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2021-07-31-accounts

Registered company number: 12000783 Charity registration number: 1183625

A company limited by guarantee

FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 JULY 2021

CONTENTS

Page Page
Reference and Administrative Details of the Union, its Trustees and Advisers 1 - 2
Trustees' Report 3 14
Statement of T 15
Independent Auditor's Report 16 18
Consolidated Statement of Financial Activities 19
Consolidated Balance Sheet 20
Union Balance Sheet 21
Consolidated Statement of Cash Flows 22
Notes to the Financial Statements 23 - 40

LOUGHBOROUGH

REFERENCE AND ADMINISTRATIVE DETAILS OF THE UNION, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 JULY 2021

----- Start of picture text -----
Trustee Name Designation Year
Andy Doyle Director/Non-Student 2019-20 & 2020-21 (appointed 01/09/2019)
Trustee & Chair
Richard Taylor Director/Non-Student 2019-21 & 2020-21 (appointed 01/09/2019)
Trustee
David Kiddie Director/Non-Student 2019-21 & 2020-21 (appointed 11/06/2019, resigned
Trustee 27/11/2020)
Amy White Director/Non-Student 2019-20 & 2020-21 (appointed 01/09/2019, resigned
Trustee 31/01/2021)
Ana-Maria Bilcui Director/Executive 2019-20 & 2020-21 (appointed 01/09/2019, resigned
Officer Trustee 31/07/2021)
Matt Youngs Director/Executive 2019-20 & 2020-21 (appointed 01/09/2019, resigned
Officer Trustee 31/07/2021)
Alexander William Director/Executive 2020-21 (appointed 01/08/2020)
Hufton Officer Trustee
Oghenefejiro Amam Director/Executive 2020-21 (appointed 01/08/2020, resigned
Officer Trustee 31/07/2021)
James Greer Director/Executive 2020-21 (appointed 01/08/2020, resigned
Officer Trustee 31/07/2021))
Owen Michael Director/Student 2020-21 (appointed 09/10/2020, resigned
Henderson Trustee 31/07/2021)
Emily Victoria Director/Student 2020-21 (appointed 09/10/2020, resigned
Turnbull Trustee 31/07/2021)
Matthew John Director/Student 2020-21 (appointed 09/10/2020, resigned
Brown Trustee 31/07/2021)
Emily Jane Hook Director/Student 2020-21 (appointed 09/10/2020, resigned
Trustee 31/07/2021)
Amie Woodyatt Director/Student 2020-21 (appointed 09/10/2020, resigned
Trustee 31/07/2021)
Freya Mason Director/Executive 2021-22 (appointed 01/08/2021)
Officer Trustee
Charlotte Style Director/Executive 2021-22 (appointed 01/08/2021)
Officer Trustee
Rachel Caverhill Director/Executive 2021-22 (appointed 01/08/2021)
Officer Trustee
Bethan Jones Director/Student 2021-22 (appointed 01/08/2021, resigned
Trustee 01/08/2021)
Ashleigh Ponder Director/Student 2021-22 (appointed 01/08/2021)
Trustee
Harry Hughes- Director/Student 2021-22 (appointed 25/10/2021)
Slattery Trustee
----- End of picture text -----

LSU employs Union Directors to work closely with the Trustees and Executive Officers to ensure effective management of the Union:

Trevor Page, Union Director Paul Barlow, Deputy Union Director (resigned 01/10/2019) Liz Monk, Deputy CEO (appointed 01/08/2022) Alan Williams, Director of Commercial Services (resigned 31/12/2020) Maria Turnbull-Kemp, Director of Finance & Operations (appointed 29/09/2019, resigned 31/05/2020) Jo Gregory-Brough, Director of Marketing

Liam Davis, Director of Student Operations (resigned 31/12/2020)

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LOUGHBOROUGH

REFERENCE AND ADMINISTRATIVE DETAILS OF THE UNION, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 31 JULY 2021

Registered company number

12000783

Charity registration number

1183625

Principal office

Loughborough Students Union Ashby Road, Loughborough, Leicestershire, LE11 3TT

Independent auditor

Cooper Parry Group Limited Sky View Argosy Road East Midlands Airport Castle Donington Derby DE74 2SA

Bankers

Natwest Bank Plc Market Place Loughborough LE11 3NZ

Solicitors

Moss Solicitors 80-81 Woodgate Loughborough LE11 2XE

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

The Trustees present their report with the financial statements of the group and charity for the year ended 31 July 2021. The Trustees have adopted the provisions of Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Union and the group also trade under the name LSU.

Structure Governance and Management

LSU is an incorporated company limited by guarantee and is governed by its Memorandum and Articles of Association which were effective from 16 May 2019 and last updated on 11 June 2019.

It serves two institutions being Loughborough University and Loughborough College. All registered students of these two entities are members of LSU, unless they choose to opt out.

LSU Constitution is the governing document for LSU and a copy can be obtained at https://lsu.co.uk/democracy/governance-constitution.

The Board of Trustees (who are also the Directors for the purposes of Company Law) is ultimately responsible for governing the financial, legal and charitable affairs of the LSU consulting relevant stu body, wherever appropriate.

The Board consists of the following:

5)

The Union Director, responsible for operational leadership of the Union, will be in attendance at the Board meetings along with the Finance and Operational Director. All other members of the leadership team will be called upon when required, neither have any voting rights. The Board is supported by the Head of Governance who will attend as required to service the Board.

The Chair of the Board is elected by the Board from amongst the elected Lay Members and shall serve a term of two years and not more than two consecutive terms.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Method of Appointment

The management of LSU and the group is the responsibility of Trustees who are elected and co-opted under the terms of the constitution.

All Trustees are given an introduction to the activities of LSU by the Leadership Team. All Trustees receive an induction into their legal and administrative responsibilities. Training is provided to Trustees as and when required, based on an assessment of existing skills.

When reviewing our objectives and planning activities, we have given due consideration to the Charity

Pay and remuneration of key management

The remuneration of all staff including key management is benchmarked using local market data and inflation. Based on this benchmark the key management team receive pay rises in line with all other staff in the Charity. Parameters to the organisational pay review are set by the Finance and Risk Committee which also scrutinises individual pay rises and performance bonuses of key management.

Engagement with employees (including disabled persons)

employees' interests. Information about matters of concern to employees is given through regular updates and meetings which seek to achieve a common awareness on the part of all employees of the financial and economic

During employment, the Charity seeks to work with employees, taking into account their personal circumstances, to ensure appropriate training, development and employment opportunities are available to them to reach their full potential.

The Charity recognises the strengths of a workforce made up of people from diverse backgrounds. It is keen to ensure that, wherever possible, posts are accessible to disabled persons. Job descriptions, person specification and selection procedures are reviewed regularly to ensure that there is no bias preventing or discouraging disabled persons from applying. This is in keeping with the Equality Act 2010, but other factors are also taken into account. The Charity is committed to interviewing all applicants with a disability for a job vacancy who meet the essential elements of the person specification, ensuring that employees who become disabled are given every change to remain in employment by making reasonable adjustments and providing training and development general awareness of disability issues.

Related Parties and other Connected Charities and Organisations

The Charity had two subsidiaries, those being Loughborough Student Union Campus Nursery Ltd (sold February 2021) and Loughborough Student Services Ltd, our commercial arm of the Charity. In respect of the Nursery, the Charity did provide staff who work exclusively for the nursery and maintenance and administrative services which were charged back through either a management charge or in respect of salaries, the actual cost to the Charity.

We have a working relationship with Loughborough University and Loughborough College which is aligned to the 1994 Education Act, whereby we work with parties to ensure that we promote the general interests of its members as students and we do this by working closely by having agreed objectives that ultimately benefit our members.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Risk Management

The Trustee Board has examined the major strategic, business and operational risks faced by LSU. A risk register is established and will be reviewed quarterly. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. Budgetary and internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure they continue to meet the needs of the charity.

Key Risks and Mitigation

Included below are the key areas of risks that the Charity is facing and the mitigation of them.

Risk Impact of the Charity Mitigation of Risk
Continual loss of impact due from
the impact of the Covid19
Pandemic.		 The loss of income has been
significant and this has impacted
the Charity. Commercial income
remains low and in some areas
such as hospitality non-existent.		 The Government furlough scheme
has been used to support the
Charity and we continued to
benefit from support until the
scheme closed, we have
restructured the Charity which has
resulted in redundancies, but the
long-term financial impact will
prove beneficial in the long term.
Asset Deterioration The Charity physical asset bases
deteriorates to such an extent that
future income and activities is put
at risk		 The age of the building is
significant and there is a need in
investment. The Charity is looking
at selling the building and land, the
view will be to reinvest a
proportion of the income to
redevelop areas on an ongoing
basis.
Ongoing financial implication of
the SUSS Pension Scheme		 The Charity is part of the National
Students' Union pension scheme
SUSS. The scheme is
significantly underfunded - scheme
trustees report returns on
investment are insufficient to meet
budget the draft of which has been
further increased to deficit
payments of £325k.
There has been a recently
announced a further additional
deficit which is liable to have a
significant impact on the 2020
revaluation.
This is further drain on the Union's
medium-term finances but not at a
level that would threaten our
immediate mission.		 No entrants to the scheme will be
allowed, but the Charity will need
to monitor the financial situation on
an ongoing basis. There is a
significant financial risk to the
Charity but unfortunately there is
little that can be done, except
ensure that it works with the SUSS
and make sure that adequate
provision is made to mitigate the
shortfall. The revaluation has been
conducted by the actuaries and
the impact of the increased Levy
and payments are taken into
account within the budget.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Objectives and Activities

Objectives

Loughborough University for public benefit by:

Strategic Plan 2019-2025: Looking Forward

LSU faced significant disruption to both its commercial operations and student activities, as a result of COVID19, however remained committed to the delivery of its Strategic Plan (albeit in a slightly unconventional way). The plan focused on eight key themes outlined below:

Within the parameters of the above objectives, LSU embarked upon a major refurbishment programme to cement that the delivery of new building, due to be built by the University, was to be delayed).

The ground floor developments created an entirely new frontage for the building, delivering a space for students space (operating across both the daytime and evening) to study, socialise and showcase student performers/local artists.

Upstairs, Fusion and Victory Bar were extensively renovated to include a new floor, bar frontage and backdrop, alongside the introduction of new booth seating and photo opportunities. The refurbishment work was well received by students and LSU staff alike, many of whom have commented on how much lighter and more

Despite the on-going challenges presented by COVID-19, we managed to maintain services and engagement with our student members through digital channels this included continuing to provide peer support and welfare services and digitally focused student opportunities. Many of these changes have had a positive impact on the organisation and we will continue to see the positive impact of these changes in the future. With staff continuing to work at home, our platforms have further adapted and the majority of our operational functions (including finance, payroll, IT, people development, and governance) have the capability to be delivered remotely with no disruption to our service delivery.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Public Benefit Statement

The Trustees developed the Strategic Plan for the start of the 2020 academic year, and the priorities undertaken during the 2020-21 of students at Loughborough University; this has been achieved despite it not being in its traditional format. The Board acts with due regard for the requirements under the Charities Act to ensure its activities meet its obligation with regard to public benefit.

The Trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit in exercising their powers or duties. They have referred to this guidance when reviewing the Charitable Trust's aims and objectives and in planning its future activities.

Student Opportunities

LSU provides a wide range of services and activities for students. The majority operate with the involvement of student volunteers who are supported by members of the staff team. These activities include:

Advice & Academic Representation

The Advice & Academic Representation department support and empower students, both as a collective (through academic representation) and as individuals (through LSU Advice Service), in the pursuit of a high-quality and fair academic experience. They work closely with the Education and Welfare & Diversity Executive Officers to develop policy, campaigns, and projects to improve the student experience. Their critical friendship with the University enables them to work together to listen to and respond to the student voice, effect positive change and assure academic quality.

The LSU Advice Service provided independent, confidential and non-judgemental advice for 1,062 students and doctoral researchers in 2020-2021, supporting them through difficult times with their studies and a variety of university formal processes. Their areas of advice includes but are not limited to; academic misconduct, appealing results, disciplinary and car parking offences, mitigating circumstances or if they want to make a complaint to the University. A team of four Advisors work with University colleagues to avoid issues arising where possible and can support with informal resolution of disputes between staff and students/doctoral researchers.

The Academic Representation Coordinator worked closely with the Education Executive Officer, Taught School Presidents and Doctoral Researcher Presidents to support and lead a network of academic representatives focussed on feeding back the academic interests of students and enacting positive change. In 2020-2021, Course Reps (402) and Doctoral Researcher Reps (52) were led and supported by School Presidents (30) and Doctoral Researcher Lead Reps (9).

Peer Support

The Peer Support department empowers students to create a friendly and supportive environment through the creation of student-to-student sharing of knowledge, skills, and support. Through building learning communities, the peer-to-peer support allows students to enrich their broader student experience and thrive in their academic endeavors.

a is an online portal for prospective, pre-arrival and current students to submit an enquiry and receive a personalised email response from a student. Departmental, international, BME, Mature, disability or general student experience mentors provide a tailored response to any question submitted. Mentors offered reassurance, insights, and empowered students to access the opportunities and support available to them. In the 2020-21 academic year, our volunteer mentors answered 214 questions.

In 2020-2021, Peer Support allocated over 4,500 first year, Foundation or Erasmus+ and International Exchange students a Peer Mentor. This provides an extra point of contact for students, easing their transition into university, welcoming them to their department, providing insight into their course, answering questions, and signposting to other relevant contacts. The student mentors also run additional initiatives, such as holding panel discussions,

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

helping new students navigate and find their way around campus, or running revision cafes to create a productive and supportive study environment.

Throughout 2020-2021, Peer Support held over 248 hours of Peer Assisted Learning sessions. These optional study sessions, attached to a specific module, were facilitated by students who had already passed the module. Through organising discussion and activities, the student leaders provide a relaxed environment where students can ask questions and attendees are able to explore their learning content and gain a better subject understanding for themselves. Peer Assisted Learning allows students to take control of their own learning journey, revise concepts and explore the ideas covered on the course in more depth. Feedback reported the development of study skills, academic confidence, learner autonomy and improved subject knowledge from those that participated. In a year where COVID-19 severely impacted on student ability to share, learn, and interact, PAL offered pastoral and academic support and guidance. Over 6,154 hours of attendance were recorded across both Semesters last year - a record for Loughborough.

Peer Supported also coordinates other Peer-Led initiatives. A Social and Support Network was established for both students undertaking a Masters, and for our Postgraduate Community on our London Campus. These learning communities provide opportunities for students to share experiences, gain support, network, and exchange knowledge with their Peers. A writing gym also supported Doctoral Researchers by providing a productive and supportive environment for self-study.

In total Peer Support, supported over 600 volunteers last year - providing over 100 hours of training. In this manner, Peer Support also offers a development opportunity to volunteers as well as recipients; enhancing skills and helping our graduates develop attributes such as leadership, communication, and emotional intelligence.

Training Academy

The LSU Training academy is a new LSU initiative which provides an inclusive, accessible and relevant development journey for students. It aims to support students by providing practical, flexible, and dynamic training opportunities. By creating a central space, LSU offers more students further opportunities to enhance their skills. Through promoting internal and external training, we work towards encouraging and inspiring our students to recognise themselves as leaders; giving them the ability to respond to challenges and effect change on a global platform.

LSU provides our leaders mandatory online training to ensure they are carrying out their leadership role in a safe, inclusive, and well-planned manner and ensuring they understand the values of their volunteer role. In 2020-21, LSU recorded 4,223 completions of online training modules by our student members with modules such as Equality, Diversity and Inclusion as well as Health and Safety. LSU is now working to develop further modules to help create knowledgeable, self-reliant and pro-active leaders within our community.

Several workshops were run to engage and develop our leaders, including two accredited female empowerment programmes, The three-day course for self-identifying female students explored goal setting, assertiveness, and the ability to embrace change.

Furthermore, LSU ran an accredited Mental Health First Aid course that aimed to provide our students a deeper understanding of mental health and the factors that can affect wellbeing, including their own. This course offered practical skills to spot the triggers and signs of mental health issues and developed our confidence to step in, reassure and support a person in distress. This learning outcomes report a development of non-judgmental listening skills as well as the knowledge to help someone recover their health by guiding them to appropriate support.

Finally, LSU ran two the courses, which allowed students to develop and deliver their own course and share their knowledge, experience and skills with the wider community. A session was delivered to Halls on leadership and creating a positive culture. A workshop was provided on how to apply for sponsorship, and a further training session was delivered on how to be an effective Trustee. In total, 160 individual instances of attendance for workshops were recorded. We are excited to build and grow this provision in support of our professional and personal development next year.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Action

Action is where volunteering and student development fits within LSU. Action has a strong relationship with the wider Loughborough Community and local stakeholders, with students contributing thousands of volunteering hours each year to support good causes. The programme was adapted due to the impact of COVID-19 but despite this Action has still managed to have a significant impact on the community by engaging in the following:

Welfare & Diversity

Welfare and Diversity encompasses all students during their University experience. From promoting positive health and wellbeing to providing underrepresented students with a voice, Welfare and Diversity ensures every student has a family at Loughborough.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Enterprise

Santander Initiate Fund

LSU Enterprise were awarded £10,000 as an initiate fund for students to apply to. The funding is designed to encourage and help students try their ideas out, develop new business skills including understanding the need for market research and helping them develop their networking skills.

LSU received 72 student applications and awarded 26 students with funding up to £500. As part of the initiative this summer, L from digital designers, fitness and leisure apps, vertical smart garden concept, Independent music label and sustainable sanitation to name a few to name a few. We are now into the 3rd Year of the Santander Initiate Fund with applications currently open to students.

Throughout 2020-2021, LSU Enterprise has grown in all aspects, from how it operated, to what activities launched, awareness and engagement, and potentially the most important one how many students we have helped to get involved in LSU Enterprise.

RAG

supporting student fundraising for whatever charity that they wish to support. The impact on the community and the personal experience that has been achieved by the student has far reaching consequences. The team is led by a paid Executive Officer who in turn is supported by a member of staff.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Societies

The Societies section within LSU supports and In 2020-2021, LSU still had a significant membership across five different sections including Academic and Careers, Culture and Faith, General Interest, Outdoor and Sport and Performance and Arts.

Athletic Union

The Athletic Union has had a difficult year, as a result of COVID-19, with many associated restrictions causing academic year, but with a focus on safe play in order to safeguard our student members.

Despite the setback this, the Athletic Union continued to strategically focussed itself towards its mission to meet the 2025 strategic vision set within its strategy. From staff to Athletic Union Executive Planning, the three main priorities were:

Awards

Student achievement is celebrated by a number of awards but the LEA Awards (Loughborough Experience Awards) which is held annually in June is our key event which is supported by key staff from the University who are invited and are keen to attend and support the events. This year, our Awards were held in person.

Other award events that were held include:

All sections are regular attendees at their respective national sectional awards, and a number including Action, Media, Rag, Welfare and Diversity and Societies have won multiple awards each year.

Entertainments and Events

For every stage of their university journey, LSU aims to provide opportunities for students to have fun and engage with the rich and varied student experiences available to them.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

LSU Services

Financial Review

The financial statements included within the financial statements are based on a 12 month period.

LSU has continued to benefit from the recognition and support of the University, and this year the annual block grant was £1,633,013 (2020- £1,496,939). LSU was in receipt of £1,663,013 (2020: £2,344,983) grant funding for the period.

6,507,320 (2020: £8,745,325). Total expenditure was £6,680,870 (2020: £8,414,587) on the wide-ranging students benefits the LSU provide, as well as modest fundraising and other revenue-generating activities we undertake, gave a net expenditure of £173,550 (2020: net income of £330,738).

The Board of Trustees have reviewed their reserves and they will continue ensure that everything is done to build reserves and remain a financially viable Union.

Reserves

The Board of Trustees have reviewed the reserves of the charitable company and Group.

The reserves of the Group are in deficit by (£1,337,635) (2020: £1,107,146), comprising £3,554,753 (2020: £2,958,965) of designated capital funds, (£4,770,683) (2020: (4,870,601)) of pension deficit funds, £485,588 (2020: £444,997) of restricted funds and (£607,293) (2019: £359,493) of unrestricted free reserves. It is the intention of the Board to ensure that LSU has sufficient reserves which plans for maintenance of essential services for our users.

Our policy takes into account any risks associated with unplanned closures within the LSU business model and takes into account spending commitments, potential liabilities and financial forecasts.

The Board will ensure that the reserves policy is monitored and reviewed on an annual basis to ensure that it remains effective in the light of changing funding and financial climate and other risks. The Board are aware that the reserves are in deficit but that this is due to the impact of the revaluation of the pension scheme, whilst the Board is concerned by the outcome of the revaluation, their focus will be ensuring that the Charity maintains its focus on generating a surplus through trading activity to ensure we continually add to our reserves and ensure we have a strong cash position.

It is the Board intention to grow the reserves (excluding the SUSS) scheme so that is has the equivalent of nine months standard operating expenditure.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Students Union Superannuation Scheme (Scheme)

The Scheme, now closed to new entrants, provides pension benefits in retirement and benefits on death either before or after retirement. The benefits provided by the Scheme are set out in the Trust Deed and Rules dated accordance with Section 224(1) of the Pension Act 2004 the Trustees of the Scheme have had the Scheme undergo an actuarial valuation. The outcome of the valuation as of 30 June 2019 was as follows:

The impact on the Union has been further explained under note 17.

Fundraising

Fundraising is conducted by the Charity, the Charity is aware of the importance that raising charitable funds in accordance with the Charities (Protection and Social Investment) Act 2016, included in section 13 of the Act and that our approach to fundraising is aligned to those requirements. The Charity is committed to offering all its student members the opportunity to take part in fundraising activities during their studies.

The Charity aims to offer support for a range of diverse activities through involvement in the Raise and Give Society (RAG) or through hiring of fundraising equipment for other society or individual student group. The charity will ensure all fundraising activities undertaken by students is accurately and properly recorded in order to provide the student body, the Board and our partners, this will include any complaints and how those complaints have been handled, ensuring that the approach to fundraising is inclusive and that the organisations we work with are aligned to our own values and goals. The approach is a purely voluntary and participative approach and the Charity strongly discourages any approach that is deemed unreasonably intrusive or persistent or applies undue pressure to donors.

Third Party Indemnity

Qualifying indemnity provision is in place for the benefit of the Trustees of the Union.

Plans For The Future

Despite the ongoing pandemic the outlook for the Union is positive, the Charity has continued to engage positively with its student members and is very much determined to ensure that their experience is positive despite the ongoing restrictions, the support from Government in respect of the furlough scheme, and grants has enabled the Charity to continue to serve our student members. The Union has also restructured, and this will prove to have both a short-term and long-term positive financial impact.

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Approval

The report of the Directors and Trustees has been prepared in accordance with the special provisions relating to the companies subject to the small companies regime within Part 15 of the Companies Act 2006.

This report was approved by the Trustees on 28 April 2022 and signed on their behalf by:

Andy Doyle, Chair

Matt Youngs, President

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TRUSTEES' REPORT FOR THE PERIOD ENDED 31 JULY 2021

Trustees' responsibilities statement

The Trustees (who are also 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 period which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustees are required to

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

auditor is unaware:

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

This report was approved by the Trustees on 28 April 2022 and signed on their behalf by:

Andy Doyle, Chair Matt Youngs, President

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Opinion

We have audited the financial statements of ry July 2021 which comprise the group statement of financial activities, the consolidated and company only balance sheet, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable audit of the financial statements section of our report. We are independent of the Group and the Parent Charitable Company in accordance with the ethical requirements relevant to our audit of the financial statements accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the trustees oncern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and Parent Charitable 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.

Other information

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

We have nothing to report in this regard.

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Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Report of the Trustees.

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

Responsibilities of trustees

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

In preparing the financial statements, the trustees concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below:

Our assessment focussed on key laws and regulations the Group and Parent Charitable Company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation.

17

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult to detect than those arising from error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located at the Financial https://www.frc.org.uk/auditorsresponsibilities. This description forms

Use of our report

Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than opinions we have formed.

Simon Atkins FCA Senior Statutory Auditor for and on behalf of:

COOPER PARRY GROUP LIMITED

Chartered Accountants Statutory Auditors Sky View Argosy Road East Midlands Airport Castle Donington Derby DE74 2SA Date: 28 July 2022

18

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

Income from:
Donations and legacies
2
Charitable activities
4
Other trading activities:
Fundraising
3
Trading activities
Sale of Subsidiary
19
Investment income
Total income
Continuing operations
Discontinued operations
Expenditure on:
Raising funds
Charitable activities
Total expenditure
5
Continuing operations
Discontinued operations
Net income before other recognised gains
and losses
Transfers between funds
13
Other recognised losses
Actuarial losses on defined benefit pension
schemes
17
Net movement in funds
Reconciliation of funds:
Total funds brought forward
13
Total funds carried forward		 Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2021
£
2021
£
2021
£
2020
£
-
2,664,160
2,664,160
2,344,983
145,217
481,610
626,827
1,245,302
-
2,474,553
2,474,553
4,196,812
-
409,746
409,746
957,022
-
332,015
332,015
-
-
19
19
1,206
145,217
6,362,103
6,507,320
8,745,325
145,217
5,976,365
6,111,582
7,931,811
-
395,738
395,738
813,514
-
3,072,604
3,072,604
4,228,615
104,626
3,503,640
3,608,266
4,185,972
104,626
6,576,244
6,680,870
8,414,587
104,626
6,154,258
6,258,884
7,673,145
-
421,986
421,986
741,442
40,591
(214,141)
(173,550)
330,738
-
-
-
-
40,591
(214,141)
(173,550)
330,738
-
(56,939)
(56,939)
(1,678,042)
40,591
(271,080)
(230,489)
(1,347,304)
444,997
(1,552,143)
(1,107,146)
240,158
485,588
(1,823,223)
(1,337,635)
(1,107,146)

The current period figures relate to the 12 months ended 31 July 2021. The prior period figures relate to the 11 months ended 31 July 2020.

All income and expenditure derive from continuing activities with the exception of activities associated with the in the year (see Note 19).

The notes on pages 23 to 40 form part of these financial statements.

19

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021

Note
Fixed assets
Tangible assets
8
Current assets
Stocks
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one year
11
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after more than one
year
12
Defined benefit pension scheme liability
12
Net assets
Union Funds
Restricted funds
13
Unrestricted funds
General funds
13
Designated
capital fund (including
revaluation reserve)
13
Designated - pension reserve
13
Total funds		 £
177,466
276,605
675,775
1,129,846
(1,443,339)
3,554,753
(4,770,683)		 31 July
2021
£
£
3,554,753
296,315
192,887
790,212
1,279,414
(578,313)
(313,493)
3,241,260
-
(4,578,895)
(1,337,635)
485,588
(607,293)
2,958,965
(4,870,601)
(1,215,930)
(1,337,635)		 31 July
2020
£
2,958,965
701,101
3,660,066
(47,371)
(4,719,841)
(1,107,146)

444,997
359,493
(1,911,636)
(1,107,146)

The financial statements were approved by the Trustees on 28 April 2022 and signed on their behalf, by:

Andy Doyle, Chair Matt Youngs, President

Registered company number: 12000783

The notes on pages 23 to 40 form part of these financial statements.

20

UNION BALANCE SHEET AS AT ENDED 31 JULY 2021

31 July 31 July
2021 2020
Note £ £ £ £
Fixed assets
Tangible assets 8 3,554,753 2,945,252
Investments 9 20,000 20,001
3,574,753 2,965,253
Current assets
Stocks 177,466 296,315
Debtors 10 276,605 309,512
Cash at bank and in hand 675,775 551,852
1,129,846 1,157,679
Creditors:amounts falling due within one year 11 (1,624,944) (696,542)
Net current assets (495,098) 461,137
Total assets less current liabilities 3,079,655 3,426,390
Creditors:amounts falling due after more than
one year 12 - (47,371)
Defined benefit pension scheme liability 12 (4,578,895) (4,719,841)
Net assets (1,499,240) (1,340,822)
Union Funds
Restricted funds 13 485,588 444,997
Unrestricted funds
General funds 13 (768,898) 139,530
Designated
capital fund (including revaluation
reserve) 13 3,554,753 2,945,252
Designated - pension reserve 13 (4,770,683) (4,870,601)
(1,215,930) (1,925,349)
Total funds (1,499,240) (1,340,822)
The financial statements were approved by the Trustees on 28 April 2022 and signed on their behalf, by:
Andy Doyle, Chair Matt Youngs, President

Registered company number: 12000783

The notes on pages 23 to 40 form part of these financial statements.

21

UNION

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

Cash flows from operating activities
Net income/(expenditure) for the period
Adjustment for:
Depreciation charges and loss on disposal of fixed assets
Gain on disposal of investment in subsidiary
SUSS charge net of repayments
Decrease in stocks
(Increase) /decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
Cash flows from investing activities:
Proceeds from sale of investment in subsidiary
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities:
Borrowings advanced in the period
Repayments of borrowings
Net cash used in financing activities
Change in cash and cash equivalents in the period
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 2021
£
(230,489)
245,345
(332,015)
(99,919)
118,849
(83,718)
826,628
444,681
345,000
(854,118)
(509,118)
-
(50,000)
(50,000)
(114,437)
790,212
675,775		 2020
£
(1,347,304)
254,766
-
1,562,932
44,077
14,303
(1,309,563)
(780,789)
-
(104,113)
(104,113)
50,000
(11,835)
38,165
(846,737)
1,636,949
790,212

22

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

1. Accounting Policies

1.1 Basis of preparation of financial statements

registered charity.

The address of the registered office is given on page 2 of these financial statements.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.

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

Loughborough Students' Union constitutes a public benefit entity as defined by FRS 102.

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the Union and its subsidiary undertakings, Loughborough Student Services Limited and . The results of the subsidiaries are consolidated on a line by line basis. during the period, the results were consolidated on a line by line basis up to the point of disposal.

The accounts have been prepared for a period of 12 months ended 31 July 2021 (2020: 11 months ended 31 July 2020).

No separate SOFA has been presented for the Union alone as permitted by SORP.

The Union is a registered charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.2 Fund accounting

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

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

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

1.3 Basis of consolidation

The consolidated financial statements consolidate the results of the parent company and of the subsidiaries on a line by line basis. A separate Statement of Financial Activities and income and expenditure account for the charitable company itself are not presented because advantage has been taken of the exemptions afforded by section 408 of the Companies Act 2006.

23

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

1. Accounting Policies (continued)

1.4 Going concern

At the time of signing the accounts, the Trustees have considered the effect of the Coronavirus on the going concern position, and consider that after taking this into account, the group will continue to operate for a period of at least 12 months from the date of signing these accounts. At the balance sheet date the group had sufficient financial headroom to continue operating, significant funding has been secured with key partners. At the balance sheet date the group held significant cash balances and had significant net current assets. The deficit net funds position has arisen from an extension of the repayment period under which the Union is committed to paying deficit contributions, to reduce the deficit on the SUSS pension scheme, which is closed to new entrants. This deficit is repayable over a number of years, and is built into financial forecasts prepared by the executive team. Government support is utilised, where it is appropriate to do so, during the period and since the period end, the Furlough scheme has been used.

The financial forecasts prepared by the executive team show that the group will be able to operate within the facilities available to it.

On that basis, the Trustees have prepared these financial statements on a going concern basis.

1.5 Income

Income from donations and legacies are recognised at the point at which the Union becomes legally entitled to the funds.

All other income is derived from charitable activities and trading activities. This income is recognised if the following conditions are satisfied:

1.6 Expenditure

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

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objectives of the union.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the Uni support costs and costs relating to the governance of the Union apportioned to charitable activities.

24

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

1. Accounting Policies (continued)

1.8 Tangible fixed assets and depreciation

Tangible fixed assets (excluding freehold land and buildings) are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives:

Land - Not depreciated - Freehold property 5 - 40 years - Fixtures & fittings 3 - 10 years

Freehold land & buildings are carried at fair value at the period end less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date. Fair values are determined from market based amount as a result of a revaluation are recognised as unrealised gains and are accumulated within funds.

1.9 Impairment

A review for impairment of a fixed asset is carried out if events or changes in circumstance indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the consolidated statement of financial activities.

1.10 Leasing

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Union. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

25

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

1. Accounting Policies (continued)

1.11 Stocks

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

1.12 Interest receivable

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

1.13 Pensions

The Union operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Union to the fund in respect of the period.

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. recorded as a liability, with annual movements in the present value unwound through the Statement of Financial Activities.

The scheme was closed to future accrual on 30 September 2011.

1.14 Debtors

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

1.15 Cash at Bank and in hand

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

1.16 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Union anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

26

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

1. Accounting Policies (continued)

1.17 Financial instruments

The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Financial Activities.

For financial assets measured at amortised cost, the impairment loss is measured as the difference

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

1.18 Judgments in applying accounting policies and key sources of estimation uncertainty

Amounts included in the financial statements involve the use of judgment and/or estimation.

These judgments and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgments and estimation is contained in the accounting policies and/or the notes to the financial statements and the key areas are summarised below:

Judgments in applying accounting policies

The trustees must judge whether all of the conditions required for income to be recognised in the Statement of Financial Activity in the financial period, as set out above, have been met.

Sources of estimation uncertainty

27

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

2. Income from donations and legacies

Grants
Other government grants
Total 2020		 Restricted
funds
2020
£
-
-
-
-		 Unrestricted
funds
2021
£
1,663,013
1,001,147
2,664,160
2,344,983
Total
funds
2021
£
1,663,013
1,001,147		 Total
funds
2020
£
1,792,161
752,142

2,664,160		 2,344,983

2,344,983

£913,464 of other government grants relates to income received under the Scheme (2020: £752,142).

3. Income generating services

Bars
Entertainment
Shops
Catering
Partnership
Car parking
Rents and
franchises
Total
Total 2020		 Sales
£
281,187
455,128		 Cost of
sales
£
141,849
138,421

280,270
860,622
116,319
-
-
424
1,257,635
1,974,430		 GP
%
49.55%
69.59%		 Other direct
expenses
£
63,900
171,407
235,307
325,544
170,550
18,013
-
142,258
891,672
1,050,708		 Surplus
2021
£
75,438
145,300		 Surplus
2020
£
638,309
287,226
736,315
1,200,217
334,110
28,520
3,344
172,047		 61.94%
28.29%
65.19%
100.00%
100.00%
99.75%		 220,738
14,051
47,241
10,507
3,344
29,365		 925,535
135,817
72,093
-
12,620
25,609
2,474,553 49.18% 325,246 1,171,674
4,196,812 52.95% 1,171,674

4. Other incoming resources

RAG
Membership
Income from student activities
Total
Total 2020		 Restricted
funds
2021
£
-
40,822
104,395
145,217
418,832		 Unrestricted
funds
2021
£
1,823
307,198
172,589		 Total
funds
2021
£
1,823
348,020
276,984
626,827
1,245,302		 Total
funds
2020
£
44,515
683,435
517,352
481,610 1,245,302
826,470

28

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

5. Analysis of Expenditure by expenditure type

Cost of
sales
Staff
costs Depreciation
Support
costs
2021
£
2021
£
2021
£
2021
£
Costs of generating funds:
Income generating services 1,257,635
891,672
76,116
412,340
Fundraising expenses
48,997
348,315
728
36,801
Total costs of generating
funds
1,306,632
1,239,987
76,844
449,141
All costs of generating funds expenditure are unrestricted in nature.
Expenditure on Union activities:
RAG
-
-
-
3,825
Pension Scheme Service
costs
-
35,414
-
96,087
Support Services
- 1,008,546
86,092
944,635
Representation & Member
Services
-
730,225
62,334
33,083
Membership Relations
-
118,867
10,147
(1,395)
Student Activities
-
116,301
9,928
354,177
Total expenditure on Union
Activities
-
2,009,353
168,501
1,430,412
Total resources expended
1,306,632
3,249,340
245,345
1,879,553		 Cost of
sales
Staff
costs Depreciation
Support
costs
2021
£
2021
£
2021
£
2021
£
Costs of generating funds:
Income generating services 1,257,635
891,672
76,116
412,340
Fundraising expenses
48,997
348,315
728
36,801
Total costs of generating
funds
1,306,632
1,239,987
76,844
449,141
All costs of generating funds expenditure are unrestricted in nature.
Expenditure on Union activities:
RAG
-
-
-
3,825
Pension Scheme Service
costs
-
35,414
-
96,087
Support Services
- 1,008,546
86,092
944,635
Representation & Member
Services
-
730,225
62,334
33,083
Membership Relations
-
118,867
10,147
(1,395)
Student Activities
-
116,301
9,928
354,177
Total expenditure on Union
Activities
-
2,009,353
168,501
1,430,412
Total resources expended
1,306,632
3,249,340
245,345
1,879,553		 Cost of
sales
Staff
costs Depreciation
Support
costs
2021
£
2021
£
2021
£
2021
£
Costs of generating funds:
Income generating services 1,257,635
891,672
76,116
412,340
Fundraising expenses
48,997
348,315
728
36,801
Total costs of generating
funds
1,306,632
1,239,987
76,844
449,141
All costs of generating funds expenditure are unrestricted in nature.
Expenditure on Union activities:
RAG
-
-
-
3,825
Pension Scheme Service
costs
-
35,414
-
96,087
Support Services
- 1,008,546
86,092
944,635
Representation & Member
Services
-
730,225
62,334
33,083
Membership Relations
-
118,867
10,147
(1,395)
Student Activities
-
116,301
9,928
354,177
Total expenditure on Union
Activities
-
2,009,353
168,501
1,430,412
Total resources expended
1,306,632
3,249,340
245,345
1,879,553		 Cost of
sales
Staff
costs Depreciation
Support
costs
2021
£
2021
£
2021
£
2021
£
Costs of generating funds:
Income generating services 1,257,635
891,672
76,116
412,340
Fundraising expenses
48,997
348,315
728
36,801
Total costs of generating
funds
1,306,632
1,239,987
76,844
449,141
All costs of generating funds expenditure are unrestricted in nature.
Expenditure on Union activities:
RAG
-
-
-
3,825
Pension Scheme Service
costs
-
35,414
-
96,087
Support Services
- 1,008,546
86,092
944,635
Representation & Member
Services
-
730,225
62,334
33,083
Membership Relations
-
118,867
10,147
(1,395)
Student Activities
-
116,301
9,928
354,177
Total expenditure on Union
Activities
-
2,009,353
168,501
1,430,412
Total resources expended
1,306,632
3,249,340
245,345
1,879,553		 Cost of
sales
Staff
costs Depreciation
Support
costs
2021
£
2021
£
2021
£
2021
£
Costs of generating funds:
Income generating services 1,257,635
891,672
76,116
412,340
Fundraising expenses
48,997
348,315
728
36,801
Total costs of generating
funds
1,306,632
1,239,987
76,844
449,141
All costs of generating funds expenditure are unrestricted in nature.
Expenditure on Union activities:
RAG
-
-
-
3,825
Pension Scheme Service
costs
-
35,414
-
96,087
Support Services
- 1,008,546
86,092
944,635
Representation & Member
Services
-
730,225
62,334
33,083
Membership Relations
-
118,867
10,147
(1,395)
Student Activities
-
116,301
9,928
354,177
Total expenditure on Union
Activities
-
2,009,353
168,501
1,430,412
Total resources expended
1,306,632
3,249,340
245,345
1,879,553
Total
2021
£
2,637,763
434,841		 Total
2020
£
3,407,932
820,683
3,072,604
3,825
131,501
2,039,273
825,642
127,619
480,406		 4,228,615
35,792
124,427
1,802,781
934,051
177,584
1,111,337

-		 2,009,353 3,608,266 4,185,972
1,306,632 3,249,340 245,345
1,879,553		 6,680,870 8,414,587

Union activities summary by fund type

RAG
Pension Scheme Service costs
Support Services
Representation & Member Services
Membership Relations
Student Activities
Total
Total 2020		 Restricted
funds
2021
£
-
-
-
-
-
104,626
104,626
259,753		 Unrestricted
funds
2021
£
3,825
131,501
2,039,273
825,642
127,619
375,780
3,503,640
3,926,219		 Total
expenditure
2021
£
3,825
131,501
2,039,273
825,642
127,619
480,406
3,608,266
4,185,972		 Total
expenditure
2020
£
35,792
124,427
1,802,781
934,051
177,584
1,111,337
4,185,972

29

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

6. Net resources expended

Net resources expended
2021 2020
£ £
Depreciation of tangible fixed assets 245,345 251,921
Loss on disposal of tangible fixed assets - 2,845
Gain on disposal of subsidiary 332,015 -
Auditor's remuneration - audit 14,000 16,500
Auditor's remuneration - non audit - 2,500
Pension costs (scheme interest) 96,087 104,643
Pension costs (change in discount rate) 56,939 92,575
Pension costs (extension of the contribution schedule) - 1,678,042

During the period, Trustees received reimbursement of expenses totalling £nil (2020 - £250) in relation to their roles as Trustees.

7. Staff costs

Staff costs were as follows:

Wages and salaries
Social security costs
Pension costs (defined contribution schemes)		 2021
£
2,916,433
199,326
133,581		 2020
£
3,563,535
211,937
192,201
3,249,340 3,967,673

Included within staff costs are termination payments totalling £25,300 (2020 - £86,520) which were funded from unrestricted funds.

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

Income generating services
Support services
Member relations
Student activities
Representation & member services
Campus nursery
The number of higher paid employees was:
In the band £70,001 - £80,000
In the band £80,001 - £90,000
In the band £90,001 - £100,000		 2021
No.
148
33
6
3
25
18
233
2021
No.
1
-
1		 2020
No.
191
41
7
23
24
36
322
2020
No.
-
1
-

Key management personnel

The key management personnel of the Union comprise the trustees and the senior management team as listed on page 2. The total amount of employee benefits (including pension contributions national insurance contributions) received by key management personnel for their services to the union was £545,430 (2020 - £543,562) (this includes payment of salaries to executive committee members and sabbatical student officers as detailed in Note 18).

30

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

8. Tangible fixed assets

FreeholdLand
& Buildings
Group
£
Cost or valuation
At 1 August 2020
3,689,484
Additions
808,113
Disposals
-
At 31 July 2021
4,497,597
Depreciation
At 1 August 2020
865,668
Charge for the period
156,101
Eliminated on disposal
-
At 31 July 2021
1,021,769
Net book value
At 31 July 2021
3,475,828
At 31 July 2020
2,823,816		 Fixtures,
fittings &
equipment
£
698,055
46,005
(14,563)
729,497
562,906
89,244
(1,578)
650,572
78,925
135,149		 Total
£
4,387,539
854,118
(14,563)
5,227,094
1,428,574
245,345
(1,578)
1,672,341
3,554,753
2,958,965

Freehold Land & Buildings are included in the Balance Sheet at valuation (see note 1.8 and 1.18). The carrying amount that would have been recognised had the assets been carried under the cost model for Freehold Land & Buildings at the period end date is £301,332 (2020 - £391,267).

Included within Freehold Land & Buildings is Land which is not depreciated and is valued at £2,432,549 (2020 - £2,432,549).

Freehold Land
& Buildings
Union
£
Cost or valuation
At 1 August 2020
3,689,484
Additions
808,113
Disposals
-
At 31 July 2021
4,497,597
Depreciation
At 1 August 2020
865,668
Charge for the period
156,101
Eliminated on disposal
-
At 31 July 2021
1,021,769
Net book value
At 31 July 2021
3,475,828
At 31 July 2020
2,913,751		 Fixtures,
fittings &
equipment
£
683,492
46,005
-
729,497
562,056
68,516
-
650,572
78,925
195,867		 Total
£
4,372,976
854,118
-
5,227,094
1,427,724
244,617
-
1,672,341
3,554,753
3,109.618

31

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

9. Fixed asset investments

2021
£
Value at 1August 2020
-
Additions
-
Disposals
-
Reversal of impairment
-
Value at 31 July 2021
-
Company name
Country
Loughborough Student Services
Limited
England and Wales		 Group
Union
2020
2021
2020
£
£
£
-
20,001
-
-
-
1
-
(1)
-
-
-
20,000
-
20,000
20,001
Percentage
Shareholding
Description
100%
Trading activities for the
Union
Profit / (Loss)
£
Capital & Reserves
£
88
161,605
2021
£
-
-
-
-
-

10. Debtors

Trade debtors
Amounts owed by group undertakings
Amounts owed by related parties
Other debtors
Prepayments and accrued income		 Group
2020
£
50,826
-
3,142
75,325
63,594
192,887		 Union
2021
£
95,677
-
39,710
97,906
43,312		 2021
£
95,677
-
39,710
97,906
43,312		 2020
£
16,394
147,353
3,142
79,029
63,594
276,605 276,605 309,512

32

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

11. Creditors: Amounts falling due within one year

Loan
BBLS
Trade creditors
Amounts owed to group undertakings
Amounts due to related parties
Other taxation and social security
Other creditors
Accruals and deferred income
Defined benefit scheme deficit funding
liability		 Group
2020
£
2,629
71,703
-
57,742
76,639
5,581
213,258
150,761		 Union
2021
£
-
354,863
-
5,940
56,558
152,004
682,186
191,788		 2021
£
-
354,863
181,605
5,940
56,558
152,004
682,186
191,788
1,624,944		 2020
£
2,629
65,238
166,470
57,742
76,639
5,581
171,482
150,761
1,443,339 578,313 696,542

Included within other debtors is £5,264 (2020: other debtors £15,091) of net balances paid to third party Charities, being monies fundraised by the RAG department for local, national and international charities account. A separate bank account is in operation and overseen by the RAG Administrator.

Included within accruals and deferred income:

Deferred income at 1 August 2020
Resources deferred during the period
Resources released from previous periods		 Group Union
2021
£
67,671
13,052
(67,671)		 2020
£
763,385
67,671
(763,385)		 2021
£
27,438
13,052
(27,438)		 2020
£
763,385
27,438
(763,385)
27,438
13,052 67,671 13,052

Deferred income consists of grant funding received in advance.

33

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

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

Loan
BBLS
Defined benefit scheme deficit funding liability		 Group
2020
£
47,371
4,719,841
4,767,212		 Union
2021
£
-
4,578,895		 2021
£
-
4,578,895		 2020
£
47,371
4,719,841
4,578,895 4,578,895 4,767,212

Included within the above are amounts falling due as follows:

Between two and five years
Defined benefit scheme deficit funding liability
Loan
BBLS
More than 5 years
Defined benefit scheme deficit funding liability		 Group
2020
£
861,183
47,371
908,554
3,858,658		 Union
2021
£
957,869
-		 2021
£
957,869
-		 2020
£
861,183
47,371
908,554
957,869 957,869
3,621,026
3,621,026
2,298,724

There was no security over the Bounce Back Loan Scheme (BBLS) of £50,000 (2020: £50,000). The loan was repayable in annual instalments over five years. Interest was charged at 2.50% on this loan. The loan was repaid early in 2021.

34

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

13. Statement of funds current period

Designated funds
Capital fund
trading
activities
Capital fund
Charity
Revaluation reserve
Pension deficit
General funds
General Reserve
Trading activities
Total Unrestricted funds
Restricted funds
Other restricted grants
Athletic Union
Clubs & Societies
Total of funds		 Brought
Forward at
1 Aug
2020
Income Expenditure
Transfers
Gains &
losses
Carried
Forward at
31 July 2021
£
£
£
£
£
£
13,713
-
(13,713)
-
-
-
512,703
-
(244,617)
854,118
-
1,122,204
2,432,549
-
-
-
-
2,432,549
(4,870,601)
-
(96,087)
252,944
(56,939)
(4,770,683)
(1,911,636)
-
(354,417)
1,107,062
(56,939)
(1,215,930)
139,529
5,952,357
(5,785,921) (1,074,863)
-
(768,898)
219,964
409,746
(435,906)
(32,199)
-
161,605
359,493
6,362,103
(6,221,827) (1,107,062)
-
(607,293)
(1,552,143)
6,362,103
(6,576,244)
-
(56,939)
(1,823,223)
603
-
-
-
-
603
267,497
104,756
(72,010)
-
-
300,243
176,897
40,461
(32,616)
-
-
184,743
444,997
145,217
(104,626)
-
-
485,588
(1,107,146) 6,507,320
(6,680,870)
-
(56,939)
(1,337,635)

35

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

Description of funds

Designated funds:

Capital fund This represents the net book value of fixed assets (excluding land) held by Loughborough (Charity line) and the subsidiaries (trading activities line). Revaluation reserve This represents the net book value of land which was recognised at valuation in the 31/08/2018 accounts. Pension deficit This represents the discounted value of deficit contribution payments that Loughborough

Restricted funds:

Other restricted grants Grants received with restrictions on use imposed by the donor.

Campus scholarship Union Campus Scholarship scheme

Funds raised by the Athletic Union are recognised as restricted income and will be applied to the expenditure of the Athletic Union. Any unspent funds are carried forward at the end Athletic Union of the period and will be spent in future years. Funds raised by individual clubs and societies are recognised as restricted income and will be applied to the expenditure of that club or society. Any unspent funds are carried forward at the end of the period and will be spent in future years by the appropriate club Clubs & Societies or society.

Transfers between funds

£854,118 was transferred to the capital funds (designated) from the general reserves to reflect in-year tangible fixed asset additions.

£252,944 was transferred to pension deficit reserve (designated) from the general reserves reflect the value of pension deficit contribution payments made in the period.

£32,189 was transferred to general reserves from trading activities to reflect the in-year transfers of resources between the parent charity and its subsidiary undertakings.

36

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

14. Statement of funds prior period

Designated funds
Capital fund
trading
activities
Capital fund
Charity
Revaluation reserve
Pension deficit
General funds
General Reserve
Trading activities
Total Unrestricted funds
Restricted funds
Other restricted grants
Campus Scholarship
Athletic Union
Clubs & Societies
Total of funds		 Brought
Forward at
1 Sept
2019
Income Expenditure
Transfers
Gains &
losses
Carried
Forward at
31 July 2020
£
£
£
£
£
£
-
-
(850)
14,563
-
13,713
677,069
-
(253,916)
89,550
-
512,703
2,432,549
-
-
-
-
2,432,549
(3,307,670)
-
(253,916)
219,753
(1,678,042)
(4,870,601)
(198,052)
-
(254,766)
323,866
(1,678,042)
(1,911,636)
(9,313)
7,369,471
(6,975,593)
(245,037)
-
139,529
161,605
957,021
(819,833)
(78,829)
-
219,964
152,292
8,326,492
(7,795,426)
(323,866)
-
359,493
(45,760)
8,326,492
(8,154,834)
-
(1,678,042)
(1,552,143)
603
-
-
-
-
603
6,659
-
(6,659)
-
-
-
144,763
259,686
(136,952)
-
-
267,497
133,893
159,147
(116,142)
-
-
176,897
285,918
418,833
(259,753)
-
-
444,997
240,158 8,745,325
(8,414,587)
-
(1,678,042)
(1,107,146)

37

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

15. Analysis of net assets between funds

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year		 Restricted
funds
2021
£
-
485,588
-
-
485,588		 Unrestricted
funds
2021
£
3,554,753
644,258
(1,443,339)
(4,578,895)
(1,823,223)		 Total
funds
2021
£
3,554,753
1,129,846
(1,443,339)
(4,578,895)
(1,337,635)		 Total
funds
2020
£
2,958,965
1,279,414
(578,313)
(4,767,212)
(1,107,146)

16. Capital commitments

At 31 July 2021 the Group and Union had capital commitments of £178,645 (2020: £141,435).

17. Pension commitments

The Union is a member of the NUSPS defined contribution (money purchase) pension scheme. The total contributions paid into the scheme by the Union in respect of eligible employees for the period ended 31 July 2021 amounted to £252,945 (2020 - £172,417).

whose

in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual.

The most recent Valuation of the Scheme was carried out as at 30 June 2019 and showed that the market was £119,103,000 with these assets representing 32% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £140,907,000.

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

The following assumptions applied at 30 June 2019:

The 2019 Valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 14 years and 10 months and increased by 12.6% from 1 October 2021 and by a further 5% each subsequent year. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. Surpluses or deficits which arise at future valuations will future contribution commitment. In addition to the above contributions, the .

The scheme is closed to future accrual.

38

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

17. Pension commitments (continued)

PRESENT VALUES OF PROVISION
2021 2020
Present value of provision
£		 £
Pension liability due in a year
191,788		 150,761
Pension liability due after a year
4,578,895		 4,719,841
Present value of provision
4,770,683		 4,870,602
Reconciliation of opening and closing provisions
Period Ending
31 July 2021
£
Provision at start of period 4,870,602
Unwinding of the discount factor (interest expense) 96,087
Deficit contribution paid (252,945)
Remeasurements
change of discount factor		 56,939
Provision at end ofperiod 4,770,683
Statement of Financial Activities impact
Period Ending
31 July 2021
£
Interest expense 96,087
Remeasurements
change of discount factor		 56,939
Costs recognised in income and expenditure account 153,026

39

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

18. Related party transactions

During the year Loughborough Students Union had the following related party transactions:

----- Start of picture text -----
2021 2020
£ £
Grants and income received from Loughborough University 2,168,747 1,736,923
-
Amounts advanced by Loughborough University 412,587
Nursery Ltd received from Imago @ Loughborough Limited, a
-
company owned and controlled by Loughborough University 345,000
Payment of salaries to executive committee members and
sabbatical student officers 215,712 212,312
Reimbursed expenses to executive committee members and
sabbatical student officers 1,130 2,116
- 250
Payments to Loughborough University 224,105 235,931
Income from Loughborough College 30,000 60,912
Amounts owed to Loughborough University 5,646 57,742
Amounts owed from Loughborough University 39,710 3,142
- -
Amounts owed from Loughborough College
-
Amounts owed to Loughborough College 2,693
-
Loan repayments to Loughborough University 11,835
Sales made to Loughborough Student Services Limited 13,304 140,410
Gift aid payable from Loughborough Student Services Limited 88 3,097
Income received by LSU on behalf of Loughborough Student
Services Limited 37,434 190,957
Amounts owed to Loughborough Student Services Limited 181,605 146,469
Nursery LTD 356,801 674,007
Management and other recharges made to Loughborough
20,004 61,169
Union Campus Nursery LTD 594,198 590,921
-
Nursery LTD 73,137
Amounts owed to LSU - 144,256
Donations from trustees with no conditions attached - 5,000
----- End of picture text -----

19.

On 1 February 2021 The Union disposed of its controlling shareholder interest in Loughborough Students' Campus Nursery LTD, the consideration is based on an agreed upon independent valuation. The surplus recognised on the disposal was £332,015 and sale proceeds were £345,000.

In the results of the group, the revenue associated with the subsidiary was £395,738 (2020: £813,514) and a net loss of £26,248 (2020: net profit of £72,072

20. Subsequent Events

In July 2022 the Union entered into a sale and leaseback arrangement with Loughborough University of its freehold interest , the consideration is based on an independent valuation. The sales price is £3,750,000, and rent of £300,000 per annum is initially payable under the 50 year leasing agreement.

40