Goldsmiths Final Accounts 2010-11
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Transcript of Goldsmiths Final Accounts 2010-11
GOLDSMITHS STUDENTS' UNION
FINANCIAL STATEMENTS
for the year ended 31 July 2011
GOLDSMITHS STUDENTS' UNION
CONTENTS
Page
Trustee Board and Union Information 1
Trustees' report 1 - 6
Statement of Trustees' responsibilities 7
Auditors' report 8 - 9
Balance sheet 11
Notes to the financial statements 12 - 21
Income and Expenditure Account 10
GOLDSMITHS STUDENTS' UNION
UNION INFORMATION
CHIEF EXECUTIVE Graham Gaskell
REGISTERED OFFICE Dixon RoadNew CrossLondonSE14 6NW
AUDITOR Crowe Clark Whitehill LLP49 - 51 Blagrave StreetReadingBerkshireRG1 1PL
TRUSTEE BOARD 2010/2011
Bindz Patel - PresidentJames Hayward - Campaigns and communications officerFrancesca Bancarino - Welfare and Education OfficerManoj Kerai - Activities and Services OfficerAlexandra Thorne - Student TrusteeAmy Pidwill - Student TrusteeCharlotte Eve - Student TrusteeMarc McCormick - Student TrusteePaul Collier - External Trustee & Honorary TreasurerJustine Stephens - External Trustee Sharon Wagstaff - External Trustee (Resigned June 2011)Tom Philpott (Appointed February 2011)
2009/2010
Jesse Fajemisin - PresidentBindz Patel - Welfare and Education OfficerRheem Al-Adhami - Student Activities Officer (resigned 26 March 2010)Jennifer Jones - Campaigns and Communications Officer (resigned--30 November 2009)Ruth Bibby - Student TrusteeEmily Harthern - Student TrusteeKatherine Daish - Student TrusteeSian Lapwood - Student TrusteeJustine Stephens (External Trustee)Paul Collier (External trustee & Honorary Treasurer)
Page 1
GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORTfor the year ended 31 July 2011
Trustees' Report
The Students’ Union is pleased to present our Financial Statements for 2010-11, a year that saw significantchanges across the Students’ Union.
The Union had an extremely successful year in 2010-11. We were victorious in our most important Goldsmithscampaign, to prevent the closure of the College nursery, something which looked almost inevitable a year ago.Financially we generated a surplus of over £59,000, significantly higher than we’d planned. And we persuadedthe College to make changes based on evidence-based representation (such as the introduction of anInternational Rent Guarantee scheme) as well as seeing continued success and growth for our sports teams.
GSU has now generated surpluses in seven of the last eight years and our reserves have grown significantlyduring this time. However, we recognise that conditions for our commercial services will remain challenging andthat the Union needs to continue to build its reserves to levels capable of dealing with an unexpected problem orfurther downturns in trading turnover, particularly given the fact we are now running the nursery. We are stillhugely dependant on the College for our grant funding and at a time when all Higher Education institutions willbe making cutbacks it’s important we continue to diversify our income streams, generate more of our own fundsfrom fundraising and marketing and seek to find efficiencies in all that we do.
Income
Despite a small reduction in funding from the College, our overall income increased by 8% (£51,814). This waslargely due to the improvement in our trading, and in particular in the performance of the entertainments.
Bar and entertainmentsThe SU bar experienced yet another sharp decline in turnover; this has now fallen from £318,764 in 2006/7 to£207,642 in 2010/11. This was larger than we had projected and was compounded by the profit marginachieved being below the rate we budgeted for. However, cutbacks in our running costs in areas such assecurity reduced the impact somewhat and while the deficit on the bar of £6,592 is disappointing, it at least itrepresents an improvement on the deficit of £12,499 recorded the year before. The excellent practices in thebar were recognised by our achieving “Gold” in the Best Bar None scheme.
One of the success stories of last year was the performance of our entertainments. After a number of years ofsignificant deficits (including one of £51,840 last year) we finally managed to make a surplus overall. This waspartly due to a small reduction in the number of events, but also the result of very careful management and theconstant search for efficiencies in this area.
Shop2010-11 was a poor year for the SU shop, with sales falling back by 8% to £360,979. This was the first yearsales have declined after consistent growth of around 10% a year since 2007. However, the opportunityprovided by a restructure of staffing led to a reduction in salary costs in the second half of the year and the factthat the refurbishment costs are now fully depreciated meant the shop generated £12,196 in net profit. Theshop provides essential arts materials for students and over 180,000 customers were served over the course ofthe year. Growth in competition from the café in the NAB and the soon-to-open local Sainsbury’s willundoubtedly make it harder to attract more customers but we believe there are opportunities in growing on-linesales of memorabilia to alumni.
Page 2
GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORTfor the year ended 31 July 2011
Expenditure
Expenditure overall fell back slightly, with a significant reduction in the costs associated with our CentralServices (such as expenditure on legal costs and recruitment) but with a growth of over 10% on Representation,which is of course at the heart of the Union’s mission.
Clubs, societies and student activities
Participation in our sports clubs has continued to increase, with the number of members of our sports teamsgrowing from 386 in 2008-9 to 564 in 2009-10 and reaching 632 last year. Society members fell back from2,478 in 2009-10 to 2,060 last year, in large part due to the demise of the popular Bass Society.
Balance Sheet
The Union spent just £3,726 on investment in tangible fixed assets in 2010-11, but significant investment hastaken place over the late summer which will show in the 2011-12 accounts. Overall depreciation meant that thevalue of the Union’s tangible fixed assets fell from £49,512 to £30,698 and the state of the building means thatfurther capital investment will be required very soon. We have managed to reduce the levels of stock of stockwe hold, and cash balances increased significantly, so that the Students’ Union’s capital and reserves nowstand at £282,035.
Reserves
The Finance Committee have set a reserves policy which aims to generate reserves equivalent to six monthsrunning costs for the Union’s commercial services within the medium term. While we are still some way off this- at current levels it would require reserves of roughly £360,000 – it’s clear that important progress has beenmade when one considers that the Union’s net current assets have risen from £76,222 in 2007 to £251,277 thisyear.
Some key achievements in 2010-11
• The campaign to persuade the College to keep the College nursery open was successful and wasrecognized by NUS as runner up in the campaign of the year category at the NUS Annual awards.
• A huge turnout from Goldsmiths students at the November demonstration against higher fees.• Another increase in the number of students participating in sports clubs and victory (again) in the annual
Varsity competition against the University of the Arts.• Gold in Sound Impact Awards, which recognises environmentally friendly unions.• Gold in the Best Bar None awards.• On-line elections run for the first time ever, an increase in turnout and no complaints raised by
candidates.• Reviewed our staff handbook and conducted a job evaluation on all permanent jobs.
Page 3
GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORTfor the year ended 31 July 2011
Membership figures (taken from the Higher Education Statistics Agency for 2009/10, the most recentyear that figures are available for)
Student numbers
Total 8,160
Undergraduate 5,510 (of which 4905 are studying FT, 605 are PT)Postgraduate 2,460 (1,595 FT, 865 PT)Further education 185 (70 FT, 115 PT)
International Students
EU Students 725 (360 Postgraduate, 365 Undergraduate)Non EU Students 720 (535 PG, 375 UG)
Total of 1,635 out of 8,160 Students
20% of total student numbers are international
Looking to the future
2011-12 will see the Students’ Union registering with the Charities Commission.
We are very aware that the SU Building has suffered from years of under-investment and are planning anumber of improvements in the short term, alongside a thorough review into the long term needs of theorganisation and possibilities for refurbishment.
As a Students’ Union we believe our future lies in the effective representation of all our members, we continueto focus on the development of diverse services and projects that offer significant opportunities to our membersand ultimately have a positive and measurable impact on their lives.
The current strategic plan outlines a series of projects and initiatives designed to meet the challenges facingGoldsmiths Students’ Union.
Four strategic themes are common to these initiatives:
Strategic Theme One - Financial sustainabilityThis is a critical area. Without ensuring our financial sustainability we will have to cut services, activities andstaff. In some instances, in other students’ unions around the country, this has led to bankruptcy (Aberdeen) orresulted in the College or University taking over part of their students’ union (Queen Mary and Portsmouth) or allof their students’ union (London Met).
Strategic Theme Two – Delivering diverse opportunitiesThe Students’ Union believes there is no single ‘Student Experience’, but many student experiences. The Unionhas the capacity to have significant impact on the lives of students through the delivery of diverse opportunities,enabling our students to make the most of their time at Goldsmiths. We believe we are able to do this by placingequality and diversity at the heart of organisation’s culture and activity.
Page 4
GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORTfor the year ended 31 July 2011
Strategic Theme Three –Representing students effectivelyOur mission stipulates that representation is at the heart of all that we do. If we are not representing all studentseffectively then we simply will not be fulfilling our raison d’etre. This is especially important at a time whenstudents will be expecting more of their College and will need mechanisms to channel their criticisms. This isparticularly true of under-represented and minority groups.
Strategic Theme Four – Professional, ethical servicesWe operate in a competitive environment where students enter into higher education with increasingly higherexpectations. For the Union to remain sustainable it must deliver excellent services across the organisation thatmeasurably impact on students lives. Our belief in collectivism ensures we embrace our responsibilities beyondthe walls of Goldsmiths. The Union believes that the pursuit of ethical and environmental excellence throughoutthe organisation and active lobbying for it beyond we will ensure meet our responsibilities and become asustainable organisation.
Key Performance Indicators (KPIs)
Our key performance indicators are those areas that are critical to our success as an organisation and, as such,these will be constantly monitored.
Our key performance indicators are:
Increasing participation and involvement • Election Turnout (%) and no. of candidates. • No. of students involved in clubs, societies, volunteering, media.• No. of NUS Extra cards sold.
Being effective campaigners and representatives• Campaigning objectives are achieved. • Students recognise campaigns made a difference to their lives. • Number of students seen through our advice centre.
High levels of Membership Satisfaction• Students see the Students’ Union as having made a positive difference to their lives.
Achieving our financial targets • Generating surpluses.
The targets for these areas are detailed in the 2008-2013 strategic plan.
Projects for 2011/12
The most significant projects for the Union in 2011/12 are:
• Developing a new Strategic Plan.• A new website for the Union and greatly improved levels of engagement with our members.• Fighting cuts in Higher Education and against higher tuition fees.• Agreeing a revised Memorandum of Understanding with the College and registering with the Charity
Commission.• Work towards Silver accreditation under the Students’ Union Evaluation Initiative.• Working to achieve another Gold in the Sound Impact Awards.• Establishing workplace representation for students in part-time employment through the GMB partnership
Page 5
GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORTfor the year ended 31 July 2011
We will also aim to achieve the targets in Union-led campaigns for 2011/12, which are broadly grouped around:
• Union ethos: Promoting Union policy, supporting campaigns linked to our beliefs and values and having a zero tolerance approach to sexual harassment.
• Goldsmiths not for profit: Making sure Goldsmiths College does not outsource student services or academic courses to private companies and defending the integrity of education at Goldsmiths from damaging cuts.
• Support our students: Lobbying the College to provide funding for the development of our advice service.• Increase the number of student volunteers in particular with our two main projects: Open Book and the
Safety Night Bus.
Our successes last year were a result of the hard work and commitment of union staff, officers and volunteers,but I must finish with a special mention of last years President, Bindz Patel, who provided exceptionalleadership.
James HaywoodPresident 2011-12
RESULTS
The profit for the year, after taxation, amounted to £59,465 (2010 - £2,202).
PRESIDENT
The president who served during the year was:
Bindz Patel
PROVISION OF INFORMATION TO AUDITOR
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
so far as that Trustee is aware, there is no relevant audit information of which the Union's auditor is
unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of
any information needed by the Union's auditor in connection with preparing its report and to establish
that the Union's auditor is aware of that information.
AUDITOR
The auditor, Crowe Clark Whitehill LLP, will be proposed for reappointment in accordance with section 485 ofthe Companies Act 2006.
This report was approved by the board on and signed on its behalf.
James HaywardPresident
Page 6
GOLDSMITHS STUDENTS' UNION
STATEMENT OF TRUSTEES' RESPONSIBILITIESfor the year ended 31 July 2011
Charity law requires the Trustees to prepare financial statements for each financial year which give a true andfair view of the state of affairs of the Union and of the surplus or deficit for that year.
In preparing the financial statements the Trustees are required to select suitable accounting policies, asdescribed below, and then apply them on a consistent basis, making judgments and estimates that are prudentand reasonable. The Trustees must also prepare the financial statements on the going concern basis unless itis inappropriate to presume that the Union will continue to operate.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at anytime the financial position of the Union. It is also responsible for safeguarding the assets of the Union and hencefor taking reasonable steps for the prevention and detection of fraud and other irregularities.
Risk ManagementThe Trustees have undertaken to examine the major risks that the Union faces. That review is an integral partof the annual planning cycle. The Union has, and continues to develop, systems to monitor and control theserisks in order to mitigate any impact that they have on the Union and its operations.
The Trustees are responsible for preparing the Trustees' Report and the Financial Statements in accordancewith applicable law and regulations.
Charity law requires the Trustees to prepare for each financial year. Under that law the Trustees have electedto prepare the in accordance with United Kingdom Generally Accepted Accounting Practice (United KingdomAccounting Standards and applicable law). Under company law the Trustees must not approve the financialstatements unless they are satisfied that they give a true and fair view of the state of affairs of the companyand of the profit or loss of the company for that period. In preparing these, the Trustees are required to:
select suitable accounting policies and then apply them consistently;
make judgments and estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe company's transactions and disclose with reasonable accuracy at any time the financial position of thecompany and enable them to ensure that the comply with the Companies Act 2006. The Trustees are alsoresponsible for safeguarding the assets of the company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.
Page 7
GOLDSMITHS STUDENTS' UNION
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GOLDSMITHS STUDENTS' UNION
We have audited the financial statements of Goldsmiths Students' Union for the year ended 31 July 2011, setout on pages 9 to 19. The financial statements have been prepared under the accounting policies set outtherein.
This report is made solely to the Union's members as a body. Our audit work has been undertaken so that wemight state to the Union's members 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 Union and the Union's members as a body, for our audit work, for this report, or for the opinionswe have formed.
Respective responsibilities of the Trustees' and auditors
The trustees’ responsibilities for preparing the Annual Report and the financial statements in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice) are set out in the Statement of Trustees' Responsibilities.
We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance withregulations made under that Act. Our responsibility is to audit the financial statements in accordance withrelevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properlyprepared in accordance with the Charities Act 1993. We also report to you if, in our opinion, the informationgiven in the Trustees’ Annual Report is not consistent with those financial statements, if the charity has not keptsufficient accounting records, or if we have not received all the information and explanations we require for our
audit.
We read the Trustees’ Annual Report and consider the implications for our report if we become aware of anyapparent misstatements within it.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by theAuditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amountsand disclosures in the financial statements. It also includes an assessment of the significant estimates andjudgements made by the trustees in the preparation of the financial statements, and of whether the accountingpolicies are appropriate to the charity's circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considerednecessary in order to provide us with sufficient evidence to give reasonable assurance that the financialstatements are free from material misstatement, whether caused by fraud or other irregularity or error. Informing our opinion we also evaluated the overall adequacy of the presentation of information in the financialstatements.
Page 8
GOLDSMITHS STUDENTS' UNION
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GOLDSMITHS STUDENTS' UNION
OPINION ON FINANCIAL STATEMENTS
In our opinion the financial statements:
give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of
the state of affairs of the charity as at 31 July 2011 and of its incoming resources and application of
resources, for the year then ended; and have been properly prepared in accordance with the Charities Act 1993.
CROWE CLARK WHITEHILL LLP
Statutory AuditorReading
Page 9
GOLDSMITHS STUDENTS' UNION
INCOME & EXPENDITURE ACCOUNTfor the year ended 31 July 2011
Note2011
£2010
£
INCOME Grants receivable 2 605,830 620,679 Net trading result 3 13,389 (53,087) Sundry income 4 10,917 10,804 Investment income 5 215 141
630,351 578,537
EXPENDITURE Representation 6 322,708 289,090 Central services 7 115,064 161,411 Clubs and societies 8 64,068 60,728 Building costs 9 49,248 53,184 Student activities 10 2,453 11,922
SURPLUS FOR THE YEAR BEFORE ALLOCATION TO FUNDS
553,541
76,810
576,335
2,202
TRANSFERS Transfer to development reserve (17,345) -
SURPLUS FOR THE YEAR TO INCOME AND EXPENDITUREACCOUNT 59,465 2,202
The notes on pages 11 to 19 form part of these financial statements.
Page 10
GOLDSMITHS STUDENTS' UNION
BALANCE SHEETas at 31 July 2011
2011 2010Note £ £ £ £
FIXED ASSETS
Tangible fixed assets 12 30,698 49,452
Fixed asset investments13
60 60
30,758 49,512
CURRENT ASSETS
Stocks 14 48,443 54,923
Debtors 15 39,070 48,142
Cash at bank 234,778 111,533
322,291 214,598
CREDITORS: amounts falling due withinone year 16 (71,014) (58,885)
NET CURRENT ASSETS 251,277 155,713
TOTAL ASSETS LESS CURRENT LIABILITIES 282,035 205,225
CAPITAL AND RESERVES
- -
Development reserve 17 17,345 -
Income and expenditure account 19 264,690 205,225
FUNDS 282,035 205,225
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
G Gaskell James HaywardChief Executive President
The notes on 11 to 19 form part of these financial statements.
Page 11
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
1. ACCOUNTING POLICIES
1.1 Basis of accounting
The financial statements have been prepared under the historical cost convention.
The Trustees have a reasonable expectation that the Union has adequate resources to continue inoperational existence for the foreseeable future. This is on the basis they continue to obtain supportfrom the College. They continue to believe the going concern basis of accounting appropriate inpreparing the annual financial statements.
1.2 Cash flow statement
The Trustee Board has taken advantage of the exemption in Financial Reporting Standard No 1from including a cash flow statement in the financial statements.
1.3 Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied,exclusive of Value Added Tax and trade discounts.
1.4 Depreciation
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:
Bar extension & Entertainment - 20-25% straight lineUnion Bar - 25% straight lineShop refurbishment - 25% straight lineUnion equipment - 10-33% straight line
1.5 Operating leases
Rentals under operating leases are charged on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on astraight line basis over the period until the date the rent is expected to be adjusted to the prevailingmarket rate.
1.6 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.
1.7 PensionsSince February 2009, the Union has participated in the Universities Superannuation Scheme, adefined benefit scheme which is externally funded and contracted out of the State Second Pension(S2P). The liabilities are valued every three years by a professionally qualified independent actuaryusing the projected unit method, the rates of contribution payable being determined by the trustee onthe advice of the actuary, based on the latest actuarial valuation of the scheme, and are accountedfor on the basis of charging the cost of providing pensions over the period during the institutionbenefits from the employees' services.
Page 12
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
1. ACCOUNTING POLICIES (continued)
1.8 Accounting by charities - Statement of Recommended Practice (SORP)
As a result of its exempt charitable status the Union is not required to adopt the SORP in thepresentation of the Financial Statements. However, in accordance with the establishment of bestpractice, where appropriate the Union will make disclosures in accordance with the broaderprinciples of the SORP.
1.9 Taxation
No provision is made in these accounts for corporation tax as the Union is exempt from such taxesas a result of having derived its charitable status from its parent governing body, GoldsmithsCollege.
2. GRANTS RECEIVABLE
2011£
2010£
Block Grant 605,830 620,679
3. NET TRADING INCOME
2011Turnover
£
2011Surplus / (Deficit)
£
2010Turnover
£
2010Surplus
/ (Deficit)£
Retail operations 570,301 5,604 639,506 9,909Other trading activities 101,166 7,785 83,477 (62,996)
671,467 13,389 722,983 (53,087)
4. SUNDRY INCOME
2011£
2010£
Other income 725 747Sponsorship Smiths 311 1,272Pension income 9,881 8,785
10,917 10,804
Pension income represents pension costs paid for on behalf of Goldsmiths College.
Page 13
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
5. INVESTMENT INCOME
2011£
2010£
Bank deposit interest 215 80NUSSL Deposit interest - 61
215 141
6. REPRESENTATION
2011£
2010£
Conference fees and expenses 15,227 10,284Elections 3,755 1,735Trustee Board expenses 58 11NUS affiliation fee 31,191 25,916Wages and salaries 190,436 160,355Bad debts (54) (170)Welfare 1,007 2,928Diversity support - 1,833Pension 9,881 8,786Course Rep scheme 16,545 25,988Other affiliation fees 42,602 43,124Campaigns 4,369 5,989Additional projects 7,691 2,311
322,708 289,090
Page 14
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
7. CENTRAL SERVICES
2011£
2010£
Administration Costs
Audit and accountancy 9,500 8,500Bad debts 1,569 (1,679)Bank charges 1,689 2,407Depreciation 3,282 5,709Insurance 19,453 17,830Legal 641 18,068Salaries and wages 64,847 77,991Staff expenses 1,832 2,116Staff recruitment 643 6,889Stationery, photocopying, publications and postage 1,274 3,717Telephone 5,472 8,933Training 4,862 9,818Loss on disposal of fixed assets - 1,112
115,064 161,411
Page 15
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
8. CLUBS AND SOCIETIES
2011£
2010£
Sports Clubs income
Fitness gym income (31,061) (28,717)Annual membership fees (6,458) (5,582)External Venue Hire (9,013) (10,133)
(46,532) (44,432)
Sports Clubs Expense
Affiliations 3,448 3,725Bad debts 330 -Varsity 996 720Salaries and wages 38,161 34,024Transport (including Minibus) 1,524 1,696AU Dinner 716 522Club activities 19,986 20,107Sports administration 513 -
65,674 60,794
Societies Expense
Volunteering projects expenditure 87 56Diversity support 139 -Bad debts 861 -Grants 5,029 2,658Membership expenditure 800 9,382Salaries and wages 38,010 32,270
44,926 44,366
64,068 60,728
Page 16
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
9. BUILDING COSTS
2011£
2010£
Maintenance and repair of premises 7,692 12,497Salaries and wages 18,215 16,711Cleaning 20,792 23,976Society developments 660 -Depreciation 3,339 -Common room income (1,450) -
49,248 53,184
10. STUDENT ACTIVITIES
2011£
2010£
Induction and enrolment project 994 6,569Made in Goldsmiths 1,459 4,881Student development - 472
2,453 11,922
11. STAFF SALARIES AND WAGES
2011 £
2010 £
Gross salaries 572,534 567,522Pension contributions 9,881 8,785
Total 582,415 576,307
Page 17
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
12. TANGIBLE FIXED ASSETS
Bar extension Union bar
Shoprefurbishment
and Unionequipment Entertainment Total
£ £ £ £ £
COST
At 1 August 2010 599,744 66,403 161,093 67,449 894,689Additions - - 3,726 - 3,726
At 31 July 2011 599,744 66,403 164,819 67,449 898,415
DEPRECIATION
At 1 August 2010 599,744 56,715 140,885 47,893 845,237Charge for the year - 5,968 6,921 9,591 22,480
At 31 July 2011 599,744 62,683 147,806 57,484 867,717
NET BOOK VALUE
At 31 July 2011 - 3,720 17,013 9,965 30,698
At 31 July 2010 - 9,688 20,208 19,556 49,452
13. INVESTMENTS
£
COST:
At 1 August 2010 and 31 July 2011 60
NET BOOK VALUE:
At 31 July 2011 60
At 31 July 2010 60
At 31 July 2011 the Union held investments in the following companies which are incorporated in theUnited Kingdom.
Name of Company Main Trading Activity Equity HeldNUS Services Limited Purchasing Services A Shares 0.36% B Shares 0.00%
Page 18
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
14. STOCKS
2011 2010 £ £
Bar and shop 48,443 54,923
15. DEBTORS
2011 2010 £ £
Trade debtors 4,538 13,382Other debtors 9,645 18,892Prepayments and accrued income 24,887 15,868
39,070 48,142
16. CREDITORS:AMOUNTS FALLING DUE WITHIN ONE YEAR
2011 2010 £ £
Trade creditors 23,237 21,447Social security and other taxes 9,981 8,184Other creditors 22 5,260Accruals and deferred income 37,774 23,994
71,014 58,885
17. RESERVES
Develop -ment
reserve£
Transfer to reserves in year 17,345
At 31 July 2011 17,345
Page 19
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
18. RELATED PARTY TRANSACTIONS
The Union is an exempt charity for the purposes of the Charities Act 1993 deriving charitable status fromits governing parent body, the Goldsmiths College. The Union is in receipt of a recurrent grant from theparent body of £605,830 (2010: £ 620,679). The amount due from Goldsmiths College at the year endwas £5,941 (2010: £18,869).
In addition the Union occupies its building on a rent free basis under an informal license subject to theunion maintaining the building in a good state of repair.
The Sabbaticals of the Union are the members of the Trustee Board and receive remuneration for theirservices as provided for within the Constitution. The aggregate amount payable under such contracts inthe year was £94,124 (2010: £80,082). The total board expenses paid during the year to the Trusteeswas £58 (2010: £11) and reimbursed travel expenditure amounted to £1,531 (2010: £403).
19. INCOME AND EXPENDITURE ACCOUNT
2011 £
2010 £
At 1 August 2010 205,225 203,023Retained surplus for the financial year 59,465 2,202
At 31 July 2011 264,690 205,225
20. CAPITAL COMMITMENTS
At 31 July 2011 the company had capital commitments as follows: 2011 2010
£ £
Contracted for but not provided in these financial statements 11,500 -
21. OPERATING LEASE COMMITMENTS
At 31 July 2011 the company had annual commitments under non-cancellable operating leases asfollows:
Land and buildings Other2011 2010 2011 2010
£ £ £ £
EXPIRY DATE:
Within 1 year - - 1,673 1,673
Page 20
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
22. AFFILIATIONS
2011 2010 £ £
NUS 31,191 25,916BUCS / BUSA 1,865 1,605Jitsu Foundation 560 200NCVO - 146ULU 43,056 43,124Sports 569 -
23. PENSION SCHEME
The Union is a participating employer of the Universities Superannuation Scheme, a defined benefitscheme which is externally funded and contracted out of the State Second Pension Scheme (S2P). Theassets of the scheme are held in a separate trustee-administered fund. It is not possible to identify eachinstitution's share of the underlying assets and liabilities of the scheme and hence contributions to thescheme are accounted for as if it were a defined contribution scheme. The cost recognised within thesurplus/deficit for the year in the income and expenditure account being equal to the contributionspayable to the scheme in the year.
The latest actuarial valuation of the scheme was at 31 March 2008. The assumptions which have themost significant effect on the result of the valuation are those relating to the rate of return on investments(i.e. the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the pastservice liabilities the financial assumptions were derived from market yields prevailing at the valuationdate. It was assumed that the valuation date of interest would be 6.4% per annum, salary increaseswould be 4.3% per annum and pensions would increase by 3.3% per annum. In relation to the futureservice liabilities it was assumed that the valuation rate of interest would be 6.1%, salary increases wouldbe 4.3% per annum and pensions would increase by 3.3% per annum. The valuation was carried outusing the projected unit method.
At the valuation date, the market value of the assets of the scheme was £28,842.6M. The assets weresufficient to cover 103% of the benefits which had accrued to members after allowing for expected futureincreases in earnings.
The institution contribution rate required for future service benefits alone at the date of the valuation was16% of salaries.
Surpluses or deficits which arise at future valuations may impact on the future contribution commitment.The next formal actuarial valuation is due as at 31 March 2011 when the above rates will be reviewed.The total pension cost for the Union was £9,881 (2010 - £8,785).
24. CONTROLLING PARTY
The Union is controlled by the Trustee Board, which is subject to democratic election by the votingmembership of the Union. Under the constitution, the ultimate control of the Union is vested in themembership in General meeting. As such no single person or entity controls the Union as defined byFinancial Reporting Standard 8.
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
The following pages do not form part of the audited financial statementswhich are the subject of the auditors' report on page 8.
Information is provided for the use of the executive committee and senior management team of Union of Goldsmiths Students' Union.
PAGE
Net trading income - summary 23
Union Bar 24
Union Shop 25
Entertainments 26
Other trading 27
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTSfor the year ended 31 July 2011
TRADING OUTLET
2011 2010
Turnover£
Surplus/(deficit)
£
Turnover
£
Surplus/(deficit)
£
Union bar 207,642 (6,592) 247,145 (12,498)Union shop 362,659 12,194 392,361 22,407Entertainments 103,539 25,205 72,916 (51,839)Other 14,972 (17,418) 10,561 (11,157)
688,812 13,389 722,983 (53,087)
SUMMARY OF FUNCTIONS
£ £ £ £
Bars 207,642 (6,592) 247,145 (12,498)Shops 362,659 12,194 392,361 22,407Other 101,166 7,787 83,477 (62,996)
Total 671,467 13,389 722,983 (53,087)
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNTS - UNION BARfor the year ended 31 July 2011
2011£
2010£
SALES
Sales 207,642 247,145
COST OF SALES
Opening stock 11,020 9,041Purchases 76,535 96,358Closing stock (7,026) (11,020)
80,529 94,379Retrospective discount 3,131 4,966
OPERATING EXPENSES
Bad debts (105) -Consumables 2,474 4,460Credit card charges 1,871 1,650Depreciation 5,968 5,733Repairs and maintenance 5,265 5,587Security 25,253 33,874Stocktaking fees 1,400 2,550Student staff 42,463 57,644Sundry expenses 1,450 832Travel expenses and staff uniforms 4,079 9,901Wages and salaries 42,271 46,938Gases 1,768 1,062Staff training 2,679 -
136,836 170,231
NET (DEFICIT) (6,592) (12,499)
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNTS - UNION SHOPfor the year ended 31 July 2011
2011£
2010£
TURNOVER
Sales 360,979 390,655Pay for display 1,680 1,706
362,659 392,361
COST OF SALES
Opening stock 43,903 32,421Purchases 252,763 274,897Closing stock (41,418) (43,903)
255,248 263,415
OPERATING EXPENSES
Depreciation 300 16,905Student staff 27,027 23,280Sundry expenses 664 822Wages and salaries 61,037 62,478Repairs and renewals 2,873 486Travel expenses 927 2,200Bank charges 2,198 1,650Uniform 191 150Bad debts - (1,432)
95,217 106,539
NET SURPLUS 12,194 22,407
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNT - ENTERTAINMENTSfor the year ended 31 July 2011
2011£
2010£
INCOME
Sales 17,345 -Bands and disco tickets 54,340 52,763Space and hall hire 25,147 21,268Sundry income 6,707 (1,115)
103,539 72,916
COST OF SALES
Groups, bands, disc jockeys and other entertainment 22,480 31,056Summer ball expenditure - 7,532
22,480 38,588
OPERATING EXPENSES
Depreciation 9,591 12,311PPL Licence 2,980 656Posters, printing and advertising 1,110 -Security 8,990 14,637Student staff 3,692 9,957Sundry expenses 1,125 1,159Wages and salaries 24,318 41,370Repairs and Maintenance 5,042 6,078Bad debts (994) -
55,854 86,168
NET SURPLUS/(DEFICIT) 25,205 (51,840)
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNTS - OTHER TRADINGfor the year ended 31 July 2011
2011£
2010£
TURNOVER
Sales 1,559 1,497NUS extra 3,746 2,046Freshers Fair 9,667 7,018
14,972 10,561
OPERATING EXPENSES
Fresher's Fair expenditure 6,008 4,707Fresher's printing costs 108 -Communications and PR 69 610Marketing and advertising 4,146 6,375Salaries 22,059 10,026
32,390 21,718
NET (DEFICIT) (17,418) (11,157)
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