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2024-07-31-accounts

Company no. 07703890 Charity no. 1143101

University of Hertfordshire Students' Union Report and Audited Financial Statements 31 July 2024

University of Hertfordshire Students' Union

Reference and administrative details

For the year ended 31 July 2024

Company number 07703890 Charity number 1143101 Registered office and College Lane operational address Hatfield Hertfordshire AL10 9AB

Trustees

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Officer trustees

Hamnah Baig Rikiba Caton Chizobam Ezechukwu

Rikiba Caton appointed 11 September 2024 Chizobam Ezechukwu appointed 1 April 2024 resigned 30 June 2024 Sarah Fuell resigned 13 February 2024 Santosh Gottapu appointed 11 September 2024 Victor Idowu appointed 1 January 2024 resigned 31 March 2024 Stephen Isaacs resigned 1 September 2023 Zhora Jasper appointed 25 September 2024 Muhammad Khan appointed 11 September 2024 Olawale Komolafe appointed 1 Januar 2024 resigned 31 March 2024 Daniel Lawal appointed 1 April 2024 resigned 30 June 2024 Rohit Mahadevu appointed 1 July 2024 Divya Maheshwaram appointed 1 April 2024 resigned 30 June 2024 Manoj Nagireddy resigned 30 June 2024 Moyinluwa Olaiya appointed 1 January 2024 resigned 31 March 2024 Oluronke Oluwalere resigned 30 June 2024 Md Sajal resigned 31 December 2023 Sahibkunvar Singh appointed 11 September 2024 resigned 23 September 2024 Padmavathi Valluri appointed 1 October 2023 resigned 31 December 2023 Chinmay Vyas appointed 1 October 2023 resigned 31 December 2023

External trustees

Lucy Atkinson David Ball Umar Mohamad Rajiv Sudan Robert Walder - Chair Dr Mairi Watson

appointed 1 September 2023 resigned 1 September 2023

appointed 13 February 2024 appointed 1 September 2023

1

University of Hertfordshire Students' Union

Reference and administrative details

For the year ended 31 July 2024

Chief executive officer Rebecca Hobbs Company secretary Leena Patel appointed 3 April 2024 Luci Ablett resigned 3 April 2024 Principal bankers Santander Bank plc Brindle Road Bootle Merseyside L30 4GB Auditors Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

2

University of Hertfordshire Students' Union

Report of the trustees

For the year ended 31 July 2024

Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Overview

The 2023-24 financial year was a successful one for the University of Hertfordshire Students' Union (HSU). Throughout the year, HSU worked actively to represent the student body, championing key issues and engaging students in various University committees. In addition to participating in decisionmaking, HSU led a number of impactful initiatives that addressed student needs and priorities.

Achievements and Performance

HSU’s strategic vision is for students to “love life at Herts". To achieve this, our focus in 2023-24 was to:

These efforts align with HSU’s core mission: championing student success and wellbeing, fostering student communities, and representing the student voice at the University of Hertfordshire.

Student Success and Wellbeing

HSU contributes to the University’s student success goals by:

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University of Hertfordshire Students' Union

Report of the trustees

For the year ended 31 July 2024

Student Voice, Representation, and Insight

HSU shapes the student experience by:

Student Communities

HSU fosters a sense of belonging by:

Stability and Growth

HSU remains committed to:

Aims, Objectives, and Activities

In line with the review of our strategy, HSU’s mission remains:

Our Vision

To help students love life at Herts.

Our Values

Our Advocacy Focus

HSU continues to represent students locally, nationally, and internationally, with student representatives playing an active role in all University committees and boards. This ensures that student voices are heard in policy and strategy decisions across the University.

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.

4

University of Hertfordshire Students' Union

Report of the trustees

For the year ended 31 July 2024

HSU employs a Chief Executive Officer to work closely with the Trustees to ensure effective management of the charity as head of a senior management team as follows: -

Chief Executive Officer

Rebecca Hobbs

Director of Community Operations

Sean Ferrie

Director of People and HR

Leena Patel

Head of Student Services

Stephen Owen (resigned March 2024)

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 £428,436 (excluding the Pension Deficit). 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 benefit pension scheme. There is a deficit reduction scheme in place to ensure these liabilities are fully met over the next 13.5 years.

Reserves policy

The Union’s reserves policy is to:

Unrestricted reserves less the pension deficit stood at £428,436 at the year end, and were therefore in line with the target.

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 £1,399,304. In addition, the University funded £509,011 towards the cost of leased accommodation.

The Group’s gross income from all sources during the year was £2,752,409 (2023: £2,592,673). The increase in income was due to an increase in funding received from the subvention and additional restricted grants. Total expenditure of £2,643,267 (2023:£2,604,282) on the student facing services and income-generating activities resulted in a total surplus of £109,142 for the year.

Structure, governance and management

Constitution

HSU is constituted under the Education Act 1994 as a charity 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.

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University of Hertfordshire Students' Union

Report of the trustees

For the year ended 31 July 2024

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:

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 elected officers whose posts are remunerated as authorised by the Education Act 1994 and cannot exceed two years duration for each holder. 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.

From 2023-24, in line with the new Officer structure of one full-time President and up to nine part-time portfolio Officers, the President will serve as a Trustee and Deputy Chair for the duration of their term of office (up to the maximum term length of one year, re-electable once). The other part-time Elected Officers will serve as Trustees for a term of two consecutive meetings in the year, re-electable once. There will be four Elected Officer Trustees positions at each meeting - the President and three parttime Elected Officers.

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 Officer, 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.

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.

6

University of Hertfordshire Students' Union

Report of the trustees

For the year ended 31 July 2024

The Union also occupies its premises under commercial leases of approximately £509,011 pa. 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 foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body.

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

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 2024/25 financial year has been confirmed at £1,527,197. 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 £630 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 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.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:

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University of Hertfordshire Students' Union

Report of the trustees

For the year ended 31 July 2024

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 21 November 2024 and signed on their behalf by

R Walder

Robert Walder - Trustee

8

Independent auditors' report

To the members of

University of Hertfordshire Students' Union

Opinion

We have audited the financial statements of the University of Hertfordshire Student Union (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 July 2024 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related 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 the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 7 to the financial statements, 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 and parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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. 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.

9

Independent auditors' report

To the members of

University of Hertfordshire Students' Union

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within 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:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, 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 they 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 and the parent charity'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 charity or to cease operations, or have no realistic alternative but to do so.

10

Independent auditors' report

To the members of

University of Hertfordshire Students' Union

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the group and parent charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the group and parent charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Testing transactions that are unusual or outside the normal course of business.

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. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

11

Independent auditors' report

To the members of

University of Hertfordshire Students' Union

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

Use of our report

This report is made solely to the charityʼs 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 charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 22 November 2024

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

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University of Hertfordshire Students' Union

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 July 2024

Restricted
Note
£
Income from:
Donations
3
35,417
Charitable activities
4
126,529
Other trading activities
5
-
Investments
-
Other income
-
Total income
161,946
Expenditure on:
Raising funds
-
Charitable activities
158,810
Total expenditure
6
158,810
Net income / (expenditure)
7
3,136
Transfers between funds
2,165
Net movement in funds
5,301
Reconciliation of funds:
Total funds brought forward
95,444
Total funds carried forward
100,745		 Unrestricted
£
1,942,825
76,515
552,481
12,642
6,000
2,590,463
868,477
1,615,980
2,484,457
106,006
(2,165)
103,841
(987,346)
(883,505)		 2024
Total
£
1,978,242
203,044
552,481
12,642
6,000
2,752,409
868,477
1,774,790
2,643,267
109,142
-
109,142
(891,902)
(782,760)		 2023
Total
£
1,849,662
81,790
649,332
11,889
-
2,592,673
994,294
1,609,988
2,604,282
(11,609)
-
(11,609)
(880,293)
(891,902)

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts.

13

University of Hertfordshire Students' Union

Consolidated balance sheets

As at 31 July 2024

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Liabilities
15
Net current assets
Net assets excluding pension liability
19
Net liabilities
17
Funds
18
Restricted funds
Unrestricted funds
Total charity funds
Creditors: amounts falling due
within 1 year
Defined benefit pension
scheme liability		 The group
2024
£
2,307
-
2,307
36,050
135,737
654,258
826,045
(299,171)
526,874
529,181
(1,311,941)
(782,760)
100,745
(883,505)
(782,760)		 The group
2023
£
5,854
-
5,854
37,611
152,468
620,917
810,996
(330,355)
480,641
486,495
(1,378,397)
(891,902)
95,444
(987,346)
(891,902)		 The charity
2024
£
2,307
1
2,308
-
253,229
484,981
738,210
(211,337)
526,873
529,181
(1,311,941)
(782,760)
100,745
(883,505)
(782,760)		 The charity
2023
£
5,854
1
5,855
-
64,459
595,886
660,345
(193,488)
466,857
472,712
(1,378,397)
(905,685)
95,444
(1,001,129)
(905,685)

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 21 November 2024 and signed on their behalf by

R Walder

Robert Walder - Trustee

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University of Hertfordshire Students' Union

Consolidated statement of cash flows

For the year ended 31 July 2024

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
(Profit) / loss on the sale of fixed assets
Interest from investments
Decrease / (increase) in stocks
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Interest from investments
Net cash provided by investing activities
Increase 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		 2024
£
109,142
6,049
(6,000)
(12,642)
1,561
16,731
(97,640)
17,201
(2,502)
6,000
12,642
16,140
33,341
620,917
654,258		 2023
£
(11,609)
11,505
137
(11,889)
(6,636)
590
64,498
46,596
(1,524)
-
11,889
10,365
56,961
563,956
620,917

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

15

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

1. Accounting policies

a) Basis of preparation

University of Hertfordshire Students' Union is a charitable company limited by guarantee registered in England and Wales. The registered office address is College Lane, Hatfield, Hertfordshire, AL10 9AB.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), 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 note.

b) Group accounts

These financial statements consolidate the results of the charitable company and its whollyowned subsidiary, on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. The trustees acknowledge the net liability position of the charity at the year end. However, the pension provision will not crystallise in the short term and a repayment plan is in place to ensure these liabilities are met over the next 13.5 years. Unrestricted general funds excluding the pension provision are £428,436, and the trustees therefore consider there to be no material uncertainties about the charity's ability to continue as a going concern.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of provision of advertising and events is deferred until criteria for income recognition are met.

16

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

1. Accounting policies (continued)

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particularly areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of staff time as follows:

2024 2023
Raising funds 35.9% 39.5%
Charitable activities 64.1% 60.5%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Plant and machinery 4 years straight line
Motor vehicles 4 years straight line
Office equipment 3 to 4 years straight line

Items of equipment are capitalised where the purchase price exceeds £1,000.

j) Investment in subsidiary undertakings

The charitable company has one wholly owned subsidiary, UHSU Enterprises Limited, (registered company number 06666418). The subsidiary is used for non-primary purpose trading activities. The subsidiary undertaking is valued at cost less any cumulative impairment losses in the charitable company's accounts.

17

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

1. Accounting policies (continued)

k) Stock

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash 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.

n) Creditors

Creditors and provisions are recognised where the charitable company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The group and charitable company only have 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 recognised at amortised cost using the effective interest method.

p) 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.

q) Defined contribution pension scheme

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.

r) Defined benefit pension scheme

The group participates in the Students' Union Superannuation Scheme, a defined benefit pension scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the pension scheme trustees on the advice of the actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the group. Under the terms of FRS102, the discounted present value of future cash flows under a deficit funding arrangement is included as a liability in these accounts and the change in that valuation from year to year is taken to the statement of financial activities.

18

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

1. Accounting policies (continued)

r) Defined benefit pension scheme (continued)

With effect from 30 September 2011, the scheme was closed to future accrual. Payments to the Students' Union Superannuation Scheme continued after the closure of the scheme in the form of deficit funding and levies.

s) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Defined benefit pension scheme

As described in note 1r to the financial statements, the charity recognises a liability for their share of the Students' Union Superannuation Scheme as the discounted present value of future cash flows. The assumptions behind the valuation of this scheme are set out in full in note 19 to the accounts.

19

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Income from donations
University block grant
University grant for rent
Donations
Other grant income
Total income from donations
Prior period comparative:
University block grant
University grant for rent
Donations
Total income from donations
Net income / (expenditure) and net
movement in funds		 Restricted
£
£
26,298
1,823,364
50,532
31,258
-
649,332
-
11,889
76,830
2,515,843
-
994,294
49,476
1,560,512
49,476
2,554,806
27,354
(38,963)
Restricted
£
£
-
1,399,304
-
509,011
35,417
-
-
34,510
35,417
1,942,825
Restricted
£
£
-
1,314,353
-
509,011
26,298
-
26,298
1,823,364
Unrestricted
Unrestricted
Unrestricted		 2023
Total
£
1,849,662
81,790
649,332
11,889
2,592,673
994,294
1,609,988
2,604,282
(11,609)
2024
Total
£
1,399,304
509,011
35,417
34,510
1,978,242
2023
Total
£
1,314,353
509,011
26,298
1,849,662

3. Income from donations

20

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

4. Income from charitable activities

Grants
Events
Societies income
Other charitable income
Total income from charitable activities
Prior period comparative:
Societies income
Events
Other charitable income
Total income from charitable activities
5.
Other trading activities
Trading income		 Restricted
£
£
83,500
-
-
46,390
40,229
-
2,800
30,125
126,529
76,515
Restricted
£
£
50,532
-
-
25,760
-
5,498
50,532
31,258
2024
Restricted
Total
£
£
£
-
552,481
552,481
Unrestricted
Unrestricted
Unrestricted		 2024
Total
£
83,500
46,390
40,229
32,925
203,044
2023
Total
£
50,532
25,760
5,498
81,790
2023
Total
£
649,332

All income from other trading activities in the prior year was unrestricted.

21

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

6. Total expenditure

Total expenditure
Staff wages (note 8)
Other staff costs
Trading expenditure
Marketing and advertising
Rental costs
Activities and services
Travel and subsistence
Insurance
Depreciation
Equipment
Office costs
Audit
Legal and professional
Trustee expenses
Pension deficit and levy (note 19)
Bank charges
Irrecoverable VAT
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising funds
£
253,310
-
263,106
24,291
-
-
-
-
-
-
-
-
-
-
-
-
-
540,707
327,770
868,477		 Charitable
activities
£
453,038
-
-
-
509,011
226,533
-
-
-
-
-
-
-
-
-
-
-
1,188,582
586,208
1,774,790		 Support and
governance
costs
£
486,617
34,964
-
-
-
-
9,613
25,458
6,049
26,078
216,550
12,475
46,195
1,856
36,181
8,889
3,053
913,978
(913,978)
-		 2024 Total
£
1,192,965
34,964
263,106
24,291
509,011
226,533
9,613
25,458
6,049
26,078
216,550
12,475
46,195
1,856
36,181
8,889
3,053
2,643,267
-
2,643,267

Total governance costs were £14,331 (2023: £15,547)

22

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

6.
Total expenditure (continued)
Prior period comparative:
Staff wages (note 8)
Other staff costs
Trading expenditure
Marketing and advertising
Rental costs
Activities and services
Travel and subsistence
Insurance
Depreciation
Equipment
Office costs
Audit
Legal and professional
Trustee expenses
Pension deficit and levy (note 19)
Bank charges
Irrecoverable VAT
Tax
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising funds
£
229,765
-
360,234
28,450
-
-
-
-
-
-
-
-
-
-
-
-
-
-
618,449
375,845
994,294		 Charitable
activities
£
352,269
-
-
-
509,011
172,474
-
-
-
-
-
-
-
-
-
-
-
-
1,033,754
576,234
1,609,988		 Support and
governance
costs
£
473,545
25,000
-
-
-
-
6,507
26,086
11,505
29,605
168,108
13,065
18,949
2,392
162,317
12,193
2,099
708
952,079
(952,079)
-		 2023 Total
£
1,055,579
25,000
360,234
28,450
509,011
172,474
6,507
26,086
11,505
29,605
168,108
13,065
18,949
2,392
162,317
12,193
2,099
708
2,604,282
-
2,604,282

23

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

7. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration (note 21)
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (excluding VAT)
Other services (excluding VAT)		 2024
£
6,049
231,162
57,585
1,856
12,285
350		 2023
£
11,505
231,162
76,966
2,392
11,700
300

During the year a total of £1,856 was reimbursed to or paid on behalf of 6 trustees for travel and subsistence, and other expenditure relating to their responsibilities as a trustee (2023: £2,392, 2 trustees).

In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements and to prepare and submit returns to the tax authorities.

8. Staff costs and numbers

Staff costs were as follows:

Staff costs and numbers
Staff costs were as follows:
Salaries and wages
Social security costs
Pension costs		 2024
£
1,072,020
87,743
33,202
1,192,965		 2023
£
947,489
77,788
30,302
1,055,579

One employee earned between £70,000 and £80,000 during the year (2023: One employee earned between £70,000 and £80,000).

The key management personnel of the charitable company comprise the Trustees and the senior management team. The total employee benefits of the key management personnel were £314,103 (2023: £335,344).

Full time
Students
Average head count		 2024
No.
37
79
116		 2023
No.
29
76
105

24

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The subsidiary company distributes any profits to the charity and therefore no corporation tax is payable

10. Tangible fixed assets
The group and the charity
Cost
At 1 August 2023
Additions in year
Disposals
At 31 July 2024
Depreciation
At 1 August 2023
Charge for the year
On disposals
At 31 July 2024
Net book value
At 31 July 2024
At 31 July 2023		 Plant and
machinery
£
£
69,142
20,580
-
-
-
(20,580)
69,142
-
69,142
20,580
-
-
-
(20,580)
69,142
-
-
-
-
-
Motor vehicles		 Office
equipment
£
382,075
2,502
-
384,577
376,221
6,049
-
382,270
2,307
5,854		 Total
£
471,797
2,502
(20,580)
453,719
465,943
6,049
(20,580)
451,412
2,307
5,854

25

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

11. Subsidiary undertakings

UHSU Enterprises Limited

The charitable company owns the whole of the issued share capital (1 ordinary £1 share) of UHSU Enterprises Limited, a company registered in England and Wales. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are donated to the charitable company. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Corporation tax
Profit for financial year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2024
£
966,048
(175,307)
790,741
(712,899)
77,842
-
77,842
2024
£
299,123
(299,122)
1		 2023
£
997,668
(260,164)
737,504
(719,992)
17,512
(708)
16,804
2023
£
162,151
(148,364)
13,787

12. Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Result for the year		 2024
£
2,257,077
122,925		 2023
£
1,763,535
(28,410)

26

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

13. Stock

2024
2023
£
£
Finished goods and goods for resale
36,050
37,611
Debtors
2024
2023
£
£
Trade debtors
31,024
23,243
Amounts owed by group undertakings
-
-
Other debtors
41,917
41,565
Prepayments and accrued income
62,796
87,660
135,737
152,468
The group
The group		 2024
2023
£
£
-
-
2024
2023
£
£
3,999
1,315
211,288
-
19,583
22,505
18,359
40,639
253,229
64,459
The charity
The charity		 2024
2023
£
£
-
-
2024
2023
£
£
3,999
1,315
211,288
-
19,583
22,505
18,359
40,639
253,229
64,459
The charity
The charity
64,459

14. Debtors

15. Creditors: amounts due within 1 year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals
Deferred income (note 16)
Deferred income
At 1 August
Deferred during the year
Released during the year
At 31 July		 2024
2023
£
£
32,288
31,147
-
-
22,463
20,622
60,928
130,635
114,707
65,439
68,785
82,512
299,171
330,355
2024
2023
£
£
82,512
78,147
68,785
82,512
(82,512)
(78,147)
68,785
82,512
The group
The group		 2024
2023
£
£
16,514
23,640
-
11,498
22,463
20,622
18,883
45,672
94,522
49,924
58,955
42,132
211,337
193,488
2024
2023
£
£
42,132
42,417
58,955
42,132
(42,132)
(42,417)
58,955
42,132
The charity
The charity		 2024
2023
£
£
16,514
23,640
-
11,498
22,463
20,622
18,883
45,672
94,522
49,924
58,955
42,132
211,337
193,488
2024
2023
£
£
42,132
42,417
58,955
42,132
(42,132)
(42,417)
58,955
42,132
The charity
The charity
42,132

16. Deferred income

Deferred income relates to grant income where criteria for recognition is not met.

27

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

17. Analysis of net assets between funds The group

Tangible fixed assets
Current assets
Current liabilities
Provisions for liabilities
Net assets at 31 July 2024
Prior year comparative
Tangible fixed assets
Current assets
Current liabilities
Provisions for liabilities
Net assets at 31 July 2023		 £
-
100,745
-
-
100,745
£
-
95,444
-
-
95,444
Restricted
funds
Restricted
funds		 £
2,307
725,300
(299,171)
(1,311,941)
(883,505)
£
5,854
715,552
(330,355)
(1,378,397)
(987,346)
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
2,307
826,045
(299,171)
(1,311,941)
(782,760)
Total
funds
£
5,854
810,996
(330,355)
(1,378,397)
(891,902)

28

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

18. Movements in funds

£
Restricted funds
Societies
66,595
Other
28,849
Student union activities
-
Total restricted funds
95,444
Unrestricted funds
General funds
(987,346)
Total unrestricted funds
(987,346)
Total funds
(891,902)
At 1 August
2023		 £
Restricted funds
Societies
66,595
Other
28,849
Student union activities
-
Total restricted funds
95,444
Unrestricted funds
General funds
(987,346)
Total unrestricted funds
(987,346)
Total funds
(891,902)
At 1 August
2023		 Income
£
40,229
35,417
86,300		 £
(36,391)
(36,119)
(86,300)
Expenditure		 £
-
2,165
-
Transfers
between
funds		 At 31 July
2024
£
70,433
30,312
-
95,444 161,946 (158,810) 2,165 100,745
(987,346) 2,590,463 (2,484,457) (2,165) (883,505)
(987,346) 2,590,463 (2,484,457) (2,165) (883,505)
(891,902) 2,752,409 (2,643,267) - (782,760)

Purposes of restricted funds 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. Student union activities These funds represent other university funding received for specific purposes.

Transfers

Transfer to restricted funds is to reflect a restricted fund overspend balance in the year.

Prior year comparative
Restricted funds
Societies
Other
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds		 Income
£
£
51,609
50,532
16,481
26,298
68,090
76,830
(948,383)
2,515,843
(948,383)
2,515,843
(880,293)
2,592,673
At 1 August
2022		 Income
£
£
51,609
50,532
16,481
26,298
68,090
76,830
(948,383)
2,515,843
(948,383)
2,515,843
(880,293)
2,592,673
At 1 August
2022		 £
(35,546)
(13,930)
Expenditure		 At 31 July
2023
£
66,595
28,849
68,090 76,830 (49,476) 95,444
(948,383) 2,515,843 (2,554,806) (987,346)
(948,383) 2,515,843 (2,554,806) (987,346)
(880,293) 2,592,673 (2,604,282) (891,902)

29

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

19. Provisions for liabilities: defined benefit pension scheme liability

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 excluding AVC's and insured pensioners with these assets representing 44% of the value of benefits that have accrued to members. The deficit on an ongoing funding basis amounted to £136,600,000.

The 2022 valuation shortfall recovery plan requires a monthly contribution requirement by each Participating Employer up to 31 May 2037 increasing by 5% each year. This is to cover additional liabilities resulting from the discovery of a historical change to the pension benefits which had not been documented correctly. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 2022 and will be formally reviewed following completion of the next valuation due with an effective date of 1 October 2026. In addition to the above contributions, the Union also pays its share of the Scheme's levy to the Pension Protection Fund.

The total amount of contributions paid into the Scheme by University of Hertfordshire Students' Union in respect of eligible employees during the year ended 31 July 2024 amounted to £Nil (2023: £Nil).

At the balance sheet date the charity had commitments to pay deficit funding contributions starting at £8,231 per month. This monthly payment is scheduled to increase by 5% per annum in October each year until 31 May 2037.

Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement the charity 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 value of provision

Present value of provision 2024
£
1,311,941		 2023
£
1,378,397

30

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

19. Provisions for liabilities: defined benefit pension scheme liability (continued) Reconciliation of opening and closing provisions

Provision at the start of the year
Deficit contributions paid
Unwinding of the discount factor (interest expense)
Impact of extension to repayment period
Impact of change in discount rate
Provision at the end of the year
Income and expenditure impact
Unwinding of the discount factor (interest expense)
Impact of extension to repayment period
Impact of change in discount rate
Annual levy
Assumptions
Rate of discount		 2024
£
1,378,397
(97,596)
59,685
-
(28,545)		 2023
£
1,317,803
(93,728)
39,170
262,866
(147,714)
1,311,941 1,378,397
2024
£
59,685
-
(28,545)
5,041		 2023
£
39,170
262,866
(147,714)
7,995
36,181 162,317
2024
%
5.04		 2023
%
4.66

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

20. Operating lease commitments

The group and charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due
Within 1 year
Within 1 - 5 years
Later than 5 years		 2024
£
231,162
858,430
13,244
The		 2023
£
231,162
924,650
178,186
group		 2024
2023
£
£
72,240
72,240
222,740
288,960
-
6,020
294,980
367,220
The charity		 2024
2023
£
£
72,240
72,240
222,740
288,960
-
6,020
294,980
367,220
The charity
1,102,836 1,333,998 294,980 367,220

31

University of Hertfordshire Students' Union

Notes to the financial statements

For the year ended 31 July 2024

21. Related party transactions Trustee remuneration

The Union's 13 (2023: 4) sabbatical officers throughout the year received total employee benefits, including employer pension contributions, totalling £57,585 (2023: £73,011). These payments are permitted under the charity's articles of association. In 2024 the charity's sabbatical officers rotated on and off of the board with a maximum of 4 on the board at any one time. (2023: all sabbatical officers were trustees throughout the year).

Md Sajal
Manoj Nagireddy
Akinyemi Lawal
Chinmay Vyas
Chizobam Ezechukwu
Divya Maheshwaram
Kamalkumar Virwal
Moyinoluwa Olaiya
Rohit Mahadevu
Olawale Komolafe
Padmavathi Valluri
Shalini Namani
Temitope Idowu
Total trustee remuneration		 Salary
£
2,718
22,028
2,280
6,877
2,666
3,620
1,356
3,498
2,513
3,312
2,599
1,174
2,943		 Pension
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 2024
£
2,718
22,028
2,280
6,877
2,666
3,620
1,356
3,498
2,513
3,312
2,599
1,174
2,943
57,585 - 57,585

UHSU Enterprises Limited

The charitable company's wholly owned subsidiary undertaking is UHSU Enterprises Limited, a registered company in England and Wales (number: 06666418). The company gifts available taxable profits to its parent undertaking. The balance owing from UHSU Enterprises Limited at 31 July 2024 was £211,288 (2023: £11,498 owed to UHSU Enterprises Limited). Transactions between the entities during the year have not been disclosed in accordance with section 33 of FRS 102.

22. Relationship to the University of Hertfordshire

The charitable company receives a substantial part of its income by means of grant funding from the University of Hertfordshire. The core grant amounted to £1,399,304 (2023: £1,314,353) in the year under review, along with an additional £126,473 of ad hoc unrestricted funding received from the University to fund other projects (2023: £2,544). The Board of Trustees are of the opinion that this financial assistance is not an influencing factor with regards to the formulation of charitable company policy nor does it have any effect on the internal management and decision making of the charitable company.

An accommodation grant amounting to £509,011 (2023: £509,011) was received in the year from the University. The buildings the group occupy are owned by the University of Hertfordshire and are provided effectively rent free as the accommodation grant received is paid back to the University at regular intervals throughout the year.

32