**Registered number: 07328777 Charity number: 1137163**
**CARDIFF UNIVERSITY STUDENTS' UNION (A Company Limited by Guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Union, its Trustees and Advisers**|1 - 2|
|**Trustees' Report**|3 - 13|
|**Independent Auditor's Report on the Financial Statements**|14 - 17|
|**Consolidated Statement of Financial Activities**|18|
|**Consolidated Balance Sheet**|19|
|**Union Balance Sheet**|20|
|**Consolidated Statement of Cash Flows**|21|
|**Notes to the Financial Statements**|22 - 46|
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE UNION, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021**
|**Trustees**|Hannah Doe, President (appointed 1 July 2021)1|
|---|---|
||Tomos Evans, President (resigned 30 June 2021)1|
||Christopher Grieve, VP Societies and Volunteering (appointed 1 July 2021)1|
||Luke Evans, VP Societies and Volunteering (resigned 30 June 2021)1|
||Megan Somerville, VP Sports & AU President (appointed 1 July 2021)1|
||Judith Pickett, VP Sports & AU President (resigned 30 June 2021)1|
||Georgina Dunn, VP Education (appointed 1 July 2021)1|
||Hannah Doe, VP Education (resigned 30 June 2021)1|
||Sebastian Ripley, VP Health Park1|
||Orla Tarn, VP Postgraduate (appointed 1 July 2021)1|
||Jane Chukwu, VP Postgraduate (resigned 30 June 2021)1|
||Charlotte Towlson, VP Welfare and Campaigns (appointed 1 July 2021)1|
||Georgina East, VP Welfare and Campaigns (resigned 30 June 2021)1|
||Stephen Oldfield, Non-portfolio2|
||Tariq Awan, Non-portfolio (appointed 1 July 2021)2|
||Matthew Bird, Non-portfolio (appointed 1 July 2021)2|
||Ryan Singh, Non-portfolio (resigned 30 June 2021)2|
||Thomas Mahony-Kelross, Non-portfolio (resigned 30 June 2021)2|
||Jayne Sadgrove, Non-portfolio3|
||Rameshwar Singh CBE, Non-portfolio3|
||Richard Roberts OBE, Non-portfolio4|
||Marie Natasha Applasamy, Non-portfolio4|
||Bethan Walsh, Non-portfolio (resigned 7 July 2021)4|
|1
Sabbatical Trustees
2
Student Trustees
3
University Nominated Trustees
4
External Trustees
**Company registered**
**number**
07328777
**Charity registered**
**number**
1137163
**Registered office**
Park Place
Cardiff
CF10 3QN
**Chief executive officer**
Daniel Palmer
**Independent auditor**
Mazars LLP
Chartered Accountants
90 Victoria Street
Bristol
BS1 6DP||
Page 1
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE UNION, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
**Bankers** Lloyds TSB Bank Plc 31 Queen Street Cardiff CF10 2AG Santander UK Plc Bootle Merseyside L30 4GB **Solicitors** TLT LLP 1 Redcliff St Bristol BS1 6TP Poppleston Allen 37 Stoney Street Nottingham NG1 1LS
Page 2
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2021**
The Trustees present their annual report together with the audited financial statements of the Group and the Union for the year 1 August 2020 to 31 July 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
## **Objectives and activities**
## **a. Objectives and activities**
The objects of the charity are the advancement of education of students at Cardiff University for the public benefit by:
- Promoting the interests and welfare of students at Cardiff University during their course of study and representing, supporting and advising students;
- Being the recognised representative channel between students and Cardiff University and any other external bodies; and
- Providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students.
In shaping the Union’s objectives for the year and planning its activities, the Trustees have considered the Charity Commission’s general and relevant supplementary guidance on public benefit. In pursuit of these aims for the public benefit, the Union has established departments and services for use by its members and works with the University and other organisations on behalf of Cardiff University students.
The Union sets its long-term priorities in line with its strategic plan, reviewed periodically and informed by research undertaken with Cardiff University students. The Trustees consider the strategic plan when setting the Union’s annual objectives, articulated in a balanced scorecard and pursued by Trustees and Union staff. In May 2018 the Union launched its current strategic plan covering 2018 to 2021, entitled ‘The Heart of the Cardiff Student Experience’ and it can be viewed at: http://www.cardiffstudents.com/about-cusu/plans. In December 2021 the Union will publicly launch its new strategic plan – the Heart of Student Life – detailing how the organisation will recover from the Covid-19 pandemic and set other priorities up to 2025.
## **Strategic report**
## **Achievements and performance**
## **a. Achievements and performance**
Overall student engagement and participation in activities were dramatically reduced due to social distancing restrictions and limited teaching time during the year. In anticipation of the impact on activities and services the Trustees focused the organisation’s resources in supporting Student Advice, Student Voice and general student communications during the year. Additional support was also focused on activities less directly affected by social distancing such as the annual elections where we had our highest-ever turnout at Cardiff and what is thought to be most participative student election in 2020 in the UK.
In the year 17,401 (21,658) unique students engaged in our activities, resulting in 29,529 (2020: 50,806) registered engagements. Overall student engagement has dropped for two consecutive years after 7 years of growth and was to be expected due to the impact of the pandemic. The Trustees are confident that student engagement and participation will grow in 2021/22 and could return to pre-pandemic levels if social distancing
Page 3
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
measured aren’t re-introduced during the year. Although not directly comparable to other students’ unions, the Trustees believe that the Union’s level of engagement remains amongst the highest within UK students’ unions.
## **Student engagement by area 2019-21**
||**2019**|**2020**|**2021**|
|---|---|---|---|
|**Advice Centre**|5,289|6,634|**6,500**|
|**Academic Rep**|925|980|**945**|
|**Annual Members Meeting**|633|871|**0**|
|**Associations**|132|135|**52**|
|**Athletic Union**|5,278|4,915|**3,131**|
|**Cardiff Student Letting**|1,977|2,316|**2,254**|
|**Driver**|143|99|**0**|
|**Election Candidate**|166|108|**89**|
|**Give it a Go**|4,644|4,036|**0**|
|**Guild of Societies**|8,159|7,874|**3,376**|
|**Jobshop**|5,036|4,318|**2,318**|
|**Skills Development Service**|1,951|1,706|**1,237**|
|**Student Senate**|25|27|**23**|
|**Student Media**|308|257|**184**|
|**Student Led Services**|234|138|**54**|
|**Venues**|11,299|10,078|**0**|
|**Volunteering (CV)**|1,293|1,137|**138**|
|**Voter**|7,540|6,126|**9,228**|
|**Varsity**|6,518|5,600|**0**|
## **Student satisfaction**
The Union is committed to measuring and benchmarking student satisfaction as a key indicator for organisational success, as stated within the strategic plan. During the year none of the external bodies who have historically measured students’ union satisfaction undertook research during the pandemic. The Union undertook an internally managed student satisfaction survey in Nov / Dec 2020 with 2,000 responses from students. Of the respondents 78% were satisfied or extremely satisfied with the Union with 5% dissatisfied. It is expected that benchmarking will be possible during 2021/22 and will be reported in 2022.
A comprehensive and numerical breakdown of the Union’s engagement activities and its student satisfaction levels can be seen at: www.cardiffstudents.com/about-cusu/governance/annual-impact-reports.
## **Achievements against targets set**
The Union’s top 20 operational targets are set within its organisational balanced scorecard, set annually by the Trustees. The Trustees take due regard of the positive and negative factors internal and external to the Union when settings its plans and dedicate two days a year to this activity. Eleven of the targets were fully achieved, with six partially achieved and three not achieved / deferred until 2021/22. Statements of performance against these targets is listed below. During 2020/21 the Union did not undertake an assessment of staff time and financial resources used to achieve these objectives.
Page 4
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
## **Satisfaction & Engagement**
1. To organise and operate a full and diverse freshers social and entertainments package over an extended University induction period, including freshers fairs at both the Cathays and Heath campuses by 30th November 2020.
Partially achieved
2. To develop a new measure of mass student satisfaction in the SU and begin satisfaction modelling and maintain UK Top-3 SU within the WhatUni Student Choice / Student Hut Awards by 30th April 2021. Achieved
3. To increase the percentage of students who agree that the Union represents their academic interests in the NSS by 2% (from 64% to 66%).
Not Achieved
4. To retain the current level of staff satisfaction within the NUS staff engagement survey (or Best Companies Survey) by 30th June 2021.
Not achieved
5. To establish a student groups support system and ensure that the number of active student groups doesn’t fall by more than 10% in 2020/21 by 31st July 2021. Partially Achieved
## **Learning & Development**
1. To agree a new organisational strategy and brand by 31st July 2021. Achieved
2. To ensure that at least 50% (down from 73% in 2018/19) of students engage with the Union during 2020/21 by 31st July 2021.
Achieved
3. To launch a room / space booking platform to facilitate efficient use of the Union building by students in 2020/21 by 15th September 2020.
Achieved
4. To develop a renewed HR strategy, incorporating a comprehensive student staff support strategy by 28th February 2021.
Partially achieved
5. To re-establish the Investors in Diversity working group and establish a race equality plan and training programme by 28th February 2021. Achieved
## **Sustainability**
1. To achieve the overall budgeted deficit and cash position for the Union’s group of companies for 2020/2021, by 31st July 2021.
Achieved
Page 5
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Strategic report (continued)**
## **Achievements and performance (continued)**
2. To achieve the overall net income contribution from CUSL’s trading activities for 2020/21, by 31st July 2021. Not achieved
3. To complete the internal decoration for the 3rd floor of the building to an operationally acceptable standard for full use by 15th September 2020. Achieved
4. To have created ablution facilities and opened a renovated or new multi-faith prayer space by 15th September 2020.
Achieved
5. To design and begin building works on an updated SU Park Place entrance (for Sept 2021 opening), incorporating social distancing needs and with restricted funds by 31st July 2021. Partially Achieved
## **Quality & Assurance**
1. To agree Covid-19 operating plans for all student-facing services to ensure continued provision in 2020/21 and opportunities to quickly rebound in 2021/22 by 15th September 2020. Achieved
2. To have established a Covid-19 specific risk assessment for the Union building and all student-facing activities by 15th September 2020. Achieved
3. To have established a new Governance framework, following approval by the Board of Trustees and other relevant bodies by 31st December 2020. Partially achieved
4. To have successfully installed the Union building’s new combined heating and power (CHP) system by 15th September 2020. Achieved
5. To adopt and agree operating procedures and partnership working for co-location with the Centre for Student Life by 31st July 2021. Partially achieved
## **Financial review**
## **a. Financial review**
The Charity Group’s total income amounted to £5,967,127 (2020: £10,280,850) with total expenditure of £5,999,449 (2020: £10,823,403) in the year. Overall, this resulted in a net expenditure of £32,322 (2020: £542,553). This includes restricted grant income of £216,500 and expenditure and transfers of £56,251.
At 31 July 2021 the Union Group’s free reserves (i.e. unrestricted funds not represented by fixed assets and pension fund liability) amounted to £1,205,186 (2020: 1,342,303) and the Trustees are satisfied that the Union has a sound financial base to continue to operate through the COVID-19 pandemic and to pursue its objectives and activities. In addition, a further £543,015 (2020: £682,855) was held in restricted funds.
Page 6
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
The Union’s trading subsidiary’s turnover decreased to £1,268,583 (2020: £3,795,928) resulting in a reduced gross profit of £977,827 (2020: £1,898,977). Administrative expenses decreased to £3,536,902 (2020: £3,924,274) in the year.
Overall, the trading company made a deficit of £547,022 (2020: £1,332,409). During the year the company’s pension liability decreased to £5,460,411 (2020: £5,770,342) following the outcome of the triannual valuation of the Scheme. The deficit arises from the Company’s future obligations towards the Students’ Union Superannuation Scheme (SUSS), which was closed to future accrual in 2011. The Trustees and Directors are satisfied that it has the funds to meet the obligations to the fund as they fall due over the life of the scheduled deficit recovery plan up to 2035.
## **b. Reserves policy**
The Trustees annually review the Union’s reserves position and set targets for reserves levels in accordance with future needs, should funding not be available from the principle funding sources. The Union’s reserves policy states that the Union will budget to achieve surpluses annually from its consolidated activities to build unrestricted free reserves to £1.3M by 2023. Free reserves are defined as ‘unrestricted funds not represented by fixed assets’.
The Charity’s total funds in free reserve is £2,220,497 (2020: £1,558,534) and £1,205,186 (2020: £1,342,303) when consolidated.
## **c. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
## **d. Financial risk management objectives and policies**
The Trustees examine the major strategic, business and operational risks faced by the Union and maintain a risk register that is reviewed annually. Where appropriate, systems or procedures have been established to mitigate the risks faced by the Union. These procedures are periodically reviewed to ensure that they continue to meet the needs of the Union.
Budgetary and internal control risks are minimised by expenditure limits set by the Board of Trustees. In addition, stringent procedures are in place to ensure the health and safety of staff, volunteers and participants on all activities organised by the Union. All other types of risk have specific mitigation plans that are implemented by appropriate staff and reported to the Board of Trustees.
Page 7
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **e. Principal risks and uncertainties**
The Union maintains a risk register that is reviewed annually by the Trustees and was last reviewed in December 2020. The following risks areas have been identified as the most critical to the Union’s strategic, financial and reputational health.
|Category|Risk type|Systems, controls and mitigating factors|
|---|---|---|
|Financial|The Union fails to meet its
financial targets for budgeted
surpluses in order to reach a
minimum of £1.3M in free
reserves by 2023.|Detailed budgeting and comprehensive management
reporting via the Board of Trustees and the Finance &
Audit Committee. Annual forecasting is in place and
the Union has achieved its budgeted surpluses for the
past three years. Target achieved in August 2020, but
quickly unmet due to COVID-19 impact. Surplus
budgets will continue to be planned once COVID-19
recovery has ended and are realistic within the
environmental context.|
|Financial|Pension structures deliver
unmanageable increases in
cost to the Union.|The Union's pension costs through SUSS have more
than doubled in recent years due to the deficit within
the scheme. Further increases are very likely and
may outstrip the Union's ability to fund them without
assistance from the University. The SUSS scheme is
closed to future accrual and the Union now offers a
stakeholder pension scheme as well as NEST. A 20%
increase in employer contributions is due from
October 2021 onwards.|
|Health & Safety|Incidents and accidents fail to
be reported in line with agreed
procedures.|Incidents should be reported immediately so that
further action can be taken if necessary. All staff
should be vigilant to detect and deal with potential
hazards that might arise at any time. H&S awareness
training and specific training for responsible officials
concerning their responsibilities has been delivered.|
## **f. Principal funding**
The Union’s principal funding source is Cardiff University. The relationship between Cardiff University and the Union is established in an ordinance of the University’s governing documents and in 2020/21 the Union received a grant of £2,895,750 (2019/20: £2,895,750). The grant is set by agreement on an annual basis. The Union also leases buildings and occupies spaces controlled by the University and this non-monetary support is intrinsic to the relationship between the University and the Union.
Although the Union continues to generate supplementary income from various mutual-trading activities, it is dependent on the University’s financial support. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future. The 1994 Education Act imposes a duty on the University to ensure that the Union operates in a fair and democratic manner and is accountable for its finances.
Page 8
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Structure, governance and management**
## **a. Constitution**
The Union is a registered charity (Charity No: **1137163** ) linked to Cardiff University (the University). The Union is also a company limited by guarantee registered in England and Wales (Company No: **07328777** ). The Union is constituted by its Memorandum and Articles of Association and is controlled by a Board of Trustees, who act as Directors for the purposes of company law and Trustees for the purposes of charity law. Decisions are made by simple majority vote.
The Union has two subsidiary companies controlled by the Union by virtue of sole membership: Cardiff Union Services Limited (CUSL) and Cardiff Volunteering Limited (CV). These companies, along with the Union are reported as a group within the Year End accounts that accompany this report.
The Union is a students’ union, as defined in the Education Act 1994, with internal regulations and rules approved by its Board of Trustees and the Council of Cardiff University (its governing body).
## **b. Methods of appointment or election of Trustees**
The Union has fifteen constituted trustee roles split into four groups:
**Seven Sabbatical Trustees,** elected in accordance with the Union’s Memorandum and Articles of Association and its Bye-Laws;
**Three Student Trustees,** appointed in accordance with the Union’s Memorandum and Articles of Association; **Three External Trustees,** appointed in accordance with the Union’s Memorandum and Articles of Association; and
**Two University Nominated Trustees,** appointed in accordance with the Union’s Memorandum and Articles of Association.
The Board of Trustees meets at least four times a year and is responsible for maintaining legal, financial and reputational integrity whilst setting the organisation’s strategy, approving general policies and approving the annual budgets and accounts. The Board has established seven committees to ensure effective oversight of operations and where appropriate invite experts to attend and advise these committees:
Leadership Team Finance & Audit Committee Health, Environment, Maintenance & Safety (HEMS) Committee Human Resources Committee Satisfaction, Engagement & Participation (SEP) Committee Appointments & Remuneration Committee Chief Executive’s Appraisal Group
All new trustees are provided induction training and are introduced to the activities of the Union by the existing Board, the Chief Executive and other staff. Trustees are provided with ongoing training as and when required, based on an assessment of their existing skills set and according to the Board’s Development Plan.
The political and campaigning policies of the Union are set by the Student Council (referred to as the Student Senate for publicity purposes) and executed by the Sabbatical Trustees and other elected student officers. The Board of Trustees maintains oversight of these policies in accordance with their duties. The Union’s Student Senate membership comprises students elected by the Union’s student members.
Page 9
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Structure, governance and management (continued)**
## **c. Organisational structure and decision-making policies**
The Board of Trustees delegates the day-to-day management of the Union to a Chief Executive, through a scheme of delegated authority approved annually by the Board of Trustees. To ensure effective management the Chief Executive leads a Strategic Management Team (SMT), with responsibility for operational management of the Union’s activities, services and representation support. In addition, The Chief Executive appoints non-senior staff to the SMT from time to time as associates to support the SMT’s work and to aid professional development. During 2020/21 they were:
Permanent members Chief Executive Daniel Palmer Deputy Chief Executive Ben Eagle Director of Engagement & Participation Steve Wilford Director of Communications Raechel Mattey Director of Finance Christine Akers
The Union’s staff – excluding the Sabbatical Trustees - are employees of CUSL who are contracted to work across the Union’s group of companies. The Sabbatical Trustees are employees of Cardiff University Students’ Union directly, as prescribed within the Memorandum and Articles of Association. The Group employs approximately 90 permanent staff and a further 250 occasional staff are employed for the sake of continuity in the management of its activities. All staff are accountable to the Chief Executive for the performance of their duties, via a line management structure of delegated authority.
## **d. Pay policy for senior staff**
The Union has adopted a job evaluation scheme, approved by the HR Committee and overseen by the Chief Executive, to ensure that pay for staff roles are fair and related to the level of responsibilities undertaken. The pay for the Chief Executive and the Sabbatical Trustees is set by the Appointments and Remuneration Committee with benchmarks and parameters agreed in comparison to other large educational charities and leading students’ unions.
## **e. Affiliations**
The Union is affiliated to the National Union of Students (NUS) and British Universities and Colleges Sport (BUCS) and paid affiliation fees of £37,500 and £18,600 respectively in 2020/21. Both affiliations were ratified by referendum, which took place between 8[th] and 12[th] March 2021. The Union participates in the NUS Services purchasing consortium and receives trading support and other benefits including income from Totum (formally NUS Extra) card sales. In 2020/21 the Union’s net income from Totum card sales was £2,247 (2019: £5,406).
## **f. Affiliated student clubs and societies**
The Union provides a long-standing framework of grant funding for affiliated student sports clubs and societies of the Union, in accordance with the provisions stated within the 1994 Education Act. In 2020/21 the Union allocated grants to these groups totalling £380 (2020: £64,112) reflecting the lack of student activity and need for additional resources during the year. As part of the HEFCW grant we were also able to provide additional grants to our societies which totalled £8,600.
Page 10
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Structure, governance and management (continued)**
## **g. Volunteers**
The Union makes use of volunteers, who in most cases are also beneficiaries, to achieve its objectives. Volunteers are engaged in activities such as inducting new students into the University, supervising social, cultural, sporting and recreational activities and in representing students to the University and external bodies. The Union has not conducted an exercise to identify the number of hours’ volunteers contribute or its staff equivalency.
## **h. Employee involvement and employment of the disabled**
Employees have been consulted on issues of concern to them by means of regular consultative committee and staff meetings and have been kept informed on specific matters directly by management. The Union and the group carries out exit interviews for all staff leaving the organisation and has adopted a procedure of upward feedback for senior management and the Trustees.
The Union and the group has implemented several detailed policies in relation to all aspects of personnel matters including:
- Equal Opportunities Policy
- Volunteers' Policy
- Health & Safety Policy
In accordance with the Union and the group's Equal Opportunities Policy, the Union and the group has long established fair employment practices in the recruitment, selection, retention and training of disabled staff. Full details of these policies are available from the Union and the group's offices.
## **Plans for future periods**
The Union’s strategy 2018-2021 – The heart of the Cardiff Student Experience – outlines the Union’s plans over the coming three years and splits its priorities into four themes and four enablers. These are:
## **Themes**
The heart of student life; Home of the student voice; Sector-leading facilities and services; and Engaging our less engaged communities.
## **Enablers**
People; Finance; Facilities; and Digital Technology
Over the life of the strategy the Union has been operationally disrupted by the construction of the Centre for Student Life building in front of the Union building on Park Place and by the construction of the new Maths and Computer Science building immediately north of the Union building on Senghennydd Road. The Union agreed a business interruption package with Cardiff University to mitigate any negative financial impacts caused by the construction work. The Trustees are confident that the new buildings will significantly enhance the Union’s ability to meet its charitable objectives and will increase income generation opportunities to support growth of the charity.
In mid-2021 the Union started agreed a new strategy for 2021-25 – the Heart of Student Life - to be publicly launched to students, staff and the University in December 2021.
The Trustees have set the following top 20 operational targets for 2021/22, taking account of the ongoing pandemic and carrying forward of targets from the prior year:
Page 11
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Plans for future periods (continued)**
## **Our students, staff and other stakeholders**
1. To plan and execute a comprehensive programme of activities across the freshers’ period, to welcome new and returning students back to university – re-establishing all services to pre-pandemic levels.
2. To have launched a new brand and public image.
3. To have launched a new strategy to staff, students and external stakeholders. Aligning staff work to strategic priorities and improved one-to-one structure to support success.
4. To develop and implement a strategy for improving the education, culture and practice surrounding sexual harassment, both within our communities and across the whole organisation.
5. To provide support to re-establish student groups to pre-pandemic levels, supporting groups to deliver activity and grow memberships.
## **Learning & Development**
1. To either A - receive funding for and complete the redevelopment of the reception and front entrance or B – design and implement a Union-funded terrace.
2. To have implemented all items within the staff recognition and support package.
3. To implement a one team approach across our volunteers, student staff and career staff.
4. To develop a package of support to engage students in all aspects of their academic life, including those on placement.
5. To develop a digital data hub to store, monitor and track data across the organisation.
## **Sustainability**
1. To achieve the organisational group budget
2. To develop the third floor lounge space into a social hub for students.
3. To develop and grow a commercial opt-in mailing list provides exclusive rewards and offers to members based on their purchasing habits and wants.
4. To ensure all HEFCW grant funded projects are delivering in line with project expectations.
5. The develop and agree a Great Hall business and redevelopment plan covering the next 5 years.
## **Quality & Assurance**
1. To rebuild our student staff, ambassadors and after a year of being depleted and to develop a student insights function ensuring there is timely opportunities to shape and feedback on commercial functions.
2. To fully integrate CU and CSU across CSL operations with opening of the new building in September 2021.
3. Further develop digital improvements to our membership services and commercial services by reviewing current practices, collating feedback on improvements and increasing opportunities for students to engage digitally.
4. To digitise the work and activities of the Board of Trustees and its sub committees.
5. To ensure that 90% of the Union’s core KPI’ success metrics (as seen on table below) are met to the desired levels.
## **Trustees' indemnities**
Group directors and officers indemnity insurance is held by the parent entity up to a limit of £2m.
Page 12
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Union for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Union and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
## **Auditor**
The auditor, Mazars LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on and signed on their behalf by:
## **Hannah Doe**
Union President 2020/21 and Chair of the Board of Trustees
Page 13
**CARDIFF UNIVERSITY STUDENTS' UNION (A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE OF CARDIFF UNIVERSITY STUDENTS' UNION**
## **Opinion**
We have audited the financial statements of Cardiff University Students' Union (the ‘Union’) for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, the Group and Union Balance Sheets, the Group Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
give a true and fair view of the state of the Union’s affairs as at 31 July 2021 and of the Group's incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Union in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Page 14
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **INDEPENDENT AUDITOR'S REPORT TO THE OF CARDIFF UNIVERSITY STUDENTS' UNION (CONTINUED)**
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic Report and the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Strategic Report and the Trustees' Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the Union and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustees' responsibilities statement set out on page 14, the directors 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend to liquidate the Union or to cease operations, or have no realistic alternative but to do so.
Page 15
**CARDIFF UNIVERSITY STUDENTS' UNION**
**(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE OF CARDIFF UNIVERSITY STUDENTS' UNION (CONTINUED)**
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to Covid-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
We evaluated the Directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue cut off and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
- Discussing with the Directors and management their policies and procedures regarding compliance with laws and requlations;
- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
- Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the Directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Page 16
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE OF CARDIFF UNIVERSITY STUDENTS' UNION (CONTINUED)**
## **Use of the audit report**
This report is made solely to the Union's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Union's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Union and the company's members as a body for our audit work, for this report, or for the opinions we have formed.
Jonathan Marchant (Senior statutory auditor)
for and on behalf of
Mazars LLP Chartered Accountants and Statutory Auditor 90 Victoria Street Bristol BS1 6DP
Date:
Page 17
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2021**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
Investments
5
Other income
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
7
**Total expenditure**
**Net (expenditure)/income**
Transfers between funds
18
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**2,895,750**
**1,162,243**
**1,268,583**
**127**
**423,924**
**5,750,627**
**3,783,922**
**2,159,276**
**5,943,198**
**(192,571)**
**300,089**
**107,518**
**7,559,292**
**107,518**
**7,666,810**|**Restricted**
**funds**
**2021**
**£**
**216,500**
**-**
**-**
**-**
**-**
**216,500**
**-**
**56,251**
**56,251**
**160,249**
**(300,089)**
**(139,840)**
**682,855**
**(139,840)**
**543,015**|**Total**
**funds**
**2021**
**£**
**3,112,250**
**1,162,243**
**1,268,583**
**127**
**423,924**
**5,967,127**
**3,783,922**
**2,215,527**
**5,999,449**
**(32,322)**
**-**
**(32,322)**
**8,242,147**
**(32,322)**
**8,209,825**|_Total_
_funds_
_2020_
_£_
_4,074,397_
_1,960,991_
_3,795,928_
_5,181_
_444,353_
_10,280,850_
_7,484,311_
_3,339,092_
_10,823,403_
_(542,553)_
_-_
_(542,553)_
_8,784,700_
_(542,553)_
_8,242,147_|
|---|---|---|---|---|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 22 to 46 form part of these financial statements.
Page 18
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee) REGISTERED NUMBER: 07328777**
## **CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021**
|**Note**
**Fixed assets**
Tangible assets
11
Investments
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
Creditors: amounts falling due after more
than one year
16
Provisions for liabilities
**Total net assets**
**Charity funds**
Restricted funds
18
Unrestricted funds
18
**Total funds**|**59,203**
**435,965**
**3,001,250**
**3,496,418**
**(1,630,117)**|**2021**
**£**
**11,922,035**
**73,563**
**11,995,598**
**1,866,301**
**13,861,899**
**(191,663)**
**(5,460,411)**
**8,209,825**
**543,015**
**7,666,810**
**8,209,825**|_129,535_
_578,763_
_2,795,037_
_3,503,335_
_(1,305,907)_|_2020_
_£_
_11,987,331_
_73,563_
_12,060,894_
_2,197,428_
_14,258,322_
_(245,833)_
_(5,770,342)_
_8,242,147_
_682,855_
_7,559,292_
_8,242,147_|
|---|---|---|---|---|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by:
## **Hannah Doe**
Union President 2020/21 and Chair of the Board of Trustees
The notes on pages 22 to 46 form part of these financial statements.
Page 19
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee) REGISTERED NUMBER: 07328777**
## **UNION BALANCE SHEET AS AT 31 JULY 2021**
|**Note**
**Fixed assets**
Tangible assets
11
Investments
**Current assets**
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
18
Unrestricted funds
18
**Total funds**|**730,212**
**2,678,454**
**3,408,666**
**(647,155)**|**2021**
**£**
**35,281**
**2,000**
**37,281**
**2,761,511**
**2,798,792**
**2,798,792**
**543,015**
**2,255,777**
**2,798,792**|_453,760_
_2,266,557_
_2,720,317_
_(493,410)_|_2020_
_£_
_49,295_
_2,000_|
|---|---|---|---|---|
|||||_51,295_
_2,226,907_|
|||||_2,278,202_|
|||||_2,278,202_|
|||||_682,855_
_1,595,347_|
|||||_2,278,202_|
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by:
## **Hannah Doe**
Union President 2020/21 and Chair of the Board of Trustees
The notes on pages 22 to 46 form part of these financial statements.
Page 20
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 22 to 46 form part of these financial statements|**2021**
**£**
**904,956**
**127**
**(698,870)**
**(698,743)**
**206,213**
**2,795,037**
**3,001,250**|_2020_
_£_
_1,792,847_
_5,181_
_(658,779)_
**(653,598)**
**1,139,249**
_1,655,788_
_2,795,037_|
|---|---|---|
Page 21
**CARDIFF UNIVERSITY STUDENTS' UNION**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **1. General information**
Cardiff University Students' Union is a private company limited by guarantee, registered in England & Wales, company registration number 07328777. It is a registered charity with registered number 1137163. Its registered office address is Park Place, Cardiff, CF10 3QN.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Cardiff University Students' Union meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The presentational currency of the Union is Sterling which is its functional currency and the financial statements are rounded to the nearest £. The current financial information relates to the year ended 31 July 2021 and the comparative information relates to the year ended 31 July 2020.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Union and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
No separate SOFA has been presented for the Union alone as permitted by section 408 of the Companies Act 2006. The income and expenditure account for the year dealt with in the accounts of the Union was £520,590 (2020 - £787,026).
## **2.2 Company status**
The Union is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the Union being wound up, the liability in respect of the guarantee is limited to £1 per member of the Union.
## **2.3 Going concern**
The financial statements have been prepared on a going concern basis. The Trustees have reviewed the forecasts based on the Union’s latest income and expenditure to ensure cash liquidity is maintained to an appropriate level for the 12 month period, from the date of signing these statements. The forecasts have modelled several reasonably possible scenarios around recommencing our full commercial activities.
Whilst the situation continues to evolve, making scenario planning difficult, the Union principal funding source remains the block grant from the University, which is agreed in advance of the start of the financial year. There is no reason to expect that the level of grant will materially change and each year the Union is able to adopt a zero-based budget, with activity proportionate to the level of funding agreed. As a consequence the Union is well placed to manage its financial risks satisfactorily, and has a reasonable expectation that it will have adequate resources to continue in operation for at least 12 months from the signing date of these financial statements.
Page 22
**CARDIFF UNIVERSITY STUDENTS' UNION**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **2. Accounting policies (continued)**
## **2.4 Income**
All income is recognised once the Union has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Income from trading activities includes income generated by the charity's trading subsidiary. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occured.
## **2.5 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. It is categorised under the following headings:
Expenditure on raising funds includes costs of the charity's trading subsidiary, Cardiff Union Services Limited.
Expenditure on charitable activities includes staff and other costs of delivery the charity's objects together with support and governance costs.
Other expenditure represents the net cost of absorbing the charity's trading subsidiary, Cardiff Union Services Limited.
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
## **2.6 Government grants**
Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated Statement of Financial Activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated Statement of Financial Activities as the related expenditure is incurred.
## **2.7 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Union; this is normally upon notification of the interest paid or payable by the Bank.
Page 23
**CARDIFF UNIVERSITY STUDENTS' UNION**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **2. Accounting policies (continued)**
## **2.8 Tangible fixed assets and depreciation**
Leasehold improvements and plant and machinery costing more than £1,000, equipment costing more than £500 and computers costing more than £300 are capitalised.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
- Long-term leasehold property over the remaining term of the lease - Leasehold improvements, plant 5 - 10 years & machinery - Office equipment 3 - 5 years - Computer equipment 3 years Work in progress - Nil
## **2.9 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.
Fixed asset investments comprise holdings of Welsh Rugby Union debentures and shares in NUS Services Limited. These assets are held at cost on the basis there is no readily available market value.
## **2.10 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.11 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.12 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 24
**CARDIFF UNIVERSITY STUDENTS' UNION**
**(A Company Limited by Guarantee)**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **2. Accounting policies (continued)**
## **2.13 Liabilities**
Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Union anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
## **2.14 Provisions**
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **2.15 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.16 Pensions**
The Union operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Union to the fund in respect of the year.
## **2.17 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 25
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **3. Income from donations and legacies**
|**Grants**
Block grant
Redevelopment grant
Santander Diversity Fund
**Total grants**
Donations
HEFCW
Cardiff University
**Grants**
Block grant
Redevelopment grant
Santander Diversity Fund
**Total grants**
Donations
HEFCW
Cardiff University|**Unrestricted**
**funds**
**2021**
**£**
2,895,750
-
-
2,895,750
-
-
-
-
2,895,750
_Unrestricted_
_funds_
_2020_
_£_
_2,895,750_
_-_
_-_
_2,895,750_
_-_
_-_
_-_
_-_
_2,895,750_||**Restricted**
**funds**
**2021**
**£**
-
-
1,500
1,500
-
50,000
165,000||**Total**
**funds**
**2021**
**£**
**2,895,750**
**-**
**1,500**
**2,897,250**|
|---|---|---|---|---|---|
||||||**-**
**50,000**
**165,000**
**215,000**
**3,112,250**|
||||215,000|||
|||||||
||||216,500|||
||||_Restricted_
_funds_
_2020_
_£_
_-_
_1,151,385_
_1,500_
_1,152,885_
_3,762_
_-_
_22,000_
_25,762_
_1,178,647_||_Total_
_funds_
_2020_
_£_
_2,895,750_
_1,151,385_
_1,500_
_4,048,635_
_3,762_
_-_
_22,000_
_25,762_
_4,074,397_|
|||||||
|||||||
|||||||
|||||||
Page 26
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **4. Income from charitable activities**
|Athletic Union income
Societies income
Hire of vehicles for student use
Student development income
Give it a Go programme income
Jobshop
Miscellaneous
Income from Cardiff Volunteering
Athletic Union income
Societies income
Hire of vehicles for student use
Student development income
Give it a Go programme income
Jobshop
Miscellaneous
Income from Cardiff Volunteering|**Unrestricted**
**funds**
**2021**
**£**
3,292
6,424
1,631
7,345
-
1,128,868
14,317
366
1,162,243
_Unrestricted_
_funds_
_2020_
_£_
_29,882_
_37,211_
_55,977_
_3,076_
_57,099_
_1,738,243_
_38,101_
_1,402_
_1,960,991_|**Total**
**funds**
**2021**
**£**
**3,292**
**6,424**
**1,631**
**7,345**
**-**
**1,128,868**
**14,317**
**366**
**1,162,243**
_Total_
_funds_
_2020_
_£_
_29,882_
_37,211_
_55,977_
_3,076_
_57,099_
_1,738,243_
_38,101_
_1,402_
_1,960,991_|
|---|---|---|
Page 27
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **5. Investment income**
|Bank interest received
Bank interest received
**Other incoming resources**
Coronavirus Job Retention Scheme Grant
Coronavirus Job Retention Scheme Grant|**Unrestricted**
**funds**
**2021**
**£**
127
_Unrestricted_
_funds_
_2020_
_£_
_5,181_
**Unrestricted**
**funds**
**2021**
**£**
423,924
_Unrestricted_
_funds_
_2020_
_£_
_444,353_|**Total**
**funds**
**2021**
**£**
**127**
_Total_
_funds_
_2020_
_£_
_5,181_
**Total**
**funds**
**2021**
**£**
**423,924**
_Total_
_funds_
_2020_
_£_
_444,353_|
|---|---|---|
## **6. Other incoming resources**
Page 28
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **7. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Charitable activities
Charitable activities|**Unrestricted**
**funds**
**2021**
**£**
2,159,276
_Unrestricted_
_funds_
_2020_
_£_
_3,307,891_|**Restricted**
**funds**
**2021**
**£**
56,251
_Restricted_
_funds_
_2020_
_£_
_31,201_|**Tota**
**funds**
**2021**
**£**
**2,215,527**
_Total_
_funds_
_2020_
_£_
_3,339,092_|
|---|---|---|---|
## **8. Analysis of expenditure by activities**
|Charitable activities
Charitable activities|**Activities**
**undertaken**
**directly**
**2021**
**£**
1,124,492
_Activities_
_undertaken_
_directly_
_2020_
_£_
_1,816,419_|**Support**
**costs**
**2021**
**£**
1,091,035
_Support_
_costs_
_2020_
_£_
_1,522,673_|**Total**
**funds**
**2021**
**£**
**2,215,527**|
|---|---|---|---|
||||_Total_
_funds_
_2020_
_£_
_3,339,092_|
Page 29
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of direct costs**
|Staff costs
Direct costs of activities
Direct costs of dealing with AU and Societies
Give it a Go costs
Transport costs
Student development costs
Staff welfare
Expenditure from Cardiff Volunteering
Staff costs
Direct costs of activities
Direct costs of dealing with AU and Societies
Give it a Go costs
Transport costs
Student development costs
Events costs
Jobshop costs
Staff welfare
Expenditure from Cardiff Volunteering|**Charitable**
**activities**
**2021**
**£**
1,064,497
49,360
414
337
1,962
7,424
65
433
1,124,492
_Charitable_
_activities_
_2020_
_£_
_1,650,177_
_80,420_
_19_
_50,404_
_22,386_
_5,586_
_3_
_74_
_1,114_
_6,236_
_1,816,419_|**Total**
**funds**
**2021**
**£**
**1,064,497**
**49,360**
**414**
**337**
**1,962**
**7,424**
**65**
**433**
**1,124,492**|
|---|---|---|
|||_Total_
_funds_
_2020_
_£_
_1,650,177_
_80,420_
_19_
_50,404_
_22,386_
_5,586_
_3_
_74_
_1,114_
_6,236_
_1,816,419_|
Page 30
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Staff welfare
Building and equipment costs
Marketing costs
Motor and travel costs
Communications
Corporate and administrative costs
Depreciation
Student activities
Agency staff costs
Staff costs
Staff welfare
Building and equipment costs
Marketing costs
Motor and travel costs
Communications
Corporate and administrative costs
Depreciation
Student activities
Agency staff costs|**Charitable**
**activities**
**2021**
**£**
732,021
9,633
2,635
50,610
1,994
9,115
117,986
20,224
109,823
36,994
1,091,035
_Charitable_
_activities_
_2020_
_£_
_856,588_
_10,728_
_18,315_
_27,396_
_34,082_
_27,989_
_168,064_
_15,997_
_324,682_
_38,832_
_1,522,673_|**Total**
**funds**
**2021**
**£**
**732,021**
**9,633**
**2,635**
**50,610**
**1,994**
**9,115**
**117,986**
**20,224**
**109,823**
**36,994**
**1,091,035**|
|---|---|---|
|||_Total_
_funds_
_2020_
_£_
_856,588_
_10,728_
_18,315_
_27,396_
_34,082_
_27,989_
_168,064_
_15,997_
_324,682_
_38,832_
_1,522,673_|
Page 31
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **9. Auditor's remuneration**
||**2021**|_2020_|
|---|---|---|
||**£**|_£_|
|Fees payable to the Union's auditor for the audit of the Union's annual|||
|accounts|**6,200**|_5,950_|
|Fees payable to the Union's auditor in respect of:|||
|The auditing of accounts of associates of the Union|**8,615**|_8,215_|
|Taxation compliance services|**1,500**|_1,500_|
|All other non-audit services not included above|**4,115**|_3,940_|
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Group**
**2021**
**£**
**3,539,647**
**240,160**
**72,473**
**3,852,280**|_Group_
_2020_
_£_
_4,746,792_
_279,615_
_84,958_
_5,111,365_|**Union**
**2021**
**£**
**1,684,546**
**92,387**
**19,586**
**1,796,519**|_Union_
_2020_
_£_
_2,369,854_
_111,020_
_25,891_
_2,506,765_|
|---|---|---|---|---|
The average number of persons employed by the Union during the year was as follows:
|Cardiff University Students' Union - Sabbatical officers
Cardiff University Students' Union - Jobshop
Cardiff University Students' Union - Administrative
Cardiff Union Services Limited - Cost of sales
Cardiff Union Services Limited - Administrative|**Group**
**2021**
**No.**
**7**
**313**
**28**
**44**
**72**
**464**|_Group_
_2020_
_No._
_7_
_502_
_57_
_163_
_82_|
|---|---|---|
|||_811_|
Page 32
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **10. Staff costs (continued)**
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**Group**|_Group_|
|---|---|---|---|
|||**2021**|_2020_|
|||**No.**|_No._|
|In the band £60,001|- £70,000|**1**|_1_|
|In the band £80,001|- £90,000|**1**|_1_|
During the year under review the charity and group's 5 (2020: 5) key management personnel received employee benefits, inclusive of employer pension contributions and termination payments, totalling £331,504 (2020: £325,914).
Page 33
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **11. Tangible fixed assets**
## **Group**
|**Cost or valuation**
At 1 August 2020
Additions
Transfers between
classes
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
At 31 July 2021
**Net book value**
At 31 July 2021
_At 31 July 2020_|**Long-term**
**leasehold**
**property**
**Leasehold**
**improvements**
**£**
**£**
**14,000,000**
**353,880**
**-**
**358,652**
**-**
**499,199**
**14,000,000**
**1,211,731**
**3,009,517**
**33,710**
**602,218**
**91,210**
**3,611,735**
**124,920**
**10,388,265**
**1,086,811**
_10,990,483_
_320,170_|**Office**
**equipment**
**£**
**1,550,897**
**77,912**
**8,460**
**1,637,269**
**1,421,487**
**51,021**
**1,472,508**
**164,761**
_129,410_|**Computer**
**equipment**
**£**
**464,749**
**14,465**
**19,500**
**498,714**
**444,640**
**19,717**
**464,357**
**34,357**
_20,109_|**Work in**
**Progress**
**£**
**527,159**
**247,841**
**(527,159)**
**247,841**
**-**
**-**
**-**
**247,841**
_527,159_|**Total**
**£**
**16,896,685**
**698,870**
**-**
**17,595,555**|
|---|---|---|---|---|---|
||||||**4,909,354**
**764,166**
**5,673,520**|
||||||**11,922,035**|
||||||_11,987,331_|
Page 34
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **11. Tangible fixed assets (continued)**
## **Union**
|**Cost or valuation**
At 1 August 2020
Additions
Transfers between classes
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for the year
At 31 July 2021
**Net book value**
At 31 July 2021
_At 31 July 2020_|**Office**
**equipment**
**£**
**68,536**
**2,217**
**-**
**70,753**
**41,148**
**12,341**
**53,489**
**17,264**
_27,388_|**Computer**
**equipment**
**£**
**7,181**
**3,994**
**19,500**
**30,675**
**4,774**
**7,884**
**12,658**
**18,017**
_2,407_|**Work in**
**progress**
**£**
**19,500**
**-**
**(19,500)**
**-**
**-**
**-**
**-**
**-**
_19,500_|**Total**
**£**
**95,217**
**6,211**
**-**
**101,428**|
|---|---|---|---|---|
|||||**45,922**
**20,225**
**66,147**|
|||||**35,281**|
|||||_49,295_|
Page 35
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
|**12.**
**Fixed asset investments**
**Group**
**Market value**
At 1 August 2020 and 31 July 2021
**Group investments comprise:**
Welsh Rugby Union Debentures
NUS Credit guarantee deposit
**Union**
**Market value**
At 1 August 2020 and 31 July 2021
**13.**
**Stocks**
Goods for resale|**Other**
**investments**
**£**
**73,563**
**73,563**
**31 July**
**2021**
_31 July_
_2020_
**£**
_£_
**62,000**
_62,000_
**11,563**
_11,563_
**73,563**
_73,563_
**Other**
**investments**
**£**
**2,000**
**2,000**
**Group**
_Group_
**2021**
_2020_
**£**
_£_
**59,203**
_129,535_|**Other**
**investments**
**£**
**73,563**
**73,563**
**31 July**
**2021**
_31 July_
_2020_
**£**
_£_
**62,000**
_62,000_
**11,563**
_11,563_
**73,563**
_73,563_
**Other**
**investments**
**£**
**2,000**
**2,000**
**Group**
_Group_
**2021**
_2020_
**£**
_£_
**59,203**
_129,535_|
|---|---|---|
|||**2,000**|
|||_Group_
_2020_
_£_
_129,535_|
Page 36
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **14. Debtors**
|**Group**
**2021**
**£**
Trade debtors
**201,098**
Amounts owed by group undertakings
**-**
Other debtors
**48,026**
Prepayments and accrued income
**186,841**
Tax recoverable
**-**
**435,965**
**Creditors: Amounts falling due within one year**
**Group**
**2021**
**£**
Bank loans
**50,004**
Trade creditors
**309,586**
Amounts owed to group undertakings
**-**
Other taxation and social security
**82,004**
Other creditors
**686,422**
Accruals and deferred income
**502,101**
**1,630,117**|_Group_
_2020_
_£_
_191,533_
_-_
_87,044_
_176,250_
_123,936_
_578,763_
_Group_
_2020_
_£_
_4,167_
_220,680_
_-_
_191,349_
_533,062_
_356,649_
_1,305,907_|**Union**
**2021**
**£**
**151,107**
**437,632**
**45,407**
**96,066**
**-**
**730,212**
**Union**
**2021**
**£**
**-**
**19,734**
**-**
**2,348**
**554,182**
**70,891**
**647,155**|_Union_
_2020_
_£_
_130,104_
_214,597_
_79,549_
_29,510_
_-_|
|---|---|---|---|
||||_453,760_|
||||_Union_
_2020_
_£_
_-_
_41,794_
_9,101_
_3,459_
_424,415_
_14,641_|
||||_493,410_|
## **15. Creditors: Amounts falling due within one year**
Page 37
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **16. Creditors: Amounts falling due after more than one year**
||**Group**|_Group_|
|---|---|---|
||**2021**|_2020_|
||**£**|_£_|
|Bank loans|**191,663**|_245,833_|
A Business Interruption Loan from Lloyds bank was obtained in May 2020 to provide additional working capital to fund project costs. The rate of interest payable on the loan is Bank of England Base Rate plus 1.81% per annum. Base Rate is currently 0.1% per annum. The loan is effectively interest free for the first 12 months after which interest is charged each month against the amount outstanding and will therefore vary throughout the life of the loan. The capital is repayable in 60 equal monthly instalments of £4,166.67 commencing 13 months after drawdown of the loan. There are no early repayment charges associated with the loan. The loan is secured against an unlimited debenture dated 01/10/10 from Cardiff Union Services Limited.
## **17. Provisions**
## **Group and Union**
|At 1 August 2020
Payments in year
Change in discount rate
Unwinding of discount|**Net pension**
**liability**
**£**
**5,770,342**
**(268,266)**
**(115,943)**
**74,278**|
|---|---|
|||
||**5,460,411**|
Page 38
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
|**18.**
**Statement of funds**
**Statement of funds - current year**
**Balance at 1**
**August 2020**
**£**
**Unrestricted funds**
**Designated funds**
Fixed Assets Fund
**11,987,331**
Pension Reserve
**(5,770,342)**
**6,216,989**
**General funds**
Cardiff University Students'
Union
**1,558,534**
Cardiff Volunteering
**30,633**
Cardiff Union Services Limited
**(246,864)**
**1,342,303**
**Total Unrestricted funds**
**7,559,292**
**Restricted funds**
Restricted funds
**682,855**
**Total of funds**
**8,242,147**|**Income**
**£**
**-**
**-**
**-**
**4,057,626**
**366**
**1,692,634**
**5,750,626**
**5,750,626**
**216,500**
**5,967,126**|**Expenditure**
**£**
**(764,165)**
**-**
**(764,165)**
**(3,376,971)**
**(1,250)**
**(1,800,811)**
**(5,179,032)**
**(5,943,197)**
**(56,251)**
**(5,999,448)**|**Transfers**
**in/out**
**£**
**Balance at**
**31 July 2021**
**£**
**698,869**
**11,922,035**
**309,931**
**(5,460,411)**
**1,008,800**
**6,461,624**
**(18,692)**
**2,220,497**
**-**
**29,749**
**(690,019)**
**(1,045,060)**
**(708,711)**
**1,205,186**
**300,089**
**7,666,810**
**(300,089)**
**543,015**
**-**
**8,209,825**|
|---|---|---|---|
Page 39
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
|**18.**
**Statement of funds (continued)**
**Statement of funds - prior year**
_Balance at_
_1 August_
_2019_
_£_
**Unrestricted funds**
**Designated funds**
Fixed Assets Fund
_12,049,699_
Pension Reserve
_(4,297,886)_
_7,751,813_
**General funds**
Cardiff University Students'
Union
_1,421,355_
Cardiff Volunteering
_27,803_
Cardiff Union Services Limited
_(440,986)_
_1,008,172_
**Total Unrestricted funds**
_8,759,985_
**Restricted funds**
Restricted funds
_24,715_
**Total of funds**
_8,784,700_|_Income_
_£_
_-_
_-_
_-_
_4,845,088_
_11,662_
_4,245,453_
_9,102,203_
_-_
_1,178,647_
_1,178,647_|_Expenditure_
_£_
_(721,147)_
_-_
_(721,147)_
_(5,177,030)_
_(8,832)_
_(4,885,193)_
_(10,071,055)_
_(10,792,202)_
_(31,201)_
_(10,823,403)_|_Transfers_
_in/out_
_£_
_658,779_
_(1,472,456)_
_(813,677)_
_469,121_
_-_
_833,862_
_1,302,983_
_489,306_
_(489,306)_
_-_|_Balance at_
_31 July 2020_
_£_
_11,987,331_
_(5,770,342)_
_6,216,989_
_1,558,534_
_30,633_
_(246,864)_
_1,342,303_
_7,559,292_
_682,855_
_8,242,147_|
|---|---|---|---|---|
Page 40
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **18. Statement of funds (continued)**
Description of funds
## Designated funds
**Fixed Assets Fund** - in 2018 the Trustees decided to designate the net book value of the Group's fixed assets as these assets are not readily available to spend.
**Pension Reserve** - in 2018 the Trustees decided to designate the pension liability held in Cardiff Union Services Limited since this liability is not immediately payable.
## Unrestricted funds
**General Funds (the Union)** - these are the funds of the Union which have not been designated by Trustees.
**Cardiff Volunteering** - this fund represents the net assets of the subsidiary Cardiff Volunteering.
**Cardiff Union Services Limited** - this fund represents the net assets of the subsidiary Cardiff Union Services Limited, after the designation of the Fixed Assets Fund and the Pension Reserve.
## Restricted funds
The restricted funds represent restricted grants not expended at the year end.
## **19. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
11,922,035
Fixed asset investments
73,563
Current assets
2,953,403
Creditors due within one year
(1,630,117)
Creditors due in more than one year
(191,663)
Provisions for liabilities and charges
(5,460,411)
7,666,810|**Restricted**
**funds**
**2021**
**£**
-
-
543,015
-
-
-
543,015|**Total**
**funds**
**2021**
**£**
**11,922,035**
**73,563**
**3,496,418**
**(1,630,117)**
**(191,663)**
**(5,460,411)**
**8,209,825**|
|---|---|---|
Page 41
**(A Company Limited by Guarantee)**
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **Analysis of net assets between funds - prior year**
|**Unrestricted**
**funds**
**2020**
**£**
Tangible fixed assets
11,987,331
Fixed asset investments
73,563
Current assets
2,820,481
Creditors due within one year
(1,305,908)
Creditors due in more than one year
(245,833)
Provisions for liabilities and charges
(5,770,342)
7,559,292|**Restricted**
**funds**
**2020**
**£**
-
-
682,855
-
-
-
682,855|**Total**
**funds**
**2020**
**£**
**11,987,331**
**73,563**
**3,503,336**
**(1,305,908)**
**(245,833)**
**(5,770,342)**
**8,242,147**|
|---|---|---|
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net expenditure for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in stocks
Decrease in debtors
Increase/(decrease) in creditors
(Decrease)/increase in net pension liability
**Net cash provided by operating activities**|**Group**
**2021**
**£**
**(32,322)**
**764,166**
**(127)**
**70,332**
**142,798**
**270,040**
**(309,931)**
**904,956**|_Group_
_2020_
_£_
_(542,553)_
_721,147_
_(5,181)_
_(58,749)_
_247,015_
_(41,288)_
_1,472,456_
_1,792,847_|
|---|---|---|
Page 42
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
|**21.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**22.**
**Analysis of changes in net debt**
Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year
**23.**
**Capital commitments**
Contracted for but not provided in these financial statements|**At 1 August**
**2020**
**£**
**2,795,037**
**(4,167)**
**(245,833)**
**2,545,037**|**Group**
**2021**
**£**
**3,001,250**
**3,001,250**
**Cash flows**
**£**
**206,213**
**(45,837)**
**54,170**
**214,546**
**Group**
**2021**
**£**
**140,067**|_Group_
_2020_
_£_
_2,795,037_
_2,795,037_
**At 31 July**
**2021**
**£**
**3,001,250**
**(50,004)**
**(191,663)**
**2,759,583**
_Group_
_2020_
_£_
_327,966_|
|---|---|---|---|
Page 43
**CARDIFF UNIVERSITY STUDENTS' UNION (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **24. Pension commitments**
## **Defined contribution pension**
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £72,513 (2020: £84,958). Contributions totalling £13,139 (2020: £14,170) were payable to the fund at the balance sheet date and are included in creditors.
## **Defined benefit pension**
Cardiff Union Services Limited participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the United Kingdom. Benefits in respect of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual.
The most recent Triannual Valuation of the Scheme was carried out as at 30 June 2019 and showed that the market value of the Scheme’s assets was £119.1m (2016: £101.3m) excluding AVC's and insured pensioners with these assets representing 46% (2016: 46% ) of the value of benefits that have accrued to members. The deficit on an ongoing funding basis amounted to £140.9m (2016: £119.7m).
The 2019 Valuation funding shortfall recovery plan requires a monthly contribution requirement by each Participating Employer up to August 2035. The contribution will increase by 5% in October 2020 as planned and then by 16% in October 2021. Contributions will increase by 5% each year thereafter until the end of the deficit recovery period. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates apply with effect from 1 October 2019 and will be formally reviewed following completion of the next Valuation due with an effective date of 30 June 2022. Surpluses or deficits which arise at future valuations will also impact on Union’s future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension Protection Fund.
The total deficit contributions paid into the Scheme by Cardiff Union Services Limited in respect of eligible employees for the year ended 31 July 2021 amount to £286,266 (2020: £255,486).
At the balance sheet date the Company had commitments to pay deficit funding contributions of £21,547 per month, increasing by 5% at October 2020.
## **25. Operating lease commitments**
At 31 July 2021 the Group and the Union had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**Group**
**2021**
**£**
**30,823**
**5,472**
**36,295**|_Group_
_2020_
_£_
_33,992_
_38,024_
_72,016_|**Union**
**2021**
**£**
**26,440**
**5,307**
**31,747**|_Union_
_2020_
_£_
_28,359_
_32,792_|
|---|---|---|---|---|
|||||_61,151_|
Page 44
## **CARDIFF UNIVERSITY STUDENTS' UNION**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **26. Related party transactions**
During the year under review the group's sabbatical trustees and key management personnel were reimbursed expenses and had expenses paid on their behalf totalling £480 (2020: £9,504).
As authorised under section 6 of the Articles of Association, a total of £155,297 (2020: 157,735) was paid in remuneration to 12 (2020: 12) sabbatical officer trustees as follows:
|J Chukwu
H Doe
G Dunn
G East
L Evans
T Evans
C Grieve
J Pickett
S Ripley
M Somerville
O Tarn
C Towlson|**Gross pay**
**£**
**19,840**
**21,687**
**2,459**
**19,840**
**19,840**
**20,308**
**2,459**
**19,840**
**21,644**
**2,459**
**2,459**
**2,459**
**155,294**|_2021_
_Employer_
_pension_
_contribution_
_£_
_347_
_-_
_39_
_347_
_347_
_438_
_-_
_424_
_-_
_-_
_39_
_-_
_1,981_|
|---|---|---|
## **27. Controlling party**
The Charity was controlled throughout the year by its Trustees.
## **28. Subsidiary charity activities - Cardiff Volunteering**
Cardiff Volunteering is a 100% subsidiary of the charity. It is registered in England & Wales, company registered number 09712403 and charity registered number 1168217.
At 31 July 2021, the company had net assets of £29,749 and it made a deficit for the year of £884.
During the year under review Cardiff University Students' Union made a donation to Cardiff Volunteering in support of its activities of £Nil. At the balance sheet date Cardiff Volunteering owed £403 (2020 - was owed £9,101) the Charity and owed £40 (2020 - £25,995) to Cardiff Union Services Limited. The donation and year end balances have been eliminated on consolidation.
Page 45
**CARDIFF UNIVERSITY STUDENTS' UNION**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021**
## **29. Subsidiary activities - Cardiff Union Services Limited**
Cardiff Union Services Limited is a 100% subsidiary of the charity. It is registered in England & Wales, registered number 02287517. The principal activity of the Company is the promotion of the social and educational welfare of the students of Cardiff University by providing services and facilities to them.
At 31 July 2021, the company had net assets of £5,460,351. The profit and loss account information for the year ended 31 July 2021 is shown below.
|Turnover
Cost of sales - excluding staff costs
Staff costs
Administrative costs
Depreciation charges
Grant from Cardiff University
Interest receivable and similar income
Interest payable and similar charges|**2021**
**£**
**1,268,583**
**(221,406)**
**(2,055,762)**
**(806,549)**
**(743,941)**
**1,971,013**
**127**
**40,913**
**(547,022)**|_2020_
_£_
_3,795,928_
_(1,487,343)_
_(2,604,601)_
_(1,024,131)_
_(705,150)_
_2,415,659_
_5,171_
_(1,727,942)_
_(1,332,409)_|
|---|---|---|
At the balance sheet date Cardiff Union Services Limited owed £437,229 (2020 - £214,597) to the charity and was owed £40 (2020 - £25,995) by Cardiff Volunteering. These balances have been eliminated on consolidation.
Page 46