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2022-07-31-accounts

Registered Charity No: 1144763

UNION OF KINGSTON STUDENTS

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

Contents

Page
Administration Information 1 - 2
Report of the Trustees’ 3 – 10
Independent Auditors' Report 11 – 15
Statement of Financial Activities 16 – 17
Balance Sheet 18 – 19
Statement of Cash flows 20
Notes to the Financial Statements 21 - 37

Annual Report and Accounts for the year ended 31 July 2022

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 2022 From July 2021
Full-time Officers:
President VACANT Sarim Syed
Vice President Education VACANT Sami Mekri
Vice President Student VACANT Yasmin Noor
Opportunities
Vice President Welfare VACANT Mohamed Sghaier
Student Trustees: VACANT George Gaib
VACANT Thayab Mahmood
VACANT Abdullahi Mohamed
VACANT Kwanyoung Joo
External Trustees: Sayed Alkadiri (Deputy Chair)
Tom Newman (resigned 1st April 2022)
Ibrahim Ali (resigned 27thMay 2022)
Tariq Shaekh (resigned 19thOctober
2022)
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 c.redding@kingston.ac.uk

Page 1

Annual Report and Accounts for the year ended 31 July 2022

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

Head of Student Voice

Student Opportunities Manager Central Services Manager Business Development Manager Research and Insight Manager

Jamie Stratton (until September 2021) Alan Roberts (October 2021-January 2022) Catherine Redding (appointed January 2022) Natalie Forrester (resigned April 2022) Annabel Mabin Joseph Asuquo Grace Richards Stephanie Johnson (resigned September 2022)

The Board of Trustees present their Annual Report for the year ended 31 July 2022, which includes the administrative information set out on page 1, together with the audited accounts for that year.

Page 2

Annual Report and Accounts for the year ended 31 July 2022

Union of Kingston Students Annual Report - for the year ending 31st July 2022

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.

This year has been extraordinary for the Union, and whilst it has not been the most positive year to date, it has built a solid foundation for the organization in the near- and more distant- future.

In April 2022 a complaint was made by a whistle-blower to the Chief Executive Officer (CEO) alleging that there had been inconsistencies and misconduct at Trustee Board level regarding the appointment of the Returning Officer for the Leadership Elections. The CEO referred the complaint to the University, as the Students’ Union’s regulating body and as per its responsibilities for regulating these elections under the Education Act 1995.

The University sanctioned an independent audit into the Students’ Union’s governance, policies and Leadership Elections, of which twenty-two recommendations were made. Furthermore, as a result of these findings, the University declared that they could not assure the Leadership Elections had been free and fair, and so could not recognise the result, leaving the organisation without Sabbatical Officers since the end of June 2022.

The Union is under the oversight of a temporary Turnaround Board, tasked with ensuring resilient corporate governance throughout this period and provide the leadership team with resilient oversight and a wealth of expertise to guide the Union through this time of rebuilding and development. Since the audit outcomes were received the Union’s remaining Trustee and senior management team have been working hard alongside the rest of the Turnaround Board, the university and other stakeholders such as the NUS in order to create resilience and rebuild the Union.

Despite the challenges faced, the Union has continued to function and deliver operations for students, whilst remaining financially sound, and it is important that the Union recognizes its achievements through this difficult year.

UKS has a large number of students involved with its non-educational opportunities including sports clubs and societies and saw great success at encouraging students to get involved as the country moved in the endemic stage of Covid-19. Students continue to lead our groups and we have also seen a growth in them running their own large-scale events and generating further membership.

The Union applied for the NUS Green Impact Award and worked hard to secure the highest award possible. After introducing a number of initiatives and evaluating the criteria, we are very pleased to have been awarded with a ‘Very Good’ for this award.

The Union continued to grow its creative commercial venture, Not My Beautiful House , securing further funding from Kingston Council to ensure the continued sustainability of this project. This year also saw a move for the project, to arguably the most recognized building in Kingston, the Ancient Market House. This move has seen exponential growth in visitors and sales, and also in attracting further vendors from both the student and local communities. The project champions

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Union of Kingston Students

artist from diverse backgrounds, whilst also creating and hosting exciting events, and it has received an excellent response from all who have encountered it. The team managing the project have been invited to speak at panel events and the Union has continued to strengthen its strong relationship with Kingston Council.

In January 2022, the Union welcomed a new Chief Executive Officer, who has been working hard to continue developing our relationships with the University at a number of levels. The new CEO has built a schedule of regular meetings with key stakeholders, and broadened these partnerships to include the wider senior management team too. The senior management team have also committed to broadening the profile of UKS at national sector events, which has been beneficial for building new and strengthening existing relationships. The Union saw some staff turnover in the summer of 2022 which the senior management team saw as an opportunity to realign some of the vacant staff roles to better fit the aims of the organization. The Union has now recruited to the majority of these roles and believes that this will help lead the organization into its next chapter.

The 2022/23 is about Union growth, and the Turnaround Board and senior management team are excited to build new, stronger foundations and focus on the strategic development of the organization in its entirety. The Turnaround Plan that the Board have created includes the following development projects:

The Union understands this year to be extraordinary and an anomaly, however also an essential process to undergo to ensure that the organization can fulfill its charitable aims and provide services, projects and operations that are underpinned by the student voice and continue to respond to our student insights as they evolve. We are excited for this journey and look forward to reviewing how far the Union has travelled in the next 12 months.

Sayed Alkadiri Chair of the Turnaround Board December 2022

Page 4

Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2022

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.

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Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2022

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.

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Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2022

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 2021/22 include:

Our objectives & future plans

Union objectives for 2021/12 include:

Financial review

The Union's gross income was £1,749,214 during the year. This included annual block grant from the University of £979,230, an estimated value of the serviced accommodation provided by the University of £295,007, restricted club and society income totaling £61,851 and other restricted income totaling £116,561.

Total expenditure of £1,615,942 on the wide-ranging student benefits we provide, as well as on fundraising and other revenue-generating activities, meant a surplus for the year before gains/ losses of £133,272. The defined benefit pension’s movements under FRS102 was £87,502 ( 2021: £34,236 ).

The Union's expenditure included annual affiliation to the National Union of Students of £27,867.

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.

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Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2022

Reserves

The Union should hold reserves to cover unexpected eventualities and also ensure there are sufficient to resource planned capital expenditure. Total reserves at 31st July 2022 stood at a deficit of £840,042. Additionally, funds of £109,284 were restricted for use by sports and societies as well as funds of £70,288 being restricted for other projects. The unrestricted reserves position before pensions liability is £285,465 ( 2021: £280,801), 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 £351,000. 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. The Union has a strategic aim to drive towards commercial growth and therefore decrease its reliance on the university block grant as its primary source of income.

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 £465,037 (2021: £419,641). 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 Turnaround Board, and senior management has been working with the University to provide assurances that the Union is addressing the issues that the audit report produced. The Union has worked with the university, the NUS Charity and other sector experts in order to create a way forward from its current position and its financial position continues to be strong. The university has also kindly granted the Union with an additional £100,000 to support its turnaround activity. The Union recently pursued a mass recruitment project which includes a suite of eight roles, both replacing vacant roles and establishing new ones. Considering all of these factors along with the secure financial position and planned developments of the Union mean that the Turnaround Board and university are confident to establish going concern. Accordingly, the Union continues 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 three permanent members of staff that form the Senior Management Team (four, including one post awaiting a new starter). This team is in charge of directing and controlling, running and operating the Students’ Union on a day-to-day basis. Usually, the 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 utilize and interpret the student voice, and work with Union staff, the Board of Trustees and key stakeholders to make it happen. 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

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Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2022

pay against 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.

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Union of Kingston Students Annual Report and Accounts for the year ended 31 July 2022

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:

…………………….

Sayed Alkadiri

Chair of the Trustee Board and Turnaround Board Date

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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 2022 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).

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.

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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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

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UNION OF KINGSTON STUDENTS

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

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 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.

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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

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 company and industry, we identified that the principal risks of noncompliance 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 Companies Act 2006, 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.

Use of our report

This report is made solely to the Charity's trustees, 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 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.

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UNION OF KINGSTON STUDENTS

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

Goodman Jones LLP Chartered Accountants 29/30 Fitzroy Square London W1T 6LQ

Date:

Page 15

UNION OF KINGSTON STUDENTS

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2022

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:
Advice, welfare and support
Volunteering
Student activities
Business development
Total expenditure
Net income/(expenditure)
Transfers between funds
13
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
Revaluation of pension deficit
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
1,389,741
141,905
20,300
116
18,740
1,570,802
26,723
432,174
16,745
574,432
352,765
1,402,839
167,963
(75,423)
92,540
87,502
180,042
(1,199,656)
180,042
(1,019,614)		 Restricted
funds
2022
£
48,748
129,664
-
-
-
178,412
-
-
9,014
130,698
73,391
213,103
(34,691)
75,423
40,732
-
40,732
138,840
40,732
179,572		 Total
funds
2022
£
1,438,489
271,569
20,300
116
18,740
1,749,214
26,723
432,174
25,759
705,130
426,156
1,615,942
133,272
-
133,272
87,502
220,774
(1,060,816)
220,774
(840,042)		 As restated
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
(1,178,640)
117,824
(1,060,816)

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UNION OF KINGSTON STUDENTS

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

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

The notes on pages 21 to 37 form part of these financial statements.

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UNION OF KINGSTON STUDENTS

BALANCE SHEET AS AT 31 JULY 2022

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
18
Total net assets
Charity funds
Restricted funds:
Students' Societies & Club Funds
13
Other funds
13
Total restricted funds
13
Unrestricted funds
General fund
13
Pension deficit fund
13
Total unrestricted funds
13
Total funds		 12,501
101,808
416,259
530,568
(66,113)
109,284
70,288
285,465
(1,305,079)		 2022
£
582
582
464,455
465,037
(1,305,079)
(840,042)
179,572
(1,019,614)
(840,042)		 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)

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UNION OF KINGSTON STUDENTS

BALANCE SHEET (CONTINUED) AS AT 31 JULY 2022

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

................................................

Sayed Alkadiri Trustee Date:

The notes on pages 21 to 37 form part of these financial statements.

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UNION OF KINGSTON STUDENTS

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2022
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
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		 2022
£
41,240
116
116
41,356
374,903
416,259		 2021
£
21,955
29
29
21,984
352,919
374,903

The notes on pages 21 to 37 form part of these financial statements

Page 20

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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 £439,455 (2021: £417,981). 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 2022

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.

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UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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 2022

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 24

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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 2022
Total 2021		 Unrestricted
funds
2022
£
979,230
115,504
245,000
50,007
-
1,389,741
1,364,780		 Restricted
funds
2022
£
-
48,748
-
-
-
48,748
91,137		 Total
funds
2022
£
979,230
164,252
245,000
50,007
-
1,438,489
1,455,917		 Total
funds
2021
£
949,512
166,181
245,000
50,004
45,220
1,455,917

Page 25

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

5. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2022
£
Publicity and promotion
117
Staff costs
26,606
26,723
Total 2021
33,617		 Total
funds
2022
£
117
26,606
26,723
33,617		 Total
funds
2021
£
-
33,617
33,617

6. Analysis of expenditure by activities

Advice, welfare and support
Volunteering
Merchandising
Student Activities
Business development
Total 2021		 Activities
undertaken
directly
2022
£
264,019
9,014
-
402,500
318,196
993,729
755,482		 Support
costs
2022
£
168,155
16,745
17,615
285,015
107,960
595,490
614,908		 Total
funds
2022
£
432,174
25,759
17,615
687,515
426,156
1,589,219
1,370,390		 Total
funds
2021
£
475,981
44,870
17,444
471,386
360,709
1,370,390

Page 26

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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 2021		 Advice,
welfare and
support
2022
£
53,105
313
-
3,763
8,084
1,326
2,244
9,013
85,579
2,378
2,350
168,155
166,519		 Volunteerin
g
2022
£
5,042
32
-
383
822
135
228
917
8,705
242
239
16,745
16,939		 Merchandisi
ng
2022
£
5,563
32
-
394
847
139
235
944
8,966
249
246
17,615
17,444		 Student
Activities
2022
£
84,897
500
16,194
6,016
12,924
2,119
3,587
14,409
136,811
3,802
3,756
285,015
280,424

Page 27

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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 2021		 Business
developmen
t
2022
£
34,094
201
-
2,417
5,190
851
1,441
5,787
54,943
1,527
1,509
107,960
112,618		 Total
funds
2022
£
182,701
1,078
16,194
12,973
27,867
4,570
7,735
31,070
295,004
8,198
8,100
595,490
614,908		 Total
funds
2021
£
196,402
229
8,530
9,942
27,466
3,775
6,660
51,973
295,004
4,127
10,800
614,908

7. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
693,156
60,304
12,602
766,062		 2021
£
740,073
59,659
13,846
813,578

Page 28

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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		 2022
No.
11
33
44		 2021
No.
25
22
47

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 £270,557 (2021: £242,307).

8. Trustees' remuneration and expenses

2022 2021
£ £
Feisal Haji Remuneration - 25,230
Pension contributions paid - 597
Muna Ali Remuneration - 25,230
Pension contributions paid - 597
Hamad Momin Remuneration - 23,817
Muhammad Muneer Remuneration - 16,861
Pension contributions paid - 334
Kamal Mohamed Remuneration - 25,160
Pension contributions paid - 608
Sarim Syed Remuneration 24,856 2,042
Pension contributions paid 278 -
Yasmin Noor Remuneration 25,188 2,042
Pension contributions paid 523 -
Mohamed Sghaier Remuneration 24,998 2,042
Pension contributions paid 91 -
Sami Mehkri Remuneration 23,664 2,042
Pension contributions paid 503 -

During the year ended 31 July 2022, expenses totalling £ nil was reimbursed or paid directly to 0 Trustees (2021 - £3,995 to 2 Trustees) . This is in respect of training, sabbatical officer handover meetings, and annual memberships.

Page 29

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

9. Tangible fixed assets

Cost or valuation
At 1 August 2021
At 31 July 2022
Depreciation
At 1 August 2021
Charge for the year
At 31 July 2022
Net book value
At 31 July 2022
At 31 July 2021
10.
Stocks
Stock
11.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Fixtures and
fittings
£
6,116
6,116
5,331
712
6,043
73
785		 Other
£
2,975
2,975
2,100
366
2,466
509
875
2022
£
12,501		 Total
£
9,091
9,091
7,431
1,078
8,509
582
1,660
2021
£
7,165
2022
£
28,390
49,196
24,222		 2021
£
69,519
13,752
52,891
101,808 136,162

Page 30

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

12. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
-
35,952
9,707
20,454
66,113		 2021
£
4,388
18,798
7,647
69,416
100,249

Page 31

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

13. Statement of funds

Statement of funds - current year

Balance at 1
August 2021
£
Unrestricted
funds
General fund
280,801
Pension deficit
fund
(1,480,457)
(1,199,656)
Restricted
funds
Clubs and
societies
102,708
Other restricted
funds
36,132
Coronavirus
Job Retention
Scheme
-
138,840
Total funds
(1,060,816)		 Income
£
1,570,802
-
1,570,802
61,851
116,561
-
178,412
1,749,214		 Expenditure
£
(1,402,839)
-
(1,402,839)
(130,698)
(82,405)
-
(213,103)
(1,615,942)		 Transfers
in/out
£
(163,299)
87,876
(75,423)
75,423
-
-
75,423
-		 Gains/
(Losses)
£
Balance at
31 July 2022
£
-
285,465
87,502
(1,305,079)
87,502
(1,019,614)
-
109,284
-
70,288
-
-
-
179,572
87,502
(840,042)

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. It also included sports cards income to be used as directed by sports club members to advance the sports offer at Kingston.

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

Page 32

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

13. 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 of funds		 Balance at
1 August
2020
£
225,260
(1,521,599)
(1,296,339)
Balance at
1 August
2020
£
102,455
15,244
-
117,699
(1,178,640)		 Income
£
1,352,313
-
1,352,313
Income
£
10,515
148,019
45,220
203,754
1,556,067		 Expenditure
£
(1,199,298)
-
(1,199,298)
Expenditure
£
(32,358)
(127,131)
(45,220)
(204,709)
(1,404,007)		 As restated
Transfers
in/out
£
(97,474)
75,378
(22,096)
As restated
Transfers
in/out
£
22,096
-
-
22,096
-		 Gains/
(Losses)
£
-
(34,236)
(34,236)
Gains/
(Losses)
£
-
-
-
-
(34,236)		 Balance at
31 July 2021
£
280,801
(1,480,457)
(1,199,656)
Balance at
31 July 2021
£
102,708
36,132
-
138,840
(1,060,816)

Page 33

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

14. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
582
Current assets
279,001
Creditors due within one year
5,882
Provisions for liabilities and charges
(1,305,079)
Total
(1,019,614)		 Restricted
funds
2022
£
-
251,567
(71,995)
-
179,572		 Total
funds
2022
£
582
530,568
(66,113)
(1,305,079)
(840,042)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Other unallocated
Total		 Unrestricted
funds
2021
£
(2,342)
233,119
(36,396)
41,142
(235,523)
-		 Restricted
funds
2021
£
-
-
-
-
20,211
20,211		 Unrestricted
funds
2021
£
4,002
285,111
(63,853)
(1,521,599)
97,488
(1,198,851)		 Total
funds
2021
£
1,660
518,230
(100,249)
(1,480,457)
(117,824)
(1,178,640)

Page 34

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

15. 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/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Contributions to pension deficit
Net cash provided by operating activities
16.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
17.
Analysis of changes in net debt
At 1 August
2021
£
Cash at bank and in hand
374,903
374,903		 2022
£
133,272
1,078
(116)
(5,336)
34,354
(34,136)
(87,876)
41,240
2022
£
416,259
416,259
Cash flows
£
41,356
41,356		 2021
£
152,060
2,342
(29)
4,680
(98,116)
36,396
(75,378)
21,955
2021
£
374,903
374,903
At 31 July
2022
£
416,259
416,259

Page 35

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

18. 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 £1,305,079 (2021: £1,480,457). 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 3.5% representing the typical yield of high quality corporate bonds has then been applied.

For the period 1 August 2021 to 31 July 2022, 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 £87,876 (2021: £75,378).

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 (2021 £nil). The total contributions paid into the scheme by the Union in respect of eligible empoyees for the year ended 31 July 2022 amounted to £nil (2021: £nil).

NEST

The Union also participates in a pension scheme with NEST, contributions by the employer in the year totalled £12,602 (2021: £13,846).

Page 36

UNION OF KINGSTON STUDENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

19. Related party transactions

Subvention income is received from Kingston University. The income reported for the year ending 31 July 2022 amounted to £949,512 (2021: £949,512). In addition, the Charity was also in receipt of £164,252 (2021: £166,181) of additional grants from the University. Donated serviced premises and IT services of £295,004 (2021: £295,004) 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, £820 (2021: £62,903) was owed to the Union by Kingston University.

20. 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 37