REGISTERED COMPANY NUMBER.. 13353590 {England and Wales) REGISTERED CHARITY NUMBER: 1194509 Report of the Tru8te88 and Flnanclal Statemants for thè Year Ended 31 July 2023 SOUTHBANK STUDENTS. UNION LTD Knox Cropper LLP Chartered Accounlanls and Slalulory Audllors 153 -155 London Road Hemel H&mpst8ad Herttordshire HP3 9SQ SOUTHBANK STUDENTS. UNION LTD Contents of the Flnanclal Statements for the Year Ended 31 July 2023 Pa Reference and Admlnlstratlve Dotsll8 Report of the Tru8te88 2 10 12 Roport of tho Independent Audltor8 13 10 15 Statement of Flnanclal Actlvltles 16 Balance Sh••t 17 Cash Flow Statement 18 Notes to the Cash Flow Ststem•nl 19 Note8 to Ihe Flnanclal Stat•ment8 20 10 30 SOUTHBANK STUDENTS, UNION LTD Reference and Admlnlstratlve Detalls for the Year Ended 31 July 2023 TRUSTEES M Dunwell Ms M El-Jebaili Ireswned 23.5.231 J H Gulrdjani B AC HLJdson DCAJames G K Johal Iresigned 13.1.231 A l Khan Iresigne(J 30.6,231 A Prelea (resigned 19.7,231 MsFTZRabbi Ms K E Wicklow Iresigned 11.10.22) C Adam5 (appointed 3,7.231 G Firmin {appoinled 23.5.231 S M E Islam lappoinl&d 16.1.231 T Monowar lappoinlad 16.1.231 N Sadman lappoinled 3.7.231 COMPANY SECRETARY REGISTERED OFFICE Student Centre South Bank Universlty 103 Borough Road Elephant And Castle London SEI OAA REGISTEREO COMPANY NUMBER 13353590 (England and Wales) REGISTERED CHARITY NUMBER 1194509 AUDITORS Knox Cropper LLP Chartered Accounlanls and Stslulory Auditors 153-1 $5 London Road Hemel H8mpslead Hertfordshire HP3 9SQ SOLICITORS Wrigley's Solicitors LLP 19-21 Cookridge Street Le&ds LS2 3AG BANKERS HSBC PLC 28 Borough High Street Soulhwark London SE1 1 IB Page 1 SOUTHBANK STUDENTS. UNION LTD {REGISTEREO NUMBER: 133535901 Raport of the Trustees for the Year Ended 31 July 2023 The Iruslees who are also directors of the charity for the purposes of the Companies Act 2CM)6. present their report with the financial statements ol the charity for the year ended 31 July 2023. The trust8es have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicab18 In the UK and Republic of Ireland IFRS 1021 leff8clive 1 J8nuary 20191. Page 2 SOUTHBANK STUDENTS. UNION LTD IREGISTERED NUMBER: 133535901 Report of the Trustees for tho Y8ar Ended 31 July 2023 STRATEGIC REPORT Achlavement and performancè Charitable actlvltles South Bank Students Union had a successful year, Improving results and achieving 85¥0 of annual KPIS exceeding largel in over 50°k of cases. See Table. 1 Tab. I 202212023 Key Porformanc8 Indlcators 2021 12022 2022 12023 {targoti 45.10 2022 12023 lactual} SILJdenls engaged in Su-led activity Students engaged in Su-led extra curricular activity Students engaged in Su-led academlc 8nhancemenl activity Students participating in democratic activity Students 8ngaged In Su-led retention activity 65 /0 courses with course representation Divisions represented vi8 slud8nl Voice processes Sludonl views collecl6d 150/¢ 15Vo 8¥. NEW 151 20/0 8% 7./0 15D/4 50 65°/. 7001. 84(h* 850/0 900 150 500 916 Increase on NSS Q26 scor8 Staff Engagement Éxtèrnal Audit Income generation Compliance 8udils 53Vo 82°/0 PASS 72Vo 90Y. PASS PASS £56k PASS 2K £56k PASS PASS Sludenl En emenl and Sludenl Voice The Union was successful in ils concerted efforts lo engage students from a broader cr05s-seclion of the University,. Apprentices.. Croydon., Havenng and those in their first year of study. In addition, the Union was ab18 to ensure that 84Yo of courses across 1000/, divisions had sludenl ropresenlalion. This stable level of inler8clion with a wide variety of students means that the Union is beller placed lo offèr m8aningful insight lo LSBU whlch can h81p shape and improve the sludenl experience, This work in no doubl contributed lo signifiGanl increase in the Union's NSS core for 2023 whioh rates sludenl satisfaction with th8 Union. The Union worked collaboralively with academic staff across schools lo deliver a number ol successful ac8demic enhancing aclivilies, this included support for 30 academic, subject based socielieslcommunilies., course-based events such as the Law school's Bar and Mooling competition and the Architecture society's mod81-making workshop. However, this work was impacted by a number of staffir7g vacancies in year which meant that il fell short of meeting ils increase largel frorn 2021122. Further work on developing relationships with university staff who co-deliver thi5 work has taken place, and through evaluation, and reassignment of resources good progress is now being made into 2023124, The overall largel for election participation for the year was significantly under expecl8lion. Thls Is a disappointing result given that Ihe team made a focussed effort to incenlivise and engage students in th8 democratic processes. This result is another indicator that the current traditional SU representation model is ouldaled for LSBU'S more progressive approach lo higher education. This was a significant finding during Ihg union's rnid-slralegy review which look place In Spring 2023. A full governance and democracy revièw is taking plac8 in 2023124 with a view lo driving up parlicipalion. Page 3 SOUTHBANK STUDENTS, UNION LTD (REGISTERED NUMBER: 133535901 Report of the Trustees for the Year Ended 31 July 2023 This year th8 SU has again worked with the university lo drive Na110nal Student Survey INSSI completion, helping lo coordinale a central schedule of NSS completion activity, as well as delivèr talks, support in classroom completion, and he5p monitor and 8valuale the impact of completion aclivilies This has been highly effeclive,. th& University has a higher completion mle in comparison lo last year and students completed the survey within a shorter lime frame, meaning Ih&y were less likely lo be chased by Ipsos Mori, and more likely lo have completed the survey directly after an NSS talk. This will have contributed lo improved results for both the University and the Union. The SU once again demonstrated the direcl way il enhances employabilily through th8 opportunities il olfers for paid and voluntary work experience. In 22123, over 700 students accrued over 70,000 hours of voluntary work experien￿.. leading societies, communities and networks., advocating for students,. and providing peer lo peer support. In addition. the Union provides over 8,000 hours of paid. flexible work for students al LSBU. conlribuling not only lo their ca￿er prospects, bul also lo their financial stability while studying. SBSU is proud (hal alongside a strong parl-lime sludenl stall 16am, 500/y ol ils full-lime workforce is made up of recent LSBU graduates or 51udenls on placement. Sludenl Su ort and Oulroach Notably, the Union almost tripled the number of sludenls supported through Advice and Outreach services. Thesè services are designed lo provide students with support and guidance wilh the specific aim of helping them slay in study and progress. The impact of this for one programm8 of work commissioned by LSBU providing support for students with resils - has recently been 8ssessed and data suggasls that the Su's Intervention irnproved the pass rale by 1 S-17'/.. In numerical terms, this in18rvenlion SLJpporled al least an additional 135 students lo pass their resil assessments who may not have passed wilhoul It. The Unlon was pleased lo support Lseu by leading the Black Students Peer Mentoring Project as parl of the Ofs funded initiative in Semesler 2. 40 students parlicipaled, receiving training lo complete mentoring Sessions with fellow Black students that focused on shared experiences with a goal lo increase access lo support 59rvic8s and wellbeing. 15120 pairs completed the program with evaluation In progr8ss. Participants reported finding the program deeply impactful and many reported that Il was the first and only lime they've had a space lo discuss race as parl of their educational lourn8y and lo meet other Black students. anisalional Health Work continued on slabilising organisalional health since IITe Union's turnaround in 2020, as demonslraled by a successful linancial audit, continued compliance checks and reporting and a furlh8r incréas8 In staff engagement. Proj&cled income largels from commercial services wore mel this year, however the Union undertook an exlemal review ol the Gommercial opportunities with a view lo both maximising potential of current income streams and exploring new ways lo diversify revenue. This review is now complete and has provid8d both the Union and the University with practical recommendations lo consider. Many of these are included In the Union's operational plans for 23124 along with the projected income growth. In addition. Ihe Union 8chievod other notable impacts across 2022123.. 450 students supported through the SU Advitè service Engaged 430/0 all Lev814 students Number of slLJdenls engaged with SBSU doubled since 20121 Engaged 13,10 of Part-lime students Including Apprentices 34.1. International students al LSBU were engaged in SU-18d activity Ov8r 2000 students joined an SU community group Page 4 SOUTHBANK STUDENTS. UNION LTD {REGISTERED NUMBER.. 133535901 Report of the Trusteès for the Year Ended 31 July 2023 STRATEGIC REPORT Flnanclal review The Union's gross income from all sources this year lolalled £1,331,33412022'. £1,286.0411. Total expendilure this year spent on a wide-range of sludenl benefits and revenue-generdbng achvity was £1,266, 167 12022.. £1,263,738116aving an operational surplus for the year of £65,16712022.. £22,303), Once the movements in relation lo the Unions. mèmbership of the Students. Union SLiperannualion scheme are taken Into account the Union had a réduction in Ils net funds of £189,91712022'. increase of £140,620). Designated lunreslricledl funds r81aling lo the ongoing costs associ818d with facilities improvements amounted 10 £81.96512022 £94,832). Designated funds relating lo the pension deficit amounted lo a negative £1,748,75012022'. £1.559.9321, Ihis is equal lo the provision. The Union also holds reserves lo cover unexpected evenlL181ili8s and also ensure there are sufficient reserves lo resource planned capital 8xpendilure. General Fund rèserves at the 31 July 2023 were £490,871 12022.. £450.6861 which has been designa18d as 8 proleclèd minimum amount (shown as "A¢cumulaled Funds'l. The Union is curr8nlly affiliated lo the National Union of Students INUSI, for which Ihe lolal subscnplion cosls amounted lo £23,62512022.. £22,500) for the y8ar, and no donations were made during the year lo any external inslilulions out ol SBSU's own resources, Funds Held as Custodlan Truste8 In addition lo the granl-supporl funds Il disburses lo Clubs and Societies, SBSU acts as custodian for funds raised by the Clubs and Soc181ies themselves, Club and Society funds are Irealed as reslricled funds. which are included In reslricled funds In the aceounls. The holding of club and soaely balances Is subject lo the same safeguards as balances btslonging lo the Union. bul their funds are 8ccounled lor $8paralely lo ensure that balances are appropriately proleclod. Reslricled society fund balances were £21612022., 1311. Future Fundlng The Board confirms that SBSU has sufficient funds lo meet all ils obligations. The Union is in r8C8ipI of a recurring block grant from th8 University which represents Ils principal source of funding, with the amount subject 10 8nnual confirmation. For accounting yèar 2023-2024 the Union has been awarded a block gr8nl of £1,010,000. Page 5 SOUTHBANK STUDENTS. UNION LTD IREGISTEREO MUMBER.. 133535901 Report of the Trustees for thé Year Ended 31 July 2023 STRATEGIC REPORT Prlnclpal rlsks and uncortalntles The Trustee board are responsible for the Union's risk management. The senior management team have del&g8led aulhority for identifying and ffjporting on the risks facing the organisalion lo the Trustees as they arise in relation lo items of business al the Board. In addition, the senior management t8am provide information on nsk lo enable Trustees lo undertake an annual r8view. The Trustee Board examings the Union's major slralegic, business and operational risks on an annual basis. The Trustees confirm Ihal systems have been established lo enable r8gular reporting which allows them lo tske th8 necessary steps to miligalg any risks The pnncipal risks and uncerlainlies currently facing the Union are considÈr8d lo be.. Declining participation in th& Union's democratic processes has resulted over recent years in a lack of diversity and cross-school reprasenlalion wilhin the Union's major decision making bodies. To counter this, Trustees have commissioned a lull review of thes8 processes in 2023124 with a view of redeveloping the Union's model of delivery lo make il sustainable for the fulur8. Possible reduction in funding by the University. We have ongoing conversations throughout the year concerning funding and we are fully Included Into the University's finance planning process enabling us lo negoliale and plan for increas8s or decreases in our funding allocalion, The financial healih of the Univer511y Is Itself dependent on ils own income, which In lum is susceptible lo factors beyond the control of the Union ond we are regularly updated on the University's financial situation and, once again, ansure that this Is included In any longer-lerm strategie5. Repulalional d8mag8 In the unlikely event of a high-profile activity by a Iruslee or sludenl represenlalive, Induction for Trustees and repr8senlalives Includes full information of th& responsibilities wilhin the rale and we work closely with all of them lo ensure Ihey are fully aware of Union aclivily. Regular updates with Iruslees ensure that Iruslees have the opportunity lo work Ihrough the organisalion lo meet any objective they may have. Overall, we work very closely with the Universily, slud&nls and Trustees lo ensure that we have knowledge of their aclivily. We use OLJr plans and strategies lo manage risk including the Union's reserves strategy. strategic plans. maintaining effeclive internal controls. risk registers, incidenl-reporting and monitoring systems and n5urance cover wherever appropriate. Page 6 SOUTH8ANK STUDENTS, UNION LTD (REGISTERED NUMBER: 133535901 Report of the Trustee8 for thè Yoar Ended 31 July 2023 STRATEGIC REPORT Future plans New oparalional KPIS for 23124 have been sel and progress is being reported lo trustees quartedy. EDg45gment 52•A Students Engaged In Su-led actlvlty 30 °/0 of Appr8nticeslPT engaged in Su-led aclivlty 40.￿ of In18malional engaged in Su-led activity 30 % of Croydon based students are engaged in Su-led aclivlty 20°h of Hav8dng based students engaged In Su-led activity 60% of Flrst years engaged in Su-led aclivlty 38Y. Students receivp SU Support and advice to help them stay In study 450 students supported though SU Advice S&rvi¢8 350/0 studen18 received direct SU outreach support 209A Siudents engaged In Su-led academic based actlvlty 1500 slud8nls involved in academic commLJnity acllvity 590 Slud8nls electèd as a Cour88 Rap 1600 Students vole in an SU •le¢tion 15'/,, Stiider?fs engaged iii Su-led ro1."i'edtloi?al activlty. 1200 students involved in SU Inon-academicl communlty acllvity 55Vo First years engag8d In Su-led welcome actvity Ii'/e.'> fCinii-InLiieJ ro riipir ,?c IriLJtyI,' SUiLess 900 Sludenl vlews collected 65¥0 views reported and 520/ts acl8d on g0¥0 of courses with sludenl representation 100% divisions represented across sludenl voice tracker 90 /, KPIS A rhlpvpd. 20V/D E¥reHdgrl 90•/D Staff Ihir)k SBSU is a great place lo work 1000/0 Income targels met 95 /0 Compliance audlts completed, 90Vo passed Extemal Finance Audit passed 90Vo n8w students are opted in SU mgmbers 85¥0 LSBU Partners are salisfled with th8 SU'S Contribulion lo sludenl SUGcess Page 7 SOUTHBANK STUDENTS. UNION LTD (REGISTERED NUMBER: 13353590} Report of the Trustee8 for the Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng documont The charity is controlled by its goveming document, a deed of trust. and con81ilules a limited company, limited by 9uarant8e, as d8fined by the Companies Act 2006. Key Management Personnel Key management p8rsonnel includ8 the Chief Executive, Deputy Chief Execulive and pald sabbatical officers. South B8nk University Students, Unlon ISBSUI employs a Chlef Executive lo work closely with the Trustees and ensure effective management of Ihe Union. Page 8 SOUTHBANK STUDENTS, UNION LTD (REGISTERED NUMBER.. 133535901 Rgport of the Trusteas for tho Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Declslon maklng The Union is constituted under the Education Act 1994 as a charity. The Union's charitable objects are.. promoting the Inler8sls and welfare of Students al London South Bank University during their Gourse of study and representing, supporting and advising Students., being th8 rscognised r8prgsenlalive channel bebfveen Sludenls and Londan South Bank University and any other external bodies., and providing social, cultural, sporting and recreational activities and forums for discussions and debat8 for the personal development of ils Students. In furtherance ol these aims the trustees have complied with their duty In s.17151 of the Charilies Act 2011 10 have due regard lo the Charily Commission's published general guidance concerning the operation of tha public benefit requirement under that AGI, In pursuit of these aims for the public benefit, S8SU'. Ensur8s th8 diversity of ils membership is recognised, valued and supported.. Has eslablishgd departments and services for us8 by ils members and lo support ils work with Ihe University and other organisalions on behalf of students. These include the Union's Representation and Advi¢e, Communications, Centr81 Services and SI￿dent Activities DBparlmenls. The Union's Sabbatical Officers and Council members are the students, r8pr8senlalives on 811 malor Univ8rslly commillees and the University's Board of Gov8rnors, and af8 supported by membors ol the union's staff team that act as a secretarial. The Union represents ils members (London South Bank University's sILJd8nlsl on relevant local, national and inlernalion81 issues by maintaining contact with sludenl represonlalivtss. Such contact ensures Ihal the Union can 18k8 into account students, requir8menls and cater effectively for Ihair needs. Siudenl represenlalives are present on the University's policylslralegy making 8oardslCommitte&s and are also members of Course Boards within the University's faculties I"SGhools"l. In preparation for changing Ihe 18gal form of the Union lo a Company Lirniled by Guarantee, the University Board of Gov8rnors formally apprDved Articles of Assoclalion including internal regulsjlions and Memorandum of Understanding for the Students, Union al ils meeting on the 25 March 2021, and by the Union's board of Trustees on 16 March 2021. Members ol the Union resolved lo allow the transfer of assets and liabililiÈs, and the dissolullon of the unincorporaled enlily al an AGM held on 29 March 2021 SBSU was formally registered by the Charity Commission on 18 May 2021 and registered by Companies House on 23 April 2021. The transfer of deeds was effective from 31 August 2021. SBSU is administered by ils Trustee Board of 4 Sabbatical Officers, and up lo 4 Students and 4 Exlornal Iruslees, for the PL¢rposes of the Charities Acts. The four Sabbatical posts are President, Vice Presidents of Education, Ac11vilies and Ernployabilily and Welfare and Equalities, The Sabbatical p051s are r&muneral8d as aulhorised by the Education Act and an individual's term of office cannot exceed two years duration,. an Officer can be re-elected for a maximum of two terms in the same or different positions. Th8 President and Union Council Chair arg required lo sil on Ihe Universily's Board of Governors. Th8 Union operates on democratic principles, with supervisory power ves19d in the Union'5 Council, which.. Furthers the aims and objects of the Union., Receives minutes and rgporls from the Executive, Union Commille&s and Union Officers., Considers recommendations, motions and business as appropriate.. and Elects 51udenls (apart from Sabbalical Officers) lo serve on Union and University committees. Page g SOUTHBANK STUDENTS. UNION LTD IREGISTEREO NUMBER: 133535901 Report of the Trustees for the Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Council membership comprises the Sabbatical Officers together with Siudent Representative Officers and the Sludenl Govemors (which includes the Union's Sabbatical Presid8nll Slud8nl Represenlalives commence their lerms of office subject lo complelion of an appropriate course of training. This includes, for Sabbatical Officers, where possible, a handover with the outgoing Sabbatical Officer and training on the roles and responsibilities of Trustees (legal and adminislralivel. with an ongoing training programme as and when needed lor Issu&s arising during their term of office. charity Trustees, all Truslees receive a comprehensive training programme into their legal and adminislralive r8sponsibililies 81 the start of (heir term of office, with ongoing guidance as and when required for issues 8rising during Ih8ir term, The Trustees meet Ihroughoul rhe year lo receive reports from individual Officers and Union employees lo review the Union's perfonnance and adminislralion. Recommendations for Union policy are made lo Ihe Trustee Board lo consider and approve policy. Key Inlorrnalion Is provided lo Trusle8s which includes accounts, the slol&gic plan, and an organisalional diagram. Truste8 knowledge and skills ar& evaluated al regular Intervals and training ￿S designed around the specifiG needs of Individuals and the Board as a whole. Through the Union's membership of the National Union of Students. Trustees have access lo &xp&rt advice and guidance, conferences, and Imining. SBSU also employs a number of non-sludenl lull and parl-lime staff for the sake of continuity In th6 management of it5 many aclivilies. Such staff are accountabl& lo thg Chief Executive for lh8 performance of their duties. The overview ol the staff structure Is.. Chief Executive Finance Manager > Finance Team People & Office Manager > People & Office Team ul Chief Ex8cuIIv8 Student Voice & Outreach Manager > R8presenlalion & Oulreach Team Advice Manager > Advire Team Head ol CommerGial Q eralions ? Communications Team Sludenl Communities & Events Manager > Student Activities Team Kay mhnaggmgnt remLtnoratlon The remuneration of key managem&nl personnel is sel by th& Board, with the policy objective ol ensuring Ihal they are provided with appropriate incenliv88 to encourage enhanced performance and are, in a fair 8nd responsible mann9r. rewarded for their Individual contributions lo the Union's success. The approprial8ness and relevance of their remuneration is reviowed regularly, and will include lob market analysis and raferenca lo comparisons with olhef unions lo ensure that the Union remains sensitive to the broader Issues of pay and ernploymenl conditions elsewh&re. We aim lo recruit, sublecl lo experience, al the lower lo medium point within a band, providing scope lo b6 rewarded lor excellence. Dolivary of the Union's charitable vision and purpose is primarily dependgnl on our key managemonl personnel and staff cosls are the largÈsl 51ngle element of our Gharilable 8XP8ndilure. Pag8 10 SOUTHBANK STUDENTS. UNION LTD (REGISTERED NUMBER: 13353590) Report of the Trustaas for the Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Relatlonshlp wlth the Unlver55iy SBSU is established in the Universitls Memorandum and Articles of Associalion in that there shall be a Students. Union. The Union receives a SubvenlionlBlock Grant from the University, and In-kind support related lo ulililies. some security staff ancl the majority of the costs associated with cleaning and premises maintenancè. The non-monelary support Is intrinsic lo Ihe relationship between the University and SBSU. As recommendèd by the Charities SORP an 881imaied value lo SBSU lor this free serviced accommodation has been included In the accounts al an 8slimaled value Ibased on prior year spaca charge calculations). Although SBSU undertakes some income generating aclivilies, Il is dependent on Ihe University's financial support. The Iruslees consider il reasonable lo anlicipale that this or equivalent support from the University will continua for the foreseeable future, as the Education Act 1994 imposes a duly oll the University lo ensure the financial viability of Ils student rapresenlalive body In onè form or another. Tha Iruslees th8r8lore consider Ihe Union lo be financially viable for the fores8eabl8 lutLJre. STATEMENT OF TRUSTEES, RESPONS181LITIES The Iruslees (who are also the direclDrs of Soulhbank Students, Union Ltd for th8 purFK)ses ol company lawl are responsible for preparing the Report ol the Trustees and the financial slalemenls in accordance wilh applicable law and United Kingdom Accounting S18ndards (United Kingdom Generally Accepted Accounting Praclicel. Company Igw requiffjs the Iruslees lo prepare linancial slalemenls for each financial year which giv8 a true and lair view of the stale ol affairs of the charitable company and of the Incoming resourcas and application of resources, InclLiding the Income and expenditure, oy the charitable company lor that period. In pr8paring those financial stalemenls, the Iruslees are requirèd lo selecl suitable accounting policies and then apply them consislènlly., observe the Fnelhods and principles In the Charily SORP., make judgements and eslimales that are r8asonable and prudent.. slate whether applicable accounting standards have bean followed, sublecl lo any mal8rial dapartures disclosgd and explained in the financial slalemenls., prepare the financial slalemenls on the going concern basis unloss il Is inappropriate lo presume that lh8 charitable company will continue in business. The Iruslges are responsible lor keeping proper accounting records which disclos8 with reasonable 8ccuracy al any time the financial position of the charitable company and lo enabl8 Ihom lo ensure Ihal Ihe financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding (he assèts ol the charitable company and hence for taking reasonable steps for the prevention and dèl&clion of fraud and other irregularilie5. In so far as the trustees are awar8'. there is no relevant audit Inlormalion of which th8 charitable company's auditors are unaware., and the Iruslees have laken all steps that they ought lo have taken lo make Ihems8lve8 aware of any r8levanl audit information and lo establish that the auditors are aware of that Information. AUDITORS The auditors, Knox Cropper LLP, will be proposed for rè-appoinlmenl 81 the forthcoming Annual General Meeling. Page11 SOUTHBANK STUDENTS. UNION LTD (REGISTERED NUMBER: 133535901 Report of Ihe Trusteos for the Year Ended 31 July 2023 Report of the trustees, Incorporats'ng 8 slr8tsgic repart, approved by order of the board of Iruslees, as the company directors, on ...1￿...￿Ck￿,,.Io.II4.. and signed on the board's behalf by.. Trus18e Page 12 Rèport of thè IndÈpÈndent Auditors to the Mombers of Southbank Student5. Unlon Ltd Oplnlon W8 have audited the financial statements of Southbank Students. Union Ltd Ilhe 'charilable company) for the year ended 31 July 2023 which compris8 the Statement of Financial Aclivilies, the Balance Sheet, rhe Cash Flow Slalemenl and Notes lo the financial slalemenls, Induding a summary of significant accounting policies. The financial reporting framework Ihal has b8en applied In their preparation Is applicable law and United Kingdom Accounting SianLlards (United Kingdorn Generally Acc&pled Accounting Praclicel. In our opinion the financial slalemenls.. give a true and falr view of the slate of lh8 charitable company's affairs a5 al 31 July 2023 and of Ils Incoming resources and application of resources, including ils Income and expenditure. for the year then &nded,. have been proparly prepar&d In accordance wilh United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those slandards are further d&scribed In the ALJdilors' responsibilities for th& audil of the financial slalemenls section of our report. We are independent of the charitable company In accordance with th8 ethical requirements th81 are relevant lo our audit ol the financial slalernenls In the UK, Including the FRC'S Ethical Standard, and we have fulfilled Okjr other ethical respon5ibililies In accordance with these requirernenls. We b&li8vo that the audit evid8nc& we have obtained is sufficient and appropriate lo provide a basis for OLJr opinion. Concluslons r•lalln9 to golng concern In aLJdiling the financial slalemenls, we have concluded th21 the IrLJsl&es' us8 of the going concern basis of accounting in the preparation of the financi81 slalemenls is appropriate. Based on the work we have perform&d, we have not idenlilied any material unc8rlainli8s relating lo events or conditions that, individually or collectively. may cast significant doubl on the charitable company's ability lo conlinue as 8 going cor)cèrn lor a period of al least twelve months from when the financial slalemenls are aulhoris8d for issu8. Our re8POnsibililies and the responsibilities ol the trustees with respect lo going concern are described In the relevant sections of this report. Other Informatlon The Irusle8s are responsible for the other Information The other information comprises the information included in the Annual Report. other than the financial slalemenls and our Report of the Independent Auditors Ihereon. Our opinion on the financial slalemenls does not cover the other Information and, except lo the exlenl olhenNise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial slalemenls, our responsibility is lo read the olh&r information and, in doing so, consider whether the other information Is materially inconsislenl with the financial slalements or our knowledge oblained in the audit or otherwise appears lo be materially misslaled. If we identify such material Inconsislenci&s or apparent rllalgrial misslalem8nls, we ar6 roquired lo do18rmine whether Ihis gives rise lo a material misslalemenl in the financial slalemenls themselves. If, based on the work we have performed, we conclude that there is a mal&rial misslalemenl of this other information, we are ￿qUired lo report that facl. We have nothing lo report in this règard. Oplnlons on other mattors prescrlbed by the Companles Act 2006 In our opinion, based on the work und8rlaken in the course ol the audit,. the information given in the Report of the Trustees for the financial year for which the flnancial stalemenls are prepared is consislenl with the financial slalèmenls,. and the Report of the Trustees has been prepared in accordance with applicable legal requiramenls. Page13 Report of the Independent Audltors to Ihe Members of Southbank Student5, Unlon Ltd Matters on whlch we are raqulred to report by exceptlon In the light of Ihe knowledge and understanding of the charitable company and its environment oblaineé in the course of the aLJdil, we have not identified material misslatemenls in Ihe Report ol the Truslegs. We have nothing lo report in respect of th8 following mallers where the Companies Act 2006 requires us lo report lo you if. in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been r8c8ived from branches not visiled by us.. or the financial slalemenls are not in agreement with the accounting r8cords and returns., or c&rlain disclosures of Iruslees, remuneration specified by law are not made,, or we have not recèived 211 the Information and explanations we require for our aucjil, Responslbllltles of trustees As èxplained more lully in the Slalem8nl of Trusl&es' Responsibilities, the Irusle6s (who are also the directors of the charitable company for Iha purposes ol company lawl are rasponsible lor the preparation of the financial slalemanls and for being satisfied that thèy give a trué and fair view, and for such Internal control as the Iruslees determine is necessary lo enable the preparation of flnancial slalem8nls that are fr8e from material misstalemenl, whelh8r due lo fraud or error, In preparing the financial slal8menls, th& Iruslees are responsible for assessing the charilabla company's ability lo continu8 as a going concern, disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless the Irusle8s either intend lo liquidale th8 ¢haritable eompany or lo cease operations, or have no realistic allernalive bul lo do so. Our rasponslbllltle8 for the audlt of the flnanclal Statements Our obieclives arg lo obtain r88sonable assurance aboul whether the financial sla18menls as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue a Report of th8 Independent Auditors that includes our opinion. Reasonabl6 assurance Is 8 high level of assurance, bul Is not a guaranlge Ihal an audit ctsnducled in accordance with ISAS IUKI will always delecl a malerial misslalemenl when il exists. Misslalemenls can ari58 from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be exp8cled to influence the economic decisions of users taken on the basis ol th888 financial slalemenls. The exl8nl lo which our procedLJres ar8 capable of delects'ng irregularities, including fraud is delailed below.. Tha Charity Is required lo comply with charity law and, basgd on our kllowledge ol Ils aclivilies, we identified that tho legal roquiremenl lo accurately account for any reslricled funds was ol key significance. We gained an und8rslanding of how Ihe charily complied with ils legal and r8gulalory framework, including the requirement lo properly account for any reslriclad funds, through discussions with man8gemenl and review of the documented policies. procedurès and controls. Tho audillgam. which Is experienced in Ihg audit of charities. considered tho charity's susceptibility lo material misslalem8nl and how fraud may occur. Our considerations Included Ihe risk of man8gemenl override. Our approach was lo check that all reslricled income was properly Identified and separa161y accounted for and lo 8nsure that (>nly valid and appropriate expenditure was charged lo rest￿Cted funds. This includ&d reviewing journal adjkjstménls and unusual Iransacts'ons. There a￿ inherent limilalions in the audit procedures described above and, the further removed non- compliance with laws and regulations Is from the events and transactions rgflecled in the flnancial slalements, the less likely we would become aware of it. The nsk of nol delecling a material mis51alemenl due lo fraud is higher than th& risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intention81 misrepresenlalions, or Ihmugh (x)Ilusion. A further description of our responsibilities for the audit of the financial slalemen15 is located on the Financial Reporting Council's website al www.frc.org.ukJauditorsresponsibililies. This description forms part of our Report of the Independent Auditors. Page 14 Raport of the Indo￿ndent Audltorg to the M8mb8rs of Southbank Students. Unlon Ltd Use of our report This rgport is made solely lo Ihe chantablè company's members, as 8 body, in accord8nce with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitable companls members those matters we are required lo slate lo Ihern In an auditors. report and for no other purpose. To thè lullesl exl8nl permilled by law. we do not accept ar assume responsibility lo anyone other than the charltabl8 company and the charitable companvs niembers as a body, for our audit work, for this report. or for the opinions we have formed. steph8n Anderson FCCA (Senior Slalutory Audilorl for and on behalf of Knox Cropper LLP Chartered Accountants and Slalulory Auditors 153 -155 London Road Hemal Hempstead Harffordshire HP3 9SQ Dale.. Page 15 SOUTHBANK STUDENTS. UNION LTD Statement of Flnanclal Actlvltle$ for the Year Ended 31 July 2023 2023 Total funds 2022 Total funds Unrestricted funds Reslricled fund Notes INCOME AND ENDOWMENTS FROM Donations and legacies 1.259.451 1,259,451 1,220,628 Charftable actlvltles Sludenl Activities 9.229 9,229 22,378 other trading activities Invoslmenl income Other income 56,447 4,378 1,829 56,447 4,378 1,829 41,317 1 ,250 468 Total 1,322,105 9,229 1,331,334 1,286,041 EXPENDITURE ON Raislng lund5 27,281 27,281 30,715 Charltabl8 actlvltlos Sludenl Activities Advice & R8pres8nlalion Communicallons & Marketing 370.227 537.184 322.331 9,144 379,371 537,184 322,331 409,967 447,373 375.683 Total 1257,023 1,266,167 1,263,738 NET INCOME other rgcognlsed galn6111086es) Actuarial gainslllossesl on defineé benefil schemes 65,082 65,167 22.303 255,084) 255 084 118,317 Net movement In funds 1190,002) 85 {189,917} 140,620 RECONCILIATION OF FUNDS Total funds brought forward 1985.9111 131 1985,7801 11,126,400) TOTAL FUNDS CARRIEO FORWARD 1,175.9131 985,7801 The notes form part of these financial slalemenls Page 16 SOUTHBANK STUDEiifs' UNION LTD (REGISTERED NUM8ER.' 133535901 Balance Sheet 31 July 2023 2023 Total funds 2022 Total funds unreslric18d Restricted funds fund Notes FIXED ASSETS Tangible assets 13 81,965 81.965 94,832 CURRENT ASSETS Stocks Debtors Cash al bank 14 15 2,778 10,467 544,695 2,778 10,467 544,911 13,996 19,634 520,588 216 557,940 216 558.156 554,218 CREDITORS Amounts falling due Wlthln one year 16 (67.0681 167,0681 174,8981 NET CURRENT ASSETS 490 872 216 491088 479.320 TOTAL ASSETS LESS CURRENT LIABILITIES 572.837 216 573,OS3 574,152 PROVISIONS FOR LIABILITIES 17 11,748,750) 11.748,7501 11.559,9321 NET ASSETSI{LIA8ILITIES) 1,175913 985.7801 FUNDS Unreslricl8d funds Reslricled funds 18 11.175,9131 216 1985,9111 131 TOTAL FUNDS 1,175.6971 985,7801 The financial slal8m8nls were approved by the Board of Trustees and authorised for issue on .114 JcLn... 20L<+..... and wgre signed on ils behaw by.. Trustee The notes form part of these financial slalemenls Page 17 SOUTHBANK STUDENTS. UNION L TD Cash Flow Statèmént for the Year Ended 31 July 2023 2023 2022 No18S Cash flows from operatlng acllvltles Cash g8n8r8ted from operations 21.201 39,5591 Nel cash provided byllused inl operab'ng activities 21,201 39 5591 Cash flows from Inv•#tlng hctivltlo8 Purchase of tangible fixed assets Inlèrèsl r8cèivèd 11,2561 4,378 114,7441 1,250 Nel cash provided byllused inl investing activities 3.122 13.4941 Changè In c&•h and caih •qulval•nt• In the reportlng perlod Cash and cash equlvgl•ntS at the beglnnlng of tho reportlng porlod 24,323 153,0531 520,588 573,641 Cash and cash équlvalonts at th• ond of tho roportlng pgrlod 544,911 520,588 The notes form part of these finanoal statements Page 18 SOUTHBANK STUOENTS. UNION LTD Notes to the Cash Flow Statement for the Year Ended 31 July 2023 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTMTIES 2023 2022 Net Income for the reportlng perlod (as per the Stalomenl of Flnanclal Actlvltl951 Adlustmènts for.. Depreciation charge5 Inl8resl r8celved Defined benefit scheme adluslm8nls Decrease in stocks D8cr8asellincreasel in debtors IDecr88s8llincreASe in crèditors 65,167 22.303 14,122 14.3781 {66,2651 11,218 9,167 7.830 12,738 11,2501 170,0631 7.082 115,7001 5,331 Net ¢a¥h provlded byllus•d Inl operatlon8 39 5591 ANALYSIS OF CHANGES IN NET FUNDS Al 1.8.22 Cosh fl¢)W At 31.7.23 Net cash Cash al bank 520 588 520 588 Total S20.588 24,323 544,911 The notes form part of these financial statements Page 19 SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statements for the Year Ended 31 July 2023 ACCOUNTING POLICIES Basls of preparlng the fln8nclal statements The financial slalemenls of the charitable company, which is a public benefit enlily under FRS 102, hav& been prepared In accordance with the Chanlies SORP IFRS 1021 'Accounling and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in th8 UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable In the UK an(J Republic of Irgland, and the Companies Act 2006. The financial slalemenls have b88n prepared under the historical cost convention. Income All income is recognised in the Slalemenl of Financial Activities once the charity has enlillemenl lo the fLJnds, Il Is probable that the income will be received and Ihe arnounl c8n be measured reliably. Expendlture Liabilities are r8cognised as expenditure as soon as there Is a legal or conslruclive obligation commilling the charity lo that 8xpendilure, Il Is probable that a transfer ol economic benefits will be required In s81118menl and the amount of the obligation can be measured reliably. Expenditure Is accounled lor on an accruals basis and has been classified under heading5 that aggregate all cosl related lo the ¢alegory. Where costs c3nnol be directly allribuled lo particular headings they hav8 boen allocated lo activities on a basis consislenl with the use of resources. Tanglble flxed assets Deprprialion Is provided al the following annual rates in order lo write off each asset over ils eslimaled useful life. Improvem8nls lo property Plant and machinery Fixtures and fillings Computer equipment Slr8ighl line over 15 years 25 /0 on cost 25010 on cost 250/0 50010 on cosl Stocks Stocks are valued al the lower of cost and nel realisable value, aller making due allowance lor obsolete and slow moving items. Taxatlon The charity Is exempl from corF)oralion lax on its charitable aclivilies. Fund accountlng London South Bank University Sludenls, Union administers and accounls for a number of charitable funds, as follows.. lil Unreslricled Funds rgpresenling Ljnspenl income which may be used lor any 8clivilylpurpose al the Trusleos, own discretion.. lill Reslricled funds raised and administered by London South Bank Univ8rsily Slud8nls' Union for specific purposes as determined by students. such as Club and Societies Accounts, as well as revenue received for purposes specified by the donor and also lif not material enough lo reqLJire a separate column in thè SOFA) any small capilal grants received from the College. liiil CLJStodian Funds enlrusled lo London SoL¢lh Bank University Students, Union for safekeeping, bul not under ils managemgnl control. e.g., annual RAG. Such custodian activities are disclosed in the Annual Report. bul as the funds are not managed by Londan South Bank University Students. Union they cannot be included In the accounts. Page 20 continued... SOUTHBANK STUDENTS. UNION LTD Notes to the Flnanclal Statamants - contlnued for tho Yoar Ended 31 July 2023 ACCOUNTING POLICIES- contlnued Fund accountlng livl Designal8d Funds relating lo amounts sel aside from existing reserves lo cover reslrucluring costs, including depreGialion associated with refurbishm8nl work. Iv) Translers from Unreslricled Funds lo Designated Funds represent planned cosls associated with restructuring which have been financed from the Union's reserves. These include capilal refurbishment costs. Pgnsion costs and other post-r6tirement ben8flts Retirement benefits lo &mployees of the Union are provided Ihrouoh two pension schemes, one defined benefit ISUSSI, the olhar defined conlnbulion INUSPSI. suss Th8 Union parlicipales in lh8 Students, Union Superannuation Schem8 ISUSSI, 8 defined benefit scherne which is externally funded and contracted out of the Slate Second Pension. The fund is valued al least every three years by a professionally qualified Independenl actuary with the rates of contribution payable being d&lermined by the trustees on the advice of the actuary. The most recent voluation of the Sch8me was carried oul as sjl 30 June 2022 and showed that the mark81 value of the Scheme's ass8ls was £106,691,000 with these asstsls rèpresenting 44'/o of the value ol benefits that had accrued lo members aller allowing for expected lulur8 inoreases In earnings. The deficit on an ongoing funding ba8is amounted lo £136.645,000. The 2022 valuation recommended a monthly contribution r8quiremenl by each participating Union inlended lo clear the ongoing funding delicil ending in 2037. incr8asing by 5Q/o each year, The scheme operates as a pooled arrang8menl, with conlribulion8 paid al 8 C6nlrally agreed ratè. As a consequènce, no share of the underlying assets and liabilities can be directly allribuled lo the Union. Under FRS 102, where a scheme parlicipales in a rnulli-employer defined bgnefil pension scheme that is In deficit and rhe employer has entered into an agreement lo fund the deficit the enlily shall recognise a liability for the conlribulions payable that arise from the agreement. As Ihg agreement runs until 2037. a discount rale of 2.5'/0 has been applied In dglermining the nel present valu8 of the contributions made in the period. usps Since 1 October 2011, all participating employees have b8en in 8 new defined contribulion p8nsion scherne, National Union of Students Pension Scheme INUSPSI. Contributions are al the ral& 0161/10 for the employer and 3Q/o for Ihg employe& pensions costs a￿ charged in the period in which Ihe salaries lo which they relate are payable. Page 21 continued... SOUTHBANK STLIDENTS. UNION LTD Note8 to the Flnanclal Statements - contlnued for the Ygar Ended 31 July 2023 DONATIONS AND LEGACIES 2023 2022 Gifts Donations Grants Donated s8rvic8s and facilities 121 980,000 15,011 225,619 1,032,000 1,832 225 619 1.259,451 1,220,628 Grants received, Includad in the above, arè as follows.. 2023 2022 KIGk start grant 15.011 OTHER TRADING ACTIVITIES 2023 2022 Fundraislng events M8rchandising Marketing 1,719 22,858 6.108 31,800 INVESTMENT INCOME 2023 2022 Deposit account inler&$l INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Activity Clubs and Societies income Sludenl Aclivllies 9,229 22,378 Pag& 22 continued... SOUTHBANK STUDENTS. UNION LTD Notes to the Flnanclal Statements - conllnued for th8 Year Ended 31 July 2023 RAISING FUNDS Raising donatlons and legacles 2023 2022 Sundries Merchandise 1.215 29,500 27,281 27,281 30,715 CHARITABLE ACTIVITIES COSTS Support costs (see nol8 81 Direct Costs Totals Sludenl Activities Advice & Representation Communications & Mark&ling 136,455 91,842 200,674 242,916 445,342 121,457 379,371 537,184 322,331 429.171 809.715 1 238 886 SUPPORT COSTS Governance costs Management Finance Totals Sludenl Adivities Advice & Representation Communications & thnark8ling 194,569 356,706 97,283 12,151 22,277 6.076 36.196 66,359 18,098 242,916 445,342 121,457 648,558 40,504 120,653 809,715 Activity Management Finance Govemance costs Basis of allocalion Based on usage Based on usage Based on usagg NET INCOMEIIEXPENDITUREI Nel incomellexpendilurel is slated after chargingllcredilingl.. 2023 2022 Auditors, remuneration Depreciation - owned assets 8.100 9,297 12,738 Page 23 continued... SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statements - contlnued for the Year Ended 31 July 2023 10. TRUSTEES, REMUNERATION AND BENEFITS The following transactions look place with sabbatical offic8rs in th8 year end8d the 31 sl July, 2023. Sabbatlcal Post D James M El-Jebaili F Rabbi AIKhan C Adams N Sadman Total Salary Employers Penslon £25,860 £20.741 £25,783 £23.798 £2,080 £2,080 £100,342 Employers NIC £2,377 £1,873 £2,365 £2,292 £182 £182 £9,271 Total £28.237 £22,614 £28,148 £26,090 £2,262 £2,262 £109,613 Trugto85' expenses Trustees expenses paid during the year w8r8 £11712022.. £nill. 11. STAFF COSTS 2023 2022 Wages and salaries Social security costs Other pension costs 634,171 $6,684 577,947 49,421 11.103 706 686 638471 The average monthly number of gmployees during the year was as follows.. 2023 26 2022 24 Averag8 Omployees The number of gmployees whose employ88 benefits (excluding employer pension costs) exceeded £60,000 was.. 2023 2022 £60,001 £70.000 Includod within staff costs above is the remuneration of Key Management Personnel (excluding IrL¢sleesl which amounted lo £135,813 for the year ended 31 July 2023. Page 24 continued... SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statements - contlnued for the Year Ended 31 July 2023 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unr8slric18d Reslric18d funds fund Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 1.220,628 1,220,628 Charltable actlvltlos Student Activities 22,378 22,378 Other trading activities Investment income Other income 41,317 1,250 468 41,317 1,250 468 Total 1.263.663 22,378 1,286,041 EXPENDITURE ON Raising funds 30,715 30.715 Charltable actlvltlès Sludenl Activities Advice & Represenl81ion Communicalions & Mark8llng 394,594 447,373 375,683 15,373 409.967 447,373 37$ 683 Total 1,248,365 15,373 1,263,738 NET INCOME Transhr# betwa8D fund• Oth•r rècognl$•d galnsl{lo••asl Actuarial gains on defin8d b8n8fil 5chomes 15.298 6.874 7,005 16,874) 22,303 118,377 118.317 Nat mov•mont In fundj 140,489 131 140,620 RECONCILIATION OF FUNDS Total funds brought foty4ard 11.126,4001 11,126.4001 TOTAL FUNDS CARRIED FORWARD 985,9111 131 985,7801 Page 25 conlinuad... SOUTHBANK STUDENTS, UNION LTD Notss to the Flnanclal Statements - contlnued for the Year Endfjd 31 July 2023 13. TANGIBLE FIXED ASSETS Improvèments lo property Fixtures and fittings Plant and achinery Computer equipm8nl Totals COST Al 1 August 2022 Additions 124,294 1.723 22,896 33,133 1,256 182.046 1.256 Al 31 July 2023 1,723 22.896 34,389 183 302 DEPRECIATION At 1 August 2022 Charg8 for year 51,703 6,513 1,723 7,450 26.338 87,214 14,123 Al 31 July 2023 58,216 12,401 101 337 NET BOOK VALUE Al 31 July 2023 Al 31 July 2022 72,591 15,446 6,795 94,832 14. STOCKS 2023 2022 Stocks 2,778 13,996 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Trade debtors Other debtors VAT Prepayments and accrued in¢om8 5,215 4,170 35 4.472 10,957 10.467 19,634 Page 26 continued.. SOUTHBANK STUDENTS. UNION L TD Notes to the Flnanclal Statements - contlnued for the Year Ended 31 July 2023 16. CREDITORS.. AkqOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Trade credilors Social security and other t8X89 VAT Other creditors Accruals and deferred income 23,446 15,879 2,166 4.849 2D,728 30.770 15,397 2,525 26,206 67,068 74,898 17. PROVISIONS FOR LIABILITIES 2023 2022 Provisions 1,748 750 1,559,932 MOVEMENT IN FUNDS Nel movement in funds Transfers be￿een funds Al 31.7.23 Al 1.8.22 Unro¥trlcted funds General fund Facilities and refurbishment fund Pension deficit Covid-19 fund National Sludenl Survgy 450,686 94,832 11,559,932) 12,513 1 S,990 104,095 (63,910) 112,886} 105,279 112,5131 15 9901 490,871 81,966 11.748,7501 1294,0971 1985,911) 1190,0021 11,175,913} Restrlcted fund8 Clubs and Societies 131 85 216 TOTAL FUNDS 985,7801 189,917} 11175,6971 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and Movement loss8s in fund5 Unrestrlctad funds General fund Pension deficit 1,322,105 {1,218.010} 39,013 104,095 294,097} 255,0841 1.322.105 11,257,023) {255,084) 1190.0021 Re5trlcted funds Clubs and Societies 9.229 {9,1441 85 TOTAL FUNDS 1,331,334 1.266,1871 255.084 189,9171 Page 27 continued... SOUTHBANK STIJDENTS. UNION LTD Notes to the Flnanclal Statemonts - contlnued for the Yaar Ended 31 July 2023 18. MOVEMENT IN FUNDS- contlnued Comparatlves for movoment In funds Net movement in lund8 Transfers belween funds At 31.7.22 Al 1.8.21 Unré8trlctsd fvnds Generdl fund Facilities and refurbishment fund Pension d8ficil Covid-19 fund Incorporduon fund National Student Survey 480,293 92,826 11,748,309> 12,513 20,287 63,383 192,9901 450,686 2,006 94,832 96,285 11.559,9321 12.513 92,092 121,8601 1,573 15.990 11,126,4CK)I 133,615 6,874 {985,9111 Ra8trlctod funds Clubs and So¢i¢lies 7,005 16,8741 131 TOTAL FUNDS 1,126,400 140,620 985,7801 Comparaliva nel mov¢m&nl in funds, included in the abov8 are as follows.. Incoming resources Resources exp8nd8d Gains and losses Movement in funds Unrestrlcted fundl G8n8ml fund Pension d8fi¢ll Incorporation fund 1,263,663 11,200,280) 126,2251 21,8601 63,383 92,092 21,8601 118.317 1,263,663 11,248,3651 118,317 133,615 R88trlcted funds Clubs and Societies 22,378 115,3731 7,005 TOTAL FUNDS 1,286,041 1,263,738) 118,317 140,620 Page 28 continued... sO￿HBANK STUDENTS. UNION LTD Motes to the Flnanclal Statements - contlnued for the Yoar Ended 31 July 2023 18. MOVEMENT IN FUNDS- contlDued A current year 12 months and prior year 12 months combinad tK)sition is as follows.. Nel mov8menl in funds Transfer8 belween fLJnds Al 31.7.23 At 1.8.21 Unrestrlcted funds G8nerdl fund Facilities and refurbishment fund Pansion deficit Covid-19 fund Incorporation lund National Student Survey 480,293 92,826 11.748,3091 12,513 20,287 15,990 167.478 1156,9(K)I 490,871 110,8601 81,966 201,564 {1,748,7501 112,5131 1,573 15,9901 (202.0051 121.8601 11,126.400) 156,3871 6.874 11.175.913) Restrlctèd fund8 Clubs and Socielles 7,090 16,8741 216 TOTAL FUNDS 11.126,4001 49,2971 11,175.6971 A ¢urrenl y8ar 12 mnlhs and prior year 12 rTrJnlhs combined net movement in funds, included in lh8 above aw as follows: Incoming resources Resources expended Gains and losses Movem8nl in funds Unra8trlct•d funds General fund Pension deficit Incorporation fund 2,585,788 12,418,290) 165,2381 21,8601 167,478 1202,0051 21,8601 1136,7671 2,585,768 12,505.3881 1136,7671 156,3871 Réitrlcted fund6 Clubs and Soci81ies 31.607 124,5171 7.090 TOTAL FUNDS 2,529,905 2,617,375 ￿ ￿136 7671 49,2971 Page 29 continued... SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statoments - contlnued for the Year Ended 31 July 2023 19. RELATED PARTY DISCLOSURES The London South Bank University provides the Union with an annual grant as shown in the Slalemenl of Finanaal Aclivilies. The London Soulh Bank University provid8s the Union with accommodation and a fang& of support services for which no actual charge Is made, however the value of this support has been recognis8d in the accounts as a benefit in kind. 20. EMPLOYEE BENEFIT OBLIGATIONS Deflned benefit schgme- SUSS The Union p8rlicipal8s in the Students. Union Superannuation Scheme. which is a delined benefit scheme whose membership consists of employees of students. unions and related bodies throughout the country. Benefits in respect of servic8 up lo 30 Seplernber 2003 are accrued on a 'Yinal salary" basi5, wilh benefits In respect of service from 1 October 2003 accruing on a Career Averag6 Revalued Earnings IGAREI basis. With 8ffecl from 30 Seplemb8r 2011 the Scheme clos&d lo fLJlur8 accrual. The most recent valuation of the Scherne was carried out as al 30 June 2022 and showed that the markgl value of the Scheme's assels wa5 £106,700.000 with these ass8ls ￿preSentIng 44Q/o of the value of benefits that had accrued lo members after allowing for 8xpecled lulure increases In earnings. The deficit on an ongoing funding basis amounted lo £136.60CI.000. The assumptions which have the most significant effect upon the results of the valuation are those relating lo the rale of return on investments and the rates of increase In salariès and pensions. Th8 following assumptions applied Al 30 June 2022:_ Dlscount rate; Bank of England gllt cutv• + 1.syu pa, Ilnearly changlng over a term of 13 year8 to gllls curye + 0.25Yo pa, Pension Increases.. A model of each increase. allowing for insurers, ￿ lalive pricing of different caps and collars. The 2D22 Valuation recommended a monthly contribution requirement by each Parlicipalin9 Employer expressed in monetary terms Intended lo clear the ongoing funding deficit by 1 May 2037 and wlll Increase by al18asl Soh each year. These contributions also include an allowance lor cosl of the ongoing adminislralive and operational gxpenses of running the Scheme of £5,038 pa. Surpluses or deficits which arise al future valuations will also Impact on the Union's lulure contribution comrnilmenl. In addition lo the above conlribulions, th8 Union also pays Ils 5harg of the Scheme's levy lo the Pension Prolgction Fund. The liability provided for in respect of the SUSS pension deficit increased lo £1,748,750 12022.. £1,559,932) al 31 July 2023 Is8e nole 171. Oeflned Contrlbutlon Penslon Scheme Since 1 October 2011, all participating employees have been in a new defined contribution pension scheme. the National Union of Students Pension Sch&me INUSPSI. Contributions are al variable rates up lo 6Q/. for the employer and a minimum of 3,10 for the ernployee. The Union's cosl ol contribution for the y8ar amounted lo £15.831 12022.. £11,103). Page 30 REGISTERED COMPANY NUMBER.. 13353590 {England and Wales) REGISTERED CHARITY NUMBER: 1194509 Report of the Tru8te88 and Flnanclal Statemants for thè Year Ended 31 July 2023 SOUTHBANK STUDENTS. UNION LTD Knox Cropper LLP Chartered Accounlanls and Slalulory Audllors 153 -155 London Road Hemel H&mpst8ad Herttordshire HP3 9SQ SOUTHBANK STUDENTS. UNION LTD Contents of the Flnanclal Statements for the Year Ended 31 July 2023 Pa Reference and Admlnlstratlve Dotsll8 Report of the Tru8te88 2 10 12 Roport of tho Independent Audltor8 13 10 15 Statement of Flnanclal Actlvltles 16 Balance Sh••t 17 Cash Flow Statement 18 Notes to the Cash Flow Ststem•nl 19 Note8 to Ihe Flnanclal Stat•ment8 20 10 30 SOUTHBANK STUDENTS, UNION LTD Reference and Admlnlstratlve Detalls for the Year Ended 31 July 2023 TRUSTEES M Dunwell Ms M El-Jebaili Ireswned 23.5.231 J H Gulrdjani B AC HLJdson DCAJames G K Johal Iresigned 13.1.231 A l Khan Iresigne(J 30.6,231 A Prelea (resigned 19.7,231 MsFTZRabbi Ms K E Wicklow Iresigned 11.10.22) C Adam5 (appointed 3,7.231 G Firmin {appoinled 23.5.231 S M E Islam lappoinl&d 16.1.231 T Monowar lappoinlad 16.1.231 N Sadman lappoinled 3.7.231 COMPANY SECRETARY REGISTERED OFFICE Student Centre South Bank Universlty 103 Borough Road Elephant And Castle London SEI OAA REGISTEREO COMPANY NUMBER 13353590 (England and Wales) REGISTERED CHARITY NUMBER 1194509 AUDITORS Knox Cropper LLP Chartered Accounlanls and Stslulory Auditors 153-1 $5 London Road Hemel H8mpslead Hertfordshire HP3 9SQ SOLICITORS Wrigley's Solicitors LLP 19-21 Cookridge Street Le&ds LS2 3AG BANKERS HSBC PLC 28 Borough High Street Soulhwark London SE1 1 IB Page 1 SOUTHBANK STUDENTS. UNION LTD {REGISTEREO NUMBER: 133535901 Raport of the Trustees for the Year Ended 31 July 2023 The Iruslees who are also directors of the charity for the purposes of the Companies Act 2CM)6. present their report with the financial statements ol the charity for the year ended 31 July 2023. The trust8es have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicab18 In the UK and Republic of Ireland IFRS 1021 leff8clive 1 J8nuary 20191. Page 2 SOUTHBANK STUDENTS. UNION LTD IREGISTERED NUMBER: 133535901 Report of the Trustees for tho Y8ar Ended 31 July 2023 STRATEGIC REPORT Achlavement and performancè Charitable actlvltles South Bank Students Union had a successful year, Improving results and achieving 85¥0 of annual KPIS exceeding largel in over 50°k of cases. See Table. 1 Tab. I 202212023 Key Porformanc8 Indlcators 2021 12022 2022 12023 {targoti 45.10 2022 12023 lactual} SILJdenls engaged in Su-led activity Students engaged in Su-led extra curricular activity Students engaged in Su-led academlc 8nhancemenl activity Students participating in democratic activity Students 8ngaged In Su-led retention activity 65 /0 courses with course representation Divisions represented vi8 slud8nl Voice processes Sludonl views collecl6d 150/¢ 15Vo 8¥. NEW 151 20/0 8% 7./0 15D/4 50 65°/. 7001. 84(h* 850/0 900 150 500 916 Increase on NSS Q26 scor8 Staff Engagement Éxtèrnal Audit Income generation Compliance 8udils 53Vo 82°/0 PASS 72Vo 90Y. PASS PASS £56k PASS 2K £56k PASS PASS Sludenl En emenl and Sludenl Voice The Union was successful in ils concerted efforts lo engage students from a broader cr05s-seclion of the University,. Apprentices.. Croydon., Havenng and those in their first year of study. In addition, the Union was ab18 to ensure that 84Yo of courses across 1000/, divisions had sludenl ropresenlalion. This stable level of inler8clion with a wide variety of students means that the Union is beller placed lo offèr m8aningful insight lo LSBU whlch can h81p shape and improve the sludenl experience, This work in no doubl contributed lo signifiGanl increase in the Union's NSS core for 2023 whioh rates sludenl satisfaction with th8 Union. The Union worked collaboralively with academic staff across schools lo deliver a number ol successful ac8demic enhancing aclivilies, this included support for 30 academic, subject based socielieslcommunilies., course-based events such as the Law school's Bar and Mooling competition and the Architecture society's mod81-making workshop. However, this work was impacted by a number of staffir7g vacancies in year which meant that il fell short of meeting ils increase largel frorn 2021122. Further work on developing relationships with university staff who co-deliver thi5 work has taken place, and through evaluation, and reassignment of resources good progress is now being made into 2023124, The overall largel for election participation for the year was significantly under expecl8lion. Thls Is a disappointing result given that Ihe team made a focussed effort to incenlivise and engage students in th8 democratic processes. This result is another indicator that the current traditional SU representation model is ouldaled for LSBU'S more progressive approach lo higher education. This was a significant finding during Ihg union's rnid-slralegy review which look place In Spring 2023. A full governance and democracy revièw is taking plac8 in 2023124 with a view lo driving up parlicipalion. Page 3 SOUTHBANK STUDENTS, UNION LTD (REGISTERED NUMBER: 133535901 Report of the Trustees for the Year Ended 31 July 2023 This year th8 SU has again worked with the university lo drive Na110nal Student Survey INSSI completion, helping lo coordinale a central schedule of NSS completion activity, as well as delivèr talks, support in classroom completion, and he5p monitor and 8valuale the impact of completion aclivilies This has been highly effeclive,. th& University has a higher completion mle in comparison lo last year and students completed the survey within a shorter lime frame, meaning Ih&y were less likely lo be chased by Ipsos Mori, and more likely lo have completed the survey directly after an NSS talk. This will have contributed lo improved results for both the University and the Union. The SU once again demonstrated the direcl way il enhances employabilily through th8 opportunities il olfers for paid and voluntary work experience. In 22123, over 700 students accrued over 70,000 hours of voluntary work experien￿.. leading societies, communities and networks., advocating for students,. and providing peer lo peer support. In addition. the Union provides over 8,000 hours of paid. flexible work for students al LSBU. conlribuling not only lo their ca￿er prospects, bul also lo their financial stability while studying. SBSU is proud (hal alongside a strong parl-lime sludenl stall 16am, 500/y ol ils full-lime workforce is made up of recent LSBU graduates or 51udenls on placement. Sludenl Su ort and Oulroach Notably, the Union almost tripled the number of sludenls supported through Advice and Outreach services. Thesè services are designed lo provide students with support and guidance wilh the specific aim of helping them slay in study and progress. The impact of this for one programm8 of work commissioned by LSBU providing support for students with resils - has recently been 8ssessed and data suggasls that the Su's Intervention irnproved the pass rale by 1 S-17'/.. In numerical terms, this in18rvenlion SLJpporled al least an additional 135 students lo pass their resil assessments who may not have passed wilhoul It. The Unlon was pleased lo support Lseu by leading the Black Students Peer Mentoring Project as parl of the Ofs funded initiative in Semesler 2. 40 students parlicipaled, receiving training lo complete mentoring Sessions with fellow Black students that focused on shared experiences with a goal lo increase access lo support 59rvic8s and wellbeing. 15120 pairs completed the program with evaluation In progr8ss. Participants reported finding the program deeply impactful and many reported that Il was the first and only lime they've had a space lo discuss race as parl of their educational lourn8y and lo meet other Black students. anisalional Health Work continued on slabilising organisalional health since IITe Union's turnaround in 2020, as demonslraled by a successful linancial audit, continued compliance checks and reporting and a furlh8r incréas8 In staff engagement. Proj&cled income largels from commercial services wore mel this year, however the Union undertook an exlemal review ol the Gommercial opportunities with a view lo both maximising potential of current income streams and exploring new ways lo diversify revenue. This review is now complete and has provid8d both the Union and the University with practical recommendations lo consider. Many of these are included In the Union's operational plans for 23124 along with the projected income growth. In addition. Ihe Union 8chievod other notable impacts across 2022123.. 450 students supported through the SU Advitè service Engaged 430/0 all Lev814 students Number of slLJdenls engaged with SBSU doubled since 20121 Engaged 13,10 of Part-lime students Including Apprentices 34.1. International students al LSBU were engaged in SU-18d activity Ov8r 2000 students joined an SU community group Page 4 SOUTHBANK STUDENTS. UNION LTD {REGISTERED NUMBER.. 133535901 Report of the Trusteès for the Year Ended 31 July 2023 STRATEGIC REPORT Flnanclal review The Union's gross income from all sources this year lolalled £1,331,33412022'. £1,286.0411. Total expendilure this year spent on a wide-range of sludenl benefits and revenue-generdbng achvity was £1,266, 167 12022.. £1,263,738116aving an operational surplus for the year of £65,16712022.. £22,303), Once the movements in relation lo the Unions. mèmbership of the Students. Union SLiperannualion scheme are taken Into account the Union had a réduction in Ils net funds of £189,91712022'. increase of £140,620). Designated lunreslricledl funds r81aling lo the ongoing costs associ818d with facilities improvements amounted 10 £81.96512022 £94,832). Designated funds relating lo the pension deficit amounted lo a negative £1,748,75012022'. £1.559.9321, Ihis is equal lo the provision. The Union also holds reserves lo cover unexpected evenlL181ili8s and also ensure there are sufficient reserves lo resource planned capital 8xpendilure. General Fund rèserves at the 31 July 2023 were £490,871 12022.. £450.6861 which has been designa18d as 8 proleclèd minimum amount (shown as "A¢cumulaled Funds'l. The Union is curr8nlly affiliated lo the National Union of Students INUSI, for which Ihe lolal subscnplion cosls amounted lo £23,62512022.. £22,500) for the y8ar, and no donations were made during the year lo any external inslilulions out ol SBSU's own resources, Funds Held as Custodlan Truste8 In addition lo the granl-supporl funds Il disburses lo Clubs and Societies, SBSU acts as custodian for funds raised by the Clubs and Soc181ies themselves, Club and Society funds are Irealed as reslricled funds. which are included In reslricled funds In the aceounls. The holding of club and soaely balances Is subject lo the same safeguards as balances btslonging lo the Union. bul their funds are 8ccounled lor $8paralely lo ensure that balances are appropriately proleclod. Reslricled society fund balances were £21612022., 1311. Future Fundlng The Board confirms that SBSU has sufficient funds lo meet all ils obligations. The Union is in r8C8ipI of a recurring block grant from th8 University which represents Ils principal source of funding, with the amount subject 10 8nnual confirmation. For accounting yèar 2023-2024 the Union has been awarded a block gr8nl of £1,010,000. Page 5 SOUTHBANK STUDENTS. UNION LTD IREGISTEREO MUMBER.. 133535901 Report of the Trustees for thé Year Ended 31 July 2023 STRATEGIC REPORT Prlnclpal rlsks and uncortalntles The Trustee board are responsible for the Union's risk management. The senior management team have del&g8led aulhority for identifying and ffjporting on the risks facing the organisalion lo the Trustees as they arise in relation lo items of business al the Board. In addition, the senior management t8am provide information on nsk lo enable Trustees lo undertake an annual r8view. The Trustee Board examings the Union's major slralegic, business and operational risks on an annual basis. The Trustees confirm Ihal systems have been established lo enable r8gular reporting which allows them lo tske th8 necessary steps to miligalg any risks The pnncipal risks and uncerlainlies currently facing the Union are considÈr8d lo be.. Declining participation in th& Union's democratic processes has resulted over recent years in a lack of diversity and cross-school reprasenlalion wilhin the Union's major decision making bodies. To counter this, Trustees have commissioned a lull review of thes8 processes in 2023124 with a view of redeveloping the Union's model of delivery lo make il sustainable for the fulur8. Possible reduction in funding by the University. We have ongoing conversations throughout the year concerning funding and we are fully Included Into the University's finance planning process enabling us lo negoliale and plan for increas8s or decreases in our funding allocalion, The financial healih of the Univer511y Is Itself dependent on ils own income, which In lum is susceptible lo factors beyond the control of the Union ond we are regularly updated on the University's financial situation and, once again, ansure that this Is included In any longer-lerm strategie5. Repulalional d8mag8 In the unlikely event of a high-profile activity by a Iruslee or sludenl represenlalive, Induction for Trustees and repr8senlalives Includes full information of th& responsibilities wilhin the rale and we work closely with all of them lo ensure Ihey are fully aware of Union aclivily. Regular updates with Iruslees ensure that Iruslees have the opportunity lo work Ihrough the organisalion lo meet any objective they may have. Overall, we work very closely with the Universily, slud&nls and Trustees lo ensure that we have knowledge of their aclivily. We use OLJr plans and strategies lo manage risk including the Union's reserves strategy. strategic plans. maintaining effeclive internal controls. risk registers, incidenl-reporting and monitoring systems and n5urance cover wherever appropriate. Page 6 SOUTH8ANK STUDENTS, UNION LTD (REGISTERED NUMBER: 133535901 Report of the Trustee8 for thè Yoar Ended 31 July 2023 STRATEGIC REPORT Future plans New oparalional KPIS for 23124 have been sel and progress is being reported lo trustees quartedy. EDg45gment 52•A Students Engaged In Su-led actlvlty 30 °/0 of Appr8nticeslPT engaged in Su-led aclivlty 40.￿ of In18malional engaged in Su-led activity 30 % of Croydon based students are engaged in Su-led aclivlty 20°h of Hav8dng based students engaged In Su-led activity 60% of Flrst years engaged in Su-led aclivlty 38Y. Students receivp SU Support and advice to help them stay In study 450 students supported though SU Advice S&rvi¢8 350/0 studen18 received direct SU outreach support 209A Siudents engaged In Su-led academic based actlvlty 1500 slud8nls involved in academic commLJnity acllvity 590 Slud8nls electèd as a Cour88 Rap 1600 Students vole in an SU •le¢tion 15'/,, Stiider?fs engaged iii Su-led ro1."i'edtloi?al activlty. 1200 students involved in SU Inon-academicl communlty acllvity 55Vo First years engag8d In Su-led welcome actvity Ii'/e.'> fCinii-InLiieJ ro riipir ,?c IriLJtyI,' SUiLess 900 Sludenl vlews collected 65¥0 views reported and 520/ts acl8d on g0¥0 of courses with sludenl representation 100% divisions represented across sludenl voice tracker 90 /, KPIS A rhlpvpd. 20V/D E¥reHdgrl 90•/D Staff Ihir)k SBSU is a great place lo work 1000/0 Income targels met 95 /0 Compliance audlts completed, 90Vo passed Extemal Finance Audit passed 90Vo n8w students are opted in SU mgmbers 85¥0 LSBU Partners are salisfled with th8 SU'S Contribulion lo sludenl SUGcess Page 7 SOUTHBANK STUDENTS. UNION LTD (REGISTERED NUMBER: 13353590} Report of the Trustee8 for the Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng documont The charity is controlled by its goveming document, a deed of trust. and con81ilules a limited company, limited by 9uarant8e, as d8fined by the Companies Act 2006. Key Management Personnel Key management p8rsonnel includ8 the Chief Executive, Deputy Chief Execulive and pald sabbatical officers. South B8nk University Students, Unlon ISBSUI employs a Chlef Executive lo work closely with the Trustees and ensure effective management of Ihe Union. Page 8 SOUTHBANK STUDENTS, UNION LTD (REGISTERED NUMBER.. 133535901 Rgport of the Trusteas for tho Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Declslon maklng The Union is constituted under the Education Act 1994 as a charity. The Union's charitable objects are.. promoting the Inler8sls and welfare of Students al London South Bank University during their Gourse of study and representing, supporting and advising Students., being th8 rscognised r8prgsenlalive channel bebfveen Sludenls and Londan South Bank University and any other external bodies., and providing social, cultural, sporting and recreational activities and forums for discussions and debat8 for the personal development of ils Students. In furtherance ol these aims the trustees have complied with their duty In s.17151 of the Charilies Act 2011 10 have due regard lo the Charily Commission's published general guidance concerning the operation of tha public benefit requirement under that AGI, In pursuit of these aims for the public benefit, S8SU'. Ensur8s th8 diversity of ils membership is recognised, valued and supported.. Has eslablishgd departments and services for us8 by ils members and lo support ils work with Ihe University and other organisalions on behalf of students. These include the Union's Representation and Advi¢e, Communications, Centr81 Services and SI￿dent Activities DBparlmenls. The Union's Sabbatical Officers and Council members are the students, r8pr8senlalives on 811 malor Univ8rslly commillees and the University's Board of Gov8rnors, and af8 supported by membors ol the union's staff team that act as a secretarial. The Union represents ils members (London South Bank University's sILJd8nlsl on relevant local, national and inlernalion81 issues by maintaining contact with sludenl represonlalivtss. Such contact ensures Ihal the Union can 18k8 into account students, requir8menls and cater effectively for Ihair needs. Siudenl represenlalives are present on the University's policylslralegy making 8oardslCommitte&s and are also members of Course Boards within the University's faculties I"SGhools"l. In preparation for changing Ihe 18gal form of the Union lo a Company Lirniled by Guarantee, the University Board of Gov8rnors formally apprDved Articles of Assoclalion including internal regulsjlions and Memorandum of Understanding for the Students, Union al ils meeting on the 25 March 2021, and by the Union's board of Trustees on 16 March 2021. Members ol the Union resolved lo allow the transfer of assets and liabililiÈs, and the dissolullon of the unincorporaled enlily al an AGM held on 29 March 2021 SBSU was formally registered by the Charity Commission on 18 May 2021 and registered by Companies House on 23 April 2021. The transfer of deeds was effective from 31 August 2021. SBSU is administered by ils Trustee Board of 4 Sabbatical Officers, and up lo 4 Students and 4 Exlornal Iruslees, for the PL¢rposes of the Charities Acts. The four Sabbatical posts are President, Vice Presidents of Education, Ac11vilies and Ernployabilily and Welfare and Equalities, The Sabbatical p051s are r&muneral8d as aulhorised by the Education Act and an individual's term of office cannot exceed two years duration,. an Officer can be re-elected for a maximum of two terms in the same or different positions. Th8 President and Union Council Chair arg required lo sil on Ihe Universily's Board of Governors. Th8 Union operates on democratic principles, with supervisory power ves19d in the Union'5 Council, which.. Furthers the aims and objects of the Union., Receives minutes and rgporls from the Executive, Union Commille&s and Union Officers., Considers recommendations, motions and business as appropriate.. and Elects 51udenls (apart from Sabbalical Officers) lo serve on Union and University committees. Page g SOUTHBANK STUDENTS. UNION LTD IREGISTEREO NUMBER: 133535901 Report of the Trustees for the Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Council membership comprises the Sabbatical Officers together with Siudent Representative Officers and the Sludenl Govemors (which includes the Union's Sabbatical Presid8nll Slud8nl Represenlalives commence their lerms of office subject lo complelion of an appropriate course of training. This includes, for Sabbatical Officers, where possible, a handover with the outgoing Sabbatical Officer and training on the roles and responsibilities of Trustees (legal and adminislralivel. with an ongoing training programme as and when needed lor Issu&s arising during their term of office. charity Trustees, all Truslees receive a comprehensive training programme into their legal and adminislralive r8sponsibililies 81 the start of (heir term of office, with ongoing guidance as and when required for issues 8rising during Ih8ir term, The Trustees meet Ihroughoul rhe year lo receive reports from individual Officers and Union employees lo review the Union's perfonnance and adminislralion. Recommendations for Union policy are made lo Ihe Trustee Board lo consider and approve policy. Key Inlorrnalion Is provided lo Trusle8s which includes accounts, the slol&gic plan, and an organisalional diagram. Truste8 knowledge and skills ar& evaluated al regular Intervals and training ￿S designed around the specifiG needs of Individuals and the Board as a whole. Through the Union's membership of the National Union of Students. Trustees have access lo &xp&rt advice and guidance, conferences, and Imining. SBSU also employs a number of non-sludenl lull and parl-lime staff for the sake of continuity In th6 management of it5 many aclivilies. Such staff are accountabl& lo thg Chief Executive for lh8 performance of their duties. The overview ol the staff structure Is.. Chief Executive Finance Manager > Finance Team People & Office Manager > People & Office Team ul Chief Ex8cuIIv8 Student Voice & Outreach Manager > R8presenlalion & Oulreach Team Advice Manager > Advire Team Head ol CommerGial Q eralions ? Communications Team Sludenl Communities & Events Manager > Student Activities Team Kay mhnaggmgnt remLtnoratlon The remuneration of key managem&nl personnel is sel by th& Board, with the policy objective ol ensuring Ihal they are provided with appropriate incenliv88 to encourage enhanced performance and are, in a fair 8nd responsible mann9r. rewarded for their Individual contributions lo the Union's success. The approprial8ness and relevance of their remuneration is reviowed regularly, and will include lob market analysis and raferenca lo comparisons with olhef unions lo ensure that the Union remains sensitive to the broader Issues of pay and ernploymenl conditions elsewh&re. We aim lo recruit, sublecl lo experience, al the lower lo medium point within a band, providing scope lo b6 rewarded lor excellence. Dolivary of the Union's charitable vision and purpose is primarily dependgnl on our key managemonl personnel and staff cosls are the largÈsl 51ngle element of our Gharilable 8XP8ndilure. Pag8 10 SOUTHBANK STUDENTS. UNION LTD (REGISTERED NUMBER: 13353590) Report of the Trustaas for the Year Ended 31 July 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Relatlonshlp wlth the Unlver55iy SBSU is established in the Universitls Memorandum and Articles of Associalion in that there shall be a Students. Union. The Union receives a SubvenlionlBlock Grant from the University, and In-kind support related lo ulililies. some security staff ancl the majority of the costs associated with cleaning and premises maintenancè. The non-monelary support Is intrinsic lo Ihe relationship between the University and SBSU. As recommendèd by the Charities SORP an 881imaied value lo SBSU lor this free serviced accommodation has been included In the accounts al an 8slimaled value Ibased on prior year spaca charge calculations). Although SBSU undertakes some income generating aclivilies, Il is dependent on Ihe University's financial support. The Iruslees consider il reasonable lo anlicipale that this or equivalent support from the University will continua for the foreseeable future, as the Education Act 1994 imposes a duly oll the University lo ensure the financial viability of Ils student rapresenlalive body In onè form or another. Tha Iruslees th8r8lore consider Ihe Union lo be financially viable for the fores8eabl8 lutLJre. STATEMENT OF TRUSTEES, RESPONS181LITIES The Iruslees (who are also the direclDrs of Soulhbank Students, Union Ltd for th8 purFK)ses ol company lawl are responsible for preparing the Report ol the Trustees and the financial slalemenls in accordance wilh applicable law and United Kingdom Accounting S18ndards (United Kingdom Generally Accepted Accounting Praclicel. Company Igw requiffjs the Iruslees lo prepare linancial slalemenls for each financial year which giv8 a true and lair view of the stale ol affairs of the charitable company and of the Incoming resourcas and application of resources, InclLiding the Income and expenditure, oy the charitable company lor that period. In pr8paring those financial stalemenls, the Iruslees are requirèd lo selecl suitable accounting policies and then apply them consislènlly., observe the Fnelhods and principles In the Charily SORP., make judgements and eslimales that are r8asonable and prudent.. slate whether applicable accounting standards have bean followed, sublecl lo any mal8rial dapartures disclosgd and explained in the financial slalemenls., prepare the financial slalemenls on the going concern basis unloss il Is inappropriate lo presume that lh8 charitable company will continue in business. The Iruslges are responsible lor keeping proper accounting records which disclos8 with reasonable 8ccuracy al any time the financial position of the charitable company and lo enabl8 Ihom lo ensure Ihal Ihe financial slalements comply with the Companies Act 2006. They are also responsible for safeguarding (he assèts ol the charitable company and hence for taking reasonable steps for the prevention and dèl&clion of fraud and other irregularilie5. In so far as the trustees are awar8'. there is no relevant audit Inlormalion of which th8 charitable company's auditors are unaware., and the Iruslees have laken all steps that they ought lo have taken lo make Ihems8lve8 aware of any r8levanl audit information and lo establish that the auditors are aware of that Information. AUDITORS The auditors, Knox Cropper LLP, will be proposed for rè-appoinlmenl 81 the forthcoming Annual General Meeling. Page11 SOUTHBANK STUDENTS. UNION LTD (REGISTERED NUMBER: 133535901 Report of Ihe Trusteos for the Year Ended 31 July 2023 Report of the trustees, Incorporats'ng 8 slr8tsgic repart, approved by order of the board of Iruslees, as the company directors, on ...1￿...￿Ck￿,,.Io.II4.. and signed on the board's behalf by.. Trus18e Page 12 Rèport of thè IndÈpÈndent Auditors to the Mombers of Southbank Student5. Unlon Ltd Oplnlon W8 have audited the financial statements of Southbank Students. Union Ltd Ilhe 'charilable company) for the year ended 31 July 2023 which compris8 the Statement of Financial Aclivilies, the Balance Sheet, rhe Cash Flow Slalemenl and Notes lo the financial slalemenls, Induding a summary of significant accounting policies. The financial reporting framework Ihal has b8en applied In their preparation Is applicable law and United Kingdom Accounting SianLlards (United Kingdorn Generally Acc&pled Accounting Praclicel. In our opinion the financial slalemenls.. give a true and falr view of the slate of lh8 charitable company's affairs a5 al 31 July 2023 and of Ils Incoming resources and application of resources, including ils Income and expenditure. for the year then &nded,. have been proparly prepar&d In accordance wilh United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those slandards are further d&scribed In the ALJdilors' responsibilities for th& audil of the financial slalemenls section of our report. We are independent of the charitable company In accordance with th8 ethical requirements th81 are relevant lo our audit ol the financial slalernenls In the UK, Including the FRC'S Ethical Standard, and we have fulfilled Okjr other ethical respon5ibililies In accordance with these requirernenls. We b&li8vo that the audit evid8nc& we have obtained is sufficient and appropriate lo provide a basis for OLJr opinion. Concluslons r•lalln9 to golng concern In aLJdiling the financial slalemenls, we have concluded th21 the IrLJsl&es' us8 of the going concern basis of accounting in the preparation of the financi81 slalemenls is appropriate. Based on the work we have perform&d, we have not idenlilied any material unc8rlainli8s relating lo events or conditions that, individually or collectively. may cast significant doubl on the charitable company's ability lo conlinue as 8 going cor)cèrn lor a period of al least twelve months from when the financial slalemenls are aulhoris8d for issu8. Our re8POnsibililies and the responsibilities ol the trustees with respect lo going concern are described In the relevant sections of this report. Other Informatlon The Irusle8s are responsible for the other Information The other information comprises the information included in the Annual Report. other than the financial slalemenls and our Report of the Independent Auditors Ihereon. Our opinion on the financial slalemenls does not cover the other Information and, except lo the exlenl olhenNise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In connection with our audit of the financial slalemenls, our responsibility is lo read the olh&r information and, in doing so, consider whether the other information Is materially inconsislenl with the financial slalements or our knowledge oblained in the audit or otherwise appears lo be materially misslaled. If we identify such material Inconsislenci&s or apparent rllalgrial misslalem8nls, we ar6 roquired lo do18rmine whether Ihis gives rise lo a material misslalemenl in the financial slalemenls themselves. If, based on the work we have performed, we conclude that there is a mal&rial misslalemenl of this other information, we are ￿qUired lo report that facl. We have nothing lo report in this règard. Oplnlons on other mattors prescrlbed by the Companles Act 2006 In our opinion, based on the work und8rlaken in the course ol the audit,. the information given in the Report of the Trustees for the financial year for which the flnancial stalemenls are prepared is consislenl with the financial slalèmenls,. and the Report of the Trustees has been prepared in accordance with applicable legal requiramenls. Page13 Report of the Independent Audltors to Ihe Members of Southbank Student5, Unlon Ltd Matters on whlch we are raqulred to report by exceptlon In the light of Ihe knowledge and understanding of the charitable company and its environment oblaineé in the course of the aLJdil, we have not identified material misslatemenls in Ihe Report ol the Truslegs. We have nothing lo report in respect of th8 following mallers where the Companies Act 2006 requires us lo report lo you if. in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been r8c8ived from branches not visiled by us.. or the financial slalemenls are not in agreement with the accounting r8cords and returns., or c&rlain disclosures of Iruslees, remuneration specified by law are not made,, or we have not recèived 211 the Information and explanations we require for our aucjil, Responslbllltles of trustees As èxplained more lully in the Slalem8nl of Trusl&es' Responsibilities, the Irusle6s (who are also the directors of the charitable company for Iha purposes ol company lawl are rasponsible lor the preparation of the financial slalemanls and for being satisfied that thèy give a trué and fair view, and for such Internal control as the Iruslees determine is necessary lo enable the preparation of flnancial slalem8nls that are fr8e from material misstalemenl, whelh8r due lo fraud or error, In preparing the financial slal8menls, th& Iruslees are responsible for assessing the charilabla company's ability lo continu8 as a going concern, disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless the Irusle8s either intend lo liquidale th8 ¢haritable eompany or lo cease operations, or have no realistic allernalive bul lo do so. Our rasponslbllltle8 for the audlt of the flnanclal Statements Our obieclives arg lo obtain r88sonable assurance aboul whether the financial sla18menls as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue a Report of th8 Independent Auditors that includes our opinion. Reasonabl6 assurance Is 8 high level of assurance, bul Is not a guaranlge Ihal an audit ctsnducled in accordance with ISAS IUKI will always delecl a malerial misslalemenl when il exists. Misslalemenls can ari58 from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be exp8cled to influence the economic decisions of users taken on the basis ol th888 financial slalemenls. The exl8nl lo which our procedLJres ar8 capable of delects'ng irregularities, including fraud is delailed below.. Tha Charity Is required lo comply with charity law and, basgd on our kllowledge ol Ils aclivilies, we identified that tho legal roquiremenl lo accurately account for any reslricled funds was ol key significance. We gained an und8rslanding of how Ihe charily complied with ils legal and r8gulalory framework, including the requirement lo properly account for any reslriclad funds, through discussions with man8gemenl and review of the documented policies. procedurès and controls. Tho audillgam. which Is experienced in Ihg audit of charities. considered tho charity's susceptibility lo material misslalem8nl and how fraud may occur. Our considerations Included Ihe risk of man8gemenl override. Our approach was lo check that all reslricled income was properly Identified and separa161y accounted for and lo 8nsure that (>nly valid and appropriate expenditure was charged lo rest￿Cted funds. This includ&d reviewing journal adjkjstménls and unusual Iransacts'ons. There a￿ inherent limilalions in the audit procedures described above and, the further removed non- compliance with laws and regulations Is from the events and transactions rgflecled in the flnancial slalements, the less likely we would become aware of it. The nsk of nol delecling a material mis51alemenl due lo fraud is higher than th& risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intention81 misrepresenlalions, or Ihmugh (x)Ilusion. A further description of our responsibilities for the audit of the financial slalemen15 is located on the Financial Reporting Council's website al www.frc.org.ukJauditorsresponsibililies. This description forms part of our Report of the Independent Auditors. Page 14 Raport of the Indo￿ndent Audltorg to the M8mb8rs of Southbank Students. Unlon Ltd Use of our report This rgport is made solely lo Ihe chantablè company's members, as 8 body, in accord8nce with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state lo the charitable companls members those matters we are required lo slate lo Ihern In an auditors. report and for no other purpose. To thè lullesl exl8nl permilled by law. we do not accept ar assume responsibility lo anyone other than the charltabl8 company and the charitable companvs niembers as a body, for our audit work, for this report. or for the opinions we have formed. steph8n Anderson FCCA (Senior Slalutory Audilorl for and on behalf of Knox Cropper LLP Chartered Accountants and Slalulory Auditors 153 -155 London Road Hemal Hempstead Harffordshire HP3 9SQ Dale.. Page 15 SOUTHBANK STUDENTS. UNION LTD Statement of Flnanclal Actlvltle$ for the Year Ended 31 July 2023 2023 Total funds 2022 Total funds Unrestricted funds Reslricled fund Notes INCOME AND ENDOWMENTS FROM Donations and legacies 1.259.451 1,259,451 1,220,628 Charftable actlvltles Sludenl Activities 9.229 9,229 22,378 other trading activities Invoslmenl income Other income 56,447 4,378 1,829 56,447 4,378 1,829 41,317 1 ,250 468 Total 1,322,105 9,229 1,331,334 1,286,041 EXPENDITURE ON Raislng lund5 27,281 27,281 30,715 Charltabl8 actlvltlos Sludenl Activities Advice & R8pres8nlalion Communicallons & Marketing 370.227 537.184 322.331 9,144 379,371 537,184 322,331 409,967 447,373 375.683 Total 1257,023 1,266,167 1,263,738 NET INCOME other rgcognlsed galn6111086es) Actuarial gainslllossesl on defineé benefil schemes 65,082 65,167 22.303 255,084) 255 084 118,317 Net movement In funds 1190,002) 85 {189,917} 140,620 RECONCILIATION OF FUNDS Total funds brought forward 1985.9111 131 1985,7801 11,126,400) TOTAL FUNDS CARRIEO FORWARD 1,175.9131 985,7801 The notes form part of these financial slalemenls Page 16 SOUTHBANK STUDEiifs' UNION LTD (REGISTERED NUM8ER.' 133535901 Balance Sheet 31 July 2023 2023 Total funds 2022 Total funds unreslric18d Restricted funds fund Notes FIXED ASSETS Tangible assets 13 81,965 81.965 94,832 CURRENT ASSETS Stocks Debtors Cash al bank 14 15 2,778 10,467 544,695 2,778 10,467 544,911 13,996 19,634 520,588 216 557,940 216 558.156 554,218 CREDITORS Amounts falling due Wlthln one year 16 (67.0681 167,0681 174,8981 NET CURRENT ASSETS 490 872 216 491088 479.320 TOTAL ASSETS LESS CURRENT LIABILITIES 572.837 216 573,OS3 574,152 PROVISIONS FOR LIABILITIES 17 11,748,750) 11.748,7501 11.559,9321 NET ASSETSI{LIA8ILITIES) 1,175913 985.7801 FUNDS Unreslricl8d funds Reslricled funds 18 11.175,9131 216 1985,9111 131 TOTAL FUNDS 1,175.6971 985,7801 The financial slal8m8nls were approved by the Board of Trustees and authorised for issue on .114 JcLn... 20L<+..... and wgre signed on ils behaw by.. Trustee The notes form part of these financial slalemenls Page 17 SOUTHBANK STUDENTS. UNION L TD Cash Flow Statèmént for the Year Ended 31 July 2023 2023 2022 No18S Cash flows from operatlng acllvltles Cash g8n8r8ted from operations 21.201 39,5591 Nel cash provided byllused inl operab'ng activities 21,201 39 5591 Cash flows from Inv•#tlng hctivltlo8 Purchase of tangible fixed assets Inlèrèsl r8cèivèd 11,2561 4,378 114,7441 1,250 Nel cash provided byllused inl investing activities 3.122 13.4941 Changè In c&•h and caih •qulval•nt• In the reportlng perlod Cash and cash equlvgl•ntS at the beglnnlng of tho reportlng porlod 24,323 153,0531 520,588 573,641 Cash and cash équlvalonts at th• ond of tho roportlng pgrlod 544,911 520,588 The notes form part of these finanoal statements Page 18 SOUTHBANK STUOENTS. UNION LTD Notes to the Cash Flow Statement for the Year Ended 31 July 2023 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTMTIES 2023 2022 Net Income for the reportlng perlod (as per the Stalomenl of Flnanclal Actlvltl951 Adlustmènts for.. Depreciation charge5 Inl8resl r8celved Defined benefit scheme adluslm8nls Decrease in stocks D8cr8asellincreasel in debtors IDecr88s8llincreASe in crèditors 65,167 22.303 14,122 14.3781 {66,2651 11,218 9,167 7.830 12,738 11,2501 170,0631 7.082 115,7001 5,331 Net ¢a¥h provlded byllus•d Inl operatlon8 39 5591 ANALYSIS OF CHANGES IN NET FUNDS Al 1.8.22 Cosh fl¢)W At 31.7.23 Net cash Cash al bank 520 588 520 588 Total S20.588 24,323 544,911 The notes form part of these financial statements Page 19 SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statements for the Year Ended 31 July 2023 ACCOUNTING POLICIES Basls of preparlng the fln8nclal statements The financial slalemenls of the charitable company, which is a public benefit enlily under FRS 102, hav& been prepared In accordance with the Chanlies SORP IFRS 1021 'Accounling and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in th8 UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable In the UK an(J Republic of Irgland, and the Companies Act 2006. The financial slalemenls have b88n prepared under the historical cost convention. Income All income is recognised in the Slalemenl of Financial Activities once the charity has enlillemenl lo the fLJnds, Il Is probable that the income will be received and Ihe arnounl c8n be measured reliably. Expendlture Liabilities are r8cognised as expenditure as soon as there Is a legal or conslruclive obligation commilling the charity lo that 8xpendilure, Il Is probable that a transfer ol economic benefits will be required In s81118menl and the amount of the obligation can be measured reliably. Expenditure Is accounled lor on an accruals basis and has been classified under heading5 that aggregate all cosl related lo the ¢alegory. Where costs c3nnol be directly allribuled lo particular headings they hav8 boen allocated lo activities on a basis consislenl with the use of resources. Tanglble flxed assets Deprprialion Is provided al the following annual rates in order lo write off each asset over ils eslimaled useful life. Improvem8nls lo property Plant and machinery Fixtures and fillings Computer equipment Slr8ighl line over 15 years 25 /0 on cost 25010 on cost 250/0 50010 on cosl Stocks Stocks are valued al the lower of cost and nel realisable value, aller making due allowance lor obsolete and slow moving items. Taxatlon The charity Is exempl from corF)oralion lax on its charitable aclivilies. Fund accountlng London South Bank University Sludenls, Union administers and accounls for a number of charitable funds, as follows.. lil Unreslricled Funds rgpresenling Ljnspenl income which may be used lor any 8clivilylpurpose al the Trusleos, own discretion.. lill Reslricled funds raised and administered by London South Bank Univ8rsily Slud8nls' Union for specific purposes as determined by students. such as Club and Societies Accounts, as well as revenue received for purposes specified by the donor and also lif not material enough lo reqLJire a separate column in thè SOFA) any small capilal grants received from the College. liiil CLJStodian Funds enlrusled lo London SoL¢lh Bank University Students, Union for safekeeping, bul not under ils managemgnl control. e.g., annual RAG. Such custodian activities are disclosed in the Annual Report. bul as the funds are not managed by Londan South Bank University Students. Union they cannot be included In the accounts. Page 20 continued... SOUTHBANK STUDENTS. UNION LTD Notes to the Flnanclal Statamants - contlnued for tho Yoar Ended 31 July 2023 ACCOUNTING POLICIES- contlnued Fund accountlng livl Designal8d Funds relating lo amounts sel aside from existing reserves lo cover reslrucluring costs, including depreGialion associated with refurbishm8nl work. Iv) Translers from Unreslricled Funds lo Designated Funds represent planned cosls associated with restructuring which have been financed from the Union's reserves. These include capilal refurbishment costs. Pgnsion costs and other post-r6tirement ben8flts Retirement benefits lo &mployees of the Union are provided Ihrouoh two pension schemes, one defined benefit ISUSSI, the olhar defined conlnbulion INUSPSI. suss Th8 Union parlicipales in lh8 Students, Union Superannuation Schem8 ISUSSI, 8 defined benefit scherne which is externally funded and contracted out of the Slate Second Pension. The fund is valued al least every three years by a professionally qualified Independenl actuary with the rates of contribution payable being d&lermined by the trustees on the advice of the actuary. The most recent voluation of the Sch8me was carried oul as sjl 30 June 2022 and showed that the mark81 value of the Scheme's ass8ls was £106,691,000 with these asstsls rèpresenting 44'/o of the value ol benefits that had accrued lo members aller allowing for expected lulur8 inoreases In earnings. The deficit on an ongoing funding ba8is amounted lo £136.645,000. The 2022 valuation recommended a monthly contribution r8quiremenl by each participating Union inlended lo clear the ongoing funding delicil ending in 2037. incr8asing by 5Q/o each year, The scheme operates as a pooled arrang8menl, with conlribulion8 paid al 8 C6nlrally agreed ratè. As a consequènce, no share of the underlying assets and liabilities can be directly allribuled lo the Union. Under FRS 102, where a scheme parlicipales in a rnulli-employer defined bgnefil pension scheme that is In deficit and rhe employer has entered into an agreement lo fund the deficit the enlily shall recognise a liability for the conlribulions payable that arise from the agreement. As Ihg agreement runs until 2037. a discount rale of 2.5'/0 has been applied In dglermining the nel present valu8 of the contributions made in the period. usps Since 1 October 2011, all participating employees have b8en in 8 new defined contribulion p8nsion scherne, National Union of Students Pension Scheme INUSPSI. Contributions are al the ral& 0161/10 for the employer and 3Q/o for Ihg employe& pensions costs a￿ charged in the period in which Ihe salaries lo which they relate are payable. Page 21 continued... SOUTHBANK STLIDENTS. UNION LTD Note8 to the Flnanclal Statements - contlnued for the Ygar Ended 31 July 2023 DONATIONS AND LEGACIES 2023 2022 Gifts Donations Grants Donated s8rvic8s and facilities 121 980,000 15,011 225,619 1,032,000 1,832 225 619 1.259,451 1,220,628 Grants received, Includad in the above, arè as follows.. 2023 2022 KIGk start grant 15.011 OTHER TRADING ACTIVITIES 2023 2022 Fundraislng events M8rchandising Marketing 1,719 22,858 6.108 31,800 INVESTMENT INCOME 2023 2022 Deposit account inler&$l INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Activity Clubs and Societies income Sludenl Aclivllies 9,229 22,378 Pag& 22 continued... SOUTHBANK STUDENTS. UNION LTD Notes to the Flnanclal Statements - conllnued for th8 Year Ended 31 July 2023 RAISING FUNDS Raising donatlons and legacles 2023 2022 Sundries Merchandise 1.215 29,500 27,281 27,281 30,715 CHARITABLE ACTIVITIES COSTS Support costs (see nol8 81 Direct Costs Totals Sludenl Activities Advice & Representation Communications & Mark&ling 136,455 91,842 200,674 242,916 445,342 121,457 379,371 537,184 322,331 429.171 809.715 1 238 886 SUPPORT COSTS Governance costs Management Finance Totals Sludenl Adivities Advice & Representation Communications & thnark8ling 194,569 356,706 97,283 12,151 22,277 6.076 36.196 66,359 18,098 242,916 445,342 121,457 648,558 40,504 120,653 809,715 Activity Management Finance Govemance costs Basis of allocalion Based on usage Based on usage Based on usagg NET INCOMEIIEXPENDITUREI Nel incomellexpendilurel is slated after chargingllcredilingl.. 2023 2022 Auditors, remuneration Depreciation - owned assets 8.100 9,297 12,738 Page 23 continued... SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statements - contlnued for the Year Ended 31 July 2023 10. TRUSTEES, REMUNERATION AND BENEFITS The following transactions look place with sabbatical offic8rs in th8 year end8d the 31 sl July, 2023. Sabbatlcal Post D James M El-Jebaili F Rabbi AIKhan C Adams N Sadman Total Salary Employers Penslon £25,860 £20.741 £25,783 £23.798 £2,080 £2,080 £100,342 Employers NIC £2,377 £1,873 £2,365 £2,292 £182 £182 £9,271 Total £28.237 £22,614 £28,148 £26,090 £2,262 £2,262 £109,613 Trugto85' expenses Trustees expenses paid during the year w8r8 £11712022.. £nill. 11. STAFF COSTS 2023 2022 Wages and salaries Social security costs Other pension costs 634,171 $6,684 577,947 49,421 11.103 706 686 638471 The average monthly number of gmployees during the year was as follows.. 2023 26 2022 24 Averag8 Omployees The number of gmployees whose employ88 benefits (excluding employer pension costs) exceeded £60,000 was.. 2023 2022 £60,001 £70.000 Includod within staff costs above is the remuneration of Key Management Personnel (excluding IrL¢sleesl which amounted lo £135,813 for the year ended 31 July 2023. Page 24 continued... SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statements - contlnued for the Year Ended 31 July 2023 12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unr8slric18d Reslric18d funds fund Total funds INCOME AND ENDOWMENTS FROM Donations and legacies 1.220,628 1,220,628 Charltable actlvltlos Student Activities 22,378 22,378 Other trading activities Investment income Other income 41,317 1,250 468 41,317 1,250 468 Total 1.263.663 22,378 1,286,041 EXPENDITURE ON Raising funds 30,715 30.715 Charltable actlvltlès Sludenl Activities Advice & Represenl81ion Communicalions & Mark8llng 394,594 447,373 375,683 15,373 409.967 447,373 37$ 683 Total 1,248,365 15,373 1,263,738 NET INCOME Transhr# betwa8D fund• Oth•r rècognl$•d galnsl{lo••asl Actuarial gains on defin8d b8n8fil 5chomes 15.298 6.874 7,005 16,874) 22,303 118,377 118.317 Nat mov•mont In fundj 140,489 131 140,620 RECONCILIATION OF FUNDS Total funds brought foty4ard 11.126,4001 11,126.4001 TOTAL FUNDS CARRIED FORWARD 985,9111 131 985,7801 Page 25 conlinuad... SOUTHBANK STUDENTS, UNION LTD Notss to the Flnanclal Statements - contlnued for the Year Endfjd 31 July 2023 13. TANGIBLE FIXED ASSETS Improvèments lo property Fixtures and fittings Plant and achinery Computer equipm8nl Totals COST Al 1 August 2022 Additions 124,294 1.723 22,896 33,133 1,256 182.046 1.256 Al 31 July 2023 1,723 22.896 34,389 183 302 DEPRECIATION At 1 August 2022 Charg8 for year 51,703 6,513 1,723 7,450 26.338 87,214 14,123 Al 31 July 2023 58,216 12,401 101 337 NET BOOK VALUE Al 31 July 2023 Al 31 July 2022 72,591 15,446 6,795 94,832 14. STOCKS 2023 2022 Stocks 2,778 13,996 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Trade debtors Other debtors VAT Prepayments and accrued in¢om8 5,215 4,170 35 4.472 10,957 10.467 19,634 Page 26 continued.. SOUTHBANK STUDENTS. UNION L TD Notes to the Flnanclal Statements - contlnued for the Year Ended 31 July 2023 16. CREDITORS.. AkqOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Trade credilors Social security and other t8X89 VAT Other creditors Accruals and deferred income 23,446 15,879 2,166 4.849 2D,728 30.770 15,397 2,525 26,206 67,068 74,898 17. PROVISIONS FOR LIABILITIES 2023 2022 Provisions 1,748 750 1,559,932 MOVEMENT IN FUNDS Nel movement in funds Transfers be￿een funds Al 31.7.23 Al 1.8.22 Unro¥trlcted funds General fund Facilities and refurbishment fund Pension deficit Covid-19 fund National Sludenl Survgy 450,686 94,832 11,559,932) 12,513 1 S,990 104,095 (63,910) 112,886} 105,279 112,5131 15 9901 490,871 81,966 11.748,7501 1294,0971 1985,911) 1190,0021 11,175,913} Restrlcted fund8 Clubs and Societies 131 85 216 TOTAL FUNDS 985,7801 189,917} 11175,6971 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and Movement loss8s in fund5 Unrestrlctad funds General fund Pension deficit 1,322,105 {1,218.010} 39,013 104,095 294,097} 255,0841 1.322.105 11,257,023) {255,084) 1190.0021 Re5trlcted funds Clubs and Societies 9.229 {9,1441 85 TOTAL FUNDS 1,331,334 1.266,1871 255.084 189,9171 Page 27 continued... SOUTHBANK STIJDENTS. UNION LTD Notes to the Flnanclal Statemonts - contlnued for the Yaar Ended 31 July 2023 18. MOVEMENT IN FUNDS- contlnued Comparatlves for movoment In funds Net movement in lund8 Transfers belween funds At 31.7.22 Al 1.8.21 Unré8trlctsd fvnds Generdl fund Facilities and refurbishment fund Pension d8ficil Covid-19 fund Incorporduon fund National Student Survey 480,293 92,826 11,748,309> 12,513 20,287 63,383 192,9901 450,686 2,006 94,832 96,285 11.559,9321 12.513 92,092 121,8601 1,573 15.990 11,126,4CK)I 133,615 6,874 {985,9111 Ra8trlctod funds Clubs and So¢i¢lies 7,005 16,8741 131 TOTAL FUNDS 1,126,400 140,620 985,7801 Comparaliva nel mov¢m&nl in funds, included in the abov8 are as follows.. Incoming resources Resources exp8nd8d Gains and losses Movement in funds Unrestrlcted fundl G8n8ml fund Pension d8fi¢ll Incorporation fund 1,263,663 11,200,280) 126,2251 21,8601 63,383 92,092 21,8601 118.317 1,263,663 11,248,3651 118,317 133,615 R88trlcted funds Clubs and Societies 22,378 115,3731 7,005 TOTAL FUNDS 1,286,041 1,263,738) 118,317 140,620 Page 28 continued... sO￿HBANK STUDENTS. UNION LTD Motes to the Flnanclal Statements - contlnued for the Yoar Ended 31 July 2023 18. MOVEMENT IN FUNDS- contlDued A current year 12 months and prior year 12 months combinad tK)sition is as follows.. Nel mov8menl in funds Transfer8 belween fLJnds Al 31.7.23 At 1.8.21 Unrestrlcted funds G8nerdl fund Facilities and refurbishment fund Pansion deficit Covid-19 fund Incorporation lund National Student Survey 480,293 92,826 11.748,3091 12,513 20,287 15,990 167.478 1156,9(K)I 490,871 110,8601 81,966 201,564 {1,748,7501 112,5131 1,573 15,9901 (202.0051 121.8601 11,126.400) 156,3871 6.874 11.175.913) Restrlctèd fund8 Clubs and Socielles 7,090 16,8741 216 TOTAL FUNDS 11.126,4001 49,2971 11,175.6971 A ¢urrenl y8ar 12 mnlhs and prior year 12 rTrJnlhs combined net movement in funds, included in lh8 above aw as follows: Incoming resources Resources expended Gains and losses Movem8nl in funds Unra8trlct•d funds General fund Pension deficit Incorporation fund 2,585,788 12,418,290) 165,2381 21,8601 167,478 1202,0051 21,8601 1136,7671 2,585,768 12,505.3881 1136,7671 156,3871 Réitrlcted fund6 Clubs and Soci81ies 31.607 124,5171 7.090 TOTAL FUNDS 2,529,905 2,617,375 ￿ ￿136 7671 49,2971 Page 29 continued... SOUTHBANK STUDENTS, UNION LTD Notes to the Flnanclal Statoments - contlnued for the Year Ended 31 July 2023 19. RELATED PARTY DISCLOSURES The London South Bank University provides the Union with an annual grant as shown in the Slalemenl of Finanaal Aclivilies. The London Soulh Bank University provid8s the Union with accommodation and a fang& of support services for which no actual charge Is made, however the value of this support has been recognis8d in the accounts as a benefit in kind. 20. EMPLOYEE BENEFIT OBLIGATIONS Deflned benefit schgme- SUSS The Union p8rlicipal8s in the Students. Union Superannuation Scheme. which is a delined benefit scheme whose membership consists of employees of students. unions and related bodies throughout the country. Benefits in respect of servic8 up lo 30 Seplernber 2003 are accrued on a 'Yinal salary" basi5, wilh benefits In respect of service from 1 October 2003 accruing on a Career Averag6 Revalued Earnings IGAREI basis. With 8ffecl from 30 Seplemb8r 2011 the Scheme clos&d lo fLJlur8 accrual. The most recent valuation of the Scherne was carried out as al 30 June 2022 and showed that the markgl value of the Scheme's assels wa5 £106,700.000 with these ass8ls ￿preSentIng 44Q/o of the value of benefits that had accrued lo members after allowing for 8xpecled lulure increases In earnings. The deficit on an ongoing funding basis amounted lo £136.60CI.000. The assumptions which have the most significant effect upon the results of the valuation are those relating lo the rale of return on investments and the rates of increase In salariès and pensions. Th8 following assumptions applied Al 30 June 2022:_ Dlscount rate; Bank of England gllt cutv• + 1.syu pa, Ilnearly changlng over a term of 13 year8 to gllls curye + 0.25Yo pa, Pension Increases.. A model of each increase. allowing for insurers, ￿ lalive pricing of different caps and collars. The 2D22 Valuation recommended a monthly contribution requirement by each Parlicipalin9 Employer expressed in monetary terms Intended lo clear the ongoing funding deficit by 1 May 2037 and wlll Increase by al18asl Soh each year. These contributions also include an allowance lor cosl of the ongoing adminislralive and operational gxpenses of running the Scheme of £5,038 pa. Surpluses or deficits which arise al future valuations will also Impact on the Union's lulure contribution comrnilmenl. In addition lo the above conlribulions, th8 Union also pays Ils 5harg of the Scheme's levy lo the Pension Prolgction Fund. The liability provided for in respect of the SUSS pension deficit increased lo £1,748,750 12022.. £1,559,932) al 31 July 2023 Is8e nole 171. Oeflned Contrlbutlon Penslon Scheme Since 1 October 2011, all participating employees have been in a new defined contribution pension scheme. the National Union of Students Pension Sch&me INUSPSI. Contributions are al variable rates up lo 6Q/. for the employer and a minimum of 3,10 for the ernployee. The Union's cosl ol contribution for the y8ar amounted lo £15.831 12022.. £11,103). Page 30 **Southbank Students’ Union Limited Audit Findings Report Year Ended 31[st] July 2023** **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** The Board of Trustees Southbank Students’ Union Limited 11[th] January 2024 Dear Trustees ## **Audit findings for the year ended 31[st] July 2023** This Audit Findings Report highlights the significant findings arising from the audit and sets out the key matters which we are required to formally report to those charged with governance in accordance with International Standard on Auditing (UK) 260. As you will appreciate, our audit procedures are designed primarily to enable us to form an opinion on the accounts as a whole. Our procedures include such tests of the accounting records and internal control systems as are, in our opinion, necessary for audit purposes. Consequently, whilst our procedures may identify certain weaknesses which may exist, the audit procedures in themselves should not be relied upon to reveal all the weaknesses which may exist in the system. This report has been prepared for your sole use and we assume no responsibility to any other party in respect of its contents. The report should not be disclosed to any third party without our prior written consent. This report is not exhaustive and deals with only the more significant matters which came to our attention during the audit. Other matters of lesser significance have been discussed with the relevant staff during the course of our audit work. In conclusion we would like to take this opportunity of expressing our appreciation to all your staff, particularly Amy and Eunice, for their assistance and cooperation during the course of our audit. If you have any queries on any of the points in this letter, please do not hesitate to contact us. Yours Sincerely ## **Knox Cropper LLP** **1 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** **Contents** |Audit Overview|Pages 3-4| |---|---| |Materiality and Audit Adjustments|Page 5-6| |Key Audit Risks and Conclusions|Pages 7-8| |Internal Control Observatons and Recommendatons|Pages 9-11| |Emerging Issues|Pages 12-14| |Leter of Representaton|Pages 15-17| |Commentary on the Financial Statements|Pages 18-20| **2 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** **----- Start of picture text -----**
Audit Overview
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## **General** The purpose of our audit is to gather sufficient evidence to allow us to conclude that the transactions and balances disclosed in the accounts are unlikely to be materially misstated, to establish that disclosures reflected in the accounts comply with the requirements of legislation and relevant accounting standards, to assess whether the accounting policies adopted are appropriate and consistently applied and to assess whether judgements exercised and estimates made in the preparation of the accounts are fair and reasonable. ## **Audit Report** We confirm that we have completed the audit to our satisfaction and intend to issue an unqualified audit opinion on the Financial Statements. This means that we have no material reservations over the figures or information disclosed in the financial statements. The wording of our audit report is in accordance with the standard text for unqualified audit reports prescribed by the Financial Reporting Council. Our report also includes a section which is specific to this audit setting out our response to the risk of material misstatement in respect of irregularities arising from non-compliance with laws and regulations, including fraud. ## **Estimates and Judgments** The estimates and judgments made by management affecting the financial statements are in respect of the SUSS pension deficit provision, depreciation, accruals and prepayments. We have concluded that management have exercised judgments and calculated estimates in a fair and reasonable way. ## **Accounting Policies and Disclosures** The accounting policies which have been adopted in the financial statements are in accordance with Generally Accepted Accounting Practice and are, in all material respects, appropriate to the organisation’s operations and in compliance with FRS 102 and the Charity SORP 2019. **3 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** Adequate consideration was given to the potential impact of changes in legislation and accounting standards which arose during the year. No significant changes arose during the current year which affected the financial statements and therefore the form and content of the accounts are consistent with the preceding year. ## **Professional Ethics and Independence** We confirm our compliance with the Ethical Standard issued by the Financial Reporting Council. We confirm that we have not carried out any non-audit work which could impair our independence and there are no other matters in relation to our audit engagement which we consider should be brought to your attention. ## **Other Audit Matters** In accordance with UK auditing standards, we confirm the following matters in relation to our audit of the financial statements: - a) We have not identified or been made aware of any incidents of fraud or suspected fraud. We would emphasise that our work as auditor is not intended to identify any instances of fraud of a non-material nature and should not be relied upon for this purpose. - b) We have not identified or been made aware of any incidents of non-compliance with laws and regulations which could have a material impact on the financial statements. - c) We have not identified or been made aware of any related party transactions other than matters which have been disclosed in the financial statements. - d) We have received all requested third-party confirmations which represent an essential element of our audit evidence. - e) Apart from the matters set out in this report, there were no significant matters discussed with management during the audit which we are required to bring to your attention. There were no significant disagreements with management or any limitations placed on the scope of our work. No significant difficulties were encountered during the audit. **4 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Materiality and Audit Adjustments** ## **Materiality** Materiality is used both to plan the nature and extent of audit testing and to evaluate the effect of misstatement. In accordance with ISA (UK) 260 ‘Communication with those charged with governance’, we are obliged to include details in this report of all unadjusted errors which are below materiality unless they are clearly trivial. Whilst our audit procedures are designed to identify misstatements which are material to our audit opinion, we also report to those charged with governance and management any uncorrected misstatements of lower value errors to the extent that our audit identifies these. Omissions or misstatements are regarded as material if they would reasonably influence the users of the financial statements. The assessment of what is material is a matter of professional judgement. Our assessment of materiality the year ended 31[st] July 2023 was calculated as follows: ||£|**Explanaton**| |---|---|---| |Overall Materialityfor the Financial Statements|16,586|Accounts materiallymisstated where total errors exceed this value| |||| |Performance Materiality|12,439|Workperformed to capture individual errors at this level.| |||| |TrivialityLevel|829|Unadjusted errors above this level are reported.| **5 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Audit Adjustments** There were no material adjustments made to the financial statements arising from our audit work. The following misstatements, which are above our triviality level, have not been corrected in the financial statements by management because they are not individually or cumulatively material. |**Descripton of adjustment**|**Debit**|**Credit**| |---|---|---| |**Missing prepayment**|**£**|**£**| |Balance sheet – Prepayments|7,571|| |SOFA – Sofware subscriptons||6,507| |SOFA – Trainingand development||1,064| ## **Reconciliation to Management Accounts** Below is a summary of the adjustments that management have made to the reported profit in the management accounts. |**Descripton**|**£**| |---|---| |**Defcitper frst draf of the accounts to 31 July 2023**|**(1,110)**| |SUSSpension defcit liability payments incorrectly posted to I&E|105,279| |Unwindingof the discount on the SUSSpension defcit liability|(39,013)| |Actuarial loss on the SUSSpension defcit liabilitydue to change in discount rate|(255,084)| |Sports and societes income and expenditure movement in theyearposted to reserves|11| |**Defcitper the fnal accounts**|**(189,917)**| **6 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Key Audit Risks and Conclusions** The following schedule sets out the key risks which we identified as part of our audit planning. It sets out our approach to ensuring that these risks did not give rise to any material misstatement in the financial statements and our audit findings. ## **Risk Audit Approach Audit Findings** - **1 Completeness of income** Completeness of income is always We carried out testing on the various We are satisfied following the review of considered high risk and audit procedures income streams and the controls around income documentation and analytical need to be devised to address this risk. them. We also performed analytical procedures that income is not materially procedures for testing income trends. mis-stated within the accounts. - **2 Classification of income** Income received by the Charity could be We reviewed the underlying supporting This was tested as part of our income and subject to restrictions and therefore documentation for income to ascertain expenditure testing. Classification of income may need to be treated as whether restrictions applied and we income appears to be fairly stated in the restricted income. reviewed expenditure from these funds to accounts. ascertain whether the imposed restrictions were being adhered to. - **3 Payroll costs** Payroll expenditure is a substantial part of We performed a proof in total on the There were no issues noted during our total expenditure therefore this is an area, payroll costs by agreeing the payroll reports audit testing. Payroll expenditure appears which although not a high risk area, will be to the accounts. We also performed to be fairly stated in the accounts. thoroughly reviewed due to its materiality. substantive testing on a sample of employees, including checking contracts of employment. **7 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** **4 SUSS Pension deficit provision** The assumptions and calculations used may We checked the calculations and be inappropriate and may cause a material assumptions used for the pension deficit misstatement. provision. The assumptions used for the SUSS pension deficit calculation are appropriate and the calculation performed has been agreed. The SUSS pension deficit liability appears to be fairly stated in the accounts. ## **5 Management Override of Controls** This represents a key risk for all We checked that controls were applied We did not find any instances where organisations and we are required to consistently throughout the year and management had overridden controls. specifically check to ensure that there is no reviewed a sample of journal adjustments evidence of management override during to ensure they are valid. the year. - **6 Related party transactions** Identification of all related party We reviewed and assessed the controls in transactions conducted throughout the place to identify and disclose related party year. transactions and looked out for related party transactions during our review of the accounting records. This was tested as part of our income and expenditure testing. We requested that related party declaration forms were completed by all trustees and senior management. No issues noted were noted. **7 VAT** There is a risk that VAT has been incorrectly accounted for. During our income and expenditure testing we performed substantive tests, which included checking the accuracy and the treatment of the VAT recorded. There were no significant errors found, however, there were minor errors found during our testing. See the point in the Internal Control Observations and Recommendations section below. **8 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Internal Control Observations and Recommendations** We are required to report to you, in writing, significant deficiencies in the internal controls and the internal control environment that we have identified during the course of our audit. These matters are limited to those which we have concluded are of sufficient importance to be reported to you. Our audit cannot necessarily be expected to disclose all deficiencies in the system and, as a result, the matters reported may not be the only ones which exist. We have categorised the internal control deficiencies using a colour-scale rating system. The key to which is as follows: Control weakness is not significant but we recommend that it be addressed to comply with good practice Control weakness is serious and needs to be addressed Control weakness is of critical importance and needs to be addressed as a priority ## **Matters Brought Forward from the Previous Year** > **Risk Observation Recommendation Management Response Rating 1 VAT postings and corrections Last year** During our audit testing on income and We would recommend making the expenditure, we found that there were adjustments to each individual some transactions that had been posted transaction or more detail should be with the incorrect VAT amount/code. After provided when performing the discussions with management and after adjustments to the VAT return, such as, reviewing the VAT returns it appears that including the transaction numbers in these errors have been corrected. These the description. This would ensure that were corrected by making one adjustment the VAT returns are compliant with to each box on the VAT returns, which Making Tax Digital. included multiple corrections. Therefore, it **9 |** P a g e ## **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** was not clear which transactions were **Current year** included in the adjustments made. The point from the prior year has been resolved. However, we found some minor errors with the postings of the merchandise income. The VAT has been calculated on the net amounts received, which is the income less the iZettle fees. The VAT should be calculated on the income before the fees have been deducted. Therefore, income has been understated and VAT is understated. The error amount is not material. ## **2 Fixed assets** - When reviewing the fixed asset register, we noted that the total cost of the assets and the total depreciation did not agree to Sage or the accounts. This is because some assets with a NBV of nil had been disposed of on the asset register but not in the accounts because the assets disposed of had a nil NBV there is no impact on the NBV in the accounts. We also found that the capitalisation policy had not been adhered to which had caused some inconsistency when capitalising assets. There were items capitalised that were less than the £1,000 capitalisation policy. - **Last year** The fixed asset register should be reconciled to Sage on a regular basis. This would prevent minor errors, such as, the July 2022 computer depreciation charge being incorrectly posted to the computer cost nominal account. The amount is trivial and has no impact on the NBV but the cost and depreciation charge are understated. The capitalisation policy should be adhered to. If the current policy is not appropriate, then the Union could consider reviewing the policy to see if it needs to be updated. **10 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** **Current year** We are pleased to report that this issue has been resolved this year and the capitalisation policy has been adhered to. ## **Matters Arising in the Current Year** - **Risk Observation Recommendation Management Response Rating 1 Documentation of Benefit in Kind** We were unable to agree the value of the We recommend that this valuation is Grant of serviced accommodation to reviewed on a regular basis and supporting documentation. There is a risk of evidence of the calculation is material misstatement due to the degree of maintained. subjectivity in the measurement of the BIK. **11 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Emerging Issues** ## **Charities Act 2022** The Charities Act 2022, which makes a number of amendments to the Charities Act 2011, became law on 24 February 2022. However, the provisions of the Act are being implemented in a phased way, over a period of 18 months, so that the Charity Commission has sufficient time to update its guidance. A key point to note is that the Act does not impose any additional obligations on charity trustees. Instead, it simplifies the administrative steps which trustees are required to take when making certain decisions. Full details of the Act can be found at: htps://www.knoxcropper.com/artcles/charites-act-2022/ All provisions in the Act are expected to be implemented by the autumn of 2023 with the exception of those relating to ex-gratia payments which are subject to further consideration by the Charity Commission. ## **Charity Commission Guidance on Internal Controls** In April 2023, the Charity Commission issued updated guidance on internal controls, which is set out in its CC8 document. The restructured guidance is now more concise and it covers issues that were not in existence or widely relevant to the sector when first drafted. New sections cover the use of mobile payments systems, such as Apple Pay, and the receipt of donations in the form of cryptoassets, such as cryptocurrency and NFTs. Existing advice on more traditional risks, including the risks relating to fundraising and public collections, making payments to related parties, and operating internationally has been updated and there is a new section on accepting hospitality. The guidance also includes an updated checklist which facilitates a periodic review of the adequacy of internal controls. ## **Charity Commission Annual Return 2023** Following a consultation in 2022, the annual return for 2023 contains a number of additional questions. Some of the information required will come directly from the statutory accounts but some charities may have to compile additional data which may be time consuming. The updated Annual Return (AR23) will apply to charities’ financial years ending on or after 1 January 2023 and the additional information required depends in some cases on the size and nature of the charity. New information required includes: **12 |** P a g e **----- Start of picture text -----**
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## **Southbank Students’ Union Limited** ## **Audit Findings Report for the year ended 31st July 2023** - a) For all charities, an analysis of income and, for charities with income over £100,000, details of the highest donation received from a corporate donor, an individual donor and from a related party. - b) An analysis of grants to individuals, other charities and non-charities, where these are material. - c) An analysis of employees, including the numbers of permanent, fixed term and self-employed individuals. - d) Details of the policies which the charity has in place by reference to a list of potential policies set out in the return. - e) Where relevant to the charity, detailed information on safeguarding practices. In total there are 10 additional compulsory questions for all charities and up to 13 extra in total, depending on the nature of the charity. ## **Risk of Cyber Crime** In January 2023, the National Cyber Security Centre (NCSC) released a new report detailing the risks from cyber-crime to charities. The purpose of the report is to help charities understand current cyber security threats, including the extent to which the sector is being affected, and set out where charities can go for help. Following a recent survey, the Charity Commission reported that one in eight charities had experienced cybercrime in the previous 12 months. The NCSC report can be found at: htps://www.ncsc.gov.uk/collecton/charity/cyber-threat-report-uk-charitysector ## **Investment guidance** Following the high court judgment on the Butler-Sloss case, the Charity Commission has confirmed that charities can continue to rely on the legal position in its published guidance, set out in CC14, when making investment decisions. The new judgment confirms that, in accordance with their responsibility to act in the best interests of the charity, trustees have the power to implement an ethical investment policy and to exclude certain investments based on non-financial considerations when making financial investment decisions. **13 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Fundraising disclosure** All charities which are required by law to have an audit are required to include details of their fundraising practices in their Annual Report. The Fundraising Regulator has published new research and updated guidance to encourage better compliance with these reporting requirements. The updated guidance emphasises the need for charities to include sufficient detail to meet the statutory requirements and can be found here: The Charities (Protection and Social Investment) Act 2016: an analysis of compliance with fundraising reporting as of July 2022 | Fundraising Regulator ## **Claiming gift aid on waivers** HMRC has updated its tax guidance for charities to clarify the rules on claiming Gift Aid when a right to receive either a refund or a loan repayment is waived. Where the charity holds a record of the waiver and meets all other Gift Aid rules, HMRC has clarified that the waiver will be eligible for Gift Aid. ## **Proposed changes to Financial Reporting** The Charity SORP and Financial Reporting Standard 102 (FRS 102), on which the SORP is based, are both in the process of being updated, with changes expected to be implemented for accounting periods beginning on or after 1 January 2025. A consultation document, setting out proposed changes to FRS 102, was issued in December 2022. The proposed changes reflect changes which have been made to International Financial Reporting Standards and include: - a) a requirement for all leases, with limited exceptions, to be capitalised, requiring the asset and the lease liability to be accounted for in the Balance Sheet. - b) a revised criteria for the recognition of goods and services based on a five-step model which may have implications for the recognition of grants and contracts The update to the Charity SORP is following the same timetable as it is required to incorporate all the changes made to FRS 102. However, it is also likely to implement a number of additional changes, reflecting feedback from a wide range of stakeholders. Changes are likely to include: a) a requirement for larger charities to include sustainability reporting in their Annual Report - b) a simplified reporting regime for smaller charities. **14 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Letter of Representation** International auditing standards require us to obtain, from the trustees, a number of specific representations and also confirmation of any other material representation given to us during the course of our audit which forms part of our audit evidence. The representations should be made on the basis of enquiries of management and staff with relevant knowledge and expertise. The following is the full list of representations which we will require to be formally provided to us in a letter, signed on behalf of the trustees, prior to signing our audit report. ## **Confirmation of Responsibilities** 1. We have fulfilled our responsibilities as trustees under the Companies Act 2006 and the Charities Act 2011 (“the Act”) for preparing financial statements, for the year ended 31[st] July 2023, which give a true and fair view in accordance with the financial reporting framework (FRS 102 and the Charity SORP). 2. We confirm that all accounting records have been made available to you for the purpose of your audit, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and Trustees’ meetings, have been made available to you. We have given you unrestricted access to persons within the charity in order to obtain audit evidence and have provided any additional information that you have requested for the purposes of your audit. 3. We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that: - so far as each Trustee is aware, there is no relevant audit information of which you as auditors are unaware; and - each Trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that you are aware of that information. ## **Estimates and Judgments** 4. We confirm that the methods, significant assumptions and source data used by us in making accounting estimates, and their disclosure in the financial statements, are appropriate and in compliance with the recognition, measurement and disclosure requirements of FRS 102. 5. We confirm that all known actual or possible litigation and claims, the implication of which should be considered when preparing the financial statements, have been disclosed to you and have been accounted for and disclosed in accordance with FRS102 and the Act. **15 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Post Balance Sheet Events and Commitments** 6. We confirm that there have been no events since the balance sheet date which necessitate revision of the figures in the financial statements, or inclusion of a note thereto, other than those matters which have already been disclosed or included in the financial statements. 7. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements. 8. We confirm that we have no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities reflected in the financial statements. ## **Related Parties** 9. We confirm that we are aware of the definition of a related party as set out in FRS102 and the charity SORP. 10. We confirm that we have disclosed to you all related parties and related party transactions relevant to the charity and that we are not aware of further related party transactions other than those already disclosed in the financial statements in accordance with the requirements of FRS102 and the Act. 11. We confirm that the charity has not had, at any time during the year, an arrangement, transaction or agreement to provide credit facilities for trustees, nor to provide guarantees of any kind on behalf of the trustees, except as disclosed in the financial statements. ## **Laws, Regulations and Contractual Agreements** 12. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its operations, non-compliance with which could affect the financial statements. 13. The charity has complied with all aspects of contractual and other agreements that could have a material effect on the financial statements in the event of non-compliance. ## **Internal Control and Fraud** 14. We acknowledge our responsibility for the design and implementation of controls to prevent and detect fraud and we confirm that we have assessed the risk that the financial statements may be materially misstated as a result of fraud and that we have made this assessment available to you. We also confirm that, to the best of our knowledge and belief, there have been no significant deficiencies in internal control during the year. **16 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** **----- Start of picture text -----**
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15. We confirm that we have disclosed to you our knowledge of any actual or suspected instances of fraud involving management, employees with a significant role in internal control, and others where the fraud could have a material effect on the financial statements. We also confirm that we have disclosed to you our knowledge of any allegations of fraud or suspected fraud, affecting the financial statements, which have been communicated by employees, former employees, regulators or others. ## **Going Concern** 16. We confirm that, having considered financial projections which reflect the charity’s expectations and intentions for a period of at least twelve months from the date on which the financial statements are expected to be approved, in our opinion, the charity’s financial statements should be prepared on the going concern basis. ## **Uncorrected Misstatements** 17. We confirm that, in our opinion, the effects of any uncorrected misstatements which have been set out in the Audit Findings Report, are immaterial, both individually and in aggregate, to the financial statements as a whole. **17 |** P a g e ## **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** ## **Commentary on the Financial Statements** ## **GENERAL** The accounts have been drawn up on the basis of generally accepted accounting principles (Charities SORP 2019 - FRS 102) and relevant legislation. The accounts consist of: - The Report of the Trustees, which affords the trustees the opportunity to explain the Union’s objectives for the year and its achievements and in particular how it has delivered public benefit. It also allows them to comment on financial performance for the year and financial position at the year end as well as making a range of disclosures required either by law or by accounting standards. - An Auditors’ report, which explains the scope of the audit, the nature of the auditors’ responsibilities and expresses the audit opinion. - A Statement of Financial Activities, which analyses incoming resources and resources expended by the Union arriving at a net result thereby providing a measure of financial performance. - A Balance Sheet, which analyses the Union’s assets and liabilities at the year end, thereby providing a measure of financial position at that date. - A Cash Flow Statement and notes, which analyses the Union’s movement in cash during the year. - Notes to the accounts, which provide an indication of the accounting policies adopted and provide further analysis of the figures disclosed in the primary statements. ## **STATEMENT OF FINANCIAL ACTIVITIES** Net movement in total funds for the year showed a deficit of £189,917 in comparison to a surplus of £140,620 last year. Total Income increased from £1,286k to £1,331k. The increase in income is the result of the following: 1. Donations and legacies income increased due to three additional grants of £52k from the University in relation to the peer to peer project, the semester one resit phone bank and NSS completion support. The block grant from the University was the same as last year and was £980k. The space grant remained the same this year, £226k, which relates to the space used by the Union. A Kick start grant, of £2k, was received this year, which is less than the £15k received last year. 2. Income from Student Activities decreased from £22k last year to £9k this year. This income represents funds raised by the various clubs and societies of the Union. 3. Income from other trading activities increased to £56k from £41k. This includes Merchandise sales of £23k, Fundraising events income of £2k and Marketing income of £32k. **18 |** P a g e **----- Start of picture text -----**
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## **Southbank Students’ Union Limited** ## **Audit Findings Report for the year ended 31st July 2023** 4. Investment income was £4k compared with £1k last year. 5. Other income was £2k compared to £0.5k last year. Expenditure for the year increased slightly from £1,264k to £1,266k. The main expenditure variances are explained below: 1. Student activities costs decreased from £410k to £379k. 2. Advice and representation expenditure increased from £447k to £537k. 3. Communications and marketing expenditure decreased from £376k to £322k. 4. Included in the above expenditure headings are wages and salary costs of £707k, which has increased from £638k. There is an actuarial loss, on the SUSS pension scheme, of £255k this year compared with a gain of £118k last year. The reason for the loss is because of an extension to the term for deficit funding contributions. The contributions are now due to end in May 2037. The discount rate used has stayed the same this year and is 2.5%. ## **BALANCE SHEET** The net book value of fixed assets has decreased from £95k to £82k. This is because additions of £1k are less than the depreciation charge for the year of £14k. Net current assets, the principal balance sheet measure of short to medium term solvency, have increased from £479k to £491k. There is a sound margin of solvency with cash and bank balances alone being sufficient to cover creditors by a factor of 8:1. The stock figure of £3k relates to retail stocks and NUS cards. This has decreased £14k. Debtors have increased from £20k to £10k, which relates to prepayments of £5k and trade debtors of £5k. Cash and bank balances have increased from £521k to £545k. Creditors have decreased slightly to £67k from £75k. Creditors are mainly made up of accruals, which have decreased from £26k to £21k, and trade creditors that have decreased from £31k to £23k. Social security of £16k, VAT of £2k and other creditors of £5k make up the remainder of the balance. **19 |** P a g e **Southbank Students’ Union Limited Audit Findings Report for the year ended 31st July 2023** Provisions for liabilities’ represents the calculated deficit funding contributions the Union must make in respect of the SUSS scheme. This has increased from £1,560k to £1,749k. The increase represents the changes in assumption, of £255k, and the unwinding of the discount, of £39k, which net off against the contributions made to SUSS of £105k. As a result of the above, the total funds have decreased by £190k, from a negative £986k to a negative £1,176k. All funds are unrestricted except for £216 of restricted funds. **20 |** P a g e