Guildofstudents University of Birmingham CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 July 2024 Company Registration No. 06638759 Charity No 1137548 University of Birmingham Guild of Students CONTENTS Page(s) Reference and administration details Report of the 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 Balan￿ Sheets 22 Consolidaled Statement of Cash Flows 23 Accounting policies 24-27 Notes to the financial statements 28-48 University of Birmingham Guild of Students REFERENCE AND ADMINISTFIATION 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 28th October 2024 Appointed Resigned Mr Robert Smeath Mrs Ruth Pipkin Ms Amira Campbell Chair Chair Vice Chair- President 23rd Oct 17 24th Oct 23 17th Jul 23 24th Oct 23 8th Jul 24 Mr Harry Brooks Miss Catherine Hardiman Mr Joseph Hill Ms Tianjie Liu Activilies & Employability Officer Sports Officer Education Officer International Officer (Officer across two financial years) Postgraduate Officer (Officer across two financial years) Welfare & Community Officer 17th Jul 23 17th Jul 23 17th Jul 23 18th Jul 22 12th Jul 24 12th Jul 24 12th Jul 24 121h Jul 24 Mr Benjamin Lockley 181h Jul 22 12th Jul 24 Mr Dean Turner 171h Jul 23 12th Jul 24 Mr Michael Brown Ms Erica Conway Mr Johnny Davis Ms. Mitali Gohel Mrs Simone Hawley Miss Shruti Kohinkar Mr Stanley Melau Miss Serabi Opiyo Mrs Helen Stone Dr Emma Wedge Miss Dionne Williams Mr Yinbo Yu 23rd Oct 23 3rd Jul 18 131h May 19 6th Jan 23 23rd Oct 23 81h Jan 24 181h Jul 22 19th Jul 21 8th Jan 24 11th May 20 23rd Oct 23 12th Jan 22 10th Oct 24 9th Dec 23 12th Sep 23 2024125 (New Officers) Mr Syed Sadath Miss Hope Aquilina Mr Devansh Jhamnani Mr Alexander Keen Ms Ritakshi Maheshwari Miss Lara Parker Mr Ravikiran Rajashekar Vice Chair- President Welfare & Community Officer Activities & Employability Officer Education Officer Postgraduate Officer Sports Officer International Officer 15trJul 24 15th Jul 24 15th Jul 24 151h Jul 24 15th Jul 24 15th Jul 24 15th Jul 24 Page 1 University of Birmingham Guild of Students REFERENCE AND ADMINISTRATION DETAILS Senior Management Team Mrs Joanne Thomas Miss Emily Badger Mr Nicholas Bailey Mr James Lindsay Mr Adam Sheridan Chief Executive and Company Secretary Director of Operations Director of Finarsce & Systems Director of Community & Representation Director of Engagement Auditors Dains Audit Limited 2 Chamberlain Square, Paradise Circus, Birmingham. B3 3AX Bankers HSBC Bank PIC 130 New Streel, Birmingham, B2 4JU Solicitors Governance, Charity Law & General Bates, Wells & Braithwaite London LLP 10 Queen Street Place, London, EC4R I BE HR DFA Law LLP 2 Waterside Way. Northampton, NN4 7XD VAT Consultancy RSM UK Tax and Accounting Limited 1 Oth Floor, 103 Colmore Row, Birmingham, B3 3AG 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 2024 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 undef the Education Act 1994 as a Charity with internal regulations and rules approved by University Council. the governing body of Ihe University of Birmingham. The Guild's charitable objeclives 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 iheir own charitable activities as aclive participants in civil society. The Guild of Sludents became incorporated into a Company Limiled by Guarantee {CLG) in July 2008 and registered as a Charity in August 2010. The Guild is administered by ils 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 elecled annually by a cross-campus secret ballot of the Guild's membership. The seven posts consisl of Presidenl. Activities and Employability, Education, Internalional, 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 rnembers, the students of the University of Birmingham. At the commencement of the academic year 2023124. the Guild introduced new Democratic System (more information can be found at Democratic S stem Guild of Sludenls). The voice of students is represented by the 'Members Democratic Process, through the 'Ideas and Guild Policy Submission Process,, supported by 'Demonstration of Interest, votes and Action Groups. Guild Officer accountability is delivered via 'Scruliny Panel, bodies. The 'Scrutiny Panel,, a body of appointed independent students, holds the Guild Officer Group to account, and helps lo direcl their work in consultation with students. Student Ideas are submitted via the Guild of Sludenls website and are either allocated for immediate implementalion or for further development via 'Action Groups,. Elected Officers lead Action Groups, alongside Guild Staff and students, to develop and review Ideas and Policy which can then be voted on via an All-student Vote before implementation. The Guild keeps members updated on how Ideas and Policy are progressing via regular updates throughout the year. The Trustee Board, assisted by 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 Iheir legal and administrative responsibilities at the slarl 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 Ihe Guild's performance and administration. In 2023124, the Trustee Board met six times, including away days taking place in January and July 2024. Ruth Pipkin was appoinled as the new Chair of the Trustee Board in October 2023, following the end of term of office for the former chair, Robert Smeeth having compleled the maximum six years in post. The Guild of Students also employs a number of core staff lo 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. Page 3 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD The Guild of Students incurred costs of £5,585 (2023: £5,586) within the year relaling to Professional Indemnity insurance cover of £5m 12023.. also £5m). This policy included cover for the Trustees, Directors, Officers, Employees, Student Group committee members as well as olher volunteers associated with Guild activities. Relationship with the University of Birmingham The relationship belween the University and the Guild is established in the Charter, Statutes, Ordinances and Regulalions of the University and detailed in the Memorandum of Understanding, which is approved by both organisations. 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 fulure, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its studenl representative body. The University plays an important role within the Guild, having representatives on the Trustee Board and 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 syslems or procedures have been established to mitigate the risks the Guild faces. The risk management policy and risk register have been significantly reviewed and realigned during the year. 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 aclivities organised for the Guild. These procedures are periodically reviewed to ensure that they continue lo meet the needs of the Guild. The key risk areas identified are.. Risk Mitigatinglcontrol Measures Estimated increases planned into long term financial forecast Cash-flow planning to take advantage of advance discount offers as they fall due, where financially viable Discussions with University of Birmingham regarding ossible fundin tions in the future Diversrfying income streams to redu￿ reliance on one source of funding Trustee approval for a revised trading model, reducing contributions previously incorporated into the long-term forecast. External commercial review and recommendations approved wilh accompanying reorganisation of Senior Management Team to have enhanced res onsibilit Guild and departmenlal contingency plans in place with established protocols for a Guild Emergency Planning Group Transition of Guild IT provision to university IT platform and support, completed in 2022123 Risk Assessments and Business Continuity Insurance in lace Timely and relevant research is conducted on a regular basis to inform strategic and operational decisions Regular reports are reviewed by Trustees, including members. satisfaction and erformance a ainst ke strate Page 4 Financial SUSS Pension deficit payment, significant increases in future years Financial A significant reduction in trading income Operational Loss of any aspecl of Guild services due to disaster Reputationalloperational Guild is no longer perceived as relevant to members and does not respond to changes in University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD students, lifeslyle and needs targets Responsive changes to feedback and insight are lemented Regular training provided to key stakeholders regarding responsibilities, press and PR and organisational processes Proactive support provided by staff team in dealing with media issues and other problems that arise. Professional external advice sou htasre uired. Training and support are provided for high-risk areas by the Guild team High risk areas are scrutinised more thoroughly by the Guild with effective support from university colleagues. Event Manual and Risk Assessment Process for activities and events, working with relevant parties where appropriale. Review of existing safely policies and processes was conducted during 2022123 by both University Internal Audit and an externally commissioned review, with recommended actions for im rovemenls com leled Detailed 'Pay and Benefits Review, recommendalions have been completed during 2023124. Regular monitoring of Guild overheads including utilities and maintenance costs. The Long-Term forecast takes account of cosl increases in key areas Five-year Block Grant funding secured to 2026127 A Value for Money review is being planned in 2024125 10 identi ossible efficiencies. Reputational Student led groupslofficer Team acting in such a way thal it harms the reputation of the Guild andlor University Operational Health & safety matters across a broad range of activities and failure to follow approved processes such as risk assessments Cost of LSving Responding to challenges arising from the current economic conditions 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 Universily of Birmingham including but not limited to.. The promotion of social intercourse between students of the University of Birmingham and the furtherance of the common interesls of such students., and. The support of such societies that shall from time to lime be recognised by the Guild. In pursuil of these objectives, the Guild ensures the diversity of its membership is recognised. valued and supported and as such has eslablished student support and developmenl 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.. Studenl Groups.. Voice & Representation and Venues. The Guild continues to represent students on relevant local, nalional and international issues. Through the 'Members Democratic Process,, students are able lo mandate the Guild to lobby and campaign in areas important to its members. The Guild also supports the work of the National Union of Sludents INUS} via various national bodies and conferences and participales in national campaigning and lobbying activity by the national sludenl 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 represenlatives and staff contribute to circa 100 University commiltees, academic programme forums and working groups. Guild Officers also regularly meet to put forward Page 5 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD the studenl voice wilh 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 sludent-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 2023124 academic year marks the completion of 'Year 2, 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 2nd year of targets for this strategy. Objectiveslcommitments OutcomeslAchievements In 2023124: Aim1 Engagement and Participation 15,000 students joining our groups by 2027 12,701 individual students joined societies and associations in 2023124, against a Year 2 targel of 12,000. 500 recognised student groups by 2027. 372 studenl groups were recognised in 2023124 against a target of 350. with 82010 of students (NSS) satisfied with the range of clubs and societies on offer. The welcome week socielies fairs saw over 12,000 attendees, including almost 1,000 atlendees to the Medical Society (Medsoc) Fair hosted by the Guild Building. 'Give it a Go, activity expanded with 32 sludent groups hosting drop-in activities and 2,345 students taking part in an activily. Student groups involved in Give it a Go saw a 33 % increase in membership. 80% satisfaction with the Guild and our Activilies by 2027. 751 of students surveyed were satisfied with the range of activities on offer at the Guild of Students, againsl an in-year target of 730/0, whilst 800/0 of students were satisfied with the range of services provided by the Guild. 730/0 of students stated that they have had plenty of opportunities to interact socially with other students (NSS) compared to 65 % in 2023. 5,000 student volunteers via the Guild by 2027. 4,951 recorded student volunteers across all Guild departments in 2023124, against an in-year target of 4,000. Student Volunteering Week ran in February 2024. The purpose of the week was to engage student volunteers in community volunteering and showcase the volunteering opportunities on offer at the Guild. The annual 'Guild Awards, event was successfully delivered with 266 nominalions for student volunteers across g awards, up from 171 nominations in 2023. 86 % of attendees were salisfied with the Awards event Page 6 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD Aim2 Representation 10,000 voter turn-out in Officer Eleclions, by 2027. 6,381 student voters in the Officers Elections in 2024, with 7,046 lotal votes cast across all officer elections in 2023124. 134 candidates stood for election across the year, against a target of 100. 700/0 say the Guild effectively represents their academic interests by 2027. 66°/o of students in the 2024 National Student Survey {NSS) agreed that the Guild 'effectively represents their academic interests,, against a Year 2 target of 60 /0. 70% say we represent and provide them with a voice to the University by 2027. 520/0 of students agreed when surveyed that the Guild effectively represents their views and provides them with a voice to the University. against a Year 2 target of 630/0. Five 'AII Student Meetings, were held, with a total of 900 votes casl. 41 new ideas and 4 new policy submissions were generated through the new democralic process. 90% of Student Reps receive quality Iraining that enables timely feedback 1,296 studenl reps were elected across all University Colleges, of which 976 completed full student rep training (75Q/o) for the academic year. 97 % of student reps attending training agreed that they were satisfied with the training received. Aim3 Community & Support 70 % agree they feel part of the community they live in by 2027. 66 % of students agree that they feel part of the community they live in, against a Year 2 target of 65'/0. 76% of students are satisfied with the Community Wardens scheme. 95010 of students agreed that the Hall Reps event they had attended helped them to feel part of their Halls community. The Communily Wardens Team visited 2,263 unique properties in the local Selly Oak community of which 927 households engaged in posilive community dialogue. 70% in UOB accommodation agree we support their accommodation experience, by 2027. 700/0 of students agree that the Guild supports their accommodation experience, when surveyed. a Year 2 target of 86 % of student accommodation residenls agreed that they were satisfied by the events and activities delivered by the Hall Reps scheme in Iheir accommodation. 70 % say "the Guild is a place I can get useful advice" 57 1 of students when surveyed agree that Ihe Guild is a place that they can get useful advice, and 740/0 satisfaction among users of the Guild Advice service. Page 7 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD 980 students were supported by the Guild Advice team, including 235 appeals cases taken up with the University. Enablers 1-6 continued commitment to building stronger relationships to improve partnership working. Continued partnerships across a range of areas, including Cost of Living work. Student Rep Scheme, Residen￿ Life project, Welcome Week, Community Safety and the Student Voice Report. A longer term {5 year) funding agreement with the University. Moving into year 3 of a 5-year financial settlement with the University, following an uplift of an additional £4.5m over five years. Identification of new commercial opportunities for the Guild. Planned delivery of enhanced commercial offers in Venues for Welcome Week 2024. Investment and development into the Guild's IT infrastructure, including transition lo the University's platforms and an upgrade to CCTV. Completed a £1.9m University funded investment into the Guild's IT infrastructure in 2023, including transitioning io Microsoft 365 for all staff and societies committees, significant technology refurbishmenl in the Guild Building, replacemenl of staff devices and upgrading of the building's CCTV systems. A capital development plan to improve the space provision available for the delivery of services, events and student led activities. Completed planning work on a refresh of the Guild Reception area, however this work was paused due to commercial challenges. New Systems Team has been developed to spearhead digital improvements, with a number of systems implemented in 2023124, and an ambitious action plan developed for 2024125. refreshed People Strategy which priorities the needs and development of all employees, by 2027 Ongoing work to refresh the Guild's People Strategy and digitise the remaining element of our HR system, pending stakeholder consullation. 80 % of all staff say the Guild is a good place lo work, and 750/0 of core staff say the Guild cares about its employees, with 82 % of Student Slaff saying they would recommend the organisation as a good place to work. Core staff, student staff and Committee members re￿1ve training on the electronic Iraining portal IHASCO with 13.927 courses compleled in 2023124 including GDPR. Anti-Bribery, EDI & Fraud Prevenlion. An EDI plan which sets out ambitious targets for improvement across the organisation by 2027 Ongoing work to develop and implement a new EDI plan for the organisation, covering recruitment, policies, operations and governance structures. 84 % of staff say this organisation values diversity. We continue to hold the accredilation as a °Disability Confident. employer, 34 staff members have taken part in EDI training and 47 staff completed antisemitism training Ihi5 year. We recorded the same number of core staff applicants who Page 8 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD declared a disability at 110/0 in both 2023124 and 2022123. Effeclive delivery of the Communications Strategy, which focusses on what the Guild is, who we are and what we do 47 % of students agreed that they knew what the Guild did, with 49 % reporling thal communications were interesting. A comprehensive external review of the Guild's communications work was completed in 2023 and continued inlo 2024 with an extensive number of recommendations to improve our communications offering being delivered. Roll out of the Guild's brand across all services and activities A switch to video-led content as the priority on social media resulted in high volume viewings and engagement, including.. 'This is Grad Ball, and over 500 likes. 'Behind the scenes of Guild Awards, and over 12,000 reach. 'Alice's Top Tips on starting conversations, views. and over 12,000 reach. nearly 30,000 views, over 16,000 reach nearly 27,000 views nearly 29,000 Over 452,000 unique visits to the website compared to 435,000 in 2021122 and 400,000 in 2022123. Over 17,900 followers on Instsgram, now the major socia channel, up from 14,800 in August 2023. A pro-active approach to Health & Safety across the organisation 900/0 core staff completion of mandatory Health & Safety training, and 90 % of role-specific Health & Safety training by year end. All actions completed form the 2023 external Health & Safety review. Improvement in Ihe management and maintenance of risk assessments during ihe year, helping to streamline the risk assessmenl process. Sustainable management of the Guild building. Following investmenls in new, more efficient equipment and efforts to influence practice on minimising energy usage, the Guild achieved a 3.8% reduction in energy usage in 2023124 compared to 2022123, following a 18.90/0 reduclion reported last year in comparison to 2021122. Achieved SOS UK (formerly NUS) Excellent Award in the Green Impact award for 2024. Other Key Achlevernents (2023124 Academic Year) We continue to deliver significant work to support students through the Cosl-of-Living crisis, including an expanded Guild Hardship fund to include Sports hardship, free sanitary products and contraceplives in the Guild, and established a new Community Breakfast initiative whilst continuing with the Community Pantry food bank for students. Secured a number of room and conference bookings which delivered a significant additional financial contribution to the organisation. Compleled the Residence Life project review resulting in a new Residence Life offer for studenls livin in universit accommodalion. Page 9 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD Undertook a detailed review of the Guild Articles and Byelaws to ensure compliance that were approved by a Company Law Meeting held in January 2024. Significant progress on digitising systems across the organisation, including a move to digilal ticketing,. case management., student group finances and activities module implementation, plus development of a KPI dashboard. Over 2,000 student houses door knocked in Selly Oak to provide relevant information about living in the community and provided over 5,000 student trips on the 'Selly Express, night-time free local bus service Strategic Plan 2022-27 The Guild is about to enter Year 3. of our five-year strategy {2022 - 2027) which encompasses three main themes.. Engagement and Participation, Representation, and Community and Support. The slrategy 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 University of Birmingham students on the issues that matter the most. The strategy is supported by six critical 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 slrive to give students an excellent student experience at Birmingham, wilh a greater focus on how we support poslgraduate 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 Stralegic Plan to respond and adjust resour￿$ as required lo deliver for students. Financial Review Income and Expenditure For 2023124, the Guild reports Net Income of £246.3k compared to Net Income of £844.8k in 2022123. However, results for 2022123 were favourably impacled by refunds receivable from HMRC in relation to the historic VAT treatment of grant income, Ihal had previously been in dispute. The income adjustment in 2022123 tolalled net £517.5k. Total Income increased by £334.gk (4.60/0) from £7.32m in 2022123 10 £7.65m in 2023124 although this increase would have been greater, but for the one-off income receivable from HMRC in 2022123. Core grant funding (including Hall Reps) increased by £529.3k (13.8% ) to £4.38m, income from Advice, Support & Community increased by £100.5k (24.90/0) to £505.Ok, income from Studenl Activilies & Employability increased by £138.7k {19.3 % ) to £857.9k, sales from charitablelsubsidiary trading increased by £83.2k (4.90/0) to £1.78m and investment returns increased by £89.8k (202.5'/0 to£134.1k. Total expenditure & charges increased by £933.3k {14.4 % ) from £6.47m in 2022123 to £7.40m in 2023124 and almost all of this increase (£918.2k) was attributsble to expenditure on charitable activities. Direct expenditure reported for 'Sludent Representation.. 'Student Advice, Support & Community, and 'Student Development & Employability, increased by a combined £428.6k {17.70/0) to £2.85m, of which £268.9k of the increase was within Student Development, due to increased engagement and activity. In addition, direct expenditure for 'Charitable Trading, increased by £306.Ok (23.OO/D} of which 50.0 % related to Venues costs. As reported in note (9), support cost expendilure also increased by £179.5k (7.5010) to £2.58m. The majority of cost increases for non-commercial student services and support functions have been financed through the growth in grant funding to deliver the 2022-2027 strategic plan. However, Page 10 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD inflationary pressures have also increased core operating cosls including utilities, contracts and general purchasing. The most challenging financial matters for the Guild in 2024125 and beyond are growing commercial contributions back to historical levels, whilst also managing cost control across the organisalion. 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 to 24. Fixed Assets As highlighted in note {14}, the net book value of 'Total Fixed Assets, decreased by £64.6k to £179.9k. New purchases totalled £61.Ok (2023.. £124.1 k) and depreciation charges lotalled £104.1 k (2023.. £93.3k}. However, the Guild has also made impairmenl adjustments at year-end with a nel book value totalling £21.5k in relation to the 2019 Joes Bar refurbishment and sundry IT equipment. Sundry central building works lotalling £11.3k were incurred in 2023124 (2023.. £73.1k) mainly in relation to alarm systems. Equipment purchases tolalled £49.7k compared to £51.Ok in 2022123. Equipment purchases comprised of General IT hardware. multimedia upgrades and barlcalering venue equipment. Net Current Assets & Cash-Flow Total Net Current Assets increased by £231.4k from £3.38m brought forward to £3.61 m for 2023124. This movement consisted of an increase to current assets by £217.4k and a decrease to creditors due within one year by £14.0k. As reported within the Statement of Cash Flows on page 23, total cash balances increased by £241.7k across the year to £3.99m held at year-end, whilst debtor and stock balances decreased by net £24.3k. The increase to cash balances was partly attributable to a refund received from HMRC totalling £155.5k, in relation to a long-standing dispute regarding grant funding. This balance was reported as accrued income in 2022123 and received in 2023124. Within the cash balances of £3.99m held at year-end, it is important to highlight that £565.2k12023: £550.1 k) consisted of student group balances, including £389.3k Guild societies and 5POrts clubs, £125.7k Medsoc funds and £50.2k University sporls 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 remained consistent with the previous year, marginally decreasing by £14.Ok to £917.3k at 31 July 2024. Accruals and Deferred Income fell by £43.7k whilst all olher creditors (including Trade Creditors) increased by a combined £29.7k. Further detail regarding movements to stock, debtor and creditor balances is reported in notes 16, 17 and 19. Provision for Liabilities and Net Liabilities The Guild is required to adopt Financial Reporling 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 Ihe year the total liability provision is estimated to have decreased by £64.Ok from £4.10m recorded as at 31 July 2023 to £4.04m calculated as at 31 July 2024. The £4.04m liability is split between creditors falling due within one year (£326.4k) and the longer-term provision (£3.71 m). Page11 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD The £64.Ok estimated decrease arises from repayments within the year totalling £310.8k and a net charge of £246.8k arising from the unwinding of the discount factor. At 31st July 2024, the Guild has applied a discount factor assumption of 5.050/0, a reduction of 0.15 % in comparison to 5.20/0 assumed as at 31st July 2023. The revised discount factor better reflects current market conditions forecast for investments over the next thirteen-year period. Custodian Funds University of Birmingham Sporls Clubs who hold a 'social' account with the Guild are classified as Custodian Funds held on behaSf of University of Birmingham and are treated as Cfedilors. Al year- end, the closing balance of funds held on behalf of AU Sports Clubs was £50.2k compared to a closing balance of £54.9k held al the end of 2022123, a decrease of £4.7k. 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 charily to fund charitable activilies. During the year, Guild Services Ltd engaged in marketing and sponsorship activities. For 2023124, Guild Services Lld generaled income of £84.Ok (2023.. £119.5k) and incurred costs of £82.3k {2023.' £108.1 k). At 31 July 2024, a gift-aid payment of £1.7k (2023: £11.4k> is due to be made from Guild Services Ltd to Universily of Birmingham Guild of Students. Future Finances The budget for 2024125 financial year was approved by the Guild's Truslee Board in May 2024. This reports Net Expenditure of £98.2k for the year. After allocaling budgeted expendilure and charges to both restricted and designated reserves of £378.Ok, and accounting for pension deficit repayments of £326.4k, free unrestricted reserves are budgeted to decrease by £46.6k. 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 2022123 to 2026127. The annual block grant for 2024125 will be £4.023m including an additional £104.8k towards delivery of Ihe strategic plan. This will also be supplemented by estimated additional grant funding of £962.2k to fund Residence Life and Community Wardens activities. Further growlh is incorporated into the block grant to 2026127. The 2024125 budget assumes a significantly reduced contribution from Venues Irading activities that has suffered a substantial downturn in 2022123 and 2023124. This area continues to be a key risk to the Guild's financial position and will be monitored closely in early 2024125. An external Commercial Review was conducted during 2023124, and a Development Implementalion Plan agreed by the Truslee Board in May 2024 that was updated and discussed again in July 2024. In addition. a number of other commercial opportunities will be considered during 2024125. The Guild has budgeted for capital expenditure of £235.Ok, including a £100k investment to refresh the Joes Bar space. Cash balances are budgeted to reduce by £306.4k as a combined result of capital expenditure, the planned use of Reslricted Reserves within the year to support the Residence Life strategic launch, and Ihe expected reduced operating cash inflows from trading activities. The Guild updated its financial five-year planlforecast in May 2024 based upon continuing pressures arising from both cost of livinglinflationary increases and lower contributions from trading operations and this will be reviewed again by trustees in October 2024. 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 anticipaled Ihal 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 slreet banks. Investment returns in the year reflect the staled policy and total £134.1 k {2023: £43.3k) wilhin the year. Remuneration Policy The Guild commissioned an exlernal review of pay and benefits in April 2023 and the results of this were considered and approved by HR Committee in September 2023. The review included a comprehensive benchmarking analysis of the Guild's pay and benefits offer in comparison to the Sludents, Union sector as well as consideration of both the local and wider job market. As a result, the Guild introduced a new pay-scale from the start of November 2023. All salaried staff were transferred to the new scale with no financial detriment. In addition, a small number of pay grades benefilted from a step increase in salary due to the changeover, as well as the initial inflationarylcost of living adjustments (ranging 3.0°/o to 6.0 % } applied lo the outgoing pay-scale from the slart of August 2023. For 2024125. the Guild has applied inflationarylcost of living increases ranging 2.0'/0 higher uplifts applied to the lower half of the pay-scale in accordance with recent years. 3.50/0 Wlth the 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. In addition, staff are able to increment wilhin a pay-scale grade on an annual basis in line with standard organisational policies and subject lo outcomes measured in an employee's annual Development & Performance Review. Following the outcome of the external pay review, the full-time Officer Team elected annually will now be benchmarked against comparator Students, Unions within the Russell Group and reported to a separate Remuneration Committee. With reference to sludent staff positions, from 1st Augusl 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 Ihe Trustee Board in July 2023 and was also a recommendation made within the external review highlighted above. This change was made in response to the motion passed by an 'AII Student Vote, in December 2022, mandating Ihe Guild to achieve 'Real Living Wage (RLW), accreditation within five years of the motion. The increase applied in August 2023 was considered to be 'slep one, of a phased approach to achieving RLW accredilation. A further 9.80/0 increase was applied in April 2024 in line with National Living Wage changes, and this will be reviewed again during 2024125. 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 pay-scales are linked to the financial year. Going Concern The Truslees 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 Assets of £77.4k as at 3151 July 2024 although this is low due to a pension deficit liability, payable over a thirteen-year period to 1st May 2037. This posilion has improved by £246.4k within the 2023124 financial year and has improved cumulatively by £2.46m across the three-year period 2021122 2023124 compared to Nel Liabilities of £2.39m reported as at 3151 July 2021. The Guild benefits from significant annual granl Page13 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD funding from University of Birmingham and this funding is reviewed regularly, with a five-year funding agreement in place for the period 2022123 - 2026127. A more detailed statement regarding the Guild's Going Concern status is reported within the Accounting Policies section on page 24. Reserves Policy At 31 July 2024, the Guild's free reserves (being general funds excluding that represented by fixed assets and the longer term SUSS pension deficit) stood at £1.52m {2023= £1.51m). After taking account of general funds including fixed assets, bul excluding the longer term SUSS pension deficit. total unrestricted reserves stood at £1.67m (2023.. £1.72m) (as shown in note 25). This is in line with the minimum £1 m unrestricted funds target reported within the Guild's currenl Reserves Policy. As a result of recognition of the Guild's SUSS pension deficit arising from FRS102 implementalion in 2015116, a negative unrestricted pension fund balance of £4.04m is recognised as at 31 July 24. Refer to the accounting policies section and note 21. Historical designaled reserves held to fund IT Strategy implementation costs are eroded as assets are deprecialed with £7.3k charged in 2023124. Further investment is budgeted from the reserve {£43.5k) during 2024125 to upgrade multi-media installations in bookable committee room spaces. The designated reserve for the next significant building project (£550k} remains unchanged for 2023124. £250k of the reserve was originally allocated towards a refurbishment of the reception space during 2023124 although this work has been temporarily paused. However, £100k of the reserve will be invested during Summer 2024 in relation to planned improvements to commercial spaces. In addition, a new Strategic Reserve was created lasl financial year {2022123) with an original designation of £1 Ook. This has been increased by £86.Ok in 2023124 wilh a balance carried forward of £186.Ok. The fund is designated to help accelerate delivery of the 2022-2027 strategic plan, with particular focus on the growth in students studying in other locations. Finally, the Guild also accounts for Restricted Reserves mainly consisting of Residence Life (Hall Reps and Student Mentors) activity along with other items such as Community Wardens and Capital Grants. The balance for Restricted Reserves increased by £107.8k to £619.7k as at 3151 July 2024. Based upon plans agreed wilh University of Birmingham, Residence Life funds will be consumed over the next five years on an incremental basis. Auditors Dains Audit Limited has indicated its willingness to continue in office. 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 thal they have taken all Ihe 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. Small Company Provisions The report of the Trustee Board has been prepared in accordance with the provisions applicable lo companies enlitled to Ihe small companies, exemption provided by Part 15 and Section 414B{b) of the Companies Act 2006. Page 14 University of Birmingham Guild of Students REPORT OF THE TRUSTEE BOARD On behalf of the Truslee Board Ruth Pipkin Chair of Trustee Board Dale.. 28th October 2024 Page15 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 wilh 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 stalements for each financial year which give a Irue 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 expendilure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgments and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in Ihe financial statements. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 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 deteclion of fraud and other irregularities. The Trustees are also responsible for the mainlenance and integrily 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 statemenls 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 2024. 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, (Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the Group's and Parent Charity's affairs as at 31 July 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with Inlernational Standards on Auditing (UK> {ISAs (UK)) and applicable law. Our responsibilities under Ihose standards are further described in the Auditors, responsibilities for the audit of the financial slatements section of our report. We are independenl of the Group and Parent Charity in accordance with the ethical requifemenls that are relevant lo our audit of Ihe financial statement5 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 thal the audit evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded thal 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 doubl on the Group and Parent Charity's ability to continue as a going concern for a period of at leasl 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 statemenls and our Auditors, Report thereon. The Trustees are responsible for Ihe other information contained within the Annual Report. Our opinion on the financial statements does not cover the other informalion and, except to the extenl 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 misslated. 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. Page17 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 misslatement 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.. the information given in the Truslees, Report for the financial year for which the financial slalements are prepared is consistent with the financial statements,. and the Trustees. Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of 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 relalion to which the Companies Act 2006 requires us lo report to you rf, in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of director's remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit., or the Trustees were not enlitled to prepare the financial statements in accordance with the small companies, regime and lake advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Responsibilities of Trustees As explained more fully in the Trustees, Responsibilities Statement set out on page 16, the Truslees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparalion 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 abilily to continue as a going concern, disclosing, as applicable, matters relaled 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 delect a material misstatement when it exists. Misstalements 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. Page18 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 delect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularilies, including fraud is detailed below: Our approach to identifying and assessing the risks of material misslatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows-. the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicable to the Group and Parent Charity through discussions with Trustees and other management, and from our commercial knowledge and experience of the charity sector. we focused on specific laws and regulations which we considered may have a direcl material effect on the financial statements or the operations of the Group and Parent Charity, including the financial reporting legislation, Companies Act 2006, taxation legislation, anti-bribery, employment, and environmental and health and safety legislalion. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulalions were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of Ihe Group and Parent Charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur. by.. making enquiries of management as to where they considered there was susceptibility to fraud, Iheir knowledge of actual, suspected and alleged fraud- and considering the internal controls in place to mitigate risks of fraud and non (3,790,035> (3,710,476) {3,790,035} NET ASSETSI(LIABILITIES) 25 77,413 1168,937) 28,268 (218,082} FUNDS Restricled funds 23 619,676 511,843 619,676 511,843 Unrestricted - General Unrestricted - Pension Designated 22 21 24 1,992,638 2,028,450 1,943,493 1,979,305 (4,036,880) (4,100,893) (4,036,880) (4.100,893) 1,501,979 1,391,663 1,501,979 1,391,663 77,413 (168,937) 28,268 (218,082) The financial stalements were approved by the Trustee Board and authorised for issue on 28th October 2024 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. Nel Income for the parent company for the year 2023124 is £246,350 (2022123.. £844,756). Ruth Pipkin 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 2024 2024 2023 Net cash generated from operating activities 168,577 540,982 Cash flows from investlng activities Interest received Purchase of tangible fixed assets 134,124 (61,024) 44,339 (124.105) Net cash used in investing activities 73,100 (79,766) Net Increase In cash & cash equivalents in the year 241,677 461,216 Cash & cash equivalenl at the beginning of the year 3,743,108 3,281.892 Total cash & cash equivalents at the end of the year 3,984,785 3,743,108 Reconciliation of net movement in funds (operating surplus) to net cash generated from operating activities 2024 2023 Operating Surplus Depreciation Loss on disposal of Fixed Assets Interest received (IncreasellDecrease in stocks Decreasel{Increase) in debtors Decrease in creditors & pension liability provision 246,350 104,056 21,538 {134,124) (61) 24,392 (93,574) 844,756 93,286 (44,339) 5,188 (63,142) {294,767} Net cash generated from operating activities 168,577 540,982 Analysis of changes in net funds At 1 August 2023 At 31 July 2024 Cash flow Short term investment Cash in hand and at bank 2,541,837 1,201,271 426,129 (184,452) 2,967,966 1,016,819 3,743,108 241,677 3,984,785 The cash balance of £3.99m includes £565.2k (2023.. £550.1 k) cash relaling to student groups consisting of £389.3k Guild societies and sports clubs, £125.7k Medsoc funds and £50.2k 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.. Statemenl 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 IFRS102) and the Companies Act 2006. University of Birmingham Guild of Sludenls meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless olherwise stated in the relevant accounting policy note(s). JUDGEMENTS AND ESTIMATIONS Management has nol made any significant judgements and estimations in the process of applying the accounting policies eX￿pt for the revised estimation of the SUSS pension liability as detailed below within accounting policies (pensions) and within note 21. Pension deficit estimations included wilhin the 2023124 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 instrumersls are initially recognised at transaction value and subsequently measured at their settlemenl value. GOING CONCERN Since 2015116 (and restated for 2014115), the Guild has been required to report estimated future repayments into the SUSS pension deficit discounted to a nel present value. This has resulted in the Guild reporting a Net Liabilities position within the Balance Sheet since 2015116. The Gvild reported Net liabilities of £168.9k at 1 August 2023 although this had improved significantly in recent years. For 2023124, the Guild reports Nel Income of £246.3k shifting the Balance Sheet to Net Assets of £77.4k. The SUSS pension liabi5ity is repayable on an incremental basis over a thirteen-year period to 1 May 2037 and there is no reason to believe the Gdild 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 next triennial valuation of Ihe SUSS pension is June 2025 allhough early indicalions report a signrficantly improved position since the last valuation was completed as at June 2022. The Truslees have prepared detailed budgetary and cash flow information for the financial year 2024125 and robust financial & cash flow forecasts are also prepared for the five-year period to 31 July 2029. This enables Trustees to plan effectively for financial issues and capital inveslments during the planning period and this is reviewed, updated and extended by one year annually. In addition, Ihe Guild regularly reviews actual financial performance against budgeted performance throughout each financial year and makes decisions to manage the posilion. The Guild benefits from significant annual grant funding from University of Birmingham and this funding is reviewed twice per annum by both Guild and University represenlalives. In March 2022, the Guild and University approved a five-year funding agreement for the period 2022123 - 2026127 following a detailed review process conducted during 2019 - 2021. This has resulted in an increase to grant funding over the next five-year period to 2026127. The grant for 2024125 is budgeted to be £4.02m, represenling an increase of £104.8k compared to 2023124 core funding levels and this will also grow incrementally each year to 2026127. This excludes Page 24 University of Birmingham Guild of Students ACCOUNTING POLICIES additional funding receivable to deliver core services such as the Student Menlor Scheme, Wardens Scheme and Hall 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 £3.99m contributing lo total current assets of £4.53m as al 31 July 2024 and much lower short-term creditors of £917.3k. This enables the Guild to report nel current assets of £3.61 m as at 31 July 2024. The Guild is aclively trying to manage the economic difficulties arising from the current 'cosl of living, crisis and shift in student behaviours to manage 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 generate 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 slalements consolidate the results, assels 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 Direclor 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 ils expected useful life, as follows- Central and building refurbishments Equipment over 2 to 10 years - over 2 to 5 years 'Central and building, capital investmenl 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 donalions in the form of a block grant ffom the University and this is credited to the financial statements in respect of the period to which each grant relates. Donalions including grants receivable and other voluntary income are recognised where there is entitlement, certainty of receipt and the amount can be measured wilh sufficient reliability. Page 25 University of Birmingham Guild of Students ACCOUNTING POLICIES Income from Ihe sale of goods is recognised within income from charitable activities when all of the following conditions are satisfied.. the Guild has transferred the signrficanl risks and rewards of ownership to the buyer. the Guild retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. the amount of revenue can be measured reliably. it is probable that the Guild will receive the consideration due under the transaction. the costs incurred or to be incurred in respect of the transaction can be measured reliably. 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 aclivities 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 when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Olher grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable. Expenditure on raising funds are those costs incurred in attracting donations, and those incurred in trading activities that raise funds. Charitable activities include expenditure associated with student representation, student advice, support and community, student activities and employability and charitable trading and include both the direct costs and support costs relating to these activilies. Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and slatutory requirements. Support costs include central functions and have been allocaled to activity cost calegories on a basis consistent with the use of resources {see note (8) for further delailsj. 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 Ihe Students, Union Superannuation Scheme (SUSS), a defined benefit scheme which is externally funded and conlracted out of the State Second Pension. The fund is valued al least every three years by a professionally qualified independent acluary 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. Page 26 University of Birmingham Guild of Students ACCOUNTING POLICIES The Guild also participales in both the Nalional 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 contribulions paid during the year. INVESTMENTS Investments are stated at the original investment value. The Trustee Board value the 1000/0 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 sstuations 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 olher funds are unrestricted income funds. The Trustees inlend to use part of the unreslricted funds to finance building refurbishment plans and have sel up a designaled 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 2024 1 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDING 31 JULY 2023 Unrestricted Designated Funds Funds Restricted Funds Total 2023 INCOME Donalions Income from charitable aclivities Income from other trading activities Investment income Other Income 3,498,908 349,558 3,848,466 1,581,403 709,849 404,993 2,696,245 119,489 44,339 606,642 119,489 44,339 606,642 TOTAL INCOME 5,850,781 709,849 754,551 7,315,181 EXPENDITURE Expenditure on raising funds Expenditure on charitable activities 217,898 2,072 219,970 4.551,067 702,680 754,834 6,008,581 Pension Deficit charge 241,874 241,874 TOTAL EXPENDITURE 5,010,839 702,680 756,906 6,470,425 NET INCOMEI (EXPENDITURE) 839,942 7,169 (2,355) 844,756 Transfers between funds (496,957) 146,887 350,070 NET MOVEMENT IN FUNDS 342,985 1 $4,056 347,715 844,756 The slalement 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 2024 2 DONATIONS Unrestricled Designated Funds Funds Restricted Funds Tolal 2024 Total 2023 Grants receivable University Block grant Other Hall Reps 3,535,199 355,200 3,535,199 3,343,968 362,613 154,940 479,999 349,558 7,413 479,999 3,890,399 487,412 4,377,811 3,848,466 3 INCOME FROM CHARITABLE ACTIVITIES Unrestricted Designated Funds Funds Restricted Funds Total 2024 Total 2023 Student Representation (3) Student Advice, Support & Community 7,628 497,372 505,000 404,473 Student Activities & Employability (Incl. Student Groups) 7,218 828,969 21.692 857,879 719,186 Charitable Trading 1,691,225 1,691,225 1,572.589 1,706,071 828,969 519,064 3,054,104 2,696,245 4 INCOME FROM OTHER TRADING ACTIVITIES Unrestricted Designated Funds Funds Restricted Funds Total 2024 Total 2023 Exlernal trading income 84,042 84,042 119,489 84,042 84,042 119.489 Page 29 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 INVESTMENT INCOME Unrestricted Designated Funds Funds Restricted Funds Total 2024 Total 2023 Bank interest receivable 134,124 134,124 44,339 6 OTHER INCOME Unrestricted Designated Funds Funds Restricted Funds Total 2024 Total 2023 HMRC Reclaims 606,642 606,642 In 2022123, the Guild settled an ongoing VAT dispute with HMRC which resulted in net income of £606,642. £451,113 was received in 2022123, whilst £155,529 was reported as a debtor balance al 31st July 2023. The remaining balance was received in 2023124 financial year. EXPENDITURE ON RAISING FUNDS Unrestricted Designaled Restricted Funds Funds Funds Total 2024 Total 2023 External trading costs 29.075 29,075 27.373 29,075 29.075 27,373 Support Costs (Note 9) 201,047 201,047 192.597 230.122 230,122 219,970 Page 30 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 EXPENDITURE ON CHARITABLE ACTIVITIES Unrestricted Designaled Restricted Funds Funds Funds Total 2024 Total 2023 Student Representation: Direct cosls Officer Team Student Voice 269,847 288,234 269,847 288,234 233,273 265,249 Support costs {note g) 378,778 378,778 351,855 936.859 936,859 850,377 Student Advice, Support & Community: Direct costs Advice Not On Ambassadors Mentor Scheme Community Wardens 138,901 17,049 138,901 17,049 298,192 139,528 129,615 12,728 238,698 112,413 298,192 139,528 Support costs (note 9) 231,620 56,192 287,812 266,528 387,570 493,912 881,482 759,982 Student Activities & Employability: Direct costs Student Groups Dept, Hall Reps & Student Groups 559,119 797,378 343,706 1,700,203 1,431,349 Support costs (note 9) 905,209 61,025 966,234 902,776 1,464,328 797,378 404,731 2,666,437 2,334,125 Charitable trading: Direct costs 1.635,271 1,635,271 1.329,273 Support costs (note 9) 601,915 601,915 544,419 2,237,186 2.237.186 1,873,692 Page 31 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED) Unrestricted Designated Restricted Funds Funds Funds Total 2024 Total 2023 Governance Costs Audit Fees LegallProfessional Fees Other direct costs 11,000 33,505 13,731 11,000 33,505 13,731 10,500 12,791 22,419 Support costs (note 9) 146,564 146,564 144,695 204,800 204,800 190,405 Total Expenditure on Charitable Activities 5,230,743 797,378 898,643 6,926,764 6,008,S81 Page 32 ortsN Ln a) Cry CN O f£•cN Ln ￿ Ln (N Ln *OLn(DLn (Q r Ln o)fD N O) (3,710,476) (4,036,880) For Charity 204,912 3,533,832 {3,710,476) 28,268 Group Reslricted funds 2,153 617,523 619,676 Designated funds 34,329 1,467,650 1,501,979 General funds UOB Guild of Students UOB Guild - Pension Subsidiary undertaking(s) 143,430 1,775,063 1,918,493 (326,404) (3,710,476) (4,036,880) 74,145 74,145 For Group 179,912 3,607,977 {3,710,476) 77,413 The comparatives for the previous financial year are as follows- ANALYSIS OF NET LIABILITIES {2022123) Fixed assets and investments Provision for pension liabilities Net current assels Net liabilities Charity Restricted funds 4,033 507,810 511,843 Designated funds 27,626 1,364,037 1,391,663 General funds U08 Guild of Students UOB Guild - Pension 237,824 1,741,481 1,979,305 (310,858) (3,790,035) (4,100,893) For Charity 269,483 3,302,470 (3,790,035) (218,082) Page 44 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 ANALYSIS OF NET LIABILITIES (2022123) Fixed assets and investments Provision for pension liabilities Net current assets Net liabilities 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 UOB Guild - Pension Subsidiary undertaking{s) 212,824 1,741,481 1,954,305 (310,858) (3.790,035) (4,100,893} 74,145 74,145 For Group 244,483 3,376,615 (3.790,035) (168,937) 26 LEGAL STATUS The University of Birmingham Guild of Studenls incorporated as a company limited by guarantee on 4th July 2008, changing from its previous status as an unincorporaled association. In addition, the Guild of Sludents also registered as a Charily with the Charity Commission in August 2010. This was due to stijdents, unions connecled 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 charily 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.. University of Birmingharn Ms E Conway was appointed as both Ihe University Director of Finance (now Chief Financial Officer) and the Guild's University nominaled Trustee in July 2018. During the year, the Guild received income of £5.01m (2023.. £4.39m) and incurred expenditure of £753.6k (2023.. £722.4k). At 31 July 24, the Guild held a creditor balance of £187.2k (2023.. £166.3k) and a deblor balance of £101.7k {2023.' £67.2k). Page 45 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 28 OPERATING LEASE COMMITMENTS At 31 July 2024, the Guild had commitments under property leases and non-cancellable equipment operating leases (minimum lease payments) as set out below.. 2024 2023 Land & Buildings Lease which expire= Within 1 year Wilhin 2 - 5 years Over 5 years 178,432 356,864 172,915 345,829 535,296 518,744 Operating leases which expire: Within 1 year Within 2- 5 years Over 5 years 5,174 6,912 3,532 12,086 3,532 29 CAPITAL COMMITMENTS 2024 2023 Contracted but not provided for 48,290 17,962 30 SUBSCRIPTIONS AND AFFILIATIONS The Guild of Students paid the following memberships and affilialions during the year. They are listed in accordance with the requirements of the Education Act 1994. 2024 2023 Advice UK Limited Kings Ski Club NUS Services Limited National Union of Students National Centre for Voluntary Organisations - Free Wonkhe Subscriptions & Affiliations of £175 or less 290 435 380 37,500 276 37,500 4,510 375 4,330 306 43,490 42,412 Page 46 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 31 PENSIONS The Universily of Birmingham Guild of Studenls participates in Ihe 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 lo 30 September 2003 are accrued on a 'final salary, basis, with benefits in respect of service from 1 Oclober 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 recenl full valuation of the Scheme was carried out as at 30 June 2022 and showed that the markel value of the Scheme's assets was £106.7m with Ihese 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 valualion 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 Sl 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 /0 per annum under the previous 2019 repayment plan and this assumption remained unchanged within the updated plan arising from the June 2022 revaluation. Deficit contributions increased by 50/0 from 1 October 2023. These contributions also include an allowance for the cost of the ongoing administrative and operalional 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 Ihe year ended 31 July 2024 was £310,858 (2023.. £296,060). The Guild will be required to make pension deficit payments inlo SUSS totalling £326,404 during 2024125. In addilion 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. Contribulions into the NEST scheme are currently based upon 4.0 % of qualifying earnings also malched by employee contribitions, or enhanced 4 % or 6010 employer conlributions matched by individual employees. The total contributions paid into both NUSPS and NEST by the Guild in respect of eligible employees amounted to £92.372 {2023 £80,683). Al 31 July 2024, a balance of £14,127 was recorded as a Creditor within the Balance Sheet representing July 2024 pension contributions payable in August 2024 {2023.' £13.367). The estimated employer contributions for 2024125 financial year relating to NUSPS and NEST are £105,687. 32 CONTINGENT LIABILITY There are no contingent liabilities to report. Page 47 University of Birmingham Guild of Students NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2024 33 FINANCIAL PERFORMANCE OF THE CHARITY The charity reports Net Income of £246,350 for the year ended 31 July 2024 in comparison to Net Income of £844,756 reported for 2022123. The charity reports gross income of £7,617,307 for the year ended 31 July 2024 in comparison to gross income of £7,284,182 reported for 2022123. 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 Aclivilies in these financial statemenls. 34 EVENTS AFTER THE END OF THE REPORTING PERIOD No significant events have taken place since the Balance Sheet dale. Page 48