VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..3188T{Lrrc +11 DV2 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 2022 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..32 88T{Lrrc +11 DV2 P 2143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) CONTENTS Page Roferenco and administralive details of the charity. its Trusleos and advisers Trustees. report Trustees. respoiisibilities statement 3-16 Independent auditor's report on the financial statements Stai6ment of financial activities 18-21 22 Balance sheet 23 Statement of cash flows 24 Notes to the financial statements 25-41 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..33 88T{Lrrc +11 DV2 P 3143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2022 Trustees A Blake, Exlemal Trustee and Chair (resigned 4 April 2022) M Bryan, Officer Trustee {appointed 1 August 20221 I Cheyne, Officer Trustee Iresigned 31 July 20221 J Doran. Student Trustee (appointed 14 August 20221 M Greenaway, Officer Trustee {appointed 1 August 2022} S Hanley. Student Trustee Iresigned 13 May 20221 J James, Student Trustee {resigned 31 July 20221 G Jones, Officer Trustee (appointed 1 August 2022 S Jones. Officer Trustee (resigned 31 July 2022) J Paisley, Student Trustee (resigned 31 July 20221 C Phua, Student Trustee (appointed 1 August 2022) M Porterfield, Officer Trustee {resigned 31 July 20221 M Pri￿, External Trustee A Seaton, Student Trustee (appointed 1 August 20221 C Wallace, Student Trustee F Zombor. Student Trustee (appointed 1 August 2022) Company registered number 12031028 Charity registered numbers 1183837 and SC049546 Registered office PO BOX 397 Walton Hall Milton Keynes Buckinghamshire MK7 6BE Chief executive officer Rob Avann (resigned 13 July 20221 Beth Metcatf (interim from 13 July 2022} Indopondont auditor James Cowper Kreston Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RGI 8LS Bankers National Westminster Bank PLC 501 Silbury Boulevard Milton Keynes Page 1 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..94 88T{Lrrc +11 DV2 P4143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 Solicitors Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR Page 2 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..94 88T{Lrrc +11 DV2 P 5143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2022 The Trustees present their annual report together wlh the audited financial statements for the 1 August 202110 31 July 2022. The Annual Report seNes the purposes of both a TNstees' rewrt and a directors. report under company law. The Trustees confimi that the Annual Report and consolidated financial statements of the charitable company comply with the current statutory requirements, the requirements of the char¢table company's goveming document and the provisions of the Statement of Recommended Practice ISORP) applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK aiid Republic of Ireland IFRS1021 {effective 1 January 20191. OBJECTIVES AND ACTIVITIES Summary of Objects The Association's purpose is the advan￿ment of educatron of students at The Open University (OUI for the public benefit. Our charitable oty'ects are= O defending the principles of equal opportunty and of open access lo the University regardless of academic qualifications or financial circumstances O promoting the interests and weKare of Students and representing and supporting them during their studies O acting as the recognised, representative channel be￿een OU students. the University and external dies rf assert¢ng the right of all students to be heard and acknowledged by the University O providing social. cultural and recreational activities for the personal development of OU students. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. Aims Our primary aims, in line wqth our charitable objects, are to defend the principles of equal opportunity and open access lo OU study and lo improve the quality of the student experien￿ for all those who study with The Open University- We believe that Open University 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 work to represent the student voice through both the Unive￿ity'S fomial governance structures and through partnership working with University stsff across the breadth of University services that impact on the quality of the student experience. We also believe that students can Provide ex￿lIent peer support both in direct relation to the study goals of individual students and in facilitating the development of a vibrant sludent community. Central to our aims, objectives and activities is our work to help the University further its mission lo be open to people, and in particular to offer the prospect of higher education to those members of the public who may otherwise be among the least likety to have that opportunity. We have our own commitment to work to ensure aC￿sS lo OU study for the wdest possible spectrum of the public and further lo work to ensure that all those who register as >tL￿eNt$ havè thè necessary support to enablè them to succeèd. Main Objectives for the Year and Strategy for Achieving these Throughout this, our 50th anniversary year, we have continued lo move forward wth our strategic plan, progressing existing projects as well as embarking on other agreed projects. As well as ￿lebrating all that has been achieved by our organisation for students in the last SO years, we have been focLtsed on future-proofing the organisation for the years lo come, in line with our three key strategic aims,. infomi and support, engage and involve and influence and transform. Page 3 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..35 88T{Lrrc +11 DV2 P6143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 OVR STRATEGIC AIMS INFORM &SUPPORT ENGAGE & INVOLVE INFLUENCE & TPANSFORM ory¢prn*nt ￿n￿Onc• lrnyov* Impxl lrnprry*• We are now at the end of the third year of OLFr four-year strategic plan lo 2022123 and this is available in full on our website Iwww.ousludents.coml. We also publish the perfomiance management information and updates on implementation as part of our papers to our Central Executive Committee, alongside the minutes of the Board of Trustees where performance and implementation Is kept under review. Info￿ and Support We launched the indimdual representation service pilot to students in September 2021. The main objective here was to gain experience of the types and level of supw)rt required by students and then to evaluate the service with a view to its potential continuation as part of our mainstream offering lo students. Our student representatives have been invofved at all levels of negotiation, over a long period of time, for the new Assoaate Lecturer contracts. These changes wll make a significant drfference for students by providing contract 5tabilty for ALS, and therefore increasing conslstency in leaming and delivery for students. Engage and Involve To ensure our interactions meet student needs and expectations. we mapped the studentjoumey from registration through to graduation to create our communications strategy. We continually assess the effectiveness and impact of our work to enable infom)ed decision making on resource allocation and plloritisation. Now that the Annual Membership Survey 15 established, we are creating an annual service and activity review to enhance this. Influence and Transform Followng an extemal review of our governan￿ structure in 2020-21, consultation with stakeholder groups on the proposed govemance reforms gol undepNay in August 2021 to inft)mi decisions, for example, on the size, the composition and the roles within each part of the proposed structUTe. Followng the govemance review the Trustees decided lo place a real focus on living the Association's values. Our Culture Working Group has developed our Values and Behaviour policy. improved our complaints process and is working to embed new ways of working that will support an enduring positive, kind and engaging culture. Work has continued wlh the Open University to further the Student Voice Actson Plan. The aim is to develop shared principles for best practice for student engagement in OU and Association activities. helping to improve outcomes for students and breaking down barrier5 10 inclusion. You can read mre about the activities undertaken to pr¢)Jre5S these areas, as well as other key activibes in the "Achievements and Performance- Charitable Objectives" section, below. Page 4 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 I6..30..￿ 88T{Lrrc +11 DV2 P 7143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 Factors relevant to the achievement of our objectives 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 fundamental part of our achievements and Inake a Inajor contribution to all U)aL we do. We therefore invest resources in the recNitmenl, training and retention of students willing and able to make a signfficant contribution to our work. We expect that the climate may become more challenging as the higher education sector and our student p)pulalion continues lo evolve. This year for example, we have found it difficult lo recruit volunteers to 5UPPOrt merchandising at graduation ceremonie5. although pethaps Covid 19 anxieties may have been a factor here. We will continue to monitor and adapt to ensure we are offering volunteering opportunities of mutual benefit. We are currenUy undergoing the triennial re-assessrnent to retain the Investing in Volunteers quality standard, awarded in July 2019. 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 lo be able to bling together many of our volunteers in Juty 2022, along with some key University colleagues who also support our work. as part of the induction and handover programme from the outgoing elected Central Executive Committee {CECI representatsves and Trustees to the incoming CEC and Trustees elect. We pay reasonable expenses lo volunteeis lo enable them lo fulfil their roles. The President and Deputy President were employees of the Asswation during the year. However, they are not paid for their duties as Trustees and contsnue to perform Trustee duties on a voluntary basis. Other Key Relationships We endeavour to maintain a healthy and constructive working relationship wth the University and with other extemal organisations that share similar priorits.es and objects"ves. We are proud members of both the National Council ofvoluntary Organisations INCVO) and the Charity Finance Group (CFGI. We retain the seNices of legal advisers, HR advisers and a Data Protection Officer to ensure we remain up lo date with best practice and changes in legislation. We subscribe to a political monitoring service. This supports our policy and public affairs agenda by alerting us to the lalest political developments that may directly impact the higher education sector an(Vor distance leaming. We are not member5 of the National Union of Students INUSI but thj maintain a relationship and dialogue with their leadership on matters of mutual interest. ACHIEVEMENTS AND PERFORMANCE Charitable Activities We are proud lo 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 fom)s the basis of our mission statement. Page 5 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..37 88T{Lrrc +11 DV2 P 8143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 This benefits our student members during their journeys as stsjdents of the University and in lum, our volunteers positively improve the experiences of their peers and those that will follow them through the Universty in subsequent years. There is also a considerable amount of personal and professional development that all of our student volunteers gain from their involvement in our work. ￿h1¢h will benefit them in their future lives and their own minuiiilies as a significant publi¢ benefit. Many volunteers of the Association have told us they have gone orF to find their first jobs after volunteering with the Association and some past executive members are now employed by the University following the experience gained, and netrNorks built. We are proud defenders of the original mission of the Open University to be open to people. places, methods and ideas. Here are some of the way5 we have worked towards the achievement of our objectives in 2022- 2023. Conference 2022 and Governance Reforn? Pmposals The main purpose of the biennial conferen￿ is to give students the opwttunity, as Conference delegates, to vote on business related matters that affect the Nnning of their Students Association. Of the 240 delegates who registered for Conference 2022, 170 exercised their vole. leaving 70 delegates {29%) who did not engage with the voting and therefNe did not gain access to the weekend's activities. Over the weekend, attendees were able to hear frorn an incredible line up of speakers ranging from DIY experts lo politicians, and from sports stars lo authors. Attending Conference also offers a rare opportunity to meet and engage with fellow students to feel part of a community- FulLtre cOnferen￿S Mqll be focused on increasing engagement and participation and seeking new and innovative ways of achieving this. All the standard business items (including approval of affiliations and appointment of auditors) were passed in full by the outcome of the voting, as per the voting report. The five Govemance Refomi resolutions saw only one passed (Resolution E - implement a range of minor changes to the Arbcles of Association}. Despite the majority voting in favour, resolutions A-D failed to meet the 75¥0 threshold required (Artide 9.4al. These four resolutions proposed changes to the governance structures and lo replace the biennial Conference with an Annual General Meeting IAGMI- There are lessons lo be learnt from our approach to the governance reforms. and we plan further consultation with our members, to ensure we are focused on the areas most relevant and important to them as we look ahead lo our 2024 Conference. annfversary As part of our 50* year celebrations. we want lo make sure we create a legacy for the future. To this end, our 2020- 2022 President. Sarah Jones set an ambitious fundraising target to raise £50,000 for our connected charity, the Open University Students Educational Trust IOUSET). A5 part of thi5 work, the Association Trustees agreed to match furbd £20,000 in donations from the University. We are also running a JustGiving campaign, raising funds through the sale of 50 anniversary merchandise and have registered OUSET to receive donations through Amazon Smile. Conference 2022 kick started the Association's celebrations of its 50 birthday. Founded in 1972 to create clear line of communication bebNeen the University and its students, we are proud of all that volunteers and staff have achieved together over the lasl 50 years. As well as celebrating 50 years of supporting OU students. we are keen to ensure we build on successes to continue making a positive difference for all OU Students. Page 6 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..98 88T{Lrrc +11 DV2 P W43 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 student Representatlon - Electlons success Followng Conference, it was time to begin the elections process to elect student representatives and trustees to seTve in the 2022- 2024 tenn. Changes to the elections process and information. building on lessons leamed in 2020 led to a significant increase in engageineiit fron) individuals wisliing to jo)in our Central EXe￿tIVe Cominittee. There were 73 {+151.70kn) nominations in 2022, compared with 29 students nominating themselves for positions in 2020. The 2022 election also saw voter lurnoul increasing by 18.9%. This significant increase is cause for celebration. Despite this. our lotsl tumout figure is still lower than we would like. and our efforts will remain focused on increasing this figure. In the coming temi, we wqll be focused on benchmarking this figure against other similar organisalions to ascertain what success looks like for us in the future. Many of the campaigns related lo the elections were hosted on new plaff0rn75, With the Association TikTok making its debut appearance and one of our Instagram reels hitting over 7000 views. Despite the many posrtives coming from this recent campaign, there is always more we strive to achieve for the benefit of our members. So we wll now foous our efforts on benchmarking and setting KPIS for the 2024 elections. We will also develop an appropriate hustings and candidate platfomi to increase voter engagement. student Support- Indlvldual representatlon development After securtng additional funding from the UnNersity, in September 2021. we launched our individual representslion pilot, offering one lo one advice and support for students who are subject to or involved in OU complaints at stage kn or above. Thi5 service suppjrts cases related to plagiarism, misconduct aC￿ssIbl11ty and much more. September to May saw 278 cases supported by the Association. covering a range of issues. Of those who accessed these servI￿s. over 50% were registered as students with disabilities, with many other students from minority groups accessing the support. This suggests there is more work to be done by the University and Association to support these groups before they are involved in complaints and appeals. Followng the success of the pilot, the OU has supported an extension to this work, allowing us more lime to source evidence to show the benefit of this service to students as well as to the University. wth an aspiration to make this service pemianent. student Communlty- Clubs and Socletles revlew Followng a trend in complaints and low-level incidences occurring related lo clubs and societies and given that clubs have grown exponentially over the past 4 years. a full review of clubs was conducted and a process for auditing societies developed. This Teview engaged exi51ing club leads and members, as well as Iwking at best practise in other areas, to make recommendations to the Central Executive Committee and Board of Trustees. These recommendations aimed to both improve the experience for students- ensuring clubs are safe spaces to engage with fellow students, whilst reducing the reputational risk for the Association. student Community- celebrating success in Wales Each July OU sludenls receive their module results and a celebration event for OU students in Wales was mooted by the outyoing AAR for Wales, Hanna Silk and incoming Deputy President. Garelh Jones to mark this important milestone. Page 7 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..39 88T{Lrrc +11 DV2 P 1Q143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 The event was hosted in the OU Wales office with staff and goodies provided by the Students Associalion's Community Team. The event was promoted to Welsh students via various ne￿O￿S and social media and total of 76 students attended. There was time for students lo ca)at and mingle over a cup of tea and cake, and staff were available to make them feel welcome and give infomialion on Student Support and Careers There was also a chance for students Lo share Uieir achievenienLs and reflect on Iiow far Éhey had Con￿. 820kn of attendees reported that the event had been fvn, helpful and connected them with other students. 91 % said they would recommend events like this to others and would attend something similar again. This was seen very much a5 a blueprint for celebration events in future years. It was a cost effective way of engaging wlh students, 5UPPOrting them in theirjoumey as well as promoting the work of the Association. InfoThing students- developing our communications strntegy We recognise in our strategic plan, our communications strategy is one of the key enablers in delivery of successful actsvities. events and dem¢xratic processes. Followng a rigorous procurement and consultation yocess in 2020121, work began in earnest in August 2022, with our new website prowder. MSL, to build our new website wNw.oustudents.com} went live in December 2021, ready for Conference 2022. Prlor to mlgratfon lo the new platromi, thorough evaluatson OT the exlstlng content, has led to substanttal improvements in layout, consolidation of information and consistency of presentation. making it easier to signpost on So￿al media and direct students in response to their queries. Although 50 far, we have seen a year on year reduckn'on in the total users of the new website, the number of page views per user is significanuy higher. Considemg this alongside lower bounce rates {leaving the site without navigating lo a different pagel suggests the user experience of the site is much improved. This also rrelales wqth eaty feedback we have had from students. Because of the site construction and design, it is also a much more cosl-effective solution as new features can be made available at nil or minimal additional cost. Members of the wider staff team are also able to maintain their own areas and even build webpages themselves, making the site much more dynamic. We are tracking our key performance indicators closely. working with developer5 to make further improvements to the site. In particular, we are working with MSL to resolve issues with the volunteer management and CRM tool Icustomer Relationship Management} that sits behind the website. This supports the recfuitment of volunteers and issues wth this key functionality have contributed to the decrease in volunteer numbers since January 2022. The Hoot, our online student magazine. continues lo attract an increasing number of visitOTS18,500 more than at the same point last year- a 43% increase). with the majority of articles written by students for students, covering a wide range of topics. In 2021, a total of 226 articles were published on the stte and we have already published 204 articles in the 7 months to July 2022 A comprehensive summary of our major activities and achievements during the year can be found in our Annual Reports to the Open University's Council. These can be viewed on our website. Page 8 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..40 88T{Lrrc +11 DV2 P 1tM3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 FINANCIAL REVIEW Principal Funding Source The Open Universtty is the main source of funding for the charity. by way of a subventIc￿ inflated annually to meet our core operating costs. Any additional funding requests require a costed business case to be submitted to the Uiiiversity for coiisideiation. The prO￿s5 of agreeing tlie subvention is set out iii the OU-OU Studenls Association Relationship Agreement. The financial slalements are provided to the University and are considered by the University's Finance Committee and goveming Council. Financial Reviow The Charity's total income and expendibjre for the year is summaTised in the following table. showing the movement in the pension deficit recovery provision separately, to facilitate year on year comparison of operating income and expenditure.. 2021- 2022 £'ooo 2020- 2021 £'ooo Operating Income 2.168 2.110 Operating Expenditure -2.024 -1.620 Net Operating Income 144 490 Pension Deficit Movement Total Movement in Funds -720 499 Operating income in 2021-2022. comprised mainly of the subvention grant provided by the University, increased by 30A compared with 2020-21. This wa5 in line wth expectations. Operating expenditure in 2021-2022 increased by 25% compared with 2020-2021. This was mainly due to planned 8ddition81 st8ffing recruited to support Conference management. Soth anniversary related acb.vity and work on the governance refomis. Although not as e&ly in the year as anticipated by the budget. some face-to- face meetings and other activity resumed in the third quarter of the year. There is an appeb.te lo come together in person but there is also recognition of the leaming from the pandemic that much of our activty works equally well online, or partty online and partly in person. Part of the in-year operats'ng surplus is due to timing. For example, we had anticipated beginning lo develop the student chat plafform towards the end of this year but look a bit more time in fvlly investigating the various options before deciding on the chosen provider. We have therefore designated funds from resetves to finance this wort in 2022-2023. Page 9 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..4188T{Lrrc +11 DV2 P 12143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 Reserves Policy Trustees review their reserves policy annually and through the year. monitor the level ol unrestricted funds that are freely available to spend on any of the Association's charitable PU￿￿se$. The aim of the policy is to ensure that charitable funds are spent on charitable purposes within a reasonable period of receipl, wliilst ensuring tlie level of resetves is sufficiei)I to safeguard financial stability in Lhe event of a significant adverse effect on income or material unèxpected expenditure. Unrestricted funds are defined as the surplus remaining of the Association's income. comprising donations without reslriclions lincluding the University block grant) or seff-generated (including trading income. TOTUM card commission, charges for services}, after accounting for all associated expenditure. They exclude funds that could only be realised by disposing of fixed asset5. Designated funds are part of unrestricted funds which Trustees have earmarked for a particular project or purpose, without restricting or committing the fvnds legally. The designation may be cancelled by the Trustees rf they later decide that the Assoaation shoukl not proceed or continue with the purpose or project for which fvnds were designated. Trustees have agreed that the minimum level of unrestricted reserves should be three months of ope¥ating costs. and that the tsrget level be sel at six months of operating cosls. For 2022-2023. the minimum level for the unrestricted reserve is £486.000. As at 31 July 2022. the Association's total unrestricted fund is £348.839. 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 2022. being £7.584 (see note 131. The unrestricted fund, before off-setting the long-temi provision relating to the USS pension deficit recovery. is £1.631,325. The provision1£1,282.485) is made in accordan￿ with the scheme requirements and is repayable. as part of the monthly employer pension contribution5, over 16 year5 to April 2038. This is unlikely to affect our cash reserves to the extent the provision suggests as the deficit recovery provision is part of the employer pension contribution provided for in our annual budget and supported by our subvention grant from the University, increased annually in line with infiation. Accordingly, the Board accepts the current level of total unrestricted funds is reasonable but will keep this under review. From the unreslricled reserve, £120,000, is designated, to fvnd projects and other fixed tenn costs in 2022- 2023 to supwrt progression of our strategic objectives. In determining an appropriate level of reseNe. the Association has considered the following factors- The Assoaation's critical core setvices for sludents. The level of risk in depending on the University for a continued core grant representing the vast majority of the Association's income. Flexibility to allow the Association to take advantage of strategic development opportunities and plan for future growth. Uncertainty over potential liabilities in respect of wr participation in the Unwersities Superannuation Scheme and future increases in the rate of employer contributions. The level of risk from our other income sources The level of risk of unforeseen operating costs. Provision for the costs of closure in the event of institutional failure. Page 10 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..42 88T{Lrrc +11 DV2 P 13143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 Material Investments Policy The Association's fijnding needs are largely mel by subvention fvnding negotiated with the University on an annual basis. Therefore, we do not rely on a return cn reseNes to fvnd our operations. Surplus funds are currently dewsited in an instant access deposit account with Natwest. earning interest below the rale of inflation, nieaning that tlie real value of our reserves is declining. Truslees reviewed tliei investments policy in July 2022. the key objectives of which are.. The Open University Students Assoaation seeks to produce the best financial retum that can be generated from low risk investments. The bulk of funds will be held as cashlcash equivalents, to ensure sufficient funds are readily available to meet unanticipated cashflow requirement5. If supported by cashflow forecasts. the Association may invest in longer term deposits or funds offering a higher yield, with the aim of gene￿tIng a return in excess of inffation. over the longer tem, to preserve the overall value of the asset. The Finance Resources and Risk Committee will research available options, referring any recommendations lo the Board. We will always ensure that any investment decisions are consistent with the Ass(Kiation's mission. vision and values and support the furtherance of our charitable objectives and stralegic aims. Going Concom After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concem basis in preparing the financial statements. Further detsils regarding the adoption of the going concern basis can be found in the Accounting Policies. The Association's funding 15 not impacted by the pandemic and the University has confimed an allocation for 2022-2023 in line wqth the grant awarded in 2021-2022. The Association's revenue eamed from merchandising Icurrentty via its online store) has more than covered its direct costs, contributing to the Association's overheads. Although turnover generated by online sales declined in 2022-2023, the resumption of graduation ceremonies in March more than compensated so that total income from trading exceeded 2020-2021. STRUCTURE. GOVERNANCE AND MANAGEMEKr Constitution The Open University Students Association is a charilable company limited by guarantee. registered with Companies Hou5e1120310281. wth the Charity Commission (England & Walesl,11183837) and with the Office of the Scottish Charity Regulator (OSCRI. {SC0495461. Nature of Governing Documenl- Articles of Association 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 charitable registration. We are a charitable company limited by guarantee and are therefore govemed by our Articles of Association, below which a sel of Bye Laws detail much of the day-to-day operation of the chanty. Our governing documents are publicly available on our website wMv.oustudenls.coml. Page 11 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..42 88T{Lrrc +11 DV2 P 14143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 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 places19 of the 12) are resetved for currenl OU students who are elected to the Board. The full composition is as follows= Three are ex-officio student members by virtue of their election to the AssocIatic￿ Officer roles of President. Deputy President and Vice President Administration. These are known as Officer Trustees. There are 6 additional Student Trustees, who stand lor election directly to the Board of Trustees. The final 3 places are for Extemal Trustees who are directty recruited via external advertisement lo add certain skills or experience to the Board from their professional backgrounds. The Board audits the skills required and these are sought through an open recruitment prO￿ss. Applicants are interviewed by existing Trustees with the support of the Chief Executive before preferred candidates are recommended by the Board to our Central Executive Committee for appointsment via a 75% majority vote. External Trustees must not be members of the Association, nor hold any elected or paid position wllhin either it or the Open University. An External TNstee cU￿entlY serves as the Chair of the Board. with our President serving as the Deputy Chair. The year to 31 July 2022 was the second year of the current elected Trustee term. The OU Students Association operates temis of two years for Trustees. Extemal Trustees are not subject to re*leclion and can be reappointed by the board for up to 4 tems. Elections for the OffI￿r Twstee and Student Twstee positions for the 2022 to 2024 term took place in March 2022 with the newly elected representatives taking office on 1 August 2022 for their ￿0-year tem. We are currenUy finalising recruitment to 2 Extemal Trustee vacancies. A by*lection will be held in the Autumn to fill the remaining Student Trustee vacancy. All Trustees are limited to serving a maximum of 8 years in total, in line with the guidance in the Charity Governance Code. Policies Adopted for the Induction and Training of Trustees Followng election or appointsnenl all Trustees participate in a comprehensive induction process which includes a one-to-one the Chair of the Board,. a meeting with our Chief Executive to cover the wider organisation. charitable objecls, requirements of the Articles and sector good practice- a session with our strategy lead covering the organisalional strategy, KPIS and strategic projects- and finally a session with our Head of Finance and Resources covering the organisation's finances and reseNes. In addition to this initial induction, we also arrange for briefing session5 to be delivered for Trustees from our extemal auditors and legal advisors. New Trustee5 also observed the current Board's Juty meeting. All Trustees are provided wth ccpie5 of the Articles, the Bye-law5, Charity Commission guidance and the Charity Governan￿ Code. In addition, Trustees are able and encouraged to ma(e use of the National Council of Voluntary Organisations {NCVOI's online training packages and events in addition lo further resources from the Charity Finance Group. We are members of both organisations. Other relevant courses, provided by external training promders, are signposted lo Trustees from lime to time, including charity updates provided by our professional advisers. Pay Policy for senior stsff The OU S￿dents Association has adopted the Open University's salary grades and annual pay review policies. All roles within the staff team are graded using the benchmarks provided by the Higher Education Roles Analysis IHERAI scheme. There are significant advantages in using a nationally negotiated scheme, which Page 12 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..43 88T{Lrrc +11 DV2 P 15143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 provides benchmarking across the sector and provides staff of both the University and the Students Association with a straightforward comparison of roles and respcnsibilities. In setting the salary grades of the senior management roles the Trustees consider the objects and values of the OU Students Association, the local employment matl(et, 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 propot1¢oiiate level of tlie salaries relative to olher grades wilhiii Lhe staff team, affor(Jability 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 paid to the President and Deputy President 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 lunpaidl, the President and Deputy President from the elected student leadership team, and the Senior Leadership Team comprised of the Chief Executive, Director of Engagement and Director of Membership Services. The sum of the salaries (inclusive of employer national insurance and pension contributions) relatsng to the five paid Toles in the period was £250,24112021 £250.6261. Organisational Slrucluro and Declsion Making The Board of Trustees are uftimately responsible forlhe govemance of the Students Association including all matters relating to staffing, finance. governance and strategy. Howevei. in keeping wth ouf peeT Otganisalions in the wider student movement we have not abandoned the principle of having a wider representation of student views in all key policy decisions and ensuring that we are under the democratic control of our membership. Therefore, the Central Executive Committee is the key body for considering. debating and contributing to policy development and review. The Committee features representation from across our regions and nations, across the University's Faculties, our poslholders with specrfic responsibilities for a sel portfolio Ilhe Association's Officers) and our student member of the Open Universty's goveming Council. All decision making in the Students Assoryalion is subject lo record and scrutiny. Our Central Executive Committee and the Board of Trustees are required lo publish their minutes lo 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. Exceptions are made for genuinely confidential or sensitive matters. in both the minutes and the publishing of papers. The Board of Trustees delegates resF)onsibility for the day-to-day management of the organisalion to the slaff team under the direction of the Chief Executive. Such delegation includes the management of staffing and financial matters within the parameters agreed by the Trustees. We invite observers from the Central Execut5ve Convnittee to Trustee meetings and observers from the Board of Trustees to Central Executive Committee meeting5. This has been well received and usefijl for all involved. In addition, the Chair of the 8oard also meets wth both the Central Executive Committee and the staff team on a regular basis to keep in touch wth their work and provide the opportunity for questions. The Board of Trustees currently has sub-committees= Finance Resources and Risk,. and Appointments. It also has a Safeguarding Panel. These operate within their delegated tem)s of reference, supporting and reporting to the full Board. Page 13 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..44 88T{Lrrc +11 DV2 P 16143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 Relationship to Wider Network of Students Unions At present we are not fomially affiliated to the National Union of Students INUS). but we do enjoy a relationship which enables our organisations lo collaborate where it is ol mutual benefit. This allows our students lo access the TOTUM card for discounted purchases. We also maintain relatsonships with other Student Unions where appropriate and relevant, including for go¢JJ practice visits and exchanging infomation. Our relationship with Athabasca Universty Students, Union and Graduate Students, Ass(Kiation has been embedded through the creation of the International Distance Learning Student Forum (IDLSFI. The IDLSF is a non-mandalory quartedy meeting where elected student leaders and staff from across the organisations come together to discuss best practice and share experienees. Recent topics include community building- Equality, Diversity. Inclusion IEDII., and priority setting. Related Party Relationships The Open University Students Educational Trust also known as OUSET, is a separately registered chanty {2851891SC038300) with management and adminislralion provided by the ASSO￿atIon. It was set up by the students Associab'on in 1982 to advan￿ the education of the public by providing financial support to 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 pos¢tions they hold, or used to hold. in the Open University Students Associalion. This indudes trwo current Trustees and our Chief Executive who acts as a Trustee of OUSET. We work to raise funds for OUSET and also provide the necessary administrative support for it lo operate in return for payment of a management charge. As a separate challty, OUSET has filed its own report and financial statements for the period. We reixive our operating funds in the fotm of a subvention from the Open University IOU) which is an exempl charity in England & Wales and a registered charity in Scouand SC038302. Under its Royal Charter the OU has a duty to make provision for an independent sbJdent5' organi5ation and under the 1994 Education Act the OU ha5 a statutory duty to ensure that the S14Jdents A550cialion operates in a fair and democratic manner and 15 held lo account for its finances. The Students Association therefore work5 alongside the University in ensuring that the affairs of the Students Association are property conducted and that the educational and welfare needs of members are met. We provide an annual report to the University Counal and our finanaal statements are scrutinised by the Universitys Finance Committee. A relationship agreement btheen 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 lo Note 25. Risk Management The Trustees are aware that they have a duty to identify and review the risks lo which the charity is exposed and lo ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Risks are assessed in accordance with our pjlicy and regularly reviewed. Our risk register identFfies the following prinapal risk5= Reduced effectivenes5 of the Board of Trustees due to vacancies-, Negative impact on the Association's reputation and exlernal presence arising from complaints andlor negative Press coverage. Ineffective representation of the studenl membership due lo vacancies in the student leadership team andlor wor engagement from those elected to portfolios. Difficulty recruiting to both staff and volunteer vacancies impacting se￿iCe delivery and adding to costs. Reliance on The Open University for our core fvnding. We have miligaling actions in place. as far as possiue. for these and all other risks recorded in our risk register. We continue to scan the horizon for other potential risks. Page 14 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..45 88T{Lrrc +11 DV2 P 17M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 PLANS FOR FUTURE PERIODS 2022-2023 is the final year of our current strategic plan so as well as completing projects already underway or abo￿ to be started. WOTk will begin early in the new calendar year on developing our goals and objectives foT the next five years. s￿ne of our key focus areas for the next 12 nionths at least include. New ways of W0￿1ng Followng a long period of uncertainly as a result of changing legislation and restrictions related lo Covid 19, our staff team proved their ability to work effectively from home. As society has opened up, there has been desire to return to face to face for some of our work, in parbcular grad4Jations, student facing events and some team building and training opporiunities for volunteers. We are keen to make the most of the efficiencies and cost savings achieved as a result ofthese new ways of working. As a team we are trialling a hybrid model of working to support us in gaining the benefits of a dual approach where individuals are free lo WO￿ from home but come together when there is tangible benefit or a business need. We are developing a set of guiding prinaples to support these decisions and ensure we are maximising efficiency and achieving value for money for Students. with a focus on offering valuable in-person experiences focused on quality not quantity. annhiersary Although the celebrations of our 50th anniversary wll come to a close in December 2022, fijndraising for OUSET towards the £50,000 target will continue until May 2023, as this was launched on the Association's official birthday, 16 May 2022. As a lasting legacy ofthe 50th anniversary, attention Mqll tum to our ongoing fijndraising strategy and the resourcing needs for this. student chat platfomi Following on from extensive research in 2021-2022, induding a Test and Learn project sponsored by the Open University that involved student interviews and market research. we are now embarked on a year-long pilot project wth our chosen provider to develop a student app. The project aims to briThJ OU students together in a safe, intuitive platfomi. We are aiming lo launch to students earfy in 2023 and there will be opportunities for volunteers lo moderate the platfomi. We hope the project wll be transformative for the Association in terms of our ability to engage with our members. student Support- Peer Support SeThlce Revlew In furthering our aim to provide relevant and high-quality services for students. we are also currenuy reviewing our Peer Support service. We will be collecting views from students, via focus groups and sutveys to understand how today's students would like to be supported, as well as ensuring we have a dear understanding of the support needed by our volunteers who deliver the service to their fellow students. In lime. we hope to move this service from the forums to the student app to improve the experience for both volunteers and students seeking support. P05tgraduate and International Students The Student Community team, together wth Strategy and Insights will conduct research lo understand how the support needs of postgraduate andlor international students may differ from our current support available lo all students. Page 15 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..46 88T{Lrrc +11 DV2 P 1a143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022 student Representatlon With the induction of newly elected representatives having taken place in June and July. a fonmal handover weekend is planned for early September. Representatives are w0￿1n9 together, with support from the staff team, to fully understand their roles and to co-ordinate the aims articulated in each of their manifestos. identifying synergies. priorities and support needed ID achieve their goals. The new team will also be reviewing the extemal consultant's govemance refomi recommendations and deciding which to act on. student VolunteenTng A fijndamental revÉew will take place of all processes related to attracting. recruiting. training. engaging and recognising our wonderful volunteers. To further support our volunteers, we are developing a volunteer wellbeing strategy. Communications Furthering our communications strategy, VP Engagement, supported by the Digital Communications team. plans to seek more student generated content lo ensure our communications are relevant lo the sludent demographic. We also want lo keep students more regularty inforrned, via a variety of channels, about seNices, opportunities to get involved, democratic processes and more. Comms Champions have volunteered across the staff team lo play an active part in this. Training is about to Start and then the Digttal Communications team wll begin the transition. These are just a small selection of some of our plans for 2022-2023. There are many more plans for the forthcoming year included at the rear of the Annual Report to the Open University's Council. ENVIRONMENTAL IMPACT The Open University Students Association is committed to working towards environmental sustainability- Environmental impact is a key consideration in planning our operations and activities post-pandemic. During the yeaT, we established the OU Students Association Environmental and Sustainability Working Group comprised of Central Executive Committee members, Association staff and the Chair of the Open University Environmental and Sustainability Soaety. The purpose of this group is to= Explore the impact the Students Association ha5, through it5 working practices. on environmental sustainability, and make recommendations for improvement- Develop, recommend for adoption and publish, a Student Association en￿ron￿ntaI sustainability policy statement., Liaise wth the University on its approach to environmental 5UStainability and develop guidelines for Student volunteers to support their interacticns with the OU. Examine current position statements of the Students Association for their compats'bility with OUT environmental sustainability goals. Page 16 VkiuaBunatLnTrarffjxlvM Ref. N5rr.sw3Y.7￿￿ 26 OGI 2022 16..30..46 88T{LITC +110212 P 19M3 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guaranlee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 JULY 2022 The Trustees (who are also the directors of the charity for the purposes of company lawl are responsible for preparing the Trustees, report and the financial statements in accordance wth applicable law and United Kingdom Accounkn"ng Standards (United Kingdom Generalty Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Tnjstees must not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the charity and of its incoming resources and application of resources. including its income and expenditure. for that period. In preparing these financial statements. the Trustees are required to_. select suitable a¢￿Unting polictes and then apply them consistently-, observe the methods and principles of the Charities SORP IFRS 102}- make judgments and accounting estimates that are reasonable and prudent." state whether applicable UK Accounting Standards IFRS 1021 have been followed. subject to any material depariures disclosed and explained in the finanrAal 5tatements', prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Charty wll ￿ntinue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and discfose wrth reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial staternents comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitses. Approved by order of the members ofthe board of Trustees and signed on its behalf by: M Bry¢uv Greenaway President M Bryan VP Administration Date.. 26 October 2022 Page 17 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..47 88T{Lrrc +11 DV2 P 2Q143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) INDEPENOENT AUDrroR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERsrrY STUDENTS ASSOCIATION Opinion We have audited the financAal statements of The Open University Students Association Ithe 'charity'l for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet, the statement of Gash flows and the related notes, inGluding a summary of signrficant aGGounting poliGies. The finanGial reporting framework that has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporbng Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice}- In our opinion the finanaal statements.. give a true and fair view of the slate of the charitable company's affairs as at 31 July 2022 and of its incoming resources and application of reSoUr￿s, induding its income and expenditure for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Charitie5 Act 2011, the Charities and Trustee Investment {Scotland} Act 2005 and regulation 8 of the Charities Accounts {SCo￿and} Regulations 2006. Basis for opinion Vve wnducted OUF audit in accgrdance with International Standard5 on Auditing (UK) IISAs IUKII and applicable law. Our responsibilities under those standards are fijrther described in the Auditorfs responsibilities for Ihe audrt of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom. including Ihe Financial Reporting Council's Ethical Standard. and 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 Ouf opinion. Conclusions relating lo going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparats.on 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 Ihat. individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least tr￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this report. Page 18 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..48 88T{Lrrc +11 DV2 P 21143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) INDEPENOENT AUDrroR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERsrrY STUDENTS ASSOCIATION (CONTINUED) Other information The other infomiation comprises the irrformation included in the annual report other than the financial statements and our audÉtorfs report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the finanGial statements does not Gover the other information and, except to the extent otherwise explicitly stated in our report. we do not expres5 any fomi of assurance conclusion thereon. Our responsibility is lo read the other infomialion and, in doing so, consider whether the other information is materially inconsistent wqth the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial statements themselves_ If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by Companies Acl 2006 In our opinion. based on the work 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 Trustees. report ha5 been prepared in accordance with applicable legal requiremerrt5. Matters on which we are required to report by exception In the light of our knowledge and understanding of Ihe charitable company and its environment obtained in the course of the audit, we have not identffied material misstatements in the Trustees. report. We have nothing to report in respect of the followng matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland} Regulations 2006 las amended) require us to report to you if, in our opinion.. the parent charÉlable company has not kept adequate and sufficient accounting records, or retums adequate for our audit have not been received from branches not visited by us., or the parent charitable company finan￿al statements are not in agreement Mith the accounting records and retums., or certain disclosures of Trustees, remuneration specified by law are not made- or we have not received all the information and explanations we require for our audit- or the Trustees were not entitled to prepare the financial statements in accordance wth the small companies regime and take advantage of th? small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a Strategic report. Responsibilities of trustaes As explained more fijlly in the trust￿, responsibilities statement, the Trustees (who are a150 the directors of the charitable company for the purpose5 of company lawl are responsible for the preparation of the finarkcial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees delemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's abilty to continue as a going concem, disclosing. as applicable, matters related lo going concem and using the going concern basis of accounling unless the TNslees either intend to liquidate the charitable company or to cease operations, or have no realistic altemats've butto do so. Page 19 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..49 88T{Lrrc +11 DV2 P 22143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) INDEPENOENT AUDrroR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERsrrY STUDENTS ASSOCIATION (CONTINUED) Auditorfs respon5ibilitie5 for the audit of the financial statements We have been appointed as auditor under section 4411 Ilcl of the Charities and Trustee Investment Iscodandl Act 2005 and under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effeGt thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wqlh ISAS IUKI wqll abNays detect a material misslatemenl when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these finanaal statements. Because of the inherent limitations of an audit, the￿ is a risk that we wll not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more Ihal compliance wlh a law or regulation is removed from the events and transactions rellected in the financial statements. as we wll be less likely to become aware of instances of non-compliance. The risk 15 a150 greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery. collusion. omission or misrepresenLition. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows.. Enquiry of management and those charged with govemance around actual and potential litigation and claims- Enquiry of management and those charged with govemance to identify any material instances of non- compliance with laws and regulations- Reviewing finan￿al statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations., Performing audit worf( lo address the risk of irregularities due to management override of controls. including testing of joumal entries and other adjustments for appropriateness. evaluating the business rationale of signtficant transactions outside the nomial course of business and reviewing accounting estimates for evidence of bias. A further description of our re5ponsibilitie5 for the audit of the financial sLitementS 15 located on the Financial Reporting Council's website at: www.frc.or .uklaudilor5res nsibilities. This description forms part of our auditor's repoTL Page 20 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..50 88T{Lrrc +11 DV2 P 23143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) INDEPENOENT AUDrroR'S REPORT TO THE MEMBERS OF THE OPEN UNIVERsrrY STUDENTS ASSOCIATION (CONTINUED) Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable companvs trustees. as a body, in accordance with regulation 10 of the Charities AcGounts locotlandl Regulations 2006. Our audit work has been undertaken so that we might Stale to the charitable company'5 members and Trustees those matters we are required to sLite to them in an auditoV5 report and for no other purpose. To the fijllest 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. Darren O'connor Bsc {Honsl FCCA ACA {senior statutory auditor) for and on behalf of James Cowper Kreston Chartered Accountants and s￿￿UtOry Auditor Reading Bridge House George Street Reading Berkshire RGI 8LS Date.. 26 October 2022 Page 21 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S188T{Lrrc +11 DV2 P 24143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDrruRE ACCOUNTI FOR THE YEAR ENDED 31 JULY 2022 Unrestricted funds 2022 Total funds 2022 Total funds 2021 Note Income from: Donations and legacies Charitable activities 1,987,01)0 100,756 79.450 921 1,987,000 100,756 79.450 921 1,963,200 77,678 69,121 162 Other trading activibes Investments Total income 2.168.127 2,168.127 2,110,161 Expenditure on: Raising funds Challtable activities 68,602 2,819,876 68,602 2.819,876 61,868 1,548.967 Total exponditure 2.888,478 2,888.478 1,610,835 Net rnovemont in fund5 1720.351) 1720.3511 499.326 Reconciliation of funds: Total fund5 brought forward Net movement in funds 1,076,775 1720,351) 1,076.775 1720.3511 577.449 499.326 Total funds carried forward 356,424 356.424 1,076,775 Page 22 VkiuaBunatLnTrarffjxlvM Ref. N5rr.sw3Y.7￿￿ 26 OGI 2022 16..30..52 88T{LITC +110212 P 2W43 THE OPEN UNIVERSITY STUDENTS ASSOCIATION (A company limited by guaranlee) REGISTERED NUMBER: 12031028 BALANCE SHEET AS AT 31 JULY 2022 2022 2021 Note Fixed assets Tangible assets 13 7.584 4.814 7.584 4.814 Cu￿ent assets StOGks 14 30.124 47.590 1.681.348 18.007 34,192 1,502,483 Debtors 15 Cash at bank and in hand 1.759.062 1,554,682 Creditors- amounts falling due within one year 16 1127.7371 (64.2071 Net currenl assets 1.631.325 1.490.475 Total assets less current liabilities 1.638.909 1.495.289 USS pension scheme defficit recovery provision 23 (1,282,485) (418,514) Total net assols 356,424 1,076,775 Charity funds Unrestricted funds Designated funds General funds 18 120,000 236,424 243,000 833,775 18 Total unrestrrcted funds 18 356,424 1,076.775 Total funds 356,424 1,076,775 The financial statements have been prepared in accordance wth the provisions applicable to entitie5 subject to the small companies regime. The financial statements were approved ar￿ auth0ri5ed for issue by the Trustees and signed on their behalf by: Greenaway President M Bryan VP Administration Date: 26 October 2022 The note5 on pages 25 to 41 fomi part of these financial statements. Page 23 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S3 88T{Lrrc +11 DV2 P 26143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022 2022 2021 Note Cash flows from operating activiti8s Net cash used in operab.ng ath"vits"es 20 185,253 473,524 Cash flows from investing aclivities Interests from investments Purchase of tangible fixed assets 921 17,309) 162 (767) Net cash used in investing activities 16.388) (6051 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 178,865 472.919 1.502,483 1,029,564 Cash and cash oquivalents at the ond of the year 21 1.681,348 1,502,483 The notes on pages 25 to 41 fomi part of these financial statements Page 24 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S4 88T{Lrrc +11 DV2 P 27143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 General information The Open University Students AssocAation Limited is a charitable company limited by guarantee. It 15 registered in England and Wales wth charity registered number 1183837 and in Scotland charity registered number SC049546 and ￿MpanY registered number 12031028. The Principal activity of the charity is running a 5tudenls' association for students wthin the Open Universtty. Accounting policies 2.1 Company slatus The charity is a company limited by guarantee. The company law members of the compary are the Trustees named on page 1. In the event of the charity being wound up. the liability in respect of the guarantee is limited to £1 per company law member of the charity- Student Members of the Association are not included in this liability- 2.2 Basis of preparation of financial statemen1$ The financial statements have been prepared in accordan￿ with the Charities SORP IFRS 1021- Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Irelaiid IFRS 102) (effective 1 Jaiiuaiy 20191. Ilie Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021. the Companies Act 2006, the Charities and Trustee Investrnent Iscouandl Act 2005 and the Charities Accounts (Scotlandl Regulations 2006 {as 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 othewse stated in the relevant accounting policy. 2.3 Income Subvention income is recognised once the Charity has entrtlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliabty- Income from charitable activtties comprises of management charges and NUS TOTUM card commission and is recognised once the charity has entitlement to the income, il is probable that the income will be received and the amount of income can be measured Teliably. Income from other trading income activities represents income generated by the sale of nierchandise. Donated facilities are included at the value lo the charitable company where this can be quantffied and a third party is bearing the cost. No amounts are included in the financial statements for setvices donated by volunleers. Page 25 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S5 88T{Lrrc +11 DV2 P 2a143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Accounting policies {conlinued) 2.4 Expenditure Expenditure is recogni5ed once there is a legal or constructive obligation to transfer economic benefrt to a third party, it is probable that a transfer of economic benefits wll be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct cost5 and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated direcUy to that activity. Shared costs which contribute lo more than one ath.vity and support costs which are not attn"butable to a single actimty are apportioned behveen those acb"vits"es on basis consistent Mqth the use of resources. Central staff costs and depreciation are allocated directly on the basis of staff directly attributable lo each activity. Govemance costs are audit, accountancy and Board of Trustee costs. Costs of generating funds are costs incurred in attracting voluntary income. and those incurred in trading activities that raise funds. Charitable activities and Govemance costs are costs incurred on the Charity's educational operations, induding support Costs and costs relating to the govemance of the Charity apportioned to charitable activities. 2.5 Tangible fixed assets and depreciatio Tangible fixed a55et5 are initially recogni5ed at cost. After recognition, under the cost model. tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impaimient losses. Al costs incurred lo bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their re￿dUal value over their estimated useful lives, using the slraight-line method. Depreciation is provided on the followng bases= Fixtures and ffttings Computer equipment Display boards 20% straight line 20% and 33&kn straight line 20% straight line 2.6 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock5. 2.7 Debtors Trade and other debtors are recognised at the settlement amount after any trade discourrt offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.8 Cash at bank and in hand Cash al bank and in hand includes cash and short-temi highly liquid investments wf(h a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 26 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S5 88T{Lrrc +11 DV2 P 29143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Accounting policies {conlinued) 2.9 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 eGonomiG benefft will be required in settlement. and the amount of the settlement can be estimated reliably. 2.10 Financial instrumenls The charity only has financtal assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 2.11 Pensions The institution participates in the Universities Superannualion Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual in5titLElions and a scheme-wide contribution rate is set. The institulHJn is therefore exposed to actuarial risks associated with other inslitution5' employees and 15 unable to identsfy it5 share of the unded*ing asset5 and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 "Employee benefits., the institution therefore accounts for the scheme as rf it were a defined contnbution scheme. As a result, the amount charged to the statement of financial activities represents the contributs'ons payable to the scheme. Since the Insti￿*10￿ has entered into an agreement (the Recovery Plan) that detemines how each employer within the scheme wll fund the overall deficit, the instilulion recognises a provision for the contributions payable that arise from the agreement Ilo the extent that they relate to the deficit) with related expenses being recognised through the statement of financial aclivilies. See Note 23 for further details of the Universilies Superannuation Scheme. 2.12 Fund accounting General funds are unTeslricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purwses. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial statements. Page 27 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..56 88T{Lrrc +11 DV2 P 3Q143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Critical accounting estimates and areas of judgment Estimates and judgment5 are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The charity makes estimates and assumption5 concerning the fijture. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumpb.ons that have a significant risk of causing a material adjustment lo the carying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgment= Pension Commitments FRS 102 makes the distinction bet¢4een a group plan and a mulli-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi- employer scheme is a scheme for entities not under common control and represents {typically) an induslry-wide scheme such as Universities Superannuation Scheme. The trustees are satisfied that the scherne provided by Universities Superannuation Scheme meets the definition of a multi-employer scheme. The amounts due in respect of the deficit recovery plan relalirkg to this scheme. as recommended by actuaries and subject to actuarial assumptions. are included within the balance sheet as 8 provision and this reflects the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving the finanaal statements. Incorne from donations and legacies Unrestricted funds 2022 Total funds 2022 Total funds 2021 Subvention income 1,865,000 70,000 52,000 1.865,000 70,000 52,000 1.812.000 67.000 9.700 71,000 3.500 Donated services Individual representation project income Exam paper replacement income Other grants Total 2022 1,987,000 1,987,000 1,963.200 Total 2021 1,963,200 1,963,200 Page 28 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..¥188T{Lrrc +11 DV2 P 31143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Incorne frorn charitable activities Unrestricted funds 2022 Tolal funds 2022 Total fiJnd5 2021 Management charges to The Open Universty Students. Educational Trust NUS TOTUM Commission 51.254 29.489 20,000 13 51,254 29,489 20,000 13 42,507 35,158 Fundraising for OUSET other Income 13 Total 2022 100,756 100,756 77,678 Total 2021 77,678 77.678 Ineome from other trading activities Incorne from non charitable trading activities Unrestricted fund$ 2022 Total funds 2022 Total funds 2021 Sale of merchandise 79,450 79,450 69,121 Total 2021 69,121 69,121 Investmfrnl incomo Unrestrictod funds 2022 Total nds 2022 Total funds 2021 Bank deposit 921 921 162 Total 2021 162 162 Page 29 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..58 88T{Lrrc +11 DV2 P 32143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Expenditure on raising funds Raising funds oxpenditure Total funds 2022 Total funds 2021 OU Shop 2022 Cost of sales 34,775 25.882 7,945 34,775 25,882 7,945 30.042 24,914 6.912 Other Staff costs Total 2022 68,602 68,602 61,868 Total 2021 61,868 61,868 Analysis of expenditur8 by activities Siaff (direct and SUPPOrt) 2022 Othèr direct costs Othèr SUPPOrt costs Governance Total funds Total funds 2022 2022 2022 2022 2021 Student services and support Student representation Student community student volunteering Culture project and govemance refomi 50th anniversary Conference 60g,437 350,023 270.460 169,170 10,707 65,646 5.293 17,713 77,181 48,243 33,139 21,788 9,055 5,660 3,888 2.556 706,380 469,572 312,780 211,227 562,597 400.777 316.728 198.239 75,059 41,543 41,543 30,831 42,139 9,774 6,053 3,712 3.712 710 112.653 87,829 55,464 79,296 435 435 USS pension deficit movement 860,330 3,641 863,971 {8,670) 2.417,565 185.744 193.828 22.739 2,819,876 1.548.967 Page 30 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S9 88T{Lrrc +11 DV2 P 33143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Support costs Total funds 2022 Total funds 2021 Direct costs Governance 2022 2022 2022 Staff Costs and USS ponsion deficit movement Professional services 1.816,993 62,136 600,572 55,485 2.417,565 117,621 1,278,395 81.516 Central office costs and USS pension deficit interest charge Donations to OUSET 10,693 40,000 29,928 24,091 14.448 103,878 114571 40,000 32,268 25,310 23,476 20,400 15,508 7,884 4255 1,018 99.182 Meeting costs Events and activities 2,340 854 3.952 21,837 22,416 9.587 14.603 15,410 1,215 1,219 9,028 Training and development Audit 20,400 other staff related costs Printing and publicity Subscriptions and affliliations Grants to societies 198 1541 3,373 1,018 15,310 7,938 882 Total 2022 2,002,824 22,740 794,312 2,819,876 1,548,967 Total 2021 820,754 22,416 705,797 1,548,967 10. Auditorfs remuneration 2022 2021 Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 20,400 19.440 Fees payable to the Charity's auditor in respect of= Al non-audit Services not included above 2,976 Page 31 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..30..S9 88T{Lrrc +11 DV2 P 34143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 11. Staff costs 2022 2021 Wages and salaries Sccial security costs Contribution to defined contribution pension ￿heMeS USS pension scheme deficit recovery provisicm costs 1,229,651 106,474 229,055 860,330 1,021,633 91.150 184,312 111,788) 2,425,510 1,285,307 For more details C￿ the defined benefit pensicm scheme provision costs see notes 17 and 23. The average number of persons employed bythe charity during the year was as follows.. 2022 No. 2021 No. Avewe employees 36 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2022 2021 In the band £70.001- £80.000 Key management personnel for the year ended 31 July 2022 con51St 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. Total remuneration in respect of key management personnel for the year ended 31 July 2022 is £250.241 {2021= £250,626). 12. Trustees. remuneration and expenses During the year, no Trustees received any remuneration or other benefits {2021.' £nill in relation to Iheir role as a Trustee. During the year 2021, 2 Trustees received remuneration in respect of their role as President and Deputy President12021'. 2 Trustees). The value of TNstees' remuneration and other benefits was as follows.. 2022 2021 I Cheyne S Jones Remuneration Remunerats'on 16,288 28,478 15.824 27.183 During the year ended 31 July 2022, expenses totalling £3.455 were reimbursed or paid directly to 7 Trustees12021- £265 to 5 Trustees). Page 32 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31.'1)J 88T{Lrrc +11 DV2 P 35143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 13. Tangible fixed assets Office equipment Computer Other fixed equipment assets Total Cosl or valuation At 1 August 2021 Additions 13.276 24930 7.309 31.403 69.609 7.309 11,519 Disposals At 31 July 2022 13,276 30,720 31,403 75.399 Depreciation At 1 August 2021 Charge for the year On disposals 11,301 1,282 22.091 3.257 11.5191 31,403 64795 4.539 11.519} At 31 July 2022 12.583 23,829 31.403 67.815 Not book value At 31 July 2022 693 6,891 7,584 At 31 July 2021 1.975 2.839 4.814 14. Stocks 2022 2021 Finished goods and goods for resale 30,124 18.007 15. Debtors 2022 2021 Due within on8 year Trade debtors Amounts owed by the Open University Prepayments and accrued income 4,085 13,855 29,650 6,721 18,335 9,136 47,590 34.192 Page 33 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31..0188T{Lrrc +11 DV2 P 36143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 16. Creditors- Amounls falling due within one year 2022 2021 Trade creditors Other taxation and wcial Security Other creditors Accruals and deferred income 8,251 5.497 50,175 63,814 8,372 2,352 13,923 39,560 127,737 64,207 17. Provisions The obligation to fund the past deficit on the Universities Superannuation Scheme IUSSI arÉses from the contractual obligation USS lo make def￿11 payments in accordance with the deficit recovery plan. The provision has been calculated by estimating future employer pension payments and applying the deficit recovery contributions. These were outlined in the USS deficit recovery plan arising from the March 2017 actuarial valuation {published February 2019), amended firstly by the March 2018 actuarial valualion (published September 20191 and then amended by the March 2020 actuarial valuation (published Septernber 2021). The weighted average discount factor that has been applied over the remainder of the deficit recovery plan is 3.31%12021'. 0.87%}. More details on the 2020 actuarial valuation are sel out in Note 23. At 1 August 2021= £418.514 USS pension deficit interest charge.. £3,641 Contributions charged: £860,330 At 31 July 2022: £1,282,485 Page 34 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿-sw3Y-7RJy 26 Ocl 2022 16..31..03 88T{Lrrc +11 DV2 P 37143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 18. Statement of funds Statement of funds - current year Balance at 1 August 2021 Transfers Balance at inlout 31 July 2022 Income Expenditure Unrestricted funds Designated funds Trustee projects Conference and association 50th Strategy delivery Culture and governance rewew 30.000 30.000 88,000 95,000 30.000 {53.000) {54,000) {31.000) (10,000) 9,000 16,000 25.000 50,000 15.000 243.000 1138,000) 5,000 120.000 General funds General funds 1.252.289 2.168.127 (1.886.507) (15,000) 1.518.909 USS pension scheme deficit recovery provision (418.5141 1863.9T1) 11.282.485} 833.775 2.168,127 (2,750,478) (15,000) 236.424 Total Vnrestricted funds 1,076,775 2,168.127 (2.888,478) 356,424 Page 35 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31..04 88T{Lrrc +11 DV2 P 3a143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 18. Statement of funds Icontinuedl Statement of funds - prior year Balance at 1 August 2020 Transfers Balance at inlout 31 July 2021 Income Expenditure Unrestricted funds Designated funds Trustee projects Conference and Association 50th Strategy delivery Culture and governance rewew 50.000 {6,7201 (13.2801 30.000 88.000 64,805 30,200 88.000 95,000 30.000 86,000 25,000 155,8051 {25,2001 161,000 187,7251 169,725 243,000 General funds General funds 843.633 2.110.161 (1.531.780) (169,7251 1,252.289 USS pension scheme deficit recovery provision (427.1841 8,670 (418.514) 416,449 2.110.161 11.523,1101 {169.7251 833,775 Total Vnrestricted funds 577,449 2,110,161 {1.610,8351 1,076,775 Page 36 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31..C6 88T{Lrrc +11 DV2 P 39143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 19. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2022 Total funds 2022 Tangible fixed assets Current as5et5 Creditors due within one year Provisions for liabilities and charges 7,584 7,584 1.759.062 1.759.062 1127.737) 1127.737) 11,282.485) (1.282.485) Total 356,424 356,424 Analysis of net assets be￿80n funds - prior year Unrestricted funds 2021 Total funds 2021 Tangible fixed assets Current assets 4.814 1.554,682 (64,2071 {418,5141 4,814 1,554,682 164,207) (418,514) Cred¢tors due within one year Provisions for liabilities and charges Total 1,076,775 1,076.775 Page 37 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31..C6 88T{Lrrc +11 DV2 P4Q143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 20. Reconciliation of net rnovernenl in funds to net cash flow from operating activities 2022 2021 Not incomo1oxpondituro for tho year las por Statomont of Financial Activities) {720,351) 499.326 Adjustments for.. Depreciation charges Interests from investments Decreasellincreasel in stocks Decreasellincreasel in debtors Increaselldecreasel in creditors Pension provision 4539 {921) (12.117) (13,398) 63,530 863,971 3,662 1162) 7.233 98.752 (126,617) 18,670) Net cash provided by operating activities 185,253 473,524 21. Analysis of cash and cash equivalents 2022 2021 Cash in hand 1,681,348 1,502,483 Totsl cash and cash equivalents 1,681,348 1,502,483 22. Analysis of changes in not d8bt At 1 August 2021 Cash flows At 31 July 2022 Cash at bank and in hand 1,502,483 178,865 1,681.348 1.502,483 178,865 1,681,348 The cash flows movement of £178,865 shown above is the net cash provided by operating activities of £185.253 per note 20. and the net cash used in investing aclivits'es of (£6.3881 per the statement of cash fiows. Page 38 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿-sw3Y-7RJy 26 Ocl 2022 16..31..07 88T{Lrrc +11 DV2 P41143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 23. Pension cornmitments The charity partiapates in the Universities Superannuation Scheme IUSS). a defined benefit scheme which was contracted out of the Slate Second Pension {S2PI 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 charity is unable to identfy its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore. as required by FRS 102, accounts for the scheme as if it were a defined contribution scheme. As a resuk, the amount charged to the statement of financial activrties represents the contribub.ons payable to the scheme in respect of the accounb.ng period together with the adjustment reflecting its commitment to make payments under the deficit recovery plan as ouuined later in this note. The fund is invested in a wide range of asset dasses. both publicly traded (including equities and fixed income) and private (including private equity, infrastructure. propeity and timberland}. A diversified portfolio helps to spread investment risk across different assel classes and boost the level of confidence in maintaining sufficient investment relums fr(￿ the funds as a whole. USS actuarial valuation The latest available complete actuarial valuation that 15 included in the Statement of Financial Position 15 as al 31 March 2020, which was carried out using the projected unit method. This is the sixth valuation for USS under the new scheme-specific fijnding regime inlr¢)duced by the Pensions Act 2004. which requires schemes to adopt 8 Statutory funding objects"ve, which is to have sufficient and appropriate assets to cover their technical provisions. The value of the assets of the scheme as at 31 March 2020 {the valuation datel was £66.5 billion and the value of the scheme's technical provisions wa5 £80.6 billion indicating a deficit of £14.1 billion and a funding level of 83%. The level of the scheme deficit has led to changes in the deficit recovery plan agreed after the 2018 valuation, and this in turn affects the promsion shown in the financial statements. 2020 Valuation 2018 Valuation Entire USS Scheme Total Assets Total Liabilities Scheme Deficit Funding level £66.5 billion £80.6 billion £14.1 billion 83% £63.7 billion £67.3 billion £3.6 billion 950 The Open University Students AssocAation's share of the deficAt ha5 been modelled based on additional contribution rate5 along wth an estimate of future staff costs. and a discount factor based on high-qualty corporate bonds. The discount factor used to calculate the provision at 31 Juty 2022 was 3.31%131 July 2021= 0.87%). 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 wtll be spread across the remaining partiapant employers and reflected in the next acknarial valuation of the scheme. Page 39 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31..C4 88T{Lrrc +11 DV2 P42143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 23. Pension cornmitments Icontinuedl Ernployei and Ernployee contributions As part of the 2020 valuation. the trustees delemiined, after consultation wtth employers. a revision to the existing recovery plan to pay off the revised shortfall by 30 April 2038., the previous 12018 valuation) recovery plan was for recovery by 31 March 2028. The changes required to meet the funding shortfall include changes to the employer covenant 5UPPOrt lo the scheme. along with increases in employer and employee contributions and changes to scheme benefits as follows.. Period To 30 September 2021 1 October 2019 10 30 September 2021 1 October 2021 onwards Employers 21.11A> 21.4Lh¥ 21.6% Employees 9.6Q 9.8% 9.8% Deficit recovery contributions due wthin one year from the charity are £31,788 (2021= £51.8521. The obligation to fund the past deficit on the Universities Superannuation Scheme IUSSI arsses from the contractual obligation with the USS to fund deficit payments in accordance with the deficit recovery plan. In calculating thi5 provision, management have estimated future staff levels within the USS scheme for the duration of the contractual obligation and salary inflation. The major assumptions used to calculate the obligation are.. 2022 3.31% 4.8% 2021 0.87% 4.60 Discount rate Salary growth 24. Operating lease commitments At 31 Juty 2022 the charity had commitments to make fvture minimum lease payments under non- cancellable operating leases as follows.. 2022 2021 Not later than 1 year Later than 1 year and not later than 5 years 1,140 1,805 2,945 Page 40 VrbJJkgun*urvTrarwoCbc￿ Ref. N5￿.Sw3Y-7RJy 26 Ocl 2022 16..31.'10 88T{Lrrc +11 DV2 P43143 THE OPEN UNIVERSITY STUDENTS ASSOCIATION {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 25. Rel￿ed party transaclions During the year administrative service5 for The Open University Students, Educational Trust IOUSETI were provided. see below for details.. Charges to OUSET Management charge Recharges 2022 £51,254 £3.206 2021 £42.507 During the year donations were cdlected on behalf of OUSET, see below for details: Funds to OUS 50th fundraising Webstore donations s￿Iety donation 2022 £35,150 £5,190 £392 2021 £7,337 At the year end a balance of £35.340 {2021= £4,299} was payable to OUSET. During the year ended 31 July 2022 the Charity received £1.865,00012021.' £1,812,000) from The Open Univer511y IOU) in the form of a subvention and £52.00012021". £80,700) in respect of other income. The OU recharged costs totalling £1.566.481 12021.. £1.315,0501. At the year end the Challty was owed £13,85512021= £18,335). 26. Controlling party The Trustees believe that there 15 no ultimate c>Jntrolling paty. Page41