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2023-07-31-accounts

University of Southampton Students’ Union

A company limited by guarantee

Trustees’ report and financial statements

31 July 2023

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 – 8
Statement of Trustees’ Responsibilities in respect of the Trustees’ annual report and the financial
statements
9
Independent auditor’s report to the members of University of Southampton Students’ Union 10 - 14
Consolidated statement of financial activities for the year ended 31 July 2023 15
Consolidated balance sheet 16
Union balance sheet 17
Consolidated cash flow statement for the year ended 31 July 2023 18
Notes to the financial statements 19- 36

University of Southampton Students’ Union Reference and Administration Information

Trustees and advisers Sabbatical Trustees

Oliver Murray [President 2022-23] Zoe Chapple Aycha Ates-Di Adamo Emily Bastable Ed Brooker [President 2023-24] Amy Moir Marina Stasi Rebecca Would

Appointed 1 July 2022, term concluded 30 June 2022 Appointed 1 July 2022, term concluded 30 June 2022 Appointed 1 July 2022, term concluded 30 June 2022 Appointed 1 July 2022, student trustee from 01 July 2023 Appointed 1 July 2023 Appointed 1 July 2023 Appointed 1 July 2023 Appointed 1 July 2023

Student Trustees

Rebecca Hayward Appointed 1 July 2022, term concluded 30 June 2023 Laura McQuillan-Graham Appointed 1 July 2022, term concluded 30 June 2023 Curtis Parfitt-Ford Appointed 1 July 2022, term concluded 30 June 2023 Fiona Sunderland Appointed 1 July 2022 Wilson Odek Appointed 1 July 2023 Alice Robertson Appointed 1 July 2023 External Trustees Jim Anderson Bhupinder Siran Rebecca Self Resigned October 2022 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 Chief Executive (Deputy Chief Executive until October 2022) Paul Davie Chief Operating Officer (Company Secretary) Chrissie Heaver Director of Marketing & Events Kirsten Wythe Director of Membership Services (from April 2023)

Auditors

Bankers

Solicitors

Crowe U.K. LLP Lloyds Group Plc Warner Goodman LLP Aquis House 1st Floor 3 Town Quay 8 College Place 49-51 Blagrave Street Southampton London Road Reading RG1 1PL SO14 2AQ Southampton SO15 2FF

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2023

The Board of Trustees, who are also Directors of the Union, present their annual report for the year ended 31 July 2023 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

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

Method of appointment of Trustees

The management of SUSU 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 SUSU 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.

SUSU 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 usually be re-confirmed for one additional 3-year term only.

Organisational structure and decision making

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

The Trustee Board is responsible for overseeing the management and administration of SUSU. The Board has ultimate responsibility for the governance, budget and employment issues of SUSU and the strategic direction of SUSU, 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

SUSU has adopted a Remuneration Policy for Senior Executives, approved by the Board of Trustees. The Board recognises its responsibilities to protect the reputation of SUSU, to reflect the values and ethos of SUSU 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 2023

Employee consultation and involvement

Employees are consulted on issues of concern to them by means of a consultative committee (Staff Forum), regular team meetings, and regular updates, both by email and in person from the senior leadership team. Staff can submit questions to the senior leadership team, including anonymously, at any point. SUSU runs a staff survey in January each year to understand staff needs and concerns and develops an annual action plan based on this. SUSU also offers exit interviews for all core staff leaving the organisation and has adopted a procedure of 360-degree feedback for senior leadership.

SUSU has long-established fair employment practices in the recruitment, selection, retention, and training of staff. SUSU continually reviews employment policies in consultation with the staff team through Staff Forum.

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 SUSU. 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 SUSU is established in the University Charter and detailed in the constitutions of both organisations. The SUSU 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.

SUSU receives a block grant from the University, which is regularly reviewed and renegotiated, as well as some additional 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, SUSU’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

We continued to deliver our strategy, Ambition 25, together with our three values of Stand Strong, Join Together, and Take Responsibility alongside our Vision of “Every student loves their time at Southampton.” The 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 2023

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

The identified missions cover our offers, services, and representation for our members across the areas of Social Enterprise, Representation, Advice & Lettings and Activities as well as Facilities, Finance and People.

Achievements and performance

Social Enterprise

The Shop continued to trade strongly in the year and was fully refurbished during the Easter 2023 break. The refurbishment added new ranges of products following student demand, such as slushies, doughnuts, and ice cream. It also expanded the chilled items capacity to support the busy lunch time trade. We installed a new walk-in freezer, replacing old and energy inefficient integrated freezers as part of our ongoing sustainability work. In the year the Shop had 628,500 transactions and sold 38,161 sausage rolls. We continued our partnership with “Too Good To Go” to reduce food waste, and 593 bags were collected through this scheme.

Our merchandise store, the Locker, saw strong demand during the year. 4,200 teddy bears were sold, along with 1,700 hoodies. Overall, the Locker served 13,500 students in the year. We continued our partnership with Teemill, a local supplier, to offer a sustainable and recyclable range of clothing.

Our Plant Pot vegan café offer continued to develop during the year, with the re-introduction of a hot food range following student feedback. The seitan flatbread was the biggest seller with 676 sold in the year, and seitan made on site by the team. Our vegan cookies were also in high demand with 620 sold. Similar to the Shop, the Plant Pot used the “Too Good To Go” scheme and provided 161 bags through this.

We refurbished our Stag’s pub venue during Summer 2022 following student feedback about the space. The aim was to make a more inclusive and accessible space and update increasingly tired facilities. We introduced a new games area as part of this and offered free pool and console games throughout the year with over 3,000 games of pool played. 1,500 songs were sung at our flagship Karaoke night. To aid with cost of living we introduced the Stag’s lager, the pricing of which we kept as low as possible for students. 8,913 pints of this were sold in the year.

The Bridge café bar refined its food menu during the year, launching the Bridge burger to great success with 1,676 sold in the year. 13,885 barista coffees were made, along with selling 1,833 of the ever-popular ham & cheese panini. Our regular Monday interactive Quiz & Curry saw £3,750 in prize money won by contestants during the year.

Sustainability

Within the year we appointed a new Head of Sustainability to help progress our commitment to the joint Sustainability Strategic Plan with the University. A key project delivered in the year was joining the University’s Environmental Management System (EMS) and following an external audit in July 2023, SUSU received the ISO 14001:2015 certification and the EcoCampus Platinum award. The EMS supports SUSU to minimise its environmental impacts, comply with environmental legislation, and continually improve environmental performance.

Other initiatives launched in the year include reconfiguring the waste bins in our buildings to separate waste streams into recyclable, food, and general waste and refreshing signage to help building users correctly segregate their waste.

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2023

Representation

Student representation remains a key priority for us as an organisation and is our fundamental reason for existing.

We held an All-Student Vote in January 2023 relating to the planned industrial action by the University & College Union (UCU). Whilst 1,003 students voted, turnout was not quorate, and we therefore took no position on the industrial action. We continued to support students with the impact of this throughout the year, including lobbying the university on concerns and issues.

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 successfully elected 441 representation leaders and 349 student representatives. A total of 23,386 votes were cast by 5,591 individual students across all these elections. Our Spring elections remained the biggest single period of voting in the year, but all elections showed consistent levels of turnout. We also received 114 submissions through our ‘You Make Change’ system during the year, for a range of different issues affecting students.

Advice & Lettings

Our advisors worked on 2,999 cases over the course of the year, including 1,887 Academic, 587 Finance, 455 Housing and 496 appeals cases. The team supported 2,798 students overall. 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 advertised over 70 properties within the year and saw high levels of interest in these. 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 & Events

Approximately 9,000 students joined a club or society during the year, which was consistent with the previous year despite increasing costs affecting the student purse. A total of 31,161 memberships were subscribed to amongst these students.

The resuming of activity also saw us increase the grants awarded to groups in recognition of a background of rising costs. Grants awarded totalled £353,531 (2022: £249,824), an increase of over £100,000. We continued to see a high demand for grants throughout the year, reflecting the return to regular activity.

We also continued with our “Give It a Go” initiative, launched in 2022, 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. Over 400 students participated in activity during the year. Alongside this we continued to provide an 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 offered 366 different clubs and societies for our members to join, including 77 competitive and 49 intramural sports. The national British University College Sports (BUCS) league continued activity, and many of our groups competed across the country. We ended the year 26[th] in BUCS overall rankings. We continued our winning streak in the annual Varsity competition versus the University of Portsmouth.

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. A total of £189,015 was raised by RAG.

We ran 391 events during the year and sold 14,708 tickets through our box office. Events included a full programme of Freshers’ activity for the start of the year, along with Halloween and Christmas club nights. The year ended with our annual Graduation Ball with over 1,900 students attending to celebrate the end of their university studies.

We continued to celebrate our annual Society and Volunteering Awards, recognising the tremendous accomplishments of our volunteers. Over 150 nominations were received across the award categories. Our Academic Awards, celebrating both academic staff and academic representatives, received over 250 nominations across the five faculties of the University. Our AU Ball received over 130 nominations to celebrate the sporting achievements of individuals and clubs during the year.

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2023

Overall

We saw continued engagement with students on a range of issues during the year, particularly against the backdrop of the impact of cost of living. We introduced new schemes to support students with a food bank scheme, plus keeping our prices in our outlets low to provide the best value food & drink possible.

Our relationship with the University has never been stronger, and thanks to their continued block grant funding support we are well placed to deliver new activities for our members in the 2023-24 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, which led to significant investments in our bars and retail areas to positive result.

Financial review

a) Grant making policies

SUSU awards 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 a result of COVID restrictions being lifted, and SUSU awarded grants to our clubs & societies of £353,531 (2022: £249,824) during the year. We continued to provide the Equity, Diversity & Inclusivity Grant launched in the previous year, and awarded £1,626 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 SUSU to maintain the day-to-day operations of SUSU for a period of three months and can adjust, in a measured way, to any significant changes in resources. This target equates to the range of £400,000 – £800,000 of operating costs. SUSU currently has free reserves, as defined by the Charities Commission, of £789,770 (2022: £1,166,230).

c) Principal funding

The University of Southampton provides SUSU with an unrestricted block grant each year. For the year 2022-23 this amounted to £2,887,320 (2022: £2,436,146). The University did not provide any restricted grants in the year and contributions towards the cost of fixed asset purchases were £nil (2022: £nil).

d) Material investments policy

In deciding how and where to invest any surplus funds, it is SUSU’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 SUSU 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 SUSU’s investments. No money will be deposited outside of the UK. The amounts of deposits are included within the SUSU’s management accounts.

e) Principal risks and uncertainties and risk management

SUSU 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, ending in 2023, with agreed annual percentage increases. In 2024 we will be seeking a new arrangement with the University.

Our trading areas continued to return to their full pre-COVID potential, but we did see the impact of ongoing changes in student behaviour during the year due to COVID as well as the impact of the cost-of-living crisis on our students. However,

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2023

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.

f) Overall performance

SUSU’s gross income from all sources totalled £6,847,493 (2022: £6,315,255) against total expenditure of £7,143,088 (2022: £5,588,886). Revenues increased as activity resumed post-COVID resulting in improved trading performance. We operated a broadly balanced budget to provide a wide range of student benefits excluding one-off statutory movements in our pensions liabilities (£255,000) and, as a result, created an overall deficit of £295,595 (2022: £726,369 surplus). Expenditure also took place in the year relating to the £1m of income received in the prior year which led to the large surplus in 2022. The total of all SUSU reserves decreased to £1,333,678 (2022: £1,629,273) due to expenditure on fixed assets and the pensions movement.

There are variances, both positive and negative, where activity has continued to be restored to post-COVID levels and overall, the financial impacts of these were as expected.

The Trustees have agreed that the financial performance for the year 2022-23 was adequate.

Plans for future periods

The Ambition 25 strategy continues to guide our activity, although work will commence in 2024 on reviewing it and planning for its successor strategy. There remains work to do on developing and implementing our underpinning strategic plans on Equality, Diversity & Inclusion (EDI) and progressing our joint commitment with the University about sustainability.

We are continuing to adapt to changing student behaviours, and an increasingly changing world. The global economic situation and supply chain affected everyone in 2023 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.

We are expecting to progress investment in our facilities by the University for the long-term and intend to continue to invest in new technology that is more energy efficient and supports our sustainability plans and commitments.

External Affiliations

Under the Education Act 1994, SUSU is required to report to its members, on an annual basis, all current external affiliations. As of 31 July 2023, SUSU was affiliated to the organisations shown below, together with the cost of affiliation in the year ending 31 July 2023:

Advice UK £366 • British Universities and Colleges Sports (BUCS) £24,150 • National Association of Student Money Advisors (NASMA) £490

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University of Southampton Students’ Union Trustees’ Report For the Year Ended 31 July 2023

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
£10,000 - £19,999 3 12
£20,000 - £29,999 12 24
£30,000 - £39,999 5 8
£40,000 - £49,999 1 2
£50,000 - £59,999 0 1
£60,000 - £69,999 1 0
£70,000 - £79,999 0 0
£80,000 - £89,999 0 1

Fundraising Statement

SUSU 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.

Trustees’ statement

So far as each of the trustees and directors is aware, at the time the report is approved:

Auditors

Crowe U.K. LLP have expressed their willingness to continue in office as auditors and a motion proposing their reappointment will be submitted to the forthcoming Annual General Meeting.

The Trustees Report, under the Charities Act 2011 and the Companies Act 2006, was approved by the Board of Trustees on 0 8 April 202 4 including approving, in their capacity as company directors, the Report contained therein and is signed as authorised on its behalf by:

ef

Edward Brooker

Chair of Trustee Board 2023-24

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University of Southampton Students’ Union Statement of Trustees’ Responsibilities For the Year Ended 31 July 2023

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 2023 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.

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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.

Janette Joyce

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

Reading

Dated : 12 April 2024

14

University of Southampton Students’ Union Consolidated Statement of Financial Activities For the Year Ended 31 July 2023

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
£
2,887,320
-
665,000
6,709
171,055
-
758,896
44,725
109,107
2,034,841
36,547
55,857
17,818
16,762
6,804,637
1,165,479
250,860
213,215
2,502,136
261,562
1,197,814
1,433,478
67,576
7,092,120
(287,483)
-
(287,483)
1,617,154
1,329,671		 Restricted
Income
£
-
-
-
-
-
-
-
-
-
-
42,856
-
-
42,856
-
-
-
-
-
50,968
-
-
50,968
(8,112)
-
(8,112)
12,119
4,007		 Total
2023
£
2,887,320
-
665,000
6,709
171,055
758,896
44,725
109,107
2,034,841
36,547
98,713
17,818
16,762
6,847,493
1,165,479
250,860
213,215
2,502,136
261,562
1,248,782
1,433,478
67,576
7,143,088
(295,595)
-
(295,595)
1,629,273
1,333,678		 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

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 36 form part of these financial statements

15

University of Southampton Students’ Union Consolidated Balance Sheet 31 July 2023

Notes
Fixed assets
Tangible assets
11
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		 2023
£
544,018
171,065
396,180
1,691,742
2,258,987
(923,792)
1,335,195
1,879,213
(545,535)
1,333,678
4,007
1,329,671
1,333,678		 2022
£
443,685
114,088
191,195
1,943,157
2,248,440
(772,318)

1,476,122
1,919,807
(290,534)

1,629,273
12,119
1,617,154
1,629,273

The deficit for the year in relation to the Union only was £(266,583) (2022: surplus £680,277) .

These financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 08/04/2024

Edward Brooker Chair of Trustee Board 202 3 -2 4

The notes on pages 19 to 36 form part of these financial statements.

16

University of Southampton Students’ Union Union Balance Sheet 31 July 2023 (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		 2023
£
544,018
100
544,118
171,065
385,555
1,626,673
2,183,293
(909,901)
1,273,392
1,817,510
(545,535)
1,271,975
4,007
1,267,968
1,271,975		 2022
£
443,685
100
443,785
114,088
166,302
1,860,885
2,141,275
(755,968)

1,385,307
1,829,092
(290,534)

1,538,558
12,119
1,526,439
1,538,558

These financial statements were approved and authorised for issue by the Trustees and were signed on their behalf on 08/04/2024

Edward Brooker

Chair of Trustee Board 2023-24

The notes on pages 19 to 36 form part of these financial statements.

17

University of Southampton Students’ Union Consolidated Cash Flow Statement

For the Year Ended 31 July 2023

Notes 2023 2022
£ £
Cash flows from operating activities
Net movement in funds (295,595) 726,369
Depreciation 147,288 143,650
Loss/(profit) on the sale of Fixed Assets - 11,587
Interest received - -
(Increase)/Decrease in stock (56,977) (48,767)
(Increase) in debtors (204,985) (29,666)
(Decrease)/increase in creditors 151,474 155,336
Increase/(Decrease) in pension liability 255,001 (64,468)
Net cash (used in)/provided by operating activities (3,794) 894,041
Cash flows from investing activities
Interest receivable - -
Purchase of tangible fixed assets (247,621) (238,980)
Net cash (used in) investing activities (247,621) (238,980)
Change in cash and cash equivalents in the year (251,415) 655,061
Cash and cash equivalents at the beginning of the year 1,943,157 1,288,096
Total cash and cash equivalents at the end of the year £ 1,691,742 £ 1,943,157
2023 2022
£ £
Cash at bank and in hand 1,691,742 £ 1,943,157
Analysis of changes in net funds:
At 1 August Cash
At 31 July
2022 flow
2023
£ £
£
Cash 1,943,157
(251,415)
1,691,742

The notes on pages 19 to 36 form part of these financial statements

18

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

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 2023

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 2023

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.

Since I January 2019 the Union also participates in the University of Southampton Retirement Fund, a defined contribution scheme provided by Royal London, for certain non-academic staff.

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.

3 JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make judgements and estimates. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are that of the PASNAS pension scheme deficit. A discount rate of 4.36% has been used in line with industry standards.

4. Other income

Other income
Coronavirus Job Retention Scheme grant		 2023
£
16,762
-
16,762		 2022
£
1,027,532
4,426
1,031,958

21

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

5. Resources expended 2023

Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Student services
Total costs		 Staff
£
408,923
209,888
72,258
568,943
142,702
423,460
837,123
23,116
2,686,413		 Depreciation
£
40,591
5,101
1,922
49,504
2,883
23,262
24,026
-
147,289		 Other
costs
£
715,965
35,871
139,035
1,883,689
115,977
802,060
572,329
44,460
4,309,386		 Total
2023
£
1,165,479
250,860
213,215
2,502,136
261,562
1,248,782
1,433,478
67,576
7,143,088		 Total
2022
£
1,105,359
146,330
171,516
1,674,974
178,422
974,809
1,266,893
70,583

5,588,886
2022
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		 Depreciation
£
31,934
10,928
2,342
39,650
3,514
26,002
29,280
-
143,650		 Other
costs
£
638,746
19,445
112,009
1,118,654
57,128
612,339
413,114
44,512
3,015,947		 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

22

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

6. Support costs included in Note 4

2023

Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Total costs
022
Bars
Catering
Events
Shops
Lettings
Student activities
Student representation
Total costs		 Staff
£
181,754
-
33,046
313,938
49,569
198,277
413,077
1,189,661
Staff
£
173,921
-
31,622
300,409
47,433
189,732
395,276
1,138,393		 Premises
£
175,451
-
31,900
303,051
47,850
191,401
398,752
1,148,405
Premises
£
97,854
-
17,792
169,020
26,687
106,750
222,395
640,498		 Other
costs
£
58,688
-
10,670
101,371
16,006
64,023
133,383
384,141
Other
costs
£
65,503
-
11,909
113,141
17,864
71,457
148,869
428,743		 Marketing
£
3,232
-
588
5,582
881
3,526
7,345
21,154
Marketing
£
3,248
-
591
5,609
886
3,543
7,382
21,259		 Total
2023
£
419,125
-
76,204
723,942
114,306
457,227
952,557
2,743,361
Total
2022
£
340,526
-
61,914
588,179
92,870
371,482
773,922
2,228,893		 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

2022

Premises costs include £665,000 (2022: £322,000) notional rent ‘grant in kind’ charged by the University.

Included within support costs are governance costs of £21,141 (2022: £33,535).

23

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

7. Net movement in fund

et movement in fund
2023 2022
£ £
Depreciation of owned tangible fixed assets 147,288 143,650
Loss on disposal of fixed assets - 11,587
Audit of financial statements - parent company 17,965 15,620
- subsidiary company 1,955 1,700
Other remuneration to auditors - tax compliance 540 950
- other services 6,235 7,980
taff costs
2023 2022
£ £
Wages and salaries 2,041,941 1,916,710
Social security costs 132,002 124,170
Employer’s pension contributions (note 19) 513,204 388,410
Staff restructuring costs - -
Total costs 2,687,147 2,429,290
he average number of employees during the year was:
2023 2022
No No
Core staff 56 52
Support staff 110 106
166 158
he number of higher paid employees who were paid salaries in excess of £60,000 were:
2023 2022
No No
In the bands:
£60,001 - £70,000 1 2
£70,001 - £80,000 1 -

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:

The employees are in the University’s pension scheme at a cost of £21,424 (2022: £13,824).

Termination payments of £15,128 (2022: £nil) were made in the year comprising non-statutory/noncontractual payments.

The aggregate employee benefits of key management personnel was £415,695 (2022: £409,855 ). 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 2023

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 2022 – 31 July 2023
1
20,859
1 August 2022 – 31 July 2023
2
20,670
1 August 2022 – 31 July 2023
1
20,712
1 August 2022 – 31 July 2023
1
21,370
1 August 2022 – 31 July 2023
1
2,268
1 August 2022 – 31 July 2023
4
2,110		 Total
remuneration
20,859
41,340
20,712
21,370
2,268
8,440
114,989

The total trustee remuneration for the year ended 31 July 2023 was £114,989 (2022: £102,433)

During the year retirement benefits were accruing to 4 trustees (2022: 4) in respect of a defined contribution pension scheme. No trustee received any benefits in kind during the year (2022: none).

During the year 1 trustee received reimbursement of travel expenses totalling £347 (2022:5 trustees, £231).

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 2023

11. Tangible fixed assets Group and Union

Cost
At 1 August 2022
Additions
Transfer
Disposals
At 31 July 2023
Depreciation
At 1 August 2022
Adjustment on disposal
Charge for the year
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Leasehold
Improvements
£
2,586,537
142,331
5,000
-
2,733,868
2,384,992
77,489
2,462,481
271,387
201,545		 Assets under
Construction
£
5,000
20,276
(5,000)
-
20,276
-
-
-
-
20,276
5,000		 Equipment
£
1,369,416
85,014
-
1,454,430
1,132,276
69,799
1,202,075
252,355
237,140		 Motor
vehicles
£
3,935
-
-
3,935
3,935
-
-
3,935
-
-		 Total
£
3,964,888
247,621
-
-
4,212,509
3,521,203
147,288

3,668,491
544,018
443,685

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 £206,049 (2022: £172,726) , a loss of £29,012 (2022: profit of £46,092). £90,688 (2022: £42,598) was gift aided to the Union. The company had net assets at the year-end of £61,702 (2022: net assets £90,715) .

13. Stock – group and Union

Finished goods and goods for resale 2023
£
171,065		 2022
£
114,088

26

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

14. Debtors

Trade debtors
Amounts owed by clubs and societies
Amounts due from University of Southampton
Other debtors
Prepayments and accrued income		 Group
2023
2022
£
£
15,599
32,616
7,004
11,540
30,026
25,524
265,290
42,724
78,261
78,791
396,180
191,195		 Union
2023
2022
£
£
4,974
7,723
7,004
11,540
30,026
25,524
265,290
42,724
78,261
78,791
385,555
166,302		 Union
2023
2022
£
£
4,974
7,723
7,004
11,540
30,026
25,524
265,290
42,724
78,261
78,791
385,555
166,302

166,302

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
2023
2022
£
£
223,545
207,920
128,063
195,991
115,144
98,872
37,885
32,468
34,886
33,781
384,269
203,286
923,792
772,318		 Union
2023
2022
£
£
221,266
207,042
128,063
195,991
115,144
98,872
32,015
22,629
34,886
33,781
378,527
197,653
909,901
755,968

27

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

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

Pension scheme funding deficit (note 19)
tatement of funds
onsolidated - 2023
Brought
Forward
£
Unrestricted funds
General funds
1,617,154
Total unrestricted funds
1,617,154
Restricted funds
Capital Grant
7,239
RAG
4,880
Total restricted funds
12,119
Total funds
1,629,273		 Group
2023
2022
£
£
545,535
290,534
545,535
290,534
Incoming
Resources
resources
expenses
£
£
6,804,637
(7,092,120)
6,804,637
(7,092,120)
-
(3,122)
42,856
(47,846)
42,856
(50,968)
6,847,493
(7,143,088)		 Union
2023
2022
£
£
545,535
290,534
545,535
290,534
Transfers
Carried
forward
£
£
-
1,329,671
-
1,329,671
-
4,117
-
(110)
-
4,007
-
1,333,678

17. Statement of funds

Consolidated - 2023

28

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

17. Statement of funds (continued)

Consolidated - 2022

Unrestricted funds
General funds
Total unrestricted funds
Restricted funds
Capital Grant
RAG
Total restricted funds
Total funds
nion - 2023
Unrestricted funds
General funds
Total unrestricted funds
Restricted funds
Capital Grant
RAG
Total restricted funds
Total funds		 Brought
Forward
£
881,230
881,230
20,888
786
21,674
902,904
Brought
forward
£
1,526,439
1,526,439
7,239
4,880
12,119
1,538,558		 Incoming
resources
£
6,302,970
6,302,970
-
12,285
12,285
6,315,255
Incoming
resources
£
6,689,276
6,689,276
-
42,856
42,856
6,732,132		 Resources
expenses
£
(5,567,046)
(5,567,046)
(13,649)
(8,191)
(21,840)
(5,588,886)
Resources
expenses
£
(6,947,747)
(6,947,747)
(3,122)
(47,846)
(50,968)
(6,998,715)		 Transfers
£
-
-
-
-
-
-
Transfers
£
-
-
-
-
-
-		 Carried
forward
£
1,617,154
1,617,154
7,239
4,880
12,119
1,629,273
Carried
forward
£
1,267,968
1,267,968
4,117
(110)
4,007
1,271,975

Union - 2023

29

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

17. Statement of funds (continued)

Union - 2022

Unrestricted funds
General funds
Total unrestricted funds
Restricted funds
Capital Grant
RAG
Total restricted funds
Total funds		 Brought
forward
£
836,607
836,607
20,888
786
21,674
858,281		 Incoming
resources
£
6,174,841
6,174,841
-
12,285
12,285
6,187,126		 Resources
expenses
£
(5,485,009)
(5,485,009)
(13,649)
(8,191)
(21,840)
(5,506,849)		 Transfers
£
-
-
-
-
-
-		 Carried
forward
£
1,526,439

1,526,439

7,239
4,880

12,119

1,538,558

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 £42,856 (2022: £12,285). No cost was incurred to manage the fund and Union also donated £47,846 (2022: £8,191) 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 £3,122 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 2023

18. Analysis of net assets between funds

2023
Consolidated
Tangible fixed assets
Net current assets
Long term liabilities
Union
Tangible fixed assets
Investments
Net current assets
Long term liabilities
2022
Consolidated
Tangible fixed assets
Net current assets
Long term liabilities
Union
Tangible fixed assets
Investments
Net current assets
Long term liabilities		 Restricted
funds
£
4,117
(110)
4,007
Restricted
funds
£
4,117
-
(110)
-
4,007
Restricted
funds
£
7,239
4,880
-
12,119
Restricted
funds
£
7,239
-
4,880
-
12,119		 Unrestricted
Funds
£
539,901
1,335,305
(545,535)
1,329,671
Unrestricted
Funds
£
539,901
100
1,273,502
(545,535)
1,267,968
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		 Total
funds
£
544,018
1,335,195
(545,535)
1,333,678
Total
Funds
£
544,018
100
1,273,392
(545,535)
1,271,975
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

31

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

19. Pension Schemes

The Union has three separate pension arrangements; the Universities Superannuation Scheme (USS), the pension and assurance scheme (PASNAS) and the University of Southampton Retirement Fund (USRF), a defined contribution scheme provided by Royal London, for certain non-academic staff.

USS

The pension charge for the year includes £13,637 (2022 - £16,285) 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 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.

A further full valuation as at 31 March 2023 is currently underway. As the valuation has only recently commenced there is still work to be done agreeing the technical provisions assumptions, the extent of future investment risk, the duration of the deficit period and the level of deficit contributions. Rule changes in respect of strengthening the employer covenant are also in progress including restrictions on employer exits, debt monitoring and pari passu arrangements. The valuation must be completed by 30 June 2024. However it is generally anticipated that there will be an elimination of the deficit position with early indications that the valuation is expected to show a surplus of £7.4bn.

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 2023

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 2021 and indicated that the scheme’s assets represented 83% of the technical provisions corresponding to a deficit of £56,492,000. 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 2021 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 8 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 2023 and will be formally reviewed following completion of the next valuation due with an effective date of 31 July 2024. 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 8 years to clear the funding deficit is £545,535 (2022: £290,534). In calculating this net present value, a discount rate of 4.36% 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 2023 amounted to £64,307 (2022: £66,473). The movement in the deficit contribution liability in the year was a £255,001 increase (2022: £64,468 decrease).

USRF

Since I January 2019 the Union also participates in the University of Southampton Retirement Fund, a defined contribution scheme provided by Royal London, for certain non-academic staff. The pension charge for the year includes £99,027 in relation to the USRF.

33

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

20. Capital commitments

At 31 July the Union had capital commitments as follows:
Authorised and contracted		 2023
£
-		 2022
£
-

21 Related party transactions

University of Southampton

The Union is in receipt of a recurrent grant from the University of £2,557,953 (2022: £2,436,146) together with other grants of £329,367 (2022: £1,049,977). Transactions throughout the year resulted in a trading balance as at 31 July 2023 of £98,037 (2022: £158,259) owed to the University.

SUSU Social Enterprises Limited

The Union had transactions with the SUSU Social Enterprises Limited a 100% owned subsidiary of £90,688 (2022: £44,598) being gift aid payable, and as at 31 July 2023 the Union had a debtor balance of £nil (2022 £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		 2023
£
2,009,659
(832,959)
(290,534)
2023
£
1,933,965
(824,938)
(290,534)		 2022
£
2,055,561
(686,902)
(290,534)
2022
£
1,948,396
(680,391)
(290,534)

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 2023

23. Operating lease commitments

At 31 July 2023 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		 2023
£
14,795
26,695
41,490		 2022
£
9,679
9,611
19,290

35

University of Southampton Students’ Union Notes to the Financial Statements For the Year Ended 31 July 2023

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

36