the charity. Tumoverfor Ihe year ended 31 July 2022 was £153,950 (2021.. £68.0071 and profrts of £79,905 (2021.. £20,844} were generated which was donated to the Union under gift aid Nel funds at 31 July 2022 were £102 {2021.' £102). The total assets at 31 July 2022 were £237,289 and total liabilities were £237,187. 461 Page Wa￿l¢k Students. UniDn Annual Report and Con$olidated Slater￿n[S 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) Membership Solutions Limited." wa￿l¢k Students. Union directly owns 9.500 (2020.. 9.500) £1 ordinary shares in Membership SolLrtions Limited, a company limited by shares registered in Great Britain, being 95% of its issued share caprtal, and controls the remaining 5%. The primary nature of the lyJsiness is the sale of membership and other IT related systems. Tumover for the year ended 31 July 2022.was £1.470.711 (2021-. £1.177,160) and a profit for the year of £nil {2021.' nil) was recorded after the payment of a donation made under grft aid to the Union of £266,625 (2021.. £297,186). Net funds at 31 July 2022 were £10.000 (2021: £10,(K)O). Total assets at 31 July 2022 y￿re £463.411 and total liabilities were £453,411. 9. Stocks GROUP 2022 UNION 2022 2021 2021 Bars 12.156 31i.931 12.156 30,931 Catering 6.406 3.307 6.406 Goods for Resale 34.238 10. Debtors GROUP 2022 UNION 2022 Amounts Falling Due Within One Year 2021 2021 Trade Debtors 225,340 191,059 37,489 9,696 Amounts Due From Subsidiary Undertakings 245.947 147,849 . Cxher Debtors 9.477 8.258 701 Prepayments and Accriied Income 296,704 217,352 195,946 166.221 $31,521 416,669 479,382 324 467 471Pa@e Warmck Students. Union Annual Report and ConsolKSated Slaterrents 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 11. Creditors GROUP 2022 UNION 2022 Amounts Falling Due Within One Year 2021 2021 Trade Creditors 229.856 42,319 207.962 28,521 Amounts Held for Clubs and Societies 832.755 782.009 832,755 782,009 Other Taxation and Social Security 165,146 78,333 165.146 78.333 Other Creditors 206.219 77,921 68,427 59,909 Accruals and Deferred Income 400,274 465,220 119313 190,444 1.834.250 1,445.802 1.393,603 1139216 Amounts held for clubs and societies represent balances held on behalf of these bodies. these funds have been generated separately from thé activities of the Union and the.use of these funds is directed by the individual club or society. Warbwck Students. Union acts as a custodian for these funds. 2022 2021 ' Deferred Income - Group At 1 August 246.030 151,445 Released During the Year Additions During the Year (877.236) 880,551 (960,750} 1055 335 At 31 July 246,030 . These arnounts include receiptS-in-advan￿ for Membership ServKes Limited. 12. Financial Instruments The carr￿ng Amount of the Groups Finawal Instruments al 31 July bvere GROUP 2022 .2021 UNION 2022 2021 Financial Assets Debt Instruments At Amortised Costs 423,676 269,309 166,267 Financial Liabilities Measured at Amortised Costs 587.005 339 430 388.403 283 590 481 Page Stu(knts' Un￿n Annual Report and Consolidoted Stater￿n1$ 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 13. Provisions for Liabilities and Charges- Group and Union 2022 2021 At 1 August 7.945.203 8.176.590 Deficit Contributions Paid Unwinding and impact of change in Discount Factor 1448,705) 891.840 (367,301) 135.914 At 31 July 6 604 658 7 945 203 The Trustees of the Student Unions. Superannuation Scheme (SUSS) have implemented a recovery plan aimed at reducing the unfunded element of the pension scheme by August 2035. The plan requires Warwick Students Union to make an annual deficit contribution cash payrnent, vthich increases annually in October. The increase from Odober 2022 is 5% and then 5% annually. The impact of this payment is discounted over the lrfe of the recovery plan to derive the current total liability relating to Warwck Students. Union. The current discount rate is 3.7°/0 (2021.. 1.7°10). reflecting the interest rate of UK Govemment AA Gills. 14. Analysis of Net Liabilities between Funds Provislons for Pension Llabilities Fixed Assets and Investments Net Current Assets Net Fundsl (Liabilities) 2022 Restricted Funds Designated Funds General Funds= WaTwid( Students. Union Pension 83.308 205,965 83,308 205,965 208,325 1.374,916 1,583,241 6.604,658 6 604.658 208 325 4 732.144 Provisions for Pension Net Fundsl Liabilities (Liabilities) Fixèd Assets and Investments Net Current Assets Prior Year: 2021 Restricted Funds Designaled Funds General Funds.. Warwick Students, Union Pension 71.919 268.672 71.919 268,672 260,121 825,025 1,085.146 7.945,203 .945.203 260 121 1 165 616 7 945 203 6 519466 49 | Page Warwick Siudenis. Union Allnual Report and Consth(d8ied Stateffleftts 20Y2 NOTES TO THE FINANCIAL sfAfEMENTS (Continued) 15. Designated Funds- Group and Union 1Aug 2021 31 July 2022 Incorne Expenditure Transfers Strategic Infrastructure 268.672 205.964 1Aug 2020 Income 31 July 2021 Expènditure Transfèrs Strategic Infrastructure 300.753 32.081 268,672 The designated reserve was created to set aside funds for planned strategic developments. The transfer of £62,708 relates.to works undertaken on undertaking a Governance Review and improvin9 the fixtures and fittings viithin the Students, Union premises. and developing the Union's Website. 16. Pensions Reserve 2021 Discounted Reduction in Liabili 2022 At 31 July 7.945,203 6.604,658 501 Page Warwrk Students. Union Annual Report and Consolidated Statements 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 17. Restricted Funds- Group and Union 1 August 2021 Income Expendlture 31 July 2022 2022 Transfersl repaid Sp)rts -Including Warwck Sports Sports - Events and Activities Communty Schemes Sludenl Development. Media Centre Wellbeing, Welfare and Housing Student Led Projects Postgraduate Engagement Inspire S¢heme Sustainability Prgects - Equality and DNersty 300 12,901 32,061 .16,934 20 5,227 1.301 30.052 19.550 20 6.493 13.600 21.140 12,0001 (19,131} 12,6161 11.266} 2.732 553 3.256 7.662 2.lJOO 4,732 553 5,256 5,324 3.938 2.500 11,9381 4,838 71.919 43,178 (31.7891 83,308 All of the above restricted reserves reyesent funds received specifically for the identified activity and are related to grants from the Universty of Wamck and donations for specrfic projects. The grant awards for student led projects have been allocated across the activities in the year. 1 August 2020 Income Expendlture Trnnsfers 31 July 2021 Prlor Year: 2021 Sports-lneluding WaMKk SP￿ Sports - Events and Activities Communty Schemes Student Development Media Centre Wellbeing, Welfare and Housing Student Led Projects Poslgraduale Engagement Inspire Scheme Sustainability Projects- Equalty and Oiversity 300 40.644 4.016 24.996 11.500 20 1.913 140,6441 {2.715) {3.486) 300 1,301 30,052 19,550 20 6,493 8,542 8,050 5.300 1720) 2.732 553 5.817 1.802 2,732 5S3 3,256 (2.5611 390 6.250 53.649 68,786 50.516 71,919 51 | Page Stud8nis' Unw)n Annual Report and Consohdaleil Stat*neftis 2022 . NOTES TO THE FINANCIAL STA TEMENTS (Continued) 18. Grants to Student Sports Clubs and Societies . 2022 2021 Grant A wards by SoCiet￿s Federation.. Media, Perfomiance and Music Campaigning, Charity and Welfare Activities and Hobbies Academic Societies Cultural Societies Faith and Belief 15,164 6.372 11.116 11,060 2.871 13,873 5,765 7.152 3,040 1,527 1.590 49,149 32,947 Granl A wards by Warwick Sport.. Sports Clubs 294,036 105,691 343,185 138 638 These are grant awards. made by th.e Union during the year to student sports dubs and societies. The total grant amount awarded directly to sports dubs to undertake activity in the British Universiti'es and Colleges Sport (BUCS) leagues was £161.095 (2021: £13,845). So¢ielies also received support from the Union for additional costs of undertaking activity in COVID 19 safe spaces. and funds to the sum of £2,803 (2021: £1,376) were issued for this purpose Warwick Students, Union acts as custcxjian for funds raised by the many sports clubs, student societies and RAG (raising and giving) affiliate¢J to the Union. These funds are not consolidated in to the Union's accounts. These funds are held in a separate bank account and the year end balances for each sports club and student society are within the Union's creditor balance (see Note 11). 19. Operating Lease Commitments Group and Union 2022 2021 Land and Buildings Amounts Falling Due.. Wrthin One Year Wrthin Two to Five Years Over Five Years 490.852 1,901.228 8.877 149 490,852 1,901.228 9 352,456 11,269,229 11,744,536 521 Page Wa￿￿tk Studenls. UNon Annual Report and Consolidaied siaterr%nts 2022 NOTES TO THE FINANCIAL S.TA TEMENTS (Continued) Operating Lease Commitments (continued) Group and Union 2022 2021 IT Equipment Amounts Falling Due.- Wrthin One Year Within Two to Five Years 11.092 27.729 38,821 20. Nots to Statement of Cashflows Group 2022 2021 Reconciliation of Net IncomeJ(Expendrfure).' Net Ir￿oMe 1,787,322 160,601 Decrease in Stoc*s (IncreasellDecrease in Debtors 15,676 (114,852) 13,827 145.209 Increasel(Decrease) in Creditors (Decrease) in Provisions 388,448 (1.340,545) (179,6601 1231.3871 Depreciation Interest Receivable 110,577 1.348 121,182 434 Net Cash Inflow from Operating Activities 845 278 29.338 Included within the year end cash balances of £2,958,458 (2021.. £2.568,180> is £832,755 (2021.. . £782,009) relating to student sports dubs and stxieb'es which the Union holds as custodian, in a separate bank account. 531 Page waw1￿k Sludenis. Un Annual Report and CM5olkYated siaiwr$ 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) 21. Pension Scheme The charitable company participates in the Students, Union Superannuation Scheme. a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable bein9 detemined by the trustees on the advi￿ of the actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequen￿. no share of the underfying assets and liabilities can be directly attributed to the charitable company. Under the accounting standard FRS102 and Charity SORP IFRS102), in these circumstan￿$ contributions are accounted for as rf the Scheme were a defined contribution scheme based on actual contributions paid through the year. The Students. Union Superannuation Scheme consists of employees of students. unions and related bodies throughout the country. Benefits in respect of serwce up to 30 September 2003 are accrued on a "final salary" basis. y￿th benefrts in respect of Servi￿ from 1 October 2003 ' accruing on a Career Average Revalued Eamings (CARE) basis. Wrth effect from 30 September 2011 the Scheme closed to future accrual. The most recent Valuation of the Stheme was carried out as at 30 June 2019 and showed that the market value of the Scheme's assets was £119.1 m with these assets representing 460A of the value of benefits that had accrued to members after allowing for expected future increases in eamings. The deficit on an ongoing funding basis amounted to £140.9m. The assumptions vthich ' have the most significant effect upon the resutls of the Valuation are those relating to the sustained low yield on govemment bonds. The following assumpkn'ons applied at 30 June 2019.. Pre-retirement discount rate- 4.OQA. pa Post retirement discount rate - 2_OOA pa Retail price inflation (RPI)- 3.6% pa • Consumer Price inflation (CPI) - 2.6% pa Pension increase in payment for services. 1988 to 1993 (RPI min 3% and max 7%) - 3.90/9 pa, post 1997 (RPI min 3% arKI max 5%)- 3.7% pa and post 2000 (RPI max 5%) - 3.4% pa The 2019 valuation extended the period over which the orvJoirvJ funding deficit would be cleared to August 2035 and recommended a monthly contribution requirement by each Participating Employer expressed in monetary tems. This has reSU￿ed in an increase in contributions by 8% from 1 October 2021 and by a further 5% each year until July 2035. These rates applied with effect from 1 Odober 2021 and contributions due from October 2023 onwards will be reviewed following the next actuarial valuation. Surpluses or deficrts which arise al future valuations will also impact on the Union's future contribution commitment. In addition to the above contributions. The Union also pays its share of the Scheme's levy to the Pension Protection Fur)J. FRS102 and Charities SORP (FRS102). require that the charitable company share of past service shortfall is reflerted in the financial statements. 541 Page Wa￿1Ck Students. Vnw)n Annual Report and Con$d￿ated Ststhmenls 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) Based on the most reont valuation. the charitable company contribution to eliminating the shortfall was £448,705 for the year ended 31 July 2022 (2021.. £367,301). Therefore, at 31 July 2022, the balance sheet of charitable company includes a liability of £6,604,658 (2021. £7.945.203). which represents the net present value of all future contributions towards eliminating this shortfall. The discount rale used is 3.7% (2021.. 1.7%) which is comparable to that for a 15-year AA-rated corporate bond. The estimated liability is based on the 2019 triennial valuation of the scheme and. will necessarily require revision after subsequent revaluations. In addition. the Charitable company paid Pension Protection FurKI levy of £42.559 (2021.. 36,604) during the year. The Charitable company also contributes to The National Employment Savings Trust (NEST) and Aegon, defined contribLrtion schemes. During the year contributions were made amounting to £142,697 {2021.' £147.277). At Ihe yearend an amount of £10,87912021.' £Nil) was due wlh respect to the pension contributions. 22. Related Party Transactions Membership Solutions Limited The Union re￿1Ve￿ a donation under gift aid from Membership Solutions Limiied of £266,626 (2021.. £297.1861. The Union purchased £35,389 (2021.. £27,199) of IT services from Membership Solutions Limited and provided £22,004 {2021: £22.004) of services. At the year end, the Membership Solutions Limited owed £8,668 to Warwick Students Union (2021: £11, 179 owed to Membership Solutions Limited by Wa￿$Ck Students Union). 2022 2021 Salary Support. Administrative and Expenses Premises and Equipment Rental 8.300 13.704 8.300 13,704 22.004 22.004 Students. Unlon Swvices WanYi¢k Limited The Union re￿iVed a donation under gift aid from Students. Union Services Warwick Limited of £79,905 (2021.. £20,844). The Union purchased £Nil12021'. £Nil) in goods and seNices from Students, Union Serwces Warwick Limited and provided £35.232 (2021: £26.998) of services to Students. Union Services Warwick Limited. At the year erKI the Union was'owed £232,503 (2021.. £157.738) from Students. Union Services Warwick Limtted. All outstanding balances are unsecured, owed on normal trading terms and will be settled in cash. 2022 2021 Salary Support. Administrative and Expenses Premises and Equipment Rental 9,561 25.671 9.561 17.437 35.232 26.998 551Page Wa￿1Ck Students. Annual Report ano Consohdaied Statanenls 2022 NOTES TO THE FINANCIAL STA TEMENTS (Continued) Trustees of Wanvick Students. Union There were no related party transactions in respect of Wamck Students. Union Trustees in the year12020.' no related party transactions in respect of warv￿￿( Students, Union Trustees) 23. Affiliations Warwick Students, Union is affiliated to the following organisations. Membership. granted by the paymenl of an affiliation fee. entitles the Union to have a say in how organisalions are run or what focus they may have. This may.be in the form of a vote or a voice on working parties over and above other membership benefits such as access to expert advice or infomiation resources. Atriliation Fees 2022 2021 National Union of Students INUS) NUS Services Limited (NUSSL) British Universities and Colleges Sport {BUCS) Coventry and Warwickshire Chamber of Commerce 37,500 380 17,441 37.500 . 380 15,696 230 Confimiation of these affiliations is undertaken by vote at an All st￿lent Meeting. 561 Page WaAM¢k SI￿ents, Llni Annual Report aNJ C*ywJlhl4ied Si*ieft*nts 2022