VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..18GMT (UTC +0) D 1r2 p la Charity numbers: 285189 & SC038300 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022
VrbJJkgun*urvTrarwoCbc Ref. LSTF.YSR&CJ2G 15NoY 2022 13..50..17GMT (UTC +0) D 1r2 p 2a 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
VrbJJkgun*urvTrarwoCbc Ref. LSTF.YSR&CJ2G 15NoY 2022 13..50..17GMT (UTC +0) D 1r2 P3a THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2022 Trustees R Avann, OUSA Chief Executive (resigned 1310712022) N Boffee. OUSA Vice President Student Support lappoinled 01108120221 C Brown, Chair Iresigned 30109120221 M Bryan. OUSA VI President Administration lappoinled 0110812022) R Flynn, OU VIGe Chancellor Notninee S Goodyear, Co-opted Trustee (resigned 30109120221 S Jones, Ci)-OPted Trustee, Chair and Immediate Past President lappoinled 0110812022) A lfjngan, OUSA Vice President Student Support Iresigned 31107120221 J McDougall, CTropted Trustee (appointed 01108120221 B Metcalf, OUSA Chief Executive (appointed 13107120221 M Porterfield, outgoing OUSA VI President Administration (resigned 31107120221, Co-opted Trustee {appointed 0110812022, resigned 30109120221 D Smith, Co-opted Trustee (appointed 0110812022} s stubbins, Co-opted (appointed 2810112022} Charity registered numbers 285189 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 Reading Bridge House George Street Reading Berkshire RG18LS Bankers National Westminster Bank pl¢ 501 Silbury Boulevard Mimon Keynes Solicitors Stone King LLP Boundary House 91 Charterhouse Street London ECJM 6HR Page 1
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..18GMT (UTC +0) D 1r2 p4a THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2022 The Trustees present their annual report together with the audited financial statements of The Open Universty Students Educational Trust IOUSETI for the 1 August 2021 to 31 July 2022. The Trustees confimi that the annual report and financial statements of the Trust comply wth the ujrrent 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 Trust, to advance the education Df the public, is set out in its Declaration and 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 wthin the University. Activities for achieving objectives The Trust supports students who would be otherwise unable to study with the Open University, whether this is due to being ineligible for other forms of financial assistance or being unable to secure the full amount they may need to fund their studies. OUSET wo5 closely wth the University to promote the ok)portunity of support and lo work together lo maximise the use of the Trust's resources to assist successful applicant5. 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 environment 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 wth the University and who can also demonstrate that their need for financial support is genuine. The TNst moniiors the educats'on and financial sectOTS and adjusts its criteria and guidance to applicants ensuring these are well adapted to the changing student demographic and their needs. We updated our criteria as of October 2021, in order lo achieve greater financial stability for OUSET and ensure students have equal opportunity to funding through grants awarded. Changes include caps per academic year and caps on total credits at undergraduate and postgraduate levels. Our funding criteria is published on our website. Grants are only considered toward the cost of study and other closely related study requirements - for example. fees, travel to tutorials or residential schools. childcare costs, sel books, IT equipment. Grants are not made for general cost of living expenses. Trustees give priotrty to those who have embarked on a qualffication but where a change in financial circumstance5 means that they would be unable to continue with their studies without assistance from OUSET. This year, the Trust has received a number of applications from students whose financial sibJation has been adversely impacted by the CovFd-19 pandemic. Al applications are considered against the criteria in place at that time. which is regularly reviewed and revised by the Trustees to refflecl changes in the Higher Edu¢ats'on Sector. As mentioned above, we reviewed and implemented changes to the criteria in October 2021. We will conts'nue to review this over the coming year. Page 2
VrbJJkgun*urvTrarwoCbc Ref. LSTF.YSR&CJ2G 15NoY 2022 13..50..18GMT (UTC +0) D 1r2 p srd THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 Volunteers With the exception of the Open University Vice-chancellor's nominee and the On Universty Students Association Chief Executive, all other Trustees are volunteers and only receive reimbursement of out of pocket expenses incurred and directly related to OUSET business. ACHIEVEMENTS AND PERFORMANCE Trustees are proud of the conlriblrtion they make to improving the life opportunities of the grant recipients and as a resuK, bringing wder beneffts lo soaety at large. These testimonials received from some of the beneficiaries show what a difference our grant awards can make: "Thanks to OUSET l am on course to achieve distinction for both modules. This would not have been possible WrthJt your stgnificant and thoughthJl help and l am very grateful. Thank you. "Without your wonderful assistance, I would not have been able to undertake the course and l am so grateful to you and your generosty. Thank you so much." "I'd like lo thank the Trust for awarding me the funding to stu(ty my OU Module Science and Health. which wouldn't have been possible wthout your help. I'm now looking to pursue a career in prosthetic engineering or carer research." In 2021122, OUSET supported 45 students {2020121.' 531 who met the funding criteria. granting a total of £98,301 in awards12020121.' £121,083). During the year, as well as Teviewng the funding lteria, Ttustees developed a strategic plan covering 2022123 to 2024125. The plan sets out the Trust's key priorities for development and how success wll be measured. To ensure OUSET can continue to provide a safety net for Open University students who might othepNise struggle to continue to fund their studies. our key priority is to further strengthen our financial sustainability by exploring other fullding opportunities. We are currently working wth a fundraising ¢)Jnsuttanl lo develop the Trust'5 fundraising strategy. FINANCIAL REVIEW Income and expenditure Income in the year exceeded expenditure by £323.481. The Trust relies on legacies and donations lo fund its activities and these are unpredictable. Whilst Trustees are always saddened to hear of the passing of a member of the Open University student or alumni community, we are grateful thal the valuable work of OUSET is often remembered in wills. In 2021122. income from bequests and legacies amounted to £442,69512020121'. £103,880). The Students Association encourages customers of the OU Students Shop. where students can download past exam paper5. free of charge, to donate to the work of OUSET. To maximi5e the amount it receive5 from donation5, the Trust is registered for Gift and this is reclaimed quarterly from HMRC. To commemorate the Students Association's 50th anniversary, each of the 4 faculties of the Open Universty pledged a £S,000 donation to the £50,000 fundraising target on beha of OUSET. The Student Association's Board of Tfustees, al their meeting in July 2022, approved to match fund the total donated by the University with a £20,000 donation from Association reserves. Added to this are funds raised by OUSET'S JustGiving campaign and profits from the sale of 50th anniversary branded merchandise through the Association's online shop. Other than expendilure on grants, the Trust's largest area of expenditure is the management fee payable to the Association based on a percentage of staff lime allocated to the administration and management of the TNst. The basis of the management fee is reviewed annually and agreed between Trustees of the Students Association and Trustees of the Educational Trust. This represents value for money for the Trust, providing a wide range of expertise and time input from a variety of Association staff members. Page 3
VrbJJkgun*urvTrarwoCbc Ref. LSTF.YSR&CJ2G 15NoY 2022 13..50..18GMT (UTC +0) D 1r2 p 6fJ THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 OUSET has systems in place to provide the appropriate financial infomiation to Trustees and managers to make sound financial decisions and to fulfil Charity Commission requiremenls. Management and Trustees receive regular finanual statements to enable them to monitor the Trust's financial position to help ensure future financial sustainability. The Trust reported no funds in defiut éuring the year. Roserves The Trust brought foNard total free reseNes of £686,882. There were no restricted funds brought foard. The Trust carries fOard to 2022123 a total of £1,010.363 in unrestricted funds. Whi151 Trustees do not set a minimum or maximum level of reserves, they are mindful of balanang support for applicants in the current year wth safeguarding fijnding to support applicants in future years. The cuThenl Higher Education sector financial picture remains uncertain and everchanging and therefore the context that we operate in is a challenging environrnent where the Trustees have to apply financial prudence to their deciston making to ensure OUSET financial sustainability- Nonetheless it is our desire to attract hard to reach students and raise awareness about the Trust's work. This work will continue, er¢suring the work of our Trust is publicised- that we monitor the effectiveness of the Trust's fvnding criteria. the new guidelines notes, and funding application fonms. in delivering on the Trust's strategic aims. Investment policy and parfomianea Trustees prioritise liquidity over financial returns and accept that this is likely lo mean that the real value of the asset will depreciate over lime. The reseNe is therefore held in an instsnt access deposit account wth Natwest currently eaming interest well below the rale of inflation. 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 fijnds. Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existen for the foreseeable future. For this reason, they continue lo adopt the going COnM basis in preparing the financial slatemenls. Further details regarding the lOphOn concem basis can be found in the Accounting Policies. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The Open University Students. Educational Trust IOUSET) is controlled by it5 goveming document. a Declaration of Trust, dated 22 May 1982 a5 amended by a scheme dated g October 1992 and as further amended by Deed on 9 April 2019 and constitutes a charitable trust. Method of appointment or election of trustees As per the governing dOrnent, the maximum number of Trustees is eight. Three of the Trustee positions are appointed by virtue of their position Mqthin the Open University Students Association IOUSAI. These are the Vice President responsible for Administration, the Vice President responsible for Student Support and the Association's Chief Executive. One further Trustee is nominated by Ihe Vice Chancellor of the Open University. Page 4
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..19GMT (UTC +0) D 1r2 p 7WJ THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 The Trust may elect up to six Truslees lo see for a pericxl of years, unless otherwise detemined by the Trustees in exceptional circumstances. Policies adoptod for the induction and training of new tTUStees On appointment, Trustees are biiefed on the role and provided with training on our methods and principles. Pay policy for senioi staff OUSET does not employ any staff. Inslead. OUSET pays a management charge lo the Open University Students Association for the staffing support that it receives. The day to day management of the Trust is managed by the Open University Students Association's Head of Operations and her team, supported by the Finan and ReSoUrS team. Organisational structure and decision making The Trustees primarily operate online via a suite of secure forums hosted by OUSA. These fonjms provide the opportunity for Trustees to consider applications, meet virtually. discuss the business of the Trust and engage wth OUSA staff who support Trust's administrative functions. In addition, Board of Trustee meetings are held at least trNice a year. During the pandemic, these have been held online and going fonvard, it is envisag that meetings wll either continue to be held online or in person with the option for Trustees lo join online. Related party relationships The Open University Students Association was instrumental in establishing OUSET and supports the charity in ils fundraising endeavours. In 2021122, £40,150 ha5 been raised by the Students Association and pledged to OUSET as part of its 50th anniversary fundraising target. Through the OU Students Shop, the Students, Association has continued to inwte customers to make a voluntary donation to support the activities of OUSET. In 2021122, donations from this source totalled £5,190. In addition, OUSET also received donations totalling £392 from 1 Society (Commeral Awareness Society) on osure. Risk management The Trustees have a duty to identify and review the risks lo which the Trust is exposed and to ensure that appropriate controls and systems are in place. OUSET does not direcuy employ any staff members bul day-t¢> day duties are handled by the Student Association's operatn$ Team and overseen by the Head of Operations on behalf of the Student Association's Senior Managèment Team. Trustees have identified its principal risks as.. The threat to financial sustainability from the erosion of reseNes should expenditure exceed income- The threat to operational capaaty lo progress all incoming applicalions. if the need for services rapidly increases- Loss or unavailability for prolonged periods of key personnel affeIng the ability to progress applications within rwjuired timeframes. Page 5
VkiuaBunatLnTrarffjxlvM Ref. LSTF-YSR&CJ2G 15 Nov 2022 I1..19 GMT (UTC +0}0 112 P 8rxJ THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2022 PLANS FOR FUTURE PERIODS Futura dav6lopments OUSET keeps ils operation, its Crlteria and aFplication guideline5 under review to ensure continuous improvement to deliver an organisation that can better achieve its objectives. During the year OUSET has taken step5 towards updating ils goveming document, Declaration of Trust, to make improvements lo the administration and effeclivene5s of the Trust, and to invite more independent representation. The main focus for 2022123 will be lo implement OUSET'S strategic plan, working wth fundraising consultants to develop a fijndraising strategy and identify other potential sources of funding. Trustees wll also take steps lo promote OUSET'S work to generate funds as well as lo ensure the Trust is reaching all demographic groups who meet the funding criteria, so that we play our part in maximising access to and participation in higher education, for the benefit of the individual as well as Mqder society. TRUSTEES. RESPONSIBILITIES STATEMENT The TrSteeS are responsible for preparing the Trustees. report and the financial statements in accordance Mqth applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. The law applicable to charities in EnglandMale$ & Scotland requires the Trustees lo prepare finanal statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resour5 and application of resources of the Charity for Ihal period. In preparing these financial statements, the Trustees are required to= select suitable accounting policies and then appty them consistently., observe the methods and principles in the Charibes SORP., make judgments and accounting estimates that are reasonable and prudent., prepare the financial statements on the going concem basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping proper accounting records that are sUffIent to show and explain the Charitys transactions and disclose wlh reasonable accuracy 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 (Scotland) 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 foi taking reasonable steps for the prevention and delectson of fraud and other irregularities. Approved by order of the members of the board of Trustees and stgned on their behalf by." S Jones. Chair and Immediate Past President Dale: 15 Novemb8r 2022 Page 6
VrbJJkgun*urvTrarwoCbc Ref. LSTF.YSR&CJ2G 15NoY 2022 13..50..20GMT (UTC +0) D 1r2 p 9fJ 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 2022 Mthich 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 2022 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
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..20GMT (UTC +0) D 1r2 p 10r23 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
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..21 GMT (UTC +0) D 1r2 p 11r23 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 the Trustees arourKI actual and potential litigation and daims- Enquiry of entity staff in housing and compliance functions to identify any instances of non-compliance with laws and regulations- Reviewing minutes of meetings of the Trustees- Reviewing finanual statement disclosures and testing to supporting documentation to assess complian with applicable laws and regulations., Performing audit work over the iisk of management ovenide of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting eslimates for bias. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at." www.frc.o -uklaudilorsres nsibilitie5. This description fomis part of our Auditorfs Report. Page 9
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..21 GMT (UTC +0) D 1r2 p 12r23 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. fw5 C(MA)poJ James Cowper Kreston Chartered Accountants and Statutory Auditor Reading Bridge House George Street Reading Berkshire RG18LS Dale= 16 November 2022 James Cowper Kreston are eligible to act as auditors in terms of section 1212 of the Companies Act 2006. Page 10
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..21 GMT (UTC +0) D 1r2 p 19r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2022 Unrestricted funds 2022 Total funds 2022 Total funds 2021 Note Income from: Donations and legacies Investments 492.181 289 492,181 289 121,451 111 Total incom8 492.470 492,470 121.562 Expenditure on: Charitable activities q68.989 168,989 179,383 Total expenditure Not incomellexp8nditur8) 168,989 168,989 179,383 323.481 323,481 157.821) Net movement in funds 323,481 323,481 157,821) Reeonciliation of funds: Total funds brought foward Net movement in fvnds 686.882 323.481 686,882 323,481 744.703 157,821) Total funds carried foThvard 1,010.363 1.010,363 686,882 The notes on pages 14 to 21 fomi part of these ffinanaI statements. Page 11
VkiuaBunatLnTrarffjxlvM Ref. LSTF-YSR&CJ2G 15 Nov 2022 13..S)..22 GMT (UTC +0}0 112 P 14r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST BALANCE SHEET AS AT 31 JULY 2022 2022 2021 Note Current assets Deblors 237,699 795,406 122,487 590.282 Cash al bank and in hand 1,033,105 712,769 Creditors.. amounts falling due wthin one year 10 (22,7421 125.8871 Not curr•nt ass•ts 1.010.363 686,882 Total net assets 1,010,363 686,882 Charity funds Unrestricted funds 1,010,363 686,882 Total funds 1,010,363 686,882 The financial SeMentS were approved and authorised for issue by the Trustees and signed on their behalf by.. S Jones, Chair and Immediate Past President Dale: 15 November 2022 The notes on pages 14 to 21 fomi part of these financial statements. Page 12
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..22GMT (UTC +0) D 1r2 p 15r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022 2022 2021 Cash flows from operaiing aciiviiies Nel cash used in operating activities 205,124 1127,603) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 205,124 1127,6031 717.885 590.282 Cash and cash equivalents al the end of the year T95.406 590.282 The notes on pages 14 to 21 fom part of these financial statements Page 13
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..23GMT (UTC +0) D 1r2 p 16r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 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
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..23GMT (UTC +0) D 1r2 p 17r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 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
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..24 GMT (UTC +0) D 1r2 p 18r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 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 2022 Total funds 2022 Total funds 2021 Donations 49,486 442,695 49,486 442.695 17.571 103,880 Legacie5 Total 2022 492,181 492,181 121,451 Total 2021 121,451 121,451 Investm8nl incom8 Unrestricied funds 2022 Total funds 2022 Total funds 2021 Bank interest received 289 289 111 Total 2021 111 111 Page 16
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..24 GMT (UTC +0) D 1r2 p 19r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Analysis of expenditure by activities Activities undertaken directly 2022 Grant funding of activities Support costs 2022 Total funds 2022 Total funds 2021 2022 Grants 98,301 98.301 61.747 8.941 121.083 51.282 7.018 Direct costs 61.747 Governance costs 8.941 Total 2022 61,747 98,301 8,941 168,989 179,383 Total 2021 51,282 121,083 7,018 179,383 Analysis of direct costs Direct costs Total funds 2022 Tolal funds 2021 2022 Management charges Card transaction charges Data protection Bank charges 61,505 169 61.505 169 51,007 240 35 35 38 38 Total 2022 61,747 61.747 51.282 Analysis of support costs Support Total funds Total funds Costs 2022 2022 2021 Governance costs 8,941 8,941 7,018 Page 17
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..24 GMT (UTC +0) D 1r2 p 20r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Analysis of grants Grants to Individuals 2022 Total funds 2022 Total funds 2021 Grants 98,301 98.301 121.083 Total 2021 121,083 121,083 Net incomellexpenditure) This is stated after charging.. 2022 2021 Auditorfs remuneration - audit 6.000 5.280 During the year. no Trustees received any remuneration {2021- £NIL}. During the year. no Trustees received any benefits in kind12021- £NIL). During the year. no Trustees received any reimbursement of expenses12021- £NIL). Staff costs The Charity has no employees other than the Trustees, who did not receive any remuneration 12021 £NIL}. Debtors 2022 2021 Other debtors 35.340 202.359 4.948 117.539 Prepayments and accrued income 237,699 122,487 Page 18
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..25GMT (UTC +0) D 1r2 p 21r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 10. Creditors: Amounts falling due within one year 2022 2021 other creditors- grants payable Accruals and deferred income 16,742 6,000 20,607 5,280 22.742 25,887 11. ststement of funds ststement of funds - current year Balance at 1 August 2021 Balance at Incomo Expenditure 31 July 2022 Unrestricted funds General frjnds 686,882 492,470 1168,989} 1,010.363 Statement of funds - prior year Balance at 1 August 2020 Balance at IncJJme Expenditure 31 July 2021 Unrestricted funds General funds 731,563 121,562 1166,2431 686,882 Restricted funds Legacies- student support 13,140 113,1401 Total of funds 744,703 121,562 1179.3831 686,882 Restricted funds represent amounts received from legacies for use on science, mathematics or technology wurses. Page 19
VrbJJkgun*urvTrarwoCbc Ref. LSTF.YSR&CJ2G 15NoY 2022 13..50..25GMT (UTC +0) D 1r2 p 22r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 12. Analysis of net assets between funds Analysis of net assets between funds- current year Unrestricted funds 2022 Total funds 2022 CuThenl assets 1,033,105 122,7421 1,033,105 {22,7421 Creditor5 due within one year Total 1,010.363 1.010.363 Analysis of net assets between funds - prior year Unrestricted funds 2021 Total funds 2021 Current assets Creditors due wlthin one year 712.769 125,8871 712.769 125,887) Total 686.882 686,882 13. Reconciliation of net movement in funds to net cash flow from operating activities 2022 2021 Adjustments for". Net income l {expenditurel for the year (as pei Statement of Finanaal Activities) Increase in debtors Increaselldecreasel in creditors 323.481 (115.212} (3,145) 157,821) 170,611) 829 Net cash provided byl{used in) operating activities 205.124 1127,6031 Page 20
VrbJJkgun*urvTrarwoCbc Ref. LSTF-YSR&CJ2G 15NoY 2022 13..50..28GMT (UTC +0) D 1r2 p 23r23 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 14. Analysis of cash and cash equivalents 2022 2021 Cash in hand 795.406 590.282 Toial cash and cash equlvalents T95.406 590,282 15. Analysis of changes in not debt Al 1 August 2021 Cash flows At 31 July 2022 Cash at bank and in hand 590.282 205.124 795.406 590,282 205,124 795,406 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 IOU). During the year administrative seThices were charged by OUSA. see below for details: Charges from OUSA Management charge Recharges 2022 £61,505 £3.429 2021 £42.507 During the year donations were collected by OUSA, see below for detail5.' Funds from OUSA 50th fundraising Webstore donations Soaety thnation 2022 £35,15D £5,190 £392 2021 £7,337 At the year end a balance of £35,34012021'. £4,299} was Teceivable from OUSA. 17. Controlling party The Trustees consider that there is no ultimate controlling paity. Page 21