## **CONTENTS** ||Page| |---|---| |**Trustees’ Annual Report**|| |**Reference and Administrative Details**|1| |**Structure, Governance and Management**|3| |**Objectives and Charitable Activities, Statement of Public Benefit**|7| |**Financial Review, Risk Management**|9| |**Statement of Trustees’ Responsibilities**|10| |**Independent Auditor’s Report**|11| |**Consolidated Statement of Financial Activities**|13| |**Consolidated and Charity Balance Sheets**|15| |**Consolidated group statement of cash flows**|16| |**Charity statement of cash flows**|17| |**Notes to the Consolidated Financial Statements**|18 to 27| ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** The trustees, who are also directors of the charity for the purpose of the Companies Act 2006, present their annual report with the audited consolidated financial statements of the charity for the year ended 31 July 2021. The trustees confirm that the annual report and financial statements of the Company comply with current statutory requirements, the requirements of the Company’s governing document and the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019). ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company Number** 07366779 (England and Wales) **Registered Charity Number** 1139462 ## **Registered Office** CUSU Tel: 02477 655200 1[st] Floor Fax: 02477 655239 4 Jordan Well www.cusu.org Coventry West Midlands CV1 5QT ## **External Trustees** The following trustees are also directors of the company: Name Position Appointed Resigned Mrs Jacqui Clements Chair 30 September 2019 Mr Tim Holmes 1 July 2018 30 June 2021 Dr Baljit Dhadda 30 November 2017 17 February 2021 Dr Furrkh Aslam 22 February 2019 Mr James Hunt 1 September 2020 Mr Jeremy Robinson 29 April 2021 Mr Larry Coltman 29 April 2021 ## **Full time (Sabbatical) Officers** The Sabbatical Officers are elected in to office by the student population and to form the Executive Committee. The Sabbatical Officers that held office during the year are: |Name|Position|Appointed|Term Expired| |---|---|---|---| |Augustine Nwosu|Deputy Chair|6 January 2020|30 June 2021| |Obinna Okereke||1 July 2020|| |Abimbola Ojo||1 July 2019|30 June 2021| |Favour Sanusi||1 July 2019|30 June 2021| |Indica Norcup||1 July 2021|| |Catarina Fernandes Cardoso Deputy Chair||1 July 2021|| |Gabriela Sulikowska||1 July 2021|| ## **Student Trustees** The Student Trustees that held office during the year were: Name Position Appointed Resigned Adam Khan 1 September 2020 1 July 2021 Oluwafunmini Aluko 1 September 2020 1 July 2021 1 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 JULY 2021** ## **Management** Mr John Abell Mr Paul Burt Mr Daniel Connolly Mr Matt Wall Mrs Rebecca Smith Miss Elizabeth Collins Chief Executive Officer Chief Operating Officer Director of Communications Director of Enterprise Director of Union Development Director of Finance and Risk ## **Senior Statutory Auditor** Gregg Olner MPhil BA(Hons) ACA ## **Auditors** Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor Highdown House 11 Highdown Road Leamington Spa CV31 1XT ## **Solicitors** Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES ## **Bankers** The Co-Operative Bank plc PO Box 101 1 Balloon Street Manchester M60 4EP 2 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** CUSU’s purpose is to represent, promote and advance the educational, welfare, sporting, social and cultural interests of all students enrolled across Coventry University and the Coventry University Group (CUG) and be directed by those students. CUSU represents the interests of Coventry and CUG students both locally and nationally and exists to encourage and enable the wide participation of all students in that representation. ## **Governing document** The charity is a company limited by guarantee as defined by the Companies Act 2006 and does not have any share capital. The charity is governed by the Memorandum and Articles of Association. The guarantors are the members of CUSU, being registered students at Coventry University as defined by the Articles of Association. During 2019-20 work began on revisions to our Articles of Association. The pandemic however has caused a delay in the process however the new Articles should take effect in Q2 2021/22. ## **Board of Trustees** CUSU is overseen by its Board of Trustees which is ultimately responsible for the governance of the charity and ensures that the Students’ Union: complies with relevant legal frameworks, makes sound financial decisions, has a strategy that meets its charitable objectives. The Board is responsible for the management, administration, governance, and strategy for CUSU. The Board operates on democratic principles, working for and with our members who are the students of Coventry University and the CU Group. The Board is legally responsible for CUSU and ensuring CUSU complies with relevant laws and legal frameworks. The Board’s power is subject to the decisions or policy made by the members via CUSU’s democratic structures. The trustees may override the decisions or policy only on the grounds of financial considerations, charity or education law or other legal requirements or the reputation or best interests of CUSU. The Board, assisted by sub-committees, has delegated the day to day operations of CUSU to the Chief Executive who is accountable to the Board and sub-committees. The Chief Executive is further assisted by a management team. ## **In 2020-2021** The Board of Trustees had eleven members comprising: - Four full-time executive officers - Two appointed student members - Two members appointed by Coventry University Board of Governors - • Three external trustees At 31 July 2021 there were 12 members in post. The new articles of association allow up to 18 members of Board so consideration is being made as to whether to recruit new members. The Board met seven times during the year to receive reports from sub-committees, officers and management to review CUSU’s performance and administration. The Board also met for a strategy day. ## **Effectiveness review** During the year a Board Effectiveness task-and-finish group was formed to review governance structures, terms of reference and processes. This resulted in several suggested improvements that were approved at Board meetings through the year. The main changes have led to better ways of working in the sub-committees to avoid duplication with main Board. Although the task-and-finish group has now concluded, its work will be continued in the Appointments and Governance Committee. ## **Sub-committees of Board of Trustees** The following sub-committees report to Board of Trustees: - Commercial Services Board - Finance and Audit Committee - Human Resources Committee - Appointments and Governance Committee These committees each met a minimum of three times this year except for the Appointments Committee which only meets when recruitment to fill an external trustee or sub-committee position is required. In 2021/22 the Human Resources Committee will be changing name to People and Culture Committee to better reflect its purpose. 3 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## **Recruitment, appointment and training of new trustees** The Students’ Union Articles of Association governs the terms of office, appointment process and responsibilities of the trustees. The trustees are provided with comprehensive training and briefings on their roles. Two vacant trustee positions were recruited during this course of this year: - External Trustee (as the incumbent had reached the end of their term of service) - Board of Governors Appointed Trustee (as the incumbent had reached the end of their term of service) ## **Members of the Union** ## _Ordinary Members_ Ordinary membership is open to all students who do not opt out of membership of CUSU under clause 22 (c) of the Education Act 1994 and are enrolled on any course at Coventry University or the CU Group, to Sabbatical Officers of CUSU, and where appropriate to students on Coventry University courses at other organisations. Ordinary Members are entitled to propose, stand and vote in CUSU elections, and propose and vote on motions in referenda. ## _Associate Members_ Associate Membership is open to all members of Coventry University, the CUG, CUSU staff, past students of the University and to other persons agreed to by the Executive Committee who shall determine the membership fee. Associate Members may use most of the services of CUSU but shall not: - Vote or stand in CUSU elections or meetings - Hold officer or committee positions - Represent CUSU in competitive sport - Access the Advice Centre Associate membership may be revoked by Executive Committee in accordance with CUSU disciplinary procedures. ## _Honorary Members_ Honorary Membership is awarded to any persons considered appropriate by Executive Committee, and to members of Executive Committee on their last day of office unless considered otherwise by Executive Committee. Honorary Members enjoy the rights of Associate Members without fee or charge. Honorary membership may be revoked by Executive Committee. ## **Executive Committees, Student Councils, All Student Meetings** CUSU operates on democratic principles, the voice of students is represented through a series of bodies. In 2020-21 those bodies were: - Executive Committee Coventry - Executive Committee CU Scarborough - Executive Committee CU London - Executive Committee London - Student Council (known as Union Affairs Committee) - Referenda (though no referenda were held) - Forums responsible for Education, Activities and Welfare ## _Union Affairs Committee_ Union Affairs Committee comprises four of elected Sabbatical Officers, a Postgraduate Research rep, and an Executive Committee Officer for each Faculty of the University and Location in the CU Group. This committee represent the interests of all members and CUSU to the University and other external bodies and directs the everyday affairs of CUSU in accordance with CUSU policy. ## _Sabbatical Officers_ There are seven elected Sabbatical Officers. Four of these (sabbatical trustees) act as trustees of CUSU and directors of any company established by CUSU, they are responsible for setting the strategic direction of CUSU and any company established by CUSU, as required by the Board of Trustees. The three other Sabbatical Officers (Coventry Sabbaticals) sit on the Executive Committee. 4 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## _Executive Committee_ The Executive Committees in each CUSU campus represent the interests and direct the activities for students who study on those campuses and can propose policy and campaigns to Union Affairs Committee as required. ## _Election_ The Union Affairs and Executive committees are elected by the ordinary members of CUSU by secret ballot. Due to the pandemic this year elections were held online only and over a 24-hour period. In total. The union received nominations from 410 individuals with 125 remaining at the point of voting. Nominations were received for 27 of the 28 positions available. Over the voting period 3,523 individuals casted a total of 22,682 votes. This year saw a number of changes to the elections with only digital campaigning and all physical campaigning prohibited. New initiatives were also introduced including candidate wellbeing programmes, candidate development programmes, voter incentives and a 24hr broadcast. 21 formal complaints were received over the election period with one resulting in disqualification. Turnout was lower than the previous year due to the pandemic restrictions however Board was very satisfied with the process and the engagement. ## _Policy_ Union policies lapse after three years unless renewed by Union Affairs Committee. Members are notified of policies due to lapse and may speak in favour of renewing the motion. A simple majority vote is needed to renew it. CUSU encourages Freedom of Speech and diversity of opinion in all debates and campus activity. ## _Forums_ Education, activities and welfare forums are online spaces to get student support and input into the work of CUSU. They help with event organisation, support and advice, and raising awareness and can provide reports to the Executive committees. ## _Referenda_ Referenda are the highest decision-making body within CUSU. Voting is open to all ordinary members and if a referendum receives a total turnout of 5% of the membership, or a turnout of more than 2.5% in support, then the result is binding and overrules any previous decisions by the Union Affairs Committee, Local Executive Committees or Forum. If a lower level of turnout is achieved the result is not binding but is an indicative vote for Union Affairs Committee and Local Executive Committees. There were no referenda this year. ## **Relationship with Coventry University and other related parties** ## _Coventry University Group_ Coventry University is the owner of the premises called “The Hub” which it lets to CUSU under a licence agreement. Under the licence agreement the University provides services such as power, cleaning, custodial services and landlord’s repairs. The provision of this licence has been valued as a Service in Kind. CUSU also receives a Block Grant from the University as the Education Act 1994 imposes a duty on the University to ensure financial viability of its student representative body. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future. This year our block grant remained the same at £1,583,000. Growth in recent years meant The Hub was no longer able to accommodate CUSU staff and no other University premises had capacity to house them. To solve this a five-year lease was secured on private premises in Coventry at Park House in 2019. The University granted additional funding to support this expansion of £100,000 per year over five years. We at CUSU are thankful for the University’s continuing support. Importantly, we continue to benefit from positive relationships with University staff at all levels and locations. We aspire to make a continued positive contribution to the lives of our members and the campus community. The University plays an important role within CUSU, having representatives on the Board of Trustees, Management, CUSU Services and Finance sub-committees. CUSU also played a pivotal role in Project Intrepid, the University’s student engagement through the pandemic project that ran throughout 2020-21. ## CUSU Services Limited CUSU is the beneficial owner of CUSU Services Limited, a Company limited by shares incorporated on 11 July 2011. CUSU Services Limited manages the commercial aspects of CUSU including the lease of any commercial property. As the parent company CUSU prepared these consolidated financial statements incorporating CUSU Services Limited. CUSU provides management services to CUSU Services Limited for which a charge is made. The taxable profits of CUSU Services Limited are donated to CUSU under Gift Aid. CUSU Services works to diversify income to CUSU (charity) through the following business units: 5 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** - **Phoenix Events -** An events agency powered by students to deliver a range of events for the city of Coventry and our students. Delivering nightclub events and normal SU activities as well as community events such as Coventry Festival of Running, Coventry Comedy Festival and partnership delivery with UK City of Culture. This business unit has been most impacted by the pandemic which has led to redundancies in this area. In particular we have had to postpone Coventry Festival of Running until October 2021. As this is the highest turnover event run by the Students’ Union this has had significant impact on our turnover. - **Phoenix Creative -** Our creative agency with an expertise in youth culture and engagement. Delivering graphic design, web design, illustration, print, digital, video and animation. Phoenix Creative has secured significant contracts this year with West Midlands Combined Authority, Coventry City of Culture and several other Students’ Unions. - **Phoenix Employability and Training** - This department has delivered University accredited modules for over 10 years through the University Add+Vantage scheme. We have made a digital pivot over the last year to take this online. We are unique in being the only SU in the country that employs lecturing staff. Phoenix Training has secured a major contract with Coventry City of Culture to provide marketing, recruitment and training for the 5000 strong City Host volunteering scheme. This is a significant achievement and should lead to a large growth in future activity in this area. - **Phoenix Partnerships** - This media sales and advertising arm of our business-to-business sales. We traditionally sell media and exhibition space to access our market of 40,000 students. This is through a range of traditional media sales and fair sales including Freshers’ Fair. This activity has been impacted the pandemic with the reduction in face-to-face activity and has done well to pivot to digital income generation. - **Phoenix Digital -** This is our development team for digital solutions including software development and technical partnerships. Work is underway on a discount and loyalty platform called Student Extra to provide a digital solution to students to gain money saving advice, discounts and offers. These services have raised additional income for CUSU. As well as our planned services we have successfully managed the operations and staffing for Covid Test Centres for both the CUG and Coventry City Council. This was a significant operation which as well as providing us with £150,000 in turnover, also allowed us to provide employment worth over £120,000 to students. ## **Commercial Services Governance** It is acknowledged that the development of these services brings more risks to the organisation and these risks are considered and overseen by CUSU Services board and the Board of Trustees. To reduce these risks the structure of CUSU Services Board has been reviewed and we have increased the number of external directors from two to six to provide extra expertise and oversite in the new business ideas that Commercial Services Board is exploring. The Commercial Services Board have developed the following strategy with the aim of providing £400,000 in income to the Charity over the course of the strategy (2022 to 2025): **Vision:** ‘By 2025, CUSU Services will be regarded as one of the most innovative charity trading subsidiaries in the UK. CUSU Services will provide a portfolio that give CUSU a strong surplus, efficiencies and civic capital across the city and within our wider community.’ **Values** : Quality, Bravery, Innovation, Collaboration, Community Focus. ## **Strategic Priorities:** |**Strategic Priorities: **|| |---|---| |**Strategic Priority**|**Measure of Success**| |Generate significant surplus and to diversify
income to support the charity|Financial performance agreed annually through the budget
operationalplanning cycle| |Reduce CUSU expenditure and make savings for
the charity|Financial
performance
and
resource
allocation
demonstrating this clearly through annual report| |To promote the charitable aims of CUSU and
improve its reputation|Perception of CUSU from stakeholders| |Development of additional student opportunities
throughthe commercialportfolio|Number of students we upskill and employ through
operations| Although the Director of Enterprise resigned towards the end of the year, we have successfully recruited and look forward to continued growth and innovation in our commercial enterprises. ## _National Union of Students (NUS)_ CUSU has been engaged in the training and support provided by NUS in the last year through summer convention for elected officers, attendance at the national and other relevant conferences. This year all events have been held online. CUSU continues to engage with NUS with various items of policy being submitted to National and Liberation Conferences over the last year. 6 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## **OBEJCTIVES AND CHARITABLE ACTIVITIES** ## _Our mission_ - _‘_ To represent the interests of all students of Coventry University’. This means representing our students’ academic, welfare, health & wellbeing, sporting, social, personal development, political, and cultural interests. And representing those interests for all students regardless of age, gender, nationality, sexuality, ethnicity, disability, or any other factor. ## _Our values_ We are student led, inclusive, accountable, democratic and transparent. We believe in innovation and being ethically and environmentally sound. We strive to create social groups and a sense of belonging to communities of students. We shall be partners with the University in improving the student education experience. As a membership organisation we strive to meet the needs of a diverse membership. ## **Strategic plan** The trustees instruct the senior management team, as well as all established and casual staff, to achieve the aims and objectives of the charity set out in our five-year strategic plan which finished in Summer 2020. This plan (The 2020 Vision) was approved by Student Council and the Board in May 2015 and is based on 6 strategic themes: Student Leadership, Quality Services, Student Participation, Internationalisation, Student Experience & Building Communities. The advent of COVID-19 in early 2020 necessitated a significant shift in how CUSU operates, many of the objectives of our planned strategy align with the needs COVID imposes but the rapidity of change it brings has changed our strategic focus. Board of Trustees and University Board of Governors approved a one-year interim strategy with 25 objectives across the following themes and enablers: ## _Theme_ - Improving the academic experience - Support when you need it - Developing skills - Creating communities ## _Enablers_ - University relationship - Finance and Resources - Governance Work continues on a longer term 4-year strategy from 2022 to 2025 based on the similar themes and this will be launched to members in January 2022. The focus of the next plan will be how we develop as a national – and now international – organisation, how we communicate and engage with students on a more individual level, develop more school-based activity, increase our activities in welfare and employability, and develop greater digital access to our offer. ## **Covid Mitigation – Operations** Covid has had a huge influence on the student experience for our members and lockdowns has meant much campus activity has been reduced. CUSU has needed to balance support and welfare for students with safety and guidance for staff members and volunteers. The organisation pivoted well to online operations when needed due to the work already undertaken in improving our digital skills, activities and offer to students. ## **Reserves Policy and Future Income Generation** CUSU will be working with the University (as principal funder) to develop a new reserves policy in 2021 / 2022 to recognise the increasing diversity of income as well as the increasingly complex higher education financial landscape. The University Add+Vantage scheme is to be changed in 2023/2024 which may result in a large income drop to CUSU. The Board has reviewed mitigations for when this happens to ensure it has limited impact on the activities of the Students’ Union. In particular the surplus from Add+Vantage is ring-fenced to provide educational activities within CUSU so these areas will need to be protected. CUSU Services Board will be investing in the business units throughout 2021 / 2022 to generate long term surpluses to replace the Add+Vanatage income. 7 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## **Membership Services and Engagement** The pandemic has obviously had a huge impact on student welfare and engagement this year as CUSU has adapted to digital delivery. Caseload for the SU Advice Centre has doubled and we have had to double the number of staff in this area as well as restructure our whole welfare department to cope with demand. This is due to a large increase in academic integrity cases as well as increasing numbers of students in financial hardship. Partnership with the University has been strong despite student officers often ‘caught in the middle’ of student anger over the pandemic and demands for tuition fee refunds. Project Intrepid has been successful in responding to other requests to support student welfare and improve the online learning experience. We have seen a decline in voters in CUSU elections and in sports and society memberships (despite making them free of charge). We will start 2021/22 with a decline from 48 to 40 sports clubs during the course of the pandemic and a large reduction in societies from 179 to 50. Next year we will be focussed on recovery in student engagement . There have been successes within these headline figures. Society numbers outside of Coventry have grown rapidly and Academic Society membership has grown by 20% across the group showing that some of our digital activity has been very successful and we will take that learning into next year. ## _Other Student Engagement Successes_ In 2020/21 CUSU has had some strong achievements: - Developed new digital services to better support students across the group as part of our long-term digital vision; - Organised more equality, diversity and inclusion events than ever before; - Trained over 900 course reps; - Significantly expanded our engagement with campuses outside Coventry; - Achieved a “Very Good” in the NUS Green Impact sustainability Awards; - Supported the University in distributing over £2M in hardship and emergency funding. ## **Statement of Public Benefit** The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing CUSU’s aims and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. In pursuit of its aims for the public benefit, CUSU will ensure the diversity of its membership is recognised, valued and supported. CUSU has established departments and services for the use of its members to support its work with the University and other organisations on behalf of students. These membership services include the CUSU Advice Centre; the CUSU Student Voice Department, the CUSU Sports and Societies Department the CUSU Volunteering department and the CUSU Employability Department. 8 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## **FINANCIAL REVIEW** ## **Covid Mitigation – Finances** As the full impact of the pandemic became clear, steps were taken to reduce expenditure in both CUSU Services and the charity (including pausing staff incremental bonuses and reducing recruitment). Lack of face-to-face activity (particularly in Sports) meant that there was significant underspend giving the charity a surplus significantly over budget for the year. During the first half of the year CUSU Services had to cancel or postpone many income generating activities resulting in a deficit against budget for the year. It was decided that as the financial ramifications of the pandemic could last for many months that the government furlough scheme should be used to protect as many jobs as possible. In the second half of the year commercial services did very well and in many cases exceeded budget (with activities like the Covid Testing Centres). Our Add+Vantage module scheme has a fantastic end to the year securing a surplus of over £300,000. This (alongside the reduced spend in the charity) has meant that CUSU has returned a significant surplus this year. This is needed as the uncertainty around the government spending review in higher education and the future of the Add+Vantage module scheme means that it is prudent for CUSUs reserves to be strong. ## **Reserves policy** The Charity Commission defines reserves as “that part of a charity’s income funds which can be made available to spend for any or all of the charity’s purposes once it has met its commitments and covered other planned expenditure”. The Trustees are aware of the general duty to apply charitable funds within a reasonable time receiving them. Therefore to justify the holding of reserves the charity needs a reserves policy which is based on realistic assessment of the required reserves. The board of trustees has identified that a minimum level of unrestricted funds should be set to counter balance trading uncertainty and provide a base level for stability. A target level of unrestricted funds has been set to allow for growth and for CUSU to take advantage of strategic opportunities for future growth. The current level of unrestricted funds should be set as follows: Minimum level - Three months operating costs plus an additional fund to cover redundancy costs for all staff plus legal costs associated with winding up of the Company. Target level - Six months operating costs plus an additional fund to cover redundancy costs for all staff plus legal costs associated with winding up of the Company. The board of trustees has approved CUSU’s reserves policy and identified the following reasons to hold reserves: - To provide financial stability to enable CUSU to continue to achieve its objective during challenging trading periods. - • To allow CUSU to take advantage of strategic development opportunities and plan for future growth. • To enable CUSU to make investment decisions in accordance with the investment policy and enable CUSU to consider opportunistic investments which may not be within the strategic plan. The Trustees also feel that additional funds should be set aside to meet longer term commitments such as leases and redundancy payments. With the current level of reserves £1,112,231, the Trustees believe sufficient funds exist to allow the continued operation of the company in the event of a significant drop in funding. Funds not required on an immediate basis will be invested in line with the investment policy. Trustees review this policy formally on an annual basis. ## **Review of the current year financial activities** CUSU’s gross income from all sources for this period totalled £3,517,230 and total expenditure of £3,128,196 including trading income and expenses from CUSU Services Limited. Total expenditure was incurred on wide ranging student benefits that we have provided during the year leaving a surplus of £389,034. ## **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 put in place to mitigate those risks. On appointment of a Director of Finance and Risk in the year the charity and trading company have undertaken full risk reviews which have resulted in a newly formatted and detailed risk register. A Risk Management Framework providing the mechanisms and systems to develop an overall approach to manage risks has been implemented along with a risk appetite statement which are approved by the Board of Trustees and the Finance and Audit Committee annually. The trustees have identified the reliance upon the Coventry University as the principal source of funding as a potential risk. CUSU would be in significant financial difficulty if this funding were to be reduced or withdrawn. To address this risk the trustees have established a Reserves Policy to ensure that funds are available for an orderly restricting to the new funding levels, the trustees are developing and implementing plans to generate new sources of income to lessen the reliance upon the University funding. 9 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2021** ## **Going Concern** The trustees have considered the reserves policy above and the working capital requirements for a period of 12 month from the date of this report and have reasonable expectation that CUSU has adequate resources to continue its operation for the foreseeable future. Accordingly the trustees continue to adopt the going concern basis for the preparation of the annual report and accounts. ## **PLANS FOR FUTURE GROWTH** ## **The future and Strategic Planning** The new strategic plan shows a series of objectives and KPIs to take the organisation through until 2022. The strategy will be monitored at regular intervals by the trustee board to ensure its relevance and it will be adapted if the needs of our membership change. ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The trustees (who are also the directors of Coventry University Students’ Union Limited for the purpose of company law) are responsible for preparing the Report of the Trustees 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **TRUSTEES’ STATEMENTS OF INFORMATION PROVIDED** In so far as the trustees are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that he auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006. The trustees’ are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from the legislation in other jurisdictions. ## **ON BEHALF OF THE TRUSTEES** **.................................................** Mrs Jacqui Clements 26 November 2021 10 ## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **Opinion** We have audited the financial statements of Coventry University Students' Union Limited (the 'charitable company') for the year ended 31 July 2021. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group’s and parent charitable company's affairs as at 31 July 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors 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 trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** 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: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. 11 ## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees Responsibilities, 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. ## **Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The audit process includes an assessment of the entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the company must comply in the ordinary course of its business. We have concluded that there are no such key laws and regulations that are particular to the company's activities. Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. Nevertheless, nothing has come to our attention that has given us significant cause for concern in the course of the procedures we have undertaken in order to give our opinion on whether the financial statements are free from material misstatement, as shown above. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. ## **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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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. Gregg Olner MPhil BA (Hons) ACA (Senior Statutory Auditor) for and on behalf of Harrison Beale & Owen Limited Chartered Accountants and Statutory Auditor Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT 26 November 2021 12 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021** ||**Note**|**Unrestricted**|**Total**|**Total**| |---|---|---|---|---| |||**Funds**|**2021**|**2020**| |||**£**|**£**|**£**| |**INCOMING AND ENDOWMENTS FROM**||||| |**Charitable activities**|5|||| |Sports clubs & societies||82,563|82,563|198,140| |Democracy & representation||1,849,779|1,849,779|1,879,233| |Volunteering & social work||601,337|601,337|467,851| |Satellite Campus||322,797|322,797|326,998| |Trading income|3|660,749|660,749|426,126| |Investment income|4|5|5|838| |||________|_______|________| |**Total**||3,517,230|3,517,230|3,299,186| |||________|_______|________| |**EXPENDITURE ON**||||| |Fundraising trading costs|6|582,694|582,694|459,196| |**Charitable activities**||||| |Sports clubs & societies|7|229,629|229,629|348,798| |Democracy & representation|7|410,892|410,892|538,994| |Volunteering & social work|7|185,835|185,835|387,782| |Students’ union advice centre|7|639,779|639,779|188,249| |Other central services|7|856,135|856,135|884,217| |Satellite Campus|7|223,232|223,232|237,233| |||________|_______|________| |**Total**||3,128,196|3,128,196|3,044,469| |||________|_______|________| |**Net income/(expenditure)**||389,034|389,034|254,717| |**Reconciliation of funds**||||| |Total funds brought forward|20|723,197|723,197|468,480| |||_______|_______|_______| |Total funds carried forward||1,112,231
_______|1,112,231
_______|723,197
_______| All incoming resources and resources expended derived from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities. 13 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2020** ||**Note**|**Unrestricted**|**Total**|**Total**| |---|---|---|---|---| |||**Funds**|**2020**|**2019**| |||**£**|**£**|**£**| |**INCOMING AND ENDOWMENTS FROM**||||| |**Charitable activities**|5|||| |Sports clubs & societies||198,140|198,140|249,124| |Democracy & representation||1,879,233|1,879,233|1,641,451| |Volunteering & social work||467,851|467,851|430,262| |Satellite Campus||326,998|326,998|266,289| |Trading income|3|426,126|426,126|490,404| |Investment income|4|838|838|170| |||________|________|________| |**Total**||3,299,186|3,299,186|3,077,700| |||________|________|________| |**EXPENDITURE ON**||||| |Fundraising trading costs|6|459,196|459,196|424,282| |**Charitable activities**||||| |Sports clubs & societies|7|348,798|348,798|316,354| |Democracy & representation|7|538,994|538,994|560,241| |Volunteering & social work|7|387,782|387,782|429,929| |Students’ union advice centre|7|188,249|188,249|188,860| |Other central services|7|884,217|884,217|929,915| |Satellite Campus|7|237,233|237,233|163,218| |||________|________|________| |**Total**||3,044,469|3,044,469|3,012,799| |||________|________|________| |**Net income/(expenditure)**||254,717|254,717|64,901| |**Reconciliation of funds**||||| |Total funds brought forward|20|468,480|468,480|403,579| |||_______|_______|_______| |Total funds carried forward||723,197
_______|723,197
_______|468,480
_______| All incoming resources and resources expended derived from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities. 14 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **BALANCE SHEETS AT 31 JULY 2021** ||**Note**|**2021**|**2021**|**2020**|**2020**| |---|---|---|---|---|---| |||**Group**|**Charity**|**Group**|**Charity**| |||**£**|**£**|**£**|**£**| |**FIXED ASSETS**|||||| |Tangible assets|13|62,087|60,064|74,585|70,538| |Investments|14|-|1|-|1| |||_______|_______|_______|______| |||62,087|60,065|74,585|70,539| |||_______|_______|_______|______| |**CURRENT ASSETS**|||||| |Stocks|15|5,661|-|6,289|-| |Debtors|16|403,905|660,664|171,011|549,532| |Cash at bank and in hand||1,295,045|1,055,415|983,740|764,231| |||________|________|________|_______| |||1,704,611|1,716,079|1,161,040|1,313,763| |**CREDITORS**|||||| |Amounts falling due within one year|17|(654,467)|(380,974)|(512,428)|(300,112)| |||________|________|________|________| |**NET CURRENT ASSETS**||1,050,144|1,335,105|648,612|1,013,651| |||________|________|________|________| |**TOTAL ASSETS LESS CURRENT**|||||| |**LIABILITIES**||1,112,231|1,395,170|723,197|1,084,190| |||_______|_______|_______|_______| |**NET ASSETS**||1,112,231|1,395,170|723,197|1,084,190| ||||||| |||_______|_______|_______|_______| |**FUNDS**|||||| |Unrestricted funds|20|1,112,231|1,395,170|723,197|1,084,190| |||_______|_______|_______|_______| |**TOTAL FUNDS**||1,112,231|1,395,170|723,197|1,084,190| |||_______|_______|_______|_______| The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. The financial statements were approved by the Board of Trustees on 26 November 2021 and were signed on its behalf by: ........................................ Mrs Jacqui Clements Trustee 15 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **CONSOLIDATED GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021** |Notes
**2021**
**£**
**Cash flows from operating activities:**
Net cash provided by / (used in) operating activities
1
355,096
**Cash flows from investing activities:**
Purchase of tangible fixed assets
(43,796)
Interest receivable
5
Net cash provided by / (used in) investing activities
(43,791)
**Change in cash and cash equivalents in the reporting**
**period**
311,305
Cash and cash equivalents at the beginning of the
reporting period
983,740
**Cash and cash equivalents at the end of the reporting**
**period**
1,295,045
1.
Reconciliation of net income/(expenditure) to net cash flow from operating activities
**2021**
**£**
Net income/(expenditure) for the reporting
period (as per the statement of financial
activities)
389,034
**Adjustments for:**
Depreciation charges
56,294
Interest receivable
(5)
(Increase)/decrease in stocks
628
(Increase)/decrease in debtors
(232,894)
Increase/(decrease) in creditors
142,039
**Net cash provided by (used in) operating**
**activities**
355,096|**2020**
**£**
493,342
(56,950)
838
(56,112)
437,230
546,510
983,740
**2020**
**£**
254,717
43,587
(838)
972
242,640
(47,736)| |---|---| ||493,342| ## **CASH AND CASH EQUIVALENTS** The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |**Year ended 31 July 2021**
Cash and cash equivalents
**Year ended 31 July 2020**
Cash and cash equivalents|**31.7.2021**
**1.8.2020**
**£**
**£**
1,295,045
983,740
**31.7.2020**
**1.8.2019**
**£**
**£**
983,740
546,510| |---|---| 16 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021** |Notes
**2021**
**£**
**Cash flows from operating activities:**
Net cash provided by (used in) operating activities
2
334,975
**Cash flows from investing activities:**
Purchase of tangible fixed assets
(43,796)
Interest receivable
5
Net cash provided by (used in) investing activities
(43,791)
**Change in cash and cash equivalents in the reporting**
**period**
291,184
Cash and cash equivalents at the beginning of the reporting
period
764,231
**Cash and cash equivalents at the end of the reporting**
**period**
1,055,415
2.
Reconciliation of net income/(expenditure) to net cash flow from operating activities
**2021**
**£**
Net income/(expenditure) for the reporting
period (as per the statement of financial
activities)
310,980
**Adjustments for:**
Depreciation charges
54,270
Interest receivable
(5)
(Increase)/decrease in debtors
(111,132)
Increase/(decrease) in creditors
80,862
**Net cash provided by (used in) operating**
**activities**
334,975||**2020**
**£**
501,659
(53,724)
838
(52,886)
448,773
315,458
764,231
**2020**
**£**
287,787
39,671
(838)
224,073
(49,034)| |---|---|---| |||501,659| ## **CASH AND CASH EQUIVALENTS** The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |**Year ended 31 July 2021**
Cash and cash equivalents
**Year ended 31 July 2020**
Cash and cash equivalents|**31.7.2021**
**1.8.2020**
**£**
1,055,415
764,231
**31.7.2020**
**1.8.19**
**£**
**£**
764,231
315,458| |---|---| 17 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **1. GENERAL INFORMATION** Coventry University Students’ Union Limited is a company limited by guarantee and is incorporated in England and Wales. It is also a registered charity as regulated by the Charity Commission for England and Wales. The address of the registered office is given in the company information on page 1 of these financial statements. ## **2. ACCOUNTING POLICIES** ## **Accounting convention** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The principal accounting policies of the Charity are set out below and have remained unchanged from the previous period. ## **Basis of consolidation** These financial statements consolidate the results, assets and liabilities of Coventry University Students’ Union Limited and its wholly owned trading subsidiary CUSU Services Limited on a line by line basis. No separate Statement of Financial Activities or Income & Expenditure Account is presented for the Charity because it has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. ## **Incoming resources** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Fund accounting** Unrestricted funds consist of funds which the charity may use for general purposes at the Trustees’ discretion; this includes designated funds which are designated for specific purposes. Restricted funds represent income contributions which are allocated to a particular purpose in accordance with the donor’s wishes. All investment income, gains and losses are allocated to appropriate funds. ## **Resources expended** Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Group to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Overheads and other costs not directly attributable to particular functional activity categories are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year either by reference to staff time or space occupied, as appropriate. The irrecoverable element of VAT is included with the items of expense to which it relates. Governance costs are those incurred in connection with administration, strategic planning for the future, external audit, 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** Fixed assets are stated at cost less accumulated depreciation and any provision for impairment. Assets are not capitalised below £3,000 cost per item/set. Depreciation is provided at the following annual rates in order to write off the cost over the estimated useful life of the asset. Motor vehicles excluding coaches and minibuses - Straight-line over 3 years Motor coaches and minibuses - Straight-line over 7 years Short leasehold - Straight-line over 7 years Improvements to property - Straight-line over 7 years Plant & machinery - Straight-line over 7 years Fixtures & Fittings - Straight-line over 3/5/7 years 18 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **ACCOUNTING POLICIES cont.....** ## **Stocks** Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. ## **Investments** Fixed asset investments are valued at cost less provision for impairment, as these assets are not readily saleable and reliable market value is not readily ascertainable. ## **Financial instruments** Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement. ## **Provisions** Provisions are recognised when Coventry University Students’ Union Limited has a present and legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. ## **Leasing commitments** Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease. ## **Taxation** Coventry University Students’ Union Limited is a body of persons established for charitable purposes only and as such is a charitable company within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, Coventry University Students’ Union Limited is potentially exempt from corporation tax on income and chargeable gains within categories covered by Part 11, Chapter 3 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes. Coventry University Students’ Union Limited receives no similar exemption in respect of Value Added Tax. ## **Pension scheme** Coventry University Students’ Union Limited participates in the Students’ Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of 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 underlying assets and liabilities can be directly attributed to Coventry University Students’ Union Limited. In these circumstances contributions are accounted for as if the scheme were a defined contribution scheme based on actual contributions paid through the year. Coventry University Students’ Union Limited also offers stakeholder pension schemes to student employees and the contributions are included as expenditure in the period. ## **Going concern** The trustees have considered the reserves policy mentioned in trustees report and the working capital requirements for the period of 12 months from the date of this report and have reasonable expectation that Coventry University Students’ Union Limited as a group has adequate resources to continue its operations for the foreseeable future. Accordingly the trustees continue to adopt the going concern basis for the preparation of the annual report and accounts. ## **Critical accounting judgements and key sources of estimation uncertainty** Accounting judgements and estimates relate primarily to depreciation and asset valuations. The directors do not believe that any accounting judgements or estimates are significant to the reported results of the entity. ## **Government grants** Government grants in the form of the Coronavirus Job Retention Scheme have been recognised in incoming resources over the same period as the staff costs for which it compensates 19 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 JULY 2021** ## **3. ACTIVITIES FOR GENERATING FUNDS: TRADING INCOME** |**2021**

**£**

Bar & shop sales
11,702
Advertising & room hire
178,988
Ticket sales
3,125
Events & other income
219,493
COVID-19 Furlough
28,113
COVID-19 Testing centre
219,328
______
660,749
______
**. INVESTMENT INCOME**
**2021**

**£**

Bank interest
5
______
**. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES**
**2021**
**£**
Ticket sales & membership fees
Sports clubs & societies
(130)
Other income
Sports clubs & societies
64,474
Grant
Sports clubs & societies
18,219
Other income
Democracy & representation
91,951
COVID-19 support
Democracy & representation
174,828
Grants
Democracy & representation
1,583,000
Grants
Volunteering & Social work
601,337
Other income
Volunteering & Social work
-
Grants
Satellite Campus
308,500
Other income
Satellite Campus
14,297
________
2,856,476
________
Grants received, included in the above, are as follows
**£**
Democracy & representation
1,583,000
Sports clubs & societies
18,219
Volunteering & social work
601,337
Satellite Campus
308,500
________
2,511,056
|**2020**
**£**
25,076
124,053
59,369
202,689
14,939
-
______
426,126
______
**2020**
**£**
838
______
**2020**
**£**
46,102
57,038
95,000
165,731
130,501
1,583,000
464,504
3,348
324,950
2,048
________
2,872,222
________
**£**
1,583,000
95,000
464,504
324,950
________
2,467,454
| |---|---| ## **4. INVESTMENT INCOME** ## **5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES** Included within the COVID-19 support are receipts totalling £92,106 (2020 - £90,950) relating to the Coronavirus Job Retention Scheme. ## **6. COST OF GENERATING FUNDS** |Purchases
Direct wages & salaries
Other costs of sales
Administrative costs
Depreciation
_
These are relating to CUSU Services Limited for the year ended 31 July.|**2021**
**£**
2,834
361,994
182,468
33,374
2,024
_______

582,694
_______|**2020**
**£**
45,442
245,889
140,674
23,276
3,915
_______
459,196
_______| |---|---|---| 20 **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **7. CHARITABLE ACTIVITIES COSTS** |**Direct costs**
**Support costs**
**2021**

**£**
**£**
**£**

**(See note 8)**
**(See note 9)**
**Total**

Sports clubs & societies
175,811
53,818
229,629
Democracy & representation
384,911
25,981
410,892
Volunteering & social work
150,574
35,261
185,835
Students’ union advice centre
604,518
35,261
639,779
Other central services
830,154
25,981
856,135
Satellite Campus
213,953
9,279
223,232
________
________
_______
2,359,921
185,581
2,545,502


|**2020**
**£**
**Total**
348,798
538,994
387,782
188,249
884,217
237,233
_______
2,585,273
| |---|---| ## **8. DIRECT COSTS OF CHARITABLE ACTIVITIES** |

Staff costs
Hire of equipment & facilities
Insurance
Travelling & subsistence
Telephone
Printing, postage & stationery
Other expenses
Agency costs
Subscriptions
Special projects & campaigns
Training & development
Bank charges
COVID-19 related costs
University charges
Consultancy
Computers & Software
**. SUPPORT COSTS**
**Management**
**Governance**
**£**
**£**
Sports clubs & societies
50,818
3,000
Democracy & representation
24,533
1,448
Volunteering & social work
33,295
1,966
Students’ union advice centre
33,295
1,966
Other central services
24,533
1,448
Satellite Campus
8,762
517
_______
_______
175,236
10,345

|**2021**

**£**

1,979,554
157
32,750
190
7,403
8,520
15,946
-
63,342
51,620
1,250
4,452
94,761
53,997
8,250
37,729
________
2,359,921
________
**2021**
**£**
**Total**
53,818
25,981
35,261
35,261
25,981
9,279
_______
185,581
|**2020**
**£**
1,962,473
2,120
38,655
21,349
7,646
17,392
98,070
5,401
82,681
70,762
9
9,750
45,639
40,590
1,500
22,252
________
2,426,289
________
**2020**
**£**
**Total**
46,105
22,258
30,207
30,207
22,258
7,949
_______
158,984
| |---|---|---| ||__|__| ## **9. SUPPORT COSTS** 21 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** Management support costs, included in the above, are as follows: |**Sports,**
**clubs &**
**societies**
**Democracy &**
**representation**
**Volunteering**
**&**
**social work**
**£**
**£**
**£**
Sundries
7,072
3,414
4,634
Repairs and renewals
3,744
1,808
2,453
Travelling
64
31
42
Training
5,710
2,756
3,740
Staff costs
1,655
799
1,085
Office costs
16,835
8,127
11,030
Depreciation
15,738
7,598
10,311
______
______
______
50,818
24,533
33,295
______
______
______
Governance support costs, included in the above, are as follows:
**Sports,**
**clubs &**
**societies**
**Democracy &**
**representation**
**Volunteering**
**&**
**social work**
**£**
**£**
**£**
Auditor’s remuneration
2,636
1,272
1,728
AGM & other costs
364
176
238
______
______
______
3,000
1,448
1,966


|**SU**
**advice**
**centre**
**£**
4,634
2,453
42
3,740
1,085
11,030
10,311
______
33,295
______
**SU**
**advice**
**centre**
**£**
1,728
238
______
1,966
|**Other**
**Central**
**Services**
**Satellite**
**Campus**
**£**
**£**
3,414
1,219
1,808
646
31
11
2,756
984
799
285
8,127
2,903
7,598
2,714
______
_____
24,533
8,762
______
_____
**Other**
**Central**
**Services**
**Satellite**
**Campus**

**£**
**£**
1,272
456
176
61
______
_____
1,448
517

|**2021**
**£**
**Total**
24,387
12,912
221
19,686
5,708
58,052
54,270
_______
175,236
_______


**2021**
**£**
**Total**
9,092
1,253
______
10,345
|**2020**
**£**
**Total**
7,595
3,106
1,688
21,097
9,164
60,067
39,673
_______
142,390
|**2020**
**£**
**Total**
7,595
3,106
1,688
21,097
9,164
60,067
39,673
_______
142,390
| |---|---|---|---|---|---| ||_|_
|_

|_|______
**2020**
**£**
**Total**
8,849
7,745
______
16,594
| ## **10. TRUSTEES’ REMUNERATION AND BENEFITS** Sabbatical Officers perform full time roles within CUSU; they represent the students to Coventry University, external organisations and wider community. They work as co-ordinators between the students of Coventry University and Board of Trustees. Each Sabbatical Officer is paid an annual salary and the total salaries paid to Sabbatical Officers during the year end 31 July 2021 were £147,135 (2020: £137,225). ## **Trustees’ expenses** Officer trustees expenses paid during the year were £nil (2020: £nil) and these are accounted for under resources expended. ## **11. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging: |Auditor’s remuneration
Depreciation – owned assets
Hire of plant and machinery & equipment
Operating leases relating to property
Rental income receivable|**2021**
**£**
**2020**
**£**
9,092
8,849
54,270
39,673
157
2,120
-
8,983
-
(12,567)

| |---|---| 22 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **12. STAFF COSTS** |Total staff costs for the year for Coventry University Students’ Union Limited and CUSU Services Limited were|Total staff costs for the year for Coventry University Students’ Union Limited and CUSU Services Limited were|Total staff costs for the year for Coventry University Students’ Union Limited and CUSU Services Limited were|Total staff costs for the year for Coventry University Students’ Union Limited and CUSU Services Limited were|as follows:| |---|---|---|---|---| ||**GROUP**||**CHARITY**|| ||**2021**|**2020**|**2021**|**2020**| ||**£**|**£**|**£**|**£**| |Wages and salaries|2,070,237|1,949,732|1,752,446|1,744,975| |Social security costs|173,166|170,866|143,318|142,021| |Other pension costs|103,853|96,928|89,498
|84,661| ||________|________|________|________| ||2,347,256|2,217,526|1,985,262|1,971,657| ||________|________|________|________| The average monthly number of employees during the year was 140 (2020: 121) and there were no employees with emoluments exceeding £60,000 during the period. ## **13. TANGIBLE FIXED ASSETS** ## **CHARITY** ||**Fixtures and**|**Motor**|**Office**|| |---|---|---|---|---| ||**fittings**|**vehicles**|**equipment**|**Total**| ||**£**|**£**|**£**|**£**| |**COST**||||| |At 1 August 2020|6,486|32,341|139,072|177,899| |Additions|1,243|-|42,553|43,796| ||______|______|______|______| |At 31 July 2021|7,729|32,341|181,625|221,695| |||||| ||______|______|______|______| |**DEPRECIATION**||||| |At 1 August 2020|5,560|32,341|69,460|107,361| |Charge for the year|1,341|-|52,929|54,270| ||______|______|______|______| |At 31 July 2021|6,901|32,341|122,389|161,631| |||||| ||______|______|______|______| |**NET BOOK VALUE**||||| |At 31 July 2021|828|-|59,236|60,064| |||||| ||______|______|______|______| |At 31 July 2020|926|-|69,612|70,538| ||______|______|______|______| 23 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **13. TANGIBLE FIXED ASSETS** **GROUP** ||**Improvements**|||||| |---|---|---|---|---|---|---| ||**to**|**Office**|**Fixtures and**|**Motor**|**Short**|| ||**property**|**equipment**|**fittings**|**vehicles**|**leasehold**|
**Total**| ||**£**|**£**|**£**|**£**|**£**|
**£**| |**COST**||||||| |At 1 August 2020|33,895|139,072|65,720|32,341|60,000|
331,028| |Additions|-|42,553|1,243|-|-|
43,796| ||______|______|______|______|______|
_______| |At 31 July 2021|33,895|181,625|66,963|32,341|60,000|
374,824| |||||||| ||______|______|______|______|______|
_______| |**DEPRECIATION**||||||| |At 1 August 2020|33,895|69,460|60,747|32,341|60,000|
256,443| |Charge for year|-|52,929|3,365|-|-|
56,294| ||______|______|______|______|______|
_______| |At 31 July 2021|33,895|122,389|64,112|32,341|60,000|
312,737| |||||||| ||______|______|______|______|______|
_______| |**NET BOOK VALUE**||||||| |At 31 July 2021|-|59,236|2,851|-|-|
62,087| |||||||| ||______|______|______|______|______|
_______| |At 31 July 2020|-|69,612|4,973|-|-|
74,585| |||||||| ||______|______|______|______|______|
_______| |**14. INVESTMENTS**||||||| |||||**GROUP**||**CHARITY**| ||||**2021**|**2020**|**2021**|**2020**| ||||**£**|**£**|**£**|**£**| |CUSU Services Limited|||-|-|1|1| ||||______|______|______|______| The audited financial statements of CUSU Services Limited for the year ended 31 July 2021 show following results: |Turnover
Cost of sales
Gross profit
Other income
Administrative expenses
Retained profit/(loss)
Cumulative retained profits/(losses)|**2021**
**£**
632,636
(547,296)
________
85,340
28,113
(35,399)
________
78,054
________
(282,939)
________|**2020**
**£**
398,620
(432,005)
________
(33,385)
27,506
(27,191)
________
(33,070)
| |---|---|---| |||________
(360,993)
________| 24 **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **15. STOCKS** |
Shop stock|**GROUP**
**2021**
**2020**
**£**
**£**
5,661
6,289

|**CHARITY**
**2021**
**2020**
**£**
**£**
-
-

| |---|---|---| No stock is held by the charity, stock shown above is related to CUSU Services Limited as at 31 July 2021. ## **16. DEBTORS** |**16. DEBTORS**||||| |---|---|---|---|---| |||**GROUP**||**CHARITY**| ||**2021**|
**2020**|**2021**|
**2020**| ||**£**|
**£**|**£**|
**£**| |Trade debtors|105,995|
41,989|1,600|
36,603| |Other debtors|297,910|
129,022|231,625|
32,552| ||______|
______|______|
______| ||403,905|
171,011|233,225|
69,155| |||
||
| ||______|
______|______|
______| |**Amounts falling due after more than one year:**||||| |Amounts owed by group undertakings|||427,439|
480,377| |||||
| ||||_______|
_______| |Aggregate amounts|||660,664
_______|
549,532

_______| ## **17. CREDITORS: AMOUNTS FALLING DUE WITHING ONE YEAR** |
Trade creditors
VAT
Other creditors
Accruals and deferred income|**GROUP**
**2021**
**2020**
**£**
**£**
2,573
952
38,726
-
194,813
205,199
418,355
306,277
_______
_______
654,467
512,428

|**CHARITY**
**2021**
**2020**
**£**
**£**
704
921
-
-
193,911
205,199
186,359
93,992
_______
_______
380,974
300,112

| |---|---|---| ## **18. DEFERRED INCOME** Charity and group deferred income comprises grant funding for which entitlement to the income does not exist at the balance sheet date. Group deferred income also includes advance receipts for Coventry Half Marathon event held in November. ||**GROUP**|**CHARITY**| |---|---|---| ||**2021**|**2021**| ||**£**|**£**| |Balance as at 1 August 2020|271,314|63,711| |Amount released to income earned from charitable activities|(63,711)|(63,711)| |Amount released to income earned from trading activities|(207,603)|-| |Amount deferred in the year|384,282|159,764| ||_______|_______| |Balance as at 31 July 2021|384,282|159,764| ||_______|_______| 25 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **19. OPERATING LEASE COMMITMENTS** The following operating lease payments are committed to be paid within one year: |Expiring:
Within one year
Between one and five years
In more than five years|**2021**
**£**
25,980
2,165
-
______
28,145
|**2020**
**£**
25,980
28,145
-
______
54,125
| |---|---|---| Operating lease commitments are relating to both to Coventry University Students’ Union Limited & CUSU Services Limited ## **20. MOVEMENT IN FUNDS** |||**Net movement**|| |---|---|---|---| ||**At 1.8.20**|**in funds**|**At 31.7.21**| ||**£**|**£**|**£**| |**Unrestricted funds**|||| |General fund|723,197|389,034|1,112,231| ||_______|_______|_______| |**TOTAL FUNDS**|723,197|389,034|1,112,231| ||_______|_______|_______| Total funds as at 31 July 2021 includes total funds of Coventry University Students’ Union Limited £1,395,170 and net retained losses of CUSU Services Limited amounting (£282,939). The parent’s company surplus for the financial year was £310,980 (2020 - £287,787) Net movements in funds, included in the above are as follows: |**Unrestricted funds**
General funds
**TOTAL FUNDS**|**Incoming**
**resources**
**£**
3,517,230
_________
3,517,230
|**Resources**
**expended**
**Movement in**
**funds**
**£**
**£**
(3,128,196)
389,034
_________
_________
(3,128,196)
389,034

| |---|---|---| The general fund represents all free reserves and comprises cumulative retained surpluses. 26 ## **COVENTRY UNIVERSITY STUDENTS’ UNION LIMITED** ## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** ## **21. RELATED PARTY TRANSACTIONS** During the year Coventry University Students’ Union Limited received a block grant of £1,583,000 (2020: £1,583,000) and other grants totalling £928,056 (2020: £884,454) from Coventry University. In addition to Sabbatical Officers, the board of trustees considers the Chief Executive Officer, Chief Operating Officer, Director of Communications, Director of Union Development, Director of Enterprise and Director of Finance and Risk to constitute key management. Their total remuneration recognised in these financial statements was £282,528 (2020: £263,882). Please note that the Chief Executive Officer’s salary is paid via the Coventry University. ## **22. PENSION COMMITMENTS** Coventry University Students’ Union Limited participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the 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 interim valuation of the Scheme was carried out as at 30 June 2021 and showed that the market value of the Scheme’s assets was £137,274,000 with these assets representing 51% 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 £131,159,000. The next full valuation is expected to be carried out as at 30 June 2022. 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 assumptions applied at 30 June 2021:- - The investment return would be 3.8% per annum before retirement and 1.8% per annum after retirement - Pensions accruing on the CARE basis would revalue at 3.6% per annum. - Present and future pensions would increase at rates specified by Scheme rules with appropriate assumptions where these are dependent on inflation. The 2019 full valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 14 years 10 months and will increase by at least 5% each year. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 2020 and will be formally reviewed following completion of the next Valuation. Surpluses or deficits which arise at future valuations will also impact on Coventry University Students’ Union Limited’s future contribution commitment. In addition to the above contributions, Coventry University Students’ Union Limited also pays its share of the Scheme’s levy to the Pension Protection Fund. The total contributions paid into all Schemes by Coventry University Students’ Union Limited in respect of eligible employees for the year ended 31 July 2021 amounted to £103,853 (2020: £96,928). ## **23. CONTROLLING PARTY AND MEMBERS LIABILITY** Coventry University Students’ Union Limited is a charitable company limited by guarantee. The members of the company have agreed to contribute £1 each to the assets of the company in the event of it being wound up. Ultimate control of the company rests with its members. 27