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2021-07-31-accounts

UNIVERSITY OF YORK STUDENTS’ UNION

University of York Students’ Union Annual report and consolidated financial statements for the year ended 31 July 2021

Registered Charity Number: 1173404 Company Number: 10688097

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UNIVERSITY OF YORK STUDENTS’ UNION

Contents

Page
Introduction from the new YUSU President and CEO 3
Report of the Board of Trustees 6
Statement of trustees’ responsibilities 19
Reference and administrative details 21
Independent auditor’s report 23
Consolidated statement of financial activities 28
Consolidated balance sheet 29
Charity balance sheet 31
Consolidated cash flow statement 33
Notes to the financial statements 34

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Introduction from the new YUSU President – Patrick O’Donnell

My first year in office saw the Students’ Union continue to react to the global pandemic that started 6 months before the new financial year. The first lockdown had hit our funding and income generation very hard, in turn having a significant impact on students. The priority for us all was to get the Union and get students to safety. To ensure that, we started to rebuild student life, helping to rebuild communities and confidence, and allow the Union to start to recover from the significant financial shock of Covid and its seismic impact on all of our lives.

I could see that there were some real strengths for us that could be used to plot a safe passage through the year. Firstly, our students. They are creative, they are hugely resilient, they are responsible and they want to support one another. Secondly, our context. York is a beautiful city and one where the Council, community groups and neighbourhood forums, local businesses and schools, colleges and universities could work together. Thirdly, the Union was full of talented, hardworking and student-focused staff, trustees, volunteers, and elected representatives. Those three ingredients: great students, a wonderful city and a student-focused Union were what we knew we could mobilise to ensure that YUSU would get by and get on.

It has not been the year I expected when I first wrote my manifesto, but I'm incredibly proud of how everyone has come together. While it isn't over yet, and I see evidence that we need more time to reflect and recover, I also sense that our students, our community, our Union can come out of this stronger if we continue to work together.

A note from the Chief Executive – Ben Vulliamy

The union owes many thanks to the hard work and dedication of its staff, volunteers, trustees and students, but also to its partners and the friends who supported us through this period. There were moments along the way that felt very challenging. When staff were on furlough and where our reserves were diminishing. When students were pushed in and out of lockdowns. When we lost loved ones and felt vulnerable. But there were also moments when our community pulled together to support one another, to encourage one another, to offer support. These friendships and partnerships are what allow us to finish 2020/21 in a much stronger position and starting to look ahead.

Not only do we see improving financial health, venues reopening, club and society memberships returning, vaccine take up and testing rates very strong. We also are allowing ourselves to start to build longer term - to try to prepare for a period where we can become a little less reactive and a little more strategic. Now that we know the union has survived and is returning, we start to focus on how we build a union for the future.

This optimism needs to remain mindful that the pandemic isn't over yet and that we still need time to heal. Our future needs to address not only what we do to grow, change and move forward, but how we do it. We need to work in ways that are deeply inclusive, that empower our students to be part of the change. We need to formalise our key partnerships and maximise the impact of what we do. We need to show integrity, transparency in the way we work and demand the same from others. The goal here is not just to build a stronger union, but a stronger union and a stronger students’ body.

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UNIVERSITY OF YORK STUDENTS’ UNION Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

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UNIVERSITY OF YORK STUDENTS’ UNION Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Report of the Board of Trustees

The Trustees present their report and the audited financial statements of the charity and group for the year ended 31 July 2021, which are also prepared to meet the requirements for a Directors’ Report and accounts for Companies Act purposes. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

The Directors of the charitable company are its Trustees for the purposes of charity law.

Since the charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 has been omitted.

Key developments and successes 2020/21

The Union’s quick and bold pivot into pandemic operations won significant praise from others as being creative, relevant and student-focused. Work to build the UK’s largest purpose-built student outdoor Covid venue, The Forest, was extremely well regarded and used as an example of best practice in a range of forums, receiving Ministerial visits and commendation. Our move to continue to invest in digital hardware, software and expertise saw us successfully relocate staff to work from home wherever possible, with a very flexible approach that many staff were keen to continue to utilise post lockdown and which has helped us support and respond to individual circumstances and needs. Rapid investment into technology allowed us to move to table service, to implement new stock management and online ordering systems, to move to remote finance management and accounting and to processes that were both Covid-compliant and helped us to manage a business that needed to operate in different ways. We also invested in new disability access software as we saw more and more students needing to engage with our online resources and information.

Beyond changes to infrastructure and operations to meet Covid’s challenges, we also found creative ways to support, engage and inform our students. An innovative ‘Life in Lockdown’ project saw us publish a wide range of multimedia content authored by students to share their lived experience. This received critical acclaim from WonkHE and is a model now being replicated by the University and at other institutions. Our advice services moved online giving access to invaluable support to students isolated and stuck studying from homes across the world. We furloughed student staff, protecting their income during periods when we were unable to trade. We built online freshers fairs that saw 4,000 students participate in an online welcome. We ran online events and training courses and moved our AGM online, seeing increases in engagement.

The way the union adjusted saw us develop strong and powerful partnerships that advanced mutual benefit. We worked with the University on Departmental Community Coordinators, helping students find new ways to feel part of a new academic community. We built new volunteering projects working with the access and outreach team and developed online MOOCS (Massive Open Online Courses) to support students’ orientation in conjunction with the Admissions Office. We worked with the University and Public Health to launch on campus Covid testing and vaccination clinics. We met with community groups, parish councils and neighbourhood

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Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

forums to talk about how we could work together to try to keep people safe and rates down across York. We supported the NUS to help engage nationally with the government on free speech, on social mobility, on Covid response and worked with them to enhance insurance cover. We invested in and developed partnerships that were powerful and mutual; beneficial to York and wider afield.

Our lobbying and campaigning work was very important as we looked to address the needs of students during a period of significant challenge. Key work in the area saw us secure rent rebates for students for periods they were locked out of their rental accommodation. This put millions back into student pockets. We proposed and helped establish emergency hardship funds and helped secure funding for these. Grants of up to £500 were provided to students experiencing Covid related financial problems. We helped secure laptops and wifi connections for students who were experiencing digital poverty. We secured financial support for international students to manage the additional costs of migration to and from York resulting from Covid. We helped ensure we were the first Russell Group institution to confirm and implement a Covid adjusted academic policy that changed assessment processes and procedures to try to ensure the pandemic did not unfairly detriment students attainment and progression. The work of elected officers to campaign, lobby and influence proved critical to the University and the union’s work and aimed to ensure we left nobody behind.

Objectives & Activities

Mission, Vision and Values

The Union had envisaged undertaking a comprehensive strategic review during 2019/20 and much work commenced on focus groups with students, staff, trustees, volunteers and stakeholders. When the pandemic hit, the trustees took the decision to pause the longer term review and prioritise responding to the challenges Covid-19 posed to our members and our organisation. The research work done has been reinvigorated in 2020/21 as we look to move beyond the more reactive nature of ‘crisis response’ and transition back into a more strategic direction of travel. Our new strategic direction will launch in 2021/22 and will be a more emergent strategy that we feel will best reflect both our structure and form as a member-led organisation and also the significant uncertainty that still exists in the world.

2021 Strategy

The Union’s new strategy will help us transition from the pandemic back towards a resolutely student focused new strategic framework. We will be implementing an emergent strategy that allows members and stakeholders greater control and flexibility to set agendas and be part of their successful implementation.

Mission

The YUSU mission and vision will proudly identify empowerment of students and social change as what motivates our services, activities, campaigns and support. ‘ Building power and creating connection that breaks down barriers and enables members to thrive as students and citizens .’

Vision and shared purpose

Our new vision will be more than simply what the union should aim for and instead will explicitly create a shared purpose for and with our students. ‘Working together to ensure every student at York can realise their potential, create change and help make the world a better place.’

Key themes and goals

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Delivering our goals

Delivering our vision and mission and achieving our key goals will require us to think about how we work and with what tools and attributes. There are three priorities we have identified to help us successfully deliver:

Our objects

The charitable objects of YUSU are to seek to enhance the student experience at the University of York by providing representation, welfare services, social space and opportunities for student development within the Union and the wider community. The aims agreed in 2011 with the Charity Commision and set out within the governing document are:

Public benefit

The Trustees have a duty to report on ‘public benefit’ by explaining the significant activities undertaken in order to carry out the aims for the public benefit and the achievements measured against those aims. The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

YUSU aims to improve and positively impact on students’ lives so they enjoy their time at university and feel part of a supportive community that values all students. This is achieved through the provision of services, support and representation available for use by all members.

Through Representation, YUSU delivers democratic services and co-ordinates a programme of academic representation across campus to ensure that students’ voices are heard and students are supported to both shape and get the most out of their academic experience.

Through Opportunities YUSU provides a range of activities including sports clubs, societies, student media, volunteering, RAG and training and development opportunities for our student body. These activities set out to enhance the student experience, supporting students to build networks, friendships and skills that students can take with them beyond their time at the University of York.

Through Communities YUSU works to ensure students feel part of a community that enhances their student life and create strong links with the wider York community.

Through Wellbeing YUSU delivers welfare, advocacy and meets the support needs of students by providing a professional Advice and Support Centre and engaging in collaborative work to support students to develop life skills and build resilience.

YUSU provides student job opportunities and a team of experienced and professional staff to deliver support functions. Strong communications and branding, user friendly and accessible systems as well as the provision of safe, fun and professional spaces and facilities support students in getting the most out of their time at University.

Achievement and Performance Indicators (KPIs)

During the 2020/21 year the Union’s Trustee Board agreed the primary objective of the Union was to navigate Covid and ‘get the Union and our members to safety’. This broke down into a number of key areas including;

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Strengthening reserves

We have made significant progress replenishing the dramatic drop in free cash reserves from the 2019/20 financial year, when Covid first hit. Most significant here was utilising the CJRS scheme such that where work could not continue (such as during long periods when licensed trade or specific events and activities were restricted) staffing costs and jobs were protected. Secondly, our business planning was managed so as to try to maximise income where possible. We built temporary venues, invested in technology, adjusted margins, reduced stock write offs and secured new funding for online activities so that we were able to generate some income and deliver alternative programmes that were adequately funded. Thirdly, we managed costs with great care. Grants were paused, staffing freezes were implemented, rent holidays were agreed, contracts were renegotiated and all of this reduced our overheads. The net impact was a sizable reduction in turnover, but with a stronger bottom line performance that went a significant way to offsetting the significant losses of the previous year.

Strengthening relationships with key funders

Significant time and energy has been invested into working with the University and with local partners across the City. We implemented a programme of regular meetings with the Vice Chancellor to monitor and plan around the impacts of Covid on YUSU, students and the University. We supported a range of contingency groups that met to look at student life and support in Covid; Test, Track and Trace; and academic changes and we worked with these groups to ensure we could continue to deliver student life in ways that were sustainable and responsible. We worked with a wider range of University departments and personnel than ever before, including collaborative projects that secured our value, helped reduce risk and grow our combined strength and resilience. The quality of collaboration and partnership has received significant commendation and is cited as best practice in a range of forums, including being referenced in sector journals and in the University’s shortlisted nomination for University of the Year.

Securing funding and support for key Covid-secure projects and adaptation

We started the year working with the University to agree the build of the UK’s first and largest outdoor university venue - The Forest. We knew this would offer students more protection against Covid and it became popular and widely copied. It created jobs and became the home of Covid-safe activity. We built further on its success in term 3 with The Lakeside Tap as our second outdoor venue.

We worked with the University to put on alternative ‘Departmental Goodbye’ celebrations as the normal graduation ceremonies could not go ahead.

We jointly developed a programme of Departmental Community Coordinators to try to support students to strengthen bonds with other students on their course while studying online. The programme's success led to it being funded for 2021/22 also.

We worked with the University to develop and promote a programme of student hardship funding, distributing over £2m to students dealing with the costs of Covid. On this project we supported the University’s Office of

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Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Philanthropic Partnerships and Alumni (OPPA), fundraising for the hardship fund, we helped lobby the government and worked to promote the scheme to students.

We worked with the NUS to negotiate a change in interpretation of insurance protections to leverage £150,000 insurance payouts that were originally rejected.

Protecting Jobs

The support of the CJRS was invaluable to us, and gave us some continuity of employment that would otherwise have been lost during the extended periods of business interruption. Being able to provide some financial assurance to our staff throughout a period of huge disruption was fundamentally important to us. Beyond the financial protection this offered, we also made other changes to protect staff. Moves to home working and the necessary investment into IT hardware and software to support that was a significant undertaking. Finding new ways to carry out internal communications to avoid staff becoming isolated or vulnerable through online meetings, electronic communications and employee wellbeing initiatives was critical. This extended to student staff and volunteers as well and shows that we are committed to our people as a key part of YUSU’s success.

Protecting students

Adapting our advice provision to move online and continue to support students as they underwent huge changes in their learning environment and methodology was important. Online advice and support, self help electronic resources and continued and growing investment into advice practitioners meant we were able to support the vulnerable with one-to-one advocacy and advice.

In addition, our work on representing students focused on supporting them through our work with the University. We secured changes to academic policy to reflect the environment; secured funding for student hardship programmes; secured rent rebates for university accommodation during periods when students were unable to use their accommodation; gained help and support for international student arrivals and the cost and complexity of these. While we recognise students have suffered significantly in a year of Covid disruption we think we helped them get by and get on to the best of our ability, and we worked with students to reduce some of the biggest challenges to their lives and experiences during the year.

Protecting public health

Collaborative work with the University, City of York Council, other education providers and Public Health officials has been a key focus throughout. This work has seen us:

Future plans

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Key challenges and context

Financial review

As YUSU faced into the continuation of the Covid-19 pandemic, the potential for significant financial losses was a key consideration for both Trustees and senior management. The Union relies heavily on the income we generate from our Commercial Services trading subsidiary, and the impact of successive lockdowns and restrictions across the hospitality sector presented a very real challenge. Our response to the pandemic, by flexing our operating model, applying rigorous controls to costs and overheads, making careful and appropriate use of the Coronavirus Job Retention Scheme and investing creatively in outdoor spaces, created a path through the pandemic that has seen us re-establish a financial reserve that had been severely impacted by the financial losses of the previous year.

Overall income fell to £4,181,483 (2020: £4,391,816), due largely to the impact of the Covid-19 pandemic on our income generating potential from trading activity. Through careful cost control, and forensic monitoring and management of our accounts, YUSU managed to offset the reduced income with greater reductions in expenditure, resulting in an improved balance sheet at year end which has led to the replenishment of a dwindling reserve fund.

The year finished with an improved cash balance of £1,236,871 (2020: £829,758).

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Overview

These are YUSU’s sixth consolidated financial statements, prepared under Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) (FRS 102) that incorporate disclosures in relation to defined benefit pension scheme deficits held on the balance sheet.

Statement of comprehensive income & expenditure - overall movements in the year were:

2021 (£) 2020 (£) Movement (£)
Total income 4,181,483 4,391,816 (210,333)
Total expenditure 3,833,284 4,581,525 (748,241)
Net incoming resources 348,199 (189,709) 537,908

Unrestricted income for the year increased by £133,554 (4.3%) to £3,246,404 (2020: £3,112,850) with unrestricted expenditure reducing by £277,524 (8.3%) to £3,084,052 (2020: £3,361,576) resulting in a surplus of £162,352 (2020: deficit was £248,726).

The combined impact of a difficult trading year, offset with maximised cost control, insurance settlements and grant scheme support has resulted in an overall unrestricted balance sheet deficit position of £36,256 (2020: deficit of £198,608).

Income streams provided a steady financial return considering the extraordinary restrictions, however far below that seen in a trading year unaffected by the pandemic. Financial stability continues to be provided by grant contributions from the University, which this year included one-of grant funds to support the development of external outdoor space and to provide online sporting and social engagement activities for students. The total grant contribution from the University increased by £315,421 (23%) to £1,670,190 (2020: £1,354,769. The corresponding expenditure related to this increase in specific grant funding can be seen in our increased events costs (£380,322 in 2020-21, up £243,892 from £136,430 in 2019/20).

Income was also supported by grant contributions from the Coronavirus Job Retention Scheme (£516,618 in 2020-21, up £280,467 from the part-year CJRS grant of £236,151 in 2019-20) and insurance settlements of £150k.

Trading income was severely impacted by the pandemic and, despite best use being made of outdoor spaces and significant efforts to control costs and manage overheads, resulted in significant decreases in trading across all revenue streams. Due to the inability to trade from indoor venues for large parts of the year, catering was affected to a significantly greater extent than licensed trade; with Bars down 16% and Catering down 77%. Overall trading income decreased by £405,795 (36%) to £719,645 (2020: £1,125,440).

Despite a challenging year, YUSU’s Commercial Services trading subsidiary generated a year end surplus of £62,045 (2020: £15,333).

Unrestricted income from charitable activities reduced overall by £148,754 (46%) to £173,871 (2020: £322,625). This is mainly due to the devastating impact of the pandemic on the Union’s ability to generate income from events and marketing activity.

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Expenditure overall includes the Unions’ increased contribution towards Students’ Union Superannuation Scheme pension deficit recovery plans, the revaluation of which worsened the Union’s financial position in the last financial year. Support and staff costs are 22% and 57% of direct costs respectively (2020: 18% and 56%).

Balance sheet - overall movements in the year were:

2021
(£)		 2020
(£)		 Movement
(£)
Tangible fixed assets 95,367 60,800 34,567
Current assets 1,377,573 1,017,101 360,472
Creditors falling due within one year (201,871) (162,161) (39,710)
Defined benefit pension scheme liability (589,916) (609,033) 19,117
Other creditors (due after more than one year) (26,247) 0 (26,247)
Net assets 654,906 306,707 348,199

The increase in tangible fixed assets is due to the capital investment required to purchase a significant number of laptops to support remote working for significant parts of the year; together with the investment in a new stock management and epos system for our commercial venues to support both remote ordering and table service and more effective cost and stock management.

Current assets increased across cash at the bank and held stock (due to more active trading at year end 2020/21) and decreased in relation to trade debtors.

Reserves

Trustees review the reserves policy on an annual basis and, given the strain placed on the level of the reserves as a result of the impact of the pandemic, set an objective for 2020/21 of rebuilding reserves over the next 3 yrs.

During 2020/21 the Board of Trustees reviewed the reserves policy. Reserve levels have been considered on a risk management basis with a minimum reserves level of 10% of operating costs. For 2020/21, this gave a minimum reserves level of £350,000. This ensures funds are available to maintain core services in the event of unexpected loss of income and allows Trustees to meet their obligations and comply with Charity Commission guidance.

General unrestricted reserves available at the 31 July 2021 totalled (£36,256) (2020: (£198,608)). Restricted reserves at 31 July 2021 totalled £691,162 (2020: £505,315).

Free reserves, which are unrestricted funds, not tied up in fixed assets or designated funds amounted to (£141,463) at 31 July 2021 (2020: (£269,248)).

2021 free reserves, excluding pension deficit declarations and the pension deficit prepayment of nil (2020: £5,551) remained positive at £467,570 (2020: £346,560). This places the free reserves position comfortably above the reserves policy minimum of £350,000.

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Trustees have approved the creation of a designated fund within its available free cash reserves of £180,000 to provide a catering contingency fund. The fund has been designated to provide organisational protection against any future catering liabilities that may arise from changes to how the HMRC treat YUSU’s catering arising from ongoing national challenges of Students’ Unions’ application of a VAT exemption (via The VAT Act 1994 Schedule 9, group 6, Item 4(a) and note 1(e) as supplies made by an eligible body which makes principal supplies of vocational training, and which are closely related to the (exempt) principal supply of education by the University of York) applied to catering on university campuses . The Union maintains that it has correctly applied the VAT exemption in accordance with HMRC’s guidelines and we have not been approached to alter our current treatment of catering income, however as a Judicial Review is ongoing, Trustees have made the prudent decision to provide a designated fund to protect the Union should the Judicial Review reach an unfavourable outcome. The designation of £180,000 reduces available free cash reserves from £467,570 to £321,463, which is slightly below the operational contingency minimum of £350,000. Trustees intend to release the designated fund back into free cash reserves should the Judicial Review find in favour of students’ unions.

In real terms, the free reserves of £467,570 are the current funds available to be called upon in the need of an unforeseen circumstance or occurrence while remedial action is taken to rectify any such occasion. The current global pandemic is a prime example of an effective and appropriate use of the reserves fund necessitating a depletion of funds that will then be targeted for replenishment over the coming years.

The current Reserves Strategy, reviewed by the Finance Committee in February 2021, is to increase surpluses year on year to boost the reserves position, both to protect the financial health of the Union in the face of adverse incidents, but also to provide the Union with the ability to invest in sustainable growth for the future. This strategy is increasingly relevant given the ongoing impact of the pandemic, particularly in light of the withdrawal of the Coronavirus Job Retention Scheme and the removal of cover for government-enforced closures from our combined business insurance policy.

The Trustees recognise that the additional provision of the SUSS pension deficit on the face of the balance sheet is a technical accounting standard and does not fundamentally change the financial stability of the charity. The declaration of YUSU’s share of the pension deficit is a statement of future liabilities calculated to 2035.

Financial Reporting Standard 102

In accordance with Financial Reporting Standard (FRS102), which requires YUSU to declare on the face of the accounts its share of any defined benefits pension scheme deficits, the reserves position includes provision for the 2021 Students’ Union Superannuation Scheme (SUSS) pension deficit of £609,033 (2020: £621,359), split between amounts falling due within one year of £19,118 (2020: £12,326) and amounts falling due after one year of £589,916 (2020: £609,033).

The SUSS pension scheme was revalued in October 2019, with a resultant increased liability for all participating Unions (YUSU impact was £113,299). Whilst the impact on YUSU’s liability was not as significant as for some Unions, it still represents a considerable increase to the pension liability and one that should be closely monitored by Trustees.

The Trustees recognise that the additional provision of the SUSS pension deficit on the face of the balance sheet is not a current debt; it is a statement of estimated future liabilities to 2035. This is a technical accounting transaction which does not fundamentally change the financial stability of the charity.

Going concern & Covid

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They have reduced contractual commitments, have enhanced our relationship with key funders, shown sufficient creativity and resilience in independent income generation and retain sufficient free cash reserves to meet our obligations. We have

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

reasons for optimism about our ability to continue to replenish free cash reserves within a reasonable amount of time, both to protect an operating contingency reserve and to create space for capital investment, and that with reduced turnover in the intervening period this is within the Board’s tolerance.

The Board have approved a medium term budget for the period 2022-25, which takes into account budget growth and income generation opportunities. The budgets have been prepared using cautious assumptions and forecast gradually increasing profits year on year. Cash flow within the organisation remains strong, with a closing balance of £1,236,871 as at 31 July 2021. The Board has also considered key budget risks and sensitivities and has determined that it has appropriate control measures and protections in place to mitigate against those risks.

For this reason the Board continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Funds held as custodian trustee on behalf of others

YUSU acts as custodian for funds raised by student clubs, societies and college committees as well as the annual Raising and Giving (RAG) proceeds from fundraising events that are distributed to the intended charities accordingly.

Funds held in 2021 were £691,162 (2020: £505,315).

Structure, governance and management

University of York Students’ Union (YUSU) is constituted in accordance with its Memorandum and Articles of Association as amended on 21 June 2018 and is governed by a Board of Trustees. It is a charitable incorporated company limited by guarantee and registered as a Charity with the Charity Commission for the UK and Wales in June 2017.

The Charity Commission has issued a direction linking the former charity, The University of York Students’ Union (no 1145259), to the new charity, University of York Students’ Union (no 1173404).

The former charity had been an Unincorporated Corporation and been registered with the Charity Commission since January 2012. The 2 organisations remain linked and constituted with the same charitable objects

Members of the Union

All registered students of the University of York, except those who exercise their right to not be a member under clause 22 (c) of the Education Act 1994. Sabbatical Officers of the Union are full members of the Union.

Board of Trustees

The Union is administered by its Board of Trustees comprising:

Officers of the Union

The full officer group of the Union comprises:

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

The Sabbatical Officers are Officer Trustees elected through secret ballot by the members each year; these individuals normally serve one year in office but can serve a second year if re-elected. These are full-time posts remunerated as authorised by the Education Act and the governing document of YUSU.

Sabbatical Officers’ Committee

The Sabbatical Committee includes the Officer Trustees and they meet in accordance with the Bye-Laws and responsibilities include representation and campaign work and implementation of policy. The Chief Executive and Senior Management Team attend when necessary.

Board of Trustees

The Board of Trustees meets formally at least four times in an academic year and has ultimate responsibility for oversight of the long term strategy, objectives and for providing overall financial and organisational control.

In order to monitor and scrutinise progress the Board of Trustees is provided with regular and timely information on overall financial performance, together with information such as performance against targets and proposed capital expenditure.

The Board of Trustees conducts its business through three sub committees: Finance, HR and Audit and Remuneration. Each committee has terms of reference which are reviewed annually. The decisions of these committees are formally reported to the Board of Trustees.

The Board of Trustees has delegated the day-to-day running of YUSU to the Chief Executive with a clear division of responsibility in that the role of Chair and Chief Executive are held by separate individuals. This is consistent with our articles of governance and the model documents agreed with the Charities Commission.

Committees

Finance

The Finance Committee meets formally four times a year and comprises a minimum of three members of the Trustee Board including at least one external trustee and one student trustee. It has delegated responsibility for scrutinising the financial performance of the Union and ensuring resources are used efficiently and effectively to support the purpose of the Union and oversee financial risk management.

Human resources and audit

The HR and Audit Committee meets formally three times a year and comprises a minimum of three members of the Trustee Board, including at least one external trustee and one student trustee. It has delegated responsibility for the HR strategy and ensuring the effectiveness of internal systems and controls including risk management and compliance with all aspects of relevant law, regulations and good practice.

Remuneration

The Remuneration Committee meets formally at least once a year and comprises a minimum of two members of the Trustee Board, including at least one external trustee and one sabbatical officer. It has delegated responsibility for approving the Union-wide pay award, overseeing employee pay policies, remunerations systems and compliance with associated employment legislation. Annually the Committee review the staff pay policy which enables staff progression through the salary bands over a set number of years, with cost of living

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

increases negotiated annually through the staff representative body. Over the course of 2016-17 a formal pay policy for senior staff was agreed by the Board of Trustees for implementation in 2017-18, with the average pay ratio between Chief Executive and the 25th, 50th and 75th pay percentiles standing at 2.4:1 at the end of 2020/21. It should be noted that 0% cost of living was agreed for all pay grades and employees for the 2020/21 financial year to reflect the financial challenges that exist for Covid. In addition, the Senior Leadership Team waived any and all incremental changes for directors and leave entitlement in response to the challenges the organisation faced.

Board effectiveness

Board effectiveness is reviewed periodically, with the last formal review undertaken in 2020/21, which included an organisational assessment of Board effectiveness against the Charity Commission Governance Code, the results of which were developed into a Board Development Plan which is actioned through induction, ongoing training and regular Board Development sessions. Trustees have access to a YUSU Governance intranet site, through which guidance material and key organisational governance documents are provided. Trustees receive weekly strategic and operational updates to provide operational context to their governance oversight and decision-making and regular Board briefings are provided outside of formal meetings to ensure Trustees are up to date with critical issues arising from the pandemic. Plans are being drawn up for an external trustee recruitment process for 2021/22 which will be based on skills gaps identified through a skills audit to be undertaken in 2021-22. Throughout 2020-21 Trustee Board meetings (and exceptional governance meetings) were conducted online to support maximum attendance.

Board induction and training

All Trustees undergo a structured induction, including receiving training and information on their legal obligations and responsibilities. Sabbatical Officer Trustees’ term of office is generally one year and so there is an annual programme of training on all aspects of their roles and responsibilities. This is facilitated through predecessors, senior managers and the National Union of Students over a four week period and ensures they can perform their duties to the best of their abilities. External Lay Trustees receive training from the Chief Executive as well as having external training following their appointment to the Board from auditors and a students’ union governance expert. The training programme is reviewed annually and updated for relevant changes in statutory and regulatory compliance.

Relationship with the University of York

The relationship between the University and the Union is established in the Charter and the Ordinances and the Regulations of the University. YUSU works with the University of York to ensure that the affairs of the Union are properly conducted and that the educational and welfare needs of the Union’s members are met, with Sabbatical Officer Trustees representing the student membership at University Council, Court, Senate, and other committees.

YUSU receives a block grant from the University and occupies a building owned by the University (to which we made a capital grant from our free cash reserve previously) and which is leased to the Union at an agreed peppercorn rent. The University is our primary funder. Through the pandemic YUSU have made a number of adjustments to our normal funding cycle to support the University’s broader financial management. Similarly the University have been very supportive of our financial challenges, including waiving a number of rent and lease costs associated with trading spaces we were not permitted to use during lockdown.

Risk management

The Board of Trustees is responsible for the Union’s risk management and has delegated day-to-day responsibility to the Chief Executive for maintaining a sound system of internal control that supports the achievement of YUSU’s policies, aims and objectives, while safeguarding its funds and assets. The Chief Executive is also responsible for reporting to the Board of Trustees any material weakness or breakdown in internal controls.

A system of internal control is designed to manage risk to a reasonable level, rather than eliminate all risk of failure; therefore it can only provide reasonable and not absolute assurance of effectiveness. The Union’s

17

UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

system of internal control is developed through processes designed to identify and prioritise risk and to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically.

The system of internal control is continuously being updated and improved and is based on a framework of regular management information, administrative procedures and a system of delegation and accountability. In particular this includes:

Key items of note for annual reporting related to pandemic impact:

Key trustee decisions beyond the above made to protect the organisation in relation to the pandemic include:

18

UNIVERSITY OF YORK STUDENTS’ UNION Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Fundraising

The charity does not contract with a third party to fundraise on the charity’s behalf. Fundraising has been mainly limited to raising funds for specific charities which are chosen by the students. In 2020-21, over £105,000 was raised by over 60 student groups and colleges for charities including Raising and Giving (RAG) beneficiaries, the Student Hardship Fund, Medecin Sans Frontieres, Macmillan Cancer Support and many more.

In a normal year, we’d expect to raise about £120,000, (of which about 50% comes from international treks and challenges which were on hold this year). The fact that students were able to raise that sum, when so much normal activity was on hold or adjusted, is a huge achievement and we are incredibly proud.

The Community team works with students to foster a sense of community amongst York students through fundraising activities and volunteering projects. This branch of YUSU enables students to show the community both here at the University and locally in the city the dedication of students to make a difference.

Statement of Board of Trustees responsibilities

The trustees (who are also directors of University of York Students' Union for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on YUSU’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware:

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

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

This report was approved by the Trustees, in their capacity as Company Directors and signed on their behalf by:

PATRICK O'DONNELL (Mar 5, 2022 17:44 GMT) Patrick O’Donnell (Chair) YUSU 20 January 2022

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UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Reference and administrative details

Charity registered number

1173404

Company registered number

10688097

Trustees

The Board of Trustees who served during the year and up to the date of signature of this report were as listed below:

Appointed by members

M. Cannell Officer Trustee (appointed 30 June 2019, resigned 30 June 2021) B. Terry Officer Trustee (appointed 1 July 2020, resigned 1 March 2021) C. Precious Officer Trustee (appointed 1 July 2020, resigned 30 June 2021) I. Barnett Student Trustee (appointed 1 July 2019, resigned 30 June 2021) J. McKenzie Student Trustee (appointed 1 July 2019, resigned 30 June 2021) K. Blanchard Student Trustee (appointed 31 July 2020, resigned 30 June 2021) K. Siwek Student Trustee (appointed 1 July 2021, resigned 28 September 2021) P. O’Donnell Officer Trustee (appointed 1 July 2020) M. Johnstone Officer Trustee (appointed 1 July 2020) F. Riley Officer Trustee (appointed 1 July 2021) S. Kelly Officer Trustee (appointed 1 July 2021) K. Balmer Officer Trustee (appointed 1 July 2021) A Bishoi Student Trustee (appointed 1 July 2021) D. Akand Student Trustee (appointed 1 July 2021) T. O’Neill Student Trustee (appointed 11 November 2021)

Appointed by the Board of Trustees

S. Hu External Trustee (appointed 1 September 2018) I. Jenner External Trustee (appointed 1 April 2016) J. Sims External Trustee (appointed 9 June 2016)

Executive

Ben Vulliamy, Chief Executive Officer Kate Williams, Central Resources Director Gemma Vessey, Communications & Activities Director Rachel Barber, Student Support & Representation Director Jon Easby, Commercial Operations Director (appointed 3 May 2021)

Principal office

The University of York Students’ Union James College, Newton Way Heslington York North Yorkshire YO10 5DD

21

UNIVERSITY OF YORK STUDENTS’ UNION

Report of the Board of Trustees FOR THE YEAR ENDED 31 JULY 2021

Reference and administrative details

Independent auditor

BHP LLP Chartered Accountants Rievaulx House 1 St Mary’s Court Blossom Street York YO24 1AH

Bankers

Santander UK plc. 7 High Ousegate York North Yorkshire YO1 8RZ

Solicitors

Rollits LLP Forsyth House Alpha Court Monks Cross York North Yorkshire YO32 9WN

22

(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

Opinion

We have audited the financial statements of University of York Students' Union (the 'parent charitable company') 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 Union 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group and parent charitable company 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

Other information

The other information comprises the information included in the Trustees' Report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Trustees' 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF YORK 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and its trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Mar 10, 2022 17:04 GMT)

Jane Marshall (Senior statutory auditor) for and on behalf of

BHP LLP

Chartered Accountants Statutory Auditors Rievaulx House 1 St Mary's Court Blossom Street York YO24 1AH

Date: Mar 10, 2022

Page 27

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income - CJRS
8
Total income
Expenditure on:
Raising funds
9
Charitable activities
Remeasurement of pension scheme
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
1,832,481
173,871
719,645
3,789
516,618
3,246,404
1,261,995
1,822,057
-
3,084,052
162,352
(198,608)
162,352
(36,256)		 Restricted
funds
2021
£
-
935,079
-
-
-
935,079
-
749,232
-
749,232
185,847
505,315
185,847
691,162		 Total
funds
2021
£
1,832,481
1,108,950
719,645
3,789
516,618
4,181,483
1,261,995
2,571,289
-
3,833,284
348,199
306,707
348,199
654,906		 Total
funds
2020
£
1,421,199
1,601,591
1,125,440
7,435
236,151
4,391,816
1,496,696
2,971,530
113,299
4,581,525
(189,709)
496,416
(189,709)
306,707

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

The notes on pages 34 to 60 form part of these financial statements.

Page 28

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 10688097

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021

Note
Fixed assets
Tangible assets
16
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
21
Total net assets		 17,779
122,923
1,236,871
1,377,573
(201,871)		 2021
£
95,367
95,367
1,175,702
1,271,069
(616,163)
654,906		 9,066
178,277
829,758
1,017,101
(162,161)		 2020
£
60,800
60,800
854,940
915,740
(609,033)
306,707

Page 29

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 10688097

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 JULY 2021

Note
Charity funds
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
22
Unrestricted funds excluding pension asset
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 9,840
562,937
572,777
(609,033)		 2021
£
691,162
(36,256)
654,906		 9,840
412,911
422,751
(621,359)		 2020
£
505,315
(198,608)
306,707

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

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

PATRICK O'DONNELL (Mar 5, 2022 17:44 GMT)

P O'Donnell President Date: 20 January 2022

The notes on pages 34 to 60 form part of these financial statements.

Page 30

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 10688097

UNION STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2021

Note
Fixed assets
Tangible assets
16
Investments
17
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
21
Net assets excluding pension asset
Total net assets		 1,427
171,779
1,115,116
1,288,322
(146,799)		 2021
£
26,533
1
26,534
1,141,523
1,168,057
(589,916)
578,141
578,141		 5,525
221,066
751,480
978,071
(119,781)		 2020
£
28,526
1
28,527
858,290
886,817
(609,033)
277,784
277,784

Page 31

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 10688097

UNION STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 JULY 2021

Note
Charity funds
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
Unrestricted funds excluding pension liability
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 189,840
306,172
496,012
(609,033)		 2021
£
691,162
(113,021)
578,141		 9,840
383,988
393,828
(621,359)		 2020
£
505,315
(227,531)
277,784

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £300,357 (2020: £118,122 loss).

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

PATRICK O'DONNELL (Mar 5, 2022 17:44 GMT)

P O'Donnell President Date: 20 January 2022

The notes on pages 34 to 60 form part of these financial statements.

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UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

Note
Cash flows from operating activities
Net cash provided by(used in) operating activities
25
Cash flows from investing activities
Bank interest
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash used in investing activities
Pension deficit payments
Net cash used in financing 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
26		 2021
£
501,803
3,789
-
(64,319)
(60,530)
(34,160)
(34,160)
407,113
829,758
1,236,871		 2020
£
(61,918)
7,435
2,210
(37,967)
(28,322)
(33,373)
(33,373)
(123,613)
953,371
829,758

The notes on pages 34 to 60 form part of these financial statements

Page 33

(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

1. General information

University of York Students' Union is a company limited by guarantee (no. 10688097) registered in England and Wales and a registered charity (no. 1173404). The registered office is James College, Newton Way, Heslington, York, Y010 5DD.

The members of the company are the Trustees named on page 15. In the event of the Union being wound up, the liability in respect of the guarantee is limited to £1 per member of the Union.

2. Accounting policies

2.1 Basis of preparation of financial statements

University of York Students' Union constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

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

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

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

The relationship between University of York and University of York Students' Union is established in the Regulations of the University and detailed in University of York Students' Union's Articles approved by both organisations. University of York Union receives a Block Grant from the University and part-occupies a number of buildings. The University pays for utilities, portering and some cleaning staff. This non-monetary support is intrinsic to the relationship between the University and the Students' Union.

Although University of York Students' Union continues to generate supplementary funding from various primary purpose trading activities, it will always be dependent on the University's support. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body. The financial statements have therefore been prepared on the going concern basis.

The Board have considered the impact of COVID-19 on the company’s income and operating cost base and prepared forecasts of income and expenditure for the period to 31 July 2025. In addition they have

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

2. Accounting policies (continued)

2.2 Going concern (continued)

considered various scenarios and how they plan to deal with these. The forecasts show that the Union has sufficient reserves and cash to be able to continue for the foreseeable future. The Board continue to review the management accounts and financial plans on a regular basis to monitor progress against these. This ensures that appropriate action is taken as necessary.

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.

Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity 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.

During the year, YUSU Commercial Services also received Coronavirus Job Retention Scheme income from the UK Government which was equivalent to 80% of the salaries of staff on furlough leave during the pandemic.

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.

Costs of raising funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

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

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

2. Accounting policies (continued)

2.5 Grants received

Revenue grants other than the block grant are credited to the SOFA in the year in which they are received. The block grant is credited to the SOFA in the year in which it is receivable. In the SOFA grants are shown as income and the related expenditure disclosed as appropriate.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Taxation

The Union 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 Union 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.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and 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.

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 bases:

Motor vehicles - Between 3 & 5 years straight line - Fixtures and fittings Between 3 & 5 years straight line - Office equipment Between 3 & 5 years straight line - Computer equipment Between 3 & 5 years straight line

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

2. Accounting policies (continued)

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

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

2.10 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.

2.11 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.

2.12 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.

2.13 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.

Liabilities are recognised at the amount that the Union anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.14 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.

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

2. Accounting policies (continued)

2.15 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.16 Pensions

The Union participates in the Students' Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS102, in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year. The present value of the Union’s deficit contribution is recognised as a liability in accordance with SORP (FRS102).

The Union also contributes to defined contribution pension schemes for its employees. The pension charge represents the amounts payable by the company to the fund in respect of the year.

2.17 Employee benefits

The costs of short term employee benefits are recognised as a liability and expense.

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

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

2.18 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.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors 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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 38

(A company limited by guarantee)

UNIVERSITY OF YORK 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 Union 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) 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 present value of the commitment is recognised. The calculation of the present 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.

(ii) Donation of facilities by University of York

In accordance with the Charities SORP FRS 102, the Union and its trading subsidiary has valued the benefit it receives from occupying facilities owned by the University on a rent-free basis, at the trustees' estimate of market value at £51,430.

(iii) 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

4. Income from donations and legacies

Facilities in kind
Block grant from University of York
Other grants
Total 2021
Total 2020		 Unrestricted
funds
2021
£
51,430
1,670,190
110,861
1,832,481
1,421,199		 Total
funds
2021
£
51,430
1,670,190
110,861
1,832,481
1,421,199		 Total
funds
2020
£
51,430
1,354,769
15,000
1,421,199

Page 39

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

5. Income from charitable activities

Events
Graduation photography
Marketing
Sports clubs and societies
Advice and welfare
Student activities
Sports clubs
NUS Extra
Other activities - restricted
Other activities - unrestricted
Total 2021
Total 2020		 Unrestricted
funds
2021
£
93,492
-
54,955
-
62
3,333
19,850
1,521
-
658
173,871
322,625		 Restricted
funds
2021
£
-
-
-
890,008
-
-
-
-
45,071
-
935,079
1,278,966		 Total
funds
2021
£
93,492
-
54,955
890,008
62
3,333
19,850
1,521
45,071
658
1,108,950
1,601,591		 Total
funds
2020
£
97,065
16,042
109,220
1,222,967
-
19,959
75,069
3,062
55,999
2,208
1,601,591

Page 40

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

6. Income from other trading activities

Income from non charitable trading activities

Bar
Your Shop
Catering
Total 2020		 Unrestricted
funds
2021
£
631,668
4,341
83,636
719,645
1,125,440		 Total
funds
2021
£
631,668
4,341
83,636
719,645
1,125,440		 Total
funds
2020
£
752,779
2,133
370,528
1,125,440

7. Investment income

Bank interest receivable
Total 2020		 Unrestricted
funds
2021
£
3,789
7,435		 Total
funds
2021
£
3,789
7,435		 Total
funds
2020
£
7,435

Page 41

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

8. Other incoming resources

CJRS income
Total 2020		 Unrestricted
funds
2021
£
516,618
236,151		 Total
funds
2021
£
516,618
236,151		 Total
funds
2020
£
236,151

9. Expenditure on raising funds

Other trading expenses

Bar expenses
Your Shop expenses
Catering expenses
Total 2020		 Unrestricted
funds
2021
£
881,043
13,791
367,161
1,261,995
1,496,696		 Total
funds
2021
£
881,043
13,791
367,161
1,261,995
1,496,696		 Total
funds
2020
£
893,234
1,095
602,367
1,496,696

The above figures include contributions to YUSU central operational costs of £3,262 (2020: £3,549) Yourshop, £75,032 (2020: £115,373) catering and £28,691 (2020: £10,872) bars. YUSU run trading services to generate and invest surpluses into charitable activities and to provide services that improve the lives of students. In addition they contribute to YUSU central operating costs.

Page 42

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

10. Analysis of expenditure on charitable activities

Charitable activities
Governance costs
Notes 11 and 12
Total 2020		 Unrestricted
funds
2021
£
1,807,382
14,675
1,822,057
1,751,581		 Restricted
funds
2021
£
749,232
-
749,232
1,219,949		 Total
funds
2021
£
2,556,614
14,675
2,571,289
2,971,530		 Total
funds
2020
£
2,956,771
14,759
2,971,530

Page 43

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

11. Direct costs

Academic Affairs
Affiliations
Duty of care
Events
Sports clubs and societies - restricted
Representation and democracy
Graduation Dinner and Summer Ball
Marketing
Colleges
Societies grant expenditure
Sports clubs
Advice and welfare
Volunteering, RAG and societies central costs
Other funds - restricted
Total 2020		 Unrestricted
funds
2021
£
90,680
46,039
19,350
380,322
-
144,137
-
229,880
42,046
28,701
136,689
116,122
125,271
-
1,359,237
1,291,304		 Restricted
funds
2021
£
-
-
-
-
699,090
-
-
-
-
-
-
-
-
50,142
749,232
1,219,949		 Total
funds
2021
£
90,680
46,039
19,350
380,322
699,090
144,137
-
229,880
42,046
28,701
136,689
116,122
125,271
50,142
2,108,469
2,511,253		 Total
funds
2020
£
110,602
62,739
14,093
136,430
1,168,738
157,299
672
225,682
49,398
48,719
243,834
118,309
123,527
51,211
2,511,253

Page 44

(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

12. Support costs

Academic Affairs
Affiliations
Duty of care
Events
Sports clubs and societies
Representation and democracy
Graduation dinner and Summer ball
Marketing
Colleges
Societies grant expenditure
Sports clubs
Advice and welfare
Volunteering, RAG and societies central costs
Other funds
Governance costs (note 12)
Pension finance cost
Total 2021
Total 2020		 Unrestricted
funds
2021
£
19,103
9,698
4,076
83,061
114,717
30,364
-
48,426
9,184
6,046
29,322
24,462
26,390
21,460
14,675
21,836
462,820
460,277		 Total
funds
2021
£
19,103
9,698
4,076
83,061
114,717
30,364
-
48,426
9,184
6,046
29,322
24,462
26,390
21,460
14,675
21,836
462,820
460,277		 Total
funds
2020
£
19,049
10,617
2,385
23,087
197,776
23,521
114
41,286
8,359
8,244
41,262
20,020
20,570
10,817
14,759
18,411
460,277

Resources expended are allocated to a particular activity where the cost relates directly to that activity. However, the central cost of administration of each activity are apportioned on the basis of an estimate of the amount of staff time attributable to each activity. These percentages are updated annually to reflect the activities carried out by staff in the relevant year.

Page 45

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

13. Governance costs

Auditor's remuneration - audit
Non-audit services
Trustees' expenses reimbursed		 Unrestricted
funds
2021
£
12,404
-
2,271
14,675		 Total
funds
2021
£
12,404
-
2,271
14,675		 Total
funds
2020
£
11,830
2,633
296
14,759

14. Staff costs

Wages and salaries
National insurance
Pension costs		 2021
£
1,726,321
111,605
33,858
1,871,784		 2020
£
1,699,631
118,515
36,475
1,854,621		 2021
£
1,090,277
87,987
26,392
1,204,655		 2020
£
1,292,050
89,024
27,334
1,408,408

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

Group Group Union Union
2021 2020 2021 2020
No. No. No. No.
176 169 81 71

Page 46

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

. Staff costs (continued)

The average headcount expressed as full-time equivalents was:

Resources
Representation
Opportunities
Wellbeing
Communities
Trading activities		 Group
2021
No.
26.0
7.1
5.1
4.0
3.0
35.7
81		 Group
2020
No.
22.4
7.0
4.8
4.0
3.0
29.8
71		 Union
2021
No.
26.0
7.1
5.1
4.0
3.0
-
45		 Union
2020
No.
22.4
7.0
4.8
4.0
3.0
-
41

No employee received remuneration amounting to more than £60,000 in either year.

The total amount of employee benefits (including employers' NI and pension contributions) received by key management personnel was £239,823 (2020: £265,700). The charity considers its key management personnel to comprise of the Chief Executive Officer, Head of Finance and Resources, Head of Representation, Head of Student Opportunities and Head of Commercial Services.

15. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 July 2021, Trustee expenses toalling £2,271 have been incurred (2020 - £296).

Page 47

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

16. Tangible fixed assets

Group

Cost or valuation
At 1 August 2020
Additions
Disposals
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
On disposals
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Motor vehicles
£
11,250
-
(6,250)
5,000
8,055
696
(6,250)
2,501
2,499
3,195		 Fixtures and
fittings
£
959,649
-
(190,153)
769,496
934,659
8,772
(190,153)
753,278
16,218
24,990		 Office
equipment
£
152,044
52,021
(45,802)
158,263
127,158
13,739
(45,801)
95,096
63,167
24,886		 Computer
equipment
£
45,772
12,298
(11,370)
46,700
38,043
6,544
(11,370)
33,217
13,483
7,729		 Total
£
1,168,715
64,319
(253,575)
979,459
1,107,915
29,751
(253,574)
884,092
95,367
60,800

Page 48

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

16. Tangible fixed assets (continued)

Union

Cost or valuation
At 1 August 2020
Additions
Disposals
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
On disposals
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Fixtures and
fittings
£
894,891
-
(189,951)
704,940
874,095
7,746
(189,951)
691,890
13,050
20,796		 Office
equipment
£
45,370
-
(45,369)
1
45,369
-
(45,368)
1
-
1		 Computer
equipment
£
45,772
12,298
(11,370)
46,700
38,043
6,544
(11,370)
33,217
13,483
7,729		 Total
£
986,033
12,298
(246,690)
751,641
957,507
14,290
(246,689)
725,108
26,533
28,526

Page 49

(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

17. Fixed asset investments

Union
Cost or valuation
At 1 August 2020
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Investments in
subsidiary
companies
£
1
1
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the Union:

Name Company Registered office or principal Class of Holding
number place of business shares
YUSU Commercial Services 06796193 The Student Centre, Heslington Ordinary 100%
Limited Lane, York, YO10 5DD

Included in consolidation

Yes

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ for the year £
£
YUSU Commercial Services Limited 957,358 895,313 62,045 76,765

Page 50

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

18. Stocks

Finished goods and goods for resale
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2021
£
17,779
Group
2021
£
63,175
-
18,176
41,572
122,923		 Group
2020
£
9,066
Group
2020
£
7,243
-
94,763
76,271
178,277		 Union
2021
£
1,427
Union
2021
£
10,087
102,996
13,647
45,049
171,779		 Union
2020
£
5,525
Union
2020
£
7,094
96,937
53,776
63,259
221,066

19. Debtors

Page 51

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

20. Creditors: Amounts falling due within one year

Defined benefit pension scheme funding liability
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
19,118
48,089
50,979
27,619
56,066
201,871		 Group
2020
£
12,326
39,233
49,058
28,271
33,273
162,161		 Union
2021
£
19,118
44,095
21,984
17,277
44,325
146,799		 Union
2020
£
12,326
26,960
27,488
26,956
26,051
119,781

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

Other creditors
Defined benefit scheme funding deficit liability		 Group
2021
£
26,247
589,916
616,163		 Group
2020
£
-
609,033
609,033		 Union
2021
£
-
589,916
589,916		 Union
2020
£
-
609,033
609,033

Page 52

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

22.
Statement of funds
Statement of funds - current year
Unrestricted funds
Designated funds
Staff personal development
General funds
YUSU General Fund
YUSU Commercial Services
reserves
Pension reserve
Total Unrestricted funds
Restricted funds
Clubs and societies
Other funds
Total of funds		 Balance at 1
August 2020
£
9,840
383,988
28,923
(621,359)
(208,448)
(198,608)
436,517
68,798
505,315
306,707		 Income
£
-
2,289,046
957,358
-
3,246,404
3,246,404
764,280
170,799
935,079
4,181,483		 Expenditure
£
-
(2,201,066)
(895,312)
12,326
(3,084,052)
(3,084,052)
(699,090)
(50,142)
(749,232)
(3,833,284)		 Transfers
in/out
£
-
14,204
(14,204)
-
-
-
-
-
-
-		 Balance at 31
July 2021
£
9,840
486,172
76,765
(609,033)
(46,096)
(36,256)
501,707
189,455
691,162
654,906

Page 53

UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

22.
Statement of funds (continued)
Statement of funds - prior year
Unrestricted funds
Designated funds
Staff personal development
General funds
YUSU General Fund
YUSU Commercial Services
reserves
Pension reserve
Total Unrestricted funds
Restricted funds
Clubs and societies
Other funds
Total of funds		 Balance at
1 August 2019
£
9,840
462,789
100,510
(523,021)
40,278
50,118
382,288
64,010
446,298
496,416		 Income
£
-
2,183,192
929,658
-
3,112,850
3,112,850
1,222,967
55,999
1,278,966
4,391,816		 Expenditure
£
-
(2,348,913)
(914,325)
(98,338)
(3,361,576)
(3,361,576)
(1,168,738)
(51,211)
(1,219,949)
(4,581,525)		 Transfers
in/out
£
-
86,920
(86,920)
-
-
-
-
-
-
-		 Balance at
31 July 2020
£
9,840
383,988
28,923
(621,359)
(208,448)
(198,608)
436,517
68,798
505,315
306,707

Page 54

(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

Description of funds

Clubs and Societies

Where individual clubs and societies raise income in their own right, e.g. through membership fees, any unspent balances at the year end are held as a restricted fund for application in the future.

Other funds

The Union receives funding for a range of other projects and programmes that are restricted in nature including sport and the mental health project and any unspent balances at the year end will be applied to the projects in future years.

Transfers

Transfers reflect the profits from the trading subsidiary which have been paid up to the charity as Gift Aid.

23. Summary of funds

Summary of funds - current year

Designated funds
General funds
Restricted funds
Summary of funds - prior year
Designated funds
General funds
Restricted funds		 Balance at 1
August 2020
£
9,840
(208,448)
505,315
306,707
Balance at
1 August 2019
£
9,840
40,278
446,298
496,416		 Income
£
-
3,246,404
935,079
4,181,483
Income
£
-
3,112,850
1,278,966
4,391,816		 Expenditure
£
-
(3,084,052)
(749,232)
(3,833,284)
Expenditure
£
-
(3,361,576)
(1,219,949)
(4,581,525)		 Transfers
in/out
£
-
-
-
-
Transfers
in/out
£
-
-
-
-		 Balance at 31
July 2021
£
9,840
(46,096)
691,162
654,906
Balance at
31 July 2020
£
9,840
(208,448)
505,315
306,707

Page 55

(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total
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
2021
£
95,367
686,411
(201,871)
(616,163)
(36,256)
Unrestricted
funds
2020
£
60,800
511,786
(162,161)
(609,033)
(198,608)		 Restricted
funds
2021
£
-
691,162
-
-
691,162
Restricted
funds
2020
£
-
505,315
-
-
505,315		 Total
funds
2021
£
95,367
1,377,573
(201,871)
(616,163)
654,906
Total
funds
2020
£
60,800
1,017,101
(162,161)
(609,033)
306,707

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

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

Net income/expenditure for the year (as per Statement of Financial
Adjustments for:
Depreciation charges
Bank interest
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in stocks
Decrease in debtors
Increase/(decrease) in creditors
Pension finance cost
Pension deficit remeasurement
Net cash provided by/(used in) operating activities
26.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
27.
Analysis of changes in net debt
Cash at bank and in hand		 Activities)
At 1 August
2020
£
829,758
829,758		 Group
2021
£
348,199
29,751
(3,789)
-
(8,713)
55,354
59,165
21,836
-
501,803
Group
2021
£
1,236,871
1,236,871
Cash flows
£
407,113
407,113		 Group
2020
£
(189,709)
61,537
(7,435)
(175)
25,537
59,015
(142,398)
18,411
113,299
(61,918)
Group
2020
£
829,758
829,758
At 31 July
2021
£
1,236,871
1,236,871

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(A company limited by guarantee)

UNIVERSITY OF YORK STUDENTS' UNION

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

28. Contingent liabilities

Future liability for costs of conversion

The Union occupies a building owned by the University of York under an informal arrangement. The costs of converting the building from its previous use as squash courts were met by the University with the agreement that they reserve the right to charge the Union and the other occupiers of the building, the Graduate Student Association, an agreed proportion of the costs of conversion.

The Union's share of these costs would amount to £88,000. No provision is made in these accounts on the basis that the University has at present not defined the terms of the Union's occupancy of the student centre and has no immediate intention of making any recharge. However, it has reserved the right to do so in the future.

29. 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 onwards 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 £119.1m 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 £140.9m.

The increase shown in the deficit since 2016 is in line with the changes previously reported, following annual reviews, but makes allowance for the impact of the 7% pension increase issue. This has increased the deficit in SUSS but its impact has been mitigated by the member consent exercise.

Whilst the assets have performed well, rising by over 17% over the three years, the liabilities have increased by a similar percentage. The sustained low yield on government bonds has continued to affect the liabilities, but the increase was driven in large part by the pension increase issue. The Trustees have concluded that the level of contributions to clear the deficit will have to rise above the planned 5% annual increase in order to address this. However, in order to allow time for unions to make the necessary arrangements the increase in contributions will come into effect from October 2021.

Following the 2020 increase, and in order to attribute the further increase in costs as fairly as possible, the Trustees have allocated the additional liabilities arising from the 7% pension increase issue to those unions whose members are directly affected by it. This means that a union with many affected members may see a substantial increase in their contributions to SUSS from October 2021, while a union with no members affected by the issue would see a much smaller increase.

The Trustees also considered whether the costs of carrying out the member consent exercise should be borne only by those unions whose members are directly affected by the pension increase issue. After careful consideration, and keeping in mind the principle of collectivism, they concluded that a significant proportion of the costs incurred were justifiable expenses of running SUSS as a whole (because benefits needed to be adjusted, and members written to, whether or not the compromise offer was made). What remained, once allocated to the many affected unions and reclaimed over a reasonable period of time, was not material in the context of the overall level of payments being made to SUSS by the unions, and so no additional charges will be made in respect of this.

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UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

29. Pension commitments (continued)

The existing recovery plan, based on the results of the 2016 valuation, was due to end in 2033. One option considered by the Trustees was to retain this target end date, in line with the Pensions Regulator’s guidance that funding deficits should be addressed over as short a period as possible. However, given the already substantial level of contributions being made to SUSS by the employers, the Trustees concluded that extending the recovery period, and hence reducing the initial increase in contributions that unions would be required to make, struck an appropriate balance between removing the deficit as quickly as possible while remaining affordable.

Under FRS102 the Union is required to recognise as a liability the present value of its agreed share of future deficit contributions. Finance costs are recognised as the present value unwinds.

The total contributions paid into the Scheme by University of York Students' Union in respect of eligible employees for the year ended 31 July 2021 amounted to £34,175 (2020: £33,368). The liability owed by University of York Students' Union in respect of future deficit contributions at the year end was £609,033 (2020: £621,359), split between amounts falling due within one year of £19,118 (2020: £12,326) and amounts falling due after more than one year of £589,916 (2020: £609,033).

The Union participates in the NUS Pension Scheme, a defined contribution pension scheme. The assets of the scheme are held separately from those of the Union in an independently administered fund. The pension costs charged represents contributions payable by the Union to the fund and amounted to £9,310 (2020: £9,310). There are unpaid contributions of £nil (2020: £nil) at the year end

30. Operating lease commitments

The Group and the Union had no commitments under non-cancellable operating leases at 31 July 2021 (31 July 2020 - none).

31. Related party transactions

The Union is in receipt of a recurrent grant from the University of York of £1,670,190 (2020: £1,369,769).

In addition the Union occupies its building on a rent free basis under an informal licence subject to the Union maintaining the building in a good state of repair. In accordance with the Charities SORP FRS 102, the trustees have estimated that the provision of space and associated services is worth £51,430 (2020: £51,430) to the Union and have recognised this amount in the Statement of Financial Activities.

The full-time officers of the Trustee Board receive remuneration for their services as provided for within the Constitution. The aggregate amount payable under such contracts in the year was £91,584 (2020: £106,714).

YUSU Commercial Services Limited is a wholly owned subsidiary of the University of York Students' Union. Some of the Trustees of the Union are also directors of this company. At the year end, amounts owed by YUSU Commercial Services Limited were £102,996 (2020: £96,937). During the year the Union received payments from the company relating to equipment rental of £15,739 (2020: £18,750), management charges of £12,000 (2020: £12,000) and a payment under gift aid of £14,204 (2020: £86,920). The Union made payments to YUSU Commercial Services limited of £11,362 (2020: £57,835) under a catering agreement.

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UNIVERSITY OF YORK STUDENTS' UNION

(A company limited by guarantee)

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

32. Controlling party

The Union is controlled by the Trustee Board which is subject to democratic election by the voting membership of the Union. The ultimate control of the Union is vested under the constitution in the membership in General Meeting. As such no single person or entity controls the Union as defined by FRS102.

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