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2023-07-31-accounts

r¢ GuildofStudentsUniversity of Birmingham

CONSOLIDATED FINANCIAL STATEMENTS

For the year ended

31 July 2023

Company Registration No. 06638759 CharityNo 1137548

University of Birmingham Guild of Students CONTENTS

Page(s)
Reference and administration details 1-2
Report ofthe Trustee Board 3-15
Trustee responsibilities in relation to the financial statements 16
Independent auditor’s report 17-20
Consolidated Statement of Financial Activities 21
Consolidated and Company Balance Sheets 22
Consolidated Statement of Cash Flows 23
Accounting policies 24-27
Notestothefinancialstatements 28-48

University of Birmingham Guild of Students REFERENCE AND ADMINISTRATION DETAILS

Charity Name: University of Birmingham Guild of Students Charity Registration No: 1137548 (Registered in England & Wales) Company Registration No: 06638759 (Registered in England & Wales) Registered Office: Guild of Students, University of Birmingham Edgbaston Park Road Birmingham, B15 2TU

Trustee Board - as at 23 October 2023

Appointed Resigned
Mr RobertSmeath Chair 234 Oct 17 -
Ms Acacia Matthews Vice Chair— President 18! Jul 22 44% Jul 23
Miss Vanessa Chigariro Education Officer 18 Jul 22 14th Jul 23
Miss Florence Craddock Sports Officer 18!" Jul 22 14t Jul 23
Miss Reeve Isaacs Smith Welfare & Community Officer 18! Jul 22 14% Jul 23
Ms Isobel Lawson Activities
& Employability Officer		 18!" Jul 22 14 Jul 23
Ms Tianjie Liu International Officer (Officer across 18!" Jul 22 -
two financial years)
Mr Benjamin Lockley Postgraduate Officer (Officer across 18! Jul 22 -
two financial years)
Miss Henrietta Brealey 10'* Sep 19 6Sep 22
Ms Erica Conway 39 Jul 18 -
MrJohnny Davis 13th May 19 -
Ms. Mitali Gohel 6th Jan 23 -
MrStanley Melau 18" Jul 22 -
Mr Akram Nazir 18! Jul 22 4'h Jul 23
Miss Serabi Opiyo 19! Jul 21 12! Sep 23
Mr lan Pain 7" Sep 20 4' Jul 23
DrEmmaWedge 11'" May 20 -
Miss Alicia Wickert 18! Jul 22 4th Jul 23
Mr Yinbo Yu 42!" Jan 22 -
2023/24 (New)
Ms Amira Campbell Vice Chair— President 17'* Jul 23 -
Mr Harry Brooks Activities
& Employability Officer		 17" Jul 23 -
Miss Catherine Hardiman Sports Officer 17% Jul 23 -
Mr Joseph Hill Education Officer 17" Jul 23 -
Mr Dean Turner Welfare
& Community		 Officer 417 Jul 23 -
Mr Michael Brown 23 Oct. 23 -
Mrs Simone Hawley 23" Oct 23 -
MissDionneWilliams 23Oct23 -

Page 1

University of Birmingham Guild of Students REFERENCE AND ADMINISTRATION DETAILS

Senior ManagementTeam
Mrs Joanne Thomas Chief Executive and Company Secretary
Miss Emily Badger Director of Operations
Mr Nicholas Bailey Director of Finance & Systems
MrJames Lindsay Director of Community & Representation (Started employment Feb 23)
MrAdam Sheridan Director of Engagement
Auditors Dains Audit Limited
15 Colmore Row, Birmingham, B3 2BH
Bankers HSBC Bank Plc
130 New Street, Birmingham, B24JU
Solicitors Governance, Charity Law& General
Bates, Wells & Braithwaite London LLP
10 Queen Street Place, London, EC4R 1BE
HR
DFA Law LLP
2 Waterside Way, Northampton, NN4 7XD
VAT Consultancy RSM UK Tax and Accounting Limited
10Floor,103ColmoreRow,Birmingham,B33AG

Page 2

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

The Trustee Board presents their Annual Report for the year ended 31 July 2023 which includes the administrative information set out on pages 1-2, together with the audited accounts for the year.

Structure, Governance and Management

The University of Birmingham Guild of Students (the Guild) is constituted under the Education Act 1994 as a Charity with internal regulations and rules approved by University Council, the governing body of the University of Birmingham.

The Guild’s charitable objectives under the Act, to further and enhance the University’s educational purposes by providing representation, support and promotion of social intercourse for the students of the University, are supplemented by the further object of supporting members to develop their own charitable activities as active participants in civil society.

The Guild of Students became incorporated into a Company Limited by Guarantee (CLG) in July 2008 and registered as a Charity in August 2010.

The Guild is administered by its Trustee Board of eighteen members comprising of seven Sabbatical Trustees; four Student Trustees; six external Trustees and a University Trustee, who are regarded as the Charity Trustees of the Guild for the purposes of the Charities Act.

The Full-Time Officers group, together with the part-time, non-sabbatical officers (referred to as Guild Officer Group), are elected annually by a cross-campus secret ballot of the Guild’s membership. The seven posts consist of; President, Activities and Employability, Education, International, Postgraduate, Sport, and Welfare and Community Officers. Officers are full time posts remunerated as authorised by the Education Act and cannot exceed two years duration for each holder.

The Guild operates on democratic principles, working for and with our members, the students of the University of Birmingham. During 2022/23, the voice of students was represented by the ‘Members Democratic Process’ through its ‘Ideas Submission Process’, the ‘All Student Meeting’ and ‘Scrutiny Panel’ bodies. However, during the year, a planned external review of our democratic structures took place and a revised model has been approved for implementation from September 2023.

The Trustee Board, assisted by sub-committees where appropriate has delegated the day-to-day running of the Guild to the Chief Executive. As Charity Trustees, all Trustees receive a comprehensive training programme into their legal and administrative responsibilities at the start of their term of office, with ongoing guidance as and when required for issues arising during their term. The Trustee Board meets at least six times per year to receive reports from sub-committees, Officers, Senior Management and the Chief Executive, and to review the Guild’s performance and administration. In 2022/23, the Trustee Board met six times, including two away days taking place in January and July 2023.

The Guild of Students also employs a number of core staff to provide continuity, consistency and expertise in the management of its many activities. The staff team are accountable to the Chief Executive for the performance of their duties.

The Guild of Students incurred costs of £5,586 (2022: £5,152) within the year relating to Professional Indemnity insurance cover of £5m (2022: also £5m). This policy included cover for the Trustees, Directors, Officers, Employees, Student Group committee members as well as other volunteers associated with Guild activities.

Relationship with the University of Birmingham

The relationship between the University and the Guild is established in the Charter, Statutes, Ordinances and Regulations of the University and detailed in the Memorandum of Understanding, which is approved by both organisations.

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University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

The Guild receives a block grant from the University, and occupies a building owned by the University which is leased to the Guild of Students at an agreed rent.

There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body. The University plays an important role within the Guild, having representatives on the Trustee Board and sub-committees.

Risk Management

The Trustee Board has examined the main strategic business and operational risks faced by the Guild. A risk management policy and risk register are in place where appropriate systems or procedures have been established to mitigate the risks the Guild faces. The risk register is updated on a regular basis.

Budgetary and
internal
control		 risks are minimised
by the
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 across all activities organised for the Guild.
These procedures are periodically reviewed to ensure that they continue to meet the needs of the
Guild. The key risk areas identified are:
es
Co
SUSS Pension deficit payment,		 e
Cash-flow planning to take advantage of advance discount
significant
increases
in
future
offers as they fall due, where financially viable
years e Discussions
with
University
of
Birmingham
regarding
possible funding options in the future
A significant reduction in trading source offunding
income e Trustee approval
for
a
revised
trading
model,
reducing
contributions
previously
incorporated
into
the
2023/24
budget, to remain competitive within the current market
Operational e Guild and departmental contingency plans
in place with
Loss
of
any
aspect
of
Guild		 established protocols for
a Guild Emergency Planning Group
services due to disaster e Transition of Guild IT provision to University platform and
support, completed in 2022/23
e Business Continuity
Insurance in place
Guild
is
perceived
as_
not		 to inform strategic and operational decisions
relevant to members and does
not
respond
to
changes _
in
students’ behaviours and needs		 e
Reputational e Regular training
provided
to key stakeholders regarding
acting
in
such
a way
that
it		 e
harms the reputation of the Guild media issues and other problems that arise.
and/or University e Professional external advice sought as required.
Operational e Training and support are provided for high risk areas by the
Health & safety matters across a Guild team
broad
range
of
activities
and		 e
failure
to
follow
approved		 with effective support from University colleagues.
processes
such
as_
risk}		 e Robust Event Manual and
Risk Assessment Process
for
assessments activities
e Analyticalreviewofexisting
safety
policiesand
processes

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University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

was conducted during 2022/23 by both University Internal
Audit
and
an_
externally
commissioned
review,
with
recommended actions for improvements almost complete
Cost of Living e A detailed ‘Pay Review’ has been conducted in 2022/23 and
Responding to challenges arising due to be concluded in early 2023/24
from ; the
conditions		 current economic e
e Long term forecast takes account of cost increases in key
areas
e Five-year Block Grant funding secured to 2026/27
e A Value for Money review is being planned in 2023/24 to
identify
possibleefficiencies.

Aims, Objectives and Activities

The Guild has clear objects which are stated in its Articles of Association, which are:

The furtherance and the enhancement of the educational purposes of the University of Birmingham including but not limited to;

(i) The promotion of social intercourse between students of the University of Birmingham and the furtherance of the common interests of such students; and; (ii) The support of such societies that shall from time to time be recognised by the Guild.

In pursuit of these objectives, the Guild ensures the diversity of its membership is recognised, valued and supported and as such has established student support and development departments and quality services for use by its members, to support its work with the University and other organisations on behalf of students. These include Community Welfare; Student Groups; Voice & Representation and Venues.

The Guild continues to represent students on relevant local, national and international issues. Through the ‘Ideas Submission Process’, students are able to mandate the Guild to lobby and campaign in areas important to its members. The Guild also supports the work of the National Union of Students (NUS) via various national bodies and conferences, and participates in national campaigning and lobbying activity by the national student movement. On a local level, Guild Officers continue to attend many University committees and working groups to enhance the student experience at Birmingham and ensure that the student voice is heard and responded to at all levels of the University. Through the Student Representation Scheme and the Guild Officer Group, student representatives sit on and contribute to over 100 University committees and academic programme forums. Guild Officers also regularly meet to put forward the student voice with the City Council, local residents, the Police and other providers of public services used by students in Birmingham.

To further enhance the student experience, the Guild attracts a diverse membership to get involved in the Guild, the University and the local community by actively promoting the benefits of volunteering in student-led activities. When reviewing our objectives and planning our activities, the Guild gives due consideration to the Charity Commission’s general and relevant supplementary guidance on public benefit.

Achievements and Performance

The end of the 2022/23 academic year marks the completion of ‘Year 1’ of our 5-year Strategic plan (2022-2027). The summary below provides progress and updates on projects and activities completed in the last year towards the delivery of the 1st year of targets for this strategy.

Page 5

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

Objectives/Commitments Objectives/Commitments Objectives/Commitments Objectives/Commitments Objectives/Commitments Outcomes/Achievements in 2022/23:
15,000
students		 joining our
groups by 2027 2022/23, against an in-year target of 9,000.
500 recognised student groups 342 student groups were recognised in 2022/23 against a target
by 2027. of 350, with 81% of students (NSS) satisfied with the range of
clubs and societies on offer.
The two societies fairs saw over 10,000 attendees, including over
1,300 attendees to the Medical Society (MedSoc) Fair hosted at
the Guild Building. for the first time.
Significant engagement
recorded in the Guild’s ‘Save a Society’ programme to build back
student groups after the pandemic.
80% satisfaction with the Guild 69% of students surveyed were
satisfied
with the range of
and ourActivities by 2027. activities on offer at the Guild of Students, against an in-year
target of 70%.
88% student satisfaction
at Student Activities
events and fairs at WelcomeWeek 2022,
15,000 recorded attendees to the Guild’s events as part of UoBE
Festival in January 2023, compared to approximately 11,000 in
2022. A range
of student groups
took
part
in
the
festival:
showcasing
performances.
Overall
satisfaction
with
Guild-led
events at the festival was 88%.
5,000 student volunteers via the 4,631 recorded student volunteers across all Guild departments
Guild by 2027. in 2022/23, against an in-year target of4,000.
Student Volunteering Week ran in February 2023. The purpose
of the week was to engage 400 student volunteers in community
volunteering and showcase the volunteering opportunities on
offer at the Guild.
The annual ‘Guild Awards’ event was successfully delivered with
171 nominations for student volunteers across 8 awards, up from
107 nominations
in 2022. 84% of attendees were satisfied with
the Awards event, up by9% from 2022.
10,000 voter turn-out in Officer 6,190 student voters in the Officers Elections in 2023, with 6,694
Elections, by 2027. total votes cast across three officer elections
in 2022/23. 145
candidates stood for election across the year, against a target of
100.
70% say the
represents		 Guild
their		 effectively 63.2% of students in the 2023 National Student Survey (NSS)
academic
interests by 2027. interests’, against a Year 1 target of 55%.
i OO
oe

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University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

|70%||say
we|represent|represent|represent|and |47% of students agreed when surveyed that the Guild effectively|and |47% of students agreed when surveyed that the Guild effectively|and |47% of students agreed when surveyed that the Guild effectively| |---|---|---|---|---|---|---|---|---| |provide them with||||a voice to||the | represents their views and provides them with a voice to the||| |University by 2027.||||||||University.| |||||||||Three
‘All Student Meetings’ were
held,
with a
total
of 248| |||||||||attendees across the year, and 2,279 All Student Votes cast in| |||||||||2022/23 for 24 new Idea and Policy submissions to the Guild’s| |||||||||Democratic structures.| |90%|of Student|||Reps|receive | 1,225 student reps were elected across all University Colleges, of|||| |quality||training||that|enables |which 869 completed
full student rep training (71%) for the|||| |timelyfeedback|feedback|||||||2022/23 academic year.| |||||||||97% of student reps attending training agreed that they were| |||||||||satisfied with the training received.| |70% agree they feel part of||||||the |83% of students are satisfied with the Community Wardens||| |community they|||live in by||2027.|||scheme.| |||||||||72% of students agreed that the Hall Reps event they had| |||||||||attended had a positive impact on their wellbeing, against an in-| |||||||||year target of55%.| |||||||||63%
of student’s surveyed agree that they feel
part of the| |||||||||community they live, against an in-year target of60%.| |||||||||2,263 welcome visits were conducted by staff and volunteers in| |||||||||the local community of Selly Oak, of which 279 reported issues| |||||||||which were subsequently addressed by the Community Wardens| |||||||||team.| |70%||in
UoB|accommodation |64%
of
students
agree
that
the
Guild
supports
their|||||| |agree
we
accommodation|||support
their |accommodation experience, when surveyed, against an in-year
experience,
by| target of60%.|||||| |2027.||||||||| |||||||||85% of student accommodation residents agreed that they were| |||||||||satisfied by the events and activities delivered by the Hall Reps| |||||||||scheme in their accommodation.| |70% say “the Guild is a|||||place|||| |52% of students when surveyed agree that the Guild is a place| |can get useful advice”||||||||that they can get useful advice, and 79% satisfaction among| |||||||||users of the Guild Advice service.| |||||||||1,131
students
were
supported
by the
Guild
Advice
team,| |||||||||including 241 appeals cases taken up with the University.| |A
continued
commitment
building stronger relationships|||||||to |Continued partnerships across a range of areas, including Cost
to | of Living work, Student Rep Scheme, Residence Life project,|| |improve partnership working.||||||||welcome Week,
Community Safety and
the
Student
Voice| |||||||||Report.| |||||||||Page7|

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

A longerterm (5 year) funding Moving
into year 2 of a 5-year financial
settlement with the
agreement with the University. University, following an uplift of an additional £4.5m over five
years.
Identification ofnew commercial
opportunities for the Guild. opening inWelcome Week 2023.
Investment and development into
the
Guild’s
IT
infrastructure,
including
transition
to
University’s
platforms
and		 the
an
upgrade to CCTV. building’s CCTV systems.
A capital development plan to Commenced planning work on a refresh of the Guild Reception
improve
the
space
provision
available
for
the
delivery
of
services, events and
student led activities. Created a new Systems Team in the organisation to spearhead
digital
improvements,
with
a
number
of systems
tested
for
implementation in 2023/24.
A
refreshed
People
Strategy
which
priorities the needs and
development
of
all employees,
by 2027
A
refreshed
People
Strategy
which
priorities the needs and
development
of
all employees,
by 2027 a good place to work.
Core staff, student staff and Committee members receive training
on the electronic training portal IHASCO with 11,500 courses
completed in 2022/23 including GDPR. Anti-Bribery, EDI & Fraud
Prevention.
An
EDI
plan
which
sets
ambitious
targets		 out
for
improvement
across		 the
organisation by 2027
83% of core staff and 84% of student staff say this organisation
values diversity.
We continued to hold the accreditation as a “Disability Confident”
employer, and 6 staff members took part in NUS’s Race Equity
Training programme.
We recorded an increase in core staff applicants who declared a
disability to 11%, compared to9% the previous year.
Effective delivery of the 44% of students agreed that they knew what the Guild did, with
Communications Strategy, which
focusses on what the Guild is, relevant.
who we are and what we do
We undertook a comprehensive external review of the Guild’s
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University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

communications work in June 2023, with recommendations for
operational changes to improve our communications offering to
students and stakeholders that was approved by Trustees.
Roll out of the Guild’s brand Bespoke new website hubs were created for the Grad
Ball,
across all services and activities
pantry; Period poverty, Welcome 2022; and Sustainability, the
latter helping the Guild to achieve its Green impact Assessment
award.
Over
14,800 followers
on
Instagram,
now the
major
social
channel, up from 13,700 in September 2022.
A pro-active approach to Health
& Safety across the organisation
100%
core
staff completion
of mandatory
Health &
Safety
training, and 90% of role-specific Health & Safety training by year
end.
Sustainable management ofthe
Guild building. efforts to educate staff on minimising energy usage, the Guild
achieved
an
impressive 19%
reduction
in energy usage
in
2022/23 compared
to the
previous
year,
against a targeted
reduction of 3%.
Over 1,000 bags of unwanted clothes were donated to charity,
raising over £15,000 for the British Heart Foundation.
Achieved SOS UK (formerly NUS) Excellent Award in the Green
Impactawardfor2023.

Other Key Achievements (2022/23 Academic Year)

Future Plans

During this period, the Guild launched our new five-year strategy for 2022 — 2027 encompassing three main themes; Engagement and Participation, Representation, and Community and Support. The strategy aims to increase student engagement, participation and diversity within our activities, provide a culture of support that enables students to thrive, and ensure the Guild can effectively represent Birmingham students on the issues that matter the most. The strategy is supported by six critical

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University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

enablers; namely Supportive Partnerships & Relationships, a Sound Financial Footing, People & Culture, Communications & Branding, Facilities and Investment in Infrastructure. These are outlined above.

In the delivery of the strategy, we are continuing to strive to give students an excellent student experience at Birmingham, with a greater focus on how we support postgraduate and international students. We are striving as an organisation to improve the quality of the student experience and services offered. The Trustee Board is closely monitoring progress against the Strategic Plan to respond and adjust resources as required to deliver for students.

Financial Review

Income and Expenditure

For 2022/23, the Guild reports Net Income of £844.8k compared to Net Income of £1.371m in 2021/22. However, results for both years are inflated compared to normal operations, but for different reasons.

For 2021/22, the annual adjustment to the estimated SUSS pension deficit contributed £614.4k towards Net Income due to a non-cash positive adjustment arising from a much-improved discount factor assumption, increasing from 1.24% in 2020/21 to 3.41% in 2021/22. The corresponding adjustment for 2022/23 is a non-cash charge of £241.9k. Whilst the discount factor applied for 2022/23 has also increased from 3.41% to 5.2%, the positive impact of this has been nullified by an extended repayment plan arising from the June 2022 triennial revaluation. Please refer to notes (21) and (31) for further information.

However, within 2022/23, the Guild received a refund from HMRC of £406.1k in relation to the VAT treatment of grant income that had been in dispute since early 2020. Further accrued income of £155.5k has also been recognised in relation to the same matter, whilst other accounting adjustments reduce this by £89.1k.

Total Income increased by £575k (8.5%) from £6.74m in 2021/22 to £7.32m in 2022/23, although this is directly attributable to the VAT refund highlighted above. However, there is a shift within the two main sources of gross income receivable. Grant income (donations) funding increased by net £480.6k (14.3%) to £3.848m due to the new block grant funding agreement introduced from the start of 2022/23 and consolidated for future years.

In contrast, the combined income generated from charitable activities and subsidiary trading totalled £2.815m, representing a decrease of £552.7k (16.4%) compared to £3.368m achieved in 2021/22. This is a result of challenging trading conditions, particularly for late night events, that were significantly impacted by increased competition, and a shift in student spending behaviours due to the ‘cost of living’ crisis. Total expenditure & charges increased by £1.101m (20.5%) from £5.369m in 2021/22 to £6.47m in 2022/23. However, £856.2k of this movement is directly attributable to the difference in annual pension deficit adjustments across the two-year period. Expenditure relating to charitable activities and raising funds increased by £245.2k (4.1%) to £6.229m. Direct expenditure reported for ‘Student Representation’, ‘Student Advice, Support & Community’ and ‘Student Development & Employability’ increased by a combined £147.3k (6.5%) to £2.423m, whilst a reduction to charitable trading activities resulted in a decrease to gross expenditure of £202.2k (13.2%) to £1.329m. As reported in note (9), support cost expenditure also increased by £276.3k (13%) to £2.403m. This increase was partly driven by an expansion to core staff numbers funded by improved block grant funding within Student Representation, Advice and Activities, the creation of a new digital systems resource and additional support within People & Administration. In addition, inflationary

Page 10

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

pressures have also increased core operating costs including utilities, contracts and general purchasing.

Credits, charges and transfers to both the unrestricted, restricted and designated reserves are reported in greater detail below in the Reserves Policy section and also in notes (22), (23) and (24).

Fixed Assets

As highlighted in note (14), the net book value of ‘Total Fixed Assets’ increased by £30.8k to £244.5k, with new purchases totalling £124.1k (2022: £64.5k) and depreciation charges amounting to £93.3k (2022: £111.9k). Sundry central building works totalling £73.1k were incurred in 2022/23 (2022: £18.0k) and included costs for the retail area, staircase improvements and development of a new catering outlet. Equipment purchases totalled £51.0k compared to £46.5k in 2021/22. Equipment purchases comprised of General IT hardware, multimedia upgrades to two committee rooms and bar venue equipment.

Net Current Assets & Cash-Flow

Total Net Current Assets increased by £745.0k from £2.632m brought forward to £3.377m for 2022/23. This movement consisted of an increase to current assets by £519.2k and a decrease to creditors due within one year by £225.8k.

As reported within the Statement of Cash Flows on page 23, total cash balances increased by £461.2k across the year to £3.743m held at year-end, whilst debtor and stock balances increased by net £58.0k. The increase to cash balances was largely attributable to a refund received from HMRC totalling £406.1k, in relation to a long-standing dispute regarding grant funding.

Within the cash balances of £3.743m held at year-end, it is important to highlight that £550.1k (2022: £567.4k) consisted of student group balances, including £362.5k Guild societies and sports clubs, £133.1k Medsoc funds and £54.5k University sports club custodian funds. The latter custodian funds are reported as creditors to the Guild whilst the Guild’s student groups are reported as designated funds (see note (24)).

Creditors due within one year have decreased by £225.8k to £931.3k at 31 July 2023 compared to the previous year. This mainly consists of a decrease to ‘trade creditors’ by £101.9k and a decrease to accruals by £118.7k, reporting a combined decrease of £220.6k. All other shorter-term creditor balances decreased by net £5.2k.

Further detail regarding movements to stock, debtor and creditor balances is reported in notes (16), (17) and (19).

Provision for Liabilities and Net Liabilities

Since 2015/16 (and restated for 2014/15), the Guild has been required to adopt Financial Reporting Standard 102 (FRS102). Under FRS102, a contractual agreement under a multi-employer defined benefit pension scheme to fund a past deficit should be accrued for as a liability discounted to net present value.

As highlighted in note (21), during the year the total liability provision is estimated to have decreased by £54.2k from £4.155m recorded as at 31 July 2022 to £4.101m calculated as at 31 July 2023. The £4.101m liability is split between creditors falling due within one year (£310.9k) and the longer-term provision (£3.790m).

The £54.2k estimated decrease arises from repayments within the year totalling £296.1k and a net charge of £241.9k arising from two further adjustments. As a result of the June 2022 triennial revaluation, the repayment plan has been extended from August 2035 to May 2037 increasing the estimated cost of the deficit. This adjustment has been partially offset by an improved discount factor

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University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

assumption, increasing from 3.41% as at the 2021/22 year-end, to 5.2% assumed as at 31° July 2023. The revised discount factor better reflects current market conditions forecast for investments over the next fourteen-year period.

Custodian Funds

University of Birmingham Sports Clubs who hold a ‘social’ account with the Guild are classified as Custodian Funds held on behalf of University of Birmingham and are treated as Creditors. At yearend, the closing balance of funds held on behalf of AU Sports Clubs was £54.9k compared to a closing balance of £50.9k held at the end of 2021/22, an increase of £4.0k. Guild Services Ltd As highlighted in note (15), Guild Services Ltd is a wholly owned trading subsidiary of the parent charity, University of Birmingham Guild of Students. Guild Services Ltd engages in trading activities not directly associated with the charitable objects of the parent charity for the purposes of generating income that is donated back to the parent charity to fund charitable activities. During the year, Guild Services Ltd engaged in marketing and sponsorship activities including activities linked to the Birmingham 2022 Commonwealth Games.

For 2022/23, Guild Services Ltd generated income of £119.5k (2022: £125.7k) and incurred costs of £108.1k (2022: £88.6k). At 31 July 2023, a gift-aid payment of £11.4k (2022: £37.1k) is due to be made from Guild Services Ltd to University of Birmingham Guild of Students.

Future Finances

The budget for 2023/24 financial year was approved by the Guild’s Trustee Board in May 2023. This reports Net Income of £220.2k for the year. After allocating budgeted expenditure and charges to both restricted and designated reserves of £146.5k, and accounting for pension deficit repayments of £310.9k, free unrestricted reserves are budgeted to increase by £55.8k. In March 2022, the Guild successfully agreed a longer-term funding position with University of Birmingham securing improved block grant funding for the five-year period 2022/23 to 2026/27. The annual block grant for 2023/24 will be £3.863m including an additional £202.4k towards delivery of the strategic plan. This will also be supplemented by estimated additional grant funding of £901.4k to fund Student Mentors, Community Wardens and Hall Reps activities. Further growth is incorporated into the block grant to 2026/27.

The 2023/24 budget assumes an improved performance from trading activities in comparison to a challenging year in 2022/23, although below the strong results achieved in the previous year, 2021/22. This area represents a key risk in delivering the Guild’s budget and performance will be reviewed midway through the first semester. An improvement plan was presented to Finance Committee in August 2023 and recommendations have been actioned for the start of trading in late September. In addition, a new catering outlet is also scheduled to open in early 2022/23 that was not included within the 2023/24 approved budget.

The Guild has budgeted for capital expenditure of £385.3k, including a £250k investment to refurbish the Reception space and as a result, the budget assumes a net decrease to cash balances of £174.2k.

The Guild updated its financial five-year plan/forecast in May 2023 based upon continuing pressures arising from both cost of living/inflationary increases and lower contributions from trading operations and this will be reviewed again by trustees in December 2023.

Page 12

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

Investment Policy

In accordance with the Guild’s Investment Policy, the primary objective is to continue to invest surplus cash to best advantage with minimum risk, although it is anticipated that the Guild will be able to generate greater returns in future years through implementation of the policy. During the year, the Guild has taken a prudent stance, with funds being deposited with high street banks. Investment returns in the year reflect the stated policy.

Remuneration Policy

The Guild's existing pay-scale was introduced from the start of 2018/19 and has been adjusted annually by approved cost of living increases for the four years 2019/20 to 2022/23. Annual cost of living/inflationary increases are applied to the scale after taking account of general economic conditions, funding, affordability and benchmarking against similar organisations. In response to the ‘cost of living crisis’, the Guild applied increases ranging from 3.0% to 6.0% for 2022/223 and has applied the same increases for next financial year 2023/24. The Guild also commissioned an external review of pay and benefits in April 2023 and the results of this will be considered by HR Committee in September 2023 following a presentation of initial findings and recommendations in June 2023. The review has included a comprehensive benchmarking analysis of the Guild's pay and benefits offer in comparison to the Students Union sector as well as consideration of both the local and wider job market. It is anticipated that a revised pay scale for 2023/24 will be introduced during the year.

The Guild operates the Local Authority Employers Job Evaluation scheme. All new posts are evaluated prior to recruitment and all current job roles are also evaluated periodically either as they become vacant or when variations to responsibility levels are made to roles. The Board commissioned an external consultant to undertake a benchmark review using Job Evaluation of the CEO’s remuneration during 2017/18 and the report was subsequently approved by HR Committee. In addition, staff are able to increment within a pay-scale grade on an annual basis in line with standard organisational policies and subject to outcomes measured in an employee’s annual Development & Performance Review. The full-time Officer Team elected annually are paid against a specific pay-scale grade/point. With reference to student staff positions, from 1st August 2023, the basic hourly rate of pay now tracks against National Living Wage for all student staff, regardless of age. This increase from the previously used National Minimum Wage (NMW) (21-22 rate) was approved by the Trustee Board in July 2023 and was also a recommendation made within the external review highlighted above.

This change is in response to the motion passed by an ‘All Student Vote’ in December 2022, mandating the Guild to achieve ‘Real Living Wage (RLW)’ accreditation within five years of the motion. The increase applied is considered as ‘step one’ in a phased approach to achieving RLW accreditation. The basic rate increase payable from 1% August 2023 represents a 13.5% uplift compared to rates of pay in place in December 2022 when the motion was passed, of which 10,9% was implemented in April 2023 in line with regulatory adjustments to NMW. At the time of writing, the step increase has closed one third of the pay gap, with further adjustments required during 2023/24.

The Guild also pays an enhanced hourly rate for student senior assistants. Student staff hourly rates of pay are adjusted in April each year in line with government announcements whilst core staff payscales are linked to the financial year.

Page 13

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

Going Concern

The trustees believe the charity and group remain in a position to continue operating and have the capacity to meet all liabilities as they fall due. The Balance Sheet records Net Liabilities of £168.9k as at 31st July 2023 although this is due to a pension deficit liability, payable over a fourteen-year period to 1% May 2037. This position has improved by £2.216m across the two-year period 2021/22 and 2022/23 compared to Net Liabilities of £2.385m reported as at 31% July 2021. The Guild benefits from significant annual grant funding from University of Birmingham and this funding is reviewed regularly, with a fiveyear funding agreement in place for the period 2022/23 — 2026/27. A more detailed statement regarding the Guild’s Going Concern status is reported within the Accounting Policies section on page 22.

Reserves Policy

At 31 July 2023, the Guild’s free reserves (being general funds excluding that represented by fixed assets and the longer term SUSS pension deficit) stood at £1.505m (2022: £1.237m). After taking account of general funds including fixed assets, but excluding the longer term SUSS pension deficit, total unrestricted reserves stood at £1.718m (2022: £1.444m) (as shown in note (25)). This is in line with the minimum £1m unrestricted funds target reported within the Guild’s current Reserves Policy.

For 2022/23, the Guild has designated £49.3k to the IT Strategy Fund to support future capital and revenue costs that will arise as the Guild’s IT infrastructure and support is fully transitioned to University IT Services. University of Birmingham has invested circa £1.9m to deliver the transition during 2022/23 with the project almost complete.

Historical designated reserves held to fund the IT Strategy implementation costs are eroded as assets are depreciated. By 31 July 2023, the Guild had completed implementation of the original IT Strategy with assets continuing to depreciate, whilst further investment is planned from the reserve during 2023/24.

The designated reserve for the next significant building project (550k) remains unchanged for 2022/23. However, £250k is allocated towards a refurbishment of the Reception space during 2023/24 with the remaining £300k likely to be spent in 2024/25.

In addition to the IT Strategy designation highlighted above, a further £100k has been designated at the end of 2022/23 to help accelerate delivery of the wider 2022-2027 strategic plan, with particular focus on the growth in students studying in other locations.

As a result of recognition of the Guild’s SUSS pension deficit arising from FRS102 implementation in 2015/16, a negative unrestricted pension fund balance of £4.101m is recognised as at 31 July 23. Refer to the accounting policies section and note (21).

Auditors

Dains Audit Limited has indicated its willingness to continue in office and will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006.

Statement as to Disclosure of Information to Auditors

The members of the Trustee Board who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. Each of the Trustee Board members have confirmed that they have taken all the steps that they ought to have taken as Trustee Board members in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Page 14

University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD

Small Company Provisions

The report of the Trustee Board has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption provided by Part 15 and Section 414B(b) of the Companies Act 2006.

On behalf of the Trustee Board

Robert Smeath Chair of Trustee Board

Date: 23'¢ October 2023

Page 15

University of Birmingham Guild of Students TRUSTEES RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The trustees (who are also directors of University of Birmingham Guild of Students for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 (October 2018), ‘the Financial Reporting Standard applicable in the UK and Republic of Ireland’. Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

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

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

Page 16

University of Birmingham Guild of Students INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF BIRMINGHAM GUILD OF STUDENTS

Opinion

We have audited the financial statements of University of Birmingham Guild of Students (the ‘Parent Charity’) and its subsidiary (the ‘Group’) for the year ended 31 July 2023, which comprise the Consolidated Statement of Financial Activities, the Consolidated and Company Balance Sheets, the Consolidated 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 applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent Charity in 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 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 Group and Parent Charity'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.

Page 17

University of Birmingham Guild of Students INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF BIRMINGHAM GUILD OF STUDENTS

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Charity 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 matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 16, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group and Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charity or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 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 (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.

Page 18

University of Birmingham Guild of Students INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF BIRMINGHAM GUILD OF STUDENTS

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Group and Parent Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Page 19

University of Birmingham Guild of Students INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF BIRMINGHAM GUILD OF STUDENTS

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 Auditors' Report.

Use of our report

This report is made solely to the Group and Parent Charity’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 charity’s members those matters we are required to state to them in an Auditors’ 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 charity and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

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Mark Gurney FCCA (Senior Statutory Auditor)

For and on behalf of Dains Audit Limited

Statutory Auditor Chartered Accountants

Birmingham Date:

Page 20

University of Birmingham Guild of Students CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) For the year ended 31 July 2023

Note Unrestricted Designated Restricted Total Total
Funds Funds Funds 2023 2022
£ £ £ e £
INCOME
Donations 2 3,498,908 - 349,558 3,848,466 3,367,836
Income from charitable
activities 3 1,581,403 709,849 404,993 2,696,245 3,242,802
Income from other trading
activities 4 119,489 - - 119,489 125,678
Investment income 5 44,339 - - 44,339 3,851
Other Income 6 606,642 - - 606,642 -
TOTAL INCOME 5,850,781 709,849 754,551 7,315,181 6,740,167
EXPENDITURE
Expenditure on raising funds 7 217,898 - 2,072 219,970 195,410
Expenditure on charitable
activities 8 4,551,067 702,680 754,834 6,008,581 5,787,988
Pension Deficit charge/(credit) 21 241,874 - - 241,874 (614,354)
TOTAL EXPENDITURE 5,010,839 702,680 756,906 6,470,425 5,369,044
NET INCOME/
(EXPENDITURE) 839,942 7,169 (2,355) 844,756 1,371,123
Transfers between funds 22-24 (496,957) 146,887 350,070 - -
NET MOVEMENT IN FUNDS 342,985 154,056 347,715 844,756 1,371,123
Reconciliation of Funds
Total funds bought forward (2,415,428) 1,237,607 164,128 (1,013,693) (2,384,816)
TOTAL
FUNDS’		 CARRIED
FORWARD (2,072,443) 1,391,663 511,843 (168,937) (1,013,693)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31 July 2022 is reported in note (1).

The accounting policies and notes on pages 24 to 48 form an integral part of these financial statements.

Page 21

University of Birmingham Guild of Students CONSOLIDATED AND COMPANY BALANCE SHEETS As at 31 July 2023 Company

Company registration number: 06638759

Group Group Guild Guild
Note 2023 2022 2023 2022
£ £ £ £
FIXED ASSETS
Tangible assets 14 244,483 213,664 244,483 213,664
Investments ‘1D - - 25,000 25,000
244,483 213,664 269,483 238,664
CURRENT ASSETS
Stocks 16 33,329 38,517 33,329 38,517
Debtors 17 531,470 468,328 606,361 525,396
Investments 18 2,541,837 928,872 2,541,837 928,872
Cash at bank and in hand 1,201,271 2,353,020 1,047,257 2,213,960
4,307,907 3,788,737 4,228,784 3,706,745
CREDITORS: Amounts falling due
within one year 19 (931,292) (1,157,075) (926,314) (1,149,228)
NET CURRENT ASSETS 3,376,615 2,631,662 3,302,470 2,557,517
Provisions
for		 Liabilities: SUSS 21 (3,790,035) (3,859,019) (3,790,035) (3,859,019)
Pension Deficit
NET LIABILITIES 25 (168,937) (1,013,693) (218,082) (1,062,838)
FUNDS
Restricted funds 23 511,843 164,128 511,843 164,128
- Unrestricted - General 22 2,028,450 1,739,651 1,979,305 1,690,506
- Unrestricted - Pension 21/22 (4,100,893) (4,155,079) (4,100,893) (4,155,079)
- Designated 24 1,391,663 1,237,607 1,391,663 1,237,607
(168,937) (1,013,693) (218,082) (1,062,838)

The financial statements were approved by the Trustee Board and authorised for issue on 23 October 2023 and signed on their behalf by:

These accounts are prepared in accordance with the special provisions relating to companies’ subject to the small companies’ regime within Part 15 of the Companies Act 2006. Net Income for the parent company for the year 2022/23 is £844,756 (2021/22: £1,371,123).

Robert Smeath Chair of Trustee Board

The accounting policies and notes on pages 24 to 48 form an integral part of these financial statements.

Page 22

University of Birmingham Guild of Students CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 July 2023

2023 2022
£ £
Net cash generated from operating activities 540,982 1,449,373
Cash flows from investing activities
Interest received 44,339 3,851
Purchase oftangible fixed assets (124,105) (64,541)
Net cash used in investing activities (79,766) (60,690)
Net Increase in cash & cash equivalents in the year 461,216 1,388,683
Cash & cash equivalent at the beginning ofthe year 3,281,892 1,893,209
Total cash & cash equivalents at the end ofthe year 3,743,108 3,281,892
Reconciliation of net movement in funds (operating surplus) to net
cash generated from/(used in) operating activities 2023 2022
£ £
Operating Surplus 844,756 1,371,123
Depreciation 93,286 111,948
Interest received (44,339) (3,851)
Decrease/(Increase) in stocks 5,188 (21,837)
(Increase)/Decrease in debtors (63,142) 569,725
Decrease in creditors & pension liability provision (294,767) (577,735)
Net cash generated from operating activities 540,982 1,449,373
Analysis ofchanges in net funds At 1 August At 31 July
2022 Cash flow 2023
£ £ £
Short term investment 928,872 1,612,965 2,541 ,837
Cash in hand and at bank 2,353,020 (1,151,749) 1,201,271
3,281,892 461,216 3,743,108

The cash balance of £3.743m includes £550.1k (2022: £567.4k) cash relating to student groups consisting of £362.5k Guild societies and sports clubs, £133.1k Medsoc funds and £54.5k University sports club custodian funds (see notes (19), (23) and (24)).

Page 23

University of Birmingham Guild of Students ACCOUNTING POLICIES

BASIS OF ACCOUNTING

The financial statements have been prepared in accordance with 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 (FRS102) — (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

University of Birmingham Guild of Students meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

JUDGEMENTS AND ESTIMATIONS

Management has not made any significant judgements and estimations in the process of applying the accounting policies except for the revised estimation of the SUSS pension liability as detailed below within accounting policies (pensions) and within note (21).

Pension deficit estimations included within the 2022/23 financial statements are based upon the latest information available following the actuarial revaluation conducted as at 30 June 2022 and communicated to the Guild in March 2023.

FINANCIAL INSTRUMENTS

The group 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.

GOING CONCERN

Since 2015/16 (and restated for 2014/15), the Guild has been required to report estimated future repayments into the SUSS pension deficit discounted to a net present value. This resulted in the Guild reporting a net liability position within the Balance Sheet of £1.014m brought forward as at 1 August 2022. For 2022/23, the Guild reports Net Income of £844.8k reducing the Balance Sheet net liability position to £168.9k as at 31 July 2023.

However, the SUSS pension liability is repayable on an incremental basis over a fourteen-year period to 1 May 2037 and there is no reason to believe the Guild cannot meet its annual commitments to repay the liability. Actuarial revaluations will take place every three years and the pension deficit will decrease as the Guild makes payments up to May 2037.

The trustees have prepared detailed budgetary and cash flow information for the financial year 2023/24 and robust financial & cash flow forecasts are also prepared for the five-year period to 31 July 2028. This enables trustees to plan effectively for financial issues and capital investments during the planning period and this is reviewed, updated and extended by one year annually. In addition, the Guild regularly reviews actual financial performance against budgeted performance and makes decisions regularly to manage the position.

The Guild benefits from significant annual grant funding from University of Birmingham and this funding is reviewed regularly by both Guild and University representatives. In March 2022, the Guild and University approved a five-year funding agreement for the period 2022/23 — 2026/27 following a detailed review process conducted during 2019/20, 2020/21 and 2021/22. This has resulted in an increase to block grant funding over the next five-year period to 2026/27.

The block grant for 2023/24 is budgeted to be £3.863m, representing an increase of £301.1k compared to 2022/23 and this will also grow incrementally each year to 2026/27. This excludes additional funding receivable to deliver core services such as the Student Mentor Scheme, Wardens Scheme and Hall

Page 24

University of Birmingham Guild of Students ACCOUNTING POLICIES

Reps. The trustees have no reason to believe that at least equivalent level of funding will not continue in future years.

Furthermore, the Guild currently benefits from significant cash resources of £3.743m contributing to total current assets of £4.308m as at 31 July 2023 and much lower short-term creditors of £933.1k. This enables the Guild to report net current assets of £3.375m as at 31 July 2023.

The Guild is actively trying to manage the economic difficulties arising from the current ‘cost of living’ crisis to minimise the negative financial impact as best possible. The Guild will continue to monitor value for money and review opportunities to make efficiency savings, as well as protect and grow contributions from trading operations.

On the basis of this information, the trustees believe the charity and group remain in a position to continue operating and have the capacity to meet all liabilities as they fall due.

BASIS OF CONSOLIDATION

The financial statements consolidate the results, assets and liabilities of the University of Birmingham Guild of Students and trading subsidiary, Guild Services Limited on a line by line basis. The University of Birmingham Guild of Students is the sole Corporate Director of Guild Services Limited and all shares are owned by the Company Limited by Guarantee. In accordance with FRS102 — Consolidated and separate financial statements — Guild Services Limited is considered to be under the control of the Guild. In addition, advantage has been taken of the FRS102 exemption from disclosure of certain intra group transactions.

A separate statement of financial activities and income and expenditure account are not presented for the charity itself following the exemptions afforded by section 408 of the Companies Act 2006 and the SORP.

FIXED ASSETS and DEPRECIATION

Fixed assets are stated at cost less accumulated depreciation. The cost of minor additions or those costing below £500 are not capitalised.

Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:

Central and building services - over 2 to 10 years Equipment - over 2 to 5 years

‘Central/building services’ capital investment and depreciation only relates to refurbishments works undertaken within the building, and do not include the physical building which is owned by University of Birmingham and leased to the Guild.

STOCKS

Stocks are valued at the lower of cost and net realisable value. Provision is made for obsolete and slow-moving items. Stock is recognised on a first in, first out basis.

INCOME

The Guild receives donations in the form of a block grant from the University and this is credited to the financial statements in respect of the period to which each grant relates.

Donations including grants receivable and other voluntary income are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Page 25

University of Birmingham Guild of Students ACCOUNTING POLICIES

Income from the sale of goods is recognised within income from charitable activities when all of the following conditions are satisfied:

Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions or relates to primary purpose charitable trading. Such income is recognised as earned (as the related goods or services are provided). Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income from other trading activities relates to the sale of marketing services and franchise agreements and is recognised in the period the activities relate to on a receivable basis.

Investment income is recognised on a receivable basis.

All income arose within the United Kingdom.

EXPENDITURE

Expenditure is recognised whena liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable.

LEASED ASSETS

All leases are operating leases and the annual rentals are charged to expenditure on a straight-line basis over the lease term.

PENSION COSTS

The Guild participates in the Students’ Union Superannuation Scheme (SUSS), a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the Trustees on the advice of the actuary.

Whilst the scheme operates as a pooled arrangement, under FRS102, a contractual agreement under a multi-employer defined benefit pension scheme to fund a past deficit should be accrued for as a liability discounted to net present value. As at 31 July 2023, the liability to the Guild was calculated as amounting to £4,100,893 (2022: £4,155,079).

Page 26

University of Birmingham Guild of Students ACCOUNTING POLICIES

The Guild also participates in both the National Union of Students Pension Scheme (NUSPS) and government NEST scheme. Both NUSPS and NEST are defined contribution schemes and are accounted for under the terms of FRS102 based upon actual contributions paid during the year.

INVESTMENTS

Investments are stated at the original investment value. The Trustee Board value the 100% shareholding in the trading subsidiary, at its original investment value. Short term investments relate to money market investments.

FUNDS STRUCTURE

The Guild has a number of restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose.

All other funds are unrestricted income funds. The Trustees intend to use part of the unrestricted funds to finance building refurbishment plans and have set up a designated fund to reflect this.

TAXATION

The University of Birmingham Guild of Students is a registered charity and is exempt from incurring taxation on its charitable activities.

Page 27

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

1 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDING 31 JULY 2022

Note Unrestricted Designated Restricted Total
Funds Funds Funds 2022
£ £ £ E
INCOME
Donations 2 3,009,734 - 358,102 3,367,836
Income from charitable
activities 3 2,041,481 810,541 390,780 3,242,802
Income from other trading
activities
Investment income		 4
5		 125,678
3,851		 -
-		 -
-		 125,678
3,851
Other Income 6 - - - -
TOTAL INCOME 5,180,744 810,541 748,882 6,740,167
EXPENDITURE
Expenditure on raising funds 7 194,923 - 487 195,410
Expenditure on charitable
activities 8 4,296,910 766,957 724,121 5,787,988
Pension Deficit credit (614,354) - - (614,354)
TOTAL EXPENDITURE 3,877,479 766,957 724,608 5,369,044
NET INCOME/
(EXPENDITURE) 1,303,265 43,584 24,274 1,371,123
Transfers between funds (85,876) 85,876 - -
NETMOVEMENTINFUNDS 1,217,389 129,460 24,274 1,371,123

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 28

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

2 DONATIONS Unrestricted Designated Restricted Total Total
Funds Funds Funds 2023 2022
£ £ Fe £ £
Grants receivable
University
- Block grant 3,343,968 - - 3,343,968 2,727,004
- Other 154,940 - - 154,940 282,730
- Hall Reps - - 349,558 349,558 358,102
3,498,908 - 349,558 3,848,466 3,367,836
3 INCOME FROM Unrestricted Designated Restricted Total Total
CHARITABLE Funds Funds Funds 2023 2022
ACTIVITIES £ ES £ E £
Student Representation (3) - - (3) 938
Student Advice, Support &
Community - - 404,473 404,473 382,430
Student Activities &
Employability (Incl. Student 8,817 709,849 520 719,186 825,129
Groups)
Charitable Trading 1,572,589 - - 1,572,589 2,034,305
1,581,403 709,849 404,993 2,696,245 3,242,802
4 INCOME FROM OTHER Unrestricted Designated Restricted Total Total
TRADING ACTIVITIES Funds Funds Funds 2023 2022
£ £ £ E £
External trading income 119,489 - - 119,489 125,678
119,489 - - 119,489 125,678

Page 29

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

5 INVESTMENT INCOME Unrestricted Designated Restricted Total Total
Funds Funds Funds 2023 2022
£ 5a £ E x
Bank interest receivable 44,339 - - 44,339 3,851
6 OTHER INCOME Unrestricted Designated Restricted Total Total
Funds Funds Funds 2023 2022
£ £ z £ £
HMRC Reclaims 606,642 - - 606,642 -
606,642 - - 606,642 -

During the year, the Guild settled an ongoing VAT dispute with HMRC which has resulted in net income of £606,642. £451,113 was received during the year whilst £155,529 is reported as a debtor balance.

7 EXPENDITURE ON Unrestricted Designated Restricted Total Total
RAISING FUNDS Funds Funds Funds 2023 2022
£ £ £ £ £
External trading costs 27,373 - - 27,373 25,398
27,373 - - 27,13 25,398
Support Costs (Note 9) 190,525 ~ 2,072 192,597 170,012
217,898 - 2,072 219,970 195,410

Page 30

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

8 EXPENDITURE ON Unrestricted Designated Restricted Total Total
CHARITABLE ACTIVITIES Funds Funds Funds 2023 2022
£ £ £ £ 3
Student Representation:
Direct costs
OfficerTeam 233,273 - - 233,273 227,150
Student Voice 265,249 - - 265,249 210,160
Support costs (note 9) 350,407 - 1,448 351,855 305,443
848,929 - 1,448 850,377 742,753
Student Advice, Support
& Community:
Direct costs
Advice 129,615 - - 129,615 96,770
Not On Ambassadors 12,728 - - 12,728 11,032
Mentor Scheme . - 238,698 238,698 228,624
CommunityWardens - - 112,413 112,413 89,542
Support costs (note 9) 211,732 - 54,796 266,528 230,729
354,075 - 405,907 759,982 656,697
Student Activities &
Employability:
Direct costs
Student Groups Dept, Hall
Reps & Student Groups 448,919 702,680 279,750 1,431,349 1,412,703
Support costs (note 9) 837,896 - 64,880 902,776 787,105
1,286,815 702,680 344,630 2,334,125 2,199,808
Charitable trading:
Direct costs 1,329,273 - - 1,329,273 1,531,446
Support costs (note 9) 541,594 - 2,825 544,419 496,413
1,870,867 - 2,825 1,873,692 2,027,859

Page 31

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

8 EXPENDITURE ON Unrestricted Designated Restricted Total Total
CHARITABLE Funds Funds Funds 2023 2022
ACTIVITIES —-RESTATED £ £ £ 25 £
(CONTINUED)
Governance Costs
Audit Fees 10,500 - - 10,500 10,000
Legal/Professional Fees 12,791 - - 12,791 5,122
Other direct costs 22,419 - - 22,419 8,872
Support costs (note 9) 144,671 - 24 144,695 136,877
190,381 - 24 190,405 160,871
Total Expenditure on
CharitableActivities 4,551,067 702,680 754,834 6,008,581 5,787,988

Page 32

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University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

10 REMUNERATION OF SABBATICAL OFFICERS

Gross salary payments and employer pension contributions made during the year to Sabbatical Officers totalled £165.5k in 2022/23 compared to £161.2k in 2021/22. The breakdown is as follows:

2023 2022
ra £
Sabbatical Officers - Trustee status
Gross salary payments 161,885 158,716
Employers pension costs 3,589 2,524
Total Sabbatical Officer Remuneration 165,474 161,240
Other Trustee Remuneration (Student Staff) 2,385 2,413
TotalTrusteeRemuneration 167,859 163,653

The trustee status of the Sabbatical Officer teams has remained at 7 posts since 2019/20.

During the financial year, the 2022/23 Sabbatical Officer Team were in post for the period 1 August 2022 — 14 July 2023. The 2023/24 Sabbatical Officer Team started their induction on 26 June 2023 and formally took office from 17 July 2023.

In 2022/23 financial year, the following trustees received remuneration:

2022/23 Team — A Matthews, V Chigariro, F Craddock, R Isaacs Smith, | Lawson, T Liu & B Lockley.

2023/24 Team — A Campbell, H Brooks, C Hardiman, J Hill, T Liu, B Lockley & D Turner.

In 2021/22 financial year, the following trustees received remuneration:

2021/22 Team — M Brown, WL Chen, G Christian, J Conway, D Murinas, A Simms & J Singh. 2022/23 Team — A Matthews, V Chigariro, F Craddock, R Isaacs Smith, | Lawson, T Liu & B Lockley.

For 2022/23 and 2021/22, one Student Trustee (Miss Serabi Opiyo) also worked part-time as a member of the Guild’s student staff team. This cost is also reflected above.

No remuneration was paid to any other trustees.

Page 34

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

11 TRUSTEE BOARD AND SABBATICAL OFFICER TEAM PERSONAL EXPENSES

Five external members of the Guild’s Trustee Board were reimbursed for travel, totalling £672 within the year (2022 — One external - £465). For 2022/23, this expenditure is reported within Governance Costs, shown in note (8).

In addition, the 2022/23 Sabbatical Officer Team were reimbursed a total of £2,660 (2022: £1,267) in respect of personal travel and subsistence expenses, in accordance with their role as elected Sabbatical Officers.

Similarly, seven 2023/24 Sabbatical Officer trustees were reimbursed £303 (2022: £292 - 6 Officers) as part of the election process and during office towards the end of the financial year. These costs are included within the total costs of Student Representation and are recorded within the costs of charitable activities in note (8).

For 2022/23 and 2021/22, a number of external trustees did not claim travel expenses to attend board meetings and personally chose to waive their expenses. The value of these expenses is unknown. During 2022/23 and 2021/22, all sub-committee meetings were conducted online.

The Guild of Students also incurred costs of £5,586 (2022: £5,152) within the year relating to Professional Indemnity insurance cover of £5m (2022: also £5m). This policy included cover for the trustees, directors, officers, employees, student group committee members as well as other volunteers associated with Guild activities. A proportion of this cost has been allocated as a Governance Cost, reported in note (8).

12 STAFF COSTS

STAFF COSTS 2023 2022
Number Number
The average weekly number of persons employed, excluding
the Officer Team and Trustee Board shown in notes (9) and
(10), during the yearwas as follows:
Permanent Staff (average/ full time equivalent) 78/72 72
Student Staff (average/ full time equivalent) 250 /40 273 /40
328/112 345
/ 107
2023 2022
z £
The aggregate
payroll		 costs of these persons were as
follows:
Wages & Salaries 2,829,053 2,559,170
Social security costs 201,775 180,152
Pension costs — contributions within year 80,683 70,776
Pension deficit - credit 241,874 (614,354)
3,353,385 2,195,744

Page 35

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

The following number of employees received remuneration 2023 2022
above £60,000 within the year: Number Number
£60,000 - £69,999 2 -
£70,000 - £79,999 - -
£80,000 - £89,999 - -
£90,000 - £99,999 1 4
3 4

Key management personnel are considered to be the Guild’s Senior Management Team reported on page 2. This consists of the Chief Executive and four Director positions. Gross salary costs including employer pension contributions totalled £318.7k for 2022/23, compared to £327.2k for 2021/22. During 2022/23, the Guild accounted for a termination payment totalling £10,471 to one employee (2022 — £14,856/one employee). Statutory payments totalled £10,471 (2022 - £14,856) whilst non-statutory payments were nil for both 2022/23 and 2021/22.

13

NET MOVEMENT IN FUNDS 2023 2022
£ £
Is stated after charging:
Auditors remuneration:
- audit services 10,500 10,000
- other services 3,075 2,950
13;575 12,950
Depreciation:
- owned assets 93,286 111,948
Operating lease rentals:
- plant and machinery 4,496 10,900
- land and buildings 133,445 133,446
137,941 144,346

Page 36

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

14 TANGIBLE FIXED ASSETS Central
Building
Refurbs Equipment Total
GROUP & GUILD £ £ £
Cost:
At 1 August 2022 2,646,759 1,723,152 4,369,911
Additions
Disposals		 73,118
-		 50,987
-		 124,105
-
At 31 July 2023 2,119,877 1,774,139 4,494,016
Depreciation:
At1August2022 2,513,081 1,643,166 4,156,247
Charge for the year 52,526 40,760 93,286
Disposals - - -
At 31 July 2023 2,565,607 1,683,926 4,249,533
Net book value:
At 31 July 2023 154,270 90,213 244,483
At31July2022 133,678 79,986 213,664

Page 37

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

15 INVESTMENTS Group
pe		 Guild
£
Cost:
At1August2022 - 25,000
At 31 July 2023 - 25,000
Net book value:
At1August2022 - 25,000
At31July2023 - 25,000

An analysis of the above investments is set out below. At 31 July 2023 the Guild held investments in the following companies which are incorporated in the United Kingdom:

Name of Company Main Trading Activity Equity Held Guild Services Limited — Provision of external marketing services 100%

The registered address of Guild Services Ltd is C/O Guild of Students, Edgbaston Park Road, Birmingham, B15 2TU.

UNLISTED INVESTMENTS Unlisted Investment in
investments subsidiary Total
£ £ 7
Cost
At 1 August 2022 - 25,000 25,000
At 31 July 2023 - 25,000 25,000
Net book value
At 1 August 2022 - 25,000 25,000
At31July2023 - 25,000 25,000

Page 38

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

15 INVESTMENTS (continued)

The
results and		 assets of Guild Services Limited are as
follows: 2023 2022
£ £
Turnover 119,489 125,678
Operating profit 11,420 37,128
Interest receivable - -
Taxation a %
Donation under Gift aid distribution (11,420) (37,128)
Profit/(Loss) for the year) - -
Netcurrentassets andshareholders’ funds 74,145 74,145

Guild Services Limited is a registered company in England and Wales under number 2080761.

For the year ended 31 July 2023, Guild Services Limited was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies and its members have not required the company to obtain an audit of its financial statements for the year in question in accordance with Section 476.

16 STOCKS Group Guild
2023 2022 2023 2022
£ £ £ £
Bars 31,521 37,104 31,521 37,104
Catering — combined outlets 1,808 1,413 1,808 1,413
33,329 38,517 33,329 38,517

Page 39

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

17 Group Guild
DEBTORS: Amounts falling 2023 2022 2023 2022
due
after
more
than		 one 2 £ 2 £
year
Prepayments (General) 6,850 6,739 6,850 6,739
6,850 6,739 6,850 6,739
Group Guild
DEBTORS: Amounts falling 2023 2022 2023 2022
due within one year E £ ie £
Trade debtors 78,127 34,277 69,028 20,871
Other debtors 206,756 6,646 206,756 6,646
Owed by subsid. undertakings - - 88,490 104,611
Prepayments (General) 214,147 199,445 214,147 199,445
Accrued Income 25,590 221,221 21,090 187,084
524,620 461,589 599,511 518,657
531,470 468,328 606,361 525,396
18 SHORT TERM INVESTMENTS Group Guild
2023 2022 2023 2022
£ £ £ oa
MoneyMarket/DepositInvestments 2,541,837 928,872 2,541,837 928,872

Page 40

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

19 CREDITORS: Amounts falling
due within one year Group Guild
2023 2022 2023 2022
E £ & £
Trade creditors 260,995 362,932 260,995 362,792
Other taxation & social security 53,472 43,969 53,472 43,969
Custodian Funds held on behalf of
AU/University Sports Groups 54,947 50,875 54,947 50,875
Other Creditors 13,459 58,799 13,459 58,799
Accruals 203,213 321,950 200,130 318,993
Deferred Income 34,348 22,490 32,453 17,740
SUSS Pension Deficit 310,858 296,060 310,858 296,060
931,292 1,157,075 926,314 1,149,228
20 DEFERRED INCOME Group Guild
2023 2022 2023 2022
£ £ £ £
At
1 August 2022		 22,490 11,809 17,740 11,809
Additions 32,152 22,490 30,257 17,740
Released (20,294) (11,809) (15,544) (11,809)
At31July2023 34,348 22,490 32,453 17,740

Deferred income for 2022/23 primarily relates to both grant and event income received for activities/events taking place during 2023/24, similar to balances held as at the 2021/22 yearend.

Page 41

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

21 PROVISION FOR LIABILITIES: 2023 2022
SUSS PENSION DEFICIT £ £
Balance bought forward 4,155,079 5,047,157
Deficit contributions paid (296,060) (277,724)
Unwinding
of discount factor/interest
(based upon prior year rate) 138,675 61,590
Deficit
adjustment
arising		 from
actuarial revaluation in year 644,253 -
Surplus
adjustment
arising		 from
change to discount factor assumption (541,054) (675,944)
Total Balance carried forward 4,100,893 4,155,079
Creditors — Amounts falling due within
one year (see note 19) 310,858 296,060
Provisions for liabilities 3,790,035 3,859,019
4,100,893 4,155,079

The SUSS pension liability after five years is estimated to be £3,359,369 (2022: £3,150,536).

22 UNRESTRICTED FUNDS
(For Guild only) 1 August
2022		 Income Expenditure Transfers 31 July
2023
£ £ £ £ £
General Reserve 1,690,506 5,819,782 (4,737,966) (793,017) 1,979,305
Pension Reserve (4,155,079) - (241,874) 296,060 (4,100,893)
(2,464,573) 5,819,782 (4,979,840) (496,957) (2,121,588)

Page 42

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

23 RESTRICTED FUNDS
(For Group & Guild) 1 August
2022		 Income Expenditure Transfers 31 July
2023
£: £ £ £ £
Mentor Scheme 10,978 277,398 (277,398) - 10,978
Warden Scheme 96,290 127,075 (127,322) - 96,043
Hall Reps 22,752 350,078 (337,641) 350,070 385,259
Capital Grants 6,807 - (2,773) - 4,034
Global Buddies Scheme 11,461 - - - 11,461
University Maintenance SLA 15,840 - (11,772) - 4,068
164,128 754,551 (756,906) 350,070 511,843
All of the above restricted reserves represent funds received specifically for the identified
activity and are either supported by partnership arrangements or one-off grant applications.
24 DESIGNATED FUNDS 1 August 31 July
(ForGroup& Guild) 2022
£		 Income
£		 Expenditure
£		 Transfers
x		 2023
3
IT Infrastructure 196,893 - - 46,887 243,780
Building Refurbishment 2 550,000 - - - 550,000
Strategy Fund - - - 100,000 100,000
Student
Groups
(Societies,		 490,714 709,849 (702,680) - 497,883
Guild
Sports
Clubs		 &
Medsoc)
1,237,607 709,849 (702,680) 146,887 1,391,663

IT depreciation charges of £2.4k have been allocated against the IT Infrastructure Fund within the year, compared to £5.8k charged in 2021/22. This allocation specifically relates to assets purchased to support the Guild’s previous IT strategy that is currently under review. In addition, the Guild has designated £49.3k to the IT Infrastructure Reserve to fund both capital and revenue costs associated with the transition of Guild IT to University IT Services. This expenditure will be incurred over the next three-year period, with some capital commitments already made in July 2023.

The ‘Building Refurbishment 2’ designated reserve has been allocated to help fund larger scale improvements to the Guild building, and this reserve has been frozen since 2018/19. Within the 2023/24 budget, the Guild has allocated £250k of this fund for a planned refurbishment of the ground floor Reception area, and it is likely that the remaining £300k will be spent the following year in 2024/25.

Within 2022/23, a new designation of £100k has been made to a ‘Strategy Fund’ that will be utilised to accelerate delivery of the Guild’s 2022-2027 strategic plan, with particular emphasis on the growth in student population forecast by University of Birmingham. The use of this fund is currently being developed to be spent in 2023/24 and 2024/25.

Page 43

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

In addition, Guild Societies, Guild Sports Clubs and Medsoc student groups are classified as designated activity of the Guild of Students. The net balances increased by £7.2k during 2022/23 compared to an increase of £43.6k reported for the previous year, 2021/22. The net increase consists of £709.8k income (2022: £810.5k) and £702.7k expenditure (2022: £766.9k).

25 ANALYSIS OF NET Fixed Provision
LIABILITIES (2022/23) assets and
investments		 Netcurrent
assets		 for pension
liabilities		 Net
liabilities
£ £ £ 72
Charity
Restricted funds 4,033 507,810 - 511,843
Designated funds 27,626 1,364,037 . 1,391,663
General funds
- UoB Guild of Students 237,824 1,741,481 - 1,979,305
- UoB Guild — Pension - (310,858) (3,790,035) (4,100,893)
For Charity 269,483 3,302,470 (3,790,035) (218,082)
Group
Restricted funds 4,033 507,810 - 511,843
Designated funds 27,626 1,364,037 - 1,391,663
General funds
- UoB Guild of Students 212,824 1,741,481 - 1,954,305
- UoB Guild — Pension - (310,858) (3,790,035) (4,100,893)
- Subsidiary undertaking(s) - 74,145 - 74,145
For Group 244,483 3,376,615 (3,790,035) (168,937)
The comparative figures for the previous financial year are as follows:
ANALYSIS OF NET Fixed Provision ;
LIABILITIES (2021/22) assets and
investments		 Netcurrent
assets		 for pension
liabilities		 Net
liabilities
£ £ £ £
Charity
Restricted funds 4,411 159,717 - 164,128
Designated funds 2,712 1,234,895 - 1,237,607
General funds
- UoB Guild of Students 231,541 1,458,965 - 1,690,506
- UoB Guild — Pension - (296,060) (3,859,019) (4,155,079)
For Charity 238,664 2,557,517 (3,859,019) (1,062,838)
Page44

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

ANALYSIS OF NET Fixed Provision
LIABILITIES (2021/22) assets and
investments		 Netcurrent
assets		 for pension
liabilities		 Net
liabilities
£ £ £ £
Group
Restricted funds 4,411 159,717 - 164,128
Designated funds 2,712 1,234,895 - 1,237,607
General funds
- UoB Guild of Students 206,541 1,458,965 - 1,665,506
- UoB Guild — Pension - (296,060) (3,859,019) (4,155,079)
- Subsidiary undertaking(s) - 74,145 - 74,145
ForGroup 213,664 2,631,662 (3,859,019) (1,013,693)

26 LEGAL STATUS

The University of Birmingham Guild of Students incorporated as a company limited by guarantee on 4" July 2008, changing from its previous status as an unincorporated association.

In addition, the Guild of Students also registered as a Charity with the Charity Commission in August 2010. This was due to students’ unions connected with higher education institutions being removed from the list of exempt charities within section 11(9) of the Charities Act 2006.

27 RELATED PARTY TRANSACTIONS

The charity has taken advantage of the exemptions allowed under FRS102 and does not detail related party transactions with its subsidiary undertaking.

Other related party disclosures consist of the following:

During the 2022/23 financial year, Guild Services Ltd received income of £7.4k (2022: £2.3k) but did not incur any expenditure. At 31 July 2023, Guild Services Ltd reported an outstanding VAT inclusive debtor balance of £2.4k (2022: £2.7k).

Page 45

University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

28 OPERATING LEASE COMMITMENTS

At 31 July 2023, the Guild had commitments under property leases and non-cancellable equipment operating leases (minimum lease payments) as set out below:

2023 2022
Land & Buildings Lease which expire: £ £
Within 1 year 172,915 133,445
Within 2— 5 years 345,829 266,890
Over 5 years - -
518,744 400,335
Operating leases which expire:
Within 1 year 3,532 1,554
Within 2- 5 years - 7,345
Over 5 years - -
3:532 8,899
29 CAPITAL COMMITMENTS
2023 2022
£ a
Contracted but not provided for 17,962 49,596
30 SUBSCRIPTIONS AND AFFILIATIONS
The Guild of Students paid the following memberships and affiliations during the year.
They
are listed in accordance with the requirements ofthe Education Act 1994.
2023 2022
ce £
Advice UK Limited 276 263
NUS Services Limited - 380
National Union of Students 37,500 37,500
National Centre for Voluntary Organisations - Free - -
TES Global - 1,344
Wonkhe 4,330 -
Subscriptions & Affiliations of£175 or less 306 501
42,412 39,988

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University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

31 PENSIONS

The University of Birmingham Guild of Students 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 country. 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 onwards accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme closed to future accrual. The most recent full valuation of the Scheme was carried out as at 30 June 2022 and showed that the market value of the Scheme’s assets was £106.7m with these assets representing 44% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £133.6m after incorporating liabilities arising from a historical legal issue.

The 2022 valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 15 years ending 1% May 2037. This represented an extension to the repayment plan of 1 year and 9 months compared to the 2019 valuation.

The Guild’s deficit contribution was planned to increase by 5% per annum under the previous 2019 repayment plan and this assumption remains unchanged within the updated plan arising from the June 2022 revaluation. Deficit contributions will increase by 5% from 1 October 2023. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. However, surpluses or deficits which arise at future triennial revaluations will impact on the University of Birmingham Guild of Students’s future contribution commitment. The total deficit contributions paid into the Scheme by the Guild in respect of eligible employees for the year ended 31 July 2023 was £296,060 (2022: £277,724). The Guild will be required to make pension deficit payments into SUSS totalling £310,858 during 2023/24. In addition to the above contributions, the University of Birmingham Guild of Students also pays its share of the scheme’s levy to the Pension Protection Fund.

In addition, the Guild of Students also participates in the National Union of Students Pension Scheme (NUSPS) and the government NEST scheme to fulfil auto-enrolment obligations. NUSPS is a defined contribution scheme and the Guild contributes either 4% or 6% based upon matched funding from individual employees. Contributions into the NEST scheme are currently based upon 4.0% of qualifying earnings also matched by employee contribitions, or enhanced 4% or 6% employer contributions matched by individual employees.

The total contributions paid into both NUSPS and NEST by the Guild in respect of eligible employees amounted to £80,683 (2022 - £70,776). At 31 July 2023, a balance of £13,367 was recorded as a Creditor within the Balance Sheet representing July 2023 pension contributions payable in August 2023 (2022: £10,865). The estimated employer contributions for 2023/24 financial year relating to NUSPS and NEST are £99,705.

32 CONTINGENT LIABILITY

There are no contingent liabilities to report.

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University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2023

33 FINANCIAL PERFORMANCE OF THE CHARITY

The charity reports Net Income of £844,756 for the year ended 31 July 2023 in comparison to Net Income of £1,371,123 reported for 2021/22.

The charity reports gross income of £7,284,182 for the year ended 31 July 2023 in comparison to gross income of £6,711,596 reported for 2021/22. The charity has taken advantage of Section 408 of the Companies Act 2006 and the SORP and has not included a separate Statement of Financial Activities in these financial statements.

34 EVENTS AFTER THE END OF THE REPORTING PERIOD

No significant events have taken place since the Balance Sheet date.

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