2021-07-31-accounts

Charity number: 1173330

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

CONTENTS

	Page
Reference and administrative details of the charity, its Trustees and advisers	4 - 5
Trustees' report	6 - 18
Independent auditor's report on the financial statements	19 - 22
Consolidated statement of financial activities	23
Consolidated balance sheet	24
Charity balance sheet	25
Consolidated statement of cash flows	26
Notes to the financial statements	27 - 48

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021

Trustees	Adam Colclough (resigned 23 February 2021)
	Mx Alexia Carter Fitzpatrick (resigned 30 June 2021)
	Alyisha Vaughan
	Amanda Payne
	Andy Wright
	Anthony Wallace
	Christopher Norman
	Connor James Bayliss (resigned 30 June 2021)
	Danny Smith
	Robert Craddock
	Sally Elizabeth McGill
	Tuesday Forrest (resigned 30 June 2021)
	Hannah Blackburn (appointed 1 July 2021)
	Hayden Tsang (appointed 1 July 2021)
	Anesu Choto (appointed 1 July 2021)
Charity registered number 1173330 Principal office Staffordshire University College Road Stoke-on-Trent Staffordshire ST4 2DE Chief executive officer Deputy CEO Membership Deputy CEO Finance & Enterprises Ken Sankson Lisa Hough Kevin Barry Independent auditor Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Bankers National Westminster Bank Plc Campbell Place Stoke On Trent Staffordshire ST4 1ND

Page 4

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Solicitors

Wrigley’s Solicitors LLP 19 Cookridge Street Leeds LS2 3AG

Page 5

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2021

The Trustees present their annual report together with the audited financial statements of Staffordshire University Students' Union (the charity) for the year ended 31 July 2021. The Trustees confirm that the Annual Report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document and the provisions of the Statement of Recommended Practice (SORP), 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) as amended by Update Bulletin 1 (effective 1 January 2015).

The official name of the organisation is Staffordshire University Students’ Union; however, the organisation is also referred to as 'the Union' and 'Staffsunion'.

l STATUS AND ADMINISTRATION

Since August 2017, Staffordshire University Students’ Union, has been incorporated as a Charitable Incorporated Organisation (Charity reg 1173330) and the sole shareholder of its trading subsidiary Staffordshire Students’ Union Enterprises Limited (company reg 09849741).

The Students’ Union is responsible for the provision of support and representation to the students of Staffordshire University and is governed by its constitution and supporting bylaws. The Students' Union has provision for up to 15 members on its Board of Trustees, but in line with its byelaws currently aims to operate with 11 postholders.

l STRUCTURE, GOVERNANCE, AND MANAGEMENT

The Union is a membership organisation that is governed by a written constitution and via democratic structures detailed in its constitution. The constitution of the Union is the collective of the major governing document and the minor governing document, the Byelaws of Staffordshire University Students' Union.

Students at Staffordshire University automatically become members of Staffordshire University Students' Union upon enrolment at the University. Students have the right (under the Education Act 1994) to opt-out of Union membership once their student status at the University ends (upon recommendation for an award or withdrawal from their course) they cease to be members of the Union. The Union's Articles of Association are reviewed at least every five years and any changes approved by members, through a General Meeting, and by the Governing Body of the University.

The Union has several formal and informal agreements with the University that ensure effective regulation under the 1994 Education Act as well as to establish the independence of the Union from the University, whilst ensuring the two organisations work in close partnership for the benefit of students. These are:

• The Student and University Memorandum of Co-Operation, which includes the Code of Practice for the Operation of the Students' Union, as defined by the Education Act 1994.

• The Data Sharing and Protection Agreement.

The Board of Trustees comprises of up to fourteen trustees with the following designations:

• Up to five (5) Sabbatical Trustees, elected by a secret ballot open to all members of the Union.

• Up to four (4) Student Trustees, open to all members of the Union, elected and appointed by the Appointments Panel of the Union.

• Up to four (4) Lay Trustees, selected by the Appointments Panel of the Union.

Sabbatical Trustees are full-time and receive a bursary to reflect this, they may serve up to two (2) terms of one (1) year. Appointed Student Trustees are volunteers and are not remunerated, but may claim legitimate expenses, and they are eligible to serve two (2) terms of one (1) year. Lay Trustee are volunteers who may claim legitimate expenses and can currently serve two (2) terms of four (4) years.

Page 6

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

The President of the Students' Union Chairs the Board supported by the Deputy Chairs of the Board of Trustees elected, by the Board of Trustees, according to the Constitution.

l INDUCTION AND TRAINING OF TRUSTEES

The Union has a structured programme of induction and training for its Trustees that is run within the organisation, with the additional option to undertake an annual Trustee Training programme co-commissioned with local Students’ Union partners. Further training is offered during their trusteeship in partnership with both NUS and NCVO.

l CHARITY GOVERNANCE CODE

The Union is best placed to achieve its ambitions if it has effective governance, the right leadership structures, and skilled and capable staff and trustees. Good governance also supports the Union's compliance with relevant legislation and regulations and promotes a culture where everything works towards fulfilling the charity's vision.

The Charity Governance Code has been developed by a steering group, with the help of over 200 charities, and is endorsed and recommended by the Charities Commission. The Code aims to help charities and their trustees develop high standards of governance and is intended as a practical tool to help trustees achieve this, and as a tool for continuous improvement towards the highest standards.

The Code is not a legal or regulatory requirement. Instead, the Code sets the principles and recommended practice for good governance and is deliberately aspirational: some elements of the Code will be a stretch to achieve. The enhanced Code for students' unions covers:

1. Organisational Purpose - The board is clear about the charity's aims and ensures that these are being delivered effectively and sustainably.

2. Leadership - Every charity is headed by an effective board that provides strategic leadership in line with the charity's aims and values.

3. Integrity - The board acts with integrity, adopting values and creating a culture which helps achieve the organisation's charitable purposes. The board is aware of the importance of the public's confidence and trust in charities, and trustees undertake their duties accordingly.

4. Decision making, risk and control - The board makes sure that its decision-making processes are informed, rigorous and timely, and that effective delegation, control and risk-assessment, and management systems are set up and monitored.

5. Board effectiveness - The board works as an effective team, using the appropriate balance of skills, experience, backgrounds and knowledge to make informed decisions.

6. Diversity - The board's approach to diversity supports its effectiveness, leadership and decision making.

7. Openness and accountability - The board leads the organisation in being transparent and accountable. 8. Representation, Interests and Democracy - The students' union is established as a democratic organisation that fundamentally exists to represent the needs of its membership. The principle of 'Democracy' is fundamental to all Students' Unions and is enshrined in the 1994 Education Act. This principle looks for students' unions to demonstrate that their membership is at the heart of the organisation. It also sets an expectation that students' unions should have fair and transparent democratic processes and procedures which are accessible to all.

In January 2021 the Board revisited its self-evaluation against an enhanced code specific to students' unions, reviewing the improvements it had made, and identifying further areas for focus and action. It took a focus on the updated Equality, Diversity and Inclusion Principle and the Integrity Principle.

Page 7

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

Actions identified:

• To implement an appropriate mechanism to enable board members to have clarity in decisions making on what agenda items / papers align with which strategic goal.

• To undergo a review of the Board diversity following the leadership race and for the future to ensure we are representative of the student body.

• To identify and incorporate a mechanism for all board members to actively engage in the review as individuals prior to collective review.

During 2021 all trustees and senior managers undertook a Leadership on Race Equity course delivered by the NUS, which was extended to include members of the University management team.

l DATA PROTECTION

As there was no formal requirement to do so, Trustees decided to not appoint a formal Data Protection Officer as detailed in the Regulations, however, compliance with the regulations is the responsibility of a formally appointed Data Protection Champion, which during 2020/21 was the Chief Executive Officer. In addition, one of the lay trustees is Data Protection Officer for a law firm and can provide specialist support in this area.

l SUSTAINABILITY

Staffordshire University Students' Union has embedded a commitment to sustainability throughout our work. This year the Students’ Union once again was awarded 'Excellent' in the NUS Green Impact Award scheme. Despite there being no on-site audit a digital review of its policies, procedures and data was completed.

It was notable that the move to homeworking, whilst recognizing a shift in energy consumption, had nevertheless positively impacted on reducing the level of resources used, from transport, to energy, consumables and printing.

Some of the learning from the year’s operations have resulted in continued changes in practice to maintain the positive sustainability impacts, in particular the need to be producing printed materials and physically moving personnel.

l RESPONSIBILITIES OF THE TRUSTEES

The trustees are ultimately responsible for the governance of Staffordshire University Students' Union. They are also responsible for the operations of the Union. This includes approving policy, procedure, strategy, budgets, and ensuring compliance with the Constitution, Byelaws and the requirements of the Companies Act and the Education Act.

The trustees are responsible for preparing the Trustees Annual Report and the Financial Statements in accordance with applicable law and regulations.

The Trustees will:

• Accept ultimate responsibility for directing the affairs of the charity, and ensuring it is solvent, well-run, and delivering charitable outcomes for the benefit of members.

• Abide, individually and collectively, to the Nolan Principles.

• Undertake a skills audit upon recruitment (Community Trustees, University Trustee and selected Student Trustees only).

• Undergo a full induction upon starting office.

• Undertake continuous professional development as a trustee, and

• Complete and keep an updated Register of interests.

The Students’ Union is a democratic organisation and the Board of Trustees delegate authority (subject to

Page 8

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

limitations and safeguards that ensure the legality of its decisions) to the Executive Committee, that then harnesses the wider input of students, through Student Representative Council and Student Forums, in policy shaping decisions.

The Officer Trustees oversee the day-to-day operation of the Students’ Union as its Executive Team. They meet regularly with the management of the Students’ Union as a Leadership Team, ensuring the continued focus of the organisation on its objectives.

There is delegated responsibility through the Chief Executive Officer for operational decision making and accountability within the departments in accordance with a regularly reviewed framework of delegated responsibility.

The trustees meet a minimum of four times per year, with the dates of these meetings set for the year ahead according to availability of the members.

l PUBLIC BENEFIT

The trustees confirm that they have complied with the duty in Section 4 of the Charities Act (2006) to have due regard to the Charity Commission's general guidance on public benefit. The charitable purposes of Staffordshire University Students' Union are stated in the 'Objects and Activities' and the Trustees ensure that these purposes are carried out for the public benefit.

l OBJECTIVES AND ACTIVITIES OUR CHARITABLE PURPOSE

Staffordshire University Students' Union's ("the Union") charitable objectives are the advancement and education of students at Staffordshire University for the public benefit by:

• Promoting the interests of students at Staffordshire University during their course of study and representing, supporting and advising members

• Being acknowledged as the recognised representative channel between the students and the university and a representative channel between the students and any other external bodies

• Providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its members

The Union has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing aims and objectives and in planning future activities.

Our Vision is to ensure every Staffordshire University student had a reason to be proud to be a part of Staffs; as a University, a Union and a community

Our Promise to our members is:

• To represent your views, concerns and aspirations

• To campaign, educate and advise on the issues that matter to you

• To ensure you have access to quality space, opportunities and services

• To enable and encourage you to interact through cultural, recreational and sporting activities

• To support the development of your skills, knowledge and experience through involvement with your Union

Our Values

Putting Students First

Our students are the focus of our work. We are passionate about them, led by them and represent and advocate them at every opportunity. They are our first consideration in everything we do.

Page 9

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

Being Inclusive

Our membership is constantly changing and reflects a broad range of backgrounds, ages and lifestyles. Our approach is to find ways to listen to, connect and welcome in those individuals to unite as a community.

Enabling

We recognise our role is to support students through their time at university and what underpins our approach is a focus on giving our members and staff the ability and confidence to undertake things for themselves, rather than always serving up a solution.

Harnessing Creativity

We believe we can make things happen and seek out ways to challenge ourselves and find new approaches or solutions to achieve results. However, we don’t believe solutions only come from within and are comfortable in building from the efforts of others.

Friendly

To us this is more than just being approachable and smiley. It is about the qualities of a good friend; someone you know you can turn to and will be there to listen and be supportive without judging. But equally a friend who will tell you what you need to know and be honest about giving you the right information even if it isn’t always what you want to hear.

Responsible

We recognise the responsibilities we have as an organisation towards our members, our staff, the University and the wider communities we are part of. We ensure we understand the impact of our actions and actively seek ways of eliminating or mitigating any negative impacts or consequences.

l ACHIEVEMENTS AND PERFORMANCE 2020/21

Considering the Covid Pandemic, the charity paused the refresh of its strategic planning processes and switched to an immediate tactical approach to its priorities, modelled around the goals of; protecting its people, delivering on its core objectives as a charity and ensuring its future financial stability.

Representing Students Academic Interests

In a year where disruption to the students’ learning environment and the university experience changed from what would have been expected, the Union’s role in ensuring they remained heard and considered became more important than ever. As the University continued to adapt and pivot its teaching and services to increasingly virtual delivery, there was increased need to work in close partnership with the University, to ensure that access to appropriate support, and adaptations to individual circumstances, were implemented. These included blanket extensions to assessments, rescheduling of exams, and changes to the exceptional circumstances approach. When student parents found themselves juggling home schooling with their own studies, the laptop loan scheme and its capacity were boosted to make devices available to support household learning.

The Union worked with the University to develop an informed and relevant Student Charter that has helped create clarity of expectations for students through the year. It has subsequently been revisited and reworked to ensure it is adapted for the 21/22 academic year and future experiences.

.

As a result of the close work with the University and with the dedication of a network of student representatives, the Union were heartened to see this work rewarded with a 3-percentage point improvement in members recognition of its representation of their interests in the 2021 National Student Survey. This was made more significant when set against the trend both locally and nationally for students to be understandably more negative in their responses, and overall national experience declining by over 7 percentage points.

Page 10

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

Campaign, educate and advise on the issues that matter to students

With the disruption to in-person contact through the year, digital platforms became increasingly relevant for connecting and communicating. Advice & Support services implemented virtual client sessions and self-service booking scheduling. With the individual experiences of students impacted, the service saw an increase in demand for the service with a 28% rise in cases, with 1,600 students advised.

With the introduction of the government supported Covid Support Fund, the Union were able to pull together cross functional teams to rapidly promote and assess claims for support, partnering with the University to ensure support was targeted and received promptly where it was needed. Over successive rounds of fund availability, 3,400 student applications were processed, and by year end, £1,088,000 grants were issued.

With a staggered return to campus post-Christmas, students found themselves unable to return to the properties they were renting. In addition to lobbying for government intervention, the Union, through its letting service, took the decision not to take any proceeds whilst students were unable to return to their properties. As a result, £13,000 of rent collection fees paid by landlords were returned to student tenants. This helped secure further rent waivers and reduction from the University and local landlords. With apprehension over disruption to the future academic years’ delivery, lobbying was also undertaken to secure Covid-guarantees from landlords, building in rent-waivers and allowing students to cancel future tenancies, should they be prevented from access or choose not to return to campus in the year ahead, due to the pandemic.

Feedback and ongoing research such as the annual Being Well, Doing Well survey have identified that mental health concerns and impacts have exacerbated through the pandemic. Through the OFS funded Start to Success project, the Union has continued to raise awareness of the issues and support available, and to improve the responsiveness of support services through a regional collaboration with providers.

l Ensure students have access to quality space, opportunities and services

The approach to delivery through 2020/21 required particularly agile approaches to maintain provision. With a cautious return to campus in September 2020 the scale of physical operation was capped with virtual induction activities and fairs and covid safe operation of all outlets in line with government guidance and local tiering, and no mass gatherings or events.

With the implementation of a national lockdown in November, followed by Tier three restrictions in December and restrictions on students return in January (that for many students extended through to May) operation of social spaces were suspended and on-site delivery was switched to essential services. Retail operations were consolidated to a single outlet, supporting students in halls with essential purchases and working in partnership with the University, provided emergency food parcels for students needing to self-isolate, closing only for the national holidays.

With many students cautious or unable to return to families for the Christmas break, the Union adapted its staff team to ensure its virtual reception point was operational throughout the Christmas recess, ensuring a point of contact for advice, guidance, and support was available.

From January 2021, the Unions main venue was repurposed as a Community Testing facility, with the venue staff team redeployed to work with the local Health authority on administering the centre, which continued operation through the remainder of the year. In addition, the venue was able to pivot to provide pop-up periodic vaccination centres, in partnership with the local medical practice, to serve the University and wider community.

With the easing of lockdown restrictions in May, the Union was able to pivot once again to introduce The Great Outdoors event programme, to serve & support students through the final weeks of term. This saw a partnership with university catering to combine services to co-deliver for students.

As a result, by year-end, the adapted social facilities served 3,800 unique students (a reduction in reach of a

Page 11

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

third, but a decline in visits of over 80%).

l Enable and encourage students to interact through cultural, recreational and sporting activies

In response to the move to the initial and rolling lockdowns the Union established and managed virtual Covid Community Groups on a variety of social media channels to ensure students were able to maintain connections with each other.

Although in-person activities were restricted, support for student groups connecting and hosting activity online saw the number of hosted events increase to 226, with 25% more student-led events held than the previous year (though average participation in these virtual events was less). The big participation growth, in the absence of physical sports, was in the e-sports activity which broadened its reach and scale of participation in the events it organised.

An area that was successful in retaining participation, despite the lockdowns, was democratic engagement. With campaigning and voting operating completely online, the number of candidates reduced only marginally on the prior year, and the number of students voting over the course of the year increased by 6%, with over 1,000 students casting digital ballots in the Leadership Race.

l Support the development of skills, knowledge and experience for students through involvement with the Union

Despite the move to remote delivery from November, 557 students still participated in development opportunities through the 2020/21 academic year. These opportunities included training for roles as representatives and delegates, committee members and chairs, Union team leaders, trustees and volunteers. Opportunities were provided through a blended delivery approach that followed the academic learning experience, with in-person sessions, where conditions allowed, and digital course materials and virtual workshops implemented where necessary.

This rapid move to alternative delivery routes has led to accelerated digital learning by the organisation. Where this has been identified as adding value and greater flexibility to the experience, it has become embedded in the approach to future delivery.

Page 12

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

(continued)

l The Impact of Covid-19

We entered the new financial year as the UK was initially coming out of lockdown and preparing to re-engage in face-to-face activities, with the announcement and promotion of the Eat out to Help out scheme.

With cautious optimism we prepared for a gradual return of students to in-person learning and on campus of activities through the year. What quickly evolved was increasing restrictions to in-person activity locally, followed by full national lockdowns, delays of restart dates for second term and restrictions on returning to campus for some students into the 2021 New Year.

Financial forecasts had been modelled around assumptions that there would be no mass-gatherings and reduced on-campus activity through the first half of the year, but an expectation that activity would scale up through the second half of the year. As restrictions and lockdowns increased, we were faced with operating costs that could not be covered by the restrictions to trading activity.

In response to this, by July 2021 we had:

• Pivoted our Welcome and Induction Programme to a virtual delivery platform, that 2,533 new entrants engaged with.

• Ceased operation of venues as social facilities. These were then repurposed from January 2021 to operate as lateral flow testing and pop-up vaccination centres, with the staff team's seconded to assist with the administration, or to provide additional socially distanced teaching spaces.

• Made use of the Job Retention Scheme. We initially furloughed all core staff and Union Team members involved in venue operations as the November lockdowns kicked in. This was subsequently followed by the part-furloughing of all remaining core staff team from December 2020 around a 4-day-week framework, but still operating 7 days to support members.

• Implemented a recruitment freeze resulting in an 18% reduction in core staff numbers by year end and redeployed and retrained staff and management teams around future priorities.

• Consolidated the Retail operational team to maintain continued operation of a single store to support students remaining in halls of residence, with refocused FoodHub operations to provide immediate support to students who were required to self-isolate, with 114 emergency food parcels issued.

• Delivered the Proud to Be Staffs award as a virtual ceremony for the second year running.

• Moved to virtual Trustee Board meetings and introduced fortnightly informal Board catchups.

Despite all of this, the Union is proud to have continued to engage students with an increase in its advice and case work (1,600 cases undertaken), timely and responsive academic representation and swifter channelling of student voices using a range of digital channels and approaches.

FINANCIAL REVIEW

l SUMMARY

The overall outcome for the year was an accounting surplus of £38,663.

INCOME AND EXPENDITURE SUMMARY 2020/2021

The Union's consolidated total income was £1,976,526 (£3,171,271 in 2019/20) The Union's consolidated total expenditure was £1,937,863 (£3,466,037 in 2019/20) The Union's accounting surplus was £38,663 (deficit of £294,766 in 2019/20)

The deficit in respect of the SUSS pension liability has decreased during the year by £46,263.

The Union's General Fund surplus excluding the pension deficit was £1,240,720 with an additional £57,496 restricted to club and society funds (£1,305,816 total in 2019/20).

Page 13

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

BALANCE SHEET AS OF 31ST JULY 2021

The Union's total reserves were £1,298,216 (£1,305,816 in 2019/20).

This also does not include pension deficit reserve of £1,214,567 (£1,260,830 in 2019/20) recognised under FRS 102.

BASIS OF ACCOUNTING

The annual financial statements of Staffordshire University Students' Union and its subsidiary are attached to this Report. They have been prepared using Accounting and Reporting by Charities: Statement of Recommended Practice (FRS102) .

l GOING CONCERN

The financial relationship between Staffordshire University and the Union is agreed annually in the form of a Financial Memorandum, and as determined in the Memorandum of Co-Operation. The Financial Memorandum confirms the annual allocation of a Block Grant paid by the University and further support in the form of accommodation provided on an in-kind basis. This non-monetary support is intrinsic to the relationship between the University and the Union.

There is no reason to believe that the 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. These Financial Statements have therefore been prepared on a going concern basis.

PRINCIPLE FUNDING SOURCES

The primary source of the Union's funding is derived from the annual Block Grant from Staffordshire University. The remainder of income is from; surplus generating activity of trading outlets, student memberships for sports clubs and general interest societies; student events; and gift-aid donation of all profits by SSUE Ltd.

This year the Union received funding from the Government in relation to the furlough scheme. This amounted to £270,710 between August 1st, 2020, and July 31st, 2021.

FUNDRAISING

Our fundraising work concerns Raise and Give (RaG), which is student-led fundraising for other charities. Staffordshire University Students' Union does not make direct fundraising appeals to members or the general public. Staffordshire University Students' Union supports the work and objectives of the Fundraising Regulator, however, as a Students' Union much of our income is derived directly from the University, and we do not fundraise in the manner for which the Regulator seeks to regulate. Consequently, the Union has not affiliated with the Fundraising Regulator as the Union does not believe expenditure on the levy would be in the best interests of our members or congruent with our charitable purpose.

RESERVES AND RESERVES POLICY

The reserves policy of Staffordshire University Students' Union is to maintain a level of unrestricted funds, not committed or invested in tangible assets, which will enable the Union to ensure continuity of activity and the ability to adjust, in a measured way, to any significant changes in resources.

• To provide funds which can be designated to specific projects to enable these projects to be undertaken at short notice.

• To protect the financial stability of the Union against adverse economic conditions within its trading operations.

• To provide a fund for capital replacement / refurbishment.

The Reserves policy recognises that reserves are necessary to maintain the day-to-day operations of the Union for a period of up to 4 months, should anything disrupt its income sources. This would currently equate to approximately £415,000.

The measure of free reserves has historically been, net assets, less restricted and designated funds, less fixed assets attributable to unrestricted funds.

Page 14

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

Currently this amount is £22,136. However, the Trustees recognise that under FRS102 there is also a balance sheet provision of £1,214,567 against a long-term (15 year) pension liability and repayment plan, therefore there is a 3 year financial plan to reduce the available reserves level over the next 3 years to the target excluding future pension payments.

RISK MANAGEMENT

The Trustee Board of the Students' Union has examined the major strategic, business and operational risks faced by Staffordshire University Students' Union. A risk register has been established and significant changes to risks are identified and monitored through the Finance, Staffing and Risk Sub-committee.

Where appropriate, systems and procedures have been introduced to minimise or mitigate the risks the Students' Union faces. Budgetary and internal control risks have been minimised by the implementation of procedures for authorisation of all transactions and projects.

Procedures are in place to ensure compliance with health and safety for staff, volunteers and participants on all activities organised by the Students' Union and, public liability insurance has been maintained at £10 million.

The key risks of the relationship and financial sustainability of the University as major supporter are actively managed, with an open dialogue and understanding of the co-operation between both parties. There is a support commitment from the University to both the block grant and trading operation of the Students' Union.

In partnership with the University the Students' Union is working with the University to manage the risk of falling student numbers either through recruitment or retention and the resultant impact on the finances of both organisations.

In the development of a lettings service for students and the consideration of potential secondary trading activity and associated risks, the Students' Union established a separate trading enterprise in November 2015 through which it conducts its social enterprise business with the community. This is a limited company wholly owned by the charity, the accounts of which have been consolidated in this report.

REMUNERATION

The Trustees consider the Board of Trustees and the 3 Senior Managers as comprising the key management personnel of the charity, responsible for directing and controlling the charity and running and operating the charity on a day-to-day basis.

All Trustees give their time freely and no trustee remuneration was paid in the year. In line with the constitution and democracy of the Students' Union, four of the trustees are elected to perform the duties of full-time Executive Officers, providing representation of student issues to the Students' Union, University and wider society. For this role they are remunerated, at a rate equivalent to the median sabbatical salary across the sector and incremented in line with the cost-of-living awards applied to their staff by the University each year.

Details of Trustee expenses and related party transactions are disclosed in note 26 of the accounts. These relate to the co-operation with the University, who is the primary funder and landlord, and to the ownership of the subsidiary trading company Staffordshire Students Union Enterprises Limited by the Students Union, and its supply of support services to the company.

Trustees are required to disclose all relevant interests and register them with the Finance Manager and, in accordance with the charity's Good Governance Policy, withdrawing from any decision making where a conflict of interest could arise.

The pay of the charity's Senior Staff Member is reviewed annually and increased in accordance with University Cost of Living awards (0% in 2020/21). In view of the nature of the charity and its economy of operations, the trustees consider that a multiple of up to 2.5 the median salary for UK employees is appropriate for this role.

The remuneration is also bench-marked with charities of a similar size and activity to ensure that the

Page 15

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

remuneration set is fair and not out of line with that generally paid for similar roles.

The ratio comparing the highest full-time salary to the lowest full-time salary is 4.1 to 1. The average ratio for organisations within the not-for-profit sector with 100-250 employees is 7.0 to 1 (People Count Third Sector report).

PLANS FOR FUTURE PERIODS

After a year that has seen the organisation needing to suspend the operation of most of its trading services for much of the year, put on pause any recruitment to replace departing staff members and part furlough all employees to protect jobs within the organisation, the next phase for the organisation is to prepare for our members return to a more campus-based experience.

The impact of the last 18 months on the student experience has been to reduce the opportunity and quality of development gained through social interaction and co-curricular learning. The negative effect on mental wellbeing that a year of uncertainty, the enforced physical separation from peers and academics and the known learning environment has had is widely reported. Our research has shown that what was a concern prior to the pandemic has become more widely and more frequently experienced.

Short-term Goals

With a new officer team and key messages in manifestos from all candidates around the priorities for the year ahead the Union has based its approach around four core themes.

Building communities, belonging & vibrancy will be a key goal for the charity in the year ahead. The absence of physical connection and time with peers means that many of the continuing students plus those starting University will be catching up on the missing experiences of the last year. With much of campus activity paused through the year there is now a deficit of experience of organising and running activities amongst the returning community. There are therefore plans and resources in place to re-invigorate the program and retrain students to rebuild capacity and agency to self-organise activities.

The “We’ve got Your back” aims to rebuild student confidence in the return to a campus focused learning experience. This has been a year where students report that it hasn’t always felt like their experience was prioritised in the government planning and roadmaps; where the eligibility to national support schemes and protections were absent or late; and the media repeatedly focused blame for rate rises on their movements and behaviour as a catchall, whilst the majority were doing everything asked. Our focus will be to build understanding of the specific issues students are experiencing and to advocate for a compassionate and consistent approach from government and service providers, rebuilding trust that they are acting in students’ interests.

Connected to this objective is a focus on wellbeing and inclusion for all. With the marginalisation and isolation experienced there has been a worsening of students reported mental health. With the imminent ending of the Office for Students funded Start to Success programme, a priority is to ensure that the learning and practices developed are embedded across the community partners, University and Students’ Union and are accessible to all.

The involvement of students in extracurricular activities has long been identified as positively impacting their likelihood of continuing their learning through to graduation. Through involvement, the skills and confidence gained have additional benefits on the development of students. In partnership with the University the Union will be developing the co-curricular and live-lab opportunities available through the Union to further enhance the Learning Experience.

A key enabler in delivering the Union services and spaces to meet the needs of our students will be to ensure we have the appropriate staffing resources to deliver. An immediate priority is therefore the recruitment and redevelopment of the Union core and student staff, to replenish the deficit of the previous year.

Long-term targets

Page 16

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

In addition to the above, the focus of the Union will be progress the research and development of the strategy Beyond 2020. Specifically, our response to the University’s refresh of its forward strategy under the newly appointed Vice-Chancellor and the developing Masterplan for the Campus over the next 10 years and how the physical infrastructure to support the student experience needs to develop.

There is learning from the accelerated move to a digitally connected community that will be embedded in the way we work and are better able to serve the needs of an increasingly dispersed student body.

And as we emerge from the restrictions placed on current operations, our long-term objective will be to return to a sustainable scale and efficiency of operations.

l EXTERNAL AFFILIATIONS

Under the Education Act (1994) the Union is required to report to its members, on an annual basis, all current external affiliations.

During the 2020/2021 academic year the Union was affiliated to:

National Council for Voluntary Organisations (included in the NUS	£Nil
affiliation fee)
National Union of Students (NUS)	£20,800
Institute of Money Advisers*	£128
The Property Ombudsman	£225
Stoke on Trent Nightlife Partnership	£202
Activity Group Affiliations
British Mounteneering Council	£184
HH Preservation Society	£Nil
Freemasons	£Nil
Student Radio Association	£96
Legacy Cheer	£Nil
BLWM	£Nil
TOTAL cost of all affiliations in the year	£21,635

Page 17

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CONCLUSION

The Trustees would like to sincerely thank the members, volunteers, staff, and stakeholders of Staffordshire University Students' Union, not least Staffordshire University, who all provide an invaluable contribution to the ongoing success and development of the Union.

Approved by order of the members of the board of Trustees on _______22/10/21 and signed on their behalf by: Hannah Blackburn

Page 18

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

Opinion

We have audited the financial statements of Staffordshire University Students' Union (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

• give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 July 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 19

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STAFFORDSHIRE UNIVERSITY STUDENTS' UNION (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or

• the parent charity has not kept sufficient accounting records; or

• the parent charity financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 20

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STAFFORDSHIRE UNIVERSITY STUDENTS' UNION (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the Charitable Incorporated Organisation (CIO) operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102) and the Companies Act. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the CIO's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The key laws and regulations we considered in this context were General Data Protection Regulation, health and safety legislation and employee legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquire of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and completeness of income recognition and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Board about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Page 21

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STAFFORDSHIRE UNIVERSITY STUDENTS' UNION (CONTINUED)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

Date: 4 November 2021

Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 22

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021

Note Income from: Donations and grants 5 Charitable activities 6 Lettings and other income 4 Investments Total income Expenditure on: Lettings and other expenditure 4 Charitable activities 7 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2021 £ 1,392,526 377,115 201,514 117 1,971,272 146,142 1,787,064 1,933,206 38,066 (11,913) 38,066 26,153	Restricted funds 2021 £ - 5,254 - - 5,254 - 4,657 4,657 597 56,899 597 57,496	Total funds 2021 £ 1,392,526 382,369 201,514 117 1,976,526 146,142 1,791,721 1,937,863 38,663 44,986 38,663 83,649	Total funds 2020 £ 1,266,284 1,646,625 253,097 5,265 3,171,271 138,365 3,327,672 3,466,037 (294,766) 339,752 (294,766) 44,986

The notes on pages 27 to 48 form part of these financial statements.

Page 23

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021

2021 Note £ Fixed assets Tangible assets 12 52,289 Current assets Stocks 14 26,330 47,638 Debtors 15 98,003 142,781 Cash at bank and in hand 1,248,422 1,128,060 1,372,755 1,318,479 Creditors: amounts falling due within one year 16 (195,540) (186,721) Net current assets 1,177,215 Total assets less current liabilities 1,229,504 Creditors: amounts falling due after more than one year 17 (1,145,855) Total net assets 83,649 Charity funds Restricted funds 18 57,496 Unrestricted funds General funds 18 1,240,720 1,248,917 Pension deficit reserve 18 (1,214,567) (1,260,830) Total unrestricted funds 18 26,153 Total funds 83,649 The financial statements were approved and authorised for issue by the _______and signed on their behalf by: 22/10/21

2020 £ 110,435 1,131,758 1,242,193 (1,197,207) 44,986 56,899 (11,913) 44,986 Trustees on

Hannah Blackburn

The notes on pages 27 to 48 form part of these financial statements.

Page 24

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

CHARITY BALANCE SHEET AS AT 31 JULY 2021

2021 Note £ Fixed assets Tangible assets 12 50,270 Investments 13 1 50,271 Current assets Stocks 14 26,330 47,638 Debtors 15 119,495 246,219 Cash at bank and in hand 1,218,849 1,023,140 1,364,674 1,316,997 Creditors: amounts falling due within one year 16 (185,441) (182,195) Net current assets 1,179,233 Total assets less current liabilities 1,229,504 Creditors: amounts falling due after more than one year 17 (1,145,855) Total net assets 83,649 Charity funds Restricted funds 18 57,496 Unrestricted funds General funds 18 1,240,720 1,248,917 Pension deficit reserve 18 (1,214,567) (1,260,830) Total unrestricted funds 18 26,153 Total funds 83,649 The financial statements were approved and authorised for issue by the _____________and signed on their behalf by: 22/10/21

2020 £ 107,390 1 107,391 1,134,802 1,242,193 (1,197,207) 44,986 56,899 (11,913) 44,986 Trustees on

Hannah Blackburn

The notes on pages 27 to 48 form part of these financial statements.

Page 25

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021

Note Cash flows from operating activities Net cash used in operating activities 20 Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 21 The notes on pages 27 to 48 form part of these financial statements	2021 £ 139,623 (19,261) (19,261) 120,362 1,128,060 1,248,422	2020 £ (11,042) (35,004) (35,004) (46,046) 1,174,106 1,128,060

Page 26

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

1. General information

Staffordshire University Students' Union is a Charitable Incorporated Organisation (CIO), registered number 1173330. The CIO is registered in England and Wales and the registered office is at College Road, Stoke-on-Trent, Staffordshire, ST4 2DE. The Charity has no share capital.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

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

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption contained within section 408 of the Companies Act 2005 not to present its own Statement of Financial Activities.

2.2 Going concern

As stated in the Trustee’s Report, the Trustees believe there are no material uncertainties that call into doubt the group’s ability to continue as a going concern and the accounts have therefore been prepared on a going concern basis. The Trustees have reviewed the group’s finances in light of the current climate in relation to the COVID-19 pandemic and consider cash holdings to be sufficient to ensure adequate cashflow for the foreseeable future.

Page 27

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Union has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

Page 28

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

2. Accounting policies (continued)

2.6 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

There is no de minimis level for the capitalisation of tangible fixed assets and are recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

At each reporting date the charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

• Fixtures and fittings 25% - 33.3% per annum

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

2.8 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Page 29

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

2. Accounting policies (continued)

2.10 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.11 Pensions

The Union contributes to the Student's Union Superannuation Scheme (SUSS) which is a defined benefit pension scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally 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 financial statements reflect at fair value the assets and liabilities arising from the Union's retirement benefit obligiations and any related funding. The operating costs of providing retirement benefits to employees are recognised in the accounting period(s) in which the benefits are earned by the employees, and the related finance costs and any other changes in value of the assets and liabilities are recognised in the accounting periods in which they arise.

The Union also auto-enrolls employees into the National Employment Savings Trust (NEST), an independently run defined contribution scheme, and participates in the Aegon money purchase scheme which is accounted for as a defined contribution scheme.

2.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 30

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. This is re-assessed annually and amended to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(ii) Pension deficit contribution

The charity has entered into a commitment to provide deficit funding to the Students' Union Superannuation Pension Scheme, of which it is a contributing employer.

Under FRS 102, the fair value of the commitment is recognised. The calculation of the fair value of the commitment is subject to an assumption of the discount rate. The discount rate is determined by reference to market yields at the reporting date on high quality corporate bonds. See note 24.

(iii) Donation of facilities by Staffordshire University

In accordance with the Charities SORP FRS 102, the Union has valued the benefit it receives from occupying 3,088.50 sqm of facilities owned by the University on a rent-free basis, at the trustees' estimate of market value (£95 sqm) at £295,000.

(iv) Support costs

Many of the costs incurred by the Union such as support staff costs and service costs are shared between activities. The Union's policy is to allocate these costs on the basis of assessed consumption.

Page 31

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

4. Subsidiary trading company

Staffordshire University Students' Union owns 100% of the issued ordinary share capital of its subsidiary, Staffordshire Students' Union Enterprises Limited, Company number 09849741. The subsidiary was incorporated on 30 October 2015. Its taxable profits are donated to the Union. A summary of the subsidiary's trading results is shown below.

The net assets of Staffordshire Students' Union Enterprises Limited at 31 July 2021 amounted to £1 (2020: £1).

Turnover Furlough income Administrative expenses Interest receivable and similar income Gift aid donation	2021 £ 196,391 5,123 (146,142) 12 (55,384) -	2020 £ 253,097 - (138,365) 172 (114,904)
		-

5. Income from donations and grants

Unrestricted funds 2021 £ Support in Kind 295,000 Recurrent Block Grant 832,000 Government grants 265,526 Other grants - 1,392,526	Restricted funds 2021 £ - - - - -	Total funds 2021 £ 295,000 832,000 265,526 -
		1,392,526

The government grants figure consists of £265,526 (2020: £131,847) relating to a Coronavirus Job Retention Scheme (CJRS) Grant from the government. The CJRS grant was set up to cover the costs of staff placed on furlough due to the Covid19 restriction and this amount represents the costs which can be claimed under CJRS for the period to 31st July 2021.

A further £5,123 of CJRS Grant income was recieved and recharged to Staffordshire Students' Union Enterprises Limited. See note 4.

Page 32

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

5. Income from donations and grants (continued)

Support in Kind Recurrent Block Grant Government grants Other grants	Unrestricted funds 2020 £ 295,000 832,000 131,847 - 1,258,847	Restricted funds 2020 £ - - - 7,437 7,437	Total funds 2020 £ 295,000 832,000 131,847 7,437
			1,266,284

6. Income from charitable activities

Unrestricted funds 2021 £ Advice and representation 10,924 Other income 89,053 Clubs & societies - Social space and services 277,138 377,115 Unrestricted funds 2020 £ Advice and representation 17,335 Other income 12,493 Clubs & societies - Social space and services 1,602,980 1,632,808	Restricted funds 2021 £ - - 5,254 - 5,254 Restricted funds 2020 £ - - 13,817 - 13,817	Total funds 2021 £ 10,924 89,053 5,254 277,138
		382,369
		Total funds 2020 £ 17,335 12,493 13,817 1,602,980
		1,646,625

Page 33

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted funds 2021 £ Advice and representation 483,126 Social space and services 968,784 Employability, activity & skills 180,888 Campaigns and communications 151,975 Clubs & societies 2,291 1,787,064 Unrestricted funds 2020 £ Advice and representation 541,670 Social space and services 2,351,659 Employability, activity & skills 214,194 Campaigns and communications 199,060 Clubs & societies 5,648 3,312,231	Restricted funds 2021 £ - - - - 4,657 4,657 Restricted funds 2020 £ - - - - 15,441 15,441	Total funds 2021 £ 483,126 968,784 180,888 151,975 6,948
		1,791,721
		Total funds 2020 £ 541,670 2,351,659 214,194 199,060 21,089
		3,327,672

Page 34

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

7. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

Advice and representation Social space and services Employability, activity & skills Campaigns and communications Clubs & societies Advice and representation Social space and services Employability, activity & skills Campaigns and communications Clubs & societies	Staff costs 2021 Depreciation 2021 £ £ 329,783 942 515,485 74,777 127,352 353 100,842 296 652 13 1,074,114 76,381 Staff costs 2020 Depreciation 2020 £ £ 344,655 535 867,449 76,738 137,405 212 142,320 197 1,102 21 1,492,931 77,703	Other costs 2021 £ 152,401 378,522 53,183 50,837 6,283 641,226 Other costs 2020 £ 196,480 1,407,472 76,577 56,543 19,966 1,757,038	Total funds 2021 £ 483,126 968,784 180,888 151,975 6,948 1,791,721 Total funds 2020 £ 541,670 2,351,659 214,194 199,060 21,089 3,327,672

Page 35

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

8. Analysis of expenditure by activities

Advice and representation Social space and services Employability, activity & skills Campaigns and communications Clubs & societies Advice and representation Social space and services Employability, activity & skills Campaigns and communications Clubs & societies	Activities undertaken directly 2021 £ 333,248 668,243 124,772 104,829 4,813 1,235,905 Activities undertaken directly 2020 £ 396,623 1,721,937 156,838 145,756 15,441 2,436,595	Support costs 2021 £ 149,878 300,541 56,116 47,146 2,135 555,816 Support costs 2020 £ 145,047 629,722 57,356 53,304 5,648 891,077	Total funds 2021 £ 483,126 968,784 180,888 151,975 6,948
			1,791,721
			Total funds 2020 £ 541,670 2,351,659 214,194 199,060 21,089
			3,327,672

Page 36

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs Depreciation Support in kind Indirect trading Finance & administration Other support costs Development Defined benefit pension liability movement Governance costs - auditor's remuneration Auditor's remuneration Fees payable to the charity's auditor for the audit of the charity's annual accounts	Total funds 2021 £ 169,659 3,493 295,000 380 8,088 38,889 35,069 (10,512) 15,750 555,816 2021 £ 15,750	Total funds 2020 £ 173,680 3,289 295,000 1,081 15,817 26,403 55,741 305,216 14,850
		891,077
		2020 £ 14,850

9. Auditor's remuneration

Page 37

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

10. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	Group 2021 £ 1,053,726 65,743 71,323 1,190,792	Group 2020 £ 1,459,493 75,089 82,674 1,617,256	Charity 2021 £ 949,982 58,845 65,287 1,074,114	Charity 2020 £ 1,355,338 67,658 69,935
				1,492,931

The average number of persons employed by the charity during the year was as follows:

Management and administration Student staff	Group 2021 No. 40 94 134	Group 2020 No. 39 250
		289

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

		Group	Group
		2021	2020
		No.	No.
In the band £60,001	- £70,000	-	1

Key management personnel are considered to be anyone who has authority and responsibility for planning, directing and controlling the activities of the charity. During the year, key management personnel received remuneration of £239,688 (2020: £258,284).

11. Trustees' remuneration and expenses

During the year, Trustees received remuneration of £85,310 (2020 - £74,681) .

Each of the Executive Committee's sabbatical officers received remuneration as authorised in the Union governing document for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities. Due to handover during the year, seven (2020: four) sabbatical officers were paid as allowed.

During the year ended 31 July 2021, expenses totalling £ NIL were reimbursed or paid directly to Trustee (2020 - £35 to no Trustee) .

Page 38

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

12. Tangible fixed assets Group Cost or valuation At 1 August 2020 Additions At 31 July 2021 Depreciation At 1 August 2020 Charge for the year At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020	Fixtures and fittings £ 307,369 19,261
	326,630
	196,934 77,407
	274,341
	52,289
	110,435

Page 39

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

12. Tangible fixed assets (continued) Charity Cost or valuation At 1 August 2020 Additions At 31 July 2021 Depreciation At 1 August 2020 Charge for the year At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020	Fixtures and fittings £ 303,549 19,261
	322,810
	196,159 76,381
	272,540
	50,270
	107,390

Page 40

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

13. Fixed asset investments

Charity Cost or valuation At 1 August 2020 At 31 July 2021 Net book value At 31 July 2021 At 31 July 2020	Unlisted investments £ 1
	1
	1
	1

100% of the issued share capital of Staffordshire Students' Union Enterprises Limited is held by the Charity. Staffordshire Students' Union Enterprises Limited's principal activities are the advancement of education by providing and managing accommodation for the students of the University. The Company is registered in England and its company number is 9849741.

14. Stocks

	Group	Group	Charity	Charity
	2021	2020	2021	2020
	£	£	£	£
Goods for resale	26,330	47,638	26,330	47,638

15. Debtors

Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income	Group 2021 £ 2,635 - 49,359 46,009 98,003	Group 2020 £ 8,389 - 31,744 102,648 142,781	Charity 2021 £ 2,066 68,042 15,357 34,030 119,495	Charity 2020 £ 7,143 129,030 7,751 102,295 246,219

Page 41

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

16. Creditors: Amounts falling due within one year

Trade creditors Other taxation and social security Defined benefit scheme deficit funding liability Other creditors Accruals and deferred income	Group 2021 £ 24,585 18,574 68,712 2,615 81,054 195,540	Group 2020 £ 7,942 21,467 63,623 19,978 73,711 186,721	Charity 2021 £ 24,585 18,574 68,712 1,515 72,055 185,441	Charity 2020 £ 7,512 21,467 63,623 18,878 70,715
				182,195

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

	Group	Group	Charity	Charity
	2021	2020	2021	2020
	£	£	£	£
Defined benefit scheme deficit funding liability	1,145,855	1,197,207	1,145,855	1,197,207

Of the defined benefit scheme deficit funding liability £310,967 (2020: £296,159) is due between 2 and 5 years and £834,888 (2020: £901,048) is due after more than 5 years.

Page 42

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

18. Statement of funds

Statement of funds - current year

Balance at 1 August 2020 £ Unrestricted funds General funds 1,248,917 Pension deficit (1,260,830) (11,913) Restricted funds Clubs and societies 53,866 Big lottery fund 3,033 56,899 Total of funds 44,986	Income £ 1,971,272 - 1,971,272 5,254 - 5,254 1,976,526	Expenditure £ Balance at 31 July 2021 £ (1,979,469) 1,240,720 46,263 (1,214,567) (1,933,206) 26,153 (1,624) 57,496 (3,033) - (4,657) 57,496 (1,937,863) 83,649

Page 43

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds General funds Pension deficit Restricted funds Clubs and societies Big lottery fund Welcome programme Total of funds	Balance at 1 August 2019 £ 1,270,938 (989,709) 281,229 55,490 3,033 - 58,523 339,752	Income £ 3,150,017 - 3,150,017 13,817 - 7,437 21,254 3,171,271	Expenditure £ (3,179,475) (271,121) (3,450,596) (15,441) - - (15,441) (3,466,037)	Transfers in/out £ 7,437 - 7,437 - - (7,437) (7,437) -	Balance at 31 July 2020 £ 1,248,917 (1,260,830) (11,913) 53,866 3,033 - 56,899 44,986

A summary of the aims of the key restricted funds are:

Clubs and Societies - These are funds raised by the clubs and societies and administered by the Union for the specific benefit of that club or society which is ultimately under the control of the Union.

Welcome Programme - This fund was a grant aimed at promoting the welcome week, encouraging students to settle into the University.

Big Lottery Fund - This fund was a grant from the UK's National Lottery to support good causes such as community groups, health and education.

Page 44

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2021 £ Tangible fixed assets 52,289 Current assets 1,315,259 Creditors due within one year (195,540) Creditors due in more than one year (1,145,855) Total 26,153	Restricted funds 2021 £ - 57,496 - - 57,496	Total funds 2021 £ 52,289 1,372,755 (195,540) (1,145,855) 83,649

Analysis of net assets between funds - prior year

Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2020 £ 110,435 1,261,580 (186,721) (1,197,207) (11,913)	Restricted funds 2020 £ - 56,899 - - 56,899	Total funds 2020 £ 110,435 1,318,479 (186,721) (1,197,207) 44,986

Page 45

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Decrease/(increase) in stocks Decrease in debtors Increase/(decrease) in creditors Increase/(decrease) in pension deficit funding liability Net cash provided by/(used in) operating activities	Group 2021 £ 38,663 77,407 21,308 44,778 8,819 (51,352) 139,623	Group 2020 £ (294,766)
		78,478 (3,935) 3,311 (64,599) 270,469
		(11,042)

21. Analysis of cash and cash equivalents

Cash in hand 22. Analysis of changes in net debt	Group 2021 £ 1,248,422	Group 2020 £ 1,128,060

Cash at bank and in hand	At 1 August 2020 £ 1,128,060 1,128,060	Cash flows £ 120,362 120,362	At 31 July 2021 £ 1,248,422
			1,248,422

23. Contingent liabilities

HMRC is currently challenging the application of the catering concession by Students Unions if they consider the establishment to be a pub or bar. Whilst the Union believes it has complied with the concession in good faith, the subjective nature of the interpretation of the concession could mean that HMRC take a different view and means that an accurate estimation of any potential liability cannot be made.

Page 46

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

24. Pension commitments

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 2019 and showed that the market value of the Scheme’s assets was £119,103,000 with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £140,907,000.

The assumptions which have the most significant effect upon the results of the Valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions.

The following assumptions applied at 30 June 2019:-

• Pre-retirement discount rate of 4.0%

• Post-retirement discount rate of 2.0%

• Pension increases 3.6%

The 2019 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 15 years and will increase by 8% from 1 October 2021, and at least 5% each year subsequently. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates have taken effect in the 31 July 2021 liability. 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.

The total contributions paid into the Scheme by the Union in respect of eligible employees for the year ended 31 July 2021 amounted to £NIL (2020 - £nil). Additional contributions towards the scheme deficit amounted to £64,545 (2020 - £61,472).

The Union also participates in the Aegon money purchase scheme and the NEST scheme, which are both accounted for as defined contribution schemes. The total contributions paid into these two Schemes by the Union in respect of eligible employees for the year ended 31 July 2021 amounted to £71,323 (2020 - £82,674).

Page 47

STAFFORDSHIRE UNIVERSITY STUDENTS' UNION

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

25. Related party transactions

Staffordshire Students' Union Enterprises Limited

The wholly owned subsidiary, Staffordshire Students' Union Enterprises Limited, is included within the consolidated accounts

The Union paid for expenditure on behalf of the subsidiary in the year and the subsidiary made a gift aid payment of £55,384 (2020: £114,904) to the Union. As a result the Union were owed £68,042 (2020: £129,030) by Staffordshire Students' Union Enterprises Limited.

Staffordshire University

Staffordshire University Students' Union is an independent body operating separately from Staffordshire University, but the two entities work together closely, primarily the Charity's income is derived from the University. The Trustees are of the opinion that this financial assistance is not an influencing factor with regards to the formulation of Union policy, nor does it have any effect on the internal management and decision making of the Union.

Staffordshire University Students' Union is in receipt of a Block Grant of £832,000 (2020: £832,000) There was an additional grant provided by the University for project support of £NIL (2020: £7,437).

During the year the Union made purchases totalling £NIL (2020: £23,174) from the University and made sales totalling £48,945 (2020:£33,301) to the University.

In accordance with the Charities SORP the value of buildings and services are determined at market value. The Student Union occupies its building on a rent-free basis. Donated services have been included in both income and expenditure in respect of this for £295,000 (2020: £295,000). At the end of the year there was a debtor owed to the Union from the University for £NIL (2020 £4,456).

Other related parties are the Sabbatical Officers and Trustees as detailed in the Trustees' report. Details of remuneration received by these individuals are shown in note 11. Remuneration of key management personnel is shown in note 10.

Page 48