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← London School Of Economics Students' Union

2021-07-31-accounts

20 LSE Axiif STUDENTS, IUNION // LSESU ANNUAL REPORT 2021 21

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CONTENTS

1. CONTENTS 02

2. INTRODUCTION by Josie Stephens 04 General Secretary and Chair of the Trustee Board

3. INTRODUCTION by James Hann 06 Chief Executive

4. THE UNION AND ITS TRUSTEES 08

Statement of Trustee’s Responsibilities 10 5. OUR GOVERNANCE AND OPERATIONS 12 Employees 13 Senior Leaders Salaries 13 (Key Management Personnel)

6. OUR IMPACT 14 At a glance 16 Student Voice 17 Communities 18 20 Sabbatical Officer Projects Spotlight: Our Advice Service 21 7. LOOKING AHEAD 22 8. FINANCE SUMMARY 24 Income 24 Costs 24 Outcomes 25 Restricted Funds 25 Future Funding 26 Fixed Assets 26 Reserves 27 Reserves Policy 27 Risk Management 28 Relationship with the London School of Economics and Political Science (LSE) 29

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INTRODUCTION

BY JOSIE STEPHENS,

General Secretary & Chair of the Trustee Board

LSE Students’ Union (LSESU)

serves to provide its students with the best possible experience during their time at the University – from facilitating the activities of over 250 clubs, societies, and campaign groups, to tangibly improving the lives of students through our tailored Advice Service and affordable social calendar.

The demands of the 2020/21 academic year altered our typical approach, but we pioneered new ways to connect with a geographically dispersed student body.

The demands of the 2020/21 academic year altered our typical approach, but we pioneered new ways to connect with a geographically dispersed student body. At a time when students were silenced, we championed the student voice, earning national press coverage for our founding role in the ‘Students United Against Fees’ Campaign (SUAF).

for question 26 (“The Students’ Union (association or guild) effectively represents students’ academic interests”), taking us to third place in the Russell Group. Here, we bucked the sector wide trend. This is a testament to the perseverance, talent, and creativity of our staff and elected officers. 2020/21 was an academic year like no other, but for the LSE Students’ Union it reflects a year of success.

Despite the challenges of operating under Covid-19, we did not abandon our commitment to combatting some of LSE’s more enduring issues. Our elected officers successfully lobbied the school to complete a much-needed review of assessment regulations, and our staff launched the ‘Student Check-in’ – a programme to call every LSE student – to understand and support our members’ wellbeing.

Students’ trust in our organisation has continued to grow. This is best shown by the 11 percentage point increase in our NSS score

Josephine Stephens LSESU General Secretary 2021/22. Chair of the Board of Trustees 2021/22.

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INTRODUCTION

BY JAMES HANN, Chief Executive

It is important to reflect on the year and our journey, but what excites us most is the path in front of us.

2020/21 has been dominated by the Covid-19 pandemic , changing mobility restrictions and the Union’s continuous determination to support its members. LSESU is an organisation in the midst of a deep transformation. This transformation started two years ago when it split from a staff-sharing arrangement with Arts SU, continuing to this day as we strive to improve our services and operations. The rapid way in which the Union is improving can be observed in our National Student Survey (NSS) scores . Student satisfaction with the Union has risen faster than any other union in the UK. We are now the third highest ranked students’ union in the Russell Group, and we were at the bottom 3 years ago.

As a preview of what comes in this report, I can say this year has been marked by key changes and successes. We have:

external trustees to support student trustees. Implemented changes to how students are reimbursed for society and club expenses. We now reimburse students in up to 7 working days.

Awarded over £100,000 in hardship funding during the pandemic. Increased our staff satisfaction levels in 11 out of 13 areas.

In July 2020 the Union’s financial position demanded significant staffing cuts to achieve stability. Then came the pandemic, meaning a £450,000 loss of income due to mobility restrictions. Despite these challenges, LSESU achieved a surplus this year, and also reached its reserves target three years ahead of schedule. This means the Union is working within its means and can now accordingly plan for its future. To be in a sustainable financial position is a significant achievement.

We know that while we have made some great steps forward, we have a long way to go. By the end of the coming year the organisation will have a new three-year strategy, focusing on our three promises to LSE students:

1. We promise to make your voice heard

2. We promise to be a union for all LSE students

3. We promise to support your wellbeing

It is important to reflect on the year and our journey, but what excites us most is the path in front of us.

James Hann LSESU Chief Executive

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THE UNION AND ITS TRUSTEES

LSESU is a not-for-profit organisation run by and for London School of Economics and Political Science (LSE) students. Our aim is to help our members make the most of all the lifechanging experiences open to them during their studies at the university.

Founded in 1897, LSESU is a charity and a company, operating under the 1994 Education Act and registered with the Charity Commission.

All LSE students automatically become LSESU members when they enrol at LSE. By joining us, our members gain access to all of our groups – such as societies, athletics union clubs, and campaigns – and services – such as our gym and independent Advice Service.

Since we are a member-led organisation, any member can step up for election in a range of elected representation posts, ranging from volunteer trustees and part-time officers to full time paid sabbatical officers. Our members can also use their voice and vote in regular elections , Union General Meetings (UGM) , and Annual General Meetings (AGM).

Our Trustee Board has overall responsibility for the legal, strategic, and financial health of the Students' Union. This means that it is the ultimate decisionmaker and has collective responsibility for all activities at LSESU. The Trustee Board makes sure we're the best we can be today, while also thinking about how we can be better for the future. Trustees are guided by three main considerations:

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To make sure To ensure To ensure that everything that the everything we do Union is we do is BENEFITS FINANCIALLY LEGALLY our students SOLVENT permissible

The Trustee Board consists of five trustees and staff teams. Newly sabbatical officers, four students and elected or appointed trustees are one external member (or more) invited to attend one or more board appointed by the trustees meetings before taking up their themselves. Internal trustees are positions. elected by our members during first (Michaelmas) or second (Lent) term The board undertakes regular elections, serving up to two years. self-assessment and further The trustees work closely with development initiatives as required, LSESU staff and make major ensuring commitment to continuous decisions about the activities and improvement and effectiveness. services of the Union.

The Students’ Union’s governing All trustees undertake an induction document is its Constitution programme and are given briefings on (Memorandum and Articles of the organisation’s operations and Association) , supported by the goals. The induction programme, LSESU Byelaws . These set out in delivered by the company secretary, detail the rules that we follow. Full covers the nature of the trustee role, details of current trustees, those who provides an understanding of the served in 2019/20, and who joined or legal responsibilities of being a left the Board in the period from 31st trustee, and provides an appreciation July 2020 up to the date of this of LSESU’s vision, mission and values, report are shown on page XX. as well as the relationship between

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STATEMENT OF TRUSTEE’S RESPONSIBILITIES

The trustees (who are also

directors of the charitable company for the purpose of company law) are responsible for preparing the Trustees’ Annual Report and financial statements in accordance with applicable law and regulations.

Company law requires the trustees prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law.

Under company law the trustees must not approve the financial statements unless they are satisfied they give a true and fair view of the state of affairs of the charitable company and of its net incoming resources for that year.

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 Statement of Recommended Practice.

Make judgments and accounting estimates that are reasonable and prudent.

State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

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

The Board of Trustees have overall responsibility for ensuring that the charitable company has an appropriate system of controls, financial and otherwise. They are also responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011, and the provisions of the governing document.

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the detection and prevention of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the financial and other information included on the charity’s website.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees’ report is approved has confirmed that:

On behalf of the Trustee Board

Josephine Stephens

LSESU General Secretary 2021/22. Chair of the Board of Trustees 2021/22.

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05 EMPLOYEES In 2020, the Union employed an average of OUR GOVERNANCE 39 STAFF AND OPERATIONS { and the total number LSESU OPERATES ON DEMOCRATIC PRINCIPLES, working for of student staff employed in the year was and with our members. Our members are represented by people they elect, such as trustees, part-time officers, and full-time Sabbatical Officers. The Union holds regular Union General Meetings (UGM) through which students are able to propose and vote on motions. 114

Student representation is delegated to the General Secretary who, along with fellow student ofcers , focuses on policy, lobbying and advocacy in order to ensure that LSE’s students are heard in university fora. The Sabbatical Officer team is made up of four full time officers (Education Officer, Activities and Development Officer, Community and Welfare Officer, and the General Secretary), and one part-time Postgraduate Students’ Officer.

The Union also employs a number of non-student core staff to provide continuity, consistency and knowledge in the management of its many activities. Day-to-day operational and staff management is delegated to the Chief Executive who is accountable to the Trustee Board for strategy implementation and operational performance.

Staff are employed to provide key services such as our Advice Service, support for student groups, academic representation, and our range of catering facilities. Staff are overseen by senior leaders.

The Trustee Board meets at least five times per year to receive reports from subcommittees, officers, staff, and the Chief Executive, to review the Union’s strategic and operational performance, and to review and agree organisational policies (see page 28).

SENIOR LEADERS SALARIES (Key Management Personnel)

The remuneration of senior management is consistent with human resources policies across the organisation, with the policy objective of ensuring that they are provided with appropriate incentives to encourage enhanced performance and are, in a fair and responsible manner, rewarded for their individual contributions to the Union’s success.

The appropriateness and relevance of the remuneration policy is reviewed periodically including reference to comparisons with other unions to ensure that the Union remains sensitive to the broader issues of pay and employment conditions elsewhere.

Delivery of the Union’s charitable vision and purpose is primarily dependent on our key management personnel. Staff costs are the largest single element of our charitable expenditure.

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OUR IMPACT

2020/21 was marked by disruption due to Covid-19. In its mission to support its members, the Union refocused its efforts to support students continuing their education amidst the pandemic and its effects on learning and welfare. To that end, the Union opened up more funding for hardship, focused lobbying and representation onto addressing the consequences of the pandemic, and continued supporting campus student communities in order to ensure that students could still enjoy the LSE community despite disruptions.

The following sections describe some of the impact the Union had for its members across the year. The effect of improved operations and support came to light in our most recent National Student Survey (NSS) scores for question 26 (“The students’ union (association or guild) effectively represents students’ academic interests”). Our NSS score for 2021 rose for a second year on a row to 59% – an increase on 2020's results ( 48% ) of 11 percentage points and of 15 percentage points from 2019 ( 34% ).

These score increases put LSESU among the most improved unions in the country.

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AT A GLANCE

LED NATIONAL AND LSE-FOCUSED CAMPAIGNS FOR FEE COMPENSATION DUE TO COVID-19 DISRUPTION OF EDUCATION.

11%

increase in NSS score for Question 26 (“The students’ union (association or guild) effectively represents students’ academic interests”).

Secured mandatory consent education for incoming students (first delivery in 2021/22).

£100,000+ AWARDED TO STUDENTS BY OUR HARDSHIP FUND.

Inaugurated a fully refurbished and re-branded gym.

653 re-branded gym. individual advice CAMPAIGNED FOR FAIRER service enquiries. ASSESSMENT POLICIES AMIDST COVID-19, 93% of users reported INCLUDING A SUCCESSFUL they would recommend PUSH TO REJECT ONLINE the Advice Service to PROCTORING IN ONLINE other students. ASSESSMENTS.

“The LSESU team has been super nice and very well informed and knowledgeable. They provided me a very quick and informed response and I felt supported. I highly recommend to all other LSE students to contact them for any doubt!” Advice Service User

engagement across the sector, LSESU’s elections performed very well. 2308 students voted in our Lent Term elections, and 1749 students voted in our Michaelmas Term elections. In Lent Term 2021, we launched renewed efforts to improve candidate retention, which saw fewer candidates withdraw during the election process ( 65 candidates in total at the start of voting, nine more than 2019/20 Lent Term elections). LSESU also worked hard to ensure that the support was there for candidates running digital campaigns. Despite the challenging circumstances, 82.4% of candidates reported they felt supported through the election process in the Lent Term elections.

Representing students is at the core of our mission. Our student voice and representation team ensure that all our representative and democratic channels are run effectively and openly. LSESU is responsible for training and supporting academic representatives, enabling them to effectively carry out their role with confidence. This year, we registered 643 academic representatives – 610 of which attended our training sessions (a considerable increase from 2019/20, when 549 registered and 376 were trained ).

The successful election of student leaders to positions across the Union is integral to the functioning of the organisation. Despite the pandemic’s continued impact on student

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COM MUN ITIES

Student groups such as societies and Athletics Union (AU) clubs are at the core of our social Beyond refurbishing, the team also conducted a full and community offer to our members. Societies and clubs are led by students elected by members and re-brand of the gym supported by our communities team. Beyond that, our communities team also runs our physical activity offer, including active lifestyle programming and our gym. We successfully undertook a complete refurbishment of the LSESU Gym in June of this year. We now have a brand-new gym facility for all LSE students and staff to enjoy. The new gym includes the latest innovations that fitness has to offer, to provide our members with an enhanced fitness experience. The installation includes the new Endurance Series cardio equipment and a brand-new functional training room.

The team also supported the AU in running the AU For All Campaign across the year. This included raising money for the Movember Campaign in November 2020 and various social media campaigns to raise awareness during LSESU This Girl Can and Pride Weeks. The AU also engaged over 200 students in an AU Strava Community.

“It was extremely useful and refreshing for me to know the LSESU had communicated to LSE leadership the need to provide special treatment to students with disabilities for whom Covid-19 pandemic had greater impact. LSE would be a more inclusive institution if LSESU were heard.” Advice Service User

The communities team also supported our student societies and projects, through continuous assistance from the societies team, and support from the Unionmanaged Students’ Union Fund (SUF). Our online and offline training offer for student group committee leaders was met with similar levels of satisfaction and attendance as previous years (70%). The SUF allows societies and students (either individually or in groups) to apply for funds in order to run a project with educational, community building, or wellbeing impact. This year, the SUF dispensed £82,408. Most activities had educational aims (69%), with the rest of accepted applications aiming to improve community building (12%) and wellbeing (19%).

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SPOTLIGHT: OUR ADVICE SERVICE

SABBATICAL OFFICER PROJECTS

Our Sabbatical Officers are at the core of our representation work. Depending on their role, they have core responsibilities (such as attending stakeholder meetings, internal panels, and LSE fora such as boards and committees) as well as their own projects based on campaigning commitments. Some of these projects included only one Sabbatical officer, and others were done as a team.

This year, members of the sabbatical team:

Led campaigns for tuition fee compensation due to Covid-19 disruption, both at the LSE and national level. LSESU founded and managed the national Students United Against Fees coalition. The LSE-level campaign also secured rights for tenants in student accommodations, such as the lowering of rent and the ability to void contracts.

Successfully rejected the use of online proctoring for online assessments.

Conducted a full scope review of LSE’s Assessment Regulations, publishing a report and successfully lobbying the university to conduct its own review over the next year, utilising our report within the evidence base.

Continued work on achieving sexual violence support objectives. Successfully lobbied for the hiring of a full-time Sexual Misconduct Advisor and the introduction of mandatory consent education. Introduced policies to prevent drink spiking at our venues.

Led a review of our policies for inclusion of Postgraduate students in all our operations.

In this year’s report we are highlighting the work conducted by our Advice Service. The Advice Service provides free, independent advice to all LSE students on housing and academic matters.

Across this academic year, the Advice Service saw cases rise by 21% (653 individual student inquiries in 2020/21, compared to 538 in 2019/20). This sharp rise is attributed to both the financial and educational disruption caused by Covid-19 and an increased awareness of our service. The service launched two social media channels (Twitter and StudentHub) as well as a relaunched Advice website to provide better service visibility and proactive support.

Despite the sharp rise in cases, the team continued to deliver excellent support to students with over 93% of students feeling more informed following their interactions with the service and 91% reporting that they would recommend the Advice Service to other students as per feedback surveys.

The Advice Service also manages a Hardship Fund available to all LSE students who face unexpected financial strains during their studies. The fund helps cover basic living expenses, such as rent and food, at a critical time when students have no other options available to them. An initial budget of £42,933 was quickly depleted based on increased demand due to Covid-19. The Union secured more funding from three sources throughout the year: he LSE Financial Support Office, additional funding from LSE who were able to secure hardship funding from the government and the Student Union Fund.

This year saw a decrease in the number of awards (80 compared to 95 in 2019/20), however the amount of the awards in total and average increased. The hardship fund dispensed £100,038 (compared to £89,767 in 2019/20), an average of £1250 per award (compared to £945 in 2019/20).

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The next year will see:[A newly developed ] 3-year strategic plan. LOOKING[A full review of all our ] democratic procedures.[[An updated an improved ]] “Welcome” offer for AHEAD consent education.

The next year will see:

[[An updated an improved ]] “Welcome” offer for incoming students, including consent education.

[New Union-operated student ] community areas (sports, dance, and music facilities) in the new Marshall Building.

Despite our pride in the successes of this year, we are committed to continuously developing the Union for the benefit of our members.

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08 FINANCE SUMMARY

Income

Our unrestricted income for the year decreased to £3,488,188 ( £3,727,840 in 2020) primarily due to reduced trading income as a result of ongoing Covid-19 restrictions on outlet trading and reduced student numbers on campus.

Costs

Total expenditure from unrestricted funds before

pensions deficit funding was £3,258,450 (£3,716,788 in 2020) . Total expenditure from unrestricted funds including pensions deficit funding was £3,313,183 (£4,093,767 in 2020)

Outcomes

The outcome for the year was a general funds surplus of £229,738 before pension funding deficit

(£11,052 surplus in 2020) which the trustees deem a satisfactory result. After the pension charges, this results in a general funds surplus of £175,005 (£365,927 deficit in 2020).

Restricted Funds

Restricted funds are funds for which LSESU acts as a custodian. These funds include monies held for Student Groups (ratified sports clubs and societies, which are branches of LSESU). These funds are raised by groups for themselves, or raised through grants received from LSE and other external organisations for specific student-facing projects. During the year there was a net surplus on restricted funds of £305,129 ( £99,461 surplus in 2020). There was a transfer of £248,857 from this fund to general fund with the agreement with the donor.

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Fixed Assets

Future Funding Fixed Assets LSESU has sufficient New gym equipment was funds to meet its future purchased during the . obligations for 2021/22, but an year at a cost of £125,339 increase in funding remains a priority. The subvention grant from LSE for 2021/22 has been confirmed at £1,085,343 ( £1,085,343 in 2020/21).

Reserves

Unrestricted general reserves at the end of the year were £381,083 ( £144,949 in 2020). The unspent Student Union Fund from previous years amounting £248,857 was transferred to general reserves with the permission of the donor. £129,995 was transferred to a designated fixed asset reserve representing the value of the new gym equipment. The £1,750,605 SUSS pension liability is shown as a separate designated fund as the payments do not fall due immediately (2020 £1,808,338 ).

Reserves Policy

LSESU reserves policy is that general (unrestricted) reserves should be £300,000 . At this level, we believe that we would be able to continue the essential student-facing activities of the organisation in the event of a significant decline in nonSchool funding, whilst allowing time to re-establish or re-focus income generating activities. The Trustees had agreed to generate annual budget surpluses each year in order to achieve the £300,000 general reserves level over a number of years, however this level has now been achieved as a result of the annual surplus and transfer of the unspent Students’ Union Fund. The Trustees will review the reserves policy during 2021/22.

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Risk Management

The Trustee Board is responsible for LSESU’s risk management and the effectiveness of internal controls. On behalf of the trustees, the Senior Leadership Team performed a review of major risks and presented the outcome and the mitigating measures to the Audit and Risk Committee in February 2021. The key risks are data protection, key information sets, democracy and commercial services. Mitigating steps were identified such as data protection training, increasing the number of external Trustee Board Members, better communication and promotion of the work the Student Union has done, and reviewing commercial services and democratic process.

Relationship with the London School of Economics and Political Science (LSE)

The Union receives a block grant from the School and occupies spaces in School-owned buildings. The occupation and use of these spaces is set out in a Memorandum of Understanding between LSESU and the School. In addition to the provision of space, the School also pays for utilities, caretaking and cleaning staff. This support is intrinsic to the relationship between the School and LSESU. Although LSESU continues to generate supplementary funding from various mutual trading activities, it will always be dependent on the School’s support. The Trustees consider it reasonable to anticipate that this or equivalent support from the School will continue for the foreseeable future, as the Education Act 1994 imposes a duty on the School to ensure the financial viability of its student representative body in one form or another. The Trustees therefore consider the Union to be financially viable for the foreseeable future.

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LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the year ended 31 July 2021

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION FOR THE YEAR ENDED 31 JULY 2021

(registered company no. 07710669)

Board of Trustees Josephine Stephens Appointed 1 July 2021 William Barber Bali Birch-Lee Resigned on 30 June 2021 Eleanor Duplock Resigned on 30 June 2021 Morgan Fairless Appointed 18 November 2020, Resigned 30 June 2021 Laura Goddard Resigned on 30 June 2021 David Gordon Resigned on 30 June 2021 Edward Hall Appointed 1 July 2021 Issam Jamaleddine Resigned on 30 June 2021 Faiso Kadiye Appointed 1 July 2021 Iye're Laditi Appointed 1 July 2021 ShuYi Lee Appointed 1 July 2021 Robyn McAlpine Appointed 1 July 2021 Mohammed Umar Appointed 1 July 2021 Edouard Panciulo Appointed 1 July 2020 Inka Pearson Resigned on 30 June 2021 Yusuf Rafique Resigned on 30 June 2021 Company Secretary Nicholas Smith Principal Officers James Hann Chief Executive Officer Jennifer Hastings (left 28 May 2021) Head of Student Voice Sarah Chowdry-Grant Head of Student Communities Jasmeet Chana (left 14 Aug 2020) Head of Marketing and Communications Ricardo Vishinho (appointed 1 June 2021) Head of Student Voice Freda Chisambi (appointed 28 September 2020) Head of Communications and Marketing Company reg. no. 7710669 Charity reg. no. 1143103 Registered office LSE Students’ Union Saw Swee Hock Student Centre 1 Sheffield Street London, WC2A 2AP Auditors Knox Cropper LLP 65 Leadenhall Street London EC3A 2AD Solicitors Bates Wells and Braithwaite 2 – 6 Cannon Street London, EC4M 6YH Bankers NatWest Connaught House 65 Aldwych London, WC2B 4DS

We have audited the financial statements of London School of Economics Students’ Union (the ‘charitable company’) for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Our responsibilities and the responsibilities of the 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.

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.

/Continued …

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LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION FOR THE YEAR ENDED 31 JULY 2021

(Continued)

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its 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 trustees

As explained more fully in the trustees’ responsibilities statement 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 the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

/Continued …

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION FOR THE YEAR ENDED 31 JULY 2021

(Continued)

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:

Our approach was to check that the income from grants and donations were properly identified and accurately disclosed, that expenditure complied with the control procedures and was appropriately charged. We also reviewed the transactions with the subsidiary company, major journal adjustments along with unusual transactions and considered the identification and disclosure of related party transactions.

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

Use of our report

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

Shoaib Arshad (Senior Statutory Auditor) For and on behalf of:

Knox Cropper LLP

Chartered Accountants & Statutory Auditors 65 Leadenhall Street

London

EC3A 2AD

28 October 2021

Knox Cropper LLP Charterted Accountants is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

Company limited by guarantee (registered company no. 07710669)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating the Income and Expenditure Account) For the year ended 31 July 2021

Unrestricted
Funds
Note
2021
£
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2
3,352,407
Charitable activities
5
-
Other trading activities
3
97,861
Investments
4
185
Other
6
37,735
TOTAL
3,488,188
EXPENDITURE ON:
Charitable activities
3,258,450
Other costs
Pension costs - Past Service Deficit
54,733
TOTAL EXPENDITURE
7
3,313,183
175,005
Transfer between funds
17
248,857
NET MOVEMENT IN FUNDS
423,862
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 1 AUGUST 2020
(1,663,389)
TOTAL FUNDS AT 31 JULY 2021
(1,239,527)
£
Net income/(expenditure)		 Restricted
Funds
2021
£
150,000
447,576
-
-
-
597,576
292,447
-
292,447
305,129
(248,857)
56,272
925,391
981,663
**£ **		 Total
Funds
2021
£
3,502,407
447,576
97,861
185
37,735		 Total
Funds
2020
£
3,377,133
1,316,288
589,927
3,432
7,348
4,085,764 5,294,128
3,550,897
54,733		 5,183,615
376,979
3,605,630 5,560,594
480,134
-		 (266,466)
-
480,134
(737,998)		 (266,466)
(471,532)
(257,864)
£		 (737,998)
£

BALANCE SHEET As at 31 July 2021

Notes
Charity
2021
£
FIXED ASSETS
Tangible assets
11
#REF!
Investments
-
#REF!
CURRENT ASSETS
Stocks
20,231
Debtors
12
261,964
Cash at bank and in hand
1,545,887
1,828,082
CREDITORS: amounts falling due
within one year
13
(546,709)
NET CURRENT ASSETS
1,281,373
TOTAL ASSETS LESS CURRENT
LIABILITIES
#REF!
CREDITORS: amounts falling due
after one year
14
1,645,029
TOTAL NET LIABILITIES
#REF!
FUNDS
Unrestricted funds:
Designated funds
17
(1,620,610)
General fund
17
381,083
(1,239,527)
Restricted funds
17
981,663
(257,864)
£		 Group
Charity
2021
2020
£
£
129,995
11,594
-
#REF!
129,995
#REF!
20,231
20,767
261,964
321,517
1,545,887
1,224,762
1,828,082
1,567,046
(570,912)
(567,018)
1,257,170
1,000,028
1,387,165
#REF!
(1,645,029)
1,709,917
(257,864)
£
#REF!
(1,620,610)
(1,808,338)
381,083
144,949
(1,239,527)
(1,663,389)
981,663
925,391
(257,864)
£
(737,998)
£		 Group
2020
£
11,594
-
11,594
20,767
321,517
1,224,762
1,567,046
(606,721)
960,325
971,919
(1,709,917)
(737,998)
£
(1,808,338)
144,949
(1,663,389)
925,391
(737,998)
£

The financial statements have been prepared in accordance with the special provisions in Part 15 of the Companies Act 2006 relating to small companies and section 1a of the Financial Reporting Standard 102.

The financial statements were approved, and authorised for issue, by the Board of Trustees on 28 October 2021 and signed on their behalf by:-

JOSEPHINE STEPHENS, Chair of Board of Trustees

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CASH FLOW STATEMENT For the year ended 31 July 2021

Cash flows from operating activities
Surplus/(deficit) for the financial year
Adjustments for:
Depreciation
Decrease in stocks
Decrease in debtors
((Decrease))/increase in creditors
Investment income
Cash flows from investing activities
Purchase of intangible fixed assets
Return on investment - interest receivable
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 August 2020
Cash and cash equivalents at 31 July 2021		 2021
2020
£
£
480,134
(266,466)
6,938
15,557
536
8,609
59,553
281,938
(100,697)
72,949
(185)
(3,432)
446,279
109,155
(125,339)
(4,126)
185
3,432
(125,154)
(694)
321,125
108,461
1,224,762
1,116,301
1,545,887
£
1,224,762
£

Cash and cash equivalents at 31 July 2021

Components of cash and cash equivalents

At 1 At 31 July August 2020 Cashflows 2021 Cash at bank and in hand £ 1,224,762 £ 321,125 £ 1,545,887

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

1. ACCOUNTING POLICIES

Basis of preparation of financial statements

The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared under the historical cost convention. They have been prepared in accordance with applicable United Kingdom accounting standards, the requirements of the Statement of Recommended Practice 'Accounting and Reporting by Charities' (SORP 2019), in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) applicable to smaller entities (under section1a) and the Companies Act 2006. The presentational currency of the financial statements is Pound Sterling (£).

Going Concern

After making enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees' Responsibilities in the Annual Report.

Company status

The London School of Economics Students' Union is an incorporated charity: a private limited company limited by guarantee and charity registered in the UK (Charity number 1143103. Company Number: 07710669). Its registered office is at LSE Students' Union, Saw Swee Hock Student Centre, 1 Sheffield Street, London, WC2A 2AP.

The principal activities are campaigning, representation, provision of social activities and the organisation of sporting and recreational activities and opportunities. The Charity meets the definition of a public benefit entity.

Fund accounting

London School of Economics Students' Union administers and accounts for a number of charitable funds, as follows:-

Unrestricted Funds representing unspent income which may be used for any activity/purpose at the Trustees' own discretion;

Restricted funds raised and administered by the Union for specific purposes as determined by students, such as Club and Societies Accounts, as well as revenue received for purposes specified by the donor and also (if not material enough to require a separate column in the SoFA) any small capital grants received from the School.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

Incoming resources

All income and capital resources are recognised in the accounts when the entitlement to the income or endowment arises, there is probable economic benefit to the Union and the amount can be reliably quantified.

Grants received are credited to income according to the period to which they relate and treated as unrestricted unless restrictions are specified by the provider relating to spending of that income, in which case they are treated as restricted.

Income from commercial activities includes amounts received in exchange for supplying goods and services through the Union's bar, catering, gym and retail outlets, with amounts recognised based on the date of sale.

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

Stock

Stock is valued at the lower of the cost or net realisable value.

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.

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.

Creditors and provisions

Media sale income includes sponsorship relating to Welcome Fair stalls, which is accounted for when the contractual entitlement to the income arises, and NUS Extra card income which is accounted for based on sales arising in the period.

Club and societies' income includes membership, sponsorship and grant income which is treated as restricted.

Resources Expended

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities. Expenditure includes irrecoverable VAT and comprises the direct and indirect costs of delivering public benefit. Governance costs are those incurred for compliance with constitutional and statutory requirements, such as the annual audit, annual elections and training for sabbatical officers.

Other central overhead costs, as well as governance costs, are apportioned to charitable and other projects/activities on a usage basis, pro rata to the total costs of each project or activity undertaken.

Tangible fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation. Assets are not capitalised below £3,000 cost per item/set. Equipment, fixtures and fittings are included at cost. Depreciation is provided at the following annual rates in order to write the cost of assets off over their estimated useful lives:-

Creditors and provisions are recognised where the charity 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.

Financial Instruments

The charity holds only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments include cash debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at fair value. Cash is cash at bank and in hand.

Pensions

Retirement benefits to employees of the Union are provided through two pension schemes, one defined benefit (SUSS), the other defined contribution (Scottish Widows).

In relation to the multi-employer defined benefit scheme which is closed to future accrual, as set out in note 15, full provision is made for the total agreed contributions payable to meet the fund deficit. The provision is based on the total contributions payable at the year end, discounted to net present value.

In relation to the defined contribution scheme, as set out in note 16, contribution are accounted for as they fall due.

Judgements and key sources of estimation uncertainty

Fixtures and Fittings 25% per annum on cost Computer and Office Equipment 25% per annum on cost Gym equipment 20% per annum on cost Improvements to Buildings 10% per annum on cost

Judgements and key sources of estimation uncertainty are detailed in the above accounting policies, where applicable. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are that of the SUSS pension scheme deficit as disclosed in note 15.

Termination benefits

Termination benefits are accounted following a commitment by legislation, by contractual or other agreements with employees to make payments (or provide other benefits) to employees when the Union terminates their employment.

Leased assets

Rentals payable under operating leases are charged as expenditure on a straight line basis over the period of the lease.

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

2. DONATIONS AND LEGACIES

Unrestricted
Funds
2021
£
University Block Grant
1,085,343
University other grants
533,402
Government Grants
264,939
Space Grant
1,468,723
Capital Grant
-
3,352,407
£
Comparative donations and legacies
Unrestricted
Funds
2020
£
University Block Grant
1,058,871
University other grants
480,698
Government Grants
144,930
Space Grant
1,442,634
Capital Grant
-
3,127,133
£
3.
INCOME FROM OTHER TRADING ACTIVITIES
Unrestricted
Funds
2021
£
Trading income
88,043
Other generated income
9,818
97,861
£
Comparative income from other trading activities
Unrestricted
Funds
2020
£
Trading income
577,559
Event income
12,368
589,927
_£ _		 Restricted
Funds
2021
£
-
150,000
-
-
-
150,000
£
Restricted
Funds
2020
£
-
250,000
-
-
-
250,000
£
Restricted
Funds
2021
£
-
-
Nil
£
Restricted
Funds
2020
£
-
-
Nil
£		 Total
Funds
2021
£
1,085,343
683,402
264,939
1,468,723
-
3,502,407
£
Total
Funds
2021
£
88,043
9,818
97,861
**£ **		 Total
Funds
2020
£
1,058,871
730,698
144,930
1,442,634
-
3,377,133
_£ _
Total
Funds
2020
£
1,058,871
730,698
144,930
1,442,634
-
3,377,133
_£ _
Total
Funds
2020
£
577,559
12,368
589,927
_£ _
Total
Funds
2020
£
577,559
12,368
589,927
_£ _

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

4.
INVESTMENT INCOME
Unrestricted
Funds
2021
£
Interest receivable from:
Bank interest
185
185
£
Comparative investment income
Unrestricted
Funds
2020
£
Interest receivable from:
Bank interest
3,432
3,432
£
5.
INCOME FROM CHARITABLE ACTIVITIES
Unrestricted
Funds
2021
£
Clubs and Societies
-
Nil
£
6.
OTHER INCOME
Unrestricted
Funds
2021
£
Other income
37,735
37,735
£
Comparative other income
Unrestricted
Funds
2020
£
Other income
7,348
7,348
_£ _		 Restricted
Funds
2021
£
-
Nil
£
Restricted
Funds
2020
£
-
Nil
£
Restricted
Funds
2021
£
447,576
447,576
£
Restricted
Funds
2021
£
-
Nil
£
Restricted
Funds
2020
£
-
Nil
£		 Total
Funds
2021
£
185
185
£
Total
Funds
2021
£
447,576
447,576
£
Total
Funds
2021
£
37,735
37,735
**£ **		 Total
Funds
2020
£
3,432
3,432
_£ _
Total
Funds
2020
£
3,432
3,432
_£ _
Total
Funds
2020
£
1,316,288
1,316,288
_£ _
Total
Funds
2020
£
7,348
7,348
_£ _
Total
Funds
2020
£
7,348
7,348
_£ _

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

7. RESOURCES EXPENDED

Cost of charitable activities
Trading activities
Student Communities
Student Representation
Support and advice
Marketing and
Communications
Clubs and socieites
Total charitable
expenditure		 Cost of
sales
£
16,910
-
-
-
-
-
16,910
**£ **		 Staff Costs
£
545,226
206,000
434,425
89,871
149,352
-
1,424,874
**£ **		 Other direct
costs
£
43,329
158,865
23,921
71,992
-
203,738
501,845
**£ **		 Central
costs
£
681,198
251,111
532,610
110,361
31,988
-
1,607,268
**£ **		 Total
2021
£
1,286,663
615,976
990,956
272,224
181,340
203,738
3,550,897
**£ **

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

7. RESOURCES EXPENDED (continued)

Comparative resources expended

Cost of charitable
activities
Trading activities
Student Communities
Student Representation
Support and advice
Marketing and
Communications
Clubs and socieites
Total charitable
expenditure		 Cost of
sales
£
200,992
-
-
-
-
-
200,992
_£ _		 Staff Costs
£
628,810
262,720
432,556
79,037
152,773
-
1,555,896
_£ _		 Other direct
costs
£
99,679
322,543
28,846
45,117
-
1,252,437
1,748,622
_£ _		 Central
costs
£
745,871
304,673
498,406
96,038
33,117
-
1,678,105
_£ _		 Total
2020
£
1,675,352
889,936
959,808
220,192
185,890
1,252,437
5,183,615
_£ _

Central costs included in the resources expended

Central costs included in the resources expended
Cost of charitable activities
Trading activities
Student Communities
Student Representation
Support and advice
Marketing and Communications
Total charitable
expenditure		 Staff Costs
£
144,753
53,982
114,496
23,724
6,877
336,955
**£ **		 Rent
£
550,338
205,233
435,303
90,198
26,144
1,281,072
**£ **		 Support
costs
£
130,860
45,878
97,307
20,163
5,844
294,208
**£ **		 Total
£
825,951
305,093
647,106
134,085
38,865
1,912,235
**£ **

Central costs included in the resources expended

Staff Costs
£
Cost of charitable
activities
Trading activities
104,711
Student Communities
44,089
Student Representation
72,124
Support and advice
13,898
Marketing and Communications
4,792
Total charitable
expenditure
234,822
£
Resources expended include:
Auditors’ remuneration:
Audit fee
Other services
Depreciation
- on owned assets		 Rent
£
563,113
237,100
387,865
74,738
25,772
1,262,816
_£ _		 Support
costs
£
182,758
67,573
110,541
21,300
7,345
382,172
£
2021
9,525
1,230
6,938		 Total
£
850,582
348,762
570,530
109,936
37,909
1,879,810
_£ _
2020
9,250
1,200
15,557

Details of staff costs are given in Note 9.

Details of Support costs is given in Note 8.

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

8. SUPPORT COSTS

SUPPORT COSTS
Irrecoverable VAT
Bank Charges
Insurance
Consultancy and Professional Fees
Affiliations and subscriptions
Auditors’ remuneration
Training and Development
Telephone
Depreciation (non-commercial assets)
Office Stationery and Minor Equipment
Recruitment Expenses
Website costs
Sundry Costs		 Total
2021
£
143,722
3,130
30,626
15,368
28,495
10,755
9,529
8,423
2,622
14,983
8,033
15,886
2,636
294,208
**£ **		 Total
2020
£
139,620
7,333
36,327
18,822
42,400
10,450
9,819
7,911
8,700
28,786
4,480
19,529
47,995
382,172
_£ _

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

9.
STAFF NUMBERS AND COSTS
Wages and salaries (Full Time)
Wages and salaries (Part Time)
Social security costs
Pension costs - current services costs
Other staff costs
Pension costs - past services deficit
Permanent staff
Student and caual staff
The cost of key management was as follows:
Sabbatical Officers
Senior management
Number of Sabbatical Officers
The average weekly number of employees, head-count, during the
period was:		 2021
£
1,141,668
124,967
111,215
29,367
17,657
1,424,874
54,733
1,479,607
£
2021
Number
39.0
42.0
81.0
2021
£
143,402
221,455
364,857
£
5		 2020
£
1,232,529
173,385
120,344
29,100
538
1,555,896
376,979
1,932,875
_£ _
2020
Number
43.0
54.0
97.0
2020
£
136,347
232,385
368,732
_£ _
5

One (2020 - one) employee received remuneration of more than £60,000 The accounts include termination payments totalling £8,942 (2020 - £nil).

The key management personnel of the Charity are those persons having authority and responsibility for planning, directing and controlling the activities of the Charity, directly or indirectly, including any Trustee of the Charity. In addition to the Trustees, key management personnel includes the Sabbatical Officers and senior management.

10. TRUSTEES REMUNERATION AND BENEFITS

Sabbatical officers are paid as authorised in the Union's governing document, for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities. This work included voicing student opinion with the University and local community, defending and extending the rights of students through petitions etc. and also organising and supporting student volunteers and service provision for them. Details are included in note 9.

3 members of the Board of Trustees received reimbursement of travel and IT expenses amounting to £124 (2020 - £292).

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

11. TANGIBLE FIXED ASSETS

Cost
At 1 August 2020
Additions
Disposals
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
On disposals
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020
12. DEBTORS
2021
Due within one year
£
Trade debtors
4,383
Prepayments
230,613
VAT repayment due
26,437
Other debtors
531
261,964
**£ **		 Fixture and
fittings
£
118,218
-
-
118,218
106,624
5,584
-
112,208
6,010
£
11,594
£
2021
£
4,383
230,613
26,437
531
261,964
**£ **		 Other fixed
assets
£
255,612
125,339
(255,612)
125,339
255,612
1,354
(255,612)
1,354
123,985
£
Nil
£
2020
£
30,523
235,036
55,667
291
321,517
_£ _		 Total
£
373,830
125,339
(255,612)
243,557
362,236
6,938
(255,612)
113,562
129,995
**£ **
11,594
_£ _
2020
£
30,523
235,036
55,667
291
321,517
_£ _

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021
£
Trade creditors
76,587
Deferred income
269,568
Social security and other taxes
25,274
Other creditors
10,260
Pension costs - Past Service Deficit
105,576
Accruals
59,444
546,709
£
Deferred income
Balance at 1 August 2020
291,470
Amount released to incoming resources
(291,470)
Amount deferred in the year
269,568
Balance at 31 July 2021
269,568
**£ **		 2021
2020
£
£
76,587
47,582
269,568
291,470
25,274
32,320
34,463
15,281
105,576
98,421
59,444
81,944
570,912
£
567,018
£
291,470
(291,470)
-
269,568
291,470
269,568
£
291,470
_£ _		 2020
£
47,582
291,470
32,320
54,984
98,421
81,944
606,721
_£ _
316,913
(316,913)
291,470
291,470
_£ _

Deferred income includes a proportion of space grant relating to future period of £245,518 (2020 - £241,136) and other items totalling £24,050 (2020 - £50,334), including venue hire and participation fund.

14. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

2021
£
Pension costs - Past Service Deficit
(1,645,029)
(1,645,029)
£
DEFINED BENEFIT PENSION SCHEME – SUSS
Pension costs - Past Service Deficit
Brought forward
Payments made
Unwinding of interest for the year
Adjustment to provisions
Analysis:
Due within one year
Falling due after more than one year		 2021
2020
£
£
1,645,029
(1,709,917)
1,645,029
£
(1,709,917)
£
2021
2021
£
1,808,338
(98,421)
40,688
-
1,750,605
£
105,576
1,645,029
1,750,605
**£ **		 2020
£
1,709,917
1,709,917
_£ _
2020
£
1,532,958
(93,753)
35,673
333,460
1,808,338
_£ _
98,421
1,709,917
1,808,338
_£ _

15. DEFINED BENEFIT PENSION SCHEME – SUSS

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20

LSESU ANNUAL REPORT

LSESU ANNUAL REPORT

21

21

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

17. STATEMENT OF FUNDS

15. DEFINED BENEFIT PENSION SCHEME – SUSS (continued)

London School of Economics Students’ Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual. The most recent Valuation of the Scheme was carried out as at 30 June 2019 and showed that the market value of the Scheme’s assets was £119.1m with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £140.9m.

The 2019 Valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 16 years, increasing by 5% each year (except 8% increase in year 2021-22). These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. The revised contributions represent a 18% increase on the pension deficit funding contribution and are payable over an extended period to August 2035.

Full provision is made in the accounts for the total amount of contributions payable to meet the funding deficit. The provision is based on the discounted value of future contributions. The contributions payable will be formally reviewed following completion of the next valuation due with an effective date of 30 June 2022. In addition to the above contributions, London School of Economics Students’ Union also pays its share of the Scheme’s levy to the Pension Protection Fund.

In calculating this net present value annual increases of 5% have been made and a discount rate of 2.25% (2020: 2.25%) representing the typical yield of high quality corporate bonds has then been applied.

16. DEFINED CONTRIBUTION PENSION SCHEME

Since 1 October 2011, all participating employees have been in a new defined contribution pension scheme with Scottish Widows. Contributions are at 3% for the employer and a contribution rate starting at 4% for the employee. Contributions are accounted for as part of the Union’s unrestricted funds.

'Pension costs - current services costs' in note 9 relate to payments made to a defined contribution pension scheme. The charitable company’s liability is limited to making the payments due to the scheme on a timely basis. The liability at the 31 July 2021 is £5,108 (2020 : £12,317).

Brought
Forward
£
DESIGNATED FUNDS
Pension Fund Deficit
(1,808,338)
Fixed Assets and
Premises Fund
-
(1,808,338)
£
RESTRICTED FUNDS
Clubs and Societies
616,972
Clubs and Societies:
Annual Fund
59,562
Other University grants
248,857
925,391
£
SUMMARY OF FUNDS
Designated Funds
(1,808,338)
General Funds
144,949
(1,663,389)
Restricted Funds
925,391
(737,998)
£
Comparative statement of funds
Brought
Forward
£
DESIGNATED FUNDS
Designated Funds
106,121
Pension Fund Deficit
(1,532,958)
(1,426,837)
£
RESTRICTED FUNDS
Clubs and Societies
553,121
Clubs and Societies:
Annual Fund
101,636
Other University grants
184,760
Sport England
-
839,517
£
SUMMARY OF FUNDS
Designated Funds
(1,426,837)
General Funds
115,788
(1,311,049)
Restricted Funds
839,517
(471,532)
£		 Incoming
Resources
£
-
-
Nil
£
447,576
-
150,000
597,576
£
-
3,488,188
3,488,188
597,576
4,085,764
£
Incoming
Resources
£
-
-
Nil
£
1,316,288
-
250,000
-
1,566,288
£
-
3,727,840
3,727,840
1,566,288
5,294,128
_£ _		 Transfers and
Resources
investment
Expended gains/(losses)
£
£
-
57,733
-
129,995
Nil
£
187,728
£
(203,738)
-
(6,301)
-
(82,408)
(248,857)
(292,447)
£
(248,857)
£
-
187,728
(3,313,183)
61,129
(3,313,183)
248,857
(292,447)
(248,857)
(3,605,630)
£
Nil
£
Transfers and
Resources
investment
Expended gains/(losses)
£
£
-
(106,121)
-
(275,380)
Nil
£
(381,501)
£
(1,252,437)
-
(42,074)
-
(172,316)
(13,587)
-
-
(1,466,827)
£
(13,587)
£
-
(381,501)
(4,093,767)
395,088
(4,093,767)
13,587
(1,466,827)
(13,587)
(5,560,594)
£
Nil
£		 Carried
Forward
£
(1,750,605)
129,995
(1,620,610)
£
860,810
53,261
67,592
981,663
**£ **
(1,620,610)
381,083
(1,239,527)
981,663
(257,864)
£
Carried
Forward
£
-
(1,808,338)
(1,808,338)
£
616,972
59,562
248,857
-
925,391
_£ _
(1,808,338)
144,949
(1,663,389)
925,391
(737,998)
£

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20

LSESU ANNUAL REPORT

21

21

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2021

21. RELATIONSHIP WITH LONDON SCHOOL OF ECONOMICS

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Funds
Designated
General
Funds
Funds
£
£
Tangible fixed assets
-
129,995
Net current assets
(1,620,610)
1,896,117
Creditors due in more than one year
-
(1,645,029)
(1,620,610)
£
381,083
£
Comparative analysis of net assets between funds
Unrestricted Funds
Designated
General
Funds
Funds
£
£
Tangible fixed assets
-
11,594
Net current assets
(1,808,338)
1,843,272
Creditors due in more than one year
-
(1,709,917)
(1,808,338)
£
144,949
£ 		Restricted
Funds
£
-
981,663
-
981,663
£
Restricted
Funds
£
-
925,391
-
925,391
£ 		Total
Funds
£
129,995
1,257,170
(1,645,029)
(257,864)
£
Total
Funds
£
11,594
960,325
(1,709,917)
(737,998)
£

The London School of Economics provides the Union with an annual grant as shown in the Statement of Financial Activities including a Space Grant which contributes to the costs which the Union incurs in occupying spaces owned by The London School of Economics. The Union pays market rate charges to The London School of Economics for this accommodation and associated support services.

22. CONTROLLING PARTY

Ultimate control of the Union rests with its membership, respresented by the Board of Trustees.

19. OTHER FINANCIAL COMMITMENTS

At 31 March 2021 the Company had commitments under non-cancellable operating leases (all for land and buildings) as set out below:

Operating leases which expire:
within two to five years		 2021
£
3,686,346
3,686,346
**£ **		 2020
£
5,256,079
5,256,079
_£ _

20. RELATED PARTIES

There are no related party transactions other than those disclosed in notes 9 and 10.

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LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2020

23 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted d
Total
Unrestricted
Funds s
Funds
Funds
2021 1
2021
2020
£ £
£
£
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3,502,407
3,127,133
Charitable activities
447,576
-
Other trading activities
97,861
589,927
Investments
185
3,432
Other
37,735
7,348
TOTAL
4,085,764
3,727,840
EXPENDITURE ON:
Charitable activities
#REF!
3,716,788
Other resources expended
54,733
376,979
TOTAL EXPENDITURE
#REF!
4,093,767
#REF!
(365,927)
Transfer between funds
-
13,587
NET MOVEMENT IN FUNDS
#REF!
(352,340)
TOTAL FUNDS AT 31 JULY 2019
(737,998)
(1,311,049)
TOTAL FUNDS AT 31 JULY 2020
#REF!
(1,663,389)
£
Net expenditure		 Restricted
Funds
2020
£
250,000
1,316,288
-
-
-		 Total
Funds
2020
£
3,377,133
1,316,288
589,927
3,432
7,348
1,566,288 5,294,128
1,466,827
-		 5,183,615
376,979
1,466,827 5,560,594
99,461
(13,587)		 (266,466)
-
85,874
839,517		 (266,466)
(471,532)
925,391
_£ _		 (737,998)
£

52 LSE SU