# **Trustees’ Report and Consolidated Financial Statements** for the year ended 31 July 2021 **Registered Charity Number 1153350 Registered Company Number 8619653** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **SOLENT STUDENTS’ UNION** ## **INDEX** **----- Start of picture text -----**
Page
Reference and administrative details 1
Trustees’ report 3
Independent auditors’ report 19
Consolidated statement of financial activities 23
Group and parent charity balance sheet 24
Group and parent charity statement of cash flows 25
Accounting policies 26
Notes to the financial statements 26
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**SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **REFERENCE AND ADMINISTRATIVE DETAILS** ## **Trustees (and Directors)** **Full-time (Sabbatical) Officer Trustees** President Vaios Koukouletsos (appointed 25 July 2020) Head of Student Welfare Teodor Mitsev (appointed 25 July 2020) Head of Student Education Ciprian Chiru (appointed as an officer on 25 July 2020, not as a Trustee) resigned 19 July 2021 Alexandra Stefania David appointed 19 July 2021 Head of Student Engagement Fern Anyan (appointed as an officer on 25 July 2020, not as a Trustee) resigned 16 July 2021 Daniel Humby appointed 19 July 2021 ## **Student Trustees** Non-Portfolio Sophiia deFaia (appointed 20 May 2020) resigned 16 July 2021 Non-Portfolio Daniel Humby (appointed 20 May 2020) resigned 19 July 2021 Non-Portfolio Catherine Eager (appointed 12 October 2021) Non-Portfolio Francesco Italiano (appointed 12 October 2021) Non-Portfolio Josefine Wagner (appointed 12 October 2021) **External Trustees** Non-Portfolio Andrew Gameson Non-Portfolio Bonnie Amato Southcott (resigned 12 October 2021) Non-Portfolio Darren Xiberras (resigned 14 October 2021) Non-Portfolio Tom George Wood Non-Portfolio Annie Lordon (appointed 12 October 2021) Non-Portfolio Stephen Carter (appointed 14 October 2021) **Company Secretary** Lorna Reavley **Chief Executive** Lorna Reavley **Finance Manager** Judith Strike ## **Registered Office** Solent Students’ Union East Park Terrace Southampton Hampshire SO14 0YN **Page 1** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **REFERENCE AND ADMINISTRATIVE DETAILS** **Registered Charity Number** 1153350 **Auditors** Godfrey Wilson Ltd 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD ## **Registered Company Number** 08619653 ## **Solicitors** Paris Smith LLP 1 London Road Southampton Hampshire SO15 2AE Blake Morgan New Kings Court, Tollgate Chandlers Ford Hampshire SO53 3LG ## **Bankers** Barclays Bank Plc Southampton Bargate Branch 106 Above Bar Street Southampton, SO14 7DT Triodos Bank Deanery Road Bristol BS1 5AS Charity Bank Limited Fosse House, 182 High Street Tonbridge TN9 1BE **Page 2** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** The Trustees of the Union, who are also the Directors of the company for the purposes of company law, present their annual report for the purposes of Charities Act 2011 and Companies Act 2006, together with the audited financial statements for the year ended 31 July 2021. ## **ACHIEVEMENT AND PERFORMANCE** The start of the year brought uncertainty due to the ongoing Covid 19 pandemic. There was increased financial uncertainty with the University unable to confirm our block grant funding until November 2020. Trustees anticipated at least a 10% reduction in block grant funding and no income generated through our Freshers fayre and approved an interim budget in July 2020 alongside a pay freeze and recruitment freeze which meant our staff team was reduced. The majority of teaching was online which meant there were very few students on campus and additional lockdowns in October and January hampered the ability of the Union to deliver on many events, activities and services throughout the year. Office capacity was reduced dramatically in response to the covid regulations which meant the majority of staff continued to work remotely – and for some of our Officers abroad due to the travel restrictions in both the UK and their home countries. Our welcome period plans shifted with the additional social distancing measures introduced by the University in response to the Government regulations. Events were cancelled, and Freshers Fayre was scaled back to sports and society sign up days only which meant we could implement the necessary safety measures. This impacted our normal income generation activity as there was no opportunity to include commercial stands. We were able to run three out of four of the planned society and sports team sign up days with 835 students attending across the three days rather than the normal 5,000 attending a Freshers Fayre. Three Cinema in the Spark events were held by Sonar Cinema and Live Events Society supported by staff and the virtual societies showcase was watched by 1,700 people. All society training was held online, and we trialled some virtual social events for students through this period which were not deemed successful. The block grant was approved in November 2020 without the anticipated cut and Trustees considered various staff appointments throughout the year in response to key positions becoming vacant on a case by case basis. The University have agreed to involve the Union in their budgeting process and as a result we have been able to secure an increase of 3% for 2021-2022 to cover fixed costs and a salary increase which will bring our pay scale more in line with sector benchmarks. Society Council passed a motion in November to introduce a 6-month membership option to enable students at Solent who are off campus for long periods of time to still get involved at a reduced cost. Due to the ongoing covid regulations, societies were unable to hold any in person events or meet physically this year which had a significant impact on both the numbers of societies and members. Trustees decided to refund society memberships this year in response to the lack of activity and financial pressures on students with societies retaining the membership fees. Societies were encouraged to stay in touch with members there were a number of virtual activities including: Mindful Running hosting weekly meet ups online; Solent Christian Union holding weekly virtual prayer meetings, a virtual Carol Service which had 344 views and 5 shares on Facebook and a Christmas jumper online social; The Computing Society hosted weekly virtual meet ups for their society members to develop a network of students with similar interests. Despite this, at the start of June there were only 8 societies with at least 1 committee member. As a result **Page 3** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** the requirements were relaxed which did see an increase in interest with fourteen active societies in July however, this remains an area of risk for the coming year. Workshop Wednesdays aim to increase students skills set and support them to identify them for employability opportunities. The programme was expanded during the year with a range of events and topics with support from societies, alumni and University departments. The programme launched on 2 September and ran both online and in person where possible covering topics such as Business start-up, proof reading and referencing, a LinkedIn workshop, web page management, media law training as well as a Halloween make-up tutorial which had 1,100 views. Safe Solent continued to run during the year with Radio Taxi’s covering the cost of the service in exchange for advertising. As there were increased restrictions on access to campus and the Library opening hours, the service was initially introduced to run from 26 October to the 18 December, Mon to Thurs 6pm to 10pm and Fri 6pm to 8.30pm. Due to the lockdown announced from 4 January, the service was suspended until the Library re-opened in March. The service ran extended hours throughout the 24-hour library period from 30 April – 28 May from 6pm – 6am rather than the normal 9pm – 6am period. We also decided to run Safe Solent as an evening service for the final term as the Library did not open for the normal 24-hour period due to covid restrictions and this was extended to the end of July to coincide with the University opening times. Over the year 323 students benefitted from 248 free taxi journeys. The SU vehicle hire service was suspended until November 2020 to ensure it could run in a covid secure way. The capacity of the vehicles was reduced to enable distancing measures and cleaning/sanitising protocols were introduced. The service was suspended again in January in line with the Government lockdown and resumed in line with government guidance on the 29th March and was available for students to use throughout the final term. Due to the ongoing pandemic restrictions, Refreshers Fayre was run in a virtual space in partnership with Raptor between 8 February and 14 February and incorporated Sports, Societies, Commercial and University virtual areas as well as having advice around mental health and wellbeing through the mental health charity Minds. The event went well and was viewed by 2,681 students across the week. Several virtual events were also held across the re-freshers period including a Cocktail Masterclass with the Orange rooms which had 50 people join live and 800 views overall, Drag Bingo with the Edge which had 30 students play on the night and 541 views. Our Physical Activities Officer held some exercise sessions which had 459 views and our society showcase had 297 views. Our Advice service has seen increased demand over the year with 161 cases and supporting 154 students – an increase of 40% of cases from the previous year. Additional staff members were trained in order to manage the increased workload. Trustees will be considering additional investment in the service to meet this demand. Our Mentality online training pilot, which aimed to support peer to peer mental health support, was not as successful as we hoped due to the lack of connection on campus and students becoming fatigued with virtual delivery. students received codes to access the course but disappointingly only 34 students completed the full training. This year we have: Decided to change the Head of Student Voice position back to SU President. **Page 4** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** - Dealt with 220 requests for support from students with course issues - an increase of 330% from 50 cases last year. - Successfully lobbied the University to open the Library 24 hours until the end of May to re-introduce the ability to browse through the books shelves rather than just collecting books. - Proposed a Trans Inclusion Policy which was agreed and introduced by the University. - Worked closely with the University on cost cutting measures while retaining academic staff. Proposed and agreed continuation of a No-detriment policy for students. - Supported the NUS Students Deserve Better national campaign. - Lobbied our MPs on tuition fees refunds for students. - Worked in partnership with the University of Southampton Students’ Union to ask landlords to free students from contracts and give refunds for accommodation they were unable to use. Ran online drop-in sessions for students. - Campaigned to recruit student officers resulting in 120 nominations being received in Autumn. - Held sessions during Black History Month sessions with Mindful Healthcare to highlights the effects of racism and how it can be dealt it. - Introduced the Union’s Ideas board which allows students to vote on policy changes that they would like to see within the Union. - Developed advice on how to deal with your accommodation providers and provided more opportunities for students to feedback on their experience of housing in the city. - Held a Mental Health Social Media event and raised awareness of the issues with an online campaign. Provided a live brief for film students. - Explored the potential of introducing a housing guarantor scheme at the University. - Hosted monthly Mindful Healthcare events to support students mental health. - Created and shared a LGBTQ+ playlist on Spotify during LGBTQ+ month in collaboration with Radio Sonar. Ran online only elections for our officers - Brought the petting zoo back to campus in May. - Hosted the Union awards online to reward and recognise our student leaders and volunteers. - Supported cadets with discussions around resuming sea-based placements. - Introduced a 3 level Academic rep training programme to develop leadership skills and delivered specialist training to each faculty. - Explored an accreditation scheme in partnership with the University to recognise Academic Reps. Involved in our academic rep working group to listen and act on their feedback give them the opportunity to develop additional skills. ## **RISK MANAGEMENT** The Trustees examine the major strategic, business and operational risks faced by the Union. The Union maintains a risk register which is reviewed regularly by the Risk & Control Committee and updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks faced by the Union. Budgetary and internal risks have been minimised by the implementation of financial procedures which include authorisation limits. Policies and procedures are also in place to ensure compliance with health and safety, equality, diversity and other legislation and these are periodically reviewed to confirm they continue to meet the needs of the Students’ Union and are up to date with any changes to legislation. The risk register was additionally reviewed in relation to the Covid 19 pandemic and updated in line with the changing situation and campus closure. **Page 5** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** ## **OBJECTIVES AND ACTIVITIES** The Union remains committed to furthering its charitable objectives which are outlined in the Memorandum & Articles of Association as: The advancement of education of Students at Solent University for the public benefit by: - promoting the interests and welfare of Students at Solent University during their course of study; - providing representation, advice and assistance to Students on matters affecting their welfare and interests as Students; - providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its Students; - being the recognised representative channel between Students and Solent University and any other external bodies; and - promoting and encouraging contact and cooperation between Students in all matters affecting their interests as Students without regard to ethnic origin, nationality, gender, sexual orientation, religion, disability or age _._ In pursuit of these aims, the Union represents around 9,000 students to the University, the local community and nationally via the National Union of Students and supports students in campaigning about the issues which affect them. The Union offers a diverse and inclusive range of activities, opportunities and services to enrich student life. These include advice, training, societies, volunteering opportunities and other services which promote inclusion, friendship and personal development. The Trustees confirm that they have had due regard to the guidance on Public Benefit published by the Charity Commission in exercising their powers and duties. On the 1 August 2019 the Unions’ five-year strategic plan was launched which sets out the following aims: **----- Start of picture text -----**
|||| |---|---|---| |Vision:|Developing confident students at the heart of the Union and University| |Mission:|We enrich the student experience through opportunities, support, influence and action.| |Values:|Inclusive|We want you to feel valued and that you belong.| |Passionate|We care deeply about people, our community and what we do.| |Progressive|We build on strengths, encourage new ideas and challenge boundaries of| |thinking.| |Trust|We trust and establish trust by being open, honest and responsible in| |everything we do.| |Balance|We embrace a balanced life which leads to good health and greater chances| |of success.| **----- End of picture text -----**
**Page 6** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** ## **Priorities:** ## **Confidence** **Confidence is at the heart of success. We want you to have confidence in yourself, the Union and the University.** _We commit to:_ - Provide opportunities which build your self-confidence and act on issues which impact your wellbeing. - Prioritise your mental health and work with the University to ensure the right support is available at the right time in the right place to allow you to succeed and develop. - Listen, share and act on your feedback to develop the Union and University. Ensure the Union focus is relevant to you through democratic structures which allow you to have a direct influence. - Work in partnership with our University colleagues to build a sense of pride and confidence in your Union, your University and your Solent experience. ## **Representation** **Representing you and giving you a voice is our primary purpose and priority. We want you to directly influence your student experience.** _We commit to:_ - Actively seek, respond to and discuss your feedback with the University to develop policy and a student experience which puts your academic interests first. Ensure all elected representatives have access to training, support and information to represent effectively and deliver change at a national, university, school and course level. - Develop officer positions which are relevant to the majority of you and ensure the minority voices are heard. - Invest in our independent Advice Service to grow this vital support service for you. ## **Community** **A supportive inclusive community is the key to you being at the heart of the Union & University. We want you to be at the heart of the Solent experience.** _We commit to:_ - Offer a range of fun, safe and affordable social opportunities which offer something to everyone. - Encourage events which provide you opportunities to apply your learning, skills and talent to support your career ambitions. - Establish relationships and partnerships in the local community to help you feel welcome, valued and influential in Southampton. Recruit passionate and committed staff who put you first. - Develop a one team culture which supports every member of the team and encourages development and success. **Page 7** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** ## **TARGETS** The Board of Trustees set our annual targets in line with the strategic priorities outlined in the strategic plan and elected officer priorities, using the Alterline Student Life Pulse feedback from students as a measure of progress. The Annual targets 2020 - 2021 progress has been hindered by the ongoing restrictions this year and is shown below. |**Confidence**|**KPI**|**Progress**| |---|---|---| |1.
Increase the confidence
and skill up student leaders
in supporting peers with
mental health issues
through the mentality
pilot programme.|**500 student leaders complete the**
**mentality training by May 2021**|**Only 34 students completed the**
**training offered so it is unlikely we**
**will continue with this project.**| |2.
Increase student awareness
of their influence on
decisions at the Union to
30%.|**Increase the SLP Alterline score for**
**“I can influence decisions made**
**by the SU” from 24% to 30% **|**Although we did not reach our**
**target of 30%, we did achieve an**
**increase to 27% which is 1% above**
**the benchmark for 20-21.**| |3.
Run a Mental Health and
Social Media campaign
which engages
with 1000 students.|**The SLP score The SU has a positive**
**impact on my wellbeing increases**
**to benchmark of 35%**|**The officers did run a campaign**
**and we did achieve an increase to**
**31% which is 1% above the**
**benchmark for the year.**| |4.
Run a comprehensive
review of Union services
and opportunities with
members gaining at least
2000 responses to review
our offer in line with
current needs.|**At least 2000 students respond to**
**the Keep Stop Start survey by 18**
**December 2020.**|**Due to the lack of physical**
**presence on campus this year, we**
**have been unable to get students**
**engaged in this survey in a virtual**
**space only.**| |**Representation**|**KPI**|**Progress**| |1.
Implement and pilot
a new skills-based training
course for all course reps.|**SLP rating of SU effectively**
**represents Academic interests**
**increases to 60%**
**At least 40% completion rate of**
**training and a positive feedback**|**The rating increased to**5**3% but**
**fell short of the target. It did**
**exceed the benchmark this year of**
**48%.**
**The feedback on the training was**
**very positive at 84% and we will**| **Page 8** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **SOLENT STUDENTS’ UNION** ## **TRUSTEES’ REPORT** **----- Start of picture text -----**
continue to build on this in the
coming year.
2. Develop and implement an Our NSS Q26 score dropped to 48
NSS strategy agreed by LT in line with drops across the sector
which targets low scoring
with the benchmark dropping to
NSS courses and reach the
impacted by the lack
sector average for question
of physical engagement his year
26 in the NSS by July
due to the pandemic.
3. See an increase of 10% in Increase case numbers from 2020 We have exceeded this target with
student awareness of the 161 cases this year – an increase of
Advice Service and use of
Advice service by July
4. Create and implement The SLP score for the “SU We exceeded this target and
represents the views of students reached a score of
student officers.
5. Increase online voter ,500 individuals engage in We were just below this target
turnout with an aim with 1,368 voters overall. Our
,500 voters
was unexpected in a year where all
campaigning had to be conducted
online due to the pandemic.
Community KPI Progress
1. Improve Society retention Retention rate in May 2021 is Society retention was severely
rates from 72% to 75%. impacted by the lack of physical
activity this year and we saw a
huge reduction in the number of
societies in the year. We will be
addressing this as a priority in the
coming year.
2. Work with subject leaders Increase SLP score of The SU offers As above, it has been very difficult
to have 5 new active a wide range of sports, clubs and to sustain active societies during
academic societies by May
societies that I can get involved in the pandemic and our score
2021.
d .
.
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**Page 9** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** **----- Start of picture text -----**
3. Work with the Sabbatical The SLP score for “The SU is We remained at
officer team to deliver one figure.
skills workshop per
academic month in
partnership with both
internal departments at the
University and
4. To work with external local At least 15 local volunteering Due to the pandemic many local
opportunities are advertised to volunteering opportunities dried
have 15 volunteering students by July 2021. up with many local charities
opportunities available to unable to provide their services.
Solent students on our
website during 2020/21.
Communication & Engagement KPI Progress
1. 40% of the student Increase email open rates to reach Open rates stayed at 34 .
population to engage with
at least one
population.
2. Work closely with the We Increased the score to 31 b ut
University ER department “The SU communications are fell short of
to increase the relevance of
our communications by
5%.
3. Work closely with the We saw an i but did
University ER 'I am well informed about what is not reach target.
communications by 8%.
4. Increase engagement – Email open ra
Increase email open rates and Increase Social which was to be expected in a
by 15% & social media
pandemic where many students
engagement by 2%.
did not come to the city.
[Non-profit industry benchmark is
Our social media engagement
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**Page 10** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **SOLENT STUDENTS’ UNION** ## **TRUSTEES’ REPORT** **----- Start of picture text -----**
2021 but this was not sustained
throughout the year.
Finance KPI Progress
1. Income generation strategy Strategy approved in May Board The income generation strategy
established and approved meeting. development paused with the
by the Board by May
resignation of the lead staff
member and a restructure of
responsibilities.
Achieve a SOSUT trading profit of Our trading company profit fell
short of the budget due to lack of
advertising opportunities with
students not returning to campus.
2. Negotiate with the To have a clear memorandum of We did review the agreement but
University to reduce the understanding with the university a new catering contract within the
restrictions to the shop
in place by July 2021. University means we cannot lift
license and other income
the restrictions or implement a
streams by July 2021.
new memorandum of
understanding. We will continue
to pursue this.
3. Achieve the 2020 2021 Surplus of at We exceeded the surplus target at
budgeted surplus by July l the end of the year at
2021. 2021. after all exceptional spending
agreed by Trustees was taken into
account.
4. Maintain a GP of 46% for The shop was rarely open during
the Shop by July 2021. the year due to the government
lockdown and lack of access to
campus.
5. Work with the University to We have an agreement to be
establish a process and by July 2021. involved in the normal University
timeline for the allocation
budget setting process annually.
of the block grant and
other additional funding by
July 2021.
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**Page 11** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **SOLENT STUDENTS’ UNION** ## **TRUSTEES’ REPORT** |6.
Secure 2 new annual media
partner contracts by June
2021.|**Contracts for additional media**
**partnerships signed by June 2021.**|**This was not possible this year due**
**to the pandemic and lack of**
**advertising opportunities to**
**students.**| |---|---|---| ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** Solent Students’ Union is a students’ union as defined in the Education Act 1994 linked to Solent University. As a student led, independent, democratic organisation, the Union represents students to the University and the wider community and provides a range of opportunities, activities and services to enrich their experience. Solent University exercises its duty under the Education Act 1994 to take such steps as are reasonably practicable to secure that the Students’ Union operates in a fair and democratic manner and is accountable for its finances. The Union is a registered charity number 1153350 and also a company limited by guarantee registered in England number 8619653. During 2016 – 2017, the charity's Trustees established a wholly owned subsidiary undertaking Solent Students' Union Trading Limited (incorporated in England with company number 10353271). Solent Students' Union owns 100% of the company's ordinary share capital. The results of the subsidiary are consolidated into these financial statements. ## **Governance** The Union is constituted by its Memorandum & Articles of Association, which were revised during 2019 – 2020, approved by the University Board of Governors in November 2019 and adopted by the members in March 2020. The Union is controlled by a Board of Trustees, who act as Directors for the purposes of company law and Trustees for the purposes of charity law. Decisions are made collectively by simple majority vote. The Union has up to eleven Trustees made up of the following persons: - i. Four Officer Trustees elected annually by a cross campus ballot of ordinary members of the Union in accordance with the Union’s Memorandum & Articles of Association and Bye Laws. - ii. Three Student Trustees appointed in accordance with the Union’s Memorandum & Articles of Association. - iii. Four External (non-student) Trustees, appointed in accordance with the Union’s Memorandum & Articles of Association. All Trustees are provided with the Charity Commission’s guidance to Trustees and are introduced the activities of the Union by the Chief Executive and other senior managers as required. Trustees are given training as and when required on an individual and collective basis. The four full time sabbatical posts are remunerated as authorised by the Education Act 1994 and cannot exceed two years duration for each holder. Officers are appointed Trustees when due consideration is given to the legal automatic disqualification conditions. **Page 12** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** The Union’s Board of Trustees meets at least quarterly and is responsible for maintaining legal, financial and reputational stewardship of the Union. The Board of Trustees determines the mission, vision and values and sets organisational strategy in line with membership requirements. The Board of Trustees approves policy, annual accounts and annual budgets. The Board of Trustees delegates some authority through three subcommittees: Finance Committee, Risk and Control Committee and HR committee. Finance Committee meets at least three times a year and is responsible for overseeing all financial affairs of the Union including monitoring performance against budget, the preparation of annual accounts and ensuring appropriate levels of audit, financial control and financial procedures are in place. Membership consists of: - One External Trustee (Chair) - Two Officer Trustees - One Student Trustee - Finance Manager - Chief Executive (in an advisory capacity) Risk and Control Committee meets at least once a year and has responsibility to ensure that levels of risk are monitored and appropriate levels of control are maintained across all operational activities including appropriate frameworks for accountability, assessing risk and systems to review controls are in place. Membership consists of: - One External Trustee (Chair) - One Officer Trustee - One Student Trustee - Chief Executive (in an advisory capacity) HR Committee, established in June 2016, meets at least twice a year and has responsibility to oversee employment related policies, the performance of the Chief Executive, changes to staff remuneration and any other employment matters. Membership consists of: - Two External Trustees one of whom will Chair - One Officer Trustee - One Student Trustee - Chief Executive (in an advisory capacity) The Union periodically review the performance of the Board in the framework of the NUS SU specific code of governance. ## **Democracy** The political and campaigning policies of the Union are set by Student Council and executed by the Officer Trustees and other elected student officers. The Board of Trustees maintains oversight of these policies in accordance with their duty to maintain legal, financial and reputational stewardship. **Page 13** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** Student Council membership includes the elected student officers and the president of Sonar Media, the president of RAG society, the Sports Management Group chair and the chair of Societies Council. Sabbatical Officers report to Student Council who are responsible for scrutinising the performance of the Sabbatical Officers. The Officer Committee, consisting of the four elected sabbatical officers and the other elected student officer positions, exists to implement policy and administer all recommendations from Student Council and referenda. The Officers also represent the concerns and interests of the members of the Union both within the University and the wider community. ## **Operational** The Board of Trustees delegates the day to day running of the Union to the Chief Executive who is employed to ensure effective management of the Union and to lead the Senior Management Team. The Union employs 12 permanent staff positions for the sake of continuity in the management of its activities. All staff are accountable to the Chief Executive for the performance of their duties. The Chief Executive provides HR support to the sabbatical officers to ensure consistency of employer support. The officers remain accountable to the membership through Student Council for their performance as elected representatives. The Union’s Senior Management Team meet on a fortnightly basis and consists of: - Chief Executive - Finance Manager - Activities, Events and Income Manager / Student Communities Manager (from June 2021) - Communications Manager - Representation, Advice & Democracy Manager In 2020 – 2021 they were: Chief Executive Lorna Reavley Finance Manager Judith Strike Activities, Events & Income Manager Andy Brown (resigned 21 May 2021) Student Communities Manager Philip Kloppenborg (appointed 7 June 2021) Communications Manager Alice Reid Representation Advice & Democracy Manager Joshua Whale (appointed 1 January 2021) The Union’s Leadership Team meets fortnightly and exists to ensure effective operational procedures and performance in line with strategy and policy set by the Board of Trustees, Student Council and other democratic procedures. It consists of: - Chief Executive - The four Sabbatical Officers - Activities, Events & Income Manager / Student Communities Manager - Communications Manager - Finance Manager - Representation Advice & Democracy Manager **Page 14** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 **TRUSTEES’ REPORT** ## **Solent Students’ Union Staff Structure 2020** **----- Start of picture text -----**
Chief Executive
**----- End of picture text -----**
**----- Start of picture text -----**
Representation,
Advice & Activities, Events &
Democracy Income Manager / Communications Finance Manager
Manager Student Communities Manager
Manager
Union Union Union Finance &
Coordinator Coordinator Coordinator Payroll Assistant
(RAD) (M&C)
Academic Shop Supervisor
Designer
Caseworker
**----- End of picture text -----**
## **RELATIONSHIP WITH RELATED PARTIES** The relationship between the University and the Union is established in a Memorandum of Understanding. The Union receives a Block Grant from the University and part-occupies buildings owned by the University. This support is intrinsic to the relationship between the University and the Union. Although the Union continues to generate supplementary funding from various trading activities, it is dependent on the University’s financial support for which we are very grateful, and Solent University have confirmed their funding for the next financial year at an increase of 3% on the 2020-2021 figure. Although the Covid-19 pandemic continued to have an impact on the University Sector during the year, the University have agreed to include the Union Block Grant as part of their normal budget setting process. We will be involved in the discussions at a much earlier stage and they have given assurances that they will continue to provide additional funding to cover our pensions deficit liability. Solent University exercises its duty under the Education Act 1994 to ensure that the Students’ Union operates in a fair and democratic manner and is accountable for and manages its finances appropriately. The Education Act code of Practise was reviewed and updated during the year. **Page 15** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** The Union paid an annual affiliation to the National Union of Students (NUS) of £11,240. This affiliation ensures that the Union has an influence on national student matters and has access to specialist training and support. This affiliation is approved annually by members via the AGM and decided via referendum at appropriate times. The Union paid a subscription of £1,000 to WonkHE for information, training and policy support. The Union paid a subscription of £2,000 to Warner Goodman to provide Employment Law advice and HR support through their “Peace of Mind” package. The Union paid a subscription of £3,800 to Alterline for student feedback and data analysis services. As noted above, the charity has a wholly owned trading subsidiary to whom management charges amounting to £19,200 were charged. ## **FINANCIAL REVIEW** Our total incoming resources for the year were **597,232.** Our largest source of income continues to be our block grant and other grants from the University totalling £493,825. This was supplemented with a gift in kind of £61,026 applied as a rental charge to the building we occupy bringing the total income from the University to £554,851. Income from our charitable trading activities was £1,427 and additional income from the rental of space and advertising equated to £39,818 with interest on funds held amounting to £1,136. Our total resources expended were **516,896.** Our largest expenditure was on charitable activities at £465,332 which includes support and governance costs of £142,648. The free reserves level was reviewed by Trustees during the year and set at a range of £300,000 to £600,000 based on approximately three to six months of core expenditure plus creditors and contractual obligations, the annual SUSS pension’s deficit liability and previously agreed reserves expenditure. Our free reserves level (which does not recognise the pension liability) is £614,067 and reserves are slightly above the safe levels set. There are additional restricted reserves held of £5,633, which are explained in more detail in note 19 of these financial statements. Careful controls on expenditure and staff cost savings in the year resulted in the group returning a surplus of £80,336 in the year against the forecast surplus of £8,623. At the end of the year our general fund level is £278,827. The Union accounts show a provision for the future liabilities due to the Students’ Union Superannuation Scheme. The latest valuation of the liabilities as at 30 June 2019 show the amount available to pay pensions benefits in the future has declined when compared to its future liabilities. The Union in common with other participating students unions has to pay its share of the increased funding shortfall and is required to pay increased contributions based on previous contributions payable and the term has been extended. The University has historically given the Union **Page 16** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **TRUSTEES’ REPORT** additional funding to cover this pension deficit for which we are very grateful. It is anticipated that this financial support will continue but is not guaranteed in the future. The Trustees have considered the impact that the COVID-19 pandemic will have on the charity’s current and future financial position. As Solent University have confirmed their funding for the next financial year at similar level to 2020-21, the Trustees consider that the charity will be able to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved. ## **PLANS FOR FUTURE PERIODS** The Trustees will continue to plan in response to the pandemic and the increased financial risk to the Union. Although there is more clarity around our block grant, income generation remains difficult in the economic climate, but we will continue to explore options available in becoming less reliant on funding from the University. The Trustees will consider what investment may be necessary in the Advice Service to manage the increase in demand. We will aim to rebuild our student societies to ensure there are multiple opportunities for students to connect, socialise, build confidence, apply learning and develop skills which will ease their transition into employment. The Sustainability and Investment grant funding will remain ring-fenced for our societies and we will build on the success of the workshop Wednesday events. The Safe Solent taxi scheme will continue, and we will explore additional funding opportunities to expand this service across the whole academic year rather than just during the 24-Hour Library period. ## **STATEMENT OF TRUSTEES RESPONSIBILITIES** The Trustees (who are also directors of the charity 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 Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). The Trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the Trustees are required to: select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. **Page 17** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **SOLENT STUDENTS’ UNION** ## **TRUSTEES’ REPORT** The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **AUDITORS** Godfrey Wilson Limited were re-appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity. Approved by the directors and signed on their behalf. Vaios Koukouletsos Trustee Stephen Carter Trustee 26 October 2021 **Page 18** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **INDEPENDENT AUDITORS’ REPORT** ## **Opinion** We have audited the consolidated financial statements of Solent Students’ Union (the 'parent charity') and its subsidiary (the ‘group’) for the year ended 31 July 2021 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related 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: - give a true and fair view of the state of the group and parent charity's affairs as at 31 July 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 parent charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. 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. **Page 19** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **INDEPENDENT AUDITORS’ REPORT** In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinion on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the trustees’ report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; - the parent charity financial statements are not in agreement with the accounting records and returns; certain disclosures of trustees’ remuneration specified by law are not made; or - we have not obtained all the information and explanations necessary for the purposes of our audit. ## **Responsibilities of the trustees** As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. **Page 20** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **INDEPENDENT AUDITORS’ REPORT** ## **Our 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below: (1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance. (2) We reviewed the charity’s policies and procedures in relation to: - Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance; - Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and - Designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud. - (3) We inspected the minutes of trustee meetings. - (4) We enquired about any non-routine communication with regulators and reviewed any reports made to them. (5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations. (6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error. (7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included: Testing the appropriateness of journal entries; - Assessing judgements and accounting estimates for potential bias; - Reviewing related party transactions; and - Testing transactions that are unusual or outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion. **Page 21** **SOLENT STUDENTS’ UNION** CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ## **INDEPENDENT AUDITORS’ REPORT** 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. ## **Use of our report** Companies Act 2006. Our audit work has been undertaken so that we permitted by law, we do not accept or assume responsibility to anyone other than the members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Alison Godfrey FCA** ## **Senior Statutory Auditor** Date: 3 November 2021 ## **GODFREY WILSON LIMITED** Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD **Page 22** SOLENT STUDENTS, UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULV 2021 Consolidated statement of financial activities lincorporoting on income ondexpenditure oc£ount) 2021 Total 2020 Total Restricted Llnre5tricted Note Income from.. Donations and legacies Charitable a£tivities Other trading activitie5 Investments 30,744 524,107 1.427 39.818 1.136 554,851 1,427 39,818 1,136 577,141 7,301 88,400 1,276 Total Income 30,744 566.488 597,232 674.lJ8 Exptndlturè on: Raising funds Charitable activities 51.564 456.320 $1,564 465.332 74,688 576.829 9.012 Total expendlture 9.012 507.884 516,896 651.517 Net Incorne I lempendltyrel 21.732 58.604 80,336 22,601 Transfers between funds 22,551 22.551 Net movèmtnt In funds 18191 81.155 80.336 22.601 Reconclllatlon of funds: Toial funds brou8hi forwartl 6,452 198,355 204,807 182,206 Total funds Carrled forward 5,633 279.510 285,143 204.807 All of the above results are derived from continuing attivilies. There were no orher reco8nised gains or losses other than those stated above. Movements in lunds are distlosed in note 19 to the accounts. Pa8e 23 SOLENT STUDENTS, UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Consolldated balance sheets The group 2021 The group The charity The charitv 2020 2021 2020 Note Flxed a55ets Tangible assets Investments io 11&12 2.093 2,093 2,093 2,094 Current a55et5 Stocks Debtors Cash at bank and in hand 13 14 6￿76 64.744 612.959 8,143 57,860 579,115 6,876 75.907 595,459 8,143 95,848 536,720 684.579 645,118 678,242 640,711 Uabllltles Creditors.. amounts falling due wiihin l year 15 65,562 82,877 59.226 78,471 Net current 355ets 619,017 562,241 619,016 562,240 Total assets less curyent Ilabllltles 619.7CrfI 564,334 619,7fy) 564,334 334.557 359,527 334,557 359,527 Net èssets 18 285,143 204,807 285,143 204,807 Funds Restricted fvnds Unrestricted funds.. DesSgnated funds General funds 19 5.633 6,452 5,633 6.452 2,093 196.262 2,093 196,262 278,827 278,827 Total charlty fvnds 285.143 204,807 285,143 204,807 These accounts have been prepared in accordance wilh the special provisions appllcable to companles subject to the small cornpanie5' regime. Approved by the trustee5 on 26 October 2021 and signed on their behalf bv Stephen Carter Trustee Vaios Koukouletsos Trustee Page 24 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Consolidated statement of cash flows 2021 2020 Cash used in operating activities: Net movement In fvnds Adju5tment5 for. Depreciation charge5 Interest from investments Decrease I lincreasel in stock Decrease / lincreasel in debtors Increase / Idecreasel in creditors Increase / Idecrea5el in provision for liabilitie5 80,336 22,601 1,410 11,1361 1.267 16,8841 117,3151 124.970 1.640 11.2761 11,1391 32,999 145,2431 17.288 et ¢a5h provlded by operatlng artNltles 32,708 26,870 Cash fl¢)ws from Investln8 artfvltles.. Interest frorn investments 1,136 1.276 Net ¢a5h provlded by Investlng xtfvStbes 1.136 1,276 Increase In cash and cash equlvalents In the 33,844 28,146 Cash and cash equivalents at the beginning of the year 579,115 550,969 Cash and tash tqulvalents at thè ènd of the ￿ar 612,959 579.115 The Ihariiy has not provided an ana￿$1$ of chan8es In net debi as it does not have any lon8 term financlng arran8emenis. Pa8e 25 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements Accountirbg policie5 al Basis ot preparation The financial Statements have been prepared in accordance with Accounting and Reporting by Charitie5'. Statement of Recommended Prartice applicable to charilies in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK anij Republic ol Ireland IFRS 1021 leffective I January 20191- (Charities SORP IFRS 10211. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2W6. Solent Student5. Union meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially reco8nised at historical cost or transattion value unless otherwise stated in the relevant accounting policy note. bl Group attaunts These financial statements tonsolidate the results of the charitable tompany and its wholly-tswned Icontrolledl subsidiary. Solent Student5, UnioTh Trading timited. on a line by line basis. Transaction5 and balances between the charitable company and its subsidiaries have been eliminated from the tonsolidated linantial statements. Balances between the two tompanies are dis£losed in the notes of the charitable company's balance sheet. A separate statement ol financial artivities, or incorne and expenditure account, for the charitable company itself is noi presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Cornpanie5 Act 2CKI6. l Golnl concem bas15 of accountlng The accounts have been prepared on the assumptioTh that the tharity is able to tontinue as a goin8 concern, which the trustees consider appropriate having regard ro the current level ol unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a Roin% concern. dl Income Income is recognised when the charity has eniiilemeni to the funds. any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income from the 8overnment and other 8ra￿s, whether 'capital' 8rants or 'revenue' grants, is reco8nised when the charity has entitlement to the funds. any performance conditions attached to the grants have been met. 11 is probable that ihe income will be received and the amount can be measured reliably and 15 not deferred. Incorne received in advance of provisitin of advertising and events is deferred uThtil criteria for income recognition are met. Pa8e 26 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements Accounting policie5 Icontinuedl el Donated services and taalities Donated professional 5ervice5 and donated facilitie5 are reco8Thi5ed a5 illcotne when the charity has control over the item. any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item. is probable and the economic benefit can be rnea5ured reliably. In accordance with the Charities SORP IFRS 1021. 8eneral volunteer tirne is not recognised. The Solent Students, Union buildin8 is owne(I by 5olent University and provided at £nil consideration. Therefore a donation in kind and corresponding expenditure is recorded in the financial statements for rent in kind assessed as the market raie of the square metres provided lsee note 31. fj Interest welvable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity.. this is normally upon notification of the interest paid or payable by the bank. gl Fund5 accounting Unrestricted funds are available to spend on auivities that further any of the purposes of the £harity. Designated lund5 are unrestricted ol the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Aesiritted funds are donations which the donor has specified are to be solely used lor partitularly areas of the tharity's work or lor specilit projects bein8 undertaken by the charity. h) Expendlture and Srrecoverable VAT Expenditure is reco8nised once there is a Itgal or tonstrurtive oblieation to make a payment to a third parry, it is probable that settlemeThi will be required and the amount of the obligation can be measured Irrecoverable VAT is charBed as a cost a8ainst the attivity for which the expenditure was incurred. 11 Allocatlon of support Costs Support cosis are those funrtions thai assist the work of the charity but do not direttly undertake charitable a£tivities. Governance costs are the costs as50Clated with the governance arrangements of the charity. including the costs of complying wilh constitutional and sratutory requirements and any costs associated with the strategic management ol the chariVs activities. These costs have been allocated between cost of raising funds and expenditure on charilable activities on the basis of staff COSts. as follows.. 1021 2020 14% 86% Raising funds Charitable activities Pa8e 27 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements Accountirbg policie5 Icontinuedl jl Tangible fixed assets Depreciation is provided at rates calculated to write down the cost of each asset to it5 estimated residual value over its expected useful life. The depreciation rates in use are as follows.. Welcome Centre Union furniture Motor vehicles 20% straight line 20% straight line 2￿ siraight line Iterns ol equipment are capitalised where the purchase price exceeds £5(￿. kl Investment in 5ub51dlary undertaklngs The charitable company has one wholly owned subsidiary, Soleni Siudents. Union Tradln8 Limited, (registered company number 103532711. The subsidiary is used for non-primary purpose trading activiries. The subsidiary undertaking is valued ai cosr less any cumulative impairment losses in the tharitable tompany's attounts. 11 stock Siock 15 included at the lower of cost or net realisable value. Donated items of st¢xk a￿ recogni5ed at lair value which 5s the amouni the charity woultl have been willin8 io pay for the items on the open market. ml Debtors Trade and other debtors are recognised at the Settlement amount dye after any trade discount ollered. Prepayments are valued at the amount prepaid net of any trade tliscounts due. n) Cash at bank and Sn hand Cash at bank and cash in hand includes cash and short term hi8hly liquid investments with a short rnaturity of three rnonth5 or less from the date of acquisition or openin8 of the deposit or sirnilar account. ol Credltors Creditors and provisions are recognised where the tharitable cornpany has a present obli8atitsn resulting from a past event rhat will probably resulr in rhe transfer of funds io a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are norrnally recognised at their settlement amount after allowin8 for any trade discount5 due. pl Flnanclal Instruments The group and charitable compatby only have financial assets financial liabilities of a kind that qualify a5 basic financial in5trurnent5. Basic financial instrument5 are initially recogni5ed at transaction value and subseouently measured ai Their settlement value wilh the exception of bank loans which are subsequently recogni5ed at 3mortised cost U51ll8the eflectwe interest method. ql Defined contribution penslon stheme The company operates a defined contribution pensKFn scheme for its employees. There a￿ no further liabilitie5 Other than that already recognised in the SOFA. Pa8e 28 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements Accountirbg policie5 Icontinuedl rl Defined benefit pension scheme Solent Students, UThion participates in the Students, Union Superannuation Scheme. a defined benefit pension scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualtfied independent actuary with the rates of contribution payable being determined by the pension Scheme trustees on the advice of the actuary. The Scheme operaies as a pcM)led arrangement. wirh contributions paid at a centrally agreed rate. As a consequence, no share of the underlyin8 assets and liabilities can be directly attributed to Stslent Students, Union. Under the terms of FRS102. the discounted present value of future cash flows under deficir funding arrangement is in Wviuu (i tt > O(i 04 (L O ¢Q SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements Net movement in lunds Thi5 IS stated after charging.. 2021 2020 Depreciation Payment5 under operating lease5 Trustees, remuneration Isee note 201 Trustees, reimbursed expense5 (see note 201 Auditors, remuneration.. Statutory audit lextludin8 VATI Other services 1.410 3,830 36,672 1.692 1,640 3,830 66,S71 3,515 7.965 600 8,035 J,558 Staff costs and numbtrs Staff costs were as follow5.. 2021 2020 Salaries and wages Social security costs Pension costs 312,993 19,529 15,784 342,388 22,210 19,117 348.306 383,715 No employee earned more than £60,(thl dvrin8 theyear. The key management personnel of the charitable company comprise the Trustees, Chief Executive, Finance Manager, Activities. Evenis & Income Manager, Representation Advice & Democracy Manager, and Communications Mana8er. The total employee benefits of the key management personnel were £171,23712020.. £176.8101. 2021 2020 Average number of employee5 Ifull-time equivalentl 15 17 Taxatlon The charity is exempt from corkM)ration tax as all its income is charitable and is applied for Iharitable purposes. Pa8e 35 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements 10. Tangible fixed assets The group and the charity Welcome Centre Union furniture Motor vehicles Total Cost At l August 2020 and at 31 July 2021 6.382 11.151 16,187 33,720 Depreclatlon Al l August 2020 Charge lor the year 4.289 1,410 11.151 16,187 31,627 1,410 At 31 July 2021 5.699 11.151 16,187 33,037 Net book value At 31 July 1021 683 At 31 july 2020 2.093 2,093 Pa8e 36 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements 11. Subsidiary undertakings Solenr 5ttsdents' Union Troding Limited The charitable company owns the whole of the IsS￿ed share capital 11 ordinary £1 share) of Solent Students, Union Tradin8 bmited, a company reRlStered in En8land and Wales. The subsidiary is used for non-primary purpose traijing activities. All activities have been con501idated on a line by line basis in the statemenr of financial activifies. Available profits are donated io the charitable company. A summary of the re5uIt5 of the subsidiary 15 Shown below: 2021 2020 Tumover 34.576 82,842 Cost of sales 798 36 Gross profft 33,778 82,806 Adrninistrative expen5 19,351 42,408 Profit on ordlnory art￿ltIeS before taxation 14.427 40,398 Tax on profit on ordinary activities Profit lorthe flnanclal year after iaxatlon 14,427 40,398 The ag8re8ate tsf thÈ ass￿5. liabilities and lund5 was= 2021 2020 Assets 22,364 22,363 48,510 48,509 Funds 12. Parent charlty The parent charity's gross income and the results for theyear a￿ dixlosed as follows.. 2021 2020 Gross income Results lor the year 596.283 80.336 668,719 22,601 Pa8e 37 SOLENT STUDENTS. UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Note5 to the financizl statements 13. 5to¢k The £ro¥p 2021 The charhy 2021 2020 2020 Shop stock 6.876 8.143 6.876 8,143 14. Debtors The group 2021 The charlty 2021 2020 2020 Trade debtors Accrued income Prepayments Intercompanv Other debtors 4,657 35.950 16.469 2,3¢JO 40,321 18,859 14A27 3,030 35,950 16,469 40,399 40,321 18.859 784 64,744 57,860 75,907 95,848 15. Credltors: amounts duè w￿h0n l year Th* group 2021 The charlty 2021 2020 2020 Trade creditors Taxation and social security Other crediiors Accruals Deferred income Isee note 161 14,718 9.403 4,819 Z9,452 7,170 18.169 8.736 3.225 51,289 1,458 14,718 7,502 4.819 27,952 4,235 17,149 8,736 3,225 49,163 198 65,562 82,877 59,226 78,471 16. Deferred Incorne The group Z021 The tharity 2021 2020 2020 At l August 2020 Oeferred during the year Released during the year 1.458 7.170 11.4581 58,835 1.458 158,8351 198 4.235 11981 22,ICKJ 198 122,1001 At 31 July 2021 7,170 1.458 4.235 198 Deferred income relates to events and advertising income recebved in advance. Pa8e 38 SOLENT STUDENTS, UNION CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Notes to the finanaal statements 17. Provisions for liabilities: defined benefft pension scheme liability The group and the charlty The Union is a ParticiparinE Employer in the Studenrs. Union Superannuation Scheme. which is a defined benefit xheme whose membership con515ts ol ernployees of students, urnions and related bodie5 throughout the United Kingdom. Benefits in respect ol service up to 30 September 2003 are accrued on a "final salary" basis. with benefits In respeu of serylce from i ottober 2CK)3 accruln8 on a Career Average Revalued Earnings ICAREI bas15. The most retent Triannual Valuation of ihe Scheme was tafiied out as at 30 June 2019 and showed that the market value of the Scheme's assets was £119.1￿,(￿l20l6.. £101.131.0￿) excluding AVC'S and insured pensioners with these assets represenrin£ 46%12016.. 46%) of the value of benefits that have accrued to members. The deficit on an on80ing funding basis amounted to £140,900,0￿ 12016., £119,7CKI,0001. The 2019 valuation shortfall recovery plan requlres a monthly contributlon requlrement by each Participating Ernployer up to 30 June 2033 increasing by S% each year, but with a one-off 8% increase for 2021122. This is to cover additional liabilities resultin8 Irom the discovery of a historical change to the pension benefits whi