University of Nottingham Students. Union THEUNIVERSITY OF NOTTINGHAM STUDENTS, UNION Trustees, Report and ConsoEidated Financial Ststements Year ended 31 July 2024 Company Registration Number. 07229624 Charity Registration Number 1136986
The University of Nottingham Students, Union Trustees, Report and Financial Statements for the year ended 31 July 2024 Index Trustees, Senior Staff, Governance Committees and Professional Advisors Trustees, annual report 4-15 Endependent auditor's report 16-18 Group statement of financial actlvltles 19-20 Group and charity Balance sheet 21 Group cash flow statement 22 Principal Accounting Policies 23-26 Notes to the f inancial statements 27-41
THE UNIVERSITY OF NOTtINGHAM STUDENTS, UNION IA COMPANY LIMITED BY GUARANTEO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union Reference and administrative details Trustees Chair J Nuttall N Maina appointed 03 July 2023; resigned 28 June 2024 appointed 01 July 2024 Offlcer Trustees J Butterworth S Nolan TADO DHaq E Leech P Read-Pitt C Asante E Chauhan l Messore J Miller N OILJwa E Taylor J Zhang appointed 11 July 2022," resigned 28 June 2024 appointed 11 July 2022; resigned 28 June 2024 appointed 03 July 2023," resigned 28 June 2024 appointed 03 July 2023- resigned 28 June 2024 appointed 03 July 2023. resigned 28 June 2024 appointed 03 July 2023,- resigned 28 June 2024 appointed 01 July 2024 appointed 01 July 2024 appointed 01 July 2024 appointed 01 July 2024 appointed 01 July 2024 appointed 01 July 2024 appointed Oljuly 2024 Lay Tmstees C Bridge D Ellis M Reynolds J Little resigned 21 March 2024 appointed 11 December 2023 appointed 12 November 2024 student Tmstees W Bowling J Ferris Woolley A Holmes N Holt P Prathu B Russell appointed 01 July 2021; resigned 13 December2023 appointed 15 December 2022 appointed 30 April 2024 appointed 15 December 2022- resigned 28 JLJne 2024 appointed 11 December 2023 appointed 11 December 2023" resigned 20 June 2024 Company Secretary E Birkinshaw Company Number 07229624 Charity Number 1136986 Principal Address Portland Building University Park Nottingham NG7 2RD
THE UNIVERSITY OF NOTTINGHAM STUDENTS, UNION IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union Reference and administrative details Independent Auditor Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Bankers Natwest Corporate 8-10 Great Tower Street London EC3P 3HX Sollcltors Browne Jacobson 44 Castle Gate Nottingham NG17BJ
THE UNIVERSITY OF NorriNGHAM STUDENTS. UNION (A COMPANY LIMITED SY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union Trustees, report The Board of Trustees present their Annual Report for the year ended 31 July 2024, which includes the administrative inforrllation set out above, together with the Trustees, report and the audited financial statements for that year. Structure University of Nottingham Students, Union (UONSU) is a registered charity and a company limited by guarantee, not having share capital and governed by its Memorandum and Articles of Association. The liability of each member in the event of winding up is limited to £1. It is registered as a ch2rity with the Charity Commission. The charity is administered by its Board of Trustees which consists of up to eight sabbatical officer trustees, four lay trustees and five student trustees. The Directors of the charitable company are its Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. The Board of Trustees is responsible for setting the Union's strategy, ensuring its sustainability, and monitoring progress including oversight of performance of each part of the Union's work. They review and approve the budget and track the Union's financial performance, have oversight of the Union's risk and fiduciary accountabilities and line management of the chief executive. The Board of Trustees has delegated its powers for the management of certain functions to three Committees student Engagement Committee. People. Culture and Inclusion Committee and Finance, Risk and Compliance Committee. The Board's power issubjecttothe decisions orpolicymade bythestudent Members in General Meeting, through the student democratic procedures within Union Council and the Democratic Procedures Committee or by Referendum. The Trustees may override the decisions or policy only on the grounds of financial considerations, charity or education law or other legal requirement, or the reputation or best interests of the Union. Union Council representsthe voice of thestudents and sets the policy of UONSU for its members. The Board of Trustees and Union Council has the powertojointly make, repeal or alter Byelaws as to the management and working practices of the Students. Union. ims an ives UONSU is governed by its Memorandum and Articles which record its Objects as follows". The Union's Objects are the advancement of education of students at University of Nottingham for the public benefit by.- Promoting the interests and welfare of students at University of Nottingham during their course of study and representing, supporting and advising students: Being the recognised representative channel between students and University of Nottingham and any other external body, and Providing social. culture. sporting and recreational activtties and forums for discussions and debatefor the personal development of members. 2023/241m ct3 Drafting our strategy was completed during 202V22 after an extensive process which engaged stakeholders across the student, union and university community. A mid-term review engaging stakeholders across the Union is ongoing during summer 2024. This is to ensure continued suitability
THE UNIVERSITY OF NOTTINGHAM STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union and ensuring our resources are aligned with our strategic priorities. Strategic priority themes will not change significantly, but underpinning objectives will be reviewed in line with current operating environment. Full strategic review work is being considered for 2026127. our mission is= We believein better, and we Ilachieveit together Our vision is thatwe'll be leaders for ourstudent community, shaping an inspiring and rewarding student experience. Our values define our character and guide our decisions. Our commitment is that in all that we do we will be: Equitable- we'll be relevant, inclusive, respectful and accessible for our diverse membership,takingsteps to encourage participation, celebrate differences and enhance the voices and opportunities of under- represented and disadvantaged groups. Empowering- We'll be led by our members, seeking democratic input to drive our policies and priorities, and we'll support and enable students to own and lead their personal experiences. Brave - We'll be ambitious and tenacious in pursuing our members, interests, challengir)g policy tnakers, creating new and innovative solutions and tsking calculated risks to advance our influence and impact. Responsible - We'll always look to do the right things, in the right ways, holding ourselves to the highest standards or corporate and social responsibility. aligning our work with the UN Sustainable Development Goals and managing our finances and resources effectively. Collaborative - We'll work together with our members and stakeholders, leading, learning and sharing with key partners and collaborators so we can expand our impact and continLJe to do better. Our key strategic priorities for the year under reviewwere:
Prioritising academic representation Building student community Improving student lives l. Prioritlsln academlc re resentatlon "Students have an influential voice on their learning experience" The Union has played a significant role in influencing the learning experience. Performance in relation to question 26 of the National Student Survey INSS} (which asks if the Students, Union effectively represents students, academic interests) sits at 68.2Yo agreement (last year 67.60/01. This mirrors a widersectorupward trend following changes to the collection methodology. Students, also felt that the Union represents their views and experience as a student studying in the UK at 58.3%. We have had 3,120 student engagements with Su-led research projects which include surveys, focus groups & interviews. uildin Student Communi "Students are part of a community" The Union has continued supportingstudentsto be able to do whatthey love, whether its through starting their own community in societies and sports, meeting new people at welcome and events, or supporting
THE UNIVERSITY OF NOThINGHAM STUDENTS, UNION IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union their communitythrough volunteering. Some new metrics for 2023.24: 62.2¥0 of students feel a positive sense of belonging and 73.30A of studer]ts feel welcome at the University of Nottingham. Activitiesand Sport We have 540 student-led groups and societies which have 22,126 uniquestudents actively engaged. We've had 27,685 unique students engaged in any aspect of Union activity. These numbers are largely in linewith lastyear and reflect thecontinued commitmentto ensuringthatstudents have a place within the SU and the University as a whole. We hosted a successful Varsity series event which we delivered in collaboration with UON Sport and Nottingham Trent University Students. Union. Over 10,000 people attended over the series. Event&" Thousands of student led events have been delivered through our events process, engaging and empowering over 400 different student groups to organise. We support a huge attendance at events both run by the Union and those which our team have supported and empowered our student groups to organise. 8,000+ students attended club nights at Fresherslwelcome and 2,800+ attended Grad Ball. Our events were supported by our student run media groups. such as TEC providing lighting and sound equipment & coverage from ourTV station NSTV and student radio URN. Volunteering Our student volunteers continue to support our student and local community, 2nd we have amazing volunteers. Over 1,000 studentgroup committee members were elected in March-April 2024: the largest group of volunteers at UONSU. Our Fresherslwelcome programme in September 2023 included 150 volunteer mentors. welcoming 11,000 new students to the University. Our Global buddies scheme had another really engaging year where international students received support from fellow students during their firstterm at Nottingham. Our volunteeringgroups continued to provide support forthestudentand wider community. Nottingham Nightline provided a confidential listening service to support the mental health of students, Community First Responders continued to provide valuable lifesaving support to the Nottingham ambulance service and Souprunners raised funds throughout the year and provided food to homeless people in the city centre twice a week, conducting weekly runs with volunteers helping and distributing food. Furthermore, UONSU is leading a Civic Volunteering project to improve access to civi volunteering opportunities for students and vice versa. Social Enterprises We have a variety of businesses on campus which serve to bring the student community together, providevaluableservicesto students, create employment opportunitiesforour communityand generate a contribution to help fund the activities of UoNSU.These outlets include ourtwo Sparconvenience retail shops, Mooch Venue, Portland Coffee Co. Portland Clothing Co. Portland Printing and Sustainable- our Zero waste shop. Our commercial team deliver Sponsorship & Advertising opportunities for customers totargetthestudent population and we run a numberof successful events, largely run byvolunteers. We held 5 commercial fairs: Freshers. Housing, Festive. Refreshers & Valentines- 42 unique local businesses attended and 60 unique national brands, giving away over £IOk in vouchers, 5000 bags of crisps, 5000 doughnuts and 1000 coffees. Duringthefinancial year over£270,000 was paid to studentsthroughjobs within the SU. It was a difficult yearfor our outlets. trade was affected by many issues. Footfall on campus reduced due to reduced student numbers (on campus and in Halls). cost-of-living crisis and hybrid working arrangements. Despite this, our social enterprises were able to deliver a profit contribution of £390k. This will be donated to the Charity in 2024125 year and 100% of this helps support our activities for students, for example funding our Student Advice Centre. In 2023124 year we donated £390k based on profit results for 2022123.
THE UNIVERSITY OF NOTTINGHAM STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union 2. Im rovin student Liv "students have improved lives- UONSU have had significant growth with its engagement with students through its innovative approach around student engagement. Another new metric for the year, the extent to which the SU positively impacts the students experience was over 71%. Around 690/0 (2022123 64¥0} of students surveyed reported that the SU had a positive impact on their wellbeing at the University of Nottingham. We continue to support, represent and champion student interests beyond the core academic experience and work closely with the university to deliver a great student experience, championing wellbeing activities. Our Officer Elections. where we elect our student leaders had the highest ever number of Full Time Officer candidates running for election and 5,325 individual voters, an 185% increase on last year (more than double). Building on the phenomenal 187% increase in 2022123, votes cast increased again by 14¥0 116,124 in 2023 to 18,386 in 2024). Extensive work was done by the Student Voice Team and wider organisation to promote elections. These roles are essential to engaging with the University and transforming the academic experience. Student engagement with elections is essential for students to have a say on who represents them as well as legitimises the position of the Students, Union with the University as a lobbying body. Building on the foLEndations of 2022123 our community cabinets remained stocked and we have given away over £3,500 worth of sanitsry and sexual health prodLJCts. 750 Sexual Wellbeing Activity Guides were given out during SHAG Week and the SU supported consent training being delivered to 1700 students. Advice&Support. Our Students, Union Adviceteam provide impartial course. housing, and money advice and information to all students for free. Last year, the tearn handled 2,523 new cases12023124.. 2,858 new cases} and supported hundreds more students who received ongoing support for an existing advice case. 1,460 of these cases related to welfare advice enquiries- 70% relating to student housing & 23Yo relating to money & finance. We have run and supported a number of campaigns in the year to help promote the Interests of our students and improve their lives. Some of these included: Over £3,000 given out through Campaigns Fund to support our Networks Focusing on LGBT+ awareness and acceptance: we have the most diverse offering of pronoun badges of any SU in the country. Over 2000 pronoun badges given OLrt to date Launched the first ever SU Pride lanyard Trans Day of Remembrance largest turnout with over 150 attendees Over £600 given out in Gender Affirmation Fund na ement The Union is subject to regulation by thecharity Commission and Companies House. The Union cornplies with all the statLrtory requirements which apply to it. Governing Document UONSU is governed by its Memorandum and Articles of Association. The 5-year review of the Union's Memorandum and Articles ot Association was completed in 2019120 to meet the requirements of the Education Act 1994. Amendments to the governing document were approved by SU General Meeting and the University's Council in accordance with our set down requirements.
THE UNIVERSITY OF NOINGHAm STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students, Union Officers Executive Officer committee consists of up to eight students elected annually by a cross campus secret ballot of the UONSU membership.The eight posts were Education Officer, Liberation Officer,Welfare and Wellbeing Officer, Activities Officer. Sports Officer, Community Officer, Postgraduate Officer and Union Development Officer. These are full time, or 'sabbatical'. posts remunerated as authorised by the Education Act an Charities Act. UONSU also has a further seven officer roles elected by a cross campus secret ballot of the UONSU membership. The seven posts of Black and Minority Ethnic Officer. Disabled StLFdents' Officer, Environment and Social Justice Officer, International Students. Officer, LGBT+ Students, Officer, Mature Students, Officer. Women-s Officer, are part time roles which are undertaken on a volunteer basis and not remunerated. Our Officers provide the political leadership for UONSU and are the lead representatives of students for UONSU internally, across University of Nottingham. the city of Nottingham and nationally. Recruitnient and Training of Trustees The Union Development Officerserves as Chair of the Board forthe duration of their tenure as an Officer, having been appointed following a secret cross-campus ballot of the members. As of autumn 2020, all other full time Officers are Trustees. having been elected to their Officer position following a secret cross-campus ballot of Union members. Officer Trustees may serve for a second term if they are re- elected as an Officer of the Union. Lay Trustees areappointedfora term of threeyears. LayTrusteeappointment is madefollowing external open recruitment An Appointments Committee is convened from members of our People, Culture and Inclusion Committee, Officers and senior leadership team. Recommendations are made by the Appointments Committee to the Board of Trustees and then to Union Council in accordance with our Byelaws. Lay Trustees may serve for a total of two terms. Student Trustees are appointed by an application and selection process which is openly advertised to all Union members {students). An Appointments Committee is convened from members of our People, Culture and Inclusion Committee. Recommendations are made by the Appointments Committee to the Board of Trustees and then to Union Council in accordance with our Byelaws. Student Trustees can serve one term of up to two years. The length of term can be affected by the point of study and the timing of the academic year, so recruitment processes are in plat0 managefairly high turnover. The Union is required, by agreement with the Charity Commission. to have more unpaid than paid trustees. An initial induction meeting with the Chief Executive ensures new Trustees understand the role, the context of the Union and expectations of the meetings before they attend their first meeting. A Board induction for all Trustees is follo¥ved by subject induction briefings for each Committee led by the appropriatesenior managementteam member. The Board also have an annualtrainingand induction day. During 2023124 we appointed, trained and developed 3 student trustees to use their unique skills and expertise on student life at UON to ensure students are at the heart of our decision making. We also hosted our second Student Trustee Networking Event and welcomed over 20 participants from across the countryto participate in a networkingevent designed to developtheir leadership skills, enhancetheir understanding of governance and expand their personal and professional network& Delegation The Trustees delegate the day-to-day management, the development of strategy and overall leadership of the Charityto the Chief Executiveand a Senior ManagementTeam. The Chief Executive reports to the Chair of the Board. The Scheme of Delegated Authority {SoDA) document sets out delegations in detail and is reviewed on an annual basis bythe Trustee Board.
THE UNIVERSITY OF NOTTINGHAM STUDENTS. UNION IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union Pay Policy and Senior Staff The Board of Trustees review the salary for the Chief Executive annually using data from across comparable students. unions and the charity sector to provide a benchmark for their decision making. Directors, remuneration is considered along with the whole organisation's pay and reward policy by our People, Culture and Inclusion Committee which is a sub-committee of the Trustee board. During the year a Reward Review project was undertaken to realign the Pay& Reward Policies to reflect our commitment to attracting & retaining Brilliant People. This resulted in a new spinal pay point system which was implemented from 01 August 2024. Employment The Students, Union is committed to engaging with its employees to ensure team members are kept up to date on the success and challenges of the Students. Union, its performance and other information that rnay be important or of interest. A variety of methods are used to achieve this, including team meetings, briefings, away days, email bulletins and a staff engagement forum. Where changes which might impact team members are being considered, we take a collaborative and consultative approach to ensure different views can be taken into account. We also undertake an annual staff engagement and satisfaction survey the results of which, and the arising action plan, are overseen by our People, Culture and Inclusion Committee and shared transparently across the organisation. The Students, Union is an equal opportunities employer and has a responsible approach to employment and social legislation. We're trying hard to become a more inclusive workplace and to better represent the student community that we serve. We value diversity, promote equity and challenge discrimination- this is fundamental to our values and enriches life on campus. The Students, Union is committed to the development of our staff, and we provide equal opportunities for the training and career development of all employees. The Students, Union is an "We Invest In People" Investors In People {11P1 accredited ernployer. Accreditation was awarded May 2024 and will be review annually. An action plan is in place to move us to the next tier in line with the Believe In Better people strategy. Relationship with the University The Education Act 1994 lays down the statutory duty of the University of Nottingham to take such steps as are reasonably practical to ensure the Students. Union operates in a fair and democratic manner and is held to appropriate account for its finances. The Students, Union works alongside the University of Nottingham to ensure that its affairs are properly conducted, and the needs of the University of Nottingham Students, Union members are met. The formal relationship between the University and the Union is governed by a Memorandum of Understanding incorporating the Code of Practice. The Chair of Trustees and Chief Executive report annually to University Council, via the University's Finance Committee on the performance and progress of the Union, and on our use of the University's annual grant. UONSU receives core funding (previously block grant} from the University, and occupies buildings owned by the University, which also pays for some repairs, services and utilities. This non-monetary support is intrinslc to the relationship between the Universityand UONSU. As recommended bythe Charities, SORP, for due cornpliance with the requirements for Students, Unions provided for in the Charities Act 2011, an estimated value to UONSU for this support has been included in the financial statements, priced at £646,000. UONSU, and its wholly owned subsidiary UNU Services Limited, continues to generate supplementary funding from various mutual trading activities much of which has been developed as a result of a close and collaborative relationship with the University. Public benefit The Trustees consider this matter, in conjunction with the guidance contained in the Charity Commission's general guidance on public benefit. As a registered charity, The University of Nottingham Students, Union works directly with and for: and supports and benefits around 35,000 students registered to study at the University of Nottingham in the UK. In planning our work, we test that the strategy and the primary goal of all our activities are linked to our core aims and therefore are for the direct benefit of our memberstudents.
THE UNIVERSITY OF NOThINGHAM STUDENTS. UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students" Union In addition. our work supports the local Nottingham community, prospective students and a number of national organisations. We have an extensive community volunteering programme, who meet regularly with City and local councillors and members of the community, particularly where students are residents, to work positively with them so students are positive and active members of their community. This will be enhanced further due to the strategic partnership entered into with Nottingham Trent Students, Union during July 2022. The partnership aims to support civic engagement and student needs within Nottingham City. Between us we represent c68,000 residents who are part of the student population and represent 8.5% of the total population of the city. This year the Nottingham Students. Partnership has been busy making change for students in landlord licensing, refuse collection and within Nottingham's new Student Living Strategy. Any activity that the Union undertakes in which it has core skills but which is not for the direct benefit of the Union's members, is funded and resourced separately. This is always a very small part of our work but is usually undertaken to support the aims of the University of Nottingham, the Union's main funder. Societies and student groups Funds raised by the societies and student groups are administered by the Union for the specific benefit of that society or studentgroup. Thesefunds aretreated as restricted in our financial statements. Principal Risks and Uncertainties The Board of Trustees has examined the majorstrategic, business and operational risksfaced by UONSU. The Union has a Risk Register. The Finance, Risk and Compliance Committee oversees the detailed review and tracking of UONSU'S risks as part of its delegated authority from the Trustee Board and updates the Board of Trustees regularly. The Board of Trustees review the risk register on an annual basis. The Risk Register is managed operationally by the Senior Management Team 8nd an escalation process is in place for any issues that occurthat require urgent notification. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Budgetsry and internal control risks are minimised bythe implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants on all activities organised by UONSU. Insurance is in place where we are not easily able to mitigate risk. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. There are a number of significant risks affectingthe Union. Financially, our biggest risk is around funding from the University. Following a review project with the University in 2023124 our Core Funding for 2023124 was confirmed at£2.4m (an increase of £312k on 2022123) with an inflationary uplift each year. The review projectsetto establish some partnership principles which will inform howweare fundedgoing forward and monetaryfunding levels to support the design of our 3-yearfinancial plan. We remain aware of the risks of changingstudentattitudes and preferences, the impact of national higher education and immigration policies on both our parent institution and ourselves and changes in the broader economic and political climate. Duringthe 2023124 we undertook a review of our finances, engaging with stakeholders from the Trustee Board, FRC and Senior Leadership Team to agree a robust set of Financial Principles. The overall financial objective is to be a strong financially sustainable organisation to enable the best possible student experience over the medium to long term. These principles will be reviewed annually in line with the budget cycle. There are a number of risks associated with our specific operations, for example our student societies, activities. These have established control procedures in place. and these are subject to regular review. Our legacy defined benefit pension scheme {Students' Union Superannuation Scheme "SUSS.) is currently in deficit and we are making payments as part of a deficit recovery plan. Further detail on this is provided inthe notes totheconsolidated financial statements.we re1VeforMal updates onthescheme at least annually from the pension scheme trustees and the Board of Trustees consider the impact on 10
THE UNIVERSITY OF NOTTINGHAM STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the member5 of the University of Nottingham Students. Union UONSU accordingly. The impact of SUSS is considered by Trustees as part of our routine business and strategic planning. We are also aware of a risk regarding our treatment of catering income for VAT purposes. HMRC has challenged a number of Sus regarding the treatment of catering income as exempt from VAT. To date we have not been contacted by HMRC directly. Via NUS, we are part of a VAT campaign which will challenge the claims already made against Sus and ensure that guidance and statute is clear on how the incomeshould be treated goingforward. The VAT campaign challenge to HMRC was unanswered and will be taken tojudicial review, the date of which is still to be agreed. The income has been treated as exempt from VAT as it forms part of the core provisiori of providing education in the University setting, through catered Halls of Residence. We provide access to this catering to students on behalf of the University via the use of their Mealcard in our Coff ee, Mooch and Spar outlets. Should a claim be made against us, or the NUS group action be unsuccessful, we have calculated our exposure to historic financial risk to be c£156k12022123 £237kl. HMRC have the power to go back 4 years. Whilst we are currently not providing for this afflount as a liability in our financial statements due to no claim being made against us, we would like to draw the reader's attention to this possibility. As a contingency measure the Trustees have agreed to us ringfencing £156k of our free reserves to cover this liability, should it crystallise. At the point we are made aware to the contrary this amount will be released back into free reserves. Plans for the Future We continue to work with University colleagues to review our funding proposal to enable us to develop our services to lead our student community and shape an inspiring & rewarding experience. This will set us up to deliver ourstrategic ambitions of prioritising academic representation, improving students, lives and building student cornmunity. This is in addition to the Core Funding mentioned above and will be for specific project-based work where we can demonstrate value added. Financialreview Principal sources of funding The principal sources of funding are the core funding from the University of Nottingham, funding from the University of Nottingham to supporting the Hall Committee activities,funds generated directly by our student groups, the profit donated by UNU Services Limited. sponsorship income and income from investments. Flnanclal Overvlew The Union continues to manage its finances to support delivery of its strategy and ensure its long-term sustainability. Our Core Funding from University was increased by £312k to £2.4m for 2023124, with an inflationary uplift in following years. The Core Funding agreement with UON covers until 2026127 so we can plan with some certainty. In the ye3rwe have closely managed ourfunds given the significant impact thatthe ongoing costof living crisis, reduced numberof students on campus and world events had on the SU and the wider community we operate in. We had targeted a contribution of £390k profit from Social Enterprises for the 202312024 financial year and due to the challenges in year, we delivered a profit of £254k. As a group, excluding Student restricted funds, we generated a core deficit of £62k, we had budgeted break even. so given the challenges faced by Social Enterprises in the year, this was an acceptable result. We saw an unrealised gain on our investments of £75k, but it is worth bearing in mind that our capital is invested for the long term and the value can go up as well as down. Overall, we delivered a final combined unrestricted surplus of £13k. A transfer was made between funds to recognise the cost of covering Student Group funded depreciation.
THE UNIVERSITY OF NoFfiNGHAM STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union FY2024 FY 2023 Core (deficit} Unrealised investment gainl(loss) Transfer of funds Impact of pension scheme triennial valuation Movement in unrestricted funds Movement in restricted (student) funds Net movement in funds (13,307) (6,826) 75,208 (101.218) 94,892 1123,765} 108,199 (231,809) 141.795 178,776) 249,994 (310,585) Investment policy The Trustees review the Union's investments policy on an annual basis. The policy exists to provide a framework for the management of our long-term reserves. The Union Trustees have agreed to retain suitably qualified advisers to assist in meeting their regulatory obligations with regard the rnonitoring of the long-term reserves. Our current independent financial advisers are Henwood Court Financial Planning Limited (Henwood Court), and our investment portfolio is operated day to day by Rathbones Brothers plc (Rathbones) in line with our Investment Policy. Risk Tolerances and Ethical Restrictions. Trustees approved the investment objectives as set out below. The Union seeks to produce a defined tsrgeted financial return aligned to the organisation's financial requirements within an acceptable level of risk. The investment objective for the short-tenn fund is to retain certainty of value. The investment objective for the long-term fund to maintain the long-term spending power of the capital and protect it against the effects of inflation. The long-term reserves should be invested to grow at least in line with the Consumer Prices Index ICPII. Due to the nature of the reserves, the board need to keep 100% of the long-term reserves in investments that can be realised within three months. The income received from investments is to be reinvested. Trustees have identified the key risks to the investment as set out below: The Trustees have identified thatthe key risk to the long-temi reserves is in*lation, and the assets should be invested to mitigatethis risk overthe long term. A consequence of not achieving the targeted returns could potentially mean that a number of employee positions within the union could not be sustained. The Trustees understand that this is likely to mean that investments will be concentrated in real assets and that the capital value will fluctuate. The Trustees attitude to risk was defined as low-risk appetite. as determined by completion of Henwood Court Risk questionnaire Following discussion on theabove riskcharacteristics, in conjunctionwith an assessmentof time horizons and investment objectives, it was recommended and approved that the Union's portfolio should follow Rathbones Risk Profile 3 on a scale of 1-6. The Ethical Restrictions currently in place for operation of the portfolio are as follows: To not invest either directly or indirectly in fossil fuel companies To not invest either directly or indirectly in tobacco-related companies No investment in aerospace or defence companies Regarding sustainability, for example investment in construction and mining which could be contrary to the trustees, objectives there are no specific restrictions however. Rathbones will have a proactive engagement on the Unions, behalf should any specific investment have a negative impact on the Union's investments 12
THE UNIVERSITY OF NOTTINGHAM STUDENTS, UNION IA COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the member5 of the University of Nottingham Students. Union As at 31 July 2024the value of our investment portfolio is as follows: 2024 2023 Listed investments portfolio value 1,567,325 1.464.704 Performance of investment: Duringthe year cash of £nil12023: £381kl was drawn down from investment to bank. Duringthe year an unrealised year end valuation gain of £75,20812023.. loss £101.2181 was posted to the accounts. During the year the portfolio delivered income of £27,417 an estimated yield of 2.6¥012023: £40,667 income., estimated yield 2.8 %}. Consolidated portfolio performance to 31 July 2024 Ibefore fees, after cash drawn down) 390A12023: _ Reserves policy The Trustees reviewthe Union's reserves policy on an annual basis. This excludes the restricted reserves we hold on behalf of the Student Groups. Trustees approved the formal policy statement as set out below: The Trustees consider that UONSU should hold in unrestricted funds an amount equivalent to continue core activities (Core Activity Fund), with sufficient business management support, for a period of 6 months without income, and have established a calculation to this effect For the year 2023124 Trustees have calculated this reserves target figure to be £650k Unrestricted funds held surplus to the reserves target shall be designated by Trustees for the purpases of strategic projects andlor capital investment. We currently set our Core Activity Fund at£650,000 which would: Enable us to maintain our critical core services required by the Education Act and by agreement with the University as the minimum service we would offer (The Officers, Representation Development supporting the education network, Advice and academic reprentation) Cover related essential central costs including health & safety, HR, finance, building rent, insurance, IT, a small provision for senior management and standard overheads Cover the estimated cost to scale our activity down (the cost of restructuring). Charity Commission guidance requires that Trustees be able to explain why they are holding any funds additional to their express reserves policy. This is because the money is charitable in nature and should be applied to the purposes of the charity and not held without reason. Trustees approved the creation of 3 designated funds: VAT (potential) Liability Fund £300k (the potential liability is c£156k. reduced from £300k due to time elapsing) Strategic Projects Fund £50k Capital Investment Fund £50k 13
THE UNIVERSITY OF NOTTINGHAM STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union to which any unrestricted funds held in surplus to the Core Activtty Fund reserves target, shall be distributed. As at 31 July 2024 we estimate our free reserves as follows: 2024 2023 Unrestricted funds Add back pension deficit Less tangible fixed assets (net of UON funding still to release from deferred income) Free Reserves (1,789,261) (1,897,459} 2,730,205 2,787,296 (IOL166) 151,008} 839,778 838,829 Free reserves held at 31 July 2024 are in excess of our Core Activity Fund tsrget of £650k (2023 - excess of reserves target of £650k for financial year). Golng Concern After making appropriate enquiries, the Trustees have a reasonable expectstion that UONSU has adequate resources to continue in operational existence for the foreseeable future. Our Core Funding from University was increased by£312kfor 2023124to£2.4m with an inflationary uplift in followingyears. The Core Funding agreement with UON covers until 2026127 so we can plan with some certainty. We continue to closely monitor our financial position and plan and respond to the rapidly changing environment we're operating in to ensure our long-term sustainability. During the year members of the Trustee Board and Senior Leadership Team drafted and agreed a Financial Principles document, which governs our financial aims and principles ensure our ongoing financial stability. Budget for 2024125 has been drafted in line with these principles. The group has net liabilities of £337,726 at 31 July 2024 (2023: group net liabilities of £587,720}. However.£2.730m of this is caused bya legacy pension scheme.The pension is dueto be repaid gradually until fully repaid in 2037 as part of a formal plan with the pension scheme trustees and our internal plans are prepared to manage spend and activity around this commitment Excluding the pension, the remaining balance sheet shows a net asset position of £2.392,479 (2023: £2,199,576) and a strong cash position. Our core funding from the University is our largest source of income and has been agreed for the academic year 2024125, including an uplift of £396k on the 2023124 amount thus significzntly reducing the financial risk to the organisation. We rely on our social enterprises within UNU Services Limited to make a contribution to support our charitable activities and as a result of Covid-19 we significantly reduced the expectation in our medium-term financial plan. We are not planning for significant bounce back. Like many businesses operating in the retsil and hospitality sector, the operating environrnent throughout 2023124 has been difficult as a result of economic pressures such as inflation and cost of living crisis, along with instability caused by political policy & war in Ukraine. Numbers of students on campus had reduced in 2023124 with some Halls not being habitable and overseas recruitment down on what was expected. We have seen decreased footfall in our outlets as a result. We have been prudent in our budgeting for 2024125 and ensured that our budgets prioritise delivery of our strategic goals. We have looked to respond to our challenges by maximising our income. minimising ourcosts and minimising the impact on our people. We continue to closely rnonitortrading performance internallyand this is overseen by our Trading Board & Finance, Risk and Compliance committee. Our cash position remains strong and the Trustees expect to have sufficient cash and reserves for the foreseeable future. For this reason, we continue to adopt the going concern basis in preparing the financial statements. Further details regardingtheadoption of thegoingconcern basis (an be found inthe Accounting Policies.
THE UNIVERSITY OF NorfiNGHAM STUDENTS, UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union Trustee5' responsibilities The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare tinancidl sLaLèniviits foi- each finaiicial year. Under that law the Trustees have elected to prepare tli e financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable lawl. Undercompany law the Trustees must not approvetheiinancial statements unless they are satisfied that they give a rrueand fairview of the state of affairs of theGroup and the Students, Union and of the income and expenditure of the group for that period. In preparing those financial statements, the Trustees are required to ensure the Union: Selects suitable accounting policies and then applythem consistently; Observes the methods and principles in the Charities SORP. Makejudgments and estimatesthat are reasonable and prudent States whether applicable UK Accounting Standards have betsn followed, subject to any material departures disclosed and explained in the financial staternents- and Prepares the financial statements on the going concern basis unless it ig inappropriate to presume that the charitable company will continue in business. The Trust&s are responsible for ensuring adequate accounting records are kept that are suff icient to show and explain the Union'stransactions and disclosewith reasonable accuracy at anytimethe financial position of the Union and enable them to ensurethat thefinanr.ial %tatempntq c.omplywith the Companies Act 2006. They are also responsible for safeguardina the assets of the Union and hen fof taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsibleforthe maintenanceand integrityof the corporate and financial Information included on the charitable corripany's website. Legislation in the United Kingdom governing the Dreparation and dissemination of financial statements may differfrom legislation in otherjurisdictions. During the year, an indemnity from UONSU was made available to Trustees against liabilities that might be incurred by them in defending proceedings against them in respect of the affairs of UONSU. The value of the indemnity in place during the year was £1,000,000. Disclosure of information to auditors Each of the persons who are Trustees at the time when this Trustee's report is approved has confirmed that: so far as that Trustee is awdre, tliere is iio relevarit audit inforniation of which tlie cliaritab5e company's auditor is unaware; that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant information needed by the charitable company's auditor in connection with preparing its report and to establish that the charitable company's auditoris aware of that information: Auditors The auditors, Crowe U.K. LLP, were reappointed during the year at our Annual Members. Meeting in accordance with section 485 of the Companies Act 2006. This report was approved bythe Board of Directors on 20 March 2025 and signed on its behalf by". N Maina Chalr of Trustees 15
THE UNIVERSITY OF NOThINGHAM STUDENTS, UNION IA COMPANY LIMITED BY GUARANTE9 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the member5 of the University of Nottingham Students, Union Opinion We have audited the financial statements of University of Nottingham Students. Union I'the Parent Charitable CompanV} and its subsidiary I'the Group'l forthe year ended 31 July 2024 which comprisethe Statement of financial activities, the Balance sheet. the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard 3pplicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the Group's and of the Parent Charitable Company's affairs as at 31 July 2024 and of its incoming resources and application of resources. including its income and expenditure forthe yearthen ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Stsndards on Auditing (UK) {ISAs IUKII and applicable law. Our responsibilities underthose standards are further described in the Auditors, responsibilities forthe audit of the financial statements section of our report. We are independent of the charitable company ir) accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion. Conclusions relating to going concern In auditing the financial statementy we have concluded thatthe Trustees use of the going concern basis of accounting in the preparation of the financial ststements is appropriate. Based on the work wè have performed. we have not identified any material uncertainties relating to events or conditions that individually or collectively, may cast significant doubt on the Group's and of the Parent Charitable Companos abilityto continueasa going concernfora period of at leasttwelve monthsfrom when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respectto going concern are described in the relevant sections of this report. Other information The other information comprisesthe information included in the Annual report other than the financial statements and our Auditors, report thereon. The Trustee are responsible forthe other information contained within the Annual reporL Our opinion on the financial statements does not coverthe other information and, except to the extent otherwise explicitly stated in our report we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whetherthe other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misststements. we are required to determine whetherthis gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misststement of this other information, we are required to report that fact We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken inthe course of the audit 16
THE UNIVERSITY OF NOTTINGHAM STUDENTS. UNION (A COMPANY LIMITED BY GUARANTEEI FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union the information given in the Trustees. report for the financial year for which the financial statements are prepared is consistent with thefinancial statements the Trustees, Report has been prepared in accordance with applicable legal requirements Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, report. We have nothing to report in respect of the following rnatters in relation to which Companies Act 2006 requires us to report to you if, in our opinion-. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreementwith the accounting records and returns- or certain disclosures of Trustees, remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit., or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advanta8e of the small companies, exemptions in preparins the Trustees, report and from the requirement to prepare a Strate8ic report. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statemenL the Trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud orerror. In preparing the financial statements,the Trustees are responsible for assessing the Group's and of the Parent Charitable Company's ability to continue as a going concern. disclosing, as applicable. matters related togoing concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company orto cease operations, or have no realistic alternative but to do so. Auditors. responslbllltles for the audit of the financial statements We have been appointed as auditor underthe Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, 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 detect a material misstaternentwhen it exists. Misstaternents can arise from fraud or errorand are considered material If. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including f raud. The extent to which our procedures are capable of detecting irregularities, including f raud is detailed below: We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the dètermination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Charities Act 2011 together with the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group's and of the Parent Charitable Company's abilityto operate orto avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The key 17
THE UNIVERSITY OF NOTTINGHAM STUDENTS. UNION (A COMPANY LIMITED BY GUARANTEE) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Trustees. report to the members of the University of Nottingham Students. Union laws and regulations we considered in this context were General Data Protection Regulation. health and safety legislation and employee legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: the override of controls by management, including posting of unusual journals. inappropriatetreatment of non-routine transactions and areas of estimation uncertainty. Our audit procedures to respond to these risks included enquiries of management and the Board about their own identification and assessment of the risks of irregularitie4 sample testing on the posting of journals, reviewing accounting estimates for biases and reading minutes of meetings of those charged with governance. Owing to the inherent lirnitations of an audtt, there isan unavoidable risk thatwe may not have detected some material misstaternents iri the firlancial statements. even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non- compliance with laws and regulations (irregularities) is fromthe events and transactions reflected in the financial statements, the less likelythe inherently limited procedures required by auditing standards would identify it. In addition, as with any audwt, there remained a higherrisk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissiorls. misrepresentstions. or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non- compliance with all laws and regulations. A further description of our responsibilities forthe audit of thefinancial ststements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors. reporL Use of our report This report is made solelytothe Group'sand of the Parent Charitable CoMpanS members, as a body, in accordance with Chapter3 of Part 16 of the Cornpanies Act2006. Our audit work has been undertaken so that we might state to the charitable Union's members those matterswe are required to state to them in an Auditors, report and forno other purpose. Tothefullest extent permitted by law. we do not accept or assume responsibility to anyone otherthan the charitable companyand its members. as a body, forour audit work. for this report, or for the opinions we haveformed. Helen Blundell LLB FCA FCIE DChA Senior Statutory Audrtor for and on behalf of Crowe u. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Date: 21 March 2025 18
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Group statement of financial activlties for the year ended 31 July 2024 (incorporating the income and expenditure account) Unrestrlcted funds Restrlcted funds 31July 2024 31July 2023 INCOMING RESOURCES Donations and grants Incoffling resources from generated funds Other trading activities Income from investments Income from Charitable activities Note 3.076.000 3,076,000 2,682,918 4,221.908 76.408 4.221,908 76,408 4,147,387 49.036 Operation of Students, Union 225,406 3,740,923 3,966,329 3,717,147 Total group incoming resources RESOURCES EXPENDED Expenditure on raising fund5 Expenditure on Charitable activities 7,599,722 3,740,923 IL340,645 10,596,488 3,982,422 3,982N22 3,802.786 3.524,660 154.540 3,504,236 7,028,896 154,540 6,710,320 Pension deficit charge Interest on pension fund def icit Total resources expended 17 17 123,765 168,985 3,504,236 11,165,859 10,805,856 7.661,623 Net lexpenditurellincome 161.9011 236.687 174,786 1209,3681 Unrealised gainlllossl on investment li 75.208 75,208 (101,2181 Net movement In funds before transfers 13307 94.892 236,687 194.8921 249,994 1310,5861 Transfers between funds Net movement in funds after transfers Total fund5 brought forward Total fund5 carried forward 108,199 IL897.4601 (4789,261) 141,795 1.309.740 249,994 (587,720) 1310,5861 1277,1331 19120 1,451,535 (337,726) 1587,7201 All activities during the current and previous period are classed as continuing. There are no recognised gains or losses for the year other than those included in the Statement of Financial Activities. The accompanying accounting policies and notes on pages 23 to 41 form an integral part of these financial statements. The Charity has taken advantage of section 408 of the Companies Act 2006 to not publish its own Statement of Financial Activities. The Charity's net movement of funds in the yearwas £360.50212023..-£376,0771. 19
The University of Nottingham Students. Union (a company limtied by guarantee) Financial Statements for the year ended 31 July 2024 Group statement of financial activities for the year ended 31 July 2023 (Incorporating the income and expenditure account) Unrestricted funds Restricted funds 31July 2023 INCOMING RESOURCES Donations and grants Incoming resources from generated funds Other trading activities Income from investments Income from Charitsble activities Note 1682,918 2.682.918 4,147,387 49.036 4J47,387 49,036 Operation of Students, Union 169.986 3.547,161 3.n7,147 T¢)tal group incoming resources RESOURCES EXPENDED Expenditure on raising funds Expenditure on Charitsble activities Pension deficit charge Interest on pension fund deficit 7,049,327 3,547.161 10,596,488 3.802,786 3,084.383 123,765 168.985 3.802.786 6,no,320 123,765 168.985 3,625.937 17 17 Total resour$ expended 7.179,919 3.625.937 10,805056 Net income/(expenditurel (130,592) (78,7761 (209B68) Unrealised {lossllgain on investment UOl.2181 (IOL218) Net movement in funds Total funds brought ft)rward (23L810) 0,665.6491 (78,7761 1,388.516 I31086) (277.133) Total funds carried forward 19120 IL897A59) 309,740 (587,720) The accompanwng accounting policies and notes on pages 23 to 41 form an integral part of these financial statements. 20
The University of Nottingham Students Union (a company limtted by guarantee) Financial Statements for the year ended 31 July 2024 Consolidated Balance sheet as at 31 July 2024 Group Charity 31Juty 2024 31July 2023 31 July 2024 31July 2023 Note Fixed assets Tangible fixed assets Investments fixed assets io 386,319 51.008 107.319 39.017 1567.325 1,464.704 1,867,325 1,764,704 1,953,644 1,515.712 1,974,644 1,803,721 Current assets Stock.'goods for rp.<alp. Debtors Cash at bank and in hand 12 13 125.144 598.290 135,137 509,072 292,922 199,500 2328,597 3,613.375 1.466315 1,664.132 1051031 4.257.584 L759.237 1,8G3.632 Creditors.. amounts falling due within one year 14 (2,613,195) {3,573.720) ILS6&618) 11,805,501) Net Current assets Total assets less current liabilities 43&836 683.864 190.619 58.131 1392,480 U99.576 2,165.263 1.861,852 Defined benefit pension scheme 16 {Z730.206) P.787.2961 (2,730.206) 12,787,296) Net Ilabllltles {337,726) 587,720 (564,9421 1925,444 Funds Unrestricted fund5 Restricted funds 19 19 (L789261} L451535 (L897.459) 1.309.740 (2,016,477) L45l535 {2,235.184) 1,309.740 Total funds {337,726) {587.720} {564,942) 1925,444) The Trustees have prepared group financial statements in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 201L The financial statementswere approved bythe Board of Directors 20 March 2025 and signed on its behalf by: NMAI Chalr of Trustees and Students, Union Development Officer Company number. 07229624 The accompanying accounting policies and notes on pages 23 to 41 form an inteRral part of these financial staterr..ents. 21
The University of Nottingham Students, Union (a company limf(ed by guarantee) Financial Statements for the year ended 31 July 2024 Consolidated Statement of Cash Flows for the year ended 31 July 2024 Group 31 July 2024 Group 31 July 2023 Note Net cash used by operatingactivities 21 1910.455) 1,680,099 Cash flows from investing activities Purchase of fixed assets Proceeds from the sale of investments Purchase of investments Investment income (423.3191 297,285 {55,1961 698,387 (324,696) 76.408 (374323) 1341.356} 49,036 350,871 Net cash provided by (used in) financing activikn.es Change in 5h and cash equivalents in the reporting period (1.284.778) 2.030,971 h and cash equivalents at the beginning of the year 3,613375 1.582,404 Cash and cash equivalents at the end of the year 1328.597 3,613,375 The accompanying accounting policies and notes on pages 23 to 41 form an integral part of these financial statements. 22
The University of Nottingham Students, Union (a company limited by guarantee} Financial Statements for the year ended 31 July 2024 Principal accounting policies l Accounting Poll¢les General information The University of Nottingham Studefits. Union is a grivate limited company limited by guarantee and domiciled i England and Wales. Registered company number 072296204 and charity number 1136986. The Registered office is The University of Nottingham Students, Union, Portland Building. University Park. Nottingham, NG7 2RD. Basis of preparation and accounting The financial Statements have been prepared under historical costconvention exceptthat certain investments are held at market value. Thefinancial statements have been prepared inaccordancewith thestatementof Recommended Practice ISORPI 'Accounting and Reporting by Charities,, applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- (Charities SORP IFRS10211 issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021, the Charities Act 2011andthe Companies Act 2006. The University of Nottingham Students, Union meetsthe definition of a public benefit entity under FRS 102. The financial statements are presented irt Sterling, and thi5 is the functional currency of The University of Nottingham Students, Union and the financial statements are rounded to the nearest £1. Group financial statements These financial statements comprise the results of The University of Nottingham Students, Union and its wholly owned trading subsidiary, UNU Services Limited consolidated on a line-by-line basis_ No separate Statement of Financial Activitie5 or Income & Expenditure Account15 presented forthe Charity because it has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. Going Concern Thefinancial statements have been prepared on a going concern basis. After making appropriate enquiries, the Trustees have a reasonable expectation that UONSU has adequate resources to continue in operational existence for the foreseeable future. Our Core Funding from University was increased by£312kfor2023124 to£2.4mwith an inflationaryuplift infollowir*gyears. The Core Fundinga8reeFnent with UON covers until 2026127 so we can plan with some certainty. We continue to closely monitor our financial position and plan and respond to the rapidly changing environment we're operating in to ensure our long-term Sustainability. During the year members of the Trustee Board and Senior Leadership Team drafted and agreed a Financial Principles document. which governs our financial aims and principles ensure our ongoing financial stability. Budget for 2024125 has been drafted in line with these principle The group has net liabilities of £337,726 at 31 July 2024 12023.. group net liabilities of £587,720). However, £2.730m of this is caused by a legacy pension scheme. The pension is due to be repaid gradu311y until fully repaid in 2037 as part of a formal plan with the pension scheme trustees and our internal plans are prepared to manage spend and activity around this commitment. Excluding the pension. the remaining balance sheet shows a netasset position of £2,392,47912023=£2,199,5761 and a strongcash position. Our core funding from the University is our largest source of income and has been agreed for the academic year 2024125, including an uplif t of £396k on the 2023124 amount thus significantly reducing the financial risk to the organisation. We rely on our social enterprises within UNU Services Limited to make a contribution to 5UPPOrt our charitable activities and as a result of Covid-19 we significantly reduced the expectation in our medium-term financial plan. We are not planning for significant bounce back. Like many businesses operating in the retail and hospitality sector, the operating environment through0 2023124 has been difficult as a result of economic pressures such as inflation and cost of living crisis. along with instability caused by political policy & war in Ukraine. Numbers of students on campus had reduced in 2023124 with some Halls not being habitable and overseas recruitment down onwhatwas expected. We have seen deCreaSedfooall in ouroutletsas a result. We have been prudent in Olkr budgeting for 2024125 and ensured that our budgets prioritise delivery of our strategic goalg. We have looked to respond to our challenges by maximising our income, minimising our costs and minimising the impact on our people. 23
The Untversity of Nottingharn Students. Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Principal accounting policies Incoming resources All incoming resources are recognised once the Group has entitlement to the resources, it is virtually certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. The following policies are applied to particular categories of income- Voluntary income received by way of grants. donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants,where entitlement is not conditional on the delivery of a SpecIC performance by the charity, are recognisedwhen the charity becomes unconditionallyentitled tothe grant Donated seNices and facilities are included atthevalue to the charitywhere this can be quantified. The value of sepjices provided by volunteers has not been included in these financial ststements. Investment income is included when receivable. Incoming resources from charitable trading activity are accounted for when earned. Incoming resources from grants. where related to perfomance and specrfic deliverables, are accounted for as the charity earns the ri8htto consideration by its performance_ Voluntsry help and donations in kind The charity benefits from the provision of seNiced accommodation by the University of Nottingham. Similar facilities in a similar location would have a rental costof approximately£646,00012023:£535.036} perannum and so this amount has been included in thesefinancial statements. The value of these services has been calculated using estimated market values applied to either Space utilised or level of service provided. Resources expended and basis of allocation of costs Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Group to the expenditure. All expenditure is accounted foron an accruals basis. Overhead and other costs not directlyattributable to particularfunctional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributsble to that activity in the period, either by reference to stsff time or Space occupied, as appropriate. The irrecoverable el&ment of VAT is irjcluded with the item of expense to which it relate& Governance costs comprise the costs of running the charity, including strategic planning for its future development, external auditand all the costs of complyingwith constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing ststutory financial statements and satisfying public accountsbility. Redundancy and temiination payments Redundancy and termination costs are recognised as an expense in the Statement of Financial Activities and a liability on the Balance Sheet immediately at the point the group is demonstrably committed to either. terminate the employment of an ernployee or group of employee5 before normal retirement date- or provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. The group is considered to be demonstrably committed only when it has a detailed formal plan for the termination and is without realisti¢ possibility of withdrawal from the plan. Leases Rentsls paid under operating leases are charged against income on a straight-line basis over the lease term. Taxation The Union is a registered charity and as such is exempt from income tax and corporation tax under thè provisions of Section 478 of the Corporation Tax Act 2010. There is no similar exemption for VAT. which is included in expenditure or in the cost of assets as appropriate. 24
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Principal accounting policies The Union's subsidiary company. UNU Services Limited. as atradingentity. issubject to UK corporation tax and the principle of deferred taxation. Full provision is made for deferred tax assets and liabilitie5 arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. A net deferred tax asset is recognised ollly if it can be regarded as more likely than not that there will be suitable taxable prof its from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are not discounted. Tangible fixed assets. depreclatSon and impairment The cost of tangible fixed assets represents the purchase price plus any attributable expenditure. Depreciation is provided to write off the cost, less estimated residual values, of all fixed assets, evenly over their expected useful lives. It is calculated at the following rates= UNU refurbishments Clubs SRS motors & others Equipment IT Projects Union refurbishment Computers & Laptops 3- 10 years 3 years 3 years 3 years 3- 10 years lyear The carrying values of tangible fixed assets are reviewed for impairment if ovents or changes in circumstances indicate that the carrying value may not be recoverable. These circumstances include consideration of the ability of the asset to be operated as planned and thereby provide the expected revenue streams associated with that asset. Investments Fixed asset investments comprising listed investments are initially recognised at their transaction cost and then are subsequently measured at their fair value at the balance sheet date unless the fair value cannot be measured reliably in which case they are measured atcost less impairment. Anyinvestmentsgains or losses,whether realised or unrealised, are recognised the Statement of Financial Activities. Fixed asset investments comprising investments in subsidiary undertakings are valued at cost less any provision for impairment as they are not readily saleable and therefore a reliable market value is not available. Stock" goods for resale Stock is valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price_ Pension costs The Union participates in the Students. Union Superannuation Scheme ISUSSI, 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 qualif led independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. The scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence. no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS102, the pension liability has been valued based on the discounted future cash flows of payments underthe agreed recovery plan. The SUSS was closed to further accrual on 30 September 2011. From 2011 the Union participated in the National Union of Students Pension Scheme INUSPSI which is a defined contribution scheme. We ceased to participate in 2017 and all eligible employees were transferred to Scottish Widows defined contribution scheme. The Union nowsolely participates inthe Scottish Widows definedcontribution schemeand the pension costcharge in the financial statements represents the contribution5 paid by the Union to the Scheme in respect of the year. 25
The University of Nottingham Students. Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Principal accounting policies Financial instruments The Union only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Funds and fund accounting Unrestricted funds consi5tof fundswhichthe Charity mayuseforgeneral purposes attheTnJstees' discretion,this includes designated funds which are designated for specific purposes. Restricted funds represent incomecontributions which are allocated to a particular purpose in accordance with the donor's wishes and funds of societieslclubslassociations which are managed by those organlsations and whose use is restricted by their constitutions. Judgements in applying accounting p0cleS and key sources of estimation uncertainty In preparing the Financial Statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with èxpectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimate& There is uncertainty around the estimated discount rate used for the pension deficit calculation. Historically the rate used has been equal to the average return on Corporate Bonds maturing at around thesame time. This is an estimate based on judgementand maydifferfrom thatapplied byourauditors. Contingent liabilities A contingent liability is either a possible but uncertain obligation or a present obligation which is not recognised in the financial statements because: a transter of economic benefit to settle the possible obligation is not probable", or the amount of the obligation cannot be estimated reliably. 26
The University of Nottingham Students, Union (a company limited by guarantee} Financial Statements for the year ended 31 July 2024 Notes to the financial statements Donations and grants Unrestrlcted Restricted Total Total 2024 Funds 2023 Fund5 Block grantfrom University Hall Committee grant from University Other grants and donations Donations in kind 2.410.000 20.000 2.410,000 2,097,882 20,000 50,000 646.000 646,000 535.036 3.076.000 3,076,000 2,682,918 3 Trading turnover Retail CateringlRestaurantS Print shop Events & Advertising 2.397.121 1,106,919 156.184 561,685 2.397,121 2,308,436 1.106,919 1,172,200 156,184 156.044 56L685 510,708 4,221,909 4,221,909 4,147,387 4 Income from charitable activities Societies Medics Sutton Bonnington HC SRS Volunteering Sports Associated Bodies other (Events & promotion incorTTel 895,929 144,891 298,963 128,447 149,527 152.712 1,945,340 25,115 895,929 957,796 144.891 205,259 298.963 360,522 128,447 26,925 149,527 212.685 152,712 54,876 1,945340 1,658,592 25,115 70,506 225,406 169.986 3,966,329 3,717,147 225,406 225.406 3,740,923 Student bodies with a turnover in excess of £25.000 were A Capella. Blow Soc. Christian Union, Dance. Enactus, Economics. Geography, Islamic, Law. Malaysian Nottingham. Musicality, Travel- Med Soc, SCRUBS., SB Guild, Vet Soc, April Vet Soc- NTL, TEC. URN., Athletics. Badminton. Boat. Boxing, Cheerleading, Cricket Mens, Football Mens. Gymnastics. Hockey Ladies. Hockey Men5, Ice Hockey, IMS, Korfball, Lacrosse Ladies, Mountaineering, Netball, Polo, Rambling, Equestrian. Rugby Union Mens. Rugby Union Ladies. Sailing, Skydive, Snowsports,Sub Aqua, Surf, Swimming, Tennis,Thai Boxing. Trampoline, Triathlon, Volley Ball- This includes donatlons and sponsorships. 27
The University of Nottingham Students. Union (a company limited by guarantee) Financial Ststernents for the year ended 31 July 2024 Notes to the financial ststements 5 Totsl resources expended Cost of Staff Costs Other Costs 2024 Total Sales 2023 Total (a) Costs of generating funds Retail 1.748,970 393.199 177.155 2B19320 2,205,004 CateringlRestaurants 306222 49L414 198,830 996,466 1,041670 Print 47.128 91,466 2L441 160,035 166,679 Events & Advertising 255.968 140.398 3L908 396,366 110235 337,407 52.026 UNU Services Limited overheads 78,327 2.358.289 L148.385 475,749 3.982.421 3,802,786 (b) Charitable activities SL7ff Costs Direct Costs Support Costs In kind 2024 Total 2023 Total costs Unrestricted funds Studentadvice centre Student voice campaigning Student communities & grants Governance costs 286,514 588J31 9.014 98.374 160,247 371249 104,447 242.628 560.222 L30L382 509,592 L018,427 517,668 328,124 489.928 298.924 L634.644 L525,038 28,412 28,412 31,328 L392,312 435,511 L050,837 646.000 324,660 3,084.385 other student activity spend Restricted fiJnds.- student activities 3.504,236 3504,236 3,625,937 1.392312 3,939,748 1,050,837 646.000 7,028,896 6.710,322 Support costs and in-kind costs are those costs which cannot be directly attribLrted to a charitable activity but support the delivery of the activity. These are allocated on the basis of management estimates of the amount attributableto thatactivity in the year. either by referencetostsff time orspace occupied, as appropriate. 28
The University of Nottingham Students, Union {a company limited by guarantee} Financial Statements for the year ended 31 July 2024 Notes to the financial statements 5 Totsl resources expended for prior year Cost of Staff Costs Other Costs Sales 2023 Total lal Costs of generating tunds Retail Catering/Restaurants Print Events & Advertising UNU Serlices Limited overheads 1,660,785 350.279 55,691 222,412 361.483 497.206 91,412 114,994 31,908 182,736 2.205,004 194.185 1,041.670 19,575 166,679 337.407 52,026 20,118 2,289,169 1.097,003 416,615 3,802,786 (bl Charitable activities Staff Costs Direct Costs Support Costs Inkind 2023 Total costs Unrestricted funds student advice centre 261,924 495,353 8,123 44.341 150,240 300.258 89,304 509,592 178.475 1,018,427 Student campaigning student communities & grants Governancecosts Digital Project voice 478,291 329,871 449.620 267,257 L525,038 3L328 31,328 1,235,568 382,336 931,446 535,035 3,084,385 Other student activity spend Restricted funds: student activities 3.625,937 3.625,937 L235.568 4.008.273 931.446 535,033 6.710,322 29
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 6 Support Costs Premises Legal & Cost Prof Other Costs 2024 2023 Studentadviceand support Representstion and campaigns Student activities Governance Staff costs for central services (after restructure) 946 2.013 122.383 1,482 2429 15.682 3,436 144,233 177,903 28,412 5,864 3,002 148,675 566 315,968 486,244 28,412 31328 55L917 55L917 410,308 125,341 19,593 905,903 L050.837 931,446 Premises Legal & Other Prof Costs 2023 Studentadvice and support Representation and campaigns Student activities Governance Staff costs for central services (after restructure) 681 2,321 566 33L638 31.328 3,002 566 486,244 31328 101.876 52,730 410.308 410,308 102,556 52,730 776,160 93L446 During the year there were issues Wlth recruitment and retention of staff in central services. Analysis of 51aff costs, trustee remuneration and expensesand the costof key management personnel Total staff emolumentsforthe period of both the University of Nottingham Students. Union and UNU Services Limited were as follows= 2024 2023 Salary costs Social security Pensions 2.62L533 2,425,589 190,881 159,630 197.139 157,660 3.009553 2,742,879 The average number of individuals employed by the Group during the period wa5: Monthly paid Casual Student Staff and Coaches 86 122 84 126 208 210 30
The University of Nottingham Students, Union {a company limited by guarantee} Financial Statements for the year ended 31 July 2024 Notes to the financial statements Analysis of staff costs, tTU5tee remuneration and expenses and the cost of key management personnel (continued) The number of staff whose emoluments for the year (including taxable benefitsl exceeded £60,000 were as follows: 31 July 2024 Number 31July 2023 Number £60,000-£69,999 £70.000- £79,999 £80,000- £89,999 The key management personnel of the parent charity. the Union. and the Group comprise the Officer Trustees, the Chief Executive Officer, Director of Central Services, Director of Commercial & Partnerships and Director of Membership Services. The total employee benefits of the exec team of the Union were £231,63212023- £243,607). This excludes OfficerTrustees.see rbote 8 below. Note,the structurechanged tocurrent execteam structure on l August 2022. 8 Trustees. remuneration and expenses Trusteesare all voluntary roles,and no trustees were remunerated in respectof their role asa trustee. However. as is common with many Students. Unions, Officer Trustees are remunerated in respect of their role as an elected Off icer. Payment to Officer Trustees wa5 agreed and minuted prior to incorporation and is included in the organisations governing document. All Otticer Trustees have written contracts of ernployment with the Union settingoutthe necessary terms and the trustees ensure that it is only a minority of trustees that receive payment. The Trustees who were remunerated for the year were J BLttterworth., T Do,. D Haq., N Holt., E Leech; S Nolan., J Nuthall. P Read-Pitt. Payment to the Officer Trustees wasagreed and minuted priorto irlcorporation. Each of the Officer Trustees is paid a salary of £23.68812023'. £21.1081 per annum. The total salary cost tor the Officer Trustees tothe Union was£220,049 including Nl & pension costs (2023= £146,217). During 2023 two Officer Trustee roles remained vacantdue to issues with recruitment. Cost of Trustees meetings including expenses of non-executive trustees were £98412023: £1,796). Audltors, remuneration The auditors, remuneration (inclusive of irrecoverable VATI during the period was £15,14112023- £15,0001 including fees for UNU Services Limited. These costs are included in governance costs. 31
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 10 Tangible red assets UNU Refurbishment SRS Motors & others Group Equipment computers Clubs &HC Total Cost At l August 2023 Additions Disposals At31July 2024 334,843 307,499 24,449) 617,893 499,473 ll5,820 17,933 44.675 896,924 423,319 (24,449) L295,794 615,293 17.933 44,675 Depreciation At l August 2023 Chargeforthe year Disposals At31 July 2024 322.852 40,489 (24.4491 338,893 460.456 47,517 17,933 44,675 845.916 88,006 124,449) 909,474 507.973 17,933 44,675 Net book value At31July2024 279,000 lo719 386,319 Net bookvalue At31July 2023 IL991 39.017 51,008 SRS Motors & others Equipment omputers Charity Clubs & HC Total Cost At l August 2023 Additions Disposalslwrite off At 31July 2024 499,473 ll5,820 17.933 44.675 562,081 115,820 615,293 17.933 44,675 677,901 Depreciation At IAugust2023 Charge forthe year Disposals At31July 2024 460,456 47,517 17,933 44,675 523,064 47,517 507.973 17.933 44.675 S7081 Net book value At31July2024 107,319 107 319 Net bookvalue At31July 2023 39.017 39,017 32
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 11 Flxed asset investments GTOUP 2024 Charity 2024 2023 2023 C05tand net book value: Investment in subsidiary undertaking Listed investments 300.000 1.464.704 1.567.325 300,000 1,464,704 1,567.325 L567.325 1.464,704 4867,325 1.764,704 Group and Charity 2024 Listed investments Value at l August 2023 Additions in the year at cost Disposal proceeds Valuation gain 1,464,704 324,696 1297.2831 75,204 Market value at31 July 2024 1,567,325 No cash was drawn from the investtnent duringthe yearto 31July 2024 {2023-£381kl As at the date of approving these financial statements the investmentvalue is not materially different from the 31 July 2024 valuation. Investment in subsidiary undertaking The investment in subsidiary undertakirig represents 100% of the ordinary share capital of UNU Services Limited 1022235221, a company whose principal activities are those of the provision of retail shopping, cateringlrestaurants, events and printing facilities to students and staff at the University of Nottingham. UNU Services Limited donates tts trading profits to the Charity. UNU Services Limited is registered at Portland Building, University Park. Nottingham, NG7 2RD. The audited financial statementsof UNU Services Limited forthe year ended 31 Jlkly 2024 show the following: 2024 2023 (a) Profit and loss account Sales Cost of sales 4,190,299 {3,473,3311 4,147,387 13,366,843) Gros5 profit Administrative expenses 716,968 {509,0911 780,544 1435.9441 Operating profit Interest Receivable Other income 207,878 18,970 31,610 344.600 13,726 ProfitllLossl on ordinary activities before taxation Taxation 258,457 358,326 Distribution of reserves (gift aid payment to Charity Profitlllossl for the period transferred to reserves 368.9751 1292,8591 (110.517) 65,467 33
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statefflents for the year ended 31 July 2024 Notes to the financial statements Fixed asset investments (continued) 2024 2023 (b) Balance sheet Fixed assets 279,001 IL990 Current assets Stocks Debtors Investments Cash at bank and in hand 125,144 720,849 135.137 626,507 862,282 1949.243 L708,275 2,710,887 Creditors: amountsfallingdue within oneyear ,460,067) 12,085.1531 Net current assets 248,208 625.734 Net assets 527208 637,724 Capital and reserves Called up share capital Profit and loss account 300,000 227.208 300,000 337.724 Shareholders, funds 527,208 637.724 stock: Goods for resale Group 31 July 2024 Chartty 31 July 2024 31 July 2023 31July 2023 Finished goods and goodsfor resale ,144 135.137 13 Debtors Group 31 July Charity 31July 31July 31July 2024 2023 2024 2023 Trade debtors Amounts owed by subsidiary undertakings 53&258 352,583 245,408 71,574 Prepayments and accrued income 60.032 156,489 47,514 127,926 598,290 509,072 292,922 199.500
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 14 Creditors: amounts falling due within one year Group 31July 2024 Charity 31 July 2024 31July 2023 31 July 2023 Trade creditors Other taxation and social security Amounts owed to group undertakin8 Accruals/other creditors L216.434 69,247 1024,189 18,003 911.742 69.247 415,481 172,140 1,019,738 18,003 316,934 450,825 1327,515 1.531,527 2.613.195 3.573.720 1.568.610 1.805.501 Group 2024 Charity 2024 2023 2023 Deferred income at 01 August 2023 Resources deferred during year Amounts released from previous periods {80,7541 Deferred income at 31 July 2024 486,446 Included in deferred incomeare grants and other income received in advance of entitlement for the 24125 academic year. 132,524 434,676 8,450 132,524 132,524 40,350 8.450 132,524 18,450} 132,524 (80,754) 92,120 18,4501 132,524 15 Contingent liability The Union is aware of a risk regarding our treatment of catering income for VAT purposes. HMRC has challenged a nurnber of Sus regarding the treatment of catering income as exempt from VAT. To date we have not been contacted by HMRC directly. Via NUS, weare partofa VATcampaign which will challengethe claimsalready madeagainst Susand ensurethatguidance2nd statute is clear on how the income should be treated going forward. The VAT campaign challenge to HMRC was unsuccessful and the issue will be taken to judicial review. At report date response is still awaited from judge on whether this is full judicial review. The income has been treated as exempt from VAT as it forms part of the core provision of providing education in the University setting, through catered Halls of Residence. We provide access to this catering to students on behalf of the University the use of their Mealcard in our Coffee, Mooch and Spar outlets. Should a claim be made against us, or the NUS group action be unsuccessful, we have calculated our exposure to historic financial risk at year end to bec£156k12023: £237kl. HMRC have the power to go back 4 years. Whilst we are currently not providing for this amount as a liability in our financial statements due to no claim being made against us, we would like to draw the readerfs attention to this possibility. As a contingency measure the Trustees have agreed to us ringfencing £300k of our free reserves to cover this liability, should itcrystallise.Atthe pointweare madeawaretothe contrarythisamountwill be released back into free reserves. 16 Defined benefit pension scheme liability 31 July 2024 31July 2023 31 July 2024 31July 2023 Pension scherr)e liability (note 17) 1730.205 2,787,296 1730,205 2,787,296 1730,205 2,787.296 Z730,205 2,787,296 35
The Universty of Nottingham Students, Union (a company litnited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 17 Pensions The Union participates in the Students. Union Superdnnuation Scheme ISUSSI, which is a defined benefit scheme whose membership consists of employees of students, unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a Yinal salarf basis, with benefits in respect of service from l October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme closed to future accrual. The valuation of the SUSS scheme carried out as at 30 June 2022 showed that the market value of the schemes assets was £107m with these assets representing 44% of the value of benefits that had accrued to members after allowing forexpected future increases in earnings.130 June 2019-£119m, representing 46%). The deficit on an ongoing fundiryg basis amounted to £135m12019: £141m}. The recovery plan has been extended from 01 August 2035 to 01 May 2037 with a tsrget of buy-out with an insurance company. The 2022 valuation recommended a monthly contribution requirement by each Union expressed in monetary terms intended to clear the ongoing funding deficit by the year 2037. Contributions will increase by at least 5%each year.Thesecontributionsincludeanallowanceforcostof the ongoingadministrative and operational expenses of runningthe Scheme. Surpluses ordeficits which arise atfuture valuations will also impact on the Union's fijture contribution commitment The totsl contributions paid into the SUSS bythe Union in respect of eligibleemployees forthe yearended 31 July 2024 amounted to £21L630 (2023-£203,976) includingfunding deficit contributions of £211,63012023: £203.9761. Fora¢counting purposes the SUSS is reported in accordance with the relevant accounting standard - FRS 102, where the value of the pension deficit is based on the discounted future cash flows of payments under the agreed recovery plan. At 31 July 2024. the pension deficit was valLted at£2.730m P023: £2.787m). Reconciliation of opening and closing provisions Period Ending 31 July 2024 Provision atstart of perlod Unwinding of the di5countfactor Deficit contribution paid Remeasurements- impact of any change in assumptions Provision at end of period 2,787,296 154,540 (211630) 2,730,206 statement of financial Activities impact Period Ending 31 July 2024 Interest expense Remeasurements- impact of any change in assumptions Remeasurements- amendmentsto thecontribLrtion schedule Contributions paid in respect of future service Cost5 recognised in income and expenditure account NPV Assumptions 154,540 154,540 31 July 2024 % perannum 31 July 2023 % perannum Discount rate 6.0% 6.0% 36
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due.would give thesame results as usinghigh qualitycorporate bond yield curves to discount the same recovery plan contributions.There is uncertainty around the estimated discount rate used forthe pension deficitcalculation. This is an estimatebased onjudgement and rnay differ fFomthat applied by our auditors. In addition to the above contributions. the Union also pays Its share of the scheme's levyto the Pension Protection Fund. The Union offers eligible employees the opportunity to join the Scottish Widows scheme. a defined contribution scheme.The total contributions paid into the 5chetne by the Union in respect of eligible employees for the year ended 31 July 2024 amounted to£197,139 (2023:£157,6601. 18 Commitments under operakn.ng leases As at 31 July 2024, the Group and Charity had future minimum lease payments under non-cancellable operating leases as follows.. Group 2024 Charity 2024 2023 2023 Buildings Less than l year Greater than lyear and not later than 5 years 162.788 165,990 196.803 270,728 359,591 436,718 Print Shop Les5 than one year Greaterthan l year and not laterthan 5 years 13,440 2.240 15.680 13.440 16,800 30,240 375,271 466,958 19 Accumulated funds- Group At31 July 2023 At31 July 2024 Gainsl{lossesl Itransfers Incoming Outgoing Restricted funds Societies Medics Sutton Bonington HC SRS Volunteering Sports Associated Bodies Derby Students NMA Physio & Rehab Association RF Sponsorships RF Depreciation 427,328 100.189 156.501 152,367 87,443 74,746 268,424 27,578 1837) 4,864 1,305 895,929 144.891 298,963 128,447 149.527 152,712 1,945.340 8.563 13,990 511 9.047 1917,4661 1136.3431 1297,4281 52,63n (129,8621 158,7251 11,861.8481 123,2961 01.9131 17391 18.971> 405,792 108,736 158,037 128.177 107,108 168,733 351,916 12,845 1.239 4,636 1,381 9,832 (6,9971 2,835 94,892 13,504,336) 194.8921 1,309,740 3.740,923 1,451,535 Unrestricted Funds General fund Pension fund 889,836 12,787,296) 7,388.094 21L630 17,507,086) (154,540} 170,100 940.945 12.730,2061 {587,720) 11,340,647 IllJ65,9621 75,208 (337,7261 37
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements Societies. funds consist of the funds of individual societies. raised from membership fees, donations and sponsorship, each society manages its own affairs by committee. Medics funds consist of the fvnds of individual medical school related societies. raised from membership fees, donations and sponsorship. each society manages its own affairs by committee. Sutton Banington funds are held on behalf of the Guild who generate aflditional income, mainly events, ontop of the Grant from the University, also SB campus-based societies, raised from membership fees, donations and sponsorship, each society manages its own affairs by committee. HC(Hall Committeelfundsare heldon behalf of thecommitteesof Hallsof Residencewhogenerateadditional income, mainly events, on top of the Grantfrom the University. SRS (Student Run Societies) coversthe activities of the radio station URN. TV station NSTV, student magazine Impact, CD library.TEC PA & Lighting, New Theatreand Karnival. Volunteering funds are funds raised to support the volunteering activities of the students union and are specific to individual projects. Sports funds consist of the funds of individual clubs, raised from membership fees, donations and sponsorship. each club manages its own affairs by committee. In additional specific funds are received from Donorsto covercontributionstowards Kit. Coaching Development and pre-season training. Derby. NMA and otherare a positive in expenditure column asthese relateto refunds of costs in the yearfor deposits for events cancelled prior year dLAe to Covid-19. 19 Accumulated fund5- Prioryear At31 July 2022 At31 July 2023 Gainsl(losses) /transfers Incoming Outgoing Restricted funds Societies Medics Sutton Bonington HC SRS Volunteering Sports Associated Bodies Derby Students NMA Physio & Rehab Association other 387,280 85,216 136,301 179,995 52,729 77,241 398.908 4L189 11,425 8.704 732 957.796 205259 360.522 26,925 212,685 54,876 1658,592 19,028 21,857 14.324 14,261 1917,74 1190.2861 1340,3211 154,5531 77,9711 (57,371) 11,789,077) 132.639) 134,1201 (18,1641 (13.6881 427,329 100.189 156,502 152,367 87,443 74,746 268,423 27,578 18381 4,864 1.305 8.796 L036 9,832 L388.516 3,547,161 13,625,937) 1.309,740 Unrestricted Funds General fund Pension fund 1.030.441 12,696.090) 7,049.328 (7.088,716) {91,205) 1101,218) 889,835 11787,2951 [277,1331 10.596.489 (10,805,858) 1101.2181 1587,720) 38
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 20 Analysis of group net assets between fund5 Group Tangible fixed assets Long-term assetsl Liabilities" Net current assets Fund balances Restricted funds General unrestricted funds 1,451.535 IL012,6991 1,451.535 11,789,2611 386.315 11,162.880} 386,315 438.835 (1.162,880) 1337,7261 Group - prior year Tangible fixed assets Long-term assets/ Liabilities Net current assets Fund balances Restricted funds General unrestricted funds 1.309,740 1625,8741 1.309,740 11,897.4601 51,008 {1,322,592) SL008 683.866 (1,322.592) (587.720) Fixed asset investments less defined benefit pension scheme liabilities. 21 Reconcillation of net movement in funds to net cash Inflow from operat5ng actlvltles Group 2024 Group 2023 Net movement in fundsfor the period Interest receivable Depreciation charge Loss on sale of fixed assets Decreaselllncreasel in stock: goods for resale Ilncreaselldecrease in debtors IDecreaselll ncrease in creditors due within one year IDecreaselll ncrease in creditors due after one year Net fair value Igain)Iloss recognised 249,984 {76,408) 88,007 1278,6761 149,0361 48,887 9.993 {89,218) (960,525) 157,091) (75.208) 131,6391 58,712 1,739.424 91,206 101.218 Net cash (used inllprovided by operating activities 1910,465) 1,680,094 39
The University of Nottingham Students, Union (a company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements 22 Capital Commitments Asat 31 July 2024,the group had£Nil P023:E22L9581 future capitsl expenditure not provided in the financial statements- fixtures & fittings, Mooch Venue refurbishment Thiswas funded in full by University. Group 2024 Charity 2024 2023 2023 Mooch Venue refurbishment Less than l year Greaterthan l year and not laterthan 5years 221,958 221958 Less funded by University Less than oneyear Greater than l year and not later than 5 years 12219581 (22l9581 Net capital commttments 23 Related party transactions The University of Nottingham is incorporated by Royal Charter and is an exempt charity for the purposes of the CharitiesAct2011. It isgoverned and regulated bystatutes, oneof which statesthatthere shall bea Union of Students. From this the Union derived its own charitsble status. The University provides a grantto the Union which funds the Union's activities. The University is expected to review the Union's financial statements to ensure its compliance with the Education Act 1994. The University of Nottingham provided £2,410.00012023". £2,097,882) of core funding to the Union during the year, together with Halls grant funding of £20,000 {2023:£50,0001. Recurring grants af £IOO.00012023: £120,000) for Accessing Participation &Opportunities Fund were received within the year and were paid out to individual students in linewith Universityqualifyingcrwteria. One- off grantfundingof £70012023-£45,0001 for projects was received in year. Additional one-off grant funding of £46,53512023£297,1391 was paid to UNU Services to cover costs of refurbishment of our Student Venue, Mooch. The University of Nottingham also trades commercially with the Union for the provision of services such as catering, printing and events. During the year commercial income of £1,072.985 12023.. £L330,5231 was received from the University across the Group. The University of Nottingham ts the owner of the premises which it lets to the Union under a licence agreement Under the licence the University provides service such as power. cleaning, custodial services and landlord's repairs. In return it receives lease charges. principally from the trading activities of UNU Services Limited, which, historically, have been calculated in different ways for different premises. Leases totalling £157,277 have been charged during the year12023: £156,405) Duringthe yearthe Union received free provision of office and studentfacing spaces from the University of Nottingham which have been valued at £646,00012023: £535,036). These are treated as donations in kind in the financial ststements. In addition the University will carry out alterations and other maintenance of the premises and additional cleaningand porteringforwhich itcharges.The Universityalso providesdata,telephone and postsgeservices to the Union for which it charges. During the year other goods and services were purchased from the University totalling £23,82812023- £14,813). During the year IT support services were purchased from the University of Nottingham totalling£47,56612023-. £44.177). During the year agency fees for temporary staff were paid to the University of Nottingham totslling £3,660 12023.-£nill.The Unionand UNU Services Limited used thesalaries offi of the Universityas a payroll bureau, a serviceforwhich the University makesno charge. Thisarrangementceased in July 2024 and a new external payroll bureau was appointed. Goingforward the cost of which will be covered by University. 40
The University of Nottingham Students, Union la company limited by guarantee) Financial Statements for the year ended 31 July 2024 Notes to the financial statements On 31 July 2024 the Union was owed £227,011 from the Universityof Nottingham12023.. £71.6601. On 31 July 2024the Union owed£l,591.090tothe University12023'.£946,911).Thi5included £673.D79 for historic lease charges yet to be invoiced by the University12023-£521.5381. The Union is the beneficial ownerof UNU Services Limited, a company limited by shares. The shares are held in trust for the Union by honorary trustees. Shared service5 are supplied at cost between the entities in the group. The taxable profitof UNU Services Limited is donated tothe Union under Gift Aid, and in 2024 donation amounted to£368,97412023:£292.8591.On 31 July 2024 the Union owed £415,481to UNU Services Limited. On 31 July 2023 the Union owed £316.934 to UNU Services Limited. 24 Controlling and ultimate controllingparty During the year the University of Nottingham Students, Union was under the control of the University of Nottingham Student5, Union Board of Trustees. Theultimate policy decision-making bodyof the University of Nottingham Students. Union isthe combined student body. 25 Affiliations During the year the group paid affiliation fees to National Union of Students £37.500 12023.. £37,500) and British University and Colleges Sport £nil12023.. £nil). 41