QMU 2010-11 Final Accounts

DRAFT FINANCIAL STATEMENTS 7 October 2011 16:19:42 DATASET 30 June 2011

Queen Margaret Union

Report and Financial Statements

for the year ended 30 June 2011

Charity number: SC001239



Contents

Page

Charity information 1

Trustees' Annual Report 2 - 4

Independent Auditor's Report 5 - 6

Statement of Financial Activities 7

Balance Sheet 8

Notes to the Financial Statements 9 - 17



Legal and Administrative Information

Page 1

Charity name Queen Margaret Union

Charity registration number SC001239

Trustees From 1st July 2010 to 30th June 2011

Iain Smith President

Andrew Landels Honorary Secretary

Oliver Milne Honorary Assistant Secretary

T Murphy CA Honorary Treasurer

From 1st July 2011 to 30th June 2012

Kirsty Hill President

Liam Hainey Honorary Secretary

Colum Fraser Honorary Assistant Secretary

T Murphy CA Honorary Treasurer

Senior management Anthony McConachie General Manager

Principal office 22 University Gardens

Glasgow

G12 8QH

Auditors Alexander Sloan

Chartered Accountants

38 Cadogan Street

Glasgow

G2 7HF

Accountants T Murphy & Co

Chartered Accountants

59 Admiral Street

Glasgow

G41 1HP

Bankers The Royal Bank of Scotland

Hillhead Branch

339 Byres Road

Glasgow

G12 8QP

Solicitors McClure Naismith

292 St Vincent Street

Glasgow

G2 5RU



Trustees' Annual Report


Page 2

The Trustees present their report and the financial statements of the charity for the year ended 30 June

2011.

Trustees

The Trustees serving during the year and since the year end are detailed on page 1.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Union is an unincorporated organisation registered as a Scottish Charity and is governed by its

Constitution.

Appointment of Trustees

The Executive Committee are elected annually by the membership.

Organisational structure

The policy and management of the Union is under the control of the Board of Management. Financial

decisions are taken by the Finance Committee. Control of the day to day operations are delegated to the

Union's General Manager.

Related parties

The organisation has a close relationship with the University of Glasgow as it was established to provide

facilities for the student members of the University of Glasgow in all matters affecting their social and

welfare interests. Details of transactions with the University of Glasgow are detailed in the notes to these

financial statements.

Risk management

The Board of Management have assessed the major risks to which the Union is exposed, in particular

those related to the operations and finance of the charity and are satisfied that systems are in place to

mitigate our exposure to major risks. The most significant of these risks is the potential withdrawal of

grant funding from the University. Wherever possible the Union tries to improve income generating

operations to reduce its dependency on grant funding.

OBJECTIVES AND ACTIVITIES

The Union continues to fulfil its original and charitable objectives of providing facilities for the members

for their welfare and social requirements.

ACHIEVEMENTS AND PERFORMANCE

There have been no significant changes in the operations of the Students Union in the year.





Page 3

FINANCIAL REVIEW

The charity reported a deficit for the year of £13,375 and has accumulated reserves of £764,209 at the

balance sheet date.

Principal funding sources

Funding continues to be received from Glasgow University block grant. This is topped up with surpluses

from charitable trading activities to continue the operation of a students union.

Reserves policy

It is the policy of the Union to maintain unrestricted funds at a level to provide sufficient funds to cover

management, administration and support costs.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance

with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Accounting Practice).

The law applicable to charities in Scotland, the Charities and Trustee Investment (Scotland) Act 2005, the

Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity's Constitution 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 of the charity for

that period. 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;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable 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 proper accounting records which disclose with reasonable

accuracy at any time the financial position of the charity and enable them to ensure that the financial

statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts

(Scotland) Regulations 2006 and the provisions of the charity's Constitution. They are also responsible for

safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and

detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information

included on the charity's website. Legislation in the United Kingdom governing the preparation and

dissemination of financial statements may differ from legislation in other jurisdictions.





Page 4

Auditors

A resolution proposing that Alexander Sloan, Chartered Accountants, be reappointed as auditors of the

charity will be put to the Annual General Meeting.

This report was approved by the Trustees on ..................................... and signed on their behalf by

.................................

Kirsty Hill

President



Page 5

Independent Auditor's Report to the Trustees of Queen Margaret Union

We have audited the financial statements of Queen Margaret Union for the year ended 30 June 2011 which comprise the

Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has

been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (Effective

April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

This report is made exclusively to the charity's Trustees, as a body, in accordance with Section 44 (1)(c) of the Charities

and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006.

Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state

to them in an auditor's' 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 charity and its Trustees as a body, for our audit work, for this report, or

for the opinions we have formed.

Respective responsibilities of Trustees and Auditor

As explained more fully in the Trustees' Responsibilities Statement (set out in the Trustees' Annual Report), the Trustees

are responsible for the preparation of the financial statements which give a true and fair view.

We have been appointed as Auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005

and report in accordance with regulations made under that Act. Our responsibility is to audit and express an opinion 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 [APB's] Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the charity's circumstances and have

been consistently and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees;

and the overall presentation of the financial statements. In addition, we read all the financial and non-financial

information in the Trustees' Annual Report to identify material inconsistencies with the audited financial statements. If

we become aware of any apparent material misstatements or inconsistencies 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 charity's affairs as at 30 June 2011 and of its incoming

resources and application of resources, including its income and expenditure, for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

- have been prepared in accordance with the requirements of the Charities and Trustees Investment

(Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as

amended).



Page 6

Independent Auditor's Report to the Trustees of Queen Margaret Union (continued)

Matters on which we are required to report by exception

In respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us

to report to you if, in our opinion:

- the information given in the Trustees' Annual Report is inconsistent in any material respect with the

financial statements; or

- proper accounting records have not been kept; or

- the financial statements are not in agreement with the accounting records and returns; or

- we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Alexander Sloan 38 Cadogan Street

Chartered Accountants and Glasgow

Statutory Auditor

Alexander Sloan is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006



The notes on pages 9 to 17 form an integral part of these financial statements.

Page 7

Statement of Financial Activities

(incorporating Income and Expenditure Account)


Unrestricted

General Designated Restricted 2011 2010

funds funds funds Total Total

Notes £ £ £ £ £

Incoming resources

Incoming resources from

generated funds

Voluntary income 2 386,893 - - 386,893 378,258

Activities for generating

funds 3 180,617 - - 180,617 191,457

Investment income 4 12,227 - - 12,227 14,420

Incoming resources from

charitable activities 5 1,292,014 - 110,000 1,402,014 1,556,904

Total incoming resources 1,871,751 - 110,000 1,981,751 2,141,039

Resources expended

Costs of generating funds

Fundraising trading costs 7 )(164,463 - - )(164,463 )(210,387

Charitable activities 8 )(1,707,352 - )(106,846 )(1,814,198 )(2,027,760

Governance costs 9 )(16,465 - - )(16,465 )(15,139

Total resources expended )(1,888,280 - )(106,846 )(1,995,126 )(2,253,286

Net movement in funds )(16,529 - 3,154 )(13,375 )(112,247

Reconciliation of funds

Total funds brought forward 673,296 72,319 31,969 777,584 889,831

Total funds carried forward 656,767 72,319 35,123 764,209 777,584



The notes on pages 9 to 17 form an integral part of these financial statements.

Page 8

Balance Sheet

as at 30 June 2011

2011 2010

Notes £ £ £ £

Fixed assets

Tangible assets 16 59,320 53,135

Current assets

Stocks 47,207 44,227

Debtors 17 23,385 23,240

Cash at bank and in hand 822,731 923,115

893,323 990,582

Creditors: amounts falling

due within one year 18 )(188,434 )(266,133

Net current assets 704,889 724,449

Net assets 764,209 777,584

Funds

Unrestricted funds

General funds 20 656,767 673,296

Designated funds 21 72,319 72,319

Restricted funds 22 35,123 31,969

764,209 777,584

The financial statements were approved and authorised for issue by the Trustees on .....................................

and signed on their behalf by

................................. ..................................

Kirsty Hill T Murphy CA

President Treasurer



Notes to the Financial Statements


Page 9

1. Accounting policies

1.1. Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with the

Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2005) issued in

March 2005, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts

(Scotland) Regulations 2006 and in accordance with the Financial Reporting Standard for Smaller

Entities (effective April 2008). The principal accounting policies adopted in the preparation of the

financial statements are set out below.

1.2. Incoming resources

Voluntary income including donations, gifts and legacies and grants that provide core funding or are of

a general nature are recognised where there is entitlement, certainty of receipt and the amount can be

measured with sufficient reliability. Such income is only deferred when the donor specifies that the

grant or donation must only be used in future accounting periods, or when the donor has imposed

conditions which must be met before the charity has unconditional entitlement.

Income from bar, shop and catering activities and activities for generating funds are recognised as

earned (as the related goods and services are provided).

Income from investments is included in the year in which it is receivable.

Grant income, included within income from charitable activities is recognised where there is

entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

1.3. Resources expended

Expenditure is recognised on an accruals basis when a liability is incurred. Expenditure includes any

VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and

services for its beneficiaries. It includes both costs that can be allocated directly to such activities and

those costs of an indirect nature necessary to support them.

"In kind" contribution, namely the use of the premises at 22 University Gardens, Glasgow, is included

at the estimated rental value placed on the premises by the University of Glasgow, who own the

property.

Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in

trading activities that raise funds.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity

and are allocated between expenditure categories on a basis consistent with the use of resources.

Governance costs include those incurred in the governance of the charity and its assets and are

primarily associated with constitutional and statutory requirements.





Page 10

1.4. Tangible fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation. The costs of minor additions are not

capitalised.

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its

expected useful life, as follows:

Fixtures, fittings

and equipment - 10 - 33.33% straight line

1.5. Stock

Stock is valued at the lower of cost and net realisable value.

1.6. Pensions

The pension costs charged in the financial statements represent the contribution payable by the charity

during the year.

2. Voluntary income

2011 2010

£ £

University grant 159,893 151,258

Donation in kind - University rent grant 227,000 227,000

386,893 378,258

3. Activities for generating funds

2011 2010

£ £

Freshers week 27,580 29,363

Events income 82,330 109,380

Games machine income 28,277 33,963

Room hire 42,430 18,751

180,617 191,457





Page 11

4. Investment income

2011 2010

£ £

Interest received 12,227 14,420

12,227 14,420

5. Incoming resources from charitable activities

2011 2010

£ £

Bar sales 561,306 660,560

Shop sales 254,893 346,853

Catering sales 467,397 501,603

Other income 8,418 13,888

Development fund income 110,000 34,000

1,402,014 1,556,904

6. Analysis of incoming resources from charitable activity

Generated Grant 2011 2010

income income Total Total

Activity or Programme £ £ £ £

Bar 561,306 110,000 671,306 694,560

Shop 254,893 - 254,893 346,853

Catering 467,397 - 467,397 501,603

General 8,418 - 8,418 13,888

1,292,014 110,000 1,402,014 1,556,904





Page 12

7. Fundraising trading costs

2011 2010

£ £

Other fundraising trading costs

Event costs 119,819 154,315

Games costs 9,342 11,111


Advertising 6,777 5,839

Campaigns 206 56

164,463 210,387

8. Costs of charitable activities

2011 2010

£ £

Wages and salaries 570,988 696,189

Employer's NI contributions 40,692 51,031

Superannuation 2,220 2,220

Bar expenditure 222,492 260,722

Shop expenditure 182,512 240,133

Catering expenditure 239,637 261,096

Rent (notional charge) 227,000 227,000

Water rates and insurance 35,280 36,055

Heat and light 17,906 74,280

Laundry and cleaning 247 400

Repairs and maintenance 196,755 83,556

Printing, postage and stationery 1,746 2,181

Diaries and handbooks 50 1,920

Photocopier consumables 1,255 476

Telephone 2,857 4,711

Computer costs 376 605

Machine hire 5,115 4,638

Travelling expenses 3,732 4,311

Legal and professional 3,097 4,450

Board of management 7,559 10,415

Bank charges 6,299 7,047

General expenses 14,265 24,886

Depreciation on FF & equipment 32,118 29,438

1,814,198 2,027,760





Page 13

9. Governance costs

2011 2010

£ £

Accountancy 11,265 9,809

Audit 5,200 5,330

16,465 15,139

10. Net resources expended for the year

2011 2010

£ £

Net resources expended is stated after charging:

Depreciation 32,118 29,438

Auditors' remuneration 5,200 5,330

11. Analysis of charitable expenditure by activity

Activities

undertaken Support 2011 2010

directly costs Total Total

Activity or Programme £ £ £ £

Bar 357,495 280,774 638,269 697,427

Shop 233,247 198,576 431,823 548,990

Catering 409,620 334,486 744,106 781,343

1,000,362 813,836 1,814,198 2,027,760

12. Analysis of support costs by charitable activity

2011 2010

Staff Premises Running Dep'n Total Total

Activity or programme £ £ £ £ £ £

Bar 89,072 164,630 15,991 11,081 280,774 274,045

Shop 62,995 116,434 11,310 7,837 198,576 246,376

Catering 106,112 196,124 19,050 13,200 334,486 327,637

258,179 477,188 46,351 32,118 813,836 848,058

Support costs are allocated pro-rata based on estimated use of resources on each activity.





Page 14

13. Employees

Number of employees

The average monthly numbers of employees 2011 2010

during the year were: Number Number

Union Staff (full time equivalents) 56 61

Union Staff (average) 64 83

Employment costs

2011 2010

£ £


Social security costs 40,692 51,031

Other pension costs 2,220 2,220

668,125 812,697

Employment costs as detailed above include £54,225 (2010: £63,257) that are included within Events costs.

There was one employee who received remuneration of between £60,000 and £70,000 in the period.

14. Trustees' emoluments

The former president received remuneration of £15,379 during the year (2010- £15,254). The treasurer

is the senior partner of T.Murphy & Co. T. Murphy & Co provided accountancy services to the Union

costing £11,265 (2010 - £9,809). No other trustees or any persons connected with them received

remuneration in the period and no trustees received reimbursement of expenses during the year.

15. Pension costs

The charity operates a defined contribution pension scheme in respect of the staff. The scheme and its

assets are held by independent managers. The pension charge represents contributions due from the

charity and amounted to £2,220 (2010 - £2,220).





Page 15

Fixtures,

16. Tangible fixed assets fittings and

equipment Total

£ £

Cost

At 1 July 2010 330,182 330,182

Additions 38,303 38,303

At 30 June 2011 368,485 368,485

Depreciation

At 1 July 2010 277,047 277,047

Charge for the year 32,118 32,118

At 30 June 2011 309,165 309,165

Net book values

At 30 June 2011 59,320 59,320

At 30 June 2010 53,135 53,135

17. Debtors 2011 2010

£ £

Trade debtors 4,310 2,555

Other debtors 126 80

Prepayments and accrued income 18,949 20,605

23,385 23,240

18. Creditors: amounts falling due

within one year 2011 2010

£ £

Trade creditors 16,199 21,663

Other taxes and social security costs 19,140 25,169

Other creditors 3,176 15,686

Accruals and deferred income 149,919 203,615

188,434 266,133





Page 16

19. Analysis of net assets between funds

UnrestrictedDesignated Restricted Total

funds funds funds funds

£ £ £ £

Fund balances at 30 June 2011 as

represented by:

Tangible fixed assets 59,320 - - 59,320

Current assets 785,881 72,319 35,123 893,323

Current liabilities )(188,434 - - )(188,434

656,767 72,319 35,123 764,209

20. Unrestricted General Funds 1 Jul '10 Incoming Outgoing 30 Jun '11

£ £ £ £

General fund 673,296 1,871,751 )(1,888,280 656,767

673,296 1,871,751 )(1,888,280 656,767

Purposes of General Funds

General fund

The General Fund represents the unrestricted funds which the Executive Committee are free to use in

accordance with the charitable objectives.

21. Unrestricted Designated Funds 1 Jul '10 30 Jun '11

£ £

Contingency fund 72,319 72,319

72,319 72,319

Purposes of Designated Funds

Contingency fund

The Contingency Fund is an unrestricted but designated fund. The fund has been designated to cover

the costs of unforseen situations that may arise affecting the ability of the Union to exercise its

functions.

Transfers are made as required to the fund based on a percentage of staff costs.





Page 17

22. Restricted funds 1 Jul '10 Incoming Outgoing 30 Jun '11

£ £ £ £

Development fund reserve 31,969 110,000 )(106,846 35,123

31,969 110,000 )(106,846 35,123

Purposes of restricted funds

Development fund reserve

The development fund represents grant income received for specific projects which is unspent at the

year end.

23. Capital commitments 2011 2010

£ £

Details of capital commitments at the

accounting date are as follows:

Contracted for but not provided in

the financial statements - 170,000

The charity was committed to spending £170,000 on the redevelopment of Qudos Bar at 30 June 2010.

24. Related party transactions

The Queen Margaret Union was established to provide facilities to the students of the University of

Glasgow in all matters affecting their social and welfare interests.

In the year ended 30 June 2011 a grant was received from the University of Glasgow amounting to

£159,893 (2010: £151,258). A development grant of £110,000 was also received from the University

(2010: £34,000).

The University of Glasgow provides the Union with the use of the premises at 22 University Gardens,

Glasgow free of any rental charges. The University of Glasgow has placed a notional annual rental

value of £227,000 on the premises.

In the year ended 30 June 2011 the Union made sales of £480 (2010: £nil) to the University of

Glasgow. The Union was also charged £43,188 in respect of goods and services purchased from the

University of Glasgow (2010: £78,344).

At 30 June 2011 the balance due from the University of Glasgow was £nil (2010: £nil).



The following pages do not form part of the statutory accounts.



Detailed Income and Expenditure Account


2011 2010

£ £ £ £

Income

Voluntary Income

University grant 159,893 151,258

Donation in kind - University rent grant 227,000 227,000

386,893 378,258

Activities for generating funds


Events income 82,330 109,380

Games machine income 28,277 33,963

Room hire 42,430 18,751

180,617 191,457

Investment income

Interest received 12,227 14,420

12,227 14,420

Income from charitable activities

Bar sales 561,306 660,560

Shop sales 254,893 346,853

Catering sales 467,397 501,603

Other income 8,418 13,888

Development fund income 110,000 34,000

1,402,014 1,556,904

Total income 1,981,751 2,141,039

Total expenditure )(1,995,126 )(2,253,286

Net deficit for the year )(13,375 )(112,247



Schedule of Expenditure


2011 2010

£ £ £ £

Expenditure

Fundraising trading costs

Event costs 119,819 154,315

Games costs 9,342 11,111


Advertising 6,777 5,839

Campaigns 206 56

164,463 210,387

Charitable activities

Staff costs


Employer's NI contributions 40,692 51,031

Superannuation 2,220 2,220

613,900 749,440

Projects and activities costs

Bar expenditure 222,492 260,722

Shop expenditure 182,512 240,133

Catering expenditure 239,637 261,096

644,641 761,951

Premises costs

Rent (notional charge) 227,000 227,000

Water rates and insurance 35,280 36,055

Heat and light 17,906 74,280

Laundry and cleaning 247 400

Repairs and maintenance 196,755 83,556

477,188 421,291

Running costs

Printing, postage and stationery 1,746 2,181

Diaries and handbooks 50 1,920

Photocopier consumables 1,255 476

Telephone 2,857 4,711

Computer costs 376 605

Machine hire 5,115 4,638

Travelling expenses 3,732 4,311

Legal and professional 3,097 4,450

Board of management 7,559 10,415

Bank charges 6,299 7,047

General expenses 14,265 24,886

46,351 65,640

Depreciation and Gains/Losses



Depreciation on FF & equipment 32,118 29,438

32,118 29,438

Total of charitable activity expenditure 1,814,198 2,027,760

Governance Costs

Accountancy 11,265 9,809

Audit 5,200 5,330

16,465 15,139

Total expenditure 1,995,126 2,253,286

QMU 2010-11 Final Accounts

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Transcript of QMU 2010-11 Final Accounts