|
Page |
| Administrative information |
I |
| Report ofthe trustees |
2 |
| Independent auditors’ report |
9 |
| Statementof Financial Activities |
12 |
| Balance sheet |
13 |
| Statement of cash flows |
14 |
| Principal accounting policies |
15 |
| Notes to the financial statements |
18 |
UNIVERSITY OF EAST LONDON STUDENTS' UNION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
INDEPENDENT AUDITOR'S REPORT
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the charity were Health and Safety, Safeguarding, Charity Commission regulations and General Data Protection Regulation (GDPR). Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on non-grant income, proof in total work on grant income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. Our audit procedures to respond to revenue recognition risks include testing a sample of income across the year to supporting documentation, and reviewing income received either side of the year end to ensure this has been recognised correctly.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: w.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. Our audit work has been undertaken so that we might state to the Charitable Company's members 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 the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Alastair Lyon
Senior Statutory Auditor For and on behalf of
Crowe U.K. LLP Statutory Auditor Reading
Date: 31 January 2022
Page 11
|
|
|
|
Year ended |
Year ended |
|
|
|
|
31 July |
31 July |
|
|
|
|
2021 |
2020 |
|
|
Unrestricted |
Restricted |
Total |
Total |
|
|
Funds |
Funds |
Funds |
Funds |
|
Note |
£ |
£ |
£ |
£ |
| INCOME AND ENDOWMENTS FROM: |
|
|
|
|
|
| Donations and legacies |
1 |
1,073,647 |
- |
1,073,647 |
1,072,997 |
| Charitable activities |
2 |
3,715 |
7,601 |
11,316 |
42,173 |
| Total |
|
1,077,362 |
7,601 |
1,084,963 |
1,115,170 |
| EXPENDITURE ON: |
|
|
|
|
|
| Charitable activities |
3 |
895,169 |
- |
895,169 |
856,249 |
| Total |
|
895,169 |
- |
895,169 |
856249 |
| Net Income |
|
182,193 |
7,601 |
189,794 |
258,921 |
| Transfers between funds |
13 |
- |
- |
- |
- |
| Pension charges |
12 |
17,754 |
- |
17,754 |
(453,154) |
| Net movement in funds |
|
199,947 |
7,601 |
207,548 |
(194,233) |
| RECONCILIATION OF FUNDS |
|
|
|
|
|
| Total funds broughtforward |
13 |
(1,041,367) |
5,921 |
(1,035,446) |
(841,213) |
| Total funds carried forward |
13 |
(841,420) |
13,522 |
(827,898) |
(1,035,446) |
|
|
31 July |
|
31 July |
|
|
|
2021 |
|
2020 |
|
|
Note |
£ |
£ |
£ |
£ |
| FIXED ASSETS |
|
|
|
|
|
| Tangible assets |
9 |
19,418 |
|
|
|
| Total fixed assets |
|
|
19,418 |
|
|
| CURRENTASSETS |
|
|
|
|
|
| Debtors |
10 |
73,222 |
|
45,471 |
|
| Cash at hand and in bank |
|
458,717 |
|
386,163 |
|
| Total current assets |
|
531,939 |
|
431634 |
|
| CURRENT LIABILITIES |
|
|
|
|
|
| Creditors: amounts falling due within one year |
11 |
20,117 |
|
22,424 |
|
| Net current assetsl(Iiabilities) |
|
|
511,822 |
|
409,210 |
| Total assets less current liabilities |
|
|
531,240 |
|
409,210 |
| Provisions for liabilities |
12 |
|
(1,359,138) |
|
(1,444,656) |
| Net assetsl(Iiabilities) |
|
|
(827,898) |
|
(1,035,446) |
| THE FUNDS OF THE CHARITY |
|
|
|
|
|
| Restricted funds |
|
|
13,522 |
|
5,921 |
| Unrestricted funds |
|
|
|
|
|
| Designated pension fund |
13 |
(1,359,138) |
|
(1,444,656) |
|
| Designated capital fund |
13 |
19,418 |
|
- |
|
| General funds |
13 |
498,300 |
|
403,289 |
|
| Total unrestricted funds |
|
|
(841,420) |
|
(1,041,367) |
| Total charity funds |
13 |
|
(827,898) |
|
(1,035,446) |
|
|
Year ended |
|
Year ended |
|
|
|
31 July |
|
31 July |
|
|
|
2021 |
|
2020 |
|
|
Note |
£ |
£ |
£ |
£ |
| Net cash flowfrom operating activities (see below) |
|
|
95,795 |
|
164945 |
| Cash flowfrom investing activities |
|
|
|
|
|
| Payments to aquire tangible fixed assets |
|
(23241) |
|
|
|
| Net cash flowfrom investing activities |
|
|
(23,241) |
|
- |
| Net increasel(decrease) in cash and cash equivalents |
|
|
72,554 |
|
164,945 |
| Cash and cash equivalents at 31 July 2020 |
15 |
|
386,163 |
|
221,218 |
| Cash and cash equivalents at 31 July 2021 |
15 |
|
458,717 |
|
386,163 |
| Cash and cash equivalents consist of: |
|
|
|
|
|
| Cash at bank and in hand |
|
|
458,717 |
|
386,163 |
| Cash and cash equivalents at 31 July 2021 |
15 |
|
458,717 |
|
386,163 |
| Reconciliation of net income to net cash flow from operating |
activities |
|
|
|
|
|
|
Year ended |
|
Year ended |
|
|
|
31 July |
|
31 July |
|
|
|
2021 |
|
2020 |
|
|
|
£ |
£ |
£ |
£ |
| Net income/(expenditure) for the period |
|
|
189,794 |
|
258,921 |
| Adjusted for: |
|
|
|
|
|
| Depreciation and impairment of tangible fixed assets |
|
3,823 |
|
1,630 |
|
| Decrease/(increase) in stocks |
|
- |
|
- |
|
| Decrease/(increase) in debtors |
|
(27,751> |
|
(31,263) |
|
| lncrease/(decrease) in creditors less than one year |
|
(2,307) |
|
196 |
|
| Loss on disposal offixed assets |
|
- |
|
- |
|
| Scheduled pension deficit payments |
|
(67,764) |
|
(64,539) |
|
|
|
|
(93,999) |
|
(93,976) |
|
|
|
95,795 |
|
164,945 |
| 1. Donations and legacies |
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Year ended |
|
|
|
31 July |
|
|
31 July |
|
|
|
2021 |
|
|
2020 |
|
Unrestricted |
Restricted |
Total |
Unrestricted |
Restricted |
Total |
|
Funds |
Funds |
Funds |
Funds |
Funds |
Funds |
|
£ |
£ |
£ |
£ |
£ |
£ |
| Block grant |
779,015 |
- |
779,015 |
763,740 |
|
763,740 |
| Donated services and facilities |
270,685 |
- |
270,685 |
268,173 |
- |
268,173 |
| Other grants |
23,947 |
- |
23,947 |
41084 |
- |
41,084 |
|
1,073,647 |
- |
1,073,647 |
1,072,997 |
- |
1,072,997 |
| 2. Income from charitable activ |
ities |
|
|
|
|
|
|
|
|
Year ended |
|
|
Year ended |
|
|
|
31 July |
|
|
31 July |
|
|
|
2021 |
|
|
2020 |
|
Unrestricted |
Restricted |
Total |
Unrestricted |
Restricted |
Total |
|
Funds |
Funds |
Funds |
Funds |
Funds |
Funds |
|
£ |
£ |
£ |
£ |
£ |
£ |
| Balls and events income |
129 |
- |
129 |
31,219 |
- |
31,219 |
| Societies income |
- |
7,601 |
7,601 |
- |
3,523 |
3,523 |
| NUS and other income |
3,586 |
- |
3,586 |
7,431 |
- |
7,431 |
|
3,715 |
7,601 |
11,316 |
38,650 |
3,523 |
42,173 |
| 3. Expenditure on charitable activities |
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
31 July |
|
|
Other |
Support |
2021 |
|
Staff |
direct |
costs |
Total |
|
costs |
costs |
(note 4) |
Funds |
|
£ |
£ |
£ |
£ |
| Charitable activities |
|
|
|
|
| StudentAdvice |
4,402 |
21,907 |
25,133 |
51,442 |
| Shops and Bars |
- |
- |
- |
- |
| Campaigns and Comms |
- |
- |
- |
- |
| Events and Entertainments |
- |
11,067 |
10,572 |
21,639 |
| Clubs, Affiliations |
382,499 |
- |
365,382 |
747,881 |
| Societies (restricted) |
- |
- |
- |
- |
|
386,901 |
32,974 |
401,087 |
820,962 |
| Governance |
|
|
|
|
| Legal and professional fees |
- |
13,920 |
- |
13,920 |
| Other governance costs |
- |
24,033 |
36,254 |
60,287 |
|
- |
37,953 |
36,254 |
74,207 |
|
386,901 |
70,927 |
437,341 |
895,169 |
| Unrestricted |
386,901 |
70,927 |
437,341 |
895,169 |
| Restricted |
- |
- |
- |
- |
|
386,901 |
70,927 |
437,341 |
895,169 |
|
|
|
|
Year ended |
|
|
|
|
31 July |
|
|
Other |
Support |
2020 |
|
Staff |
direct |
costs |
Total |
|
costs |
costs |
(note 4) |
Funds |
|
£ |
£ |
£ |
£ |
| Charitable activities |
|
|
|
|
| StudentAdvice |
2,710 |
39,811 |
55,320 |
97,841 |
| Shops and Bars |
- |
- |
- |
- |
| Campaigns and Comms |
- |
1,950 |
2,537 |
4,487 |
| Events and Entertainments |
- |
53,979 |
70,226 |
124,205 |
| Clubs, Affiliations |
238,350 |
3,773 |
314,998 |
557,121 |
| Societies (restricted) |
- |
- |
- |
- |
|
241,060 |
99,513 |
443,081 |
783,654 |
| Governance |
|
|
|
|
| Legal and professional fees |
- |
13,626 |
- |
13,626 |
| Other governance costs |
- |
17,924 |
41,045 |
58,969 |
|
- |
31,550 |
41,045 |
72,595 |
|
241,060 |
131,063 |
484,126 |
856,249 |
| Unrestricted |
241,060 |
131,063 |
484,126 |
856,249 |
| Restricted |
- |
- |
- |
- |
|
241,060 |
131,063 |
484,126 |
856,249 |
| 4. Support costs |
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Year ended |
|
|
|
31 July |
|
|
31 July |
|
|
Other |
2021 |
|
|
2020 |
|
Staff |
direct |
Total |
Staff |
direct |
Total |
|
costs |
costs |
Funds |
costs |
costs |
Funds |
|
£ |
£ |
£ |
£ |
£ |
£ |
| Charitable activities |
|
|
|
|
|
|
| StudentAdvice |
566 |
24,567 |
25,133 |
6,396 |
48,924 |
55,320 |
| Retail |
- |
- |
- |
- |
- |
- |
| Campaigns and Comms |
- |
- |
- |
293 |
2,244 |
2,537 |
| Democratic Representation |
- |
- |
- |
- |
- |
- |
| Events and Entertainments |
238 |
10,334 |
10,572 |
8,119 |
62,107 |
70,226 |
| Clubs, Affiliations |
8,224 |
357,158 |
365,382 |
36,418 |
278,580 |
314,998 |
| Societies (restricted) |
- |
- |
- |
- |
- |
- |
|
9,028 |
392,059 |
401,087 |
51,226 |
391,855 |
443,081 |
| Governance |
|
|
|
|
|
|
| Governance |
816 |
35,438 |
36,254 |
4,745 |
36,300 |
41,045 |
|
9,844 |
427,497 |
437,341 |
55,971 |
428,155 |
484,126 |
|
|
|
|
Year ended |
|
|
Year ended |
|
|
|
|
31 July |
|
|
31 July |
|
|
|
|
2021 |
|
|
2020 |
|
|
Unrestricted |
Restricted |
Total |
Unrestricted |
Restricted |
Total |
|
|
Funds |
Funds |
Funds |
Funds |
Funds |
Funds |
|
|
£ |
£ |
£ |
£ |
£ |
£ |
| Pcnon |
charge |
(17,754) |
- |
(17,754) |
453,154 |
- |
453,154 |
|
|
(17,754) |
- |
(17,754) |
453,154 |
- |
453,154 |
| 6. Auditors’ remuneration |
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Year ended |
|
|
|
31 July |
|
|
31 July |
|
|
|
2021 |
|
|
2020 |
|
Unrestricted |
Restricted |
Total |
Unrestricted |
Restricted |
Total |
|
Funds |
Funds |
Funds |
Funds |
Funds |
Funds |
|
£ |
£ |
£ |
£ |
£ |
£ |
| Currentyear |
13,920 |
- |
13,920 |
13,626 |
- |
13,626 |
| 7. Wages and salary cost |
|
|
|
Year ended |
Year ended |
|
31 July |
31 July |
|
2021 |
2020 |
|
Total |
Total |
|
Funds |
Funds |
|
£ |
£ |
| Gross wages |
419045 |
341,446 |
| Employer’s national insurance costs |
33,333 |
28,187 |
| Pension costs |
17,705 |
11,493 |
| Pension deficit charge |
(17,754) |
453,154 |
| Termination payments |
- |
- |
|
452,329 |
834,280 |
| The average number ofemployees during the period under reviewwas: |
Year ended |
Year ended |
|
31 July |
31 July |
|
2021 |
2020 |
| Assessed on an average headcount basis |
18 |
14 |
| There were no employees with emoluments (excluding employer pension costs) above £60,000 in this or the preceding year |
|
|
| The number ofstaffto whom retirement benefits are accruing under defined contribution schemes: |
Year ended |
Year ended |
|
31 July |
31 July |
|
2021 |
2020 |
| Management |
2 |
2 |
| Student services |
8 |
4 |
|
10 |
6 |
|
|
Salary |
Employer’s NI |
Pension |
Total |
|
|
£ |
|
£ |
£ |
| Sabbatical |
officers |
to July 2021 |
|
|
|
| SamtanI |
|
19,654 |
1,599 |
263 |
21,516 |
| Durrani |
|
19,654 |
1,599 |
808 |
22,061 |
| Pradeep |
|
19,654 |
1,599 |
- |
21,253 |
| Sabbatical |
officers |
from July 2021 |
|
|
|
| Kottikulam |
Aboo |
1,750 |
140 |
- |
1,890 |
| Gupta |
|
1,750 |
140 |
- |
1,890 |
| Rajendran |
|
1,750 |
140 |
- |
1,890 |
|
|
64,212 |
5,217 |
1,071 |
70,500 |
| 9. Fixed assets |
|
|
|
|
|
|
|
|
Club |
and |
|
|
|
|
|
societies |
|
Computer |
Fixtures & |
|
|
|
equipment |
|
equipment |
fittings |
TOTAL |
|
|
£ |
|
£ |
£ |
£ |
| Cost |
|
|
|
|
|
|
| At31 July2020 |
|
|
2,438 |
14,563 |
4,765 |
21,766 |
| Additions |
|
|
- |
23,241 |
- |
23,241 |
| Disposals |
|
|
|
|
|
|
| At 31 July 2021 |
|
|
2,438 |
37,804 |
4,765 |
45,007 |
| Depreciation |
|
|
|
|
|
|
| Accumulated at 31 July 2020 |
|
|
2,438 |
14,563 |
4,765 |
21,766 |
| Charge for the year |
|
|
|
3,823 |
- |
3,823 |
| On disposals |
|
|
|
|
|
|
| At31 July2021 |
|
|
2,438 |
18,386 |
4,765 |
25,589 |
| Net book value at 31 July 2021 |
|
|
|
19,418 |
|
19,418 |
| Net book value at 31 July 2020 |
|
|
|
|
|
|
| 10. Debtors |
|
|
|
|
|
|
|
|
|
|
|
31 July |
31 July |
|
|
|
|
|
2021 |
2020 |
|
|
|
|
|
Total |
Total |
|
|
|
|
|
Funds |
Funds |
|
|
|
|
|
£ |
£ |
| Trade debtors |
|
|
|
|
|
3,663 |
| Owed from University of East |
London |
|
|
|
|
39,326 |
| Prepayments and accrued income |
|
|
|
|
70,290 |
2,482 |
| Other debtors |
|
|
|
|
2,932 |
|
|
|
|
|
|
73,222 |
45,471 |
| 11. Creditors |
|
|
|
|
|
|
|
|
|
|
|
31 July |
31 July |
|
|
|
|
|
2021 |
2020 |
|
|
|
|
|
Total |
Total |
|
|
|
|
|
Funds |
Funds |
|
|
|
|
|
£ |
£ |
| Trade creditors |
|
|
|
|
1,624 |
5,147 |
| Accruals |
|
|
|
|
18,493 |
17,088 |
| Other creditors |
|
|
|
|
|
189 |
|
|
|
|
|
20,117 |
22,424 |
| 12. Provisions for liabilities |
- Pension liability |
|
|
|
|
|
|
|
|
|
|
31 July |
31 July |
|
|
|
|
|
2021 |
2020 |
|
|
|
|
|
Total |
Total |
|
|
|
|
|
Funds |
Funds |
|
|
|
|
|
£ |
£ |
| Balance brought forward |
|
|
|
|
1,444,656 |
1,056,041 |
| Scheduled payments made |
|
|
|
|
(67,764) |
(64,539) |
| Addition for extended period, |
change in rate and unwinding of discount |
|
|
|
(17,754) |
453,154 |
| Balance carried forward |
|
|
|
|
1,359,138 |
1,444,656 |
| 13. Analysis of net movement in funds |
|
|
|
|
|
|
|
Total funds |
Total |
Total |
|
Transfers |
Total funds |
|
brought |
incoming |
resources |
Pension |
between |
carried |
|
forward |
resources |
expended |
charges |
funds |
forward |
|
£ |
£ |
£ |
£ |
£ |
£ |
| Restricted funds |
|
|
|
|
|
|
| Societies funds |
5921 |
7,601 |
- |
- |
- |
13,522 |
|
5,921 |
7,601 |
- |
- |
- |
13,522 |
| Unrestrictedfunds |
|
|
|
|
|
|
| Pension reserve |
(1,444,656) |
- |
- |
17,754 |
67,764 |
(1,359,138) |
| Capital reserve |
- |
- |
- |
- |
19,418 |
19,418 |
| Total designated funds |
(1,444,656) |
- |
- |
17,754 |
87,182 |
(1,339,720) |
| General fund |
403,289 |
1,077,362 |
(895,169) |
- |
(87,182) |
498,300 |
| Total unrestricted funds |
(1,041,367) |
1,077,362 |
(895,169) |
17,754 |
- |
(841,420) |
| Total funds |
(1,035,446) |
1,084,963 |
(895,169) |
17,754 |
- |
(827,898) |
| 14. Analysis of net assets between funds |
|
|
|
|
|
|
|
|
31 July |
|
|
|
|
2021 |
|
Unrestricted |
Designated |
Restricted |
Total |
|
Funds |
Funds |
Funds |
Funds |
|
£ |
£ |
£ |
£ |
| Fixed assets |
- |
19,418 |
- |
19,418 |
| Net current assets |
498,300 |
- |
13,522 |
511,822 |
| Provisions for liabilities |
|
(1,359,138) |
- |
(1,359,138) |
|
498,300 |
(1,339,720) |
13,522 |
(827,898) |
|
|
|
|
31 July |
|
|
|
|
2020 |
|
Unrestricted |
Designated |
Restricted |
Total |
|
Funds |
Funds |
Funds |
Funds |
|
£ |
£ |
£ |
£ |
| Net current assets |
403,289 |
- |
5,921 |
409,210 |
| Provisions for liabilities |
- |
(1,444,656) |
|
(1,444,656) |
|
403,289 |
(1,444,656) |
5,921 |
(1,035,446) |
| 15. Analysis of changes in net debt |
|
31 July 2020 |
Cashflows |
31 July 2021 |
| Cash & Cash equivalents: |
|
|
|
|
| Cash |
|
235 |
- |
235 |
| Cash equivalents |
|
385,928 |
72,554 |
458,482 |
|
|
386,163 |
72,554 |
458,717 |
| e as |
sumptions used in the valuation are as follo |
ws: |
| Pre- |
retirement discount rate |
4.3% pa |
| Post |
retirement discount rate |
2.3%pa |
| RPI |
|
3.2% pa |
| CPI |
|
2.2% pa |
| Pension increases in payment |
|
|
|
Post 1997 (RPI mm
3% mac 5%) |
3.6% pa |
|
Post 2000 (RPI max 5%) |
3.1% pa |
| Mortality projections |
|
CMI 2015 projections with a long term rate ofimprovement of 1.5% pa |
| 17. Comparative figures |
- Statement of Financial Activities |
|
|
|
|
|
|
|
Year ended |
|
|
|
|
31 July |
|
|
|
|
2020 |
|
|
Unrestricted |
Restricted |
Total |
|
|
Funds |
Funds |
Funds |
|
|
£ |
£ |
£ |
| INCOME AND ENDOWMENTS FROM: |
|
|
|
|
| Donations and legacies |
|
1072997 |
- |
1,072997 |
| Other trading activities |
|
- |
- |
- |
| Charitable activities |
|
38,650 |
3523 |
42,173 |
| Total |
|
1,111,647 |
3,523 |
1,115,170 |
| EXPENDITURE ON: |
|
|
|
|
| Charitable activities |
|
856,249 |
- |
856,249 |
| Total |
|
856,249 |
- |
856,249 |
| Net Income |
|
255,398 |
3,523 |
258,921 |
| Transfers between funds |
|
- |
- |
- |
| Pension charges |
|
(453,154) |
- |
(453,154) |
| Net movement in funds |
|
(197,756) |
3,523 |
(194,233) |
| RECONCILIATION OF FUNDS |
|
|
|
|
| Total funds brought forward |
|
(843,611) |
2,398 |
(841,213) |
| Total funds carried forward |
|
(1,041,367) |
5,921 |
(1,035,446) |