2021-07-31-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 2021

BIRMINGHAM CITY STUDENTS’ UNION

CONTENTS

	Page
Legal and administrative details	1 - 2
Trustees’ report	3 – 16
Statement of trustees’ responsibilities	17
Independent auditor’s report	18 – 20
Consolidated statement of financial activities	21
Consolidated balance sheet	22
Charity balance sheet	23
Consolidated statement of cash flows	24
Notes to the financial statements	25 - 42

BIRMINGHAM CITY STUDENTS’ UNION

LEGAL AND ADMINISTRATIVE DETAILS

2021/22

2020/21

Directors and Trustees

Sabbatical Officer & Chair Sabbatical Officers

Victoria Bennett-Salvador

Asha Stewart Leanna Grant Jinal Shah Dhanusha Hema Reddy

Victoria Bennett-Salvador

Amir Iqbal Polly Jones Jinal Shah Runcie Chidebe

Student Trustees

Nathen Birkett Gerda Diederiks Pravjoth Gill

Moazzamah Chaudhry Nathen Birkett Gerda Diederiks Pravjoth Gill

External Trustees

Christopher Pile Stephen Harrison-Mirfield

Christopher Pile Kirsty Turner Stephen Harrison-Mirfield

Runcie Chidebe ceased office and resigned on16 October 2020.

Kirsty Turner resigned on 11 February 2021.

Amir Iqbal and Polly Jones resigned 30 June 2021.

Moazzamah Chaudhry resigned on 6 July 2021.

Asha Stewart, Leanna Grant and Dhanusha Hema Reddy appointed on 1 July 2021

Sabbatical Officers

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

Victoria Bennett-Salvador Victoria Bennett-Salvador Dhanusha Hema Reddy Runcie Chidebe Leanna Grant Polly Jones Asha Stewart Jinal Shah Jinal Shah Amir Iqbal

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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Introduction

Although another disrupted year due to the pandemic, trustees were pleased with the performance of BCUSU. A fully digital welcome week was enabled, along with the remote provision of core service for students, against a backdrop of financial challenge and keeping people safe. It should be noted BCUSU utilised the Government Job Retention Scheme with some areas of the organisation furloughed at 100% and others placed on flexible furlough according to business need. The Elected Officers were not furloughed as their role of amplifying and representing the student voice was integral to the student experience during the academic year.

The following report shares the interim plan and a series of KPI’s to illustrate the performance of BCUSU for the academic year 2020/21. Areas such as our commercial services and societies were stymied due to the pandemic and associated restrictions. Still significant positive work continued and narrative is provided for Student Voice and Executive Officers activity to exemplify the work undertaken in these areas.

It should be noted, although not detailed in the report, BCUSU was running and facilitating online events and other activity throughout the year to build and maintain peer to peer networks and sense of belonging, as well as providing a comprehensive advice service, housing students through our letting agency, maintaining our governance and supporting BCU projects and committees.

Strategic Mission/Vision

An interim plan for 2020/21 was developed using the strategic risk register to inform organisational goals, with awareness that flexibility would be needed throughout an uncertain year.

It was believed that the organisational purpose, ‘we will empower students with the means to shape their own lives’ held true and would drive the work for 2020/21. Furthermore many of our approaches identified in the 2019/20 plan also held true and BCUSU was able to build on the learning through the first wave of the pandemic.

Our Interim Plan Priorities 2020/21

• Academic & Wellbeing Advice

• Student Voice

• Sense of Belonging

• Member Services

• Employability

Academic & Wellbeing Advice

Deliver effective support to students who need independent advice or individual representation whilst at university.

Actively seek out and listen to students’ concerns and ideas in order to accurately and effectively represent and serve their interests at all times.

Goals

• Improve awareness of the service by targeting Schools with initial focus on smaller sites (Vitt St, M St & RBC).

• 80% of students receive first contact within 2 working days of initial enquiry

• Quality of advice is maintained in line with the requirements of the Advice Quality Standard.

• Influencing positive change for students in our main areas of academic and welfare support via social policy work.

• Develop self-help advice resources with initial focus on academic pages.

• Raise awareness of wellbeing issues such as mental health and money saving as well as the support available.

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Student Voice

Actively seek out and listen to students’ concerns and ideas in order to accurately and effectively represent and serve their interests at all times.

Build and deliver the representative networks, structures and systems that enable individual students to achieve positive change on behalf of themselves and others.

Goals

• Support Executive Officers in the advancement of their manifesto’s and other initiatives that support the charitable objectives.

• Train and support student representatives and work with university colleagues to deliver effective representative networks within the student representation system.

• Gather regular internal student insight through both quantitative and qualitative research, as well as external research into national trends and policy, disseminating insight to key stakeholders to make positive change with and on behalf of students.

• Facilitate and discharge the democratic responsibilities of BCUSU, ensuring that the student voice is heard at all levels and that all students, including protected groups are given the opportunity to effect positive change on the policies and operational activity of BCUSU.

• Embed employability goals within Executive Officer and Student Representative training and support.

Sense of Belonging

Connect students into an outstanding and diverse network of student-led communities, activities and interest groups that offer a range of fun experiences, personal development opportunities and informal peer support.

Actively seek out and listen to students’ concerns and ideas in order to accurately and effectively represent and serve their interests at all times.

Goals

• 3,000 students will be an active member of a BCUSU student group receiving a quality experience.

• Continue to expand the number of student groups available to students. Create welcoming environments and a safe space for students to express themselves. Provide opportunities for students to develop friendships and support networks.

• Digital and real-world activity to be available for all students. Encouraging students to lead and shape where appropriate. Engagement Team to support and fill gaps where necessary.

• Signpost community volunteering opportunities, encouraging students to engage in activity across Birmingham and their local community.

• Deliver student group leader training and development to improve their employability skills and link to the experience gained through their leadership roles.

Member Services

Deliver successful commercial services that make everyday life better for students where we are uniquely able to do so, or where the services generate sustainable revenue to support our other activities.

We will provide quality services that have a high perception of value by our customers.

We will utilise our unique relationship with students to develop all future offers and formalise feedback to ensure quality of existing offers.

During the interim plan we will apply a ‘triple tick’ to current and future service provision on the following principles:

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TRUSTEES’ REPORT

• The service is profitable and contributes to other BCUSU initiatives.

• The service is beneficial to students and BCUSU is uniquely able to provide the service.

• There is an expectation (or agreement in place) from our primary funder that BCUSU provides the service.

Goals

• Member Services, through its management team, will deliver or better the agreed budget for 2020/21.

• Operating procedures for all member services will be written that adhere to national legislation and BCU social distancing rules.

• We will only recruit and use the best supervisor and casual staff to complement our core team. We will ensure they are highly trained and continually assessed and monitored

• There will be a real effort and focus on reducing plastic in our retail operations.

• Operating plans for relevant services to include new initiatives to replace business as usual activity where there is an expectation from students. E.g. Welcome Week social activity, Graduation Ball. A diverse range of students will be engaged to contribute in planning activity.

• Welcome Week social activity will be delivered and form the spring board for term 1 on campus activity.

• Birmingham City Student Homes operating model will be reviewed and a one year plan enacted to protect future income and profitability.

• Business cases to be developed, submitted and delivered if approved to future proof member services commerciality and student demand. E.g. City South Shop refurb.

People and Culture

Build and deliver the representative networks, structures and systems that enable individual students to achieve positive change on behalf of themselves and others.

Work in partnership with the University to further the purpose of the charity.

Goals

• Return to work plan and clarification of working practises during 2020/21. Including staff wellbeing (student staff and core staff).

• Ensure staff resources are structured to deliver the interim plan or as a result of financial plan.

• Understand ‘pain points’ for staff and officer team leading to inefficiencies and lead task and finish groups to eradicate.

• Delivery of the People Plan against the scheduled timetable for 2020/21.

Communication and Digital

Connect students into an outstanding and diverse network of student-led communities, activities and interest groups that offer a range of fun experiences, personal development opportunities and informal peer support.

Actively seek out and listen to students’ concerns and ideas in order to accurately and effectively represent and serve their interests at all times

• .

Support Member Services to deliver successful commercial services that make everyday life better for students and generate sustainable revenue.

Goals

• Lead on application of the Communication Strategy against the Communications Calendar as steered by Communication & Strategic Development Subcommittee.

• Establish a new and transparent marketing request process supported by appropriate software and methodology.

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• Support engagement teams with developing digital communities.

• Support member service teams in the physical manifestation of the brand through on and off campus service provision.

• Support delivery of a virtual welcome week (fair) and on-going induction/orientation.

• Amplify BCU communications where it is of direct benefit or importance to students. Including employability and using communications to raise awareness of students of their involvement in BCUSU and graduate skills.

• Increase scale and impact of Refreshers Fair in conjunction with engagement colleagues.

• Build on current website design and structure to support the aims and objectives of interim plan. Keep focused on strategic priorities.

• Utilise customer segmentation and improved student data to personalise communications and target opportunities. Including direct personalise emails through term 1 to students encouraging engagement with BCUSU.

• Achieve at least £30,000 in media sales and commercial agreements.

• Understand organisation change implications to move from ‘doing digital’ to ‘being digital’.

Organisational Sustainability

Mitigate financial and reputational risk to BCUSU and ensure organisation can rebuild following pandemic.

Goals

• Develop the financial plan and agree through Audit & Risk.

• Support managers in reporting financial information in a timely manner to SLT.

• Work with managers to ensure budget holders have correct live data where applicable. For example, EPOS reports are used as an early warning on member service performance.

• Undertake all statutory requirements including external audit and any subsequent agreed recommendations.

• Make process efficiencies within the Finance Department as planned, but not to the detriment of financial reporting goals. Including fully integrating the management accounts with accounting and payroll software.

• Ensure IT infrastructure can deliver the interim plan requirements and look to formalise BCU commitment to IT hardware refresh in future years. Including migration to SharePoint online.

• Ensure BCUSU estate is used effectively to further the Interim Plan objectives, working in conjunction with People & Culture Team and other managers on working practises.

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TRUSTEES’ REPORT

1. KPI’S (QPR3)

Key Performance Indicator - KPI	2019/20 Target (as of 1 Aug 2020)	2019/20 Outturn (as of 1 Aug 2020) if applicable	QPR 1 In-year Actual (Nov 2020)	QPR 2 In-year Actual (Feb 2021)	QPR 3 In-year Actual (May 2021)	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%	40%	40%	40%	43%	Green
85% of students will agree they feel a sense of belonging at their place of study by 2020	85%	88%	88%	88%	81%	Amber
85% of students will agree they feel part of a University community by 2020	80%	78%	78%	78%	69%	Amber
Number of Academic Reps	1,066	965	714	860	851	Green
Number of students completing Student Voice Assistant surveys	15,000	8,297	250	251	1,624	Green
Number of students voting in Executive Officer Elections	5,000	3,751	3,751	3,751	2,309	Green
Number of students signed up to a society	3,000	2,137	1,007	1,474	1,623	Amber
Number of students signed up to a BUCS sports club	625	511	0	0	0	Amber
Number of students signed up	500	571	380	427	487	Green

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to an protected society
Number of students signed up to an academic society	450	446	316	410	475	Green
Money retained (student fees) as a result of students using the Advice & Information Service	No target as for reporting purposes	£115k	£22k	£22k	£40k	Green
Overall total number of new advice cases opened	No target as for reporting purposes	721	200	345	499	Green
Total budget contribution (surplus) from Member Services	£135k	£31k	£37k	-£94k	-£267k	Red
% Employee Engagement Score in national staff survey	94%	98%	98%	98%	98%	Green
Free reserves match Reserve Policy requirements	£413k	£791k	£791k	£791k	£791k	Green

2. Academic Student Voice

In the 2020/2021 academic year 838 students were recruited as Course Reps and 35 as School Reps.

During the pandemic the majority of representation functions were delivered online including School Rep meetings. These meetings were well attended and resulted in fruitful dialogue and feedback between BCUSU and the Reps. BCUSU used Microsoft teams Planner to develop a Faculty based School Rep Forum that gathered and resolved many complex feedback issues and included University staff members to allow feedback to be solved live on the Planner. The Student Voice team shared the findings directly with the PVC Learning & Teaching, who supported by the Students’ Union addressed many of the issues and fed back to students.

School Reps highlighted a lack of Library Resources online leading to the Students’ Union working with the Library to gain a better understanding of the issues and to explore ways of flagging up to students the various ways of accessing alternative and equivalent resources.

HELS Reps have been highly involved in discussions around placements, timetables and examinations. Feedback involving Nursing and Midwifery Reps helped secure students extra time for specific online examinations.

Reps from BLSS and CEBE also highlighted issues with timetabling, for example students having their timetables spread out across the week meaning they were having to travel in on multiple days for a single lecture. School Reps worked with their schools to push forward the availability of catch up lectures.

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Reps in ADM voiced support for arrangements in place for students to “informally” discuss pastoral or mental health issues, however, highlighted that the opportunities also needed to be made available to parttime students by potentially scheduling these events into student timetables.

Other work included:

• Access to specific software via VPN due to students studying from home

• Faculty (ADM) wide discord server to aid communication

• Various comms/solutions/reassurance around Covid-19 safety – cleaning of rooms, Mask wearing, increasing room size

• Updating outdated Moodle content

• Clarification of no detriment policy

• Increased online storage for student drives

• Clarity on timetabling issues

Course and School Reps were also utilised to support BCU’s IT Department by testing and providing feedback on a new IT Help Service Desk Project.

The Student Voice Team found that the effect of Covid-19 on the representation system was to invigorate efforts to solve issues and reach solutions, with countless examples of students working tirelessly on each other’s behalf to solve student issues. The informal and flexible structures put in place during Covid-19 meant that an effective and robust feedback and representation offering for students was maintained.

The Representation System in BCU has been undergoing a review, spurred on by the need to update the mechanisms in the light of new initiatives that have enhanced student voice over time.

One of the initial changes to come from the review was the decision to revert back to the use of Course Reps rather than Student Academic Leaders (SALs) from the beginning of the 2020/2021 academic year.

A further decision was taken to trial School Rep elections in Royal Birmingham Conservatoire. The results of this trial are currently being reviewed to establish the viability of such a mechanism across the whole university.

In total BCUSU’s Student Voice surveys received 2,250 responses. Student Voice continued with its use of the Covid-19 Heat Map, with new subject areas relevant to the pandemic. Additional surveys were also conducted, including work with the University on student views on “Your BCU branding”, and work as part of the group examining digital access and technology (including Digital Inclusivity). Student Voice also responded to the Office for Students Call for Evidence – Digital Learning and Teaching, using survey and focus group data in evidence.

The chart below displays the top 10 issues from the final survey of the 2021/2022 academic year compared with the final survey of the 2020/2021 academic year. Whilst certain issues, for example, Wi-Fi and study space have remained consistently at or near the top, issues such as anxiety, rent difficulties and lack of awareness of student reps and BCUSU’s Executive Officers have seen noticeable increases.

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Label		Weighted Average
Sample Size		285
				Ranks
Rank	Category	Issue	Percentage mentioning issue	climbed since survey w/c 29/05/20
	Studying and
1	Learning from	WIFI speed - at home	40%	4
	Home
	Studying and
2	Learning from	WIFI connection - at home	38%	2
	Home
	Studying and
3	Learning from	Lack of quiet study space	36%	-2
	Home
4	Learning and Teaching Online	Lecture disruption (technology)	28%	14
	Studying and
5	Learning from	Lack of study space	25%	-2
	Home
6	Student Voice	I don’t know who my School Rep is	25%	25
7	Student Voice	I don’t know who my Student Academic Leader is	24%	30
8	Isolation / Social Distancing	I'm feeling anxious on my own	22%	43
	University	Lack of communication on
9	Response -	arrangements for learning and	21%	-2
	Coronavirus	teaching
10	Studying and Learning from Home	Access to printing - requirement of the course	21%	-8

Student Voice Assistants (SVAs) in the Student Voice Team continued to work, however, they moved completely online engaging with students digitally rather than face to face. Being aware that students were already spending a significant amount of time online, both studying and in their personal life, the decision was taken to reduce the number of surveys conducted throughout the year, to avoid survey fatigue, and to utilise the SVAs in disseminating information from the university, for example, promoting the initiatives put in place by the Library and Learning Resources team to allow students to access the books etc. needed for studying, whilst taking account of the current Coronavirus situation.

Prior to the pandemic it was clear that Student Advisory Panel was struggling as a governance structure. As a result of the pandemic Student Advisory Panels moved to an online forum hosted on the BCUSU website, with a different format and new name; Online Ideas Board. Students are able to submit and vote on ideas, with discussion as to the merits of an idea being discussed online. If an idea reaches a threshold number of votes it is reviewed by the Executive Officers and a decision taken whether or not to move forward with the idea.

In the last academic year the Online Ideas Board saw 11 ideas come through. The year was largely a year of trial and error in relation to the Board, however, it was felt that the new process did represent a functioning governance structure. More work will be conducted in 2021/2022 to increase its impact and efficacy.

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Executive Officers 2020-21

The Executive Officer Team delivered campaigns, projects and events during the year 2020-21 and detailed below is the impact coming from these items. It is noted that due to the Pandemic, many of the Executive were unable to carry out their campaigns as ‘business as usual’ impact was measured digitally and reflective of online engagement, including focus groups through MS Teams and Heat Map surveys supported by the Representation System.

An inherited campaign was that of students demanding rent rebates which has successfully lobbied with the support of the University Accommodation Team.

The government’s funding allocation to hardship saw £2.5M spent on BCU students through the Hardship Fund, with the Students’ Union tailoring the plan to Student Parents and Carers, International Students and those impacted by the blended delivery on campus.

During the festive winter season, the pandemic meant many of our international students could not return home. The Students’ Union delivered festive care packages across Birmingham to students isolated in accommodation alongside online events to keep them connected.

Working with DVC Academic, the Students’ Union carried out the APP Student Submission supporting clear narrative of student opinion and development insights for the University to make actionable change.

Campaign on Digital Inclusivity saw an allocation of £800,000 towards laptop and Wi-Fi, and keeping campus accessible to ensure all students can get a quiet study space.

Introduced the Student Digital Champions to improve students’ online experience as part of the campaign on Virtual Learning Environment to successfully improve the feedback system on Moodle, digital lecture engagement and layouts. This gives way for sharing best practice between academic staff.

The pandemic detrimentally affected those who have clinical vulnerability therefore when writing the Student with Exemption policy the Students’ Union ensured clarity on policy and communication.

Delivery of the Report & Support Tool implementing a way for students and staff to report crimes and receive the support they deserve across their time at BCU. This now report directly to EDI Committee quarterly and the #YourVoice marketing campaign continues to support the work on developing the conversation and culture of using the Report & Support Tool.

Delivered an ‘In Conversation with the VCO’ event, where students’ questions were answered by the Vice Chancellor’s Office.

Held weekly Q&A sessions with different Students’ Union societies to build community during the pandemic.

With an increase of business profiting from ‘assignment helpers’ therefore impacting on academic integrity, the Students’ Union worked with the Centre for Academic Success to clarify and update information about plagiarism on their website.

Ongoing work on a campaign to bring extra-curricular space to Seacole to show the gratitude from the Students’ Union and University for our HELS student key workers during the pandemic. This will be delivered in 2022 and falls under the development and expansion of Seacole.

Conclusion

Another challenging year, compounded by the loss of income streams resulting in significant deficit forecasts. The application of furlough to parts of the organisation was necessary to maintain organisational sustainability and care was taken to ensure students continued to receive the service expected from their Students’ Union. Audit & Risk Subcommittee are pleased to report BCUSU has managed the financial impact of the pandemic to date without increased financial assistance from our primary funder.

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Undoubtedly the year ahead will provide further challenges for BCUSU. Representing students through a period of substantial change, the return to ‘in person’ and further potential restrictions will require strong representation and amplification of the student voice. Moreover the impact of staff agile working, improved timetables and remote delivery of lectures potentially will impact campus footfall and as a result commercial turnover.

It is timely now to develop a new strategy for BCUSU, following the publishing of BCU’s strategic plan and arguably a new chapter for students. Work is underway on gathering insight, consultation and baseline metrics with the plan set to be published in the New Year.

One Page Strategic Plan

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

Values:  Think Big  Long term, not short term  Communication, communication, communication  Yes WE can! Our Approach: We will: Connect students into an outstanding and diverse network of student-led communities, activities and interest groups that offer a range of fun experiences, personal development opportunities and informal peer support. Actively seek out and listen to students’ concerns and ideas in order to accurately and effectively represent and serve their interests at all times. Build and deliver the representative networks, structures and systems that enable individual students to achieve positive change on behalf of themselves and others. Deliver effective support to students who need independent advice or individual representation whilst at university. Work in partnership with the University to further the purpose of the charity. Our Priorities: Deliver successful commercial services that make everyday life better for students where we are uniquely able to do so, or where the services generate sustainable revenue to support our other activities. Employability We will help our students to acquire and evidence a range of nonacademic experiences, skills and resources that are attractive to employers and offer long-term personal benefits. Academic Student Voice We will empower our students to meaningfully and effectively influence their own academic experience. Sense of Belonging We will increase students’ awareness of the opportunities available to help them find or form a supportive peer community.

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Future plans

The trustee believe the current strategic priorities hold true for academic year 2021/22 along with the inclusion of Supporting Students.

Sense of Belonging

Induction and orientation for new students but also returning students, who missed out on a typical welcome experience, has been a priority and reflected in the planned welcome activity and investment.

Focused segmented communication, encouraging students to engage in sports and society activity, make friends and develop peer to peer support networks.

Furthermore, our commercial activity provides social space on campus to compliment social study space. Providing a safe environment and improving ‘sticky campus’ attributes. With the rise in student numbers at City South it is crucial to further improve the BCUSU estate.

Academic Student Voice

Proposed embedding of new pedagogy, blended learning and teaching, within a more usual operating environment will require a solid academic representation system. Informing academic leaders at both an institutional and course level of good practice and where improvements can be made will be key in advancing the progression and attainment. Perhaps more important ensuring students are heard and can influence change to their academic environment.

Starting from a sound base (circa 900 course reps, heat maps, solid working relationships) it is a priority to ensure students are clear who their representatives are and how to affect change on their course. BCUSU will continue to build the relationship between student representatives and course leaders to improve this aspect. Utilising personalised communication to reinforce in class messaging.

The feedback and consensus from trustees was that the gains made over recent years have resulted in a robust student feedback system. Suggesting that for 2021/22 we hold the position and prioritise resources to other areas. This is not to say that Academic Student Voice suffers but rather a reflection that it is providing the required service at this time and should be maintained.

Employability

Graduate employment and part time employment has been significantly affected during the pandemic, adversely impacting students. The approach during the previous strategic cycle was no duplication and to support Graduate+ and Careers+, for example inefficient to hold competing recruitment events. BCUSU will continue to support both services (BCUSU activity is embedded within Graduate+) although there is a desire to develop a standalone BCUSU employability offer, potentially focused on part time work/community volunteering. For example, BCUSU have developed the volunteering area of the website and currently are encouraging students to volunteer for the commonwealth games.

The feedback from trustees was mixed reflecting that the University offers a significant employability offer, with budgets far in excess of the total BCUSU funding. That employability is not a central tenant of BCUSU but rather a supplementary benefit.

Supporting students

A strategic theme of supporting students as a result of the pandemic impact was included in the interim plan and believed will continue to be a priority for students.

• Advocacy: standing up for BCU students’ rights

• Mental Health: peer to peer support networks, improving access routes to support services

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• Academic Representation: challenging academic environment for many students, changes to no detriment policy, changes to Extenuating Circumstances process

• Support & Report: improved data, social policy work

The year ahead looks primed for significant social political change and this will impact students, how do we ensure BCUSU advocates appropriately. The new Support & Report tool will provide more data as to the incidents on campus and how we respond to improve campus communities, for example, personal development workshops, educational standpoint around EDI, interpersonal skills, acceptance, etc.

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 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 continue to be evaluated against a scored matrix as part of the job evaluation process as directed by policy. This activity includes the pay and remuneration of the senior management team. The current pay spine has been agreed at HR & Remuneration Subcommittee and Trustee Board. Furthermore, cost of living increases are agreed at HR & Remuneration Subcommittee in line with those awarded by our principal funder.

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.

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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 strategic risk register is submitted quarterly to Audit & Risk Committee, the risk register includes risk mitigation actions that are assigned to individuals.

The highest risks currently are the impact of changes to pedagogy negatively impacting on trading and student engagement compounded by the impact of flexible working on trading activity.

To mitigate this risk, increased financial reporting continues including reducing operational costs. A forecast budget has been developed with consideration of reduced turnover and a recruitment freeze continues to be in place. Trustees discuss free reserves at regular intervals and cash flow is reported.

Furthermore, BCUSU has developed good digital delivery of services and in many areas seen an increase in engagement.

The impact of the pandemic on the organisation and beneficiaries has been well managed to date, working closely with University colleagues. Nevertheless, the risk of Covid cases increasing and social restrictions negatively impacting on operational delivery exists into 2021/22.

To mitigate this risk, senior leadership continue to work closely with health and safety colleagues. With covid risk assessments undertaken. For example, many areas of activity continue to be at 1 metre distancing. The organisation has proven resilience across IT infrastructure, processes, and staff resource, able to move to remote delivery quickly.

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 £1,264,000 (2020 - £1,175,000). 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 £631,138 (2020 – 609,795).

Birmingham City Students’ Union gross income from all sources this year totalled £2,731,340 (2020 - £3,404,502). Total expenditure of £2,551,676 (2020 - £3,410,094) on the wide-ranging student benefits we provide, as well as on the modest fundraising and other revenue-generating activities we undertake, gave net income before gains/(losses) for the year of £179,664 (2020 - £(5,592)).

The result for the year includes a net deficit on restricted capital and revenue funds of £43,855 (2020 - surplus £68,559). On unrestricted funds, the surplus for the year totalled £325,040 (2020 – deficit £770,977)

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 £925,907 at the year-end (2020 - £791,915). This is greater than the Trustees’ target reserve level of three months’ expenditure which is approximately £483,312 due to being based on original financial forecasts for 2020-2021.

Page 15

BIRMINGHAM CITY STUDENTS’ UNION

TRUSTEES’ REPORT

The subsidiary company Birmingham City Enterprises Limited has net (liabilities)/assets of (£16,411) (2020 - £1,419) at 31 July 2021. The letting agency has generated operating (loss)/profits of (£16,511) (2020 - £24,051) in the year 31 July 2021, with gift aid of £nil being paid to the Union.

Third party indemnity provisions

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

Page 16

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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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:

• 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 the auditor is aware of that information.

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.

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. This report, incorporating the strategic report was approved by the Directors and Trustees on 4 November 2021 and signed on their behalf.

Victoria Bennett-Salvador

Chair of Trustees

Page 17

BIRMINGHAM CITY STUDENTS’ UNION

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 2021 which comprise the group statement of financial activities, the consolidated and company only balance sheet, the consolidated cash flow 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:

• give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 July 2021 and of the Group’s incoming 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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 related to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and Parent Charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 18

BIRMINGHAM CITY STUDENTS’ UNION

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

Opinions 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

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Report of the Trustees.

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

• adequate and proper accounting records have not been kept by the Group or Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or

• the Group or Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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 directors 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 directors are responsible for assessing the Group’s and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below:

Our assessment focussed on key laws and regulations the Group and Parent Charitable Company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation.

Page 19

BIRMINGHAM CITY STUDENTS’ UNION

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

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

• obtaining an understanding of the legal and regulatory framework applicable to the Group and Parent Charitable Company and how the Group and Parent Charitable Company are complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;

• obtaining an understanding of the Group and Parent Charitable Company’s control environment and how the Group and Parent Charitable Company have applied relevant control procedures, through discussions with Directors and other management and by performing walkthrough testing over key areas;

• obtaining an understanding of the Group and Parent Charitable Company’s risk assessment process, including the risk of fraud;

• reviewing meeting minutes of those charged with governance throughout the year; and

• performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members, 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: 8 December 2021

Chartered Accountants Statutory Auditors Park View One Central Boulevard Blythe Valley Business Park Solihull West Midlands B90 8BG

Page 20

BIRMINGHAM CITY STUDENTS’ UNION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) FOR THE YEAR ENDED 31 JULY 2021

		Restricted	Restricted
		capital	revenue	Unrestricted	2021	2020
		funds	funds	funds	Total	Total
	Note	£	£	£	£	£
Income from:
Donations and legacies	2	-	31,000	1,949,967	1,980,967	1,848,966
Charitable activities	3	-	-	208,642	208,642	1,230,833
Other trading activities	4	-	-	147,308	147,308	164,219
Investments		-	-	96	96	1,977
Other		-	-	43,056	43,056	42,051
Government grants		-	-	351,271	351,271	116,456
		───────	───────	───────	───────	───────
Total income		-	31,000	2,700,340	2,731,340	3,404,502
		───────	───────	───────	───────	───────
Expenditure on:
Raising funds	5	-	-	238,911	238,911	257,727
Charitable activities	6	39,933	34,922	2,237,910	2,312,765	3,152,367
		───────	───────	───────	───────	───────
Total expenditure		39,933	34,922	2,476,821	2,551,676	3,410,094
		───────	───────	───────	───────	───────
Net expenditure/(income)	9	(39,933)	(3,922)	223,519	179,664	(5,592)
Transfers between funds	14/15	-	-	-	-	-
		───────	───────	───────	───────	───────
Other recognised gains/(losses)
Actuarial gains/(losses) on defined
benefit pension schemes	17	-	-	101,521	101,521	(833,944)
		───────	───────	───────	───────	───────
Net movement in funds		(39,933)	(3,922)	325,040	281,185	(839,536)
Fund balances brought forward		101,046	89,512	(963,397)	(772,839)	66,697
		───────	───────	───────	───────	───────
Fund balances carried forward	16	61,113	85,590	(638,357)	(491,654)	(772,839)
		═══════	═══════	═══════	═══════	═══════

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 25 to 42 form part of these financial statements.

Page 21

BIRMINGHAM CITY STUDENTS’ UNION Registered Company Number 03426445 CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021

			2021		2020
	Note	£	£	£	£
Fixed assets
Tangible assets	10		137,319		170,551
Current assets
Stocks		63,131		84,581
Debtors	12	36,638		191,598
Cash at bank and in hand		1,325,233		959,703
		───────		───────
		1,425,002		1,235,882
Creditors:amounts falling due within one
year	13	(521,814)		(447,820)
		───────		───────
Net current assets			903,188		788,062
			───────		───────
Total assets less current liabilities			1,040,507		958,613
Defined benefit pension scheme liability	13a
			(1,532,161)		(1,731,452)
			───────		───────
Net (liabilities)/assets			(491,654)		(772,839)
			═══════		═══════
The funds of the charity
Restricted capital funds	14		61,113		101,046
Restricted revenue funds	14		85,590		89,512
Unrestricted funds
General	15	1,002,113		861,420
Pension Reserve	15	(1,640,470)		(1,824,817)
		───────	(638,357)	───────	(963,397)
			───────		───────
			(491,654)		(772,839)
			═══════		═══════

The financial statements were approved and authorised for issue by the trustees and were signed on their behalf on ………………………. 26/11/2021

Victoria Bennett - Salvador Chair of Trustees

The notes on pages 25 to 42 form part of these financial statements.

Page 22

BIRMINGHAM CITY STUDENTS’ UNION Registered Company Number 03426445 CHARITY BALANCE SHEET AS AT 31 JULY 2021

			2021		2020
	Note	£	£	£	£
Fixed assets
Tangible assets	10		134,189		164,302
Investments	11		100		100
			───────		───────
			134,289		164,402
Current assets
Stocks		63,131		84,581
Debtors	12	64,556		219,953
Cash at bank and in hand		1,295,620		913,971
		───────		───────
		1,423,307		1,218,505
Creditors:amounts falling due within one
year	13	(501,141)		(425,546)
		───────		───────
Net current assets			922,166		792,959
			───────		───────
Total assets less current liabilities			1,056,455		957,361
Defined benefit pension scheme liability	13a		(1,532,161)		(1,731,452)
			───────		───────
Net assets			(475,706)		(774,091)
			═══════		═══════
The funds of the charity
Restricted capital funds	14		61,113		101,046
Restricted revenue funds	14		85,591		89,512
Unrestricted funds
General	15	1,018,690		860,168
Pension Reserve	15	(1,640,470)		(1,824,817)
		───────	(621,780)	───────	(964,649)
			───────		───────
			(475,076)		(774,091)
			═══════		═══════

The financial statements were approved and authorised for issue by the trustees and were signed on their behalf on …………………………. 26/11/2021

Victoria Bennett - Salvador Chair of Trustees

The notes on pages 25 to 42 form part of these financial statements.

Page 23

BIRMINGHAM CITY STUDENTS’ UNION STATEMENT OF CASH FLOWS AS AT 31 JULY 2021

		2021	2020
		£	£
Cash flow from operating activities:
Net cash provided by operating activities	Below	412,524	(44,569)
Cash flows from investing activities:
Purchase of property, plant and equipment		(46,994)	(10,417)
Net cash used in investing activities		───────	───────
		(46,994)	(10,417)
Change in cash and cash equivalents in the reporting
period		365,530	(54,986)
Cash and cash equivalents at the beginning of the reporting
period		959,703	1,014,689
		───────	───────
Cash and cash equivalents at the end of the reporting period		1,325,233	959,703
		═══════	═══════
Reconciliation of income for the reporting period (as per
the statement of financial activities)		281,185	(839,536)
Adjustments for:
Depreciation		80,226	119,064
Decrease in stocks		21,450	113
(Increase) /decrease in debtors		154,960	(43,196)
Increase /(decrease) in creditors		(125,297)	718,986
		───────	───────
Net cash (used)/ provided by operating activities		412,524	(44,569)
		═══════	═══════
Analysis of cash and cash equivalents
Cash in hand		1,325,233	959,703
		═══════	═══════

Analysis of changes in net debt

	At 1
	August		Other	At 31 July
	2020	Cashflows	changes	2021
	£	£	£	£
Cash at bank and in hand	959,703	365,530	-	1,325,233
	───────	───────	───────	───────
	959,703	365,530	-	1,325,233
	═══════	═══════	═══════	═══════

Page 24

BIRMINGHAM CITY STUDENTS’ UNION

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

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, 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:

• the charity becomes entitled to the resources;

• it is probable the charity will receive the resources; and

• the monetary value can be measured with sufficient reliability.

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 25

BIRMINGHAM CITY STUDENTS’ UNION

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

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.

Income from the Coronavirus Job Retention Scheme (CJRS) has been recognised within government grants in the period it relates to using the accruals method.

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 26

BIRMINGHAM CITY STUDENTS’ UNION

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

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 27

BIRMINGHAM CITY STUDENTS’ UNION

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

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.

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BIRMINGHAM CITY STUDENTS’ UNION

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

2. DONATIONS AND LEGACIES

	Restricted	Unrestricted
	funds	funds	2021	2020
	£	£	£	£
University block grant	-	1,264,000	1,264,000	1,175,000
Donation of serviced accommodation	-	631,138	631,138	609,795
Other University grants	-	54,829	54,829	34,171
Project funding	31,000	-	31,000	30,000
	───────	───────	───────	───────
	31,000	1,949,967	1,980,967	1,848,966
	═══════	═══════	═══════	═══════

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 £1,980,967 (2020 - £1,848,966) of which £1,949,967 (2020 - £1,818,966) was unrestricted, £nil (2020 - £nil) was restricted capital funds and £31,000 (2020 - £30,000) was restricted revenue funds.

3. INCOME FROM CHARITABLE ACTIVITES

	Restricted	Unrestricted
	funds	funds	2021	2020
	£	£	£	£
Marketing and communications	-	27,603	27,603	79,690
Student Voice	-	-	-	-
Development and opportunities	-	3,570	3,570	34,109
Bars and catering	-	61,984	61,984	292,386
Shops	-	115,485	115,485	804,438
Entertainments	-	-	-	20,212
	───────	───────	───────	───────
	-	208,642	208,642	1,230,833
	═══════	═══════	═══════	═══════

Total income from charitable activities was £208,642 (2020 - £1,232,043) of which £208,642 (2020 - £1,203,234) was unrestricted and £nil (2020 - £27,599) was restricted revenue funds.

4. INCOME FROM OTHER TRADING ACTIVITIES

	Restricted	Unrestricted
	funds	funds	2021	2020
	£	£	£	£
Commercial marketing and sponsorship	-	38,066	38,066	4,613
Tenants rents	-	-	-	2,500
Commercial activities	-	109,242	109,242	157,106
	───────	───────	───────	───────
	-	147,308	147,308	164,219
	═══════	═══════	═══════	═══════

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

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BIRMINGHAM CITY STUDENTS’ UNION

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

5. EXPENDITURE ON RAISING FUNDS

	Stock	Staff	Other	Total	Total
	purchases	costs	costs	2021	2020
	£	£	£	£	£
Fundraising trading:
- Marketing and sponsorship	-	74,957	36,882	111,839	122,981
- Commercial activities	-	69,221	57,851	127,072	134,746
	───────	───────	───────	───────	───────
	-	144,178	94,733	238,911	257,727
	───────	───────	───────	───────	───────

Expenditure on raising funds was £238,911 (2020 - £257,727) of which £238,911 (2020 - £257,727) was unrestricted, £nil (2020 - £nil) was restricted capital funds, and £nil (2020 - £nil) was restricted revenue funds.

6. EXPENDITURE ON CHARITABLE ACTIVITIES

	Stock	Staff	Other	Total	Total
	purchases	costs	costs	2021	2020
	£	£	£	£	£
Advice and information	-	143,770	50,569	194,339	195,108
Marketing and communications	-	74,957	67,634	142,591	142,531
Student Voice	-	218,466	154,045	372,511	420,726
Development and opportunities	-	141,206	75,960	217,166	306,098
The Point	-	38,941	12,841	51,782	52,105
Engagement general	-	62,572	23,836	86,408	82,996
Member Services general	-	65,053	28,528	93,581	106,754
Bars and catering	25,650	235,051	212,865	473,566	693,672
Shops	80,937	288,104	311,662	680,703	1,152,044
Entertainments	-	36	82	118	333
	───────	───────	───────	───────	──────
	106,587	1,268,156	938,022	2,312,765	3,152,367
	═══════	═══════	═══════	═══════	═══════

Total costs of charitable activities were £2,312,765 (2020 - £3,152,367) of which £2,237,910 (2020 - £3,017,892) was unrestricted, £39,933 (2020 - £78,069) was restricted capital funds and £33,492 (2020 – 56,406) was restricted revenue funds.

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

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BIRMINGHAM CITY STUDENTS’ UNION

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

7. SUPPORT COSTS
Charitable activities:		Support staff	Serviced accom- modation	Other support costs	Gover nance costs	2021	2020
Advice and information	6%	20,723	39,926	7,045	657	68,351	64,724
Marketing and communications	8%	26,677	51,396	9,069	846	87,988	83,319
Student Voice	13%	42,603	82,081	14,483	1,351	140,518	133,062
Development and opportunities	9%	30,335	58,444	10,312	962	100,053	94,745
Welcome desks	2%	5,431	10,464	1,846	172	17,913	16,963
Engagement general	3%	8,673	16,710	2,948	275	28,606	27,089
Member Services general	3%	11,339	21,846	3,855	360	37,400	35,414
Bars and catering	18%	59,405	114,452	20,194	1,884	195,935	185,540
Shops	37%	122,363	235,749	41,596	3,881	403,589	382,175
Entertainments	0%	36	69	12	1	118	111
		──────	───────	─────	─────	──────	─────
Total		327,585	631,137	111,360	10,389	1,080,4711,023,142
		══════	═══════	══════	═════	══════	═════
Included in other support costs are:
						2021	2020
						£	£
Admin costs						14,402	14,453
Professional fees						5,890	8,543
Staff support and HR						10,683	11,774
Union general equipment,	IT and	premises				2,446	2,237
Fixed contracts						12,379	14,046
Depreciation						5,667	5,958
Bank charges						1,045	1,365
Union general insurance						47,946	44,882
Pension interest						10,902	13,318
					──────		──────
						111,360	116,576
					═══════		═══════

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BIRMINGHAM CITY STUDENTS’ UNION

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

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		2021 2020 £ £ 10,391 10,860 ═══════ ═══════ 2021 2020 £ £ 1,266,826 1,429,328 105,695 107,970 39,813 39,628 ─────── ─────── 1,412,334 1,576,926 ═══════ ═══════ 325,643 335,724 2020 2019 No. No. 1 1 - - £nil £nil 2021 2020 No. No. 47 47 25 55 ───── ─────── 72 102 ═════ ═══════
	── ══

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BIRMINGHAM CITY STUDENTS’ UNION

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

8b. TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS

In accordance with the Birmingham City Students’ Union memorandum and articles of association, salaries totalling £81,797 (2020 – £93,284) 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, £73,934 (2020 - £85,420) was split between the five (2020 – six) Sabbatical Officers that held office until the end of June 2021 and £7,865 (2020 - £7,864) was split between the five (2020 – six) Sabbatical Officers that held office from July 2021. During the year pension contributions of £885 (2020 - £nil) were made on behalf of five (2020 - one) Sabbatical Officers.

No Trustees (2020 - 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 received gift aid from its wholly owned subsidiary Birmingham City Enterprises Limited of £nil (2020 - £24,051).

There were no other related party transactions.

9. NET INCOME/(EXPENDITURE)

The net income/(expenditure) is stated after charging/(crediting):

		2021	2020
		£	£
Depreciation		80,226	119,064
Auditor’s remuneration – statutory audit		13,300	13,800
Auditor’s remuneration – non-audit services		3,200	3,200
Total	grant income from Coronavirus Job Retention Scheme	367,333	-
-	included in Government grants	351,271	116,456
-	included in other trading activities from the subsidiary	16,062	3,194
		═══════	═══════

Auditor’s remuneration includes irrecoverable VAT.

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BIRMINGHAM CITY STUDENTS’ UNION

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

10. TANGIBLE ASSETS

	Fixtures,
	fittings and
Group	equipment
	£
Cost
At 1 August 2020	872,964
Additions	46,994
Disposals	-
	───────
At 31 July 2021	919,958
	───────
Depreciation
At 1 August 2020	702,413
Charge	80,226
Disposals	-
	───────
At 31 July 2021	782,639
	───────
Net book value
At 31 July 2021	137,319
	═══════
At 31 July 2020	170,551
	═══════
	Fixtures,
	fittings and
Charity	equipment
	£
Cost
At 1 August 2020	856,520
Additions	46,994
Disposals	-
	───────
At 31 July 2021	903,514
	───────
Depreciation
At 1 August 2020	692,218
Charge	76,477
Disposals	-
	───────
At 31 July 2021	768,695
	───────
Net book value
At 31 July 2021	134,819
	═══════
At 31 July 2020	164,302
	═══════

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BIRMINGHAM CITY STUDENTS’ UNION

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

11. INVESTMENTS

		Group		Charity
	───────────────		───────────────
	2021	2020	2021	2020
	£	£	£	£
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 (liabilities)/assets of (£16,411) (2020 - net assets of £1,419). During the year, the subsidiary’s turnover was £109,242 (2020 - £157,106) and it made a loss of £16,511 (2020 - £nil) after gift aid payable to the parent charity of £nil (2020 - £24,051).

12. DEBTORS

		Group		Charity
	───────────────		───────────────
	2021	2020	2021	2020
	£	£	£	£
Trade debtors	7,455	48,978	7,382	48,644
Amounts due from subsidiary undertaking	-	-	31,443	39,931
Other debtors	9,907	4,951	9,907	4,951
Prepayments	10,334	50,105	6,882	38,863
Accrued income	8,942	87,564	8,942	87,564
	───────	───────	───────	───────
	36,638	191,598	64,556	219,953
	═══════	═══════	═══════	═══════

13. CREDITORS: Amounts falling due within one year

		Group		Charity
	───────────────		───────────────
	2021	2020	2021	2020
	£	£	£	£
Trade creditors	55,780	105,183	53,828	96,607
Amounts due to parent	-	-	-	-
Social security and other taxes	10,454	12,604	5,043	4,712
Other creditors	151,658	147,369	145,602	146,996
Accruals	89,784	88,598	82,530	83,166
Deferred income	105,829	701	105,829	700
Pension liability	108,309	93,365	108,309	93,365
	───────	───────	───────	───────
	521,814	482,376	501,141	425,546
	═══════	═══════	═══════	═══════

Page 35

BIRMINGHAM CITY STUDENTS’ UNION

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

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 2020	73,944
Additions	24,753
Withdrawals	(37,028)
	───────
Funds held at 31 July 2021	61,669
	═══════

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 ────────────── ─────────────── 2021 2020 2021 2020 £ £ £ £ 1,532,161 1,731,452 1,532,161 1,731,452

Page 36

BIRMINGHAM CITY STUDENTS’ UNION

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

14. RESTRICTED FUNDS

14. RESTRICTED FUNDS
	1 August	Incoming	Resources		31 July
Group and charity	2020	resources	expended	Transfers	2021
	£	£	£	£	£
Restricted capital funds
University grants for refurbishments	101,046	-	(39,933)	-	61,113
	───────	───────	───────	───────	───────
	101,046	-	(39,933)	-	61,113
	═══════	═══════	═══════	═══════	═══════
Restricted revenue funds
Student Experience Projects	8,395	-	(1,490)	-	6,905
Widening Participation	26,542	-	(1,911)	-	24,631
SLTA	1,048	-	-	-	1,048
School Representatives	2,050	19,000	(17,500)	-	3,550
Media Groups	8,837	-	(7,698)	-	1,139
Welcome Desks	3,087	-	-	-	3,087
BCU Active	16,341	-	-	-	16,341
National Student Survey	10,661	-	-	-	10,661
Welcome Week	6,325	-	(6,323)	-	2
Student Engagement	3,000	-	-	-	3,000
Mental Health	2,026	-	-	-	2,026
Data Bank	1,200	-	-	-	1,200
Eagle and Ball restart grant	-	12,000	-	-	12,000
	───────	───────	───────	───────	───────
	89,512	31,000	(34,922)	-	85,590
	═══════	═══════	═══════	═══════	═══════
RESTRICTED FUNDS – PREVIOUS YEAR
	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
	═══════	═══════	═══════	═══════	═══════

Page 37

BIRMINGHAM CITY STUDENTS’ UNION

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

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.

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

SLTA fund is to recognise staff and students who have gone the extra mile to provide services and improvements to student experience.

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

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

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

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.

Student Engagement fund is for improvements in service delivery to encourage engagement amongst students outside of the learning and teaching curriculum.

Mental Health fund is to raise awareness and educate students on the stigma attached to mental health, collaborating with external companies and charities who support students suffering with mental health illness.

Data Bank fund to create new ways of engaging with the student community at BCUSU.

Eagle and Ball restart grant for making improvements to encourage customers back, and to improve services and health and safety post Covid.

Page 38

BIRMINGHAM CITY STUDENTS’ UNION

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

15. UNRESTRICTED FUNDS

	1 August	Incoming	Resources	Transfers	31 July
Group	2020	resources	expended		2021
	£	£	£	£	£
Unrestricted funds
General fund	861,420	2,700,340	(2,465,919)	(93,728)	1,002,113
Pension reserve	(1,824,817)	-	90,619	93,728	(1,640,470)
	───────	───────	───────	───────	───────
	(963,397)	2,700,340	(2,375,300)	-	(638,357)
	═══════	═══════	═══════	═══════	═══════
	1 August	Incoming	Resources	Transfers	31 July
Charity	2020	resources	expended		2021
	£	£	£	£	£
Unrestricted funds
General fund	860,168	2,591,098	(2,338,848)	(93,728)	1,018,690
Pension fund	(1,824,817)	-	90,619	93,728	(1,640,470)
	───────	───────	───────	───────	───────
	(964,649)	2,591,098	(2,248,229)	-	(621,780)
	═══════	═══════	═══════	═══════	═══════

UNRESTRICTED FUNDS – PREVIOUS YEAR

	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)
	═══════	═══════	═══════	═══════	═══════

Page 39

BIRMINGHAM CITY STUDENTS’ UNION

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

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 2021 are represented by:
Tangible fixed assets	61,113	-	76,206	137,319
Net current assets	-	85,590	817,598	903,188
Long term liabilities	-	-	(1,532,161)	(1,532,161)
	───────	───────	───────	──────
Total net assets at 31 July 2021	61,113	85,590	(638,357)	(491,654)
	═══════	═══════	═══════	═══════
Previous 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)
	═══════	═══════	═══════	═══════

Page 40

BIRMINGHAM CITY STUDENTS’ UNION

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

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 2021 amounted to £93,728 (2020 - £89,274) including funding deficit contributions of £93,728 (2020 - £89,274).

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 £39,813 (2020 - £39,628). At the year end, £nil (2019 - £nil) of pension contributions were outstanding and included within other creditors.

Deficit contributions

	Annual
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.

Page 41

BIRMINGHAM CITY STUDENTS’ UNION

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

	PRESENT VALUES OF PROVISION
	2021	2020
	Present value of provision £	£
	Pension liability due in a year 108,309	93,365
	Pension liability due after a year 1,532,161	1,731,452
	Present value of provision 1,640,470	1,824,817
	Reconciliation of opening and closing provisions
		Period Ending
		31 July 2021
		£
	Provision at start of period	1,824,817
	Unwinding of the discount factor (interest expense)	10,902
	Deficit contribution paid	(93,728)
	Remeasurements-impact of any change in assumptions	(101,521)
	Provision at end ofperiod	1,640,470
	Statement of Financial Activities impact
		Period Ending
		31 July 2021
		£
	Interest expense	10,902
	Remeasurements - impact of any change in assumptions	(101,521)
	Remeasurements - amendments to the contribution schedule	-
	Contributions paid in respect of future service	-
	Costs recognised in income and expenditure account	(90,619)
	Assumptions
	31 July 2021	31 July 2020
	% per annum	% per annum
	Rate of interest 1.9%	1.5%

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.

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