Charlty numbers.. 285189 & SC038300 THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST CONTENTS Page Reference and Administrative Details of the Charity, its Trustees and Advisers Introduction from the Chair of Trustees Trustees. Report Independent Auditors. Report on the Financial Statements 9-12 Statement of Financial Activities 13 Balance Sheet 14 Statement of Cash Flows 15 Notes to the Flnanclal Statements 16-24
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2025 Trustees M Bryan, OUSA Vice President Adminislralion {resigned 1 July 20251 S Jones, Co-opted Trustee, Chair and Immediate Past President (appointed 14 March 20251 J McDougall, Co-opted Trustee B Pay, OUSA Chief Executive D Smith, Co-opted Trustee S O'Kelly, OU Vice Chancellor Nominee M Walker. VI President Student Welfare (resigned 1 October 20241 K Kennedy {appoinled 1 July 20251 J Hannington (appointed 1 July 20251 L Robinson (appointed 1 August 20241 M Greenaway. Chair lappoinled 1 August 2024, resigned 1 January 2025} Charity registered numbers 285189 and SC038300 Principal office PO Box 397 Walton Hall Milton Keynes Buckinghamshire MK7 6BE Independent auditors Haysmac LLP Slatulory Auditors 10 Queen Street Place London EC4R 1AG Bankers National Westminster Bank plc 501 Silbury Boulevard Milton Keynes Solicitors Stone King LLP Boundary House 91 CHarterhouse Street London EC1MHR Page 1
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INTRODUCTION FROM THE CHAIR OF TRUSTEES FOR THE YEAR ENDED 31 JULY 2025 The Open University Students Educational Trust {OUSET} is al an exciting point in its history. The Trust was established in 40 years ago with the aim of supporting students who are experiencing financial hardship. The principle of open access to lifelong learning is something that the Open University is based upon. Access lo quality education can be life changing and should not be contingent on financial situation. Many students who aCsS OUSET have no other means of funding their education, in particular for those students in financial hardship, and this mission in just as important today as il was when the charity was established. OUSET'S income derives from legacies, individual giving, and donations from the OU Students Union (also known as Open SU., fomiedy known as the Open University Student Association). However, much of this has been passive giving and unpredictable, making longer-term planning challenging. The Board are committed to creating more sustainable and reliable income streams, to safeguard the Trust's future to continue lo support students. To achieve this goal, we have worked with external fundfftising consultants and employed a temporary fLJndraiser for 18 months. Although this individual was incredibly passionate about the cause, we found that we were not able to bring funds necessary to justify this post and so we thank her for all her hard work, but the drawing board to Consider as a board how we can reduce our outgoing costs and diversity our income lo protect the charity for many years to come. This said, we are comfortable with our current financial position and are excited to welcome new board members with fresh ideas to the team. The Board is excited to progress their plans to diversify our income. ensure our support is known across the OU ommunity and lo promote the support we offer, and to enable more disadvantages students to continue their studies. S Jones Chair of Trustees Page 2
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2025 The Trustees present their annual report together with the audited financial statements of The Open University Students Educational Trust IOUSETI for the 1 st August 2024 to 31st July 2025. The Trustees confirm that the annual report and financial statements of the Charity comply with the current statutory requirements, its Declaration of Trust and the provisions 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, lo advance the education of the public, is sel out in ils 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 within the University. b. Activities for achieving objectives The Trust supports students who would be olheNise unable to study with the Open University, whether this is due to being ineligible for other forms of financial assistan or being unable lo secure the full amount they may need lo fund their studies. OUSET works closely with the University to promote the opportunity of support and lo work together lo maximise the use of the Trust's resources lo assist successful applicants. The Trustees and their supporting members of Open SU 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. Page 3
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2025 Objectives and activities (continued) Grant Making Policy 11 is the policy of OUSET lo 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. The Charity monitors the education and financial sectors and adjusts its criteria and guidan to applicants ensuring these are well adapted lo the changing student demographic and their needs. 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 priority to those who have embarked on a qualification but where a change in financial circumstanS means that they would be unable lo continue with their studies wilhoul assistance from OUSET. We continue to monitor the impact of the financial criteria changes we implemented in October 2021. We intrOdUd limits lup to 180 credits for undergraduates and up lo 60 credits for poslgradualesl to help lo ensure funding is distributed as widely as possible. As part of our monitoring strategy, we record all incoming applications including referral details li.e. how did you hear about OUSETI. We also work with other departments of the University to remain up lo date with any changes lo the wider funding structure within the higher education sector. Our funding criteria is published on 'hllps'.Ilwww.oustudenls.comlsupport-and-advicelouseV" d. Volunteers With the exception of the Open University Vice-chancellor's nominee and the Open University Students Union Chief Executive, all other Trustees are volunteers and only receive reimbursement of out of pocket expenses incurred and directly related lo OUSET business. Achievements and performance Trustees are proud of the contribution they make lo improving the life chances of the grant recipients and as a result, bringing wider benefits to society al large. In the past year we have been able to launch our new website and testimonial hub. linked up with Charity Link to make the charity savings and reviewed our fundraising pilot, making the decision lo not employ staff at this point in time. The board are still keen to explore fundraising and other opportunities for diversity, but they are confident that the pilot showed us some areas that could work in the future and some which are not right for OUSET and our situation. The board have been able to share some incredible projects with students, hosting a hike over Yorkshire peaks and raising money by involving students in this wonderful opportunity. We are also able lo link up with some of the Ou's societies lo raise funds and see this as a potential avenue for the future. In 2024125, OUSET supported 54 students 12023124.. 561 who met the funding criteria. granting a total of £102,651.72 in awards12023124.. £157,715.75). Page 4
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2025 a. Income and expenditure Income in the year exceeded expenditure by £114,058.65. The Charity relies on legacies and donations lo fund ils artivilies and these are unpredictable. Whilst Trustees are always saddened to hear of the passing of a member of the Open University sludenl or alumni community, we are grateful that the valuable work of OUSET is often remembered in wills. In 2024125, income from bequests and legacies amounted 10 £36,67212023124 £422kl. The Student Union encourages customers of the "https.'Ilwww.ousludentsshop.¢oml" OU Students Sho where students can download past exam papers, free of charge, lo donate to the work of OUSET. To maximise the amount it receives from donations, the Trust is registered for Gift Aid and this is reclaimed quarterly from HMRC. Other than expenditure on grants, the Trust's largest area of expenditure is the management fee payable lo the Association based on a percentage of staff time allocated to the financial support provided lo the Trust and the fee payable lo Charity Link. The basis of the management fee is reviewed annually and agreed beeen Trustees of the Sludenl Union 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. OUSET has systems in place lo provide the appropriate financial information lo Trustees and managers lo make sound financial decisions and to fulfil Charity Commission requirements. Management and Trustees re1ve regular financial statements lo enable them to monitor the Trust's financial position to help ensure future financial suslainabilily. The Charity reported no funds in deficit during the year. b. Reserves The Charity brought fonNard total free reseNes of £1,569,075. There were no restricted funds brought fomard. The Trust carries forward to 2025126 a total of £1,445,018 in unrestricted funds. Whilst Trustees do not set a minimum or maximum level of reseNes, they are mindful of balancing support for applicants in the current year with safeguarding funding lo support applicants in future years. The current Higher Education sector financial picture remains uncertain and everchanging and therefore the context that we operate in is a challenging environment where the Trustees have lo apply financial prudence to their decision making to ensure OUSETS financial suslainabilily. Nonetheless it is OLJr desire lo attract hard to reach students and raise awareness about the Charity's work. This work will continue, ensuring the work of our Trust is publicised,. that we monitor the effectiveness of the Charity's funding criteria, the new guidelines notes, and funding application forms, in delivering on the Trust's strategic aims. Page 5
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2025 . Investment policy and performance Trustees prioritise liquidity over financial returns and accept that this is likely to mean that the real value of the asset will depreciate over time. Surplus funds are currenuy invested in tranches of between £200k and £300k in fixed temi Treasury Deposits with Natwesl for up to 6 months. The balan, to meet day-to-day operational costs, is held in an instant access deposit account with Natwesl. As of 31 July 2025, we held £1,000,000 in treasury deposits. Trustees periodically review their investment policy and liaise with the Student Union regarding the management ofOUSET's funds. d. Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate reSoUrS to continue in operational existence for the foreseeable future. Al current levels of expenditure, the Charity's reseNes would fund several years of charitable activity. The Charity has few overheads and is therefore protected from the impact of the cost of living crisis. For this reason, they continue lo adopt the going concern basis in preparing the financial slalemenls. Further details regarding the adoption concern basis can be found in the Accounting Policies. a. Govemlng document The Open University Students Educational Trust is a registered charity. number 285189, and is constituted under a Trust deed. b. Method of appointment or election of trustees As per the governing document, the maximum number of Trustees is eight. Three of the Trustee positions are appointed by virtue of their position within the Open University Student Union (Open SUI- 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 the Vice Chancellor of the Open University. The Trust may elect up to six Trustees to serve for a period of two years, unless otherwise determined by the Trustees in exceptional circumstances. c. 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 principles. Page 6
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2025 {¢ontinued) d. Pay policyfor senior stsff OUSET does not employ any staff. Instead, OUSET pays a management charge to the Open University Student Union for the staffing support that it reIveS. Grant management is handled by Charity Link, this includes the Company Secretary role. Organisational structure and decision making The Trustees primarily operate online via a suite of secure forums hosted by Charity Link. These forums provide the opportunity for Trustees to consider applications, meet virtually, discuss the business of the Trust and engage with Charity Link. In addition, Board of Trustee meetings are held quarterly these have been held online and going foard, il is envisaged that meetings will either continue to be held online going foNard. The board utilise a slack space for less formal conversations and to share training and ideas with one another. f. Related party relationships The Open University Sludenl Union was instrumental in establishing OUSET and supports the charity in its fundraising endeavours. In 2024125, £25,000 has been donated by the Student Union to support delivery of OUSET'S work lo support students. Through the OU Students Shop, the Student Union has continued to invite customers lo make a voluntary donation lo support the activities of OUSET. In 2024125, donations from this soune lotaled £3.213. Page 7
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2025 Statement 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 Praclicel. The law applicable lo Charities in England & Wales and Scotland 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 Charity and of its incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgements and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject lo any material departures disclosed and explained in the financial statements- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy al any lime the financial 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 (Scollandl Act 2005, the Charities Accounts (Scollandl Regulations 2006 las amended) and the provisions of the Trust deed. 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. Approved by order of the members of the board of Trustees and signed on their behalf by.. SJones Chair and I Date.. me iat President Page 8
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST Opinion We have audited the financial slalements of The Open University Students Educational Trust Ilhe 'Charity'l for the year ended 31 July 2025 which 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 framework that h8s 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 Praclicel. The financial statements have been ppared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 1021 in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred 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 with the Generally Accepted Accounting Practice effective for reporb'ng periods beginning on or after 1 January 2015. In our opinion the financial statements= give a true and fair view of the slate of the Charivs affairs as at 31 July 2025 and of ils incoming resources and application of resources for the year then ended., have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment {Scoll8ndl Act 2005 and regulation 8 of the Charities Accounts Iscotlandl Regulations 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 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 ¢asl significant doubt on the Charity's ability lo ¢onlinue as a going COnM for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant secb'ons of this report. Page 9
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST (CONTINUED) Other information The other infomialion comprises the information included in the Annual Report other than the financial statements and our Auditors, Report Ihereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other infomalion and, except to the extent otherwise explicitly slated in our report, we do not express any form of assuran 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 misslatemenls, we are required to determine whether this gives rise lo a material misslatemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities {Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotlandl Regulations 2006 (as amended) requires us to report to you if, in our opinion.. the information given in the Trustees. Report is inconsistent in any material respect with the financial slatemenls. or sufficient and proper accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees. Responsibilities Statement, the Trustees 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 neSSary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial slatemenls, the Trustees are responsible for assessing the Chariys ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to aSe operations, or have no realistic altemative but to do so. Page 10
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST (CONTINUED) Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under section 145 of the Charities Act 2011 and section 44111{cl of the Charities and Trustee Investment (Scotlandl Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misslatemenl when it exists. Misstatements can arise from ffftud 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. 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= Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the Charity and industry, we identified that the principal risks of noncompliance with laws and regulations related to regulatory requirements for the investment advisory business and trade regulations, and we considered the extent to which non-compliance might have a material effert on the financial slatemenls. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and income tax. We evalLJated managemenys inntiVeS and opportunities lor fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries lo revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included.. 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 misslatemenl in the financial slalements or non-complian 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 stslements, 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 for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.frc.o .uklaudilorsres onsibililies. This description forms part of our Auditors, Report. Page11
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST (CONTINUED) Use of our report This report is made solely lo the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and regulation 10 of the Charities Accounts (Scollandl Regulations 2006. Our audit work has been undertaken so that we might slate lo the charity's Iruslees those matters we are required to slate to them in an Auditors, Report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility lo anyone other than the charity and its members, as a body, for our audit work. for this report, or for the opinions we have formed. Rlchard Weaver Haysmac LLP Slatulory Auditors 10 Queen Street Place London EC4R 1AG Date.. Haysmac LLP are eligible to act as auditors in lemis of section 1212 of the Companies Act 2006. Page 12
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2025 Unrestricted funds 2025 Total funds 2025 Total funds 2024 Note Income from.. Donations and legacies Other trading activities Investments 67.917 6.360 40,026 67,917 6,360 40,026 140,794 57,975 Total income 114.303 114,303 198,769 Expendlture on: Charitable activities 258,954 258,954 296,250 Total expenditure 258.954 258,954 296,250 Net movement in funds (144,6511 {144,651} {97,4811 Reconciliation of funds- Total funds brought forward 1.569.075 1,569,075 1,666,556 Total funds carrled fovNard 1.424.424 1,424,424 1,569,075 The notes on pages 16 to 24 form part of these financial statements. Page 13
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST BALANCE SHEET AS AT 31 JULY 2025 2025 2024 Note Current assets Debtors Cash at bank and in hand 10 130,831 1,354,174 142,848 1,506,482 1,485,005 1.649.330 Creditors.. amounts falling due within one year 11 (60,581) 180,2551 Net current assets 1,424.424 1,569,075 Totsl assets less current liabilities 1,424.424 1,569,075 Total net assets 1.424.424 1,569,075 Charityfunds Unrestricted funds 12 1.424.424 1,569,075 Total funds 1.424.424 1,569,075 The financial stslements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. on D Smith ITrusle81 The notes on pages 16 to 24 form part of these financial statements. Page 14
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025 2025 2024 Cash flows from operating activities Net cash used in operating activities 1152.3081 266,355 Change In cash and cash equlvalents In the year Cash and cash equivalents al the beginning of the year 1152.3081 1.506,482 266,355 1,240,127 Cash and cash equivalents at the end of the year 1.354.174 1,506,482 The notes on pages 16 to 24 form part of these financial statements Page 15
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 General information The Open University Students Educational Trust is an unincorporated charitable Irusl. 11 is registered in England and Vvales with charity registered number 285189 and in Scotland with charity registered number SC038300. The principal activity of the trust is the provision of aids, grants, loans or other means to assist with the education of students within the Open University. Accountlng pollcles 2.1 Basls of preparatlon of flnanclal statements The financial slalements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities". Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The financial statements have been prepared lo give a 'lrue and fair, view and have departed from the Charities {Accounls 8nd Reports) Regulations 2008 only to the extent required lo provide a 'lrue and fairf view. This departure has involved following the Charities SORP IFRS 1021 published in October 2019 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The Open University Students Educational Trust 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 slated in the relevant accounting policy. 2.2 Going concern After making appropriate enquires, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. There has been a sustained increase in legacy income in the recent years. while applications for the grant funding have remained low. At current levels of expenditure, the Charity's free reserves together with the predicted income from legacies are sufficient lo fLJnd several years of charitable activity. The charity has very few fixed cost and the Trustee regularly review funds to ensure that grant commitments and related costs are monitored and remain within available resource. The Trustees also invest a portion of reserves in higher-inleresl bonds, generating returns above those available from a standard current account and further supporting financial resilience. The Trustees are mindful that the Charity is expected lo transition to a Charitable Incorporated Organisation ICIOI during 2025-26, after which the current charity will be wrapped up and its activities transferred to the new enlily. For these reasons, the Trustees continue to adopt the going concern basis in preparing these rinancial statements. Page 16
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Accounting policies Icontinuedl 2.3 Income All income is recognised once the Charity has entitlement to the income. it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing enlitlemenl, the probability of receipt and the ability lo estimate with sufficient accuracy the amount receivable. Evidence of enlillemenl lo a legacy exists when the Charity has sufficient evidence that a gift has been left to them Ilhrough knowledge of the existence of a valid will and the death of the benefaclorl and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured. Ineome tax recoverable in relation to investment income is recognised al the time the investment income is receivable. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation lo 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 artivily 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 artivily are allocated directly lo that activity. Shared costs which contribute lo more than one activity and support costs which are not allribulable lo 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 Charity's objectives, as well as any associated support costs. Grants payable are Charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions allaching are fulfilled. Grants offered subject lo conditions which have not been mel at the year end are noted as a commitment, bul not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.5 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity., this is normally upon nolificalion of the interest paid or payable by the institution with whom the funds are deposited. 2.6 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. Page 17
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Accounting policies Icontinuedl 2.7 Cash at bank and in hand Cash at bank and in hand includes cash and short-tem) highly liquid investments with a short malurily of three months or less from the date of acquisition or opening of the deposit or similar account. 2.8 Llabllltles and provlslons Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, il is pmbable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be eslimaled reliably. Liabilities are recognised at the amount that the Charity anlicipales il will pay lo 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 rale that reflects the risks specific lo the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.9 Financial instruments The Charity 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. 2.10 Fund a¢counting General funds are unreslricled funds which are available for use al the discretion of the Trustees in furtheran of the general objectives of the Charity and which have not been designated for other purposes. Investment income, gains and losses are allocated lo the appropriate fund. Page 18
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Income from donations and legacies Unrestricte d funds 2025 Total funds 2025 Total funds 2024 Donations Legacies 31,245 36,672 31.245 36,672 31,772 109,022 67,917 67.917 140,794 Income from other trading activities Income from fundraising events Unrestricte d funds 2025 Total funds 2025 Total funds 2024 Campaigns Other 6,110 250 6.110 250 6,360 6.360 Investment income Unrestriete d funds 2025 Total funds 2025 Total funds 2024 Bank interest reiVed 40,026 40,026 57,975 Page 19
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Analysis of expenditure by activities Activities undertaken directly 2025 Grant funding of activities 2025 Support costs 2025 Total funds 2025 Total funds 2024 Direct costs Grants Govemance costs 117,986 117,986 125,262 15.706 109,603 171,343 15,304 125,262 15,706 Totsl 2025 117,986 125,262 15,706 258.954 296,250 Total 2024 109,603 171,343 15,304 296.250 Analysis of direct costs Total funds 2025 Total funds 2024 Management charyes Fundraising costs Staff costs (see note 9} Card transaction charges Data protection Bank charges Postage Miscellaneous costs 59.832 1,855 47.904 61 59,832 439 46,248 62 35 174 35 53 20 2,914 {61 8.131 Totsl 2025 117,986 109,603 Analysis of support costs Total funds 2025 Total funds 2024 Govemance costs 15,706 15,304 Page 20
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Analysis of grants Grants to Individuals 2025 Total funds 2025 Total funds 2024 Grants 125,262 125,262 171,343 Total 2024 171,343 171,343 Net incomel{expenditurel This is ststed after charging.. 2025 2024 Auditor's remuneration - audit Auditor's remuneration - accounts preparation 5,800 1.100 5,300 1,000 Staff costs 2025 2024 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 39,965 3,247 4.692 36,501 3,399 6,348 47,904 46,248 The above employee cost represent recharges by Open SU for an employee who is full time employed by Open SU. Some of the employee's time is spent on OUSET to perfomi financial and administrative a¢livilies for the charity which gels recharged as an expenditure in OUSET. The Charity has no employees other than the Trustees, who did not receive any remuneration {2024 £NILI. No employees eamed over £60k during the year12024.' 01. Page 21
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 10. Debtors 2025 2024 Trade debtors Prepayments and accrued income 2,319 140,529 130,831 130,831 142,848 11. Credltors.. Amounts falllng due wlthln one year 2025 2024 Trade creditors Accruals and deferred income 21.522 39,059 80,255 60,581 80,255 12. Statement of funds Statement of funds - current year Balance at 1 August 2024 Balance at Income Expendlture 31 July 2025 Unrestricted funds Reserves 1,569,075 114,303 1258,9541 1,424,424 Statement of funds - prior year Balance al 1 August 2023 Balance at Income Expenditure 31 July 2024 Unrestricted funds General Funds 1,666,556 198,769 1296.2501 1,569,075 Page 22
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 13. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricte d funds 2025 Total funds 2025 Current assets Creditors due within one year 1,485,005 160.5811 1,485,005 {60,581) Total 1,424,424 1.424,424 Analysis of net assets between funds - prior year Unrestricted funds 2024 Total funds 2024 Current assets Creditors due within one year 1,649,330 180,2551 1,649,330 {80,2551 Total 1,569,075 1,569,075 14. Reconciliation of net movement in funds to net cash flow from operating activities 2025 2024 Net expenditLJre for the year {as per Statement of Financial Activities) 1144,6511 {97,4811 Adjustments for: Decrease in debtors 12,017 119,6741 307,836 56,000 Increaselldecreasel in creditors Net cash provided byl(used inl operating activities 1152.3081 266,355 Page 23
THE OPEN UNIVERSITY STUDENTS EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 15. Analysis of cash and cash equivalents 2025 2024 Cash in hand Fixed term deposit 354,174 1.000.000 356,482 1,150,000 Total cash and cash equlvalents 1.354.174 1,506,482 16. Analysis of changes in net debt At 1 August 2024 Cash flows At 31 July 2025 Cash at bank and in hand 1,506.482 1152,3081 1,354,174 1,506,482 11 $2.3081 1,354,174 17. Related party transactions As described in the Trustees, Report, the majority of TrLJStees of the Open University Students Educational Trust IOUSETI are appointed by virtue of their position within The Open University Student Union (Open SUI and one nomination by the Vice chanlIor of The Open University IOU). During the year administrative services were charged by Open SU, see below for details.. Charges from Open SU Management charge Recharges 2025 2024 £ 49,860 £ 59,832 £ 39,921 £ 2,722 During the year donations were collected by Open SU, see below for details.. Funds from Open SU Webslore donations OUSA Donations 2025 2024 £ 3,213 £ 3,101 £ 25,000 £ 25,000 Al the year end a balance of £24 (2024.. £5.0041 was receivable from Open SU. 18. Controlling party The Trustees consider that there is no ultimate controlling party. Page 24