The trustees present their report and financial statements for the year ended 31 July 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
The trustees have taken cognisance of the Charity Commission for Northern Ireland's guidance on public benefit as defined in the Charities Act (Northern Ireland) 2008. The Ulster University Students' Union's (the Students' Union) objective is the advancement of the education of students at Ulster University for the public benefit by:
promoting the interests and welfare of students at Ulster University during their course of study and representing, supporting and advising students;
being the recognised representative channel between students and Ulster University and any other external bodies; and
providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its students.
2019-20 was a very different year to normal with the second half of the financial year proving challenging due to the impact of coronavirus. Activities where possible were moved online as all staff and most students engaged in home learning/working from mid-March. Trustee board meetings were also moved online and trustees were regularly updated outside of these meetings through the chair and CEO. The election campaigning for the new student officer team had just got under way at this time but candidates rose to the task of online campaigning and elections were successfully executed. The closure of the campuses meant that the commercial services staff were initially furloughed but as the longer-term impact of the virus became clear it was decided to close the units permanently and as such 15 staff were made redundant.
Despite the period of March to July being challenging, the Students’ Union continued to represent the student voice both internally and externally to ensure that members have had effective, accountable representation on issues that affect them. 700 academic representatives were elected, trained and supported and 8 student voice forums were organised. 75 student councillors were elected ensuring that all council seats were filled. Last year’s Council have since reformed the structure to make it stronger in its scrutiny and governance duties. The advice bureau helped 250 students with academic and housing concerns which represented a 30% increase on the previous year.
Access to societies offers social interaction to students and 86% of students had access to a relevant society. 1,707 students were members and 650 society events were held across the campuses during the year. There were 16 new societies created and these communities were an important outlet for students during the initial period of lockdown. Societies have translated to an online offering with many continuing to host meetups and activities digitally ensuring that issues around student wellbeing have been core to their purpose.
The number of students engaged in sport continued to grow as the social sport offering was enhanced through the Get Active program. Members participated in 190 fixtures and competitions with 21 individual wins and 27 podium places in the year. Continuing sponsorship from Randox allowed UUSU Sports to develop and offer new opportunities for students.
The UUSU Enterprise Centre upskilled students through the provision of workshops on the fundamentals of business. 67 students were supported to develop their ideas through the UU Start program and £20,000 was distributed as grants to early stage businesses through the Santander Enterprise fund. 50 students received a leadership qualification through the program delivered by the Enterprise Centre and £100,000 of investment was secured to build a new Innovation and Enterprise hub on the Belfast campus in 2020/21.
Awareness campaigns were organised through the year relating to drugs and alcohol, homelessness, environmental issues and mental health. Environmental issues had been a priority campaign this year and significant progress was made to embed sustainability within the curriculum and teaching staff across Ulster pledged to teach the UN Sustainability Development goals in the classroom for one week. Funding was secured to install hydration stations across all campuses to reduce single use plastic consumption. Student officers attended conferences representing Ulster students and voted on a range of social and educational issues on their behalf. In addition an All-Party Group has been formed with key MLAs to ensure that the voice of students can be translated to politicians and UUSU can lobby on the issues most pertinent to the student body.
There was also significant lobbying of the University on issues core to students around the pandemic, including the relocation of courses and releasing students from accommodation contracts, which was a major concern for many students when lockdown was initially announced. There has been success in representing students where they were released from accommodation contracts, provided additional extensions to deadlines and increasing the quality of online learning though video content. Also, alignment with the national ‘Students Deserve Better’ campaign continues to lobby on issues such as student mental health and how education is funded.
The Student Show podcast was launched for students by students and secured an established listenership of 1,500 and is expected to grow in the coming year. It focused on different issues each week relevant to students and uses students exclusively to provide their experience and guidance on these topics.
Raising of funds
The Union's main source of income is by way of block grant awarded by Ulster University. Commercial services in the form of retail and catering operated until March 2020 when they had to close due to the losses that would be incurred as a result of the government restrictions arising from the Coronavirus. The decision has since been taken not to reopen these units as the current conditions for retail and hospitality remains too unstable.
Governance
Governance of the organisation is of vital importance and is assessed on a regular basis through the review of the Strategic Plan, Risk Register and Financial Memorandum. The Students' Union Student Executive, consisting of seven full time elected Officers and relevant staff, meets every three weeks to discuss Students' Union policy and membership issues. The Senior Management Team meets every 2-3 weeks to review operational matters. The quarterly meetings of the Trustee Board include the review of management accounts, progress of the Strategic Operating Plan, and monitoring of the Risk Register. There are also four sub committees of the Trustee Board which take responsibility for Staffing, Appointments, Management and Audit, risk and compliance.
The Students' Union income for the current year was £2, 332,163 (2019 - £2,391,518) and net income before exceptional pension movements was £ 228,316 (2019 - £253,024) . After accounting for movements in the pension provision the net expenditure for the period was £ 1,165,982 (2019 - net income of £153,927) .
The net deficit of the charity at 31 July 20 20 was £3,868,255 (2019 - £ 2,702,273). The main reason for the deficit is the deficit funding commitment in relation to the Students' Union Superannuation Scheme, which amounted to £ 4,175,800 at 31 July 2020 (2019 - £ 2,992,571). At 31 July 2020, restricted funds were £194,069 (2019 - £138,345) and general unrestricted funds totalled £103,458 (2019 - £131,809).
Designated funds at 31 July 2020 of £10,018 (2019 - £20,144) relate to the balance of funds held in relation to the Unique shop after income and expenditure during the year.
Reserves Policy
Reserves will be established to safeguard activity should funding not be available from the principal funding source. At 31 July 20 20 the Union had free reserves of £61,654 (2019 - £85,992) .
Principal Funding Source
The principal funder is Ulster University through the allocation of block grant funding to the Union.
Risk m anagement
The Trustees have overall responsibility for ensuring that the Union has in place an appropriate system of controls, financial and otherwise, to provide reasonable assurance that:
the Union is operating efficiently and effectively;
its assets are safeguarded against unauthorised use or disposition;
proper records are maintained, and financial information used within the organisation or for publication is reliable;
it complies with relevant laws and regulations; and
that the systems of financial control are designed to provide reasonable, but not absolute assurance against material misstatement or loss.
The major risks, to which the Union is exposed, are set out in the Risk register and systems have been established to mitigate those risks.
Plans for future periods
The Union will continue to represent students both through academic issues and the provision of social opportunities to meet other students through engagement in sport and societies. It is hoped that during the 2020/21 year that restrictions pertaining to the pandemic will be relaxed and more face to face activity can once more take place. It is also envisaged that some of the learning around online and digital activity can be retained and enhanced and shall work to compliment the pathway forward around student engagement on this front.
The academic year 2020/21 will see the move to the Belfast campus and the Union will continue to work with the University to ensure a smooth transition for staff and students. There is also a piece of work to realise the potential of the new campus being within a key area of the city centre and the opportunities around partnership and activities that this brings.
The Sports review commissioned by the University in 2019 is ongoing and the Students’ Union will continue to be involved in both a steering and consultative capacity. The outcomes and recommendations as and if agreed by the Students’ Union will need to be realised in the forthcoming period and implemented as may be appropriate. Work will also continue with the University to explore options around commercial operations on campus and how to best facilitate the needs of students.
There had been plans to implement an ambitious new five-year strategic plan but given the current period of uncertainty and lack of funding opportunities this has been deferred and an interim plan is in place. This interim strategic direction aims to take UUSU through the pandemic period and out of the other side. The detail and focus of the plan have altered slightly but remain focused on longer term growth. It focuses on an initial period of reset which allows the organisation to take stock of current performance and potential developments, and then eases into a repurposing and regenerating period. The aspiration is that this will set UUSU up for additional growth in the next strategic cycle in three years’ time.
In lieu of the pandemic UUSU will be reviewing, updating and establishing full Business Continuity planning into its work over the next period, including the learning developed over the last 12 months.
The charity is a company limited by guarantee and does not have a share capital. It was incorporated on 15 June 2017 and is governed by its Memorandum and Articles of Association dated 15 June 2017. The members of the charity for the purposes of company law are the trustees and the liability of each member is limited to an amount not exceeding £1.
Prior to 1 September 2017 the activities of the Students' Union were carried out through an unincorporated entity and were governed by the Constitution of the unincorporated entity. On 1 September 2017 the assets and liabilities of the unincorporated entity were transferred to the charity and it commenced its activities on that date. The total amount transferred was net liabilities of £2,566,431.
T he Board of Trustees is responsible for the management and administration of the Union and may exercise all the powers of the Union. The application to become a registered charity was approved by the Charity Commission for Northern Ireland on 12 April 2019. The charity number is NIC107053.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The trustees are made up of the following persons:
Four student officer trustees agreed by the Student Executive
Two student trustees appointed by application and selection process
Five external trustees appointed by application and selection process.
Student Officer trustees can serve a maximum of three years, student trustees can serve a maximum of two terms, each term lasting two years and external trustees may serve a maximum of two terms; each term being a maximum of four years in duration.
The Chief Executive, Mr D Longstaff, carries out the day to day management of the Union. The trustees meet on a quarterly basis. There are other committees in place to manage specific areas of the organisation. Procedures have been put in place for the induction and training of trustees and the Union ensures trustees are aware of their responsibilities on Corporate Governance.
Relationship with related parties
The relationship between Ulster University and the Union is established in an Ordinance of the University's Governing Documents and the Union receives a block grant from the University, by agreement with the University on an annual basis. The Union occupies commercial space owned by the University for which it pays an annual rent. There is also non-monetary support which is intrinsic to the relationship between the University and the Union in relation to the provision of office space.
Although the Union continues to generate supplementary funding from various mutual trading activities, it is dependent on the University's financial support. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future.
The Ulster University Students' Union Club bar is a separate legal entity from the Students' Union but are overseen by the same management structure.
The trustees, who are also the directors of Ulster University Students' Union for the purpose of company law, are responsible for preparing the Trustees ' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2015 (FRS 102) ;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to 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 operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charit able company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charit able company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
The trustees ' r eport was approved by the Board of Trustees.
Opinion
We have audited the financial statements of Ulster University Students' Union (the ‘charity’) for the year ended 31 July 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' Report, which includes the d irectors’ r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the d irectors’ r eport included within the trustees' r eport has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors’ r eport included within the trustees' r eport.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; 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; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees' r eport and from the requirement to prepare a s trategic r eport.
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Student Enterprise
Exceptional movement in pension provision
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Ulster University Students' Union is a private company limited by guarantee incorporated in Northern Ireland. The registered office is Shore Road, Newtownabbey, Co Antrim, BT37 0QB. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
The financial statements have been prepared in accordance with the charity's Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
These financial statements have been prepared on a going concern basis, notwithstanding the fact that the charity had a net deficit of £ 3,868,255 at the balance sheet date (2019 - £2,702,273) . Before accounting for movements in the pension provision the charity realised a surplus of £ 228,316 (2019 - £253,024) in the year , and the deficit on the balance sheet is due to the pension deficit liability in relation to the Students' Union Superannuation Scheme. The liability in relation to the pension scheme at 31 July 20 20 was £ 4,175,800 (2019 - £2,992,571) . Further details of the scheme are given in note 17 .
The Union continues to operate within its financing facilities and continues to have the support of Ulster University. On this basis the trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Trading income represents net sales to customers and excludes Value Added Tax. Trading income is recognised upon delivery of the goods and services to the customer.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The Union participates in the Students' Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS 102, in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year.
Contributions are also made to two defined contribution schemes being NUSPs and NEST.
Contributions are recognised in profit or loss in the period to which they relate as there is insufficient information available to use defined benefit accounting. A liability is recognised for contributions arising from an agreement with the multi-employer plan that determines how the Union will fund a deficit. Contributions are discounted when they are not expected to be settled wholly within 12 months of the period end.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The trustees regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.
The pension scheme liability is in relation to the contributions payable that have arisen from an agreement with a multi-employer plan to fund a deficit and is based on certain assumptions as detailed in n ote 17.
Ulster University block grant
Student Enterprise
Restricted Funds
Restricted Funds
Fundraising income
Charity trading income
Unique Art Shop commission
Students' Union
Students' Union
NUS and USI fees
Membership services
Sports unions
Societies
Repairs, renewals and cleaning
Insurance
Postage, printing, stationery and telephone
Legal, consultancy and stocktaking fees
Motor and travelling expenses
Bank charges
Staff training and recruitment
Marketing expense
Student enterprise
Miscellaneous costs
Bad debt
Governance costs includes payments to the auditors of £ 5,335 ( 2019 - £ 5,754 ) for audit fees.
None of the trustees (or any persons connected with them) received any remuneration for their role as a trustee from the charity during the year. See Note 11 for details of remuneration payable to student officers who were also trustees. One trustee received reimbursement of expenses totalling £93 (2019 - £41).
The average monthly number of employees during the year was:
Remuneration to student officers who were also trustees was £76,512 (2019 - £ 76,354) . This remuneration was payable in respect of their role as Student Officers, which are elected positions, and was paid in accordance with the charitable company's articles of association. None of the trustees are paid for serving on the Board.
Exceptional movement in pension provision
Unwinding of the discount factor (interest expense)
Remeasurements - impact of any change in assumptions
See note 17 for further information in relation to retirement benefit schemes.
Defined contribution schemes
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
The Union participates in the Students' Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students' unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a "final salary" basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual.
The most recent valuation of the Scheme available was carried out as at 30 June 201 9 and showed that the market value of the Scheme's assets was £1 19 , 1 00,000 with these assets representing 46 % of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £1 40 , 9 00,000.
The assumptions which have the most significant effect upon the results of the valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions.
The following assumptions applied at 30 June 201 9 :
The investment return would be 4.3% per annum before retirement and 2.3% per annum after retirement.
Pensions accruing on the CARE basis would revalue at 3.2% per annum.
Present and future pensions would increase at rates specified by Scheme rules with appropriate assumptions where these are dependent on inflation.
The 201 9 Valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 1 6 years and will increase by at least 5% each year. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 20 20. Surpluses or deficits which arise at future valuations will also impact on the Union's future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme's levy to the Pension Protection Fund.
Amounts recognised in the profit and loss account:
The amounts included in the balance sheet arising from the charity's obligations in respect of defined benefit plans are as follows:
Movements in the present value of defined benefit obligations:
The total contributions paid into the Scheme by the Union in respect of eligible employees for the period ended 31 July 20 20 amounted to £ 211,069 (2019 - £203,529) but this includes an additional proportion of contributions in respect of future accrual as well as deficit contributions. There was also £ 49,294 paid into defined contribution schemes (2019 - £37,488).
Transfers of £211,069 from the general fund to the pension reserve represents contributions to the defined benefit pension scheme for the year ended 31 July 2020.
Unrestricted funds
Restricted funds
Unrestricted funds
General funds
This fund is expendable at the discretion of the Trustees for the general purposes of the charity. Reserves will be established to safeguard activity should funding not be available from the principal funding source.
Pension reserve
The pension reserve represents contributions payable under an agreement with the Students' Union Superannuation Scheme to fund prior year deficits.
Designated funds
Surpluses generated through commission earned from sales in the Unique Art Shop have been set aside as a designated fund. At 31 July 20 20 the total amount of such funds was £ 10,018 and the use of these funds will be decided at a future date.
Restricted funds
Sports Unions and Societies F undraising
These funds relate to income generated through the fundraising activities of Sports Unions and Societies and can only be used by the Sports Union or Society that raised the relevant funds. Sports Union funding related to 70 clubs across 3 campuses and Societies funding related to 90 societies across 4 campuses.
Student Enterprise
This fund relates to income received for Student Enterprise activity.
Hardship fund
These funds are available to support students in financial hardship.
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.
Following the year end the University of Ulster Students' Union Club (Coleraine) has been wound up and the Union will provide support to ensure all financial liabilities can be discharged.
During the year the Union was engaged in legal proceedings for a personal injury case which remains ongoing. At 31 July 2020 the trustees are unable to determine the amount that may become payable.
The remuneration of key management personnel is as follows.
The Union is financially dependent on Ulster University for funding and is therefore regarded as a related p arty. It received £1, 670,000 (2019 - £1,613,000) as a block grant in the year . Rent of £ 16,972 (2019 - £20,468) was paid to the University for the use of premises for commercial purposes. At the year end the Union had a trade debtor balance of £ 55,535 (2019 - £48,330) owed by the University and a trade creditor balance of £ 789 (2019 - £15,412) owed to Ulster University.
University of Ulster Students' Union Club (Coleraine) (the Club) is regarded as a related party as defined by FRS 102, section 33 "Related Party Disclosures".
The Club operates a licensed bar at the Coleraine campus. The financial statements of the club are reported independently of UUSU financial statements.
The amount due from the Club at 31 July 20 20 was £ 15,995 (2019 - £5,197). A bad debt provision for this amount has been recognised at 31 July 2020, due to the Club's decision to cease trading after the year end.
The charity had no debt during the year.