**University of Brighton Students’ Union Management Report 31 July 2021** **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **Contents** |1.|Statement of Responsibility ...................................................................................................................................... 1| |---|---| |2.|Status of audit and opinion ....................................................................................................................................... 2| |3.|Audit findings – Significant risks identified ............................................................................................................... 3| |4.|Other communication requirements ........................................................................................................................ 5| |5.|Impact Assessment of Findings ................................................................................................................................. 7| |6.|Internal controls ........................................................................................................................................................ 8| |7.|Regulatory update .................................................................................................................................................... 9| |8.|Conclusion ............................................................................................................................................................... 10| |Date of audit|August 2021| |---|---| ||| |Finance Staff involved in
audit|Richard Burgess-Gamble| ||| |Date of report|September 2021| **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **1. Statement of Responsibility** As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance. This report highlights the significant findings arising from the audit for the benefit of those charged with governance, as required by International Standard on Auditing (UK & Ireland) 260. Its contents have been discussed with the board of directors/trustees. As auditors we are responsible for performing the audit, in accordance with International Standards on Auditing (UK & Ireland), which is directed towards forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities for the preparation of the financial statements. The contents of this report relate only to those matters which came to our attention during the conduct of our normal auditing procedures which are designed primarily for the purpose of expressing our opinion on the financial statements. Audits are not designed to test all internal controls or identify all areas of control weakness. However, where, as part of our testing, we identify any control weaknesses, we will report these to you. In consequence our work cannot be relied upon to disclose defalcations or other irregularities, or to include possible improvements in internal control that a more extensive special examination might identify. To the fullest extent permitted by law, Knill James LLP will accept no responsibility or liability in respect of this report to any other party and shall not be liable for any loss, damage or expense of whatsoever nature which is caused by any person’s reliance on representations in this report. This report is released to University of Brighton Student’s Union on the basis that it shall not be copied, referred to or disclosed, in whole or in part (save as otherwise permitted by agreed written terms), without our prior written consent. 1 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **2. Status of audit and opinion** |**Status**|Our work is substantially complete and there are currently no matters of which we are aware which would require
modification of our audit opinion, subject to the outstanding matters detailed below.| |---|---| ||| |**Outstanding matters**|•
Review of post balance sheet events until the date of approval of the financial statements
•
Letter of representation to be signed with the financial statements| ||| |**Audit opinion**|•
Our anticipated audit report on the financial statements will be unmodified| 2 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **3. Audit findings – Significant risks identified** ||**Risks identified in our audit plan**|**Commentary**| |---|---|---| |**1.**|**Revenue recognition**
•
Under ISA 240 there is a presumed risk
that revenue may be misstated due to
the improper recognition of revenue|To ensure that revenue has been correctly recognised we have:
•
Carried out analytical review of all income streams
•
Carried out a proof in total review of the Grant Income
•
Carried out cut-off testing on all income streams
•
Conducted substantive testing of bankings, sales invoices and credit notes
**Conclusion**
Our testing has not identified any significant issues with respect to revenue recognition.| |**2.**|**Management over-ride of controls**
•
Under ISA 240 there is a presumed risk
that the risk of management over-ride of
controls is present in all entities|To ensure that we gain reasonable assurance that management over-ride of controls has not
resulted in a material misstatement or fraudulent activities within the financial statements, we
have performed the following tests:
•
Review of accounting estimates, judgements and decisions made by management;
•
Testing of a sample of journal entries;
•
Identification of related parties of the entity and a review of the procedures in place to
ensure that any related party transactions are approved, captured and correctly presented
within the financial statements;
•
Review of unusual significant transactions.
**Conclusion**
Our testing has not identified any significant issues in respect of journal entries, related party
transactions, or management over-ride of controls.| 3 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **3. Audit findings – Significant risks identified (continued)** ||**Risks identified in our audit plan**|**Commentary**| |---|---|---| |**3.**|**Fund accounting**
•
Any funds received with restrictions must
only be spent in accordance with those
restrictions. There is a risk that restricted
funds are spent inappropriately|To ensure that restricted income is correctly recognised and appropriately spent for specific
purposes we have performed the following tests:
•
Substantive testing of source documents for any new restrictions;
•
Discussions held with the finance team in relation to restrictions on income;
•
Review of minutes, etc.
**Conclusion**
All restricted funds were spent in the year, and our testing has not identified any restricted
income inappropriately recognised or expenditure not authorised| |**4.**|**Ultra vires acts**|To ensure that acts have not been carried out without authority, we have performed the following
review:
•
Review of local news for acts carried out without authority;
•
Review of correspondence with regulatory bodies;
•
Review of transactions on a sample basis for potential ultra vires acts.
**Conclusion**
Our testing did not suggest any evidence of ultra vires acts| 4 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **4. Other communication requirements** ||**Issue**|**Commentary**| |---|---|---| |**1.**|**Matters in relation to fraud**|We have previously discussed the risk of fraud with the Trustees. We have not been made aware
of incidents of fraud in the period, and no new issues have been identified during the course of our
audit procedures.| |**2.**|**Matters in relation to related parties**|We are not aware of any related party transactions which have not been disclosed.| |**3.**|**Matters in relation to laws and regulations**|The principal laws and regulations with which the entity complies include:
`o` Charities Statement of Recommended Practice (SORP)
`o` Companies Act 2006.
`o` HMRC
`o` Health and safety and employment legislation
`o` Data protection
We are not aware of any significant incidences of non-compliance.| |**4.**|**Written representations**|Standard representations are to be requested from management.| |**5.**|**Disclosures**|Our review found no omissions in the financial statements.| 5 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **4. Other communication requirements (continued)** ||**Issue**|**Commentary**| |---|---|---| |**6.**|**Going concern**|Going concern is a fundamental accounting concept that underpins the preparation of financial
statements. Under the going concern concept, it is assumed that an entity will continue in
operation and that there is neither the intention nor the need to liquidate the business or to cease
trading.
In order to assess this we:
•
Obtained an understating of the entity’s plans for the future;
•
Reviewed management’s forecasts for at least the next 12 months post the expected signing
date, including plans to deal with the impact of Covid19
•
Reviewed the trustee report relating to the impact of Covid19 on the charity and its trading
subsidiary and the conclusions reached on going concern
**Conclusion**
Nothing has arisen during the course of our work which suggests that management’s use of the
going concern concept is inappropriate.| 6 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **5. Impact Assessment of Findings** Our findings, as detailed in section 6 of this report, have been analysed into the following four categories: |**High**|Considered to be critical, demonstrating fundamental risk or inefficiency, requiring immediate action| |---|---| |**Medium**|The entity may be subject to significant risk or inefficiency, warrants action of management| |**Low**|Minor control or housekeeping issues, whereby improvements could be made to the efficiency of the control environment| |**Advisory**|Points of note for the attention of board and management; no impact on the overall control environment, including any positive
comments| Our review has not identified any matters that are required to be brought to your attention: - The purpose of an audit is to express an opinion on the financial statements - Our audit included consideration of internal control relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control - The matters being reported here are limited to those deficiencies that we have identified during the course of our audit and that we have concluded are of sufficient importance to merit being reported to you in accordance with ISA 265 - If we had performed more extensive procedures on internal control, we might have identified more deficiencies to be reported 7 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **6. Internal controls and other matters** We have considered management’s response to the internal control issues raised following the previous year’s audit and we are content that the issues raised have been appropriately resolved. We have also considered the internal audit report completed in June 2020 and are satisfied that management has responded to the recommendations made. 8 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **7. Regulatory update** ## **Government guidance on Coronavirus** The government has published updated coronavirus related guidance for the charity sector since the lifting of restrictions in July 2021. This covers a number of areas that the charity trustees should consider in response to the ongoing global pandemic. The guidance includes advice on keeping meetings as a remote practice, requirements of extending accounting deadlines and advice on supporting trading subsidiaries facing financial difficulty. Full guidance available here: https://www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector 9 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 ## **8. Conclusion** International Auditing Standard (ISA) 260, as well as other ISA’s, prescribe matters which we are required to communicate to those charged with governance. This document outlines those key issues and other matters arising from the audit, which we consider should be communicated in writing rather than orally, together with an explanation of how these have been resolved. We would like to take this opportunity to thank the board and the finance team for your assistance in completing our audit work. ## **KNILL JAMES LLP** |**Distribution of this report**|Whilst we seek to ensure our audit findings are distributed to those individuals charged with governance, a minimum
requirement exists for our findings to be distributed to all the trustees and those members of senior management with
significant operational and strategic responsibilities. We are grateful for your specific consideration and onward distribution
of our report to those charged with governance.| |---|---| **For further information contact:** 10 **University of Brighton Students’ Union:** Management Report **Period ended:** 31 July 2021 **David W Martin FCA** Partner One Bell Lane Lewes East Sussex BN7 1JU T +44 (0)1273 484933 david@knilljames.co.uk 11 Company Number.. a9628￿)9 Chèrtty Nvrnber IEnEland & Walesl.. 1164033 UNIVERSITYOF BRIGHTON STUDENTS, UNFON ANNUAL REPORT AND FINANOALSTA7EMENTS 31 JULY 2021 Page i UNIVERSITY OF BRIGHTON sfuDENTS' UNION TRUSTeES' ANNUAL REPORT for the yeai ended 31 July 2021 The trustee5 present their report and the financial statements of the university of 8righton Students. Union (which Ss also known as -UUSU" or.the Unlon- and which also Operat￿ under the namÈ"Brighton SU") for the year ended 31 July 2021. The trustees. report serves rhe purpose of both a trustee< report and a dirertor5' report under company law. The financlal ststements have been prepared In attordance with the accounting policies set out In the notes to the financial statements and comply with the charl￿$ govèrning document, the Charities Act 2011. the Companies Act 2CK16 and AccountinE and Reporting,. Statement of Recommended Practice lapplicable to tharities prepaftng theSr ftnanclal stètÈments in accordènce with the Fin8n£lal Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 i55ued in October 2020. OBJEcnvES ANO AcfiviTIES Ch3rliable oblÈL*ive5 The charitible obje£tives for whlch the charitable comp3ny was established are.. The advantement of educatiort ol students at the University of Brighton for the public benefit by.. The promotion of the interests and welfare of Students of Brighton during their course of study and representing, supportin8and advisingstudents,. Recognition a5 the representative Channel between students and the Un￿er$ity of Brighton and any other external bodies,- and The provSslon of social, cultural, sporting and recreational actlvities and forums lor di5cusslon and debatÈ for the pefsonal development of its Students. Charitable artivltles In PUTSUit of these objective5 we 5UPPOrt and represent over 21,LNJO students. We do thi5 bv.. Operatlng a support and advocary Service proY*ding Individual advice and support ID students through the 5tudent5' Union Support SeNite', Workln8 Wlth students and the Unlversity to maintain and Improve the quality of academlc 5￿ppOrt to Students.- Enabling and encouraging deFnocratic participatien in Student leadership elections,. Entouraglng student participatioTh In attivities, events. partnèr5hip5 and societies through Carnpus & Partnershlpteam5' Supportine and developin8 Student collectives and cooperatives to provide meaningful student opporttsnities.. Building communities and facllitatinE engaEement between students?nd local residents.. Working with 5tudentsto run er¢tertainments and events that improve the overall student experiÈn£e.' and Prowdlng èmployment opportunitie5 and training through UBSU fun tèfe5 and 5hDps. Page 2 UNWERSITY OF BRIGHTON STUDENTS, UNIOII niusTEES' ANNL¢AL REPORT Icontlnuedl for the year ended 31 2U21 The trustEes have taken The Charty Commission's guldance on public benefit into consideration in reviewin8 and mana8in8 the objectives and activities of the charity and are satisfled the information presented wlthin this annual report demonstrates UBSU'S public benÈfit. Our Mi55ion is to Moke 5tudÈnt Lrfe better. The use of Volunteers and donated 5er¥kes The charity makes considerable use of the servlces of volunteers in o¥der to not only manage the choritable company at trustee level, but also to deliver activities and outcornes for the benefit of its beneh-ciaries. The charity s also reliant vpon donated services, and those donated Serv￿e5 which can be quantifled. are retO8ni5ed in the financlal statemènt5 05 donations In kind. ACHIEVEMENTS AND peRFORMANCE 2020121 represented the third year of our three-year StrateBic Plan. We made great pro8re$5 a8ainst our f(ve Strategic Themes, 5UPPQrted by the development of our three key Foundation5 de5Plte the challenging environrnent. Our progress was raptured In the recent Student Crowd survey results which ranked UBSU as the third best students, unlon in the UK www studefjtcrowd.cotn. The Flve strate8lcTheme$ Edutation.. Challenge the UnDIErstty to provide our students with the best education possible. We cor*tlnuÈd to work c1(￿e1¥ with collèa8ues acrossthe Unlversltyto try and minirni5e any negative impacts on teaching and learning durin8 COVIO-19 re5trittions. We increased the number of CotsrsÈ RÈpresentative5 from 917 to 96515% increHsel. We 31s0 launched the 5uFvev Superheroes PrDgramrne to gain additlonal insight from students rhrough tsrgeted surveys. We used the feedback from the Course representatives, and Survey Superheroe5. along with feedback from focus groups to dire£tlv influence academic regul3tion5. particularly relating to student a55e&sments. The 'On Your Slde, tafflpaign was launched In January 2021, providing an opportunSty for studÉnt5 to chat to someone about theirtrustrations relating to the impact of COVID-19 restrictions on their Èduciiion experience. The campaign also provlded invaluable insight into the challen8e5 faced by students and this evldence helpÈd u5 lobbythe Universityto ensure an adequ*e safety net was in place. to mitigatè againstthe impactofCOvI￿19. We tontinved to promote the education benefit5 of students, union involvernent with 84.9% of students SnvofvÈd In Students, Union actiwties rete4vlng'8ood' degree5 in Compar￿On to 79.2%of the student5 who are not. PaEe3 UNIVERSITY OF 8RIGNTON STUDENTS. UNION TRU5YEES' ANNUAL REPORT Icontinuedl lor the year ended 31 July 2021 Employabilrty.. Help our students ttand out. We contlnued to embed ernployability skllls Into thetraining and developrnent of all our volunteers. Otrr l.OOO+ socletyleaders, course reps, and post8raduote rese8r£h reps all havea section on employability skills ernbedded into their trainln8. On completlon of their role at the end of the academic year they a150 receive a certificate that outlines all of the ernployabilityskills they have gained throu8houtthe year. We rain an online Course Rep conference with 60 attendees thai had speakeTs Irtsm across the UX discussing tOPKS such as e4u81ity, race, student rl8hts and how to show case their experiènce when applyin8 for jobs. In partnership with funding from Santander Universitie5we launched an LGBTQ+ Leader5hipTr4ining Programme where LGBTQ+ students Bttended a two day leadership trainln8 course followed by a number of small group coachin8 se55ions. In¢lu5Ne.' Create a UnK)n that is wekomln8 and relevant to all our Stsjdents. We elected our first Post Graduate Officer. This role was developed in re5POn5e to analysis which suggested post graduate students are under-represented across the Vnwersityactivity. We maintaihed a wide range of Societles with 1,2(K> artbve members. A $1Sght reductltsn in the nurnber of soaeties signtfitantly outperformed the trend acr055 many students, unions where in some cases so£lety activity almost entirely ceased. We purchased profession81100rn license5whFch allowed them to meet a5 often 35 they wanted. While it 15 PQ55ible online event5 diluted the quallty of socSety interaction, It broadened the accesslbllity to a wider demoBraphlcof student and provlded an invaluableoutlet for students constrained by COVICI-19 restrictions. BSU embraced onlrne technologie5 to increase accessibiltty to many of itsother servKes. Online student 5UPPOrt appointments are now available. and rhis servicè will be maintsined to enhance the physical 5ervi¢e when Uni¥ers actlvlty return5 to campus. We collaborated with the University to address Race and Faith issue5, Particularly focusSn8 on terminology and highlightlng areas of improvements needed Otsr role helped VBSU further our reputafion for beln8 a legitimate voice on behalf of students. We launehed an LG8TQ+LeadershlpTrainlng pro8r3rnmedurSn8the year. whichwasfullysvb5crsbed with è large We continued to hi8her-than-ave¥a8e engagement In our servlces frorn 5tudÈnts speclfic demoEraphlcs, such as Black, Asian and disabled students. Page4 UNIVERSJTY OF BRIGHfoN STUDENTS. UNION TRUSfEES' ANNUAL REPORT (Continued) forthe year eDded JI July 2021 Wellare: Support OUT students with their mental health and general wellbein8. We recognized the fflental and physlcal strains COVID-19 placed on students and reached out to every student individually to make sure they were aware of the 5UPPOrt they could access through UBSU, the Vnwersity and anv other thlrd partle5. Contact bya friendly voice fromthe UBSU reminded the student5 thEy were not alone and ihaiwe are about th￿rW￿lIbeln£. About IO% of students responded to the initial rnessage, with many fflore rèarhin8 Out a tew weeks or months later when they had quÈstlons. We a150 ran several virtual wellbeing act¢vities throu8hout the year. providin8 further support during a challenglng period. Our campaign to raise awareness of Sexual Harassmerit 8ainÈd Significant momentum and importance overthe year, and we ran seven fully Subscribed vlrtual tonsÈnt workshops. Our'on Your Side. campaign also provided Information and 5VPPOrt for student5 seeking help with houslng and mental wellbein8 during the year, wlth success in achiewing rent refunds and rebates for students in Unniersity and private sectDr accommodation. Commuftitation: 8eclear andtransparent about whowe areand whatwe do. The importance of our online communicatlon channels has never been mole important than the last year. We took the opportunity to invest in our online communication platforms. purchaslnÉ professional Zoom licen5es and using online events platforms. These have been used to host SDciety events, as well as several UBSU everyt5, includin8 the UBSU Awards Night. We developÈd a new Freshers, websste with acce55to an online Freshers, Fair platform. We also made si8nificant improvements to our e)tiSting website, which as a result ha5 seen a 25% increase hit5 to c. 100,000 per month. We have also presented ar a number of national conferences to distlJ55 the impact of the paTrdemic on the Student experience. and how the Union h35 responded to it. TheTh¥eeFouI￿OfiOns The five strategic thernes are supported by three key foundations. We h•¥e developed these foundètion5 throughout the year to ensure they besE SUPPOrtthe strategic themes. OurPeople Our people are UBSU'S m05t valuable a55et. We Invested significant time and resource tT8nSltioning staff into remote working environrnents during the period of COVID-19 phY￿¢al restrictions. We are constantly reviewln8 these arrangements the airn c>f introducing the rnajority of our staff back into physical spaces durlng 2021122 and where possible, adoptin8 hybrid working. The welfare of our staff wlll rernain the most important Snfluente on all these Staffing declslons, and our staff survey check Sns showed high levels of satisfaction withthe arranEements. support and communication In place. We reCo￿lse the Importance of both the rnental and physlcal wellbeingof our staff. We revlewed our Employee Assistance Programme durinÉ the year and will be launching a new prograrTime in 21122, provKlinB many additional Services to our staff. Organrsational ¢￿￿Ure can also have a SiEnificant impact on the wpllbein8 of our staff and we continue to pro-actively monitor all areas of the organlzation to ensure we Create a p051tive and inclusive eavironrnent. We are aware of the importance ol good £ommvThication, especially during thi5 last year when physical cornmunication has been lirnited, and we have continued to rnaintain excellent communication with all our staff (those working and those on Furlou8h Leavel to ensure that everyone Is kept up to date on any developments and Pages UNIVERSITY OF BRIGKION STUDENT5, UNION TRUSTEES, ANNUAL REPORT (Continued) for the year ended 31 Juty 2021 declsions mode by the GovernrnenL the University. or U85U. We will continue to listen to our staff and take whatever action we ran to ensure theyfeel Eomfortable wlth theiFworkln8 arran¥ernents. We are commltted to proMding c13rity to ourpeople and have updated several HR related pollclesand procedure5. All staff have been sssued wfth new Terms and Conditions of Employrnent wh¢ch 3re in line with the latest employment legislation. Whilst COVID-19 has reduced our ability to provide as tnany empk)yment opponunitles for students ès we normally do, we have prtractively created employment opportunities for a limited number of sttrdentswherever possible. We anticipate being able to increase the nurnber of students we employ a5 COVID-19 restrictions are removed, our cafes and Shops re-open and physical act￿ltY on campus intrÈa5es. Our commerclal income ha5 sIEniflcantly detre#5ed during the COVID-19 pandemlc. however, we have avoided a review of 5tsffinB levels through the utillz?tion of the Government lob Retent￿n Scheme and by re-deploying staff wherever possible. Wè took opportunities presented by natural staff turnoverduring the year to Teview the structure of ourfinaKe team and our student engagement team. A5 3 result we created a part tirne finance intern role for a current Vniverslty of Brighton 8usines5 School Sttjdent, and two Student EnEaEement Team Sntern role5 for recent 8raduates. We provide a comprehensive tralning program for all our 5tsff and have taken advantage of maTry of the additional on-line learning tools that have become avallable 5incethe start of COV1￿19. We rÈco8nisethe Imrortènee of Intlu5ion and diversity throughout ourteam ènd have appointed an external body to complete a Diversity Audit to look at all areas of the organi5ation. The results of the audlt wlll Influence the development of our People Strategv. R¢sponslble Unlon We have maintained a stable financial posltSon desplte COVID-19 and a $18nificant decrease in Incorne. Thls was achieved throu8h responsible decision rnaking and accurate and timely financial repcrting. The Development Fund and M￿nIrnurn Reserve Fund are likely to be critical over the next lew years as UBSU adjusts to new operating environmÈnts as a ￿SuIt ofCOVID-19 and potentlal national and international polltical decSslonsihat Could Impèctthe Unlversity and UBSU. We have fyvlewed. updated ènd introduced policie5 across all areas of g0veman￿ a5 a result of our periodic review timetable. Retsti0Tr5hip with ihe Universlty Our relatlonship with the Unlversity has 8rown even rtronger over the p4st year. with representation on the COVKI Response committees and regular meetlThES Wlth all academic schools and professional dep3rtments. We hav¢ been invited tospeak ata numb2rDf University staff conferencesaboutthe student experiènce during covid and lace nd faith It remalns a pts5it>ve critical friend relatlonshlp that has directly led to P051tiv2 ch8n8es for students. such as the implementation of the no detriment policy and signrflcant reductlDn in accomrnodation costs. Pa8e6 UNIVERSITY OF DRIGHTON sfuDEIITS' UNION TRvsfEES' ANNUAL REPORT Icontinuedl forlhe year ended 31 luty 2021 FINANCIAL REVIEW Financial results of att￿ltIeS and events Total Income for the year was £1.760,023119120- 2,979.0671 which is a decrease of £1,219,044141%1. Income from cafes and 5hop5 decreased by £873.136192%1 whTch re(lects the irnpact of COVID-19 restrictions. Income generated by Societies decreased by £33.656 179%) for slmllar reasons. Entertainments and Events ineome decreased by £212,118199%1 with ne physical event5 taking place. Whilo many onlinp events did tske place, their ability to Eenerate revenue was limited. UB5LI continues tD benefit from the flnancial support of the University of Brighton through the block grant, whlch decrÈa5ed by £54,00015%1. Donations and Grants from other funders decreased b¥ £15,69815%1. £122,542119120- £141.2711 was received from HMRC in the form of COV1[￿19 Job Retention Scherne Grants. Total expendkure fortheyear was £1,737,189119120- £3.433,7181 which 15 a decTease of £1,696,52914YAI. Caféand 5hopexpenditUTedecre3sed by £853,094177%1. Whlle all permanent staff roles were retsined, the lack of actlvity and revenue due to COVID-19 significantly decreased operating expenditure. Academic Experience, Carnpus and CcmmurTrity, and Other Studtnt Activities expenditure decre25ed ￿ a cornbined total of £61,749 15%>. All thÈ5e decreases ieflert UBSi*'s response to COVID-19 either through restrictions enforcing a reductJDn in physical activity, or throu8h UBSU'5 attempt to mana8e ÈxpÈnditure during a perlod of reduced income. Entertainments and Events expenditure decreasÈLt by £100.018 158%) which directly reflect5 the lack of physicalevents. The Provision for Pension deficit Payment5 Incr¢ased by £15,868. reflerting a movement in the interestrate used to discountfuture cash payrnent5. Thi5 was offset bya £74,334 recoveryplan cash paymentdurSn8theyeèr. resultin8 in a total provi5ioTh decrease of £58.466. Funds intreased by £22,83412%1 during the year. These funds will be used to SUPPOrt the transition to a post- pandemi£ envircnment in 21122 and the return totampu5. Theywill also be used to supportthe launch of o new UBSV venue The Minlmum Rtr5erve has been maintained at £1￿.000. in line with the Reserves Pollcv. Cash decreased by £49.025 110%), which mainly refleets the SOFA Surplus for the year1£22,8341. mlnus the decrease In the SU55 Pension provision1£58,4661, minus the Increase in debtor5 4$ sales and marketing 3Cti¥ity 8ains momenturn before the start of 2V221£28,9641. RestNe5 policy Although the charltable company had no free reseNes at 31 July 2021. excluding the pension defl£lt liability of £1.531,692119120- £1,590,158), free re5Erve5 would have been £441,064119120- E476.6961. TheTrustees reviewed the UBSU Reserves Policy in 20121. The policy folk>w5 Charity Cornmlssion guldellnesand consider5the risks associated w￿h it5 artivity and the financial impact of these ri5k5 Qn incorne and expenditure. The r￿leW concluded an appropriate minimum reserve level remalns at *0 less than £IOO.000. At the end of 2020121 UBSU had a minimum reserve of £lOO.000119120- £1(XI,0001 and a Development rÈ5erve 01 £322,926 119120- £349.4531. Development reserves are primarily held to 5UPPOrt One￿ff sirateÉlc projects in li4)e with the strategic plan and society activity throughout the year. It Is possible this fund will also be required to support a deficit 2021122 due to the irnphct of COVID-19. The trustees are committed to rewewit)E the Reserves Policy on an annual basi5. Page7 UNIVERsllY OF BRIGHTON sfuDENTS' UNION TRUfftES' ANNUAL REPORT Icontlnuedl forthe year ended 31 July 2021 Inve51ments pollry The trustees, having regard to the liquidity requirements of UBSU, have kept available funds in an interest- bearing deposlt ac¢ovnt bearing an interest rate of 0.01%. Golng ¢onrern at 31 July 2021, the balance Sheet showed net liabilities of £1.09),629 after Teco8nisin8 the SUSS penslon del￿ liabilityof £1,531,692. In con5iderinEthe golng toncern b3S15 of preparation of the financial statements. the trustees have reviewed the three-yearfinance plan. The plan aims to achieve at lea5ta breakeven position across the threeyears of the plan. The Union's maln income streams are thÈ University of BriEhton in the fomi of subventK)Tr, and commercial ttsding actwity from its outlet5 (cafes and shopsl and student events. The Universlty of Brighton ha5 confirmed its support in the form of è Block Grènt for the year ended 31 Juty 2022 totaling £1,122,OCKI12020121.. £1,067,5(X)l. The Union's £ommeFtial activity provides è diversified 3nd robvst source of incorne. CostS0$50ciated with 8eneratFn8 cofftmercvdl Sncome primarily vary with the levd of commerclal actfvity thus reducing the financial risks assoc￿ted viith thi5 The Union held £449,80J115120- E498,8261 in cash and bank deposlts atthe Ènd of 2020121 and had net current a55ets of £422,926119120- £449.4531. Free reserves aTe tnaintained in low rSsk. hlgh liquidity dep051t account5 ensuring cash will be readilyavailableto supportoperatingactivity. Theprofileof the Unk)n's incoffle. èxpendityre,and tasmow iscloselycorrelated. ensuringthere Jreno perSods of significant netcash outflow. The frustees haveconsidered the Impart¢f COVID-19 and any post-epidemic Impacts and believethe currer*t level of free reserves, along vlith close control of expenditure will be sufficient to mana8e èny decreases in intome over at least the nÈxttwelve rnonths. BSU Enterprise Limited is a trading subsldiarycompany wholly owned by UBSU. The tradin8 S￿b51d1ary norrnally 8enerates a net proflL however, COVID restrlcEions re5uked in Significant reduttions attlvlty and a net lo￿ of £60.599119120- net profit £36,136). Sales revenue was £114.908119120- £1,228,478) and expenditure was £175.508119120- £1.19Z,3421. It 15 anticipated YSU Enterprise Lirnited will return to profit in 21122 as COVID restrictions are removed. off5ettingthe 20121 deficit. On the bas55 of thi5 information. the trustees consider the going concern basls to be appropriate. lknsk management The tlU5tees have a duty to identify and review the risks to which the charity is exposed and to ensure that appropriate coritrols are in place to provide reasonable assurance aEa￿n$t fraud and Èrror. System5 and procedures have been established to mitigate the flnancial and trading risks. Procedures are in place to en5yre £ompliance with health 8nd safÈty legislation in relarion ta staff. volunteer5 and participant5 In all actlvitles of the Union. Page8 UNIVERsrrY OF BRIGHTON STUPEKfs' UNION TRUSTEES, ANNUAL REPORT Icontinuedl for the year ended 31 July 2021 PLANS FOR FufuRE YEARS In 2018119 we created a new three-yeaT Strategic Plan. This plan came to an end at the end of 2020121. The Trustee Board took the decision to deferthe development of a new three-year plan until 2021122. Wewlll uset￿fNe Strate8ic Themes and three Foundations of the existin8 plan to guide our activity durlng 2021122, setting goals and oblectives that align with thi5 plan. We will also aim to tOCU5 our efforts transltlonin8 to a post-pandemlc environment as we return to campus. The followSn8 section outlines the five Strategic Themes of the plan which are sUPPOrted by our thrEe key FoUndat￿n$. The plan 15 underpinned by UB5U's Vision, Mlsslon and Values., Vlslon: All our students have the best experience imaginable Missioth- Makiryg student Ilfe better Values: Supwrtwe, TransparenL *pproachable, Dynarnie. Inclu51ve The five Strate8ic Theme5 Wlthin the plan, developed from student feedback ale outl*ned bebw, with key objective5 for listed underneath each one. These are underpinned by three key Foundation5.' Education.. Challenge the Unpversity to provide our students wlth the best educ*ion possible. Ensure course rep5 ère well trained, supported and ernpowered to make a difference 1¢) their schools. Raise awareness of our education 5upporr seNice. Provide an accessible education support 5ervlce that is responsive to evolv1￿ student needs. Challenge the Univer51ty to en5yre they meet their own strate8ic objective to put our students at the heart of everythin8 they do. Svppx)rt and empower our studpnts to make chanEe happen. Employabllity.. Help our students siand out Help our students to identify and articulate the skllls they develop when being a union volunteer or student staff member. Continue to provide student 5tsff opportunities throughout our organi5ation. Challenge the Univer5iVs Careers Service to en5urE they provide the servke5 that our students want and need. Ensure the development of an empby3bllity ski115 award scheme. In¢lusNe= C¥eate a Unbn ihat Is welcoming and relevant to all our student Create and deliver en8a8ernent plans to provide opportunities lor all Students to engage wlth us. Provide opportunltie5. 50cietie5, communities and events to 5uf( all our studersts, backgrounds, hebbies and Ilfestyles. Get to know our students better in OTder to understand their needs. Create wekorning student spaces on all carnpu5es and contlnue to cèmpai8n for the Ufiiversity to do the sarne. Wellare: Support our students with their mental health and 8eneral wellbeln8. Contit)ualty itnprove awareness of and access to resourtes. support and partner Services. Challenge the Unwer5ty to provrde approprlate seNkes to support our students with mental health contÈrns. ArtNety campaiEll for the rights of our students, inside and ovtside the Universlty community. Communlcatlon- Be clear and transparent about who weareand what WÈ do. Develop è clear brand identity so our students recognise OUT actI￿tieS and 5ervlces, and the quallty of experience we provide. Pège9 UNIVEFL51TY OF BRIGHTON STUDÉNTY UNION TRU￿EE5. ANNUAL REPORT (Continued) for the year enderf 31Jyly 2021 Produce targeted and relevant communication5 to our students. Increase our 5t3ging and officer prèsence across all our campuses. Invest in digital communications to adapt to the evolving needs of our students. We havea150 identified thefollowin8 key Foundatlonsto supportourwork.. OurPeople Create and Implement a People P￿rt to develop ènd 5UPPO¢t our team. Be an employer of thoice and an orÉanlsation people are proud to work for. Ensure our people have upto date knowledEe, skills, and supportto carry outtheir role5. Create a iulture that embod5es our valve and recogntses outstanding work. Provide meanln8ful ernployment for students. Re$ponslble Union Have a decisive, diverse and engaged Trustee Board. Develop robust and transparent governance system5. Spend our money effectivelyto achieve ourStrateEiC Plan. Focus on commercial services to ensure they provide value for money for all. Utilise all appropriate opportunitie5 to inuease our funds to 5UPPOrt our CO￿ objectives. Relation5hlp wilh the UnNersltv Work in collaboration with the University to maintain and strengthen our relatkjnship. Improve our mutual undersrènding of each other. Development an operational agreement between us. Pa8e io UNIVERsfiY OF BRIGTrfroN STUDENTS. UN1014 TRUSTÉES, ANNUAL REPOR7 IContTnuedl forthe year ended 31 Juty 2021 SYRucfuRE, f￿￿ERNANCE AND MANAGEMENY Statu5 and hlstory UBSU 15 a reglsEered charity, and a company limlted by guarantee. not having Share capital. Every member undertakes to contribute an amount not Èx£eeding £1 to the as5Ets of the charity In the event of the ¢harity being wound-upduring the period of membership. orwithin one yeaithereafter. The Union was originally set up by the UnlvÈrsity of Brighton. It created it5 own vnique constitution which wa5 formalty adopted on 30 April 2010 and It was registered as a char5table trust In England and Wales on 25 August 2010. The new charitable tompany was incorporated on 8June 2015. took overall the activitie5 of the charltable trust with Èffect from 31 July 2015, ènd wa5 reElStered a5 a charity in EnEland and Wales on 20 October 2015. U8SU is governed by the ruks and regu&tions Set down in ￿ company Mpmorondum and Articles of As50Ckltion dated 8 Jurie 2015. Organ15atlonals¢rurture UBSU $5 adrninistered by its Board of Trustees consistlng of up to four lay Persons, up to four Student5 and four Sabbatlcal Trustees (students elerted annually by cross-¢ampu5 secret ballot of the UBSU membership). Thp four sabbatical posts ol President, Education Officer, Activitie5 Officer and P05t Graduate Officer. The sabbati￿[ posts are full-time, remvnefated posts * outhorised by the Education Act 1994. Business and employment decisions are the responsibility of the Board. a5 are the approvals of the annual bud8ets and accounts. Tho Board meeron a reEular basi5to recewe reports and rewew the charit¢s performonce.The board of trustees has delegated the day-to-day runnin8 of UBSU to o Chief Execuiive, named under 'Referen and Administratwe details,. U8SU employs several full-time Staff undertaking the mana8ement of Itsmany activltles and these staff are accountable to the Chief Emecurwe in the performanceof rheir duties. TheSabbaticalTry5tees attend several training events desl8ned to Èn5UTe they understand thelrfole asTru$tee5. All external trustees and student trustees are al￿ given ari induction session before they ioln the Board which includes the roleand responsibilities of triJsteesEenerally and in relation to Brighton Students. Union., conflltls of interest,- and the principle5 of good governance. Relatlomships wth related partles and ro-operatlon wlth other of8aiiisaiion5 With the exception of the Sabbatic31 Officers las dlsctsssed abovel. none of the trustees recelve rernuneration or otheT benefir fron) their work with the charity. Trustees are required to rnake declarations of interest at the Start of every board meeting. In the currentyear no such related party tranSact￿nS were reparted. The relationshlp between the Unlverslty of B[￿htOn Ènd UBSU is established in the Regulatitsns of the Urjiversity. UBSU receives a block 8Fant from the University of Brl8hton. UBSU occupies space in the bulldihgs owned by the Universlty inclusive of uti15ties, caretaking and cleaning staff. An e5tirnaled value to UBSU for this free setviced accommodation ha5 been Sncluded in the financiol statements at a cOnse￿atiVe £274,111. Although UBSU continues to aenerate supplementaryftsndln8 from various mutual tradlnE activltles, it wlll rernain dependent on the University of Brightonforsupport. The Education A£t 1994 imposes a dutyon the Universityof Brighton to ewure thefinancial viabilityof Its student representatwe body a*d thèrefore the board of trustees conslders this support w¢ll continue in the foreseeable f￿ure, Pa8e li UNIVERSITY OF BRIGHTON STVDENTY UNION TRUSTEES. ANNUAL REPORT (Continued) lor the year ended 31 July 2021 ArranBements foy 5ettlng remuneration of key management personnel Remuneratk?n of UBSU'S key mana8Èrnent personnel is decided by the Trustee 8oatd. These declsionsare based on recommendations from the CEO following 3n annu31 appraisalof the l￿1 holders. The CEO'S rernuneration is decid bythe trustees. Try5tees' re5ponslbllities in the preparation of flnan¢lal ststements The trustee5 (who are also the dlrectors of Univer51ty of Brighton students, UThlon for the purposes of company lawl ère re5panslble for preparing the trustees. annual report 3nd the financial ststements in accordance with applicable law and règulations. Company law requlre5 the tfustees to prepare finantlal statement5 for each financial year. Under that law, the trustees have prepared the finènclal staternents in accordance with United Kingdom Generally Accepted Accounting Practice (United Kln8domAccountin8 Standard5 and applicable lawl. Under compas)v law. the trustee5 must not approve the finartlal 5taternents unless they are satisfied that they gwe a true and fair view of the state of affairs of the charitable company 8$ at the balance sheet date, 4nd of it5 incotne and expenditurefor that year. In preparing those financial statemènts, the tru5tee5 ore required to.. selea suitable accounting policies 3nd then apply them consistenuv.. Db5erve the methods and principles in the Charities SORP., make judgement5 and accountinÉ estimates that are reasonable and prudent.. state whether applicable UK Atcounting Stan(Jards ha¥e been followed subject to any material de￿rtureS di5cIu5ed and explained in the flnanclalstatetnents.. and prepare the flnancial 5tatement5 on the going concern basis unless It Is inappropriate to presume that the haritable compènyvAII contlnue Sn busines5. The trustees are ie5ponsible for keeping proper accountlng records, whlch dlsclose with reasonable accuracy at any time the financial position ol the thèritable company and enable them to ensure that the financlal statement5 wmply with CompaniesAct 2006.Theyare also respon5iblefor 5afeEuardingtheassets of the charitable compèny and hence for tak5rTrg reasonable steps for the prevention and detection of fraud and other irre8ul4rltyes. The trustees are responsible forthe rnaintenance and inteErytyof the£orporate8nd financial information included on the ch4ritsble ¢ompan¢s website. Legislation In the United Kingdom EoverninE the preparation and dlsseminètion of financial statements may dlffer from the k8islatiDn in otherjurisdiction5. Pa8e 12 UNIVERs￿v OF oR￿HTON STUDENTS, UNION TRUSTEE5' ANNUAL REPORT Icontintsedl fgrlhe year ended 31 Juty 2021 Auditpr Knill Jarne5 L LP has been appointed 05 the auditOTto the Charits￿e company and has indicated its willinEne5S to contSnue in office. st3￿ment as to dis¢losure of Informationto the iudltor The trustees at the date of approval of this trustees, annual report confirm that SD f3ra5 each of them is aware, there 15 no relevant audit inforrnation of which the charitable companvs audltor is unawarÈ, and the trustee5 have taken all steps that they ought to have taken to rnake thern5elves aware of any relevant au(Jit infofmatlOD and to estsblish thatthe audltor is aware of that information. REFERENCE AND ADMINISTRATIVE DETAILS The trustees of the charity, who are also the dlrectors of the company. have held Offi￿ as follo￿.. Ramy Badrte Ireslgned 25106120211 Rayan badrle lappoinred 30106120211 Sulla Begum (Chalrl (appointed 21106120211 Megan Donovan Iresl8ned 04106120211 JenniverGir8awi lappolnted 21106120211 Hadi Has50un (appointed 21106120211 sean Meath EvanEeline solomon Caroline Walmsley Ali5tair Welham Dwayne Williams J¢hn Wilson Siham Ziada (Chairl (resigned 25106120211 Jonathan Tindall (appointed OV12120211 Lauren Harrlson lappolnted 02112120211 (res￿ned 30/OV20211 Iresigned 01109120211 The principal address of the Ihaiity and the registered offlte of the cornpany Is Watts Bulldln& Lewes Road, Brighton BN2 4GJ. The charity Is registered under the Charity Commission number 1164033 and the company is Incorpo¥atpd with the totnpany registration number 09628909 In England and Wales. Laura Greenwood-Pearsons is the charitable Compan￿$t0rre5pOndeTrCe contsct. ThÈ charity has made the followTng profe551onal appolntments.. Auditor Knill James LLP. One Bell Lane, Lewe5, East Sussex, BN7 IJU Banker Barclays Bank Pk, 139 North Street, Bri8hton. East &JsseK BNI ISJ Page 13 UNIVERSITY OF BRIGNfoN STUDENTS, UNION TRUSTEES, ANNUAL REPORT Icontinuedl far thE year ended 31 JU￿ 2021 The following staff are resptrnsible for the d￿10-daY management of the charitw. Chief Executive Laura Greenwood-Pearsons Dirertorof Human Resources Jaci Baker Directorof Commercial SeFvi¢es Jv5tin Brentnall Directorof Finance Rlchard Bur8ess￿arnble EXEMPTIONS FROM DISCLOSiIR£ No exemptions from the dlsclosure requirernents 3pplicèble to a lar8er £harfty have bÈen taken in this trustee annual report. FUNDS HELD AS Cu￿0DlAN The charitable Company acts as custorlian foTthe fund5 raised by the students, many sports clubs. The charitable cornpany Is also tustodlaTh of the annual Raising and Givin8 IRAGI proceeds èrisinE from the varfjous fundraisin8 event5 0¥8anised by the student5 each year and then distributed to the norninated chanties involved. FSnally, the chartyi5CUStodianoffundsraisedbystUdentsoncertaincwrsestosup￿e￿enttheI[CtsU[seacbvlty. Funds of £69,860were heltl on behalf of these clubs èrtd group535 at 31 July 2021-see note 15. This report was approved by the board of trustees on the of Detember 2021, and was signed for and on behalf of the board by Sufia Begum 1711212021 P3ge J4 INDEPENDENT AVDITOWS RepoRTTO THE MEMBERS OF IJNIVERSITY OF BRIGItTON STUDEfiTS' UNION Oplnlo We have audited the financial Statements of Brighton Studerits. Union (the 'parent charitable cornpanWI and it5 subsidlaries (the 'group'l for the yeor ended 31 July 2Q21 which cornpiise Consolidated Statement of Financial Actlvities, the Group and Company Balance Sheet5. the Group and Company Cash Flow Statements ènd note5to the financlal statements, Including a 5umrllary of significant accountSn8 policlÈs. The financial reporting framework that has been applied in their preparation is applicable law and United Kin8dom Accountlll8 Stèndards. includin8 Financi31 Reporting Standard 102 Yhe Financial Reporting Standard applicable the UK ènd Republ1¢ of Irdand" (United Kingdom Generally Accepted Accounting Practice). In our oplnitsn the financial statements-. give a true and fairview of the state of the group'5 and parent charitable companV5 affairs as at 31 July 2021, and of the group's incoming resources and application of resources. including Its income and expenditure, forthe year then ended. have been properly prepared in accordance with United KiTr8dom Generally Accepted Accountlng pract1￿,. and have been prepared in accordance wlth the requlrements of the Compan5es Act 2006. 8asisforopinion We conducted our audit in atcord3nce with International Standards on Auditlng IUKI115As IUKII and applicable law. Our responsibilities underthose standard5 aTefurtherde5cribed in the Auditorfs re5pon5ibilities forthe audit of the fSnanclal statements Section of our report. We are independent of the group and parent charitable company in accordance with the ethical requlrements that arE relevant to our audit of the financial statements in the VK, includin8 the FRCS Ethical Standard, and we have fulfilled our other ethlcal responsibillties in accordance with these reqU1￿Ments. We believe that the audit eTrAdpnce we have obtained 15 sufficient and appropriate to provide a basis for our opinlon. conclu5r0￿ relallng to 8oln8 concern In audltSng the flnaneial 5tatement5, we have concluded that the trustees. use of the going concern basis of accounting In the preparation of thefinaneial statements Is appropriate. Based on the work we have performed, we have not identified any material uncertainties relèting to event5 or conditions thai, individually Dr collectively, moy cast Sign￿fICant doubt on the Eroup's or parent charltable companWs ability to continue a5 a ¥oing conrern ft)r a perlod of at least twelve month5 from when the financial statements are authorlsed for Issue. Our responslb51ities and the responsibilities of the trustees With respect to going concern are described it) the relevant sections of thi5 report. Pagp 15 INDEPENDENT AUDITOfS REPORTTO THE MEMBERS OF UNIVELsfry OF 8RIGTrrroN STUDENTS, UNION Otherlnformatlon The other information comprise5 the Information Included In the triJ5tees annual report, other than thefinanci31 stateFnent5 and our auditorfs rÈport thereon. The trustees artr re5pon5ible for the other Information contained within theannual report. Our opinion on the financial statements does notcoverthe other information and, exceptto the extentotherwiseexplicitly stated in our repon, we do not express any form of assurance conclysion thereon. Our responsibility 15 to read the other inform4tion and. in doin8 so. consider whether the other informatlon is materlally Incon515tent with the financial statements or our knowledge obtained In thè course of the audit or otherwise appears to be materially misstated. If we identify such materlal inconsistenties Dr apparent rnaterial n7155tatements, we are required to determine whether this give5 rise to a materlal misstatement in the financial staternents themselves. If, b85ed on the work we have performed, we conclude that there is a material mlS5tatemeTht of this other information, we are requlred to reportthat fact. We have nothlngto report in this regard. Opinl005 on ￿her mattets pr*crlbed by the Companies A¢t 2006 In our opin￿On. based on the work undertaken In ihe course of the audit= the informatiorTr given in the trustees. report lincorpoiating the directors, report) for the financial year for which the financlal statetnents are prepared is consistentwith the financial stotements,. aTrd the directors, TeFx)rt ha5 been prepared in accordance with 4ppllcable legal requlremen Matters onwhlchweare requltedioreportbyexceptlon In the IiEht of our knowledge and understanding of the 8roup and parent charitable company and its envSroThment obtained in the course of the audiL we have not identlfied material mis5tatement5 in the directors. report. We have ntsthin8 to report in respect of the following matters in relation to which the Icompanies Act 2006 requires sto report to you if. in our oplnTron'. adequate accounting record5 have not been kept by the parent charltable CDrr)pany. or retum5 adequate for our audit have not been received from branches not visited by us., or the parent charlfablecompany'sfinanci415tatements are not*n agreement vjlththe accountlii8 records and return5. or rtain dtselosures of directorf remuneration specified by lèw are not rnade.. or we have not received all the information and explanarions we require for our audit.. or the trustee5 were not entitled to take advantBge of the 5rnall companles. exemptions In preparin8 the dlrectors. report and from the requirement to prepare a strate8ic report. Pa8e 16 INDEPEIIDENT AuoifoR'S REPORT TO THE MEMBER5 OF UNIVERSITY OF BRIGNTON STUDENTY UNION Responsibllitles of trustees As explained more fully in the trustees, responsibilities statemènt Set out on page 8. the trustees (who are also the directors of the charitable companyforthe purp05e5 of company lawl ale responsible for the preparation of the financlal statement5 and for beingsatlsfied thatthey givea true and falrvlew. and for such internal control a5the trustees determine is nece55ary to enable the preparatK)n of financlal statements that aTe free frorn material misstatement, whether to fraud or error. In prep4ringtheflnancrdlstatements, thetrustees are respon5iblefor assessingthe group's and parent charitable cornpany'5 ability to continue as t going concern, disc105in8, a5 applicable. matters related to going concern and usingthe gaiTrg concern basis L>f actounting unless the trustees either intend to liquidate the group or the parent charitable cornpany orto cease operation5. or have no realistic alternative butto do 50. Auditor's respoblslbllit￿S for the a￿dIt ol the finantlal $1otements Ou¥ tsbiertpves are to obtain reè50nable a55urance about wh￿her the financial statements as a whole are free from material rrTri5Statement, whether dtse to fraud or error. ènd to issue an 8uditorf5 report th?t includes Ouropln￿n. Reasonable assurance 15 0 high level of assurance, but is not a guarantee that an audit cofiducted in accordance with Is￿ IUXI will alway5 detect a materlal misstatement when it exists. Misstatements can arlse frotn fraud or error and are considered material if, individually or in the aggregate. they could reasonabfy be expected to influencp the economic declslons of users taken on the basis of these financial statements. Irregularities. including fraud. are instances of non-cornpliènce with 13ws and regvlatlons. We desl8n procedure5 in line wirh our responsibilitie5, Outlined above, to detect material mi55tatements in respect of Irregularlties, includin fraud. The Specific procedures for thi5 engagement and the extent to which these ore capable of detecting Irre8ularities. including fraud Is detailed below.. Based on our understanding of the charitable company, we identified that the principal risk OF nongible flxed assets at rates calculated to wrlte ea£h asset dowfi to rts estimated residual v31ue evenly over itsexpected useful life, 3$ follows.. Equiprnent - overfiveyears In¥estment5 All of the charitable cornp?nVs fixed asset investments are carried in the balance Sheet at cost less provSsions for impairment. These assets are not readily re31isable throuRh sale and accordingly, È feliable rnBrket value c3nnOt be asterfained. Stocks Stocks are valued at the lower of cost and net reallsable vèlue, after rnakins allowance for any slow-mowtng, darniged or obsolete items. Llabllities A contin8ent Ilability 15 di5c105ed for ih05e Erants, whlch do not represent liabilities, where the possible obligation, which arises from past events, will onty be confiTmed by the occurrence of one or more uncertaln future events notwholly withln the trustees, control. Provisions are recognised forthose 8rants where there is uncertainty as to the timin8 or amount, and any uncertainty rÈgardln8 the amount is more than one of the determlnlng factors as a basls foT re850nable estimation of the Ilabilityarlsln8from thatCOn5trurtive Dbli8ation. LÈ•sÈd •s$ets and obli8atlons All of the charitable companrf5 le85es are "oper4ting lea5e5" and the annual rentals are chèr8ed to the statsmpnt of flnanclal activities on a strJight-Iine basis over the lease term. Page 24 UNIVERSITY OF BRIGHTON STiIDENfs' UNION FINANCIAL STATEMENTS for the year ended 31 July 1021 ACCOUNTING POLICIES Icontlnuedl Finan¢i41 in5tvuments Afinancial instrument is a contract that give5 rlseto afinancial asset ofone entity and 3fininc¢al liabilityorequity instrument of another entity- Financial instruments ère therefore classified ènd accounted lor accordin8 to the substance of the contractual arrangement a5 financial assets, financial liabilities or equlty instruments. An equity instrument is any contract that evidentes a residual irtterest in the a55ets of the entity after deductinÉ all of its Financol assets and Ilabllitles The charitsble company'5 debtols 3nd creditors that meet the deflnltlon of either è flnancial asset or a financial liability are initially recognised at fair value and thereafter are Stated 3r amorti5ed c05t using the effective interest method. Provision5 for liabilitles Provisions are recognised when the charitable ¢ornpany has an Obligation at the reporting date as a result of past event which it is probable wlll result In the transfer of economic benefits and that obligation tan be estimated reliably. Provislons are measured atthe best e5tim3te of the amounts required to settle the obliÉation. Where the effettofthe tirnevalue of money is material, the provision is based cnthe pre5entvalueofth05e Bmount5, discounted ata diKount rate that refletts the risks specrfK to the liability. The unwindinE of the dlscount 55 reco8nlsed withln flnance cost5_ Pensi￿ contrlbutknns The University of Brighton Students. Union participates in the Students. Urslon SuperannUat￿n Scheme ISUSSI, defined benefit multi-employer pension scherne. which is externally funded and contracted out of the State Second Pension. SUSS 15 valued at leost every three years by a professlonally qualifled 5ndependent attuarywith Ehe rates of contribution payable bein$ determined by the trustees of SUSS on the ad￿Ce of the actuary. The 2013 valuation recommended a monthly contributlon requirement by each participatSn8 employer expressed in monetary terms intended to clpar the ongoing funding deficit. As a consequence under FRS 102. the University of Brighton Students, Union has recognised a liablllty in the balance sheet equal to the net present value of future deficit reductlon paymÈnts.ThÈse payments ared15counted to ihe presentvalueuslnEthe market yieldon highquallty bond5. The charitable company also makes contributlons Into a group personal pension plan w￿h Aegon and addltlonalty, participate5 in NEST. The Aegon scheme is available to ceryaln employees, while the NEST scheme Is avallable to all employees. The assets of these defined COniributK)n pension 5cheme5 are held separately frorn those of the thèrltsble company In independent trustee-administered *unds. The amount charÉed to the statement of finantlal activities In resped of pension tosts is the contributionspayable forthè yÈar. PB8e 25 UNIVERSITY OF BRIGHTON STUDENYS. UNION FINANCIAL STATEMENTS for the year ended 31 July 2021 ACCOUNnNG POLICIES Icontinuedl Funds held ?5 CU5todlan The charltsble company att5 a5 Custodian for the fund$ raised by the Students. many sports club5. The charitable company 15 also cusiodlan of thÈ annual Raisin8 and Glving IRAGI proceed5 arising from the various fundraisin8 events organi5ed by the students each year and then distributed to the nominated chaiitles involved. FinalW, the harity i5CVStodian of funds raised by studenrs on Certain Cour￿ to supplement theircourse activity. The c35h balances in respect of these custodSan activities are held in the chaiitable company's bank accounts iogether with a corresponding liability for the amounts involved. Prior to 18119 the charitable cotnpany acted a5 Custodian for fund5 raised by student societies. These are now considered part of UBSU'S financial artivity and have now been IncorporatÈiF into the Consolidated Staternent of Financial Actniities and Balance Sheet Reserves. Fund •c¢ourbting The general fund comprlse5 the accumulated surpluses of unrestricted income over expendlture. which are available for use in furtherance of the8eneral obtectives of the charitableeornpanv. De5igD4ted funds are a partKulartorm of unrestrkted funds consisting of arnounts, which have been allocèted or desl8nated for specific purposes by the trustee5. The use of designated funds iemains at the discretion of the trustees, Restflcted fund5 are funth subject to spe£rf￿ condition5 imposed by donors. The purpose and use Df the restricted funds are set out in the noiestothe financ*al Statements. Arnount5 unspentattheytar-end are carried forward in the balarb¢e sheet. CRITICAL ACCOUNTING JUDGEMENTSAND KEY SOURCE5 OF ESTIMATION UNCERTAINTY In the applleation of the charStable company'5 accounting p)licie¥ the trustee5 are required to rnake judgements, estimate5 andassumptions about the c4rryinE amountofasset5and liabilitiesthatare not readilyapparentfromother sources. The e5tiniates and underlyin8 a55tJmptions are based on historlcal experience and other factors that are considered to be relevant. Actuol fesults may difFer from these e5tirnate5 The estlrnates and underlyinB a55umptSons are reviewed on an ongoing basls. RevisSons to accounting estlmate5 are recognised in the year in which the estirnate is revised if the revision affects anly that year, or in the year of the revislon and future years if the rewsion affèrts both current and futureyears. The estimate5 and assumptions that have a significant rlsk of c3usSn8 a material adjtjstment to the carrying amounts of assets ènd liabilities wi(hin the nert financial ye4r are those used by the scheme actuary in caliulating the Universlty of 8rl8hton Student5, Union'5 portion of the SU55 defined beneh't pension scherne liability. In the opinion ¢f the trustees. there are no other estimates and underlying 35sumptlons in rhe applScatlon Bf accounting policles that are considered to be critical, because they either require a significant amount Qf mana8ement judgement or the results are material to the charitab* companws flnancial statements. Page 26 LINIVER51TY OF BRIGHTON STUDENTS. UNION FINANCIAL STATEMENYS for the yeai end¢d 31July 2011 DONATIONS AND LEGACIES Unrestricted funds Restricted Fund5 Total 2021 Total 2020 Block grant frorn the Universlty of 8rlghtorb Donations from other funder5 Grant of serviced accomtnodation 1,067,500 219,099 274.111 1,067,5W 1.122,000 294.099 309.797 274,111 274,111 75,000 1,560.710 75,000 1,635,710 1,705,908 Of the total donations and le8acies income for the year ended 31 Juty 2021 £75,000 is attrlbutableto restricied funds and £1.560,710 to unrestricted funds. 4 INCOME FROM WORKING WITH STUDENTS Unrestricted Unrestricted Total 2021 Total 2020 Cafesand shops EntertainmEn¢5 and events Societies 77,528 2,308 9,200 950.664 214,426 42.856 89.036 1,207,946 OTHER TRADING AcfiviTIES U¢)restfkted Total 2021 Unrestricted Total 2010 Commercial marketing sponsorship 35.073 63,388 35,073 63,388 6 INVESTMENTS Unrestricted Total 2021 Unrestrided Tot312020 Bank interest rÈceNablÈ on short term cash deposSts 204 1.825 RAISING FUNDS Unrestricted Total 2021 Vnrestrirtod Total 2020 Cornmercial actiwti*'. Direct costs Dirert Staff costs Supportstaff 105t$ Rent Othersupportcosts 19.548 7,602 10.595 SW 5.436 13.524 5.219 10,575 500 8,480 43.681 38.298 27 UNIVERSITY OF BRIGHTON STUDENfs' UNION FINANCIAL STATEMENTS for the Year ended 31 ju￿ ZOZI COSTS OF WORKING WITH STUOENT5 Vnre5tricted fvnds Restrirted funds Total 2021 Total 2020 Ana￿Sed by acti¥Aty'. Cafes and shops Entertainments and events Academic experience. athiite wellbeing Campu5 and Communlty Other student artivities Provisionfor pension dèf￿1tpaymentS Governance costs 249,861 71,739 249.861 1,102.955 71,739 171,757 278,555 87,395 817.040 15.86B 98.070 278,535 162.395 817,040 15,868 98,070 282,815 246,407 790,497 699.738 101,251 75.000 1,618.508 75,000 1.693,508 3,395,420 Unrestricted funds Restricted funds Total 2021 Total 2020 Analysed bytype of r05t'. Dlrect costs Direct staff costs Support siaff costs Prowlsion fgr pension deftclt payments Rent Other support costs Governance c05t5 I44,454 558.009 310.200 15,868 273.611 118,297 98.D70 244,454 1.029.288 633,OQ9 825,935 310,200 299,948 1S.868 699,738 273.611 273,611 118,297 16S.649 98,070 101.251 75,000 1,618.508 75.￿9 1.693.508 3,395,420 GovemèrKe costs are mède up ès follow5= Total 2021 Total 2020 Sabb3tical Officer salaTies Sabbatical Offi￿r trainin8 Tru5tees' expenses Auditors, remuneratiot).. External audit service5 Corporate tax compliance seFvKes (Overllunder aecrual in respect of prior years 81,859 5,036 65 87,812 4,731 2,558 12.$00 i.ifyj 12,500 1,100 55 100,005 101,939 Of the total costs of working with students for the perlod to 31 Juty 2021 £75,IYJO ￿ attritr¥Jtable to restr]cted ltsnds ènd £1,6181,508 15 attributable to unrestricted funds. Pa8è 28 UNIVERSITY OF BRIGIITON ¥fuDENTS' UNION FINANCIAL sfATEMENTS for the ye?r ended 31 ju￿ 2021 9 STAFF COSTS 2021 2020 No. The avera8e monthly number of perso￿ working with the charitable company lexcludinE trustees) during the year was., Cèle5and shops Entertainments and events Acadernic expeiSence, advice and wellbeln8 Campus and community Office and management Sabbatical Officers RaisiD8 fund5 37 37 Staff costsforthe obove per50ns'. WaEesand salarie5 Social security costs Pension CDSts- re8ular annutrl contributions Penslon c05t5- provision for pension deficit payments Terminatvn payments Other costs 954.175 1,133,848 85,615 81,333 40.537 40,381 15,868 699,738 11,968 1,129,320 1.992,315 The total amtsjnt of employee benefits recefved by key manaaernent personnel for their servSces to the charitable cornpany during the year amounted to £210.146 119120 - £213,553) and the charitable cornpany incurred employers, nationèl insurance contribution costs of a further £22,495 119120 - É22,9101 in relation to the employrnent of these same members of Staff. One member of staff received a salary plus employer contributions towards national insurance and pension durin8the yearof between £80,000 and £90.CIJO. The 5abbatieal Trustee5, who are also all trusteÈs. re¢eived employee beneftts as authorlsed in the £haritable companvs 8overnin8 document, for their representatlon, campaigning and svpport work they undertake as distinct frorn their role as trustees. Those employeebeneftts comprised.. Gr055 salary Employer pen5iOM contrlbutlons Rarny Badrle Rayan Badrie Sufpa BeEUm Megan Donovan JenniverGtr8awI Hadi Ha$50un Evan8eline Solornon Sihem Ziada 19,084 1,837 2.395 17.886 2,395 2.395 10,540 19,084 96 Page 29 UNIVERSITY OF BRIGHTON STUDEI4YS' UNION FINANCIAL STATEMENTS fof ihe year ended 31 July IOZI STAFF COSTS Icortlnuedl Other than as disclosed above, no tsustees received remuneratioft for theiT Services to the charitable company duringthe current year. The Sabbatical (Ifficers incurred normol bu51ness expenses for travel, subsistence and trainin8 during the course of their Èfflployment as 5abb8tlcèl Offieèrs ènd reclaimed them ihrough the normal employee expenses reSmbursemètht procedure5. The total of these expenses for all the Sabbatical Officers amounted to £5,036119120- £2.8851. In addltion. three of the other trustees were relmbursed for expenses incurred on behalf of the charitsble company during the year relatlnÉ to travel to board meetings and posta8e of board approved document5, amountlll8 to £65 119120- £3601 15 Included within 8overnance£osts. The use of volunteers and donated sefvkes The charity makes considerable use of the 5ervsces of volunteers in (srdef to not oThly mana8e the charitable company at trvstee level but also to deliver services and other similar project outcomes and benellts to beneficiaries. The charitable company is also reliant upon donated service5 provided by it5 wide range of Supporters, and those donated 5ervice5 which can be quantifled. are recogftlsed in the financial staternents as donatlonsin kind. io NETINCOME FOR THE YEAR 2021 2020 Net Incomeforthe year $5 Stated aftercharging= epreciation Operating lease costs- equlpment 9,105 3,118 12,828 3.118 li TANGIBLEASSETS Equipment Total Group and charity C05t". l August 2020 Disposa15 332.740 332,740 1156.8881 1156,8881 31July 2021 175 852 Depreci3tion-. l August 2020 Disposa15 Charge in the year 305,497 305,497 1156,8881 1156,8881 9,105 9,105 31July 2021 157 714 157 Net bookvalue.. 31July 2021 31July 2020 18,138 27,243 27,243 25,801 Page 30 UNIVERSITY OF BRIGHTON STUDENTS, VPIION FINANCIAL STATEMENTS lor the yE3r ended 31 July 2021 12 INVESTMENTS Union Fund5 2021 Union Fund5 2020 G¥oup Cost-. l August Fair Value of assets transferred 31 July Union Fund5 B5U Enterprise Umited Total 2021 Total 2020 Charity Cost.. I Au8USt Change 31Ju The tharitable company owns the entire share capital of BSU Enterprise Limited, a compariy incorporated In En8land and Wales (Company registration number 092422141, through which commercial revenue5 are enerated. For the year ended 31 July 2021, S5U Enterprlse Limited had turnover of Ell4.￿$ and expenditure of £175,508 resulting in a net loss of £60.599. 8SU Entprpri52 Limited nDrmalW generates a net profit, the whole of whlch is distributed by way of Gift Aid to the charitable company. At the end of a normal year BSV Enterprise Limited has net assets and shareholders, funds of £2. 2020121 has been an exceptional year due to COVID and the net Ios5 Of £60.599 h85 been retained in the trading subsidiary, so BSU EnterprisÈ Limited has net liabilities ènd negative shareholders, funds of £60.597 at 31 July 2021. It Is anticipated BS¢J Enterprise Limited will return to Beneratin8 a net plofit in 2021122. 13 STOCKS Group 2021 Charity 2021 Group 2020 Charity 2020 Café supplies Shopsupplies 4,168 79,055 83.223 4.168 79.055 83,223 1,381 8S.918 87.299 1,381 85,918 87,299 The total stock Purchased durfn8 th* year was £37,498. Pa¥e31 UNIVEIISITY OP BRIGHTON STUDENTS. UP410N FINANCIAI STATEMENTS lorthe year ended 31 July 2021 14 DEBTORS Group 2021 Charity2021 Group 2020 Charity2020 Amount5 falling due wlthln one year.. Tradedebtors Amounisduefrom group undertakings Other debtors Prepaymentsarid accrued income 17,131 17.131 7.188 329 50,101 14,861 14,861 329 50,101 22.361 1.375 22,361 1,375 67.561 74,749 38,597 42,997 IS CREDITORS Group 2021 Charity 2021 Group 2020 Charltv 2020 Amounts falling due wlthln one yeai.. Trade crediiors Other taxes and social security costs Clubs and50cietiesfunds Accruals Deferred In£orne 26,488 9.595 69.860 51,217 20,499 26,488 9.595 69,860 51,217 20,499 19921 25,846 7R,777 49,234 22.404 19921 25.846 78.777 49,234 22,404 177,659 J77,659 175,269 175,269 Deferied income.. Deferred Income brought forward Deferred income released to the 5trten3ent of financial acttwbties Income receNed advance durinÉ the year 22.404 22,4 67,865 67.865 122,40¢1 20.499 122.4041 20,499 167.8651 22,404 167,8651 22.404 Deferred Income corried forward.. 20.499 20.499 22,404 22,404 Iklerred Income intludesthose fvnds recelved In 3dvattceforservl￿stO be delivered bylhe charltable company in the 202112021 financial year, and prirnarily comprises bookin8 fee Income received in advance for the 2021 Freshers, Fair. The charitable company recelves C0rnrn155iun income relatinE to the sale of NUS Loyalty tard5. which can be for pedods of up to three year5 in advance. All such Income relaiins to futsJreyear5 is deferred. 16 PROVISIONS FOR L￿BIlITIEs 2021 SUSS pension deflcit provision 2020 SUSS pensiorTr dpficit provision Balanceat l Au8USt Arnounts provided duringtheyear- see note 24 1,590.158 961,218 158.4661 628.940 Balance at 31 Juty 1,531.692 1,590,158 PaEe 32 UNIVERSITY OF 8RIGHTON sfuDEKfs' VNION FINANCIAL ￿ATEmENTS foF the year ended 31 July2021 17 TME FUNDS OF THE GROUP AND THE CHARITY l A￿uSt 2020 Incorne Expenditure Tran5fe15 between funds 31 July 2021 Group Restricted income fund5'. Retentionfund 75,000 75,000 175.0001 Unrestricted income funds.. General fund Designated fund5". Capital reserve fund Contingency reserve fund Oevelopment reserve fund SUSS pen51on deflcit fund 1,685,023 11.653.084) 131.9391 27,243 100,ooc 349,453 11,590,158] 11.113,4621 1.685.023 19,1051 18.138 ioc*,000 126,5271 322,926 58.466 11,531,692) 11,090,628) 11,662,189) 11,113,462] 1.760,023 11,737,189) 11.090,6281 I August 2019 Incorne Expenditure Tfansfer5 between funds 31Julv 2020 Group Restrlcted in£ome fvnds.. Rete*tiDnfund 75,000 75,000 175.lY)01 175,0001 Unrestritted Income fu•ds.' General fund OesSgnated funds.. Capital reserve fund ContingerLCV reserye fvntt DevElopment reserve fund SU55 penslon def￿1t fund 2,904,067 13,345.8901 441,823 25,801 100.000 176.606 1961.2181 1658,8111 2,904.067 112.8281 14.270 27,243 100.0 172,847 349.453 1628,9401 11.590,1581 11.113.462) 13.358.718) 1658.8111 2,979.067 13.433.7181 11,113,462) Pa8e 33 UNIVERSITY OF BRIGiifoN STUDEPtrs' UNION FINANCIAL STATEMENT5 for the yearended 31 July 2021 17. THE FVNnS OF THE GROUP AND ThE CHARITY Icontinuedl The capital grant5 fund was set up to reccgnise the fundin8 received from the Universltyof Brighton to be used to purchase fixed assets. Depreciation is charged to thi5 fund such that the ck)5iTr8 balance on the fund represents the net bookvalue of the fixed asset5 involved. The Sustsinabilitygrant fund wa5 Set up to recogni5e funding provlded by the university of Brighton In order to support a program of activlties. events and projects almed at engaginE Students in sustainability and prornoting environmenEally £onscious living lincludin8 Cooperatwes, 'Green' volunteering and employment opportunities). The Capital reseNÈ fund was set to Separately identify the charitable companws flxed assets that havp been purchBsed from the charitable company's own unrèstricted funds. Transfers are made to or from this fund to tover movetneftt5 on unrestricred fixed asset5 Such as add5tlons, disposals and depreclation so that the closing balarKe on the fund represents the net bookvèlueto the unrestrlcted lixed assets involved. The Contin8Èncy re5erwe fund was set up to set aside an amountto cover unfo¥eseen or emergenry Èxpenditure. Theamountearried forward in this fund is reviewed annually bythe trustee5. The balance of the general fijnd that Is not used for any other purposes is transferred to thE Development reserye fund to be ca¥rled forward 3nd used to further develop the charitable artivities of the charitable company. The SUSS pe*)sion deficir fund was set up to separotely identlfy the reseNe5 deficit 3risinE from ihe need to èccount fora provision In respect of additional 5USS employer pension contributlons required to be paid in future years bythe charitablè cornpany that are intended to elirntrnate the on8oln8 and persistent deficit in the overall fundin8 of the SUSS multi-employerdefined benefit pen510ri Scheme. Page 34 UNIVERSITY OF 8RIGHTON STLIDEIITS. UNION FINANCIAL STATEMENTS for the year ended 31 July 2021 18 ANALYSIS OF ASSETS BETWEEN FUNDS Flxed a$5ets Current 355ets Current Provisiofts for Total 2021 Group Restricted income funds.. UnrestrKted income funds.. General fund Designatedfunds.. Capital reserve fund Contingency reserve fund Development reserve fund SVSS pension defititfund NEf LIABILITIES IB.138 18,138 IOD,OOD 322,926 11.S31,6921 11,531,69ZI 11,531,692) 11.090,6281 loo,000 500,585 1177.6591 18,138 600,595 1177,6591 F￿ed assets Current 3S5ets Current PrOV￿k>￿5 for Total 2021 Char5ty Restrktod incorne funds.. Unrestricted income fvnd5". General lund Designated funds.. Capital resenje fund Contingency reseNe fund Development reserve fund SUSS pension deflcltfund NETLIA&ILITIE5 18,138 18.138 100,OOD 322,924 11.531,6921 11,531,692) 11,531,692> 11,090,628) loo,000 500.583 1177.6591 18,140 600,583 1177,6591 PagÈ 35 UNIVEIISITY OF 8RIGHTON STUDENTS. UNION FINANCIAL STATEMENTS lor Ihe year ended 31 Juty 2021 18 ANALYSIS OF NET A5SET5 BETWEEN FUNDS l£oThtlnuedl FixÈd assets Current a5set5 Current Provlslons for Total 2020 Group Restricted Intorne funds.. C4pitalBrznts fund Su5tsinability Erant fund Unrestricted income funds.. General fund DesS8nated funds.. Capital reserve fund Contingency reserve fund Dweloprnent reserve fund SV55 pension deficlt fund NET LIABILITIES 27,243 27,143 loo,000 349.453 11,590.1581 11,590,158> 11.590.158> 11,113.4621 100.000 524,722 1175,2691 27,243 624.722 1175,2691 Fixed assets Current assets Current Provisions for Total 2020 Charity Restricted Income funds.. Capital 8rantsfund Sustainability grant fund Unrestricted incorne funds.. General fund Designated fJTrds'. Capltal reserve fund Contingency reserve fund Development reserve fund SUSS penslon dEficit fund NET LIABILITIES 27,243 27,243 loo,000 349,451 11,590,158) 11,590,158) 11,590,LS81 11,113,462) loo,￿0 524.720 1175.2691 27.245 624,720 1175,2691 Page 36 UNIVERSITY OF BR￿NTON sfuoEP4TS' LINION FINANCIAL ￿ATEmENTs fow the year ended 31 July 2021 19 RECONCILIATION OF NET INCOME TO NET C￿H PROVIDED BY OPERATING AcfiviTIES Group 2021 Charity 2021 Group 2020 Charity 2020 Net incDme forthereportingyear 22.833 22.833 1454.6511 1454.6511 Adlustments for.. Diwdends, interest and renis from invèstments Depreciètvjn £hBr8es Decreo5e in stock Decie35e in debiors IDecreasel in credltors Increase in provisions 12041 12041 9,105 9,105 4,076 4,076 128.9631 131,7511 2,390 2,390 158,4661 158,4661 11.8251 12,828 16,617 39,336 175,44SI 628,940 11,8251 12,828 16.617 35.032 175,4451 628,940 Netcash from oper*inE actNities 149,2291 152.0171 165,800 161,496 20 ANALYSIS OF CASH AND CASH EQUIVALENTS Group 2021 Charity 2021 Group 2020 Charity 2020 Cash at bank and in hand 449.799 449.799 498,826 494.424 21 FINANCIAL INSTRUMENTS Group 2021 Charity 2021 Group 2020 Charlty 2020 Carrying amount of financSèl assets.. Equity instruments rneasured at falr value Debt Insirurnents measurÈd at 0rn0rt15ed C05t 17.131 17,131 18.697 18,697 Carrylng amount offinancial liabilities-. Measured at amortlsed cost 133,635 133.635 116.480 116.480 Page37 UNIvE￿[Ty OF BRIGHTON STUDENTS. UNION F114ANCIAL STATEMENTS for the year ended 31 July 2021 22. OPERATING LEASE COMMITMENTS The group and the charrty have total future miniFnum lease p3yments as the lessee due under non-cancellable operatin8le3ses and relating to its photocoplers,as follows-. Group2021 Charlty 2021 Group2020 Charity 2020 Plant BI￿ m8chinery'. Payablewithin oneyear Payable in two tofweyears Payable in rnorethanfiveyeays 1.0 3.118 1,000 3,118 I,(KJo 1,000 4.118 4.118 23. RELATED PARTh TRANSACTIONS Durin8 the year. the charitable cofflpany undertook varlous transattitsns on behall of ks trading subsldlary, BSU Enterprise Llmited, a company incorporated in England and Wales Icornpany rÈ8lStration nurnber092422141. During the year, the charitablè cornphnycollected Income of £114,908 and incurred costs of £175,508 on behalf of BSU Enterprise Lirnited. The charkable company did not recoEnize any Gift Aid donatlDns fTom BSU Enterprise Limited during the yeardue to thefactthetradlng subsidiary made 3 net10gs_Atthe balance sheet date. £67,785 wa5 owed by BSU Enterprise Lirnited. This will be repald during 20121 when it 15 anticipated the trading subsldiary will 8ènerated a net profll. There wete no other related party transactions during the year. 24. PEN510N COMMITMENTS UPSU participates In tht Stvdents, ljnion Superannuatvjn Stheme. which is B defined benelit scheme whose rnembÈr5hip conslsts of employees of students. unions and related bodies throughout the country. Benefits in respect of Service up to 30 September 2003 arè accrued on a "final saEarf' basls, with benefits in respect of serytce from l Octts￿r 20D3 accrving on a C8reer Average Revalued Earnings ICAREI basis. Wlth effect from 30 September 2011 the Scheme closed to future accfual. The most recent Valuation of rhe Scheme was carded out 3$ at 30June 2D20and showed thatthe market value ofthe kheme's assets Wa5 £119.1rn with these a55et5 representln8 46% of the value of benefit5 that had accrued to mÈmber5 after allowing for expected future increa5e5 ITr earnin85. The defic*t on an ongoing fundin8 basis amounted to £140.9m. Whilst the as5et5 have performed well. rising by over 17% over the previous three years. the liabilities have increased by a sirnilar percentage. The sustained low yield on government bonds has contlnued to affect the Ilèbillties. butthe increase was drwen in large part by the impact of resolving a leg31 i55ue relatinE to £harFEes made to the scheme between 1988 and 1993 bythe scheme Trustees at the time. Page 38 VNIVERSITY OF 0RIGFrroN STUDENTS. UNION FINANCIAL STATEMENT5 for the yearended 31 July 2021 24. PEN510N COMMITMENTS Icontinuedl The assumptlons which have the mostslgnificant effect upon the results of the Valuatlon are those relatingto therate of return on inve5trnents and the rates of Increase in 5Hlaries and pensions. The followinE assumptionsweie applied at 30June 2020:. The investmerTrt return would be 4.0% per annuffl before retirement and 2.0% per annum after retirement. Pensions accruing on the CARE basis would revalue at 3.6% per annurn. Present and future pensions would increase at rates specified by Scherne rules with appropriate a$5umptions where these are dependent on inflation. The 2020Valuatlon recotnmended a rnonthly contrib¢Jtlon reqtsirement by each Participating f mployer expressed In monetary terms intended to clear the ongoing funding deficlt. Etnployer contributions will increase by 5% in October 2021 and then by 15.4% from lrt October 2021. ContribL¢tions will increase by è further 5% each year thereafter vntil the end of the deficit recovery period. whlch 15 expected to be in AuEUSt 2035. However, contributlons due frorn October 2023 onwardswill be reviewed following the next actuarial valuation. Surpluses ordeficlts which arise at future valuatlons will alsD impact on VBSU'S future contribution commitment. In addition to ihe above contribution5. UBSU also pay5 It5 share of the scheme's levy to the Pension Protertion Fund. FRS102 and Charities SORP IFRS1021 require the charitable company's share of pastsetvice shortfall is ieflerted in the financial 5taternent5. Based on the most recent valuation, the charitable company contribution to eliminatingthe shortfa15 was £74,334 for the year ended 31 ltsly 202112020.. £70.7981. The sratement of financial position asai 31st July 2021 include5 a liability of £1,531,69212020.. EI.590.1581 which represents the net present value of all future contributions towards eliminating thi5 shortfall.