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2022-07-31-accounts

DE MONTFORT UNIVERSITY STUDENTS’ UNION (formerly De Montfort University Students Union Limited)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

Company Registered Number 06634464 (England and Wales)

Charity Registered Number 1138587

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT

FOR THE YEAR ENDED 31 JULY 2022

The Trustees (who are also the directors of the Charity for the purposes of the Companies Act) present their Trustees report together with the audited financial statements of De Montfort University Students’ Union (the Charity) for the year ended 31 July 2022. The Trustees confirm that the Trustees report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (effective January 2019).

REFERENCE AND ADMINISTRATIVE DETAILS

Charitable Status

De Montfort University Students’ Union (DSU) is a company limited by guarantee (company number 06634464) and a registered charity (charity number 1138587).

Change of name

On 1 March 2022, the charity changed its name to De Montfort University Students’ Union from De Montfort University Students Union Limited.

Principal Address and Registered Office

Campus Centre Building, Mill Lane, Leicester, LE2 7DR

Trustees

The following Trustees are also Directors of the company

Full-time Executive Officers

The Executive Officers are elected by the student population to hold office from 1 July 2021 to 30 June 2022 and are known also as the Executive Committee. The Executive Officers who held office during the year are:

Union Development Executive Amir Iqbal (appointed 01/07/2022) Academic Executive Nyashadzashe Nguwo (appointed 01/11/2021) Equality & Diversity Executive Meera Dasani (appointed 01/07/2022) Student Opportunities & Engagement Executive Aashni Sawjani Welfare Executive Aliya Amin Khan (appointed 1/07/2022)

Union Development Executive Joanna Dine-Hart (resigned 30/06/2022) Academic Executive Ruby Rawles (resigned 12/08/2021) Equality & Diversity Executive Puja Subramania (resigned 30/06/2022) Welfare Executive Benjamin Smith (resigned 30/06/2022)

External Trustees

The External Trustees are appointed to the Trustee Board by an Appointments Committee. The External Trustees who held office during the year are:

Geoff Kershaw (Chair) (appointed 28/09/2021) Phil Gilks (appointed 28/09/2021) Laura Arends (appointed 28/09/2021) Beverley Shears (appointed 15/12/2021) Danielle Gillett (resigned 04/11/2021)

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Student Trustees

The Student Trustees who held office during the year are:

Stephanie Glazebrook (appointed 01/07/22) Luke Martin Mehul Parekh Benjamin Smith (appointed 01/07/2022) Youssef Labib (resigned 30/06/2022) Samuel Sayer (resigned 15/03/2022)

Auditors

RSM UK Audit LLP Chartered Accountants Rivermead House 7 Lewis Court Grove Park Leicester Leicestershire LE19 1SD Charity Number 1138587 Company Number 06634464 Bankers

Cooperative Bank PO Box 101 1 Balloon Street Manchester M60 4EP

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Governing document

The Students’ Union is governed by the Articles of Association. The Students’ Union is a company limited by guarantee and does not have any share capital. The guarantors are the members of the Students’ Union, being registered students at the De Montfort University (“DMU”) as defined in the Articles of Association.

DSU Staff

The Chief Executive Officer works closely with the Executive Officers and as head of the Senior Management Team ensures effective management. The Senior Management Team is made up of the following:

Chief Executive Officer Deputy CEO & Head of Commercial Services Head of Finance, People and Central Services Head of Membership Services

Sarah Bradley Joe Stephenson Paula Heneghan Elgan Hughes

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

Key Management and Trustees Pay

Following a review of pay and grading DSU introduced a new pay and grading pay spine for staff employed from 1 August 2020 with staff employed at 1 August 2020 remaining on the University’s pay spine. All staff are awarded an annual pay award based on the University’s agreed pay award which is nationally negotiated and is usually applied to the scales on the 1 August each year. Dates can vary depending on national and local agreements but this is back dated to 1 August as required.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Structure and Decision Making

DSU became a company limited by guarantee on 1 August 2008 and registered as a charity on 26 October 2010. The governance structure includes the appointment of up to 4 External Trustees and 4 Student Trustees onto the Trustee Board. The experiences and expertise held by these Trustees ensure that DSU can focus on continuity as previously the short term of office held by the Executive Committee has made long term strategic planning more challenging. Appointments to the Trustee Board are made by an Appointment Committee.

Recruitment and training of Trustees

The current Trustee Board consists of thirteen Trustees and is constituted as follows: -

The five Executive Officer posts are Union Development Executive, Academic Executive, Equality & Diversity Executive, Student Opportunities and Engagement Executive and Welfare Executive.

These are full times posts which make up the Executive Committee and are remunerated as authorised by the Education Act. These posts cannot exceed two years duration for each post holder. On induction the Executive Committee and student trustees receive Trustee training and have access to ongoing training as required. The Executive Officers are also charity Trustees.

The Executive Committee meets monthly to receive reports on campaigning and lobbying work within the University. The Leadership Team meets fortnightly to receive reports including financial information and the Senior Leadership Team meet monthly to review the management accounts. DSU also employs a number of non-student staff who are accountable to the CEO for the performance of their duties.

The Trustee Board structure also includes four student trustee positions to amplify the voice of students at DSU. This structure ensures accountability of the elected representatives at Board level as well as increasing student participation in DSU. Student trustees receive extensive training through the DSU Membership Services function and a facilitated Away Day led by DSU CEO.

Our External Trustees are appointed for a term of four years and can stand for reappointment for another term. Up to 3 external trustees are appointed by the Appointments Committee ratified by the Trustee Board. One External Trustee shall be appointed by DMU Board of Governors.

All Trustees receive a full induction into the work of the Students’ Union and the roles and responsibilities of a Trustee.

DSU is affiliated to NUS UK and NUS Charity and receives support, advice and information on a wide range of topics as part of this affiliation.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Third party indemnity provision for trustees

Qualifying third party indemnity provision is in place for the benefit of the trustees.

Principal risks and uncertainties

Risk management

The major strategic, business and operational risks to which the charity is exposed, as identified by the Trustees, are regularly reviewed and systems or procedures are put in place to mitigate those risks. A risk register has been established which is updated and reported to the Trustee Board, covering the following key matters amongst others:

Funding – DSU receives the majority of its income from DMU as well as generating its own income from commercial services. Annual budgets are set and approved by the Trustee Board with management accounts and variances to budget regularly reviewed. DSU is also represented on the DMU Board of Governors to ensure reporting and communication with our main funder and reports to the University’s Finance and Performance Committee (F&PC).

Retention of key staff – We use experts to assist with key recruitment decisions. We provide enhanced support and supervision, giving people opportunities to progress. Key staff are involved in long term strategy and annual business planning, aligning resources to activities.

Governance management – We have a corporate governance structure aligned with Charity Commission best practice guidelines which involve strong communication with staff and trustees, review of policies and procedures, regular meetings and information on performance and progress and clear and defined decision-making processes. DSU completed a full governance review in 2018 which endorsed our new structures as best practice.

Financial systems and control – Qualified in-house finance professionals produce accurate and up to date financial reporting with close monitoring of internal controls and a regular review of processes and procedures to ensure they are fit for purpose.

Compliance with laws and regulations – We constantly monitor and review changes as well as adhere to best practice, using specialist support where necessary.

National picture – In recent years, there have been changes in society and Higher Education and Government policy which may lead to significant changes for students. These include the recent war on Ukraine, Brexit impact, the continuing impact felt by the pandemic and changes in the Governments’ and Office for Students approaches in regulation of universities. DSU is an active participant in NUS and WonkHE briefings, staying on top of the changes and acting accordingly. Additionally, the strong relationship with the University makes planning for and adapting to changes as streamlined as possible.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

Public benefit

The Trustees have considered this matter, in conjunction with the guidance contained in the Charity Commission’s general guidance on public benefit and have concluded that as a registered charity and Students Union, our work directly supports and benefits the 27,000+ students registered to study at DMU. In planning our work, we test that the primary goals of all our activities are linked to our core aims and therefore are for the direct benefit of our member students.

OBJECTIVES AND ACTIVITIES

DSU is constituted under the Education Act 1994 as a charity.

The main aims of DSU as set out in its governing documents are:

To advance the education of the students of DMU for the public benefit by:

In setting our objectives and planning our activities, the Trustees have given careful consideration to the Charity Commission general guidance on public benefit.

DSU will commence a full review of their strategic plan in 2022-23 but have agreed some holding aims pre the full strategy review.

A commercial strategy has been separately approved by the Trustee Board and work is in progress to deliver on this strategy. All departments, including our Executive Officers, have set their priorities for the next 12 months and these are documented within the organisational plan. This plan is regularly reviewed and linked to staff annual personal development plans to ensure objectives are regularly monitored and reviewed against progress. The review of the organisational plans is a standing item on the DSU Trustee Board agenda and as such is reviewed at board level to ensure strategic planning and development remains a key focus of the board.

The organisational plans set out measures of performance, indicators of success and key milestones. Tracking includes a traffic light system to indicate if plans are in progress, complete or behind schedule.

Relationship with DMU

For the year ended 31 July 2022, DSU received a Block Grant from DMU of £1,221,186 (2021: £1,216,248).

For the financial year 2022-23 DMU have agreed a Block Grant of £1,227,811.

DSU is extremely grateful for the University’s continuing support including the use of the Campus Centre Building and ongoing financial and other support which the University has provided during the year. The stable Block Grant and continued use of campus space ensures DSU can keep supporting its members and deliver the best service to achieve its aims and ambitions for the coming year.

DSU continues to benefit from positive relationships with University staff at all levels. We aspire to make a continued positive contribution to the lives of our members and the campus community in 2022-23.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

Relationship with DMU (continued)

The Charities SORP has been adopted for due compliance with the requirements for Students’ Unions’ provided in the Charities Act 2006. As a result, an estimated value to DSU for the free serviced accommodation has been included in the financial statements. This has been valued at £150,000 based on market prices within the Midlands.

FINANCIAL REVIEW

Results

DSU gross income from all sources this year totalled £1,937,545 (2021: £1,665,688). Total expenditure of £1,827,814 (2021: £1,711,178) on the wide-ranging student benefits we provide left a surplus of £109,731 (2021: deficit £45,490).

At the year end, DSU had total funds deficit of £223,425 (2021: £331,156), of which includes restricted funds of £101,216 (2021: £117,700) and designated funds of £134,549 (2021: £55,500).

Following the adoption of FRS102, the charitable company has been required to recognise the net present value of future contributions required to eliminate the shortfall estimated with respect to charitable company participation in the Students’ Union Superannuation Scheme. This has resulted in a liability being recognised in the balance sheet at 31 July 2021 of £889,296 (2021: £1,065,140) and this has resulted in a credit to the Statement of Financial Activities in the year of £113,693 (2021: charge £177,929).

Reserves Policy

The Trustee Board have approved a reserves policy and identified three reasons for DSU to hold reserves; -

DSU has identified that a minimum level of unrestricted funds should be set to counter balance trading uncertainty and produce a base level for stability. Additionally, a target level of unrestricted funds will also be set to allow for growth and for DSU to take advantage of strategic development opportunities going forward.

The level of unrestricted funds should be set as three months operating costs, with an additional fund to cover redundancy costs for all staff (general reserve) and a designated fund for investment.

At the current time the trustees are regularly reviewing this policy and remain of the opinion that adequate reserves exist to meet liabilities as they become due for a period of at least a twelve months from the date of approval of the financial statements.

SUSS Pension Scheme

Following the triennial valuation at the 30 June 2019, the net present value of future contributions required to eliminate the shortfall has increased the liability being recognised in the balance sheet at 31 July 2022 to £889,296 (2021: £1,065,140) and a subsequent deficit on reserves of £223,425 (2021: £331,156). The trustees are confident the current deficit compared to the above reserves policy is wholly as a result of the provision required on adoption of FRS102, that this deficient will reduce over the coming years and that cash reserves remain adequate.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

We have reviewed the key achievements and progress over the course of the year below:

Marketing and Communications

The marketing and communications department has rolled out new branding across all areas. This has included re-dressing the building and ensuring that the we have a strong visual identity that is consistent through all projects, our digital spaces and our physical materials.

The first phase of digital transformation was a success and we will now continue to develop our physical materials and spaces to ensure that there is a level of consistency across everything we do. We see a strong brand and visual identity as a key pillar in promoting the organisation and ensuring that we are recognised in everything we do for our members.

The department has continued to use more video in content and short clips from around campus with varied success. As part of this process we have upskilled staff with video shooting and training to ensure it is to the highest level possible.

Our social media channels have been varied and we have spent time studying the analytics to better understand our audience. From this we have developed a social media matrix which supports the team to know who follows us on each channel and what we should be posting on each channel to engage with that audience. This has now been completed and we are ready to fully launch our new diverse approach for the new year.

The addition of a full-time member of staff to work on data and insight has been a positive addition as we have developed a much better understanding of our students and their needs.

Membership Services

This year has seen success in many aspects of membership services with increased engagement at a variety of levels.

Representation

The 2022 Executive Officer Election saw a total of 3,133 students casting 23,465 votes in total across the 5 Executive Officer roles, and 7 Liberation Officer roles, with 27 confirmed candidacies during the voting period. This was an increase in comparison to 1,828 voters in 2020-21 and also up on 20192020 in which turnout stood at 2,935.

The Course Rep scheme operated with 442 elected course reps. The 2022-23 academic year, will see the launch of a Lead Rep initiative to capitalise on valuable engagement with our ‘hyper engaged’ reps, as DMU moves to block mode teaching. In addition, as the University commit to on campus teaching we will increase our outreach work, hosting hubs, cafes and pop-ups in faculties.

Zone membership across the 5 committees included 32 elected student reps. Attendance at Zones & Council has been disappointing this year, causing delays in passing motions that reach quorum.

To inform the representation element of the upcoming governance review, membership requirements for the coming year have been removed – already resulting in more uptake of roles (41 student reps in place). In the coming year, we will be running Zones asynchronously via the Adam Redfern Boardroom conferencing systems to maximise access and participation. Zones will continue to be supported by linking departments, to encourage dissemination of student feedback, policy and activism throughout DSU teams.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

Representation (continued)

Student Voice successfully produced an open educational resource on embedding mental wellbeing: ‘Are you OK?’ a wellbeing conversation with students throughout the coronavirus pandemic. The resource explores mutual benefits for staff and students of a whole University approach to ensuring wellbeing, as well as generating student engagement and an enhanced student partnership.

The resource was also submitted as part of a DMU and DSU application for a Collaborative Award for Teaching Excellence from Advance HE, and was recognised in its receipt of the prestigious award.

Finally, the Voice Manager submitted a funding application for a QAA collaborative enhancement project, exploring and researching the accessibility and equity in proofreading policies across the sector and in partnership with 6 other institutions.

Opportunities

2021-22 has been a year to refresh and update the services offered to students by DSU Opportunities, starting with the restructure of the team. The new team have supported students as they cautiously returned to in-person activity. Increased support to student group leaders has been offered in the form of Committee Catch Ups, Skills Fest training day and creation of an online training module.

Membership fees have been reintroduced for societies to allow them to resume their usual activity, and bye-laws have been updated to improve engagement levels within active societies. We expected similar membership numbers to 2020-21 after predicting a reluctance to pay following on from free memberships, although this has not been the case. We have seen a marginal drop in membership number, however this is due to a reduction in the total number of societies. We expect to see the number of total groups increase again next academic year, with the increase of in-person teaching and a targeted campaign planned for December 2022.

We have continued to maintain a healthy working relationship with DMUSport as they continue to take on more responsibility for the facilitation of Sport Clubs, membership sales and BUCS fixtures.

The Opportunities team secured the Investors in Volunteers accreditation and used student insight from this to further improve our voluntary offer union wide. The volunteering brokerage has been relaunched and is now actively used to match students to volunteering opportunities, both internally to DSU and externally in the local community. There are 162 students and 29 volunteering providers registered on the brokerage since the mid-year relaunch. Our MyUniPal peer mentoring scheme has undergone a complete overhaul following on from student feedback, and will now focus solely on supporting students to find their own networks and sense of belonging across their first term at university; this has been renamed to The Social Collective.

Advice & Wellbeing

This year has seen an outstanding performance from the Advice & Wellbeing team. The department have been able run a full year delivering the vision that was set in late 2020, when we conducted the department restructure. This adapted our staffing structure to accommodate more empowering advice and case work, alongside engaging outreach activity and campaign projects.

The team have also added the remit of Equality, Diversity & Inclusion to the department that subsequently created a new coordinator post, which was successfully recruited for in January 2022. The team have delivered multiple projects and campaigns which have included; academic stress, academic integrity, sexual health and wellness, bullying, mental and physical health, housing, money matters and much more. The team have also introduced ‘Wellbeing Wednesdays’ where an activity is held each week where students can take part and take some time out for themselves and try something new. This project will continue into next academic year in partnership with the Give It a Go concept.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

Advice & Wellbeing (continued)

With the addition of the EDI remit and a new staff member this year, the team have also been able to deliver campaigns and projects related to LGBTQ+ history month, women’s history month, pride month, Ramadan etc.

To date, the team have recorded just over 1,300 cases throughout the 2021-22 academic year. Though this number only reflects the number of students that have had full cases with the team and does not include the interactions had through some of the drop-in triage sessions or any outreach activity.

Commercial Services

As a result of the Covid-19 pandemic commercial services continued to be impacted throughout the 2021-22 year with uncertainty regarding covid passports at the start of Term 1 and the continued impact of the pandemic on students’ behaviours. The continuation of virtual teaching and learning impacted footfall and attendance at events throughout the year. A new commercial strategy was approved by the Trustee Board in June 2022 and work is in progress to implement the strategy with a review of our offer as well as consideration to investment and franchise models.

SUpplies (DSU Shop)

SUpplies sell a variety of specialist supplies for DMU courses as well as stationary, branded clothing and also provides dissertation and binding services. SUpplies has made a net profit of £1k (2021 £5k) with income being affected by reduced footfall on campus. Product reviews, relationship development on the DMU Campus and excellent customer service are key objectives of SUpplies. In addition the Online shop will be launched during the summer of 2022 and this is expected to improve income as well as accessibility to the range of products offered by SUpplies.

DSU Sales & Advertising

This commercial operation achieved a net profit figure of £52k (2021: £6k). With the majority of revenue within this area generated from our Fresher’s Fair it was great to be able to hold this event face to face in September 2021 rather than virtually as in the prior year.

DSU Function Rooms (Nightclub) and The Union (Catering)

These commercial areas made a loss for the year of £69k (2021: loss £32k). This was primarily due to a difficult Freshers period where we anticipated sales of 1,800 wristbands but only sold 1,200, this shortfall in wristbands put us £25k behind budget before we had even started trading and was due to the reasons above. We made as many costs savings as possible but with other staffing issues throughout the year and only 50% of the student population attending campus we were never able to recover.

Student Union Lettings Limited (trading as Sulets)

On 1 August 2012 the trade and assets of the Lettings operation were transferred to a new limited company Student Union Lettings Limited (trading as Sulets). Sulets is a registered charity and company limited by guarantee, with two members - DSU and The University of Leicester Students’ Union (ULSU). Sulets supports DSU with sponsorship of activities and events during the year and we ensure it continues to contribute to our aims and objectives through our representation on the Sulets Board.

In the opinion of the Trustees, Sulets is not a subsidiary undertaking of the Charity. All funds generated by Sulets are restricted for use by Sulets in line with the objects of that charity.

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DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 JULY 2022

Our Values and Mission

DSU is an independent student-run and student-led organisation. Our mission is

Empowering you to create an unforgettable journey by looking out for your wellbeing, creating a sense of belonging and providing opportunities to get actively involved.

We will deliver this by living up to our values, or Golden Threads, which are:

Our longer term aims that are woven by our Golden Threads are to:

PLANS FOR THE FUTURE

The DSU Trustee Board have approved some aims prior a full review of our strategic plan in 2022-23. These are as follows:-

Auditors

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

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DE MONTFORT UNIVERSITY STUDENTS, UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED) TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 JULY 2022 Trustg8s' Rosponslbllltios The Trustees (who are also directors of De Montfort Universty Students, Union for the Purposes of o)mpany law) are responsible for preparing the Tnjstees, report and the financial slalemenls in accordan￿ with the applicab￿ law and the United Kingdom Accounting Stsndard$ (United lfj"ngdom Generally Aw)led Accounting Practice). Company law requires the Trustees lo prepare financial ststements for each financial year which gwe a true and fair view of the stsle of the affairs of the charitable company and of the incoming Tesour and appli¢ion of resources including the income and expendrture. of the charitable company for that period. In preparing these financial statements the Trustees are required to" sele¢1 suitable accounting polKies and then apply them consistenty., observe the methods and principles in the Chartties SORP.. make judgements and accounting estimates that are reasonable and prudent,. stalewhether applicable UK Actounting Standards have been ft)Ilowed, suty'ect to any m8terial depariures disclosed and explained in the financial slatements". and prepa￿ the financial statements on the going ￿n￿rn basis unl8ss il is inappropriate to presume that the charrtable ￿￿Pafty will continue in operation. The trustees a￿ resFonsible for keeping adequate ￿￿￿nting records that disdose with reasonable acturacy al any time the financial wsition of the charitable cJ)mpany and enable them to ensure that the financial statements comply the Companies Acl 2006. They are also responsible for the safeguarding the assets of the charitable company and hence for taknng reasonable steps for the prevention and detectton ol fraud and other irregularities. In so far as the Twstees are aware tlre is no reknnl aLKlil inforynalion of which the charitable eANnpanYs auditor is unaware and the trustees ha￿ taken all the necessary steps thai they ought to have tsken as Trustees in order to make themselves aware of any ￿levant audit infomxlion and to establish that the charitable company's audrtor is aware of that infoThnation. In preparing thts re￿rl the Trustees have tsken advantage of the small tompanies exempb.ons provrd&J by the section 415A ofthe Companies Act 2006. This ￿port was approved by the Trustees on I Ith October 2022 by= and signvhj on their behaff G KeThBhaw External Trust0• 11

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

Opinion

We have audited the financial statements of De Montfort University Students’ Union (the ‘charitable company’) for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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 for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED) (continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 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 11, 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 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 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 noncompliance with laws and regulations identified during the audit.

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.

13

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED) (continued)

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the 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 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, GDPR and data protection, health and safety regulations and licensing regulations. We performed audit procedures to inquire of management whether the charitable company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The 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, 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 http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 the charitable company’s 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

Date 01/11/2022

14

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 JULY 2022

Note
Restricted
funds
2022
£
Unrestricted
funds
2022
£
Income from:
Donations and legacies
4
-
1,388,142
Charitable activities
4
144,662
320,501
Other trading activities
4
-
75,150
Investment income
4
-
1,512
Other income
5
-
7,578



Total
144,662
1,792,883



Expenditure on:
Raising funds
6
-
59,374
Charitable activities
6
(14,698)
1,783,138



Total
(14,698)
1,842,512



Net income and net
movement in funds
11
159,360
(49,629)
Reconciliation of funds
Total funds brought forward
(947,440)
614,284



Total funds carried forward
16
(788,080)
564,655


 Total
funds
2022
£
1,388,142
465,163
75,150
1,512
7,578
1,937,545
59,374
1,768,440
1,827,814
109,731
(333,156)
(223,425)		 Total
funds
2021
£
1,523,737
80,289
26,852
53
34,757

1,665,688
87,999
1,623,179

1,711,178
(45,490)
(287,666)

(333,156)

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derived from continuing operations.

A detailed comparative Statement of Financial Activities is shown in note 22.

15

DE MONTFORT UNIVERSI￿ STUDENTS, UNION (FORMERLY DE AK)NTFORT UNNERSITY STUDENTS UNION LIMITED) BALANCE SHEEr COMPANY NUMBER 06634464 AS AT 31 JULY 2022 2022 2(r21 Flx•d a88ets: Tanglbbe assets 12 45.199 14.682 Slod(s Debtors Cash al bank 13 14 20.273 45.175 679,342 29,242 51,299 745.425 744.7 825,956 U•bllltlo8: Credilcrfs.. am¢yJn18 falling due within e yaar 15 (124.118) (108.6641 N•t cuffgnt aM•ts 620.672 717.302 N•t •Mts •xcludlng pwmlon Ilablllty 665.871 731.984 Defined benefit p8n8ion scheme liakn'lrty 19 1889.296> fl.065,140) Totsl net liabllttl {223.425} (333,156) Total funds of ¢h•rlty 18 101.216 117.7L General funds F8thliiies de¥thpment re8eNe 16 16 430.1( 134.549 558.784 Total unrestixl funds .655 614.284 16 <889.2) (1.065. 140) Toll ch•TIty fvnd• 1223.425) (333, 156) The financial ¥tatements M paggs 15 to 34 were approved by the Board of Trustees and authorised for issue on Ilth October 2022 arKI svjned on thety t¢h8W. ty.. G Kor¥haw 18

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2022

Note
Cash flows from operating activities
Net cash provided (used in)/by operating
activities
18
Cash flows from investing activities
Interest from investments
Purchase of tangible assets

Net cash provided (used in)/by investing
activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 £
2022
£
(16,127)
1,512
(51,468)

(49,956)

(66,083)
745,425

679,342
 £
2021
£
61,367
53
-
53

61,420
684,005

745,425		 2021
£
61,367
53

17

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

1. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no critical accounting estimates and areas of judgement to note.

2. Accounting policies

Accounting convention

The financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland” (FRS 102), (Charities SORP (FRS102)) “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” including the amendments issued in December 2017 (“FRS 102”) and the requirements of the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015.

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

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

Going concern

The charitable company has cash resources and no requirement for external funding, other than the annual block grant received from De Montfort University which has been confirmed for 2022/23. The charity has a strong relationship with De Montfort University and have no expectation of a significant reduction to the block grant after 2022/23. The charity has carried out forecasting based on different income stream scenarios to approve a budget for the 2022/23 year, and this will be regularly monitored and reviewed and action taken by the trustee board if required. Taking all of the above into account, the trustees have reasonable expectations that the charity has adequate resources to continue in operational existence for the foreseeable future. They continue to believe that the going concern basis of accounting is appropriate in preparing the annual financial statements.

Fund accounting

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the 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.

18

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

2. Accounting policies (continued)

Income

All incoming resources are recognised once the charity has entitlement to the resources, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Expenditure is classified under charitable activity rather than the type of expense, in order to provide more useful information to users of the financial statements. Where costs cannot be directly attributed to particular heading, they have been allocated to activities on a basis consistent with use of the resources.

Raising funds are those incurred in seeking voluntary contributions to enable the charitable company to carry out its charitable activities, these do not include the costs of disseminating information in support of the charitable activities.

Support and governance costs which cannot be directly attributable to a specific activity have been allocated to activities on a basis consistent with the use of the resources. Governance costs comprise the costs of running the charity, including strategic planning for its future development, external audit and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

Tangible fixed assets and depreciation

Tangible fixed assets are initially recorded at costs and subsequently measured at cost net of depreciation and any impairment losses. Tangible fixed assets with a cost price in excess of £2,000 are capitalised and all other expenditure is charged to the statement of financial activities in the year incurred.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation of the asset less any residual value, except for land over its estimated useful economic life. It is calculated at the following annual rates:

Fixtures & fittings - 20 - 33% Straight Line Computer equipment - 33% Straight Line

19

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

2. Accounting policies (continued)

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.

Jointly controlled entity

The charitable company has a long term interest and shares, controlled under contractual arrangements that is classified as a jointly controlled entity.

Stocks

Stock consisting of goods purchased for resale are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items.

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 liabilities of a kind that qualify as basic financial instruments and are not considered to be of financial nature. Such financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with exception.

Debtors

Trade debtors 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 debtors and other debtors 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, other short-term liquid investments with original maturities of three months or less.

Creditors

Creditors are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

20

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

2. Accounting policies (continued)

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.

Pensions

The charitable company participates in the Students’ Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. 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 charitable company. Therefore the pension charge shown in the financial statements represents the contributions payable in the year, as under current accounting standards the contributions are accounted for as if the scheme were a defined contributions scheme.

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.

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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3. Legal status of the charitable company

De Montfort University Students’ Union (formerly De Montfort University Students Union Limited) is a private incorporated charitable company (company number 06634464) and is also registered at the Charity Commission in England and Wales (charity number 1138587). The charitable company is limited by guarantee and as such has no issued share capital.

On 1 March 2022, the charity changed its name to De Montfort University Students’ Union from De Montfort University Students Union Limited.

The address of the charitable company’s registered office and principal place of business is First Floor, Campus Centre Building, Mill Lane, Leicester, LE2 7DR.

The main aims of De Montfort University Students’ Union (formerly De Montfort University Students Union Limited) are to advance the education of the students of De Montfort University for the public benefit.

21

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

4. Income from

Restricted
funds
2022
£
Unrestricted
funds
2022
£
Donations and legacies
Block grant income
-
1,221,186
Grant of services
accommodation
-
150,000
Grant of CEO Support
-
14,500
Other grant income
-
2,456



Sub-total
-
1,388,142



Charitable activities
Bars and catering
-
246,570
Shops
-
73,931
Membership services
144,662
-



Sub-total
144,662
320,501



Other trading activities
Commercial marketing and
sponsorship
-
75,150



Sub-total
-
75,150



Investment income
-
1,512



Total
144,662
1,785,305


 Total
funds
2022
£
1,221,186
150,000
14,500
2,456
1,388,142
246,570
73,931
144,662
465,163
75,150
75,150
1,512
1,929,967		 Total
funds
2021
£
1,216,248
150,000
70,000
87,489

1,523,737
4,118
28,106
48,065

80,289
26,852

26,852

53

1,630,931


5. Other incoming resources

Restricted Unrestricted Total Total
funds funds funds funds
2022 2022 2022 2021
£ £ £ £
Other income -
 7,578

 7,578
 34,757

22

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

6. Analysis of expenditure

Direct
Supplies
£
Raising funds
Commercial marketing and
sponsorship
4,101
Sub-total
4,101
Charitable activities
Welfare, advice and
representation
50,562
Bars and catering
177,618
Shops
32,676
Membership services
219,961
Sub-total
480,817
Total
484,918		 Direct
staff
costs
£
1,216
1,216
246,895
83,949
20,903
339,436
691,183
692,399		 Other
direct
costs
£
920
920
21,218
2,843
3,092
2,625
29,778
30,698		 Support
Costs
£
53,137
53,137
151,531
211,187
59,912
144,032
566,662
619,799		 2022
£
59,374
59,374
470,206
475,597
116,583
706,054
1,768,440
1,827,814		 2021
£
87,999
87,999
530,160
329,743
119,657
643,619
1,623,179
1,711,178

Other direct costs comprised

Depreciation
Repairs and renewals
Other
Total		 2022
£
20,951
3,190
6,557

30,698		 2021
£
22,057
5,339
3,851
31,247

23

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

7. Analysis of the support costs

Staff
costs
£
Raising funds
Commercial marketing
and sponsorship
26,391


Sub-total
26,391


Charitable activities
Welfare, advice and
representation
65,979
Bar and catering
79,174
Shops
26,391
Membership services
65,978


Sub-total
237,522


Total
263,913


Other costs comprised
Repairs and renewals
Insurances
Sundry supplies
Audit and accountancy fees
VAT partial exemption adjustment
Recharge of CEO Support
Total
8.
Governance costs
Audit, accountancy and legal fees		 Rent
£
7,500

7,500

30,000
75,000
15,000
22,500

142,500

150,000
 Other
costs
£
19,246
19,246
55,552
57,013
18,521
55,554
186,640
205,886



2022
£
53,137
53,137
151,531
211,187
59,912
144,032
566,662
619,799
2022
£
12,424
18,549
118,638
28,350
13,425
14,500

205,886

2022
£
75,217		 2021
£
51,406
51,406
143,263
203,217
55,406
135,764
537,650
589,056
2021
£
1,924
19,776
116,355
21,024
-
70,000
229,079
2021
£
67,078


24

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

9. Analysis of staff costs and numbers

Total staff emoluments for the year were as follows:
Wages and salaries costs
Social security costs
Pension defined benefit scheme
Pension contribution scheme
Total		 2022
£
951,387
79,389
(105,692)
31,228

956,312		 2021
£
809,202
64,367
186,858
36,351
1,096,778

During the year the charitable company made redundancy payments and payments in lieu of notice amounting to £4,527 (2021: £34,377).

The pension costs are allocated to activities in proportion to related staffing costs incurred.

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

Commercial activities
Charitable activities
Admin and management
Total staff		 2022
No.
26
22
10

58		 2021
No.
8
24
6
38

There were no members of staff who received emoluments, including benefits in kind, within the range of £60,001 - £70,000 (2021: £Nil)

10. Trustees' remuneration and expenses and cost of key management personnel

Trustees’ remuneration

Each of the Executive Committee's sabbatical officers received remuneration as authorised in the Union's governing document for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities. Their remuneration amounted to £102,612 (2021: £ 101,948) in aggregate. The split as detailed below:

R Rawles - £728 (2021: £2,001) N Nguwo - £16,162 (2021: £Nil) M Dasani - £1,796 (2021: £Nil) A Sawjani - £21,550 (2021: £1,758) A Khan - £1,796 (2021: £Nil) J Dine-Hart - £19,835 (2021: £20,380) B Smith - £19,835 (2021: £20,380) P Subramanian - £19,115 (2021: £2,001) A Iqbal - £1,795 (2021: £Nil)

During the year ended 31 July 2021, remuneration was paid to D Rattanpal amounting to £18,703, L Flowers amounting to £18,022, and A Ismail amounting to £18,703, who all resigned on 30 June 2021.

During the year pension payments were made to the NEST scheme as follows:

N Nguwo £269 (2021: £Nil) B Smith £992 (2021: £839) J Dine-Hart £992 (2021: £1,007) A Sawjani £180 (2021: £88) P Subramanian £956 (2021: £100) M Dasani £90 (2021: £Nil)

25

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

10. Trustees' remuneration and expenses and cost of key management personnel (continued) Trustees’ remuneration (continued)

A Khan £90 (2021: £Nil) A Iqbal £90 (2021: £Nil)

During the year end 31 July 2021, pension payments were made to NEST for D Rattanpal amounting to £923, L Flowers amounting to £889 and A Ismail amounting to £923, who all resigned on 30 June 2021.

During the year, six (2021: two) trustees received travelling expenses totalling £470 ( 2021: £20)

Key management remuneration

The key management personnel of the charitable company comprise the trustees and members of the DSU staff management committee that are responsible for the day to day running of the charity. The total employee benefits for key management personnel of the charitable company were £308,379 (2021: £206,340).

11. Net income

This is arrived at after charging:

2022 2021
£ £
Depreciation of owned assets 20,951 22,057

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

Audit services – statutory audit of the charitable company
Other non-audit services		 2022
£
22,410
5,940

28,350		 2021
£
16,600
4,400
21,000

26

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

12. Tangible fixed assets

Cost
At 1 August 2021
Additions
At 31 July 2022
Depreciation
At 1 August 2021
Charge for the year
At 31 July 2022
Net book value
At 31 July 2022
At 31 July 2021
13. Stocks
Finishes goods and goods for resale
14. Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 Fixtures &
fittings
£
286,780
31,276

318,056

272,098
20,297

292,395

25,661

14,682
 Computer
equipment
£
39,856
20,192

60,048

39,856
654

40,510

19,538

-

2022
£
20,273

2022
£
19,501
5,922
19,752

45,175		 Total
£
326,636
51,468
378,104
311,954
20,951
332,905
45,199
14,682
2021
£
29,242
2021
£
12,539
18,680
20,080
51,299

27

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

15. Creditors:
Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred Income
Deferred income at 1 August 2021
Resources deferred in the year
Amounts released from previous year
Deferred income at 31 July 2022		 2022
£
25,234
21,782
854
76,248

124,118


 2021
£
36,713
20,101
590
51,260
108,664
£
28,668
43,323
(28,668)
43,323

The deferred income at 31 July 2022, relates to events for the next year.

28

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

16.
Statement of funds
Current year:
At 1
August 2021
£
Incoming
resources
£
Resources
expended
£
Restricted funds
Clubs and societies
117,700
144,662
(161,146)




Unrestricted funds
General funds
558,784
1,792,883
(1,821,561)
Faculty development
reserve
55,500
-
(20,951)




Total unrestricted funds
614,284
1,792,883
(1,842,512)




Pension reserve
(1,065,140)
-
175,844




Total funds
(333,156)
1,937,545
(1,827,814)




Previous year:
At 1
August 2020
£
Incoming
resources
£
Resources
expended
£
Restricted funds
Clubs and societies
128,460
38,065
(48,825)




Unrestricted funds
General fund
491,356
1,627,622
(1,520,194)
Faculty development
reserve
37,557
-
(22,057)




Total unrestricted funds
528,913
1,627,622
(1,542,251)




Pension reserve
(945,039)
-
(120,101)




Total funds
(287,666)
1,665,687
(1,711,177)



 Transfer
£
-
(100,000)
100,000
-
-
-
Transfer
£
-
(40,000)
40,000
-
-
-
At 31 July
2022
£
101,216

430,106
134,549

564,655
(889,296)
(223,425)
At 31 July
2021
£
117,700

558,784
55,500

614,284

(1,065,140)

(333,156)



Clubs and societies

Restricted funds represent funds raised and administered by the Union for the specific benefit of clubs and societies and as such are ring fenced for the future benefit of that specific club or society.

Facility development reserve

The designated fund for investment will cover the refurbishment of our commercial areas and administrative space. This will allow DSU to take advantage of future opportunities and risks. As such the designated funds are excluded from reserves as per the Charities Commission definition.

Transfers

A transfer has been made from the general reserve to the facility development reserve for refurbishments planned for the diner and downstairs space of the building.

29

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

17.
Analysis of net assets between funds
Current year:
Restricted
funds
£
Tangible fixed assets
-
Current assets
101,216
Creditors due within
one year
-
Pension liability
-

101,216


Previous year:
Restricted
funds
£
Tangible fixed assets
-
Current assets
117,700
Creditors due within
one year
-
Pension liability
-


117,700

 General
funds
£
Faculty
development
reserve
£
Pension
reserve
£
-
45,199
-
554,224
89,350
-
(124,118)
-
-
-
-
(889,296)
430,106
134,549
(889,296)


General
funds
£
Faculty
development
reserve
£
Pension
reserve
£
-
14,682
-
667,448
40,818
-
(108,664)
-
-
-
-
(1,065,140)


558,784
55,500
(1,065,140)

 Total
funds
£
45,199
744,790
(124,118)
(889,296)

(223,425)
Total
funds
£
14,682
825,966
(108,664)
(1,065,140)

(333,156)

18. Reconciliation of net income to net cash flow from operating activities

Net income for the reporting period
Adjustments for:
Depreciation charges
Interest on investments
Decrease/(increase) in stocks
Decrease in debtors
(Increase)/decrease in creditors
Movement on defined pension scheme liability		 2022
£
109,731
20,951
(1,512)
8,969
6,124
15,454
(175,844)

(16,127)		 2021
£
(45,490)
22,057
(53)
(984)
578
(34,842)
120,101
61,367

19. Pension costs

The charitable company participates in the Students’ Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. 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 charitable company. Under the accounting standard FRS102 and Charity SORP (FRS102), in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year.

30

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

19. Pension costs (continued)

The charitable company participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 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 £119.1m 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 £140.9m. The assumptions which have the most significant effect upon the results of the Valuation are those relating to the sustained low yield on government bonds.

The following assumptions 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 expressed in monetary terms. This has resulted in an increase in contributions by 8% from 1 October 2021 and by a further 5% each year until July 2035. 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. In addition to the above contributions, The Union also pays its share of the Scheme’s levy to the Pension Protection Fund. FRS102 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 contribution to eliminating the shortfall was £62,151 for the year ended 31 July 2022 (2021: £57,828).

Therefore, at 31 July 2022, the balance sheet of charitable company includes a liability of £889,296 (2021: £1,065,140), which represents the net present value of all future contributions towards eliminating this shortfall. The discount rate used is 3.7% (2021: 1.75%) 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:

Balance brought forward
Contributions made in the year
Charge to statement of financial activities
Balance carried forward		 2022
£
1,065,140
(62,151)
(113,693)

889,296		 2021
£
945,039
(57,828)
177,929
1,065,140

31

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

19. Pension costs (continued)

In addition, the Charitable company paid Pension Protection Fund levy of £3,476 (2021: £8,929) during the year.

The Charitable company also contributes to The National Employment Savings Trust (NEST) a defined contribution scheme. During the year contributions were made amounting to £31,228 (2021: £36,351). At the year end an amount of £Nil (2021: £35) was due with respect to the pension contributions.

20. Related party transactions

The De Montfort University Students’ Union is in receipt of a recurrent grant from its parent institution, De Montfort University of £1,221,186 (2021: £ 1,216,248).

In addition, the De Montfort University Students’ Union occupies its building and receives certain people related services on a free of charge basis. This is under an informal license subject to the De Montfort University Students’ Union maintaining the building in a good state of repair. As a result, an estimated value to De Montfort University Students’ Union for the free serviced accommodation has been included in the accounts. This has been valued at £150,000 (2021: £150,000) based on market prices within Leicester. This income can be seen in note 4 of the financial statements under accommodation costs.

The De Montfort University Students’ Union has also received CEO support from De Montfort University on a free of charge basis. As a result, an estimated value to De Montfort University Students’ Union for this free support has been included in the accounts.

This has been valued at £14,500 (2021: £70,000) based on an estimation of the time spent on duties for De Montfort University Students’ Union and market rate of pay for such duties. This income can be seen in note 4 of the financial statements under CEO support.

Income of £27,301 (2021: £7,165) was collected and purchases of £97,064 (2021: £45,032) were made on behalf of De Montfort University during the year. These transactions were reimbursed and recharged respectively to De Montfort University with a balance owing from De Montfort University Students’ Union to De Montfort University of £6,558 (2021: £13,638) at the year-end date. Income of £nil (2021: £29,000) was collected in relation to De Montfort University contributions for commercial staff.

Purchases of £421 (2021: £Nil) were made from De Montfort Expertise Ltd, a wholly owned subsidiary of De Montfort University.

Student Union Lettings Limited (trading as Sulets)

On 1 August 2012, the trade and assets of the lettings operation (previously known as DSU Lettings) were transferred to a new limited company Student Union Lettings Limited (trading as Sulets). Sulets is a registered charity and company limited by guarantee which is jointly controlled by DSU and The University of Leicester Students Union (ULSU). ULSC controls 50% of Sulets through the 50% membership held by their subsidiary company, University of Leicester Students’ Union Trading Limited. This collaboration with ULSU offers many commercial advantages within student lettings including contracts with external Halls Providers.

32

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

20. Related party transactions ( continued )

Student Union Lettings Limited (trading as Sulets) ( continued )

Income
Expenditure
Net movements in funds
Balance sheet
Fixed assets
Current assets
Creditors: amounts falling due within 1 year
Balance carried forward		 2022
£
1,459,492
(1,328,056)

131,436

2022
£
265,304
1,491,942
(115,905)

1,641,341		 2021
£
1,912,484
(1,705,926)
206,558
2021
£
27,129
1,654,900
(172,124)
1,509,905

The charitable company constitutes 50% of the membership, therefore the charitable company’s share of income is £729,746 (2021: £956,242) and share of expenditure £664,028 (2021: £852,963). The charitable company’s share of the total funds at 31 July 2022 is £820,671 (2021: £754,953).

During the year the charitable company received £10,000 (2021: £10,000) from Sulets for advertising. In addition, Sulets paid £20,000 (2021: £20,335) for finance, HR support and rent. All funds generated by Sulets are restricted for use by Sulets in line with the objects of that charity.

21. Controlling party

The trustees consider that the ultimate control of DSU rests with its membership.

33

DE MONTFORT UNIVERSITY STUDENTS’ UNION (FORMERLY DE MONTFORT UNIVERSITY STUDENTS UNION LIMITED)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 (continued)

22. Statement of financial activities incorporating income and expenditure accounts for the year ended 31 July 2021

Restricted
funds
£
Unrestricted
funds
£
Income from:
Donations and legacies
-
1,523,737
Charitable activities
38,065
42,224
Other trading activities
-
26,852
Investment income
-
53
Other income
-
34,757



Total
38,065
1,627,623



Expenditure on:
Raising funds
-
87,999
Charitable activities
168,926
1,454,253



Total
168,926
1,542,252



Net movements
(130,861)
85,371


 Total
funds
£
1,523,737
80,289
26,852
53
34,757
1,665,688
87,999
1,623,179
1,711,178
(45,490)

34