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2021-07-31-accounts

Registered Charity No: 1144763

UNION OF KINGSTON STUDENTS

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

Union of Kingston Students Contents

Page
Administration Information 1 - 2
Report of the Trustees’ 3 - 9
Independent Auditors' Report 10 – 13
Statement of Financial Activities 14 - 15
Balance Sheet 16 - 17
Statement of Cash flows 18
Notes to the Financial Statements 19 - 35

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Administrative information

Charitable Status

Union of Kingston Students (the Union) is an unincorporated charity established under the Education Act 1994. The Union is registered with the Charity Commission and our charity number is 1144763.

Principal Address

Penrhyn Road Kingston Upon Thames Surrey KT1 2EE

Union Trustees

Full-time officers and Student Trustees are elected to hold office for a period of one year, by a cross campus ballot of Kingston University students. Full-time Officers are elected to one of four different portfolios. External Trustees are appointed by the Trustee Board to support the effective running of the Students’ Union, and as such, have particular expertise on which the officer and student trustees can draw.

From July 2021 From July 2020
Full-time Officers*:
President Sarim Syed Feisal Haji
Vice President Education Sami Mehkri Kamal Mohamed
Vice President Student Yasmin Noor Muna Ali
Opportunities
Vice President Welfare Mohamed Sghaier Hamad Momin
Student Trustees: George Gaib Shubham More (to March 2021)
Thayab Mahmood George Gaib (from April 2021)
Abdullahi Mohamed Leen Salah(to 30 June 2021)
Kwanyoung Joo Disha Dikshit(to 30 June 2021)
Mohamed Sghaier(to 30 June 2021)
Sebastien Stoner (to October 2020)

External Trustees:

Sayed Alkadiri Tom Newman (appointed January 2021) Ibrahim Ali (appointed January 2021) Tariq Shaekh (appointed January 2021) Humah Akram (resigned October 2020) Matt Denham (resigned October 2020)

Auditors Bankers Solicitors
Goodman Jones LLP National Westminster Bank Plc Ashton Bond Gigg
29/30 Fitzroy Square 5 Market Place Pearl Assurance House
London Kingston-upon-Thames Friars Lane
W1T 6LQ Kingston Nottingham
Surrey NG1 6BX
KT1 1JX

The Board of Trustees can be contacted by emailing president @kingston.ac.uk

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Administrative information (continued)

The Union employs a Chief Executive Officer (CEO) to work closely with the Student Officers and ensure effective management of the charity as head of a senior management team.

Key management personnel:

Chief Executive Jamie Stratton Catherine Redding (January 2022) Head of Student Voice Natalie Forrester Management Accountant Joseph Asuquo Business Development Manager Grace Richards Research and Insight Manager Stephanie Johnson Student Opportunities Manager Annabel Mabin

*Full time officers named above

The Board of Trustees present their Annual Report for the year ended 31 July 2021, which includes the administrative information set out on page 1, together with the audited accounts for that year.

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Union of Kingston Students Annual Report - for the year ending 31st July 2021

Union of Kingston Students is a registered charity whose members are Kingston University students, who elect student representatives to lead the organisation, supported by a team of permanent staff who are responsible for the operation and management of the Union.

Students are represented at all levels of decision making within the Union and the University, supported by the Union’s staff team. Elected student representatives sit on various boards and committees to represent the views of Kingston University students.

The past twelve months have been unprecedented for the Students’ Union, but staff and students have remained positive and have continued to make great strides towards establishing the Union as a significant voice for students studying at Kingston University. Covid19 disrupted many activities and caused a rapid change to our priorities and previous plans. The challenges included not only the wellbeing of our members, but of our staff and volunteers as well. Many Union activities and services were completely derailed with the response to face-to-face limitation and have threatened continuity within our clubs and societies space in particular. Added to this was the dramatic increase in students requiring advice and support as they faced a once-in-a-generation disruption to their learning.

Despite the challenges, this year has been a year of first for our union: we hosted a programme of virtual freshers events that tapped into our student communities who may not typically get involved with us. The Union also organised a host of virtual skills sessions with the aim of helping students become successful graduates.

As well as this, the Union crowdfunded and created a new creative hub, in collaboration with the University’s Studio KT1, securing further funding from the Mayor of London to open up a new community space in Kingston Town Centre – Not My Beautiful House. Part shop, gallery, exhibition and events space, Not My Beautiful House encourages collaboration between students and the community, supports local business with opportunities for pop-ups and workshops, and empowers people to make their own money and gain experience. So far, over 60 students have applied to sell their work.

In order to continue this success, it is vital we continue to work in partnership with Kingston University on a range of joint projects in the pursuit of our common goals. Looking forward, we must pull together to rebuild the student experience, be sensitive to the mental health crisis that has been exacerbated by the pandemic and ensure that we remain firmly engaged with the continually changing needs of our membership. Our relationship with Kingston University has continued to mature over the past 12 months and will continue to improve as we come back stronger and more focused. The appointment of a new Chief Executive Officer, who started in January 2022, is also an opportunity to reflect on our journey up to now, the significant turnaround of the last three years, and to develop a vision for the years ahead.

The 2021-22 academic year offers great opportunities for our organisation to connect more deeply with our student members and provide them with the services, activities and representation they rightly expect, in a more complex and financially demanding HE context. To this end, the officer team and the Union’s whole staff team continue to work hard to make the Students’ Union at Kingston the best it can possibly be. We are working hard to build back what we lost during the pandemic, and are pushing on all doors to increase student engagement and the opportunities to work with and for our membership in new and innovative ways.

Page 3

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Leadership is at the heart of students’ unions and whether it is through elected student council members, sports or societies committee members, student staff in the Union or student representatives across the University, Union of Kingston Students will continue its mission to be a hub for student leadership within the Kingston University community.

Sarim Syed Union President

Page 4

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Structure, governance and management

The Union is constituted under the Education Act 1994 with internal regulations or Rules approved by the governing body of Kingston University. The Union’s charitable objects under the Act, to advance the University’s educational purposes by providing representation and support for the students of the University, are supplemented by the further object of helping members develop their own charitable activities as active participants in civil society.

The Union is led by student officers elected annually by a cross campus secret ballot of the Union membership. The four posts of President, Vice President Welfare, Vice President Student Opportunities and Vice President Education are full time (‘sabbatical’) posts remunerated as authorised by the Education Act and cannot exceed two years duration for each holder. These elected officers are responsible to establishing the priority work of the Union as it relates to the student interest, through campaigns, initiatives and their membership of institutional, local and national decision-making committees and bodies. The holders also are trustees of the Union.

We continue to develop student networks and a student council system, to represent the diverse needs of all students and raise awareness of issues which impact upon diversity and marginalised groups both within Kingston University as well as in our wider society. Student Networks include but are not limited to: Disabled, BME (Black, Minority, Ethnic), Women, LGBTQIA+, International, Postgraduate, and Mature Students. From these networks, there will be elected representatives, which alongside their studies, will run campaigns and attend meetings to ensure the Union is an effective voice of the students that they represent. These representatives will also support and inform the work of the full-time officers.

All Union membership is invited annually to the AGM where they are encouraged to hold their Sabbatical team to account, discuss and approve (or otherwise) policy, annual budgets, accounts and affiliations. The Union’s affairs are overseen by a Trustee Board comprising the 4 full time officers, 3 part-time elected student trustees and 4 appointed external trustees. The Board of Trustees is responsible for the management and administration (governance, budget and strategy) of the Union and (subject to the Education Act, the Constitution and the Bye-Laws) may exercise all the powers of the Union. The Trustees confirm that they have complied with their duty in s.4 of the Charities Act 2011 to have due regard to the guidance concerning the operation of public benefit published by the Charity Commission. The Trustee Board delegates the day-to-day running of the Union to a Chief Executive.

The Union also employs a number of permanent, career staff to ensure the effective and professional management and delivery its activities and services. Those staff are accountable to the Chief Executive for the performance of their duties. When appointing external trustees, the Board has regard to the requirement for any specialist skills needed, for example an understanding of Kingston University and its senior management structures and strategies, human resources and personnel, finance and accounts and marketing and business development. In the past 12 months, we have recruited three brand new external trustees who have helped us transform our board and ensure we are continually improving as a union.

Relationship with Kingston University

The relationship between Kingston University and the Union is established in the Regulations of the University and detailed in the Union regulations approved by both institutions in a partnership document signed by the President on behalf of the Union and the University Registrar and Secretary on behalf of the University. The Code of Practice document sets out the operational partnership and management of the Union and the University and is signed by the Chair of the University Board of Governors and the Chair of the Union Trustee Board. Both documents were last renewed in 2018/19.

Page 5

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

The Union receives a Block Grant from the University, and part-occupies a building owned by the University, which also pays for utilities and caretaking. This non-monetary support is intrinsic to the relationship between the University and the Union.

There is no reason to believe this or equivalent support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body.

Risk Management

The senior management team has examined the major strategic, business and operational risks faced by the Union. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the Union faces. Budgetary and internal control risks are minimised by the implementation of procedures for the authorisation of all transactions and projects.

Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure that they continue to meet the needs of the Union.

Aims, Objectives and Activities

The Union operates under a strategy established by the trustee board in June 2019.

Our Vision

Providing lifelong experiences and opportunities for all Kingston students

Our Mission

We will support all Kingston students throughout their university experience, breaking down barriers and provide opportunities for them to succeed in their future.

Our Core Themes

These are supported by our enabling themes

In pursuit of these aims the Union will ensure that its membership is supported within every aspect of university life possible and will continue to work to ensure that it leads on student facing issues, ensuring a student voice at all levels of the University and to provide a wide range of opportunities to participate in a positive student experience. In terms of extra-curricular activity, the Union leads on sports (both competitive and recreational), student-led societies, local and international volunteering projects, initiatives on sustainability and the environment, and various social events.

The Union continues to represent the students of this University on relevant local, national and international issues by maintaining a high proportion of student representatives. Student representatives are present on all policy and strategy making boards.

Page 6

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Achievements and performance

We believe that by regularly reviewing the effectiveness of all aspects of our organisation, we ensure that we remain relevant and effective in terms of delivering the services our members need and want. Some of our achievements over the academic year 2020/21 include:

Our objectives & future plans

Union objectives for 2021/22 include:

Financial review

The Union's gross income was £1,556,067 during the year. This included annual block grant from the University of £949,512, an estimated value of the serviced accommodation provided by the University of £295,004, restricted club and society income totalling £10,515 and other restricted income totalling £121,401.

Total expenditure of £1,404,007 on the wide-ranging student benefits we provide, as well as on fundraising and other revenue-generating activities, meant a surplus for the year of £117,824. The net income before defined benefit pension’s movements under FRS102 was £152,060 ( 2020: £145,313 ).

The Union's expenditure included annual affiliation to the National Union of Students of £27,466.

Due to the nature of the Charity and its activities, no professional fundraisers are used and no complaints were received in the year regarding the Charity’s fundraising practices.

Page 7

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Reserves

The Union should hold reserves to cover unexpected eventualities and also ensure there are sufficient to resource planned capital expenditure. Total unrestricted reserves at 31st July 2021 stood at a deficit of £1,199,656. Additionally, funds of £102,708 were restricted for use by sports and societies as well as funds of £36,132 being restricted for other projects. The unrestricted reserves position before pensions liability is £280,801 ( 2020: £225,260), the Trustees consider this to be the most accurate measure of the balance sheet position.

The Trustees have determined that reserves to cover costs for a minimum of 3 months would be prudent. However, as a charity where our main funder has more stable income and strategic planning of budgets, we are not dependent on fundraised income to sustain our services. Funding within the higher education sector is coming under increased pressure and there are competing stakeholders for the university’s funds. Three months of reserves to cover usual operating costs is currently £325,000. The charity will continue with prudent financial management to maintain the level of reserves required for three months of operations. The Trustees have agreed to review our current reserves provision to ensure we have a robust reserves and investment plan for the Union.

Going Concern

The Union is in a net liability position as a result of the pension scheme deficit liability. This liability represents the net present value of deficit contributions over the agreed funding plan to 2033 and does not represent an immediate cash outflow. Before the pension scheme deficit liability, the Union has positive funds of £419,641 (2020: £342,959). After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources and has received assurances from the University that financial support through the block grant will continue to be available to enable it to continue in operational existence for the foreseeable future. The Trustees have considered the impacts that the Covid-19 pandemic may have for the Charity and it is deemed that the Charity can meet its commitments and liabilities. The Charity made use of Government financial support through the Coronavirus job retention scheme during the year. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Custodian Activities: Clubs & Societies’ Funds

The Union acts as custodian for funds raised by the students’ many Clubs & Societies themselves, in addition to the grant-support funds it disburses to them as shown in the accounts.

Pay policy for senior staff

The Chief Executive is supported by five permanent members of staff that form the Senior Management Team. This team is in charge of directing and controlling, running and operating the Students’ Union on a day-to-day basis. Union of Kingston Students’ board of trustees includes four paid trustees (elected sabbatical officers) who receive salaries lower than most non-student staff. As well as having a role as a Trustee of the Union, the officers perform a full-time role for a year to be the voice of students. They listen to how students want things to be done, work with Union staff, the Board of Trustees and partners to make it happen. They represent students to Kingston University, external organisations and the wider community. Details of trustee expenses and related party transactions are disclosed in the accounts. The pay of the senior staff is reviewed annually along with the annual salary review and only increased in line with the annual pay increase for all staff, which is normally in accordance with average earnings. In view of the nature of the charity, the trustees benchmark against pay levels in other students’ unions of a similar size and location. If recruitment has proven difficult in the recent past, a market addition is also paid with the pay maximum no greater than the highest benchmarked salary for a comparable role.

Page 8

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2021

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial, which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, 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 Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

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

Auditors

The auditors, Goodman Jones LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

This report was approved by the Trustees on and signed on their behalf by:

……………………………….

Sarim Syed Union President

Date: 30-05-22

Page 9

UNION OF KINGSTON STUDENTS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNION OF KINGSTON STUDENTS

Opinion

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

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 10

UNION OF KINGSTON STUDENTS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNION OF KINGSTON STUDENTS (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 11

UNION OF KINGSTON STUDENTS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNION OF KINGSTON STUDENTS (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Charity and sector, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, Charity Commission and sector regulations, and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried. These procedures included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 Auditors' Report.

Page 12

UNION OF KINGSTON STUDENTS

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNION OF KINGSTON STUDENTS (CONTINUED)

Use of our report

This report is made solely to the Charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an Auditors' 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 Charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Goodman Jones LLP

Chartered Accountants 29/30 Fitzroy Square London W1T 6LQ

Date: 30-05-22

Goodman Jones LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 13

UNION OF KINGSTON STUDENTS

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021

Note
Income from:
Donations and legacies
4
Charitable activities
Other trading activities:
. Advertising and Media
Investments
Other income
Total income
Expenditure on:
Raising funds:
5
Advertising and Media
Charitable activities:
6
Advice, welfare and support
Volunteering
Merchandising
Student activities
Business development
Total expenditure
Net income/(expenditure)
Transfers between funds
14
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Revaluation of pension deficit
Net movement in funds		 Unrestricted
funds
2021
£
1,334,516
12,320
4,919
29
529
1,352,313
33,617
533,006
20,177
-
228,643
383,855
1,199,298
153,015
(22,096)
130,919
(34,236)
96,683		 Restricted
funds
2021
£
121,401
82,353
-
-
-
203,754
-
-
27,931
-
123,495
53,283
204,709
(955)
22,096
21,141
-
21,141		 Total
funds
2021
£
1,455,917
94,673
4,919
29
529
1,556,067
33,617
533,006
48,108
-
352,138
437,138
1,404,007
152,060
-
152,060
(34,236)
117,824		 As restated
Total
funds
2020
£
1,386,572
294,538
23,698
454
3,360
1,708,622
42,677
278,095
28,286
29,133
1,006,576
178,542
1,563,309
145,313
-
145,313
(442,324)
(297,011)

Page 14

UNION OF KINGSTON STUDENTS

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Note
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
(1,296,339)
96,683
(1,199,656)		 Restricted
funds
2021
£
117,699
21,141
138,840		 Total
funds
2021
£
(1,178,640)
117,824
(1,060,816)		 As restated
Total
funds
2020
£
(881,629)
(297,011)
(1,178,640)

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 35 form part of these financial statements.

Page 15

UNION OF KINGSTON STUDENTS

BALANCE SHEET AS AT 31 JULY 2021

Note
Fixed assets
Tangible assets
9
Current assets
Stocks
10
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Defined benefit pension scheme liability
19
Total net assets
Charity funds
Restricted funds:
Students' Societies & Club Funds
14
Other funds
14
Total restricted funds
14
Unrestricted funds
General fund
14
Pension deficit fund
14
Total unrestricted funds
14
Total funds		 7,165
136,162
374,903
518,230
(100,249)
102,708
36,132
280,801
(1,480,457)		 2021
£
1,660
1,660
417,981
419,641
(1,480,457)
(1,060,816)
138,840
(1,199,656)
(1,060,816)		 11,845
38,046
352,919
402,810
(63,853)
102,455
15,244
225,260
(1,521,599)		 As restated
2020
£
4,002
4,002
338,957
342,959
(1,521,599)
(1,178,640)
117,699
(1,296,339)
(1,178,640)

Page 16

UNION OF KINGSTON STUDENTS

BALANCE SHEET (CONTINUED) AS AT 31 JULY 2021

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

................................................ Sarim Syed President Date: 30-05-22

The notes on pages 19 to 35 form part of these financial statements.

Page 17

UNION OF KINGSTON STUDENTS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
21,955
29
-
29
21,984
352,919
374,903		 2020
£
71,932
454
(320)
134
72,066
280,853
352,919

The notes on pages 19 to 35 form part of these financial statements

Page 18

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1. General information

Union of Kingston Students is an unincorporated charity registered in England and Wales. The registered office address is Union of Kingston Students, Penrhyn Road, Kingston Upon Thames, KT1 2EE. The Union aims to be an effective, relevant and representative union at the heart of Kingston student life, central to the University's strategy and future success.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

The financial statements have been prepared in Sterling, the functional currency of the Charity, and amounts have been rounded to the nearest £.

2.2 Going concern

The Union is in a net liability position as a result of the pension scheme deficit liability. This liability represents the net present value of deficit contributions over the agreed funding plan to 2033, and does not represent an immediate cash outflow. Before the pension scheme deficit liability the Union has positive funds of £41 9 , 64 1 (2020: £342,959). After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources and has received assurances from the University that financial support through the block grant will continue to be available to enable it to continue in operational existence for the foreseeable future. The Trustees have considered any potential ongoing impact that the Covid-19 pandemic may have for the Charity and it is deemed that the Charity can meet its commitments and liabilities. The Charity made use of Government financial support through the Coronavirus job retention scheme during the year. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.3 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 Charity and which have not been designated for other purposes.

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

Investment income, gains and losses are allocated to the appropriate fund.

2.4 Income

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

Grant income is recognised when the above criteria are met, together with any performance conditions addition to the grant. The annual subvention grant from the Kingston University is recognised in the academic period to which it relates, subject to any attached KPIs being met.

Donated services or facilities are recognised when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Charity of the item is probable and that economic benefit can be measured reliabily.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

The University grant of free serviced accommodation on the campus is accounted for as income and expenditure of the year at an estimated value to Union of Kingston Students by reference to the alternatives available on the commercial market.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.5 Government grants

Government grants are in relation to the Coronavirus Job Retention Scheme in support during the pandemic. This income was used against the relevant wage expenditure.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

Page 20

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.7 Expenditure

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

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

Expenditure is inclusive of any irrecoverable VAT.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £300 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Fixtures and fittings - 3 to 4 years straight line
Other - 4 to 5 years straight line

2.9 Stocks

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

2.10 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.

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UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.11 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.

2.12 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.13 Financial instruments

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

2.14 Pensions

SUSS

The Union Participates in the Students' Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Seocnd Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. The scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. The financial statements reflect at fair value the assets and liabilities arising from the Union's retirement benefit obligations and any related funding. The operating costs of providing retirement benefits to employees are recognised in the accounting periods in which the benefits are earned by the employees, and the related finance costs and any other changes in value of the assets and liabilities are recognised in the accounting periods in which they arise.

NUSPS

Since 1 October 2011, all participating employees have been in a new defined contribution pension scheme, National Union of Students Pension Scheme (NUSPS). Contributions are at the rate of 6% for the employers and 6% for the employee. Pensions costs are charges in the period in which the salaries to which they related are payable.

Page 22

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

3. Critical accounting estimates and areas of judgement

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.

The Charity 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.

Critical accounting estimates and assumptions:

Pension deficit contribution

The Charity has entered into a commitment to provide deficit funding to the Students' Union Superannuation Pension Scheme, of which it is contributing employer. Under FRS102, the fair value of the commitment is recognised. The calculation of the fair value of the commitment is subject to an assumption of the discount rate. The discount rate is determined by the reference to market yields at the reporting date on high quality corporate bonds. A discount rate of 2.25% has been used in line with industry standards

4. Income from donations and legacies

Grants
Block grant
Other University grants
Grant of serviced accomodation
Grant of IT and other services
Government grants
Coronavirus Job Retention Scheme
Total 2021
Total 2020		 Unrestricted
funds
2021
£
949,512
90,000
245,000
50,004
-
1,334,516
1,326,212		 Restricted
funds
2021
£
-
76,181
-
-
45,220
121,401
60,360		 Total
funds
2021
£
949,512
166,181
245,000
50,004
45,220
1,455,917
1,386,572		 Total
funds
2020
£
939,612
121,860
245,000
50,004
30,096
1,386,572

Page 23

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

5. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2021
£
Advertising and Media
-
Staff costs
33,617
33,617
Total 2020
42,677		 Total
funds
2021
£
-
33,617
33,617
42,677		 Total
funds
2020
£
11,871
30,806
42,677

6. Analysis of expenditure by activities

Advice, welfare and support
Volunteering
Merchandising
Student Activities
Business development
Total 2020		 Activities
undertaken
directly
2021
£
309,462
27,931
-
196,646
253,801
787,840
915,959		 Support
costs
2021
£
166,519
16,939
17,444
274,740
106,908
582,550
604,673		 Total
funds
2021
£
475,981
44,870
17,444
471,386
360,709
1,370,390
1,520,632		 Total
funds
2020
£
453,507
46,129
47,509
682,327
291,160
1,520,632

Page 24

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Direct costs
Insurance
Affiliations
Bank charges
IT support
Other
Serviced premises and IT services
Trustee expenses
Audit fees
Total 2020		 Advice,
welfare and
support
2021
Volunteering
2021
Merchandising
2021
£
£
£
56,975
5,795
5,969
66
8
7
-
-
-
2,884
293
302
7,968
810
835
1,095
111
115
1,932
197
202
5,690
579
596
85,579
8,705
8,965
1,197
122
125
3,133
319
328
166,519
16,939
17,444
175,412
17,843
18,376		 Student
Activities
2021
£
91,084
106
8,530
4,611
12,738
1,751
3,089
9,097
136,811
1,914
5,009
274,740
280,424

Page 25

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

6. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Isolation support
Insurance
Affiliations
Bank charges
IT support
Other
Serviced premises and IT services
Trustee expenses
Audit fees
Total 2020
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Business
development
2021
£
36,579
42
-
1,852
5,115
703
1,240
3,653
54,944
769
2,011
106,908
112,618		 Total
funds
2021
£
196,402
229
8,530
9,942
27,466
3,775
6,660
19,615
295,004
4,127
10,800
582,550
604,673
2021
£
740,073
59,659
13,846
813,578		 Total
funds
2020
£
198,122
534
-
11,731
41,853
3,819
6,590
36,788
295,004
1,032
9,200
604,673
2020
£
648,328
56,067
11,711
716,106

7. Staff costs

Staff restructuring costs of £nil (2020: £20,621) are included in wages and salaries and are nonstatutory/non-contractual payments.

Page 26

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

7. Staff costs (continued)

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

Full time
Students - term time only		 2021
No.
25
22
47		 2020
No.
21
36
57

No employee received remuneration amounting to more than £60,000 in either year.

The total employment costs, including employer's pension contributions and employer's NIC, of the key management personnel were £242,307 (2020: £221,093).

8. Trustees' remuneration and expenses

2021 2020
£ £
Feisal Haji Remuneration 25,230 22,229
Pension contributions paid 597 482
Muna Ali Remuneration 25,230 22,229
Pension contributions paid 597 482
Hamad Momin Remuneration 23,817 22,229
Pension contributions paid - 482
Muhammad Muneer Remuneration 16,861 22,229
Pension contributions paid 334 482
Kamal Mohamed Remuneration 25,160 -
Pension contributions paid 608 -
Sarim Syed Remuneration 2,042 -
Yasmin Noor Remuneration 2,042 -
Mohamed Sghaier Remuneration 2,042 -
Sami Mehkri Remuneration 2,042 -

During the year ended 31 July 2021, expenses totalling £3,995 were reimbursed or paid directly to 2 Trustees (2020 - £1,032 to 1 Trustee). This is in respect of training, sabbatical officer handover meetings, and annual memberships.

Page 27

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

  1. Tangible fixed assets
Cost or valuation
At 1 August 2020
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020
10.
Stocks
Stock
11.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Fixtures and
fittings
£
6,116
6,116
3,852
1,479
5,331
785
2,264		 Other
£
2,975
2,975
1,237
863
2,100
875
1,738
2021
£
7,165		 Total
£
9,091
9,091
5,089
2,342
7,431
1,660
4,002
2020
£
11,845
2021
£
69,519
13,752
52,891		 2020
£
18,874
9,928
9,244
136,162 38,046

Page 28

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

12. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
4,388
18,798
7,647
69,416
100,249		 2020
£
(765)
14,427
7,315
42,876
63,853

13. Prior year adjustments

During the year, it was determined that net income generated in earlier years in respect of clubs and societies had been categorised as unrestricted funds, rather than as restricted funds. There is no impact on the overall reserves position, as this is a classification matter only. The result of the prior year adjustment is an increase to prior year restricted funds of £97,488 and a corresponding decrease to unrestricted funds.

Page 29

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

14. Statement of funds

Statement of funds - current year

Restated
Balance at 1
August 2020
£
Unrestricted
funds
General fund
225,260
Pension deficit
fund
(1,521,599)
(1,296,339)
Restricted
funds
Clubs and
societies
102,455
Other restricted
funds
15,244
Coronavirus
Job Retention
Scheme
-
117,699
Total of funds
(1,178,640)		 Income
£
1,352,313
-
1,352,313
10,515
148,019
45,220
203,754
1,556,067		 Expenditure
£
(1,199,298)
-
(1,199,298)
(32,358)
(127,131)
(45,220)
(204,709)
(1,404,007)		 Transfers
in/out
£
(97,474)
75,378
(22,096)
22,096
-
-
22,096
-		 Gains/
(Losses)
£
Balance at
31 July 2021
£
-
280,801
(34,236)
(1,480,457)
(34,236)
(1,199,656)
-
102,708
-
36,132
-
-
-
138,840
(34,236)
(1,060,816)

Clubs and societies restricted funds are the portion of membership fees from clubs and societies which are used as directed by clubs and society members in line with the aims and objectives of their constitutions.

Other restricted funds include amounts received within the Block Grant from the University to be used as directed by the University on specific projects.

The Coronavirus Job Retention Scheme grants are to be used in against wages costs in the period in which the claims are submitted. These are to support the Charity during the Coronavirus pandemic.

Page 30

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
General fund
Pension deficit
fund
Restricted
funds
Clubs and
societies
Other restricted
funds
Coronavirus
Job Retention
Scheme
Total funds		 Balance at
1 August
2019
£
185,120
(1,151,071)
(965,951)
Balance at
1 August
2019
£
71,056
13,266
-
84,322
(881,629)		 Income
£
1,492,570
-
1,492,570
Income
£
155,692
30,264
30,096
216,052
_1,708,_6_2_2		 Expenditure
£
(1,283,146)
-
(1,283,146)
Expenditure
£
(221,781)
(28,286)
(30,096)
(280,163)
(1,563,309)		 As restated
Transfers
in/out
£
(169,284)
71,796
(97,488)
As restated
Transfers
in/out
£
97,488
-
-
97,488
-		 Gains/
(Losses)
£
-
(442,324)
(442,324)
Gains/
(Losses)
£
-
-
-
-
(442,324)		 Balance at
31 July 2020
£
225,260
(1,521,599)
(1,296,339)
Balance at
31 July 2020
£
102,455
15,244
-
117,699
(1,178,640)

Page 31

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
1,660
Current assets
379,390
Creditors due within one year
(100,249)
Provisions for liabilities and charges
(1,480,457)
Total
(1,199,656)		 Restricted
funds
2021
£
-
138,840
-
-
138,840		 Total
funds
2021
£
1,660
518,230
(100,249)
(1,480,457)
(1,060,816)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Restricted
funds
2020
£
-
117,699
-
-
117,699		 Unrestricted
funds
2020
£
4,002
285,111
(63,853)
(1,521,599)
(1,296,339)		 Total
funds
2020
£
4,002
402,810
(63,853)
(1,521,599)
(1,178,640)

Page 32

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

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

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Contributions to pension deficit
Net cash provided by operating activities
17.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
18.
Analysis of changes in net debt
At 1 August
2020
£
Cash at bank and in hand
352,919
352,919		 2021
£
152,060
2,342
(29)
4,680
(98,116)
36,396
(75,378)
21,955
2021
£
374,903
374,903
Cash flows
£
21,984
21,984		 2020
£
145,313
2,713
(454)
2,619
2,240
(8,703)
(71,796)
71,932
2020
£
352,919
352,919
At 31 July
2021
£
374,903
374,903

Page 33

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

19. Pension commitments

SUSS

The Charity 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 accruals.

The most recent Valuation of the Scheme was carried out as at 30 June 2019 and showed that the market value of the Scheme's assets was £119.1m with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £140.9m.

The assumptions which have the most significant effect upon the results of the valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions.

The 2019 valuation recommended a monthly contribution requirement by each participating employer expressed in monetary terms intended to clear the ongoing funding deficit over a period in excess of 16 years and will increase by 20% from 1 October 2021 and by a further 5% in each subsequent year. These rates will apply with effect from 1 October 2021 and contributions due from October 2023 onwards will be reviewed following the next actuarial valuation. Contributions up to October 2021 are based on the 2016 valuation and subject to annual 5% increases. Surpluses or deficits which arise at future valuations will also impact on the Charity'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 FRS102, the net present value of the future contributions required over 16 years to clear the funding deficit is £1,480,457 (2020: £1,521,599). In calculating this net present value, montly payments in November 2020 and monthly payments from November 2023 with annual increases of 5% have been made and a discount rate of 2.25% representing the typical yield of high quality corporate bonds has then been applied.

For the period 1 August 2020 to 31 July 2021, the Union of Kingston Students made monthly payments as part of the deficit reduction plan. The cost to the Union of payments in this period was £75,378 (2020: £71,796).

NUSPS

Since 1 October 2011, all participating employees have been in a new defined contribution pension scheme, National Union of Students Penion Scheme (NUSPS). Contributions are at the rate of 6% for the employer and 6% for the employee. The Union's cost of contribution in the year amounted to £nil (2020 £nil). The total contributions paid into the scheme by the Union in respect of eligible empoyees for the year ended 31 July 2021 amounted to £nil (2020: £nil).

NEST

The Union also participates in a pension scheme with NEST, contributions by the employer in the year totalled £13,846 (2020: £11,711).

Page 34

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

20. Related party transactions

Subvention income is received from Kingston University. The income reported for the year ending 31 July 2021 amounted to £949,512 (2020: £936,612). In addition, the Charity was also in receipt of £166,181 (2020: £121,860) of additional grants from the University. Donated serviced premises and IT services of £295,004 (2020: £250,004) were provided by the University during the year. The Trustees are of the opinion that this assistance is not an influencing factor with regard to the formation of the Charity's policy setting.

At the balance sheet date, £62,903 (2020: £17,532) was owed to the Union by Kingston University.

21. Controlling party

The Union is controlled by the Trustee Board which is subject to democratic election by the voting membership of the Union. The ultimate control of the Union is vested under the constitution in the membership in General meeting. As such no single person or entity controls the Union as defined by FRS 102.

Page 35