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2023-07-31-accounts

Charity number: 1137401 / 1197170

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

CONTENTS

Page
Legal and administrative information 1
Report of the Trustees 2
Report of the independent Auditors 17
Consolidated statement of financial activities 21
Consolidated balance sheets 22
Union balance sheet 24
Consolidated cash flow statement and note 26
Notes to the financial statements 27

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Alison Jones
Chris Warrington
Mithu Komarnuckyj (resigned 08/09/2022)
Millie Avery (resigned 30/06/2023)
Ann Allen
Philip Taylor (resigned 08/09/2022)
Elze Demereckaite (resigned 30/06/2023)
Muhammad Taha Khan
Sarah Elkady (resigned 30/06/2023)
Katie Tucker (resigned 30/06/2023)
Martin Calvert (appointed 08/09/2022)
Gareth Pye (appointed 08/09/2022)
Craig Dominique-Smith (appointed 29/03/2023)
Olufemi Olutuyibi (appointed 29/03/2023) (resigned 31/07/2023)
Diana Simikova (appointed 30/06/2023)
Wamick Aijaz (appointed 30/06/2023)
Rothith Narayan (appointed 30/06/2023)
Company registered
number 13435053
Charity registered number 1197170
Principal office
Students’Union
Queensgate
Huddersfield
HD1 3DH
Senior Leadership team Rhiannon Roberts, Chief Executive Officer
Lydia Blundell, Head of Engagement and Deputy CEO
Matt Short, Head of Operations and Deputy CEO
Independent auditor BHP LLP
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
Bankers HSBC Bank Plc
2 Cloth Hall Street
Huddersfield
HD1 2ES

Page 1

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 JULY 2023

The Trustees present their Annual Report together with the audited financial statements of University of Huddersfield Students’ Union for the year ended 31 July 2023. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.

Structure, governance and management

Articles of Association

University of Huddersfield Students’ Union (HSU) is constituted under the Education Act 1994 as a charity with internal regulations and Articles of Association approved by the governing body of the University of Huddersfield (the University) and members of HSU. As a registered charity and a company limited by guarantee, its Articles have been approved by the Charity Commission. HSU charitable objects under the Act are the advancement of education of students at the University of Huddersfield for the public benefit by:

Providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students.

Public Benefit

In planning and delivering our services and activities, the Trustees and management of the Union have given due regard to the need to ensure that the charity provides public benefit, following the Charity Commission’s guidance on these matters. Details on how the Union has carried out its activities for the public benefit are outlined in the strategic plan section of this report.

Page 2

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Trustees

HSU is administered by its Board of Trustees made up of 5 students elected by the membership of HSU, 5 external Trustees and 2 appointed Student Trustees, who are regarded as the Charity Trustees for the purposes of the 2011 Charities Act. The five elected Officer Trustees are remunerated as authorised by the Articles and individuals cannot serve more than two years as an Officer Trustee.

As the Charity Trustees, all Officer Trustees receive an induction into their legal and administrative responsibilities, with an on-going training programme as and when needed, addressing matters arising during their term of office.

The External Trustees and Student Trustees are selected and appointed to ensure there is a balance of skills and experience within the Board. The External Trustees are appointed to support the Students’ Union to discharge strategic and governance functions and the Student Trustees ensure that there is the best possible diversity of student representation on the Board. Student Trustees serve a 12 month term that can be extended for a further year. Trustee search and selection is undertaken by the Performance, Audit, Risk and Remuneration Committee, which includes Officer and lay Trustees; vacancies are advertised, and candidates are invited to apply setting out how they meet a Trustee specification. The University Vice Chancellor appoints one external Trustee, bringing a University perspective to Board deliberations.

Committees and Delegation

The position of the Officer Trustee is at the heart of the Board of Trustees and their membership on all other key sub committees ensures that the student voice is heard throughout HSU decision making structures and that our decision makers are accountable to the student body.

Board of Trustees Meets quarterly Responsible for overall strategic direction of HSU.
Management and
Executive Committee		 Meets monthly Responsible for campaigning and representative functions of HSU
as well as ensuring activity is in line with strategic, operational and
financialplans.
Finance & Staffing
Committee		 Meets quarterly Responsible for review and development of financial procedures,
budgets,staffing policies andprocedures.
Performance, Audit,
Risk and Remuneration
Committee		 Meets quarterly To consider audit requirements, evaluate risk profile and appetite,
recommend appointments to Board and remuneration
arrangements.
Student Activities
Executive		 Meets as
required		 To consider matters affecting student activity groups, their funding
bids and activity plans.

The Board of Trustees and Finance & Staffing Committee consider annual budgets and accounts on a quarterly basis. On a day-to-day basis performance is monitored by the management team.

The five Officer Trustees are responsible for the day to day development of representation and campaigning policy that affects students. A Student Panel, made up of a random, representative sample of 30 students, establishes Students’ Union policy, and an appointed Accountability Panel scrutinises and supports the work of the Officer Team.

HSU also employs around 27 non-student staff for the sake of continuity in the management and delivery of its many activities. A clear staff structure is in place and staff members are accountable to the Chief Executive for the performance of their duties. The Chief Executive is accountable to the Board of Trustees and is formally line managed by the Chair of the Board of Trustees

Page 3

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Pay Policy for Key Management Personnel

The Board consider the Trustees and the Senior Management Team to be the key management personnel of the Union in charge of directing controlling, running and operating the Union on a day to day basis. All Lay Trustees and Student Trustees give of their time freely and did not receive remuneration in the year. Officer Trustees receive an annual salary for their work as Full-time Elected Officers. This is set at a fixed scale that is the same for all the Officer Roles. PARR Committee (see table above) regularly review remuneration arrangements and benchmark against the sector.

The Senior Managers are appraised annually by the Chief Executive and receive an increase if they have successfully achieved their objectives for the year. Senior Managers who have reached the top of their grade do not usually receive any further incremental uplifts. The pay scales for SMT are considered in line with the pay scales for the whole organisation and regularly benchmarked against the sector.

The Chief Executive is appraised by the Chair of the Board and the President, who will recommend an increase subject to achieving the objectives that are agreed by the Board at the start of the year. This recommendation is considered by PARR and then approved by the Board of Trustees.

Relationship with, and support of the University of Huddersfield

The relationship between the University and HSU is formally established in the University Code of Practice, detailed in the HSU Articles, a joint memorandum of co-operation, and the buildings lease approved by both organisations.

The relationship with the University is based on partnership where the strategy of the University and HSU are aligned and aim to make student life better. Regular meetings between senior University staff and the Officer Trustees discuss strategy and joint working. These and other meetings also provide opportunities to represent student views and lobby University decision makers to make changes that will improve the student experience.

HSU received a block grant from the University of £1.373m in 2022/23, an increase of £8k from the previous year. HSU pays an annual rent of circa £204K and is responsible for utility costs and recharges made by the University. The University provides support and other services to HSU, such as IT support, and access to facilities such as rooms and sports facilities, which support student activities. The Students’ Union is able to draw on professional advice of University colleagues in areas such as health and safety and data protection.

In addition to the University grant HSU operates a number of income generating activities:

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UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Consequently, HSU generates a modest supplementary funding contribution from its primary purpose and ancillary trading activities, which illustrates that HSU will continue to be dependent on the University to provide finances for the wide range of membership services it offers. There is no reason to believe that this support from the University will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure the financial viability of its student representative body.

HSU do not engage in raising funds directly from the general public; the Union will continue to monitor its sources of income and should it start to generate significant funds from fundraising activities it will inform the fundraising regulator and take all necessary measures to ensure it complies with the guidance issued.

Risk Management

The Board of Trustees has examined the major strategic, business and operational risks faced by HSU. A risk register is established and is updated annually, with quarterly updates to Board of any significant changes in the risk profile. Further to this the Union has undertaken a Business Impact Analysis and established a Business Continuity Plan to minimise the impact of business disruption and reputational risk.

Where appropriate, systems or procedures have been established to mitigate the risks the Charity faces. Budgetary and financial risks are minimised by the implementation of procedures for the authorisation of all transactions and projects. A reserves policy is established to ensure financial viability. Procedures are in place to ensure compliance and the health and safety of staff, volunteers and participants in all activities organised by the Union. These procedures are periodically reviewed to ensure that they continue to meet the needs of the Charity.

Other key risks facing the organisation include:

Governance Risk

Union elections are undemocratic, compromised or are void.

Relevant policies and procedures are not created or kept up to date.

External Risk

Student accommodation providers expose students to unacceptable risks.

National Union of Students (NUS) position threatens HSU’s reputation. NUS is no longer financially sustainable and is unable to offer service support in areas including digital, retail, and TOTUM and officer/staff development.

Government changes funding and evaluation mechanisms for Higher Education.

Regulatory and Compliance Risk

HSU fails to be compliant with GDPR and PECR.

Financial risk

Page 5

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Operational Risk

Strategic Plan 2018-25

HSU is currently entering the final phase of the strategic plan. This plan stated that by 2025 all Huddersfield students will agree that the Union helps to develop the life skills they need to make and shape their future. They will understand and value being part of the HSU community.

The impact of covid on campus and student environments, coupled with the University’s recruitment of increasing numbers of local, commuting students has led the Trustees to agree to an early close of the 2018 strategy. Rather than continue with existing KPIs and targets until 2025, the Officers and SLT will develop a new strategy during the 2023/4 academic year with a view to launching a new strategy at the start of the Spring term in 2024. This strategy will be based on new student insight research, engagement with key stakeholders and analysis of the regional and national context.

The 2018 strategy was an overwhelming success in engaging more students in more activity. The impact of Covid can not be underestimated, and the changing student demographic necessitates a pause and realignment to ensure HSU continues to focus resource at the most impactful activities.

The mission of Huddersfield Students’ Union is to make student life better. The success of delivering this is measured through three levels of engagement : we will work together to create personal connections, inclusive communities and meaningful change. All the departments and teams contribute to engaging students, and those departments include:

The above departments are directed by a small Senior Management Team who work closely with the elected Officers to ensure activities and team members are focused on having a positive impact for students. The new strategy allows for more project-based working that moves away from the department structure and allows for innovation in services to take place.

Page 6

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Strategy update

As described above, the current strategy will be completed one year early and replaced with a new strategic plan in the Spring of 2024. There have been many successful projects and activities undertaken during this plan, and some of the highlights in this financial year are listed below:

Key achievements in year 5 of the strategy included:

  1. Sending out 1,252 transcripts to committee members, academic reps and volunteers from other projects across the Students’ Union that gave them a formal accreditation for all the skills they had gained with the SU.

  2. Over 2,900 students actively participated in societies. .

  3. 90% of staff agreed/ strongly agreed that they would recommend the organisation as a good place to work.

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UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Page 8

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Strategic Aim 1: All students will connect with us in the best way for them, they will understand our services and know we are there if they need us.

The Advice Centre has been part of the University Mental Health Charter submission, with the President leading the student submission.

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UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Strategic Aim 2: 60% of students will be an active member of the HSU community, developing their personal skills and co creating activities.

Page 10

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Strategic Aim 3: 20% of students will lead and create change by becoming leaders within HSU, the University, and local and global communities.

Examples of events & activities the Networks have led on:

Values and Enablers

We will demonstrate our values by ensuring everything we do is inclusive, engaging, empowering and delivered with integrity.

This year we have committed to becoming an anti-racist organisation and undertook research and analysis work in partnership with the Institute for Educational and Social Equity. This work has led us to an action plan of tangible, impactful workstreams that we believe will tackle some of the structural racism facing our students of colour. Much of this work will be done in partnership with the University, and as much of the activity as possible will be student-led.

As part of our commitment to ongoing training and development for our staff, we also commissioned new EDI training for all staff via Inclusive Employers – who delivered one session for staff members, and then a separate session for Managers, focusing on how we can lead and empower staff at all levels to be actively inclusive.

In the 2023 staff engagement survey, 93% of staff (including all student staff) strongly agreed/ agreed with the statement ‘This organisation values diversity’

Furthermore, an impressive 100% of our career staff strongly agreed/ agreed with the statement ‘I would willingly put in extra effort in order to help the organisation” which demonstrates the dedication and commitment of HSU’s excellent staff team.

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UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

We will be a financially sustainable organisation, looking for new ways to add value to the student experience and our services.

Students via their University fees, translated into a block grant of £1.373k, remain the Students’ Union primary funder and the Students’ Union works hard to ensure the circa £65 per student works hard to benefit students.

An ongoing partnership was entered into with Thirteen Media Sales and resulted in £15k of revenue.

The NUS Student Card (now rebranded as Totum) contributed an additional £1k income to HSU. This is significantly lower than previous years due to changes made to the commission structure.

Following a full refurbishment in 21-22 of the shop whereby £167k was spent on the infrastructure and fixtures and fittings, 22-23 has been a positive trading year for the shop with turnover of £852k, the online shop contributed £5.1k to the overall surplus. The net surplus of £80.9k (before support and marketing recharges) is to be invested into services to students.

The investment and development of HudLets was primarily aimed at securing a better housing deal for students. However, the operation is based on making a small surplus that can be used to support student accommodation issues. In 22-23 HudLets have returned a surplus of £17.3k. Since trading commenced, HudLets has gift aided over £85k to the Student Union whereby it has been invested into services for students.

We will be a diverse, inclusive and innovative organisation that encourages new ways of working and develop digital solutions to engaging with students.

Having motivated, talented and engaged staff is essential to deliver the HSU mission. Over the past year a number of new people have been appointed who fit our mission, vision and values and we continue to look for new talent while offering staff the opportunities to develop their own abilities.

Over the last year we have advertised 10 different student staff roles, received 360 applications, and appointed 49 new student staff. During the year student staff were paid over £116,847 (2022: £120,452) in wages in return for their hard work and commitment.

Page 12

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

KPIs summary: results for 2022/23

Strategic KPIs 2021/22 Targets Results
HSU Vision By 2025 all
Huddersfield students
will agree that we can
help them develop the
life skills they need to
make and shape their
future.		 Every year 1% of the student
population will be added to
the longitudinal survey and
100% will agree that HSU has
had a positive impact on the 7
identified life skills.		 500 students have taken part in
HudFutures by the end of the
year.		 HudFutures project
on hold
HSU Mission To make student life
better.
We will work together
to create personal
connections, inclusive
communities and
meaningful change.		 Top quartile for NSS Q.26 59% HSS satisfaction rating
63% NSS satisfaction rating.		 75.7%
The Students’
Union places 14th,
in the top quartile,
2.9 points above
benchmark.
95% of students will connect
with us.		 16,331 unique students 13,934
60% of students will be part of
the HSU community.		 4,000 unique students 3,362
20% of students will create
change.		 1,000 unique students 752
Values Everything we go is
inclusive, engaging,
~~e~~mpowering and
delivered with
integrity.		 90% agree HSU is a great place
to work.		 90% 82%
90% agree that they
understand the values and
how they demonstrate them
through behaviours at work. (I
see this organisation's values
beingacted out inpractice)		 90% 89%
Enablers Financially sustainable
organisation looking for
new ways to add value
to the student
experience and our
services.
A diverse, inclusive and
innovation organisation
~~t~~hat encourages new
ways of working and
develops digital
solutions to engaging
with students.		 Small operating surplus every
year.		 To deliver within approved
budget.		 Ahead of forecast.
Excellent rating in all QSU
categories.		 Continue with current status. Current very good
and Excellent.
Sustainable liberation groups
that deliver change.		 125 individual students involved
with a minimum of 15 within
each network and one major
campaign from each.
118 members of
networks
15+ in every
network.
Achieved Investing in Ethnicity
and Race in the Workplace.		 Level 1 of 4 achieved.
Additional accreditation
achieved.		 Decision to focus
on ‘inclusive
employers’
standard. Bronze.
New digital solutions to
engaging with students.		 Digital strategy developed and
initial stages implemented.		 In progress

Page 13

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Financial review

HSU has made an overall surplus of £213k this year. Total income of £2,490m with expenditure of £2,277m. HSU has continued to benefit from the support of the University, this year the annual grant was £1,373,020 this was an increase of £3k on the previous year. The £2,277m expenditure went on a range of student benefits detailed within the financial statements. HSU aims to work within its budget which planned a surplus budget of £44k before reserves expenditure, a deficit budget of £8,8k after which addressed the SU’s reserve levels which were lower in 21-22.

Under the requirements of FRS 102 the Union has recognised in the accounts its share of the pension liability for the Students’ Union Superannuation Scheme. The inclusion of the pension scheme liability has resulted in a negative pension fund of £1,051,369 (2022: £1,234,763). The Trustees’ assumption is that the Union will continue to make contributions to the pension scheme such that, after 13 years, the deficit will be reimbursed; as such the trustees consider that this does not impact on the going concern of the Union.

Reserves Policy

The Trustees have reviewed HSU’s reserves requirements, and set a reserve and budgeting policy summarised below:

Budgeting and Reserves Policy Objectives

To establish a balanced revenue budget in each financial year.

To maintain an adequate level of operating reserves as detailed below and only allocate surplus reserves for a clear purpose.

To release reserves to support strategic objectives with Board approval.

£375,000 Operating Reserve:has been designated to stabilise HSU finances providing a cushion
against unexpected events, losses or income. The figure will cover day to day operations and
cash flow,based on 3 months operatingcosts.
£120,449 Designated fixed asset fund:£120,449 is to be released over a period of 3 years for the
retail outlet after the current infrastructure, fixtures and fittings where updated.
£20,000 Designated Capital commitments:£20,000 is to be invested in updating IT equipment over
a two year period.
£3,000 Designated strategic commitments: In 2023/24 this is made up of funds designated for the
following project: strategic planning.
£75,000 Free reserves:to allow for any unexpected issues arising relating to areas such as the SUSS
pension, employment costs and write offs of unexpected charges.

The free reserves at 31 July 2023 were £353,923 (2022: £255,021). Free reserves are unrestricted funds not tied up in fixed assets and which have not already been designated for a particular purpose. This assumes an additional £278,923 of reserves are available for HSU. The trustees will review the strategic plan and allocate these funds by designating them for strategic projects in 2023-24. Net current assets are £711,221 indicating we are operating in line with our established policies. This level falls within our minimum requirement of having three months’ activity costs in hand to cope with any unexpected downturn in funding or additional calls on our resources without immediately curtailing activities. Their aim is to finish 23-24 on breakeven or a small surplus before designated funds expenditure.

Page 14

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Affiliations

HSU has two corporate affiliations: these include the National Union of Students £28,073 (2022: £27,848) and the British Universities and Colleges Sports £5,225 (2022: £4,941). Individual clubs and societies affiliate to their national governing body or membership organisation. These are reviewed and approved by the Student Activities Committee. No donations were made during the year to any external institutions.

Custodian Activities: Clubs’ and Societies’ Funds and the annual RAG

HSU acts as custodian for funds raised by the student clubs and societies, individual clubs and society fund’s balances are carried forward into the next financial year.

At 31 July 2023 £26.2k (2022: £13k) was carried forward on behalf of sports clubs and £32.7k (2022: £31.4k) was carried forward on behalf of societies.

HSU is custodian of the annual RAG proceeds from fundraising events. These are organised by the students under HSU’s auspices for distribution to the intended charities.

Funds raised by this year’s RAG amounted to £6,872 (2022: £3,280) out of which £6,880 was distributed to the major charity nominated by the RAG Committee, leaving a balance of £366) (2022: £374) in hand for next year’s RAG activities.

Board of Trustees Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Union and of the incoming resources and application of resources of the Union for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Union and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011, and the provisions of the Articles of Association. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Page 15

UNIVERSITY OF HUDDERSFIELD STUDENTS’ UNION

TRUSTEES’ REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2023

Auditor

The auditor, BHP LLP, has indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.

This report was approved by the Trustees on 28 November 2023 and signed on their behalf by:

Muhammad Taha Khan (Dec 12, 2023 14:06 GMT) ………………………………………. President

………………………………………. Ann Allen Chair of Board of Trustees

Page 16

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

We have audited the financial statements of University of Huddersfield Students' Union (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended 31 July 2023, which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION (CONTINUED)

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

Responsibilities of trustees

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

In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 18

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION (CONTINUED)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the charitable group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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

A further description of our responsibilities is available on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 19

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION (CONTINUED)

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Dec 12, 2023 15:39 GMT)

Jane Marshall (Senior statutory auditor)

for and on behalf of

BHP LLP

Chartered Accountants Statutory Auditor 2 Rutland Park Sheffield S10 2PD

Date: Dec 12, 2023

Page 20

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Raising funds
9
Charitable activities:
10
Remeasurement of SUSS defined benefit
pension scheme
. Other charitable activities
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
1,168,844
969,224
120,478
27,728
-
2,286,274
92,272
(144,868)
2,125,546
2,072,950
213,324
213,324
(392,321)
213,324
(178,997)		 Restricted
funds
2023
£
204,176
-
-
-
-
204,176
-
-
204,176
204,176
-
-
-
-
-		 Total
funds
2023
£
1,373,020
969,224
120,478
27,728
-
2,490,450
92,272
(144,868)
2,329,722
2,277,126
213,324
213,324
(392,321)
213,324
(178,997)		 Total
funds
2022
£
1,370,145
687,463
107,594
8,055
1,983
2,175,240
107,075
-
2,139,468
2,246,543
(71,303)
(71,303)
(321,018)
(71,303)
(392,321)

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

The notes on pages 27 to 59 form part of these financial statements.

Page 21

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 13435053

CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2023

Note
Fixed assets
Tangible assets
16
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
21,27
Total net assets		 41,087
26,275
1,192,378
1,259,740
(548,519)		 2023
£
120,449
120,449
711,221
831,670
(1,010,667)
(178,997)		 30,961
26,034
1,116,199
1,173,194
(543,991)		 2022
£
161,921
161,921
629,203
791,124
(1,183,445)
(392,321)

Page 22

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 13435053

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 JULY 2023

Note
Charity funds
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
22
Unrestricted funds excluding pension liability
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 518,449
353,923
872,372
(1,051,369)		 2023
£
-
(178,997)
(178,997)		 571,778
270,664
842,442
(1,234,763)		 2022
£
-
(392,321)
(392,321)

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

Muhammad Taha Khan (Dec 12, 2023 14:06 GMT) ................................................ ................................................ Muhammad Taha Khan Ann Allen President Chair of Board of Trustees

Date: 28 November 2023

The notes on pages 27 to 59 form part of these financial statements.

Page 23

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee) REGISTERED NUMBER: 13435053

UNION BALANCE SHEET AS AT 31 JULY 2023

Note
Fixed assets
Tangible assets
16
Investments
17
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Creditors: amounts falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
21
Net liabilities excluding pension asset
Total net assets
Charity funds
Restricted funds
22
Unrestricted funds
Designated funds
22
General funds
22
Unrestricted funds excluding pension liability
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 41,087
73,133
1,121,130
1,235,350
(534,308)
518,449
343,844
862,293
(1,051,369)		 2023
£
120,449
100
120,549
701,042
821,591
(1,010,667)
(189,076)
(189,076)
-
(189,076)
(189,076)		 30,961
74,655
1,054,222
1,159,838
(521,848)
571,778
277,920
849,698
(1,234,763)		 2022
£
160,290
100
160,390
637,990
798,380
(1,183,445)
(385,065)
(385,065)
-
(385,065)
(385,065)

The Union's net movement in funds for the year was £195,989 (2022 - £(52,724)).

Page 24

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

UNION STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 JULY 2023

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

Muhammad Taha Khan (Dec 12, 2023 14:06 GMT)

Muhammad Taha Khan President

Ann Allen Chair of Board of Trustees

Date: 28 November 2023

The notes on pages 27 to 59 form part of these financial statements.

Page 25

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Note
Cash flows from operating activities
Net cash provided by operating activities
24
Cash flows from investing activities
Bank interest
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
25		 2023
£
48,451
27,728
-
27,728
-
76,179
1,116,199
1,192,378		 2022
£
225,245
8,055
(167,181)
(159,126)
-
66,119
1,050,080
1,116,199

The notes on pages 27 to 59 form part of these financial statements

Page 26

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1. General information

University of Huddersfield Students' Union is a registered charity (no. 1137401). The registered office is Queensgate, Huddersfield, HD1 3DH.

The members of the charity are the Trustees named on page 1.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

The University of Huddersfield Students’ Union (the “Charity”) was registered as a charity on 1 September 2022, number 1197170, succeeding The University of Huddersfield Students’ Union, which is now a linked charity. The Trustees have taken advantage of the Charity Commission concession to link charities which have a common Trustee board allowing preparation of one set of financial statements for both charities the Charity has adopted merger accounting as prescribed by paragraph 27 of the charity SORP. Accordingly these financial statements present comparative amounts on the same basis to show the aggregated results for the combining charities for the previous reporting period.

University of Huddersfield Students' Union meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

The block grant for 2023-24 has been confirmed at £1.43m. A business as usual budget has been set for 202324 and there is no anticipated cut to the university grant.

The Union has no overdraft facility or other external loans, the Union's forecasts and projections show that the Union has sufficient reserves to be able to operate for at least 12 months from the date of approval of these financial statements. As such the Trustees consider it appropriate to continue to prepare the financial statements on the going concern basis.

Page 27

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

The Coronavirus Job Retention Scheme (CJRS) income is recognised in other income in the period to which it relates on an accruals basis.

2.4 Expenditure

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

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

2.5 Interest receivable

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

2.6 Taxation

The charity is considered to pass the tests set out in Schedule 6, paragraph 1 of the Finance Act 2010 and therefore it meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Income Tax Act 2007, Part 10 s521 – s537 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 28

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.7 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

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

2.9 Stocks

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

2.10 Debtors

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

2.11 Cash at bank and in hand

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

Page 29

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.15 Pensions

The Union participates in the Students’ Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. The scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS102, in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year. The present value of the Union’s deficit contribution is recognised as a liability in accordance with SORP (FRS102).

The Union also contributes to defined contribution pension schemes for its employees. The pension charge represents the amounts payable by the company to the fund in respect of the year.

Page 30

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.16 Fund accounting

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

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

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

Investment income, gains and losses are allocated to the appropriate fund.

2.17 Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Group is committed to terminate the employment of an employee or to provide termination benefits.

Page 31

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

3. Critical accounting estimates and areas of judgment

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

Critical accounting estimates and assumptions:

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

Critical areas of judgment:

(i) Pension deficit contribution

The charity has entered into a commitment to provide deficit funding to the Students' Union Superannuation Pension Scheme, of which it is a contributing employer. Under FRS 102, the present value of the commitment is recognised. The calculation of the present value of the commitment is subject to an assumption of the discount rate. The discount rate is determined by reference to market yields at the reporting date on high quality corporate bonds.

(ii) Support costs

Staffing and adminstration support costs are allocated across the various activities of the Group. The Group's policy for allocation is detailed in note 11 to the financial statements.

Page 32

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

4. Income from donations and legacies

Grants
University block grant
University grant for rent
University support and recharges
Total grants
Total 2022		 Unrestricted
funds
2023
£
1,116,459
-
52,385
1,168,844
1,168,844
1,161,719		 Restricted
funds
2023
£
-
204,176
-
204,176
204,176
208,426		 Total
funds
2023
£
1,116,459
204,176
52,385
1,373,020
1,373,020
1,370,145		 Total
funds
2022
£
1,161,719
204,176
4,250
1,370,145
1,370,145

5. Income from charitable activities

Fresher's week and refreshers
NUS Totum
Retail operations
Sports and societies
Other trading operations
Total 2023
Total 2022		 Unrestricted
funds
2023
£
33,812
990
852,779
66,933
14,710
969,224
687,463		 Total
funds
2023
£
33,812
990
852,779
66,933
14,710
969,224
687,463		 Total
funds
2022
£
50,457
1,242
583,851
38,985
12,928
687,463

Page 33

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

6. Income from other trading activities

Income from non charitable trading activities

Huddersfield Students' Union Lettings Ltd
Total 2020
Investment income
Bank interest receivable
Total 2022
Other incoming resources
Coronavirus Job Retention Scheme income
Total 2020 as restated		 Unrestricted
funds
2023
£
120,478
107,594
Unrestricted
funds
2023
£
27,728
8,055
Unrestricted
funds
2023
£
-
1,983		 Total
funds
2023
£
120,478
107,594
Total
funds
2023
£
27,728
8,055
Total
funds
2023
£
-
1,983		 Total
funds
2022
£
107,594
Total
funds
2022
£
8,055
Total
funds
2022
£
1,983

7. Investment income

8. Other incoming resources

Page 34

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

9. Expenditure on raising funds

Other trading expenses

Operating costs
Staff costs
Depreciation
Total 2022		 Unrestricted
funds
2023
£
13,391
77,250
1,631
92,272
107,075		 Total
funds
2023
£
13,391
77,250
1,631
92,272
107,075		 Total
funds
2022
£
17,660
87,590
1,825
107,075

Page 35

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

10. Analysis of expenditure on charitable activities

Summary by fund type

Clubs and societies
Student representation
Welfare and advice services
Volunteer services
NUS affiliation
Trading operations
Student events
Goverance
Fresher's week
SUSS pension re-measurement
Total 2022		 Unrestricted
funds
2023
£
284,775
224,434
320,450
565
31,119
971,639
228,007
32,108
32,449
(144,868)
1,980,678
1,931,042		 Restricted
funds
2023
£
17,713
123,990
26,569
-
-
27,048
8,856
-
-
-
204,176
208,426		 Total
2023
£
302,488
348,424
347,019
565
31,119
998,687
236,863
32,108
32,449
(144,868)
2,184,854
2,139,468		 Total
2022
£
269,246
518,264
340,540
6,076
-
631,638
297,231
31,841
44,632
-
2,139,468

Page 36

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

10. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

Clubs and societies
Student representation
Welfare and advice services
Volunteer services
NUS affiliation
Trading operations
Student events
Goverance
Fresher's week
SUSS pension re-measurement
Total 2022		 Staff costs
2023
£
72,780
169,932
265,320
-
-
300,949
172,038
-
4,825
-
985,844
1,043,954		 Depreciation
2023
£
7,455
8,573
7,704
-
-
9,404
6,707
-
-
-
39,843
28,343		 Other costs
2023
£
222,253
169,919
73,995
565
31,119
688,334
58,118
32,108
27,624
(144,868)
1,159,167
1,067,171		 Total
2023
£
302,488
348,424
347,019
565
31,119
998,687
236,863
32,108
32,449
(144,868)
2,184,854
2,139,468		 Total
2022
£
269,246
518,264
340,540
6,076
-
631,638
297,231
31,841
44,632
-
2,139,468

Page 37

(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

11. Analysis of expenditure by activities

Clubs and societies
Student representation
Welfare and advice services
Volunteer services
NUS affiliation
Trading operations
Student events
Goverance
Fresher's week
SUSS pension re-measurement
Total 2022		 Activities
undertaken
directly
2023
£
166,758
119,319
238,145
565
31,119
902,781
166,730
-
32,449
-
1,657,866
1,481,523		 Support costs
2023
£
135,730
229,105
108,874
-
-
95,906
70,133
32,108
-
(144,868)
526,988
657,945		 Total
funds
2023
£
302,488
348,424
347,019
565
31,119
998,687
236,863
32,108
32,449
(144,868)
2,184,854
2,139,468		 Total
funds
2022
£
269,246
518,264
340,540
6,076
-
631,638
297,231
31,841
44,632
-
2,139,468

Page 38

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Facilities costs
Other costs
Governance costs
Total 2022
Staff costs
Depreciation
Facilities costs
Other costs
Goverance costs
Total 2022		 Clubs and
societies
2023
£
72,780
7,455
55,495
-
-
135,730
128,869
Goverance
costs
2023
£
-
-
9,701
-
22,407
32,108
31,841		 Student
rep
2023
Welfare
and
advice
2023
Trading
operation
s
2023
Student
events
2023
£
£
£
£
66,958
52,402
61,135
37,845
8,573
6,709
7,828
6,707
153,574
49,763
26,943
25,581
-
-
-
-
-
-
-
-
229,105
108,874
95,906
70,133
227,431
106,759
94,447
68,598
SUSS Pension
2023
Total
funds
2023
Total
funds
2022
£
£
£
-
291,120
286,195
-
37,272
25,561
-
321,057
226,290
(144,868)
(144,868)
94,059
-
22,407
25,840
(144,868)
526,988
657,945
-
657,945		 Student
events
2023
£
37,845
6,707
25,581
-
-
70,133
68,598

The support costs detailed above, excluding rent, are allocated using a proportion of staff numbers. 25% (2022: 25%) is allocated to Clubs and Societies expenditure, 13% (2022: 13%) to Events expenditure, 23% (2022: 23%) to Student Representation expenditure, 18% (2022: 18%) to Welfare and Advice services expenditure and 21% (2022: 21%) in relation to raising funds. Rent is allocated 70% (2022: 70%) to Student Representation, 15% (2022: 15%) to Welfare and Advice services, 10% (2022: 10%) to Clubs and Societies expenditure, and 5% (2022: 5%) to Events expenditure.

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

12. Auditors' remuneration
2023 2022
£ £
Fees payable to the Group's auditor for the audit of the Group's annual accounts 17,025 13,405

13. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2023
£
946,772
77,758
38,564
1,063,094		 Group
2022
£
1,010,837
80,689
40,019
1,131,545		 Union
2023
£
869,522
77,758
38,564
985,844		 Union
2022
£
923,245
80,689
40,019
1,043,953

During the year redundancy payments of £11,067 were paid to four employees (2022: £1,400 to one employee).

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

Group Group
2023 2022
No. No.
Staff numbers 67 79

Page 40

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

13. Staff costs (continued)

The average headcount expressed as full-time equivalents was:

Student representation
Welfare services
Governance
Commercial services
Administration
Student staff- student representation
Student staff - commercial services		 Group
2023
No.
10
4
1
4
6
3
3
31		 Group
2022
No.
14
4
1
6
6
2
4
37

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 1 -

The total amount of employees benefits received by key management personnel including employers NI and pension contributions is £300,701 (2022: £281,167). The Union considers its key management personnel to comprise the trustees, including the sabbatical officers who are remunerated and the Senior Management.

14. Trustees' remuneration and expenses

The five sabbatical roles each incurred a salary charge as authorised in the Students' Union governing document, for the representation, campaigning and support work they undertake as distinct from their trustee responsibilities. This work includes voicing student opinion with the University and local community, defending and extending the rights of students through petitions, discussions with MP’s and also organising and supporting student volunteers and service provision for them. Details of the five sabbatical officers are available on page 1 of the financial statements.

Remuneration is paid to each sabbatical officer for an annual term which runs to the 30 June, should an officer leave part way through the year the remuneration is paid on a pro rata basis. New sabbatical officers also receive an additional 2 weeks pay for training. For the year to 30 June 2022 and 30 June 2023 each officer received annual remuneration of £21,401. The aggregate amount payable under such contracts in the year ended 31 July 2023 was £118,130 (2022: £111,564).

In the year, 7 trustees had expenses reimbursed of £5,595 (2022: 5 trustees totalling £2,141).

Page 41

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

15.
Intangible assets
Group
Cost
At 1 August 2022
At 31 July 2023
Amortisation
At 1 August 2022
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Website
development
£
6,600
6,600
6,600
6,600
-
-

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

16. Tangible fixed assets

Group

Cost or valuation
At 1 August 2022
At 31 July 2023
Depreciation
At 1 August 2022
Charge for the year
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Fixtures and
fittings
£
130,604
130,604
43,571
22,334
65,905
64,699
87,033		 Office
equipment
£
115,575
115,575
40,687
19,138
59,825
55,750
74,888		 Total
£
246,179
246,179
84,258
41,472
125,730
120,449
161,921

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

16. Tangible fixed assets (continued)

Union

Cost or valuation
At 1 August 2022
At 31 July 2023
Depreciation
At 1 August 2022
Charge for the year
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Fixtures and
fittings
£
120,010
120,010
34,531
20,780
55,311
64,699
85,479		 Office
equipment
£
111,861
111,861
37,050
19,061
56,111
55,750
74,811		 Total
£
231,871
231,871
71,581
39,841
111,422
120,449
160,290

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

17. Fixed asset investments

Union
Cost or valuation
At 1 August 2022
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022
Principal subsidiaries		 Investments in
subsidiary
companies
£
100
100
100
100

The following was a subsidiary undertaking of the Union:

Name Company Registered office or Principal activity Class of Holding
number principal place of shares
business
Huddersfield Students' 09108828 Queensgate, Providing support and Ordinary 100%
Union Lettings Ltd Huddersfield, advice to students on
HD1 3DH lettings.
The financial results of the subsidiary for the year were:
Name Income Expenditure Profit/(Loss)/ Net assets
£ £ Surplus/ £
(Deficit) for the
year
£
Huddersfield Students' Union Lettings Ltd
120,478		 103,143 17,335 10,179

The financial results of the subsidiary for the year were:

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

18. Stocks

Finished goods and goods for resale
19.
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2023
£
41,087
Group
2023
£
3,897
-
3,077
19,301
26,275		 Group
2022
£
30,961
Group
2022
£
-
-
1,120
24,914
26,034		 Union
2023
£
41,087
Union
2023
£
3,897
50,000
2,973
16,263
73,133		 Union
2022
£
30,961
Union
2022
£
-
50,000
1,020
23,635
74,655

Page 46

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

20. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
SUSS defined benefit pension scheme liability
Other creditors
Accruals and deferred income
Deferred income at 1 August 2022
Resources deferred during the year
Amounts released from previous periods		 Group
2023
£
62,329
42,364
40,702
70,873
332,251
548,519
Group
2023
£
275,057
298,297
(275,057)
298,297		 Group
2022
£
62,750
42,165
51,318
59,052
328,706
543,991
Group
2022
£
15,832
275,057
(15,832)
275,057		 Union
2023
£
60,041
42,364
40,702
70,407
320,794
534,308
Union
2023
£
261,885
286,841
(261,885)
286,841		 Union
2022
£
60,600
38,757
51,318
55,638
315,535
521,848
Union
2022
£
5,682
261,885
(5,682)
261,885

At the financial year end, £283,507 (2022: £258,552) was recognised in deferred income in relation to grants receivable from the University of Huddersfield in advance of the period for which it related. Remaining deferred income relates to employer's rebate from HMRC of £3,333 (2022: £3,333) and income received in advance in Hudlets of £11,456 (2022: £13,172) relating to website advertising and open days.

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

Group Group Union Union
2023 2022 2023 2022
£ £ £ £
SUSS defined benefit pension scheme
liability 27 1,010,667 1,183,445 1,010,667 1,183,445

Page 47

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22.
Statement of funds
Statement of funds - current year
Unrestricted funds
Designated funds
Operating reserve
Capital expenditure reserve
Charity incorporation
IT equipment replacement
Anti racism project
Strategic planning
General funds
General Funds
Huddersfield Students' Union
Lettings Limited
SUSS pension deficit
Total Unrestricted funds
Restricted funds
Rent
Total of funds		 Balance at 1
August 2022
£
375,000
146,278
12,500
30,000
8,000
-
571,778
277,920
(7,256)
(1,234,763)
(964,099)
(392,321)
-
(392,321)		 Income
£
-
-
-
-
-
-
-
2,165,796
120,478
-
2,286,274
2,286,274
204,176
2,490,450		 Expenditure
£
-
(32,897)
(12,500)
-
(8,000)
-
(53,397)
(2,018,656)
(103,143)
102,246
(2,019,553)
(2,072,950)
(204,176)
(2,277,126)		 Transfers
in/out
£
-
7,068
-
(10,000)
-
3,000
68
(81,216)
-
81,148
(68)
-
-
-		 Balance at 31
July 2023
£
375,000
120,449
-
20,000
-
3,000
518,449
343,844
10,079
(1,051,369)
(697,446)
(178,997)
-
(178,997)

Page 48

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22.
Statement of funds (continued)
Statement of funds - prior year
Unrestricted funds
Designated funds
Operating reserve
Capital expenditure reserve
Charity incorporation
Student minds
IT equipment replacement
Trustee recruitment
Anti racism project
General funds
General Funds
Huddersfield Students' Union
Lettings Limited
SUSS pension deficit
Total Unrestricted funds		 Balance at
1 August 2021
£
375,000
151,896
7,837
5,175
-
8,000
-
547,908
402,319
11,323
(1,282,568)
(868,926)
(321,018)		 Income
£
-
-
-
-
-
-
-
-
1,859,220
107,594
-
1,966,814
1,966,814		 Expenditure
£
-
(20,242)
(6,369)
(5,175)
(3,132)
(6,000)
(6,000)
(46,918)
(1,846,367)
(114,850)
(29,982)
(1,991,199)
(2,038,117)		 Transfers
in/out
£
-
14,624
11,032
-
33,132
(2,000)
14,000
70,788
(137,252)
(11,323)
77,787
(70,788)
-		 Balance at
31 July 2022
£
375,000
146,278
12,500
-
30,000
-
8,000
571,778
277,920
(7,256)
(1,234,763)
(964,099)
(392,321)

Page 49

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

22. Statement of funds (continued)

----- Start of picture text -----
Balance at Transfers Balance at
1 August 2021 Income Expenditure in/out 31 July 2022
£ £ £ £ £
Restricted funds
Rent - 204,176 (204,176) - -
- - -
IT support 4,250 (4,250)
- - -
208,426 (208,426)
-
Total of funds (321,018) 2,175,240 (2,246,543) (392,321)
----- End of picture text -----

22. Statement of funds (continued)

Designated funds:

Operating reserve

£375,000 has been designated to stabilise HSU finances providing a cushion against unexpected events, losses or income. The figure will cover day to day operations and cash flow, based on 3 months of operating costs.

Capital expenditure reserve

£120,449 is being carried forward as designated funds which represent the value of fixed assets held at the year end.

Charity Incorporation

A one off project to move the organisation from an unincorporated to incorporated organisation. The funding would cover the legal costs to set up the new company and transfer the assets and liabilities including the SUSS pension.

I.T. Equipment

£30,000 is to be invested in updating IT equipment over a three year period.

Anti-Racism Project

This investment is for a Project Steering Group to represent the different organisations that make up the Union, to facilitated conversations (voices), a review of policies (student and staff facing policies) and to understand the Union’s existing practice of anti-racism data and review.

Strategic planning

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Student Minds

This is investment for a temporary role and additional resources to establish a new Peer to Peer mentoring service with support from Student Minds. This is a main objective for the Officers and was the key issue highlighted by new students as the area that they wanted us to help with, all funds were spent during the year.

Restricted funds:

Rent

The University of Huddersfield provide funding to the Union to cover the costs of renting the Students' Union's building.

IT Support

The Students' Union receives IT support from the University of Huddersfield free of charge. In accordance with the principles of SORP 2019, this has been recognised in the Statement of Financial Acitivities.

Transfers :

A transfer has been made from unrestricted reserves to the capital expenditure reserve for £7,068 to align the tangible fixed assets with this designated fund balance.

In the previous year, the Trustees designated £30,000 to be spent equally across three years. A transfer of £10,000 has been made between the IT equipment replacement designated reserve to unrestricted funds which represents the unspent annual allocation.

A transfer of £3,000 has been made from unrestricted reserves to the strategic planning designated fund to represent funds set aside for anticipated spend on strategic planning costs in 2023/24.

A transfer of £81,148 has been made to the pension fund. This amount represents contribution payments made to the SUSS pension scheme.

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2023
£
120,449
1,259,740
(548,519)
(1,010,667)
(178,997)		 Total
funds
2023
£
120,449
1,259,740
(548,519)
(1,010,667)
(178,997)

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

23. Analysis of net assets between funds (continued) Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2022
£
161,921
1,173,194
(543,991)
(1,183,445)
(392,321)		 Total
funds
2022
£
161,921
1,173,194
(543,991)
(1,183,445)
(392,321)

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Bank interest
(Increase)/decrease in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Pension finance cost
SUSS pension remeasurement
Net cash provided by operating activities		 Group
2023
£
213,324
41,472
(27,728)
(10,126)
(241)
(66,004)
42,622
(144,868)
48,451		 Group
2022
£
(71,303)
30,170
(8,055)
1,953
12,622
229,876
29,982
-
225,245

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

25. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2023
£
1,192,378
1,192,378		 Group
2022
£
1,116,199
1,116,199

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1 August
2022
£
1,116,199
(51,318)
1,064,881		 Cash flows
£
76,179
-
76,179		 Other non-
cash changes
£
-
10,616
10,616		 At 31 July
2023
£
1,192,378
(40,702)
1,151,676

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments

The Union participates in the NUS Pension Scheme, a defined contribution scheme. During the year, contributions of £38,564 (2022: £40,019) were paid to the scheme. Included within other creditors at the year end were pension liabilities totalling £6,184 (2022: £7,009).

The Union also operates a defined benefit pension scheme.

The Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a "final salary" basis, with benefits in respect of service from 1 October 2003 onwards accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme closed to future accrual.

The most recent valuation of the Scheme was carried out as at 30 June 2019 and showed that the market value of the Scheme’s assets was £119.1m with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £140.9m.

Valuations are conducted every three years based upon assumptons agreed by the Trustees, and is used to set the contributions payable by the participating employers.

The outcome in financial terms is set out in the table below:

30 June 2016
£m		 30 June 2019
£m
Assets £101.3 £119.1
Liabilities £221.0 £260.0
Deficit (£119.7) (£140.9)
FundingLevel 46% 46%

The increase shown in the deficit since 2016 is in line with the changes previously reported, following annual reviews, but makes allowance for the impact of the 7% pension increase issue. This has increased the deficit in SUSS but its impact has been mitigated by the member consent exercise.

Whilst the assets have performed well, rising by over 17% over the three years, the liabilities have increased by a similar percentage. The sustained low yield on government bonds has continued to affect the liabilities, but the increase was driven in large part by the pension increase issue. The Trustees have concluded that the level of contributions to clear the deficit will have to rise above the planned 5% annual increase in order to address this. However, in order to allow time for unions to make the necessary arrangements the increase in contributions will come into effect from October 2021.

The increase of 5% due in October 2020 proceeded as planned, and these contributions form part of the plan to remove the funding deficit in SUSS.

Following the 2020 increase, and in order to attribute the further increase in costs as fairly as possible, the Trustees have allocated the additional liabilities arising from the 7% pension increase issue to those unions whose members are directly affected by it. This means that a union with many affected members may see a substantial increase in their contributions to SUSS from October 2021, while a union with no members affected by the issue would see a

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments (continued)

much smaller increase.

The Trustees also considered whether the costs of carrying out the member consent exercise should be borne only by those unions whose members are directly affected by the pension increase issue. After careful consideration, and keeping in mind the principle of collectivism, they concluded that a significant proportion of the costs incurred were justifiable expenses of running SUSS as a whole (because benefits needed to be adjusted, and members written to, whether or not the compromise offer was made). What remained, once allocated to the many affected unions and reclaimed over a reasonable period of time, was not material in the context of the overall level of payments being made to SUSS by the unions, and so no additional charges will be made in respect of this.

The existing recovery plan, based on the results of the 2016 valuation, was due to end in 2033. One option considered by the Trustees was to retain this target end date, in line with the Pensions Regulator’s guidance that funding deficits should be addressed over as short a period as possible. However, given the already substantial level of contributions being made to SUSS by the employers, the Trustees concluded that extending the recovery period, and hence reducing the initial increase in contributions that unions would be required to make, struck an appropriate balance between removing the deficit as quickly as possible while remaining affordable.

In summary, employer contributions increased by 5% in October 2020 as planned and then by around 18%, on average, from 1 October 2021 (8% for those without any members affected by the compromise issue, and more for those with affected members). Contributions will increase by 5% each year thereafter until the end of the deficit recovery period, which is expected to be in August 2035. However, contributions due from October 2023 onwards will be reviewed following the next actuarial valuation.

Under FRS102 the Union is required to recognise as a liability the present value of its agreed share of future deficit contributions. Finance costs are recognised as the present value unwinds.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

27. Pension commitments (continued)

The full reconciliation of this present value is as follows:

Present value of provision

2023 2022
£ £
Student's Union Superannuation Scheme
Present value of provision:
Creditors: amounts fallingdue within oneyear(note 20)		 1,051,369
40,702		 1,234,763
51,318
Creditors: amounts falling due after more than one year (note 21) 1,010,667 1,183,445
Reconciliation of opening and closing provisions: 1,051,369 1,234,763
2023
£
Provision as at 1 August 2022 1,234,763
Unwindingof discount factor 42,622
Deficit contributionpaid (81,148)
Movement in net present value calculation (144,868)
Provision as at 31 July 2023
Assumptions:		 1,051,369
2023 2022
% %

The discount rates shown above are the equivalent single discount rates when used to discount the future recovery plan contributions due, would give the same results using a full AA corporate bond yield curve to discount the same recovery plan contributions.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

28. Operating lease commitments

At 31 July 2023 the Group and the Union had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Group Group Union Union
2023 2022 2023 2022
£ £ £ £
Not later than 1 year 204,176 205,119 204,176 205,119
Later than 1 year and not later than 5 years 102,088 306,264 102,088 306,264
306,264 511,383 306,264 511,383
The following lease payments have been recognised as an expense in the Statement of financial activities:
Group Group Union Union
2023 2022 2023 2022
£ £ £ £
Operating lease rentals 205,120 205,434 205,120 205,434

29. Related party transactions

The Union is in receipt of a recurring grant from the University of Huddersfield of £1,116,459 (2022: £1,161,719).

The Union also paid rent totalling £204,176 (2022: £204,176) and IT and other support recharges totalling £52,385 (2022: £4,250) to the University during the year. At the year end, the Union owed the University of Huddersfield £27,104 (2022: £nil).

Included in deferred income is a balance of £283,507 (2022: £258,552) which relates to the block grant received in advance from the University.

Huddersfield Students' Union Lettings Limited (Hudlets) is a wholly owned subsidiary of University of Huddersfield Student's Union. During the year, the Union recharged costs amounting to £10,871 (2022: £12,033) to Hudlets. At the balance sheet date, £50,000 (2022: £50,000) was owed to the Union.

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(A company limited by guarantee)

UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

30. Merger Accounting

University of Huddersfield Students' Union was an unincorporated charity (charity number 1137401). A seperate charity, under the name of University of Huddersfield Students' Union was incorprated as a charitable company on 1 September 2022 (charity number 1197170). The unincorporated charity and the charitable company were merged on 1 September 2022 and as such merger accounting has been used in these financial statements. The assets, liabilities and funds of the combining charities are presented as though they had always been part of the same reporting charity. Due to the merger occuring during the reporting period, the results of the combined charities for the whole reporting period relate to 1 month of the pre merger period and 11 months of the post merger period. The compartive amounts all related to the pre merger period.

Analysis of SoFA components for the current reporting period

Total income
Total expenditure
Net movement in funds		 Unincorporat
ed charity
(pre-merger)
2023
£
136,496
(140,132)
(3,636)		 Incorporated
charity (post-
merger)
2023
£
2,353,954
(2,136,994)
216,960		 Total
funds
2023
£
2,490,450
(2,277,126)
213,324

There was no activity in the incorporated charity pre-merger.

Analysis of principal SoFA components for the previous reporting period

Total income
Total expenditure
Other gains/(losses)
Total funds brought forward		 Unincorporat
ed charity
2022
£
2,175,240
(2,246,543)
-
(321,018)
(392,321)		 Total funds
2022
£
2,175,240
(2,246,543)
-
(321,018)
(392,321)

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UNIVERSITY OF HUDDERSFIELD STUDENTS' UNION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Analysis of net assets at the date of merger
Designated funds
General funds		 2023
£
572,370
(968,327)
(395,957)

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