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← London School Of Economics Students' Union

2022-07-31-accounts

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LSESU ANNUAL REPORT 2021/22 22

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CONTENTS

1. CONTENTS 02 2. INTRODUCTION by Tilly Mason 04 General Secretary and Chair of the Trustee Board

3. INTRODUCTION by James Hann 06 Chief Executive

4. THE UNION AND ITS TRUSTEES 08 6. OUR IMPACT 14 Statement of Trustee’s At a glance 16 Responsibilities 10 Student Voice 17 Communities 18 5. OUR GOVERNANCE 20 AND OPERATIONS 12 Sabbatical Officer Projects Employees 13 7. LOOKING AHEAD 22 Senior Leaders Salaries 13 (Key Management Personnel) 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 TILLY MASON,

General Secretary & Chair of the Trustee Board

LSE Students’ Union (LSESU)

works to make student experience of LSE the best it can be, with putting on events, facilitating campaigning, society and sports club activities for all LSE students to get involved in. As the UK came out of the restrictions of the pandemic, we saw the LSESU advice service in more use than ever, with hardship fund applications at an all time high. Despite the unknown landscape of SU events such as the provision of hybrid activities, the community of LSE has been a focus of LSESU, with a new role bridging the SU and LSE Careers to open up new career opportunities for undergrads. With the new Marshall Building opening in January 2022, student communities have been given more space to grow and develop, with new gyms and music practice rooms.

The democracy review carried out over the course of the year has led to some huge changes to the structures of LSESU, heightening student representation and the capacity of the SU to campaign for student support. As we come to recruit the democracy coordinator, a position primarily focused on the delivery of the democracy review, it is currently an exciting time to watch last year’s actions come to life, and significantly shape student experience in the long-term. Similar to this, the launch of the partnership between LSE and the SU on consent education has forever changed the culture of LSE and the support given to students in fostering a caring, respectful and inclusive community - something that lies at the heart of LSESU.

Tilly Mason LSESU General Secretary 2022/23. Chair of the Board of Trustees 2022/23.

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

INTRODUCTION

BY JAMES HANN, Chief Executive

As we tentatively returned from the pandemic, we approached the 2021/22 year with hope and optimism. As well as seeing a general increase in the number of students engaging in societies (up 18%), we have also been focusing on how we can be a Union of All, with an increase in postgraduate membership in societies (30%) and in the Athletics Union (23%). The Active Lifestyle programme engages high level of postgraduate students, as does the gym (55%).

The Students’ Union launched an online and peer to peer consent education programme in 2021, with over 2000 students completing the online training and over 1500 completing the peer-topeer training, (56% of first year undergraduates). 99% of attendees of the peer-to-peer sessions saying they would feel more comfortable calling out sexual misconduct after the training.

We took an innovative approach to reimagining how student democracy could work at LSE, in partnership with over 2000 LSE students, the Democracy Society, peer reviewed by two university professors and with the aim of fundamentally changing how LSE students interact with LSESU. Led by sabbatical officers and supported by students through passed motions, we’ll be busy implementing these changes in the coming year.

After years of planning, we opened the sports and arts facilities in the Marshall Building in January 2022, and we are so proud of the facilities we can now provide to LSE students. We secured free access to new sporting and arts facilities for LSESU clubs and societies including three musical rehearsal studios, rehearsal space, strength and fitness centre, two squash courts and an England Sport standard large sports hall.

Officers and LSESU staff have turned around financial performance, reaching our reserves target 3 years ahead of schedule. We introduced a new entertainments programme, delivering a 60% increase in the number of events held by LSESU compared to 2019. We know we have more to do and while our catering is taking a year off, we have introduced a coffee cart outside the Saw Swee Hock.

We have researched, consulted and agreed a 4-year Union strategy, based around three promises to students.

we promise to make your voice heard and make change happen we promise to be a union for all LSE students we promise to support your wellbeing.

We strive to support the students that want to organise, campaign and stand up for their fellow students.

Over 90% satisfaction response from almost 700 course representatives in their SU provided training. 90% student satisfaction in the LSESU Advice Service.

None of this is possible without the brilliant leadership of your elected officers and through building and developing high performing staff teams. Staff satisfaction levels include

97% of staff saying they felt respected and valued 95% of staff saying they would recommend LSESU as a place to work

The coming year will see the union return to a full campus and a focus on our efforts to create a community at LSE which is the HEART of student life.

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

trustees and staff teams. Newly elected or appointed trustees are invited to attend one or more board meetings before taking up their positions.

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

services of the Union. The Students’ Union’s governing document is its Constitution All trustees undertake an induction (Memorandum and Articles of programme and are given briefings on Association) , supported by the the organisation’s operations and LSESU Byelaws . These set out in goals. The induction programme, detail the rules that we follow. A list delivered by the company secretary, of the current trustees are available covers the nature of the trustee role, at: www.lsesu.com/union/trustees/ provides an understanding of the legal responsibilities of being a After the student led democracy trustee, and provides an appreciation review in 2022, plans are in place to of LSESU’s vision, mission and values, radically change how LSE students as well as the relationship between can input into Union activity.

After the student led democracy review in 2022, plans are in place to radically change how LSE students can input into Union activity.

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THE UNION AND ITS TRUSTEES

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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 presuming that the organisation will continue to operate unless it is inappropriate to presume that it will not.

The trustees are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect 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.

On behalf of the Trustee Board

Tilly Mason

LSESU General Secretary 2022/23. Chair of the Board of Trustees 2022/23.

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05 EMPLOYEES In 2022, the Union employed an average of OUR GOVERNANCE 37 AND OPERATIONS STAFF { and the total number LSESU OPERATES ON DEMOCRATIC PRINCIPLES, working of student staff employed in the year was for 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. 117

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).

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.

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

2021/22 saw a phased return to on campus learning and the Union championed a return to campus as soon as possible, the opening of the Marshall Building facilities, new events and a successful campaign so that students impacted by the pandemic could seek partial refunds on their tuition fees. The successful delivery and impact of the consent.ed trial in 2021 resulted in a united commitment from LSE and LSESU to continuing and developing the programme in 2022.

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STUDENT VOICE

“I want to particularly highlight how helpful my experience was with the Advice Service when in a desperate state, needing to access the Hardship Fund. I was quickly supported and guided on email with my application, and most importantly, was shown empathy and compassion throughout the process. Thank you!” Advice Service User

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 690 academic representatives – up from 643 last year , with 95% of academic reps reporting that they felt supported by . LSESU after their training

The successful election of student leaders to positions across the Union is integral to the functioning of the organisation. As we returned to our first campus-based set of elections since the onset of the pandemic, we adapted our approach to deliver LSESU’s first ever hybrid elections. Whilst this posed some challenges in our first election in the Michaelmas Term, where we only achieved 11% of students voting , we managed to get to 17% of voters in our Lent Term elections, numbers which put LSESU way above the . sector average of 12%

As a democratic, student-led organisation it is vital that our democratic set up is delivering for our members. Having not reviewed this since 2010, we embarked on a

bold review of our democratic structure this year. Partnering with the Democratic Society (Demsoc) and two external university professors, we delivered a 3-day Democracy Summit where students helped to co-design a new democratic structure informed by several experts, surveys, focus groups and other pieces of research. The new deliberative democratic approach has garnered significant attention across the sector, with the new structure being implemented in 2022/23, and fully operational by 2023/24.

LSESU also exists to support its students through the challenges they face across the year. Our Advice Service plays a key role in helping students as they navigate LSE’s internal assessment regulation processes, with things such as appeals, complaints and academic misconduct case support all regular area of work for our Advice Team. The Service also provides housing advice and a series of funds for students experiencing financial hardship.

In 2021/22 our Advice Service opened 654 cases , made £80,741 awards to students in financial hardship and maintained exceptionally high levels of student satisfaction, with 90% of users saying they would recommend the Service to others .

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COM MUN ITIES

Student groups such as societies and Athletics Union (AU) clubs are at the core of our social and community offer to our members. Societies and clubs are led by students elected by members and supported by teams within our Student Communities department. Beyond that, our Sports and Recreation team also runs our physical activity offers, including managing all spaces in the Marshall building, Active Lifestyle class programming and our gym. We successfully undertook a complete refurbishment of the LSESU Gym in June 2021 and opened an additional weights and conditioning suite in the Marshall building in January 2022 for all LSE students and staff to enjoy. The gym includes the latest innovations that fitness has to offer, to provide our members with an enhanced fitness experience including the new Endurance Series cardio equipment and a functional training room.

The Societies team also supported hundreds of student societies and projects; from ‘Give-it-a-Go’ taster activities to supporting large-scale, international conferences - our student societies do some amazing things! Our online and offline training offer for student group committee leaders was met with increased levels of satisfaction and attendance as previous years as we returned to in-person activity through the year. A new joint-working partnership was implemented between the SU and the LSE Careers Department. This saw the introduction of several new initiatives, including the recruitment of a shared staffing resource to develop support for careers based societies.

The Students’ Union Fund (SUF) allows 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 £61,896 of which £50,477 went directly to support student projects.

“I had great help from the LSESU, I’m really glad they are an avenue of help at LSE! ”

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SABBATICAL OFFICER PROJECTS

Our Sabbatical Officers are at the heart 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:

1

Delivered an innovative, student-led review of our democratic structure. The deliberative democratic approach saw significant levels of student involvement, including through surveys, focus groups and a 3-day democracy summit before being successfully passed in an all-student vote. The result was the most radical shake up of LSESU’s democratic set-up in decades, with its implementation taking place from 2022/23 onwards.

Introduced a peer-to-peer consent education programme designed to prevent sexual violence and improve the safety of campus. The pilot was a huge success, providing in-person consent workshops to 1,517 students and online consent training to 2,097 students, with 99% of attendees saying they would feel more comfortable calling out sexual misconduct if they witnessed it.

Delivered a mechanism for measuring student wellbeing across the campus. The Happiness Tracker was piloted during May where it was sent out to all students on a weekly basis, with 2,002 completions over a 5 week period, and a wealth of useful data on student wellbeing across different areas of LSE. Following a successful pilot, the Students’ Union will be working to expand the Happiness Tracker across the year in 2022/23.

Partnered with the LSESU Ukraine Society to rally students to organise, coordinate and deliver significant levels of aid to Ukraine on the outset of the war in early 2022

Successfully delivered the first in person De-Stress Festival since the pandemic, putting on a series of arts, crafts, meditation and exercise sessions across the exam period to help students unwind during the most stressful period of the academic year

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The next year will see: More opportunities for post graduate students to get involved in their students’ LOOKING union Implementation of the democracy motions to change how students can decide the future direction of their union AHEAD

Implementation of the democracy motions to change how students can decide the future direction of their union

We are determined to be a Union for all LSE students, to make your voice heard and to make change happen, while supporting students wellbeing.

A streamlined approach to supporting society and sport club events and we will make the SU Marshall Building the Home of LSE Sport on campus

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FINANCE SUMMARY

Income

Our unrestricted income for the year increased to £3,791,625 (£3,488,188 in 2021) primarily as a result of higher trading income as more students returned to campus following the easing of restrictions and return to in person learning and the launch of SU spaces in the Marshall Building.

Costs

Total expenditure from unrestricted funds before pensions deficit funding was £3,601,763 (£3,258,450 in 2021). Total expenditure from unrestricted funds including pensions deficit funding was £3,524,760 (£3,313,183 in 2021).

Outcomes

The outcome for the year was a general funds surplus of £189,832 before pension funding deficit (£229,738 surplus in 2021) which the trustees deem a satisfactory result. After the pension charges, this results in a general funds surplus of £266,865 (£175,005 in 2021).

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 deficit on restricted funds of £80,327 (£305,129 surplus in 2021).

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Fixed Assets

Future Funding Fixed Assets LSESU has sufficient New gym and IT funds to meet its future equipment and was obligations for 2022/23, but purchased during the year at a cost of . an increase in funding remains £44,441 a priority. The subvention grant from LSE for 2022/23 has been confirmed at £1,140,289 (£1,112,477 in 2021/22).

Reserves

Unrestricted general reserves at the end of the year were £316,877 (£381,083 in 2021). £131,385 was transferred to a designated fund for replacement of furniture and equipment in the Denning café and for replacement till systems and to contribute towards the eventual replacement of equipment in the Gym and Sports Hall. The £1,559,311 SUSS pension liability is shown as a separate designated fund as the payments do not fall due immediately (2021 £1,750,605).

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 non School funding, whilst allowing time to re-establish or re-focus income generating activities. The Trustees will review the reserves policy during 2022/23.

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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 2022. The key risks are data protection, poor governance and risks associated with covid-19. Mitigating steps were identified such as data protection training, increasing the number of external Trustee Board Members, working with LSE on covid response.

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 (Company limited by guarantee no. 7710669, registered charity no. 1143103)

REPORT AND FINANCIAL STATEMENTS For the year ended 31 July 2022

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION (Company limited by guarantee no. 7710669 registered charity no. 1143103)

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2022

CONTENTS

Page
Legal and administrative information 1
Independent Auditors' Report 2
Statement Of Financial Activities 5
Balance Sheet 6
Cash Flow Statement 7
Notes to the financial statements 8

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the year ended 31 July 2022

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION FOR THE YEAR ENDED 31 JULY 2022

(registered company no. 07710669)

Board of Trustees
Board of Trustees William Barber
Faiso Kadiye Resigned on 1 July 2022
Shuyi Lee Resigned on 1 July 2022
Mathilde Mason Appointed on 1 July 2022
Robyn McAlpine Resigned on 1 July 2022
Anaëlle Nicole
Edouard Panciulo
Maarya Rabbani
Avinash Ashok
Romane Branthomme
Edward Hall
Iye’Re Laditi		 Appointed on 1 July 2022
Resigned on 1 July 2022
Appointed on 1 July 2022
Appointed on 1 July 2022
Appointed on 1 July 2022
Resigned on 1 July 2022
Resigned on 1 July 2022
Josephine Stephens
Mohammad Umar		 Resigned on 1 July 2022
Resigned on 1 July 2022
Company Secretary Nicholas Smith
Principal Officers James Hann Chief Executive
Sarah Chowdry-Grant Head of Student Communities
Ricardo Visinho Head of Student Voice
Freda Chisambi 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 2022 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 …

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

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 2022

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION FOR THE YEAR ENDED 31 JULY 2022

(Continued)

(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.

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:

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

13 February 2023 _______2023

/Continued …

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

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 2022

Unrestricted
Funds
Note
2022
£
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2
3,251,383
Charitable activities
5
-
Other trading activities
3
537,332
Investments
4
734
Other
6
2,176
TOTAL
3,791,625
EXPENDITURE ON:
Charitable activities
3,601,793
Other costs
Pension costs - Past Service Deficit
(77,033)
TOTAL EXPENDITURE
7
3,524,760
266,865
Transfer between funds
17
983
NET MOVEMENT IN FUNDS
267,848
RECONCILIATION OF FUNDS:
TOTAL FUNDS AT 1 AUGUST 2021
(1,239,527)
TOTAL FUNDS AT 31 JULY 2022
(971,679)
£
Net Income		 Restricted
Funds
2022
£
150,000
1,153,208
-
-
-
1,303,208
1,383,535
-
1,383,535
(80,327)
(983)
(81,310)
981,663
900,353
**£ **		 Total
Funds
2022
£
3,401,383
1,153,208
537,332
734
2,176
5,094,833
4,985,328
(77,033)
4,908,295
186,538
-
186,538
(257,864)
(71,326)
£		 Total
Funds
2021
£
3,502,407
447,576
97,861
185
37,735
4,085,764
3,550,897
54,733
3,605,630
480,134
-
480,134
(737,998)
(257,864)
£

BALANCE SHEET As at 31 July 2022

Notes
Charity
2022
£
FIXED ASSETS
Tangible assets
11
#REF!
Investments
-
#REF!
CURRENT ASSETS
Stocks
20,139
Debtors
12
350,010
Cash at bank and in hand
1,474,665
1,844,814
CREDITORS: amounts falling due
within one year
13
(553,733)
NET CURRENT ASSETS
1,291,081
TOTAL ASSETS LESS CURRENT
LIABILITIES
#REF!
CREDITORS: amounts falling due
after one year
14
1,447,709
TOTAL NET LIABILITIES
#REF!
FUNDS
Unrestricted funds:
Designated funds
17
(1,288,556)
General fund
17
316,877
(971,679)
Restricted funds
17
900,353
(71,326)
£		 Group
Charity
2022
2021
£
£
139,370
129,995
-
#REF!
139,370
#REF!
20,140
20,231
350,010
261,964
1,474,665
1,545,887
1,844,815
1,828,082
(607,802)
(546,709)
1,237,013
1,281,373
1,376,383
#REF!
(1,447,709)
1,645,029
(71,326)
£
#REF!
(1,288,556)
(1,620,610)
316,877
381,083
(971,679)
(1,239,527)
900,353
981,663
(71,326)
£
(257,864)
£		 Group
2021
£
129,995
-
129,995
20,231
261,964
1,545,887
1,828,082
(570,912)
1,257,170
1,387,165
(1,645,029)
(257,864)
£
(1,620,610)
381,083
(1,239,527)
981,663
(257,864)
£

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 _______2023 and signed on their behalf by:-13 February 2023

MATHILDE MASON, Chair of Board of Trustees

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

CASH FLOW STATEMENT For the year ended 31 July 2022

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

1. ACCOUNTING POLICIES

Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Depreciation
Decrease in stocks
(Increase)/decrease in debtors
(Decrease) in creditors
Investment income
Cash flows from investing activities
Purchase of tangible fixed assets
Return on investment - interest receivable
Net (decrease)/increase on cash and cash equivalents
Cash and cash equivalents at 1 August 2021
Components of cash and cash equivalents
At 1
August 2021
Cash at bank and in hand
1,545,887
£
Cash and cash equivalents at 31 July 2022		 2022
£
186,538
35,066
91
(88,046)
(160,430)
(734)
(27,515)
(44,441)
734
(43,707)
(71,222)
1,545,887
1,474,665
£
Cashflows
(71,222)
£		 2021
£
480,134
6,938
536
59,553
(100,697)
(185)
446,279
(125,339)
185
(125,154)
321,125
1,224,762
1,545,887
£
At 31 July
2022
1,474,665
£

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.

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

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.

Stock

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

Debtors

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.

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.

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

2.
DONATIONS AND LEGACIES
Unrestricted
Funds
2022
£
University Block Grant
1,112,477
University other grants
639,694
Government Grants
3,095
Space Grant
1,496,117
Capital Grant
-
3,251,383
£
Comparative 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
£
3.
INCOME FROM OTHER TRADING ACTIVITIES
Unrestricted
Funds
2022
£
Trading income
510,059
Other generated income
27,273
537,332
£
Comparative income from other trading activities
Unrestricted
Funds
2021
£
Trading income
88,043
Event income
9,818
97,861
_£ _		 Restricted
Funds
2022
£
-
150,000
-
-
-
150,000
£
Restricted
Funds
2021
£
-
150,000
-
-
-
150,000
£
Restricted
Funds
2022
£
-
-
Nil
£
Restricted
Funds
2021
£
-
-
Nil
£		 Total
Funds
2022
£
1,112,477
789,694
3,095
1,496,117
-
3,401,383
£
Total
Funds
2022
£
510,059
27,273
537,332
**£ **		 Total
Funds
2021
£
1,085,343
683,402
264,939
1,468,723
-
3,502,407
£
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
2021
£
88,043
9,818
97,861
_£ _

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

4.
INVESTMENT INCOME
Unrestricted
Funds
2022
£
Interest receivable from:
Bank interest
734
734
£
Comparative investment income
Unrestricted
Funds
2021
£
Interest receivable from:
Bank interest
185
185
£
5.
INCOME FROM CHARITABLE ACTIVITIES
Unrestricted
Funds
2022
£
Clubs and Societies
-
Nil
£
6.
OTHER INCOME
Unrestricted
Funds
2022
£
Other income
2,176
2,176
£
Comparative other income
Unrestricted
Funds
2021
£
Other income
37,735
37,735
_£ _		 Restricted
Funds
2022
£
-
Nil
£
Restricted
Funds
2021
£
-
Nil
£
Restricted
Funds
2022
£
1,153,208
1,153,208
£
Restricted
Funds
2022
£
-
Nil
£
Restricted
Funds
2021
£
-
Nil
£		 Total
Funds
2022
£
734
734
£
Total
Funds
2022
£
1,153,208
1,153,208
£
Total
Funds
2022
£
2,176
2,176
**£ **		 Total
Funds
2021
£
185
185
£
Total
Funds
2021
£
185
185
£
Total
Funds
2021
£
447,576
447,576
£
Total
Funds
2021
£
37,735
37,735
£
Total
Funds
2021
£
37,735
37,735
_£ _

44 LSE SU

LSE SU 45

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

7.
RESOURCES EXPENDED
Cost of
sales
Staff Costs
£
£
Cost of charitable
activities
Trading activities
153,852
471,738
Student Communities
-
395,535
Student Representation
-
390,195
Support and advice
-
69,961
Marketing and
Communications
-
139,840
Clubs and socieites
-
-
Total charitable
expenditure
153,852
£
1,467,269
£
Central costs included in the resources expended
Staff Costs
£
Cost of charitable
activities
Trading activities
81,391
Student Communities
67,787
Student Representation
65,481
Support and advice
11,298
Marketing and Communications
4,611
Total charitable
expenditure
225,957
**£ **		 Other direct
costs
£
123,239
216,595
28,458
87,462
-
1,239,036
1,694,790
£
Rent
£
461,447
384,321
371,249
64,054
26,144
1,281,071
**£ **		 Central costs
£
605,007
483,673
467,221
80,613
32,903
-
1,669,417
£
Support
costs
£
143,560
99,352
95,972
16,559
6,759
355,443
**£ **		 Total
2022
£
1,353,836
1,095,803
885,874
238,036
172,743
1,239,036
4,985,328
£
Total
£
686,398
551,460
532,702
91,911
37,514
1,862,471
**£ **

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

7. RESOURCES EXPENDED (continued)

Comparative resources expended

Cost of sales
Staff Costs
£
£
Cost of charitable
activities
Trading activities
16,910
545,226
Student Communities
-
206,000
Student Representation
-
434,425
Support and advice
-
89,871
Marketing and
Communications
-
149,352
Clubs and socieites
-
-
Total charitable
expenditure
16,910
£
1,424,874
£
Central costs included in the resources expended
Staff Costs
£
Cost of charitable
activities
Trading activities
144,753
Student Communities
53,982
Student Representation
114,496
Support and advice
23,724
Marketing and Communications
6,877
Total charitable
expenditure
336,955
£
Resources expended include:
Auditors’ remuneration:
Audit fee
Other services
Depreciation
- on owned assets
Details of Support costs is given in Note 8.
Details of staff costs are given in Note 9.		 Other direct
costs
£
43,329
158,865
23,921
71,992
-
203,738
501,845
£
Rent
£
550,338
205,233
435,303
90,198
26,144
1,281,072
_£ _		 Central costs
£
681,198
251,111
532,610
110,361
31,988
-
1,607,268
£
Support costs
£
130,860
45,878
97,307
20,163
5,844
294,208
£
2022
9,740
1,260
35,066		 Total
2021
£
1,286,663
615,976
990,956
272,224
181,340
203,738
3,550,897
£
Total
£
825,951
305,093
647,106
134,085
38,865
1,912,235
£
2021
9,525
1,230
6,938

46 LSE SU

LSE SU 47

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

8. 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
Card Processing Fees
Licenses
Bad Debt Write Off
Sundry Costs		 Total
2022
£
114,347
5,638
28,054
37,362
28,853
11,000
17,276
8,300
6,326
20,062
11,806
16,970
24,072
14,715
7,436
3,226
355,443
**£ **		 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
7,646
5,470
(18,734)
8,254
294,208
_£ _

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

9.
STAFF NUMBERS AND COSTS
Wages and salaries
Social security costs
Pension costs - current services costs
Other staff costs
Pension costs - past services deficit
Permanent staff
Student and casual 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:		 2022
£
1,335,907
106,385
24,977
-
1,467,269
(77,033)
1,390,236
£
2022
Number
37
80
117
2022
£
145,629
235,323
380,952
£
5		 2021
£
1,266,635
111,215
29,367
17,657
1,424,874
54,733
1,479,607
£
2021
Number
39
42
81
2021
£
143,402
221,455
364,857
£
5

One (2021 - one) employee received remuneration of more than £60,000 The accounts include termination payments totalling £nil (2021 - £8,942).

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.

Five members of the Board of Trustees received reimbursement of travel and IT expenses amounting to £507 (2021 - £124).

48 LSE SU

LSE SU 49

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

11. TANGIBLE FIXED ASSETS

Cost
At 1 August 2021
Additions
Disposals
At 31 July 2022
Depreciation
At 1 August 2021
Charge for the year
On disposals
At 31 July 2022
Net book value
At 31 July 2022
At 31 July 2021
12. DEBTORS
2022
Due within one year
£
Trade debtors
44,700
Prepayments
230,207
VAT repayment due
74,309
Other debtors
794
350,010
**£ **		 Fixture and
fittings
£
118,218
35,399
-
153,617
112,208
8,492
-
120,700
32,917
£
6,010
£
2022
£
44,700
230,207
74,309
794
350,010
**£ **		 Other fixed
assets
£
125,339
9,042
-
134,381
1,354
26,574
-
27,928
106,453
£
123,985
£
2021
£
4,383
230,613
26,437
531
261,964
_£ _		 Total
£
243,557
44,441
-
287,998
113,562
35,066
-
148,628
139,370
£
129,995
£
2021
£
4,383
230,613
26,437
531
261,964
_£ _

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022
£
Trade creditors
66,468
Deferred income
273,244
Social security and other taxes
25,220
Other creditors
15,263
Pension costs - Past Service Deficit
111,602
Accruals
61,936
553,733
£
Deferred income
Balance at 1 August 2021
269,568
Amount released to incoming resources
(269,568)
Amount deferred in the year
273,244
Balance at 31 July 2022
273,244
**£ **		 2022
2021
£
£
66,468
76,587
273,244
269,568
25,220
25,274
69,332
10,260
111,602
105,576
61,936
59,444
607,802
£
546,709
£
269,568
(269,568)
-
273,244
269,568
273,244
£
269,568
_£ _		 2021
£
76,587
269,568
25,274
34,463
105,576
59,444
570,912
£
291,470
(291,470)
269,568
269,568
_£ _

Deferred income includes a proportion of space grant relating to future period of £250,119 (2021 - £245,518) and other items totalling £23,125 (2021 - £24,050).

14. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

2022
£
Pension costs - Past Service Deficit
(1,447,709)
(1,447,709)
£
15. 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		 2022
2021
£
£
1,447,709
(1,645,029)
1,447,709
£
(1,645,029)
£
2022
2022
£
1,750,605
(114,261)
58,295
(135,328)
1,559,311
£
111,602
1,447,709
1,559,311
**£ **		 2021
£
1,645,029
1,645,029
£
2021
£
1,808,338
(98,421)
40,688
-
1,750,605
£
105,576
1,645,029
1,750,605
_£ _

50 LSE SU

LSE SU 51

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

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 3.33% (2021: 2.25%) representing the typical yield of high quality corporate bonds has then been applied. This discount rate is significantly higher than in the previous year and results in a lower liability than compared with the previous year. The next full Valuation of the Scheme may result in an increase to the liability.

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% (increasing to 4% from 1 August 2022) 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 2022 is £4,914 (2021 : £5,108).

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

17. STATEMENT OF FUNDS

Brought
Forward
£
DESIGNATED FUNDS
Pension Fund Deficit
(1,750,605)
Fixed Assets and
Premises Fund
129,995
Refurbishment fund (Gym,
Marshall, Denning, EPOS)
-
(1,620,610)
£
RESTRICTED FUNDS
Clubs and Societies
860,810
Clubs and Societies:
Annual Fund
53,261
Other University grants
67,592
981,663
£
SUMMARY OF FUNDS
Designated Funds
(1,620,610)
General Funds
381,083
(1,239,527)
Restricted Funds
981,663
(257,864)
£
Comparative statement of funds
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
Sport England
-
925,391
£
SUMMARY OF FUNDS
Designated Funds
(1,808,338)
General Funds
144,949
(1,663,389)
Restricted Funds
925,391
(737,998)
£		 Incoming
Resources
£
-
-
-
Nil
£
1,153,208
-
150,000
1,303,208
£
-
3,791,625
3,791,625
1,303,208
5,094,833
£
Incoming
Resources
£
-
-
Nil
£
447,576
-
150,000
-
597,576
£
-
3,488,188
3,488,188
597,576
4,085,764
_£ _		 Resources
Expended
£
-
-
-
Nil
£
(1,239,036)
(52,278)
(92,221)
(1,383,535)
£
-
(3,524,760)
(3,524,760)
(1,383,535)
(4,908,295)
£
Resources
Expended
£
-
-
Nil
£
(203,738)
(6,301)
(82,408)
-
(292,447)
£
-
(3,313,183)
(3,313,183)
(292,447)
(3,605,630)
£		 Transfers and
investment
gains/(losses)
£
191,294
9,375
131,385
332,054
£
-
(983)
-
(983)
£
332,054
(331,071)
983
(983)
Nil
£
Transfers and
investment
gains/(losses)
£
57,733
129,995
187,728
£
-
-
(248,857)
-
(248,857)
£
187,728
61,129
248,857
(248,857)
Nil
£		 Carried
Forward
£
(1,559,311)
139,370
131,385
(1,288,556)
£
774,982
-
125,371
900,353
£
(1,288,556)
316,877
(971,679)
900,353
(71,326)
£
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)
£

52 LSE SU

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LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 July 2022

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Funds
Designated
General
Funds
Funds
£
£
Tangible fixed assets
-
139,370
Net current assets
(111,602)
448,262
Creditors due in more than one year
(1,447,709)
-
(1,288,556)
£
316,877
£
Comparative analysis of net assets between funds
Unrestricted Funds
Designated
General
Funds
Funds
£
£
Tangible fixed assets
-
129,995
Net current assets
(105,576)
381,083
Creditors due in more than one year
(1,645,029)
-
(1,620,610)
£
381,083
£ 		Restricted
Funds
£
-
900,353
-
900,353
£
Restricted
Funds
£
-
981,663
-
981,663
£ 		Total
Funds
£
139,370
1,237,013
(1,447,709)
(71,326)
£
Total
Funds
£
129,995
1,257,170
(1,645,029)
(257,864)
£

21. RELATIONSHIP WITH LONDON SCHOOL OF ECONOMICS

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		 2022
£
2,117,688
2,117,688
**£ **		 2021
£
3,686,346
3,686,346
£

20. RELATED PARTIES

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

54 LSE SU

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LONDON SCHOOL OF ECONOMICS STUDENTS’ UNION

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

23 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted d
Total
Unrestricted
Funds s
Funds
Funds
2022 2
2022
2021
£ £
£
£
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3,401,383
3,352,407
Charitable activities
1,153,208
-
Other trading activities
537,332
97,861
Investments
734
185
Other
2,176
37,735
TOTAL
5,094,833
3,488,188
EXPENDITURE ON:
Charitable activities
#REF!
3,258,450
Pension costs - Past Service Deficit
(77,033)
54,733
TOTAL EXPENDITURE
#REF!
3,313,183
#REF!
175,005
Transfer between funds
-
13,587
NET MOVEMENT IN FUNDS
#REF!
188,592
TOTAL FUNDS AT 31 JULY 2020
(257,864)
(1,663,389)
TOTAL FUNDS AT 31 JULY 2021
#REF!
(1,474,797)
£		 Restricted
Funds
2021
£
150,000
447,576
-
-
-
597,576
292,447
-
292,447
305,129
(13,587)
291,542
925,391
1,216,933
_£ _		 Total
Funds
2021
£
3,502,407
447,576
97,861
185
37,735
4,085,764
3,550,897
54,733
3,605,630
480,134
-
480,134
(737,998)
(257,864)
£

56 LSE SU