OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-07-31-accounts

Registered number: 7759820 Charity number: 1144146

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2020

UNIVERSITY OF MANCHESTER STUDENTS' UNION (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charity, its trustees and advisers 1 - 2
Trustees' report 3 - 21
Independent auditor's report 22 - 24
Consolidated statement of financial activities 25
Consolidated balance sheet 26
Company balance sheet 27
Consolidated statement of cash flows 28
Notes to the financial statements 29 - 52

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020

Trustees Kwame Asamoah-Kwarteng, General Secretary (appointed 1 July 2019)1
Ayla Huseyinoglu, Women's Officer (appointed 1 July 2019)1
Rana Phool Ur Rehman, Postgraduate Officer (appointed 1 July 2019)1
Chloe Salins, Education Officer (appointed 1 July 2019)1
Sara Khan, Liberation & Access Officer (resigned 30 June 2020)1
Elizabeth Haughton, Activities and Development Officer1
Jake Garrett, International Students Officer (appointed 1 July 2019)1
Adam Haigh, Welfare Officer (appointed 1 July 2019)1
Nicholas Matthews (appointed 1 July 2019)2
Katie Foy (appointed 1 July 2019, resigned 10 March 2020)2
Elizabeth Martin (appointed 1 July 2019)2
Vicii Kirkpatrick3
Peter Ptashko (appointed 1 September 2019)3
Jennifer Burton (appointed 28 January 2020)3
1
Officer Trustees
2
Student Trustees
3
External Trustees
Company registered
number 7759820
Charity registered
number 1144146
Registered office Steve Biko Building
Oxford Road
Manchester
M13 9PR
Chief executive officer Ben Ward
Independent auditor Crowe U.K. LLP
3rd floor
The Lexicon
Mount Street
Manchester
M2 5NT
Solicitors JMW Solicitors LLP
1 Byrom Place
Spinningfields
Manchester
M3 3HG
DAC Beachcroft
3 Hardman Street
Manchester
M3 3HF

Page 1

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2020

Advisers (continued)

Bankers

Santander Bank plc Bootle Merseyside L30 4GB

Page 2

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2020

The Trustees present their annual report together with the audited financial statements of the group and the company for 1 August 2019 to 31 July 2020. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP) (updated October 2019), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (revised March 2018)).

Purpose, Activities and Impact

a. Aims and objectives

The fundamental purpose of the Union is to improve student life for the 40,000 students at the University of Manchester and everything the Union does pushes us towards that goal. Our vision is that all students should be able to feel a part of the Manchester community where they can develop, prepare for their future and make a difference in the world around them .

The charitable objects of the Union as set out in the Articles of Association are the advancement of education of students at the University of Manchester for the public benefit by:

  1. Promoting the interests and welfare of students at the University of Manchester during their course of study and representing, supporting and advising students;

  2. Being the recognised representative channel between students and the University of Manchester and any other external bodies; and

  3. Providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students.

The Union’s purpose is to be the voice of students at the University of Manchester, effecting change and enriching student life together.

The Union’s values are:

Student Led

We are led by students in everything we do and actively develop student leaders

Diverse and Liberating

We ensure accessibility, challenge inequality and champion liberation

Inclusive and Open

Our activities are welcoming to students from all courses, countries, backgrounds and levels of study, encouraging participation

Ambitious & striving for excellence

We set ourselves stretching targets and seek to be the very best at what we do

Ethical and have integrity

We actively seek to minimise any negative impacts of our work and stay true to our values

Creative and Fun

We encourage new ideas and enjoyment for our students, staff and partners

Page 3

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

b. Strategies for achieving objectives

The current strategic plan and underlying framework takes the Union from 2016 to 2020. It was developed following major pieces of research and stakeholder engagement. A promise based approach has been taken to the development of the strategy and it is split into five promises to our students:

These promises are underpinned by our enabling strategies that focus on people, finance and service delivery. Each year the teams in the Union take part in a planning cycle to develop the activity for the coming year linking back to the delivery of the strategic aims. These departmental plans are then linked to individual staff members' personal objectives. During the uncertainty of 2020 related to the Covid-19 pandemic, the board took the decision to pause development of a new strategic plan and approved some short-term objectives until the operating environment stabilises. These can be summarised as:

  1. Continue and strengthen our advocacy role for and on behalf of student s. The student voice is of paramount importance during this period towards decision makers local and national.

  2. Provide a sense of community for our students . We know that the provision of extra and co-curricular activities can positively support mental health, retention and happiness during this time.

  3. Ensure the Students’ Union undertakes responsible financial stewardship practices to make sure we aren’t causing additional unnecessary concern to the University or other stakeholders.

  4. Take the opportunity to deal with some long-standing infrastructure challenges and inefficient processes which hinder our ability to deliver activity during times of business as usual.

c. Main activities undertaken to further the charity's purpose for the public benefit

The Union undertakes numerous activities in support of the students of Manchester and for the broader benefit of the public:

Advice Service

The Union provides a specialist advice service which supports student needs around the areas of housing, money, welfare and academic issues. Over 4,000 students regularly access the service, and are saved thousands of pounds and kept in higher education though our advocacy

Educational Engagement

We provide representation and peer leadership for curriculum development, quality assurance and enhancement of our members’ education and represent students on all major decision making bodies at the University.

Democracy & Campaigning

We run a range of social justice and campaigning projects which supports the development of civic participation in our members. These are focused on enhancing rights and liberating under-represented groups.

Student Activities & Volunteering

We provide a choice of over 480 student groups which offer students opportunities for social and skills development. We also support student-led volunteering; facilitating a wide range of volunteering and fundraising opportunities.

Page 4

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Community Development

We support a range of student groups around where they live such as hall students, off-campus, mature, parttime and distance learners. We provide services which increase their sense of belonging and the ability to form lasting friendships.

Shops, bars and catering outlets

We run a range of commercial facilities which provide great value products and services, whilst providing relaxing environments for students to meet and interact.

Venues & Events

We provide a series of live music and club venues which attract over 350,000 people through the doors each year at around 460 shows and events. We also stage our annual Welcome Week and a series of live music festivals which are popular with students.

d. Our impact

Some of our impact measures from the last year are:

Strategic report

Achievements and performance

a. Key financial performance indicators

The last year has presented unprecedented challenges to the financial sustainability of the organisation, with the impact of the Covid-19 pandemic forcing the complete closure of services for around five months of the financial year. We have taken full advantage of government support schemes such as the Job Retention & Support Scheme (JRSS) to support our core staffing overhead cost whilst our ability to generate income has been curtailed. However, during the first half of the year, there were many positive indicators that our efforts to stabilise our commercial offerings, partially outsource operations and focus on variable and fixed cost reduction had worked. We were on track to return to a surplus position, after a couple of years of operating deficits. The operating surplus generated at the end of this year is partially demonstrated by government support, a recruitment freeze on vacant staffing positions and tighter cost control.

We believe there are some good indicators of recovery, including confirmation of the Union’s block grant for the next two years, expansion of our live music programme early in the year, and new Students’ Unions joining our media sales operation.

Page 5

UNIVERSITY OF MANCHESTER STUDENTS' UNION (A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Key financial indicators are:

Indicator Target met Comment
At the end of the year, the reserves were
around the forecasted position and above the
Reserves in line with
policy		 Yes minimum required under our policy.
However, it is clear we will need to draw on
these reserves in the short term due to forced
service closure.
The commercial subsidiary Manchester
Academy Venues has not exceeded budgeted
expectations in the year and has been closed
for 5 months. The 13 Media sales agency did
not exceed budgeted expectations and
suffered from a cancellation of graduation,
Commercial surpluses No but has signed contracts with two other
students’ unions. Total revenue for the year
for the two trading subsidiaries was £2.3m
with a combined contribution of £0.6m. The
other trading areas (catering, retail, bar and
helpdesk) also made substantial losses in the
year, again closed for 5 months of the
financial year.
The Union has achieved a surplus position at
Year-end surplus Yes the end of the year, prior to pension deficit
repair revaluations.
Spending in most areas has remained in line
Spend in line with
budget		 Partially with or better than budget. This has been due
to extremely tight cost control and a freeze on
recruitment.

Page 6

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

b. Review of activities and factors relevant to achieve objectives

Reflecting on the previous annual report, the following progress has been made against the objectives set:
Empower you to shape
your academic
experience
Make it easy to get
involved in activities
which fulfil your
passions
Build communities and
networks which will
help your student life
Over the last year, the Union has supported
over 1000 course reps. At the start of the year,
we trained over 780 of these reps in face to
face sessions, and a further 200 online. In the
most recent research at the end of the
academic year, over 80% of students were
satisfied with the support received by the
Students’ Union. Reps from across the
institution have made a real impact on their
learning experience. This has been particularly
important as a number of faculties and schools
have been reviewed. We have worked to
ensure student feedback from industrial action
has been heard, particularly in the Faculty of
Humanities.
We now support 420 societies, the largest total
in the UK by some distance. Individual society
memberships have levelled off over the last
couple of years to remain at 34,000. Over 1 in
3 students are involved in at least one student
group, totalling 14,200 students. Our societies
are doing amazing things, winning national
competitions and leading ground-breaking
campaigns.
Our groups have invited over 700 visiting
speakers onto campus, giving students the
chance to debate and be exposed to wider
social issues. Whilst there have been some
vigorous debates amongst our students over
the Prevent Duty, we are happy we treat our
student groups in an even-handed, enabling
way. We have not stopped any external
speaker during the course of the year and take
our duties under the Code of Practice on
Freedom of Speech very seriously. Over the
last six years, we have had 3657 external
speakers and only stopped one from speaking
due to safety concerns. The press coverage
around censorship is not borne out in reality of
our experiences at Manchester.
We have worked closely with Sport Manchester
over the last six months as part of their sports
review around athlete profiles and levels of
support. We have reached agreement to site
their offices in the Students’ Union building,
driving even more student led activity into our
premises. This partnership is critical to build a
consistent experience of sport and recreation
activities amongst students.
We continue to partner closely on the
implementation of the Stellify scheme, and all
our key student leadership roles feed into credit
on the ‘step up and lead’ part of the award.
Since establishing our student events function
two years ago, we have radically altered the
support to student groups putting on exciting
events for the benefit of other students. During
the course of the year, 14785 students
attended at least one of these event which
have been focused on culture, arts and
performance.		 previous annual report, the following progress has been made against the objectives set:
Empower you to shape
your academic
experience
Make it easy to get
involved in activities
which fulfil your
passions
Build communities and
networks which will
help your student life
Over the last year, the Union has supported
over 1000 course reps. At the start of the year,
we trained over 780 of these reps in face to
face sessions, and a further 200 online. In the
most recent research at the end of the
academic year, over 80% of students were
satisfied with the support received by the
Students’ Union. Reps from across the
institution have made a real impact on their
learning experience. This has been particularly
important as a number of faculties and schools
have been reviewed. We have worked to
ensure student feedback from industrial action
has been heard, particularly in the Faculty of
Humanities.
We now support 420 societies, the largest total
in the UK by some distance. Individual society
memberships have levelled off over the last
couple of years to remain at 34,000. Over 1 in
3 students are involved in at least one student
group, totalling 14,200 students. Our societies
are doing amazing things, winning national
competitions and leading ground-breaking
campaigns.
Our groups have invited over 700 visiting
speakers onto campus, giving students the
chance to debate and be exposed to wider
social issues. Whilst there have been some
vigorous debates amongst our students over
the Prevent Duty, we are happy we treat our
student groups in an even-handed, enabling
way. We have not stopped any external
speaker during the course of the year and take
our duties under the Code of Practice on
Freedom of Speech very seriously. Over the
last six years, we have had 3657 external
speakers and only stopped one from speaking
due to safety concerns. The press coverage
around censorship is not borne out in reality of
our experiences at Manchester.
We have worked closely with Sport Manchester
over the last six months as part of their sports
review around athlete profiles and levels of
support. We have reached agreement to site
their offices in the Students’ Union building,
driving even more student led activity into our
premises. This partnership is critical to build a
consistent experience of sport and recreation
activities amongst students.
We continue to partner closely on the
implementation of the Stellify scheme, and all
our key student leadership roles feed into credit
on the ‘step up and lead’ part of the award.
Since establishing our student events function
two years ago, we have radically altered the
support to student groups putting on exciting
events for the benefit of other students. During
the course of the year, 14785 students
attended at least one of these event which
have been focused on culture, arts and
performance.

We’ll help you
make the most of
your time as a
student
Empower you to shape
your academic
experience
Make it easy to get
involved in activities
which fulfil your
passions
Build communities and
networks which will
help your student life
Over the last year, the Union has supported
over 1000 course reps. At the start of the year,
we trained over 780 of these reps in face to
face sessions, and a further 200 online. In the
most recent research at the end of the
academic year, over 80% of students were
satisfied with the support received by the
Students’ Union. Reps from across the
institution have made a real impact on their
learning experience. This has been particularly
important as a number of faculties and schools
have been reviewed. We have worked to
ensure student feedback from industrial action
has been heard, particularly in the Faculty of
Humanities.
We now support 420 societies, the largest total
in the UK by some distance. Individual society
memberships have levelled off over the last
couple of years to remain at 34,000. Over 1 in
3 students are involved in at least one student
group, totalling 14,200 students. Our societies
are doing amazing things, winning national
competitions and leading ground-breaking
campaigns.
Our groups have invited over 700 visiting
speakers onto campus, giving students the
chance to debate and be exposed to wider
social issues. Whilst there have been some
vigorous debates amongst our students over
the Prevent Duty, we are happy we treat our
student groups in an even-handed, enabling
way. We have not stopped any external
speaker during the course of the year and take
our duties under the Code of Practice on
Freedom of Speech very seriously. Over the
last six years, we have had 3657 external
speakers and only stopped one from speaking
due to safety concerns. The press coverage
around censorship is not borne out in reality of
our experiences at Manchester.
We have worked closely with Sport Manchester
over the last six months as part of their sports
review around athlete profiles and levels of
support. We have reached agreement to site
their offices in the Students’ Union building,
driving even more student led activity into our
premises. This partnership is critical to build a
consistent experience of sport and recreation
activities amongst students.
We continue to partner closely on the
implementation of the Stellify scheme, and all
our key student leadership roles feed into credit
on the ‘step up and lead’ part of the award.
Since establishing our student events function
two years ago, we have radically altered the
support to student groups putting on exciting
events for the benefit of other students. During
the course of the year, 14785 students
attended at least one of these event which
have been focused on culture, arts and
performance.

Page 7

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

As part of our work on effective student
engagement we jointly chair the Student
Engagement group, made up of Academics,
PSS staff and Students’ Union colleagues. We
have participated in work to refresh the student
charter/partnership
agreement,
develop
a
strategy for surveying students and think about
other
enhancement
themes
for
student
engagement.
The Union held its annual elections during late
February/Early March. The turnout was just on
7200 votes, which is the 3rd highest in the UK
this year, and 28 candidates stood for election
to these roles. Although there has once again
been a level of controversy surrounding the
elections, there were no complaints upheld
which resulted in any candidate disqualification.
The external review into the election rules has
simplified the process greatly, although there
still
remains
some
concerns
around
campaigning through individual devices. We will
take part in the review of SU elections this year
being
undertaken
by
NUS
for
future
recommendations. We also held a referendum
on our continued membership of NUS (in
accordance with our constitutional rules). On a
turnout of 4500, over 88% of students voted to
remain for the next three years.
Work has continued (and in some cases drawn
to a close) on a number of OfS funded projects.
These have included a Diversity & Inclusion
ambassador scheme which looks to tackle some
of the issues linked to the BAME attainment gap
and support initiatives to get these students to
engage in different ways with their learning,
curriculum design, access to support services
etc. The project around Postgraduate Wellbeing
finished during the year and has opened a
number of doors for our work with PGR
students, and led to the creation of a new full-
time officer role from July 2019.
The International Society is now embedded in
our building, and we are working through the
final requirements in relation to pensions to fully
merge the governance of the two organisations
in the new financial year. We have worked
closely to ensure we avoid duplication and see
one programme of activity for home and
international students.
We’ll help you get
the best future		 Create the best skills
development
programme for you
Develop brilliant part
time work
opportunities
Develop our advice
and wellbeing services
to ensure you are set
for the future		 We have worked in partnership with the
University to further embed the ‘Stellify’
programme to support students to articulate
and demonstrate their extra-curricular skills. So
far, over 6500 students have participated in the
first stages of the programme. We have
ensured all voluntary leadership roles across
the Union are embedded into the new HEAR,
and we have supported over 4000 leaders
during the last year.

Page 8

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

We have almost doubled the types of student
employment roles being undertaken in the
organisation. We have developed jobs in
finance, marketing, education, event support,
research and student advice in addition to
current roles across our commercial services.
Our Advice Centre continues to be well used by
students, and in the current circumstances, this
has become more important than ever. We
cover academic, welfare, housing and financial
advice. Over the last year, the advisors have
handled over 4100 cases from a wide variety of
students, and have saved them over £250,000
in returned housing deposits, benefits claimed
and other consumer refunds. We have
employed a number of students this year in
triage roles to support the team with the volume
of work coming through the centre.
The jobshop has continued to develop its
profile across the year, hosting two jobs fairs,
and working with over 120 employers. Over
2000 students are signed up to the database,
and we are looking to deploy more of the
services to our own student staff and
establishing agency services.
We’ll help you
discover and
connect with
Manchester		 Help you get to know
the city and its
opportunities
Help you engage with
the City through
positive community
action
Help you have an
amazing social life		 Our innovative Widening Participation and
Access work is now intrinsic to the University’s
Access Agreement and supports students to
lead projects encouraging young people to
consider University as an option. Access All
Areas has over 35 different projects with over
500 students volunteering.
We have continued to provide high quality
support to over 30 student-led community
volunteering projects every week, working with
people most in need in Greater Manchester.
Our volunteers tutor young people in schools,
provide triage support to homeless people
every evening, support and families living in
shelters and improve the environment with
community gardening projects. Over 2000
students volunteer with us through Student
Action and Access all Areas.
In response to the Covid-19 crisis, three of our
student groups have come together to establish
volunteering programmes to support key
workers in the NHS with shopping, advice and
other areas. In addition, our Intergenerational
project is supporting over 300 elderly residents
in Manchester with telephone contact to
combat loneliness.

Page 9

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

So far this year, our Rag group has raised over
£100,000 for local and national charities and
we had hoped this would grow over the next
year, with a new committee who are keen to
compete with some of the larger Rag groups
across the UK. This may be harder to achieve
given social restrictions. We have also worked
closely with the University once again to
promote the ‘Volunthero’ campaign in Student
Volunteering Week, celebrating the
achievements of volunteers both on and off
campus.
We’ll
help
you
understand
and
change the world
around you		 Help students create
change and have a
sense of social justice
Embed Diversity &
Liberation in
everything we do
Develop alternative
models using co-
operative principles to
help students and their
needs		 We have once again had representatives take
part in the Manchester City Council student
strategy board, taking a far more proactive
approach to community engagement. Our
Welfare & Community Officer also attends and
contributes to all major residents’ groups, and
we have re-affirmed our partnership with
Manchester Student Homes by providing space
on the ground floor of our building. We have
embedded the new Greater Manchester Student
Assembly with the five other Students’ Unions
across the city region. The GM Mayor is
supportive of the scheme and will be attending
the meetings across the next year. There are
some key concerns around transport, safety and
housing which it will be far more effective to work
with others on.
We have continued to strongly advocate on
student safety issues within the City following
our research and that of the University.
Following the successful pilot last year, we
have rolled out our ‘student angel’ scheme to
support vulnerable students in the night time
economy. Over the course of the academic
year (until point of closure), we ensured over
850 people were kept out of A&E and
supported over 1000 to get home safely.
Manchester City Council have already
confirmed funding for future years. Many
medical and related students volunteer in the
scheme to give them early valuable
experience.
Our liberation campaigns have gone from
strength to strength. Over 2500 students and
community activists took part in the annual
reclaim the night march in February, making it
the biggest march of its kind in the UK this
year. We have improved support for our
liberation campaign groups (women, BME,
Disabled and LGBT) ensuring a range of high-
profile campaigns such as Black History Month
have been delivered to thousands of students.

Page 10

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

We’ll build a truly
outstanding
Students’ Union		 Develop our people
and our physical
facilities to transform
our Union
Become the experts
on our students and
amplify their voices
Transform our digital
capacity and ensure
online delivery of our
services		 In February, we commissioned a new CRM and
EPOS system through the Students’ Union
Management System (SUMS). This new
system will transform the way we engage,
measure and support our students, helping us
identify areas of low participation. This unified
system will also allow greater access to
financial and governance information for our
student leaders and groups. It replaces around
6 unconnected systems which had reached the
end of their useful life.
Following the challenges of a four year building
project, we began to see much greater footfall
into our spaces (at around 24% higher than the
same point prior to redevelopment. We were on
track for nearly full usage of all our spaces prior
to lockdown.
A really important part of our work is
developing research and insight which powers
our representation and advocacy systems. We
have conducted a series of ground-breaking
research projects throughout the year and have
spoken to over 6000 students in a research
capacity. An example of the work completed
includes our ‘Student Life Pulse’ which has
tested student attitudes, behaviours and
satisfaction with the Union, University and the
City each month throughout the course of the
academic year. We are hearing from around
650-700 per month and producing a range of
reports which are driving internal improvements
in the Union. We have also launched a piece of
research to understand students’ perceptions
of the shift to online teaching which has
brought a range of helpful suggestions to the
heart of decision making.
We have re-formed a new marketing
department around the principles of ‘student
generated content,’ expanding the number of
part time roles in this area to better engage
with sub-sets of the student body. We have
developed more of a thematic approach to
marketing, with clear planning cycles to
enhance delivery and evaluation of marketing
campaigns.

c. Investment policy and performance

The Union’s investments are made after due consideration is given by the Trustees to both environmental and ethical matters and are subject to constant review to ensure that these criteria are met, Investment revaluation losses for the year amounted to £70k (2019: £40k loss).

Page 11

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. These included confirmation from our principal funder (The University of Manchester) of the previously agreed Block Grant for the next two years. The Trustees have also sought additional funding from Arts Council England through the Culture Recovery Fund, and approved the further control and conversion of some investments to cash reserves. For these reasons they continue to adopt the going concern basis in preparing the financial statements. Further details of the adoption of the going concern basis can be found in the Accounting Policies.

b. Financial risk management objectives and policies

In the year to the 31st July 2020 the Union has recorded a deficit of £2.3m (£0.5m, restated deficit 2019). This includes £2.5m of pension & investment revaluation and pre-revaluation profits on normal activity of £0.2m. As the first financial year following the end of a substantial building project, we made an extremely positive start to the year, with projections exceeding our budgeted position for the first time in nearly 3 years. A full closure of our services has resulted in a dramatic shift in this position during the second half of the year. We have made difficult decisions throughout the year, such as a freeze on recruitment, pay restraint, cost recovery from government support schemes and a strict approach to expenditure budgets, requiring highlevel approval. Whilst this has been an unprecedented time of financial pressure, through careful cash management and cost control, we have been able to maintain our forecasted cash position in line with the reserve policy.

We are grateful for the continued support from the University in terms of our block grant settlement which, which was increased by around 2% to £2.44m (£2.40m 2018-19) and the additional grants to accelerate projects relating to access, residents’ associations and off-campus students. We also recognise the significant investment in the Students’ Union building and are grateful for the University’s recognition of the mutual benefit of a high performing Students’ Union.

Net liabilities are £2.9m. This includes the pension deficit figure of £7.9m, which had a revaluation during the year, the value of which is currently £2.43m (£4.34m at the previous revaluation in 2016). This is a long-term liability for which the Union has an annual repayment plan.

Principal funding sources

Funding of the Union comes from the University of Manchester block grant which has been confirmed for 2020/21 as £2.46m (with an inflationary increase from 2019/20) and trading activities of the commercial entities which, in the year to 31st July 2020, generated income of £6.2m (£8.3m 2019) There is no reason to believe the current level of support from the University of Manchester will not continue over the coming years, and has been re-confirmed. A three-year funding settlement was re-negotiated during 2018/19 and will continue until 2022.

Expenditure

The expenditure for core purpose expenditure in the year was in line with the objectives set out in the 4-year Strategic Plan. We have shown restraint during the last five months however, whilst trying to ensure we enhance the student experience through representation and activities for our members.

Page 12

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

c. Principal risks and uncertainties

The key risks faced by the Union are outlined below

Loss of key personnel

There is a high level of staff turnover and historically the Union has not been great at documenting processes. This does mean that when key people leave the organisation they can take valuable skills and insight with them. Mitigating work around developing operational procedures and guides have commenced and will continue over the forthcoming year.

Loss of commercial revenue

Commercial revenues are the second primary funding stream after the block grant. The challenges presented by the pandemic have been unprecedented, removing our ability to trade for five months of the year. We have taken advantage of as many funding streams as possible to solidify our position and allow us to recover when it is right to do so. We have reduced permanent staffing costs, increased scrutiny on performance, and are in discussions with other organisations about further income generating opportunities.

d. Reserves policy

Overall approach

A detailed 5 year reserve policy has been set by the Board and will allow us to make a substantial investment in our estate during the extension works. In addition, our current financial strategy provides for a modest level of capital expenditure and identifies and allocates funding for the achievement of our strategic aims. The Trustees will continue to review the reserves policy over the forthcoming year. The approach to reserves can be broken down into the following categories:

Unrestricted reserves

The reserve policy makes a provision for

The minimum unrestricted reserve balance is £795,000.

The unrestricted reserves stated in the accounts include the pension deficit that is also listed as a creditor. This is a long-term liability and would not become due immediately. As such the reserve policy allows for the separating out of the Pension liability and it is the unrestricted balance less the pension deficit to which the policy is applied. Free reserves are therefore £764,987 (2019 restated: £439,507).

Designated reserves

Fixed assets and investment funds are held as designated reserves as this is not freely available cash. From time to time the Board may be asked to designate reserves for a specific purpose. The Union currently holds £40,000 as a designated reserve. This is income that was received by the Armitage Trust to further the Union's charitable purposes. Some of this fund has been allocated for student access to activities and student enterprise, the plans for how these funds will be accessed are currently being developed.

Page 13

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Restricted reserves

In addition to the block grant the Union receives periodic funding from the University for specific projects. Any balances in these projects are treated as restricted reserves to be used on delivering the aims of the project.

Structure, governance and management

a. Constitution

The company and the group is registered as a charitable company limited by guarantee and was set up by a Trust deed

The company and the group is constituted under a Trust deed and has registered charity number 1144146

Governance, structure and management

University of Manchester Students’ Union is the Students’ Union of the University of Manchester within the meaning of section 22 of the Education Act 1994. It registered as a Private Company Limited by Guarantee on 1st September 2011 and as a Charity on 5th October 2011.

Governing document

University of Manchester Students’ Union (henceforth referred to as “the Union”) is governed by the Articles of Association.

The Union is required by the Education Act 1994 to be run in accordance with the Code of Practice on the Students’ Union as revised from time to time by The University of Manchester.

b. Method of appointment or election of Trustees

The Directors of the Union are the Trustees for the purposes of Charity Law (they are referred to collectively from now onwards as “the Trustees”). The Board of Trustees comprises of up to eight Officer Trustees, up to three Student Trustees and up to three External Trustees.

The Officer Trustees are elected to serve a 12-month term by the student membership of the Union in accordance with the Bye-Law on Elections. Officer Trustees must be students or Officer Trustees at their time of election, and can run for a second consecutive or non-consecutive term of office. They serve in office from 1st August to 31st July in the following year (changed during this year). An Officer Trustee is automatically a member of the Union for their term of office.

The Student Trustees are appointed by the Trustees on the recommendation of the Appointments Panel. They can serve one term of up to two years or until they cease to be a student, whichever is sooner.

The External Trustees are appointed by the Trustees on the recommendation of the Appointments Panel. They serve a term of three years. They are eligible for re-appointment once and can serve a second term. In the term covering these accounts, two external trustees were appointed to join the Board, focusing on human resource and commercial development expertise (identified through a skills audit of the board).

c. Policies adopted for the induction and training of Trustees

All Trustees are given a formal induction upon their appointment. The Trustees are offered a variety of

Page 14

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

training opportunities throughout their time as Trustees, and the Union reviews this regularly. The Chief Executive ensures that ongoing training needs are monitored and responded to.

d. Pay policy for senior staff

The senior staff pay policy is outlined in the remuneration policy approved by the People and Culture committee. Senior salaries are benchmarked against other students’ unions and third sector organisations to ensure that they remain at a level that is competitive and promotes the retention of talent within the Union. This is reviewed annually. A decision to show pay restraint in light of the pandemic was made within the year. No cost of living or increments have been payable across the staff team.

e. Organisational structure and decision making

Organisation structure

The organisation has a staff team headed up by the Chief Executive who is responsible for delivery of activity in line with the strategic framework. Some aspects of decision making are delegated to the staff team as detailed in the scheme of delegated authority. This is reviewed annually and approved by the trustee board.

Decision making processes

The Trustees hold ultimate responsibility and decision-making power regarding the affairs of the Union. They are responsible for maintaining legal, financial and reputational integrity of the Union, as well as setting strategy, overseeing governance and directing management and administration. The Trustees are the guardians of all Union assets.

The Union is a democratic organisation and as such there are mechanisms for members of the Union to influence the direction and activities of the Union.

Trustee Board Committees

The Board is supported in its work by five Board Committees: the Governance and Appointments Committee, the Audit and Risk Committee, the People and Culture Committee, the Student Engagement and Participation Committee and the MAV & Commercial Board.

Governance and Appointments

This works on behalf of the Board to interview potential new Trustees and make recommendations. It also makes recommendations on the governance structure of the organisation.

Audit and Risk

This committee is responsible for conducting assurance and risk management on behalf of the Board. In this regard, it conducts detailed scrutiny into the Union’s finances and reviews the Union’s risk register at its meetings. It also is responsible for assessing the effectiveness of the Union’s internal controls. The Committee is responsible for overseeing the Union’s relationship with its External Auditors.

People and Culture Committee

This committee is responsible for oversight of employee policies and for managing matters concerning the remuneration of the Chief Executive and Officer Trustees.

Student Engagement and Participation Committee

This committee is responsible for oversight and scrutiny of the Union’s core student engagement work around representation, development and activities. It monitors student satisfaction and develops plans to improve this.

Page 15

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

MAV and Commercial Board

This board is responsible for oversight of all income generating services, ensuring commercial strategies are developed and deployed to maximise income for core purpose activities. It also provides specific oversight of all and any trading subsidiaries.

Executive Committee

The Officer Trustees comprise the Executive Committee. The Executive Committee is responsible for representing the views of students, for the implementation of all democratically adopted policy and for providing the political leadership of the Union.

Union Senate and Referendums

The Union convenes the Union Senate on a regular basis. This is the democratic governing body for the union and makes policy that can be submitted by any student. Each Senate is made up of around 70 elected student officers and 20 randomly selected students, to ensure that the panel is representative of the whole student population. Decisions on policy may also be referred to a referendum of all students to make a decision.

f. Related party relationships

Relationship with the University of Manchester

Under the Education Act 1994, the University of Manchester has a statutory duty to take such steps as are reasonably practicable to ensure that the Union operates in a fair and democratic manner

and is held to proper account for its finances. The Union therefore works alongside the University of Manchester in ensuring that the affairs of the Union are properly conducted and that the educational and welfare needs of the Union’s members are met. The formal relationship with the University is governed by a Code of Practice and the Union works closely with the University and its students to develop appropriate ByeLaws for its working practices. The University of Manchester is not a related party as defined by the Charities FRS 102 Statement of Recommended Practice (SORP).

The Senior Management of the University, the Officer Trustees and the Union’s senior management team meet regularly in the University-Union Relations Committee, which examines the activities and finances of the Union. Two Officer Trustees are members of the University Board of Governors and Officer Trustees also sit on its Senate and General Assembly. The Union is financially dependent upon the support of the University; in 2019/20 its block grant comprised £2.44m.

Subsidiary Undertakings

During the year the Union operated two trading subsidiaries, Manchester Academy Venues Ltd (company number 8638433) and Th1rt3en Media Ltd (company number 10854553). Manchester Academy Venues Ltd and Th1rt3en Media Ltd are related parties under FRS8, and the Union is the controlling party.

Relationship to the National Union of Students

The Students’ Union is a member of the National Union of Students (NUS). This is a national federation of Students’ Unions. The Students’ Union co-operates with NUS and other Student Unions in pursuit of some of its charitable objectives. This co-operation relates mainly to campaigning on national student issues and support from NUS with organisational development as well as membership of a purchasing consortium.

g. Risk management

The Trustee Board is responsible for ensuring that the Students’ Union has a robust approach to the management of opportunities and risks, and the Audit and Risk Sub-committee reviews the highest strategic level risks on a regular basis through a delegation of authority. The operational Health, Safety and Legal committee have regular oversight of the risk register and are responsible for liaising with departments to ensure that it remains up to date. A range of systems and processes are in place to mitigate the risks faced by

Page 16

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

the Students’ Union.

Financial and control risks are mitigated through a robust budget management process and supporting policies and procedures for the authorisation and processing of transactions. Procedures are also in place to ensure legal compliance with Health and Safety and Employment law and to safeguard staff, volunteers and participants in all activities organised by the Students’ Union. These procedures are regularly reviewed to ensure that they meet the needs of the Students’ Union. The Trustees believe that all major risks are appropriately addressed and mitigated.

During the course of the year, an urgent need for further risk oversight was identified by the Senior Leadership Team of the Union. Monthly meetings were held with all members of the Trustee Board and SubCommittees to focus on changing financial and risk profiles. Regular forecasting and tactical papers were presented to ensure obligations were understood and met throughout the governance structure.

h. Public benefit statement

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regards to the guidance published by the Charity Commission regarding public benefit as detailed in the achievements and performance section of this report.

i. Effective Governance

The Union has adopted the Code of Good Governance for the Voluntary Sector, and has applied all recommended standards to its work. The trustees have conducted a full audit against the standards, and this will remain an annual commitment on the cycle of business for the board.

The trustees took part in an external audit of board effectiveness provided by the National Union of Students (NUS) during the year. This audit assessed the board against a series of indicators specifically developed for Students’ Union boards. A resultant action plan has been developed to drive improvements across the next year.

Page 17

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Plans for future periods

a. Future developments

The table below outlines the operational priorities for 2020/21 and the key initiatives that will be delivered by teams in support of the strategic plan. The board agreed the following overall objectives and outcomes to ensure a clear sense of priorities during a period of real uncertainty:

Ensuring a sense of A large part of this work is focused on how we can deliver our varied services
community and in light of COVID, how we can transition activity to be delivered digitally and
belonging for our make the best use of our spaces to ensure that we are providing a safe
students environment for those students wishing to return.
Enhance the voice Employability is likely to be a key concern for students today, especially as we
of our students are expecting to see unemployment hit the highest levels for decades in the
during the coming months. We will be focusing on supporting students to both find work
uncertainty of 20-21 during their studies and also developing skills to aid their future employment.
We also aim to become more insight focused to ensure that all we do is
relevant to students today
Making us a values We expect to finalise the new values framework in 2020 and then begin to
focused embed in 2021. The aim of this is to ensure we have a consistent set of
organisation behavioural standards to which all staff are held accountable.
Making our Union We need to bring our current digital provision up to date to meet the demands
truly digital first of our students. SUMS will provide a much better student experience that will
also allow us to improve efficiency and processes. As we move to new ways
of working, we also have an aim to transition as many of our operational
activity to web based systems as possible to enable a more flexible workforce
Building a This is sustainability in it broadest sense encompassing environmental and
sustainable financial matters as well as ensuring that we have a staffing infrastructure to
organisation support the on-going needs of the business. In order to mitigate against
potential future block grant cuts we will need to ensure that we grow our other
revenue streams whilst at the same time, ensuring that we are maximising
investment in the activities will really demonstrate the value that we add to
student life, such as representation.

The objectives developed by each functional area are split using a balanced scorecard which is cascaded through each team for monitoring and evaluation purposes. The high level departmental plans for 2020/21 are:

Page 18

UNIVERSITY OF MANCHESTER STUDENTS. UNION IA company limited by guarantee) TRUSTEES. REPORT Icontinuedl FOR THE YEAR ENDED 31 JULY 2020 Page 19

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Funds held as custodian

The Union itself did not have any fundraising activities under section S162A of the Charities Act 2011 however it acts as custodian for several activities:

Clubs & Societies

Funds raised by the many clubs and societies run by its members - these funds are separately identified in the finance system and the balance at the year-end was £332k (2019: £298k).

RAG

Funds raised by students under the RAG (Raising and Giving) initiative for distribution to nominated charities. £27k (2019: £27k) was raised in the year.

Residents associations

Funds held on behalf of the Residents’ Associations of the University halls of residence to operate representation and social activities - these funds are separately identified in the finance system and the balance at the year-end was £193k (2019: £70k).

Page 20

UNIVERSITY OF MANCHESTER STUDENTS' UNION (A company limited by guarantee)

TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 JULY 2020

Trustees' responsibilities statement

The Trustees (who are also directors of University of Manchester Students' Union for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

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

Auditor

The auditor, Crowe U.K. LLP, has indicated its willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditor at a meeting of the Trustees.

This report was approved by the Trustees, on22 April 2021 and signed on their behalf by:

Kwame Asamoah-Kwarteng, General Secretary

Page 21

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF MANCHESTER STUDENTS' UNION

Opinion

We have audited the financial statements of University of Manchester Students' Union (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 July 2020 set out on pages 25 to 52. 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).

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion the financial statements:

Basis for qualified opinion

We were unable to confirm the existence of a cash investment fund held by the University of Manchester Students' Union as at the reporting date. The most recent statement, dated 8 May 2020, details a material balance of £170,423 is held in an account in the Students' Union's name however no documentation was available to confirm whether this balance was still held in the aforementioned account as at the reporting date and therefore we were unable to obtain sufficient appropriate audit evidence as to the existence and ownership of these funds as at the reporting date..

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our

Page 22

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF MANCHESTER STUDENTS' UNION

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.

Opinion on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, 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 Trustees' Report including the Group Strategic Report.

Arising solely from the limitation of scope of our work relating to investments, referred to above:

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, 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

Page 23

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF MANCHESTER STUDENTS' UNION

misstatement, whether due to fraud or error.

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

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.

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

Use of our report

This report is made solely to the 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Jayson (Senior statutory auditor)

for and on behalf of

Crowe U.K. LLP

Statutory Auditor

3rd floor The Lexicon Mount Street Manchester M2 5NT Date: 23 April 2021

Page 24

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020

Unrestricted
funds
Note
2020
£
Income from:
Donations and legacies
2
2,457,398
Charitable activities
3
401,894
Trading activities
4
3,259,238
Investments
5
3,107
Total income
6,121,637
Expenditure on:
Trading activities
6
3,522,224
Charitable activities
7
2,350,863
Other expenditure
8
2,436,695
Total expenditure
9
8,309,782
Net expenditure before investment
gains/(losses)
(2,188,145)
Net gains/(losses) on investments
14
(70,040)
Net expenditure before other recognised
gains and losses
(2,258,185)
Net movement in funds
(2,258,185)
Reconciliation of funds:
Total funds brought forward
(701,021)
Total funds carried forward
(2,959,206)		 Restricted
funds
2020
£
126,289
-
-
-
126,289
-
136,091
-
136,091
(9,802)
-
(9,802)
(9,802)
39,768
29,966		 Total
funds
2020
£
2,583,687
401,894
3,259,238
3,107
6,247,926
3,522,224
2,486,954
2,436,695
8,445,873
(2,197,947)
(70,040)
(2,267,987)
(2,267,987)
(661,253)
(2,929,240)		 Restated
Total
funds
2019
£
2,627,523
224,035
4,855,936
795
7,708,289
5,093,461
2,925,020
341,281
8,359,762
(651,473)
128,080
(523,393)
(523,393)
(137,860)
(661,253)

The notes on pages 29 to 52 form part of these financial statements.

Page 25

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 7759820

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Investments
17
Cash at bank and in hand
Creditors:amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more
than one year
19
Net liabilities
Charity Funds
Restricted funds
21
Unrestricted funds
21
Total deficit		 £
69,452
588,548
183,885
1,101,272
1,943,157
(1,473,651)		 2020
£
3,283,609
865,092
4,148,701
469,506
4,618,207
(7,547,447)
(2,929,240)
29,966
(2,959,206)
(2,929,240)		 £
77,337
664,800
181,399
865,176
1,788,712
(1,761,492)		 Restated
2019
£
3,859,638
935,132
4,794,770
27,220
4,821,990
(5,483,243)
(661,253)
39,768
(701,021)
(661,253)

The financial statements were approved and authorised for issue by the Trustees on 22 April 2021 and signed on their behalf, by:

Kwame Asamoah-Kwarteng, General Secretary

The notes on pages 29 to 52 form part of these financial statements.

Page 26

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 7759820

COMPANY BALANCE SHEET AS AT 31 JULY 2020

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Investments
17
Cash at bank and in hand
Creditors:amounts falling due within one
year
18
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more
than one year
19
Net liabilities
Charity Funds
Restricted funds
Unrestricted funds
Total deficit		 £
69,452
948,921
183,885
908,597
2,110,855
(1,643,118)		 2020
£
3,283,609
865,108
4,148,717
467,737
4,616,454
(7,547,447)
(2,930,993)
26,067
(2,957,060)
(2,930,993)		 £
44,616
844,681
181,399
506,523
1,577,219
(1,551,769)		 Restated
2019
£
3,859,638
935,148
4,794,786
25,450
4,820,236
(5,483,243)
(663,007)
39,661
(702,668)
(663,007)

The financial statements were approved and authorised for issue by the Trustees on 22 April 2021 and signed on their behalf, by:

Kwame Asamoah-Kwarteng, General Secretary

The notes on pages 29 to 52 form part of these financial statements.

Page 27

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2020

Note
Cash flows from operating activities
Net cash provided by operating activities
23
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
24		 2020
£
394,612
2,710
(158,740)
(156,030)
238,582
1,046,575
1,285,157		 Restated
2019
£
63,616
795
(1,322,714)
(1,321,919)
(1,258,303)
2,304,878
1,046,575

The notes on pages 29 to 52 form part of these financial statements.

Page 28

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (March 2018) - (Charities SORP (FRS 102) (updated October 2019)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

University of Manchester Students' union meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

University of Manchester Students' union constitutes a public benefit entity as defined by FRS 102.

The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

No separate SOFA has been presented for the company alone as permitted by section 408 of the Companies Act 2006.

University of Manchester Students' Union is a private charitable company limited by guarantee, incorporated in England and Wales. Further general information can be found on page 1.

1.2 Company status

The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Page 29

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting Policies (continued)

1.3 Going concern

UMSU meets its day-to-day working capital requirements through its banking facilities, cash holdings and the strong relationships it has with its funders. The Union's original forecasts and projections, taking account of previous likely changes in student numbers, show that UMSU should be able to operate within the level of its current facility and is assessing opportunities to generate cash to ensure liquidity in the medium term. The Union has also taken steps to utilise the various support mechanisms instigated by the UK Government, including use of the Coronavirus Job Retention Scheme and HMRC's Time to Pay Scheme.

At the time of approval of these financial statements, the Covid-19 virus continues to develop and has been designated a global pandemic by the World Health Organisation. University campuses have been closed with teaching online until further notice although the UK government has announced a road map which allowed students on practical courses to return from March 2021. Both short-term and long-term effects of the rapidly escalating situation are unknown. As for many businesses at this time, the Trustees consider that there is potential for significant impact on the Union's key services and other commercial operations. The Trustees have undertaken planning and forecasting and continue to closely monitor the developing situation with a base scenario, areas where variables may differ and the impact of these. Despite the current circumstances the Trustees believe that the company's financial resources and contingency planning is sufficient to ensure the ability of the company to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and due to the options outlined above to the Union means there is not a material uncertainty as to whether the company can continue as a going concern and have prepared the financial statements on a going concern basis.

1.4 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources based on staff headcount.

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

Page 30

UNIVERSITY OF MANCHESTER STUDENTS' UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting Policies (continued)

1.6 Basis of consolidation

The financial statements consolidate the accounts of University of Manchester Students' union and all of its subsidiary undertakings ('subsidiaries').

The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income and expenditure account.

The income and expenditure account for the year dealt with in the accounts of the company was £2,197,946 deficit (2019 - £454,855) .

1.7 Intangible fixed assets and amortisation

Intangible assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.

Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset, less their estimated residual value, over their expected useful lives on the following bases:

1.8 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

1.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Gains/(losses) on investments’ in the Statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

Page 31

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting Policies (continued)

1.10 Interest receivable

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

1.11 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.12 Debtors

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

1.13 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.14 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

1.15 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.16 Pensions

Page 32

UNIVERSITY OF MANCHESTER STUDENTS' UNION (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting Policies (continued)

The company participates in the Students' Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuatry with the rates of contribution payable being determined by the trustees on the advice of the actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributyed to the charity. Under the terms of the charity SORP, in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year.

Where the charity has entered into an agreement to fund a deficit in the scheme, the charity recognises a liability for the contributions payable that arise from the agreement and recognise the resulting expense in the Statement of Financial Activities.

The charity also participates in the NUS Pension Scheme (NUSPS), a defined contributions scheme. Contributions are accounted for as paid throughout the year.

1.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

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.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 33

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

1. Accounting Policies (continued)

1.18 Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The Union occupies the premises on a rent free basis from the University. No donation in kind can be estimated in respect of this arrangement due to the bespoke nature of the building and its location.

Critical areas of judgment:

The items in these financial statements where these judgements and estimates have been made include assumptions around financial assets and liabilities of pension scheme contributions, the discount rate applied thereto and the valuation of fixed asset investments.

The asset and liabilities are estimated by an independent, qualified actuary who assesses the value for SUSS as a whole and based on this, a deficit recovery plan is agreed between the particuparing employers, the Union of which is one, and the SUSS trustees.The discount rate applied to the aforementioned obligatory future deficit contribution paymenets is equivalent to that of a high quality corporate bond with a maturity date the same as the mandatory repayment period, being 15 years.

Fixed asset investments are valued according to the prevailing market rates for those investments. All such rates are publicly available.

2. Income from donations and legacies

Unrestricted
funds
2020
£
Other voluntary income
-
University Block Grant
2,457,398
Total donations and legacies
2,457,398
Total 2019
2,402,351		 Restricted
funds
2020
£
126,289
-
126,289
225,172		 Total
funds
2020
£
126,289
2,457,398
2,583,687
2,627,523		 Total
funds
2019
£
225,172
2,402,351
2,627,523

Page 34

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Income from donations and legacies 2019
Unrestricted
funds
£
Other voluntary income
-
University Block Grant
2,402,351
Total
2,402,351		 Restricted
funds
£
225,172
-
225,172		 2019
£
225,172
2,402,351
2,627,523

3. Income from charitable activities

Unrestricted
funds
2020
£
Membership support
21,748
Education & Advocacy
31,412
Union events & visitor service
134,722
Communications
17,998
Other
196,014
401,894
Total 2019
224,035		 Restricted
funds
2020
£
-
-
-
-
-
-
-		 Total
funds
2020
£
21,748
31,412
134,722
17,998
196,014
401,894
224,035		 Total
funds
2019
£
3,185
15,124
197,021
600
8,105
224,035

Income from charitable activities 2019

Unrestricted
funds
£
Membership support
3,185
Education & Advocacy
5,250
Union events & visitor service
206,895
Communications
600
Other
8,105
Total
224,035		 2019
£
3,185
5,250
206,895
600
8,105
224,035

Page 35

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

4. Trading activities

Unrestricted
funds
2020
£
Bars
635,505
Catering
175,760
Job shop
7,874
Retail
104,648
Turnover from trading subsidiaries
2,335,451
3,259,238
Total 2019
4,855,936		 Restricted
funds
2020
£
-
-
-
-
-
-
-		 Total
funds
2020
£
635,505
175,760
7,874
104,648
2,335,451
3,259,238
4,855,936		 Total
funds
2019
£
785,723
256,971
3,758
182,498
3,626,986
4,855,936

Turnover from trading subsidiaries represents income generated from marketing activities, photography commission, social events and the operation of entertainment venues.

5. Investment income

Unrestricted
funds
2020
£
Investment income
3,107
Total 2019
795		 Restricted
funds
2020
£
-
-		 Total
funds
2020
£
3,107
795		 Total
funds
2019
£
795

Page 36

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

6. Costs of trading activities

Unrestricted
funds
2020
£
Bars
272,140
Catering
76,316
Retail
89,187
Job Shop
7,497
Expenditure of trading subsidiaries
933,054
Allocated support costs
601,587
Pay Costs
944,596
Depreciation
597,847
3,522,224
Total 2019
5,093,461		 Restricted
funds
2020
£
-
-
-
-
-
-
-
-
-
-		 Total
funds
2020
£
272,140
76,316
89,187
7,497
933,054
601,587
944,596
597,847
3,522,224
5,093,461		 Total
funds
2019
£
337,052
151,521
133,421
-
1,986,103
748,022
1,145,209
592,133
5,093,461

7. Analysis of expenditure on charitable activities

Unrestricted
funds
2020
£
Membership support
580,098
Education & Advisory
993,019
Union events & visitor service
340,838
Communications
397,358
Grant funded projects
-
Governance costs
39,550
2,350,863
Total 2019
2,688,624		 Restricted
funds
2020
£
-
-
-
-
136,091
-
136,091
236,396		 Total
funds
2020
£
580,098
993,019
340,838
397,358
136,091
39,550
2,486,954
2,925,020		 Total
funds
2019
£
677,131
961,796
526,773
481,413
236,396
41,511
2,925,020

Page 37

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Analysis of expenditure on charitable activities 2019
Unrestricted
funds
£
Membership support
677,131
Education & Advisory
961,796
Union events & visitor service
526,773
Communications
481,413
Grant funded projects
-
Governance costs
41,511
Total
2,688,624
Other expenditure
Unrestricted
funds
2020
£
SUSS Pension Movement
2,436,695
Total 2019
341,281		 Restricted
funds
£
-
-
-
-
236,396
-
236,396
Total
funds
2020
£
2,436,695
341,281		 2019
£
677,131
961,796
526,773
481,413
236,396
41,511
2,925,020
Total
funds
2019
£
341,281

8. Other expenditure

The SUSS pension movement for the year reflects the fact that following the 2019 actuarial valuation of the Scheme, the period over which deficit repayments are required to be made has been extended by three years to June 2035 and the rate at which annual payments increase has been amended for 2021/22 to be 20% rather than the previously set rate of 5%. After this 20% increase in 2021/22, the increases revert back to 5% per annum. Finally the discount rate applied to the future deficit repayments has fallen from 2.1% to 1.45% to reflect a 15 year high quality corporate bond.

Page 38

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

9.
Analysis of Expenditure by
Expenditure on trading
activities
Costs of raising funds
Membership support
Education & Advisory
Union events & visitor
service
Communications
Grant funded projects
Governance costs
Charitable activities
SUSS Pension Cost
Total 2019		 expenditure type
Staff costs Depreciation
Other costs
2020
£
2020
£
2020
£
944,596
597,122
1,980,506
944,596
597,122
1,980,506
501,998
47,851
30,249
801,283
54,149
137,587
210,074
14,665
116,099
238,663
18,726
139,969
136,091
-
-
23,534
2,256
13,760
1,911,643
137,647
437,664
-
-
2,436,695
2,856,239
734,769
4,854,865
2,483,206
723,458
5,153,098		 Total
2020
£
3,522,224
3,522,224
580,098
993,019
340,838
397,358
136,091
39,550
2,486,954
2,436,695
8,445,873
8,359,762		 Total
2019
£
5,093,461
5,093,461
677,131
961,796
526,773
481,413
236,396
41,511
2,925,020
341,281
8,359,762

Page 39

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

Expenditure on raising voluntary income

Costs of raising funds

Membership support
Education & Advisory
Union events & visitor service
Communications
Grant funded projects
Governance costs
Charitable activities

SUSS Pension Cost
Total
 Staff costs
£
1,145,209
1,145,209
273,170
458,488
149,579
233,803
200,581
22,376
1,337,997
-
2,483,206		 Depreciatio
n
£
Other costs
£
592,133
3,356,119
592,133
3,356,119
44,880
359,081
48,075
455,233
18,262
358,932
18,028
229,582
-
35,815
2,080
17,055
131,325
1,455,698
-
341,281
723,458
5,153,098		 2019
£
5,093,461
5,093,461
677,131
961,796
526,773
481,413
236,396
41,511
2,925,020
341,281
8,359,762

10. Net income/(expenditure)

This is stated after charging:

2020 2019
£ £
Depreciation of tangible fixed assets:
- owned by the charitable group 734,769 677,404
Amortisation of intangible fixed assets - 52,146
Auditor's remuneration - audit 10,500 10,000
Auditor's remuneration - other services 3,300 3,200

During the year, Trustees received remuneration of £166,650 (2019 - £156,210) and related employer pension costs of £4,314 (2019 - £3,901) comprising of the cost of employing the 8 (2019 - 8) sabbatical representation officers.

During the year, no Trustees received any benefits in kind (2019 - £NIL).

3 Trustees received reimbursement of expenses amounting to £362 in the current year, (2019 - 0 Trustees - £NIL).

Page 40

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

11. Staff costs

Staff costs were as follows:

Wages and salaries
Social security costs
Other pension costs		 2020
£
2,583,041
180,880
92,318
2,856,239		 2019
£
2,204,290
196,583
82,333
2,483,206

The average number of persons employed by the company during the year was as follows:

Manchester Academy Venues
Media Sales
Union Commercial
Marketing and communication
Membership support
Student voice
Union events and visitor services
House
Finance and resource
Central
The number of higher paid employees was:
In the band £60,001 - £70,000		 2020
No.
10
3
11
7
14
22
4
4
5
5
85
2020
No.
2		 2019
No.
22
3
29
9
15
23
7
5
7
4
124
2019
No.
1

Key management consists of officer trustees and the chief executive officer as detailed on page 1. Their aggregate remuneration (including employer pension costs) totalled £237,690 (2019 - £228,279) during the year.

Page 41

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

12. Intangible fixed assets

Intangible fixed assets
Group and Company
Cost
At 1 August 2019 and 31 July 2020
Amortisation
At 1 August 2019 and 31 July 2020
Carrying amount
At 31 July 2020
At 31 July 2019		 Licences
£
32,540
32,540
-
-

13. Tangible fixed assets

Group and Company
Cost
At 1 August 2019
Additions
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the year
At 31 July 2020
Net book value
At 31 July 2020
At 31 July 2019		 Leasehold
property
£
1,247,798
-
1,247,798
1,043,987
22,646
1,066,633
181,165
203,811		 Academy
Refurb
£
3,989,220
-
3,989,220
2,701,517
204,733
2,906,250
1,082,970
1,287,703		 Fixtures and
fittings
£
1,293,270
158,740
1,452,010
998,785
177,231
1,176,016
275,994
294,485		 Union
Refurb
£
3,410,721
-
3,410,721
1,337,082
330,159
1,667,241
1,743,480
2,073,639		 Total
£
9,941,009
158,740
10,099,749
6,081,371
734,769
6,816,140
3,283,609
3,859,638

Page 42

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. Fixed asset investments

Group
Market value
At 1 August 2019 (restated)
Revaluations
At 31 July 2020
Group
Market value
At 1 August 2019 (restated)
Revaluations
At 31 July 2020
Group investments at market value comprise:
Unlisted investments
Group
Total market value		 Unlisted
securities
£
935,130
(70,040)
865,090
Sub total
brought
forward
Shares in
group
undertakings
£
£
935,130
2
(70,040)
-
865,090
2
2020
£
865,090
2
865,092		 Sub total
carried
forward
£
935,130
(70,040)
865,090
Total
£
935,132
(70,040)
865,092
Restated
2019
£
935,132
-
935,132

All the fixed asset investments are held in the UK

Further details about the shareholdings, financial performance and position of the group undertakings are included in note 27.

Page 43

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

14. Fixed asset investments (continued)

Company
Market value
At 1 August 2019 (restated)
Revaluations
At 31 July 2020
Company
Market value
At 1 August 2019 (restated)
Revaluations
At 31 July 2020
Company investments at market value comprise:
Unlisted investments
Group
Total
All the fixed asset investments are held in the UK		 Unlisted
securities
£
935,146
(70,040)
865,106
Sub total
brought
forward
Shares in
group
undertakings
£
£
935,146
2
(70,040)
-
865,106
2
2020
£
865,106
2
865,108		 Sub total
carried
forward
£
935,146
(70,040)
865,106
Total
£
935,148
(70,040)
865,108
Restated
2019
£
935,146
2
935,148

15. Stocks

Finished goods and goods for resale Group
Company
2020
2019
2020
2019
£
£
£
£
69,452
77,337
69,452
44,616

Page 44

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

16. Debtors

Debtors
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Current asset investments
Unlisted investments		 Group
2019
£
223,238
-
158,521
283,041
664,800
Group
2019
£
181,399		 2020
£
50,808
561,379
148,546
188,188
948,921
2020
£
183,885		 Company
2020
£
221,842
-
148,984
217,722
588,548		 2019
£
94,805
84,198
623,167
42,511
844,681
Company
2020
£
183,885		 2019
£
181,399

17. Current asset investments

18. Creditors: Amounts falling due within one year

Bank loans and overdrafts
Other loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
SUSS pension
Other creditors
Accruals and deferred income		 Group
2019
£
-
4,914
115,679
-
121,932
373,681
481,503
663,783
1,761,492		 2020
£
59
1,580
45,800
416,450
55,217
363,301
593,143
167,568
1,643,118		 Company
2020
£
59
1,580
154,565
-
55,217
363,301
711,172
187,757
1,473,651		 2019
£
-
4,914
43,124
367,250
55,884
373,681
433,333
273,583
1,551,769

Included within creditors are amounts held on behalf of student clubs and societies. The total held as at 31 July 2020 was £525,208 (2019: £356,954).

Page 45

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

19. Creditors: Amounts falling due after more than one year

Creditors: Amounts falling due after more than one year
Group
2020
2019
£
£
SUSS pension (see note 24)
7,547,447
5,483,243
Creditors include amounts not wholly repayable within 5 years as follows:
Group
2020
2019
£
£
Repayable by instalments
5,677,118
4,415,465		 2020
£
7,547,447
2020
£
5,677,118		 Company
2019
£
5,483,243
Company
2019
£
4,415,465

20. Prior year adjustment

There has been a prior period adjustment which has been made in the financial statements.

A Kames investment balance was not included in the 2019 financial statements in error. The value as at 8 May 2020 (the closest date for which a statement is available) was £170,423. Therefore investments and reserves were understated by this amount in the 2019 financial statements.

Reserves as at 31 July 2019 as previously reported
Kames Investment
Restated reserves as at 31 July 2019		 £
(831,676)
170,423
(661,253)

Page 46

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

21. Statement of funds

Statement of funds - current year

Designated funds
Fixed asset reserve
Investment reserve
Robert Armitage Trust
General funds
General Funds
SUSS pension deficit
Total Unrestricted funds
Restricted funds
Restricted projects
Total of funds		 Balance at
1 August
2019
As restated
£
3,859,638
935,133
40,000
4,834,771
321,132
(5,856,924)
(5,535,792)
(701,021)
39,768
(661,253)		 Income Expenditure
£
£
-
(734,769)
-
-
-
-
-
(734,769)
6,121,637
(5,147,508)
-
(2,427,505)
6,121,637
(7,575,013)
6,121,637
(8,309,782)
126,289
(136,091)
6,247,926
(8,445,873)		 Transfers
in/out
£
158,740
-
-
158,740
(532,421)
373,681
(158,740)
-
-
-		 Gains/
(Losses)
£
-
(70,040)
-
(70,040)
-
-
-
(70,040)
-
(70,040)		 Balance at
31 July
2020
£
3,283,609
865,093
40,000
4,188,702
762,840
(7,910,748)
(7,147,908)
(2,959,206)
29,966
(2,929,240)

Designated funds relate to:

Fixed asset reserve - this represents the amount of funds which are tied up in intangible and tangiblefixed assets and therefore are not necessarily available for use in day to day operations. Investment reserve - this represents the amount of funds which are tied up in fixed asset investments and therefore not readily available for use by the charity.

Robert Armitage Trust - this fund has been set aside to further the Union's charitable objects. Plans for how these funds will be utilised are currently being developed.

Page 47

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

21. Statement of funds (continued)

Statement of funds - prior year

Designated funds
Fixed asset reserve
Investment reserve
Robert Armitage Trust
General funds
General Funds
SUSS pension deficit
Total Unrestricted funds
Restricted funds
Restricted projects
Total of funds		 Balance at
1 August
2018
£
3,279,487
807,053
40,000
4,126,540
1,538,204
(5,853,596)
(188,852)
50,992
(137,860)		 Income
£
-
-
-
-
7,483,117
-
7,483,117
225,172
7,708,289		 Expenditure
£
(723,459)
-
-
(723,459)
(7,058,627)
(341,280)
(8,123,366)
(236,396)
(8,359,762)		 Transfers
in/out
£
1,303,610
-
-
1,303,610
(1,641,562)
337,952
-
-
-		 Gains/
(Losses)
Balance at
31 July 2019
As restated
£
£
-
3,859,638
128,080
935,133
-
40,000
128,080
4,834,771
-
321,132
-
(5,856,924)
128,080
(701,021)
-
39,768
128,080
(661,253)		 Gains/
(Losses)
Balance at
31 July 2019
As restated
£
£
-
3,859,638
128,080
935,133
-
40,000
128,080
4,834,771
-
321,132
-
(5,856,924)
128,080
(701,021)
-
39,768
128,080
(661,253)
321,132
(5,856,924)
(701,021)
39,768
(661,253)

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2020
£
Tangible fixed assets
3,283,609
Fixed asset investments
865,092
Current assets
1,913,191
Creditors due within one year
(1,473,651)
Creditors due in more than one year
(7,547,447)
(2,959,206)		 Restricted
funds
2020
£
-
-
29,966
-
-
29,966		 Total
funds
2020
£
3,283,609
865,092
1,943,157
(1,473,651)
(7,547,447)
(2,929,240)

Page 48

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

22. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted
funds
2019
restated
£
Tangible fixed assets
3,859,638
Fixed asset investments
935,132
Current assets
1,748,944
Creditors due within one year
(1,761,492)
Creditors due in more than one year
(5,483,243)
(701,021)		 Restricted
funds
2019
restated
£
-
-
39,768
-
-
39,768		 Total
funds
2019
restated
£
3,859,638
935,132
1,788,711
(1,761,492)
(5,483,243)
(661,254)

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the year (as per Statement of Financial Activities)
Adjustment for:
Depreciation charges
(Loss) on investments
Dividends, interest and rents from investments
Loss on the sale of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Revaluation of SUSS pension liability
Net cash provided by operating activities		 2020
£
(2,267,987)
734,769
70,040
(2,710)
-
7,885
76,252
(622,077)
2,398,440
394,612		 Group
2019
£
(523,393)
729,550
(128,080)
(795)
52,109
408
(302,659)
236,476
-
63,616

Page 49

(A company limited by guarantee)

UNIVERSITY OF MANCHESTER STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

24. Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)
Total		 2020
£
1,101,272
183,885
1,285,157		 Group
2019
£
865,176
181,399
1,046,575

25. Pension commitments

The 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 (June 2016: £101.3m), with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The 2019 valuation has been finalised and shows a scheme deficit of £140.9m. The increase in the deficit is in line with the level expected and previously reported by scheme trustees.

The assumptions applied at 30 June 2019:

  1. The investment on return would be 4.0% per annum before retirement and 2.0% per annum after retirement.

  2. Pensions accruing on the CARE basis would revalue at 3.6% per annum.

  3. Present and future pensions would increase at rates specified by Scheme rules where appropriate where these are dependent on inflation.

The 2016 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 17 years and increased by at least 5% each year. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 28 June 2017.

Following the 2019 triennial revaluation, which also reflected the outcome from the previously identified ‘7% pension increase’ issue affecting some members within the scheme (Manchester members were affected by the pension issue), the Trustees of SUSS concluded that it would be necessary to increase contributions to clear the deficit over the next 15 years. Those Unions with members directly affected by the pension increase issue would be required to pay a greater contribution to the scheme deficit; Surpluses or deficits which arise at future valuations will also impact on the Union’s future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension Protection Fund.

In accordance with FRS 102, the net present value of the future contributions required over 15 years to clear the funding deficit is £7,910,748 (2019: £5,856,924). In calculating this net present value, annual increase of 5% have been made (with the exception of the year 2021/22 where an increase of 20% has been made) and a discount rate of 1.45% representing the typical yield of high quality corporate bonds has then been applied.

Page 50

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

25. Pension commitments (continued)

The closed SUSS pension has been replaced with a new scheme provided by Aegon on behalf of NUS. All existing members of the SUSS scheme have been transferred to the NUS Pension Scheme (NUSPS) following consultation with Unison. NUSPS is a defined contribution scheme. Contributions to this scheme commenced on October 2011. Contributions paid into the scheme by the Union for the year amounts to £93,222 (2019: £83,497). Contributions totalling £nil (2019: £20,219) were payable to the fund at the balance sheet date and are included in creditors.

26. Operating lease commitments

At 31 July 2020 the total of the group’s future minimum lease payments under non-cancellable operating leases was:

Group
Amounts payable:
Within 1 year
Between 1 and 5 years
Total		 2020
£
12,640
37,920
50,560		 2019
£
12,640
50,560
63,200

At 31 July 2020 the company had annual commitments under non-cancellable operating leases as follows:

Company
Amounts payable:
Within 1 year
Between 1 and 5 years
Total		 12,640
37,920
50,560		 12,640
50,560
63,200

27. Related party transactions

The Union is in receipt of a recurrent grant from the University of Manchester of £2,457,398 (2019: £2,402,351). As explained in the Trustees Report, the University is not considered to be a related party.

In addition the Union occupies its building on a rent free basis under an informal licence subject to the Union maintaining the building in a good state of repair. No donation in kind can be recognised in respect of this arrangement due to the bespoke nature of the building and its location.

At the year end, the Union owed the University of Manchester £239 (2019: £4,914) in respect of interest free loans given to them which are being paid monthly, the final instalment being due in 2020.

The two trading subsidiaries are considered to be related parties. The available exemption for transactions with wholly owned subsidiaries under Section 20 FRS 102 has been taken.

Page 51

UNIVERSITY OF MANCHESTER STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020

28. Principal subsidiaries

Manchester Academy Venues Limited

Subsidiary name Company registration number Basis of control Equity shareholding %

Total assets as at 31 July 2020 Total liabilities as at 31 July 2020 Total equity as at 31 July 2020 Turnover for the year ended 31 July 2020 Expenditure for the year ended 31 July 2020 Profit for the year ended 31 July 2020

Manchester Academy Venues Limited 08638433 Sole share holder 100% £ 340,341 £ (340,340) £ 1 £ 2,044,866 £ 1,595,247 £ 449,619

Th1rt3en Limited

Subsidiary name Company registration number 10854553 Basis of control Equity shareholding % 100% Total assets as at 31 July 2020 £ 51,572 Total liabilities as at 31 July 2020 £ (51,571) Total equity as at 31 July 2020 £ 1 Turnover for the year ended 31 July 2020 £ 290,809 Expenditure for the year ended 31 July 2020 £ 179,049 Profit for the year ended 31 July 2020 £ 111,760

Th1rt3en Limited 10854553 Sole share holder 100%

Page 52