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2020-07-31-accounts

Registered company number: 03426445 Charity registration number: 1142837

BIRMINGHAM CITY STUDENTS’ UNION a company limited by guarantee

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

BIRMINGHAM CITY STUDENTS’ UNION

CONTENTS

Page
Legal and administrative details 1 - 2
Trustees’ report 3 – 13
Statement of trustees’ responsibilities 14
Independent auditor’s report 15 – 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19
Charity balance sheet 20
Consolidated statement of cash flows 21
Notes to the financial statements 22 - 39

BIRMINGHAM CITY STUDENTS’ UNION

LEGAL AND ADMINISTRATIVE DETAILS

2020/21

2019/20

Directors and Trustees

Sabbatical Officer & Chair Sabbatical Officers

Victoria Bennett-Salvador

Amir Iqbal Polly Jones Jinal Shah Runcie Chidebe

Ivona Hadzhiyska

Liam Miles Kathy-Zoe Baira Selina Aishia Jahangir Laura Wonnacott

Student Trustees

Moazzamah Chaudhry Nathen Birkett Gerda Diederiks Pravjoth Gill

Lucky Uddin

External Trustees

Christopher Pile Kirsty Turner Stephen Harrison-Mirfield

Christopher Pile Mike Hill Kirsty Turner

Mike Hill resigned on 16 September 2019.

Stephen Harrison-Mirfield was appointed on 14 January 2020.

Kathy-Zoe Baira, Laura Wonnacott, Selina Jahangir, Ivona Hadzhiyska, Liam Miles and Lucky Uddin resigned on 30 June 2020.

Victoria Bennett-Salvador, Runcie Chidebe, Polly Jones, Jinal Shah, Amir Iqbal, Gerda Diederiks, Moazzamah Chaudhry, Nathen Birkett and Pravjoth Gill were appointed on 1 July 2020.

Sabbatical Officers

President Vice President Student Voice Vice President Academic Experience Vice President Equity & Inclusion Vice President Opportunities & Community

Victoria Bennett-Salvador Runcie Chidebe Polly Jones Jinal Shah Amir Iqbal

Ivona Hadzhiyska Laura Wonnacott Liam Miles Kathy-Zoe Baira

Selina Aishia Jahangir

Senior Management Team

Chief Executive Head of Central Services Head of Engagement Head of Member Services

Richard Evans Angela Lefevre Michael Gale John Moore

Richard Evans Angela Lefevre Michael Gale John Moore

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BIRMINGHAM CITY STUDENTS’ UNION

LEGAL AND ADMINISTRATIVE DETAILS

Charity registration number 1142837 Registered company number 03426445 Company secretary Richard Evans Registered office Curzon Building 4 Cardigan Street Birmingham B4 7BD Bankers National Westminster Bank Plc 46 One Stop Shopping Centre 2 Walsall Road Birmingham B42 1AZ Auditor Cooper Parry Group Limited Park View One Central Boulevard Blythe Valley Business Park Solihull West Midlands B90 8BG

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BIRMINGHAM CITY STUDENTS’ UNION

TRUSTEES’ REPORT

Although a challenging year, BCUSU were quick to adapt to remote working from March and continue to support students alongside the University. In many areas engagement increased following Covid, due to digital engagement initiatives, and it is believed BCUSU has provided students a clear narrative whilst working to ensure student voice is heard at all levels of the University through the pandemic.

Achievements and Performance

Strategic Mission/Vision

Purpose: We will empower students with the means to shape their own lives.

Our Priorities

Employability

Academic Student Voice

Sense of Belonging

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BIRMINGHAM CITY STUDENTS’ UNION

TRUSTEES’ REPORT

Performance Review

More detailed KPI/KPM are used internally by teams and reported through a series of strategic maps to the Trustee Board.

KPI’s (QPR3)

Key Performance
Indicator - KPI		 2019/20
Target
(as of 1
Aug 2020)		 18/19
Outturn
(as of 1 Aug
2019)
if
applicable		 QPR
1
In-year
Actual
(Nov 2019)		 QPR
2
In-year
Actual
(Feb 2020)		 QPR
3
In-year
Actual
(May 2020)		 RAG Rating
Question 26 NSS
“My Students’
Union represents
my academic
interests.”
+5% above sector
average		 +5%
above
sector
average		 +1% above
sector
average		 +1%
(57%)
above
sector
average		 +1%
(57%)
above
sector
average		 +1%
(57%)
above
sector
average		 Green
% of students who
believe BCUSU
has helped them
gain skills to use in
future
employment.		 45% 41% 41% 40% 40% Green
% of students
achieving
Graduate+ with an
element of BCUSU
activity		 38% 36% bronze
(25% silver,
35% gold)		 34%
bronze
(20%
silver,
31%
gold)		 34%
bronze
(20%
silver,
31%
gold)		 35%
bronze
(19%
silver,
28%
gold)		 Amber
85% of students
will agree they feel
a sense of
belonging at their
place of study by
2020		 85% 83% 83% 88% 88% Green
85% of students
will agree they feel
part of a University
community by
2020		 80% 73% 73% 78% 78% Green
Number of
Academic Reps		 1,066 688 939 965 965 Green
Number of
students
completing
Student Voice
Assistant surveys		 15,000 10,635 2,800 6,090 8,297 Green

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Number of
students voting in
Executive Officer
Elections		 5,000 4,060 N/A N/A 3,751 Amber
Number of
students signed up
to a society		 3,000 2,445 1,375 2,252 2,137 Amber
Number of
students signed up
to a BUCS sports
club		 625 550 397 511 517 Amber
Number of
students signed up
to an protected
society		 500 0 405 511 571 Green
Number of
students signed up
to an academic
society		 450 505 275 404 446 Green
Money retained
(student fees) as a
result of students
using the Advice &
Information
Service		 No target
as for
reporting
purposes		 £148k £27k £64k £115k Green
Overall total
number of new
advice cases
opened		 No target
as for
reporting
purposes		 758 240 392 721 Green
Total budget
contribution
(surplus) from
Member Services		 135k 68k at P6 £151k 64k
at
P6		 82k
at
P8		 Green
% Employee
Engagement
Score in national
staff survey		 94% 93% 93% 93% 98% Green
Free reserves
match Reserve
Policy
requirements		 £413k £774k £774k £774k £774k Green

Business Continuity (BC) Plan

Once Covid implications became clearer, specific Covid business continuity planning was undertaken to complement the existing business continuity plans.

It was agreed to provide the following service stands remotely during disruption to the usual operating environment and throughout lockdown:

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Each strand had its own business continuity plan, detailing the critical activity to be undertaken and resources required. The BC Plan included a detailed communication plan to support the activity and included a redesign of the website to focus on the critical strands of activity. Video updates from the President were weekly and included a reassuring tone informing students of University developments and ways to continue to engage with BCUSU.

It became clear during lockdown that the student facing activity split into two main areas:

Strands such as the Advice Service and Representation had good engagement digitally with some events increasing engagement against campus based events. Key advocacy work was undertaken with an on behalf of students including engaging with temping agencies that would not furlough their temporary workers.

Our Community strand was also well received with students engaging in quizzes, Yoga, online games, live streaming and social media posts. We thanked our nurses and they work they undertook by granting wishes and having a virtual well-wishing wall.

BCUSU gathered student insight during the lockdown sharing the findings with University colleagues. Our insight mirrors national statistics in that BAME communities have been adversely impacted by Covid.

Varsity and Sports Tour were cancelled due to Covid restrictions and risk assessments. Although our students competed against Aston University students on who could create the best social media videos. The rivalry continued throughout lockdown.

Furthermore, other celebratory events scheduled for the end of year were moved to online delivery such as Extra Mile Awards, Team BCU Awards and Rep Ball.

Quality Audit

BCUSU undertook an external quality audit against the NUS Quality Students’ Unions framework during 2019/20. Submitting a series of self-assessment statements and supporting evidence, before and after the visit, which the verifier reviewed remotely.

The verification site visit was conducted on the 21 February 2020 at the City Centre Campus.

Overall: Very Good

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Sport & Society Offer

Common across BCU is the collaboration between different departments to further our student’s development and progression. This is reflected in sport and societies. For example, BCU Sport & Physical Fitness working with BCUSU colleagues on competitive sport and active wellbeing, BCUSU working with academic colleagues on Academic Societies/Academic Student Voice and BCUSU actively funnelling students to the Graduate+ initiative.

BCU Sport & Physical Fitness

As with all areas of the university the COVID 19 pandemic had a detrimental effect to the end of the academic year, with all face-to-face activities having to be ceased in March at the commencement of lockdown. As a result we looked to develop online activities where possible and have delivered a number of live online yoga classes and are developing a range of online video classes.

Prior to the pandemic, we had our most successful BUCS season ever, climbing fifteen places from 105 – 90[th] in the BUCS league tables with a BUCS points increase of 78% from 2018-19. We also had 2 individual BUCS champions, both who are on our Sports Scholarship programme.

To date this academic year the following number of unique participants has engaged with our opportunities:

Active Wellbeing 585
Sports Club Membership 322
Pop Up Activities 382
Aston Uni Gym Membership 527
Scholarship students 18
Total 1834*

*These figures do not include BCUSU Sports Societies such as cheerleading, polo and extreme sports

We have also created 132 volunteering / placement opportunities for students within sports clubs/ organisations within the locality. These placements vary from coaching to photography and media, and so are relevant to students within all faculties. We continued to employ 10 students as ‘activators’ to help deliver our Active Wellbeing sessions up until lockdown.

Events; during the year, BCU Sport worked with staff and students to offer them subsidised access to major participation events in the city. Although the Birmingham 10k which was due to take place in May didn’t take place, the number of sign-ups prior to lockdown in March is noted:

Societies, Sport & Volunteering (SSV)

BCUSU has been benchmarking engagement in SSV through various data sources including the NUS Annual Survey as well as directly with comparator Students’ Unions. Context is important when considering engagement in extra-curricular activities. As institutional variables often have significant impact such as student numbers, % of commuter students, availability of on campus facilities (including specialist) and % of international students. Furthermore, the data is currently unreliable due to different reporting methodologies. To provide more robust benchmarking a series of comparator institutions have been identified based on BCU comparators and we are establishing a working group to share data directly.

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For reference, participants at January 2019 and 2020.

January 2019 January 2020
Societies 1,738 1,780
Sports* 467 497
Overall 2,132 2,220

*These figures include BCU Sport & Physical Fitness Sports Club Membership

It is worth noting that the quality of the experience provided by our student groups this academic year has significantly improved and evidenced through member surveys. As well as driving engagement numbers the SSV team are tasked with ensuring the quality of the experience. For example, ensuring group leaders regularly communicate with their members, that the environment is welcoming and inclusive, that enough activity by the group takes place to provide value of membership.

Protected Societies

Protected Societies launched in July 2019 as the replacement for Part-Time Officers. The societies are for students of marginalised groups (as defined by NUS Liberation Groups). Empowering them to provide safespaces and develop initiatives for their community in a manner which enables participation, but also their skillset as community organisers. So far, they have been very successful as demonstrated by the membership numbers, the frequency/quality of events, and engagement with University staff and the voice that these societies have provided to their membership.

There are 410 memberships across the ten active Protected Societies and circa 50 events have been delivered by the groups so far. For example; Parents & Carers’ Christmas Party at City South’s Social Kitchen (organised in collaboration with BCU Mental Health & Wellbeing), the Mature Students’ weekly pub-quiz team at the Eagle & Ball, the LGBTQ+ Society’s fortnightly discussion group, the Women’s Societies Fundraiser raising over £100 for Refuge, and the Interfaith Society’s meet and greet during Interfaith Week. Each event has succeeded in uniting students of a particular demographic/ protected characteristic, and establish an on campus community.

Protected Societies members took advantage of opportunities for roundtable discussions with the Students’ Union and University staff alongside their fellow Protected Society leaders, and came out of it brimming with ideas for collaboration. This manifested in the LGBTQ+ Society’s cross-collaborative event Living Histories – with the LGBTQ+, Women’s, and Interfaith Societies each fielding a speaker to discuss what LGBT+ History means to them. Not least was this collaboration fascinating, but demonstrated how oppression is interlinked and must be fought on a united front, a model for the organisation to explore further in how Protected Societies can continue to be encouraged to act intersectionality.

They have also reached out to, and worked with, various University departments on liberation initiatives. For example, the Women’s Society working with a BCU Researcher to gather data on students’ experiences with Period Poverty. The People of Colour Society coordinating a week of action during Women’s History Month in response to Student Voice insight on BAME Women’s disproportionately high mental health concerns. The Postgraduate Society working with Graduate+ to organise an internal confidence building

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research conference, the Earth Society engaging with Go Green Week and Students’ Union led events such as BCUSU does Question Time, and more.

Advice & Information

We have opened 792 new cases since the beginning of September (down 9% compared to the same period last year). 62% of enquiries have been about academic issues, 19% relate to money and 15% are housing. 54% of all enquiries are from students based in the City Centre and 45% study at City South campus.

We delivered Housing Week in November 2019 to raise awareness of where to look and what to look out for when renting in the private sector. Much of the activity was via social media as well as stalls in University Locks and Campus Living Villages.

We delivered National Student Money Week in February 2020 to promote positive money habits and raise awareness of additional sources of funding. Most of the activity was via social media which generated good engagement.

Work has continued on updating the advice pages of the SU website to improve user experience and act as a repository of guidance.

We have continued contributing to social policy work with the aim of resolving some of the more widespread issues we come across. Recent issues identified include treatment of students on zero hour’s contracts and the cost of medical letters for extenuating circumstances claims.

We are now part of monthly Hardship Fund meetings with the University. We have been successful in lobbying for a number of changes to the way the fund is administered and continue to push for further changes.

We are contributing to University task and finish groups. For example, moderation and marking policies and harassment/sexual violence.

We have begun forming better links with School Offices and Student Success Advisers after identifying schools as key to raising awareness of our service.

Student Voice

Student voice has been hard at work during Covid 19 developing a whole new heat map survey with new categories relevant to the pandemic. Student Voice gathered 1,263 responses from 2 surveys using direct email to students and this has given us a very representative sample of the student body and we have been able to cross tabulate more effectively due to addition segmentation questions.

The current 926 Student Academic Leaders (SALs) provide representation for 93% of the cohorts across the University. The SALs are supported by 39 trained School reps. School rep recruitment is underway and the team have successfully recruited 30 of the 39 new School Reps for the next academic year.

During the pandemic the majority of representation functions were delivered online including our School Rep meetings. We’ve used Microsoft teams to develop a Faculty based School Rep Forum that has gathered and resolved many complex feedback issues. The Student Voice team have been sharing the findings directly with the PVC Learning & Teaching, who supported by the Students’ Union has been addressing many of the issues and feeding back to students.

Alongside this we’ve developed and online feedback hub where student feedback has been collated and action has been taken.

The two “Covid heat map” surveys have been supported by the standard heat map (1,561 responses). The combined overall results showing the top ten issues from all surveys, along with the standalone results from

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the latest survey in December 2019. In addition, what enhances the quantitative data is the detailed termly reports produced by the School Reps providing us with more qualitative insight on issues.

The ‘Heat map’ surveys continue to inform discussions at BCUSU’s Student Feedback Committee with the creation of task and finish groups on those issues persistently near or at the top. Members of these groups work with University colleagues to find long-term sustainable solutions to those issues.

Student Voice reports on themes and issues brought up through our student voice channels have been submitted to the University as well as ‘heat maps’ compiling several live data sources to provide a quick insight for university leaders.

Training for the new officer team is planned and ready to be delivered building on the excellent work we did last year in designing a whole new training program. This year were imbedding the 360 review concept into the entire officer journey with full feedback from all stakeholders. By the time of paper submission the new officers will be in post and contributing to University aims and objectives.

Student Advisory Panels continued throughout the year although were challenging to deliver and will be reviewed. In contrast, the ‘28 Day Challenge’ commitment made by the Officer team to enact change has seen 651 votes on what the team should work on. Because of Covid these panels moved to an online forum hosted on the BCUSU website. It is still early in the development of this new system but initial signs are that it will potentially provide a very user friendly and direct way for students to express their opinions.

Marketing & Communications

Email open rates were 42% although we’ve seen a much higher open rate during quarantine and into the summer, as students actively want to know more information. 85% of students believe communications from BCUSU are relevant and useful to their university experience.

Attitudinal Segmentation analysis is completed and ready to be collected during enrolment process. Registry Services have embedded the segmentation questions into the BCUSU enrolment script and we will trail segmentation during 2020/21 academic year.

Work on data sharing between SITS (BCU) and MSL (BCUSU) continues with a task and finish group established. Data fields have been mapped in line with data sharing agreement. Currently awaiting capacity in BCU IT to undertake changes to the data exchange.

The BCUSU brand guidelines, communication strategy and plan have been rewritten and disseminated to the staff team following approval at Communications & Strategic Development Subcommittee. Templates were created so staff and students could have a greater sense of creative ‘freedom’ over their designs.

Central Services

Until lockdown space continued to be an issue with requests to repurpose the MP faith space and Scratch Media spaces for learning & teaching delivery. Estates have been very supportive in relocating other space so MP students are not adversely affected and the space will be returned following refurbishment including the adjacent washrooms (Wuhdu). Scratch Media space has been returned at the request of ADM with relocation into the existing BCUSU space in Curzon building.

BCUSU is supportive of the developments to the timetabling system and student attendance monitoring. Expecting that the data will be useful in freeing up use of existing space.

A People & Culture Strategy has been developed, approved through HR & Remuneration Subcommittee and work underway on the first objectives. Our annual staff engagement survey results were published in April, reporting an overall engagement score of 98%, up from 93% in 2019/2020, continuing to benchmark ‘top of the class’ against other students’ unions and the third sector.

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Member Services

Our member services within food, beverage and retail performed well and tracked against budget forecast until having to close due to Covid. The Social Kitchen development at City South continues to be well received by students and until Covid feasibility plans were being drafted to develop the campus shop and front facing office space.

Birmingham City Student Homes has not reached the desired occupancy rates for 2019/20 due to an increasingly competitive market. Although the initiative still provides a valuable income stream for the Students’ Union. Occupancy levels at March for 2020/21 were up on the previous year but unfortunately implications of Covid again has adversely impacted on securing tenants.

The Eagle & Ball kitchen has been completely redesigned to mitigate original design issues raised by BCU H&S department.

We are also adapting the offer at the Parkside Campus Shop which will see an addition in the outlet of a solely Vegan & Vegetarian grab and go offer following student and staff feedback. The offer will focus on a quality range with a non-plastic and recyclable emphasis. If feedback is successful we will look to roll out across our other outlets to progress environmental targets.

Conclusion

Although an unexpected and difficult year BCUSU has undertaken important work with and on behalf of students. The governance has remained strong throughout the pandemic, fully supported by an effective IT infrastructure. All committees and subcommittees have met in line with the Governance Agenda Planner. BCUSU was quick to utilise Microsoft Teams and previous work on data and systems as directed by the Strategic Plan provided good resilience.

The timing of the pandemic and associated impact on trading areas was fortunate and reflected in the financial outturn of the organisation.

Our leadership team are in regular communication with the university leadership regarding the impact of the pandemic for our beneficiaries and also the organisations income streams for academic year 2020.21.

The officer team have been pleased with the University’s response to the pandemic for 2019/20 and the support from senior university leaders to BCUSU. It was clear that the safety and wellbeing of students was a priority balanced appropriately with enabling the progression of our students.

Structure, Governance and Management

Birmingham City Students’ Union is an incorporated company limited by guarantee and governed by its Memorandum and Articles of Association which were effective from 28 August 1997.

Birmingham City Students’ Union is registered with the Charity Commission. Its charitable objects are to advance the education of the students at Birmingham City University for the public benefit by supporting the educational role of the University generally and in particular, by supporting and promoting the general welfare of the students and promoting and encouraging student societies, cultural, sports and social activities.

The Trustee Board has overall responsibility for the governance of Birmingham City Students’ Union. Membership comprises of not more than five Sabbatical Officers, not more than four Student Trustees, and not more than three External Trustees.

The Sabbatical Officers of President, Vice President Student Voice, Vice President Student Development, Vice President Student Engagement, Vice President Student Experience are elected annually by crosscampus secret ballot of the Birmingham City Students’ Union membership. These are full-time posts remunerated in accordance with the Memorandum and Articles of Association. The Memorandum and Articles of Association give the Sabbatical Officers the power to appoint the Student Trustees nominated

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by the Appointments and Governance Committee. The normal term of office for Sabbatical Officers is one year; they may stand for re-election for one further year of office, but the maximum term of office is two years.

External Trustees are appointed by a simple majority vote of the Appointments & Governance Committee.

Each External Trustee is appointed for a term of two years, but may be re-appointed for a further two year term. An External Trustee that has served for two terms may not be re-appointed until four years have elapsed since they acted as an External Trustee. No person may be an External Trustee for more than eight years.

To ensure effective management of the charity, the Trustee Board has delegated the day-to-day running of Birmingham City Students’ Union to the Senior Management Team headed by the Chief Executive, Richard Evans. The Chief Executive’ salary was benchmarked against the sector by the Trustee Board in 2012 and is included in the organisation’s pay grades. The Senior Management Team (including the Chief Executive) job descriptions are all evaluated in line with the Job Evaluation procedures and also set against the pay grades.

The Sabbatical Officers meet weekly to receive reports from individual officers, sub-committees and the Chief Executive, to review the charity’s performance and administration generally and to decide policy issues arising, subject to Student Council oversight. Birmingham City Students’ Union also employs a number of non-student full-time staff for the sake of continuity in the management of its many activities. Staff are accountable to the Chief Executive for the performance of their duties.

All Trustees are given an introduction to the activities of the Students’ Union by Senior Management. All Trustees receive an induction into their legal and administrative responsibilities. Training is provided to Trustees as and when required, based on an assessment of existing skills.

When reviewing our objectives and planning our activities, we have given due consideration to the Charity Commission’s general and relevant supplementary guidance on public benefit.

Risk management

The Trustee Board has examined the major strategic, business and operational risks faced by Birmingham City Students’ Union. A risk register has been established and will be reviewed quarterly. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Budgetary and internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.

Financial review

Birmingham City Students’ Union has continued to benefit from the recognition and support of the University, and this year the annual block grant was £1,175,000 (2019 - £1,173,000). In addition to the block grant, Birmingham City Students’ Union part-occupies spaces owned by the University. The University also pays for utilities, caretaking and cleaning staff. This non-monetary support is intrinsic to the relationship between the University and Birmingham City Students’ Union. As required by relevant financial reporting standards, an estimated value to Birmingham City Students’ Union for this free serviced accommodation has been included in the financial statements, priced at £609,795 (2019 - £589,000).

Birmingham City Students’ Union gross income from all sources this year totalled £3,404,502 (2019 - £3,986,307). Total expenditure of £3,410,094 (2019 - £3,612,399) on the wide-ranging student benefits we provide, as well as on the modest fundraising and other revenue-generating activities we undertake, gave net (expenditure)/income for the year of £(5,592) (2019 - £373,908).

The result for the year includes a net outflow on restricted capital and revenue funds of £76,876 (2019 – surplus £97,643). On unrestricted funds, the surplus for the year totalled £71,284 (2019 - £276,255)

We have reviewed Birmingham City Students’ Union reserves requirements. Free reserves for the group (excluding tangible fixed assets and the pension liability noted above) stood at £791,915 at the year-end

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(2019 - £774,326). This is in line with the Trustees’ target reserve level of three months’ core staff costs of approximately £365,000.

The subsidiary company Birmingham City Enterprises Limited has net assets of £1,419 (2019 - £3,111) at 31 July 2020. The letting agency has generated operating profits of £22,359 (2019 - £89,143) in the year 31 July 2020, with gift aid of £24,051 (2019: £91,280) being paid to the Union.

Third party indemnity provisions

Qualifying indemnity provision is in place for the benefit of all Trustees of the company.

Approval

The report of the Directors and Trustees has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

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BIRMINGHAM CITY STUDENTS’ UNION

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Birmingham City Students’ Union for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, 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 these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

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 legislation in other jurisdictions.

This report, incorporating the strategic report was approved by the Directors and Trustees on 5 November 2020 and signed on their behalf.

Victoria Bennett-Salvador Chair of Trustees

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF BIRMINGHAM CITY STUDENTS’ UNION

Opinion

We have audited the financial statements of Birmingham City Students’ Union Limited (“the parent charitable company”) and its subsidiary (“the group”) for the year ended 31 July 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Company Balance Sheets, the Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. 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.

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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF BIRMINGHAM CITY STUDENTS’ UNION

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:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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.

Page 16

BIRMINGHAM CITY STUDENTS’ UNION

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF BIRMINGHAM CITY STUDENTS’ UNION

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 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 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Atkins FCA

Senior Statutory Auditor for and on behalf of:

COOPER PARRY GROUP LIMITED

Date: 29 March 2021

Chartered Accountants Statutory Auditors

Park View One Central Boulevard Blythe Valley Business Park Solihull West Midlands B90 8BG

Page 17

BIRMINGHAM CITY STUDENTS’ UNION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) FOR THE YEAR ENDED 31 JULY 2020

Restricted Restricted
capital revenue Unrestricted 2020 2019
funds funds
funds		 Total Total
Note £ £
£		 £ £
Income from:
Donations and legacies 2 - 30,000 1,818,966 1,848,966 2,018,219
Charitable activities 3 - 27,599 1,204,444 1,232,043 1,722,253
Other trading activities 4 - - 266,504 266,504 236,803
Investments - - 1,977 1,977 1,728
Other - - 55,012 55,012 7,304
─────── ───────
───────		 ─────── ───────
Total income - 57,599 3,346,903 3,404,502 3,986,307
─────── ───────
───────		 ─────── ───────
Expenditure on:
Raising funds 5 - - 257,727 257,727 421,313
Charitable activities 6 78,069 56,406 3,017,892 3,152,367 3,191,086
─────── ─────── ─────── ─────── ───────
Total expenditure 78,069 56,406 3,275,619 3,410,094 3,612,399
─────── ─────── ─────── ─────── ───────
Net expenditure/(income) 9 (78,069) 1,193 71,284 (5,592) 373,908
Transfers between funds 14/15 - 8,317 (8,317) - -
─────── ─────── ─────── ─────── ───────
Other recognised gains/(losses)
Actuarial gains/(losses) on defined
benefit pension schemes 17 - - (833,944) (833,944) -
─────── ───────
───────		 ─────── ───────
Net movement in funds (78,069) 9,510 (770,977) (839,536) 373,908
Fund balances brought forward 179,115 80,002 (192,420) 66,697 (307,211)
─────── ───────
───────		 ─────── ───────
Fund balances carried forward 16 101,046 89,512 (963,397) (772,839) 66,697
═══════ ═══════
═══════		 ═══════ ═══════

There are no recognised gains or losses for the year other than those included in the statement of financial activities.

None of the reported amounts relate to discontinued operations.

The notes on pages 22 to 39 form part of these financial statements.

Page 18

BIRMINGHAM CITY STUDENTS’ UNION Registered Company Number 03426445 CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020

2020 2019
Note £ £ £ £
Fixed assets
Tangible assets 10 170,551 279,198
Current assets
Stocks 84,581 84,694
Debtors 12 191,598 148,402
Cash at bank and in hand 959,703 1,014,689
─────── ───────
1,235,882 1,247,785
Creditors:amounts falling due within one
year 13 (447,820) (482,376)
─────── ───────
Net current assets 788,062 765,409
─────── ───────
Total assets less current liabilities 958,613 1,044,607
Defined benefit pension scheme liability 13a (1,731,452) (977,910)
─────── ───────
Net (liabilities)/assets (772,839) 66,697
═══════ ═══════
The funds of the charity
Restricted capital funds 14 101,046 179,115
Restricted revenue funds 14 89,512 80,002
Unrestricted funds
General 15 861,420 874,409
Pension Reserve 15 (1,824,817) (1,066,829)
─────── (963,397) ─────── (192,420)
─────── ───────
(772,839) 66,697
═══════ ═══════

The financial statements were approved and authorised for issue by the trustees and were signed on their behalf on 5 November 2020.

Victoria Bennett-Salvador Chair of Trustees

The notes on pages 22 to 39 form part of these financial statements.

Page 19

BIRMINGHAM CITY STUDENTS’ UNION Registered Company Number 03426445 CHARITY BALANCE SHEET AS AT 31 JULY 2020

2020 2019
Note £ £ £ £
Fixed assets
Tangible assets 10 164,302 268,910
Investments 11 100 100
─────── ───────
164,402 269,010
Current assets
Stocks 84,581 84,694
Debtors 12 219,953 244,398
Cash at bank and in hand 913,971 905,271
─────── ───────
1,218,505 1,234,363
Creditors:amounts falling due within one
year 13 (425,546) (461,710)
─────── ───────
Net current assets 792,959 772,653
─────── ───────
Total assets less current liabilities 957,361 1,041,663
Defined benefit pension scheme liability 13a (1,731,452) (977,910)
─────── ───────
Net assets (774,091) 63,753
═══════ ═══════
The funds of the charity
Restricted capital funds 14 101,046 179,115
Restricted revenue funds 14 89,512 80,002
Unrestricted funds
General 15 860,168 871,465
Pension Reserve 15 (1,824,817) (1,066,829)
─────── (964,649) ─────── (195,364)
─────── ───────
(774,091) 63,753
═══════ ═══════

The financial statements were approved and authorised for issue by the trustees and were signed on their behalf on 5 November 2020.

Victoria Bennett-Salvador Chair of Trustees

The notes on pages 22 to 39 form part of these financial statements.

Page 20

BIRMINGHAM CITY STUDENTS’ UNION STATEMENT OF CASH FLOWS AS AT 31 JULY 2020

2020 2019
£ £
Cash flow from operating activities:
Net cash provided by operating activities Below (44,569) 382,837
Cash flows from investing activities:
Purchase of property, plant and equipment (10,417) (241,396)
Net cash used in investing activities ─────── ───────
(10,417) (241,396)
Change in cash and cash equivalents in the reporting
period (54,986) 141,441
Cash and cash equivalents at the beginning of the reporting
period 1,014,689 873,248
─────── ───────
Cash and cash equivalents at the end of the reporting period 959,703 1,014,689
═══════ ═══════
Reconciliation of income for the reporting period (as per
the statement of financial activities) (839,536) 373,908
Adjustments for:
Depreciation 119,064 117,862
Decrease in stocks 113 8,525
(Increase) /decrease in debtors (43,196) 223,028
Increase /(decrease) in creditors 718,986 (340,486)
─────── ───────
Net cash (used)/ provided by operating activities (44,569) 382,837
═══════ ═══════
Analysis of cash and cash equivalents
Cash in hand 959,703 1,014,689
═══════ ═══════
Analysis of changes in net debt
At 1
August Other At 31 July
2019 Cashflows changes 2020
£ £ £ £
Cash at bank and in hand 1,014,689 (54,986) - 959,703
─────── ─────── ─────── ───────
1,014,689 (54,986) - 959,703
═══════ ═══════ ═══════ ═══════

Page 21

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgement and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention. They are prepared in sterling which is the functional currency of the charitable company and rounded to the nearest £1.

They comply with the requirement of the Companies Act 2006 and the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their account in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019.

Birmingham City 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 note(s).

b Basis of Consolidation

The consolidated financial statements consolidate the results of the parent company and of the subsidiary on a line by line basis. A separate Statement of Financial Activities and income and expenditure account for the charitable company itself are not presented because advantage has been taken of the exemptions afforded by section 408 of the Companies Act 2006.

c

Going concern

The accounts have been prepared on a going concern basis. The board reviews the financial information for the company and considers whether the charity is a going concern for a period of at least 12 months from the date of approval of the accounts. After making enquiries, considering budgets, forecasts, support from Birmingham City University and the impact of Coronavirus on the activities of the Union, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Accounts.

d Income

Income from charitable activities is recognised in the statement of financial activities when:

Birmingham City Students’ Union receives a block grant and other miscellaneous grants from Birmingham City University each financial year. These are recognised as voluntary income on a receivable basis.

Donated assets are taken to income when donated, at estimated market value. Donated services and facilities are only included as voluntary income (with an equivalent amount in resources expended) where the benefit to the group is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated market value to the group of the service or facility received.

Time donated by the Union’s members is not recognised in the financial statements as this cannot be reliably valued but is described in the Trustees’ annual report.

Page 22

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES (continued)

d Income (continued)

All income from fundraising trading is recognised gross of related expenditure on an accruals basis, exclusive of value added tax, with any money received for services provided after the year-end deferred.

The group operates bar, entertainment, retail, and catering facilities for the benefit of its members and a lettings agency. All income from these trades is recognised gross of related expenditure on an accruals basis, exclusive of value added tax, with any money received for events after the year-end deferred.

Other income is credited to the statement of financial activities in the year in which it is received.

e Resources expended and liabilities

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any irrecoverable value added tax.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the group to pay out resources.

Direct costs of generating funds consist of the staff and other costs incurred in conducting fundraising trading.

Direct charitable expenditure comprises the staff, supplies and other costs directly attributable to activities that contribute to the achievement of the charitable objects. Direct charitable expenditure also includes governance costs.

Items of expenditure which contribute directly to the output of more than one activity or cost category are apportioned according to the trustees’ best estimate of how much utility each area receives. For example, applicable staff costs are allocated on the basis of staff time spent on different activities.

Support costs are overheads that are not directly attributable to any cost category. These are apportioned in proportion to direct, unrestricted expenditure, this being the Trustees’ best estimate of how much utility each area receives. For example, applicable staff costs are allocated on the basis of staff time spent on different activities and other costs by their usage. Governance costs are those support costs associated with strategic management and compliance with constitutional and statutory requirements. These costs include the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to Trustees on governance or constitutional matters.

Page 23

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES (continued)

f Tangible assets and depreciation

Items costing less than £500 per individual item are written off in the year of acquisition. All other items that can be used for more than one year are capitalised as tangible fixed assets.

Tangible fixed assets are stated at cost (or, if donated, reasonable value on receipt) less depreciation. Deprecation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their estimated useful economic lives as follows:

Fixtures, fittings and equipment - bars and food outlets - 3 to 5 years straight line Fixtures, fittings and equipment - retail - 5 years straight line Fixtures, fittings and equipment - administration - 3 to 5 years straight line Fixtures, fittings and equipment - motor vehicles - 4 years straight line

Assets under construction or not yet brought into use are not depreciated.

Fixed assets are reviewed for impairment where there are indications their service potential may be reduced. For example, an asset related to a specific activity will be reviewed for impairment when there are indications the activity may cease or be reduced.

g Investments

Fixed asset investments are valued at cost less provision for impairment as they are not readily saleable and therefore a reliable market value is not available.

h Financial Instruments

Birmingham City Students’ Union only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

i Stocks

Stocks are valued at the lower of cost and net realisable value. All stocks are goods for resale.

j Fund accounts

Restricted funds comprise income received to be used in accordance with specific instructions imposed by donors, less associated costs. The aim and use of each restricted fund is set out in the notes to the accounts where material.

Unrestricted funds are funds available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated funds are set aside at the discretion of the Trustees for specific purposes. They would otherwise form part of the general reserves

Page 24

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES (continued)

k Pensions

Birmingham City Students’ Union participates in the Student Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. With effect from 30 September 2011 the scheme closed to future accrual. 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 is a multi-employer scheme and operates as a pooled arrangement with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS 102 in these circumstances contributions are accounted for as if the scheme were a defined contribution scheme based on actual contributions paid though the year.

Birmingham City Students’ Union also contributes to National Union of Students Pension Scheme, a defined contribution pension scheme where the pension charge represents the amounts payable by the Union to the scheme in respect of the year.

l Taxation and deferred taxation

Birmingham City Students’ Union is a registered charity and as such is exempt from income tax and corporation tax under the provisions of Section 478 of the Corporation Tax Act 2010. There is no similar exemption for VAT, which is included in expenditure or in the cost of assets as appropriate.

The charity’s subsidiary, Birmingham City Enterprises Limited, as a trading entity, is subject to UK corporation tax and the principle of deferred taxation. Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are not discounted.

Page 25

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

2. DONATIONS AND LEGACIES

Restricted
Unrestricted
funds
funds		 2020 2019
£
£		 £ £
University block grant - 1,175,000 1,175,000 1,173,000
Donation of serviced accommodation - 609,795 609,795 589,000
Other University grants - 34,171 34,171 44,532
Project funding 30,000
-		 30,000 211,687
───────
───────		 ─────── ───────
30,000
1,818,966		 1,848,966 2,018,219
═══════
═══════		 ═══════ ═══════

The donation of serviced accommodation is the estimated value of the services provided by the University free of charge to the group. These include use of premises and related services.

Total income from donations and legacies was £1,848,966 (2019 - £2,018,219) of which £1,818,966 (2019 - £1,806,532) was unrestricted, £nil (2019 - £179,550) was restricted capital funds and £30,000 (2019 - £32,137) was restricted revenue funds.

3. INCOME FROM CHARITABLE ACTIVITES

Restricted
Unrestricted
funds
funds		 2020 2019
£
£		 £ £
Marketing and communications - 79,690 79,690 107,813
Student Voice - - - 4,550
Development and opportunities 27,599
6,508		 34,109 59,079
Engagement general - 1,210 1,210 684
Bars and catering - 292,386 292,386 437,328
Shops - 804,438 804,438 1,096,029
Entertainments - 20,212 20,212 16,770
───────
───────		 ─────── ───────
27,599
1,204,444		 1,232,043 1,722,253
═══════
═══════		 ═══════ ═══════

Total income from charitable activities was £1,232,043 (2019 - £1,722,253) of which £1,204,444 (2019 - £1,684,754) was unrestricted and £27,599 (2019 - £37,499) was restricted revenue funds.

4. INCOME FROM OTHER TRADING ACTIVITIES

Restricted
Unrestricted
funds
funds		 2020 2019
£
£		 £ £
Commercial marketing and sponsorship - 106,898 106,898 9,172
Tenants rents - 2,500 2,500 2,500
Commercial activities - 157,106 157,106 225,131
───────
───────		 ─────── ───────
- 266,504 266,504 236,803
═══════
═══════		 ═══════ ═══════

All income from other trading activities is unrestricted in both the current and prior years.

Page 26

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

5. EXPENDITURE ON RAISING FUNDS

Stock Staff Other Total Total
purchases costs costs 2020 2019
£ £ £ £ £
Fundraising trading:
- Marketing and sponsorship - 75,247 47,734 122,981 135,587
- Commercial activities - 105,645 29,101 134,746 135,988
─────── ─────── ─────── ─────── ───────
- 180,892 76,835 257,727 421,313

─────── ─────── ─────── ─────── ───────

Expenditure on raising funds was £257,727 (2019 - £421,313) of which £257,727 (2019 - £421,313) was unrestricted, £nil (2019 - £nil) was restricted capital funds, and £nil (2019 - £nil) was restricted revenue funds.

6. EXPENDITURE ON CHARITABLE ACTIVITIES

Stock Staff Other Total Total
purchases costs costs 2020 2019
£ £ £ £ £
Advice and information -
141,933		 53,175 195,108 190,468
Marketing and communications -
75,247		 67,284 142,531 135,073
Student Voice -
244,629		 176,097 420,726 361,239
Development and opportunities -
176,918		 129,180 306,098 292,787
The Point -
35,819		 16,286 52,105 -
Engagement general -
60,455		 22,541 82,996 83,725
Member Services general - 80,631 26,123 106,754 110,486
Bars and catering 105,466 272,602 315,604 693,672 628,431
Shops 538,133 307,771 306,140 1,152,044 1,388,405
Entertainments -
29		 304 333 472
─────── ─────── ─────── ─────── ──────
643,599 1,396,034 1,112,734 3,152,367 3,191,086

═══════ ═══════ ═══════ ═══════ ═══════

Total costs of charitable activities were £3,152,367 (2019 - £3,191,086) of which £3,017,892 (2019 - £3,029,458) was unrestricted, £78,069 (2019 - £79,351) was restricted capital funds and £56,406 (2019 – 72,182) was restricted revenue funds.

Staff costs and other costs include support costs analysed in Note 7.

Page 27

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

7. SUPPORT COSTS
Charitable activities: Support
staff		 Serviced
accom-
modation		 Other
support
costs		 Goven
-ance
costs

2020
2019
Advice and information 6% 18,087 38,576 7,374 687
64,724
55,866
Marketing and
communications		 8% 23,283 49,658 9,494 884
83,319
79,233
Student Voice 13% 37,183 79,305 15,162 1,412
133,062
105,954
Development and
opportunities		 9% 26,476 56,468 10,795 1,006
94,745
85,928
Welcome desks 2% 4,740 10,110 1,932 180
16,963
-
Engagement general 3% 7,570 16,145 3,086 288
27,089
24,427
Member Services general 3% 9,896 21,107 4,035 376
35,414
32,406
Bars and catering 18% 51,848 110,582 21,141 1,969
185,540
181,364
Shops 37% 106,796 227,777 43,545 4,057
382,175
407,228
Entertainments 0% 31 66 13 1
111
139
─────
────── ─────── ───── ───── ──────
─
Total 285,911 609,795 116,576 10,860
1,023,142972,544
══════ ═══════ ══════ ═════ ══════
═════
═
Included in other support costs are:
2020 2019
£ £
Admin costs 14,453 6,012
Professional fees 8,543 10,950
Staff support and HR 11,774 28,749
Union general equipment, IT and premises 2,237 9,462
Fixed contracts 14,046 13,120
Depreciation 5,958 4,645
Bank charges 1,365 1,449
Bad debt provision - 600
Pool cars (running costs) - 569
Union general insurance 44,882 42,181
Pension interest 13,318 9,278
────── ──────
116,576 127,075
═══════ ═══════

Page 28

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

7. SUPPORT COSTS (continued)

Included in governance costs are:

Audit and accountancy fees
8a. STAFF COSTS
Wages and salaries
Social security costs
Pension costs
Aggregate employee benefits of key management personnel
The number of higher paid employees whose annual emoluments
(excluding pensions) were £60,000 or more was:
£60,001-£70,000
The number with retirement benefits accruing:
- in defined benefit schemes was
of which the contributions amounted to
The average number of employees for the year was:
Permanent staff
Casual staff		 2020
2019
£
£
10,860
10,095
═══════
═══════
2020
2019
£
£
1,429,328
1,334,050
107,970
100,388
39,628
36,209
───────
───────
1,576,926
1,470,647
═══════
═══════
335,724 312,305
2020
2019
No.
No.
1
1
-
-
£nil
£nil
2020
2019
No.
No.
47
47
55
59
─────
───────
102
106
═════
═══════
──
══

Page 29

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

8b. TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS

In accordance with the Birmingham City Students’ Union memorandum and articles of association, salaries totalling £93,284 (2019 – £65,093) were paid to the Sabbatical Officers that held office for the year for the representation, campaigning and support work they undertake as distinct from their Trustee responsibilities. Of this amount, £85,420 (2019 - £60,489) was split between the six (2019 – four) Sabbatical Officers that held office until the end of June 2020 and £7,864 (2019 - £4,604) was split between the six (2019 – three) Sabbatical Officers that held office from July 2020. During the year pension contributions of £nil (2019 - £197) were made on behalf of one (2019 - one) Sabbatical Officers.

No Trustees (2019 - no Trustees) were reimbursed for out-of-pocket expenses in connection with their Trustee duties. Sabbatical Officers are reimbursed some expenses, but these expenses are incurred by virtue of their role as executives, not in relation to their role as Trustees.

During the year the charity charged its wholly owned subsidiary Birmingham City Enterprises Limited £nil (2019 - £569) for the use of a vehicle. Gift aid payable to the charity for the year was £24,051 (2019 - £91.280).

9. NET INCOME/(EXPENDITURE)

The net income is stated after charging:

he net income is stated after charging:
2020 2019
£ £
Depreciation 119,064 117,862
Auditor’s remuneration – statutory audit 13,800 13,800
Auditor’s remuneration – non-audit services 3,200 3,200
═══════ ═══════
Auditor’s remuneration includes irrecoverable VAT.

Page 30

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

10. TANGIBLE ASSETS

Fixtures,
fittings and
Group equipment
£
Cost
At 1 August 2019 862,547
Additions 10,417
Disposals -
───────
At 31 July 2020 872,964
───────
Depreciation
At 1 August 2019 583,349
Charge 119,064
Disposals -
───────
At 31 July 2020 702,413
───────
Net book value
At 31 July 2020 170,551
═══════
At 31 July 2019 279,198
═══════
Fixtures,
fittings and
Charity equipment
£
Cost
At 1 August 2019 846,103
Additions 10,417
Disposals -
───────
At 31 July 2020 856,520
───────
Depreciation
At 1 August 2019 577,193
Charge 115,025
Disposals -
───────
At 31 July 2020 692,218
───────
Net book value
At 31 July 2020 164,302
═══════
At 31 July 2019 268,910
═══════

Page 31

BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

11. INVESTMENTS

Group Charity
─────────────── ───────────────
2020 2019 2020 2019
£ £ £ £
Birmingham City Enterprises Limited shares -
-
100
100
─────── ─────── ─────── ───────
-
-
100
100
═══════ ═══════ ═══════ ═══════

The charity owns 100% of the issued ordinary share capital of Birmingham City Enterprises Limited, a trading entity that operates a student lettings agency. At the year end, the subsidiary had net assets of £1,419 (2019: net assets of £3,111). During the year, the subsidiary’s turnover was £157,106 (2019: £225,131) and it made a profit of £nil (2019: £nil) after gift aid payable to the parent charity of £24,051 (2019: £91,280).

12. DEBTORS

Group Charity
─────────────── ───────────────
2020 2019 2020 2019
£ £ £ £
Trade debtors 48,978 84,411
48,644		 84,158
Amounts due from subsidiary undertaking - -
39,931		 108,981
Other debtors 4,951 6,350
4,951		 6,350
Prepayments 50,105 28,780
38,863		 15,948
Accrued income 87,564 28,861
87,564		 28,861
─────── ─────── ─────── ───────
191,598 148,402
219,953		 244,398
═══════ ═══════ ═══════ ═══════

13. CREDITORS: Amounts falling due within one year

Group Charity
─────────────── ───────────────
2020 2019 2020 2019
£ £ £ £
Trade creditors 105,183 81,427 96,607 79,250
Amounts due to parent - - - -
Social security and other taxes 12,604 66,951
4,712		 56,378
Other creditors 147,369 121,011
146,996		 119,221
Accruals 88,598 106,210
83,166		 100,151
Deferred income 701 17,858
700		 17,791
Pension liability 93,365 88,919
93,365		 88,919
─────── ─────── ─────── ───────
447,820 482,376
425,546		 461,710
═══════ ═══════ ═══════ ═══════

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

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

Included in the group and charity’s other creditors are funds held for student societies and clubs of:

£
Funds held at 1 August 2019 64,278
Additions 52,226
Withdrawals (42,560)
───────
Funds held at 31 July 2020 73,944
═══════

Deferred income relates to receipts for marketing and events taking place after the year end. All deferred income brought forward was released and all deferred income carried forward arose in the year.

13a. CREDITORS: Amounts falling due after more than one year

Pension liability Group
Charity
──────────────
───────────────
2020
2019
2020
2019
£
£
£
£
1,731,452
977,910
1,731,452
977,910

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. RESTRICTED FUNDS

1 August Incoming Resources 31 July
Group and charity 2019 resources expended Transfers
2020
£ £ £ £
£
Restricted capital funds
University grants for
refurbishments		 175,247 - (74,201) -
101,046
University donated assets 3,868 - (3,868) -
-
─────── ─────── ─────── ─────── ───────
179,115 - (78,069) -
101,046
═══════ ═══════ ═══════ ═══════ ═══════
Restricted revenue funds
Student Experience Projects 23,237 - (1,339) (13,503)
8,395
Widening Participation - - - 26,542
26,542
SLTA - - - 1,048
1,048
School Representatives 1,300 20,000 (19,250) -
2,050
Student Academic Partners 7,563 - - (7,563)
-
Media Groups 7,996 - - 841
8,837
Welcome Desks 3,087 - - -
3,087
BCU Active 16,341 - - -
16,341
National Student Survey 9,283 - - 1,378
10,661
Welcome Week 4,543 10,000 (8,218) -
6,325
Student Engagement - - - 3,000
3,000
Mental Health - - - 2,026
2,026
Data Bank - - - 1,200
1,200
Other restricted funds 6,652 27,599 (27,599) (6,652)
-
─────── ─────── ─────── ─────── ───────
80,002 57,599 (56,406) 8,317
89,512
═══════ ═══════ ═══════ ═══════ ═══════
RESTRICTED FUNDS – PREVIOUS YEAR
1 August Incoming Resources 31 July
Group and charity 2018 resources expended Transfers
2019
£ £ £ £
£
Restricted capital funds
University grants for
refurbishments		 52,310 179,550 (56,613) -
175,247
University donated assets 26,606 - (22,738) -
3,868
─────── ─────── ─────── ─────── ───────
78,916 179,550 (79,351) -
179,115
═══════ ═══════ ═══════ ═══════ ═══════
Restricted revenue funds
Student Experience Projects 26,171 - (2,934) -
23,237
School Representatives 800 21,800 (21,300) -
1,300
Student Academic Partners 7,563 - - -
7,563
Media Groups 7,996 - - -
7,996
Welcome Desks 3,087 - - -
3,087
BCU Active 16,341 - - -
16,341
National Student Survey 9,283 - - -
9,283
Welcome Week 2,606 10,329 (8,392) -
4,543
Graduation Ball - 4,550 (4,550) -
-
Target Sports - 32,265 (32,265) -
-
Other restricted funds 8,701 692 (2,741) -
6,652
─────── ─────── ─────── ─────── ───────
82,548 69,636 (72,182) -
80,002
═══════ ═══════ ═══════ ═══════ ═══════

RESTRICTED FUNDS – PREVIOUS YEAR

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. RESTRICTED FUNDS (continued)

The purposes of significant restricted funds are set out below:

Restricted capital funds relate to University grants for the purchase and refurbishment of fixed assets. Once applied, the funds will equal the book value of the related assets and will reduce as they are depreciated.

The Student Experience Project funds are for projects to investigate how students’ experiences at the University can be improved.

The School Representatives fund is for facilitating the link between students and the University, ensuring that students are able to have their voices heard at all levels of the University.

The Student Academic Partners fund is to pay students working with University staff on projects on teaching and pedagogic research.

The Media Groups fund is for development of the media groups in order to the achieve target set out in the development plan.

The BCU Active fund is for the Sports England funded initiative to get students participating in more physical activities.

The Welcome Desks fund is for increased capacity and reach of welcome desks targeted at campuses with low student engagement with the Students’ Union.

National Student Survey fund is to encourage student participation in the survey.

The Welcome Week fund is for the delivery of an enhanced Welcome Week offer, including the recruitment and remuneration of an institution-wide Welcome Team.

The Graduation Ball fund is funding to subsidise this celebration of students’ time at University.

The Target Sports fund supports, under a partnership agreement, the University Sport & Physical Activity Teams, which relates to the BUCS teams, funded by the University.

Widening Participation fund is to widen participation amongst all students in extracurricular activities to enhance their educational experience.

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

15. UNRESTRICTED FUNDS

15. UNRESTRICTED FUNDS
1 August Incoming Resources
Transfers		 31 July
Group 2019 resources expended 2020
£ £ £
£		 £
Unrestricted funds
Designated fund - volunteering 232 -
-
(232)		 -
Designated fund – deficit reserve 65,000 -
-
(65,000)		 -
General fund 809,177 3,346,903 (3,262,301)
(32,359)		 861,420
Pension reserve (1,066,829) -
(847,262)
89,274		 (1,824,817)
─────── ─────── ─────── ─────── ───────
(192,420) 3,346,903 (4,109,563)
(8,317)		 (963,397)
═══════ ═══════ ═══════ ═══════ ═══════
1 August Incoming Resources
Transfers		 31 July
Charity 2019 resources expended 2020
£ £ £
£		 £
Unrestricted funds
Designated fund - volunteering 232 -
-
(232)		 -
Designated fund – deficit reserve 65,000 -
-
(65,000)		 -
General fund 806,233 3,213,849 (3,127,555)
(32,359)		 860,168
Pension fund (1,066,829) -
(847,262)
89,274		 (1,824,817)
─────── ─────── ─────── ─────── ───────
(195,364) 3,213,849 (3,974,817)
(8,317)		 (964,649)
═══════ ═══════ ═══════ ═══════ ═══════

UNRESTRICTED FUNDS – PREVIOUS YEAR

1 August Incoming Resources
Transfers		 31 July
Group 2018 resources expended 2019
£ £ £
£		 £
Unrestricted funds
Designated fund - volunteering 232 -
-
-		 232
Designated fund – deficit reserve - -
-
65,000		 65,000
General fund 673,673 3,737,121 (3,451,593) (150,024) 809,177
Pension reserve (1,142,580) -
(9,273)
85,024		 (1,066,829)
─────── ─────── ─────── ─────── ───────
(468,675) 3,737,121 (3,460,866)
-		 (192,420)
═══════ ═══════ ═══════ ═══════ ═══════
1 August Incoming Resources
Transfers		 31 July
Charity 2018 resources expended 2019
£ £ £
£		 £
Unrestricted funds
Designated fund - volunteering 232 -
-
-		 232
Designated fund – deficit reserve - -
-
65,000		 65,000
General fund 668,592 3,603,270 (3,315,605) (150,024) 806,233
Pension fund (1,142,580) -
(9,273)
85,024		 (1,066,829)
─────── ─────── ─────── ─────── ───────
(473,756) 3,603,270 (3,324,878)
-		 (195,364)
═══════ ═══════ ═══════ ═══════ ═══════

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

16. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Restricted Restricted
capital revenue Unrestricted Total
funds funds funds funds
Current year £ £
£
£
Fund balances at 31 July 2020 are represented by:
Tangible fixed assets 101,046 - 69,505
170,551
Net current assets - 89,512 698,550
788,062
Long term liabilities - - (1,731,452) (1,731,452)
─────── ───────
───────
──────
Total net assets at 31 July 2020 101,046 89,512 (963,397)
(772,839)
═══════ ═══════ ═══════ ═══════
Previous year
Fund balances at 31 July 2019 are represented by:
Tangible fixed assets 179,115 - 100,083 279,198
Net current assets/(liabilities) - 80,002 685,407 765,409
Long term liabilities - - (977,910) (977,920)
─────── ─────── ─────── ──────
Total net assets at 31 July 2019 179,115 80,002 (192,420) 66,697
═══════ ═══════ ═══════ ═══════

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

17. PENSION SCHEMES

Birmingham City Students’ Union 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 £119,100,000 with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an on-going funding basis amounted to £260,000,000.

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

The Scheme is subject to a revaluation every three years with the last valuation being performed in June 2019. The 2019 valuation recommended a monthly contribution requirement by each employer expressed in monetary terms intended to clear the ongoing funding deficit over an increased period of 21 years and will increase by an average of 18% from 2021.

These contributions also include an allowance for cost of the ongoing administrative and operational expenses of running the Scheme.

The total contributions paid into the scheme by the Union in respect of eligible employees for the year ended 31 July 2020 amounted to £89,274 (2019 - £85,024) including funding deficit contributions of £89,274 (2019 - £85,024).

The Union also contributed to a defined contribution pension scheme in the year: The National Union of Students Pension Scheme. The assets of this scheme are held separately from those of the Union in independently administered funds. The pension charge represents contributions payable by the Union to the scheme and amounted to £39,628 (2019 - £39,237). At the year end, £nil (2019 - £nil) of pension contributions were outstanding and included within other creditors.

Deficit contributions

Annual
Current contributions in 2019/20* £89,988
Contributionspayable in 2020/21(5% increase) £94,476
Contributionspayable in 2021/22(19.5% increase) £112,944
Contributionspayable in 2022/23(5% increase) £118,584

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

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BIRMINGHAM CITY STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

PRESENT VALUES OF PROVISION
2020 2019
Present value of provision
£		 £
Pension liability due in a year
93,365		 88,919
Pension liability due after a year
1,731,452		 977,910
Present value of provision
1,824,817		 1,066,829
Reconciliation of opening and closing provisions
Period Ending
31 July 2020
£
Provision at start of period 1,066,829
Unwinding of the discount factor (interest expense) 13,318
Deficit contribution paid (89,274)
Remeasurements - impact of any change in assumptions 131,368
Increase in period of repayment period 702,575
Provision at end ofperiod 1,824,817
Statement of Financial Activities impact
Period Ending
31 July 2020
£
Interest expense 13,318
Remeasurements - impact of any change in assumptions 131,368
Remeasurements - amendments to the contribution schedule 702,575
Contributions paid in respect of future service -
Costs recognised in income and expenditure account 847,261
Assumptions
31 July 2020 31 July 2019
% per annum % per annum
Rate of interest
1.5%		 2.5%

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

Page 39