University of Southampton Students, Union A company limited by guarantee Trustees. report and financial statements 31 July 2021 Company registration number 08034371 Charity registration number 1148683 University of Southampton Students, Union Index to the Financial Statements Contents Page Trustees and advisers Trustees, Report Statement of Trustees, Responsibilities in respect of the Trustees. annual report and the financial statements io Independent auditorf5 report to the members of Urbiversity of Southampton Student5, Union 11-13 Consolidated statement of financial activities for the year ended 31 July 2021 14 Consolidated balance sheet 15 Union balance sheet 16 Consolidated cash flow statement for the year ended 31 July 2021 17 Notes to the financial statements 18- 35 University of Southampton Students, Union Reference and Administration Information Trustees and advisers Sabbatical Trustees Benjamin Dolbeèr IPresident 2021-221 Matthew Smith Charlotte james Savanna Cutts Corin Holloway Bhupinder 5iran Olivia Reed IPresident 2020-211 Nicole Akuezumba Samuel Tweedle Avila Chidume Appointed l July 2021 Appointed l July 2021 Appointed I july 2021 Ap￿inted l July 2021 Appointed 14 November 2021 Appointed 14 November 2021 Appointed l July 2019. tefrn concluded 30 June 2021 Appointed l July 2020. term concluded 30 lune 2021 Appointed l July 2020, term concluded 30 June 2021 Appointed l Juty 2020. term concluded 30June 2021 Student Trustees 8ishi-Nayan Varodaria Jame5 William5 Nathaniel OKtJnniyi Olivia George lessy Martin Appointed l July 2020 Appointed l July 2020 Appointed l July 2019, term concluded 30 June 2021 Appointed l July 2020. term concluded 30 June 2021 Appointed l July 2021 External Trustees Jirn Anderson Stuart Maister IResigned May 20211 Rebecta Sell Registered Office Univer51ty of Southampton Students, Union (also called-SUSU-I Southampton Hampshire S017 IBJ Senlor Leadership and Key Management Personnel Jim Gardner Chief Executive Sonia Cottrell Director of Advice & Representation Paul Davie Director of Operation5 (Company Secretary) Anthony Douglas Director of People Iresigned December 20201 Dawd Murtagh Dirertor ol Union Serrice5 Ire5igned November 20201 Chris Small Director of Activities Auditors Bankers Solicttors Warner Goodrnan LLP 8 College Place London Road Southampton 15 2FF Crowe U.K. ILP Aouis House 49-51 Blagrave Street Reading RGI IPL Lloyds Group PIC 1st Floor 3 Town Quav southampton S014 2AQ University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2021 The Board of TnJ5tee5. who are also Dlrectors of the Union. present their annual ￿port for the year eThded 31 Jvly 2021 vnder the Companies Act 2(K)6 and the Charities Act 2011. together with the audited financi815tatements for that year. The format and content of the report and financial statements comply wih the Companies Act 2006, the Charitie5 Act 2011 and the statement of Recommended Piattice. Accounting and Reporting by Charities. SOAP IFRS 1021. TRUSTEES, REPORT StTUrture. governan¢e. and management Charitable status The Union is re8lStered as a charity. and a5 a company limited by guarantee. in England and Wales. Artlcles of Association The Union was firsr established in the Charter of the Univeisity of Sc*utharnpton which Specifies that-there shall be a Union of Student5 01 the Universiv. The Union is incorporated as a Company limited by guarantee and regi5ter2d as è Charity in England and Wales. The Laws. which preViou￿V governed the Union. were replaced by the Memorandum and Articles of Association I'the Artlcles'l on August 2012. Method of appolntment of Trustees The management of the Union is the responsibility of the Trustees who are elected or appointed under the terms of the Articles. The Sabbatical and Student Trustees are elected by a ballot of all full members of the Union each year. These trustee5 operate on a l-year term of office from the 1st of July to the following 30th of June, unless re-elected. They mav be re-elected for one additional l-year term. The UniorL is grateful for the contribution5 01 our Ertemal Trystees. who are nominated and appointed by the Trustee Board. External Trustees serve a 3-year term and may be re-confirmed for one additional 3-year term. Organi5ational strurture and decisTron making The Annual General Meetiftg is the governing bodyof the Union and, subject to the Rules and Article5 01 the Union, has the power to make poliry in the Thame of the Union. Llnion Senate and Students via referendum also have the power to make policy in the name of the Union. subject to the Rule5. The Trustee Board is re5pon5ible for ovefseein8 the mana8ement and admini51ration of the Union. The Board ha5 ultimate responsibility fDr the governance. budget ènd employment issues of the Union and the strategic direction of the Union, much of which ts delegated to officers and staff. The Trustee Board also delegates relevant decisions to relevant subcommittees that cover the areas of Finance & Staffing and Renumeration. These svbcommittees have clearly defined term5 01 reference. From August 2021 onwards new committees of Finance and Resources. Audit and Risk, and Executive Performance and reward will replace the previous committee 5tructsJre. Key management personnel remuneration policy The Union has adopted a Rernuneration Policy for Senior £xecutive5. approved by the Board of Trvstees. The Board recognises its responsibillb.es to protect the reputation of the Union, to refbect the values and ethos of the Union as a students. union and registefed charity. and therefore to ensure that the pay of its senior executives is fair, not excessive. and ju5tiliable to the membership and wider stakeholder5. The Board also adopts the principles of openness and transparency of senior executive payi as recommended by the NCVO Inquiry into Charity Senior Executive Pay. The Board of Trusiees therefore uses the following mechanisms to help meet these objeclive5 and to support it in determining the pay of senior executives- The Board has eslablished a Remuneration Committee Isince thanged to'Executive Performance and Reward Committee'l with a remit to oversee and 5UUtinise ihe performance and remuneration of senior executives, on behalf of the Board. Remuneration Committee will review the 3nnual'Pay and Equalities Surve¢ conducted by the Association of Chief Executives of Voluntary Organisation5 IACEVOI. of chèrity senior executive5, remuneration. and informally benchmark the remuneratlon package of the Union's senior executives a8ainst it. University of Southampton Students, Union Trustee5' Report For the Year Ended 31 July 2021 Remuneration Comfflittee will on a periodic basis land at least every three years) benchmark the pay ol its senior executives against a Cross section of other comparable UK students, unions (for example, comparable annual turnover and number of employee5.' comparable scope and scale of attivity.. and achievement of comparable quality measures and indicators suth as applicable NSS results. comparable KPI'S. achievement of Investor In People statils and other quality standards). On an annual basis, Remuneratiofi Cornmittee will rewew relevant internal HR data for senior executive5. such as staff tumover. staff satisfaction. feedback f¥om appiai5als and perforrnance metrics. Employee Consultation and involvement Employees are consulted on issues of Con￿rn to them by mea05 of a consultative committee Istaff Fo¥uml, regular staff meetings, and regular electronic updates from the Senior leadership team. They have been kept informed on specific matter5 directly by management. We run a staff survey in January each year to understand staff needs and concerns and develop an annual action plan based on this. The Union offers exit intemews for all core staff leawng the or6ani5ation and has adopted a procedure of upward feedback for senior leadership and the Trusiees. The Union has long-estsblished fair emplLryment practices in the recruitment. selection. retentlon. and training of Staff. We continually review our employment policTres in conjunction with the fftrall staff team. Relatlonshlp wlth the non•tharitable subsidiary The charity has a wholly owned non-charitable subsidiary. SUSU Social Enterprises Limited, which was incorporated to carry out the nDn-member tradin£ artivities of the Union. Further details are shown on the balance sheet and accompanying notes to the account5. Net profit5 from this company are donated to the charity under Gift Aid. to leave no taxable profits irb the trading company itself. RelatlOn5hip with University of Southampton The relationship between the University of Southampton and the Union is established in tlie Universitycharter and detailed in the con5titution5 of both organisations. The Union President and University ol Southampton President & Vice Chancellor annually re-sign the Relationship 4reemeni which outlines the iM￿rtanCe of the relatlonshlp berween the two organisatsons. The Union receives both a block grant from the University based on the fvll-time equivalent number of students registered at the University and other funding on a project-by-project basis. All othertransactions between the two parties are carried out on a commercial basis. There is no reason to believethatthi5 or equivalent support from the University will not continue for the foreseeable future. STRATEGIC REPORT Objectives and A¢tivities Charitable objectives A5 Stated in the Articles of Asgxiation, the Union's objects are the advan￿ment of education of students at the University of Southampion for the public benefit by= promoting the interests and welfare of members at the Unrver5ity of Southampton durin8 their course of study and representin& supportin& and adwsing members. 2. being the recognised representative channel between members and ihe Univer51ty and any other relevant external bodies. providing social. cultural. sportin& and re(￿atIonal activitie5 and forums for discussions and debate for the personal development of its ￿em￿r5. promoting and facilitatin8 student5, involvement in their wider community- ratsing funds for other charitable organisation5. The objects are to be carried out in complete independence of all reli8ious and political 8rovps and in such a manner so as Dot to discriminate unreasonably between members. University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2021 The Trustees confirni that they have complied wtth the duty in Section 17151 of the Charities Aci 2011 to have due regard to the guidance issued by the Charity Commission OTh public benefit. bl Strateeies for achiwng obiectrves The impact ol COVIO-19 and resulting uncertainty has led to our deciding to proceed ￿th a flexible Strategy instead of traditional 3-5-ye3r plan. A l-year iNterim strategy was therefore adopted for the year to manage our approach to COVID, whi15t consultation and development on the substant¢ve new strategy took place. As part of this work, we adopted three new values ol Stand Strong. Join Together. and Take Re5ponsibility- Our Vision was also updated to°Every student loves their time at Southampton." We expect these new value5 and vision will continue into the substsntive strategy for 2021- 2025. Our overall plans for the year are supported by indiwdual plans lor each Sabbatical Officer (approved by Union Senatel, Operational Plans for every staff team and specific sirategies developed by the Senior leadership and approved by the Trustee Board for key areas of Impart. Artlvftles for aChIe￿nE objecti1￿5 We prowde offers. services. and representation for our rnembers across five main areas of focus: Student Voice IEducation. Voice. Elections) Student Communities IActivitiesl student Experience (Freshersl Student Support (Adwce & WeKarel Social Enterprises (Entertainment. Retail. Food & Beverage) Achievements and performance Retail and Food & Beverage Lockdown and restriction5 bmpacted oui lood & beverage operations dvring the year, with trade impossible for much of the period. We introduced app-based ordering for the Autuinn term, and this did see high take-up arnongst students for the first 6 weeks of activity before ihe November 2020 lockdown. Working With the University we increased the space avè51able for our main bar. the Stags. by usin8 the adjacent Garden Court space whith they prowded to allow for social distancing and maintaining capacity. 8efore lockdown we held a series of Black History Month food-led events in the Bridge restaurant which attracted a range of students to experience the variety of food p¥owded. These events were led by students frorn our cultural societies to share their experiences and recipesof thwr national food dishe5 and were3 great success. As a result of the UK restrictions, we introduced a new outdoor bar offer called -Below Deck- in time for the summer term. This saw high levels of use by students and benelitted from good weather during the period. We intend to invest in the space lor the fijture as COVID identified the need lor an outdoor bar offering that we preViou￿y lacked. The Shop saw decreased 5ale5 compared to prtrCOMD but traded conystently week on week lo support the limited numbers of staff and students that were on campus durin8 the lockdowns and 5ub5equent opening periods. Our Shop on Top offer was lafgely c105ed during the year, but we did relocate top-sellin8 Items to the main Shop to have them available to students. Looking ahead we will be investing in self-service tills for the main Shop and relocating the Shop on Top to a more prominent location. Reprtsentadon Student repre5entaiion was a greater priority than ever durlng the varied year because of COVID changes. The move to online lecture5 and representing student feedback and ￿ewS about these was a key part of the student representation Work for the year. Additionally. we continued to run our programme of elections each terni to elett a r2nge of volunteer roles, both academic representatives and wider student experience and liberation role5. plus the important trustee and sabbatical positions. Overall. the elections held throu8hout the year received 425 nominations, and elected to most available roles. includin8 academic representatives. A total ot 12,415 votes were cast by 9.050 individual students across all these elections which wa5 nearly a l(M)% increase on the previou5 year. Our Spring election5 remained the biggest single period of voting in theyear. all elections showed satisfactory Sevelsof turnout. We also received 92 submissionsthrough University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2021 our 'You Make Change, System during the year, many of which were to do with online lectures and access to in-per50ll services or changes because of COVID. Advice Our advisors wok*ed on 3,850 cases over the course of the year, includin8 1,817 Academic, 866 Finance. 748 Housin8 and 419 mi5cellaneovs cases. The support the team prowded ￿11 have been instrumental for many students in their ability to continue with their degree programmes. The Ad￿ce Centre team provided a virtuèl serwce for the entire year to ensure the provision of independent advice for our members. The impact of COMD-19 required increased work for academic appeals with the number of cases worked on doubling compared to 2019. This was exacerbated by a backdrop of changing approaches to COVID by the Univer5ily and wider UK Government approach. Letting5 We continued to pn)vide a Lettings service to our members. 1Olhilst COVID restrictions irnparted how the Service operated, we adapted to prowding online viewinES or coordinating with existing residents to offer COVID-secure viewillgs. We let over 50 properties within the year. over 2(¥) bed5 overall. and are anticipating renewed interest in the coming year a5 studernts ￿tUrn to campu5. We continue to aim to prwde qualrty housing lo our rnernbers with no hidden or extra costs. Artivitie5 We introduced an "interested" trial membership for the start of Autumn 2020 to gi¥e students a free opportunliy to loln clubs & societies to see if they wished io commit to the 8roup for the year. Over 5,LK)O students utili5ed thi5 Option. We also rèn blended online and in-person drDTrin sessions ai the start of the academic year to allDW Students to safely hear from committee5 of clubs & S￿letieS about their offer. cov1￿19 impacted our goal of more than 50% of students being part of a club or socleiy. with 38% of the student population having joined at leasi one group during 2(P21. Dve to the enforced lack ol activity by SUC￿$s1Ve lockdowns and then the academic year endin& the overall figures are wewed a5 positive. Additionally. most internarional student5 were not able to study in the UK during the year and were unlikely to therefore loin clubs & societies a5 a result. despite online attiwity being offered. To 5UPPOrt the activity of our clubs and societies we awarded grants during the ye&T totalling £114.271. This was lower than normal due to restrictions on activity, although thrs also led to a decrease in the amount of grants requested by 8lOUPS. We continued to offer over 300 different club5 and societies for our members to join, including over 90 competitive and 9 intramural sports. Llnfortunately. the national British University Colle8e Sport518UCSI league did not compete due to COVID-19. We were able to run our annual Varsity sports tournament against the Universiry of Portsmouth in Spring 2021. one of the few varsity toumament5 to take place nationalty durin8 the year, in which we were victoriou5. Our Raise and Give IRAGI fundrai￿ng team of volunteers raised an impressive El51.616 during the year., being all fundraising carried out by clubs and societies in the year. This was a fanlaslic achievement given the impact of lockdown on the final months of fundraising actiwty. The amount fundraised wll benefit a ranEe of chariries including the three core charities for the year of Robbie's Rehab (local charity). Teenage Cancer Trust (national charity) and A21 (international charity). In the final terni of the year. we delivered a range of event5 under a "Summer Festival" umbrella brand, and also provided a week of -Lost Events- lor new and graduating students in recognition of the lost opportunities during the year. Summer Festival events celebrated the weather and maximi5ed the actiwty we could deliver outdoors to provide a COVID- secure environment for staff and studeDt5. Activities included free barbeques, live music, qvizzes. crazy golf and more. and were p051tively received by 5tudenls. The Lost Events programme intluded Christmas themed activity, a Sports Dav, Birthday themed day and a Graduation themed day. ￿1 aciivity was prowded free of charge and over the week we saw more than 2,S(K) st(tdents en838e with the actiwty. We continued to ￿lebrate our annual Society and Volijnteering Awards online. recognising the tremendous accomplishments of our volunteers. Over l(K) nominations were re￿[Wed. with 11 indi￿dualS and groups receiving awards. Our Academic Awards. celebrating both academic staff 3nd academic representatives, received over 200 nominatton5 across the five faculties of the Univer5ity- Overall We saw a small ijecrea5e in our National Student Suw INSSI score to 50% (down from S2% in 20201. however this was reflective of the wder sector nationalty, low engagement with the NSS and a challengin8 year for our members in term5 of University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2021 the education and student experience. Whilst diSap￿intin& the small decrease was not vnexpected a8ainst the backdrop of COVID and an unusual year. The year Stself has been challenging due to the Blobal COVID-19 pandemic. which saw all our facilities closed for over 25% of the yeav and will continue to impact us in 2021-22. All indicaiions before this were posltrve. with strong en838ement across the commeraal. support. representation. and actiwtie5 that we offer. Throughout this difficult period. we remained committed to delivering a positive student experience for our member5. and we successfully delivered a range of online actiwtie5 and ensured the student voice was heard at the highe￿ levels of the University. Financial review Grant making policies The Union give5grantsto many of its affiliated clubs and societiesto helpthem to pursue theirgoals. in addition to provldlng indirECt support through our stafl and access to physical spates. Grants are awarded against key criteria defined by the relevant committees ovefseeinR clubs and societie5 and mode each temi. For 2020-21 a reduced level of grant fundinE Was provided to clubs & societie5 due to the limits on activity imposed by COVID restrictions. Our goal was to enable groups to piovide online acriwties where in-person wa5 not possible and build communitie5. Sorne degree Df sporting activity was permitted during the year. although the national BUCS league did not take place, and the University prowded additional funds to support our sports clubs in this. bl Reserves policv The reserves wlicy of the University of Southampton Students. Union is to maintain a level of unfestricted cash fund5. excluding those committed to or invested in tangible assets. which will enable the Union to maintain the day-to-dav operations ol the ijnion for a period of three months and can adjvst. in a measured way. io any significant changes in re50urce5. This target equates to approximately EEiKI.O(L) of operating costs. The Union currently has free reserves. as defined by the Charities Commission, of £521.28712020= £444.8E￿). Principal fvndin8 The University of Southampton provides the Union with an unrestricted block grant each year. For the year 2020-21 thls amounted to £2,332,2S3 12020-. £2.210.1321. The University did not provide any restrirted grants in the year and contributions towaids the cost of fixed asset purchase5 were Enil12020= Enill. dl Materlal Investrnents pollcy In deciding how and where to invest any surplvs funds. il is the Union's rKTrlicy to take a risk averse stance, give due consideration to current Trustee Board direttives and maximise returns on investments Within the parameters set ovt theretn. Surplus operating money will be held in interesi-bearing bank deposit accounts on a regular basis. Monies may be held in a range of longer-term deposits, limited to a maximum term of 12 months and will be for no more than £250,000 in any single account o¥ institution. Deposit5 over £l(KI,QKMJ or deposits made for periods longer than 6 months need approval from Finance and Staffing Committee (Finance & Resources Cornmittee from August 20211. There will always be sufficient money held on call to meet the financial requirements of the Union for a Peri[￿ of one month. Any requests for an overdraft or lon8-term loan facility from bank5 rnU5t be approved by the Trustee Board. There will be no investments in shares. gilts or bonds which are openly traded on the stock market5. Shares. gilts, or bonds may be held in companies with a direct connection to the aims of the Charity subject to confirmation of the 6bility of the invested entitv to provide return5 on the Union's investments. No money will be dep051ted outside of the UK. The amounts of dep051ts are Included within the Union's management accounts. COVID-19 Impact The global COVID-19 outbreak had a Significant financial impact on the organisation. with the impact of lockdowns from November 2020 onwards curtailing planned actiwty rapid￿. This led to the closure of our food & beverage areas for most of the year, with one outdoor bar re-openin£ after Easter 2021 in time for Summer 2021 actiwty. Our Shop continued to trade throughout the period to provide support for the limited number of staff and students On campus. Subsequent restrirtions impacted the activity of our clubs and societies. many of which needed indoor spaces. and the availability of 5pace5 we could safely provide them. The need for table service in bars. and outdoor bar Space. limited the food & beverage activity we could provide within these limits. We 5ucces5fully introduced app-based orderlng within our bars, and later opened an outdoor bar provision for the final quarter of the year. University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2021 The Union utilised the Government's CorDnavirus Job Retention Scheme ICJRSI, also known as 'furlough', and received grants of £246.75212020-. £260.9021 from this scheme within the year. half of the Union's core staff were furloughed.. the Union 'topped up, pay to in the first month, tiered down to 80% after the third month. We maintained full employer pen￿on contributions and topped vp employee contributions to their regular levels as part of OLJr commltment to the long-term future of our employees. The Union utilised the CJRS for support staff, who are predominantly students employed on zero-hours contracts. Pay was nor topped up foi these staff but (tse of the scheme enabled us to provide our Student employees with income when they would Other￿Se have been unpaid during the year. Our key goals throuRhout this period have been the safety of our staff and members. securing the financial sustainability of the organisation and to ensure that students ère able to receive the best p￿SSIble experien￿. Principal rlsks and uncertalntles and risk management The Union has two sovrces of funding.. the block Erant from the University and commercial incorDe from trading. The block grant has declined in past years due to reduction5 in student numbers. whilst our 5taffin8 and infrastructure costs increase. This has led to increèsed piessure to demonstrate value for money in our activities whilst building a high-performing staff team. We are working closely with the University to build on our strong relationship and toward5 a longer-term funding agreement, with 3 3-year funding model agreed from Au8usI 2021 onwarLIs. Event5 over this financial yeai have shown the vulnerabilities inherent within our financial model when we were forced to close our trading Outlets for m05t of the year and we had no alternative means of trading. This signifi.cantly reduced our Income whilst we continued to incur fixed costs on staffing, although the furlou8h scheme did mitigate thi5. We continue to work on developing our ftsk management framework and have also been assessing our overall compliance wtth legislation and fegulation beyond health & safety, to prowde assurance to key stakeholders of our compliance with the law and best piactice. Overall perForman The Union's gross income from all sources totalled £3.S94.83112020.. ES.399.3621 against total expenditure of £3.618.416 12020.. £5.357,1831. Revenues decreased from the previous year by 33%12020.. decreased by 20%1 due to a reduction in student numbers. and a Significant drop in commercial 5ale5 because of the COVID-19 global outbreak and UK lockdowns. However overall expenditure also decreased by 32% due to lack of trading purchases and measvres taken to control our financial outlay during the year because of lockdowns and limited activity. We operated a broadly balanced budget to provide 3 wide range of student benefit5 and. as a result. created an overall deficit of £23.S8S12020.. £42.179 surplus). The total of all Union reserve5 decreased to £902,90412020.. E926.4891. The Trustees have agreed that the financial performance for the year 202￿21 was adequate. Plans for future perlods A new Strategy was developed during the year to cover 2021- 2025. followin£ the interirn strategy implernented for 2020- 21. Underpinning this strategy will be further 5trategie5 on Finance, People. Digttal and Equality. Diversity & Inclusion IEDII. The Strategy wll in turn be linked to operational plans, learning & development programmes, and further development ol our f3cilities and activities. We are intending to invest in our facilities dvring 2021 to addres5 the historic lack of investment and identify new ways of workin8 and student behaviour. In particular. we plan to invest in our social enterprise areas, introducing new technolo8ies in our retsil aiea, enhanced offers for our bars, and generally improve the quality of spaces available in our building5 for 5tudent5 to Use for both academic and recreational activity- Looking ahead, the financial backdrop for 2021-22 is challenging due ro the ongoing impact of COVID and correspondlng uncertainly this cau5e5. A key concern going into the new year is the long-term impacts of this on the inherent knowledge of our student clubs & 9)cieties, many of which have not ￿en able to operate norrnally and105t key members as a result. Additionally, the results of fvrlough and inflation on the recruitment rnarket are expected to pose challenges as we seek to fill roles left vacant during lockdown to be able to prowde normal operationsto our staff and rnembers. The legacy of COVID is still unclear but is forecast to change howour staff work. with hybrid working now seen as the future office environment. and how our members behave. University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2021 External Affir￿tIOns Under the Education Act 1994. the Union Os required to report to its members, on an annual b3515. all current external affiliations. A5 of 31 July 2021. the Union affillated to the or8ani5ations shown below, together with the c05t of affiliation in the year ending 31 July 2021: Advice UK British Universities and Colleges Sports18UCSI National Association of Student Money Advisors INASMAI Student Rad50 AssocSatlon £2.236 £16.599 £120 £96 Salary Information In accordance with our Remuneration Policy. we have provided the numbersof fvll-time staff and gender. grouped bysalary ranges. Male F*male £0- £9.999 £10.000- £19,999 f 10,000- £29,999 £30,000- £39,999 £40,000- £49,999 £50,000- £59,999 £60,000- £69.999 £70,000- £79.999 19 24 Fundralslng Statement The Union does not work with any ￿ernal party acting on ￿￿[ behalf to carry out fundraising actiwty and does not make direct fundraising appeals to our members. We are committed to upholdingthe Fundrai51nB Regulator codes ol practice for any fundraising actmty carried out by our members and supported by us. We have received no complainis about our fundraising activitlES. Trustees. statement So fèr as each of the trustees and dirertors is awdre. at the time the report is approved= There is no relevant audit informatron ot which the compan￿$ auditors are unawafe,. and Each trustee has taken all steps that ihey ou8ht to have taken as a trustee to make themselves aware of anv relevant audit informatlon and to establish that the charitable company's auditor5 a￿ aware of that information. Auditor5 Crowe U.K. ILP have expressed their willingness to continue in office as auditors and a motlon proposing their reappointment will be submitted to the forthcoming Annual General Meetiiig. The Trustees Report, under the Charilie5 Act 2011 and the Companies Acl 2006, was approved by the Board ofTrustees on 08 December 2021 including approving. in their capacity as company directors. the Report contained therein and is signed as authorised on its behalf by: 8enjamln Dolbear Chair of Trustee Board 1021-22 University of Southampton Students, Union Statement of Trustees, Responsibilities For the Year Ended 31 July 2021 The Trustees Iwho are also directors of University ol Southampton Students. Union for the purposes of company lawl are responsible for p¥eparing the Trustees. RepDrt and the financial statements in accordance wth applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Atcounting Standaid51. Under company law the Trustees mu51 not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of the incoming resource5 and application of resources, including the income and expenditure, of the cha¥itsble company lor that period. In preparin8 these financial statements, the Trustees are required to.. select suitable accounting pdicies and then apply them consi5tently- observe the methods and principle5 in the Charities SORP- make judgments and estimates that are reasonable and prudent. state whether applicable UK accounting stand8rd5 have been followed. subject to any material departures disclosed and explained in the financial statements.. and prepare the financial statements on the going concern ba515 unle55 it is inappropriate to presume that the charitable company will continue in busines5. The Trustees are responsible for keeping adequate accountrng records ihat are sufficient to show and explain the charitable companws transactions. disclose with reasonable atturary at any lime the financial p051tion of the charitable cornpany and enablethem to ensure that the financi31 stalement5 cofflpty with the CompaniesAct 2(X)6and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taknng reasonable steps for the prevention and deteciion of fraud and other irre8vlarittes. A Crowe Independent Audltorfs Report to the Members of Unl¥erslty of Southampton Students. Unlon Opinion We have audited the financial statements of UnNersity of Southampton Students, Union for the year ended 31 July 2021 which comprise the Group Statement of Financial Aclivities. the Group and Company Balance Sheets. the GTOUP Cash Flow StatemeTht and the notes to ihe financial statements. including 3 5urnmary of si8nificant accounting poliEies. The financial reporting framework that has been applied in their prepèration 15 applicable law and United Kingdom Accounting Standards. including Finarbcial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom GenerallyAccepted Accounting Practice). In our opinion the financial statements: give a true and fair view Of the state of the group's and the th3ritable company's affair5 as at 31 July 2021 and of the group's incoffling resources and application ol reSoUr￿s. including its sncome and expendtture for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the reovirements of the Companies Act 2(￿￿. Basls for opinlon We conducted our audil ifi accordance with International Standards on Avditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the finbncial statements section of our report. We are independent of the group and charitable company in accordance with the ethic61 requirements that are relevant lo our audit of the financial statements in the UK, Including the FRC'S Ethical Standard. and we have fullilled our other ethical responsibilities in atcordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions rtlatln8 to 8oinB COn￿M In audTting the financial staternent5. we have concluded that the tW5tees' use of the going concern basis of accounting in the preparation of the financial statement5 15 appropriate_ Based on the work we have perforrned. we have not identified any m3tefial uncertainties relating to event5 or condition5 that, individually or collectively. may ost significant doubt on the group and the charitable company'5 ability to Continue a5 a going ioTrcern lor a period ol at least twelve months from when the hnancial staternents are authorised for issue. Our responsibilities and the responsibilities of the trv5tees with respect to going concern are described in the relevant sertions of this report. Page 10 Crowe INDEPENDENT AUD￿OR,5 REPORTTO THE MÈMBERS OF THE UNIVERsifY OF SOUTHAMPTON STUDÉNTS. UNION ICONTINUEDI Other information The trustees are responsible for the other Information contained within the annual report. The other infomation comprises the inforrnalion included in the annual report. other than the finant1315tatement5 and our auditorfs report Ihereon. 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 aSSUTance conclusioll thereon. Our responsibility is to read the other information and, in doing $0. con&der whether the other information is materially incon515tent with the financial statemenis or our knowledge obtained in the audit or otherwrse appear5 to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatements, we are required to determine whether this gives rise to a material misstatement in the financial 5tatement5 themselves. 11, based on the work we have performed, we condvde that there is a material mis5t3tement of this other infom)ation, we are required to report that fact. We have nothin8 to report in this regard. Oplnlons on other matter5 prescrtbed by the Companies Art 2[￿6 In our opinlon based on the work undertaken in the course of our audit the infomiation given in the trustees. report, which Tnclude5 the directors, report prepared for the purp0525 of company law. for the financial year for which the financial statements are prepareil is consistent with the financial staternents.. and the directors. report included wthin the trustees, report have been prepared in accordan￿ with applicable legal requirements. Matters on which we are requlred to report by exception In light of the knowledge understanding of the group and charitable company and its environtnellt obtained in the course of the audit. we have not identified rnaterial misstatements in the directors. report included within the trustees. report. We have nothing to report in re5pert of the followng matters in ielation to which the Companies Art 20(￿ requires us to report to you il. in our opinion-. adequate and proper accovntine records have not been kept.- or the financial statement5 are not in agreernent wth the accountin8 ￿CordS and returns- or certain disc105ures of tru5tees' remuneration specified by law are not rnade.. o we have not received all the informaiion and explanations we require fN our audit li A Crowe INDEPENDENT AUDITOR'S REPORT TO THE MÉMBERS OF THE UNIVERsrrY OF 501JTHAMPTON 5tUDENTS' UNION ICONTINUEDI Responslbllltles of trustees As explained more fully in the truslee< responsibilities ststement on page 22 the irustees Iwho are also the directors of the charitable compat7y for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control a5 the trustee5 determine is necessary to enable the preparation of finanoal statements that are free from material misstatemeTht. whether due to fraud or errol. In preparing the financial Statements. the trustees are responsible for assessing rhe group's or the charitable company's ability to continue as a going concern. di5c105in& as applicable, matter5 related to going concern antl using the going collcerll basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operation5. or have no realistic alternative but to do so. Auditorf5 responsibllltles for the audlt of the financial statements Our objectives are toobtain reasonableassurance about whetherthe financial ststements as a whole arefree from material mtsstatement. whether due to Iraud or errof, and to Issue an avditorfs ￿port that includes our opinion. Reasonable assurance is a high level of assurance. but is not a euarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Mi5Statements can arise from fraud or error and are considered material if, individually or in the ag8regale, they could reasonably be expected to influence the economic decisions of u5e15 taken on the basis of these financial staternenis. Details of the extent to which the audit was considered capable of detectin8 irre8ularrties. induding fraud and non- compliance with laws and regulations are set out below. A further description of wr responsibilitie5 for the audit of the financial statement5 15 located on the Financial Reporting Council's Web￿te at= www.frc.or onsibilities. This description forms part of our auditor'5 report. Extent to which the audit was Considered Capable of deterting irregularities, includlng fraud Irregularities. including fraud. are instances of non-cornpliance with laws and regulatlOll5. We identified and assessed the risks of material misstaiement of the financial statement5 from irregularities. whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedvres responsive to those risks. including obtaining audit ewdence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory framework5 Wtthin which the group and the charitable company operates, focusing on those laws and regulations that have a direct effert on the determination of material amounts and disclosures in the financial statements. The law5 and regulations we considered in this context were the Companies Art 2006 and the Charities Act 2011 togdher wilh the a)aritiÈs SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition. we considered provisiorÈs of other law5 and regvlations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the group or charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the group or charitable company for fraud. The laws and regvlations we considered in this context were General Data Protecting Regulations, Healih and Salety and Saleguarding of students. Auditing standards limit the required audit procedures to identify non-complian￿ with these law5 and regulatlons to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if anv. 12 ## **Crowe A** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE UNIVERSITY OF SOUTHAMPTON STUDENTS' UNION (CONTINUED)** We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Trustee Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulation. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## Alastair Lyon Senior Statutory Auditor For and on behalf of ## **Crowe U.K. LLP** Statutory Auditor ## **Reading** **Dated: 16 February 2022** 13 University of Southampton Students, Union Consolidated Statement of Financial Activities For the Year Ended 31 July 2021 Notes Unrertricted Ile#rlrted Income Totsl 2021 Totol 2020 Income and endowments from: Donatlons: University Grants - Other Grant5 2.332.253 2332253 2.210.132 178.424 312.0￿ 322.L - Grant in kind from Unib*￿ty OtherTrading Activi￿". - Rental incc - Sponsorship and marketing inccrtr Investment income Charitsble acli¥ities for students: Bars 322.LXKI 2,477 57.552 2,477 57.5S2 10,941 123.892 6.564 201.028 4,206 2.216 323,880 27,149 60,534 9,276 204JJ28 650.383 4.206 175.494 2.216 74.508 323180 1,226.764 27.149 42,530 60.534 39.782 9,276 61,986 248 852 Caterlng Events Shops Lettings - Student Actiwtie5 - 5tvdeni Sew Other ina>me Total Income Expendhure on Charitable ActlvSt6es for students: Bar5 442.259 374.3( 442.259 374, 747.689 697.046 145.824 765.743 1,579,804 96.158 .688 641,75 I.LX79.272 1.257,762 1,011,290 Catering Events - Shops lettings - Student Actmties 765,743 96.158 616.893 1,257.762 24,865 - Student Representation - Student Services Total expendltur• 3 618 416 ￿￿7]85 Net incomellexpendlturel before transfers Transfers between funds Net movtmtnt In funds Fund balances brou8ht forward 1.280 124.865) 123yS) 42,179 1.280 124.8651 123y51 43.179 Fund balantts carrltd fm¥a 17 All activities relate to continuing operations The Consolidated Statement of Financial Actbvities contains all Bains and losses recognised in the year. The notes on pages 19 to 36 fom) part of these financial statements 14 ## University of Southampton Students' Union Consolidated Balance Sheet ## 31 July 2021 |**Fixed assets**
Tangible assets
**Current assets**
Stocks
Debtors
Cash at bank and in hand
**Creditors:**Amounts falling due within one year
**Net current assets**
**Total assets less current liabilities**
Notes
11
13
14
15
**Creditors:**Amounts falling due in more than one year
16
**Total net assets**
**Charitable Funds**
Restricted funds
Unrestricted funds
General funds
**Total funds**
17
17||**2021**
**£**
**359,942**
**65,321**
**161,529**
**1,288.096**
**1,514,946**
**(616,982)**
**897.964**
**1,257.906**
**(355,002)**
**902.904**
**21,674**
**881,230**
**902.904**|_2020_
£
_480,843_
_137,316_
_191,197_
_1,078,090_
_1,406,603_
_{559,673)_
_846,930_
_1,327.773_
_{401,284)_
_926,489_
_46,539_
_879,950_
_926,89_|_2020_
£
_480,843_
_137,316_
_191,197_
_1,078,090_
_1,406,603_
_{559,673)_
_846,930_
_1,327.773_
_{401,284)_
_926,489_
_46,539_
_879,950_
_926,89_| |---|---|---|---|---| |||||| |||||| |||||_926,489_
_46,539_
_879,950_
_926,89_| |||||| The surplus for the year in relation to the Union only was £50,130 _(2020: surplus £49,614}._ These financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 8 December 2021. **Benjamin Dolbear** Trustee The notes on pages 19 to 35 form part of these financial statements. 15 ## University of Southampton Students' Union Union Balance Sheet 31 July 2021 (Company Number: 08034371) |Notes
**Fixed assets**
Tangible assets
11
Investments
12
**Current assets**
Stocks
13
Debtors
14
Cash at bank and in hand
**Creditors:**Amounts falling due within one year
15
**Net current assets**
**Total assets less current liabilities**
**Creditors:**Amounts falling due in more than one year
16
**Total net assets**
**Charitable Funds**
Restricted funds
17
Unrestricted funds
General funds
17
**Total funds**|||| |---|---|---|---| ||||| ||||| ||||| These financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 8 December 2021. **Benjamin Dolbear** Trustee The notes on pages 19 to 35 form part of these financial statements. 16 University of Southampton Students, Union Consolidated Cash Flow Statement For the Year Ended 31 July 2021 Noies 2021 2020 Cash flows from operating artlvities Net movement in funds Oepreciation Loss/lprofitl on the sale Interest rece*ved 123,5851 155.177 10.151 14081 71,996 29.668 57,309 42.179 178,020 (6.5641 35,981 124.897J f255.789J Decrease in stock Ilncreasel in debtors IDecreaseifincreasel in creditors Ioecreasel in pension liability Net cash lused inl/provided by operatfjnK actfvltles Cash flows from investing actfvltles Interest receivable 408 6,564 74 Purchase of tanglble fixed assets Net cash lused inl investing activities Change in cash and cash equivalents in the year Cash and cash equivalent5 at the be8inning of the year 210,006 1078 090 (121.6671 1 199 757 Total cash and cash equivalents at the end of the year 2021 2020 Cash at bank and in hand Analysis of changes in net funds: At l August 2020 Cash flow At 31 July 2021 Cash 1 288 096 1078 090 1 288 096 The rbotes on pages 19 to 35 form part of these financial statements 17 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 CHARITY INFORMATION The principal artivities is campaigning. representation, provision of social activities and, the organisation of sporting and recreational activities 3nd opportunities. University of Southampton Students, Union is an incorporated charity. (Charity registration no. 1148685, Company number.. 080343711 domiciled in the UK. The registered office University of Southampton Students. Union, Southampton, Hampshire, S017 18J. ACCOUNTING POLICIES 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20151- Charities SORP IFRS 1021. the Financi31 Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 20￿. University of Southampton Students, Union meet5 the definition of a public benefit entity under FRS 102. A5set5 and liabilities are initially recognlsed at historical cost or transactbon valve unless otherwise stated in the relevant accounting policy notelsl. 2.2 8a515 of consolidation The consolidated accounts include the trading artivities. assets and liabilities of the group subsidiary company in accordance wrth the Charity SORP. Intra-group transactions and balances have been eliminated on consolidation. As permitted by section 408 ofthe Companie5 Act 2006 and in accordance Charities SORP 2015, no separate Statement of Financial Activities has been presented. 2.3 Going concern The trustees have a reasonable expertation that the charity has adequate resources to continue in operational existence for the foreseeable future. In making their assessment the trustees have considered the impact on the business of Covid-19 including the ability of the charity to continue to carry out its charitable objects, the impact on future income and cash collections and the financial position of the wider group. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements. 2.4 Fund attountlng Gene¥al funds are unrestrirted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Union and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular Purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are fund5 which are to be used in accordance with specific restrictions imposed by donors which have been raised by ihe Union for particular purposes. The c05t of raising and administering such funds are charged against the specific fvnd. The aim and use of each restricted funds is set out in the notes to the financial statements. Investment income, gains and losses are allocated in the appropriate fvnd. 18 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 ACCOUNTING POLICIE5 Icontinuedl 2.5 Income All incoming resources a￿ included in the Statement of Financial Activities when the Union 15 legallv entitled to the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Grants are accounted for under the perfomiante model as permitted by the Charity SORP. Coronavirus lob Retention Scheme grant income is therefore recognised on a straight line basis over the furlough period for each relevant employee. 2.6 Expendlture All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Support Costs are those costs incurred directly in support of expenditure on the objerts of the Union and include project management carried out at Headquarters. Governance costs are those incurred in connection with compliance with constitutional and statutory requirement5. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grant5 offereil subject to conditions that have not been met at the year-end are noted as a commitment. but not accrued as expenditure. 2.7 Tanglble flxed assets and depreciation All assets costing more than £l.(MXJ and with an expected useful life of over three years are capitali5ed. Tangible fixed assets are stated at C05t less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets. less their estimated residual value. a straight line basis over their expected useful lives at the following rates- Leasehold improvements Equrpment Motor vehicles 8-10 years 3-5 years 5 years Assets in the course of construction are not depretiated until they are brought into use. Annually the trustees review the value of the assets recorded by the Union. They are satisfied that no a5setS require provision for impairment. 2.8 Investrnents Investments are stated at the lower of c05t and net realisable value. 2.9 Operating leases Rentals under operating lease5 are charged to the Statement of Financial Artivities on a straight line basis over the lease term. 2.10 Stock5 Stocks are valved at the lower of the cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 19 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 ACCOUNTING POUCIES Icontlnuedl 2.11 Penslons The Union operates two defined benefit5 pension schemes. Universitie5 Superannuation Scheme IU551 and the Pension and Assurance Scheme for Non-Academic Staff IPASNASI. The schemes are both multi- employer schemes where it is not possible, in the nomial course of events, to identify on a consistent and reasonable basis, the share of underlying assets and liabilities belonging to individual participating employees. Therefore, as required by FRS 102. the Union accoLsnts for these schemes as if they were defined contribution schemes. However the Union also makes deficit contribution payments to PASNAS, as a participating employer, in accordance with FRS 102 these payments have been measured at fair value and included as a liability on the balance sheet. The amount charged to the Statement of Financial Attivities represents contributions payable to the schemes in respect of the accounting period. 2.12 Financial instruments Basic financial instruments inclvde debtors and creditors. Debtor5 and creditors are initially recognised at transaction value and subsequently measured at amortised cost. Note 22 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to trade debtors, amount owed by group undertakings, other debtors and cash equivalents, and financial liabilities referring to all creditor balances excluding deferred income and payments on account. 2.13 Cash and cash equlvalents Cash is represented by cash in hand and deposit5 Wlth financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acqui51tion and that are readily convertible to known amount5 of cash with insignificant risk of change in value. JUDGEMENTS IN APPLYING ACCOUNTING pouaES AND KEY SOURCES OF ESTIMATION UNCERTAINTY Preparation of the financial statements requires rnan3gement to make judgements and estimates. The kev sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statement5 are that of the PASNAS pension scheme deficit. A discount rate of 1.8% has been vsed in line with industry standards. Other Income 2021 2020 Other income 2.100 15.060 Coronavirus Job Retention Scheme grant 24 20 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 5. Resources expended 2021 Stsff Depreciation Totsl Totol 2020 costs 2021 Bars Catering Event5 192.886 190,728 150 335.S27 54.995 293.105 821,167 32,378 27.095 216.994 156,483 3.4S4 406.192 37,762 319,497 397.472 442.259 374.306 747,689 697.046 145.824 1,579,804 80.688 I,￿9.27? 1,011.290 Shops Lettings Student activitie5 student representation Student services 24.024 3.402 29.155 39.123 765.743 95,623 641.757 1.2S7,762 Total costs 2020 stoff Depreciation Other costs Totol Total 2018 2019 Bors 307.788 3￿1,957 68,541 478,076 51.767 383,893 653.258 33,466 34.096 2.893 33,975 2.893 34.540 36.157 406,435 271.993 74.390 1.067.753 26,028 590.839 321.875 747,689 697,046 145,824 1.579.804 80.688 I,(￿,272 J,011,290 1.091,569 877.592 274,326 2,054,720 115.122 1,090.014 1,221.386 Catering Events Shops Lettings Student ortivities student representotion Studentsefrvices Totolcosts 21 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 6. Support costs Included in Note 4 2021 staff Prerni5e5 Other Costs Marketlng Total 2021 Total 2020 Bars 60.583 106,625 416.245 81.391 33.$82 59.1 2.495 4,391 142.gos 251.511 131.299 323,871 43.766 407.028 43,766 315.117 547 081 Catering Events Shops Lettings Student actiwties Student representation 159,938 24.233 109.049 122,087 18,498 83.241 212 727 88.656 13.433 60.447 6,587 998 377.268 57.162 257,228 657 361 4,491 Total costs 2020 Stoff Prem￿5 Other costs Morketing Totol 2020 Totul 2019 Btirs 64,356 158.744 21.452 199.503 21,452 154,454 39.806 98.189 13,269 123,41X) 13.269 95.535 165 26,177 64.571 8.725 81.150 8.725 62,825 131,299 323,871 43,766 407.028 43.766 315,lJ7 120.234 336.656 40.077 376,735 60,118 280.546 Cotering Events 2.367 320 Shop5 Lettings Student activities 2,975 320 2.303 Student representotion rotolcosts Premises costs include £322,WO f2020.' E322,LWJ notional rent'grant in kind. charged by the University. Included within support costs are governance costs of £21.467 (2020.. E26,389J. 22 University of Southampton Students, Union Notes to the Financial Statements Forthe Year Ended 31 July 2021 7. Net movement in fund 2021 2020 Depreciation of owned iangible fixed as5et5 Loss on di5P05al of fixed assets Audit of financial statements - parent company - subsidiary company Other remuneration to avditors- tax complian - other seNces 155.177 178.020 10.151 15.440 1.485 750 14.995 1,435 1,925 8. Staff costs 2021 2020 Wa8es and salaries Social security costs Employer's pension contributions (note 181 Staff restructuring costs l.573.743 IiO.Z63 167.085 1.951.333 129.641 204,096 Total cost5 The average number of employees during the year wa5- 2021 2020 No Core staff Support staff 62 73 158 The number of higher paid employees who were paid salaries in excess of £60,1JXS were.. 2021 2020 In the bands.. £60.(KJI - £70,CMIO £70,001- £80.000 £80,001- £89,999 The employees are in the UniversiVs pension scheme at a cost of £nil (2020.- £nilJ. The staff restructuring costs of £40,641 (2020.. £65.285) include £19.92712020.' EIO,236J of non- statutorylnon-contrartual payment5. The aggregate employee benefrts of key management personnel was £402,381 (2020.- £475,893). Thi5 relates to the senior leadership team and remunerated trustees. 23 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 Trustees, remuneration and expenses In addition to their role as a trustee of the Union, the sabbatical trustees perform a full-time role for a year to be the voice of the students. They listen to how students want things to be done, work with the Union staff, the volunteers, community groups and the Board of Trustees to put the suggestions into practice. The sabbatical trustees are appointed on the Ill of Jtjly and serve until the following 30 lune and thus do not serve throughout the financial year. Number of Individual Total remuneration trustee5 remuneration l August 2020- 31 July 2021 l August 2020- 31 July 2021 l August 2020- 31 July 2021 20,549 19,996 20.414 20,549 39,992 The total trustee remuneration for the year ended 31 July 2021 was £80.955. During the year retirement benefits were accruing to five trustees f2020.- fivej in respect of a defined contribution pension scheme. No trustee received any benefits in kind during the year (2020.. nonej. During the year one trustee received reimbursement of travel expenses totalling £67 {2020.-1 trustee, £80). 10. Corporation and capital galn tax The trustees consider that the Union satisfies the conditions of section 478 and 479 Corporation Tax Act 2010 and accordingly no liability arises to UK corporation tax on its activities. 24 University of Southampton Students, Union Notes to the Financial Statements Forthe Year Ended 31 July 2021 ii. TanBible fixed assets Group and Unlon Leasehold Improvements Equlpment Motor vehldes Total Cost At l August 2020 Additions Disposals 2.516.261 10.040 1.212,536 34.387 3.935 3,732,732 44,427 At 31 july 2021 2 526 301 1236 772 3 767 008 Depreclatlon At I Au8USt 2020 Charge for the year 2,178.623 135 359 1.070,174 3,092 787 3,251,889 155 177 At 31 July 2021 2 313 982 1089 205 Net book value At 31 July 2021 t31 July2020 12. Investments- Union only The Investment shown in the Union balance Sheet relates to £ICO share capital in the wholly owned subsidiary company, SUSU Social Enterprises Limited Icompany number.. 088371591, whose results are consolidated in these accounts. The subsidiary company was incorporateil to carry out the non-member trading of the Union. The company had turnover in the yeèr of £82,139 (2020.. £160,341), a profit of £45,133 f2020.- profit of £118.315). £118.315 12020.- £125.750} was gift aided to the Union. The company had net assets at the year*nd of £45,257 {2020.' net ossets £118.439J. 13. Stock- group and Union zozi 2020 Finished goods and goods for resale 25 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 14. Debtors Group Unlon 2021 2020 2021 2020 Trade debtor5 12.738 .109 6.104 46.324 20.373 25,099 4,646 71.579 69 2.636 18.109 6.104 46.324 3,217 25,099 4.646 71,579 Amount5 owed by clubs and socFeties Amounts due from University of Southampton Other debtors Prepayments and accrued income 161 15. Creditors: Amounts falling due within one year Group Unlon 2021 2020 2021 2020 Trade creditors Amount owed to University of Southampton Amount owed to club5 and societies Social security and other tames other creditor5 Accruals and deferred income 148.612 36.745 4.756 30,109 22.968 373 792 ,093 28,595 145,543 36,745 4,756 25.819 22.%8 361 58,890 28.595 24.405 35,154 411428 18,476 35.154 399877 26 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 16. Credltors: Amounts falling due after more than one year Group Unlon 2021 2020 2021 2020 Pension Scheme fundin£ deficit (note 191 401284 17. Statement of fund5 Consolidated - 2021 Brought Forward Incoming resources ReSoUr￿S Transfers Carried eMpen5es forward Unrestrl¢ted funds General funds 3 $94 831 3 593 S51 881230 Total unrestrirted lunds 879 950 3 594 831 3593 551 881230 Restrl¢ted funds Capital Grant RAG 45.753 124,8651 20.888 786 Halls Rvgbv Total restricted funds Total funds 27 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 17. Statement of funds (continued) Consolidoted- 2020 8rought forward Incoming resour¢es Resour￿$ Transfers Carrled lorward expenses Unrestricted funds General funds 774 115 S 181624 879 950 Total unrestricted funds 774 115 5 220 Elb5 181624 Restricted funds C3Pltal Grant RAG 76,067 130.3141 135,8991 188.6731 45.753 786 35.899 127.858 27.669 166.8541 Rugby Total restricted funds 110 195 178 757 17S 559 Total funds Union- 2021 Brought fotward Incoming resources Resources Transfers Carried expenses forward Unrestricted funds General funds Lll 3 631 C( 3 556 010 836 607 Total unrestricted funds 761611 3 556 010 836 607 Restrlrted funds Capital Grant RAG 45,7S3 124,8651 20.888 786 Rugby Total restricted funds 539 Total funds 28 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 17. Statement of funds (continued) Union - 2020 Brought forward Incoming resources ftesouices Transfers Carried forward expenses Unrestricted funds General fund5 5 186 014 S 139 598 761611 Total unrestricted funds 5 186 014 5 139 598 66 854 Restrlc¢ed funds Capital Grant RAG Halls Rugbv 76.(￿7 786 27.669 130.3141 13S.8991 188.6731 45.753 786 35,899 127.8S8 166,8S41 Total restrirted funds 110 195 178 757 175 559 Total funds Fund descriptions Restricted funds The trustees believe that grants receNed for specific purFxJses should be identified separately within the re5erve5. During the year the Union collected £nil12020.. £35,899). No cost was incurred to manage the fund and Union also donated £nil12020'. £35.899} to nominated external charities on behalf of RAG (Raise And Give). The University provides specific 8mounts for the Junior Common roorn IJCRI, subsequently renamed Halls Committee, to be expended on the welfare and benefit of Students in halls of residence. The Ha115 Grant will be incorporated into the overall Block Grant received from the University of Southampton as of I August 2020, and will therefore be unrestricted funds going forwards. The transfer of the remaining funds in year ended 31 July 2021 reflect thls change. Where third parties have helped to create assets for the Union. the value of thelr contribution to these assets is recorded a$ 3 capital grant fund. Each individual such contribution is amortised over the economic life of the funded asset by allocating depreciation tharges against this fund. During the year no grants were received and depreciation of £20,889 on under￿Ing assets was charged to this fund. 29 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 18. Analysis of net assets between funds 2021 Restrfrted funds Unre5tric￿d Funds Total fund5 Consolbdated Tangible fixed assets Net current assets 339,0SS 897,177 359.943 897,963 355 002 Long term liabilities Union Restr(rted lunds Unrestricted Fund5 Total Funds Tangible fixed assets Investments 330.054 359.942 100 Net current assets 786 852,455 8Sa,241 3SS 002 Long term liabilities 21 674 2020 Restrirted fvnds Unrestricted Funds Total Funds Consolidoted Tongiblefixed assets Net current (Y55etS Long term liobilifies 45.753 786 435.090 846.144 480.843 846.930 401284 Union Unrestricted Funds Totol Funds fvnds Tonyiblefixed asset5 Investments 45.753 435. 480.843 IL Net current G55ets 727.705 728,491 401284 Long term liobilities 30 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 19. Pension costs The Union has two separate pension arrangements- the Universities Superannuation Scheme IUSSI and the pension and assurance scheme for non-academic staff IPASNASI. uss The pension charge for the year includes £42,30412020- £75.2691 in relation to the USS. The USS comprises two part5, U5S Retirement Income Builder which is a defined benefit arrangement and U5S Investment 8uilder which is a defined contribution arrangement. As explained in the accounting policies. due to insufficient information being available to enable the Union to use defined benefit accounting for the scheme. in accordance with the provisions of FRS 102 the scheme is accounted for as if it were a defined contribution scheme. In the event of the withdrawal of any of the participating employers in US5. the amount of any pension funding shortfall (which cannot be othe￿iSe recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme. The 2018 valuation was the fifth valuation for USS under the scheme-specific funding regime introduced by the Pensions Art 2004, which requires schemes to adopt a statutory funding objective. which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme's technical provisions was £67.3 billion indication a shortfall of £3.6 billion and a funding ratio of 95%. Based on these valuations the actuary detemiined that the USS funding rates should increase as follows.. Employer Employee Totol l April 2019 to 30 September2019 19.5% 8.8% 28.3% l October 2019 to 30 September2021 From l October2021 21.1% 9.6% 30. 7% 21.4% 9.8% 31.2% A new deficit recovery plan was put in place as part of the 2018 valuation, which requires payment of 2% of salaiies over the period of i October 2019 to 30 September 2021 at which point the rate will increase to 6% until 31 March 2028. After the statement of financial position date. the 2020 actuarial valuation was completed with an effertive date of l October 2021. This state5 that from the l October 2021 deficit contribution5 will increase from 2% to 6% as planned but will rise again from l April 2022 to 6.3% for the length of the recovery plan until 31 March 2038. If a Benefit Change Oeed is not agreed by 28 February 2022, the total deficit contributions will change to 3% in October 2022, increasing by 3% every 6 months until October 2025 where deficit contributions will remain at 20% until 31 july 2032. This is ton5idered to be 3 non-adjusting post balance Sheet event and no adjustment has been made with respect to the 2020121 provision within the University of Southampton's financial statements a5 a result of the completion of the 2020 valuation. Further details on the Actuarial Valuations of the USS can be found on the USS website. 31 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 19. Pension costs (continued) PASNAS The Union contributes to a final salary defined benefit scheme for non-academic staff IPASNASI. The scheme is funded by contributions made in accordan￿ with the recommendations of the scheme's actuaries. Following a consultation process, in May 2018 Council ratified a decision to close the Scheme to new members as at 31 December 2018. All new eligible staff will be enrolled into a new defined contribution arr3n8ement from l January 2019 IUSRFI. The last formal triennial actuarial valuation of the scheme wa5 performed as at 31 july 2018 and indicated that the scheme'5 3SSÈts represented 85% of the technical provisions corresponding to a deficit of £38,508,(NJO. An estimate has been made for Guararhteed Minimum Pension IGMPI Equalisation and for the Mccloud judgement in the current valuation. The Mccloud judgement relates to the transitional protection offered to Some members of public sector final salary schemes when the schemes were reformed. The transitional protertion allowed those members who were within 10 years of normal pension age to remain in their final salary scheme instead of being moved to the new career average arrangement with its higher pension age. As some members would be better off in the new scheme rather than the old the Mccloud judgement requires that there is no reduction in berhefits accrued or are receiving if already retired. The 2018 valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 10 years. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These contribution5 applied with effect from l January 2020 and will be formally reviewed following completion of the next valuation due with an effective date of 31 July 2021. Surplu5e5 or deficits which arise at future valuations will also impact on the Union's future contribution commitment. In addition to the above contributions. the Union also pays its share of the Scheme's levy to the Pension Protection Fund. In accordance with FR5102. the net present value of the future contributions required over 10 years to clear the funding deficit is £355,00212020= £401,2841. In calculating this net present value, a discount rate of 1.80% representing the typical yield of high quality corporate bonds has then been applied. The total contribvtions paid into the scheme by the Union in respect of eligible employees for the year ended 31 July 2021 amounted to £85,842 12020: £151.9381. The movement in the deficit contrlbution liability in the year was £46.282 credit12020'. credit E23.1111. 20. Capital tommltments 2021 2020 At 31 July the Union had capital commitments as follows: Authorised and contraded 32 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 21 Related party transartlons University of Soirtharnpton The Unionls in receipt of a recurrent grant from the University of £2.254,239 [2020.. £2,210,132J together with other grants of £65,9CM) f2020.- £127,858J. Transactions throughout the year resulted in a trading balance as at 31 July 2021 of £21,573 (2020.- £23,949) owed to the University. SUSU Social Enterprlses Limited The Union had transactions with the SUSU Social Enterprises Limited a 100% owned subsidiary of £118,31512020.' £125.750) being gift aid payable, and as at 31 July 2021 the Union had a debtor balance of £nil (2020£nilJ owed by the subsidiary. 22. Flnanclal instruments Group 2021 2020 Financial assets measured at amortised cost Financial liabilities measured at amortised cost Financial liabilities measu￿d at fair value 1.371.371 1288,5821 1,187,585 1270,331 J Unlon 2021 2020 Financial assets measured at amortised cost Financial liabilities measured at amortised cost Financial liabilities measured at fair value 1.307.437 1274,1971 1.050,465 (257,576) Financial assets measured at amort15ed cost comprise trade debtors, amount owed by group undertakings, other debtors and cash equivalents. Financial liabilities measured at amortised c05t comprise trade creditors, other creditors and accrua15 excluding deferred income. Financial liabilities measured at fair value comprise the pension scheme funding deficit. 33 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 23. Operating lease commitments At 31 july 2021 the Union had future minimum lease payments under r¢on-cancellable operating leases as follows.. 2021 2020 Operating lease payments due within l year Operating lease payments due between 2 and 5 years 2.985 15,361 21 University of Southampton Students, Union Notes to the Financial Statements For the Year Ended 31 July 2021 25. Comparative Statement of Financial Artivltles Unrestricted Restricted Income Income Totol 2020 Income ond endowmentsArom.' Donotions.. University Gronts Other Grants - Grunt in kindfrom University other Troding ActivitAes.' Rentolincome - Spon50r5hip ond murketing income Investment income Choritoble octAVltiesfor students.- 8or5 2.210.132 2.210.132 178,424 322.OLXI 178.424 322.LX 10.941 123.892 6,564 10,941 123.892 6.564 650,383 175,494 74.175 1,226.764 42.530 39. 782 61,986 650.383 175.494 74.508 1.226.764 42,530 39.782 61,986 Cotering - Events 333 - Shops Lettings - StudentActivfftie5 - Studenr Seryices Other income Totol income 5 220 605 178 757 5 399 362 Expenditure o Churiroble Activltieslorstudents.- - Bor5 747.689 697.046 145.824 1.579,804 80,688 833.713 1.011.2 747,689 697,046 145,824 1.579.804 80.688 I,{￿,212 1,011.290 Catering - Events - Shops Lettings - Student Activities - Student Representotion - Student Service5 175,559 Totol expenditure LGL4 175559 5357183 Net income/lexpenditureJ beJore tmnsfrrs Tronsfers betweenfvnd5 Net movement infunds Fund bolonce5 brOughtfon￿rd 38.981 3,198 42,179 105,835 774 115 f65,656} 110 195 42,179 Fund bulunces corriedforward 35