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2022-07-31-accounts

University of Southampton Students’ Union

A company limited by guarantee

Trustees’ report and financial statements

31 July 2022

Company registration number 08034371
Charity registration number 1148683

University of Southampton Students’ Union Index to the Financial Statements

Contents Page
Trustees and advisers 1
Trustees’ Report 2 – 9
Statement of Trustees’ Responsibilities in respect of the Trustees’ annual report and the financial
statements
10
Independent auditor’s report to the members of University of Southampton Students’ Union 11 - 14
Consolidated statement of financial activities for the year ended 31 July 2022 15
Consolidated balance sheet 16
Union balance sheet 17
Consolidated cash flow statement for the year ended 31 July 2022 18
Notes to the financial statements 19- 49

University of Southampton Students’ Union Reference and Administration Information

Trustees and advisers Sabbatical Trustees

Benjamin Dolbear [President 2021-22] Appointed 1 July 2021, term concluded 30 June 2022 Matthew Smith Appointed 1 July 2021, term concluded 30 June 2022 Charlotte James Appointed 1 July 2021, term concluded 30 June 2022 Savanna Cutts Appointed 1 July 2021, term concluded 30 June 2022 Oliver Murray [President 2022-23] Appointed 1 July 2022 Zoe Chapple Appointed 1 July 2022 Emily Bastable Appointed 1 July 2022 Aycha Ates-Di Adamo Appointed 1 July 2022

Student Trustees

Fiona Sunderland Appointed 1 July 2022 Rebecca Hayward Appointed 1 July 2022 Laura McQuillan-Graham Appointed 1 July 2022 Curtis Parfitt-Ford Appointed 1 July 2022 Rishi-Nayan Varodaria Appointed 1 July 2020, term concluded 30 June 2022 James Williams Appointed 1 July 2020, term concluded 30 June 2022 Jessy Marin Appointed 1 July 2021, term concluded 30 June 2022 Corin Holloway Appointed 14 November 2021, term concluded 30 June 2022 External Trustees Jim Anderson Rebecca Self Resigned October 2022 Bhupinder Siran Appointed November 2021 Debs Nichols Resigned November 2022

Registered Office

University of Southampton Students’ Union (also called “SUSU”) Southampton Hampshire SO17 1BJ

Senior Leadership and Key Management Personnel

Sonia Cottrell Paul Davie Chrissie Heaver Jim Gardner Chris Small

Chief Executive (Deputy Chief Executive until October 2022) Chief Operating Officer (Company Secretary) Director of Marketing & Events Chief Executive (resigned April 2022) Director of Activities (resigned September 2021)

Auditors

Crowe U.K. LLP

Aquis House 49-51 Blagrave Street Reading RG1 1PL

Bankers

Solicitors

Lloyds Group Plc Warner Goodman LLP 1st Floor 3 Town Quay 8 College Place Southampton London Road SO14 2AQ Southampton SO15 2FF

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

The Board of Trustees, who are also Directors of the Union, present their annual report for the year ended 31 July 2022 under the Companies Act 2006 and the Charities Act 2011, together with the audited financial statements for that year. The format and content of the report and financial statements comply with the Companies Act 2006, the Charities Act 2011 and the Statement of Recommended Practice: ‘Accounting and Reporting by Charities’ SORP (FRS 102).

TRUSTEES’ REPORT

Structure, governance, and management

Charitable status

The Union is registered as a charity, and as a company limited by guarantee, in England and Wales.

Articles of Association

The Union was first established in the Charter of the University of Southampton which specifies that “there shall be a Union of Students of the University”. The Union is incorporated as a Company limited by guarantee and registered as a Charity in England and Wales. The Laws, which previously governed the Union, were replaced by the Memorandum and Articles of Association (‘the Articles’) on August 2012.

Method of appointment 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 trustees operate on a 1-year term of office from the 1st of July to the following 30th of June, unless re-elected. They may be re-elected for one additional 1-year term.

The Union is grateful for the contributions of our External Trustees, 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.

Organisational structure and decision making

The Annual General Meeting is the governing body of the Union and, subject to the Rules and Articles of the Union, has the power to make policy in the name of the Union. Union Senate and students via referendum also have the power to make policy in the name of the Union, subject to the Rules.

The Trustee Board is responsible for overseeing the management and administration of the Union. The Board has ultimate responsibility for the governance, budget and employment issues of the Union and the strategic direction of the Union, much of which is delegated to officers and staff. The Trustee Board also delegates relevant decisions to relevant subcommittees that cover the areas of Finance & Resources, Audit & Risk and Executive Performance & Reward. These subcommittees have clearly defined terms of reference.

Key management personnel remuneration policy

The Union has adopted a Remuneration Policy for Senior Executives, approved by the Board of Trustees. The Board recognises its responsibilities to protect the reputation of the Union, to reflect the values and ethos of the Union as a students’ union and registered charity, and therefore to ensure that the pay of its senior executives is fair, not excessive, and justifiable to the membership and wider stakeholders. The Board also adopts the principles of openness and transparency of senior executive pay, as recommended by the NCVO Inquiry into Charity Senior Executive Pay. The Board of Trustees therefore uses the following mechanisms to help meet these objectives and to support it in determining the pay of senior executives:

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

Employee consultation and involvement

Employees are consulted on issues of concern to them by means of a consultative committee (Staff Forum), regular staff meetings, and regular electronic updates from the senior leadership team. They have been kept informed on specific matters 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 interviews for all core staff leaving the organisation and has adopted a procedure of upward feedback for senior leadership and the Trustees.

The Union has long-established fair employment practices in the recruitment, selection, retention, and training of staff. We continually review our employment policies in conjunction with the overall staff team.

Relationship with the non-charitable subsidiary

The charity has a wholly owned non-charitable subsidiary, SUSU Social Enterprises Limited, which was incorporated to carry out the non-member trading activities of the Union. Further details are shown on the balance sheet and accompanying notes to the accounts. Net profits from this company are donated to the charity under Gift Aid, to leave no taxable profits in the trading company itself.

Relationship with University of Southampton

The relationship between the University of Southampton and the Union is established in the University Charter and detailed in the constitutions of both organisations. The Union President and University of Southampton President & Vice Chancellor annually re-sign the Relationship Agreement which outlines the importance of the relationship between the two organisations.

The Union receives both a block grant from the University based on the full-time equivalent number of students registered at the University and other funding on a project-by-project basis. All other transactions between the two parties are carried out on a commercial basis. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future.

STRATEGIC REPORT

Objectives and Activities

a) Charitable objectives

As stated in the Articles of Association, the Union’s objects are the advancement of education of students at the University of Southampton for the public benefit by:

  1. promoting the interests and welfare of members at the University of Southampton during their course of study and representing, supporting, and advising members.

  2. being the recognised representative channel between members and the University and any other relevant external bodies.

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

  4. promoting and facilitating students' involvement in their wider community.

  5. raising funds for other charitable organisations.

The objects are to be carried out in complete independence of all religious and political groups and in such a manner so as not to discriminate unreasonably between members.

The Trustees confirm that they have complied with the duty in Section 17 (5) of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit.

b) Strategies for achieving objectives

During the year we launched our new strategy, Ambition 25, following a transitional strategy being introducing during the peak COVID impact period of the previous year. We retained our three values of Stand Strong, Join Together, and Take Responsibility alongside our Vision of “Every student loves their time at Southampton.” The new strategy identified five missions to deliver our Vision, which are:

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

Our overall plans for the year are supported by individual plans for each Sabbatical Officer (approved by Union Senate), Plans for every staff team and specific strategies are developed by the senior leadership and approved by the Trustee Board for key areas of impact. We regular monitor the key performance indicators within the main Ambition 25 strategy and report these to staff, trustees and the University.

c) Activities for achieving objectives

Achievements and performance

Social Enterprise

The Shop saw consistent levels of trade, albeit lower than pre-COVID. We introduced new refrigeration units in the store to address long-term maintenance issues but also as par to our commitment to sustainability with the new units more energy efficient than before. Self-service tills were also introduced into the store for the first time, and this greatly helped with queues and the speed of service.

In the year we also relocated our merchandise outlet, previous called “The Shop on Top”, and renamed it the Locker. This re-opened in February 2022 in a new, higher profile location on our main concourse. We saw increased sales in the outlet following this, although struggled to obtain enough stock due to wider supply chain issues. We changed our clothing supplier to a local, sustainable company which aligned with our values and commitment to sustainability. The Locker has further development in the product range intended for 2022-23, including an online shop. The Locker also supported the University “super-graduation” where three years of graduation ceremonies took place over one week at the local St Mary’s Stadium. We ran a stall on-site which saw high levels of sales during the week.

Our food & beverage venues were in a state of transition during the year, with these offerings particularly impacted by COVID in prior years. The wave of COVID seen in late 2021 had a direct impact on our venues as students left campus earlier than normal for Christmas.

We revised our Plant Pot offer from hot and cold food to a salad operation during the year to trial a different delivery option with a lower cost basis. We remain committed to offering a vegan outlet in line with our values and will be reflecting on how to deliver this in a financially sustainable and prudent way for the next year.

We had intended for Below Deck, an offer introduced in the previous year, to be a regular venue for students serving food & drink. However, post-COVID we saw limited use of the space as the prior attraction of it having an outdoor space lost importance in the absence of any COVID restrictions and instead used it for ad hoc private bookings, and a student social study area during the day.

Both the Bridge and Stag’s venues saw challenges with staffing levels and stock availability. Towards the end of the year we introduced a new till system across all our venues, and are intending to launch a loyalty card and app-based ordering system linked to this during 2022-23. Levels of trade in both venues were steady, but ultimately below our budget expectations. Our flagship karaoke night in the Stag’s saw declining levels of engagement, and this was mirrored in the regular quiz event in the Bridge. We spent the final months of the year engaging with students to understand their wants

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

and needs from our outlets going forwards and this will underpin our thinking for the next year and likely lead to capital expenditure to deliver this.

Representation

Student representation remains a top priority for us as an organisation, with the impacts of COVID still a key issue for students. The move to online lectures and representing student feedback and views about these was an ongoing part of the student representation work for the year.

We held an All-Student Vote in January 2022 because of the University decision to hold exams in-person, contrary to the widespread views of students and whilst the omicron COVID variant was still impacting individuals. 7,368 students voted overwhelmingly in favour of exams being moved online. Whilst we were unsuccessful in lobbying the University to make this change, the process ultimately strengthened the relationship between ourselves and the University.

Additionally, we continued to run our programme of elections each term to elect a range of volunteer roles, both academic representatives and wider student experience and liberation roles, plus the important trustee and sabbatical positions. Overall, the elections held throughout the year received 407 nominations, and successfully elected to most available roles, including academic representatives. A total of 31,802 votes were cast by 9,785 individual students across all these elections. Our Spring elections remained the biggest single period of voting in the year, but all elections showed satisfactory levels of turnout. We also received 174 submissions through our ‘You Make Change’ system during the year, for a range of different issues affecting students.

Advice & Lettings

The Advice Centre team transitioned to providing an in-person service following COVID to support students now attending campus again. Our advisors worked on 1,967 cases over the course of the year, including 925 Academic, 476 Finance, 453 Housing and 113 miscellaneous cases. We also provided an improved service from the Advice Centre reception to quickly resolve issues, and this supported a further 444 Academic, 54 Finance, 264 Housing, and 96 miscellaneous issues. The support the team provided will have been instrumental for many students in their ability to continue with their degree programmes.

We continued to provide a Lettings service to our members. We maintained a mixture of online and physical viewings following COVID. We advertised over 70 properties within the year and saw high levels of interest in these. Viewings and lettings of properties increased from the previous year as anticipated following the COVID lockdowns. We continue to aim to provide quality housing to our members with no hidden or extra costs, and work with landlords to ensure properties meet our standards.

Activities

Over 9,000 students joined a club or society during the year, an increase of more than 50% on the previous year. Due to the lifting of COVID restrictions our groups were largely able to operate as normal and provide a range of opportunities and new experiences to our members.

The resuming of activity also saw us increase the grants awarded to groups which had declined in the previous year due to COVID. Grants awarded totalled £249,824 (2021: £114,271) which was more than double the amount previously awarded. We continued to see a high demand for grants throughout the year, reflecting the return to regular activity.

We also launched a new “Give It a Go” initiative, supported by funding from the University, to provide new opportunities to students to try activities and experiences, aimed at postgraduate and international students in particular who are underrepresented in club and society membership. Alongside this we introduced a new EDI Bursary for students from low socio-economic backgrounds to support them with joining sports clubs that previously may have been financially unaffordable for them.

We continued to offer over 400 different clubs and societies for our members to join, including over 90 competitive and over 60 intramural sports. The national British University College Sports (BUCS) league resumed competitions following a year without them due to COVID, and many of our groups competed across the country. We continued our winning streak in the annual Varsity competition versus the University of Portsmouth.

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

Our Raise and Give (RAG) fundraising team of volunteers continued to raise funds during the year through their own initiatives and via fundraising carried out by clubs and societies in the year. The totals raised will benefit a range of charities including the three core charities for the year of Yellow Door (local charity), Tommy’s (national charity) and Actionaid (international charity).

Due to ongoing changes in student behaviour, and considering the potential risks of COVID, we ran a limited events programme during the year. We were able to return to in-person activity during Freshers’ but split our annual Clubs & Societies Fair over 2 days to control attendance and manage risk from any potential COVID limitations. We held a low number of high-profile events including Halloween, Christmas, Graduation Ball and Summer Festival activity. Many of these events saw increased engagement from our international students which was a new trend compared to pre-COVID activity. We hope to increase our events programme over the next year, whilst also being mindful of new behaviours and expectations of students.

We continued to celebrate our annual Society and Volunteering Awards with the ceremony able to return to in-person activity, recognising the tremendous accomplishments of our volunteers. Over 185 nominations were received across 9 award categories. Our Academic Awards, celebrating both academic staff and academic representatives, received over 200 nominations across the five faculties of the University and was also able to be held in-person after 2 years of being held online.

Overall

We saw an increase in our National Student Survey (NSS) score to 60% (up from 50% in 2021), which we believe was linked to our representation activities, particularly the All-Student Vote about online exams which directly relates to the NSS question of “The Students’ Union effectively represents students’ academic interests.” This result meant that we ranked second in the Russell Group in terms of the NSS.

Challenges from COVID continued during the year, with the sudden occurrence of the omicron variant disrupting the Autumn term. New ways of working, and changes from student behaviour remain issues that we continue to adapt to organisationally.

Our relationship with the University has never been stronger, and thanks to their generous support of an additional £1m of funding we are well placed to deliver new activities for our members in the 2022-23 year. Our representation efforts saw high levels of engagement, and we spent the year listening to students about our social enterprise areas and what they expect from us.

Financial review

a) Grant making policies

The Union gives grants to many of its affiliated clubs and societies to help them to pursue their goals, in addition to providing indirect support through our staff and access to physical spaces. Grants are awarded against key pre-defined criteria and made each term. Grant funding increased from the previous year as result of COVID restrictions being lifted, and the Union awarded grants to our clubs & societies of £249,824 during the year. New for the year was the introduction of an Equity, Diversity & Inclusivity Grant of £4,704 to support students in joining clubs & societies.

b) Reserves policy

The reserves policy of the University of Southampton Students’ Union is to maintain a level of unrestricted cash funds, excluding those committed to or invested in tangible assets, which will enable the Union to maintain the day-to-day operations of the Union for a period of three months and can adjust, in a measured way, to any significant changes in resources. This target equates to approximately £600,000 of operating costs. The Union currently has free reserves, as defined by the Charities Commission, of £1,166,230 (2021: £521,287). This is distorted by the one-off receipt from the University of £1m and a one-off £0.25m payment to the PASNAS pension scheme within the year.

c) Principal funding

The University of Southampton provides the Union with an unrestricted block grant each year. For the year 2021-22 this amounted to £2,436,146 (2021: £2,332,253). The University did not provide any restricted grants in the year and contributions towards the cost of fixed asset purchases were £nil (2021: £nil).

d) Material investments policy

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

In deciding how and where to invest any surplus funds, it is the Union’s policy to take a risk averse stance, give due consideration to current Trustee Board directives and maximise returns on investments within the parameters set out therein. Surplus operating money will be held in interest-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 or institution. Deposits over £100,000 or deposits made for periods longer than 6 months need approval from Finance & Resources Committee. There will always be sufficient money held on call to meet the financial requirements of the Union for a period of one month.

Any requests for an overdraft or long-term loan facility from banks must be approved by the Trustee Board. There will be no investments in shares, gilts or bonds which are openly traded on the stock markets. Shares, gilts, or bonds may be held in companies with a direct connection to the aims of the Charity subject to confirmation of the ability of the invested entity to provide returns on the Union’s investments. No money will be deposited outside of the UK. The amounts of deposits are included within the Union’s management accounts.

e) COVID-19 impact

Whilst COVID abated during 2021-22, it still caused uncertainty and volatility for our operations. This was seen in student behaviour which was influenced by the omicron wave in late 2021 and early 2022 and effectively ended the Autumn 2021 term early and led to low student numbers present in January 2022. Organisationally, the financial impact this year was minimal as we were able to resume normal trading and had a confirmed grant from the University. We made limited use of the Government’s Coronavirus Job Retention Scheme (CJRS), also known as ‘furlough’, which ended in the first quarter of the financial period.

We continued to follow principles of social distancing, enhanced cleaning, and encouraging staff and students to respect each other during the year. This included use of lateral flow testing (before withdrawn nationally) at large-scale events, particularly during Freshers’, and continuing to assess attendance numbers and risks at this level of event. Ultimately, we feel that we delivered the balance between safety and student experience and did not observe any direct links between our larger activities and COVID cases. Feedback from students and the wider University was consistently positive about our approach during the year.

f) Principal risks and uncertainties and risk management

The Union has two sources of funding: the block grant from the University and commercial income from trading. We secured a new agreement with the University for a fixed block grant, not dependent on student numbers, to reduce the volatility in our income. The grant was also agreed for a 3-year period with agreed annual percentage increases.

Our trading areas did not return to their full pre-COVID potential, and we did see the impact of newer COVID variants and ongoing changes in student behaviour during the year. However, we were able to control our costs, and the experience has allowed us to better understand underlying costs and the measures available to us for managing these.

We continue to work on developing our risk management framework and have also been assessing our overall compliance with legislation and regulation beyond health & safety, to provide assurance to key stakeholders of our compliance with the law and best practice.

g) Overall performance

The Union’s gross income from all sources totalled £6,315,255 (2021: £3,594,831) against total expenditure of £5,588,886 (2021: £3,618,416). Revenues increased as activity resumed post-COVID. We also received a one-off grant from the University of £1m in addition to smaller grants for the Give It a Go and Safety Bus initiatives and support towards updating our facilities. We operated a broadly balanced budget to provide a wide range of student benefits and, as a result, created an overall surplus of £726,369 (2021: £23,585 deficit). The total of all Union reserves increased to £1,629,273 (2021: £902,904).

There are variances, both positive and negative, where activity has resumed following COVID and overall, the financial impacts of these were as expected. However, during the past 2 years we did review our staffing structures and change some of our offers. Our Catering offer was reduced both in scope and staffing, which is reflected in the finances for this area of activity.

The Trustees have agreed that the financial performance for the year 2021-22 was adequate.

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2022

Plans for future periods

The Ambition 25 strategy was launched during the year, and this will guide our activity through to 2025. There remains work to do on developing and implementing our underpinning strategic plans on Finance, People, Digital, Social Enterprise and Equality, Diversity & Inclusion (EDI).

Following the £1m additional funding from the University we will also be working on project plans to deliver works included within this. Areas of work include graduation (completed within 2021-22), student communities, sustainability, access to activities, and alumni.

We are continuing to adapt to changing student behaviours, and an increasingly changing world. The global economic situation and supply chain has affected everyone in 2022 and this disruption seems set to continue for the foreseeable future. We are anticipating challenges around costs, and particularly cost of living for our students. Our budget for 202223 included allowances for high utility costs, but also accepted lower profit margins for our social enterprise areas in recognition that as a Students’ Union we are here to support students, not profit from them.

We are expecting to progress investment in our facilities, an area which was neglected over the past 5 years. This will be led by student consultation and intended to lead to our providing a better service through our venues, outlets, and facilities to our members going forward.

External Affiliations

Under the Education Act 1994, the Union is required to report to its members, on an annual basis, all current external affiliations. As of 31 July 2022, the Union was affiliated to the organisations shown below, together with the cost of affiliation in the year ending 31 July 2022:

Salary Information

In accordance with our Remuneration Policy, we have provided the numbers of full-time staff and gender, grouped by salary ranges.

Male Female
£0 - £9,999 1 4
£10,000 - £19,999 3 19
£20,000 - £29,999 4 7
£30,000 - £39,999 1 3
£40,000 - £49,999 0 1
£50,000 - £59,999 1 0
£60,000 - £69,999 1 1

Fundraising Statement

The Union does not work with any external party acting on our behalf to carry out fundraising activity and does not make direct fundraising appeals to our members. We are committed to upholding the Fundraising Regulator codes of practice for any fundraising activity carried out by our members and supported by us. We have received no complaints about our fundraising activities.

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University of Southampton Students, Union Trustees, Report For the Year Ended 31 July 2022 Trustets. statement So far as each of the trustees and dirertors is aware, at the time the report Is approved.. There is no relewant audit information of which the companws auditors are unaware.. and Each trustee has taken all steps that they OVEhi io have taken as a trustee to rnake themselve5 aware of any relevant audit infornaiion and to e5tabli5h that the charitable company's auditors are aware of that information. Auditors Crowe U.K. LLP have expressed their wllingnes5 to continue in office as auditors and a motion proposing their reappointment will be svbmitted to ihe forthcoming Annual General Meetin8. The Trustees Report, under the Charities Act 2011 and the CompaniesAct 2(KJ6, was approved by the Board of Trustees on 08 December 2022 including apprown& in their capaoty as company dlrectors, the Report contalned therein and is signed a5 authorised on its behalf by= Oliver Murray Chair of Trustee Èoard 2022-23

University of Southampton Students’ Union Statement of Trustees’ Responsibilities For the Year Ended 31 July 2022

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

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. 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.

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Independent Auditor’s Report to the Members of University of Southampton Students’ Union

Opinion

We have audited the financial statements of University of Southampton Students’ Union for the year ended 31 July 2022 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group Cash Flow Statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNIVERSITY OF SOUTHAMPTON STUDENTS’ UNION (CONTINUED)

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNIVERSITY OF SOUTHAMPTON STUDENTS’ UNION (CONTINUED)

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement on page 10 the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the group and the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and the Charities Act 2011 together with the Charities SORP (FRS 102). 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 provisions of other laws and regulations 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 regulations we considered in this context were General Data Protecting Regulations, Health and Safety and Safeguarding of students.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

13

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 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 : 21 March 2023

14

University of Southampton Students’ Union Consolidated Statement of Financial Activities For the Year Ended 31 July 2022

Notes
Income and endowments from:
Donations:
- University Grants
- Other Grants
- Grant in kind from University
Other Trading Activities:
- Rental income
- Sponsorship and marketing income
Investment income
Charitable activities for students:
- Bars
- Catering
- Events
- Shops
- Lettings
- Student Activities
- Student Services
Other income
4
Total income
Expenditure on
Charitable Activities for students:
- Bars
- Catering
- Events
- Shops
- Lettings
- Student Activities
- Student Representation
- Student Services
Total expenditure
5-6
Net income/(expenditure) before transfers
Transfers between funds
Net movement in funds
Fund balances brought forward
Fund balances carried forward
17		 Unrestricted
Income
£
2,561,146
-
322,000
1,801
121,998
-
763,459
23,214
78,417
1,181,446
50,928
91,448
75,155
1,031,958
6,302,970
1,105,359
146,330
171,516
1,674,974
178,422
952,969
1,266,893
70,583
5,567,046
735,924
-
735,924
881,230
1,617,154		 Restricted
Income
£
-
-
-
-
-
12,285
-
-
12,285
-
-
-
-
-
21,840
-
-
21,840
(9,555)
-
(9,555)
21,674
12,119		 Total
2022
£
2,561,146
-
322,000
1,801
121,998
-
763,459
23,214
78,417
1,181,446
50,928
103,733
75,155
1,031,958
6,315,255
1,105,359
146,330
171,516
1,674,974
178,422
974,809
1,266,893
70,583
5,588,886
726,369
-
726,369
902,904
1,629,273		 Total
2021
£
2,332,253
-
322,000
2,477
57,552
408
204,028
4,206
2,216
323,880
27,149
60,534
9,276
248,852
3,594,831
442,259
374,306
3,604
765,743
96,158
641,758
1,257,762
36,826
3,618,416
(23,585)
-
(23,585)
926,489
902,904

All activities relate to continuing operations

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

The notes on pages 19 to 49 form part of these financial statements

15

University of Southampton Students, Union Consolidated Balance Sheet 31 July 2022 Notes 2022 2021 Flxed assets Tangible a55ets li Current assets Stocks Debtors 13 114.088 191.195 1943 157 65,321 161,529 1288 096 14 Cash at bank and in haThd 2.248,440 1,514,946 Credltors: Amounts falling dve within one year 15 Net ¢utrent assets 1476 122 Total assets Itss currtnt Ilabllltles I919￿7 Creditors: Amount5 falling due in more than one year 16 Total net assets char￿able Funds Restricted funds Unrestricted funds 17 12.119 21.674 General funds 17 1617 154 Total fvnds The surplus for the year in relation to the Union only was £680,277 f2021.- surplus £50,130). These financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 08 December 2022 Ollver Murrav Chair of Trustee Board 2022-23 The notes on pages 19 to 49 form part of these financial statements. IG

University of Southampton Students, Union Union Balance Sheet 31 July 2022 (Company Number.. 08034371) Notes 2022 2021 Fixed assets Tangible assets Investments li 443.685 100 359.942 12 Current assets Stocks 13 14 114.088 166.302 65,322 151.427 1234 264 Debtor5 Cash at bank and in hand 2.141.275 1.451.012 Creditor5: Amounts falling due within one year Is Net current a$5ets 853 240 Total assets less current liabilities 1829 092 1213 283 Credrtors: Amounts falling due in more than one year 16 Total net a5set5 Charltable Funds Restricted fund5 17 12,119 21.674 Unrestricted funds General funds 17 1 526 439 836 607 Total funds These financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 08 December 2022 Ollver Murray Chair of Trustee 803rd 2022-23 The notes on pages 19 to 49 fomi part of these financial statements. 17

University of Southampton Students’ Union Consolidated Cash Flow Statement

For the Year Ended 31 July 2022

Notes 2022 2021
£ £
Cash flows from operating activities
Net movement in funds 726,369 (23,585)
Depreciation 143,650 155,177
Loss/(profit) on the sale of Fixed Assets 11,587 10,151
Interest received - (408)
(Increase)/Decrease in stock (48,767) 71,996
(Increase) in debtors (29,666) 29,668
(Decrease)/increase in creditors 155,336 57,309
(Decrease) in pension liability (64,468) (46,283)
Net cash (used in)/provided by operating activities 894,041 254,025
Cash flows from investing activities
Interest receivable - 408
Purchase of tangible fixed assets (238,980) (44,427)
Net cash (used in) investing activities (238,980) (44,019)
Change in cash and cash equivalents in the year 655,061 210,006
Cash and cash equivalents at the beginning of the year 1,288,096 1,078,090
Total cash and cash equivalents at the end of the year £ 1,943,157 £ 1,288,096
2022 2021
£ £
Cash at bank and in hand £ 1,943,157 £ 1,288,096
Analysis of changes in net funds:
At 1 August Cash
At 31 July
2021 flow 2022
£ £ £
Cash 1,288,096 655,061
1,943,157

The notes on pages 19 to 49 form part of these financial statements

18

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

1. CHARITY INFORMATION

The principal activities is campaigning, representation, provision of social activities and, the organisation of sporting and recreational activities and opportunities. University of Southampton Students’ Union is an incorporated charity. (Charity registration no. 1148685, Company number: 08034371) domiciled in the UK. The registered office University of Southampton Students’ Union, Southampton, Hampshire, SO17 1BJ.

2. 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 (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

2.2 Basis of consolidation

The consolidated accounts include the trading activities, assets and liabilities of the group subsidiary company in accordance with the Charity SORP. Intra-group transactions and balances have been eliminated on consolidation.

As permitted by section 408 of the Companies 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 expectation 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 of rising costs 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 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 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 funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Union for particular purposes. The cost of raising and administering such funds are charged against the specific fund. 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 fund.

19

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

2 ACCOUNTING POLICIES (continued)

2.5 Income

All incoming resources are included in the Statement of Financial Activities when the Union is legally 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 performance model as permitted by the Charity SORP. Coronavirus Job Retention Scheme grant income is therefore recognised on a straight line basis over the furlough period for each relevant employee.

2.6 Expenditure

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 objects of the Union and include project management carried out at Headquarters. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.

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. Grants offered subject to conditions that have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

2.7 Tangible fixed assets and depreciation

All assets costing more than £1,000 and with an expected useful life of over three years are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, on a straight line basis over their expected useful lives at the following rates:

Leasehold improvements - 8-10 years
Equipment - 3-5 years
Motor vehicles - 5 years

Assets in the course of construction are not depreciated until they are brought into use. Annually the trustees review the value of the assets recorded by the Union. They are satisfied that no assets require provision for impairment.

2.8 Investments

Investments are stated at the lower of cost and net realisable value.

2.9 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.10 Stocks

Stocks are valued at the lower of the cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

20

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

2 ACCOUNTING POLICIES (continued)

2.11 Pensions

The Union operates two defined benefits pension schemes, Universities Superannuation Scheme (USS) and the Pension and Assurance Scheme for Non-Academic Staff (PASNAS). The schemes are both multiemployer schemes where it is not possible, in the normal 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 accounts 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 Activities represents contributions payable to the schemes in respect of the accounting period.

2.12 Financial instruments

Basic financial instruments include debtors and creditors. Debtors 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 equivalents

Cash is represented by cash in hand and deposits with 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 acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

4. Other income

Other income
Coronavirus Job Retention Scheme grant		 2022
£
1,027,532
4,426
1,031,958		 2021
£
2,100
246,752
248,852

21

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

5. Resources expended 2022

Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Student services
Total costs
2021
Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Student services
Total costs		 Staff
£
434,679
115,957
57,165
516,670
117,780
336,468
824,499
26,071
2,429,289
Staff
£
192,887
190,728
150
335,527
54,994
293,105
821,167
3,175
1,891,733		 Depreciation
£
31,934
10,928
2,342
39,650
3,514
26,002
29,280
-
143,650
Depreciation
£
32,378
27,095
-
24,024
3,402
29,155
39,123
-
155,177		 Other
costs
£
638,746
19,445
112,009
1,118,654
57,128
612,339
413,114
44,512
3,015,947
Other
costs
£
216,994
156,483
3,454
406,192
37,762
319,497
397,472
33,652
1,571,506		 Total
2022
£
1,105,359
146,330
171,516
1,674,974
178,422
974,809
1,266,893
70,583
5,588,886
Total
2021
£
442,259
374,306
3,604
765,743
96,158
641,757
1,257,762
36,827
3,618,416		 Total
2021
£
442,259
374,306
3,604
765,743
96,158
641,757
1,257,762
36,827

3,617,881
Total
2020
£
747,689
697,046
145,824
1,579,804
80,688
1,009,272
1,011,290
85,570

5,357,183

22

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

6. Support costs included in Note 4

2022

Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Total costs
021
Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Total costs		 Staff
£
173,921
-
31,622
300,409
47,433
189,732
395,276
1,138,393
Staff
£
60,583
106,625
-
159,938
24,233
109,049
278,680
739,108		 Premises
£
97,854
-
17,792
169,020
26,687
106,750
222,395
640,498
Premises
£
46,245
81,391
-
122,087
18,498
83,241
212,727
564,189		 Other
costs
£
65,503
-
11,909
113,141
17,864
71,457
148,869
428,743
Other
costs
£
33,582
59,104
-
88,656
13,433
60,447
154,477
409,699		 Marketing
£
3,248
-
591
5,609
886
3,543
7,382
21,259
Marketing
£
2,495
4,391
-
6,587
998
4,491
11,477
30,439		 Total
2022
£
340,526
-
61,914
588,179
92,870
371,482
773,922
2,228,893
Total
2021
£
142,905
251,511
-
377,268
57,162
257,228
657,361
1,743,435		 Total
2021
£
142,905
251,511
-
377,268
57,162
257,228
657,361

1,743,435
Total
2020
£
131,299
323,871
43,766
407,028
43,766
315,117
547,081

1,811,928

2021

Premises costs include £322,000 (2021: £322,000) notional rent ‘grant in kind’ charged by the University.

Included within support costs are governance costs of £33,535 (2021: £21,467).

23

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

7. Net movement in fund

Depreciation of owned tangible fixed assets
Loss on disposal of fixed assets
Audit of financial statements - parent company
- subsidiary company
Other remuneration to auditors - tax compliance
- other services
taff costs
Wages and salaries
Social security costs
Employer’s pension contributions (note 19)
Staff restructuring costs
Total costs
he average number of employees during the year was:
Core staff
Support staff		 2022
£
143,650
11,587
15,620
1,700
950
7,980
2022
£
1,916,710
124,170
388,410
-
2,429,290
2022
No
52
106
158		 2021
£
155,177
10,151
15,440
1,485
750
4,080
2021
£
1,573,743
110,263
167,085
40,641

1,891,732
2021
No
62
60
122

8. Staff costs

The average number of employees during the year was:

The number of higher paid employees who were paid salaries in excess of £60,000 were:

In the bands:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £89,999		 2022
No
2
-
-		 2021
No
-
1
-

The employees are in the University’s pension scheme at a cost of £13,824 (2021: £0).

The staff restructuring costs of £nil (2021: £40,641) include £nil ( 2021: £19,927) of non-statutory/noncontractual payments.

The aggregate employee benefits of key management personnel was £409,855 (2021: £402,381 ). This relates to the senior leadership team and remunerated trustees.

24

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

9. 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 1[st] of July and serve until the following 30[th] June and thus do not serve throughout the financial year.

Number of
Individual
trustees
remuneration
1 August 2021 – 31 July 2022
1
23,176
1 August 2021 – 31 July 2022
1
22,876
1 August 2021 – 31 July 2022
2
23,316
1 August 2021 – 31 July 2022
2
2,412
1 August 2021 – 31 July 2022
2
2,462		 Total
remuneration
23,176
22,876
46,632
4,824
4,925
102,433

The total trustee remuneration for the year ended 31 July 2022 was £102,433 (2021: £80,955)

During the year retirement benefits were accruing to 4 trustees (2021: 5) in respect of a defined contribution pension scheme. No trustee received any benefits in kind during the year (2021: none).

During the year 5 trustees received reimbursement of travel expenses totalling £231 (2021:1 trustee, £67).

10. Corporation and capital gain 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.

25

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

11. Tangible fixed assets Group and Union

Group and Union
Cost
At 1 August 2021
Additions
Disposals
At 31 July 2022
Depreciation
At 1 August 2021
Adjustment on disposal
Charge for the year
At 31 July 2022
Net book value
At 31 July 2022
At 31 July 2021		 Leasehold
Improvements
£
2,526,301
95,616
(35,380)
2,586,537
2,313,982
(26,128)
97,138
2,384,992
201,545
212,319		 Assets under
Construction
£
-
5,000
-
5,000
-
-
-
-
5,000
-		 Equipment
£
1,236,772
138,364
(5,720)
1,369,416
1,089,205
(3,385)
46,456
1,132,276
237,140
147,567		 Motor
vehicles
£
3,935
-
-
3,935
3,879
-
56
3,935
-
56		 Total
£
3,767,008
238,980
(41,100)

3,964,888
3,407,066
(29,513)
143,650
3,521,203
443,685
359,942

12. Investments – Union only

The investment shown in the Union balance sheet relates to £100 share capital in the wholly owned subsidiary company, SUSU Social Enterprises Limited (company number: 08837159), whose results are consolidated in these accounts. The subsidiary company was incorporated to carry out the non-member trading of the Union. The company had turnover in the year of £172,726 (2021: £82,139) , a profit of £46,092 (2021: profit of £45,133). £42,598 (2021: £118,315) was gift aided to the Union. The company had net assets at the year-end of £90,715 (2021: net assets £45,257) .

13. Stock – group and Union

Finished goods and goods for resale 2022
£
114,088		 2021
£
65,322

26

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

14. Debtors

Trade debtors
Amounts owed by clubs and societies
Amounts due from University of Southampton
Other debtors
Prepayments and accrued income		 Group
2022
2021
£
£
32,616
12,738
11,540
18,109
25,524
6,104
42,724
46,324
78,791
78,254
191,195
161,529		 Union
2022
2021
£
£
7,723
2,636
11,540
18,109
25,524
6,104
42,724
46,324
78,791
78,254
166,302
151,427		 Union
2022
2021
£
£
7,723
2,636
11,540
18,109
25,524
6,104
42,724
46,324
78,791
78,254
166,302
151,427

151,427

15. Creditors: Amounts falling due within one year

Trade creditors
Amount owed to University of Southampton
Amount owed to clubs and societies
Social security and other taxes
Other creditors
Accruals and deferred income		 Group
2022
2021
£
£
207,920
148,612
195,991
36,745
98,872
4,756
32,468
30,109
33,781
22,968
203,286
373,792
772,318
616,982		 Union
2022
2021
£
£
207,042
145,543
195,991
36,745
98,872
4,756
22,629
25,819
33,781
22,968
197,653
361,941
755,968
597,772

27

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

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

Pension scheme funding deficit (note 19)
tatement of funds
onsolidated - 2022
Brought
Forward
£
Unrestricted funds
General funds
881,230
Total unrestricted funds
881,230
Restricted funds
Capital Grant
20,888
RAG
786
Total restricted funds
21,674
Total funds
902,904		 Group
2022
2021
£
£
290,534
355,002
290,534
355,002
Incoming
Resources
resources
expenses
£
£
6,302,970
(5,567,046)
6,302,970
(5,567,046)
-
(13,649)
12,285
(8,191)
12,285
(21,840)
6,315,255
(5,588,886)		 Union
2022
2021
£
£
290,534
355,002
290,534
355,002
Transfers
Carried
forward
£
£
-
1,617,154
-
1,617,154
-
7,239
-
4,880
-
12,119
-
1,629,273		 Union
2022
2021
£
£
290,534
355,002
290,534
355,002
Transfers
Carried
forward
£
£
-
1,617,154
-
1,617,154
-
7,239
-
4,880
-
12,119
-
1,629,273

355,002
Carried
forward
£
1,617,154
1,617,154
7,239
4,880
12,119
1,629,273

17. Statement of funds

Consolidated - 2022

28

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

17. Statement of funds (continued)

Consolidated - 2021

Unrestricted funds
General funds
Total unrestricted funds
Restricted funds
Capital Grant
RAG
Total restricted funds
Total funds
nion - 2022
Unrestricted funds
General funds
Total unrestricted funds
Restricted funds
Capital Grant
RAG
Total restricted funds
Total funds		 Brought
Forward
£
879,950
879,950
45,753
786
46,539
926,489
Brought
forward
£
836,607
836,607
20,888
786
21,674
858,281		 Incoming
resources
£
3,594,831
3,594,831
-
-
-
3,594,831
Incoming
resources
£
6,174,841
6,174,841
-
12,285
12,285
6,187,126		 Resources
expenses
£
(3,593,551)
(3,593,551)
(24,865)
-
(24,865)
(3,618,416)
Resources
expenses
£
(5,485,009)
(5,485,009)
(13,649)
(8,191)
(21,840)
(5,506,849)		 Transfers
£
-
-
-
-
-
-
Transfers
£
-
-
-
-
-
-		 Carried
forward
£
881,230

881,230

20,888
786
21,674

902,904
Carried
forward
£
1,526,439

1,526,439

7,239
4,880

12,119

1,538,558

Union - 2022

29

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

17. Statement of funds (continued)

Union - 2021

Unrestricted funds
General funds
Total unrestricted funds
Restricted funds
Capital Grant
RAG
Total restricted funds
Total funds		 Brought
forward
£
761,611
761,611
45,753
786
46,539
808,150		 Incoming
resources
£
3,631,006
3,631,006
-
-
-
3,631,006		 Resources
expenses
£
(3,556,010)
(3,556,010)
(24,865)
-
(24,865)
(3,580,875)		 Transfers
£
-
-
-
-
-
-		 Carried
forward
£
836,607

836,607

20,888
786
21,674

858,281

Fund descriptions

Restricted funds

The trustees believe that grants received for specific purposes should be identified separately within the reserves.

During the year the Union collected £12,285 (2021: £nil). No cost was incurred to manage the fund and Union also donated £8,191 (2021: £nil) to nominated external charities on behalf of RAG (Raise And Give).

Where third parties have helped to create assets for the Union, the value of their contribution to these assets is recorded as a capital grant fund. Each individual such contribution is amortised over the economic life of the funded asset by allocating depreciation charges against this fund. During the year no grants were received and depreciation of £13,649 on underlying assets was charged to this fund.

30

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

18. Analysis of net assets between funds

2022
Consolidated
Tangible fixed assets
Net current assets
Long term liabilities
Union
Tangible fixed assets
Investments
Net current assets
Long term liabilities
2021
Consolidated
Tangible fixed assets
Net current assets
Long term liabilities
Union
Tangible fixed assets
Investments
Net current assets
Long term liabilities		 Restricted
funds
£
7,239
4,880
-
12,119
Restricted
funds
£
7,239
-
4,880
-
12,119
Restricted
funds
£
20,888
786
-
21,674
Restricted
funds
£
20,888
-
786
-
21,674		 Unrestricted
Funds
£
436,446
1,471,242
(290,534)
1,617,154
Unrestricted
Funds
£
436,446
100
1,380,427
(290,534)
1,526,439
Unrestricted
Funds
£
339,055
897,177
(355,002)
881,230
Unrestricted
Funds
£
339,055
100
852,455
(355,002)
836,608		 Total
funds
£
443,685
1,476,122
(290,534)
1,629,273
Total
Funds
£
443,685
100
1,385,307
(290,534)
1,538,558
Total
Funds
£
359,943
897,963
(355,002)
902,904
Total
Funds
£
359,943
100
853,241
(355,002)
858,282

31

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2020

19. Pension Schemes

The Union has two separate pension arrangements; the Universities Superannuation Scheme (USS) and the pension and assurance scheme for non-academic staff (PASNAS).

USS

The pension charge for the year includes £16,285 (2021 - £42,304) in relation to the USS.

The USS comprises two parts, USS Retirement Income Builder which is a defined benefit arrangement and USS Investment Builder 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 USS, the amount of any pension funding shortfall (which cannot be otherwise 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 2020 valuation was the sixth valuation for USS under the scheme-specific funding regime introduced by the Pensions Act 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 £66.5 billion and the value of the scheme's technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

Based on these valuations the actuary determined that the USS funding rates should increase as follows:

Employer Employee Total
1 October 2021 to 31 March 2022 21.4% 9.8% 31.2%
1 April 2022 to 31 March 2024 21.6% 9.8% 31.4%
From 1 April 2024 onwards 21.4% 9.8% 31.2%

A new deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.3% of salaries until the end of the recovery plan on 30 April 2038.

Further details on the Actuarial Valuations of the USS can be found on the USS website.

32

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

19. Pension costs (continued)

PASNAS

The Union contributes to a final salary defined benefit scheme for non-academic staff (PASNAS). The scheme is funded by contributions made in accordance 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 arrangement from 1 January 2019 (USRF).

The last formal triennial actuarial valuation of the scheme was performed as at 31 July 2018 and indicated that the scheme’s assets represented 85% of the technical provisions corresponding to a deficit of £38,508,000. An estimate has been made for Guaranteed Minimum Pension (GMP) 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 protection 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 benefits 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 contributions applied with effect from 1 January 2020 and will be formally reviewed following completion of the next valuation due with an effective date of 31 July 2021. Surpluses or deficits which arise at future valuations will also impact on the Union’s future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension Protection Fund.

In accordance with FRS102, the net present value of the future contributions required over 10 years to clear the funding deficit is £290,534 (2021: £355,002). In calculating this net present value, a discount rate of 3.70% representing the typical yield of high-quality corporate bonds has then been applied.

The total contributions paid into the scheme by the Union in respect of eligible employees for the year ended 31 July 2022 amounted to £66,473 (2021: £85,842). The movement in the deficit contribution liability in the year was £64,468 credit (2021: credit £46,282).

20. Capital commitments

At 31 July the Union had capital commitments as follows:
Authorised and contracted		 2022
£
-		 2021
£
-

33

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

21 Related party transactions

University of Southampton

The Union is in receipt of a recurrent grant from the University of £ 2,436,146 (2021: £2,254,239) together with other grants of £1,049,977 (2021: £65,900). Transactions throughout the year resulted in a trading balance as at 31 July 2022 of £158,259 (2021: £21,573) owed to the University.

SUSU Social Enterprises Limited

The Union had transactions with the SUSU Social Enterprises Limited a 100% owned subsidiary of £44,598 (2021: £118,315) being gift aid payable, and as at 31 July 2022 the Union had a debtor balance of £nil (2021 £nil) owed by the subsidiary.

22. Financial instruments

Group
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value
Union
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value		 2022
£
2,055,561
(686,902)
(290,534)
2022
£
1,948,396
(680,391)
(290,534)		 2021
£
1,371,371
(288,582)
(355,002)
2021
£
1,307,437
(274,197)
(355,002)

Financial assets measured at amortised cost comprise trade debtors, amount owed by group undertakings, other debtors and cash equivalents.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals excluding deferred income.

Financial liabilities measured at fair value comprise the pension scheme funding deficit.

34

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

23. Operating lease commitments

At 31 July 2022 the Union had future minimum lease payments under non-cancellable operating leases as follows:

eases as follows:
Operating lease payments due within 1 year
Operating lease payments due between 2 and 5 years		 2022
£
9,679
9,611
19,290		 2021
£
2,985
4,229
7,214

35

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2022

Notes
Income and endowments from:
Donations:
- University Grants
- Other Grants
- Grant in kind from University
Other Trading Activities:
- Rental income
- Sponsorship and marketing income
Investment income
Charitable activities for students:
- Bars
- Catering
- Events
- Shops
- Lettings
- Student Activities
- Student Services
Other income
4
Total income
Expenditure on
Charitable Activities for students:
- Bars
- Catering
- Events
- Shops
- Lettings
- Student Activities
- Student Representation
- Student Services
Total expenditure
5-6
Net income/(expenditure) before transfers
Transfers between funds
Net movement in funds
Fund balances brought forward
Fund balances carried forward
17		 Unrestricted
Income
£
2,332,253
-
322,000
2,477
57,552
408
204,028
4,206
2,216
323,880
27,149
60,534
9,276
248,852
3,594,831
442,259
374,306
3,604
765,743
96,158
616,893
1,257,762
36,826
3,593,551
1,280
-
1,280
879,950
881,230		 Restricted
Income
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24,865
-
-
24,865
(24,865)
-
(24,865)
46,539
21,674		 Total
2021
£
2,332,253
-
322,000
2,477
57,552
408
204,028
4,206
2,216
323,880
27,149
60,534
9,276
248,852
3,594,831
442,259
374,306
3,604
765,743
96,158
641,758
1,257,762
36,826
3,618,416
(23,585)
-
(23,585)
926,489
902,904

36