Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..50 GMT (UTC +01 D 212 P 1123 Charity numbers: 285189 & SC038300 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..51 GMT (UTC +01 D 212 P2123 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST CONTENTS Page Reference and Adminislrative Details of the Charity. its Trustees and Adviser5 Trustees. Report Independent Auditorfs Report on the Financial Statements 7-10 Statement of Financial Activities 11 Balance Sheet 12 ststement of Cash Flows 13 Notes to th8 Financial Stst8ments 14-21
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..51 GMT (UTC +01 D 212 P THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021 Trustees L Adams. Co-opted Truslee (resigned 01112120211 R Avann, OUSA Chief Executive C Brown, Chair and Immediate Past President (appointed 0110812020} R Flynn. OU Vice Chancellor Nominee S Goodyear, CTropted Trustee A Kingan, Deputy Chair and OUSA Vice President Student Support M Porterfield. OUSA VI President Adminislralion (appointed 0110812020) S Stubbins. CTropted Trustee lappoinled 28101120211 Charity registered numbers 28S189 and SC038300 Principal office P.0. Box 397 Walton Hall Milton Keynes Buckinghamshire MK7 6BE Independent auditor James Cowper Kreston Chartered Accountants and Statutory Auditor 2 Chawley Park Cumnor Hill Oxford Oxfordshire OX2 gGG Bankers National Westminster Bank plc 501 Silbury Boulevard Mihon Keynes Solicitors Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR Page 1
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..52 GMT (UTC +01 D 212 P4123 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2021 The Trustees present their annual report together with the audited financial statements of The Open Universty Students Educational Trust IOUSETI for the 1st August 2020 to 31st July 2021. The Trustees confirm that the annual report and financial statements of the Charity comply wth the current statutory requirements, its Dedaration of Trust and the prowsions of the Charities SORP IFRS 1021. OBJECTIVES AND ACTIVITIES Objectives and Aims The Trust was established in 1982 by the Open University Students Association to advance the education of the public. The objective of the charity, to advance the education of the public, is set out in its Declarntion of Trust.. To advance the education of the public by assisting Open University students in condition of need, hardship or distress by the provision of aids, grants. or other means that shall assist their education within the University Activities for achieving objectivos The Trust supports students who would be otherwise unable to study wth the Open Universty. Mthether thi5 IS due to being ineligible for other fomis of financial assistance or being unable to secure the full amount they may need to fund their studies. OUSET works closely wth the Unwersity to promote the opportunity of support and to work together lo maximise the use of the Trust's resour5 to asslst successlul appllcants. The Trustees and their supporting members of OU Students Association staff are focused on the efficient processing of grant applications for financial assistance and the review of our funding criteria in the light of the constantly changing enMronment of the Higher Education Sector. Grant Making Policy It is the policy of OUSET to consider applications from those who can demonstrate a serious intention to succeed in their studies with the University and who can also demonstrate that their need for financial support is genuine. Grants are only considered toward the cost of study and other closely related study requirements - for example. fees. travel to tutorials or residential schoo15. childcare cost5, sel books, IT equipment. Grants are not made for general cost of living expenses. Trustees give priorrty to those who have embarked on a qualification but where a change in financial circumstances means that they would be unable to continue with their studies wtlhout assistance from OUSET. Thls year, the Charty has recelved a number of appllcattons from stu¢Jerrts whose )Inanclal sltuatlon has been adversely impacted by the CoMd-19 pandemic. Ml applications are considered against the criteria in place at that time. which is regularly reviewed and revised by the Trustees to refiecl changes in the Higher Educats'on Sector. The Charity monitors the education and financial sectors and adjusls its criteria and guidance to applicants ensuring these are well adapted to the changing student demcoraphic and their needs. Voluntears With the exception of the Open University Vice-chancellor's nominee and the Open Universtty Students Association Chief Executive. all other Trustees are volunteers and only receive expenses in retum for completing their duties. Page 2
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..52 GMT (UTC +01 D 212 P THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 ACHIEVEMENTS AND PERFORMANCE Trustees aim to support all applications that meet the wblished criteria and do not place a cap on Ihe number of awards it can grant in a peri(Kl. Trustees are proud of the contribution they make lo improving the life chances of the grant recipients and as a result. bringing wder benefits to society at large. In 2020121. OUSET supwrted 53 students {2019,120.' 591 who met the funding criteria, granting a total of £121.083 in awards12019120= £97.563). Over the last few years. the Trust has expended more than it has generated in income and so reseNes are declining. Trustees are therefore Seeking to develop new approaches to income generation and have undertaken a review of the funding criteria. FINANCIAL REVIEW Income and Expenditure Expenditure in the year exceeded income by £57,821. The Charity relies on donations and legacies to fund ils actFvities and these are unpredictable. To maximise the amount it receives from donations, the Trust is registered for Gift Aid. In 2020121. we reclaimed £599 from HMRC. Other than expenditure on grants, the Trust's largest area of expendi(ure is the management fee payable lo the Association based on a percentage of staff time allocated lo the administration and management of the Twst. The basis of the management fee is reviewed annually and agreed between Trustees of the Students Association and Trustees of the Educational Trust. OUSET has systems in place to provide the appropriate financial infom)ation to Trustees and managers to make sound financial decisions and to fulfil Charity Commission requirements. Management and Tru5tee5 receive regular financial statements to enable them to monitor the Trust's financial position to help ensure future financial Sustnab111ty. The Charity reported no furkds in defial during the year. Reserves The charity brought forward total reserves of £744,703 of Mthich £13,140 was restricted. This restricted fvnd was allocated during the year. in accordan with the donor's wshes, to support 5 awards to students registered on maths. sen Ix technology modules. The Trust carries fOard to 2021122 a total of £686.882 in unrestricted funds. Whilst Trustees do not set a minimum or maximum level of reseNes, they are mindful of balanang support for applicants in the current year wth safeguarding fund*ig to support applicants in future years. The current Higher Education sector financial picture remains uncertain and everchanging and therefore the context that we operate in 15 a challenging environrnent Mthere the TTU5tee5 have to apply financial Prudence to their decision making to ensure OUSET financial sustainability. Nonetheless it is our desire to attract hard to reach students and raise awareness about the Charitys work. This work will continue through the re-evaluation of Charitys funding criteria, new guidelines notes. arhj re-design of frjnding applications. Page 3
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..52 GMT (UTC +01 D 212 P&23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Investment policy and perfonnance Trustees prioritise liquidity over financial returns and accept that this is likely to mean that the real value of the asset wll depreciate over time. The resetve is therefore held in an instant access deposil account wth Natwesl Current eaming interest at 0.01°/o. Trustees periodically review their investment policy and liaise with the Head of Operations and Head of Finance and Resources of the Students Association regarding the management of OUSET'S funds. Going concem After making appropriate enquiries. the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concem basis in preparing the financial slatemenls. Further details regarding the adopbon concem basis can be found in the Accounting Poliaes. STRUCTURE, GOVERNANCE AND MANAGEMENT Govorning Document The Open University Students. Educational Trust IOUSET) is controlled by its goveming document, a Declaration of TNst, dated 22 May 1982 as amended by a scheme dated 9 October 1992 and as further amended by Deed on 9 April 2019 and constitutes a challtable trust. Method of Appointmont or Election of Trustoes As per the goveming document, three of the Trustee positions are appoinled by virtue of their position within the Open University Students Association IOUSAI. One further position is appointed by virtue of their previous P0511ion wqthin OUSA. as It is reserved for the Immediate Past President. One further Trustee is nominated by the Vice Chancellor of the Open University and there are three cctropted positions. It is envisaged that all Trustees wll serve terms of years in line with the main eleth.on periods wqthin OUSA, although there is no current limit on duration. Policies Adopted for the Induction and Training of New Trustees On appointment, Trustees are briefed on the role and provided with training on our methods and prin(aples. Pay Policy for Senior Staff OUSET does not employ any staff. Instead. OUSET pays a management charge to the Open University Students Association for the staffing support that it receives. The day to day management of the Charity is managed by the Open Univetsity Students AssorAation's Head of Operations and her team, supported by the Finance and ReSoUrS team. Organisational Structure and Decision Making The Trustees primarily operate online via a suite of secure forums hosted by OUSA. These forums provide the opportunity for Trustees to consider applications. meet virtually. discuss the business of the Trust and engage with OUSA staff who support Trust's administrative fvnclions. In addition, there are usually at least tsvo face-to-face meetings taking place in any given financial year. During the pandemic. all Trustee meetings have taken place via MS Teams. Page 4
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..53GMT (UTC +01 D 212 P7123 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 Rolated Party Relationships The Open University Students Association was instrumentsl in establishing OUSET and supports the charity in its fundraising endeavours. No fvndraising was undertaken in 2020121. Through the OU Students Shop. the Students, Association invites customers lo make a voluntary donation to suppo11 Ihe activities of OUSET. In 2020121, donalions from this source tolalled £7.337. In addition, OUSET also received donations tolalling £8.820 from 3 Societies on closure - Ballet and Opera. Development and Environment and Dr Turing. Risk Management The Trustees have a duty to identify and review the risks to which the Charity is exposed and lo ensure that appropriate controls and systems are in place. OUSET does not directly employ any staff members bul day to day duties are har*dled by the OUSA Operations Team and overseen by the Head of Operab"ons on behalf of the OUSA Senior Management Team. Trustees have identified its principal risks as.. The threat to financial suslainabilty from the erosion of reserves from expenditure continuing lo exceed income., The threat to Operati(al capacity to progress all incoming applications. if the need for seNices rapidly increases., Loss or unavailabilty for prolonged period5 of key personnel affecting the ability to progress applications within required limefraines. PLANS FOR FUTURE PERIODS Future Dov8lopmenis OUSET keeps its operation, it5 criteria and aFplication guideline5 under remew to ensure continuous improvement to deliver an organisation that can better achieve its objectives. During the year OUSET has taken steps towards updating its goveming document, Declaration of Trust, to make improvements to the administration and effectiveness of the Trust, and to invite more independent representation. The main focus for 2021122 will be to ensure that the Charitys redesigned fvnding criteria and supporting documents are communicated to all stakeholders and embedded with the Open University netrworts and operational systems. The Charity recognised that there are some signfficant funding changes beNYeen undergraduate and postgraduate levels of sludy. therefore under the new system there wyll be a separation of criteria lo best accommodate these changes. The Charity made plans to formulate its strategic direction thre thrtyjgh a series of focused sessions and workshops. a plan will be implemented for the Charity to progre5S towards fulfilment of tt5 vision and strategic goals. In 2021122 the Open University Students Association will be celebrating ils 50th Anniversary, the Charity plans to be actively involved in the celebrations and to use the events lo promote its work and run a fvndraising campaign alongside. Page 5
TransadiDn Ref. URDE-7-ADP 28 Jan 20t2 15..27..53 GMT (UTC +0> D 212 P WYJ THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2021 TRUSTEES. RESPONSIBILITIES STATEMENT The Trustees are responsible for preparing the Trustees. report and the financial statements in accordance wtth applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice}. The law applicable to charities in Englandlwales & Scotland require5 the Trustees lo prepare financial statements for each financral year which give a true and fair vtew of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting polictes and then apply them consistently., observe the methods and principles of the Charitie5 SORP {FRS 1021., make judgments and accounting estimates that are reasonable and prudent,. prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the charity wll continue in business. The Trustees are responsible for keeping proper accoLEnting records that are sufficient to show and explain the Charitys transactions and disclose wlh reasonable accL(racy al any lime the finanaal position of the Charity and enable them lo ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotlandl Act 2005, the Charities Accounts (Scotlandl Regulations 2006 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence fof taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the members of the board of Trustees and signed on their behalf by.. C Brown. Chair and Immediate Past President Dale= 28 January 2022 Page 6
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..54 GMT (UTC +01 D 212 P9123 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE OPEN UNIVERsifi STUDENTS EDUCATIONAL TRUST Opinion We have audFted the financial statements of The Open University Students Educational Trust {the 'charityl for the year ended 31 July 2021 Hthich comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framewt)rk that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Finanaal Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice}- The financial statements have been prepared in accordance wrth Accounting and Reporting by Charities preparing their accounts in accordance Mqth the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 in preference to Ihe Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is Teferred to in the extant regulations but has been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance wth the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial statement5= give a true and fair view of the state of the charitys affairs as al 31 July 2021 and of its incoming resources and application of resources for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Ac(x)unting Practice,. and have been prepared in accordance with the requirements of the Charits'es Act 2011, the Charities and Trustee Investsnent Iscouand) Act 2005 and regulation 8 of the Charities Acc(wnts {Scotlandl Regulations 2006. Basis for opinion We conducted our audit in aCcdanCe wth Intematignal Stsndards on Audib'ng {UKI IISAS IUKII and applicable law. Our responsibilrf(ies under those standards are fvrther described in the Auditorfs responsibilities for the audit of the finanaal statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audil of the financial statements in the United Kingdom. including the Financial Reporting Council's Ethical Standard, we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accoun"ng in the weparab.on of the ffinancial statements is appropriate. Based on the Work we have perfomied, we have not identified any material uncertainties relab.ng to events or conditions that, individually or collectively, may cast significant doubt on the charitys ability to continue as a going concem for a period of at least twelve months from Mhen the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees wth respect to Ing concem are described in the relevant sections of this report. Page 7
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..54 GMT (UTC +01 D 212 P 10r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE OPEN UNIVERsifi STUDENTS EDUCATIONAL TRUST ICONTINUEDI Other information The other infomialion comprises the infomiation included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other infomiation contained within the Annual Report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any forni of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other infomialion is materially inconsistent wth 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 Mthether this gThies rise to a material misstatement in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other information, we are required lo rewrt that fact. We have nothing to rep in this regard. Matters on which we are required to roport by exception We have nothing to report in respect of the following matters where the Charities {Account5 and Report51 Regulations 2008 and the Charities Accounts (SCOand> Regulations 2006 las amendedl requires us to report to you rf, in our opinion.. the infonmats'on given in the Trustees. Report is inconsistent in any material respect wth the finanal statements.. or sufficient and proper accounting record5 have not been kept., or the financial statements are not in agreement with the accounting record5 and retums- or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fulty in the Trustees. Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such intemal control as the Trustees delemiine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the finanaal slatements, the Trustees are responsible for assessing the charitys ability to cx)ntinue as a going concem, disclosing. as applicable, matlers related lo going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charity or to cease operaticns. or have no realistic altemalive but to do so. Page 8
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..54 GMT (UTC +01 D 212 P 11r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE OPEN UNIVERsifi STUDENTS EDUCATIONAL TRUST ICONTINUEDI Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 145 of the Charibes Act 2011 and section 44{1 }Icl of the Charities and Trustee Investment IScoUandl Act 2005 and report in accordance with the Act and relevant regulatsons made or having effect thereunder. Our objectives are to obtain reasonable assuran about whether the financial statements as a whde are free from material misslatemenl, whether due to fraud or eOr, and to issue an Auditorfs Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance wth ISAS {UK) wll aNYays delect 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 laken on the basis of these financial statements. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities. induding those leading to a material misstatement in the financial statements or non-compliance wth regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial 5tatement5, as we will be les5 likely to become aware of InStanS of non-compliallce. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery. collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities. including fraud. were as follows.. Enquiry of management and those charged governance around actual and potential litigation and claims- Enquiry of management and those charged with governance lo identify any material instances of non- compliance wth laws and regulations,. Reviewing finanual statement disclosures and testing to supporting documentation to assess complian with applicable laws and regulations., Performing audit WOTk to address the risk of irregularities due lo management override of controls, including lests'ng of joumal entries and other adjustments for approprialeness, evaluating the business rationale of signfficant transactions outside the nom)al course of business and reviewing accounting estimates for evidence of bias. A further descrrption of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. wAw.frc.o -uklaudilorsres nsibilities. This description forms part of our Aud[toS Report. Page 9
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..SSGMT (UTC +01 D 212 P 12r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE OPEN UNIVERsifi STUDENTS EDUCATIONAL TRUST ICONTINUEDI Use of our report This report is made solely to the charity's trustees. as a body. in accordance wth Part 4 of the Charities {Accounts and Reports) Regulations 2008 and regulation 10 of the Charities Accounts Iscodandl Regulations 2006. Our audrt work has been undertaken so that we might slate to the chariws trustees those matters we are required to state to them in an AudFtor's Report and for no other purpDS@ To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and its trustees, as a bojy, for our audit work, for this report, or for the opinions we have fomied. fv5 Qoujpoj James Cowper Kreston Chartered Accountants and Statutory Auditor 2 Chawley Park Cumnor Hill Oxford Oxfordshire OX2 9GG Date= 0710212022 James Cowper Kreston are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 10
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..SSGMT (UTC +01 D 212 P 13r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2021 Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Total funds 2020 Note Income from: Donations and legacies Investments 121,451 121,451 74,564 2,074 Total income 121.562 121,562 76.638 Expenditure on: Charitable activities 166,243 13.140 179,383 158,450 Total expenditure 166,243 13,140 179,383 158,450 Not expenditure 144.6811 (13.140) {57,821) 181,812) Not movement in funds 144.6811 113.140) {57,821) 181,812) Reconciliation of funds: Total funds brought forward Net movement in fvnds 731.563 144.6811 13.140 (13.140) 744,703 {57.821) 826.515 181,812) 686.882 686,882 744.703 Total funds carried forward The notes on pages 14 to 21 form part of these ffinanal statements. Page 11
TransadiDn Ref. URDE-7-ADP 28 Jan 20t2 15..27..56 GMT (UTC +0> D 212 P 14r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST BALANCE SHEET AS AT 31 JULY 2021 2021 2020 Note Current assets Deblors 122,487 590,282 51.876 717.885 Cash al bank and in hand 712,769 769,761 Creditors.. amounts falling due wthin one year 10 (25,8871 125.0581 Not curr•nt ass•ts 686.882 744,703 Total net assets 686,882 744,703 Charity funds Restricted funds Unrestricted fvjnds 13,140 731,563 686,882 Total funds 686.882 744,703 The financial stalements were approved and authorised for issue by Ihe Trustees and signed on their behalf by.. C Brown, Chair and Immediate Past President Dale= 28 January 222 The notes on pages 14 to 21 fomi part of these financial statements. Page 12
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..56GMT (UTC +01 D 212 P 15r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021 2021 2020 Cash flows from operaiing aciiviiies Nel cash used in operating activities (127,603) 1108,283) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 1127,603) 1108,2831 717.885 826.168 Cash and cash equivalents al the end of the year 590.282 717.885 The notes on pages 14 to 21 fom part of these financial statements Page 13
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..57 GMT (UTC +01 D 212 P 16r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 General inforrnation The Open University Students Educational Trust is an unincorporated charrtable trust. It is registered in England and Wales wth charity registered number 285189 and in Scotland wqth charity registered number SC038300. The princÈpal activty of the trust is the prowson of aids, grants, loans or other means to assist wth the education of students wthin the Open University. Accounting polieies 2.1 Basis of preparation of financial statements The finanaal statements have been prepared in accordance wrth the Charities SORP {FRS 1021- Accounting and Reporting by Charilies_' Statement of Recommended Practice applicable lo chartlies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 leffeclive 1 January 2019}, the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. the Charities and Trustee Investment (Scollandl Act 2005 and the Charities Accounts {Scotlandl Regulations 2006 las amended). The financial statements have been prepared to give a 'tnJe and fairf view and have departed from the Charities IAccounts and Reports) Regulation5 2008 only to the extent required to provide a 'true and fairf view. This departure has involved followng the Charities SORP IFRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effects.ve from 1 April 2005 which has since been withdrawn. The Open University Students Educational Trust meets the definition of a public benefrt entily under FRS 102. Assets and liabilities are initially recogni5ed at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 Income All income is recognised once the charity has entillement to the income, it is probable that the income ill be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement, the probabilty of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of enlitlement lo a legacy exists when the charity has sufficient evidence that a grft has been left to them (through knowledge of the existence of a valid Vbill and the death of the benefactor) and the executor is satisfied that the property in question wll not be required to sat15fy claims in the estate. Rlpt of legacy must be recognised when il is probable that it will be received and the fair value of the amount r1vable. which wll generally be the expected cash amount to be distributed to the charity. can be reliably measured. Page 14
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..57 GMT (UTC +01 D 212 P 17r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accounting policies {continuedl 2.3 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 setuement and the amount of the obligation can be measured reliably. Expenditure is classified by adivify. 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 activty are allocated directly to that activity. Shared costs which contribute to more than one ath.vity and support costs which are not attribthable to a single activity are apportioned betsveen those acttvities on a basis consistent wrth 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. Charitable activities and Govemance costs are costs incurred on the Chari5 educational operations. including support costs and costs relating to the governance of the charity apportioned to charitable activities. Grants payable are charged in the year M,hen the offer is made except in those cases where the offer 15 conditional. such grants being recognised as expenditure when the condition5 attaching are fulfilled. 2.4 Interest receivable Interest on funos held on deposll Is Included when re1Vable and the amount can be measured reliably by the charity.. this is nomially upon notiffication of thè intèrèst paid or payablè by the bank. 2.5 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid nel of any trade discounts due. 2.6 Cash at bank and in hand Cash at bank and in hand includes cash and SIrt-tem1 highly liquid investments wlh a short maturity of three nnIhS or less from the date of acquisition or opening of the deposit or similar account. 2.7 Liabilities and provisions Liabilities are recognised when there is an obligation al 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. 2.8 Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially reccyJnised al transaction value and subsequenlty measured at their settlement value wth the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. Page 15
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..58GMT (UTC +01 D 212 P 18r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Accounting policies {continuedl 2.9 Fund accounting General funds are unrestricted fiJnds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes Restrrcted funds are funds which are to be used in accordance wrth specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the SFeafic fvnd. The aim and use of each restricted fund is set out in the notes to the financial statements. Income from donations and legacies Unrestricied funds 2021 Total funds 2021 Total funds 2020 Donations 17,571 103,880 17,571 103.880 10.527 64,037 Legacie5 Total 2021 121,451 121,451 74,564 Total 2020 74,564 74,564 Investm8nl incom8 Unrestricied funds 2021 Total funds 2021 Total funds 2020 Bank interest received 111 111 2,074 Total 2020 2,074 2,074 Page 16
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..58GMT (UTC +01 D 212 P 19r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Analysis of expenditure by activities Activities undertaken directly 2021 Grant funding of activities Support costs 2021 Total funds 2021 Total funds 2020 2021 Grants 121.083 121.083 51.282 7.018 97.563 53,964 6.923 Direct costs 51.282 Governance costs 7,018 Total 2021 51,282 121,083 7,018 179,383 158,450 Total 2020 53,964 97,563 6,923 158,450 Analysis of direct costs Direct costs Total funds 2021 Tolal funds 2020 2021 Management charges Postage and stationery Board meetings Card transaction charges Data protection Bank charges 51,007 51.007 53,328 70 240 240 355 35 42 Total 2021 51,282 51.282 53,964 Analysis of support costs Support costs 2021 Total funds 2021 Total funds 2020 Governance costs 7,018 7.018 6.923 Page 17
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..58GMT (UTC +01 D 212 P20r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Analysis of grants Grants to Individuals 2021 Total funds 2021 Total funds 2020 Grants 121,083 121.083 97,563 Total 2020 97,563 97,563 Net incomellexpenditure) This is stated after charging.. 2021 2020 Auditorfs remuneration - audit 5.280 4.560 During the year. no Trustees received any remuneration {2020 - £NIL}. During the year. no Trustees received any benefits in kind12020- £NIL). During the year. no Trustees received reimburèment of expenses12020- 2 tnjstees £5791. Staff costs The Charity has no employees other than the Trustees, who did not receive any remuneration 12020 - £NIL}. Debtors 2021 2020 Other debtors 4.948 117.539 6.297 45.579 Prepayments and accrued income 122,487 51,876 Page 18
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..59GMT (UTC +01 D 212 P21r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 10. Creditors: Amounts falling due within one year 2021 2020 other creditors- grants payable Accruals and deferred income 20,607 5,280 20,498 4,560 25.887 25,058 11. ststement of funds ststement of funds - current year Balance at 1 August 2020 Balance at Incomo Expenditure 31 July 2021 Unrestricted funds General frjnds 731,563 121.562 1166,243) 686.882 Restricted funds Legacie5- student support 13,140 113,140} Total of funds 744,703 121,562 (179.383} 686.882 Statement of funds - prior year Balance at 1 August 2019 Balance at Income Expenditure 31 July 2020 Unrestricted funds General funds 813.375 76,638 1158.4501 731.563 Rostrictod funds Legacies- student support 13,140 13,140 Total of funds 826,515 1158,4501 744,703 Restricted funds represent amounts received from legacies for use on science, mathematics or technolojy courses. Page 19
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk 15..27..59GMT (UTC +01 D 212 P22r29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 12. Analysis of net assets between funds Analysis of net assets between funds- current year Unrestricted funds 2021 Total funds 2021 CuThenl assets 712,769 125,8871 712,769 125,8871 Creditor5 due within one year Total 686.882 686.882 Analysis of net assets between funds - prior year Unrestricted funds 2020 Restricted funds 2020 Total funds 2020 Current assets Creditors due wlthin one year 756.621 125.0581 13.140 769.761 125,058) Total 731,563 13.140 744,703 13. Reconciliation of net movement in funds to net cash flow from operating activities 2021 2020 Adjustments for". Net expenditure for the year {as per Statement of Financial Activities) Increase in debtors Increaselldecreasel in creditors 156.821) (75.304} 4,522 181.812) {816) 125,655) Net cash used in operating activities 1127,603) 1108,2831 Page 20
Trarr&Brin Ref. URDE-7JZX-JLDP28 Jan 20tk IS..2&. GMT (UTC +01 D 212 pYJr29 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 14. Analysis of cash and cash equivalents 2021 2020 Cash in hand 590.282 717.885 Toial cash and cash equlvalents 590.282 717,885 15. Analysis of changes in not debt Al 1 August 2020 Cash flows At 31 July 2021 Cash at bank and in hand 717.885 (127.603) 590.282 717,885 (127,603) 590,282 16. Related party transactions As described in the Trustees. Report, the majority of Trustees of the Open University Students Educational Trust IOUSETI are appointed by virtue of their position wlhin The Open University Students Association IOUSAI and one nomination by the Vice Chancellor of The Open Universtty (The OUI. During the year a management charge of £51.007 12020.. £53,328) and other costs of £1.738 12020.. £1,596) were charged by OUSA. Donations that were previously collected by OUSA {Servicesl Limrted were processed through OUSA in the current year, lotalling £7,337 12020= £5,628 via OUSA ISeNices) Ltd). At the year end a balance of £4.299 was receivable12020'. £574 (via OUSA {Servicesl Ltd). During the year £NIL purchases were made from OUSA Iserwcesl Ltd12020: £3551. During the year expenses totalling £NIL12020.. £579} were reimbursed to O Trustees {2020: 21. 17. Controlling party The Tru5tee5 Wn5ider that there 15 no ultimate NtrOllIng party. Page 21