Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**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 2024**
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **CONTENTS**
||Page|
|---|---|
|**Legal and administrative details**|1 – 2|
|**Trustees’ report**|3 – 12|
|**Independent auditor’s report**|13 – 15|
|**Statement of financial activities**|16|
|**Balance sheet**|17|
|**Statement of cash flows**|18|
|**Notes to the financial statements**|19 – 34|
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **LEGAL AND ADMINISTRATIVE DETAILS**
## **2024/25 2023/24**
## **Directors and Trustees**
Chair of Trustees Sabbatical Officers
Stephen Harrison-Mirfield Jay Dave * Luke McCombe Luke McCombe Shoukat Mehsud Ashween Kaur Oluwadamilola Iyanda Muhammad Asad Khan Harshal Srivastava Pravjoth Gill Ashween Kaur
Student Trustees External Trustees
Urwa Abdullah Jinal Shah Mohamed Mahmud Egal Mansoor Sadikot Yavanica Sethi Oboseyo Omelime Jinal Shah Hauwanot Oki Einita Suman Stephen Harrison-Mirfield Rupert Newman Einita Suman Rupert Newman
Jay Dave resigned on 30 June 2024.
Luke McCombe resigned on 15 December 2024. Muhammad Asad Khan and Pravjoth Gill resigned on 30 June 2024. Oluwadamilola Iyanda, Shoukat Mehsud and Harshal Srivastava were appointed on 1 July 2024.
Mansoor Sadikot, Oboseyo Omelime and Hauwanot Oki resigned on 30 June 2024. Jinal Shah was appointed 1 October 2023 and resigned on 15 November 2024. Urwa Abdullah, Mohamed Mahmud Egal and Yavanica Sethi were appointed on 1 July 2024.
## **Sabbatical Officers**
President Vice President Student Voice Vice President Academic Experience Vice President Equity & Inclusion Vice President Opportunities & Community
Luke McCombe Jay Dave Ashween Kaur Ashween Kaur Shoukat Mehsud Luke McCombe Oluwadamilola Iyanda Pravjoth Gill Harshal Srivastava Muhammed Asad Khan
## **Senior Management Team**
Chief Executive Head of Central Services Head of Engagement Head of Member Services
Suzanne Ledger Angela Lefevre Stephanie Groves John Moore
Suzanne Stevenson 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** Suzanne Ledger **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 Cubo Birmingham 4th Floor Two Chamberlain Square Birmingham B3 3AX
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Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
The Trustees present their Annual Report together with the Financial Statements of the Charitable Company for the year ended 31 July 2024. The Annual Report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Trustees’ Report and Financial Statements of the Charitable Company comply with the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (‘Charities SORP (FRS102)’).
## **Introduction**
This report outlines the significant achievements of BCUSU for the academic year 2023/24 and includes the work of the Executive Officer team along with key performance indicators for BCUSU.
## **Structure, Governance, and Management**
## **Legal Structure and Charitable Objectives**
Birmingham City Students’ Union (BCUSU) is a private company limited by guarantee, incorporated in the United Kingdom on 28 August 1997, and governed by its Memorandum and Articles of Association. BCUSU is also a registered charity with the Charity Commission.
The charitable objectives of BCUSU are to advance the education of students at Birmingham City University for public benefit. This is achieved by:
- Supporting the educational role of the University.
- Promoting and supporting the general welfare of students.
- Encouraging and facilitating student societies, as well as cultural, sporting, and social activities.
## **Trustee Board Composition and Responsibilities**
The Trustee Board holds overall responsibility for the governance of BCUSU. The Board comprises:
- Up to five Sabbatical Officers (elected annually by the student body).
- Up to four Student Trustees (appointed by the Appointments and Governance Committee).
- Up to three External Trustees (appointed by the Appointments and Governance Committee).
## **Sabbatical Officers**
The Sabbatical Officers - President, Vice President Student Voice, Vice President Academic Experience, Vice President Opportunities & Community, and Vice President Equity & Inclusion are elected annually through a cross-campus secret ballot by BCUSU members. These full-time positions are remunerated in accordance with BCUSU’s governing documents. Each Sabbatical Officer may serve a maximum of two one-year terms.
## **External Trustees**
External Trustees are appointed through a simple majority vote by the Appointments and Governance Committee. Each External Trustee serves an initial two-year term and may be reappointed for one additional two-year term. A total maximum service of eight years is permitted, with a four-year break required before reappointment.
## **Senior Management Team and Delegated Responsibilities**
The day-to-day operations of BCUSU are delegated to a Senior Management Team (SMT), led by the Chief Executive. The Chief Executive’s salary, benchmarked against sector standards in 2012, is incorporated within the organisation's pay structure.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Senior Management Team and Delegated Responsibilities (continued)**
The SMT’s job descriptions are evaluated using a scored matrix under the organisation’s job evaluation policy, which includes determining pay and remuneration. The People & Remuneration Subcommittee oversees cost-of-living increases, aligned with those awarded by the charity’s principal funder.
## **Committee Framework**
The Trustee Board meets quarterly to oversee governance, strategy, and performance. To support the Board’s work, BCUSU has a robust subcommittee structure, with each subcommittee meeting quarterly:
1. Audit & Risk Subcommittee: `o` Responsible for financial oversight, risk management, and compliance.
2. People & Remuneration Subcommittee:
- Oversees pay, remuneration policies, and HR-related matters.
3. Strategic Development & Communication Subcommittee:
- Focuses on long-term strategy and ensuring effective communication across BCUSU.
4. Appointments & Governance Subcommittee: `o` Manages trustee appointments, governance framework, and trustee development.
Additionally, the **Executive Committee** meets weekly, comprising the Sabbatical Officers and the Senior Management Team. This committee reviews the charity’s performance and administration, receives reports from individual officers and the Chief Executive, and addresses policy issues.
## **Staff**
BCUSU employs a team of non-student, full-time staff to provide continuity in managing its activities. All staff members are accountable to the Chief Executive.
## **Trustee Induction and Training**
New Trustees receive an induction that includes an overview of BCUSU’s operations and their legal and administrative responsibilities. Ongoing training is provided based on identified skills gaps and requirements.
## **Risk Management**
The Trustee Board regularly reviews BCUSU’s major strategic, business, and operational risks. A strategic risk register, updated quarterly, is submitted to the Audit & Risk Subcommittee. Each risk is assigned to an individual for mitigation actions.
## **Key Risks and Mitigations**
At the start of the academic year, two significant risks were identified:
1. Space Allocation Across University Campuses:
- Limited BCUSU-dedicated space reduced student engagement opportunities.
2. Level of Block Grant Funding:
- The block grant was lower than average on a per-student basis, restricting the delivery of expected services.
BCUSU’s Senior Leadership Team worked closely with Birmingham City University’s new leadership to renegotiate an increased block grant. This uplift ensures BCUSU can maintain “business-as-usual” operations, with further negotiations planned to align with strategic updates from both organisations in 2025.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **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 £1,414,000 (2023 - £1,264,000). 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 £704,500 (2023 – £680,109).
Birmingham City Students’ Union gross income from all sources this year totalled £3,701,170 (2023 - £3,485,960). Total expenditure of £3,734,021 (2023 - £3,421,511) on the wide-ranging student benefits we provide, as well as on the modest fundraising and other revenue-generating activities we undertake, to derive net expenditure before gains for the year of £32,851 (2023 – net gain £64,450).
The result for the year includes a net surplus on restricted capital and revenue funds of £55,375 (2023 – deficit of £1,027). On unrestricted funds, the deficit for the year totalled £88,226 (2023 – surplus of £65,477).
We have reviewed Birmingham City Students’ Union reserves requirements. Free reserves for the charity (excluding tangible fixed assets, the pension liability and restricted funds) stood at £1,021,971 at the yearend (2023 - £926,683). This is greater than the Trustees’ target reserve level of three months’ expenditure which is approximately £933,505.
The subsidiary company, Birmingham City Enterprises Limited, has net liabilities of £13,388 (2023 - £13,388) at 31 July 2024. The subsidiary company generated operating profits / (losses) of £nil (2023 – operating profits / (losses) of £nil) in the year ended 31 July 2024, with gift aid of £nil (2023 - £nil) having been paid to the Union. During the year ended 31 July 2023 the entity ceased trading and became dormant.
## **Objectives and Activities**
## **Charitable Objectives**
Birmingham City Students’ Union (BCUSU) aims to advance the education of students at Birmingham City University for public benefit. This is achieved through activities that:
1. Support the educational role of the university.
2. Promote the general welfare of students.
3. Encourage and facilitate student societies, as well as cultural, sporting, and social activities.
In line with these objectives, BCUSU undertook a range of initiatives in 2023/24 to support students academically, socially, and personally, ensuring alignment with its charitable purpose.
## **Key Achievements in 2023/24**
1. Promoting Student Representation and Advocacy
- Record Voter Turnout: BCUSU achieved a record-breaking 22% voter turnout in its officer elections, representing a 32% increase compared to previous years and placing BCUSU in the top 10 of student unions for engagement across the sector.
- Strengthening Academic Representation:
- 523 Course Representatives were in place, covering every year group in each college.
- `o` A new Joint Academic Representation Policy was developed in partnership with the university to enhance the student voice structure for 2024/25.
- A dedicated Student Rep Hub was introduced to streamline communication and reporting for academic representation.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Key Achievements in 2023/24 (continued)**
2. Enhancing Student Welfare and Support
- BCUSU Advice Team:
- Supported 1,351 students with academic and personal issues.
- Maintained a 95% satisfaction rate, with students recommending the service.
- Collaborated with the university to improve processes for extenuating circumstances and increase case officer availability.
- Mental Health and Wellbeing Initiatives:
- Organised mental health awareness campaigns and events.
- Advocated for increased access to wellbeing services through campus-wide efforts.
3. Enriching the Student Experience
- Societies and Engagement:
- Increased membership to 96 active societies, engaging 2,878 students (9% of the student population).
- Facilitated student-led events and activities, despite challenges with campus space.
- Community and Social Impact:
- Organised community engagement events, including canal clean-up initiatives and financial literacy sessions.
- Advocated for inclusive infrastructure, including gender-neutral toilets and multi-faith spaces.
4. Supporting Diversity and Inclusion
- BCUSU’s Equity and Inclusion Strategy focused on improving campus diversity and removing barriers to participation:
- Hosted events for awareness months, including cultural and heritage celebrations.
- `o` Advanced gender equity and increased visibility of underrepresented groups through targeted campaigns.
5. Building Strategic Partnerships
- Collaborated with Birmingham City University to address core student issues, including improving safety measures in Birmingham and enhancing campus facilities.
- Worked with external organisations to offer additional spaces for society activities and foster stronger community ties.
## **Alignment with Public Benefit**
BCUSU’s activities in 2023/24 directly supported its charitable objectives by:
- Empowering students through robust representation structures, advocacy, and enhanced academic support.
- Providing welfare and support services to promote students’ well-being.
- Encouraging active participation in societies and community initiatives, enriching their university experience and personal development.
These initiatives were carried out with due consideration of the Charity Commission’s guidance on public benefit, ensuring BCUSU remained focused on meeting the needs of all students at Birmingham City University.
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**BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Achievements and Performance**
## **Overview**
The strategic objectives of BCUSU for 2023/24 focused on enhancing student engagement, representation, welfare, and financial sustainability. These objectives were measured against eight Key Performance Indicators (KPIs) that monitored progress and impact throughout the year.
## **Key Achievements Against Strategic KPIs**
## 1. Student Communications
- Performance: Achieved a 24.62% average email open rate and an 18.44% click-through rate.
- Analysis: While the open rate was slightly below target (25%), the click-through rate significantly exceeded the UK charity sector average of 3.78%. This demonstrates the relevance of BCUSU’s communications to those who engage with them.
- Future Focus: Addressing marketing team capacity issues and enhancing communication expertise to sustain and improve engagement.
## 2. Student Advice Service
- Performance: Supported 63% of students within 2 working days, with an impressive 95% satisfaction rate.
- Analysis: Challenges with staffing and recruitment across the sector affected response times, but satisfaction levels remained consistently high. On average, students received advice within 2.5 days.
- Future Focus: Continue addressing capacity constraints and adopt lessons from this year to enhance service delivery.
## 3. Society Engagement
- Performance: 9.6% of BCU students joined a society, with 82% rating their experience as good or excellent.
- Analysis: The number of registered members (3,027 students) was notable against sector benchmarks. However, resource constraints limited further growth and quality enhancements.
- Future Focus: Strengthen support for societies and balance growth with quality engagement.
## 4. School Representative Engagement
- Performance: 30 School Representatives were recruited, with 100% trained and actively engaged.
- Analysis: Recruitment fell short of the 37-representative target due to structural challenges and capacity issues. However, a new Joint Academic Representation Policy was co-authored and approved, ready for 2024/25.
- Future Focus: Implement the new policy to enhance representation and address structural barriers.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Key Achievements Against Strategic KPIs (continued)**
5. Election Engagement
- Performance: 32 candidates ran for officer positions, achieving a 20.26% voter turnout, the highest in BCUSU’s history.
- Analysis: This result placed BCUSU well above the sector average of 13.14% and among the topperforming unions. However, issues with candidate behaviour require attention.
- Future Focus: Review and refine election processes to maintain high engagement and address challenges.
## 6. Staff Satisfaction
- Performance: Achieved a 92% staff engagement rate, with 91% agreeing that BCUSU is a good place to work.
- Analysis: These exceptional results reflect a positive workplace culture despite challenges with staffing and structural changes.
- Future Focus: Focus on pay, benefits, and learning opportunities, as highlighted in the staff survey.
## 7. Financial Sustainability
- Performance: Achieved a surplus of £128k and maintained £1,364k in cash reserves.
- Analysis: This outcome marks a significant turnaround from an approved deficit budget of (£108k) and reflects careful financial management. However, reliance on staff vacancies and short-term gains highlights the need for sustainable strategies.
- Future Focus: Implement the refreshed financial strategy with sustainable income streams and increased block grant funding.
## 8. National Student Survey (NSS) – Question 25
- Performance: 71.1% positivity rating, with 20% of respondents selecting "does not apply."
- Analysis: While the score remains competitive, BCUSU is 3.3% behind the sector benchmark of 74.4%. The percentage of "does not apply" responses indicates a lack of awareness among some students.
- Future Focus: The BCUSU Strategy 2024+ aims to address visibility issues and increase relevance over the next four years.
## **Conclusion**
BCUSU made significant progress against its strategic KPIs in 2023/24, achieving several record-breaking outcomes, including election turnout and staff satisfaction. Challenges in areas such as service capacity and structural engagement have been acknowledged, with plans in place to address these through the BCUSU Strategy 2024+.
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**BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Future planning**
## **BCUSU Strategy 2024+**
BCUSU has developed a new strategic vision, the BCUSU Strategy 2024+, which aims to meet the evolving needs and expectations of Birmingham City University (BCU) students. This strategy is aligned with BCU’s broader 2030 Strategy to ensure a shared direction while maintaining distinct and complementary roles for the university and the students’ union.
## **Vision and Mission**
- Vision: To have a positive impact on all BCU students, enabling them to achieve their full potential.
- Mission: To ensure all students have access to the support and opportunities that empower them to successfully participate in and influence the world around them.
## **Strategic Priorities**
The BCUSU Strategy 2024+ is built around five core priorities, using the acronym CREST:
1. Confidence & Wellbeing: Supporting students’ needs, fostering personal and social development, and preparing them for future success.
2. Representative Student Voice: Being the legitimate and independent voice for all BCU students.
3. Estates & Facilities: Developing vibrant, safe, and inclusive campus spaces that meet students’ needs and expectations.
4. Social Experience & Belonging: Building communities and networks where students can thrive and feel a sense of belonging.
5. Teaching & Learning: Empowering students to take ownership of their education and leverage the university environment to achieve their goals.
## **Core Enablers**
The strategy is supported by five operational enablers, ensuring BCUSU’s capacity to deliver its objectives, using the acronym EPICC:
- Engagement & Communication: Effectively reaching and engaging students to maintain visibility and relevance.
- Partnerships: Strengthening collaborations with BCU, local organisations, and the wider student union sector to enhance opportunities for students.
- IT & Digitisation: Leveraging digital platforms to improve communication, engagement, and operational efficiency.
- Culture: Fostering a high-performing organisation with dedicated staff, student staff, and volunteers.
- Commercial & Finance: Ensuring sustainable funding and diversified income streams to support the strategy’s goals.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Measuring Success**
BCUSU will monitor the strategy’s impact using key success metrics, including two organisational KPIs:
- Achieving an 80% positivity rating in Question 25 of the National Student Survey.
- Ranking within the top 25 Students’ Unions in the WhatUni Student Choice Awards.
The BCUSU Strategy 2024+ will be published following the completion of BCU’s Strategy 2023 and launched publicly later in the year, alongside BCU’s 2030 implementation plans.
## **Staff Restructure**
In the first quarter of the 2024/25 academic year, BCUSU has undertaken a staff restructure to:
- Realise operational efficiencies and redeploy resources to align with the delivery of the BCUSU Strategy 2024+.
- Create more student employment opportunities, enabling greater student engagement through flexible, paid roles.
This restructure will ensure the organisation is positioned to deliver on its strategic priorities while maintaining financial sustainability and organisational excellence.
## **Governance Refresh**
As part of a comprehensive review to enhance governance structures, BCUSU conducted a Governance Review in 2023/24 in collaboration with Charity Link. This independent review, aligned with the principles of the Good Charity Governance Code, identified key areas for improvement and proposed significant changes to modernise BCUSU’s governance framework. These changes were approved by the Board of Trustees in July 2024 and will be implemented in the 2024/25 academic year.
## **Key Changes to Governance Structure**
1. Restructuring Committees:
- Appointments & Governance Committee: Responsibilities will be transferred as follows:
- Oversight of trustee recruitment processes will move to the People & Remuneration Committee.
- Final approval for trustee appointments and governance reviews will shift to the Board of Trustees.
- This committee will be formally removed from the governance structure.
- Communications & Strategic Development Committee: Responsibilities will be reallocated as follows:
- Operational oversight (e.g., communication strategy implementation) will remain within staff roles, with reporting provided directly to the Board of Trustees.
- Responsibility for fundraising updates and strategic reviews will transfer to the Audit & Risk Committee and the Board of Trustees, respectively.
- This committee will also be formally removed from the governance structure.
2. Streamlining the Governance Framework:
- The removal of these two committees will simplify the governance structure, eliminating duplications and improving the efficiency of decision-making processes.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
**Key Changes to Governance Structure (continued)**
- The new structure will focus on three core committees under the Board of Trustees:
- Audit & Risk Committee
- People & Remuneration Committee
- Executive Committee
3. Enhanced Trustee Roles and Terms:
- The term of appointment for External Trustees has been extended to a three-year term, aligning with sector best practices.
- A new Chair of the Board (Stephen Harrison-Mirfield) and Deputy Chair (BCUSU President) will be appointed, effective following formal ratification from BCU Board of Governors in 2024/25, to provide strengthened leadership and continuity.
4. Improved Meeting Administration:
- Frequency of committee meetings has been reduced where appropriate, with a focus on ensuring agenda items are meaningful and contribute directly to Board discussions. For example:
- The Appointments & Governance Committee will no longer meet, as its functions have been redistributed.
- The Communications & Strategic Development Committee will also cease, reducing redundancy.
5. Strengthened Training and Development:
- A formalised trustee induction process and ongoing training programme will be introduced to ensure all trustees are well-equipped to fulfil their responsibilities effectively.
## **Future Steps**
To support the transition:
- Updates will be made to BCUSU’s **Memorandum and Articles of Association** and **Byelaws** to reflect the new governance structure, subject to ratification at an Extraordinary Student Members’ Meeting.
- Terms of reference for the remaining committees will be revised and agreed upon to align with the new governance framework.
- A review cycle will be established to ensure continuous improvement and adherence to governance best practices.
These changes mark a significant step forward in ensuring BCUSU’s governance structure remains fit for purpose, responsive to evolving needs, and capable of delivering on its strategic priorities.
## **Timeline**
The implementation of these governance changes will begin in the 2024/25 academic year, with a phased approach to ensure smooth adoption and alignment with ongoing strategic objectives.
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**BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Conclusion**
The planned introduction of the **BCUSU Strategy 2024+, associated Staff Restructure** and the **Governance Refresh** represents a transformative period for BCUSU. These initiatives are designed to enhance its capacity to meet the evolving needs of students, ensure sustainable growth, and uphold its commitment to effective and inclusive governance.
## **Indemnity provision**
A qualifying third-party indemnity provision was in force during the year to benefit one or more trustees.
## **Trustees’ Responsibilities Statement**
The Trustees of Birmingham City Students’ Union (BCUSU), who are also Directors of BCUSU for the purposes of company law, are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and 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; and
- 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.
## **Legal Responsibilities**
In accordance with the **Charities Act 2011** and the **Companies Act 2006,** the Trustees must ensure that:
1. Financial statements are prepared that give a true and fair view of the state of the charity’s affairs at the end of the financial year and of its income and expenditure during that period.
2. The financial statements comply with UK Generally Accepted Accounting Practice (UK GAAP), including **FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland** .
3. Proper accounting records are maintained that disclose with reasonable accuracy the financial position of BCUSU and enable compliance with statutory requirements.
4. Assets are safeguarded and appropriate measures are taken to prevent and detect fraud and other irregularities.
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## **BIRMINGHAM CITY STUDENTS’ UNION**
## **TRUSTEES’ REPORT**
## **Governance and Oversight**
During the reporting period, the Trustees have:
- Regularly reviewed and assessed BCUSU’s strategic objectives, risks, and operational performance.
- Approved the new **BCUSU Strategy 2024+,** ensuring alignment with the charity’s objectives and student needs.
- Implemented recommendations from the **Governance Review** , including restructuring committees to improve efficiency and accountability.
- Ensured financial sustainability through close oversight of budgets, reserves, and funding strategies.
## **Compliance with Public Benefit Requirements**
The Trustees confirm that they have complied with the guidance issued by the Charity Commission on public benefit. They have ensured that all activities undertaken during the year align with BCUSU’s charitable objectives and are accessible to all students at Birmingham City University.
## **Going Concern**
The Trustees have reviewed the charity’s financial position and funding arrangements and have a reasonable expectation that BCUSU will continue to operate as a going concern for the foreseeable future. This is supported by strong reserves, sustainable funding streams, and robust financial management practices.
## **Approval**
This Trustees’ Annual Report, 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 was approved by the Board of Trustees on 28 March 2025 and signed on its behalf by:
**Stephen Harrison-Mirfield**
Chair of the Board of Trustees
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## **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 Charitable Company”) for the year ended 31 July 2024 which comprise the statement of financial activities, the balance sheet, the statement of cashflows 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 Charitable Company’s affairs as at 31 July 2024 and of its 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 and The Charities SORP.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable Company in accordance with the ethical requirements 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 Charitable Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the 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 Trustees’ Report, other than the financial statements and our auditor’s report thereon. The Trustees 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 14
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**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 Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ Report 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 Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Trustees’ Report.
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 sufficient accounting records have not been kept by the Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the Charitable Company’s 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; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption from the requirement to prepare a strategic report.
## **Responsibilities of Trustees**
As explained more fully in the Statement of Trustees' responsibilities, the Trustees (who are also the Directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic alternative but to do so.
## **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.
Page 15
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF BIRMINGHAM CITY STUDENTS’ UNION**
Our assessment focussed on key laws and regulations the 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.
We are not responsible for preventing irregularities, including fraud. Our approach to detecting irregularities, including fraud, included but was not limited to, the following:
- obtaining an understanding of the legal and regulatory framework applicable to the Charitable Company and how the Charitable Company are complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence;
- obtaining an understanding of the Charitable Company’s control environment and how the Charitable Company have applied relevant control procedures, through discussions management and by performing walkthrough testing over key areas;
- obtaining an understanding of the 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 of fraud 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.
Nichola Venables ACA (Senior Statutory Auditor) for and on behalf of:
## **Cooper Parry Group Limited**
Statutory Auditor Cubo Birmingham 4[th] Floor, Two Chamberlain Square Birmingham B3 3AX
29 April 2025
Page 16
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) FOR THE YEAR ENDED 31 JULY 2024**
|||**Restricted**|**Restricted**|||2023|
|---|---|---|---|---|---|---|
|||**capital**|**revenue**|
**Unrestricted**|**2024**|Total|
|||**funds**|**funds**|
**funds**|**Total**|Restated|
||**Note**|**£**|**£**|**£**|**£**|£|
|**Income from:**|||||||
|Donations and legacies|2|**-**|**128,895**|**2,118,500**|**2,247,395**|2,220,099|
|Charitable activities|3|**-**|**7,150**|**1,404,572**|**1,411,722**|1,217,534|
|Other trading activities|4|**-**|**-**|**505**|**505**|6,139|
|Investment income||**-**|**-**|**29,945**|**29,945**|6,208|
|Other income||**-**|**-**|**11,603**|**11,603**|35,980|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Total income**||**-**|**136,045**|**3,565,125**|**3,701,170**|3,485,960|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Expenditure on:**|||||||
|Raising funds|5|**-**|**-**|**159,336**|**159,336**|160,980|
|Charitable activities|6|**12,218**|**68,452**|**3,333,593**|**3,414,263**|3,260,530|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Total expenditure**||**12,218**|**68,452**|**3,492,929**|**3,573,599**|3,421,510|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Net income / (expenditure)**|9|**(12,218)**|**67,593**|**72,196**|**127,571**|64,450|
|**Transfers between funds**|14 / 15|**-**|**-**|**-**|**-**|-|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Other recognised gains / (losses)**|||||||
|Actuarial gains / (losses) on defined|||||||
|benefit pension schemes|17|**-**|**-**|**(160,422)**|**(160,422)**|140,355|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Net movement in funds**||**(12,218)**|**67,593**|**(88,226)**|**(32,851)**|204,805|
|Fund balances brought forward|16|**32,825**|**122,821**|**(390,851)**|**(235,205)**|(440,010)|
|||**───────**|**───────**|**───────**|**───────**|───────|
|**Fund balances carried forward**|16|**20,607**|**190,414**|**(479,077)**|**(268,056)**|(235,205)|
|||**═══════**|**═══════**|**═══════**|**═══════**|═══════|
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 20 to 35 form part of these financial statements.
Page 17
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION** Registered Company Number 03426445 **CHARITY BALANCE SHEET AS AT 31 JULY 2024**
||||**2024**||2023|
|---|---|---|---|---|---|
||||||Restated|
||**Note**|**£**|**£**|£|£|
|**Fixed assets**||||||
|Tangible assets|10||**65,840**||107,300|
|Investments|11|||||
||||**100**||100|
||||**───────**||───────|
||||**65,940**||107,400|
|**Current assets**||||||
|Stocks||**94,894**||73,750||
|Debtors|12|**108,591**||100,572||
|Cash at bank and in hand||**1,364,022**||1,227,325||
|||**───────**||───────||
|||**1,567,507**||1,401,647||
|**Creditors:**amounts falling due within one||||||
|year|13|**(484,279)**||(481,300)||
|||**───────**||───────||
|**Net current assets**|||**1,083,228**||920,347|
||||**───────**||───────|
|**Total assets less current liabilities**|||**1,149,168**||1,027,747|
|Defined benefit pension scheme liability|13a||**(1,417,224)**||(1,262,952)|
||||**───────**||───────|
|**Net liabilities**|||**(268,056)**||(235,205)|
||||**═══════**||═══════|
|**The funds of the charity**||||||
|Restricted capital funds|14||**20,607**||32,825|
|Restricted revenue funds|14||**190,414**||122,821|
|Unrestricted funds||||||
|General|15|**1,067,304**||995,108||
|Pension Reserve|15|**(1,546,381)**||(1,385,959)||
|||**───────**|**(479,077)**|───────|(390,851)|
||||**───────**||───────|
||||**(268,056)**||(235,205)|
||||**═══════**||**═══════**|
The financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 28 March 2025
## **Stephen Harrison-Mirfield Chair of Trustees**
The notes on pages 20 to 35 form part of these financial statements.
Page 18
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION STATEMENT OF CASH FLOWS AS AT 31 JULY 2024**
|||||2023|
|---|---|---|---|---|
||||**2024**|Restated|
|||**Note**|
**£**|£|
|**Cash flow from operating activities:**|||||
|Net cash (used) / provided by operating activities|Below||
**146,503**|134,091|
|**Cash flows from investing activities:**|||||
|Purchase of property, plant and equipment||**10**|**(9,806)**|(24,867)|
||||**───────**|───────|
|**Net cash used in investing activities**|||**(9,806)**|(24,867)|
|**Change in cash and cash equivalents in the reporting**|||||
|**period**|||**136,697**|109,224|
|Cash and cash equivalents at the beginning of the reporting|||||
|period|||**1,227,325**|1,118,101|
||||**───────**|───────|
|**Cash and cash equivalents at the end of the reporting**|||||
|**period**|||**1,364,022**|1,227,325|
||||**═══════**|═══════|
|**Reconciliation of income for the reporting period**|**(as per**||||
|**the statement of financial activities)**|||**127,571**|64,450|
|**Adjustments for:**|||||
|Depreciation||**10**|
**51,266**|94,464|
|(Increase) / decrease in stocks|||**(21,144)**|(1,062)|
|(Increase) / decrease in debtors|||**(8,019)**|36,784|
|Increase / (decrease) in creditors|||**157,251**|(200,900)|
|Pension scheme movements|||**(160,422)**|140,355|
||||**───────**|───────|
|**Net cash (used)/ provided by operating activities**|||**146,503**|134,091|
||||**═══════**|═══════|
|**Analysis of cash and cash equivalents**|||||
|Cash at bank and in hand|||**1,364,022**|1,227,325|
||||**═══════**|═══════|
|**Analysis of changes in cash**|||||
||**At 1**||||
||**August**||**Other**|**At 31 July**|
||**2023**|
**Cashflows**
**changes**||**2024**|
||**£**||**£**
**£**|**£**|
|Cash at bank and in hand|1,227,325||136,697
-|**1,364,022**|
||**───────**|───────
───────||**───────**|
||1,227,325||136,697
-|**1,364,022**|
||**═══════**|
**═══════**
**═══════**||═══════|
Page 19
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **1. ACCOUNTING POLICIES**
The principal accounting policies adopted, judgments 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 financial statements 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 Going concern**
The financial statements 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 financial statements. 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 financial statements.
## **c**
## **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 charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated market value to the charity 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.
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 charity operates bar, entertainment, retail, and catering facilities for the benefit of its members. 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 yearend deferred.
Other income is credited to the statement of financial activities in the year in which it is received.
Page 20
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **1. ACCOUNTING POLICIES (continued)**
## **d 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.
## **e 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.
## **f 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.
Page 21
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **1. ACCOUNTING POLICIES (continued)**
## **g 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.
## **h Stocks**
Stocks are valued at the lower of cost and net realisable value. All stocks are goods for resale.
## **i Fund accounting**
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.
## **j 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 the value of the pension liability is calculated by discounting future cashflows, being contributions, adjusted for annual increases.
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.
## **k 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.
## **l Critical accounting estimates and areas of judgment**
The Union makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the SUSS pension liability under the recovery plan instigated by the Trustees of the pension scheme is based on a number of factors using a variety of assumptions including estimates of future increases in deficit contributions payable and the discount rate. Any changes in these assumptions will impact the carrying value of the pension liability.
Page 22
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **2. DONATIONS AND LEGACIES**
||**Restricted**|
**Unrestricted**|||
|---|---|---|---|---|
||**funds**|
**funds**|**2024**|2023|
||**£**|
**£**|**£**|£|
|University block grant|**-**|
**1,414,000**|**1,414,000**|1,264,000|
|Donation of serviced accommodation|**-**|
**704,500**|**704,500**|680,019|
|Other University grants|**85,000**|
**-**|**85,000**|150,000|
|Project funding|**43,895**|
**-**|**43,895**|126,080|
||**───────**|
**───────**|**───────**|───────|
||**128,895**|
**2,118,500**|**2,247,395**|2,220,099|
||**═══════**|
**═══════**|**═══════**|═══════|
The donation of serviced accommodation is the estimated value of the services provided by the University free of charge to the charity. These include use of premises and related services.
Total income from donations and legacies was £2,247,395 (2023 - £2,220,099) of which £2,118,500 (2023 - £2,094,019) was unrestricted, £nil (2023 - £nil) was restricted capital funds and £128,895 (2023 - £126,080) was restricted revenue funds.
## **3. INCOME FROM CHARITABLE ACTIVITIES**
||**Restricted**|
**Unrestricted**|||
|---|---|---|---|---|
||**funds**|
**funds**|**2024**|2023|
||**£**|
**£**|**£**|£|
|Marketing and communications|**-**|
**96,981**|**96,981**|95,006|
|Development and opportunities|**-**|
**-**|**-**|2,728|
|Engagement general|**7,150**|
**1,361**|**8,511**|7,553|
|Bars and catering|**-**|
**429,687**|**429,687**|378,335|
|Shops|**-**|
**861,543**|**861,543**|718,912|
|Entertainments|**-**|
**15,000**|**15,000**|15,000|
||**───────**|
**───────**|**───────**|**───────**|
||**7,150**|
**1,404,572**|**1,411,722**|1,217,534|
||**═══════**|
**═══════**|**═══════**|═══════|
Total income from charitable activities was £1,411,722 (2023 - £1,217,534) of which £1,404,572 (2023 - £1,216,534) was unrestricted and £7,150 (2023 - £1,000) was restricted revenue funds.
## **4. INCOME FROM OTHER TRADING ACTIVITIES**
||**Restricted**|
**Unrestricted**|||
|---|---|---|---|---|
||**funds**|
**funds**|**2024**|2023|
||**£**|
**£**|**£**|£|
|Commercial marketing and sponsorship|**-**|
**505**|**505**|6,139|
||**───────**|
**───────**|**───────**|───────|
||**-**|
**505**|**505**|6,139|
||**═══════**|
**═══════**|**═══════**|═══════|
All income from other trading activities is unrestricted in both the current and prior years.
Page 23
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **5. EXPENDITURE ON RAISING FUNDS**
||**Stock**|**Staff**|**Other**|**Total**|Total|
|---|---|---|---|---|---|
||**purchases**|**costs**|**costs**|**2024**|2023|
||**£**|**£**|**£**|**£**|£|
|Fundraising trading:||||||
|- Marketing and sponsorship|**-**|**83,632**|**75,704**|**159,336**|160,980|
||**───────**|**───────**|**───────**|**───────**|───────|
||**-**|**83,632**|**75,704**|**159,336**|160,980|
**─────── ─────── ─────── ───────** ───────
All expenditure on raising funds is unrestricted in both the current and prior years.
## **6. EXPENDITURE ON CHARITABLE ACTIVITIES**
||||||Total|
|---|---|---|---|---|---|
||**Stock**|**Staff**||**Total**|2023|
||**purchases**|**costs**|**Other costs**|**2024**|Restated|
||**£**|**£**|**£**|**£**|£|
|Advice and information|**-**|**181,362**|**90,176**|**271,538**|258,514|
|Marketing and communications|**-**|**83,632**|**113,554**|**197,186**|195,732|
|Student Voice|**-**|**166,586**|**210,262**|**376,848**|409,553|
|Development and opportunities|**-**|**179,057**|**92,349**|**271,406**|206,947|
|The Point|**-**|**79,818**|**32,392**|**112,210**|109,611|
|Engagement general|**-**|**116,290**|**56,408**|**172,698**|216,547|
|Member Services general|**-**|**73,722**|**32,712**|**106,434**|100,613|
|Bars and catering|**155,980**|**284,848**|**280,046**|**720,874**|708,453|
|Shops|**596,194**|**287,098**|**301,152**|**1,184,444**|1,053,856|
|Entertainments|**-**|**161**|**464**|**625**|703|
||**───────**|**───────**|**───────**|**───────**|───────|
||**752,174**|**1,452,574**|**1,209,515**|**3,414,263**|3,260,530|
||**═══════**|**═══════**|**═══════**|**═══════**|═══════|
Total costs of charitable activities were £3,414,263 (2023 - £3,260,532) of which £3,333,593 (2023 - £3,132,423) was unrestricted, £12,218 (2023 - £44,581) was restricted capital funds and £68,452 (2023 – £83,526) was restricted revenue funds.
Staff costs and other costs include support costs analysed in Note 7.
Page 24
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **7. SUPPORT COSTS**
|**7. SUPPORT COSTS**||||||||
|---|---|---|---|---|---|---|---|
|**Charitable activities:**||**Support**
**staff**
**£**|**Serviced**
**accomm**
**odation**
**£**|**Other**
**support**
**costs**
**£**|**Governa**
**nce**
**Costs**
**£**|**2024**
**£**|2023
Restated
£|
|Advice and information|9%|**26,496**|**60,467**|**21,366**|**1,502**|**109,831**|102,659|
|Marketing and||||||||
|communications|12%|**36,320**|**82,889**|**28,488**|**2,058**|**149,755**|140,726|
|Student Voice|14%|**44,062**|**100,558**|**33,236**|**2,498**|**180,354**|170,725|
|Development and||||||||
|opportunities|8%|**24,063**|**54,916**|**18,992**|**1,364**|**99,335**|93,234|
|Welcome desks|3%|**9,817**|**22,404**|**7,122**|**557**|**39,900**|38,036|
|Engagement general|4%|**11,072**|**25,268**|**9,496**|**628**|**46,464**|42,900|
|Member Services general|3%|**10,490**|**23,940**|**7,122**|**595**|**42,147**|40,645|
|Bars and catering|21%|**64,089**|**146,263**|**49,854**|**3,633**|**263,839**|248,321|
|Shops|26%|**82,126**|**187,427**|**61,639**|**4,656**|**335,848**|318,208|
|Entertainments|0%|**161**|**368**|**86**|**9**|**624**|625|
|||**──────**|**──────**|**─────**|**─────**|**──────**|──────|
|**Total**||**308,696**|**704,500**|**237,401**|**17,500**|**1,268,097**|1,196,079|
|||**══════**|**══════**|**══════**|**═════**|══════|**═════**|
Included in other support costs are:
||**2024**|2023|
|---|---|---|
|||Restated|
||**£**|£|
|Administration costs|**14,139**|10,472|
|Professional fees|**2,279**|1,754|
|Staff support and HR|**21,090**|43,631|
|Union general equipment, IT and premises|**736**|996|
|Fixed contracts|**25,858**|17,320|
|Depreciation|**6,463**|8,276|
|Bank charges|**1,517**|1,850|
|Pool cars (running costs)|**780**|1,183|
|Union general insurance|**41,015**|39,024|
|Pension liability interest|**123,524**|73,450|
||**──────**|**─────**|
||**237,401**|197,956|
||**═══════**|═══════|
|Included in governance costs are:|||
||**2024**|2023|
||**£**|£|
|Audit and accountancy fees|**17,500**|22,694|
|Strategic review|**-**|5,000|
||**───────**|**───────**|
||**17,500**|27,694|
||**═══════**|**═══════**|
Page 25
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **8a. STAFF COSTS**
||**2024**
2023
**£**
£
**1,391,786**
1,326,836
**110,755**
108,493
**33,664**
36,479|
|---|---|
|||
|Wages and salaries||
|Social security costs||
|Pension costs||
|||
||**1,536,205**
1,471,808|
Included in the above were redundancy payments totalling £Nil (2023: £nil) and one settlement payment of £4,280 (2023: £nil).
|Aggregate employee benefits * of key management personnel|**2024**
2023
**£**
£|
|---|---|
||**254,572**
335,665|
|||
|||
* Including salaries, employer pension contributions and employer national insurance contributions.
There was one employee (2023: nil) whose annual emoluments (excluding employer pension contributions) were between £70,000 and £80,000.
The average number of employees for the year was:
||**2024**|2023|
|---|---|---|
||**No.**|No.|
|Permanent staff|**43**|44|
|Casual staff|**49**|30|
||**───────**|───────|
||**92**|74|
||**═══════**|═══════|
## **8b. TRUSTEE REMUNERATION**
In accordance with the Birmingham City Students’ Union Memorandum and Articles of Association, salaries totalling £108,029 (2023 – £106,653) 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, £61,060 (2023 - £99,846) was split between the two (2023 – five) Sabbatical Officers that held office until the end of June 2024, £41,455 between the two (2023: nil) Sabbatical Officers that held office for the full year and £5,514 (2023 - £6,807) was split between the three (2023 – four) Sabbatical Officers that held office from July 2024. During the year pension contributions of £nil (2023 - £569) were made on behalf of no (2023 – two) Sabbatical Officers.
No Trustees (2023 - 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.
Page 26
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **9. NET INCOME**
The net income is stated after charging / (crediting):
|he net income is stated after charging / (crediting):|||
|---|---|---|
||**2024**|2023|
||**£**|£|
|Depreciation|**51,266**|94,464|
|Auditor’s remuneration – statutory audit|**15,150**|14,000|
|Auditor’s remuneration – non-audit services|**3,450**|8,694|
||**═══════**|**═══════**|
|Auditor’s remuneration includes irrecoverable VAT.|||
## **10. TANGIBLE FIXED ASSETS**
||**Fixtures,**|
|---|---|
||**fittings and**|
||**equipment**|
||**£**|
|**Cost**||
|At 1 August 2023|949,892|
|Additions|9,806|
|Disposals|-|
||───────|
|At 31 July 2024|959,698|
||───────|
|**Depreciation**||
|At 1 August 2024|842,592|
|Charge|51,266|
|Disposals|-|
||───────|
|At 31 July 2024|893,858|
||───────|
|**Net book value**||
|At 31 July 2024|65,840|
||═══════|
|At 31 July 2023|107,300|
||**═══════**|
## **11. INVESTMENTS**
||**2024**|2023|
|---|---|---|
||**£**|£|
|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 of £13,388 (2023 – net liabilities of £13,388). During the year, the subsidiary’s turnover was £nil (2023 - £nil) and it made a profit of £nil (2023 – profit of £nil) after gift aid payable to the parent charity of £nil (2023 - £nil). During the prior year the entity ceased trading and became dormant.
Page 27
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **12. DEBTORS**
||**2024**|2023|
|---|---|---|
||**£**|£|
|Trade debtors|**16,561**|23,588|
|Amounts due from subsidiary undertaking|**13,381**|14,439|
|Other debtors|**3,399**|7,113|
|Prepayments|**53,794**|35,057|
|Accrued income|**21,456**|20,375|
||**───────**|───────|
||**108,591**|100,572|
||**═══════**|═══════|
## **13. CREDITORS: Amounts falling due within one year**
|||**2024**
2023|
|---|---|---|
|||**£**
£|
|Trade creditors||**118,538**
**71,948**|
|Social security and other taxes||**14,794**
**15,586**|
|Other creditors||**134,627**
**175,261**|
|Accruals||**68,921**
**70,350**|
|Deferred income||**18,242**
**25,148**|
|Pension liability (note 17)||**129,157**
**123,007**|
|||**───────**───────|
|||**484,279**
**481,300**|
|||**═══════**═══════|
|Included in other creditors are funds held for student societies and clubs of:|||
|||**£**|
|Funds held at 1 August 2023||**79,440**|
|Additions||**77,016**|
|Withdrawals||**(66,541)**|
|||**───────**|
|Funds held at 31 July 2024||**89,915**|
|||**═══════**|
Deferred income relates to receipts for marketing and events taking place after the year end.
## **13a. CREDITORS: Amounts falling due after more than one year**
|Pension liability (note 17)|**2024**
2023
Restated
**£**
£
**1,417,224**
1,262,952|
|---|---|
Page 28
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **14. RESTRICTED FUNDS**
|**14. RESTRICTED FUNDS**||||||
|---|---|---|---|---|---|
||**1 August**|**Incoming**|**Resources**||**31 July**|
||**2023**|**resources**|**expended**|**Transfers**|**2024**|
||**£**|**£**|**£**|**£**|**£**|
|**Restricted capital funds**||||||
|University refurbishment grants|**32,825**|**-**|**(12,218)**|**-**|**20,607**|
||**───────**|**───────**|**───────**|**───────**|**───────**|
||**32,825**|**-**|**(12,218)**|**-**|**20,607**|
||**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|
|**Restricted revenue funds**||||||
|Student Experience Projects|**1,036**|**-**|**-**|**-**|**1,036**|
|Widening Participation|**28,678**|**-**|**-**|**-**|**28,678**|
|SLTA|**1,048**|**-**|**-**|**-**|**1,048**|
|School Representatives|**9,800**|**30,100**|**(19,150)**|**-**|**20,750**|
|Media Groups|**1,139**|**-**|**-**|**-**|**1,139**|
|Welcome Desks|**3,087**|**-**|**-**|**-**|**3,087**|
|BCU Active|**16,341**|**-**|**-**|**-**|**16,341**|
|National Student Survey|**10,661**|**-**|**-**|**-**|**10,661**|
|Welcome Week|**2**|**-**|**-**|**-**|**2**|
|Student Engagement|**3,000**|**-**|**-**|**-**|**3,000**|
|Mental Health|**2,026**|**-**|**-**|**-**|**2,026**|
|Data Bank|**1,200**|**-**|**-**|**-**|**1,200**|
|Concept Elevators|**197**|**-**|**-**|**-**|**197**|
|COL Wellbeing 2023|**23,607**|**50,000**|**(29,887)**|**-**|**43,720**|
|Cost of Living|**3,021**|**35,000**|**(10,743)**|**-**|**27,278**|
|TEF Student Submission|**17,788**|**-**|**-**|**-**|**17,788**|
|BCU Survey Incentive Scheme|**-**|**13,795**|**(2,633)**|**-**|**11,162**|
|Live Events Incentive Scheme|**-**|**650**|**-**|**-**|**650**|
|Afterline Incentive Scheme|**-**|**6,500**|**(6,039)**|**-**|**461**|
|Eagle and Ball restart grant|**190**|**-**|**-**|**-**|**190**|
||**───────**|**───────**|**───────**|**───────**|**───────**|
||**122,821**|**136,045**|**(68,452)**|**-**|**190,414**|
||**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|
Page 29
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **14. RESTRICTED FUNDS (continued)**
## **RESTRICTED FUNDS – PREVIOUS YEAR**
||**1 August**|**Incoming**|**Resources**||**31 July**|
|---|---|---|---|---|---|
||**2022**|**resources**|**expended**|**Transfers**|**2023**|
||**£**|**£**|**£**|**£**|**£**|
|**Restricted capital funds**||||||
|University refurbishment grants|**77,406**|**-**|**(44,581)**|**-**|**32,825**|
||**───────**|**───────**|**───────**|**───────**|**───────**|
||**77,406**|**-**|**(44,581)**|**-**|**32,825**|
||**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|
|**Restricted revenue funds**||||||
|Student Experience Projects|**3,585**|**-**|**(2,549)**|**-**|**1,036**|
|Widening Participation|**28,678**|**-**|**-**|**-**|**28,678**|
|SLTA|**1,048**|**-**|**-**|**-**|**1,048**|
|School Representatives|**7,800**|**16,000**|**(14,000)**|**-**|**9,800**|
|Media Groups|**1,139**|**-**|**-**|**-**|**1,139**|
|Welcome Desks|**3,087**|**-**|**-**|**-**|**3,087**|
|BCU Active|**16,341**|**-**|**-**|**-**|**16,341**|
|National Student Survey|**10,661**|**-**|**-**|**-**|**10,661**|
|Welcome Week|**2**|**-**|**-**|**-**|**2**|
|Student Engagement|**3,000**|**-**|**-**|**-**|**3,000**|
|Mental Health|**2,026**|**-**|**-**|**-**|**2,026**|
|Data Bank|**1,200**|**-**|**-**|**-**|**1,200**|
|Concept Elevators|**-**|**1,000**|**(803)**|**-**|**197**|
|COL Wellbeing 2023|**-**|**35,000**|**(11,393)**|**-**|**23,607**|
|Cost of Living|**-**|**50,080**|**(47,059)**|**-**|**3,021**|
|TEF Student Submission|**-**|**25,000**|**(7,212)**|**-**|**17,788**|
|Eagle and Ball restart grant|**700**|**-**|**(510)**|**-**|**190**|
||**───────**|**───────**|**───────**|**───────**|**───────**|
||**79,267**|**127,080**|**(83,526)**|**-**|**122,821**|
||**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|
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 achieve the 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.
Page 30
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **14. RESTRICTED FUNDS (continued)**
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 is to create new ways of engaging with the student community at BCUSU.
Eagle and Ball restart grant is for making improvements to encourage customers back, and to improve services and health and safety post Covid.
Concept elevators donation is to be used for art supplies, materials, and facilities to enable students to produce artworks for hoardings on university grounds.
Cost of Living is to support students through the cost of living crisis including rising food prices, food prep spaces, library opening hours, and other financial support.
CoL Wellbeing 2023 fund is to support students feeling the pinch of COL by giving them money to help with mental health, food vouchers or money towards society and sports activity and to support additional BCUSU staff to put on events with a COL focus and increase the capacity in our advice team to help students with financial enquiries.
The TEF Student Submission Coordinator is a grant to fund the position to lead on the student submission including on costs.
BCU Survey Incentive Scheme is to pay for incentives to get all non-final year students to complete the internal end of year BCU Survey.
Live Events Incentive Scheme is for student-led societies to bid for funding and/or subsidise activities to engage students and improve their on-campus experience.
Afterline Incentive Scheme is to pay for incentives to encourage students to complete the market research on student experience used to inform BCUSU and BCU strategy creation process.
Page 31
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
## **BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **15. UNRESTRICTED FUNDS**
||**1 August**|
**Incoming**|**Resources**|**Gains/**|**Transfers**|
**31 July**|
|---|---|---|---|---|---|---|
||**2023**|**resources**|**expended**|**(losses)**||**2024**|
||**Restated**||||||
||**£**|
**£**|**£**|**£**|**£**|
**£**|
|**Unrestricted funds**|||||||
|General fund|**995,108**|
**3,565,125**|**(3,369,405)**|**-**|**(123,524)**|
**1,067,304**|
|Pension fund|**(1,385,959)**|
**-**|**(123,524)**|**(160,422)**|**123,524**|**(1,546,381)**|
||**───────**|**───────**|**───────**|**───────**|**───────**|**───────**|
||**(390,851)**|
**3,565,125**|**(3,492,929)**|**(160,422)**|**-**|
**(479,077)**|
||**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|
|**UNRESTRICTED FUNDS – PREVIOUS YEAR - Restated**|||||||
||**1 August**|**Incoming**|
**Resources**|
**Gains/**|
**Transfers**|**31 July**|
||**2022**|**resources**|
**expended**|
**(losses)**||**2023**|
||**Restated**||**Restated**|
**Restated**||**Restated**|
||**£**|**£**|
**£**|
**£**|
**£**|**£**|
|**Unrestricted funds**|||||||
|General fund|973,825|3,358,880|(3,219,953)|
-|(117,644)|995,108|
|Pension fund|(1,570,508)|-|
(73,450)|
140,355|
117,644|(1,385,959)|
||───────|───────|───────|───────|───────|───────|
||(596,683)|3,358,880|(3,293,403)|
140,355|
-|(390,851)|
||**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|**═══════**|
## **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 2024 are represented by:||||||
|Tangible fixed assets||**20,607**|
**-**|**45,233**|
**65,840**|
|Investments||**-**|
**-**|**100**|
**100**|
|Net current assets||**-**|
**190,414**|**892,814**|
**1,083,228**|
|Long term liabilities||**-**|
**-**|**(1,417,224)**|
**(1,417,224)**|
|||**───────**|
**───────**|
**───────**|
**──────**|
|Total net assets at 31 July 2024||**20,607**|
**190,414**|**(479,077)**|
**(268,056)**|
|||**═══════**|
**═══════**|
**═══════**|**═══════**|
|**Previous year**||||||
|Fund balances at 31 July 2023 are represented by:||||||
|Tangible fixed assets||32,825|
-|74,475|
107,300|
|Investments||-|
-|100|
100|
|Net current assets||-|
122,821|797,526|
920,347|
|Long term liabilities||-|
-|(1,262,952)|
(1,262,952)|
|||───────|
───────|
───────|
──────|
|Total net assets at 31 July 2023||32,825|
122,821|(390,851)|
(235,205)|
|||═══════|
═══════|
═══════|═══════|
Page 32
Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **17. PENSION SCHEMES**
## **Students’ Union Superannuation Scheme**
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 2022 and showed that the market value of the scheme’s assets was £106,700,000 with these assets representing 44% 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 £136,600,000.
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 2022. The 2022 valuation recommended a monthly contribution requirement by each employer expressed in monetary terms intended to clear the ongoing funding deficit by May 2037 and will increase by an average of 5% from 2022.
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 2024 amounted to £123,524 (2023 - £117,644) including funding deficit contributions of £123,524 (2023 - £117,644).
## **Deficit contributions**
||Annual|
|---|---|
|Contributions payablein 2024/25 (5%increase)|£130,740|
|Contributionspayable in 2025/26(5% increase)|£137,280|
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.
**PRESENT VALUES OF PROVISION**
||**PRESENT VALUES OF PROVISION**||||||
|---|---|---|---|---|---|---|
||||**2024**|||**2023**|
||||||||
||Present value of provision||**£**|||**£**|
||||||||
||Pension liability due in a year||129,157|||123,007|
||Pension liability due after a year||1,417,223|||1,262,952|
||||||||
||Present value of provision||1,546,381|||1,385,959|
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Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **17. PENSION SCHEMES (continued)**
**Students’ Union Superannuation Scheme (continued)**
**Reconciliation of opening and closing provisions**
|||||||**Period**
**Ending**
**31 July 2024**
**£**
1,385,959
123,524
(123,524)
160,422
1,546,381
**Period**
**Ending**
**31 July 2024**
**£**
123,524
-
160,422
-
283,946|
|---|---|---|---|---|---|---|
||||||||
||||||||
||Provision at start of period||||||
||Unwinding of the discount factor (interest expense)||||||
||Deficit contribution paid||||||
||Remeasurements-amendments to the contribution schedule|||||160,422|
||Provision at end ofperiod||||||
||||||||
||**Statement of Financial Activities impact**||||||
||||||||
||||||||
||||||||
||||||||
||||||||
||Interest expense||||||
||Remeasurements - impact of any change in assumptions||||||
||Remeasurements - amendments to the contribution schedule||||||
||Contributions paid in respect of future service|||||-|
||Costs recognised in income and expenditure account||||||
||||||||
||**Assumptions**||||||
||||**31 July 2024**|||**31 July 2023**|
||||% per annum|||% per annum|
||||||||
||Rate of interest||5.2%|||5.2%|
||||||||
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.
## **The National Union of Students Pension Scheme**
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 £33,664 (2023 - £36,479). At the year end, £nil (2023 - £nil) of pension contributions were outstanding and included within other creditors.
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Docusign Envelope ID: AE4818E6-790E-4767-8E23-D23DDF0CAAFB
**BIRMINGHAM CITY STUDENTS’ UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024**
## **18. PRIOR YEAR ADJUSTMENT**
The pension liability of the Students’ Union Superannuation Scheme had previously been calculated including both past and future discounted cashflows when only future discounted cashflows should be included in the calculation. The 2022 and 2023 liabilities have therefore been revised to remove the past discounted cashflows.
At 30 June 2022, the pension liability has been restated from £1,165,363 to £1,570,508, representing an increase of £405,145. For the year ended 31 July 2023, actuarial gains have been restated from £212,004 to £140,355, representing a decrease of £71,649. For the year ended 30 June 2023, the pension liability interest has been restated from £42,516 to £73,451, representing an increase of £30,935. For the year ended 30 June 2023, deficit contributions paid remain unchanged at £117,645. After adjusting for the above, at 30 June 2023, the pension scheme liability has been restated from £878,231 to £1,385,959, representing an increase of £507,728.
## **19. RELATED PARTY TRANSACTIONS**
Birmingham City University is considered to be a related party due to the fact that President and Sabbatical Officers of the Students' Union are members of the Council which is the governing body of the University.
Birmingham City University provided £1,414,000 (2023: £1,264,000) of block grant funding to the Union during the year, together with top-up funding of £85,000 (2023: £150,000) and other grants and additional project related funding of £13,795 (2023: £110,000).
Birmingham City University also provides serviced accommodation to the Union free of charge. The value of this serviced accommodation provided in the year was £704,500 (2023: £680,109) and this is included as both income and expenditure in the year.
Other income also received from Birmingham City University consists of:
||**2024**|**2023**|
|---|---|---|
||**£**|**£**|
|Parkside art material purchases|**6,374**|5,488|
|Catering|**17,596**|24,055|
|Vouchers spent in shops|**3,577**|2,544|
|Open day outlet|**3,981**|2,627|
|Department hoodies|**387**|547|
|Other|**-**|1,347|
Other expenditure incurred with Birmingham City University consists of:
||**2024**|**2023**|
|---|---|---|
||**£**|**£**|
|Printing/photocopying|**3,040**|3,382|
|Catering|**-**|204|
|Repairs|**255**|779|
|Other|**-**|210|
At 31 July 2024 an amount of £3,789 was owed to Birmingham City University (2023: £510) and £3,112 was due from Birmingham City University (2023: £nil).
At 31 July 2024, the subsidiary company, Birmingham City Enterprises Limited, owed the charity £13,381 (2023: £14,439).
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