Northumbria Students, Union Final Managemer)t Report For the period ended 31 July 2024 This document is strictly private and confidential Armstron9Watson' Accountants. Business & Financial Advisers www.arrnstrongwatson.co.uk ME￿￿Me￿waY. RDSeh1l.CarklE.C4l2WknaEirfIT￿ IknEtstwWatscnLLP s regu￿￿edbY thE IrEkn￿e c*CharteredAcrour*an a(tMIw15 U￿￿. o￿￿¥￿t￿.￿h¢rw￿r1yorbY th¢cwtvf.wff u5¢1h*Wcfd.￿[(n¢ ICAEW CH•&TERED r￿¢￿9W￿lS￿A￿fLv￿￿ffd￿ &(hart¢rffdAC￿tanWlnEn*ndaTrJwa1fjs m￿tre￿￿wats￿ refÈr￿efiWnb￿ ftÈgrteredtr. trcfftgwafsth7Tn￿*v. 8ty19 5656.Trc￿t¥e6￿•￿jJw.Warsth) si FINAL MANAGEMENT REPORT 31 July 202rJ CONTENTS a. INTRODUCTION Purpose This reporl has been prepared for the Trustees of Northumbria Students. Union to bring attention to various matters arising from the au(Jit OF Northumbria students, Union For the period ended 31 July 2024. Responsibilities Details OF the responsibilities OF the Trustees OF Northumbria Studenis, Union are set out in our engagement terms (Jated 21 August 2024. Armstrong Watson Audit Limited. as auditor to Northumbria Students, Union, is responsible For Formin9 an opinion on the financial statements. Details off our responsibilities are seLouL in our engagement terms. The audiL oFthe financial stalemenis does not relieve management or those thar9ed with 9overnance OF their responsibilities. Limitations Our audit procedures, which have been designed to enable us Lo express an opinion on the financial statements, have included the examination OF the transactions and the controls thereon OF Northumbria Students, Union. The International Standards on Audiling IUK) do noL require us to design audiL procedures For the purpose OF identiFying supplementary matters to communicate with those charged with governance. Our audit included consideration of internal controls relevant to the preparation OF the financial statements in order to design audit procedures that are appropriaLe in the circumstances, but not For expressing an opinion on the eFFectweness OF internal control or to identiffy any significant deficiencies in their (Jesign or operation. We have included in this report only those matters that have come to our attention as a result OF our normal audit procedures and, consequently, our commenis should not be regarded as a comprehensive recor(J of all deficiencies that may exist or improvements that could be made. This report is to be regarded as confidential to the Trustees OF Northumbria Students, Union and is intended For use by them and staff OF Northumbria Students, Union only. No responsibility is accepted to any other person in respect OF the whole or part OF its contents. BeFore this report. or any part OF it. is disclosed to a third party our written consenl must be obtained. Northumbria Students, Union Pa9e3 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ Independence Based on the information provided by you and our own internal procedures to saFeguard our independence as auditors. we confirm that there are no relationships between us and any oFour related or subsidiary companies and you and your related enLiLies creating an actual or perceived threal to our independence within the regulatory or proFessional requirements governin9 us as your auditors. Northumbria Students, Union Pa9e 4oF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ 2. AUDIT RISK AREAS Significant Audit Risks Significant audit risks highlighted in the AudiL Siralegies Memorandum Significant risk Our response Findings Revenue Reco9riition We have perForme(J Lesling procedures to determine the occurrence. classification, measuremenL and completeness of income. No issues noled. The ISA'S prescribe that revenue recognition is the area OF the financial statements most likely to perpetuate fraud. Management Override We have perFormed journals Lesknng to consider journals most likely to be indicakn.ve oFmana9ement override OF conirols. as well as maintained proFessional scepiicism throughout the audit as we have performed our Lesling procedures, remainin9 alert to transactions indicating a management overri(Je OF controls. Key Audit Focus Areas Key audit Focus areas highlighted in the AudiL Sirategies Memorandum No issues noted. In addition to Fraud by revenue the ISA'S prescribe that all audits remain sceptical For evidence OF management override or bias. Key area OF Focus Classification OF income and expenditure Our response We have perfforme(J testing to consider the nature OF income and expenditures incurred in the year Findings No issues were identiFied. Additional Risks Identified We have not identified any additional risks durin9 the audit process and thereFore we have not had to amend our planned audiL procedures. Northumbria Students, Union Pa9e 5 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ 3. SUMMARY OF ADJUSTMENTS Late Adjustments (Following receipt OF inFormation) The Trustees have iderltified the below year end accountin9 adjustments. These have been approved by the board and posted to the nominal ledger in the year to 31 July 202q and thereFore they are recognised in the profit reconciliation From the opening position as presented at the starL OF the audit work. Surplus per managemenl accounts presented For audiL Late client adjustment- increase accruals Surplus per Financial statements 81,244 (5,000) 76,244 Unadjusted Audit DiFFerence No audit difFerences have been identified which remain unadjusled. Northumbria Students, Union Pa9e 6oF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ 4. AUDIT FINDINGS Matters IdentiFied To Bring To Your Attention We noted that historically the entsty has not recorded transactions with the University. Whllst there is no oveH3p off indwidu81s on the board. gii¥en the vefy nature that 311 Univers/ty are reouired to have a separately operated student union, then we consider th/s to be 3 r818tedp3rty. We wou/dtherefore recommenclth3t trans3Ctions between the two partles are crfisdosed within the finanaal statements. Eol/ow/ng agreement wlth management this has been inserted within the financialstatements in the accounts to 37 Ju/y2024. Key Audit Judgements None notecl. Qualitative Aspects OF Financial Statements There are no qualilative aspects which we would like Lo bring Lo you attention.. Northumbria Students, Union Page 7 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ 5. INTERNAL CONTROLS SigniFicant DeFiciencies In Internal Controls We have not identified any significant deficiencies in the internal controls. However please reFer lo the section below For recommendations on improvements in internal systems identiFied during the course OF the audit. Systems Improvements These controls have b￿n assessed on the Following basis: Recommendation Rating / Colour Definition Red Priorty RecommendatKins whih are fundamental to the System and upon wh￿h the organsatKin shoukj take immedk3te action. Amber Pr￿￿tY RecommendatK)ns whih, a￿hOUgh rK)t fundamental to the system, pmvide scope for inprovements to be made. Recommendath)ns concerning ssues whKh are Cons￿ered to be of a minor nature, but whKh neverthe￿55 need to be addressed. Issues conceming potentkil opportunlcies for management to irnprove the operat￿nal eftEncy andlor effectweness of the system. Green Prw)nty lrnproved system Potential Obserwdbon Red Priorty None FlskArisino RecCrfnr￿￿ ACti(￿S Manaoement Response None Green Priority Society expenditure We noLed thaL From a sample oFclaim Forms submitted by societies For expenditure incurred. a number were incorrectly com leted. Improved System Potential None Risk that the expenditure incurre(J is FraudulenL or that the expenditure relates to a prior or Future year. We recommené that claim forms submiLLed by societies are rejectedlreturned where they are incomplete. Only complete Forms should be accepted. Noted. Following the year end. we have introduced a new system (Sums) which is an electronic system to record expenditure and will eliminate the issues noled within testin9. Northumbria Students, Union Page 8 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ 6. AUDIT CONCLUSIONS SigniFicant DiFFiculties Encountered During The Audit No signiFicant difficulties were encountered during the audit. We would like to thank all members oFstafF for their assisLance throughouL the engagement. Written Representations A Letter OF Representation will be signed on behalF OF the Trustees prior to the audited accounts being issued. Please note that we will not be seeking any specific representations. Audit Opinion We anticipate that we will issue an unmodified audit report on the financial statements OF Northumbria SLudenis' Union, subject to the Trustees approvin9 the accounts as presented to us. Acknowledge OF Final Report Ime acknowledge receipt of the Final management report on behalF OF those charged with governance vka Arushi Sinha (Jan 10,2025 10..51 GMT) Signed:............................................................ Arushi Sinha Name.............................................................. NSU President Position:.......................................................... 1010112025 Date:................................................................ Northumbria Students, Union Pa9e 9oF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ APPENDIX 1 a. Cyber & Data Protection We would like to bring Lo youratlention some recentdevelopments in this imporlant area. It is clear From recent well publicised cyber-alLacks on UK entiknes thal data breaches are OF a major concern and risk to companies both Financially and reputationally. Most companies are (Jata controllers under the Data Protection Act (2018) which was applicable in the UK From May 2018. Whilst this is over five years ago, a company's responsibility remains to have all appropriate protocols and proce(Jures in place, demonstrating that your risks continue to be appropriately managed and regularly reviewed and that your outsourced ackn"vikn"es are similarly covered. We recommend you consi(Jer regularly reviewing and if necessary, reFreshing existing cyber security policies, procedures and thecklists. In addition, updating your Risk Reglster For the methodology you use to ensure your company s protocols are suFFiciently robust in this area. These should be kept under regular review. Raise awareness and train siafF. The mosl common types oFbreaches can be linked lo human Factors, such as unwittingly clicking on a malicious link. StaFFawareness an(J vigilance are essential to a business, cyber security alongside any Lechnical and sof￿are protections. Raising awareness and education across all staff - notjust specialist IT stafF- is essential. On the next page are the ten steps to cyber security as issued by the National Cyber Security Centre Northumbria Students, Union Page 10 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ ce ti @J Ill 11171 rfg Fllji;: i ill¥ iiilfi Il jigZI illi }31}11 slt { sjil Northumbria Students, Union Page11 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ b. Upcoming changes to FRS102 Following consultaknons under exposure draFt (FRED82) in Mardi 2024 a revised FRS102 was issued. There are a number oFexLensive dianges lo update the standard to align it more closely with International Financial Reporting Standards (IFRS). The chan9es apply to accounting periods commencing 1 January 2026 onwards. The main changes include: Revenue A new model For revenue recognition is now mandated. This model is based on the five sLep model For revenue recognilion in IFRS15 with a small number oFsimplifications. Revenue will be largely reco9nised based on promises induded in contracts with customers and whether these are satisfied over time or at a point in time. This may mean that revenue will be reco9nised in a diFFerent accountin9 period to which it is now. Leasin A new on-balance sheet mo(Jel has been adopted. This model is based on the IFRS16 leasing requiremenis with a small number oFsimplificalions. Lessees with signiFicanl operating leases will be the mosL aFFecLed by the new arrangements as most lease(J assets and lease liabilities will come onto the balance sheet. Exceptions are available For small value leases and For short term leases ( those with a lease term OF12 months and under at commencement) There is no monetary limit state(J in the standard in determining what are small value leases. The disclosures under the new standard are significantly more extenswe both in volume and complexity. There is not much of an impact on lessors. Other Following Brexit, there has been changes to disdosures For small companies. Disclosures in Appendix E to section 1A. whidi currently are encouraged, will become mandatory. This means that Full related party (Jisdosures and (Jividend rlotes will be required again. Northumbria Students, Union Page 12 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ The revisions will aFFect accounting perio(Js commencin9 on 1- January 2026 although early adoption will be permitted iFall dianges to the standard are applied at the same time. c. Employment taxes risk Factors Employment taxes red flags All of these scenarios present significant tax risk to clients and it is important lo reco9nise when it is an issue For you. Fact attern High contractorlconsultancy expendilure le.g. E50k+ For smaller clients, E100k+ For larger clients) Payments to employment agencies or labour providers Risks Non-compliance with employment status rules Nol completing statutory IR35 processes osure For both can be si nificant PAYEINIC liabilities can oFten be transFerred IF agency is non-complianl IR35 responsibilities For end client IF oFF-payroll labour exists Almost certainly 90ing to be a compliance Failure that needs to be fixed Risk oFreputational damage as well as financial cost Non-compliance with CIS (also links to em ment status) May have wrongly applied E30k exemption (noL automatic) May not be Following statutory Formula For Post Em ment Notice Pa Vehicles may be incorrectly classified as vans For tax purposes (Following leading case law) Incorrect use OF the commuting exemption For vans May not be reporting BIKS correctly (or at all). Strict rules can bring many accommodalion into a charge to tax Incorrect use OF (limited) work-related exem tions S.455 ￿ posiLion irrelevanL lo employment tax position - is this being reported correctly on P11Ds? Over(Jrawn accounts offten indicate other bad practices which can give rise Lo taxlNIC char es Rules are complex and may give rise Lo ad(Jitional tax/NIC charges around Permanent Workplace rules Tax avoidance IF not genuine employments with robust records ke t to evidence this Trustees or board members being paid oFF-payroll (excluding dividen(Js) Construction Industry Scheme tax aid or received Si9niFicant expenditure on redundancy or other pay-ofFs Double-cab pickups or vans owned or leased by the business Accommodation costs (rent or purchase), excluding commercial premises Overdrawn director loan accounts Significanl expenditure on travel and subsistence Family members receiving salaries Northumbria Students, Union Pa9e13 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ d. Holiday pay entitlement reforms The UK government has introduced reforms Lo simplify holiday entitlemenL and holiday pay calculations. These changes, efFeckn"ve From 1 January 2024, include: Defining irregular hours workers and part-year workers: This relates to the introduction oFthe holiday entitlement accrual method an(J rolled-up holiday pay. Calculating statutory holi¢Yay entidement For irregular hours and part-year workers: A method has been introduced to determine holicjay entitlement For these workers. Accrued leave calculation: When irregular hour or part-year workers take materr)ity or Family-related leave or are OFF sick, a method is used to calculate their accrued leave. Removal OF COVID-19 camJover acuual.. The Working Time (Coronavirus) (Amendment) Regulations 2020, which affected COVID-19 carryover OF leave, have been removed. Holiday pay rates: The current raLes remain unchanged, with 4 weeks paid al Lhe ormal rate oFpay and 1.6 weeks paid at the basic rate OF pay. Two distinct pots OF leave are retained. Definition oF'normal remuneration.: This is clarified in relation to the 4 weeks OF statutory annual leave. Rolled-up holiday pay: An alternative method For calculating holiday pay For irregular hours workers and parL-year workers. rirr What is an irregular worker? A worker is an irregular hours worker, in relation to a leave year, IF the number OF paid hours that they will work in each pay period during the term OF their contracL in that year is, under the terms OF their contract, wholly or mostly variable. This could be a 'casual' contract or a zero hours contract. What is ap3rt-gg8r worker? A worker is a part-year worker, in relation to a leave year, IF, under the terms OF their contract, they are require(J to work only part oFthat year and there are periods within that year (during the term oFthe contract) of at least a week which they are not required to work and For which they are not paid. This includes part- year workers who may have fixed hours. Northumbria Students, Union Pa9e14oF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ What is the chan e in calculatin holida For leave years beginning on or after 1 April 2024, there is a new accrual method ffor irregular hour workers and parl-year workers in the first year OF employment and beyond. Holiday entitlement For these workers will be calculated as 12.07Wo oFaclual hours worked in a pay period. Worked example: Mr Watson works 70 hours in May 2024. l. Divide the hours worked in that pay period by 100 2. Mulitply by 12.07%- 0.70 x 12.07= 8.449 Round up to the nearest hour- 9 hours of holiday accrued for the month of May - 7011￿ = 0.70 Chan es Lo maternit or famil related leave or off sick leave Leave is accrued in these instances using the same method outlined above. bul using a 52 week relevant period to calculate an avera9e For hours worked. This 52 week period works backwards From the first date OF leave. The employer is only required to calculate this one per period OF leave. Worked example: Mrs Watson is a part-year worker who is entitled to the minimum 5.6 weeks statutory holiday entitlement. Over a 52 week period, she worked 25 weeks for a total oF900 hours. She then Look the following 40 weeks as maternity leave: 1. Calculate average hours per week (Juring the relevant 52 week period leading up to the first day of maternity leave- 52 weeks- 5.6 holiday pay - 46.4 weeks. 900 hours 146.4 weeks - 19.397 hours (3dp) 2. Calculate the number oFhours oFannual leave accrued per week OF the maternity period 19.397 1100 x 12.OTA- 2.341 3. Calculate the total number OF hours oFannual leave accrued whilst on maternity 2.341 x 40 weeks - 93.64 In this example Mrs Watson would have 94 hours holiday enLillement accrued under the new rules. Holida rates Regulation 13 OF the Working fime Regulations now states that 4 of the 5.6 weeks paid statutory holiday entitlement For the year must be paid at a worker's 'normal' rate OF pay. The remaining 1.6 weeks, can be paid at'basic, rate oFpay. Northumbria Students, Union Page 15 OF16 Armstron9Watsorf FINAL MANAGEMENT REPORT 31 July 202rJ From 1 January 2024, 'Normal rate, oFpay is defined as: Payments, including commission payments, intrinsically linked to the performance of tasks which a worker is contractually obliged to carry out. Payments relating to length of service, professional status or professional qualifications. Other payments. such as overtime payments. which have regularly been paid to a worker in the 52 weeks preceding the calculation date. Basic pay - a workers wages that they woul(J have earned had they been workin9 (not including bonuses, commission and other additional payments). For leave years beginning on or aFter 1 April 2024. part-year and irregular hours workers are legally enkntled up Lo a maximum amount of 5.6 weeks OF paid stalutory holiday entitlement per year, calculated according to actual hours Wofked using the 12.07¥0 accrual method. IF their employer chooses to use rolle(J-up holiday pay, then the entire amount OF their leave for irregular hours and part-year workers will be paid at the 'normal' rate OF pay. Rolled-u holida For irre ular hour and art- ear workers onl Employers have an option which allows them to include an additional amount with every payslip to cover a worker's holiday pay. rather than paying it whilst the worker is on annual leave. This can only be used on leave years beginning on or after 1 April 2024. Holiday pay is still calculated using the 12.07% based on a workers total pay in a pay period. IF employers want lo opt to use this method. they will need to revisit contracts OF employment and their HR team to ensure that variations are made where required. Holiday pay will also nee(J to be separated out on a workers payslip, and paid at the same time as their normal pay. Northumbria Students, Union Pa9e16oF16 Armstron9Watsorf northumbria To.. Armstro￿ Watson students, union Oear Sirs TIE folk)wing reF￿￿tatIonS are made ￿ the basis of ￿quirieS d management and staff wtlh relevant knc￿adg0 and oxporièneè auch as w¢ c¢xK￿der The¢￿￿ary Fn ￿meLlion WFth youi au(ttt of the company s rinancial Sialoments ft¥ the year ended 31 Juty 2024. These e￿uIrIeS have I￿￿ded inwtion of SUPFQrting documentation wheie aFvropriate and are suffic*nl to satisfy wrsefves Ihat we can make each of the following repr￿￿tationS. AJI representatic￿S are made lo the L*st d our krMThvledge a￿j belief. GENERAL We have fulfilled Our respJnsily"lities a5 dIr￿torS. as set oul in the temis of your engagement lett￿ dated 21W August 2024 und8r the Companies Act 2006. for preparing financial ststements in accorijance with applicab￿ law and Unitod Kinglom Acetyjnting Standard8 {UK Genet8My A(uipted Atiz)untitwJ Pracuce), for being sat￿fi*j that they give a true and fay •KI making accufate TepresentatKffls to y(xJ. 2. All the transactions urKlwtaken by the e(xTrpany havo been rellected and T￿Orded n the accounting records. AJI the accountiry rwds have been made avaiL8ble io you lor the PUfFKJse of your audft. We have provided you wrth Unrestn"¢xe￿ wsg lo all apptopriate persoro within ￿ CL¥npany. and with all other records and related Info￿at￿m rwuestgj. w￿j￿11n9 ryMnule> of am managwnent and sharehdder meetinos. 4. The fin8rtial statements are freo of material Mi￿taterr￿nts. ind￿JI￿a ￿l$S1On$. The eff￿ts of unc0￿8￿ed mi8Statements las set out in Ihe appe￿liX to thi$ 18tterl are irnmatertal both irxlNxlually and lotat. INTERNAL CONTROL AND FRAUO We aCkrK￿edge our resPc￿51trf.lty fc< the deg*Jn. implernenlation and mairtenance of irrtema control systems lo provenl and dotéd traud and error. We have di¥thsed io you the r8suI(s of our rtsk assessment that the fi￿ar￿￿￿1 statements may be m￿Stated a5 a regutt ol fraud. We have dlsclosed to you all nstartes of krv•¥n cr susK*cled fraud affectfftg the ents'ty invthrvJ managemenL ￿ph)Y*S who have a shjniftant role in ￿lleMe1 ¢￿trol or Othe￿ thal coukl have materrdl eff￿1 on the financwl slat8ments. 8. We hav8 also thsclosed to y(yJ all infoM7at*￿ in relal#)n to allegat￿rts of fraud or suspect8d fraud affeclirwJ the entty's finar￿*1 statements (L)ftVrvJn￿led by ojrrenl or former emrAoyees. analysts. reoulators or ASSET3 AND LIABIUTIES The cc¥npany has sali$factory titte to all ass*s there are ￿ li8ns or mmtranceg on tt ciynpany's 2Sgetg. èxcopt for t￿se that are dixlo8ed in the notes to the financoal statements. 10. All aclual liabilities. contirKJent I￿bIlits.eS ouarantees ￿Ven to thwd partie8 have been r￿rded or disclosed as appropriate. 11. WÈ hava no plan• or intontiDn$ that may Matttk￿FY alter Ihe carrykng vath aThJ. where relevant. the fair valu8 rne83urements or dassifK*K)n of assets ar¥J liabili1￿5 refi￿ted in the financial stslement$. 2 Sandyford Road Newcastle upon Tyne NEI 85B Tel 0191 227 4757 Fax 0191 227 3760 Email su.enquiries(fynorthumbri3.ac.uk www.mynsu.co.uh Nortnurnbrta 5tL¥1ents' Unv)n 15 regthred in as a CL*￿¥ U¢niied ty Guwwrt4*114•. ILWOn53} nd as a thority (No. II74053) VAT F4ufftbu ITI 5400 34 INVESTORS IN PEOPLE northumbria Students, union ACCOUNTING ESTIMATES 12. Signrficant assumptions used by us tn makiT¥J wwntirvJ estmales. nduding those measu￿1 at fair value. are reas¢)nable. LOANS AND ARRANGEMENTS 13. The compary has not granted any a(fvaw48 or to. or m•Je guarantees on behalf of. other than trM)ge disclosed m the finaDclal s1atery￿ts. LEGAL CLAIMS 14. We have di￿10$ed to you all claTh¥ in ￿)nn￿t￿ wrth lth"gats"on that have teen. or a￿ expeded lo t*, received and such rnattern. as approw*e, have teen wopety xcount&J Tor am In i financial statements. LAWS AND REGULAn(X4S 15. W& have discjosed to you all krth¥n irtstan￿ or $usp8ded non-(xMnplianc8 wlth laws and regulath)n8 wlK¢e effects should be ￿n$¥Je￿j when preparirKJ the fina￿la1 slatements. RELATED PARnES 16. Related paty rel*ionships arKI trans&tions have been appropnalely accountecl fcrf and disclosed In ihe financial stat8menls. We have di5ck)sed lo you all relevant i￿￿M81￿)n cOr￿eming such rdalionships and tFansaclions and are not aware of any ￿her matters whth r¢qLbire discksurg in onler lo compty with th8 Tequirements ol ¢(￿panY law or a(xounting sL￿d￿d8. SUBSEQUENT EVENTS 17. Abl events ¥uLwuent to the date of the financial Slate￿ents which require adjusknent Of disclosufe have been kwperly aGcounted for and disGlosed. GOING CONCÉRN 18. We beI￿ve that the ￿mpa￿S finanual statements should be prepared on 8 going cx)rtem basis on the grounds that current and frjture sources of furKling ￿ supw)rt will be more than adequate for the ccffnpanvs needs. We have C(￿8￿Je1ed a FWKKI of twefve mcffiths ft(xn the date d approval ol the financial slatements. We b￿￿Ve that no further diKlasuTes reFatsng to the c(xnpan￿$ abrfty lo C(￿tinUe as a pmg concem need to be mado in the financial statem¢nts. We acknowledge our resp)rtsibitikn regard￿0 dtsckjsure of infwrTwlion to you as audilor5 and cOnfi￿n that so faf as we are a4vare. there is no re￿Want ajdrt iDfcKmatK)n ne￿J￿1 by you in C￿neCt￿n wilh prepanrKJ your audit report of which yt)u are unaware. E&h dir8Ctor has tsken all the stepts that he oughl lo taken 89 a dir￿lOr ￿ order io make hifftseff awaTe of any relevant audit infofmai￿n to esL*lish that you are a4vare d that Infofrnakn.￿. Yours faithful Arushi Sinha (Jan 10, 2025 10..51 GMT) Signed on behaff ol the Lx)ard of dbreGIc Date . 1010112025 2 Sandyford Road Newcastle upon Tyne NEI 85B Tel 0191 227 4757 Fax 0191 227 3760 Email su.enquiries@northumbria.ac.uk www.mynsu.co.uh Northumbna S)Jdents' IS reg&ered In E(wJL4rKJ a5 a Crmpany LJmkEd iry (kn li￿. Iri8Qn531 INVESTORS IN PEOPLE nrt rhArhv l 17dnEIi IAAT N*irnkn 177 a4M Registered number: 10807853 Charity number: 1174053 NORTHUMBRIA STUDENTS, UNION (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Charitable company. its Trustees and Advisers Trustees. Report 3-18 Independent Auditors. Report on the Financial Statements 19-22 Statement of Financial Activities 23 Balance Sheet 24 Statement of Cash Flows 25 Notes to the Financial Statements 26-44 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2024 Trustees N Shah, Chair of Trustees (resigned 1 July 2024) L Bird (resigned 1 July 2024) M Hasmujaj (resigned 1 July 2024) H Moore (resigned 1 July 2024) K Tanna (resigned 1 July 2024) E A Kelly, Deputy Chair of Trustees CELong A Sinha (appointed 1 August 2023) S G K R Maram {appointed 1 August 2023) S Pearson {appointed 1 August 2023) S L Steadman (appointed 1 August 2023) K Kanchi (appointed 1 August 2023) P Jobes (appointed 1 August 2023) H Burn (appointed 1 August 2023) S Ali (appointed 1 July 2024) N Groombridge Westacott (appointed 1 July 2024) l Mccrory (appointed 1 July 2024) T N Orii (appointed 1 July 2024) N Udeze (appointed 1 July 2024) Company registered number 10807853 Charity registered number 1174053 Registered office Finan￿ Department Northumbria Student Union 2 Sandyford Road Newcastle upon Tyne NE18SB Secretary N Sweby Key management personnel N Sweby, Chief Executive C Kersey, Deputy Chief Executive N Anjum, Head of Finance NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS ICONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Independent auditors Armstrong Watson Audit Limited Chartered Accountants and Statutory Auditors Newcastle First Floor One Strawberry Lane Newcastle upon Tyne NE14BX Bankers Natwest 16 Northumberland Street Newcastle upon Tyne NE17EL Solicitors Ward Hadaway Sandgate House 102 Quayside Newcastle Upon Tyne NE13DX Popplestone Allen 37 Stoney Street The Lace market Nottingham NG1 1LS NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2024 The Trustees, who are directors for the purposes of company law, present their annual report together with the consolidated financial statements of the charity as well as the auditors, report for the charitable company for the year ended 31 July 2024. The financial statements comply with the Charities Act 2011. the Memorandum and Articles of Association, 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 Ireland (FRS 102) (effective January 2019) Objectives and activities The Students, Union's charitable objects.ves are set out in its Memorandum and Articles of Association as the advancement of education of students at Northumbria University for the publ￿ benefit by.. promoting the interests and welfare of students at Northumbria University during their course of study and representing. supporting and advising students." being the recognised representative channel between students and Northumbria University and any other external bodies.. and providing social. cultural. SpO￿ng and rec￿ational activities and forums for discussions and debate for the personal development of its students. The Students, Union will pursue these aims independently of any political paty or religious group and will strive for equal opportunities and take positive action within the law to facilitste the participation of groups discriminated against by society. In pursuit of these aims, the Students, Union organises its work to provide a wide range of seNices to students in person and online. Physical activities are delivered through our principal premises and across all campuses attended by Northumbria students. Online activities are delivered through both the University's teaching platform (Blackboardl, the Students, Union's own CRM system SUMS and a diverse range of social media and video. Sabbatical Officers of the Students, Union sit on every major committee of the University and meet regularly with Newcastle City Council and other local organisations to represent the interest of all students at the University. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance The cost-of-living challenges facing students in 2022123 continued to dominate in 2023124. This was marked by continued challenges in our commercial activity aimed at students as well as developing and delivering services to support students to meet these challenges. The impact of cost of living goes beyond purely financial. impacting students, wellbeing, their free time to engage in social and extracurricular activities (due to increased need to workl and their sense of community, all of which can impact their academic achievement. In response to this we have seen an increase in demand for low cost and free activities and community activities particularly society membership and are on track to return to pre-covid levels of engagement. Our Freshers, activities were also extremely popular with some community focused events being repeated throughout the year. The Students, Union responded through opening a range of new services to students to support them through this year, funded by the University. This included re-opening the food bank as the food pantry and delivering grant support for students to help them cover the cost of extra-curricular activities and graduations. The education of students remains our core focus and we continue to perform well in the National Student Survey, the principal metric for comparison across Students, Unions. Through increasingly effective use of data and communications we are able to build a better picture of student participation in academic representation and diversify the different routes for student voice through which we can support students to engage in their academic experience. Awards and recognition The positive impact of the Students, Union has been recognised through regional and national awards, accreditation schemes and surveys of the student experience. NUS Services Best Bar None Award [Gold] recognises the quality of licensed premises operational management in terms of health and safety, corporate social responsibility and community relations and impact. We received an additional Wellbeing Award for the number of staff trained as Mental Health First Aiders.. Investors in People [Silver] 2023124 is mid-way through our accreditation cycle with the next audit due in January 2025. High Level Key Perforniance Indicator Perfomiance The Union has a range of metrics to assess our impact of ServI￿S on students. The Board have identified a set of ten high level Key Performance Indicators which give the best insight into our positive impact. These ten are underpinned by a robust series of secondary metrics. all of which have a five year horizon and are reviewed annually by the Board together with a set of annual targets aimed at driving change and improvement in student experience and organisational effectiveness. (1) National Student Survey.. This annual survey across all Higher Education providers for final year undergraduates. commissioned by the Office for Students, includes a question "How well does the students, union (association or guild) represent students, academic interests" and is one of the few national indicators for Students, Unions. In 2024 students scored us 74.9°A satisfaction. This is up 0.8.￿ on 2023 and above the national benchmark for institutions comparable to Northumbria University and as well as against our target. (2) Students engage in our democratic processes.. 3,245 students voted in this year's elections, This was just above our target of 3,200 and the seventh highest over the past eighteen years, although down on the previous tsvo years where tumout exceeded 4,000. Our other key metric. number of candidates running for Sabbatical. was also slightly down to 29 candidates. the principal driver of turnout. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) (3) Students participate in Students, Union activities: 10,946 students had at least one interaction (voting, society purchase, purchase in Habita, etc) in our CRM system, SUMS. This was a decline from 13,704 in the previous year. partly explained by the move of catering to Chathells. We continue to expand our data capture to include all areas of activty from student representation to events attendance to accurately capture student participation. (4) Student wellbeing improved through access to our services: 473 students undertook at least one of our wellbeing training courses, from Mental Health First Aid to Active Bystander. This is above our target of 300 and the previous year's performance of 215. (5) Students able to reflect on how involvement with the Union improves their employability: 91 students took part in our employability award. below our target of 150 and leading to a review of our offering for 2024125. (6) Positive Impact on lives of all our students: Gathered from survey data of students we scored 85 % above our target of 80 % and 7 % increase from 2023. (7) Percentage of students who feel the Union communicates well with them: Gathered from survey data of students with 84 % sats'sfaction. 12 % above target and down on 2023's 94 %. (8) Union manages its resources effectively: Measured by performance against budget which was achieved this year with a moderate surplus. (9) Union generates income: Measured by percentage increase in self-generated income compared to previous year with a target of 2 %. 2024 saw a drop in that amount by 7Yo. {10} Union is a great place to work: Measured by response to the question -1 would recommend the Students, Union as a great place to work. in the annual suNey. Staff scored 91 %, down from 2023 94 / and our target of 93°/. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) a. Corporate plan The Students, Union's Corporate Plan 2022- 2026 sets out five strategic pillars. 1. Education, 2. Wellbeing, 3. Community, 4. Career, 5. Sustainability. These pillars are underpinned by a set of fwe-year Key Performance Indicators IKPI), reviewed annually by the Board and the addition of cross-cutting annual targets around pieces of work that introduce a step change or accelerate or support the achievement of a KPI. Each KPI and cross-cutting work is aligned to a pillar. Education 1. Representing students. academic interests, NSU will. Ensure every programme has a trained student representative, a member of a cross-campus netMork of effective student representation. Publish an Education Policy. setting out students, aspirations for their education at Northumbria and campaign for its implementation. Work with the University to build a strong culture of student engagement. leading to high-quality education for every student. Programme design and delivery will reflect student interest in issues of sustainability and human development within those subjects. Achievements and Pro ress towards these oals Goal 1.. Recruited 1,087 academic reps in 2023124 and trained 55 %. The Union has put in place improved data capture and dashboards to better share with University and colleagues coverage of student representation and to help identify and address gaps. Goal 2.. Submitted our annual Quality Review of the University's teaching and learning in 2022123 against the Office for Students, Conditions of Registration which forms the core of our Education Policy. This is reported to the University's Education Committee with an agreed acts.on tracker through the year. Goal,. 3.. Collated over 1,809 pieces of feedback through our Student Engagement Forums on issues such as induction experience, views of experiential learning and satisfaction and confidence with academic skills. These were reported to the University to inform policy and service planning. Launched trial of Coursemate, a new mechanism for students to submit feedback. Undertook consultstion piece with leadership representatives to understand their experience of partnership working within the University and how Students, Union and University can better collaborate to support student representatives. Redesign of engagement forums be￿een senior University staff and student representative leaders. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) Ran our annual Student Led Teaching Awards receiving the highest level of nominations ever for this Awards at 1,342. Goal 4.. Supported student involvement in four programme reviews. 2. Campaigning for better higher education and value for money, NSU will. (5) Support every student to campaign on the education issues they face and where they want to see change. (6) Campaign to ensure barriers and limitations to participation and achievement in higher education are challenged. (7) Offer every student access to free, independent academic advice. Students will be able to say we effectively represent their academic interests and are aware of the services we provide. Achievements and Pro ress towards these oals Goal 5.. Lobbied University to move ahead with a Lecture Capture policy. Represented international student concerns over the structure of fee payments and student experience during exclusions and agreeing individual repayment schedule. Recruited 1,087 academic reps in 2023124 and trained 55 %. The Union has put in place improved data capture and dashboards to better share with University and colleagues coverage of student representation and to help identify and address gaps. Goal 6.. In 2023124 we identified financial constraints and cost of living as the key barriers limiting participation. 153 students accessed our laptop loan se￿1￿ to give them access to IT equipment they lacked and secured funding for additional laptops for 2024125. (li) Costs of graduation.. 66 students received £2,108. (iii) Cost of participation in extracurricular activities.. 46 students received £5,363. (iv) Launched Food Pantry to address financial hardship including breakfast offer, subsidised soup and lobbied for free soup to be provided in London campus. (v) Free wellbeing products continue to be supplied across all campuses. Period products are stocked in every university bathri)om whilst condoms, pregnancy tests, sexual testing kits and anti-spiking products are available at SU hubs. (vi) Secured funding from the University Alumni Fund to provide mental health first aid training free of charge for all participants. (vii) Lobbied University in respect to international student access to hardship funds. Goal 7.. Saw a 13 /0 increase in advice cases to 1,107. The most significant themes are exam board results academic misconduct and finance concernslappeals. WELLBEING Student safety, NSU will (8) Work with the University, Police. Council and others to keep students safe on and off campus. (9) Campaign against any institutional policy or pro￿dure that can cause harm to students on or off campus NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) (see Community). {10} Campaign for high-quality affordable student accommodation (see Community). Achievements and Progress towards these goals Goal 8.. Lobbied for expansion of Safezone app to include all relevant accommodation and areas students frequent. Goal 10.. 69 housing advice cases and offered students free legal advice through external legal provider for five cases of disrepair. Student wellbeing, NSU will (11 } Work with University seNI￿S to ensure every student. undergraduate and postgraduate, can access the support they need. {12} Compaign on issues affecting students, health and well-being. Our principal campaigns will be mental health a green, healthy environment sexual health and wellbeing drugs and alcohol disability and access sexual violence. {13} Always support any student to campaign on the wellbeing issues they face and where they want to see change. {14} Help students build connections with each other, in person and online and provide information that helps students improve their wellbeing. Achievements and Pro ress towards these oals Goal 11.. Launched a Wellbeing Ne￿Ork with staff across the institution including University wellbeing and sports staff as well as Sodexo, the University accommodation partner to collaborate on larger wellbeing projects, information share and cross promote events. Ran awareness campaign to highlight University's reporting platform for harassment and other unacceptable behaviour and encourage student use. Undertook research with male students to understand their views on how they can be best and supported to around their mental health. Goal 12.. Ran following campaigns Awareness campaign around harassment to encourage students to report incidents to the University. In collaboration with the Universty delivered Mental Health Day awareness campaign with over 700 students attending events across campuses. 50 students took part in Autism Awareness day to engage with education opportunities and benefit from a neurodiverse safe space to meet others and have fun. In partnership with Sexual Health 4 Nevrfcastle ran Sexual Health and Guidance (SHAG) week with NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) over 500 students. 355 students received training in areas of Mental Health Language, Make Every Contact Count and Active Bystander. 118 students attended Mental Health First Aid courses both online and in person. Goal 14.. Building community on campus is vital part of our work in this area with 4,024 students joining societies and thousands using Habita and our social spaces as well as delivery of a wide range of free and low cost events to being students together. See Community. More money, less stress, NSU will {15} Work with the University to ensure the campus offers healthy. cheap eating options. {16} Offer seNices to help students manage their money. {17} Campaign on price on and off campus. {18} Secure and make students aware of better-quality dealsloffers for them. j19} Work with the University careers to inform students of part-b-me jobs that fit their needs. Achievements and Pro ress towards these oals Goal 15 Worked with Chathells. the University's catering provider, to build new inclusive menu for Habita for 2024125 including Halal options. Goal 16 Collaborated with University's Welfare and Finance Team to hold series of budgeting breakfast events. Launched Clothing Swap Shop used by 383 students through the year. Launched Food Pantry to address financial hardship including breakfast offer, subsidised soup and lobbied for free soup to be provided in London campus. Goal 18 Provided students with aC￿sS to great value Freshers, night time events through partnership with Voodoo events and organised series of commercial offers and deals throughout the year, from our Freshers, Fairs, giving 11,042 students who attended aC￿sS to preferential and value for money offers. Goal 19 Delivered our first volunteering fair with over 200 students and 25 charities in attendance. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) COMMUNITY On Campus, NSU will {20} Provide communal spaces popular with a wide range of students (21 } Offer programmes of social activities that cater for the diversity of students {22} Support societies that reflect the diversity of student interests and are easy to join and fun to be part of. {23} Ensure students at Coach Lane. London and Amsterdam have a programme of social activities and services which reflect the individual nature of those campuses. {24} Communicate in a way students want so that they know what is available and can easily participate. Achievements and Pro ress towards these oals Goal 20 To address student financial concerns we have invested in increasing options for social activity across all campuses including for example more PCM)I tables, improved seating, lights and TVS as well as other social events such as photo booth. This is part of our annual work to ensure the Union's social spaces are accessible and connect with students. We created a Students with Caring Responsibilities ne￿Ork to provide a social space dedicated to these students who meet regularly in person in the Union and online. Regular therapy dog visits at City campus and Pets as Therapy sessions at Coach Lane, with over 1400 students accessing the therapy dogs over the year. Ran monthly art therapy classes in the Union in partnership with Converge Art Therapy attended by 69 students. Goal 21 Our Freshers, week programme included a programme of low-cost daytime events with introduction of four main evening events. Throughout the year we supported the delivery of Diwali, Halloween and Christmas Lights Switch On as well as weekly quiz and karaoke. Goal 22 4.024 students joined at least one of 110 societies in 2023124 covering a wide range of interests from academic to cultural to recreational sport to political. Overall the Union granted over £70,000 in funding to support extracurricular activity in the year. Goal 23 We delivered a bespoke series of social and wellbeing events for both London and Amsterdam campuses with over 400 students participating as well as supported student led activities with five dedicated London societies and one Amsterdam society. We supported 20 Amsterdam students to visit the Newcastle campus. Goal 24 Student satisfaction with our communication remains high. To improve student experience we have invested in our website development to improve accessibility and use of SUMS, our CRM system, to give society committees more tools and resources to deliver society events and manage society funds. 12,000 followers on Instsgram. 20 % increase. Just under 1 million page views and 300k sessions on our website. Where students live, NSU will {25} Work to ensure every student has aC￿sS to accommodation that suits their needs. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) {26} Provide students with information and access to advi￿ on their rights as a tenant. {27} Campaign on issues around student accommodation from cost to qualty to sustainability. {28} Help build strong community relations in Newcastle working with students. politicians, and local residents j29} Campaign against discrimination and racism. Achievements and Pro ress towards these oals Goal 25 Delivered an annual housing fair with range of housing providers who meet our standards in terms of their offer and service to students. Goal 26 Managed 69 housing advice cases and offered students free legal advice through external legal provider for five cases of disrepair as well as providing information hub on housing rights through website. Goal 27 North East Students, Manifesto includes commitment to lobby the Northeast Mayor on issues of student accommodation and improving condib'on and aC￿sS to good quality affordable housing. Goal 28 With Newcastle Students Union lobbied for a complete review of the Students, in Newcastle Forum which has ceased to function as an effecb've body for student voice and issues. In concert with the regional Students, Unions created a student manifesto for the Northeast Mayor. Hosted hustings for the Northeast Mayor candidates at which all committed to support the actions in the manifesto. Societies raised over £16.000 for charitable causes in the region and nationally in 2023124. In every course, NSU will work to ensure. {30} Every course has an academic society. (31 } Every student feels part of their course. Achievements and Progress towards these goals Goal 30 23 academic societies in pla￿ this year. going into 2024125 with this as a core objective. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) Career {32} Working with University we will ensure every student has access to Nelworking opportunities and masterclasses Career workshops and employer talks Study Skills support Information on part-time jobs that can help students, careers. Information on the sustainability issues within different careers to choose from in line with their values. {33} The Union will offer. Hundreds of volunteering opportunities that help students develop the skills and experiences employers want. Information on these opportunities and benefits to careers will be easy to aC￿ss. All volunteering opportunits'es will align with the Northumbria graduate outcomes. All volunteering opportunits'es can be entered on the Higher Education Achievement Record. Students can use their volunteering as meaningful work based learning within their course. NSU and the University will agree on a means to have a volunteering credit bearing module. Programme of skills training in areas such as Finance, managing events and activities and teamwork. We will campaign to ensure value for money in any fees students pay for any placement or work based opportunities. Achievements and Pro ress towards these oals Goal 32 Worked with QA in London campus to push for improved student experience around careers opportunities and service. Received 451 applications for student staff roles in the Union. Goal 33 Supported 91 students through our employment recognition scheme to develop their ability to sell their experiences in job applications. 97 students attended training on these areas. Higher Education Achievement Report.. 2,063 students had their volunteering andlor awards recorded on the HEAR. We trained 15 Students, Union staff as mentors to SUPFM)rt student volunteers in their professional development. Launched the first ever Women In Leadership conference as part of the annual programme timed to celebrate International Women's Day. SUSTAINABILITY The Union acknowledges the climate crisis and its responsibilities to reduce its impact and to be part of campaign and awareness raising amongst and with students. It also recognises the fiduciary obligations that the Union exists for the benefit of students today and in the future. {35} Increase percentage of self-generated income {36} Achieve stsble reserves policy. {37} As part of the University campus community support the University's work towards net zero. {38} Annually review and develop a sustainability plan for Union operations. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Overall perfonnance Icontinued) Achievements and Pro ress towards these oals Goal 35 As noted in the KPIS, the Union did not meet this goal this year with the current cost of living challenges facing students. Goal 36 See Financial Review below. Goal 37 Sabbaticals and senior staff participate in the University's sustainability work. Goal 38 Our focus for 2023124 was promoting use of our recyclable foodware and encouraging students to bring their own cups to avoid use of disposables. Launched Clothing Swap Shop to help students reuse and recycle clothing, used by 383 students through the year. b. Business model The Board has identified the following areas it sees as giving us advantages in delivery of our business. Price- For students in terms of drink and social activits-es. This is a core factor for students. Student led.. NSU is perhaps the only organisation in students, lives that deliberately seeks to give them power over structures and activities and to act on their behalf to improve their experience. Success means structures that enable this while also delivering serVI￿S to students. Venue.. Few venues in the city similar to ours in size allowing us to seNe a specific scale of audience. Related to this our commitment is to provide an outstanding customer experience to both students and non-students. Niche- Many of our student facing acb-vits-es have no other comparison or significant barriers to entry. For example, students can seek to represent themselves to the University in issues they have but it is often easier and with better outcomes to use the representats.on or advice seNI￿s. The Board agreed that long term investment in customer relationship management will help develop more of a relationship model with students. using data and segmentation to engage wrth different groups of students and their needs but recognise this will take several years to get right. Growing student participation. both number of students and how many services they access, will come from doing more with what we have and focusing on what works. Financial review Total income declined slightly against budget to £4,148.723 largely due to continued trading conditions as the cost-of-living crisis impacted students. Despite this the Students, Union ended the year with an overall surplus of £76,244 against a budget of £Nil. This was largely achieved through rigorous cost controls, improved performance in Events and Conferences as well as Greenhouse. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 a. Reserves policy Scope of Reserves Policy and Definition of "Free Reserves": The reserve policy covers all free reserves held by the Students, Union Charity. Free reserves The remaining balance of total reserves after removing commitments of restricted funds, designated funds, fixed assets, and stock is the unrestricted 'free' reseNes. available for any use in line with our charitsble objectives. Reasons for Holding Reserves: NSU maintains reseNes to achieve the following objectives" to provide financial stability by acting as a buffer against adverse economic conditions and to face unexpected operational challenges. to designate funds for capital replacement or refurbishment. to designate funds for specific projects and to meet our future legal and financial liabilities. Calculation of Required Reserves: The policy for activities run by NSU is based on its major unrestricted income streams affecting the level of free reseNes- The core source for the Union is the block grant from the University which constitutes over 71 % of NSU income {2023 66 % ). The risk associated with block grant funding is moderate recognising the increased financial uncertainty with the Higher Education sector. Income from our Commercial operations constitutes 29°A of NSU income (2023 34 % The target for the Free Reserve is calculated as: The target minimum free reserves for the financial year 202412025 is set at £250k. being 50 % of overheads related to our commercial operations. This will provide the NSU with approximately 6 months of cover, or cover for a SO.￿ increase in net costs, sustained for a year. Funding Free Reserves The target minimum for the free reserves will be calculated each year as part of the annual budgeting process. The free reserves will be funded annually with surplus unrestricted operating funds. Using Free Reserves The Chief Executive and senior staff will identify reasons for accessing the free reseNes and seek Board approval that the use is consistent with the purpose of the free reseNes and the charitable purposes. In making this decision the Union will consider- the reason for the needed funds. assess the availability of any other SoUr￿S of funds before using free reserves,. and evaluate the time period that the funds will be required. and then replenished. A request will be submitted to the Audit & Risk Committee which will include the analysis and determination of the use of funds and plans for replenishment. Audit & Risk Committee will then approve. reject or modify the request. The Head of Finance will be responsible for ensuring that- free reserves are maintsined and used only as described in this policy, NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 records of the use of reseNes and plan for replenishment are maintained. Where free reserves are used, there will be regular reports to the Audit & Risk Committee to report progress to restore the fund to the target minimum amount. Relationship to other policies The Union's following policies may contain provisions that affect the creation and management of the designated funds. Financial and budgetary policy Risk Management policy (Risk Register) Contingency and Disaster preparedness plan Review of Policy This policy will be reviewed every year by the Audit & Risk Committee. or sooner if warranted by internal or external events or changes. Structure, governance and management a. Governing documents Northumbria Students, Union (hereafter referred to as the Students, Union) falls under the definition of a students, union" in section 20(1) of the Education Act 1994. The Students, Union is a Company Limited by Guarantee (No.10807853} and a Registered Charity (No.1174053). The University of Northumbria at Newcastle (hereafter referred to as the University) exercises its duty under the Education Act 1994 to take such steps as are reasonably practicable to secure that the Students, Union operates fairly and democratical￿ and is accountable for its finances. The Students, Union is governed by its Memorandum and Articles of Association and is responsible for providing representation and support to the students of the Universty. b. Recruitment of trustees The Students, Union is constituted in accordance with its Memorandum and Articles of Association and managed by the Trustees who are elected or appointed from time to time. Non-student (External) Trustees are appointed to serve for a period of four years. Student Trustees are appointed to serve for a period of one year. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Structure, governance and management (continued) c. Organisational structure The Students, Union's Board of Trustees consists of 14 trustees. There are six full-time or 'sabbatical' positions and they receive remuneration as authorised by the Education Act, these are the President, Vice President Education, Vice President Welfare, Vice President Activities. Vice President Sport and Vice President Postgraduate. No one can be on a sabbatical for more than ￿ years. There are also four appointed Student Trustees and four appointed Non-student {External> Trustees. Subject to the provisions of Company Law. Charty Law, the Education Act, the Memorandum and Articles of Association and any Bye-Laws in force from time to time, the business of the Students, Union shall be managed by the Trustees who may exercise all the powers of the Students, Union. The Trustees set the Students, Union's budget, develop the Students, Union's strategic plan, oversee the performance of the Students, Union, manage risk effectively and ensure compliance with the law. Memorandum and Articles identify Student Council as the principal representation policy making forum of the Students, Union. The Sabbatical Officers and Senior Managers oversee the day-to-day running of the Students, Union and are accountable to the Trustee Board. Sabbatical Officers receive an induction and training into their legal and administrative responsibilities, with an ongoing programme of development during their term of office. The Students, Union employs non-student full-ts.me staff to ensure effective management of its many activities and to implement the policy decisions made by the Trustee Board and Student Council. There is delegated authority, through the Chief Executive, for operational decision making and accountability within the departments of the Students, Union. in accordance with an annually reviewed delegation of authority. Governance The President is ex officio Chair of the Board and Trustees. There is also a Deputy Chair, appointed by the Trustees in accordance with their rules of business who will always be an external trustee. Through 2023124 the Board saw through an action plan arising from a governance review conducted in April 2023 using the national governance code as adapted to Students, Unions with NUS. d. Relationship with the University of Northumbria at Newcastle The Students, Union receives a Block Grant from the University and part-occupies buildings owned by the University, which also pays for utilities. This support is intrinsic to the relationship be￿een the University and the Students, Union and has not been valued. Although the Students, Union successfully runs various mutual trading activities it will always be dependent on the support of the University. There is no reason to believe that this support will not continue for the foreseeable future as the Students, Union is an integral part of the University structure and of value to the overall student experience at the University. e. Pay policy for key management personnel The salary of the Chief Executive is determined by the Board of Trustees. The salary grade for the Deputy Chief Executive and the Head of Finance is determined by the Board of Trustees. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Structure, governance and management (continued) f. Public Benefit The Union's charitable objects-ves are the advancement of the education of students at Northumbria University for the public benefit by providing sporting. social. cultural and recreational opportunities and facilities for students to further the educational purpose of Northumbria University. Our services provide opportunities for the expression of student opinion and actively representing the interests of the students. g. Risk Management The Trustees have examined the major strategic. business and operational risks that the Students, Union faces and confirm that systems have been established to enable periodic reports to be produced so that the necessary steps can be taken to reduce and manage these risks. h. Trustee induction and training The Trustees receive comprehensive induction into the Students, Union and their role and responsibilities including Charity Law and other legal responsibilities. Corporate and Fiduciary Duties, Governance, Strategy, Health & Safety and identifyinglmanaging conflicts of interest. The training is delivered in a structured manner and delivered through a combination of sessions led by the Students, Union's experienced senior managers. Trustees may also attend training events provided through charitable support bodies and access information from NUS and WonkHE, both experts in Higher Education Policy. Statement of Trustees. responsibilities The Trustees (who are also the directors of the charitable company 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 of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitsble accounting policies and then apply them consistently., obseNe the methods and principles of the Charities SORP (FRS 102)-, make judgments and accounting estimates that are reasonable and prudent., stste whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company 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 hen￿ 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 charity and the financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial ststements may differ from legislation in other jurisdictions. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Disclosure of information to auditors Each of the persons who are Trustees at the time when this Trustees, Report is approved has confirmed that" so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. Auditors During the year, Armstrong Watson Audit Limited were appointed auditors, replacing Azets Audit Services Limited. The auditors, Armstrong Watson Audit Limited, have indicated their willingness to continue in offi￿. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by.. Arushi Sinha ljan 10,2025 10'.51 GMTJ... A Sinha President and Chair of Trustees Ita McCrory.l!an 10, ? l Mccrory VI￿ President Education 5 10..54 GMTI.... Date.. 1010112025 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF NORTHUMBRIA STUDENTS. UNION Opinion We have audited the financial statements of Northumbria Students, Union (the 'charitable company'l for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 Stsndard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the charrtable company's affairs as at 31 July 2024 and of its incoming reSoUr￿S and application of reSoUr￿s, including its income and expenditure for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance Y￿th the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance International Standards on Auditing (UK} (ISAS (UK}) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the 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 accordan￿ 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 perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going con￿rn 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. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF NORTHUMBRIA STUDENTS. UNION (CONTINUED) Other information The other information comprises the information included in the Annual Report other than the financial statements and our Auditors, Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent othewise 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 othetwise 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 misststement 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" the information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordan￿ wth applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understsnding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, 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= adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Trustees, remuneration specified by law are not made", or we have not received all the information and explanations we require for our audit- or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. 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 ststements 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 charitable company's ability to continue as a going con￿rn, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitsble company or to cease operations, or have no realistic alternative but to do so. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF NORTHUMBRIA STUDENTS. UNION (CONTINUED) Auditors. 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 misststement, whether due to fraud or error, and to issue an Auditors, 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 prO￿dureS are capable of detecting irregularities, including fraud is detailed below- Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud., Reviewing board minutes., Challenging assumptions and judgements made by management in their significant accounting estimates" and Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness. Because of the field in which the client operates. we identified the following areas as those most likely to have amaterial impact on the financial statements" Health and Safety" employment laws" and compliance with the UK Companies Act and Charities ACL Owing to the inherent limitations of an audit. there is an unavoidable risk that some material misststements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAS (UK). For instance, the further removed non-compliance is from the event and transactions reflected in the financial statements. the less likely the auditor is to become aware of it or torecognise the non-compliance. 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.or .uklauditorsres onsibilities. This description forms part of our Auditors, Report. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORTTO THE MEMBERS OF NORTHUMBRIA STUDENTS. UNION (CONTINUED) 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 V￿ are required to state to them in an Auditors, 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. for our audit work. for this report, or for the opinions we have formed. Karen Rae (Feb 21, 2025 09.49 GMT) Karen Rae (Senior Statutory Auditor) for and on behalf of Armstrong Watson Audit Limited Chartered Accountants and Statutory Auditors Newcastle First Floor One Strawberry Lane Newcastle upon Tyne NE14BX Date.. 2110212025 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2024 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total funds 2023 Note Income from: Donations and legacies Charitsble activities other income 2.960,100 1,125,077 63,546 2,960.100 1,125,077 63.546 2,845,727 1,392,214 62,363 Total income 4.148,723 4,148.723 4,300,304 Expenditure on: Charitable activities 4.060,685 11.794 4,072.479 4,182,742 Total expenditure 4.060,685 11,794 4,072.479 4,182,742 Net movement in funds 88,038 (11,794) 76,244 117,562 Reconciliation of funds: Total funds brought foNard Net movement in funds 597,349 88,038 11,794 (11.794) 609,143 76.244 491,581 117,562 Total funds carried forward 685,387 685,387 609,143 All of the charity's activities derive from continuing operations during the above periods. The notes on pages 26 to 44 form part of these financial statements. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) REGISTERED NUMBER: 10807853 BALANCE SHEEr AS AT 31 JULY 2024 2024 2023 Note Fixed assets Intangible assets Tangible assets Investments 13 2,658 162,016 4,083 80,461 14 15 164,674 84,547 Current assets Stocks 16 28,659 1,270,259 454,223 24,459 948,859 939,468 Debtors Cash at bank and in hand 17 1,753,141 1,912,786 Creditors.. amounts falling due within one year 18 (1,092,122) {1,247,4631 Net current assets 661,019 665,323 Total assets less current liabilities 825,693 749,870 Creditors.. amounts falling due after more than one year 19 1140,306) (140,727) Total net assets 685,387 609,143 Charity funds Restricted funds Unrestricted funds 20 11,794 597,349 20 685,387 Total funds 685,387 609,143 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" /Ffv Arushi Sinha ljan 10 2025 10.'51 GMTJ... A Sinha President and Chair of Trustees Date.. Ita Mc£iAlY.IJAfLIQ.. l Mccrory VI￿ President Education .1￿￿1￿MT1.... 1010112025 The notes on pages 26 to 44 form part of these financial statements. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2024 2024 2023 Cash flows from operating activities Net cash used in operating activities {348.873} (215,231) Cash flows from investing activities Purchase of tangible fixed assets {136.372} {40,924) Net cash used in investing activities (136,372) 140,924) Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 1485,245) (256,155 939,468 1,195,623 Cash and cash equivalents at the end of the year 454.223 939,468 The notes on pages 26 to 44 form part of these financial statements NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Charity status The charity is limited by guarantee, incorporated in England and Wales. and consequently does not have Share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation. The address of its registered Offi￿ is." Finance Department. Northumbria Students Union, 2 Sandyford Road, Newcastle upon Tyne, NE18SB. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordan￿ with the Charities SORP (FRS 102) Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Northumbria Students, Union meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 Going concern The trustees consider that there are no material Un￿rtaIntieS about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group. The charity's forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance. The charity has strong positive cash balances and is forecasting for this to continue to be the case. The trustees have stress tested their forecasts, taking into account various scenarios, and remain confident that the uncertainties do not cast significant doubt on the company's ability to continue as a going concern. The Union is dependent, in the absence of other funding. on the continued financial support of the University of Northumbria. The Trustees believe, on the basis of discussions held, that further support will continue to be made available from the University. 2.3 Estimation uncertainty and judgements The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. Beyond the normal prepayments, accruals and depreciation estimates, there are no further judgements or uncertainties. 2.4 Income and endowments All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (continued) 2.5 Grants receivable Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. 2.6 Deferred income Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when.. The donor specifies that the grant or donation must only be used in future accounting periods- or - The donor has imposed conditions which must be met before the charity has unconditional entitlement. 2.7 Donated services and facilities Donated services and facilib.es are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met and the receipt of economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102}, the general volunteer time is not recognised and refer to the trustees report for more information about their contribution. Donated 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 benefit on the open market., a corresponding amount is then recognised in the expenditure for the period. 2.8 Charitable activities Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions and is recognised as earned. Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with reasonable certainty. Income received to deliver ServI￿S over a specific period covering more than one financial year is accounted for over the specific period,. related expenditure is accounted for when incurred. 2.9 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, 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 activty. 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 stsff costs are allocated on the basis of time spent. and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company's objectives. as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (continued) 2.9 Expenditure Icontinued) Charitable activities Charitsble expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature ne￿SSary to support them. 2.10 Grant provisions Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. 2.11 Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of reSoUr￿s. for example. allocating propety costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. 2.12 Governance costs These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit. strategic management and trustees's meetings and reimbursed expenses. 2.13 Government grants Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable. Grants are recognised in income when performance conditions, which would othetwise prevent the recognition of income, are met. Where performance conditions are not met then income is deferred and recognised as deferred income within creditors. 2.14 Taxation The charitable company 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 charitsble company for UK corporation tax purposes. Accordingly. the charitsble company 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. 2.15 Intangible assets and amortisation Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives. Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life. Amortisation is provided on the following basis.. Website Costs 25 °A Straight Line NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (continued) 2.16 Tangible fixed assets and depreciation Individual fixed assets cosb-ng £0.00 or more are 1nits-a1￿ recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. 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.. Leasehold Improvements Furniture and Equipment Computer equipment Equipment Over the life of the lease 10 /0 and 25 /0 Straight line 25 /0 Straight line 25 /0 Straight line 2.17 Stocks Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO). 2.18 Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised inits.ally at the transaction price. They are subsequently measured at amortised cost using the effective interest method. less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. 2.19 Cash at bank and in hand Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. 2.20 Trade creditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least ￿e1ve months after the reporting date. If there is an unconditional right to defer settlement for at least ￿e1ve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Accounting policies (continued) 2.21 Fund structure Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. 2.22 Society Balances Society Balances are monies held on behalf of student sccieties. This money belongs to the society itself and is held within other creditors. 2.23 Pensions and other post retirement obligations University of Northumbria Students, 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 consequen￿, no share of the underlying assets and liabilities can be directly attributed to Northumbria Students, 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. In line with FRS 102 any additional contributions required as part of a recovery plan need to be recognised in full at net present value at the balance sheet date. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Income from donations and legacies Unrestricted funds 2024 Total funds 2024 Grants University of Northumbria block grant University of Northumbria block facilitation grant University of Northumbria establishment grant 1,735,100 25,000 1,200,000 1,735,100 25,000 1,200,000 2,960,100 2,960,100 Unrestricted funds 2023 Total funds 2023 Grants University of Northumbria block grant University of Northumbria block facilitation grant University of Northumbria establishment grant 1,620,727 25,000 1,200,000 1,620,727 25,000 1,200,000 2,845,727 2,845,727 Income from charitable activities Unrestricted funds 2024 Total funds 2024 Commercial Income Membership Income servi￿ Income 924,651 79,829 120,597 924,651 79,829 120,597 1,125,077 1,125,077 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Income from charitable activities (continued) Unrestricted funds 2023 Total funds 2023 Commercial Income 1,197,582 61,881 132,751 1,197,582 61,881 132,751 Membership Income Service Income 1,392,214 1,392,214 Other income Unrestricted funds 2024 Total funds 2024 Fees and supplies 63,546 63,546 Unrestricted funds 2023 Total funds 2023 Fees and supplies 62,363 62,363 Analysis of expenditure on charitable activities Summary by fund type Unrestricted Restricted funds funds 2024 2024 Total 2024 Commercial costs 2,308,502 1,527,367 210,431 14,385 2,308,502 1,539,161 210,431 14,385 Membership costs Service costs Governance costs 11,794 4,060,685 11,794 4,072,479 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Analysis of expenditure on charitable activities {continued) Summary by fund type {continued) Unrestricted funds 2023 Total 2023 Commercial costs Membership costs Service costs Governance costs 2,518,516 1,455,817 199,701 8,708 2,518,516 1,455,817 199,701 8,708 4,182,742 4,182,742 Activities undertaken directly 2024 Support costs 2024 Total funds 2024 Commercial costs 953,857 686,855 183,898 1,354,645 852,306 26,533 14,385 2.308.502 1,539,161 210.431 14,385 Membership costs Service costs Governance costs 1,824,610 2,247,869 4,072,479 Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Commercial costs Membership costs Service costs 1,215,215 804,166 65,762 1,303,301 651,651 133,939 8,708 2,518,516 1,455,817 199,701 8,708 Governance costs 2,085,143 2,097,599 4,182,742 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Analysis of expenditure by activities (continued) In addition to the expenditure analysed above, there are also governan￿ costs of £14,385 {2023 £8,708} which relate directly to charitable activities. see note 7 for further details. During the year grants of £155.299 (2023- £107.660) were paid to societies. Analysis of governance and support costs Other support costs Governance costs Total 2024 Establishment 1,200,000 852,306 70 1,200,000 852,306 70 Salary and wage costs Printing and stationery Publicity Equipment Cleaning Professional fees Travel and subsistence 21,951 7,420 17,811 81,443 1,302 38,288 12,893 2 233 484 21,951 7,420 17,811 95,518 1,612 38,288 12,893 2 247 869 14,075 310 Training Sundries Other support costs Governance costs Total 2023 Establishment 1,200,000 763,692 28 1,200,000 763,692 28 Salary and wage costs Printing and stationery Publicity Equipment Cleaning Professional fees Travel and subsistence 23,740 638 23,740 638 18,108 34,452 3,211 37,986 7,036 18,108 42,802 3,569 37,986 7,036 8,350 358 Training Sundries 2 088 891 2 097 599 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Net incomingloutgoing resources Net incomingl{outgoing} reSoUr￿S for the year include- 2024 2023 Audit fees 11.500 7,500 Auditors, remuneration 2024 2023 Fees payable to the charitable company's auditor for the audit of the charitable company's annual accounts Fees payable to the charitable company's auditor in respect of: All non-audit services not included above 11,500 7,500 1.925 10. Staff costs 2024 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 1,578,258 123.061 62,334 1,608,300 116,783 60,230 1.763.653 1,785,313 The average number of persons employed by the charitable company during the year was as follows" 2024 2023 Commercial services 17 25 Membership ServI￿S Senior management Finance Facilities 21 22 Student staff 69 94 116 150 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 10. Staff costs {continued) The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 2024 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 The total employee benefits of the key management personnel of the charity were £202,422 {2023 £184,584). The chief executive officer, as the highest paid member of staff, re￿iVed benefits totalling £79,695 {2023 - £77,334). 11. Trustees. remuneration and expenses The trustees are made up of external trustees and sabbatical offI￿rS. Sabbatical trustees were paid £164,092 {2023 £146,497) as permitted by Students, Union's Memorandum and Articles of Associations. No Trustees received payment for professional or other ServI￿S supplied to the charity {2023 - £NIL). During the year ended 31 July 2024, trUSt￿S were reimbursed £310 (2023 £358) for travel and accommodation expenses. 12. Taxation The charity is 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. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 13. Intangible assets Website Cost At 1 August 2023 5,700 At 31 July 2024 5,700 Amortisation At 1 August 2023 Charge for the year 1,617 1,425 At 31 July 2024 3,042 Net book value At 31 July 2024 2,658 At 31 July 2023 4,083 Website costs have been capitslised in accordance with FRS102 as the website provides an enduring benefit. Development costs Development costs have been capitalised in accordance with FRS 102 Section 18 Intangible Assets other than Goodwill and are therefore not treated as a deficit to the charity- NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 14. Tangible fixed assets Fumiture and equipments Computer Leasehold equipment improvements Equipment Total Cost or valuation At 1 August 2023 Additions 103,975 74,018 5,047 337,294 502,254 131.325 11,262) 1,017,541 136,372 (1,262 Disposals At 31 July 2024 103.975 79,065 337,294 632.317 1.152.651 Depreciation At 1 August 2023 Charge for the year On disposals 99,396 4.579 59,038 9,178 312,384 6,218 466,262 34.842 11,262) 937,080 54.817 (1,262 At 31 July 2024 103.975 68,216 318,602 499.842 990.635 Net book value At 31 July 2024 10,849 18,692 132,475 162,016 At 31 July 2023 4.579 14,980 24,910 35,992 80,461 15. Fixed asset investments Subsidiary undertakings At 1 August 2023 Amounts written off {3) Net book value At 31 July 2023 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 15. Fixed asset investments {continued) Details of the investments in which the charity held 20°/o or more of the nominal value of any class of share capital were as follows and these investments were written off as dissolved in the current accounting year.. Undertaking Country of incorporation Holding Proportion of voting rights and shares held 2024 2023 Principal activity Subsidiary undertakings Naturally Northumbria Limited England and Wales Ordinary 100% Dormant Northumbria Students, Union Lettings Limited England and Wales Ordinary 100/ Dormant 16. Stocks 2024 2023 Stocks 28,659 24,459 17. Debtors 2024 2023 Due within one year Trade debtors 787.730 983 481.546 882,222 337 66,300 Other debtors Prepayments and accrued income 1,270,259 948,859 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 18. Creditors: Amounts falling due within one year 2024 2023 Trade creditors 401.933 32,894 138.597 518,698 133,122 55,913 168,887 889,541 Other taxation and social security other creditors Accruals and deferred income 1,092.122 1,247,463 The Students, Union acts as custodian trustee on behalf of societies. Assets held are in the form of cash. The balance owing to the societies at the year end included in other creditors is £69,111 (2023 £68,264) 2024 2023 Deferred income at 1 August 2023 Resources deferred during the year Amounts released from previous periods 783,419 764,882 85,523 783,419 {783,419) (764,882} 85.523 783,419 19. Creditors: Amounts falling due after more than one year 2024 2023 Other creditors 140,306 140,727 Other creditors due more than one year represents the pension scheme deficit payments liability. NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 20. Statement of funds Statement of funds - current year Balance at 1 August 2023 Balance at Income Expenditure 31 July 2024 Unrestricted funds General Funds 597,349 4,148,723 (4,060,685) 685,387 Restricted funds Restricted Fund 11,794 {11,794) Total of funds 609.143 4.148,723 (4,072,479) 685.387 Statement of funds - prior year Balance at 1 August 2022 Balance at Income Expenditure 31 July 2023 Unrestricted funds General funds 479,787 4,300,304 (4,182,742) 597,349 Restricted funds Restricted Funds 11,794 11,794 Total of funds 491,581 4,300,304 (4,182,742) 609,143 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 21. Analysis of net assets between funds Analysis of net assets between funds - current period Unrestricted funds 2024 Total funds 2024 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 162,016 162,016 2,658 2.658 1,753,141 1,753,141 (1,092,122) 11.092.122) {140,3061 1140,306 Total 685,387 685,387 Analysis of net assets between funds - prior period Unrestricted funds 2023 Restricted funds 2023 Total funds 2023 Tangible fixed assets Intangible fixed assets Fixed asset investments 80,461 4,083 80,461 4,083 Current assets Creditors due within one year Creditors due in more than one year 1,900,992 (1,247,463) (140,727) 11,794 1,912,786 {1,247,4631 (140,7271 Total 597,349 11,794 609,143 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 22. Reconciliation of net movement in funds to net cash flow from operating activities 2024 2023 Net income for the period (as per Statement of Financial Activities> 76,244 117,562 Adjustments for: Depreciation charges Amortisation charges Loss on investments 54.817 1,425 57,421 1,425 Decreasel{increase) in stocks Increase in debtors (4,200) {321.400} 542,133 {697.895} 15,107 (440,738) 15,455 18,537 Increase in creditors Increase in deferred income Net cash used in operating activities 1348,873) (215,231) 23. Analysis of cash and cash equivalents 2024 2023 Cash in hand Cash at bank 7.145 447,078 7,690 931,778 Total cash and cash equivalents 454,223 939,468 24. Anatysis of changes in net debt At 1 August 2023 Cash flows At 31 July 2024 Cash at bank and in hand 939,468 (485,245) 454,223 939,468 (485,245) 454,223 NORTHUMBRIA STUDENTS. UNION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 25. Pension commitments Defined contribution pension scheme The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contribution payable by the charity to the scheme and amounted to £62,334 (2023 - £60,230). Contributions totalling £1.449 (2023 - £3.138) V￿re payable to the scheme at the end of the year and are included in creditors. 26. Obligations under leases and hire purchase contracts At 31 July 2024 the charitsble company had commitments to make future minimum lease payments under non-cancellable operating leases as follows.. 2024 2023 Land and buildings Within one year 1,200,000 1,200,000 2024 2023 other Leases Within one year Be￿een one and five years 40,902 30.073 25,261 2,192 70,975 27,453 The lease commitment categorised as land and buildings relates to the buildings in which the Student Union operate within. These are leased to the Student Union from Northumbria University. The lease is for a period of 12 months from the year end and is renewed annually. The lease cost is covered by the receipt of an annual establishment grant from the University of the same value. 27. Related party transactions Northumbria University is considered to be a related party, given the very nature of the relationship be￿een the two entities. During the year, the university provided funding of £2,960,100 to the Union in the form of a block grant amounting to £1,760,100 and an establishment grant amounting to £1,200,000. In addition other income was received from the University for services offered amounting to £254,456. During the year, the union paid rent of £1,200,000 to the University and have other costs amounting to £36,053. At the year end, the amount owed to the union from the university amounted to £474,931. Northumbria Student Union - Final Signature Pack Final Audit Report 2025-02-21 Created.. 202&014J9 By.. David Richardson {Dawd.Rithardson@amistrongwalson.co.ukl Status.. Signed Transaction ID.. CBJCHBCAABAA3UX44HRFDD9COt¥ETPb2K 2SfzOS94Rb "Northumbria Student Union - Final Signature Pack" History Document created by David Richardson (David.Richardson@amistrongwatson.co.uk) 2025-01-09- 14..31'.43 GMT- IP address= 62.89.150.154 Document emailed to a.sinha@northumbria.ac.uk for signature 2025-01-09- 14'.34'.54 GMT Email viewed by a.sinha@northumbria.ac.uk 2025-01-10- 10'.48'.27 GMT- IP address= 104.47.11.62 Signer a.sinha@northumbria.ac.uk entered name at signing as Arushi Sinha 2025-01-10- 10'.51'.19 GMT- IP address= 82.44.17.68 Document e-signed by Arushi Sinha (a.sinha@northumbria.ac.uk) Signature Date: 202M1-10- 10'.51:21 GMT- fime sou￿. server- IP address.. 82.44.17.68 E7* Document emailed to i.mccrory@northumbria.ac.uk for signature 2025-01-10- 10..51..23 GMT Email viewed by i.mccrory@northumbria.ac.uk 2025-01-10- 10'.53'.35 GMT- IP addre&s= 104.47.11.126 Signer i.mccrory@northumbria.ac.uk entered name at signing as Ita Mccrory 2025-01-10- 10..54.'11 GMT- IP address= 94.3.181.107 Document e-signed by Ita Mccrory {i.mccrory@northumbria.ac.uk) Signature Date: 2025-01-10- 10'.54:13 GMT- Time &Jurct: *rver- IP address.. 94.3.181.107 E7* Document emailed to Karen Rae (karen.rae@armstrongwatson.co.uk) for signature 2025-01-10- 10'.54.'16 GMT Armstrongwatsorf p1v￿eredty Adobe A