Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..39 BST (UTC +1) 0 111 P 1143 Registered number: 12031028 Charity numbers: 1183837 & SC049546 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..40 BST (UTC +1) 0 111 P 2143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) CONTENTS Page Roference and administralive details of tho Company. its Trustees and advisers Trustees, report Indepeiideiit auditor's report on the financial statsments 3-16 17-20 Consolidated statement of financial activities 21 Consolidatod balanca sheet Company balance sheet Consolidated statement of cash flows 23 24 Notes to th8 financial statements 25-41 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..42 BST (UTC +1) 0 111 P 3143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021 Trustees A Blake. Extemal Trustee and Chair A Cameron. Student Trustee {appointed 1 August 2020, resigned 13 July 20211 I Cheyne. Officer Trustee (appointed 1 Augusl 20201 S Hanley, Student Trustee lappDinted 1 Decem￿r 20201 J James, Student Trustee lappoinled 1 August 20201 S Jones, Officer Trustee (appointed 1 August 20201 A Lane. Extemal TNslee {resigned 19 March 20211 J Paisley. Student Trustee M Porterfield, Officer Tfu51ee (appointed 1 August 20201 M Price. External Trustee B Tarling, Student Trustee (appointed 1 August 2020, resigned 7 January 20211 C Wallace. Student Trustee Company registered number 12031028 Charity registored numbers 1183837 and SC049546 Registered office PO BOX 397 Walton Hall Milton Keynes Buckinghamshire MK7 6BE Company secretary Aison Lunn Chief executive officer Rob Avann Indapondent auditor James Cowper Kreston Chartered Accountants and Statutory Auditor 2 Chawley Park Cumnor Hill Oxford Oxfordshire OX2 YGG Bankers National Westminster Bank PLC 501 Silbury Boulevard Milton Keynes Page 1 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..43 BST (UTC +1) 0 111 P 4143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS {CONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Solicitors Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR Page 2 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..45 BST (UTC +1) 0 111 P 5143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2021 The Trustees present their annual report together wlh the audited financial ststemenls for the 1 August 2020 to 31 July 2021. The Annual Report serves the purposes of both a Trustees. report and a directors, report under company law. The Trustees confim that the Annual Report and consolidated financial statements of the charitable company comply Mqth the current stalulory requirements. the requirements of the charitable compan¥s governing document and the provisions of the Statement of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance the Financial Rewrting Standard applicable in the UK and RepubliG of Ireland {FRS1021 leffeGtive 1 January 2019). Since the group and the Company qualify as small under Section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulation5 2013 has been omitted. Objectives and activities Summary of objectives The Association's purpose is the advancement of education of studenls at The Open University for the public benefit. Our charitable objects are= Defending the prinaples of equal opportunity and of open access to the University regardless of academic qualifications or financial cireumstanos Promoting the interest5 and welfare of students and representing and supporting them during their studies Acting as the recognised, representative channel btheen OU students, the University and extemal bodies Assettng the right of all students to be heard and acknowledged by the University Providing sttial, cuttural and recreational activities for the personal development of OU students. In setting objectives and planning for activitie5. the Trustees have given due consideration to general guidark published by the Charity Commission relating to public benefit Aims Our primary aims. in line Mlth our charitable obJ"ects, are to defend the principles of equal opportunity and open access lo OU study and to improve the quality of the student experience for all those who study with The Open University. We believe that Open Universty students have a unique and distinct contribution to make toward the development of the University and its ability to fully meet the aspirations of its students. We worf( to represent Ihe student voice through both the University's fomial wvemance structures and through partnership working with University staff across the breadth of University services that impact on the quality of the student experience. We a150 believe that students can provide excellent peer support both in direct relation to the study goa15 of indNidual students arKI in facilitating the development of a vibrant student community. Central lo our aims. objectives and activities is our work to help the University further its mission to be open to people. and in particular to offer the prospect of higher education lo those members of the public who may otherwse be among the least likely to have that opportunity- We have our own commitment to work to ensure access to OU study for the wdest possible spectrum of the public and further lo work to ensure that all those who register as students have the necessary support lo enable them to succeed. Page 3 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..46 BST (UTC +1) 0 111 P 6143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Objectives and activities (continued) Main objectives for the year We are immensely proud of our staff, our volunteers and our brilliant OU community for rising to the challenges presented by the ongoing pandemic. adapting and evolmng as we worked together to migrate all of our face-tO- face activities online. We have also forged ahead wrth our strategic plan, making signfficant progress towards our goals. During 2020-21. our online activities have grown and developed further to provide a wider variety and a greater number of opportunities for students to connect with each other online. Our Studenl Community team has facilitated over 100 online events including wellbeing sessions. bingo. coffee momings. book groups. film nights and quizzes, as well as training student volunteers to facilitate sessions. using a variety of online platforms efficienuy and safely. We are a150 proud of how our Societies have embedded new Wa￿ of working and we have 5UPPOrted them with funding for new websites. with their financial accounts and training for their volunteers. The number of Clubs we support has also increased signfficantly in the last year and there are now 75 clubs offering opporiunilies for students who share similar interests and hobbies to come together. The number of students registered with Clubs and Societies has increased during the year, as has membership of the Black and Minorty Ethnic IBAME}, Disabled Students Group {DSGI and OU Pride Student Groups. We saw a significant increase in student numbers participating in our Freshers Fortnights, feedback from which highlighted how valuable these are to Studerrt5 both th¢)5e embarking on study with the OU for the first time and those retuming to study after a break. One student commented.. "I found the sessions I went to very informative. The range of things available to access was varied and diverse which I think attracted a wide range of people. Doing Freshers this week has made me realise. as a new student to Open University (starting Feb 2021). that the social aspect al the Open University of students is vast thought leaming with the OU would be quile isolating but aclually the social aspect look me by surprise and it almost feels a doser communily than that of a red brick uni" A further highlight of the year was working with our fantastic University Challenge team. They were great ambassadors for OU students and they were watched by nearly three million people on BBC2. Directors of our trading subsidiary. OUSA (Services} Limited, in conjunction with the Association's Trustees took the difficult decision al the end of last year to cease trading as a separate entity. The trading restrictions associated Mqth the first pandemic lockdown had compounded an already challenging financial position for the subsidiary. A streamlined trading activity has however conts.nued wthin the Association, wrth its perfomiance being monitored by a newly established working group. This is however another highlight of the year as despite all trading being online, the finanaal results have exC￿ded expeclations, achieving a small profft after covering all a559ciated operating cos15 a5 well as contributing lo ASSo￿allon overheads that have supported the operation. OU Students, their fiiends and families clea￿Y have a strong appetite for OU branded merchandise. contributing to a student's sense of belonging to their University as well as helping them to mark and celebrate their achievements throughout their student joumey. Fdlowqng a review of our culture in 2019120, we have taken forbvard an extemal review of our govemance. engaging a reputable consultancy service to provide an impartial assessment and recommendations for improvement. Trustees, having approved the implernenlation plan at their meeting in July. will now consult with stakeholders on the finer details of a governance structure that aims to streamline decision making and embed our values and expectations amongst all volunteers and staff. Page 4 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..47 BST (UTC +1) 0 111 P 7143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Objectives and activities (continued) The working group set up to progress our equality, diversity and inclusion IEDII agenda is making progress across the pledges made followqng our Black Lives Matter statement. The statement, which can be viewed at www_oustudents_comlour-statement-on-black-lives-rnatter, explains our commitment to call out and take action against racism, prejudice and any form of discrimination wthin our organisation or on any of our managed platforms., lo review our representation channels and improve our representation of Black students. The statement has therefr)re infomed the Association's EDI action plan. Highlights of this group's work includes nning consultations with Black students {a separate consultation with Asian students is about lo be launched) to enable us to better understand barriers to engagemenl and how we might better support and represent these students. With help from colleagues, we have also introduced Equality Impact Assessments into event planning and policy making. We held our first EDI conference in May. The aim of the Conference was to better equip our volunteers to support a diverse range of students. ensuring the As50ciatlOll 15 a place for all OU 51udent5. The conferen￿ ran for two afternoons with the first covering presentation5 from experts discussing the importance of pronouns. the Importan￿ of considering ac￿SSIbIlitY and also the degree awarding gap at the OU. The second afternoon was designed as a WOTkshop and Q&A panel based on the learning the volunteers were exposed lo the previous aftemoon. From the anonyrnous pledges delegates were encouraged to post during the Conference, it was clear that the event had raised consciousness of the issues and left volunteers wth some dear actions they could put in place to help ensure our members with protected characteristics feel induded in and represented by their students Association. We intend to build on the success of this event. holding fvrther events. including training workshops for volunteers and students throughout the year. Ahead of the local elections in May 2021, we developed and published Scottish and Welsh manifestos shattng these with c.450 Scottish Parliament candidates and c.260 Welsh Senedd Election candidates, respeclivety. We also created a mechanism via which students in Wales and Scotland could email these to their local and regional candidates. encouraging them to wl the distance learning agenda at the heart of their campaigns. We are always keen to leam from and share best practice and experiences with other similar organisalions. Our Policy and Public Affairs Manager. supported by our President and Chief Executive. has identified other providers who may be interested in foming an international netwoth of distance leaming student organisations. With our Canadian peers, Alhabasca University StLKlents' Union and Athabasca University Graduate Students, Union, a major provider of distance education, significant progres5 has been made wth the signing of Memorandum of Understanding between the parties with the intention of working in partnership to bring together organisations a shared interest and an intention to explore how a formal intemational network might work in practice. Another key focus this year has ￿een preparing lo launch a pilot individual representation service, whith will support students subject to the University's academic complaints and disciplinary processes. The service went live on 9 August. We are grateful to the University for supporting Ihis 18 month pilot running to the end of October 20?2 by providing fixed term funding for 2 ¢2seworker and working together with us in pathership to ensure a smooth and successful implementation. All of this and more has been achieved in a year like no other. wth all staff and volunteers required lo work remotely since March 2020. adhersng lo national and Universty restrictions due to the Covid 19 pandemic. Whilst Trustees and Senior Managers have placed greater importance and allocated increased resource to supporting wellbeing and equipping staff for homeworking. we are immensely proud of how all of our people have come together to 5UPPOrt each other and for the display of remarkable resilience in continuing to deliver throughout. Page 5 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..49 BST (UTC +1) 0 111 P 8143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Objectives and activities (continued) Strategy for Achieving Main Objectives As detailed above, we are now at the end of the second year of our four year strategic plan to 2022123 and this is available in full on our website_ We also publish the performance management information and UFxJates on implementation as part of our papers to our Central ExecLrtive Committee, alongside the minutes of the Board of Trustees where performance and implementation 1$ kept under review. A mid-point review of our strategic plan will be undertaken earfy in 2021-22. Significant Activities A Comprehensive summary of our major activities and achievements during the year can be found in our Annual Report to the Open University'5 Council, which can be viewed on our website www.oustudents.com under the heading 'OU Students Association report to OU Council,. Volunteers We are proud to be an organisation for students, led by students. Our student volunteers range in their roles, responsibilities, time commitment and duration but they are all a ftjndamental part of our achievements and make a major contribution to all that we do. We pay reasonable expenses to volunteers to enable them to fvlfil theiw roles. We have seen a significant year on year growth in the nLtmber of active volunteers due to improvements made to the recruitment process and the introduction of flexible micro volunteering opportunities_ These have enabled those who may not have Voluntee￿ before to get involved in one-off or short term tasks, projects or events. In the 3 months to May 2021, there were 343 active volunteers, compared with 242 in the 3 months to May 2020. Of the 162 applicants for roles in the 3 months lo May 2021, 89% wefe volunteering for the first time. The President and Deputy President were employees of the Association during the year. However. they are ￿t paid for their dutses as Trustees and continue to perfom) Tnjstee duties on a voluntary basis. We are incredibly proud to hold the Investing in Volunteer5 quality standard. This recognises our commitment to induction, ongoing training and support for our volunteers as well as the high level of enrichment this provides for students who choose to take up volunteering opportunities. We were pleased to hold an online event in July 2021 to recognise and celebrate the invaluable contribution all of our volunteers make to achieving our mission 'To make a positive difference for all OU students". Achievements and performance Charitable Activities We are proud to be a key part of the Open University community and we focus most of our endeavours on activities that can best be summarised as building a vibrant student community and representing the student voice. which foms the basis of our mission statement. This benefits our student members during theirjourneys a5 Student5 of the University and in tum, our volunteers positively improve the experiences of their peers and those that wll follow them through the University in subsequent years. Page 6 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..9) BST (UTC +1) 0 111 P 9143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Achievements and performance {continued} There is also a considerable amount of personal and professional development that all of our student volunteers gain from their involvement in our work. whith will benefit them in their future lives and their own communities as a 5ignffiGant publiG benefrt. We are proud defenders of the original mission of ts Open University to be open to people. places. methods and ideas. Factors relevant to the achievement of our objectives The OU Students Association is heavily reliant on the willingness of student volunteers lo give their time and commitment lo the organisation and in lum. we have to focus our efforts to attract, train and retain students willing and able to make a signrficant contribution to our work. We expect that this requirement may become significantly more challenging as the higher education sector and our student population continues to evolve. We endeavour to maintain a healthy and constsuclive worf(ing relationship wth the University and with other extemal organisatsons that share similar priorities and objectives. We are proud members of both the National Council of Voluntary Organisations {NCVOI and the Charity Finance Group ICFGI. From June 2021, we have a150 subscribed to a political monitoring service, provided by DeHavilland. This supports our policy and public affairs agenda by alerting us to the latest polrtical development5 that may directly impact the higher education sector andlor distanGe leaming. We are not members of the National Union of Students INUSI. but we do try to maintain a relationship and dialogue with their leadership on matters of mutual interest. Financial review Principal Funding Source The Open Universty is the main source of fijnding for the charity, by way of a subvention which is negotiated on an annual basis. The process of agreeing the subvention is sel out in the OU-OU Students Association Relationship Agreement. The financial slatemenls are provided to the University and are considered by the Universiws Finance Committee and goveming coun￿1. Financial Review The Charity's total income for the year was £2.110,16112020.. £2.109,1281 with a total expenditure of £1.610,835 {2020.. £1.507,9311 for the year. Income has therefcfe exceeded expenditure by £499,32612020= net income of £601,197). But for the exceptional credrt in 2019-20, relating to the pension deficit recovery provision15ee Note 111, expenditure in 2020-21 would have been signfficantly below the prior year total. This is because, due to Covid 19, all actiwty remained online for the duration of 2020-21. Our 2020-21 budget plan assumed that from January 2021, pre-covid activity would resume. However, all meetings were conducted and student services provwjed remotely throughout the year due to on%oing pandemic reslriclions and so this resulted in an in-year surplus that exceeded expectations. The savings generated by moving activity online, with great success in terms of increasing awareness, student engagement in Association activities and wdening the reach of the opportunities we provide, will be reallocated to continue to drive our strategic plan fopNard, to reform our govemance structure and processes, to deliver Conference. as well as provide some specific actsvit'es andl¢x events to celebrate what will be the Association's 50th anniversary. Page 7 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..$2 8ST (UTC +1) 0 111 P 10M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Reserves Policy Trustees review their reserves policy annually and rnonitor, throughout the year as part of the financtal reporting Pro￿sses, the level of unrestricted funds that are freely available lo spend on any of the Association's charitable purposes. The aim of the policy is to ensure that charitable funds are spent on charitable purposes within a reasonable perFod of receipt, whilst ensuring the level of reserves is sufficient to safeguard finanaal stability in the event of a significant adverse effect on income or material unexpected expenditure. Unrestricted funds are defined as the surplus rernaining of the Association's income, comprising donations without restrictions (including the University block grant) or self-generated linduding trading income. TOTUM card commission, charges for seNicesl, after accounting for all associated expenditure. They exclude funds that could only be realised by disposing of fixed assets. Designated funds are part of unrestricted fund5 vthich tru5tee5 have eaTmaTked for a parttcular project or purpose, wqthout restricting Of committing the funds legally. The designation may be cancelled by the trustees rf they later decide that the Association should not proceed or continue wth the purpose or project for which funds were designated. Trustees have agreed that the minimum level of unrestricted reserves should be three months of o)re operating costs. and that the target level be set at six months of operating costs. For 2021122, the minimum level for the unrestricted reserve is £466.000. As at 31 July 2021, the group'5 total unrestricted fund 15 £1.071,961 after setting off the provision for pension deficit recovery (see note 17 and 231, as well as the net book value of fixed assets recorded at 31 July 2021, being £4.814 (see note 13}. Funds freely available are £828,961, after designation of a total of £243,000 earmarked for the 2022 Conference and Association 50th Anniversary activities. to fund implementation of the recommendations arising from the Governance Review and to fund other fixed tenm costs to support prcxJresston of our strategic objectives. In detem)ining an approkyiate level of reseNe. the Association has considered the following factors.. The Association's critical core services for students. The level of risk in depending on the University for a continued core grant level of around £1.9m. increased annually to at least cover inflationary pressures. Flexibility to allow the Association to take advantage of strategic development opportunities and plan for ture groW(h. Uncertainty over potential liabilities in respect of our participation in the Universibes Superannuation Scheme and future increases in the rate of ernployer contributions. The level of risk from our other income source5. In particular commission earned on the sale of the NUS TOTUM card continue5 lo dedine, partly affected by the pandemic. but also free disCQUnt option5 Qffered by compelitOTS. The level of risk of unforeseen operating costs. Provision for the costs of closure in the event of institutional failure. Page 8 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..$3 BST (UTC +1) 0 111 P 11M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Material Investments Policy The Association's funding needs are largew met by subvention funding negotiated WI￿ the University on an annual basis. Therefore, we do not rely on a relum ￿ reserves lo fund our operations. Suiplus funds are currenuy deposited in an instant access deposit account with Nalwest, eaming negligible interest. With the rate of in)lalion exceeding bank interest eamed. the real value of our reserves is declining. Trustees therefore established a wothing group to review our investment policy. After considering the working group's proposals, we agreed the following objectives: The Open University Students Association seeks to produce the best financial retum that can be generated from low risk investments. The bulk of funds wll be held as ca5hlcash equivalents, lo ensure sufficient funds are readily available to meet unanticipated cashflow requirements. If supported by cashflow foreca51s, the As5o￿a￿On may invest in longer term deposits or fijnds offering a higher yield, wth the aim of generating a return in excess of inflation, over the longer temi, to preserve the overall value of the asset. The Board of Trustees, Investment Working Group will researth available options, referring any recommendats'ons to the Board. We wll alway5 ensure thal any inveslment deci5i0n5 are con5iStent wtth the Association'5 Wll1551(In. Vision and value5 and 51JPPOrt the furtherance of our charitable objectives and strategic aims. Going Concern After making appropriate enquiries, the Trustees have a reasonable expeclats'on that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concem basis can be found in the Accounting Policies. The Association's funding is not impacted by the pandemic and the University has confirmed an allocation for 2021-22 in line wlh the grant awarded in 2020-21. The Association's revenue eamed from merchandI￿ng (currently via its online store) has more than covered its direct costs, contributing to the Association's overheads. With the resumption of graduab.on ceremonies planned from Spring 2022, revenue is expected to increase in the next 12 months. Structure. govemance and management Constitution The Open University Students Association is registered as a charitable company limited by guarantee. registered with Companies House 112031028), with the Charity Commission (England & Wales), 111838371 and with the Office of the Scottish Charity Regulalor IOSCR}, ISC049546). Nature of Governing Docurnent We are a student union within the meaning of the 1994 Education Act and are therefore subject to the provisions of that legislation as well as to the requirements of company law and our charrtable regislralion. We are charitable company limited by guarantee and are therefore governed by our Articles of Associats"on, below which a sel of Bye Laws detail much of the day to day operats'on of the charity. Our governing documents are publicly available on our website www.oustudents.com. Page 9 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..$4 BST (UTC +1) 0 111 P 12143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Structure, govemance and management {continuedl Method of Appointment or Election of Trustees During the year there were 12 places on the OU Students Association Board of Trustees. The majority of the Pla￿s19 of the 121 are reserved for current OU students who are elected to the Board. The fiJll comp)sition is as follows- Three are ex officio student members by virtue of their election to the Assoc¢ation Officer roles of President. Deputy President and Vice President Administration. These are known as Officer Trustees. There are 6 additional Student Trustees. who stand for election directly to the Board of Trustees. The final 3 places are for Extemal Trustees who are directly recruited via external advertisement to add certain skills or experience to the Board from their professional background5. The Board audits the skills required and these are sought through the open recruitment proce55. Applicants are interviewed by existing Trustees with the support of the Chief Executive before Prefe￿ed candidates are recommended to the rest of the Board and our Central Executive Commrttee for appointment via a 75% majority vole. External Trustees must not be members of the Association, nor hold any elected or paid posthon wthin it., neither shall such external Trustees hold any position, paid or unpaid, within the Open University- An External Tnjslee Cu￿entlY serves as the Chair of the Board. wth our President serving as the Deputy Chair. We currentty have 1 External Trustee vacancy and 2 vacancies for Student Tru5tee5 which have become vacant during the year. A recruitment exercise for a new Extemal Trustee is due to take place in Autumn 2021. The OU Students Association operates tenns of two years for elected FX>Sts. The year to 31 July 2021 was the first year of the current term. Elections for the Officer Trustee and Student Trustee positions for the 2022 10 2024 temi are due to take place in Februarylmarch 2022 wth the newly elected representatives taking office on 1 August 2022 for their trNfryear tem). Al Trustees are limited to serving a Ma￿muM of 8 years in total. in line with the guidance in the Charity Govemance Code. Policies adopted for the induction and training of Trustees Following election or app(xntmenl all Trustees participate in a comprehensive induction process which indudes a 1-2-1 wth the Chair of the Board- a meeting Mith our Chief Executive lo cover the wider organisalion, charitable objects. requirements of the Articles and sector gwd practice- a session wilh our strategy lead covering the organisational strategy, KPIS and strategic projects,. and finally a session with our Head of Finance and Resources covering the organisalion's finan￿$ and reseNes. In addition to this initial induction, we also arrange for briefing sessions to be delivered for Trustees from our extemal auditors and legal advisors. We nom)ally arrange for new Trustees to obseNe a meeting before joining the Board, where possible. Al Trustees are provided Mrith copies of the AJ1icles. the Bye4aws. Charity Commission guidance and the Charity Govemance Code. In addition, Trustees are able and encouraged to make use of the National Council of Voluntary Organisations {NCVOI's online training packages and events in addition to further resources from the Charity Finance Group. We are members of both organisalions. Page 10 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..56 BST (UTC +1) 0 111 P 13143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Structure, govemance and management {continuedl Pay policy for senior staff The OU Students Association has adopted the Open Universitys salary grades and annual pay review poliaes. All roles within the staff team are graded using the benchmarks provided by the Higher Education Roles Analysis {HERAI scheme. There are significant advantages in using a nationally negotiated scheme, which provides benchmarking across the sector and provides staff of both the University and the Students Association with straighttorward comparison of roles and responsibilitEs. In setting the salary grades of the senior managem￿1 roles the TNslees consider the objects and values of the OU Students Association. the local employment market, the appropriate salaries required lo attract and relain suitably skilled staff. average pay levels of equivalent staff in other Student Unions and similar charities, the propottonate level of the salaries relative to other grades within the staff team, affordability and sustainability of the charity and whether the pay level is appropriate. The Students Association also took these factors into account when Setting the salary level to be paÉd to the President and Deputy Pre51dent roles. During the year, there were six roles deemed to be the key management personnel of the OU Students Association= The Chair of the Board of Trustees (unpaid), the President and Deputy President from the elected student leadership team, and the Senior Leadership Team comprised of the Chief Executive and trKo Deputy Chief Executives until Apiil 2021, and then the Chief Executive. Director of Engagement and Director of Mernbet5hip Service5 from April 2021, following a re-slructUTirig. The sum of the salaries (inclusive of employer national insurance and pension contributions} relating to these five roles in the period was £250.627 (2020 £249.5981. Page 11 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..578ST (UTC +1) 0 111 P 14M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Structure, govemance and management {continuedl Organisational Structure and Decision Making The Board of Trustees are ultimately responsible for the governan￿ of the Students Association induding all matters relating to staffing. finance. governance and strategy_ However, in keeping wqth our peer organisations in the wider student movement we have not abandoned the principle of having a wider representation of sludenl views in all key policy decisions and ensuring that we are under the democtstic control of our membership. Therefore. the Central Exe¢xrtive Committee is the key body for considering. debating and approving our policy and it features representation from across our regions and nations, across the University's Faculties, our post holders with specific responsibilities for a set portfolio (the Ass(￿lation'S Officers) and our student member of the Open University's goveming Counctl. Al decision making in the Students Association is subject to record and scrutiny. Our Central Execullve Committee and the Board of Trustees are required to publish their minutes to the membership. The Central Executive Committee also publishes in advance all papers being considered at each of their meetings so that members can access these and feed into the discussions. Excepb"ons are made for genuinely confidential or sensitive matters, in both the minutes and the publishing of papers. The Board of Trustees delegates responsibility for Ihe day lo day management of the organisalion to the staff team under the direction of the Chief Executive. Such delegation include3 the management of Staffing and financial matters within the parameters agreed by the Trustees. We invite observers from the Central ExecLrtNe knmittee to ctjserve TTUStee meetings and obseNers from the Board of Trustees lo obseNe Central Executive Cornmittee meetings. This has been well re￿iVed and useful for all involved. In addition, the Chair of the Board also meets with both the Central Executive Committee and the staff team on a regular basis to keep in touch with their work and provide the opwrtunity for questions. The Board of Trustees currenuy has two suP￿COmMittees." Remuneration and Appointments. It also has a Safeguarding Panel. Followqng our recent governan￿ review, the Tru51ee5 wll be adding a new Finance, Risk and Resource5 sub-committee as of late 2021 which will subsume the work of the current Remuneration Committee. The Appointments Committee and Safyuarding Panel are planned to continue. Relationship to Wider Network of Students Unions At present we are not fomially affiliated to the National Union of Students {NUS}, but we do enjoy a relationship which enables our organisations to collaborate wheie it is of mutual benefit. This allows our students to access the TOTUM card for discounted purchases. In addition. we maintain relationships with other Student Unions where appropriale and relevant. induding for good practice visits and exchanging infom)ation Page 12 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..16..58BST (UTC +1) 0 111 P 15M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Structure, govemance and management {continuedl Related Party Transactions The Open University Students Educational Trust, also known as OUSET, is a separately registered charity {2851891SC0383001 with management and administration provided by the Association. It was set up by the students Association in 1982 to advance the education of the public by providing financial support lo Open University students who are disabled or in a condition of need, hardship or distress_ Some of the trustees are appointed by virtue of the positions they hold, or us&Y lo hold, in the Open University Students Association. This includes trKo Cu￿ent TNstees and our Chief Executive who acts as a Trustee of OUSET. We wort( to raise funds for OUSET and also provide the necessary administrative support for it to operate in retum for payment of a management charge. As a separate charity. OUSET has filed its own report and financial statements for the pefiod. We receive our operating funds in the form of a subvention from the Open University IOU) which is an exempt charity in England & Wales and a registered charity in Scotland SC038302. Under it5 Royal Charter the OU has duty to make provision for an independent students, organisation and under the 1994 Education Act the OU has a slatulory duty lo ensure that the Students Association operates in a fair and democratic manner and is held lo account for its ffinan￿s. The Students Association therefore works alongside the University in ensuring that the affairs of the Students Associats"on are properly conducted and that the educab.onal and welfare needs of members are mel. We provide an annual report lo the University Council and our financial statements are scrutinised by the Universivs Finance Committee. A relationship agreement bebNeen the Students Association and the University is in place and reviewed on an annual basis. For further information on transactions wth these related parties during the year, please refer to note 24. Risk Management The Trustees are aware that they have a duty to identsfy and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Risks are assessed in accordance with our policy and regulat1y reviewed. Our risk register identifies the followng principal risks.. The ongoing impact of the Covid-19 pandemic and implications for new ways of working. Reliance on The Open University for our core funding presents a threat to fulfilling our strategic objectives. Further increases to employer pension contribution rates to the USS pension scheme being unaffordable. The balance sheet provision for deficit recovery contributions lo the pension scheme reducing the reserve level below the minimum set by Trustees. Implications of political-legal changes. We have mitigating actions in place. as far as possible, for these and all other risks recorded in our risk register. We continue to scan the horizon for other potential risks. Page 13 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..(￿ BST (UTC +1) 0 111 P 16M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Plans for future periods 2022 sees our 50th anniversary! The year will see celebrations and change across the Association to future- proof the organisation for the next stage of ourjoumey. The govemance refomis wll the single largest area of change for the Association through the first half of 2021-22. Consultation with stakeholder groups on cyjr proposed governance reforms is underway as of August 2021 to infomi decisions, for example, on the size. the composition and the roles wthin each part of the proposed structure. Linked lo our governance reforms and Trustees, deasion lo place a real focus on living the Association's values, our CU￿Ure Working Group has been refreshed and is slart¢ng work lo develop and then embed new ways of woJ1(ing together that will support an enduring positive. kind and engaging cU￿ure. The aim is to then present the resulting revisions to our governing documents {Articles of Association and Bye- Laws) to Conference in January 2022 for approval. Conference wll again be online, building on the success of the 2020 Conference. We wll then be running the elections for the new posts and structures and then the irKluction and handover processes for the postholders who will take office as of 1 August 2022. We will conb.nue the implementation and delivery of our strategic plan, progressing projects currently underway, as well as embarking on other agreed projects. For example, now that we have established our Annual Membership Survey, one area of focus wll be lo create a process for an annual Se￿l¢e and activty review. This will enable us to assess, on an ongoing basis. the effectiveness and impact of our work and enable infomied d￿510￿ making on iesource allocationlprioritisation. The work completed in 2020-21 on mapping the student journey from registration through to graduation, wll now feed into our communications strategy to ensure our interactions meet student needs and expectations at the key stages of their study joumey. We will progress our work with the OU to fvrther the Student Voice Action Plan. developing shared prin￿pIeS for best practice for student engagement in OU and As￿CIatIon activities, helping to improve Olrtcomes for students and breaking down batriers to inclusion. Having launched in August 2021 our pilot individual representation service, we will continue to promote this service. developing it as we gain experience of the types and level of support required and in response to feedback. We wqll be looking to ensure quality evaluation of this service wth a view to potential continuation and mainstreaming into the future. The EDI working group is currently working on a strategy to further focus our areas of work to ensure that the Association fulfils its goal to be a truly inclusive organisation. We aim to fvrther devetop our work in Policy and Public Affairs and the potential international ne￿Ork. Our Covid Recovery Worffing Group continues to meet regularly to review the latest government and University guidan￿ to inform our own recovery planning. Our 2021-22 budget has been planned on the basis that much of our act¢vity will remain online as we now know that this means we reach and engage more of our members. enr¢ching the sludenl experience for more OU students. We are also planning to trial a hybrid approach to wothing. wth staff being partly office and partly home based. before making any firm deasions about our future ways of working. The wellbeing of our staff, volunteèrs and students remains our primary consideration in how and from where we decide to deliver our services going forward. These are just a small selection of some of the projects we're seeking to progress. There are many more plans for the forthcoming year induded at the rear of the Annual Report to the Open UnNersitys Council which can be accessed on our websrte at WWN.OUStuden*s.com. Page 14 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..018ST (UTC +1) 0 111 P 17M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Environmental Impact The Open University Students Association is committed to working towards environmental sustainability. We are proud to support The Open Universitys approaeh to environmental sustainability and we are CU￿entlY nsidering ways in which we can make a better contribution and engage with the wider dimate crisis. Environmental impact is a key consideration in planning OLtr operations and acb"vilies post-pandemic. Page 15 TransadiDn Ref. 28P2-XQ8W4ZRY 13 Oct2021 10..17..0388T (Lrrc +1) 0 111 P 1W43 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Statement of Trustees. responsibilities The Trustees (who are also the directors of the Cornpany for the purposes of company lawl are responsible for preparing the Trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements. the Trustees are required to.. select suitable accounting policFe5 and then apply them consi5tently,' observe the methods and principles of the Charities SORP {FRS 1021,. make judgments and accounting eslimales that are reasonable and prudent., state whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any material departures disclosed and explained in the financial statements.. prepare the finanaal statements on the going concem basis unless il is inappropriate to presume that the Group wll continue in business. The Tr¥Jstees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Companls transactions and disclose Mqth reasonable accuracy at any time the financial position of the Group and the Company and enable Ihem to ensure that the financial statements comply wth the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to auditor Each of the persons who are Trustees at the time when this Trustees. report is approved has confimied that: so far as that Trustee is aware, there is no relevant audit information of whith the charitable group's auditor is unaware, and that Trustee has taken all the Steps that ought to have been taken as a Trustee in order lo be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that infomialion. Auditor The auditor, James Cowper Kreslon, has indicated his willingness lo continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by.. S Jones, Officer Trustee Dale: 13 October 2021 Page 16 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..04 BST (UTC +1) 0 111 P IW43 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS ASSOCIATION Opinion We have audited the financial statements of The Open University Students Association (the 'parent charitable companll and its subsidiarie5 Ithe 'group'l for the year ended 31 July 2021 which comprise the Consolidated statement of finanGial aGtivilies, the GQll501idated balanGe sheet, the Gotnpany balan[￿ sheet, the GoThsolidat statement of cash ffows and the related notes, including a summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparatson is applicable law alld United lfjngdom Accounting Standards. including Finanaal 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= give a true and fair view of the slate of the Group's and of the parent charitable compan￿9 affairs as at 31 July 2021 and of the Group's incoming resources and application of resources, induding its income and expenditure for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordan￿ wth the requirements of the Companies Act 2006. Charities Act 2011, the Charities and Trustee Investment ISc#)landl Act 2005 and regulations 6 and 8 of the Charities Accounts {Scotland) Regulations 2006. Basis for opinion We conducted our audit in accordance with IntematiDnal Standards on Auditing IUKI IISAS IUKII and applicable law_ Our responsibilf(ies under those standards are fjJrther described in the Auditofs responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audil of the financial statements in the United Kingdom. including the Financial Reporting Council's Ethical Standard, we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the Work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable companls ability to continue as a going concem for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to ￿Ing concem are described in the relevant sections of this repc*t Page 17 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..aS BST (UTC +1) 0 111 P 20M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS ASSOCIATION {CONTINUEDI Other information The other information comprises the infomiation induded in the annual report other than the financial statements and our auditorfs report thereon. The Trustees are responsible for the other information ts)ntained within the annual report. opinion on the finanGial 5tatenients doe5 not Gover the other information and. except to the extent othetwse explicilly slated in our report. we do not express any fomi of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent wth the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be malerrally misstated. If we identrfy such material inconsistencies or apparent material misstatements. we are required to detemiine whether this gives rise lo a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we condude that there is a material misstatement of this other informats"on, we are required lo report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion. based on the wort undertaken in the course of the audit.. the infomiation given in the Trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Tru5tee5' report ha5 been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our kno￿edge and understanding of the charitable company and its environment obtained in the COUTse of the audit. we have not identified material misstatements in the Trustees. report. We have nothing to report in respect of the following matters in relation lo which Companies Acl 2006 and the Charities Accounts {Scotlandl Regulations 2006 las amended) require us to report lo you if, in our opinion= the parerrt charitable company has not kept adequate and sufficient accounting records. or returns adequate for our audit have not been received from branches not visited by us., or the parent chaiitable company financial statements are not in agreement wth the accounting records and retums.. or certain disclosures of Trustee5' remuneration specified by law are not made., or we have not re￿iVed all the information and explanats'ons we require for our audit- or the Trustees were not entitled to prepare the financial statements in accordance wth the small companies regime and take advantage of the small companies, exemptions in preparing the Trustee5' report and from the requirement to prepare a Strategic report. Rosponsibiliti8s of trustees As explained more fully in the trustees. responsibilities statement. the Trustees {who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statement5 and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees delerniine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the finanaal statements, the Trustees are responsible for assessing the Group's and the parent charitable companys abilty to continue as a going concem, disclosing, as applicable, matters related to going concem 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 realislic alternative but to do so. Page 18 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..078ST (UTC +1) 0 111 P 21M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS ASSOCIATION {CONTINUEDI Auditor's rosponsibilities for the audit of tha financial ststem6nis We have been appointed as auditor under section 4411 Ilcl of the Charities and Trustee Investment {Scotlandl Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effecl thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from material rnisslatement. whether due lo fraud Dr error, and to issue an auditorf5 report that incIL￿eS our opinion. Reasonable assurance is a high level of assuran￿. but is not a guarantee that an audit conducted in accordance wqth ISAS IUKI wll ahvay3 detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individualty or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Because of the inherent limitations of an audit, Ihefe is a risk that we will not detect all irregularities. including those leading to a material misstatement in the financial statements or non-compliance wth regulation. This risk increases the more that compliance with a law or regulats'on is removed from the events and transactions reflected in the financial statements. as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error. as fraud involves intentional concealment. forgery. collusion, omission or misrepresentation. The speGifiG procedures for this engagement that we designed and performed to deteGt material misstatements in respect of i￿egUlarl￿.e5, including fraud, were as follows.. Enquiry of management and those charged with governance around actual and polenlial litigation and claims- Enquiry of management and those charged with governan￿ lo identify any material instances of non- compliance wth laws and regulations.. Reviewng financial statement disclosures and testing to supporbng documentation to assess complian with applicable laws and regulations., Performing audit WOTk to address the risk of irregularities due lo management override of controls, including testing of joumal entries and other adjustments for appropriateness, evaluating the business rationale of signfficant transactions outside the nomial course of business and reviewng accounting estimates for evidence of bias. A further description of our responsibilities for the aLKlil of the financial statements is located on the Financial Reporting Council's website at.. This descnption foms part of our auditorfs report. Page 19 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..1W8ST (UTC +1) 0 111 P 22143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS ASSOCIATION {CONTINUEDI Use of our report This report is made solely to the charitable companls members. as a body. in aC￿rdance with Chapter 3 of Part 16 of the Companies Act 2006. and lo the charitable companls trL+Stees, as a body, Part 4 of the Chartlies (AcGount5 and Reports) Regulations 2008 and regulation 10 of the Charitie5 AGGounts Iscotlandl Regulations 2006. Our audit work has been undertaken so that 'we might stale to the charitable companVs members those matters we are required lo slate to them in an auditor's report and for no other PUTwse. To the fulle51 extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and its members. as a body, for our audit work. for this report, or for the opinions we have fomied. M(0 Fkr.gll Michael Farwell MA FCA DChA (senior Statutory auditor) for and on behalf of James Cowper Kreston Chartered Accountants and Statutory Auditor 2 Chawley Park Cumnor Hill Oxford Oxfordshire OX2 9GG Date= 1411012021 Page 20 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..10 BST (UTC +1) 0 111 P 23143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) CONSOLIDATED STATEMENT OF FINANC￿ ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Note Income from: Donations and legacies Charitable activities Other trading activibes Investments 1,963.200 77.678 69.121 162 1,963,200 77,678 69,121 162 1.918,000 110,546 78,329 2,253 Total income 2,110.161 2.110,161 2.109.128 Expenditure on: Raising funds Charitable activities 61.868 1,548.967 61,868 1.548,967 81,002 1,426,929 Total expenditure 1,610.835 1.610,835 1,507.931 499,326 499,326 601,197 Not movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds 577,449 499,326 577,449 499,326 123,748) 601.197 1,076,775 1.076,TT5 577.449 Total funds carried forward The Consolidated statement of financial activities indudes all gains and105ses recognised in the year. The notes on pages 25 to 41 fomi part of these finan￿al statements. Page 21 TransadiDn Ref. 28P2-XQ8W4ZRY 13 Oct2021 10..17..11 BST (Lrrc +1) 0 111 P 24143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) REGISTERED NUMBER: 12031028 CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2021 2021 2020 Note Fixed assets Tangible assets 13 4.814 7,709 4.814 7,709 Current assets Stocks 14 18.007 34,192 1,502,483 25.240 137.287 1,029,564 Debtors 15 Cash al bank and in hand 1,554,682 1,192,091 Creditors.. amounts falling due within one year 16 (64.2071 (195.1671 Not current assets 1,490.475 996,924 Total assets less current liabilities 1.495.289 1.004,633 USS pension scheme deficit recovery provision 23 (418,5141 1427,1841 Total net assets 1,076.775 577,449 Charity funds Unrestricted funds Designated funds General funds 243,000 833,775 161,000 416,449 18 Total unrestricted funds 18 1,076.775 577,449 Total funds 1,076.775 577,449 The financial statements have been prepared in accordance wth the provisions applicable to entilies subject to the small companie5 regime. The financial sLitements were approved and authorised for issue by the Trustees and signed on their behalf by.. jOdW21(I￿.￿1 EbTiiife+l1 S Jones. Officer Trusteo Porterfield. Officer Trustee Date= 13 October 2021 The note5 on pages 25 to 41 fomi part of these financial statements. Page 22 TransadiDn Ref. 28P2-XQ8W4ZRY 13 Oct2021 10..17..12 BST (Lrrc +1) 0 111 P 2St43 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) REGISTERED NUMBER: 12031028 COMPANY BALANCE SHEET AS AT 31 JULY 2021 2021 2020 Note Fixed assets Tangible assets 13 4.814 7,709 4.814 7,709 Current assets Stocks 14 18.007 34,192 1,502,483 25.240 137.287 1,029,564 Debtors 15 Cash al bank and in hand 1,554,682 1,192,091 Creditors.. amounts falling due within one year 16 (64.2071 (195.1671 Not current assets 1,490.475 996,924 Total assets less current liabilities 1.495.289 1.004,633 USS pension scheme deficit recovery provision 23 (418,5141 1427,1841 Total net assets 1,076.775 577,449 Charity funds Unrestricted funds Designated funds General funds 243,000 833,775 161,000 416,449 18 Total unrestricted funds 18 1,076.775 577,449 Total funds 1,076.775 577,449 The financial statements have been prepared in accordance wth the provisions applicable to entilies subject to the small companie5 regime. The financial sLitements were approved and authorised for issue by the Trustees and signed on their behalf by.. I￿￿￿1￿*￿]13￿￿l •>.lq23llST￿+II S Jones. Officer Trusteo Porterfield. Officer Trustee Date: 13 Ociober 2021 The note5 on pages 25 to 41 fomi part of these financial statements. Page 23 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..14 BST (UTC +1) 0 111 P 26M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021 2021 2020 Cash flows from operating activitios Nel cash used in operating activities 473,686 314,737 Cash flows from investing activities Purchase of intangible assets 1767) 13,391) Net cash used in investing activities 1767) (3,3911 Cash flows from financing activities Change in cash and cash equivalents in the year 472.919 311.346 Cash and cash equivalents al the beginning of the year 1.029.564 718.218 Cash and cash equivalents al the end of the year 1,502.483 1,029.564 The notes on pages 25 10 41 fom part of these financial statemenls Page 24 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..15 BST (UTC +1) 0 111 P 27M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Gan8ral infomiation The Open University Students Association Limited is a charitable company limited by guarantee. It is registered in England and Wales Mrith charity registered number 1183837 and in Scotland with charity registered number SC049546 and company regislered number 12031028. The pnncipal activity of the charity is running a students. association for students wthin the Open University. Accounting policies 2.1 Company siatus The charity is a company limited by guarantee. The company law members of the company are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee 15 limited to £1 per company law member of the charity. Student Members of the Association are not induded in this liability. 2.2 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP {FRS 1021 Accounting and Reporting by Charities= Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (effective 1 Jaiiuary 2019}. the Finan￿al Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Companies Act 2006, the Charities and Trustee Investment {Scotlandl Act 2005 and the Charities Accounts {Scotlandl Regulations 2006 las amended). The Open University Students Association meets the definition of a public benefit entity under FRS 102. Assels and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The Company ha5 taken advantage of the exemption allowed under Section 408 of the Companies Act 2006 and ha5 not presented its own statement of financial activities in these financial sLitements. 2.3 Income Subvention income is recognised once the Charity has entrtlement to the in￿me, it is probable that the income wll be received and the any)unt of income receivable can be measured reliably. Income from charitable activities comprises of management d)arges and NUS TOTUM card commission and is recognised once the charity has entitlement lo the income. ¢1 is probable that the income will be received and tlie amouiit of inwrt)e can be Ineasured reliably. Income from other trading income activities represents income generated by the sale of merchandise. Donated facilities are induded at the value to the charitable company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers. Page 25 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..178ST (UTC +1) 0 111 P 2a143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accounting polieies {continuodl 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefft to a third party, it 15 probable thal a transfer of eGOllOtniG benefits will be required in 5ettletnent and the amounl 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 cost5 which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned betrween those acttvities on a basis consistent with the use of resources. Central staff costs and depreciation are allocated diredy on the basis of staff diredy attributable to each activity. Govemance costs are audit. accountancy and Board of Trustee costs. Costs of generats'ng funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise fvnds. Charitable activities and Govemance costs are costs incurred on the Chaiitys educational operations, including support costs and o)sts relating to the govemance of the Charity apportioned to charitable activities. 2.5 Basis of consolidation The financial statements consolidate the accounts of The Open University Students Association and its subsidiary undertaking OUSA (Services) Ltd. OUSA Iservicesl Ltd was domianl in the year lo 31 July 2021 following the tranfer of its activitse5 to the Association on 31 July 2020, held no assets or liabilities and was dissolved on 28 September 2021. 2.6 Tangible fixed assets and depreciation Tangible fixed assets are initially recojnised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incutTed to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocat& the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight4ine method. Depreciation is provided on the following base5-. Fixture5 and fittings Computer equipment Display boards 200kn straight line 200A and 33% straight line 20% straight line 2.7 Stocks stock$ are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 2.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the am(￿nt prepaid nel of any trade discounts due. Page 26 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..188ST (UTC +1) 0 111 P 29M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accounting polieies {continuodl 2.9 Cash at bank and in hand Cash at bank and in hand indudes cash and short-temi highly liquid investments wth a Short maturity of three nK)nlh5 Or le55 from the date of ￿qUI5b11on oi opening of the deFK151t or 5iFnilar aGGount. 2.10 Liabilities Liabilities and provisions are recognised when there is an obligation at the balance sheet date as result of a past event, it is probable that a transfer of economic benefit will be required in setllement. and the amount of the settlement can be estimated reliably. 2.11 Financial instruments The Group only has financial assets and finan￿al liabilities of a kind that qualfy as basic finan￿al instruments. Basic financial instruments are initially reccxjnised al transaction value and subsequenlty measured at their settlement value. 2.12 Pensions The institution participates in the UniveT5ilies Superannuation Scheme. The as5et5 of the scheme are held in a separate truSte￿adMInIstered fund. Because of the mutual nature of the 5cherne, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarkil risks aSS￿lated wilh other institutions, employees and is unable to identify ils share of the undedyng assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 'Employee benefits. the institution therefore account5 for the scheme as rf it were a defined contribution scheme. As a result, the amount charged to the statement of financial activities represents the contributions payable to the scheme. sin￿ the institution has entered into an agreement {the Recovery Plan) that determines how each employer Mqthin the scheme wll fund the overall defictl, the insb"lution recognises a prowsion for the contributions payable that arise from the agreement (to the extent that they relate to the deficill with related expenses being recognised through the statement of finanaal adivitie$_ See Note 23 for further details of the Universities Superannuation Scheme. 2.13 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and Md)ich have not been designated for other purposes. Designated funds comprise unrestricted fund5 that have been Sel aside by the Trustee5 for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Page 27 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..19 BST (UTC +1) 0 111 P 30M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Critical accounting estimates and areas of judgment Estimates and judgments are continually evaluat￿4 and are based on historical experience and other factors. including expectstions of future events that are believed to be reasonable under the Circumstances. Critical accounting estimates and assumptions.. The Company makes estimate5 and assumptions concerning the future. The resulting accounting estimates and assumptions will. by definrtion. seldom equal the related actual re5uIt5. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrwng amounts of assets and liabilities wqthin the next financial year are discussed below. Critical areas of judgment: Pension Commitments FRS 102 makes the distinction befften a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A mutti-employer scheme is a scheme for entities not under common control and represents itypicallyl an induslry-wide scheme such as Universities Superannualion Scheme. The trustees are satisfied that the scheme provided by Universities Superannuation Scheme meets the definition of a mults-employer scheme. The amounts due in respect of the deficit recovery plan relating to thi5 scheme, as recommended by actuaries and subject to actuarial assumptions, are induded wqthin the balan￿ sheet as a provision and thi5 reftects the discounted fair value of the contractual contributions under the recovery plan in existenGe at the date of approving the finan￿al statements. Income frorn donattons and legacias Unrestricted funds 2021 Total funds 2021 Total funds 2020 Subvention income 1,821,700 71,000 3,500 67,000 1.821.700 71.000 3.500 67,000 1.762.000 89.000 Exam paper replacement income Other grants Donated services 67,000 TDtFJl 2021 1,963,200 1,963.200 1,918,000 Total 2020 1,918,000 1,918,000 Page 28 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..21 BST (UTC +1) 0 111 P 31M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Ineoma from charitable activities Unrestricied funds 2021 Total funds 2021 Total funds 2020 Management charges to The Open University Students. Educational Trust 42,507 35,158 13 42.507 35.158 13 44.741 65.805 NUS TOTUM Commission Other Income Total 2021 77,678 77,678 110,546 Total 2020 110.546 110,546 Income from othor trading activities Income from non ehariiable trading activities Unrestricted funds 2021 Total funds 2021 Total funds 2020 Sale of merchandise 69,121 69.121 78.329 Total 2020 78,329 78,329 Investm8nl incom8 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Bank deposit 162 162 2,253 Total 2020 2,253 2,253 Page 29 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..22 8ST (UTC +1) 0 111 P 32143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Expenditure on raising funds Raising funds oxpenditure Total funds 2021 Total funds 2020 OU Shop 2021 Cost of Sales 30,042 24,914 6,912 30,042 24.914 6.912 45,844 27.325 7.833 Other Staff costs Total 2021 61,868 61,868 81,002 Total 2020 81,002 81,002 Analysis of expenditure by activities Staff (direct and SUPPOrt) 2021 Other direct costs Other support costs Govamance Total funds Total fund5 2021 2021 2021 2021 2020 Student ServI￿S and support Student representation Student community student volunteering Cumure project and governance refomi Recharged to OU shop Conferen(t 465,427 339.133 273.538 160.562 24,890 16,002 3,741 13.770 60,795 38,390 33,181 20,108 8,282 5,230 4,520 2,739 559,394 398,754 314,980 197,179 471,631 420.429 233,890 152,136 39.735 25.200 12,080 1.645 78,660 60.183 7,833 80,828 1,278.395 83,602 164,554 22,416 1.548,967 1,426.929 Totsl 2021 Page 30 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..YJ BST (UTC +1) 0 111 P 33143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Support cosis 2021 Total funds 2021 Total funds 2020 Dire￿ costs Governance 2021 2021 Staff costs 737.151 4,330 37,137 541.244 94,852 44,379 1.278.395 99,182 81,516 22.416 21.837 15.410 14.603 9.587 3.952 ,215 854 1.007.489 109,252 132,929 24,450 14,652 22.958 1.540 7.754 51,604 2,035 52,266 Central office costs Professional services Audit Training and development Subscriptions and affliliations Printing and publicity other staff related costs Events and activities Grants to Socseties Meeting costs 22,416 12,661 14,579 8,578 297 3,952 1,215 854 9,176 831 6,025 9,290 Total 2021 820,754 22,416 705,797 1,548.967 1,426.929 Total 2020 954,096 31,083 441,750 1,426.929 Movements in the USS pension scheme deficrt recovery scheme are shown wthin staff costs. 10. Auditorfs remuneration 2021 2020 Fees payable to the Group's auditor for the audit of the Group's annual accounts 19.440 19.800 Fees payable to the Companvs auditor in resFect of.. Al taxation advisory service5 not included above I nOn-al￿1t seNices not included above 2.976 3,790 Page 31 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..25 BST (UTC +1) 0 111 P 34M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 11. Staff costs Group 2021 Group 2020 Company 2021 Ccmpany 2020 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 1,021,633 91,150 1,053,017 97,865 1,021,633 91.150 1,053,017 97.865 184,312 181,140 184.312 181.140 USS pension scheme deficit recovery provision costs {11,788) (316,7001 111.788) 1316.700) 1.285,307 1,015,322 1,285.307 1,015.322 For more details on the defined benefrt pension scheme provision costs see Notes 17 and 23. The average number of persons employed by the Company during the year was as follows: Group 2021 No. Group 2020 No. Average employees 36 34 The number of employees whose employee benefits {excluding employer pension costs} exceeded £60.000 was.. Group 2021 No. Group 2020 No. In the band £70,CN)1- £80,000 Key management personnel for the year ended 31 July 2021 consist of the Chair of Trustees and other Trustees who are all unpaid- plus the remunerated roles of the President, Deputy President and three Senior Managers. The Senior Management team comprised the Chief Executive and trNO Deputy Chief Executives up lo April 2021 when, following restructuring, the two Deputy Chief Executive roles were replaced by the Director of Engagement and the Director of Membership se￿Ice5. Totsl remuneration in respect of key management personnel for the year ended 31 July 2021 is £250.62712020'. £249.598). Page 32 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..26 BST (UTC +1) 0 111 P 35M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 12. Trustees. remuneration and expanses During the year. no Trustees receiv￿ any remuneration or other benefits12020.' £nil) in relation to their role as a TNstee. During the year, 2 Trustees received remuneration in respect of their role as President and Deputy President {2020= 2 Trusteesl. The value of Trustees. remuneration and other benefits was as follows.. 2021 2020 C Brown S Slubbins Remuneration Remuneration 23.629 8.309 I Cheyne S Jones Remuneration 15,824 27,183 Remuneration During the year ended 31 July 2021, expenses totalling £265 were reimbursed or paid directly to 5 Trustees12020 - £17,612 to 10 Trustees). 13. Tangible fixod assets Group and Cornpany Office equipment Computer equipment Other fixed assets Total Cost or valuation At 1 August 2020 Additions 13.276 25.848 767 31.403 70.527 767 Disposals (1,6851 (1,6851 At 31 July 2021 13.276 24.930 31.403 69,609 Doprociation At 1 August 2020 Charge for the year On disposals 10.016 1.285 21.399 2.377 11.6851 31.403 62,818 3,662 (1,6851 At 31 July 2021 11.301 22.091 31,403 64.795 Net book value At 31 July 2021 1.975 2,839 4.814 At 31 July 2020 3.260 4.449 7.709 Page 33 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..288ST (UTC +1) 0 111 P 36M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 14. Stocks Group 2021 Group 2020 Company 2021 Ccmpany 2020 Flnlshed goods and goods resale 18,007 25,240 18,007 25,240 15. Dobtors Group 2021 Group 2020 Company 2021 Cc*npany 2020 Due within one year Trade debtors 6,721 18,335 9,136 7,620 120,245 9,422 6,721 18,335 9.136 7,620 120,245 9,422 Amounts owed by the Open University Prepayments and accrued income 34,192 137,287 34,192 137,287 16. Craditors: Amounts falling due wiihin one year Group 2021 Group 2020 Company 2021 Company 2020 Trade creditors 8,372 2,352 13,923 39,560 13,324 2,585 10,105 169.153 8.372 2,352 13,923 39.560 13.324 2,585 10,105 169,153 other laxalion and wcial $￿Tty other creditors Accruals and deferred income 64,207 195,167 64,207 195,167 Page 34 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..29 BST (UTC +1) 0 111 P 37M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 17. Provisions The obligation to fund the past deficit on the Universities Superannuation Scheme IUSSI arises from the conlraclual obligation with USS to make deficit payments in accordance wqth the deficit recovery plan. The provision has been calculated by estimating lulure employer pension payments and applwng the deficit recovery contabulions. These were outlined in the USS deficit recovery plan arising from the March 2017 actuarial valuali¢x, published in February 2019 and then amended by the March 2018 actuarial valuation. published in September 2019. The weighted average discount factor thal has been applied over the remainder of the deficit recovery plan is 0.87%12020." 0.730/0}. More details on the 2018 actuarial valuation are Set out in Note 23. At 1 August 2020: £427,184 Unwind of the finance charge.. £3,118 Contributions paid.. {£11.7881 At 31 July 2021: £418.514 Page 35 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..9) BST (UTC +1) 0 111 P 3a143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 18. stsiemeni of funds Staiement of funds - Current year Balance at 1 August 2020 Transfers Balance at inlout 31 July 2021 Income Ex￿ndItur8 Unrestricted fund$ Designated funds Trustee projects Conference and Association 50th 50.000 {6.720) 113.280) 30.000 88.000 64,805 30.200 88.000 95,000 30,000 strategy delivery Culture and goveman¢e review 86.000 25,IXIO (55.805) 125.200) 161,000 187,725) 169,725 243.000 General funds General funds USS pension scheme deficit recovery provision 843,633 2,110,161 11,531,780) (169,725) 1,252,289 1427,1841 8,670 1418,5141 416,449 2,110,161 11,523.110) (169.725) 833,775 Total Unrestricted funds 577.449 2.110,161 11.610.835) 1.076.775 Page 36 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..32 8ST (UTC +1) 0 111 P 39M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 18. stsiemeni of funds {continuad) Staiement of funds - prior year Balance at 1 August 2019 Transfers Balance at inlout 31 July 2020 Income Expenditure Unrestricted funds Designated funds Strategic projects Conference 50,000 185,5591 71,600 16,947 50.000 106.500 65,￿0 35,￿0 120.9411 150,6001 126,9471 Growth Culture review 86.000 25,000 206,500 198,4881 52,988 161,000 General funds General funds USS pension scheme deficit recovery provision 502,065 2,109,128 11,714,572) 152,9881 843,633 1732,3131 305,129 1427,184) 1230.248) 2,109,128 11,409.4431 152,9881 416,449 Total Unrestricted funds 123.7481 11,507.9311 5TT.449 Page 37 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..33 BST (UTC +1) 0 111 P 40M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 19. Analysis of nei assets between funds Analysis of net assats betwaan funds- currant year Unr6siriCted funds 2021 Total funds 2021 Tangible fixed assets Current assets 4.814 1.554.682 164,2071 (418.5141 4,814 1,554.682 164,2071 1418.5141 Creditors due within one year Provisions for liabilrties and charges Total 1,076,775 1.076,775 Analysis of net assats between fun(ts - prior year Unreslricted funds 2020 Total funds 2020 Tangible fixed assets Current assets 7.709 1,192,091 (195,1671 1427,1841 7,709 1,192.091 1195.167) 1427,184) Creditors due wthin one year Prowsions for liabilities and charges Total 577.449 577,449 Page 38 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..35 BST (UTC +1) 0 111 P 41M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 20. Reconciliation of net movement in funds to net cash flow from operating activities Group Group As resl*ed 2021 2020 Net income for the year las per Statement of Financial Activities) 499.326 601.197 Adjustments for: Depreciation charges Lossllprofft) on the sale of fixed assets Deuease in stocks 3,662 10.921 {539) 17.172 9,143 118,028) 1305,1291 7.233 98.752 (126,617) (8,670) Decrease in debtors Decrease in credf(ors Increaselldecreasel in defined benefit pension scheme Net cash provided by operating activities 473.686 314,737 21. Anatysis of cash and cash equivalents Group 2021 Group 2020 Cash in hand 1,502,483 1,029,564 Total cash and cash equivalents 1,502,483 1,029,564 Analysis of changes in net debt At 1 August 2020 Cash flows At 31 July 2021 Cash at bank and in hand 1,029.564 472.919 1.502,483 1,029.564 472.919 1.502.483 Page 39 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..36 BST (UTC +1) 0 111 P 42143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 23. Pension commitments The charity partiapales in the Universities Superannuation Scheme {USS}. a defined benefit scheme which was contracted out of the Stale Second Pension IS2PI up to 5 April 2016. The assets of the scheme are held in a separate fund administered by the trustee. Universities Superannuation Scheme Limited. The chaiity is unable lo identfy its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, a5 required by FRS 102, accounts for the Scheme as if it were a defined contribution scheme. As a result. the amount charged to the statement of financial actNities represents the contributions payable lo the scheme in respect of the accounting period together with the adjustment reflecting its commitment to make payments under the defiat recovery plan as ouUined later in this note. The fund is invested in a wsde range of asset classes, both publicly traled {including equities and fixed income) and private (including private equity, infrastructure. propety and ts'mberfandl. A diversified portfolio helps lo spread investment risk across different asset dasses and boost the level of confidence in maintaining sufficient investsnent returns from the funds as a whole. USS actuarial valuation The latest available complete actuarial valuation Ihal is included in the Statement of Finanaal Position is as at 31 March 2018, which was carried out using the projected unit method. This is the fifth valuation for USS under the new scheme-specific funding regime introduced by the Pensions Act 2004, which requires sGhemes to adopt a 3tatLFtory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. The value of the assets of the scheme as al 31 March 2018 Ilhe valuation datel was £63.7 billion and the value of the scheme's technical provisions was £67.3 billion indicating a deficit of £3.6 billion and a funding level of 95YD. A valuation at 31 March 2020 is undepNay bul not yet complete. The level of the Scheme deficit has led to changes in the deficFI recovery plan agreed after the 2017 valuation, and this in tLErn affects the provision shown in the financial sLitemenls. 2017 Valuation 2018 Valuation Entire USS Scheme Total Assets Total Liabilities Scheme Deficrt Funding level £60.0 billion £67.5 billion £7.5 billion 89% £63_7 billion £67.3 billion £3.6 billion 95% The Open University Students Association's commitment to make payments under the deficit recovery plan has been modelled based on additional contribution rates along with an estimate of future staff costs. and a discount factor based on high-quality corporate bonds. The discount factor used to calculate the provision al 31 July 2021 wa5 0.870kn131 July 2020= 0.730AI. The deficit recovery plan put in place as part of the 2018 valuation requires payment of 2% of salaries for the period 1 OGtober 2019 to 30 September 2021 at which point the rate increases to 6%. USS is a last man standing" scheme so that in the event of the insolvency of any of the participating employers in USS, the amount of any pension funding shortfall (which cannot otherwise be recovered) in respect of that employer will be spread across the remaining parb"apant employers and relleded in the next actuarial valuation of the scheme. The key financial assumptions used in the 2018 valuation are described below= Valuation rate of interest {discount ratel Years 1-10= CPI + 0.140/0 reducing linearly to CPI- 0.73% Years 11-20.. CPI + 2.52% reducing linearly to CPI + 1.55% by year 21 Years 21 +: CPI + 1.550 Page 40 Trarr&Bri￿n Ref. 28P&XQ8W-8ZRY 13 0￿2021 10..17..37 BST (UTC +1) 0 111 P 43143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 23. Pension commitments (eontinuadl Ponsion iner6ases Temi dependent rates in line with the difference between the Fixed Interest and Index Linked yield ¢uNes. less 1.3010 p.a. Life 8xp8ctaney at age 65 (currently agad 65) Male= 24.6 years12020. 24.4 years) Female". 26.1 years12020". 25.9 years) Life expectancy at age 65 (currently aged 451 Male= 26.6 years12020.. 26.3 years) Female.. 27.9 years12020.. 27.7 years) Employer and Employee contributions As part of the 2018 valuats'on, the trustees determined, after consultation with employers, a revision to the existing recovery plan to pay off the revised shortfall by 31 March 2028, the previous 12017 valuation) recovery plan was for recovery by 30 June 2034. The changes required to fvnd both the deficit and ongoing future costs are collected through increased employer and employee contribtrtions. The 2020 triennial review had not been completed by the time that these financial statements were approved and therefore the provision was prepared on the basis of the 2018 valLtation. However. one outcome of egotiations leading up to approval of the fiTrancAal statement5 has been the reduction of the planned increase in contributions that had been planned for October 2021. The contributions followng the 2018 valuation. and the revised contributions from Octokr 2021. are as follows.. Period To 30 September 2019 1 October 2019 10 30 September 2021 1 October 2021 onwards l October 2021 onwards {revisedl Ernployors 19.50 21.10 23.70 21.4% Employees 8.80 9.6% 11.00 9.8% Defiryt recovery contributions due wthin one year from the charity are £51,85212020.' £14,867). 24. Rolated party transaclions The Company provided administrative setvi¢es for The Open University Students. Educational Trust {OUSET) throughout the current and previous year. During the year ended 31 July 2021 the Company recharged management fees to OUSET of £42.507 {2020.- £44,440). During the Current year donations were collected on behalf of OUSET lotalling £7,337. At the year end a balance of £4,29912020.. £nill was payable to OUkniET. In the prior year these donations were Gollected by the subsidiary Company hthich is now dorniant12020.. £5,628 collected and £574 owed a5 at 31 July 20201. During the year ended 31 July 2021 the Company re￿iVed £1.821,70012020= £1,762,000) in the fomi of a subvention and £71,000 12020= £89,000) in respect of exam paper replacement income. The Open University recharged costs totalling £1,315,050 12020.. £1,332,377)- Al the year end the Company was owed £18,33512020= £120,3451_ 25. Controlling party The TNstees ￿lieVe that there is no ultimate controlling patty. Page 41