ABERYSTWYTH UNIVERSITY STUDENTS' UNION Accounts.pdf · · 2016-01-20charity number: 1150576...

Charity number: 1150576

ABERYSTWYTH UNIVERSITY STUDENTS' UNION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015


CONTENTS

Page

Reference and administrative details of the charity , its trustees and advisers

1 - 2

Trustees' report

3 - 9

Independent auditor's report

10 - 11

Consolidated statement of financial activities

12

Consolidated balance sheet

13

Charity balance sheet

14

Notes to the financial statements

15 - 28


REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY , ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED 30 JUNE 2015

Trustees Evan Elfyn Jones, External Trustee (28/06/13 , resigned 1 August 2014)Estelle Hart, External Trustee (appointed 1 January 2014)Peter Curran, External Trustee (appointed 16 January 2015)Lewis Donnelly, President3

Hanna Merrigan, UMCA (Undeb Myfyrwyr Cymraeg Aberystwyth) & Welsh AffairsOfficer3

Kelly Keat, Activities Officer3

Will Atkinson, Student Support Officer2

Lauren Marks, Education Officer3

Joshua James, Student Trustee4

Christopher Lloyd Jones, Student Trustee4

Shaun Bailey, Student Trustee5

Sam Bache, Student Trustee5

Susan Parnell (appointed 12 October 2015)Alastair Wager (appointed 12 October 2015)

2 Sabbatical Officer Trustee - these officers have been in post for the period 1 July 2014 to 30 June 2015.3 Sabbatical Officer Trustee - these officers have been in post for the period 1 July 2015 to the financialstatements approval date.4 for the period 1 July 2013 to 30 October 2014.5 for the period 1 October 2014 to the financial statements approval date.

Charity registered number

1150576

Principal office

The UnionPenglaisAberystwythCeredigionSY23 3DX

Senior management team

John Glasby, Chief Executive until 25 September 2015Daryl Ormerod, Interim Chief Executive OfficerAndrew Morwood, Membership Services Manager until 31 July 2015Jamie Barker, Marketing and Communications Manager until 30 November 2014Eleri Roberts, Marketing and Communications Manager from 1 December 2014Philip Hughes, Food and Beverage ManagerAlison Salter, Retail ManagerCatrin Hopkins, Finance Officer

In addition to the work of the sabbatical officer trustees' work the Trustees delegate the day to day managementof the charity to the Chief Executive and the Senior Management Team.

Page 1


REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY , ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED 30 JUNE 2015

Administrative details (continued)

Independent auditor

Crowe Clark Whitehill LLPStatutory AuditorBlack Country HouseRounds Green RoadOldburyWest MidlandsB69 2DG

Bankers

HSBC Bank PlcPO Box 1219 Great Darkgate StreetAberystwythCeredigionSY23 1DH

Page 2


TRUSTEES' REPORT


The trustees have pleasure in presenting their annual report and consolidated financial statement for the yearended 30 June 2015.

Structure, governance and management The Aberystwyth University Students’ Union, for the period ended 30 June 2015, was an unincorporatedassociation with a wholly-owned trading subsidiary, Masnachu AUGS Trading Ltd, (“Company”) and is governedby the Union’s constitution dated 26th June 2012. The company’s share-holding, which is held in trust for theUnion, is registered to the President. The trading company is a registered company with Companies House.The Union applied for and receive Charitable status in January 2013 under the name Aberystwyth UniversityStudents’ Union (AUSU). There is no requirement for the consolidated accounts under review in this report to beaudited. However, it is the Union’s choosing, for the benefit of its members, to have its accounts audited and toprepare annual consolidated financial statements which are in accordance with the Union’s constitution. The Aberystwyth University Students’ Union vision statement is “Setting the standard in Wales for the studentexperience” Its mission statement is; ‘To enhance the Aberystwyth University student experience throughrepresentation, ensuring the highest standard in education provision, encouraging participation, supportingdevelopment and providing quality services.’

a) ConstitutionThe Union’s principal governing document is its Constitution, agreed by the members in a cross campusreferendum and also ratified by the University’s Charter Committee, Senate and Council. Copies of theConstitution are available from www.abersu.co.uk

b) TrusteesThe board for 2014/15 compromised of 10 members; 5 elected sabbatical officer Trustees, 2 elected studenttrustees and 3 trustees selected external trustees. The term of office is one year for elected trustees and 4years for external trustees.

Officers are required to take a sabbatical year away from their studies and are remunerated by the Union duringthis period. All other trustees are volunteers and able to claim reasonable expenses to undertake their duties. Office & Student Trustees are elected annually in accordance with the Unions election rules (by-law 9) ExternalTrustees are appointed in accordance with the Union’s constitution (clause 52-54)

Trustee Board meets 5 times a year. All trustees are provided with copies of the Charity Commission’sGuidance to Trustees and given an introduction to the activities of the Union during their handover or by theBoard. Trustees are provided with training as and when required, based on an assessment of their existing skillset. This has been provided by NUS in the past.

c) StaffingThe Union employs a number of non-student permanent staff to ensure the effective management of its manyactivities and to implement the policy decisions for the trustees. Here is a delegated authority, through the ChiefExecutive, for operational decision making and accountability within the departments of the Union, inaccordance with its organizational structure.

The Union currently employs 20 full time members of staff and 108 part-time members of staff.

Page 3


TRUSTEES' REPORT (continued)


d) Relationship with Related PartiesThe Union receives a block grant from Aberystwyth University (‘the University’) and part-occupies a buildingowned by the University. The University also provides portering services, payroll and accounting servicesrelating to non-student staff. This support is intrinsic to the relationship between the University and the Union.Although the Union runs various mutual trading activities, it is dependent on the University’s financial support.There is no reason to believe that this support will not continue for the foreseeable future. The Universityrequires notification of any changes in the governance of the Union and regular reports on the Union’s activities,management and financial situation. These are given to the University at various committees such as Financeand Strategy Committee and Council. Sabbatical Officers and Union staff sit on various university committees.

e) Risk management The Trustee board and Senior Management team have examined the major strategic, business and operationalrisks faced by the Union. A risk register is reviewed and updated annually. Where appropriate, systems orprocedures have been established to mitigate the risks that the organisation faces. Budgetary and internalcontrol risks are minimized by the implementation of procedures for authorisation of all transactions andprojects. Procedures are in place to ensure compliance with health and safety of staff, volunteers andparticipants on all activities organised by the Union. These procedures are periodically reviewed to ensure thatthey continue to meet the needs of the charity. The Trustee board is made aware of any changes in the risk register and acts accordingly.

f) Committees In addition to the Trustee Board the following committees operate within the Union:• Appointments and Governance Committee• Finance, Audit and Risk Committee• Employment and Remuneration Committee

Objectives and Activities The principal objectives of the Union are to benefit its current and future members and staff by advancing theireducation, promoting their welfare, providing cultural, sporting and social activities, developing their skills andawareness, providing representation and high quality services.

The Aberystwyth University Students’ Union vision statement incorporates the public benefit by providingsporting, social, cultural and recreational opportunities and facilities for students to further their educationalexperience at Aberystwyth University.

Page 4




Achievements and performance In relation to enhancing employability and transferable skill development in the year ended 30 June 2015, a totalof 44,530 working hours were accrued by 108 registered students, working to deliver the Union’s entertainment,retail and change to Translation services, this averaged 412 hours per student over the year.

Our Strategic plan for 2013-2016 provides:

Our Mission:

To engage with, represent, support and develop our students in order to enhance their time at university andenable them to achieve their full potential as Aber graduates.

Our Vision:

Creating an exceptional student experience and lasting legacy, enabled by strong partnerships with our keystakeholders.

Our Values:

Student letDiverseBilingualAmbitiousOpen & HonestFunSafe

Achievements during the 2014-2015 academic year:

VOICE

Representing you and giving you a say.

Election turnout: In February 2015, AberSU’s Spring Elections achieved the highest election turnout in Wales at 29% (2237votes). The target for 2015 was 27% turnout therefore this was a big achievement.

Academic representatives:282 Academic representatives were recruited, 149 of these representatives attended the training sessionswhich were delivered over a total of 22 hours.

SLTA nominations:The annual Student Led Teaching Awards were held in April this year with a record number of nominationsreceived (1133). 158% increase in comparison to 2014’s 439 nominations.

Officer projects:This year, a traffic light system was introduced to the Student Officer pages of the AberSU website to clearlycommunicate progress in terms of plans & campaigns.

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DIALOGUE

Listening to you and keeping you informed.

You Said We Did:The Marketing department launched a You Said, We Did campaign on social media channels in January 2015in order to communicate any changes made based on students’ feedback or requests. A dedicated webpagewas later introduced with all the information in one place.

Increased presence on digital channels & social media:This year, the Marketing & Communications department has focussed on increasing AberSU’s presence ondigital channels & social media in various ways from introducing social media specific campaigns e.g.#PerfectNightIn & #YouSaidWeDid to concentrating on increasing levels of engagement on social mediachannels, mainly Instagram and Snapchat.

Big Ask survey:In February 2015 the Union launched the Big Ask Survey which was a chance for Aberystwyth Students to behonest about what they think of the Union and tell us what they wanted. We received 482 responses.

EQUALITY

Ensuring all members enjoy the same chances to participate.

Introduction of Zones:The 2014-2015 Officer team set up new forums or ‘zones’ for part time officers to raise campaign topics,common concerns & create stances on certain themes.

FACILITIES

Providing you with modern, up-to-date social, learning and support spaces.

Llanbadarn campus:CWTCH Padarn opened its doors in February 2015; the newest addition to the SU family, offering a relaxing,social lounge area for students studying at Llanbadarn campus to enjoy between lectures.

NUS Wales Enterprise award:AberSU won the NUS Wales Enterprise award for Stone Willy’s delivery service during the NUS Wales awardsheld at the start of the year.

SUPPORT

Supporting you at all levels during your time with us.

Online Advice section & booking form:The Advice Centre’s webpages have been updated to provide an online booking forms for students to accessthe free, independent, friendly advice service offered by AberSU.

Page 6




OPPORTUNITIES

Offering you the best range of societies, sports and volunteering opportunities.

Investing in volunteers award:AberSU received the Investing in Volunteers award in June 2015 for the hard work completed by the Activitiesstaff & volunteers.

Clubs & societies:The number of sports clubs available for students to join this year were 56 clubs (with a total of 2,300members), whereas the number of societies available were 96 (with a total of 1,795 members)

OTHER ACHIEVEMENTS

Advice Centre statsThis year the Student Advice Centre saw 193 students regarding a range of issues, mainly relating to academic,housing and student finance.

VolunteeringAberSU continues to support volunteering activities and this year, a total number of 1,100 students spent 45,500hours volunteering in 2014-2015. A grand total of £11,823 was also raised for charity during this year. Financial review The results for the year are shown in the attached consolidated financial statements. The Union’s gross incomefrom all sources this year totalled £2,738,871 (2014: £2,781,599). Total expenditure of £2,856,901 (2014:£2,794,657) left an operating deficit of £118,030 (2014: operating deficit £13,058).

All trading from 1 July 2011 has taken place within the trading subsidiary Masnachu AUGS Trading Ltd. Tradingconditions have remained challenging, with a continued decline in night-time expenditure within licensedpremises. Despite continued competition from the town’s night-time entertainment providers, it is possible thekey factors behind this decline are the availability of cheaper off-license alcohol at supermarkets aligned with anoverall shift in student culture including increased numbers of overseas and post-graduate students. Night-timebar and entertainment income has historically provided a large proportion of the Union's trading income but hasbeen declining in recent years. This has been reviewed for 2015/16.

The Union continues to receive valuable support from Aberystwyth University and the block grant in 2014/15remains at £650,000 (2013/14: £599,795).

Page 7




a. Reserves policy The Aberystwyth University Students’ Union ’ reserve policy was agreed at the trustee board meeting in January2012.In order to minimise the risk to the organisation, which is dependent on a sole source of funding from theUniversity supplemented by limited commercial profits, the trustees agreed the following reserves policy:• to maintain sufficient operating reserves to meet the equivalent of three months overheads, in the eventof reduced funding. This would be £100,000.• reserves surpluses to the agreed operating reserve, should be used for strategic purposes of the Union indeveloping its membership services and raising its standards.• reserves can never be allowed to be reduced below £50,000 without the written permission of theUniversity’s Finance and General Purposes Committee.• at any time this policy can be reviewed should the chair of the trustees receive official notice from eithertwo of the trustee board or three members of the Union’s General and Finance Committee.• the policy should be reviewed every three years.As part of the Unrestricted Funds the Development fund had been earmarked by the trustees for specificpurposes and was shown as a designated fund – however as an unrestricted fund it can be released by theUnion. The balance of this fund was transferred to the general reserve fund in 2011/12 following the introductionof the new Reserve Policy set out above.The Union has developed a financial sustainability plan approved by the University’s Finance and GeneralPurposes Committee to improve profitability and the reserves position going forward. The financial sustainabilityplan focuses on four key areas being cost savings, introducing new revenue streams, better management andfinancial control and University support. Plans for the future a. FUTURE DEVELOPMENTS During the next academic year, AberSU plans to work on the following projects:• Design & implement a new strategy based on membership insight, which will shape plans further.• Reach an agreement with the University to support AberSU as a going concern.• Outsourcing of event to an external event provider.• Work with a sports kit provider to introduce official Team Aber leisurewear and sports kits.• Introduce a dedicated Freshers website containing all information relevant to new students.

Page 8




TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice). The law applicable to charities in England & Wales requires the Trustees to prepare financial statements foreach financial year which give a true and fair view of the state of affairs of the charity and the group and of theincoming resources and application of resources of the group for that period. In preparing these financialstatements, the Trustees are required to: • select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP; • make judgments and accounting 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

group will continue in operation.

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain thecharity and the group's transactions and disclose with reasonable accuracy at any time the financial position ofthe group and enable them to ensure that the financial statements comply with the Charities Act 2011, theCharity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are alsoresponsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps forthe prevention and detection of fraud and other irregularities. This report was approved by the Trustees on 26 November 2015 and signed on their behalf by:

Lewis Donnelly , President

Page 9


INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ABE RYSTWYTH UNIVERSITY STUDENTS'

UNION

We have audited the financial statements of Aberystwyth University Students' Union for the year ended 30 June2015 set out on pages 12 to 28. The financial reporting framework that has been applied in their preparation isapplicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United KingdomGenerally Accepted Accounting Practice applicable to Smaller Entities). This report is made solely to the charity's trustees, as a body, in accordance with section 151 of the CharitiesAct 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that wemight state to the charity's trustees those matters we are required to state to them in an Auditor's report and forno other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyoneother than the charity and its trustees, as a body, for our audit work, for this report, or for the opinion we haveformed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for thepreparation of financial statements which give a true and fair view. We have been appointed as auditor under section 151 of the Charities Act 2011 and report to you inaccordance with regulations made under section 154 of that Act. Our responsibility is to audit and express anopinion on the financial statements in accordance with applicable law and International Standards on Auditing(UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standardsfor Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether causedby fraud or error. This includes an assessment of: whether the accounting policies are appropriate to thegroup's and the parent charity's circumstances and have been consistently applied and adequately disclosed;the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation ofthe financial statements. In addition, we read all the financial and non-financial information in the Trustees'report to identify material inconsistencies with the audited financial statements and to identify any informationthat is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us inthe course of performing the audit. If we become aware of any apparent material misstatements orinconsistencies we consider the implications for our report.

OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: • give a true and fair view of the state of the group's and the parent charity's affairs as at 30 June 2015 and

of the group's incoming resources and application of resources for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice applicable to Smaller Entities; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Page 10


INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ABE RYSTWYTH UNIVERSITY STUDENTS'

UNION

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEP TION We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to reportto you if, in our opinion: • the information given in the Trustees' report is inconsistent in any material respect with the financial

statements; or • sufficient accounting records; or • the parent charity 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.

Crowe Clark Whitehill LLP Statutory Auditor Black Country HouseRounds Green RoadOldburyWest MidlandsB69 2DGDate:

Crowe Clark Whitehill LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 11


CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating Income and Expenditure Account)FOR THE YEAR ENDED 30 JUNE 2015

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

Note2015

£2015

£2015

£2014

£

INCOMING RESOURCES

Incoming resources from generated funds: Voluntary income 2 985,790 - 985,790 943,254 Activities for generating funds 937,540 - 937,540 961,350 Investment income 4 789 - 789 1,029Incoming resources from charitable activities 5 563,959 250,793 814,752 771,966Other incoming resources 6 - - - 104,000

TOTAL INCOMING RESOURCES 2,488,078 250,793 2,738,871 2,781,599

RESOURCES EXPENDED

Costs of generating funds: Masnachu AUGS Trading Ltd expenses 968,491 - 968,491 999,825Charitable activities 1,629,718 243,692 1,873,410 1,775,294Governance costs 10 15,000 - 15,000 19,538

TOTAL RESOURCES EXPENDED 9 2,613,209 243,692 2,856,901 2,794,657

MOVEMENT IN TOTAL FUNDS FOR THEYEAR - NET INCOME/(EXPENDITURE)FOR THE YEAR (125,131) 7,101 (118,030) (13,058)

Total funds at 1 July 2014 (29,184) 112,148 82,964 96,022

TOTAL FUNDS AT 30 JUNE 2015 (154,315) 119,249 (35,066) 82,964

The notes on pages 15 to 28 form part of these financial statements.

Page 12


CONSOLIDATED BALANCE SHEETAS AT 30 JUNE 2015

2015 2014Note £ £ £ £

FIXED ASSETS Tangible assets 14 135,375 188,571 CURRENT ASSETS Stocks 16 80,979 79,143 Debtors 17 151,458 25,696 Cash at bank and in hand 366,618 532,718

599,055 637,557 CREDITORS: amounts falling due within

one year 18 (769,496) (743,164) NET CURRENT LIABILITIES (170,441) (105,607) NET (LIABILITIES)/ASSETS (35,066) 82,964

CHARITY FUNDS Restricted funds 19 119,249 112,148 Unrestricted funds 19 (154,315) (29,184)

TOTAL (DEFICIT)/FUNDS

(35,066) 82,964

The financial statements were approved by the Trustees on 26 November 2015 and signed on their behalf, by:



Page 13


CHARITY BALANCE SHEETAS AT 30 JUNE 2015

2015 2014Note £ £ £ £

FIXED ASSETS Tangible assets 14 81,535 113,885 Investments

15 1 1

81,536 113,886 CURRENT ASSETS Stocks 16 9,183 4,377 Debtors 17 143,750 114,991 Cash at bank and in hand 322,912 493,496

475,845 612,864 CREDITORS: amounts falling due within

one year 18 (523,021) (605,311) NET CURRENT (LIABILITIES)/ASSETS (47,176) 7,553

NET ASSETS 34,360 121,439

CHARITY FUNDS Restricted funds 19 119,249 112,148 Unrestricted funds 19 (84,889) 9,291

TOTAL FUNDS 34,360 121,439

The financial statements were approved by the Trustees on 26 November 2015 and signed on their behalf, by:



Page 14


NOTES TO THE FINANCIAL STATEMENTS


1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with theexception of investments which are included at market value, and in accordance with the FinancialReporting Standard for Smaller Entities (effective April 2008). The financial statements have beenprepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting andReporting by Charities' published in March 2005 and applicable accounting standards.

The Statement of financial activities (SOFA) and Balance sheet consolidate the financial statementsof the charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a lineby line basis.

No separate SOFA has been presented for the charity alone as permitted by paragraph 397 of theSORP.

1.2 Basis of consolidation

The financial statements consolidate the accounts of Aberystwyth University Students' Union and allof its subsidiary undertakings ('subsidiaries').

The income and expenditure account for the year dealt with in the accounts of the charity was£35,079 Loss (2014 - £25,417 profit).

1.3 Going concernThe Students' Union is dependent on a grant provided to it by Aberystwyth University, the StudentUnion's supporting institution. Aberystwyth University has provided the Students' Union with anundertaking that for at least 12 months from the date of approval of these financial statements, it willcontinue to make available financial support to the Student Union as is necessary to enable it to meetits obligations as they fall due. This should enable the Students' Union to continue in operationalexistence for the foreseeable future by meeting its liabilities as they fall due for payment. As with anyorganisation placing reliance on other entities for financial support it is assumed this will continue andat the date of approval of these financial statements the Students' Union has no reason to believethat it will not do so.

Based on these factors the trustees of the Students' Union believe that it remains appropriate toprepare the financial statements on a going concern basis.

1.4 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees infurtherance of the general objectives of the charity and which have not been designated for otherpurposes.

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

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

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1. ACCOUNTING POLICIES (continued)

1.5 Incoming resources

All incoming resources are included in the Statement of financial activities when the charity hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability. For legacies, entitlement is the earlier of the charity being notified of an impendingdistribution or the legacy being received.

Donated services or facilities, which comprise donated services, are included in income at avaluation which is an estimate of the financial cost borne by the donor where such a cost isquantifiable and measurable. No income is recognised where there is no financial cost borne by athird party.

1.6 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categoriesthat aggregate all costs for allocation to activities. Where costs cannot be directly attributed toparticular activities they have been allocated on a basis consistent with the use of the resources.

Governance costs are those incurred in connection with administration of the charity andcompliance with constitutional and statutory requirements.

1.7 Donated facilities & services

The Students Union occupies its building on a rent free basis from Aberystwyth University. The valueof this donation has been estimated at a comparable market rent in the area. In addition theStudents Union received portering services, payroll and accounting services from the University forwhich no fee is charged, the value of this donation has been estimated at the costs of time spent.The Students Union also created 4 new volunteer roles which have been included as a donatedservice.

1.8 Tangible fixed assets and depreciation

All assets costing more than £250 are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at ratescalculated to write off the cost of fixed assets, less their estimated residual value, over theirexpected useful lives on the following bases:

Building development - 2-15 yearsEquipment - 2-10 years

1.9 Investments

Investments are stated at cost.

(i) Subsidiary undertakingsInvestments in subsidiaries are valued at cost less provision for impairment.

1.10 Operating leases

Rentals under operating leases are charged to the Statement of financial activities on a straight linebasis over the lease term.

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1. ACCOUNTING POLICIES (continued)

1.11 Stocks

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

1.12 Pensions

The charity participates in the Aberystwyth University Pension and Assurance Scheme (AUPAS), adefined benefits pension scheme. The scheme is a multi-employer scheme where it is not possible,in the normal course of events, to identify on a consistent and reasonable basis, the share ofunderlying assets and liabilities belonging to individual participating employers. Therefore, asrequired by FRS17 'Retirement benefits', the charity accounts for this scheme as if it was a definedcontribution scheme. The amount charged to the Consolidated statement of financial activitiesrepresents contributions payable to the scheme in respect of the accounting period.

1.13 Taxation

No provision is made in these accounts for Corporation Tax since it is the Student Unions intentionto use all of its income for charitable purposes. The charity is registered for value added taxpurposes and uses a partial exemption method.

2. VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

University Block Grant 650,000 - 650,000 599,795Donated Facilities and services 266,057 - 266,057 269,804Income from Sporty card sales 69,733 - 69,733 68,655Income from Alumni Fund - - - 5,000

Voluntary income 985,790 - 985,790 943,254

The Students Union occupies its building on a rent free basis from Aberystwyth University. The value ofthis donation has been estimated at a comparable market rent in the area, £170,000. In addition theStudents Union received payroll and accounting services from the University for which no fee is charged,the value of this donation has been estimated at the costs of time spent, £10,000. The Students Unionhad 4 new volunteer roles in 2013 which have been included as a donated service, £20,000, and £66,057(2014: £69,804) for the supply of portering staff.

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3. SUBSIDIARY TRADING COMPANY

Aberystwyth University Students Union owns 100% of the issued ordinary share capital of it's subsidiary,Masnachu AUGS Trading Limited. The subsidiary participates in trading activities relating to the Union.It's taxable profits are donated to the Union. A summary of the subsidiary's results is shown below:

Profit and loss account

2015 £

2014 £

Turnover 937,539 961,349Cost of sales (564,606) (617,910)

Gross profit

372,933

343,439Administrative expenses (403,885) (381,915)Interest received 1 1

Retained in subsidiary (30,951) (38,475)

The net liabilities of Masnachu AUGS Trading Limited at 30 June 2015 amounted to £69,425 (2014 -£38,474).

The accounts of Masnachu AUGS Trading Limited are unaudited as they are entitled to such anexemption under the provisions of section 479 of the Companies Act 2006 relating to small companies.

4. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Bank interest 789 - 789 1,029

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5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Student advice 200 - 200 2,655Democratic services 11,471 - 11,471 43,612NUS cards 31,045 - 31,045 31,492Communications and societies 7,724 - 7,724 -Sports and leisure 64,014 7,000 71,014 66,239Hire and rental income 32,181 - 32,181 36,030Other income 41,423 - 41,423 53,819Catering and gaming machines 375,901 - 375,901 280,605Clubs and societies income - 243,793 243,793 257,514

563,959 250,793 814,752 771,966

6. OTHER INCOMING RESOURCES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Write off of University loan - - - 104,000

During the year Aberystwyth University wrote off £Nil (2014: £104,000) of the loan which it had previouslyprovided the Students Union with.

7. EXPENDITURE BY CHARITABLE ACTIVITY

SUMMARY BY FUND TYPE

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Student advice 280,133 - 280,133 264,271Democratic services 191,029 - 191,029 241,004NUS cards 24,086 - 24,086 31,276Communications and societies 304,529 - 304,529 180,834Sports and leisure 347,090 6,228 353,318 372,092Catering and gaming machines 482,851 - 482,851 431,218Clubs and societies - 237,464 237,464 254,599

1,629,718 243,692 1,873,410 1,775,294

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8. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES

Activitiesundertaken

directlySupport

costs Total Total2015

£2015

£2015

£2014

£

Student advice 108,795 171,338 280,133 264,271Democratic services 60,730 130,299 191,029 241,004NUS cards 24,086 - 24,086 31,276Communications and societies 3,565 300,964 304,529 180,834Sports and leisure 179,152 174,166 353,318 372,092Catering and gaming machines 374,649 108,202 482,851 431,218Clubs and societies 237,464 - 237,464 254,599

Total 988,441 884,969 1,873,410 1,775,294

Support costs consist of:

2015 £

2014 £

Management and administration 515,250 511,182Building services 74,503 67,989Mini buses 29,159 27,146Donated facilities and services 266,057 269,804

884,969 876,121

The support costs are allocated between charitable activities on the following basis:Management and administration by the number of employeesBuilding services by usageMini buses by usageIrrecoverable VAT by expenditureDonated facilities and services by expenditure

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9. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff costs Depreciation Other costs Total Total2015

£2015

£2015

£2015

£2014

£

Masnachu AUGS TradingLtd expenses 296,177 26,153 646,161 968,491 999,825

Costs of generating funds 296,177 26,153 646,161 968,491 999,825

Student advice 196,379 15,010 68,744 280,133 264,271Democratic services 118,650 12,554 59,825 191,029 241,004NUS cards - - 24,086 24,086 31,276Communications and

societies 115,405 11,391 177,733 304,529 180,834Sports and leisure 133,031 11,531 208,756 353,318 372,092Catering and gaming

machines 224,278 19,095 239,478 482,851 431,218Clubs and societies - - 237,464 237,464 254,599

Charitable activities 787,743 69,581 1,016,086 1,873,410 1,775,294

Governance - - 15,000 15,000 19,538

1,083,920 95,734 1,677,247 2,856,901 2,794,657

10. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Auditors' remuneration 15,000 - 15,000 19,000Trustees expenses reimbursed - - - 538

15,000 - 15,000 19,538

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11. NET INCOMING / (OUTGOING) RESOURCES

This is stated after charging:

2015 2014 £ £

Depreciation of tangible fixed assets:- owned by the charitable group 95,734 93,448

Auditor's remuneration 15,000 19,000Pension costs 80,469 74,192

12. STAFF COSTS

Staff costs were as follows:

2015 2014 £ £

Wages and salaries 958,387 885,039Social security costs 45,064 38,792Other pension costs 80,469 74,192

1,083,920 998,023

The average monthly number of employees during the year was as follows:

2015 2014 No. No.

Management and administration 15 14Operational 5 6Casual staff 23 24

43 44

No employee received remuneration amounting to more than £60,000 in either year.

Included in wages and salaries in 2015 were redundancy payments of £Nil (2014: £60,607).

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13. TRUSTEES' REMUNERATION

The Trustees' who are sabbatical members of the Aberystwyth University Students Union receiveremuneration for their services as allowed by the Education Act 1994. Their salary and NI costsamounted to £99,390 (2014: £86,331).

The Trustees' who are non-sabbatical members receive no remuneration.

The remuneration is summarised as follows:

2015 £

2014 £

L Dickens - 15,817I Evans - 17,247M Ifan - 17,429O Prewett - 17,387G Burton 18,215 17,007J D Ellis 21,036 361M Williams 20,281 361H O'Shea 17,794 361W Atkinson 18,068 361L Donnelly 785 -I Gregory 856 -L Marks 785 -H Merrigan 785 -K Keat 785 -

99,390 86,331

5 (2014:+-* 7) Trustees received reimbursement of expenses amounting to £1,340.93 (2014: £1,489) .

14. TANGIBLE FIXED ASSETS

Buildings Equipment TotalGroup £ £ £

Cost

At 1 July 2014 969,697 406,154 1,375,851Additions 5,345 37,193 42,538

At 30 June 2015 975,042 443,347 1,418,389

Depreciation

At 1 July 2014 862,383 324,897 1,187,280Charge for the year 66,350 29,384 95,734

At 30 June 2015 928,733 354,281 1,283,014

Net book value

At 30 June 2015 46,309 89,066 135,375

At 30 June 2014 107,314 81,257 188,571

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14. TANGIBLE FIXED ASSETS (continued)

Buildings Equipment TotalCharity £ £ £

Cost

At 1 July 2014 903,158 185,590 1,088,748Additions 5,345 31,886 37,231

At 30 June 2015 908,503 217,476 1,125,979

Depreciation

At 1 July 2014 830,359 144,504 974,863Charge for the year 56,512 13,069 69,581

At 30 June 2015 886,871 157,573 1,044,444

Net book value

At 30 June 2015 21,632 59,903 81,535

At 30 June 2014 72,799 41,086 113,885

15. FIXED ASSET INVESTMENTS

SubsidiaryCharity £

Cost

At 1 July 2012 (as restated) and 30 June 2013 1

The share holding of 1 ordinary share value £1 is held in trust by the Student Union President.

16. STOCKS

Group Charity

2015 2014 2015 2014£ £ £ £

Trading stocks 71,796 74,766 - -Non-trading stocks -consumables 9,183 4,377 9,183 4,377

80,979 79,143 9,183 4,377

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17. DEBTORS

Group Charity

2015 2014 2015 2014£ £ £ £

Trade debtors 8,255 11,473 7,737 5,785Aberystwyth UniversityVAT repayableOther debtors

110,17518,8382,000

-4,407

-

110,17520,903

-

94,5377,415

-Prepayments and accrued income 12,190 9,816 4,935 7,254

151,458 25,696 143,750 114,991

18. CREDITORS:Amounts falling due within one year

Group Charity

2015 2014 2015 2014£ £ £ £

Trade creditors 54,457 29,193 43,880 8,824Amounts owed to group undertakings - - 51,591 122,843Aberystwyth UniversityOther creditors

682,1072,563

680,478973

394,8972,323

440,556973

Accruals and deferred income 30,369 32,520 30,330 32,115

769,496 743,164 523,021 605,311

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19. STATEMENT OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

CarriedForward

£ £ £ £

Unrestricted funds

Reserve Fund (29,184) 2,540,078 (2,613,209) (102,315)Other General funds - (52,000) - (52,000)

(29,184) 2,488,078 (2,613,209) (154,315)

Restricted funds

Clubs and societies 108,063 243,793 (237,464) 114,392Alumni funding - Sports 426 - (426) -Alumni funding - Flood lights 522 - (522) -Alumni funding - Coaching 3,137 7,000 (5,280) 4,857

112,148 250,793 (243,692) 119,249

Total of funds 82,964 2,738,871 (2,856,901) (35,066)

The Clubs and societies funds represents balances held for specific clubs and societies where theunltimate control would vest with the Union.

The other restricted funds represent funding received from the Alumni for specific projects run by theStudents Union.

SUMMARY OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

CarriedForward

£ £ £ £

Unrestricted funds (29,184) 2,488,078 (2,613,209) (154,315)Restricted funds 112,148 250,793 (243,692) 119,249

82,964 2,738,871 (2,856,901) (35,066)

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Tangible fixed assets 135,375 - 135,375 188,571Current assets 479,806 119,249 599,055 637,557Creditors due within one year (769,496) - (769,496) (743,164)

(154,315) 119,249 (35,066) 82,964

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21. PENSION COMMITMENTS

The Students Union participates in the Aberystwyth University Pension and Assurance Scheme (AUPAS).The scheme is a defined benefit scheme which is contracted out of a State Earnings Related PensionScheme. The scheme operates as a pooled arrangement, with contributions paid at a centrally agreedrate. As a consequence, the Students Union is unable to identify its share of the scheme assets andliabilities on a consistent and reasonable basis. As permitted by FRS 17 the scheme has been accountedfor in these financial statements as if it were a defined contribution scheme based on actual contributionspayable to the scheme in respect of the accounting period. As a result, the amount charged to theStatement of financial activities for the year of £80,469 (2014: £74,192) represents the contributionspayable to the scheme in respect of the accounting period.

The last full actuarial valuation of the scheme was carried out at 31 July 2011 by a qualified independentactuary and showed that the market value of the scheme's assets was £63,394,000 with the presentvalue of scheme liabilities being £81,093,000. The deficit on an ongoing funding basis amounted to£17,699,000.

The 31 July 2011 full actuarial valuation assumptions which have the most significant effect upon theresults of the valuation are those relating to the rate of return on investments and the rates of increase insalaries and pensions.

The following assumptions applied:The expected return on pension scheme assets would be 5.8% (2014: 5.8%) per annum.Salaries would increase at 3.2% (2012: 3.2%) per annum.Present and future pensions would increase at rates specified by scheme rules with appropriateassumptions where these are dependent on inflation.

The current mortality assumptions include significant allowance for future improvements in mortalityrates. The assumed life expectations on retirement as at 31 July 2014 were:

Male FemaleMember age 65 retiring today 20.9 23.3member age 45 retiring in 20 years 23.0 25.6

The employers contribution rate applicable to the Students Union is 22.05% of pensionable salary.Surpluses or deficits which arise at future valuations may impact on the Student Unions futurecommitment.

Further details of the actuarial valuation, together with the principal assumptions on which it is based, areincluded in the financial statements of Aberystwyth University.

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22. RELATED PARTY TRANSACTIONS

Masnachu AUGS Trading LimitedThe wholly owned subsidiary, Masnachu AUGS Trading Limited, is included within the consolidatedaccounts, no disclosure is required of related party transactions with them in accordance with theprovisions of Financial Reporting Standard 8.

Aberystwyth UniversityThe majority of the Student Unions funding is derived from Aberystwyth University, which is a related partyas the Student Unions principal activities involve providing services to its student body.

The Student Union receives a block grant from Aberystwyth University of £650,000 (2014:£599,795).

In addition the Student Union occupies its building on a rent free basis, and receives payroll andaccounting services from the University for which no fee is charged.

The University has funded the Student Union with a loan facility of £760,000 to finance an extension to theStudent Union building. The loan is repayable over fourteen years and is interest free.

Other related parties are the Sabbatical Officers and Trustees as detailed on page 3. Details ofremuneration received by these individuals are shown in note 13.

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ABERYSTWYTH UNIVERSITY STUDENTS' UNION Accounts.pdf · · 2016-01-20charity number: 1150576...

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