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2021-07-31-accounts

Charity Registration No. 1153573

Company Registration No. 8659862 (England and Wales)

BOLTON STUDENTS' UNION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

BOLTON STUDENTS' UNION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees P Chapman G Waugh C Kannangara R Davies N Tiwari (Appointed 1 August 2020) I Savage (Appointed 1 September 2020) Directors A Sachdeva (Resigned 1 July 2021) P Chapman N Tiwari (Appointed 1 August 2020) J Horrocks (Appointed 1 August 2020 and resigned 31 August 2021) General Manager J Galligan Charity number 1153573 Company number 8659862 Registered office Deane Road Bolton BL3 5AB Independent examiner F Mazloomian & Co 73-75 Princess Street Manchester M2 4EG

BOLTON STUDENTS' UNION

CONTENTS

Page
Trustees' report 1 - 3
Statement of trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Statement of cash flows 8
Notes to the financial statements 9 - 19

BOLTON STUDENTS' UNION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2021

The trustees, f our of whom are also directors for the purposes of the Companies Act , present their report and accounts for the year ended 31 July 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Union's constitution , the Companies Act 2006 and “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)”

Objectives and activities

The Union 's objects are the advancement of education of students at the University of Bolton for the public benefit by: (1) Promoting the interests and welfare of students at the University of Bolton during their course of study and representing, supporting and advising students; (2) Being the recognised representative channel between students and the University of Bolton and any other external bodies; and (3) Providing social, cultural, sporting and recreational activit i es and forums for discussions and debate for the personal development of its students.

The policies adopted in furtherance of these objects are (1) To provide services and facilities for Members; (2) Establish, support, promote and operate a network of student activities for members. There have been no changes in these policies during the year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Union should undertake.

Achievements and performance

The level of Block Grant income from the University remained unchanged during the year. However, th e Union has continued to provide a full range of activities including commercial activities, societies, advice, welfare and represen t ation for the benefit of the students.

Financial review

Due to Coronavirus lockdown restrictions, during the financial year the Union was only able to provide a very limited amount of trading facilities. The financial impact of the lockdown was mitigated as a result of the Job Retention Scheme Grants provided by the central government. The Union's pension liability, as in the previous year and in compliance with FRS 102 accounting standard, has been reflected on the balance sheet. The financial position reflects the 2019 actuarial pension scheme valuation. As a result, the financial position of the Union continues to show a net liability.

It is the policy of the Union that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Union’s current activities while consideration is given to ways in which additional funds may be raised .

The Union aims to: Help students to acquire new skills and discover new experien c es ; Create and maintain a social space for students; Provide support to students; Listen to members and react to the issues that affect them; Be financially responsible.

BOLTON STUDENTS' UNION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2021

Structure, governance and management

The Union is a company limited by guarantee, as defined by the Companies Acts 2006 - Company No 8659862. The Union is governed in accordance with its constitution, as set out in its Memorandum and Articles of Association, and has been registered with the Charity Commission - Charity Registration No 1153573.

Bolton Students' Union (the "Union") is a Students Union within the meaning of the Education Act 1994. The Union is an incorporated association and as such is distinct and separate from the University of Bolton Higher Education Corporation ("the University"). The Union is devoted to the educational interests and welfare of its members.

The Union will seek at all times to: (i) ensure that the diversity of its membership is recognised and that equal access is available to all members of whatever origin or orientation; (ii) pursue its aims and objectives independent of any political party or religo u s group; and (iii) pursue equal opportunities by taking positive action within the law to facilitate participation of groups disc r iminated against by society.

The const itution has been structured to give the Board of Trustees reasonable authority to manage the affairs of the Union in a professional manner. The members enjoy the right, which must be exercised in accordance with charity law, to elect a propo r tion of the Trustees and to dismiss all of the trustees. The Board of Trustees will give the utmost consideration to the views of members.

Under the Education Act 1994, the University of Bolton has a statutory duty to ensure that the Union operates in a fair and democratic manner and is held to proper account for its finances. The Union therefore works alongside the University of Bolton in ensuring that the affairs of the Union are properly conducted and that the educational and welfare of the Union's members are met.

The University has no obligation whether direct or indirect in respect of debts and liabilities of the Union, nor does it have any obligation to contribute in any winding up or dissolution of the Union. The requirement of The Governors to approve and periodically review (at intervals of not more than 5 years) the Constitution does not in any way imply that there is a common identity of the parties.

The trustees , f our of whom are also directors for the purpose of company law, and who served during the year were:

P Chapman G Waugh C Kannangara R Davies A Sachdeva N Tiwari J Horrocks I Savage

(Resigned 1 July 2021) (Appointed 1 August 2020) (Appointed 1 August 2020 and resigned 31 August 2021) (Appointed 1 September 2020)

BOLTON STUDENTS' UNION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 JULY 2021

The trustees shall be made up of the following persons: (a) the President (elected full time officer) who shall, by virtue of that presidency, be the Sabbatical trustee. (b) No more than two elected Student Trustees. (c) Not more than five University Trustees, and (d) Not more than one NUS Trustee.

None of the trustees has any beneficial interest in the company. Two of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The following served as directors during the year:

P Chapman A Sachdeva (Resigned 1 July 2021) N Tiwari (Appointed 1 August 2020) J Horrocks (Appointed 1 August 2020 and resigned 31 August 2021)

I n accordance with the constitution the Union has established the following: (1) The Board of Trustees - Responsible for the management and administration of the Union. (2) The Student Council - Sets policy of the Union and recommends strategic direction to the Board of Trustees.

The trustees have assessed the major risks to which the Union is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The Students' Union receives a block grant from the University of Bolton and occupies part of a University building. The University pays for certain utilities, security and cleaning staff. The Students' Union continues to generate funds from various trading activities. However, the Union is dependent on the University's support.

The trustees' r eport was approved by the Board of Trustees.

N Tiwari Trustee Dated: 1 November 2021

BOLTON STUDENTS' UNION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2021

The trustees, four of whom are also the directors of Bolton Students' Union for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Union and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Union and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BOLTON STUDENTS' UNION

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF BOLTON STUDENTS' UNION

I report to the trustees on my examination of the financial statements of Bolton Students' Union (the Union) for the year ended 31 July 2021.

Responsibilities and basis of report

As the trustees of the Union (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Union are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Union’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Union’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

F Mazloomian & Co

Chartered Accountants 73-75 Princess Street Manchester M2 4EG

Dated: 1 November 2021

BOLTON STUDENTS' UNION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2021

2021 2020
Notes £ £
Income and endowments from:
Donations and legacies 3 298,191 289,205
Other trading activities 4 11,320 193,737
Other income 4,000 3,333
Total income and endowments 313,511 486,275
Expenditure on:
Raising funds 5 112,953 303,056
Charitable activities 6 200,479 163,633
Total resources expended 313,432 466,689
Net income for the year/
Net incoming resources 79 19,586
Other recognised gains and losses
Actuarial loss on defined benefit pension schemes - (167,719)
Net movement in funds 79 (148,133)
Fund balances at 1 August 2020 (799,340) (651,207)
Fund balances at 31 July 2021 (799,261) (799,340)

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

BOLTON STUDENTS' UNION

BALANCE SHEET

AS AT 31 JULY 2021

Notes
Fixed assets
Tangible assets
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
Provisions for liabilities
16
Net liabilities
Income funds
Unrestricted funds		 2021
£
£
1,319
5,927
8,420
45,269
59,616
(13,556)
46,060
47,379
(846,640)
(799,261)
(799,261)
(799,261)		 2020
£
£
4,182
8,486
7,678
65,076
81,240
(9,898)
71,342
75,524
(874,864)
(799,340)
(799,340)
(799,340)

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 July 2021.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Trustees on 1 November 2021

N Tiwari Trustee

Company Registration No. 8659862

BOLTON STUDENTS' UNION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
22
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
£
(19,807)
-
-
-
(19,807)
65,076
45,269		 2020
£
(3,954)		 £
4,264
(3,954)
-
310
64,766
65,076

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

Charity information

Bolton Students' Union is a private company limited by guarantee incorporated in England and Wales. The registered office is Deane Road, Bolton, BL3 5AB.

1.1 Accounting convention

The accounts have been prepared in accordance with the Union's Constitution, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The Union is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Union. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The Students' Union receives a block grant from the University of Bolton and occupies part of a University building. The University pays for certain utilities, security and cleaning staff. Although the Students' Union continues to generate funds from various trading activities, it will always be dependent on the University's support.

There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body. The financial statements have therefore been prepared on the going concern basis.

At the time of approving the accounts, the trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees' continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Income

Income is recognised when the Union is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Grants receivable from the University of Bolton are credited to the SOFA in the year in which they are receivable. Any grants which are received in advance of the financial year to which they relate to are treated as deferred income.

Donated facilities provided by the University of Bolton are included at the estimated cost/value to the charity where this can be quantified.

1.5 Expenditure

All expenditure is accounted for on an accrual basis and is stated net of VAT.

Costs are allocated between the expenditure categories of the SOFA based on usage of the resource.

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings

15%-33% per annum

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the Union reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The Union has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Union's balance sheet when the Union becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Union’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Union is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

On 1 November 2014 the Union established a defined contributions pension scheme with NEST in accordance with auto-enrolment requirements. Contributions are charged in the accounts as they fall due.

The Union also participates in the Students' Union Superannuation Scheme, a defined benefit 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 qualified independent actuary with the rates of contribution payable being determined by the Trustees on the advice of the Actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate.

The interest element is determined by multiplying the defined benefit liability by the discount rate, taking into account any changes in the defined benefit liability during the period as a result of contribution and benefit payments. The interest is recognised as expenditure for the year .

The defined benefit pension liability in the balance sheet comprises the present value of the defined benefit obligation using a discount rate .

1.13 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

2 Critical accounting estimates and judgements

In the application of the Union’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

4
5		 2021
2020
£
£
Donations and gifts
24,000
24,000
Grants receivable for core activities
274,191
265,205
298,191
289,205
Grants receivable for core activities
Recurrent grant from University of Bolton
240,000
240,000
Job Retention Scheme Grants from Central Goverment
34,191
25,205
274,191
265,205
Other trading activities
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
Income from t rading activit ies
11,320
193,737
Raising funds
2021
2020
£
£
Trading costs
Other trading activities
7,235
109,739
Staff costs
61,684
95,804
Depreciation and impairment
2,863
7,693
Support costs
41,171
89,820

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

5 Raising funds (Continued)
112,953 303,056
6 Charitable activities
Representat Student
Representat		 Total
ion Activities
ion
2020
2021 2020
2020
£ £
£
£
Staff costs 89,608 -
98,014
98,014
Other costs 6,080 517
12,435
12,952
95,688 517
110,449
110,966
Share of support costs (see note 7) 104,791 245
52,422
52,667
200,479 762
162,871
163,633
7 Support costs
Support
Governance		 2021 2020
costs costs
£ £ £ £
Staff costs 70,375 - 70,375 69,148
Depreciation - - - 816
Rent and other costs 75,587 - 75,587 72,523
145,962 - 145,962 142,487
Analysed between
Trading 41,171 - 41,171 89,820
Charitable activities 104,791 - 104,791 52,667
145,962 - 145,962 142,487
8 Net movement in funds 2021 2020
£ £
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets 2,863 8,509
Operating lease charges 1,570 1,570
Affiliation fee - National Union of Students 6,011 9,160

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

9 Trustees

The full time elected Sabbatical Officers , A Sachdeva until 30 June 2021 and N Tiwari from 1 July 2021, are the only members of the Board of Trustees to receive any remuneration. Their remuneration during the year amounted to £1 8,168 (2020 £1 8 , 168 ). Employer pension contributions during the year amounted to £Nil (2020 £Nil). T ravel expenses which were reimbursed to trustees amounted to £Nil (2020 £44) .

10 Employees

Number of employees

The average monthly number of employees during the year was:

Administration, management and trading activities
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
10
2021
£
183,244
13,323
25,100
221,667		 2020
Number
22
2020
£
223,030
14,783
25,153
262,966

There were no employees whose annual remuneration was £60,000 or more.

11 Taxation

For tax pu r poses, the Union has charitable status and as such is exempt from corporation tax on its charitable activities. Accordingly, there is no taxation charge in these accounts.

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

12
Tangible fixed assets
Cost
At 1 August 2020
At 31 July 2021
Depreciation and impairment
At 1 August 2020
Depreciation charged in the year
At 31 July 2021
Carrying amount
At 31 July 2021
At 31 July 2020
13
Stocks
Finished goods and goods for resale
14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 Fixtures and fittings
£
196,943
196,943
192,761
2,863
195,624
1,319
4,182
2021
2020
£
£
5,927
8,486
2021
2020
£
£
331
240
466
192
7,623
7,246
8,420
7,678
2021
2020
£
£
2,159
1,940
385
478
3,795
2,605
7,217
4,875
13,556
9,898

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

16
Provisions for liabilities
Notes
Retirement benefit obligations
17		 2021
£
846,640
846,640		 2020
£
874,864
874,864

17 Retirement benefit schemes

Defined contribution schemes

The Union operates NEST, a defined contribution pension scheme , for all qualifying employees. The assets of the scheme are held separately from those of the Union in an independently administered fund. The amount of contributions payable by the Union for the year in respect of the scheme was £7,820 (2020 - £6,957).

Defined benefit schemes

The Union participates in the Students' Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students' unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a "final salary" basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual.

The most recent Valuation of the Scheme was carried out as at 30 June 201 9 and showed that there is an ongoing funding deficit.

The 201 9 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 1 4 years and will increase by 21.40% in October 2021 and at least 5% each year thereafter . These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates will be formally reviewed following completion of the next Valuation due with an effective date of 30 June 20 22 . 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 compliance with FRS 102, the liability has been calculated to represent the net present vlaue of the future contributions over 14 years to clear the funding deficit.

Key assumptions for pension liability recognition:

Key assumptions for pension liability recognition:
2021 2020
% %
Discount rate 2 2.0
Expected rate of increase in employer contribution 5 5

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

17
Retirement benefit schemes
Amounts recognised in the Statement of Financial Activities:
Net interest on defined benefit liability/(asset)
Deficit on actuarial valuation
Total costs
The amounts included in the balance sheet arising from the Union's
obligations in respect of defined benefit plans are as follows:
Present value of defined benefit obligations
Deficit in scheme
Movements in the present value of defined benefit obligations:
Liabilities at 1 August 2020
Contributions paid
Interest cost
At 31 July 2021		 (Continued)
2021
2020
£
£
17,280
18,196
-
167,719
17,280
185,915
2021
2020
£
£
846,640
874,864
846,640
874,864
2021
£
874,864
(45,504)
17,280
846,640

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

18 Operating lease commitments

At the reporting end date the Union had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
1,520
760
2,280		 2020
£
1,520
2,280
3,800

19 Events after the reporting date

Subsequent to the year end and following lengthy lockdown periods due to Covid -19, the Union decided not to reopen the Vista bar and catering venue for the foreseeable future. No other post balance sheet events have occurred since the period end which require reporting or disclosing in these accounts.

20 Related party transactions

The Union received its block grant and other grants of £240,000 (2020 £240,000) from the University of Bolton. The Union occupies the University's buildings on a rent free basis under informal arrangements. In accordance with the Charities SORP 2015 the trustees have estimated the use of the buildings and the utilities at £24,000 (2020 £24,000). At the balance sheet date, The Union was owed £240 (2020 £240) by the University of Bolton.

21 Ultimate controlling party

The ultimate control of the Union is vested under the Constitution in the members in General Meetings. As such no single person or entity controls the Union.

BOLTON STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

22 Cash generated from operations 2021 2020
£ £
Surplus/(deficit) for the year 79 19,586
Adjustments for:
Depreciation and impairment of tangible fixed assets 2,863 8,509
Difference between pension charge and cash contributions (28,224) (25,130)
Movements in working capital:
Decrease in stocks 2,559 5,208
(Increase)/decrease in debtors (742) 2,101
Increase/(decrease) in creditors 3,658 (6,010)
Cash (absorbed by)/generated from operations (19,807) 4,264