**Registered number: 07703890 Charity number: 1143101**
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 JULY 2022**
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Company, its Trustees and advisers**|1 - 2|
|**Trustees' report**|3 - 10|
|**Independent auditor's report on the financial statements**|11 - 14|
|**Consolidated statement of financial activities**|15 - 16|
|**Consolidated balance sheet**|17 - 18|
|**Company balance sheet**|19 - 20|
|**Consolidated statement of cash flows**|21|
|**Notes to the financial statements**|22 - 40|
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2022**
|**Trustees**|Officer Trustees|
|---|---|
||Rhiannon Ellis, President|
||Prosati Ganguly, Vice President Community (resigned 1 July 2022)|
||Haram Zehra Syeda, Vice President Education (resigned 10 March 2022)|
||Junaid Ahmed, Vice President Activities (resigned 20 May 2022)|
||External Trustees|
||Simon Petar (resigned 31 July 2022)|
||David Ball, Chair|
||Stephen Isaacs|
||Sarah Fuell|
||Student Trustees|
||Katie Morton (resigned 31 July 2022)|
||Victoria Udeh (resigned 31 July 2022)|
||Md Iqbal Sajal (appointed 27 June 2022)|
||Osama Siddiqui (appointed 28 June 2022)|
||Aman Tripathi (appointed 27 June 2022)|
||University Trustee|
||Dr Mairi Watson|
|**Company registered**
**number**
07703890
**Charity registered**
**number**
1143101
**Registered office**
College Lane
Hatfield
Hertfordshire
AL10 9AB
**Company secretary**
Kishani Praemnath
**Independent auditor**
Hillier Hopkins LLP
Chartered Accountants
Radius House
51 Clarendon Road
Watford
Herts
WD17 1HP
**Bankers**
Santander Bank plc
Brindle Road
Bootle
Merseyside
L30 4GB||
Page 1
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
## **Solicitors**
TLT Solicitors LLP One Redcliff Street Bristol BS1 6TP
Page 2
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2022**
## **Strategic Report**
## **Overview**
The 2021-22 financial year was a positive year for the University of Hertfordshire Students’ Union (HSU), despite the impacts of the Coronavirus.
The Students’ Union represented students well in 2021-22, actively seeking out the views of students and promoting issues that are of importance to them, through the many University Committees its representatives attend, but also through a proactive range of high-quality change campaigns.
## **Achievements and performance**
The Students’ Union has had numerous achievements this year in line with its strategy.
## **2021-22**
HSU’s strategic vision is for students to love life at Herts. Like many organisations, HSU operated hybrid services whilst recovering from the effects of the pandemic. Many of the initiatives we’ve undertaken – namely around a) the delivery of online events b) the delivery of online advocacy services and c) the delivery of online social network building have been extremely successful. In the past year to date, our societies ran over 200 virtual events for their members, our HSU team ran another 100 virtual events open to all students, we had nearly 2000 students access our Advice and Support Centre. We more than doubled the number of students in our ‘Buddy Scheme’ – more than 200 students signed up to act as or be paired with buddies throughout the University. We had more than 3,000 students take out over 8,000 memberships in our student- led societies/
Additionally, the way HSU hears and reflects the student voice has changed dramatically as well. An example of some the successes of 21/22 that we are able to build on is BAME Student Journey research - three strand project focusing on Wellbeing, Academic Interests and the Awarding Gap. This will help shape the University’s work with our BAME students moving forward.
## **2021-22 Challenges**
2021-22 has of course presented the entire University with challenges to overcome. Key for HSU are challenges around student community building, student wellbeing and student confidence moving forward.
Our online delivery mechanisms for events and social networks have, to an extent, continued to support the University’s and the Union’s objectives around student communities. However, these work best in an environment that allows them to carry on alongside face to face activities, to act as a compliment for students who cannot always access in-person activity rather than a substitute for the in-person experience. There is a concern that particularly first year students will not have had the opportunity to establish their social capital in the way previous cohorts will have done. To support this, HSU included returning students in Welcome Activities in order to support them in making up for lost time.
Student wellbeing remains a national crisis facing the sector. Mind reports that nearly three-quarters of students - report that their mental health has been impacted by the pandemic (https://www.mind.org.uk/information support/coronavirus/student-mental-health-during-coronavirus/#HowIsCoronavirusAffectingStudentMental Health) – the University and the SU have a critical role to play in supporting this moving forward. It is our hope that in capitalising in some of the opportunities above, alongside a robust programme of in-person activity, we will see some improvement on this over the next three years. To support this, our VP Community has developed a Wellbeing toolkit resource to signpost students towards the variety of mental health services across the SU - and the University: https://hertssu.com/your support/mentalhealth/studentwellbeingguide/
Page 3
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
## **Looking ahead to 2022-23**
Over the next three years, HSU intends to continue to provide students with the opportunity to enrich their academic development and success through expanding some key initiatives, all aimed at developing student confidence and contributing to University objectives around retention and achievement.
- The first is a new initiative, our Rise Up programme. This programme is an opportunity for BAME students to attend events such as guest speakers, opportunities to network, mentoring/coaching, training and development. We're currently working with WASS and Careers to create this for the new academic year, and with the help of our BAME Advocates, who are helping run focus groups to ensure what's being developed is what students believe is important.
- The second is enhancing the development of our already established Student Leadership Development Programme (SLDP): https://hertssu.com/your-opportunities/studentleadersdevelopmentprogramme/ This programme provides a range of skills development workshops targeting employability and professional development and is available for the several thousand students who undertake leadership roles within the SU. This programme sits alongside the Go Herts Award.
More generally speaking, students who participate in HSU Activities of any kind tend to have better academic outcomes. In particular, it’s worth noting that there is a lower awarding gap between black and white students who participate in HSU activities than those who don’t – whilst we cannot say that there is definitive causation within this, there is certainly a link with improved outcomes and HSU has a KPI targeting increased numbers of students engaging in our activities in order to drive this further.
## **Community building**
Much of what HSU undertakes is aimed at building communities of students – it’s one of our strategic drivers (https://hertssu.com/your-union/strategicplan/). However, the next three years offer some unique opportunities to redefine what the Herts community looks like emerging from the pandemic:
- The continued development of the Forum is critical to this piece. The nightclub activity offers a safe yet exciting opportunity for students to regain social confidence.
- Student Group development is also critical to supporting the development of community at UH, particularly as blended learning is rolled out.
- Additionally, we have enjoyed a supportive partnership with the University this past year – feedback about students’ views on community issues have been very well responded to. We will continue to work with the Dean of Students office, WASS and Careers on activities aimed at helping students feel at home at Herts.
## **Equality, Diversity and Inclusion**
Following an assessment with our staff, students and external partners, Hertfordshire Students’ Union has been awarded the Investors in Diversity for Small Charities Accreditation until March 2023 through the National Centre for Diversity (Find out more about the NCD here.)
## **Support and development for students**
UH students represent a rich diversity of backgrounds, experiences, nationalities, ethnicities and cultures – in support of this, we have developed some online training that our student leaders in roles supporting societies, student reps and volunteers have been able to utilise to ensure they are best able to support our student population. The team have also developed some EDI information for our website and our society members now have to agree to an EDI pledge in order to join a society.
## **Support and development for HSU staff/officers**
Over the summer, the EDI team ran an interactive and in-depth training session for our entire staff and officer team, touching on various elements of EDI, unconscious bias and preconceptions, and supporting students. Our staff were universally positive about this and we’d be looking to repeat this as we employ new staff.
## **Ongoing EDI projects**
We have developed bespoke EDI training for our student leaders as part of our Student Leadership
Page 4
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
Development Programme, building on learning students have undertaken as part of the online learning already supplied. We are also continuing partnership work on a programme of events aimed at celebrating our student and staff community.
## **Flexibility of delivery and approach**
The SU is inherently flexible as we are responsive to student feedback – this leads to a very agile way of working. Our work around the student voice will develop over the next three years through:
- Continuing to share our findings far and wide across the University so other teams can be responsive to student feedback
- Work on collaborative communications to support the University in demonstrating to students their own flexibility in responding to student voice
**HSU staff and Governance:** In addition to supporting the Officers, the Union employs 31 FTE staff. We’ve introduced a Staff Wellbeing Policy and Wellness Action Plans to better support the staff.
We were supported by the University’s Internal Audit team to undertake a review of our governance. Following on from this, we will introduced new approach to appointing a Chair of the Board and Student Trustees and we have appointed our first University Trustee in August.
**Balanced budget:** Crucially in supporting all of the above, in the last academic year, the Union has made significant financial strides, ending with a surplus before tax of more than £10,000.
## **Impacts of Coronavirus on University of Hertfordshire Students’ Union Finances**
In 2021-22, with the Forum nightclub re-opening for trade in time for the students return in September 2021, the Union managed to meet the expected budget and end the year positively. This has contributed to the Union’s free reserves, bringing the total up to £353,448. This is well within the Union’s Reserves Policy, so will see the Union in good financial stead heading into next year.
## **Priorities for the year ahead**
The Union’s strategy has been redeveloped over the course of the last year, enabling us to develop a series of Key Performance Indicators. The aim over the next year is to ensure that our work is focused around delivery of these KPIs. We will particularly focus on the following:
- 75% of students agreeing the Union has a positive impact on the wellbeing of students.
- Achieve an NSS score that is within the top 25% of all HE Students’ Unions
- 22% of all students participate in HSU research
- At least 60% of students engage with at least one SU service per year
- 80% of students can identify that they are a member of the SU when surveyed
- Achieve a breakeven budget and achieve and maintain a reserves of 10% of our block grant
- Maintain staff engagement of 8 out of 10 or better
Page 5
# **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION (A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
The Trustees present their annual report together with the audited financial statements of the University of Hertfordshire Students’ Union (HSU) for the year 1 August 2021 to 31 July 2022.
## **Objectives and Activities**
## **a. Aims, objectives and activities**
The Board of Trustees has undertaken a review of its strategy over the last year and identified HSU’s mission as follows:
## **Our vision:**
- We want students to love their life at Herts.
## **Our values:**
- Helpful
- Empowering
- Representative
- Transparent
- Student-Focused
## **Our strategic drivers:**
## **We advocate for:**
- Student success and wellbeing
- Student insight and voice
- Student communities
- A strong Students’ Union
In pursuit of these aims for the public benefit, HSU will ensure the diversity of its membership is recognised, valued and supported and has established departments and services for use by its members and to support its work with the University and other organisations on behalf of students. These include the Union’s Advice and Support Centre, support for student representatives, societies and volunteering activities, student media, and support for student skills and training activities. In addition, the Union has established a subsidiary company (HSU Enterprises Limited) to operate the Union’s bars, venues, and entertainments. Elected Officers of HSU sit on every major committee of the University and meet regularly with the Local Authority, other providers of public services affecting students and local community groups.
HSU continues to represent the students of the University on relevant local, national and international issues by supporting a high number of student representatives. Student representatives sit on and contribute to over 50 University committees and academic programme committees which allows the Union to cater effectively to the needs of the students. Student representatives are present on all policy and strategy making boards.
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.
HSU employs a Chief Executive to work closely with the Trustees to ensure effective management of the charity as head of a senior management team as follows:
## **Chief Executive**
Rebecca Hobbs
## **Head of Operations**
Alun Minifey (Resigned May 2022)
Page 6
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
## **Head of People and HR**
Leena Patel
## **Head of Student Services**
Stephen Owen
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This expectation is bolstered by the Union’s free reserves availability of £353,448. For this reason they continue to adopt a going concern basis in preparing these financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. The Trustees are aware of the impact on the financial statements of the inclusion of the FRS102 standard. This includes the liabilities in relation to the closed defined pension scheme. There is a deficit reduction scheme in place to ensure these liabilities are fully met over the next 13 years.
## **b. Reserves policy**
The Union’s reserves policy is to aim towards the following reserves:
- Provide financial stability to enable the Union to achieve its objectives during challenging trading periods with a working capital reserve of at least 10% of the Union’s block grant available
Free reserves stood at £353,448 at the year end.
HSU is currently affiliated only to the NUS, for which our total subscription costs amounted to £29,991 for the year, and no donations were made during the year to any external institutions out of HSU’s own resources.
## **c. Financial Review**
The Union has continued to benefit from the recognition and support from the University and received a substantially increased subvention grant for the year of £1,199,638. In addition the University funded £499,234 towards the cost of leased accommodation.
The University also directly funded on behalf of the Students’ Union £70,000 towards the cost of the Athletic Union, which is not shown in these accounts.
The Union’s gross income from all sources during the year was £2,556,335 (2020-21: £1,463,459). The increase in income was mainly due to the re-opening of the Forum meaning that trade could continue following on from the COVID-19 closure. Total expenditure of £2,553,259 (2021: £1,389,078) on the student facing services and income generating activities resulted in a surplus of £3,076 for the year (2021: £74,381).
Going forward, the Union’s budget for 2022 23 shows a surplus of £18,423. This includes a subvention grant of £1,314,351 from the University.
## **Structure, governance and management**
## **a. Constitution**
HSU is constituted under the Education Act 1994 as a charity (see page 1) in line with Memorandum and Articles of Association most recently approved by the governing body of the University of Hertfordshire (the University) dated 11 July 2011 and amended February 2020.
Page 7
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
HSU’s charitable Objects under the Act are as follows:
The advancement of education of students at the University of Hertfordshire for the public benefit by:
- 1.1 promoting the interests and welfare of students at the University of Hertfordshire during their course of study and representing, supporting and advising students;
- 1.2 being the recognised representative channel between students and the University of Hertfordshire and any other external bodies; and
- 1.3 Providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students.
## **b. Method of appointment or election of Trustees**
HSU is administered by a Board of Trustees, consisting of four Officer Trustees elected annually by cross campus secret ballot of HSU members, up to two Student Trustees appointed by the Board to serve a maximum of two years, up to four Independent Trustees appointed by the Board to serve up to three years and a maximum of two consecutive terms, and a University Trustee, appointed by the University’s Vice-Chancellor, to serve up to three years and a maximum of two consecutive terms. The four Officer Trustees are full time, elected officers whose posts are remunerated as authorised by the Education Act 1994 and cannot exceed two years duration for each holder. The term of office for Officer Trustees runs from June to the first week in July each year (or nearest Friday) to link better to the academic year of students at the University and ensure a thorough induction period each summer. The four Officer Trustees, two Student Trustees, four External Trustees and one University Trustee are regarded as the charity trustees of HSU for the purposes of the Charity Acts.
## **c. Organisational structure and decision making**
HSU operates on democratic principles, with supervisory power vested in the Board of Trustees, which can veto decisions made by the Student Council and approves the annual budgets and accounts. The Student Council approves the Union’s political policy.
The Trustees, assisted by sub committees where appropriate, delegate the day to day running of HSU to a Chief Executive, named above. As charity trustees, trustees receive an induction into their legal and administrative responsibilities, with an on going training programme as and when needed for issues arising during their term of office.
HSU employs a team of professional staff who provide and manage many of the charity’s services and activities. Those staff are accountable to the Chief Executive, through the senior management team, for the performance of their duties.
## **d. Relationship with the University of Hertfordshire**
The relationship between the University and HSU is established in the University’s Memorandum and Articles of Governance and detailed in a Code of Practice approved by both organisations. HSU receives a subvention grant from the University, and part occupies buildings owned by the University, which also pays for utilities, and other management costs. The cost of such services is charged for through Service Charges which are funded through the allocation of additional accommodation grants. Although HSU continues to generate supplementary funding from various mutual trading activities, it will always be dependent on the University’s support.
The Union also occupies its premises under commercial leases of approximately £379,057.60pa. The University has continued to fund a similar amount via an accommodation grant.
There is no reason to believe that this or equivalent support from the University will not continue for the
Page 8
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body.
## **e. Risk management**
The Board of Trustees has examined the major strategic, business and operational risks faced by HSU. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Budgetary and internal control risks are minimised by the implementation of procedures for authorisation of all transactions. Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.
## **Plans for future periods**
## **a. Future funding**
The Board of Trustees confirms that HSU has sufficient funds to meet all its obligations for the coming year. The subvention grant funding for the 2022/23 financial year has been confirmed at £1,314,351. In addition, £509,011 has been confirmed for accommodation costs. Furthermore, the Union expects its commercial activities to continue to generate significant funds to support itself.
## **Custodian activities: Clubs and societies funds and the annual RAG**
HSU acts as custodian for funds raised by the Union’s many societies, amounting to an income of £44,817 and expenditure of £46,309 during the year, in addition to the grant support funds it disburses to them as shown in the accounts. HSU is also custodian of the annual RAG (Raise and Give) proceeds from fundraising events organised by the students under HSU auspices for distribution to the intended charities. Net funds raised by this year’s RAG amounting to £8,045 were distributed among the charities nominated by the RAG Committee. In addition, student groups supported by the Union raised further funds which were donated directly to student’s chosen charities.
## **Trustees' responsibilities statement**
The Trustees (who are also directors of University of Hertfordshire Student's Union for the purposes of company law) are responsible for preparing the Trustees' 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group 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;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
Page 9
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
## **David Ball**
Chair of the Board of Trustees 2021-22 Date:
Page 10
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION (A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **Opinion**
We have audited the financial statements of University of Hertfordshire Students' Union (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 July 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, 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 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 11
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
- the parent charitable company has not kept sufficient accounting records; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group's and 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 Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Page 12
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION (CONTINUED)**
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
- the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Group’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, Charities Act 2011 and relevant tax legislation.
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 on the Financial
Page 13
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION (CONTINUED)**
Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
## **Use of our report**
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **Hillier Hopkins LLP**
Chartered Accountants Statutory Auditor Radius House 51 Clarendon Road Watford Herts WD17 1HP
Date:
Hillier Hopkins LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 14
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2022**
|**Note**
**Income from:**
Donations and legacies:
3
University Block grant
University grant for rent
_._ Other donations and legacies
Charitable activities:
4
Societies
_._ Other charitable activities
Other trading activities
Investments
5
Other income
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities:
7
Trading rent
Advice welfare and support
Student engagement
Communications
Governance
_._ Taxation
**Total expenditure**
**Net movement in funds before other**
**recognised gains/(losses)**
**Other recognised gains/(losses):**
Actuarial gains/(losses) on defined
benefit pension schemes
22
**Net movement in funds**|**Restricted**
**funds**
**2022**
**£**
**-**
**-**
**19,900**
**44,817**
**-**
**-**
**-**
**-**
**64,717**
**-**
**-**
**-**
**69,685**
**-**
**-**
**-**
**69,685**
**(4,968)**
**-**
**(4,968)**|**Unrestricted**
**funds**
**2022**
**£**
**1,199,638**
**499,234**
**-**
**-**
**16,927**
**775,452**
**367**
**-**
**2,491,618**
**893,507**
**369,278**
**139,693**
**394,161**
**287,289**
**397,066**
**2,580**
**2,483,574**
**8,044**
**45,984**
**54,028**|**Total**
**funds**
**2022**
**£**
**1,199,638**
**499,234**
**19,900**
**44,817**
**16,927**
**775,452**
**367**
**-**
**2,556,335**
**893,507**
**369,278**
**139,693**
**463,846**
**287,289**
**397,066**
**2,580**
**2,553,259**
**3,076**
**45,984**
**49,060**|_Total_
_funds_
_2021_
_£_
_1,187,760_
_170,283_
_-_
_8,162_
_10,515_
_36,359_
_15_
_50,365_
_1,463,459_
_279,269_
_40,330_
_147,195_
_322,225_
_255,397_
_344,662_
_-_
_1,389,078_
_74,381_
_(448,990)_
_(374,609)_|
|---|---|---|---|---|
Page 15
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022**
|**Note**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2022**
**£**
**73,058**
**(4,968)**
**68,090**|**Unrestricted**
**funds**
**2022**
**£**
**(1,002,411)**
**54,028**
**(948,383)**|**Total**
**funds**
**2022**
**£**
**(929,353)**
**49,060**
**(880,293)**|_Total_
_funds_
_2021_
_£_
_(554,744)_
_(374,609)_
_(929,353)_|
|---|---|---|---|---|
Page 16
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee) REGISTERED NUMBER: 07703890**
## **CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2022**
|**Note**
**Fixed assets**
Tangible assets
11
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension liability**
Defined benefit pension scheme liability
22
**Total net assets**
**Charity funds**
Restricted funds
16
Unrestricted funds
16
**Total funds**|**30,975**
**153,058**
**563,956**
**747,989**
**(326,451)**|**2022**
**£**
**15,972**
**421,538**
**437,510**
**437,510**
**(1,317,803)**
**(880,293)**
**68,090**
**(948,383)**
**(880,293)**|_23,356_
_50,036_
_529,752_
_603,144_
_(196,229)_|_2021_
_£_
_27,519_
_406,915_
_434,434_
_434,434_
_(1,363,787)_
_(929,353)_
_73,058_
_(1,002,411)_
_(929,353)_|
|---|---|---|---|---|
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Page 17
# **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee) REGISTERED NUMBER: 07703890**
# **CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 JULY 2022**
**David Ball**
Chair of the Board of Trustees 2020 21 Date:
The notes on pages 22 to 40 form part of these financial statements.
Page 18
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee) REGISTERED NUMBER: 07703890**
## **COMPANY BALANCE SHEET AS AT 31 JULY 2022**
|**Note**
**Fixed assets**
Tangible assets
11
Investments
12
**Current assets**
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension liability**
Defined benefit pension scheme liability
22
**Total net assets**
**Charity funds**
Restricted funds
16
Unrestricted funds
Unrestricted funds excluding pension asset
16
Total unrestricted funds
16
**Total funds**|**57,370**
**523,438**
**580,808**
**(156,253)**
**-**|**2022**
**£**
**15,972**
**1**
**15,973**
**424,555**
**440,528**
**440,528**
**(1,317,803)**
**(877,275)**
**68,090**
**(945,365)**
**(877,275)**|_88,486_
_505,151_
_593,637_
_(103,805)_
_(919,493)_|_2021_
_£_
_27,519_
_1_
_27,520_
_489,832_
_517,352_
_517,352_
_(1,363,787)_
_(846,435)_
_73,058_
_(919,493)_
_(846,435)_|
|---|---|---|---|---|
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
However, an audit is required in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
Page 19
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee) REGISTERED NUMBER: 07703890**
# **COMPANY BALANCE SHEET (CONTINUED) AS AT 31 JULY 2022**
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
## **David Ball**
Chair of the Board of Trustees 2021-22 Date:
The notes on pages 22 to 40 form part of these financial statements.
Page 20
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022**
|**Note**
**Cash flows from operating activities**
Net cash used in operating activities
19
**Cash flows from investing activities**
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
20
The notes on pages 22 to 40 form part of these financial statements|**2022**
**£**
**40,042**
**-**
**(5,838)**
**(5,838)**
**34,204**
**529,752**
**563,956**|_2021_
_£_
_122,969_
_15,565_
_(15,703)_
**(138)**
**122,831**
_406,921_
_529,752_|
|---|---|---|
Page 21
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **1. General information**
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
University of Hertfordshire 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.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **2.2 Going concern**
The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. After making appropriate enquiries, the Trustees have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt a going concern basis in preparing these financial statements.
The Union’s free reserves are £353,448 at the year end which is well within the Union’s Reserves Policy, so will see the Union in good financial stead heading in to next year.
The Trustees are aware of the impact on the financial statements of the inclusion of the liabilities in relation to the closed defined pension scheme. There is a deficit reduction scheme in place to ensure these liabilities are fully met over the next 13 years.
Page 22
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **2. Accounting policies (continued)**
## **2.3 Income**
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.6 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 23
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **2. Accounting policies (continued)**
## **2.6 Tangible fixed assets and depreciation (continued)**
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following bases:
- Plant and machinery 25% straight line Motor vehicles - 25% straight line - Office equipment 25/33% straight line
## **2.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 24
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
**(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **2. Accounting policies (continued)**
## **2.11 Liabilities**
Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
## **2.12 Financial instruments**
The Group 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.13 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.
## **2.14 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
The company operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 30 September 2019. The scheme closed to new joiners in 2011. The scheme is a multi-employer scheme where it is not possible, in the normal course of events, to identify on a consistent and reasonable basis, the share of underlying assets and liabilities belonging to individual participating employers. The 2013 valuation of the scheme recommended a monthly contribution requirement by each participating employer intended to clear the ongoing funding deficit over a period of 17 years, updated by subsequent valuations to August 2035. The pension provision included in the accounts is the net present valuation of the expected contributions to the scheme deficit to 31 October 2035.
Page 25
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **2. Accounting policies (continued)**
## **2.15 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 26
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **3. Income from donations and legacies**
|**Grants**
University Block grant
University grant for rent
**Subtotal detailed disclosure**
Donations
**Subtotal**
**Grants**
University Block grant
University grant for rent
**Subtotal detailed disclosure**|**Restricted**
**funds**
**2022**
**£**
-
-
-
19,900
19,900
19,900|**Unrestricted**
**funds**
**2022**
**£**
1,199,638
499,234
1,698,872
-
-
1,698,872
_Unrestricted_
_funds_
_2021_
_£_
_1,187,760_
_170,283_
_1,358,043_
_1,358,043_|**Tota**
**funds**
**2022**
**£**
**1,199,638**
**499,234**
**1,698,872**
**19,900**
**19,900**
**1,718,772**
_Total_
_funds_
_2021_
_£_
_1,187,760_
_170,283_
_1,358,043_
_1,358,043_|
|---|---|---|---|
## **4. Income from charitable activities**
||**Restricted**|**Unrestricted**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**2022**|**2022**|**2022**|
||**£**|**£**|**£**|
|Charity incoming resources|44,817|16,927|**61,744**|
Page 27
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **4. Income from charitable activities (continued)**
|Charity incoming resources
**5.**
**Investment income**
Bank interest
Bank interest
**6.**
**Other incoming resources**
Furlough grant income|_Restricted_
_funds_
_2021_
_£_
_8,162_|_Unrestricted_
_funds_
_2021_
_£_
_10,515_
**Unrestricted**
**funds**
**2022**
**£**
367
_Unrestricted_
_funds_
_2021_
_£_
_15_
_Unrestricted_
_funds_
_2021_
_£_
_50,365_|_Total_
_funds_
_2021_
_£_
_18,677_
**Total**
**funds**
**2022**
**£**
**367**
_Total_
_funds_
_2021_
_£_
_15_
**Total**
**funds**
**2022**
**£**
_Total_
_funds_
_2021_
_£_
_50,365_|
|---|---|---|---|
Page 28
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **7. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Direct costs charitable activities
Direct costs charitable activities
**8.**
**Analysis of expenditure by activities**
Charitable activities
Charitable activities|**Restricted**
**funds**
**2022**
**£**
69,685
_Restricted_
_funds_
_2021_
_£_
_10,474_|**Unrestricted**
**funds**
**2022**
**£**
1,590,067
_Unrestricted_
_funds_
_2021_
_£_
_1,099,335_
**Support**
**costs**
**2022**
**£**
1,659,752
_Support_
_costs_
_2021_
_£_
_1,109,809_|**Total**
**2022**
**£**
**1,659,752**
_Total_
_2021_
_£_
_1,109,809_
**Total**
**funds**
**2022**
**£**
**1,659,752**
_Total_
_funds_
_2021_
_£_
_1,109,809_|
|---|---|---|---|
Page 29
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **8. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Staff costs
Other Support
Trading rent
Taxation
Staff costs
Other Support
Trading rent
**9.**
**Auditor's remuneration**
Fees payable to the Company's auditor for the audit of the Company's
annual accounts|**Activities**
**2022**
**£**
808,893
349,047
499,232
2,580
1,659,752
_Activities_
_2021_
_£_
_755,984_
_183,543_
_170,282_
_1,109,809_
**2022**
**£**
**16,000**|**Total**
**funds**
**2022**
**£**
**808,893**
**349,047**
**499,232**
**2,580**|
|---|---|---|
|||**1,659,752**|
|||_Total_
_funds_
_2021_
_£_
_755,984_
_183,543_
_170,282_|
|||_1,109,809_|
|||_2021_
_£_
_15,000_|
Page 30
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **10. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Group**
**2022**
**£**
**906,755**
**104,363**
**144,156**
**1,155,274**|_Group_
_2021_
_£_
_773,791_
_65,950_
_120,295_
_960,036_|**Company**
**2022**
**£**
**697,021**
**91,820**
**140,709**
**929,550**|_Company_
_2021_
_£_
_691,219_
_57,636_
_117,682_|
|---|---|---|---|---|
|||||_866,537_|
The average number of persons employed by the Company during the year was as follows:
|Full time
Students|**Group**
**2022**
**No.**
**31**
**76**
**107**|_Group_
_2021_
_No._
_30_
_40_|
|---|---|---|
||||
|||_70_|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**Group**|_Group_|
|---|---|---|---|
|||**2022**|_2021_|
|||**No.**|_No._|
|In the band £60,001|- £70,000|**-**|_1_|
|In the band £70,001|- £80,000|**1**|_-_|
The key management personnel of the charity comprise the trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the charity and its subsidiaries was £168,113 (2021: £179,008). Of this, £60,226 (2021: £71,643) was paid to sabbatical officers for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities, as authorised in the Union's governing document. This work includes voicing student opinion with the institution and local community, defending and extending the rights of students through petitions, discussion with MPs and also organising and supporting student volunteers and service provision for them.
Page 31
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **11. Tangible fixed assets**
## **Group**
|**Cost or valuation**
At 1 August 2021
Additions
Disposals
At 31 July 2022
**Depreciation**
At 1 August 2021
Charge for the year
On disposals
At 31 July 2022
**Net book value**
At 31 July 2022
_At 31 July 2021_
**Company**
**Cost or valuation**
At 1 August 2021
Additions
Disposals
At 31 July 2022|**Plant and**
**machinery**
**£**
**75,730**
**-**
**(519)**
**75,211**
**70,534**
**3,798**
**(519)**
**73,813**
**1,398**
_5,196_
**Plant and**
**machinery**
**£**
**75,730**
**-**
**(519)**
**75,211**|**Motor**
**vehicles**
**£**
**20,580**
**-**
**-**
**20,580**
**20,580**
**-**
**-**
**20,580**
**-**
_-_
**Motor**
**vehicles**
**£**
**20,580**
**-**
**-**
**20,580**|**Office**
**equipment**
**£**
**438,186**
**5,838**
**(29,894)**
**414,130**
**415,863**
**13,415**
**(29,722)**
**399,556**
**14,574**
_22,323_
**Office**
**equipment**
**£**
**438,186**
**5,838**
**(29,894)**
**414,130**|**Total**
**£**
**534,496**
**5,838**
**(30,413)**
**509,921**
**506,977**
**17,213**
**(30,241)**
**493,949**
**15,972**
_27,519_
**Total**
**£**
**534,496**
**5,838**
**(30,413)**
**509,921**|
|---|---|---|---|---|
Page 32
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **11. Tangible fixed assets (continued)**
## **Company (continued)**
|**Depreciation**
At 1 August 2021
Charge for the year
On disposals
At 31 July 2022
**Net book value**
At 31 July 2022
_At 31 July 2021_|**Plant and**
**machinery**
**£**
**70,534**
**3,798**
**(519)**
**73,813**
**1,398**
_5,196_|**Motor**
**vehicles**
**£**
**20,580**
**-**
**-**
**20,580**
**-**
_-_|**Office**
**equipment**
**£**
**415,863**
**13,415**
**(29,722)**
**399,556**
**14,574**
_22,323_|**Total**
**£**
**506,977**
**17,213**
**(30,241)**|
|---|---|---|---|---|
|||||**493,949**|
|||||**15,972**|
|||||_27,519_|
## **12. Fixed asset investments**
|**Company**
**Cost or valuation**
At 1 August 2021
At 31 July 2022
**Net book value**
At 31 July 2022
_At 31 July 2021_|**Investments**
**in**
**subsidiary**
**companies**
**£**
**1**|
|---|---|
||**1**|
||**1**|
||_1_|
Page 33
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **13. Stocks**
||**Group**|_Group_|
|---|---|---|
||**2022**|_2021_|
||**£**|_£_|
|Finished goods and goods for resale|**30,975**|_23,356_|
## **14. Debtors**
|**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2022**
**£**
**15,841**
**14,897**
**51,135**
**71,185**
**153,058**|_Group_
_2021_
_£_
_553_
_-_
_25,257_
_24,226_
_50,036_|**Company**
**2022**
**£**
**291**
**14,897**
**24,376**
**17,806**
**57,370**|_Company_
_2021_
_£_
_298_
_47,241_
_22,001_
_18,946_|
|---|---|---|---|---|
||||||
|||||_88,486_|
## **15. Creditors: Amounts falling due within one year**
|Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2022**
**£**
**60,090**
**14,897**
**24,279**
**101,940**
**125,245**
**326,451**|_Group_
_2021_
_£_
_24,503_
_-_
_16,300_
_101,072_
_54,354_
_196,229_|**Company**
**2022**
**£**
**36,647**
**-**
**21,699**
**27,919**
**69,988**
**156,253**|_Company_
_2021_
_£_
_17,175_
_-_
_16,300_
_25,027_
_45,303_|
|---|---|---|---|---|
||||||
|||||_103,805_|
Page 34
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **16. Statement of funds**
## **Statement of funds - current year**
|**Balance at 1**
**August**
**2021**
**£**
**Unrestricted funds**
General Funds - all funds
**(1,002,411)**
**Restricted funds**
Societies
**53,101**
Other
**19,957**
**73,058**
**Total of funds**
**(929,353)**|**Income**
**£**
**2,491,618**
**44,817**
**19,900**
**64,717**
**2,556,335**|**Expenditure**
**£**
**(2,483,574)**
**(46,309)**
**(23,376)**
**(69,685)**
**(2,553,259)**|**Gains/**
**(Losses)**
**£**
**Balance at**
**31 July 2022**
**£**
**45,984**
**(948,383)**
**-**
**51,609**
**-**
**16,481**
**-**
**68,090**
**45,984**
**(880,293)**|
|---|---|---|---|
## **Societies**
Societies funds represent amounts raised by the clubs and societies of the Union for their own use.
## **Other**
Other funds represent amounts received for specific minor projects.
Page 35
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **16. Statement of funds (continued)**
|**Statement of funds (continued)**|||||
|---|---|---|---|---|
|**Statement of funds - prior year**
_Balance at_
_1 August_
_2020_
_£_
**Unrestricted funds**
General Funds - all funds
_(630,114)_
**Restricted funds**
Societies
_52,900_
Other
_22,470_
_75,370_
**Total of funds**
_(554,744)_|_Income_
_£_
_1,455,297_
_8,162_
_-_
_8,162_
_1,463,459_|_Expenditure_
_£_
_(1,378,604)_
_(7,961)_
_(2,513)_
_(10,474)_
_(1,389,078)_|_Gains/_
_(Losses)_
_£_
_(448,990)_
_-_
_-_
_-_
_(448,990)_|_Balance at_
_31 July 2021_
_£_
_(1,002,411)_
_53,101_
_19,957_
_73,058_
_(929,353)_|
|**Unrestricted funds**
General Funds - all funds
**Restricted funds**
Societies
Other
**Total of funds**|||||
Page 36
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **17. Summary of funds**
## **Summary of funds - current year**
|**Balance at 1**
**August**
**2021**
**£**
General funds
**(1,002,411)**
Restricted funds
**73,058**
**(929,353)**
**Summary of funds - prior year**
_Balance at_
_1 August_
_2020_
_£_
General funds
_(630,114)_
Restricted funds
_75,370_
_(554,744)_|**Income**
**£**
**2,491,618**
**64,717**
**2,556,335**
_Income_
_£_
_1,455,297_
_8,162_
_1,463,459_|**Expenditure**
**£**
**(2,483,574)**
**(69,685)**
**(2,553,259)**
_Expenditure_
_£_
_(1,378,604)_
_(10,474)_
_(1,389,078)_|**Gains/**
**(Losses)**
**£**
**Balance at**
**31 July 2022**
**£**
**45,984**
**(948,383)**
**-**
**68,090**
**45,984**
**(880,293)**
_Gains/_
_(Losses)_
_£_
_Balance at_
_31 July 2021_
_£_
_(448,990)_
_(1,002,411)_
_-_
_73,058_
_(448,990)_
_(929,353)_|
|---|---|---|---|
|**Summary of funds - prior year**||||
|General funds
Restricted funds||||
## **18. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
**Total**|**Restricted**
**funds**
**2022**
**£**
-
68,090
-
-
68,090|**Unrestricte**
**d funds**
**2022**
**£**
15,972
679,899
(326,451)
(1,317,803)
(948,383)|**Total**
**funds**
**2022**
**£**
**15,972**
**747,989**
**(326,451)**
**(1,317,803)**
**(880,293)**|
|---|---|---|---|
Page 37
**(A company limited by guarantee)**
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **18. Analysis of net assets between funds (continued)**
## **Analysis of net assets between funds - prior year**
|_Restricted_
_funds_
_2021_
_Unrestricted_
_funds_
_2021_
_£_
_£_
Tangible fixed assets
_-_
_27,519_
Current assets
_73,058_
_530,086_
Creditors due within one year
_-_
_(196,229)_
Provisions for liabilities and charges
_-_
_(1,363,787)_
**Total**
_73,058_
_(1,002,411)_
**19.**
**Reconciliation of net movement in funds to net cash flow from operating activities**
**Group**
**2022**
**£**
Net income for the year (as per Statement of Financial Activities)
**3,076**
**Adjustments for:**
Depreciation charges
**17,213**
Loss/(profit) on the sale of fixed assets
**172**
Decrease/(increase) in stocks
**(7,619)**
Decrease/(increase) in debtors
**(103,022)**
Increase/(decrease) in creditors
**130,222**
**Net cash provided by operating activities**
**40,042**
**20.**
**Analysis of cash and cash equivalents**
**Group**
**2022**
**£**
Cash in hand
**563,956**
**Total cash and cash equivalents**
**563,956**|_Total_
_funds_
_2021_
_£_
_27,519_
_603,144_
_(196,229)_
_(1,363,787)_
_(929,353)_
_Group_
_2021_
_£_
_74,381_
_30,642_
_(8,038)_
_4,098_
_67,309_
_(45,423)_
_122,969_
_Group_
_2021_
_£_
_529,752_
_529,752_|
|---|---|
Page 38
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **21. Analysis of changes in net debt**
|Cash at bank and in hand|**At 1 August**
**2021**
**£**
**529,752**
**529,752**|**Cash flows**
**£**
**34,204**
**34,204**|**At 31 July**
**2022**
**£**
**563,956**|
|---|---|---|---|
||||**563,956**|
## **22. Pension commitments**
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £49,549 (2021- £26,484).
The Union participated 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. This scheme is now closed to new members.
The 2013 valuation of the scheme recommended a monthly contribution requirement by each participating employer intended to clear the ongoing funding deficit over a period of 17 years, extended by another 4 years by the 2016 and 2019 valuations. The pension provision is the net present valuation of the expected contributions to the scheme deficit to 31 October 2035.
## **23. Operating lease commitments**
At 31 July 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years|**Group**
**2022**
**£**
**228,922**
**915,690**
**406,922**
**1,551,534**|_Group_
_2021_
_£_
_273,222_
_1,091,655_
_1,027,488_
_2,392,365_|**Company**
**2022**
**£**
**70,000**
**280,000**
**75,833**
**425,833**|_Company_
_2021_
_£_
_70,308_
_280,000_
_215,833_|
|---|---|---|---|---|
||||||
|||||_566,141_|
Page 39
## **UNIVERSITY OF HERTFORDSHIRE STUDENTS' UNION**
## **(A company limited by guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022**
## **24. Related party transactions**
The following are considered to be related parties for the reasons stated. The transactions with these related parties are set out below:
## **University of Hertfordshire**
The Union is in receipt of a recurrent grant from the parent body of £1,199,638 (2021: £1,187,760). During the year the Union received an accommodation grant of £499,234 (2021: £170,283) to cover the rental payments due on the Forum & Hutton buildings.
Transactions through the year resulted in a trading balance of £192 (2021: £91) owed to the University.
## **UHSU Enterprises Ltd**
The Union holds 100% of the issued share capital of this company. During the year the Union entered into the following transactions:
A management charge of £nil (2021: £Nil) was levied on this company. The balance owed to the Union at 31 July 2022 was £14,897 (2021: £47,241).
## **25. Principal subsidiaries**
The following was a subsidiary undertaking of the Company:
|**Name**||**Company**|**Company**|**Class of**|**Holding**|
|---|---|---|---|---|---|
|||**number**||**shares**||
|UHSU Enterprises Ltd||06666418||Ordinary|100%|
|The financial results of the subsidiary for the year were:||||||
|**Name**|**Income**|**Expenditure**|**Profit/(Loss)**||**Net assets**|
||**£**|**£**||**/ Surplus/**|**£**|
||||**(Deficit) for**|||
|||||**the year**||
|||||**£**||
|UHSU Enterprises Ltd|**1,175,452**|**1,092,972**||**82,480**|**(3,017)**|
Page 40