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2023-07-31-accounts

Registered number: 11939038 Charity number: 1183556

Kent Union

(A company limited by guarantee)

Trustees' report and financial statements For the year ended 31 July 2023

Kent Union (A company limited by guarantee)

Contents

Page
Reference and Administration information 1
Chairman's statement 2 - 3
Trustees' report 4 - 13
Independent auditors' report to the members 14 - 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19
Company balance sheet 20
Consolidated cashflow statement 21
Notes to the financial statements 22 - 44

Kent Union

(A company limited by guarantee)

Reference and administrative details of the Company, its Trustees and advisers For the year ended 31 July 2023

Trustees Syed Mahmood, President and Chair
Toni Abiodun, Vice-President (Student Engagement) (appointed 1 July 2023)
Matthew Bangura, Vice-President (Academic Experience) (appointed 1 July 2023)
Teslimat Bello, Student Trustee (appointed 1 September 2023)
Benjamin Bradley, Vice-President (Post Graduate Experience) (appointed 22
August 2022)
Thomas Freeston, Vice-President (Welfare and Community)
Joaquin Hamilton-Garcia, Student Trustee (appointed 1 September 2023)
Motheo Kgengwenyane, Student Trustee (appointed 1 November 2022)
Amish Patel, External Trustee
John Paterson, External Trustee Deputy Chair
Natalie Salunke, External Trustee
Jo Thomas, External Trustee
Jessica Millward (resigned 30 June 2023)
Sol Penido (resigned 30 June 2023)
Guadalupe Sellei (resigned 30 June 2023)
Mikulas Stahlavsky (resigned 30 June 2023)
Caroline Van Eldik (resigned 30 June 2023)
Company registered
number 11939038
Charity registered
number 1183556
Registered office Mandela Building
University of Kent
Canterbury
CT2 7NW
Company secretary Veena King
Chief executive officer Melanie Sharman
Independent auditors Kreston Reeves LLP
Statutory Auditor
Chartered Accountants
37 St Margaret's Street
Canterbury
Kent
CT1 2TU
Bankers National Westminster Bank Plc
11 The Parade
Canterbury
CT1 2SQ
Solicitors Furley Page Solicitors LLP
Admiral's Offices
Main Gate Road
Chatham
ME4 4TZ

Page 1

Kent Union (A company limited by guarantee)

Chairman's statement For the year ended 31 July 2023

On behalf of the Board of Trustees, I am pleased to introduce the annual financial statements for this year. These statements cover a challenging financial period for the organisation which consisted of a transition to a ‘new normal’ from the Covid-19 pandemic as well as external pressures faced due to the ongoing cost of living crisis. These statements highlight the incredible dedication, resilience and hard work of our staff and volunteers in ensuring we are doing all we can to provide the best possible student experience on the planet.

Our members and staff have played a vital role in our transition out of the pandemic and to support the growth of the organisation. The financial position of Kent Union has been heavily impacted by the ever-worsening cost of living crisis and change in consumer behaviour from our members. Living in a post pandemic world, we have seen the impact the cost of living crisis is having on every student at Kent. Our advice service has seen a 31% increase in cases from last year with a total of 2650 cases opened for 22/23. Majority of these cases have been regarding finances or housing. Food insecurity has been a massive issue where students are going hungry because they cannot afford to purchase food. This has been reflected in the increased usage of our Campus Pantry (previously named Student Foodbank and Freecycle) which has supported over 300 students. This service would not be able to run without the amazing work of our student volunteers who gave up their time to support their community. A true vision of what it means to be a student at Kent.

We have also seen the shift in consumer behaviour of students who are now very particular of their chosen social engagements whether that be joining student groups, attending events in The Venue, Woodys etc. This is unsurprising to see as social activities are the first thing to be cut when students are struggling financially. This has meant our commercial services have been adversely impacted however throughout the period of uncertainty our KUTL staff and student staff have persevered to provide the best possible student experience on the planet. This has allowed us to make a surplus through our commercial operations which gets reinvested into improving the student experience at Kent.

Alongside the cost of living crisis, there has been an ongoing period of industrial action at the university which has not only impacted our commercial performance as an organisation but it has deeply impacted the experience and wellbeing of our members. This industrial action is different to previous years as it is on a national level which has made it far more difficult to tackle on a local level. However, our Representation & Democracy team alongside the Sabbatical officers has continued to stand up for students at Kent and ensured that the impact of industrial action is mitigated at all stages. Through multiple consultation periods with students, to strike clinics for more information and attendance at university meetings to mitigate the academic impact on students who have missed learning due to industrial action. This has meant that we were able to have a reduced impact of the Marking and Assessment boycott and all our final year and PGT students have graduated with full classification on their degrees.

In the past year, Kent Union has also been in the process of building its brand new EDI strategy alongside our consultant Koreo. This has been done through co-creation with our student members and staff at Kent Union. We have carried out multiple innovation labs which have opened up difficult conversation but yielded extremely positive learning opportunities. Through this important work, we aim to be a truly inclusive organisation that values diversity and provides equitable opportunities for all.

The transition out of the Covid-19 Pandemic, the challenges faced by the HE sector and the ever-worsening cost of living crisis has been a true challenge for the organisation, but Kent Union has adapted effectively to meet the needs of our members through a focus on our student activities, representation & democracy, marketing/communications and our commercial services. This has yielded high levels of engagement from students and is on an upward trajectory. Kent Union has ensured financial sustainability through tight budgetary controls and a prioritisation of resources to ensure we are able to achieve our mission and vision. Throughout the changing HE landscape, the university maintains its investment commitment to the union for facilities and services that directly impact the student experience and equally student satisfaction. The University are also committed to working with the union collaboratively to make Kent more student-centric where students are at the heart of everything we do.

Page 2

Kent Union

(A company limited by guarantee)

Chairman's statement (continued) For the year ended 31 July 2023

We remain committed to our strategy as an organisation to provide the best possible student experience with high quality services and impactful engagement from our members. Kent Union is on an upwards trajectory and that is a testament to the resilience of our staff and members. I would like to extend my sincerest thanks to all members of the Board, Staff and the Students for their hard work and dedication to Kent Union which have been critical to our success in the past year.

Syed Mahmood President Date: 19 October 2023

Page 3

Kent Union

(A company limited by guarantee)

Trustees' report For the year ended 31 July 2023

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 August 2022 to 31 July 2023. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Objectives and activities

a. Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Representation and Democracy

The Representation and Democracy Department continue to amplify the voices of students at Kent and work closely with elected officers on leading the change needed to enhance the student experience. This academic year we have witnessed numerous changes affecting students and the department; were it be Industrial Action, staff changes and vacancies, University structural changes and reforecasting that may have reshaped the offering for students. With all the challenges listed, this year was still an exciting year to have had with us implementing new projects like the EDI Strategy, the Black Student Voices Project and ending summer with a full staff team.

Academic Representation

Student Reps are the link between the student body and the University. They work in teams at a subject, department, school, and divisional level. They volunteer their time across the academic year to represent and support their peers, on all matters of learning, teaching and the student experience. We have started planning the restructure of the rep system to improve student engagement and will focus on efficiently and rewarding and recognising their work. This year we have recruited 400 Student Reps. Robust training, workshops and drop-ins have been implemented across the year to develop the Student Reps. This incorporated a diverse range of topics and feedback on improvements that will be implemented for the new academic year.

This year we completed the Teaching Excellence Framework Student Submission, where we collected and collated various data sources from the previous 2 academic years, which had been analysed and coded into themes. The submission explores both qualitative and quantitative data, which highlights the student experience and student outcomes.

This year we will be relaunching the Academic Experience Reporting Tool, which will be used to capture student academic experience feedback. This is after reviewing communication strategy and maximising its efficiency across the Union & University of Kent. During this academic year, the tool was predominantly used for industrial action comments and provided valuable examples of how students were impacted.

Our Above and Beyond Awards was a success this year and took place in May 2023. We recognised 205 nominations across 7 categories, with over 120 individual staff members, teams and student reps nominated. The nominations featured a range of staff members from academic staff to student support and wellbeing and included two Kent Union staff members. 18 student reps were nominated with one rep receiving a massive 21 nominations. The event continues to build academic communities across Kent and form great relationships across the Union and University.

Page 4

Kent Union (A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

Democracy

Parliament continues to engage all members through hybrid meetings, so it is ensured all students access our events and activities. Student Networks are a space that encourages similar interests, intersectionality, and diverse backgrounds to come together and make change at Kent. They work collaboratively with staff and officers at the union and discuss issues relating to their shared identity or interest and create campaigns.

The Student Networks are spaces where diverse communities and underrepresented groups can come together and advocate for change within Kent. This academic year we had seen a decline in the uptake of Student Networks which has nudged a rethink into how we can best advertise and plan Student Networks moving forward. Remaining roles are pending chairs from the by-election we hope to run in September 23. The Women's Network organised events focused on community and belonging including Brunches and Paint and Sips, Networks were fundamental in History Month planning, and the PG Network hosted meetings and actively gathered data and thoughts on the UCU industrial action which they then presented to Parliament.

Liberation activities are implemented throughout the year with Kent Union staff and Officers working with Student Networks, student groups and University colleagues to develop a programme of events, resources, and exhibitions for history months. Our new Diversifying Projects & Campaigns Coordinator will be devising a new set of activity for our liberation months whilst implementing a new EDI calendar.

Student Priorities: We engaged 557 students with 1720 individual responses in January and February. Feedback was used to collate a list of issues students wanted to see Kent Union prioritise for the upcoming academic year and would vote alongside the full-time officers via the Kent Union Website.

Elections: The total number of votes was 10,674, across 1540 voters, which is a decline from the previous year. However, this year we saw a real leap in the diversity of our candidates with 64% declaring disabilities, we also saw a shift in gender identity. 50% of candidates were women, non-binary, or trans. 71% of candidates also belonged to the LGBTQ+ community as opposed to 31% last year. We also ran a NUS referendum which received 997 votes, students voted to renew our membership with the NUS. External and internal factors have been reviewed surrounding elections votes, and new recommendations will be implemented for the new year.

The Black Student Voices Project launched in Autumn 2022, and its aim was to investigate and understand the complexities of the experience of racially & ethnically diverse students at the University of Kent. Three researchers were employed to do this invaluable research and to make appropriate recommendations to the University and Students’ Union to better support REM students during and after their time at Kent. The project was successful and engaged 1000+ students. The research was presented to Kent Union Staff and will further launching their findings to the wider University at the BSV Summit in Winter 2023.

Students voted on their priorities on voting day and have continued to be able to do so via the Kent Union website once elections closed. Below are the results:

These topics will shape the Officer team’s work over the course of the next year. The Student Priorities approach means that candidates have a ‘Reasons for Standing’ statement outlining their skills, experience and interests that make them suitable for the role rather than a manifesto. A benefit of this is that candidates do not make unrealistic promises that they cannot achieve during their term of office.

Our Full Time Officers have worked hard to represent students’ interests and continue to lobby, campaign and push for the rights of Kent Students. Issues worked on ranged from cost-of-living crisis work, NUS Referendum, Mental Health Charter, Women & Non-Binary only gyms, Authentic Assessments & Decolonisation.

Page 5

Kent Union (A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

c. Activities undertaken to achieve objectives

Student Activities

Student Activities provide thousands of opportunities for students to get involved with Kent Union; giving members the opportunity to meet people with similar interests, build friendships, develop skills, and have the best time whilst studying at Kent.

Most activities offered are via our student groups who have an elected committee with a constitution setting out their aims and objectives. Training and support are provided by Kent Union staff, who deliver sessions on a multitude of areas including finance, events and health and safety etc. which helps to empower students to run their groups effectively. Towards the end of the academic year, we celebrate the achievements of our volunteers with the Team Kent Ball and Activities Awards, which reward both individuals and groups for their outstanding efforts across the year.

Sports Clubs, Societies and Student Media

In 2022/23 there were 861 committee members supporting the delivery of 249 student groups, with 12,209 members engaging in the activities offered. We had over 70 British Universities and Colleges Sport (BUCS) teams compete against other Universities across the country in over 500 fixtures and we finished 45th in the country. We were also victorious in our annual varsity fixture against Canterbury Christ Church University which continues to grow and develop each year.

Societies continue to flourish with events, socials, and gatherings. We saw events such as Sikh society’s Langar, which donated meals to students free of charge, Islamic society running their charity week and East African Society presenting their Kelele fashion show, promoting fashion and design from African makers. For the first time since the pandemic, we delivered the Cultural Food Festival which saw student groups cook alongside chefs from the University’s catering team, preparing dishes from their culture for other students to enjoy.

Charity, Fundraising and Volunteering

Our community action groups have continued to deliver positive social change within the local community, Kent Uniboob Team raised over £1,000 for Coppafeel! and Kent Mind ran weekly safe spaces on campus for students to drop-in, have a chat and regularly fundraised for Student Minds and Mind.

Canterbury Nightline, a student run listening service supporting students throughout the night has seen a 111% increase in usage across 2022/23 with 112 contacts made via e-mail, phone or instant messenger. The cost-ofliving crisis has significantly impacted students and most notably we have seen food poverty become a particular issue for our members. This year over 300 students have benefited from our Campus Pantry (previously named Student Foodbank and Freecycle) and we continue to have student volunteers support with keeping it open.

Give it a Go

This academic year has been very successful for our Give it a Go Programme, which offers one-off events, trips and activities across the academic year, providing an alternative to student groups that generally require commitment. In 2022/23 72 events were delivered with 3421 attendances, a 116% increase from the year prior; our top 3 attended events were roller disco, nerf wars and pottery making.

Advice Services

During the Academic Year 22/23, the Advice service provided advice, guidance, information and representation to University of Kent students through Kent Union’s Canterbury Advice Service. For the year 2021/22 we saw 2622 new cases; and for the year 2022/23 we saw a total of 3038 new cases which is an increase of 15.9% year on year.

Page 6

Kent Union

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

For those studying at Medway and needing academic, finance or housing advice, through Greenwich Students’ Union a total of 124 new cases were opened and the main areas of advice being sought were in relation to Finance and Academic areas.

The areas of advice that the service can help with relate to student-specific queries, including student finance, financial issues, student housing, student immigration and matters relating to University regulations (e.g. academic appeals, misconduct allegations). Additionally, the service works with the University of Kent Financial Aid team to administer the hardship fund for home fee-paying students, the Access to Learning Fund (ALF).

From 1st August 2022-31st July 2023 the Advice Service opened 2650 cases for Kent students, which is a 31% increase on last year. Given the cost-of-living crisis it is unsurprising that the most significant increase has been in the areas of finance and housing.

d. Jobshop

Jobshop is here to support and advise students seeking part-time employment whilst they study. During this particularly difficult economic period, and the increase in living costs finding part time employment for many students is more important than ever.

Building employability skills and experience is also crucial, this puts students in a strong position when they apply for graduate roles.

Students can contact Jobshop via our webpage, email or if they prefer, to use our drop-in service where they can pop in and discuss any employment issues/questions they have.

Jobshop supports Kent Union, the University of Kent and external organisations with their recruitment needs via our temp bank, or alternatively advertising their vacancies on our online jobs board, via our social media platforms, jobs fairs and plaza pop-ups.

Jobshop recruited 432 students as temps throughout 22-23, they have more than doubled the number of work opportunities since 2020/2021 offering 2,497 assignments equalling 22,905 work hours.

Via our online Jobs board, we have advertised 4,880 vacancies for employer opportunities across campus, Canterbury, Medway towns and nationwide summer camp jobs.

4,941 students have signed up to our weekly newsletter this academic year and our Instagram following is now 2,240.

After the success of our ‘return’ Jobs Fair in March 2022, we held 2 jobs fairs in 2022-2023, bringing in a combined total of £6,400 in revenues. We found that interest this year was reduced compared to March 2022 bookings, with companies citing cost of living and reduced number of vacancies as their reasons for not attending.

The University has continued to utilise the service of Jobshop and the number of assignments and temps working has increased considerably over the 2022-2023 period. Corporate Events have offered us opportunities to provide staff on every Open Day, Congregations in Canterbury and Medway and general Student Ambassadors to work during the course of the year. We provided 50 students for each Open Day and filled 150 shifts during July Congregations with 70 students across one week. July Congregations brought in £26.4k gross revenues in one week.

Another big assignment for Jobshop was arrivals weekend Student Ambassadors for Student Services. We filled over 100 shifts over the arrivals weekend including temps meeting and greeting new arrivals at UK Airports to escort them to campus, bringing in c£10k revenues in one week. Total Revenues from University of Kent for 22/23 was £122.3k.

Page 7

Kent Union

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

In addition to these large scale events, we also provide temps on an ongoing basis to the SLAS Maths Clinic, International Partnerships with many other departments now calling on us on a regular basis.

Historically we have charged a fee to Kent Union outlets to use the temp bank which has created a reluctance in the past to use Jobshop. To enable outlets to keep student staff costs to a minimum, from the 1st August 2022 a service fee was no longer charged, this has encouraged outlets to use our temp service, particularly during their busy periods without the worry of exceeding their budgets. 14,447 internal temp hours were worked.

Jobshop have had a fantastic but very challenging year due to a much-reduced pool of resources, having exceeded their budgets. At the end of July 2023, we achieved an income of £128,817 gross.

e. Oaks Nursery

The Oaks nursery is registered for 90 children per day, aged between 3 months and 5 years and provides high quality childcare to students and staff of the University, Kent Union and the wider community. The children are grouped in 4 different rooms, all with their own outdoor space according to their age and stage of development.

The nursery reserves several places for student parents to support the aims of the Union’s charitable purpose. The student parent families have the option to attend the nursery on either a 38-week part time contract or a PG full time contract with a reduction in sessional charges.

Children attending are from diverse and multi-cultural backgrounds with over 50 children having family groups which are bi-lingual or have English as a second or third language.

The nursery currently employs 34 career members of staff

The nursery aims to be a leading full day care setting in the Canterbury district to serve our members, the University of Kent’s staff, Kent Union staff and the wider community, providing competitive, flexible childcare and to ensure that children receive high quality learning experiences led by a team of professional, qualified staff.

For the year 2022/2023 the nursery faced staffing challenges due to the following :

Financial challenges for 2022 – 2023

Page 8

Kent Union (A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

Nursery Achievements 2022 – 2023

f. SU Networks

SU Network is a department of KUTL, and operates as an advertising agency specialising in the student market. SU Network is the media partner of multiple Students' Unions, working with them to develop their advertising partnerships and grow their media sales revenues. We work a number of brands, franchisees, local businesses and charities, delivering partnerships of all sizes. These focus on experiential advertising, digital marketing campaigns, fundraising, commercial / venue hire opportunities, and sponsorship packages, across multiple university campuses, sports teams and events.

Since SU Network was founded in 2018, we have operated as the media partner of multiple Students’ Union and external organisations, and are currently in full partnership with 11 SU’s for the 2023-24 academic year. In that time, we have grown the department's sales revenues to over £500k across all budgets and SU partners, with a surplus of over £78k budgeted for 2023/24. Now with links to multiple higher education organisations across the UK, we manage advertising and promotional channels at universities reaching over 200,000 students, and are currently fulfilling the second of a comprehensive 5-year business plan to increase our partnership portfolio and service delivery in the coming years.

Page 9

Kent Union (A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

g. Retail Trade and Licensed Trade and Catering

As well as contributing to Kent Union’s central resources the areas of Retail Trade and Licensed Trade and Catering provide invaluable services and experiences for students at the University of Kent as well as providing all students the opportunity to work part-time and develop their employment skills through our employability programme.

Catering and Licensed trade

Kent Union operates several licensed premises including Woody’s which provides day and evening catering as well as a wide range of alcoholic and non- alcoholic refreshments and supports students through a wide range of student events. Woodys has had a brilliant year providing excellent experiences for all students at Kent and in particular providing a safe social space for Team Kent as Woody’s takes on the name of “Home of Team Kent”. Whilst Revenues have continued to grow year on year with Woody’s delivering record revenues for 22/23 a steep rise in all costs has limited the bottom-line improvement from 22/23.

The Venue provides popular late-night entertainment for students in a safe environment. It features themed nights covering student supported events with a wide range of genres as well as headline acts and provides a unique offering to Kent students. The Venue hosted over 120 events for students in 22/23, sadly the cost-of- living crisis has had a significant impact on student budgets meaning less social activity which has had a negative impact on revenues in conjunction with unprecedented rising operating costs, as a result The Venue has had an extremely challenging financial year.

The Library Cafe is increasingly popular with students as it meets their refreshments requirements with hot and cold beverages, and a wide selection of snacks and hot food while they study at the University’s central library. The Library Cafe has fully returned to its pre pandemic trading levels and has now surpassed 2019 trading levels and continues to be one of the most popular services on campus.

After a 3-year hiatus summer ball returned this year and was hugely successful event with over 2800 students in attendance and very positive feedback from all, the event focused on an overall great experience, with a wide range of rides, fairground activities, street food, VK bus and much more, in addition to headliners such as Sagala, Karen Harding and Not3s.

Retail

Our Retail department comprises three outlets - two of these are Co-op Franchise stores, and the other is KENTCLOTHING. Our Co-op stores are owned and run by Kent Union, but the franchise arrangement we have with Co-op allows us to use their brand, product range and systems. This allows us to employ over 100 students each year, while being able to offer a wider range of groceries, hot and cold food to go, fresh and frozen foods, with stronger special offers and brand recognition, and greater value for money for students.

The franchise provides an excellent service to Kent students and staff, while also providing a stable infrastructure for our Retail operation, we work closely with Co-op to increase sustainable growth post pandemic and improve our retail operations profitability and contribution to Kent Union.

KENTCLOTHING was launched in February 2022. It is a clothing and merchandise store, specialising in University of Kent branded apparel, such as hoodies, sweatshirts, t-shirts and accessories. Customers can shop in-store and online using our click and collect service. The store is staffed exclusively by students, and has proved popular since its launch, and it is forecast to deliver additional contribution to Kent Union’s financial targets.

Both Co-op stores have seen significant growth in 22/23 with revenues growing by over £800k( 19%) year on year, rising costs have impacted retail heavily in addition to rising stock issues linked to Co-op supply and theft within our stores linked to the national cost of living crisis as well as supply shortages have meant retail hasn’t performed as well as hoped in regards to net contribution, however significant revenue growth and year on year net profit growth, shows the positive output our Retail operations are having within the Student community.

Page 10

Kent Union

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Objectives and activities (continued)

Strategic report

Achievements and performance

a. Strategic Plan 2021-2024

The Trustees approved the Union’s Strategic Plan for the period 2021-24 at its meeting in June 2021. The Strategy includes three strategic themes, with a series of strategic objectives under each theme, as shown below:

Our Strategy

Student Led – You get the first and last word

  1. Be an expert on Kent Students, their values and what matters most to them. We will understand better than anyone else the demographics, needs, concerns and expectations of Kent Students.

  2. Give students the opportunity to shape every aspect of their Student’s Union, no matter how small.

  3. Advocate on behalf of, and alongside our students to promote the students’ interests and priorities. We will not just be a passive service provider. We will work with students to co-create opportunities and solutions.

Here for You – When you are doing great or when you need a helping hand

  1. Challenge decision-makers and influencers to make the cost of being a student more affordable.

  2. Strive to be a Students’ Union you can always turn to, get advice from, and be supported by.

  3. Lobby the University for more investment in fit for purpose mental health services.

  4. Place a strong emphasis on embedding wellbeing within all our activities and opportunities.

  5. Champion an environment where ALL students feel safe and campaign for a positive, inclusive, anti-racist University culture.

A Place of Opportunities – Kent Union is a home for everyone like you

  1. Empower students to find their friends and a sense of belonging.

  2. Deliver more inclusive, diverse, and fun experiences that encourage students to try new things.

  3. Give students a reason to want to get involved and feel a part of Kent Union

  4. Make our activities, opportunities, and services even more accessible through innovative use of digital technology and tools.

The current strategic plan runs until 2024 when a new plan will be launched.

2022/23 continued to be challenging in relation to recovery from the Covid 19 pandemic and its impact on blended teaching styles and hybrid working patterns effecting foot fall on campus which in turn impacted commercial outlets. In addition, the cost of living crisis has had a notable impact on customer activity and spending trends, particularly in licensed trade and catering operations.

Page 11

Kent Union

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Strategic report (continued)

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Structure, governance and management

a. Constitution

Kent Union is registered as a charitable company limited by guarantee and was set up by a Trust deed.

b. Methods of appointment or election of Trustees

The management of the Group and the Company is the responsibility of the Trustees who are elected and coopted under the terms of the Trust deed.

c. Financial risk management

The Trustees have assessed the major risks to which the Group and the Company are exposed, in particular those related to the operations and finances of the Group and the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Plans for future periods

Details of the charity's plans for future periods have been disclosed in the Strategic Plan 2021-2024 section of the Trustees' report.

Engagement with employees and employment of the disabled

Employees have been consulted on issues of concern to them by means of regular consultative committee and staff meetings and have been kept informed on specific matters directly by management. The Group and the Company carry out exit interviews for all staff leaving the organisation and have adopted a procedure of upward feedback for senior management and the Trustees.

The Group and the Company have implemented a number of detailed policies in relation to all aspects of personnel matters including:

In accordance with the Group and the Company's equal opportunities policy, the Group and the Company have long-established fair employment practices in the recruitment, selection, retention and training of disabled staff.

Full details of these policies are available from the Company's offices.

Page 12

Kent Union

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 July 2023

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. 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 on 19 October 2023 and signed on their behalf by:

Syed Mahmood

John Paterson

Page 13

Kent Union

(A company limited by guarantee)

Consolidated Statement of financial activities (incorporating income and expenditure account) For the year ended 31 July 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
£
-
1,283,225
-
-
1,283,225
1,385,940
1,385,940
(102,715)
390,833
(102,715)
288,118		 Unrestricted
funds
2023
£
1,819,943
-
8,340,014
-
10,159,957
10,064,192
10,064,192
95,765
432,637
95,765
528,402		 Total
funds
2023
£
1,819,943
1,283,225
8,340,014
-
11,443,182
11,450,132
11,450,132
(6,950)
823,470
(6,950)
816,520		 Total
funds
2022
£
1,691,600
1,068,509
7,871,247
325
10,631,681
10,414,322
10,414,322
217,359
606,111
217,359
823,470

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

The notes on pages 22 to 44 form part of these financial statements.

Page 18

Kent Union

(A company limited by guarantee) Registered number: 11939038

Consolidated balance sheet As at 31 July 2023

Note
Fixed assets
Tangible assets
11
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Total net assets
Charity funds
Restricted reserves
23
Unrestricted reserves
23
Total funds		 203,466
559,194
880,921
1,643,581
(1,467,459)		 2023
£
774,565		 225,061
502,068
744,943
1,472,072
(1,346,582)		 2022
£
896,313
896,313
125,490
1,021,803
(198,333)
823,470
390,833
432,637
823,470
774,565
176,122
950,687
(134,167)
816,520
288,118
528,402
816,520

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

Syed Mahmood President

John Paterson External Trustee

2023

The notes on pages 22 to 44 form part of these financial statements.

Page 19

Kent Union

(A company limited by guarantee) Registered number: 11939038

Company balance sheet As at 31 July 2023

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Total net assets
Charity funds
Restricted funds
23
Unrestricted funds
23
Total funds		 341,737
439,580
781,317
(605,196)		 2023
£
774,565
1		 436,888
390,991
827,879
(702,390)		 2022
£
896,313
1
896,314
125,489
1,021,803
(198,333)
823,470
390,833
432,637
823,470
774,566
176,121
950,687
(134,167)
816,520
288,118
528,402
816,520

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 were approved and authorised for issue by the Trustees on 19 October 2023 and signed on their behalf by:

Syed Mahmood

John Paterson

The notes on pages 22 to 44 form part of these financial statements.

Page 20

Kent Union (A company limited by guarantee)

Consolidated statement of cash flows For the year ended 31 July 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Income from investments
Purchases of property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
287,961
-
(87,817)
(87,817)
(64,166)
(64,166)
135,978
744,943
880,921		 2022
£
257,297
325
(82,474)
(82,149)
(70,001)
(70,001)
105,147
639,796
744,943

The notes on pages 22 to 44 form part of these financial statements

Page 21

Kent Union

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

1. General information

Kent Union is the students' union of the University of Kent and all properly affiliated clubs and societies of Kent Union. It is also known as the Union, the University of Kent Students' Union, UoK Students' Union and Kent Students' Union; its legal name is Kent Union. Kent Union has a wholly owned subsidiary undertaking, Kent Union Trading Limited (KUTL), in relation to non-primary purpose trading, whose registered company number is 06795479.

The registered office of Kent Union is Mandela Building, The University of Kent, Canterbury, Kent CT2 7NW.

The Union is a private charitable company limited by guarantee, incorporated in England and Wales (Company No: 11939038, Charity No; 1183556).

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) (FRS102), and in accordance with applicable charity law. In accordance with FRS 102, no separate Statement of Financial Activities or Statement of Cash Flow has been presented for the Union alone.

2.2 Going concern

Kent Union reported a financial performance in the year resulting in an unrestricted reserves balance of £528k (2022: £433k). The Trustees have prepared detailed budgets and projected cash flow forecasts for a period of at least twelve months from the date of the approval of these financial statements.

The Union receives significant grant funding from the University of Kent and has confirmation of the 2023 commitment and the Trustees consider it reasonable to anticipate that support from the University will continue for the foreseeable future, based upon discussions with the University. In addition, the Union has net current assets at the end of the year of £176k (2022: £125k). Trustees believe that the company's financial resources and contingency planning is sufficient to ensure the ability of the company to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements.

. The Statement of Financial Activities and Balance Sheet consolidate the financial statements of Kent Union and its subsidiary undertaking Kent Union Trading Ltd. The results of the subsidiary are consolidated on a line-by-line basis after the elimination of intra-group transactions.

Kent Union meets the definition of a public benefit entity under FRS102. Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The charitable purpose and principal activity of Kent Union is the advancement of education of students at the University of Kent for the public benefit. The activities undertaken by the Union to deliver our charitable purpose are the provision of services to our membership of University of Kent students, to empower students at Kent to have a voice, fulfil their potential and get the most from university, and ensure the Union is an empowered and effective charity with a clear sense of purpose.

Page 22

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

2. Accounting policies (continued)

2.3 Recognition of Income

Kent Union receives grants from the University of Kent under contracts for the provision of charitable services, membership contributions, and income from trading activity closely associated with its charitable purposes. Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

2.4 Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Charitable expenditure comprises direct expenditure including direct staff costs attributable to the Union's activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of the resources.

Governance costs include those costs incurred in the governance of the Union's activities and are associated with constitutional and statutory requirements. Support costs include the central functions and have been allocated to activity cost categories based on assessed consumption as detailed above.

2.5 Interest receivable

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

2.6 Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Long-term leasehold property - remainder of the lease term Long-term leasehold property - remainder of the lease term
Fixtures and fittings - between 8.33% and 33.33% p.a. straight line or
reducing balance
Computer equipment - between 20% and 33.33% p.a. straight line

All fixed assets in excess of £1,000 are capitalised at the time of acquisition.

Each year a review is made of the remaining useful economic life of fixed assets, and if economic life is assessed as being different to that over which the asset is currently being depreciated, the undepreciated amount at the beginning of the year is depreciated over the remaining useful economic life.

2.7 Operating leases

Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the maximum period for which Kent Union intends to hold the lease.

Page 23

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

2. Accounting policies (continued)

2.8 Pension contributions

Kent Union participates in the Superannuation Arrangements of the University of London (SAUL), which is a centralised defined benefit scheme within the United Kingdom and is contracted-out of the Second State Pension (prior to April 2016). Staff that were TUPE'd into KUTL at 1 August 2021, participate in the governments NEST benefit scheme.

The employer's contributions payable.to the schemes in the year were £311,727 (2022: £277,696). SAUL ,contributions increased from 1 January 2023, on the employer's contribution rate from 19% of pensionable pay by 2% to 21% to reduce the contribution strain and help keep SAUL secure for the future. The NEST employer's contribution rate will remain at 6%.

Kent Union is not expected to be liable to SAUL for any other current participating employer's obligations under the Rules of SAUL, but in the event of an insolvency event of any participating employer within SAUL, an amount of any pension shortfall (which cannot otherwise be recovered) in respect of that employer, may be spread across the remaining participating employers and reflected in the next actuarial valuation.

A formal actuarial valuation of SAUL is carried out every three years by a professionally qualified and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2020.

Informal reviews of SAUL's position, reflecting changes in market conditions, cash flow information and new accrual of benefits, are carried out between formal valuations.

2.9 Taxation

No provision is made in these accounts for corporation tax as the Union is exempt from such taxes because of its charitable objectives and activities.

2.10 Investments

nvestments are stated at cost less any provision for diminution in value.

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

2.11 Stock

Stock is valued at the lower of cost or net realisable value, net of any impairment for obsolete and slow-moving items on a first in first out basis.

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the placing of the funds into a deposit account.

2.13 Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount, and provisions at the best estimate available at the time the provision is recognised of the amount which will be settled.

Page 24

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

2. Accounting policies (continued)

2.14 Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.15 Interest receivable

Interest on funds held on deposit is. included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the Bank.

2.16 Fund accounting policy

Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectivities of the Union. Restricted funds are funds subject to specific restrictive conditions imposed by donors. The purpose and use of the restricted funds is set out in the notes to the financial statements. All income and expenditure is shown in the Statement of Financial Activities.

Page 25

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

3. Critical accounting estimates and areas of judgment

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

Critical accounting estimates and assumptions:

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

Critical areas of judgment:

The preparation of the financial statements requires the trustees to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.

The following judgements have had the most significant impact on amounts recognised in the financial statements:

Lease commitments

The Union has entered into a range of lease commitments in respect of property, motor vehicles and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the Union has acquired the risks and rewards associated with the ownership of the underlying assets.

Tangible fixed assets

The Union has recognised tangible fixed assets with a carrying value of £774,564 at the reporting date (see note 11). These assets are stated at their cost less provision for depreciation and impairment. The Union’s accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings the Union determines at acquisition reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting dates the directors consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.

Where there are indicators that the carrying value of tangible assets may be impaired the Union undertakes tests to determine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of their value in use. Wherever possible the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset. The value in use calculation is based upon a discounted cash flow model, based upon the Union’s forecasts for the foreseeable future which do not include any restructuring activities that the Union is not yet committed to or significant future investments that will enhance the asset’s performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rate used for extrapolation purposes.

Page 26

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

4. Income from donations and legacies

Block grant
Job retention scheme grant		 Unrestricted
funds
2023
£
1,819,943
-
1,819,943		 Total
funds
2023
£
1,819,943
-
1,819,943		 Total
funds
2022
£
1,676,899
14,701
1,691,600

There are no restrictions placed by the donor of the block grant which would require it to be accounted for as restricted income.

5. Income from charitable activities

Advice and Welfare
Volunteering & Community
Sport & Recreation
Representation
Job Shop
Nursery
Parkwood Development
Sport & Recreation: Members contributions
Sport & Recreation: Fundraising		 Restricted
funds
2023
£
244,990
138,349
49,165
337,259
15,227
113,358
168,923
196,666
19,288
1,283,225		 Total
funds
2023
£
244,990
138,349
49,165
337,259
15,227
113,358
168,923
196,666
19,288
1,283,225		 Total
funds
2022
£
217,236
59,900
192,595
235,578
15,227
86,854
56,748
199,676
4,695
1,068,509

The members' contributions relate to subscriptions made by members of sports clubs and societies which are restricted to being utilised to provide sports and societies services to the members of the clubs and societies, and to amounts fundraised by sports club and society members to purchase equipment or fund trips or events relating to their sports club or society.

Page 27

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

6. Income from other trading activities

Income from fundraising events

Retail Trade
Licensed Trade & Catering
Other Trade
Total 2022		 Unrestricted
funds
2023
£
5,339,545
1,818,073
1,182,396
8,340,014
7,871,247		 Total
funds
2023
£
5,339,545
1,818,073
1,182,396
8,340,014
7,871,247		 Total
funds
2022
£
4,463,898
2,076,172
1,331,177
7,871,247

7. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Bank interest - - 325

Page 28

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

8. Analysis of expenditure on charitable activities

Summary by fund type

Retail trade
Licensed trade and catering
Other trade
Other membership skills development
Advice and welfare
Volunteering and community
Sport and recreation
Representation
Total 2022		 Restricted
funds
2023
£
-
-
300,619
-
244,728
128,775
340,239
371,579
1,385,940
533,645		 Unrestricted
funds
2023
£
5,197,913
1,936,464
1,024,710
677,146
195,364
57,358
496,447
478,790
10,064,192
9,880,677		 Total
2023
£
5,197,913
1,936,464
1,325,329
677,146
440,092
186,133
836,686
850,369
11,450,132
10,414,322		 Total
2022
£
4,285,759
2,150,960
1,305,960
568,969
376,585
169,553
731,913
824,623
10,414,322

9. Analysis of expenditure by activities

Retail trade
Licensed trade and catering
Other trade
Other membership skills development
Advice and welfare
Volunteering and community
Sport and recreation
Representation
Total 2022		 Support
costs
2023
£
5,197,913
1,936,464
1,325,329
677,146
440,092
186,133
836,686
850,369
11,450,132
10,414,322		 Total
funds
2023
£
5,197,913
1,936,464
1,325,329
677,146
440,092
186,133
836,686
850,369
11,450,132
10,414,322		 Total
funds
2022
£
4,285,759
2,150,960
1,305,960
568,969
376,585
169,553
731,913
824,623
10,414,322

Page 29

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Other costs
Kent Student Certificate for
Volunteering
Coaching
Direct grants to clubs and
societies
Entry fees and affiliations
Facilities and pitches
Insurance
Minibus lease and other costs
Motor and travel
Officials
Website and online payment
costs
Affiliations
Campaigns
Election expenses
Services and utilities
Media and publications
Stock
Support facilities costs
Fundraising
Office costs
Total 2022		 Retail Trade
2023
£
658,293
42,698
519,560
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,977,362
-
-
-
5,197,913
4,285,759		 Licensed
Trade and
Catering
2023
£
534,731
11,112
841,996
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
548,625
-
-
-
1,936,464
2,150,960		 Other Trade
2023
£
873,790
881
450,658
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,325,329
1,305,960		 Support
costs
2023
£
547,660
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
129,486
-
-
677,146
568,969		 Advice and
welfare
2023
£
356,040
-
26,886
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57,166
-
-
440,092
376,585

Page 30

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

9. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs
Depreciation
Other costs
Kent Student Certificate for
Volunteering
Coaching
Direct grants to clubs and
societies
Entry fees and affiliations
Facilities and pitches
Insurance
Minibus lease and other costs
Motor and travel
Officials
Website and online payment
costs
Affiliations
Campaigns
Election expenses
Services and utilities
Media and publications
Stock
Support facilities costs
Fundraising
Office costs		 Volunteering
and
community
2023
£
121,349
-
10,125
10,195
-
-
-
7,426
-
-
-
-
-
-
-
-
-
-
-
37,038
-
-
186,133
169,553		 Sport and
recreation
2023
£
204,677
740
198,830
-
45,942
91,733
39,897
15,551
36,865
20,906
75,721
12,204
22,883
-
-
-
-
-
-
70,737
-
-
836,686
731,913		 Representation
2023
£
654,657
3,997
18,468
-
-
-
-
-
-
-
-
-
-
41,078
2,535
-
6,287
5,855
-
117,492
-
-
850,369
824,623		 Total
funds
2023
£
3,951,197
59,428
2,066,523
10,195
45,942
91,733
39,897
22,977
36,865
20,906
75,721
12,204
22,883
41,078
2,535
-
6,287
5,855
4,525,987
411,919
-
-
11,450,132
10,414,322		 Total
funds
2022
£
3,837,867
63,076
1,745,234
4,226
35,636
101,633
52,290
19,787
29,981
28,572
49,390
9,433
15,851
32,159
1,763
2,421
14,840
13,821
4,079,298
272,324
4,680
40
10,414,322
Total 2022

10. Exceptional items

There were no exceptional items in the year (2022: £nil).

Page 31

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

11. Tangible fixed assets

Group and Company

Cost or valuation
At 1 August 2022
Additions
Disposals
At 31 July 2023
Depreciation
At 1 August 2022
Charge for the year
On disposals
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Leasehold
Improvements
£
1,547,095
1,021
(47,769)
1,500,347
854,600
107,148
(47,767)
913,981
586,366
692,495		 Fixtures and
fittings
£
1,209,066
86,796
(418,013)
877,849
1,005,248
92,544
(408,141)
689,651
188,198
203,818		 Total
£
2,756,161
87,817
(465,782)
2,378,196
1,859,848
199,692
(455,908)
1,603,632
774,564
896,313

Page 32

Kent Union

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

12. Investments

Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name Company Registered office or principal Principal activity
number place of business
Kent Union Trading Limited 06795479 University of Kent, Mandela Provision of
Building, Canterbury, Kent, CT2
management
7NW services, marketing
activities, nursery,
commercial services
and retail activity
Class of Holding Included in
shares consolidation
Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name Income Expenditure Net assets
£ £ £
Kent Union Trading Limited 8,458,804 8,458,804 1
13. Stocks
Group Group
2023 2022
£ £
Retail 169,529 176,074
Licensed trade and catering 33,937 48,987
203,466 225,061

Page 33

(A company limited by guarantee)

Kent Union

Notes to the financial statements For the year ended 31 July 2023

14. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2023
£
355,276
-
4,113
199,805
559,194		 Group
2022
£
126,719
-
72,320
303,029
502,068		 Company
2023
£
84,662
56,049
1,221
199,805
341,737		 Company
2022
£
53,021
36,583
44,255
303,029
436,888

15. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other creditors
Accruals and deferred income		 Group
2023
£
70,000
928,372
184,361
284,726
1,467,459		 Group
2022
£
70,000
788,030
84,155
404,397
1,346,582		 Company
2023
£
70,000
356,423
86,449
92,324
605,196		 Company
2022
£
70,000
470,128
82,071
80,191
702,390

Page 34

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

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

Group Group Company Company
2023 2022 2023 2022
£ £ £ £
Other loans 134,167 198,333 134,167 198,333

The above loan from the National Westminster Bank plc is supported by the Coronavirus Business Interruption Loan Scheme managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy.

Under the Coronavirus Business Interruption Loan Scheme, the Secretary of State has agreed to provide the Bank with a Partial Guarantee. The Partial Guarantee is given to the Bank and not Kent Union and Kent Union remains liable for all sums payable under the agreement in the event of a default.

Under the Coronavirus Business Interruption Loan Scheme, interest due during the first 12 months will be payable by the UK Government under the terms of the scheme and is in effect 0%.

The Loan Amount of £350,000 was drawn down on the 19 June 2020. Interest for the first 60 months is payable at a fixed rate of 2.33%, after which the rate is at 1.88% above base rate for the last 12 months of the loan. The loan is repayable over 72 months and will be fully repaid in May 2026.

Of the total above, £Nil (2022: £Nil) is repayable after more than 5 years.

17. Commitments under operating leases

At 31 July 2023 the Group and the Company had commitments under non-cancellable operating leases set out below:

Operating leases which expire:
Within 1 year
Within 2 to 5 years
Within more than 5 years
Operating leases which expire:
Within 1 year
Within 2 to 5 year		 Group
2023
£
764,520
3,076,828
11,385,133
15,226,481
Group
2023
£
68,245
187,007
255,252		 Group
2022
£
713,297
2,891,738
11,873,852
15,478,887
Group
2022
£
20,719
3,785
24,504		 Company
2023
£
764,520
3,076,828
11,385,133
15,226,481
Company
2023
£
68,245
187,007
255,252		 Company
2022
£
713,297
2,891,738
11,873,852
15,478,887
Company
2022
£
20,719
3,785
24,504

The total expense in the year was £743,802 (2022 £478,205)

Page 35

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

18. Staff costs

Group
2023
£
Wages and salaries
3,418,402
Social security costs
221,069
Contribution to defined contribution pension
schemes
311,727
3,951,198		 Group
2022
£
3,336,147
224,024
277,696
3,837,867		 Company
2023
£
1,784,281
221,069
311,727
2,317,077		 Company
2022
£
1,510,058
224,024
277,696
2,011,778

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

Direct charitable activities
Administration
Trading activities		 Group
2023
352
32
72
456		 Group
2022
306
42
36
384		 Company
2023
352
32
-
384		 Company
2022
306
42
-
348

The number of higher paid employees, including pension contribution was:

Group Group
2023 2022
No. No.
In the band £50,000 - £59,999 3 2
In the band £60,000 - £69,999 1 1
In the band £80,000 - £89,999 - 3
In the band £90,000 - £99,999 1 -

The following staff had a gross salary above £50,000 (excluding employer's pension contributions) in the year, in the bands as indicated below:- Melanie Sharman, Chief Executive Officer, Robert BuckinghamPegg, Deputy Chief Executive Officer, Lloyd Wilson, Director of Digital and Communication, Rebecca Green, Director of Membership Services, Victoria Todd, Director of People and Culture.

The aggregate employee benefits paid in the year to key management personnel for their services to the charity was £509,600 (2022: £587,433).

During the prior year the Union made termination payments totalling £30,640 to staff in relation to organisational changes made to better align the Union's management and staff support to achievement of the Union's charitable purpose and service delivery to our members. These payments were made with the direct or delegated authority of the Board of Trustees, as required by the Union's policy in relation to termination payments. There were no termination payments outstanding at the balance sheet date. No such payments were made during the year ended 31 July 2023.

Page 36

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

19. Expenses reimbursed to senior executives

Melanie Sharman
Lloyd Wilson
Robert Buckingham-Pegg
Rebecca Green
Victoria Todd
Olivia Adekunle		 2023
£
1,000
180
8,570
438
62
100
10,350		 2022
£
-
-
-
102
89
-
191

The reimbursement of expenses relates to expenditure wholly and exclusively incurred in the course of their duties as employees, and none relates to expenditure of a personal nature. The reimbursement of expenses principally relates to business travel expenses, attendance at conferences and business related purchases made on personal credit cards and subsequently reimbursed. All claims for reimbursement of expenses by the above individuals are authorised and counter-signed by a senior executive of the organisation.

Page 37

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

20. Related party transactions

Income from University of Kent - Grant funding
- Jobshop sales
- Other non-recurrent income
Expenditure to University of Kent - Payroll services
- Sports and societies
- Training
- Hire of facilities
- Maintenance & Cleaning
- Utility Charges
- Rents
- Sundry
Balance due to the University of Kent
Balance due from the University of Kent
Income from KUTL - Fee charged in relation to management support
services
Expenditure to KUTL - donation
Balance due from KUTL
Expenditure to Sweets For My Sweet		 2023
£
2,887,214
115,136
49,813
14,768
4,978
3,245
15,145
165,488
150,203
-
36,904
588,612
355,670
134,339
39,008
56,050
1,670
4,618,243		 2022
£
1,556,899
120,886
900
14,768
-
1,260
4,786
120,422
150,916
739,214
22,226
497,871
52,647
109,630
78,083
36,583
-
3,507,091

Sweets For My Sweet (Companies House number 6809257) is a business owned by the husband of Rebecca Green (Senior Leadership Team) and provides confectionary to events.

21. Pension

General Description of the pension scheme

Kent Union participates in the Superannuation Arrangements of the University of London (SAUL), which is a centralised defined benefit scheme within the United Kingdom and is contracted-out of the Second State Pension (prior to April 2016). SAUL is an independently-managed pension scheme for the non- academic staff of over 50 colleges, students' unions and.institutions with links to higher education. Staff that were TUPE'd into KUTL at 1 August 2021, participate in the government NEST benefit scheme.

Pension benefits accrued within SAUL currently built up on either a Final Salary basis or a Career Average Revalued Earnings (CARE) basis. Following a consultation with Members, the SAUL Final Salary Section closed on 31 March 2016 and all Members build up benefits on a CARE basis from 1 April 2016.

Kent Union is not expected to be liable to SAUL for any other current participating employer's obligations under the Rules of SAUL, but in the event of an insolvency event of any participating employer within SAUL, an amount of any pension shortfall (which cannot otherwise be recovered) in respect of that employer, may be spread across the remaining participating employers and reflected in the next actuarial valuation.

Page 38

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023 Funding Policy

SAUL's statutory funding objective is to have sufficient and appropriate assets to meet the costs incurred by the Trustee in paying SAUL's benefits as they fall due (the "Technical Provisions"). The Trustee adopts assumptions which, taken as a whole, are intended to be sufficiently prudent for pensions and benefits already in payment to continue to be paid and for the commitments which arise from Members' accrued pension rights to be met. The Technical Provisions assumptions include appropriate margins to allow for the possibility of events turning out worse than expected. However, the funding method and assumptions do not completely remove the risk that the Technical Provisions could be insufficient to provide benefits in the future.

A formal actuarial valuation of SAUL is carried out every three years by a professionally qualified and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2020. Informal reviews of SAUL's position, reflecting changes in market conditions, cash flow information and new accrual of benefits, are carried out between formal valuations. The funding principles were agreed in May 2021 and are due to be reviewed at SAUL's next formal valuation in 2023.

The Trustee and Employers have agreed that the Technical Provisions deficit at the 31. March 2020 valuation will be addressed by employer contributions. The employer's contribution increased by 3% to 19% in April 2022 and will increase again in January 2023 by an additional 2% totalling 21% to reduce the contribution strain and help keep SAUL secure for the future.

There is no defined benefit liability to be recognised by Kent Union in respect of the deficit contributions due to SAUL (ie. The present value of the deficit contributions) as at 31 July 2022, with NIL realised to the Statement of Financial Activities in the year.

Accounting Policy

Kent Union is a participating employer in SAUL. The actuarial valuation applies to SAUL as a whole and does not identify surpluses or deficits applicable to individual employers. As a whole, the market value of SAUL's assets was £4,564 million representing 116% of the liabilities for benefits accrued up to 30 April 2021.

It is not possible to identify an individual Employer's share of the underlying assets and liabilities of SAUL. Kent Union accounts for its participation in SAUL as if it were a defined contribution scheme and pension costs are based on the amounts actually paid (i.e. cash amounts) in accordance with paragraphs 28.11 of FRS102.

Page 39

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

22. Trustees' remuneration and expenses

2023 2022
£ £
Benjamin Bradley Remuneration 21,290 -
Pension contributions paid 1,830 -
Other benefits 57 -
Toni Abiodun Remuneration 2,131 -
Pension contributions paid 142 -
Matthew Bangura Remuneration 2,131 -
Pension contributions paid 156 -
Caroline Van Eldik Remuneration 20,143 21,014
Pension contributions paid 1,768 -
Guadalupe Sellei Remuneration 20,143 21,014
Pension contributions paid 1,768 -
Syed Mahmood Remuneration 21,532 2,307
Pension contributions paid 1,861 51
Thomas Freeston Remuneration 21,532 2,307
Pension contributions paid 1,861 51
Aisha Dosanjh Remuneration - 19,468
Pension contributions paid - 153
Favour Salami Remuneration - 19,718
Pension contributions paid - (36)
Oluwatobi Obaremo Remuneration - 18,848
Pension contributions paid - 190
Patrick Stillman Remuneration - 1,762
Pension contributions paid - 53

The remuneration to Trustees is an allowance for completing a portfolio of duties, alongside their role as a Trustee, as provided by the Union's constitution.

During the year ended 31 July 2023, no Trustee expenses have been incurred (2022 - £NIL).

Page 40

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

23. Statement of funds

Statement of funds - current year

Unrestricted funds
General reserve
Restricted funds
Advice and Welfare
Volunteering and Community
Sport and Recreation
Representation
Sport and recreation: Members contributions
Sport and recreation: Fundraising
Alumni fundraising
Nursery fundraising
Nursery
JobShop
Parkwood Development		 Balance at 1
August 2022
£
432,637
(285)
(4,697)
242,520
53,221
-
96,938
25
3,111
-
-
-
390,833		 Income
£
10,159,957
244,990
138,349
49,165
337,259
196,666
19,288
-
-
113,358
15,227
168,923
1,283,225		 Expenditure
£
(10,064,192)
(244,703)
(128,775)
(143,573)
(371,579)
(196,666)
-
(25)
(3,111)
(113,358)
(15,227)
(168,923)		 Balance at
31 July 2023
£
528,402
2
4,877
148,112
18,901
-
116,226
-
-
-
-
-
(1,385,940) 288,118

The University restricted grants relating to Advice and Welfare, Volunteering and Community, Sport and Recreation, Representation and Job Shop are grants made by the University of Kent, which are restricted to being used to meet costs incurred in the provision of the services and specific projects in those designated categories to the students of the University of Kent.

The members' contributions relate to subscriptions made by members of sports clubs and societies which are restricted to being utilised to provide sports and societies services to the members of the clubs and societies, and to amounts fundraised by sports club and society members to purchase equipment or fund trips or events relating to their sports club or society.

Alumni fundraising relates to amounts fundraised from Kent Union alumni restricted for use to directly support the Union's charitable activities.

Nursery fundraising relates to amounts fundraised by Nursery staff and parents which are restricted to purchase toys, equipment and other items for the Nursery.

Page 41

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

23. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General reserve
Restricted funds
Advice and welfare
Volunteering and community
Sport and recreation
Representation
Job shop
Parkwood development
Sport and Recreation:
Members contributions
Sport and recreation:
Fundraising
Nursery fundraising
Alumni fundraising
Nursey fundraising		 Balance at
1 August
2021
£
356,361
Balance at
1 August
2021
£
(285)
(4,698)
100,925
53,747
-
-
-
96,925
-
25
3,111
249,750		 Income
£
9,563,172
Income
£
217,236
59,900
192,595
235,579
15,227
56,748
199,676
4,694
86,854
-
-
1,068,509		 Expenditure
£
(9,366,896)
Expenditure
£
(217,236)
(59,900)
(171,000)
(236,104)
(15,227)
(56,748)
(199,676)
(4,681)
(86,854)
-
-
(1,047,426)		 Transfers
in/out
£
(120,000)
Transfers
in/out
£
-
-
120,000
-
-
-
-
-
-
-
-
120,000		 Balance at
31 July 2022
£
432,637
Balance at
31 July 2022
£
(285)
(4,698)
242,520
53,222
-
-
-
96,938
-
25
3,111
390,833

Page 42

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Restricted
funds
2023
£
Unrestricted
funds
2023
£
Tangible fixed assets
-
774,565
Current assets
288,118
1,355,463
Creditors due within one year
-
(1,467,459)
Creditors due in more than one year
-
(134,167)
Total
288,118
528,402
Analysis of net assets between funds - prior year
Restricted
funds
2022
£
Unrestricted
funds
2022
£
Tangible fixed assets
-
896,313
Current assets
390,833
1,081,239
Creditors due within one year
-
(1,346,582)
Creditors due in more than one year
-
(198,333)
Total
390,833
432,637
25.
Reconciliation of net movement in funds to net cash flow from operating activities
Group
2023
£
Net income/expenditure for the year (as per Statement of Financial
Activities)
(6,950)
Adjustments for:
Depreciation
199,692
Interest on investments
-
Increase in stocks
21,595
Loss on the sale of fixed assets
9,873
Decrease/(increase) in debtors
(57,126)
Increase/(decrease) in creditors
120,877
Net cash provided by operating activities
287,961		 Total
funds
2023
£
774,565
1,643,581
(1,467,459)
(134,167)
816,520
Total
funds
2022
£
896,313
1,472,072
(1,346,582)
(198,333)
823,470
Group
2022
£
217,359
206,793
(325)
(26,572)
-
387,422
(527,380)
257,297

Page 43

Kent Union (A company limited by guarantee)

Notes to the financial statements For the year ended 31 July 2023

26. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2023
£
880,921
880,921		 Group
2022
£
744,943
744,943

27. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1 August
2022
£
744,943
(70,000)
(198,333)
476,610		 Cash flows
£
135,978
-
64,166
200,144		 At 31 July
2023
£
880,921
(70,000)
(134,167)
676,754

28. Controlling party

The ultimate control of the Union is vested under the Constitution in the membership in General meeting. As such no single person or entity controls the Union as defined by FRS102.

Page 44