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2021-07-31-accounts

Company registration number: 07303101 Charity number: 1137811

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

ADMINSTRATIVE INFORMATION FOR THE YEAR ENDED 31 JULY 2021

Charitable Status

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

The company and the group is constituted under a Memorandum of Association and is a registered charity number 1137811.

University of Leicester Students’ Union also has internal regulations or Rules approved by the Board of Trustees and regulated by the governing body of the University of Leicester (the University) in accordance with 1994 Education Act and the Charity Commission.

Registered Address

University of Leicester Students’ Union, Percy Gee Building, University Road, Leicester, Leicestershire, LE1 7RH

Board Of Trustees

Executive Officer Trustees

M Nembhard (resigned 30 June 2021) T Magaia (resigned 19 June 2021) A Rahman (resigned 30 June 2021) E Phipps (resigned 30 June 2021) H Belcher (resigned 30 June 2021) K Wagener R Jenkins (appointed 1 July 2021) M Kanikanti (appointed 1 July 2021) N Farmer (appointed 1 July 2021) G Henton (appointed 1 July 2021) A Deeb (appointed 1 July 2021)

Student Trustee

E Westbrook (resigned 27 January 2021) J Lin (appointed 1 July 2021)

External Trustees

S Knowles D Moore S Murad A Bacon S Harris

Independent Auditor

RSM UK Audit LLP, Chartered Accountants, Rivermead House, 7 Lewis Court, Grove Park, Leicester, Leicestershire, LE19 1SD

Bankers

National Westminster Bank Plc, Granby Street, Leicester, LE1 9GT

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

STATEMENT BY THE CHAIR FOR THE YEAR ENDED 31 JULY 2021

As for most across the sector, this last year has been about recovery. At Leicester, there was not only the effects of COVID and lifting of restrictions to deal with, but a vote of no confidence in the University and a relationship with a key stakeholder to rebuild. Due to a cut in our grant funding, we also had to internally restructure and learn to deliver the same output with a reduced working force, while always ensuring the student experience wasn’t impacted.

The aim of this report is to share our achievements in the present, especially under the extreme circumstances, and our aims for the future. While our strategic plan is redesigned for the next five years, we can reflect on where our previous one led us and use its successes to steer us towards even greater engagement and impact with the student body.

The financial period saw a great saving on the predicted deficit, ensuring we did not have to rely on our reserves as much as previously thought. While it did lead to an unfortunate restructuring of the staffing structure that affected morale and workload, we are confident as a Union that we have recovered and are very pleased with our recruitment drive which has seen vacant posts filled by enthusiastic and valuesharing individuals.

One of those filled posts was our Business Development Lead, who has already overseen several commercially successful and profit building fairs, with views to make these staples of the Union calendar going forwards. The work being done in this role is vital to supporting our students as it increases our revenue streams and financial independence, enabling us to offer more for the student body. It brings a lot exciting opportunities to the horizon, for us to grow our revenue but also to improve our relationship with the Leicester community and local business.

The restructure meant we looked closely at our internal structures, allowing us to optimise our efficiency and strengthen our focus on key areas for students. Going forwards we will look to develop a service model that continues this focused approach and streamlines our planning processes over the summer period.

Despite the challenges that we – as a sector and a standalone Union – have faced, as Chair, I feel that we are coming out of the other side, re-energised and with even more determination to deliver the best possible student experience and amplify our students’ voices across campaigns, support and societies.

Rhiannon Jenkins

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT FOR THE YEAR ENDED 31 JULY 2021

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of University of Leicester Students’ Union (ULSU) (the company) for the year ended 31 July 2021. The Trustees confirm that the Annual Report and financial statements of the company and the group comply with the current statutory requirements, the requirements of the company and the group’s governing document and the provisions of the Statement of Recommended Practice, Charities SORP (FRS 102), “Accounting and Reporting by Charities” effective 1 January 2019.

The Annual Report and Trustees’ Report serves the purposes of both a Trustees’ Report and a Directors’ Report under company law.

Structure, Governance & Management

ULSU’s charitable objects are:

The advancement of education of Students at the University for the Public Benefit by:

ULSU is administered by its Board of Trustees of up to six students elected annually by cross campus secret ballot of the ULSU membership (and are full time, or ‘sabbatical’, posts remunerated as authorised by the 1994 Education Act and cannot exceed two years duration for each holder); up to five external trustees appointed for up to eight years (two terms of up to four years) by an appointments panel, and a student that is appointed by the appointments panel, and has no employment in any capacity with the Union.

The Board of Trustees meets at least four times a year to receive reports from individual Officers, subcommittees and the Chief Executive, to review the charity’s performance and administration generally and to decide policy issues arising.

All the charity trustees receive an induction into their legal and administrative responsibilities, receiving the essential trustee guidance from the Charity Commission. Access to additional training is also provided throughout the year.

The Student Executive Officers are new to the Board every year, so they undergo a more intensive training period. The training starts during a handover period, immediately prior to them fully assuming office. This aims to ensure they are fully aware of their roles and responsibilities and can perform their duties to the best of their ability.

The Board of Trustees is assisted by three sub-committees, which focus on certain key aspects of ULSU’s governance and management:

The Finance & Audit Committee monitors ULSU’s financial performance, appraises requests for capital expenditure and reviews our commercial performance. The Committee also reviews the annual budget, scrutinises the annual accounts and meets with external auditors.

The Remuneration & HR Committee examines issues relating to ULSU employees, including staff policies, changes to pay and matters relating to employee wellbeing.

The Risk Management Committee monitors ULSU’s risk profile, risk management, compliance with relevant legislation and scrutinises progress in tackling identified areas of risk on the organisation’s risk register

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Structure, Governance & Management (continued)

ULSU operates on democratic principles, with policy being acted upon by the six selected trustees who form the Executive Committee. During the year, members have the opportunity to bring forward ideas through Union Council or our three networks to drive student-led change. Networks are based on principles of deliberative and direct democracy. The Union’s Student Ideas system also creates simple and direct opportunities for students to suggest change ideas to Union Council. Union Council also have the ability to call an all-student referendum on matters of wider importance, where required.

The Senior Leadership Team

The University of Leicester Students’ Union employs a Chief Executive, Gareth Oughton, who works closely with the Student Executive Officers and Trustee Board to ensure effective management of the organisation. The Chief Executive is supported by Ambalavanar Kumaran, as Director of Membership Services.

The Strategic Leadership Team, made up of the Union’s Managers, meets monthly to oversee the Union’s regular activities. ULSU also employs a number of non-student full time staff to manage and administer its activities. These staff members are accountable to the Chief Executive for the performance of their duties.

Senior Staff Pay Policy

Remuneration & HR sub-committee will review pay across the organisation on an annual basis. Salary increases are at the discretion of the Union and are not a guaranteed outcome of the annual review process. Senior staff will receive the same annual pay increase as all other staff.

Relationship with University of Leicester

The relationship between the University and ULSU is established in the Regulations of the University and detailed in ULSU Rules approved by both organisations. ULSU receives a Block Grant from the University, and leases most of the Percy Gee Building owned by the University, which also pays for utilities. This non-monetary support is intrinsic to the relationship between the University and ULSU. An estimated value to ULSU for this free serviced accommodation has been included in the accounts, valued at £229,440

Until the end of the 2020/21 Students’ Union has been in a joint commercial partnership with the University, known as Leicester Services Partnership. With the partnership continuing to make significant financial losses, it was agreed by both shareholders to end the partnership in time for the 21/22 financial year and for the University to take the liability on rather than it be shared with the Students’ Union. This five-year period saw the Union compensated £275,000 per annum for services given to the partnership, which were profitable for the Union at the point of transfer. The end of this £275,000 annual payment has necessitated the Union review the affordability of its operations from the 2021/22 year. The Students’ Union continues to generate supplementary funding from some trading activities such as Fresher’s, Graduation and NUS card sales

Due to continuing financial pressures faced by the University, the Union is working to temporary restrictions on its core grant. A commitment to restore funding to comparable levels of 2019/20 is in place, with a view to this resuming in 2023-24. Whilst the funding is temporarily reduced, there is no reason to believe that substantial financial 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.

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Risk Management

There are a number of significant risks affecting the Union. The greatest of which are the organisation’s reliance on the University for income and the health of that relationship in the event of future unconstructive tension between the Union and parent institution. This has been brought into focus earlier in 2021, with students utilising democratic mechanisms of the Union to state their lack of confidence in the University management. Steps to better codify the working relationship between the Union and University are intended to help navigate future challenges that might arise.

The University’s own financial challenges have hit the Union’s grant, in turn having a profound impact on our financial position over a three-year period. Assurances over a grant formula for the future have been received by trustees, with financial planning undertaken by the Union based on these figures. Steps to reduce the reliance on University income are in place, with the Union expanding its’ staff team to accommodate a Business Development Manager from autumn 2021 onwards, who will be tasked with boosting existing Union-generated income streams and identifying new income streams.

The Trustees consider a significant source of financial risk to be that of the funding requirements of the Students’ Union Superannuation Scheme. In order to mitigate this risk, the current and foreseeable service cost is monitored and periodic actuarial valuations are reviewed to assess the impact of external factors on the scheme liability.

Other key risks on the register include the Union’s representative legitimacy with election turnout falling in 20-21, the future viability of the joint trading company with the University and continuity within the board given the annual turnover of student members.

A regularly updated risk register reflecting these areas and others is received and discussed at each board meeting.

Aims, Objectives & Activities

Our purpose is clear in our constitution, “The Union is devoted to the educational interests and welfare of its Members” and will seek at all times to:

The Students’ Union operates with a clear mission to be an empowering and inclusive organisation, championing students’ interests and providing a home away from home.

We are the sole representative organisation for the students of the University of Leicester and we recognise that our members rely on us to represent the matters that are most important to them, to the University and to other external stakeholders. We play a key role in how students learn, develop and grow whilst at University. Each of our departments has a key role to play in this journey, overseen by elected student representatives who help shape and direct our priorities.

The values that form the core of our organisation are:

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Aims, Objectives & Activities (continued)

The Board of Trustees has focused its current activities on developing an exceptional student experience, in line with its constitutional objectives. The Union’s current vision is “By 2021/22, we will be an active and inclusive Union with a powerful student-led voice; delivering meaningful change for you across your Leicester experience.”

In pursuit of these objectives, ULSU has established departments and services for use by its members and to support its work with the University and other organisations on behalf of students. These include a Student Voice team, to facilitate representative and campaigning functions, a Support team to deliver advice and mentoring services and an Opportunities team to deliver exceptional experiences for students in sport, society activities, volunteering and fundraising. Officer Trustees of ULSU sit on key University Committees and meet with local decision makers regarding local matters affecting students.

ULSU’s commitment to its members is to place them at the heart of change and decision making within the organisation, listening to ideas and driving improvement to our services.

A review of the Union’s future strategic direction is underway following a pause during the pandemic, to assess what students’ needs of us would be after the initial phases of the Covid pandemic.

Review of Activities

The Union operates around three key strategic areas of activity:

These three priorities are underpinned by three supporting enablers:

Our Vision Our Vision Our Vision
By 2021/22, we will be an active and inclusive Union with a powerful student-led voice; delivering
meaningful change for students across their Leicester experience.
Our Goals By 2021/22
Voice Opportunities Support
We will ensure students have
easy to access systems to
capture their ideas to drive
change across all areas of the
Union and University		 We
will
offer
accessible
activities to students that allow
them to try new things and
empower the development of
skills for their future		 We will provide empowering
information
and
reactive
support to enable students to
proactively manage their lives

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Review of Activities (continued)

Our Supporting Priorities
Communication Spaces Partnerships
We will understand the needs
of our students and present our
work clearly to ensure all
students know what we do		 We will ensure our physical
spaces are of the highest
quality, whilst enhancing virtual
platforms to
enable
easy
access to services		 We will build relations with
partners based on principles of
collaboration
and
healthy
challenge to meet their needs

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Review of Activities (continued)

A program of work was identified to run between 2018-2021 to facilitate delivery of the above. These plans were set prior to the onset of the pandemic in March 2020, hampering year-end delivery in terms two and three of 2019-20 and for the entirety of 2020/21. As such, targets on course for 2021 completion in Voice, Opportunities and Spaces were missed – and targets for Support and Partnerships were not begun. Targets for Communication were achieved by 2019.

As a result, efforts in 2020/21 focused towards short-term responses by way of a Covid delivery plan. This plan was presented by the Students’ Union to the University as our major funder, outlining the headline deliverables we would focus on delivering during the 20/21 year. In this plan, we identified a series of key service adaptions and projects that would be key to our delivery in the year ahead. We are proud to say all of the committed actions were delivered, whilst also learning to adjust to a digital environment with a very small and overstretched staff base.

The following provides an overview of service delivery in 2020/21 within each of the priority themes.

Voice

The primary aim of Voice in 2020-21 was reimagining how to capture the student voice effectively and reflecting on how best to represent our members needs’ in an educational landscape that fundamentally changed how students were taught and how they engaged with the with their wider University experience.

As with Students’ Unions across the sector, engagement in democratic processes fell in many areas over the course of the year. However, a number of noteworthy successes were achieved and a number of important projects were initiated, leading to positive impact in the student community:

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Review of Activities (continued)

Voice (continued)

As we the area looks towards 21/22 and beyond, work was begun in collaboration with students and stakeholders on a top-to-bottom review of our student voice structures. The aspiration of these changes is to further strengthen the representative structures and drive increased democratic engagement.

Opportunities

With the pandemic restricting the way in which all our 230 student groups run their activities, significant time and effort was spent in year maintaining accessibility to what could take place; as well as helping student leaders reimagine social activity in a virtual environment. As the academic year progressed, engagement with activity noticeably declined, as students became increasingly digitally exhausted. Departmental focus shifted at this point towards the adaption of structures to enable student groups struggling for future leadership to be able to continue into the new year.

Despite the challenges posed to student opportunities by the pandemic, a number of noteworthy successes were achieved and a number of important projects were initiated. These include:

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Review of Activities (continued)

Opportunities (continued)

In addition, some of our student-led activities provided through our opportunities raised significant funds for national and local charities through the pandemic. Organisations who benefitted from these funds included:

Support

The pandemic necessitated a significant adaption from the support functions of the Union, to ensure all services were fully accessible remotely for students adjusting to learning in a new climate. Concerns regarding value for money in education and housing led to increased caseload for the Advice Service, whilst our student peer mentors found themselves trying to guide their mentees through an experience they themselves were learning to navigate. Additional mental health clinics were introduced to help students struggling with the effects of the pandemic and a wide range of self-development sessions were run digitally to assist students upskill themselves around their studies.

Despite the challenges posed through service adaption and caseload increases, a number of noteworthy successes were achieved and a number of important projects were initiated by the support function in year. These include:

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Review of Activities (continued)

Support (continued)

Future Plans

A series of emerging challenges for each of our student-facing priority themes have been set for the year ahead, along with a series of service KPIs.

Support – Challenges Requiring Response

Support – 2021/22 KPIs

Opportunities – Challenges Requiring Response

Opportunities – 2021/22 KPIs

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Future Plans (continued)

Voice – Challenges Requiring Response

Voice – 2021/22 KPIs

In addition, a series of collaborative priorities from our officer trustees have been presented to the University Executive Board, in the following areas:

Financial Review

ULSU’s gross income from all sources this year totalled £1,695,205 (2020: £2,452,813). Total expenditure was £1,922,325 (2020: £2,556,952) resulting in a deficit for the year of £227,120 (2020: £104,139), reducing ULSU’s total reserves to £747,228 (2020: £974,348).

Whilst the Union has continued to benefit from the recognition and support of the University, the annual block grant decreased to £809,685 (2020: £1,012,103) because of financial challenges posed to the University by the pandemic. In addition to this, the Union received other grants from the University of £301,658 (2020: £477,475).

The Union his required to recognise the net present value of future contributions required to eliminate the shortfall estimated with respect to Union participation in the Students’ Union Superannuation Scheme. This has resulted in a liability being recognised in the balance sheet at 31 July 2021 of £1,897,307 (2020: £1,899,776) and this has resulted in a charge to the Statement of Financial Activities in the year of £358,468 (2020: £331,169).

The Union’s trading subsidiary generated a trading surplus of £12,537 (2020: £29,082 surplus) which is gift aided to the Union.

The Board of Trustees approved a deficit budget for the 2020/21 year, in order to ensure the Union could respond to a variety of possible scenarios posed by the pandemic and in order to ensure students received as much support from the charity as possible during a challenging academic year. At the time of planning, former levels of grant funding from the University seemed likely to return in time for 2021/22. Prudent expenditure controls in year managed the deficit as far as possible, reducing losses to those initially anticipated.

The University of Leicester Students’ Union Trading Ltd holds a 50% ownership in Student Union Lettings Limited. The company is registered as a charitable company limited by guarantee. 50% of the net income and assets of the company have been included in these financial statements.

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Financial Statements

The financial statements for the year ended 31 July 2021 are set out on pages 20-45. These were prepared applying the Accounting Policies set out on page 24-28.

Investment Policies

The Union aims to generate returns on the cash it holds in the bank at any given point. The purpose is to yield the best financial return within the level of risk considered acceptable - this return can then be spent on the charity’s aims.

Delivery of our core services is met through the block grant funding received from the University, the commercial grant and any commercial partnerships in return for access to our members. Income generated on any invested reserves should not required to support ongoing core activities of the Union.

The level of risk must always be identified and must fall within the acceptable levels stated by the Finance & Audit sub-committee. Investment risk should also be reduced by ensuring that the savings are diversified.

Before any funds are invested the Finance Manager must prepare a cash flow to ensure that the Union has enough cash to meet its working capital requirements. Any funds not required in the short term may then be invested short-term deposits and any funds not needed in the medium-long term can then be invested wisely in longer-term investments to generate a greater yield. Funds not needed for short term operational needs can be deposited with reputable institutions, provided that the agreed risk ratings and limits are adhered to. Deposits should always be split between UK based institutions with different banking licenses, to reduce the risk from institutional failure.

Where possible the Union seeks to diversify short-term deposits across different banking licenses, to reduce the exposure of the reserves from the failure of any one bank. The total deposits placed in an institution must not exceed £75,000, without the full knowledge of the Finance & Audit Committee.

In order to generate a greater return, funds not required in the short term may be invested in longer term deposits which offer a higher yield. Funds may also be invested in other financial products, considered to be low risk and offered by regulated and reputable institutions.

It is important that the Union can gain access to its funds, should some urgent need arise; therefore investment products used must allow for fund withdrawals that cover a wide range of timescales in order to enable this.

Union policies precluding investments in certain organisations would be taken into account, when considering investments.

Funds & Reserves

The Union aims to hold 6 months wages in free reserves £459,462 (2020: £448,475), in addition to £25,129 operating costs in the current year. This would enable an orderly winding down of the organisation in the event it was necessary.

The Board of Trustees have agreed to hold £275,000 to protect the charity regarding the Leicester Services commercial grant. All remaining free reserves are held as a designated fund for capital and strategic projects to transform the student experience. Up to £134,825 of these funds have been designated to underwrite anticipated losses in the 2021/22 financial year, with a further £56,000 identified for one-off restructuring costs.

Auditor

RSM UK Audit LLP have indicated their willingness to be reappointed for another term. In accordance with the Companies Act 2006 a resolution proposing the reappointment of RSM Audit LLP as Auditor will be put to the members.

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UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

TRUSTEE’S REPORT (continued) FOR THE YEAR ENDED 31 JULY 2021

Going Concern

After making appropriate enquiries, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

The Board of Trustees confirms that ULSU has sufficient funds to meet all its obligations. The Block Grant for 2021/22 has been confirmed at £900,000.

Trustees’ Responsibilities Statement

The Trustees (who are also directors of University of Leicester Students’ Union 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).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 adequate accounting records that are sufficient to show and explain the charitable company and the group’s transactions and disclose the reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of Disclosure to Auditor

So far as each Trustee is aware, there is no relevant audit information of which the charitable group’s auditor is unaware. Additionally, each Trustee has taken all the necessary steps that they ought to have taken as a Trustee in order to make themselves aware of all relevant audit information needed and to establish that the charitable group’s auditor is aware of that information.

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by Section 415A of the Companies Act 2006.

This report was approved by the Board of Trustees on and signed on their behalf 11 April 2022 by:

R Jenkins Trustee

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF LEICESTER STUDENTS’ UNION

Opinion

We have audited the financial statements of University of Leicester Students’ Union (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 July 2021 which comprise the group statement of financial activities incorporating income and expenditure account, the group and company balance sheets, the group 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 FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of opinion

We have been appointed auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section to our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees Report, other than the financial statements and our Auditor’s Report thereon. The trustees are responsible for the other information contained within the Trustees 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. 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.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF LEICESTER STUDENTS’ UNION (continued)

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 our knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 15, 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’s and the parent charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF LEICESTER STUDENTS’ UNION (continued)

The extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the parent charitable company’s governing document and tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from internal/external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to employment regulations, Equality Act 2010, GDPR and data protection act, and health and safety regulations. We performed audit procedures to inquire of management whether the group is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

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. The description forms part of our Auditor’s report.

Page 18

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF UNIVERSITY OF LEICESTER STUDENTS’ UNION (continued)

Use of our report

This report is made solely to the charitable company’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 charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Gareth Jones (Senior Statutory Auditor) For and on behalf of RSM UK Audit LLP, Statutory Auditor Chartered Accountants Rivermead House 7 Lewis Court Grove Park Leicester Leicestershire LE19 1SD

19/04/2022 Date: ______

Page 19

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

GROUP STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
INCOME FROM:
Donations and legacies
2
1,351,993
82,794
Charitable activities
-
109,079
Other trading activities
3
38,364
-
Investments:
4
Share of joint venture net income
103,279
-
Interest received
1,366
-
Other income
8,330
-
___
__
TOTAL INCOME
1,503,332
191,873
_
_
EXPENDITURE ON:
Raising funds
27,827
-
Charities activities
1,720,028
174,470
_
_
TOTAL EXPENDITURE
5
1,747,855
174,470
_
_
NET INCOME/EXPENDITURE
(244,523)
17,403
_
_
NET MOVEMENT IN FUNDS
16
(244,523)
17,403
RECONCILIATION OF FUNDS:
Total funds brought forward
16
723,331
251,017
_
_
TOTAL FUNDS CARRIED FORWARD16
478,808
268,420
_
____		 Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
INCOME FROM:
Donations and legacies
2
1,351,993
82,794
Charitable activities
-
109,079
Other trading activities
3
38,364
-
Investments:
4
Share of joint venture net income
103,279
-
Interest received
1,366
-
Other income
8,330
-
___
__
TOTAL INCOME
1,503,332
191,873
_
_
EXPENDITURE ON:
Raising funds
27,827
-
Charities activities
1,720,028
174,470
_
_
TOTAL EXPENDITURE
5
1,747,855
174,470
_
_
NET INCOME/EXPENDITURE
(244,523)
17,403
_
_
NET MOVEMENT IN FUNDS
16
(244,523)
17,403
RECONCILIATION OF FUNDS:
Total funds brought forward
16
723,331
251,017
_
_
TOTAL FUNDS CARRIED FORWARD16
478,808
268,420
_
____		 Total
Total
funds
funds
2021
2020
£
£
1,434,787
1,812,027

109,079
368,380

38,364
175,291

103,279
86,466

1,366
9,631

8,330
1,018
___
__
1,695,205
2,452,813
_
_

27,827
146,209
1,894,498
2,410,743
_
_
1,922,325
2,556,952
_
_

(227,120)
(104,139)
_
_

(227,120)
(104,139)

974,348
1,078,487
_
_

747,228
974,348
_
____
___
-
174,470
__
174,470
_
17,403
_
17,403
251,017
_
268,420
____

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing operations.

Details of the comparative group statement of financial activities are included in note 22.

Page 20

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

GROUP BALANCE SHEET
FOR THE YEAR ENDED31 JULY 2021 **Company registration number 07303101 **
2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 30,977 63,754
Investments in joint ventures
- Share of gross assets 841,015 705,422
- Share of gross liabilities (86,065) (53,751)
______ ______
Share of net assets 11 754,950 651,671
Investments in associates 11 - -
______ ______
785,927 715,425
CURRENT ASSETS
Stocks 13 78 78
Debtors 14 34,051 49,340
Cash at bank and in hand 1,897,937 2,268,400
______ ______
1,932,066 2,317,818
CREDITORS:amounts falling due within
one year 15 (73,458) (159,119)
______ ______
NET CURRENT ASSETS 1,858,608 2,158,699
______ ______
TOTAL ASSETS LESS CURRENT LIABILITIES 2,644,535 2,874,124
Defined pension scheme liability 19 (1,897,307) (1,899,776)
______ ______
NET ASSETS 747,228 974,348
______ ______
THE FUNDS OF THE CHARITY
Restricted funds 16 268,420 251,017
______ ______
Unrestricted funds 16
General funds 1,200,516 1,125,275
Designated funds 1,175,599 1,497,832
Pension reserve (1,897,307) (1,899,776)
______ ______
478,808 723,331
______ ______
TOTAL CHARITY FUNDS 747,228 974,348
______ ______

The financial statements on pages 20 to 45 were approved and authorised for issue by the Board of Trustees on and signed on their behalf, by: 11 April 2022

R Jenkins Trustee

Page 21

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

COMPANY BALANCE SHEET
FOR THE YEAR ENDED31 JULY 2021 **Company registration number 07303101 **
2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 30,977 63,754
Investments 11 2 2
Investments in associates 11 100 100
______ ______
31,079 63,856
CURRENT ASSETS
Stocks 13 78 78
Debtors 14 33,745 33,087
Cash at bank 1,897,937 2,268,400
______ ______
1,931,760 2,301,565
CREDITORS:amounts falling due within
one year 15 (73,154) (142,868)
______ ______
NET CURRENT ASSETS 1,858,606 2,158,697
______ ______
TOTAL ASSETS LESS CURRENT LIABILITIES 1,889,685 2,222,553
Defined pension scheme liability 19 (1,897,307) (1,899,776)
______ ______
NET (LIABILITIES)/ASSETS (7,622) 322,777
______ ______
THE FUNDS OF THE CHARITY
Restricted funds 16 268,420 251,017
______ ______
Unrestricted funds 16
General funds 445,666 473,704
Designated funds 1,175,599 1,497,832
Pension reserve (1,897,307) (1,899,776)
______ ______
(276,042) 71,760
______ ______
TOTAL CHARITY FUNDS (7,622) 322,777
______ ______

As permitted by S408 Companies Act 2006, the charitable company has not presented its own statement of financial activities and related notes as it prepared group accounts. The charitable company’s deficit for the year was £(330,399) (2020 : £(190,605)).

The financial statements on pages 20 to 45 approved and authorised for issue by the Board of Trustees on and signed on their behalf, by: 11 April 2022

R Jenkins Trustee

Page 22

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021

Note
Cash flows (to)/from operating activities
Net cash (used in)/provided by operating activities
18
Cash flows from investing activities:
Interest received
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 2021
2020
£
£
(371,829)
279,068
__
_
1,366
9,631
-
(22,727)_
_
_
1,366
(13,096)
__
_
(370,463)
265,972
2,268,400
2,002,428
_
__
1,897,937
2,268,400
_
___

Page 23

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES

Charity information

University of Leicester Students’ Union is a private incorporated charitable company (company register number 07303101) limited by guarantee, incorporated in England and Wales. Its registered office and principal place of business is Universiy of Leicester Students’ Union, Percy Gee Building, University Road, Leicester, Leicestershire, LE1 7RH. The charitable company is also registered at the Charity Commission with a charity number of 1137811.

The main aims of the University of Leicester Students’ Union are the advancement of the students at the university for the public benefit.

Basis of preparation of financial statements Accounting convention

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 (FRS 102) (Charities SORP (FRS102)) (effective 1 January 2019) the Financial Reporting Standard applicable in the UK and Republic of Ireland including adoption of the amendments issued in December 2017 (FRS 102) and the requirement of Company’s Act 2016.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

University of Leicester Students’ Union meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

In accordance with FRS 102, the charitable company has taken advantage of the exemptions from the following disclosure requirements:

The financial statements of the charitable company are consolidated in these financial statements of University of Leicester Students’ Union and these financial statements are available from the registered office.

Basis of consolidation

The Statement of Financial Activities and Balance Sheet consolidate the financial statements of the charitable company and its subsidiary undertaking. The results are consolidated on a line by line basis, all intra-group transactions and balances with the subsidiary are eliminated on consolidation. Joint ventures and associates are stated at the group’s share of net assets, to the extent this is not impaired, and the group’s share of the net share of the profits or losses of the joint ventures and associates is included in the Statement of Financial Activities using the equity accounting basis. All the financial statements are made up to 31 July 2021.

No separate Statement of Financial Activities has been presented for the charitable company alone as permitted by section 408 of the Companies Act 2006 as it prepares group accounts and the charitable company’s individual balance sheet shows the charitable company’s net movement in funds in the financial year.

Page 24

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES (continued)

Going concern

As a result of the Covid-19 pandemic the Students’ Union has continued on a phased business continuity plan to help prepare and respond to the changing environment. Whilst assurances have been received from the main funders there is still uncertainty around the exact quantum of funding that will be available and income streams continue to be impacted. For this reason, the charity has prepared forecasts for at least one year from the date of approval of the accounts looking at how a fall in block grant funding and other income streams will impact the Students’ Union. These forecasts are based on known information at the time of compiling and will be monitored and modified on an ongoing basis. Based on this and the available cash reserves, the trustees consider that the group has adequate funds and sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of the accounts. The trustees also consider that its anticipated future objectives can be met and have therefore prepared the financial statements on the going concern basis.

Company status

The charitable company is limited by guarantee. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

Funding accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objective of the charitable company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donated services or facilities are recognised when the charitable company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charitable company which is the amount the charitable company would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the Bank.

Grants

The recurrent block grant is receivable from the University of Leicester. The grant is credited to the income and expenditure account in the year to which it relates.

Project support grants are project based and include grants which are receivable from the University of Leicester and other funding bodies.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grant will be received.

Page 25

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES (continued)

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity.

Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs (including governance costs) which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the assets use.

Tangible fixed assets and depreciation

Tangible fixed assets are initially recorded at cost and subsequently measured at cost, net of depreciation and any provision for impairment. Tangible fixed assets costing more than £1,000 are capitalised and all other expenditure is charged to the statement of financial activities in the year incurred.

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures and equipment - 20% - 33% of cost

Investments

The charitable company’s fixed asset investments are valued at cost which is the Trustees’ best estimate of fair value, as these assets are not readily saleable and a reliable market value is not readily ascertainable.

Impairment of fixed assets

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the charitable company estimates the recoverable amount of the asset.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairment losses are recognised in statement of financial activities.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in statement of financial activities. On reversal of an impairment loss, the depreciation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

Page 26

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES (continued)

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials.

At each reporting date, the charitable company assesses whether stocks are impaired or if any impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in statement of financial activities.

Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments and are not considered to be of a financial nature. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Trade and other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade and other debtors and amounts owed by group undertakings are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Cash and cash equivalents

Cash and cash equivalents includes cash and monies on short-term deposits at the bank and other short-term liquid investments with original maturities of three months or less.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Pensions

The Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit pension 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 accruing on a Career Average Revalued Earnings (CARE) basis. With effect form 30 September 2011 the Scheme closed to future accrual. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. However, the Union has entered into an arrangement to clear the scheme deficit over a 20 year period. The Net Present Value of the Union’s contributions as part of this plan are reflected as a liability on the balance sheet, which will reduce as they are paid.

The charitable company also contributes to the NUS Aegon Pension Scheme and the government approved NEST scheme. The annual contributions payable are charged to the statement of financial activities.

Taxation

No provision for corporation tax has been made as the charitable company is exempt from corporation tax on its income and gains to the extent that these are applied to its charitable activities. The non-charitable subsidiaries will be subject to Corporation Tax on any profits not gift aided to the charitable parent within 9 months of the balance sheet date.

Page 27

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

1. ACCOUNTING POLICIES (continued)

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Critical accounting estimates and areas and judgement

The charity makes estimates and assumptions concerning the future and acknowledges that the resulting accounting estimates and assumptions will, by definition, seldom equal to related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Under FRS 102, the fair value of the commitment is recognised. The calculation of the fair value of the commitment is subject to an assumption of the discount rate. This discount rate is determined by reference to market yields at the reporting date on high quality corporate bonds. The commitment included in the balance sheet at the balance sheet date is £1,897,307 (2020: £1,899,776).

2. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and University Grants
1,111,343
-
Grant of serviced accommodation
229,440
-
Peer mentoring funds restricted income
-
48,000
Sports grant
-
34,794
Drink Aware
-
-
RFU development restricted income
-
-
Job retention scheme grants
11,210
-
__
_
Total donations and legacies
1,351,993
82,794
___
______		 Total
Total
funds
funds
2021
2020
£
£
1,111,343
1,490,768
229,440
180,129
48,000
48,000
34,794
36,294
-
11,582
-
2,715
11,210
42,539
__
_
1,434,787
1,812,027
___
______

Page 28

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

3. OTHER TRADING ACTIVITIES

The University of Leicester Student’s Union owns 100% of the issued share capital of its subsidiary, University of Leicester Students’ Union Trading Ltd, a company which is incorporated in England and Wales (company number 02821506). The registered office of University of Leicester Students’ Union Trading Ltd is the same as University of Leicester Student’s Union. The subsidiary participates in trading activities relating to the charitable company. Its taxable profits are donated to the charitable company. A summary of the subsidiary’s results which are consolidated in these financial statements is shown below:

Statement of income
Turnover
Cost of sales
Gross profit
Administrative expenses
Other operating income
(Loss)/profit before and after taxation for the financial year
Distribution to parent charity under gift aid
Result for the financial year		 2021
2020
£
£
38,364
175,291
(781)
(74,745)
__
_
37,583
100,546
(27,046)
(71,464)
2,000
-
_
__
12,537
29,082
(12,537)
(29,082)
_
_
-
-
__
____

The net assets of University of Leicester Students’ Union Trading Ltd at 31 July 2021 amounts to £2 (2020: £2 net assets), being current assets of £14,954 (2020: £33,271) less creditors within one year of £14,952 (2020: £33,269).

4.
INCOME FROM INVESTMENTS
Unrestricted
funds
2021
£
Share of joint venture net income
103,279
Bank interest received
1,366
__
104,645
____		 Total
Total
funds
funds
2021
2020
£
£
103,279
86,466
1,366
9,631
__
_
104,645
96,097
___
______

Page 29

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

5. ANALYSIS OF EXPENDITURE BY EXPENDITURE TYPE

Staff Costs Staff Costs Depreciation Other Costs Total Total
2021 2021 2021 2021 2020
£ £ £ £ £
University of Leicester
Students’Union Trading Ltd
15,667		 - 12,160 27,827 146,209
______ ______ ______ ______ ______
Costs of raising funds 15,667 - 12,160 27,827 146,209
______ ______ ______ ______ ______
Education & representation 367,352 8,359 225,407 601,118 682,630
Welfare 78,003 5,107 127,920 211,030 238,484
Campaigns and
Communications 104,117 6,734 158,314 269,165 293,224
Societies & clubs 267,350 12,328 408,160 687,838 1,028,319
Sports grant - - 34,794 34,794 36,294
Peer mentoring 42,144 - 426 42,570 61,482
Training 44,290 - 3,693 47,983 57,255
Drink Aware - - - - 13,055
______ ______ ______ ______ ______
Costs of charitable
activities 903,256 32,528 958,714 1,894,498 2,410,743
______ ______ ______ ______ ______
918,923 32,528 970,874 1,922,325 2,556,952
______ ______ ______ ______ ______

Page 30

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

6. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Certain central overhead support costs have been reallocated to the various activities as noted in the accounting policies. The effect of this reallocation on the various expenditure heading is shown here:

Activities
undertaken
directly
2021
£
Education & representation
341,466
Welfare
5,464
Campaigns and communications
-
Societies & clubs
114,041
Sports grant
34,794
Peer mentoring
42,570
Training
47,983
Drink Aware
-
__
Total
586,318
____
Support costs comprised:-
Staff costs
Depreciation
Rent
Insurances
NUS Subscription
Bad debts
Pension Scheme Funding
Marketing costs
Stationery and telephone
General building repairs and cleaning
Bank charges
Other support costs
Loss on disposal of fixed assets
Total		 Support
costs
2021
£
259,652
205,566
269,165
573,797
-
-
-
-
__
1,308,180
____		 Total
Total
2021
2020
£
£
601,118
682,630
211,030
238,484
269,165
293,224
687,838 1,028,319
34,794
36,294
42,570
61,482
47,983
57,255
-
13,055
__
_
1,894,498 2,410,743
_
__
2021
2020
£
£
506,584
534,612
32,528
43,835
229,440
180,129
14,609
17,132
25,303
36,341
-
69
358,468
331,169
8,065
15,314
2,756
1,556
4,551
127,901
1,932
3,026
123,695
119,413
249
-
_
_
1,308,180 1,410,497
__
____

Page 31

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

7. NET INCOME/(EXPENDITURE)

This is stated after charging 2021 2020
£ £
Depreciation of tangible fixed assets:
- owned by the charitable group 32,528 43,835

Fees payable to RSM UK Audit LLP and its associates in respect of both audit and non-audit services as are follows:

8.

Audit services – statutory audit of charitable company
and consolidated accounts
Other services:
Audit services – statutory audit of associates of the charitable company
Taxation compliance service
All other non-audit services
STAFF COSTS
Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs
2021
2020
£
£
16,650
13,585
1,950
1,835
2,500
1,300
5,250
4,150
_
_
26,350
20,870
_
_
2021
2020
£
£
799,178
934,186
67,234
74,718
52,511
54,254
_
_
918,923 1,063,158
_
_

During the year the charitable company made two (2020: one) ex-gratia and termination payments amounting to £17,695 (2020: £8,703).

The average number of persons employed by the company during the year was as follows:

Full time
Students – term time only		 2021
2020
No.
No.
30
33
21
52
__
_
51
85
___
______

No employees received remuneration of more than £60,000 during the current or prior year.

Key management personnel of the charitable company are considered to be the trustees, the Director of membership services and the Chief Executive Officer. During the year, key management personnel received remuneration (including employers national insurance contributions) of £285,630 (2020: £293,383 ).

Page 32

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

9. TRUSTEES’ REMUNERATION

TRUSTEE NAME
O Obioha (resigned 30 June 2020)
A Magaia (resigned 19 June 2021)
A Rahman (resigned 30 June 2021)
C Brown (resigned 31 March 2020)
S Ali (resigned 30 June 2020)
M Nembhard (resigned 30 June 2021)
H Belcher (resigned 30 June 2021)
K Wagener
E Phipps (resigned 30 June 2021)
R Jenkins (appointed 1 July 2021)
M Kanikanti (appointed 1 July 2021)
N Farmer (appointed 1 July 2021)
G Henton (appointed 1 July 2021)
A Deeb (appointed 1 July 2021)
Total		 Salary
£
-
18,784
19,077
-
-
19,798
19,077
20,811
19,077
1,734
1,734
1,734
1,734
1,734
______
125,294
 Pension
£
-
939
954
-
-
87
954
1,041
-
87
87
87
87
-
______
4,323
 Total
Total
2021
2020
£
£
-
20,031
19,723
21,852
20,031
21,245
-
23,965
-
19,771
19,885
21,432
20,031
2,782
21,852
2,695
19,077
2,695
1,821
-
1,821
-
1,821
-
1,821
-
1,734
-
__
____
129,617
136,468

During the previous year the charitable company made an ex-gratia and termination payment to C Brown amounting to £8,703, which is included in the above trustees remuneration.

There were no other trustee-benefits for the year (2020: £nil). Four (2020: Seven) trustees received reimbursement of expenses in relation to travel and subsistence totalling £610 (2020: £10,697).

10. TANGIBLE FIXED ASSETS Fixtures and
equipment
Group and Company £
Cost
At 1 August 2020 388,518
Disposals (87,768)
______
At 31 July 2021 300,750
______
Depreciation
At 1 August 2020 324,764
Charge for the year 32,528
Eliminated on disposal (87,519)
______
At 31 July 2021 269,773
______
Net book value
At 31 July 2021 30,977
______
At 31 July 2020 63,754
______

Page 33

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

10. TANGIBLE FIXED ASSETS (continued)

The net book value of fixed assets represents:
Assets used for charitable activities		 2021
2020
£
£
30,977
63,754
__
____

11. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Investments
in joint
venture
Group £
Share of net assets
At 1 August 2020 651,671
Share of profit 103,279
______
At 31 July 2021 754,950
______

The group’s investment in its principal associate has been impaired on consolidation.

Shares in
Group Investments
Undertakings in associates Total
Company £ £ £
Cost
At 1 August 2020 and at 31 July 2021 2 100 102
______ ______ ______

12. PRINCIPAL SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

University of Leicester Students’ Union Trading Ltd

Subsidiary name University of Leicester Students’ Union Trading
Ltd
Company registration number 02821506
Basis of control Wholly owned subsidiary
Equity shareholding % 100%

b. Principal joint ventures

The University of Leicester Students’ Union Trading Ltd, has a 50% joint ownership in the entity Student Union Lettings Limited, a charity which is registered in England and Wales.

The nature of the business is that of a student lettings agency and its registered office is First Floor Campus Centre Building, Mill Lane, Leicester, Leicestershire LE2 7DR.

Student Union Lettings Limited (trading as Sulets) is a company limited by guarantee and is therefore held as an investment in University of Leicester Students’ Union Trading Ltd at nil value, reflecting its recoverable value to University of Leicester Students’ Union Trading Ltd and therefore its parent undertaking, University of Leicester Students’ Union.

Page 34

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

12. PRINCIPAL SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES (continued)

Company name Country Shareholdings Description The Leicester Services England 50% Operation of student Partnership Limited related trading activities

Registered office

University of Leicester, University Road, Leicester, England LE1 7RH

Since the year end the Student Union has disposed of its investment in The Leicester Services Partnership Limited for nil consideration.

13.
STOCKS
Stocks

14.
DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
15.
CREDITORS: Amounts falling
due within one year
Trade creditors
Amounts owed to group undertakings
Amounts owed to associates
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
78
__
Group
2021
£
8,218
2
25,831
_
34,051
___
Group
2021
£
1,678
-
100
18,899
10,291
42,490
__
73,458
____		 Company
2020
2021
2020
£
£
£
78
78
78
__
_
_
Company
2020
2021
2020
£
£
£
16,365
7,914
114
5,281
-
5,279
27,694
25,831
27,694
__
_
_
49,340
33,745
33,087
__
_
_
Company
2020
2021
2020
£
£
£
49,918
1,678
33,091
-
14,648
17,018
100
100
100
20,312
16,394
19,502
17,125
10,291
17,125
71,664
30,043
56,032
__
_
_
159,119
73,154
142,868
__
_
___

Page 35

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

15. CREDITORS: Amounts falling due within one year (continued)

Deferred income
Deferred income at 1 August
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 July		 Group
2021
£
21,775
-
(15,943)
______
5,832
 Company
2020
2021
2020
£
£
£
15,832
10,943
-
10,943
-
10,943
(5,000)
(10,943)
-
__
_
___
21,775
-
10,943

Deferred income relates to amounts received in respect of multi-year contracts.

16. STATEMENT OF FUNDS

Group – current year

Balance at Balance at
1 August Income Expenditure Transfers
31 July
2020 2021
£ £ £
£
£
Restricted funds
Clubs and Societies 247,224 109,079 (97,106) -
259,197
Peer Mentoring Fund - 48,000 (42,570) -
5,430
Sports grant - 34,794 (34,794) -
-
RFU Development Fund 3,793 - - -
3,793
_____ _____ _____ _____ _____
251,017 191,873 (174,470) -
268,420
_____ _____ _____ _____ _____
Unrestricted funds
General reserves 473,604 1,400,053 (1,750,324) 322,233
445,566
Shares of net income
from joint venture 651,671 103,279 - -
754,950
_____ _____ _____ _____ _____
1,125,275 1,503,332 (1,750,324) 322,233 1,200,516
_____ _____ _____ _____ _____
Designated funds
LSP designated funding 275,000 - - -
275,000
Capital and strategic projects
designated funding 1,222,832 - - (322,233)
900,599
_____ _____ _____ _____ _____
1,497,832 - - (322,233) 1,175,599
_____ _____ _____ _____ _____
Pension reserve (1,899,776) - 2,469 - (1,897,307)
_____ _____ _____ _____ _____
723,331 1,503,332 (1,747,855) -
478,808
_____ _____ _____ _____ _____
Total funds 974,348 1,695,205 (1,922,325) -
747,228
_____ _____ _____ _____ _____

Page 36

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

16. STATEMENT OF FUNDS (continued)

Group – prior year

Balance at Balance at
1 August Income Expenditure Transfers
31 July
2019 2020
£ £ £
£
£
Restricted funds
Clubs and Societies 247,785 364,300 (364,861) -
247,224
Peer Mentoring Fund - 48,000 (61,482) 13,482
-
Sports grant - 36,294 (36,294) -
-
Drink Aware Fund - 11,582 (13,055) 1,473
-
RFU Development Fund 1,078 2,715 - -
3,793
_____ _____ _____ _____ _____
248,863 462,891 (475,692) 14,955
251,017
_____ _____ _____ _____ _____
Unrestricted funds
General reserves 622,340 1,903,456 (1,750,091) (302,101)
473,604
Shares of net income
from joint venture 565,205 86,466 - -
651,671
_____ _____ _____ _____ _____
1,187,545 1,989,922 (1,750,091) (302,101) 1,125,275
_____ _____ _____ _____ _____
Designated funds
LSP designated funding 275,000 - - -
275,000
Pension designated funding 250,000 - - (250,000)
-
Capital and strategic projects
designated funding 685,686 - - 537,146 1,222,832
_____ _____ _____ _____ _____
1,210,686 - - 287,146 1,497,832
_____ _____ _____ _____ _____
Pension reserve (1,568,607) - (331,169) - (1,899,776)
_____ _____ _____ _____ _____
829,624 1,989,922 (2,081,260) (14,955)
723,331
_____ _____ _____ _____ _____
Total funds 1,078,487 2,452,813 (2,556,952) -
974,348
_____ _____ _____ _____ _____

Page 37

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

16. STATEMENT OF FUNDS (continued)

Charitable company – current year

Balance at Balance at
1 August Income Expenditure Transfers
31 July
2020 2021
£ £ £
£
£
Restricted funds
Clubs and Societies 247,224 109,079 (97,106) -
259,197
Peer Mentoring Fund - 48,000 (42,570) -
5,430
Sports grant - 34,794 (34,794) -
-
RFU Development Fund 3,793 - - -
3,793
_____ _____ _____ _____ _____
251,017 191,873 (174,470) -
268,420
_____ _____ _____ _____ _____
Unrestricted funds
General reserves 473,704 1,372,226 (1,722,497) 322,233
445,666
_____ _____ _____ _____ _____
Designated funds
LSP designated funding 275,000 - - -
275,000
Capital and strategic projects
designated funding 1,222,832 - - (322,233)
900,599
_____ _____ _____ _____ _____
1,497,832 - - (322,233) 1,175,599
_____ _____ _____ _____ _____
Pension reserve (1,899,776) - 2,469 - (1,897,307)
_____ _____ _____ _____ _____
71,760 1,372,226 (1,720,028) -
(276,042)
_____ _____ _____ _____ _____
Total funds 322,777 1,564,099 (1,894,498) -
(7,622)
_____ _____ _____ _____ _____

Page 38

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

16. STATEMENT OF FUNDS (continued)

Charitable company – prior year

Balance at Balance at
1 August Income Expenditure Transfers
31 July
2019 2020
£ £ £
£
£
Restricted funds
Clubs and Societies 247,785 364,300 (364,861) -
247,224
Peer Mentoring Fund - 48,000 (61,482) 13,482
-
Sports grant - 36,294 (36,294) -
-
Drink Aware Fund - 11,582 (13,055) 1,473
-
RFU Development Fund 1,078 2,715 - -
3,793
_____ _____ _____ _____ _____
248,863 462,891 (475,692) 14,955
251,017
_____ _____ _____ _____ _____
Unrestricted funds
General reserves 622,440 1,757,247 (1,603,882) (302,101)
473,704
_____ _____ _____ _____ _____
Designated funds
LSP designated funding 275,000 - - -
275,000
Pension designated funding 250,000 - - (250,000)
-
Capital and strategic projects
designated funding 685,686 - - 537,146 1,222,832
_____ _____ _____ _____ _____
1,210,686 - - 287,146 1,497,832
_____ _____ _____ _____ _____
Pension reserve (1,568,607) - (331,169) - (1,899,776)
_____ _____ _____ _____ _____
264,519 1,757,247 (1,935,051) (14,955)
71,760
_____ _____ _____ _____ _____
Total funds 513,382
_____		 2,220,138
_____		 (2,410,743)
_____		 -
_____
322,777
_____

Page 39

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

16. STATEMENT OF FUNDS (continued)

The restricted funds relate to :

The Clubs and Societies Funds represent balances held for specific clubs and societies where the ultimate control would vest with the Union.

The Union and University have agreed to work in partnership to develop a university-wide peer mentoring scheme. The project will be managed as part of the overall volunteer support process, the University have agreed funding of £48,000 to support this scheme.

The RFU Development fund relates to monies received for the development of rugby at the University.

The sports grant is utilised for Team Leicester coaching costs to help subsidise the cost of sports to students.

The designated funds relate to :

LSP designation funding represents a year’s commercial grant contributions, in light of the losses made by the associate company at present.

Pension designated funding relates to funds set aside for future contributions towards the scheme, in light of the revaluation and the known challenges faced by the scheme.

Capital and strategic projects designated funding represents the remaining funds designated for investment in strategic projects relating to the long-term development of the Union after taking account of the required funding needed to orderly wind down the Union in the event of the organisation ceasing to operate in the future in the light of the challenges facing the sector.

Transfers

A transfer has been made from the capital and strageic projects designated fund to general reserves to take account of the required funding needed to orderly wind down the Union in the event of the organisation ceasing to operate in the future in the light of the challenges facing the sector.

Page 40

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group – current year
Restricted
funds
2021
£
Tangible fixed assets
-
Fixed asset investments
-
Current assets
268,420
Creditors due within one year
-
Defined pension scheme
liability
-
__
268,420
_
Group – prior year
Restricted
funds
2020
£
Tangible fixed assets
-
Fixed asset investments
-
Current assets
251,017
Creditors due within one year
-
Defined pension scheme
liability
-
_
251,017
__
Charitable company
Restricted
– current year
funds
2021
£
Tangible fixed assets
-
Fixed asset investments
-
Current assets
268,420
Creditors due within one year
-
Defined pension scheme
liability
-
_
268,420
_
Charitable company
Restricted
– prior year
funds
2020
£
Tangible fixed assets
-
Fixed asset investments
-
Current assets
251,017
Creditors due within one year
-
Defined pension scheme
liability
-
______
251,017
 General Designated
Pension
Total
funds
funds
reserve
funds
2021
2021
2021
2021
£
£
£
£
30,977
-
-
30,977
754,950
-
-
754,950
488,047
1,175,599
-
1,932,066
(73,458)
-
-
(73,458)
-
- (1,897,307) (1,897,307)
__
_ _
__
1,200,516
1,175,599 (1,897,307)
747,228
_
_ __
_
General Designated
Pension
Total
funds
funds
reserve
funds
2020
2020
2020
2020
£
£
£
£
63,754
-
-
63,754
651,671
-
-
651,671
568,969
1,497,832
-
2,317,818
(159,119)
-
-
(159,119)
-
- (1,899,776) (1,899,776)
_
__ _
_
1,125,275
1,497,832 (1,899,776)
974,348
__
_ _
__
General Designated
Pension
Total
funds
funds
reserve
funds
2021
2021
2021
2021
£
£
£
£
30,977
-
-
30,977
102
-
-
102
487,741
1,175,599
-
1,931,760
(73,154)
-
-
(73,154)
-
- (1,897,307) (1,897,307)
_
_ __
_
445,666
1,175,599 (1,897,307)
(7,622)
_
__ _
_
General Designated
Pension
Total
funds
funds
reserve
funds
2020
2020
2020
2020
£
£
£
£
63,754
-
-
63,754
102
-
-
102
552,716
1,497,832
-
2,301,565
(142,868)
-
-
(142,868)
-
- (1,899,776) (1,899,776)
__
_ ___
______
473,704
1,497,832 (1,899,776)
322,777

Page 41

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

  1. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net expenditure for the year
(as per Statement of Financial Activities)
Adjustment for:
Depreciation
(Decrease)/increase in pension deficit funding liability
Loss on the sale of fixed assets
Interest received
Decrease in stocks
Decrease in debtors
(Decrease)/increase in creditors
Net income from joint ventures and associates
Net cash (used in)/provided by operating activities		 2021
2020
£
£
(227,120)
(104,139)
32,528
43,835
(2,469)
331,169
249
-
(1,366)
(9,631)
-
3,917
15,289
69,023
(85,661)
31,360
(103,279)
(86,466)
__
_
(371,829)
279,068
___
______
  1. PENSION COMMITMENTS

The Union participates in the Student’s Union Superannuation Scheme, which is a defined benefit scheme whose membership consist 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 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual.

The most recent Valuation of the Scheme was carried out as at 30 June 2019 and showed that the market value of the Scheme’s assets was £119,100,000 with these assets representing 46% 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 £140,900,000.

The assumptions which have the most significant effect upon the results of the Valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions.

The following assumption applied at 30 June 2019:-

The 2019 valuation extended the period over which the ongoing funding deficit would be cleared to August 2035, and recommended a monthly contribution requirement by each participating employer be expressed in monetary terms. For the Union this has resulted in an increase to 19.4% as at 1 October 2021 and by a further 5% each year thereafter. These rates applied with effect from 1 October 2021 and contributions due from October 2023 onwards will be reviewed following the next actuarial valuation. Surpluses or deficits which arise at future valuations will also impact on the Union’s future contribution commitment.

Page 42

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

19. PENSION COMMITMENTS (continued)

These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension Protection Fund.

FRS 102 and Charities SORP (FRS102), require that the charitable company share of past service shortfall is reflected in the financial statements. Based on the most recent valuation, the charitable company took the option to pay a lump sum of £360,937 in the year to cover the period between October 2020 and September 2023 as their contribution to eliminate the shortfall.

Therefore, at 31 July 2021, the balance sheet of the Union includes a liability of £1,897,307 (2020: £1,899,776), which represents the net present value of all future contributions towards eliminating this shortfall. The discount rate used is 1.75% (2020: 1.45%) which is comparable to that for a 15 year AA-rated corporate bond. The estimated liability is based on the 2019 triennial valuation of the scheme and will necessarily require revision after subsequent revaluations. The balance is made up as follows:

is made up as follows:
2021
£
Balance brought forward 1,899,776
Contributions made in the year (360,937)
Charge to statement of financial activities 358,468
______
1,897,307
______

The charitable company also contributes to three defined contribution schemes:

The total contributions paid to The Universities Superannuation Scheme (USS) during the year amounted to £23,219 (2020: £23,032). At the year end, the charitable company owed £15 (2020: £2,874).

The total contributions paid to The NUS Aegon Pension Scheme during the year amounted to £4,288 (2020: £4,097). At the year end, the charitable company owed £489 (2020: £406).

The total contributions paid to The National Employment Savings Trust (NEST) during the year amounted to £25,295 (2020: £27,360). At the year end, the charitable company owed £4,296 (2020: £4,371).

20. RELATED PARTY TRANSACTIONS

Company

University of Leicester Students’ Union Trading Ltd

The wholly owned subsidiary, University of Leicester Students’ Union Trading Ltd, is included within the consolidated accounts.

University of Leicester Students’ Union Trading Ltd gift aided £12,537 in the year (2020: £29,082).

University of Leicester Students’ Union Trading Ltd income and expenditure goes through the charitable company’s bank account and also the charitable company has recharged for the use of staff amounting to £15,667 (2020: £62,283). At the year end, University of Leicester Students’ Union Trading Ltd was owed £14,648 (2020: £17,018) by the charitable company.

Page 43

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

20. RELATED PARTY TRANSACTIONS (continued)

Group and company University of Leicester

The majority of the Student Unions’ funding is derived from the University of Leicester, which is a related party as the Student Unions’ principal activities involve providing services to its student body.

The Student Union receives a block grant from the University of Leicester £809,685 (2020: £1,012,103). Additional grants are provided by the University for project support of £368,736 (2020: £477,475) and redundancy reimbursement of £15,716 (2020: £nil).

During the year the group made sales of £13,824 (2020: £84,159) to the University of Leicester and made purchases of £27,145 (2020: £21,552) from the University of Leicester.

During the year the company made sales of £12,852 (2020: £12,364) to the University of Leicester and made purchases of £27,145 (2020: £15,124) from the University of Leicester.

At the year end, the group was owed £1,983 by the University of Leicester (2020: £34,011 owed to the University of Leicester).

In addition, the Student Union occupies its building on a rent-free basis. This is under an informal license subject to the Student Union maintaining the building in a good state of repair. As a result, an estimated value to the Student Union for the free serviced accommodation has been included in the accounts. This has been valued at £229,440 (2020: £180,129) based on market prices within Leicester.

The Leicester Services Partnership Limited

During the year the group and company made purchases of £nil (2020: £13,536) from The Leicester Services Partnership Limited. At the year end, The Leicester Services Partnership Limited was owed £100 (2020: £100) by the group.

Student Union Lettings Limited

During the year the group made sales of £10,000 (2020: £8,250) to Student Union Lettings Limited.

Other related parties are the Sabbatical Officers and Trustees as detailed in the Trustees’ report. Details of remuneration received by these individuals are shown in note 9. Remuneration of key management personnel is shown in note 8.

21. POST BALANCE SHEET EVENTS

Since the year end the Student Union has disposed of its investment in The Leicester Services Partnership Limited for nil consideration.

Page 44

UNIVERSITY OF LEICESTER STUDENTS’ UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 JULY 2021

22. COMPARATIVE GROUP STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020

Unrestricted
funds
2020
£
INCOME FROM:
Donations and legacies
1,713,436
Charitable activities
4,080
Other trading activities
175,291
Investments:
Share of joint venture gross
income
86,466
Interest received
9,631
Other income
1,018
___
TOTAL INCOME
1,989,922
__
EXPENDITURE ON:
Raising funds
146,209
Charitable activities
1,935,051
_
TOTAL EXPENDITURE
2,081,260
_
NET EXPENDITURE
(91,338)
Transfer between funds
(14,955)
_
NET MOVEMENT IN FUNDS
(106,293)
____		 Restricted
Total
funds
funds
2020
2020
£
£
98,591
1,812,027
364,300
368,380
-
175,291
-
86,466
-
9,631
-
1,018
___
__
462,891
2,452,813
_
_
-
146,209
475,692
2,410,743
_
_
475,692
2,556,952
_
_
(12,801)
(104,139)
14,955
-
_
_
2,154
(104,139)
_
____

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