UNION OF BRUNEL STUDENTS TRUSTEES REPORT AND … · August 2017 under the merger-accounting rules...

CHARITY NUMBER: 1173492

UNION OF BRUNEL STUDENTS

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

FIRST FINANCIAL PERIOD FROM 20 JUNE 2017 TO 31 JULY 2018

Incorporating the merger of the precursor charity, Union of Brunel Students on

17 August 2017


CONTENTS PAGE Administrative information 1 Report of the Trustees 2 - 11 Statement of Trustees’ Responsibilities 12 Auditors’ Report 13 - 15 Statement of Financial Activities 16 Balance Sheet 17 Statement of Cash Flows 18 Notes to the Financial Statements 19 - 32

UNION OF BRUNEL STUDENTS ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2018

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Administrative Information Charitable Status The Union of Brunel Students is an incorporated charity established under the Education Act 1994. The Union is registered with the Charity Commission under the s.11(9), Charities Act and our registration number is 1173492. Principal Address Cleveland Road Uxbridge Middlesex UB8 3PH Chief Executive Craig Lithgow Charity Trustees July 2017/18 July 2018/19

President* Pauldy Otermans Ranjeet Rathore VP Student Activities* Dev Aditya George Wardle VP College of Business, Arts and Social Sciences* VP College of Health and Life Sciences* VP College of Engineering, Design and Physical Sciences* VP Post Graduate* Student Trustee

Ammaar Ikram Rachel Kerslake Mohamed Ahmed Carly Schnurr Jonathan Fernandes

Anvitha Paruchuri Maria Valada Peri Sherif Radya Hussien Jonathan Fernandes

Student Trustee Muhammad Hamza Javaid Naomi Carndorf Student Trustee Muhammad Asad Shafiq Mujib Salem Student Trustee Independent Trustee

VACANT Sheila Cunliffe

Mushfiq Alam Ankur Julie Atherton

Independent Trustee Jatin Patel Jatin Patel Independent Trustee Mark Harrison Nathan Townsend *Denotes full time sabbaticals Senior Management Team

Craig Lithgow Chief Executive

Andy Proudfoot Director of Operations

Richard Parkin Director Of Finance Auditors Crowe U.K. LLP Statutory Auditor 49 - 51 Blagrave Street Reading Berkshire RG1 1PL

Bankers HSBC PO Box 41 High Street Uxbridge UB8 1BY

Solicitors Blandy & Blandy 1 Friar Street Reading Berkshire RG1 1DA

Solicitors (licencing) Poppleston Allen 37 Stoney Street The Lace Market Nottingham NG1 1LS



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REPORT OF THE TRUSTEES

The Charity Trustees present their annual report for the year ended 31 July 2018, which includes the administrative information set out on page 1, together with the audited financial statements for that year. Structure, Governance and Management The Union is structured by its Constitution & Governing Bye-Laws. The Union of Brunel Students is a democratic student led organisation which exists to represent its 14,000 member students to the University, the media and to other external organisations and bodies such as the NUS. In addition, we provide key support, various welfare services and a variety of sporting, cultural and development opportunities for all our members. Student democracy lies at the heart of all that we do but alongside this, we are a ‘not for profit’ organisation with all surpluses generated from various commercial activities committed and invested into providing and improving our services to our members. We are a registered charity primarily funded by an annual block grant to help us ensure that we can work together to provide a diverse and exciting array of support, services and development opportunities for the mutual benefit of our membership. The Union registered as a Charitable Incorporated Organisation (CIO) on 20 June 2017. A transfer agreement was signed by the Board of the previously unincorporated entity on 17 August 2017 transferring all the operations, assets and liabilities of that charity to the newly registered CIO on that date. In accordance with the requirements of SORP (FRS102), these accounts have been prepared under the merger accounting rules, combining the results of the merged entities for the entirety of the reporting period. The comparative numbers in these financial statements therefore relate to the previous unincorporated entity only. Reference throughout this document to the ‘the financial year 2018’ mean the CIO’s first financial year from incorporation on 20 June 2017 (including the activities of the precursor charity from 1 August 2017 under the merger-accounting rules of SORP (FRS102), Module 27) to 31 July 2018 and references to 2017 mean the calendar year to 31 July 2017. The President and five Vice-Presidents (Student officers) are annually elected and mandated to create and set union policy whilst also being strategically responsible for the direction and lead of all union activity. The Trustee Board, which is currently made up of the President, five Vice-Presidents, four elected Student Trustees and four External Trustees have responsibilities for the financial and legal compliance of the Union. The various members of staff employed by the union are so employed to help, support and advise the officers so that they can fulfil their specific duties within their various roles/portfolios. New trustees received training from the National Union of Trustees, generic to charity trustee responsibilities and specific to the role of Trustees within the student union movement. New trustees also have access to our trustees drop box with reference material from the charities commission and other relevant information.



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The Student Officers are held to account by an elected Student Assembly who oversee the decision-making functions of the Union. Student Assembly works in conjunction with Annual Union Meeting holding powers to approve general policy, ratify union budgets and mandate the Officers in particular areas of work. The membership of Student Assembly is made up of the Student Officers, 10 Executive Committee members, 2 elected positions available from every academic department, 15 elected Community Students and 15 independent jury members each meeting. Charity law requires the Trustee Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Union and of the surplus or deficit for that year. In preparing the financial statements the Trustee Board is required to select suitable accounting policies and then apply them on a consistent basis, making judgements and estimates that are prudent and reasonable. The Trustee Board must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Union will continue to operate. The Trustee Board is responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the Union. It is also responsible for safeguarding the assets of the union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Key Management remuneration The remuneration of key management personnel is set by the Board, with the policy objective of ensuring that they are provided with appropriate incentives to encourage enhanced performance and are, in a fair and responsible manner, rewarded for their individual contributions to the Union’s success. The appropriateness and relevance of such remuneration reviewed annually, including reference to comparisons with other Unions to ensure that the Union remains sensitive to the broader issues of pay and employment conditions elsewhere.

Relationship with Brunel University The relationship between the University and the Union is recorded in the regulations of the University and detailed in the Union constitution; both approved by both organisations. The Union receives a block grant from the University and part-occupies a building owned by the University. Various Union Officers hold seats on several University governing committees, including University Council and Senate, thus ensuring the voices of students are represented at the top level meetings. There is no reason to believe that any sort of support will cease to exist from the University for the foreseeable future not only due to the imposed duty as outlined in the Education Act of 1994 on Universities safeguarding Student Unions, but also due to the healthy working relationship which exists and constantly is being developed between the University and the Union.



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Risk Management The Trustees have undertaken to examine the major risks that the Union faces. That review is an integral part of the annual planning cycle. The Union has, and continues to develop, systems to monitor and control these risks in order to mitigate any impact that they have on the Union and its operations. The principal risks and uncertainties currently facing the Union are considered to be:

Risk of cuts to University funding of the Union, caused by either perception of value of

the Union or the universities own financial sustainability.

The financial health of the University is itself dependent on HEFCE funding, which in

turn is susceptible to factors beyond the control of the Union, such as academic

offering, NSS survey results, affordability driven by fees level and other demographic

factors.

Significantly increasing pension liabilities that the Union has no control over.

Reputational damage in the unlikely event of a high profile activity by a student, officer

or trustee.

Lack of adherence to the Unions strategic plan

Failure to be seen by students or the university as the voice of students

Our plans and strategies for managing risk include maintaining effective internal controls, risk registers, incident-reporting and monitoring systems and insurance cover wherever appropriate. STRATEGIC REPORT Our Purpose The Union exists to ensure that every Brunel Student has the opportunity to enjoy, challenge, influence and benefit from all aspects of their studies and the wider student experience. Our Mission We deliver on our core purpose through 4 main areas of operation:

1. Advice and Support

2. Student Voice

3. Student-led Activities

4. Commercial Services

Our Values

Membership Driven

Ambitious

Empowering

Accessible

Integrity



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In 2016/2017 the Union identified key priorities when the new strategic plan was developed. The following themes were identified: Our Strategic Themes

Create a culture of sustainability

Enhancing students’ every day needs

Clearly demonstrating the real benefits of Union engagement

Tackling non-completion

Ensuring students are genuine partners in academic decision-making

Achievements and Performances The Union exists to improve the lives of students at Brunel University London and influence policies and decisions of the institution. This academic year has seen us complete a number of significant projects and campaigns which will aid in us achieving our strategic objectives as described in our strategic themes. There are five strategic themes and below is outlined some of our key achievements this year within each theme. Strategic Theme 1: Ensuring students are genuine partners in academic decision-making Rep review The “Student Rep Project” at Brunel University is a shared ownership project between Brunel University London and the Union of Brunel Students. The project has been in operation in its current form since November 2014, and started implementation in the 2015/16 Academic Year. In November 2014 the Union received funding to restructure academic representation structures at Brunel University. This project has now come to its conclusion and we produced a report on successes and challenges and have agreed a set of recommendations with Brunel University London for continual improvement moving forward, we will continue the project empowering Student Reps to listen and act on the feedback that they receive from their peers, in collaboration with other stakeholders including our Union Officers, Union Staff and the University. This action will continue to be evidence-based and create a culture where Student Reps are seen as responsive and important within their colleges and departments. The project will be sustainable into the future, where Student Reps understand their role and where they sit within a larger system of Academic Representation at Brunel University. The following principle recommendations were identified:

1) Create a Committee of key leaders from the University and Students’ Union.

2) Create Criteria for Project Success by 2021.

3) Create a Training Package for University Staff

4) Create a process of using Elections, Mergers and Sortition to fill Student Rep

Posts

5) Create a sharing platform for Student Rep data

6) Create an Annual Student Rep Report

7) Create an Online Student Rep Communication Platform

8) Commission a Sector Expert to lead our Three Year Review in 2021.



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Access and participation plan The Higher Education landscape is changing and HEFCE has been replaced by the Office for Students. The university had to submit their application to be on the university register and the Union, in partnership, provided a robust Access and Participation document for this. Involvement in university appointments and strategy. This year we have seen a strengthening of our partnership with the university.

The SU influences the major decisions on campus and includes significant appointments

of the university including the Provost, the PDC Director.

Presentations to university council: We presented the impact of our free sport and

Active@Brunel projects and demonstrated their link to the decrease in attrition rate by

engaging with the Union. This level of formal presentation was well received and led to

the Union receiving another £200K ring-fenced for sports for the next academic year.

Strategic Theme 2: Tackling non-completion Student success project The Union has worked closely with the University on the Student Success Project. The Student Success Project works to ensure that all Brunel students have equal opportunities in succeeding during their time at Brunel, particularly in their academic attainment. The BAME attainment gap was highlighted as a key issue and, in partnership with the University, the Union helped to outline the four key areas of focus for the project: awareness, assessment and curriculum, retention, and support and sense of belonging. These four key areas were chosen from focus groups with students, held during the first year of the project, to understand the barriers different students faced in their academic experiences. More of the work can be found at https://www.brunel.ac.uk/about/student-success. Liberated Library Campaign One of the core outcomes of the student success project this year was the Liberated Library Campaign which focused on diversifying our library and offer new books by authors from the global south, people of colour, female, LGBT+, and disabled authors. This enhanced the student experience when accessing the library, whilst also liberating student’s education away from standard white male and Eurocentric reading lists. Free sport membership and Active@Brunel relation to attrition rate The core drivers of the free sport membership program were to enable students to fully participate in the sports program by removing the financial barrier, getting more students active, improve mental and physical well-being of students and with this lower the attrition rate. Working together with the Planning Department and the Pro-Vice Chancellor Education we looked at the potential link between student engagement and attrition. The university total attrition rate for first year for the academic year 2016-2017 is 13.0%. This rate increases to 13.7% for students who are not engaged with the Union at all. Attrition rate drops down to 7.5% for students who are society members of the Union and this number decreases further to 4.2% when students are sports members. This shows that students who engage are less likely to drop-out of University. When this data is broken down by student characteristics like gender and ethnicity, the pattern is the same. For disability, age and polar area, the numbers are too small to conduct appropriate analysis. However, the pattern for all characteristics is the same: Those students who engage (with societies, sports, or both) are less likely to drop-out of University in their first year.

https://www.brunel.ac.uk/about/student-success



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Strategic Theme 3: Clearly demonstrating the real benefits of Union engagement Free sport membership and Active@Brunel Moving sports club memberships to a free to use system this year resulted in 2601 members actively participating in sports at Brunel and this is a 34% increase on 2017. The overall aim of the project is to increase participation in sports, whether it is competitive sport or being active and to increase well-being of our members. The financial barrier was removed by allowing students to pay one Union sports membership of £33.00 which gives them access to all sport clubs (TeamBrunel) as well as drop in sessions outlined in the Active@Brunel program. A survey was held amongst our sport members and the results show that free sport club membership and Active@Brunel have had a positive impact on the student experience. Students feel less stress at university, they feel better about themselves, sport greatly enhances their social life and they try new activities they normally wouldn’t be able to. For Active@Brunel, the experience of students with the program is positive, the range of activities on offer is evaluated as good as well as the quality of the instructors. The sessions in Active@Brunel are run by ‘Activators’. These are students working part time and when surveyed have reported that they have developed leadership skills, interpersonal skills, it has enhanced their self-confidence and significantly enhanced their CV and career prospects by this opportunity. Events and Campaigns The Union holds several events throughout the year to celebrate differences in culture across campus and this year we had a number of successful events engaging with more students than ever before. These are the highlights:

Eid

Diwali

Navratri

Christmas Market

Holi

Women in Leadership Conference

One World Week (OWW)

The Union also held several campaigns throughout the year often to raise awareness. The

highlights of this year were:

Alcohol and Drug awareness week

World Mental Health Day and Mindfulness Month

Islamophobia Awareness Month (IAM)

Black History Month

South Asian Culture Week

Sexual Health and Guidance week



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Strategic Theme 4: Enhancing students’ every day needs Best Bar None Award The scheme changed significantly this year with core criteria being strengthened and a much more evidential assessment being undertaken, including thorough assessment of our staff training. Under the new more challenging criteria this year we have managed to attain Gold level accreditation. This is the 11th year we have been accredited under the scheme. Green Impact This year we have been accredited yet again with NUS Green impact award demonstrating a solid commitment to reducing our environmental impact. This year we have also seen the more positive approach to students led this year initiatives on environmental impact and major projects included:

Placing our own bee hives on campus.

Moving from plastic to paper straws in our venues

Transitioning to fully recyclable coffee cups

Holding a Green Week Campaign

Accommodation negotiations We have long coveted a situation where halls rents are agreed long in advance so that students, particularly returners, know the expectations on their finances prior to signing any agreement or paying any deposit. To this end we have agreed with the University a set of overarching principles around rent setting which should enable us not to have to go back to square one every year. We negotiated rent to be frozen for standard rooms for 2017-2018, and we also encouraged the University to introduce tiered pricing to acknowledge the significant differences in standards of the en-suite facilities across campus. We agreed on annual inflationary increase from 2018-2019 preventing significant or perceived unjustifiable increases over the next 3 years. We are also in discussions around the level of access to accommodation bursaries over the next 3 years and the level of discount to mitigate against significant noise and disruption around the demolition of the John Crank building and the erection of the new Learning and Teaching Centre at the heart of the campus. Library Wins The University’s challenging economic forecasts led to significant cuts across the board at the beginning of the academic year. The Union has lobbied to prevent drastic Library cuts and was successful in reintroducing almost 300,000 pounds back into the Library service. Furthermore, the opening hours of the library during Easter time were extended. Accessibility Campaign Our Disabled students’ officer has worked together with the President to improve accessibility for disabled students on campus. A special audit took place in November called “a day in a wheelchair” where the campus accessibility was assessed together with the Deputy Vice-chancellor, Deputy Director of Estates, staff from catering, accommodation, AV and technology. This led to an overview of maintenance projects including costs. This necessity of this work was recognized by the university and significant funding was granted to work on the accessibility issues and this maintenance is still ongoing



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Brunel Bikes From the 6th of November until 8th of December the crowdfunding for the Santander University cycle competition took place. In these weeks, just over £85,000 was raised which made us one of the national winners and helped us get our very own cycle hire scheme in partnership with Santander and Next Bikes. This scheme will help our student population for years by providing them with a new, affordable and green mode of transport. Strategic Theme 5: Create a culture of sustainability Incorporation The incorporation process that was started last academic year has now been finalized and completed. The Union of Brunel Students is officially a Charitable Incorporated Organization with a new Charity Number 1173492. Infrastructure and facilities The University is looking at their long term funding for facilities development and have tasked the Estates department to budget over a considerably longer period than they currently are. We have produced a document detailing our requests which currently add up to around £460,000. The highlights of these requests include new office suite provision in the Atrium to develop a front facing interactive space for Student representation, a new entrance to the Union from the Quad to better service the office areas, and the development of our office suite into a modern open plan environment. We have also requested finances to create gender neutral toilet provision within the Hamilton centre too. Furthermore, we have put a speculative ten year proposal on major investment in relocating the Union to a new facility (possibly the current sports centre) dedicated solely for the purposes of Union activity rather than the current shared model. Other notable activities: TEDxBrunel For the first time in history, Brunel had its own TEDxBrunel led by Union Officers. The main point of holding this event was to empower our students to share their ideas with a global audience. This event took place for the first time at Brunel, was student-led and was a great success. Seven internal speakers (students and staff) and 5 external speakers shared their ideas on the topic “The Future of Us”. For this, the Union venue was used and this project was a real collaboration between the Union and the University. We are lobbying that this will now become an annual student led event. Hosting of BUCS Cross Country We hosted the British Universities and colleges Sport (BUCS) Cross Country Championships where 2000 participants from teams from all over the country took part. The event was a brilliant collaborative effort with our Student Activities team taking the lead on the delivery alongside the BUCS events teams. South Asian Culture Week (National Award) This campaign was recognized on a national level where an independent panel determined this campaign to be “National Campaign of the Year” at the NUS International students conference. QSU This year we started on the process of working towards the Quality Students’ Unions (QSU) accreditation which is the development framework to support organisational quality in students’ unions. QSU supports unions to plan for and assess continual improvement, benchmark their activities and services within the sector, reflect on progress and celebrate achievement. We will use their criteria for continuous improvement.



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BUCS nomination Our commitment to affordable sport was recognised with a nomination for campaign of the year at the BUCS awards Looking to the future – Our plans for 2018/19 “The Union exists to ensure that every Brunel student has the opportunity to enjoy, challenge, influence and benefit from all aspects of their studies and the wider student experience.” We aim to continuously build on work we have done in previous years and develop new activity around 3 key themes: Wellbeing - Mental health is currently at the top of the agenda for Vice-Chancellors across the country and is one of the biggest challenges facing the education sector. Students facing mental health issues, suicide rates and drop outs due to mental health have risen to record levels. The University is providing a range of services to support students with mental health issues, however there remains a need to address the root cause. Wellbeing encompasses the state of being comfortable, healthy, or happy. As such the recommendation is that we focus on improving student’s wellbeing in order to improve student mental health. Key activities will be centred around:

Create more mental health awareness activities and peers supporting systems… plus improve the counselling scheme and promote the student centre wellbeing programme and activities

Share the culture and traditions of all our community, creating better understanding of each other’s beliefs and traditions and breaking down perceived social and cultural barriers

Developing our strong social sport programme tapping into the researched and evidenced wellbeing benefits of physical activity and social sport.

Equality of Opportunity Through Liberation – We believe a fair and just society with equality of opportunity is a corner stone of successful educational development, citizenship and community harmony. Our Liberation campaigns will go further still in providing a level playing field for all and tackling some of the key imbalances in our student community that are sadly still prevalent today. Our key focus will be on:

Improving the campus facilities and provide specific support for specialist funding and benefits advice for students with disabilities

Continuing with supporting innovative and ambitious activity to narrow the attainment gap that still exists for BAME students

To work on leadership and empowerment activity centred on Women and specifically Women in STEM subjects.

Preparing Students for Success – Our members want their University experience to put them in the strongest position to succeed post University. We have a responsibility to assist where we can and to push the University to provide strategies that make a Brunel student experience market leading. This year our effort will be on:

Developing Peer assisting Learning opportunities across all levels

Lobbying to protect library funding to benefit all students

Pushing the University to continue developing placement and work opportunities to strengthen Brunel Students employability



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Financial Review The Union’s gross income from all sources this year totalled £2,887,694 (2017: £2,679,792). Total expenditure of £2,785,764 (2017: £3,355,455) includes a decrease in the pension deficit contributions creditor of £66,261 resulting in a surplus for the year of £101,930 (2017: deficit of £675,663) and increasing the Union’s total reserves from negative £1,842,635 to negative £1,740,705. The Union has continued to benefit from the recognition and support of Brunel University with an annual block grant of £1,230,844. Reserves level and policy We have reviewed the Union’s reserves requirements. Excluding the pension deficit, free reserves stood at £354,836 (2017: £303,311) at the year-end. This position is after deducting from total unrestricted funds (excluding the pension scheme liability) of £470,347 the amount of £110,749 invested in our existing tangible fixed assets and an amount of £4,762 currently held as designated funds to finance the further development of student facilities over the next 2 years. The Union is currently affiliated to many organisations, our largest single subscription cost amounted to £50,125 (2017: £50,755) for the year to the NUS, and no donations were made during the year to any external institutions out of the Union’s own resources. The Risk committee have conducted a detailed review during the year of the free reserves requirement, and concluded that the 2 months operating costs (circa £400,000) is a sufficient amount to set aside to cope with any unexpected downturn in funding or additional calls upon cash resources without immediately curtailing existing activities. Current total funds of the Union stand at negative £1,740,705. This is comprised of negative £1,832,432 unrestricted funds, £4,762 in designated funds and £86,965 in restricted funds. As per the trustee’s policy, the Union considers its reserves position against ‘cash in hand’ balance (bank & cash balances minus current liabilities), and this stood at £328,430 at the year-end. In respect of any surplus or deficit recognised in relation to the Union’s share of the SUSS Pension Scheme, this would generally result in a cash flow effect for the Union in the form of an increase or decrease in employer’s pension contributions over a number of years. The deficit of £2,298,017 recognised in this year’s accounts does not represent an immediately realisable liability that requires payment but will be funded over more than 14 years from the Union’s future incomes. Custodian Activities: Clubs’ & Societies’ Funds and the annual RAG The Union acts as custodian for funds raised by the students’ many Clubs & Societies themselves, amounting to £86,965 (2017: £76,269) at the year-end, in addition to the grant-support funds it disburses to them as shown in the accounts. The Union is also custodian of the annual RAG proceeds from fundraising events organised by the students under the Union’s auspices for distribution to the intended charities. Funds raised by this year’s RAG amounting to £15,642 (2017: £8,924) less costs of £867 (2017: £370) were added to the undistributed balance of £1,856 (2017: £5,959) from the previous year, out of which £14,427 (2017: £12,657) was distributed among the charities nominated by the RAG Committee, leaving a balance of £2,204 (2017: £1,856) in hand for next year’s RAG. No funds have subsequently been donated after the year end to charities. The remaining cash funds are held by the Union. Future Funding The Charity Trustees confirm that the union has sufficient funds to meet all its obligations. The core Block Grant for 2018/19 has been confirmed at £1,267,769. A restricted grant of £200,000 has been received to facilitate free sport club memberships and free Active@Brunel fitness and



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introductory sports sessions for staff and students on campus. Additionally a catering compensation agreement payment of £92,410 has been received. Trustees’ Responsibilities The Trustees (who are also directors of the charitable company for the purpose of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under company law the trustees must not approve the financial statements unless they are satisfied they give a true and fair view of the state of affairs of the charitable company and of its net incoming resources for that Year. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgments and accounting 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 to operate.

The Trustees are responsible for keeping accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and regulations made thereunder. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. PROVISION OF INFORMATION TO AUDITORS

The Trustees at the time when this Trustees' Report is approved have confirmed that:

so far as the Trustees are aware, there is no relevant audit information of which the Union's auditors are unaware, and

the Trustees have taken all the steps that ought to have been taken as the Trustees in order to be aware of any information needed by the Union's auditors in connection with preparing their report and to establish that the Union's auditors are aware of that information.

This report was approved by the board and signed on its behalf by: ………………………………………… Ranjeet Rathore President and Chair of the Trustees Dated:



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Independent Auditor’s Report to the Trustees of the Union of Brunel Students

Opinion

We have audited the financial statements of the Union of Brunel Students for the period ended 31 July 2018 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cashflows and the Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charity’s affairs as at 31 July 2018 and of its incoming resources and application of resources, including its income and expenditure for the period 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 Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.



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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or

sufficient accounting records have not been kept; or

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

https://www.frc.org.uk/auditorsresponsibilities



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Use of our report This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

[This report has not yet been signed]

Crowe U.K. LLP

Statutory Auditor

Reading

Berkshire

Date:



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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR (including income and expenditure account)

Notes Unrestricted

Fund

Designated

Fund

Restricted

Fund

Total

2018

Total

2017

Income £ £ £ £ £

Donations:

- Grant income 4 1,321,000 - 234,000 1,555,000

1,283,000

- Other grants and donations 4 300,000 - - 300,000 300,000

Other trading activities:

- Advertising & marketing 79,827 20,336 - 100,163 93,291

Investment income 2,062 - - 2,062 927

Charitable activities for students:

- Bar & catering 612,935 - - 612,935 728,991

- Entertaining 135,459 - 9,294 144,753 180,271

- Transport - - - - 3,503

- Societies & clubs -

- 124,549 124,549 56,944

Other income 48,232 - - 48,232 32,865

Total income 2,499,515 20,336 367,843 2,887,694 2,679,792

Expenditure

Raising Funds:

- Advertising and marketing 153,956

37,113 - 191,069 334,498

Charitable Activities for students:

- Advice, welfare & representation 206,542 - 36,458 243,000 516,265

- Student activities 361,065 - - 361,065 303,369

- Bar & catering 993,688 - - 993,688 1,183,418

- Entertainment 198,830 - - 198,830 397,564

- Transport 32,728 - - 32,728 165,042

- Societies & clubs 399,064 - 366,321 765,385 589,556

- Community project - - - - 7,745

Total expenditure 5 2,345,872 37,113 402,779 2,785,764 3,355,455

Net income/(expenditure) 153,643 (16,777) (34,936) 101,930 (675,663)

Transfer between funds

13 (45,632) - 45,632 - -

Net incoming resourses after transfers 108,011 (16,777) 10,696 101,930 (675,663)

Fund balances brought forward (1,940,443) 21,539 76,269 (1,842,635) (1,166,972)

Fund balances carried forward (1,832,432) 4,762 86,965 (1,740,705)

(1,842,635)

The notes on pages 19 to 32 form part of these accounts



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BALANCE SHEET

Charity number: 1142839

2018

2017

Notes

£ £ £ £

Fixed assets

Tangible fixed assets 8 110,749 120,524 Current assets

Stocks 9 36,317 28,110 Debtors 10 81,816 102,394 Cash at bank & in hand 448,892 417,502

567,025 548,006

Current liabilities Creditors: Amounts due within one year

11

(120,462)

(146,887)

Net current assets 446,563 401,119 Net assets excluding pension liabilities

557,312

521,643

Pension scheme funding deficit 17 (2,298,017) (2,364,278)

Total net liabilities (1,740,705) (1,842,635) Representing Charitable Funds:

Restricted income funds

Students’ Societies & Club Funds 13 85,608 72,454 Students representation fund 13 1,357 3,815 Sports Fund 13 - -

86,965 76,269 Unrestricted income funds Free reserves (Undesignated) 465,585 423,835 Pension reserve (2,298,017) (2,364,278) Special projects reserve 13 4,762 21,539 (1,827,670) (1,918,904)

Total deficit 14 (1,740,705) (1,842,635)

The financial statements were approved by the Trustees and signed on their behalf, by: Ranjeet Rathore UBS President and Chair of the Trustees

Date: The notes on pages 19 to 32 form part of these accounts.



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STATEMENT OF CASH FLOWS

2018 2017 £ £ Cash flows from operating activities:

Net income/(expenditure) 101,930 (675,663)

Depreciation 53,947 26,174

Interest received (2,062) (927)

Interest paid 4,906 4,642

(Increase) in stock (8,207) (5,530)

Decrease in debtors 20,578 40,521

(Decrease)/Increase in pension deficit (66,261) 585,009

(Decrease) in creditors (26,425) (13,344)

Net cash generated by/(used in) operating activities

78,406

(39,118)

Cash flows from investing activities

Interest receivable 2,062 927 Purchase of tangible fixed assets (44,172) (99,624) Proceeds from sale of fixed assets - -

Net cash used in investing activities (42,110)

(98,697)

Cash flows from financing activities

Interest paid (4,906) (4,642)

Net cash used in financing activities (4,906) (4,642) Change in cash and cash equivalents in the year 31,390 (142,457) Cash and cash equivalents at the beginning of the year 417,502 559,959 Total cash and cash equivalents at the end of the year £ 448,892 £ 417,502 2018 2017 £ £ Cash at bank and in hand £ 448,892 £ 417,502

The notes on pages 19 to 32 form part of these accounts.



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NOTES TO THE ACCOUNTS

1 Charity Information

The Union’s principal activities are campaigning, representation, provision of social activities and the organisation of sporting and recreational activities and opportunities. Union of Brunel Students is a charitable incorporated organisation (CIO) registered in the UK (Charity registration no. 1173492). The address of the principal office is Cleveland Road, Uxbridge, Middlesex, UB8 3PH.

The Union of Brunel Students registered as a Charitable Incorporated Organisation (CIO)

on 20 June 2017. A transfer agreement was signed by the Board of the previously unincorporated entity on 17 August 2017, transferring all the operations, assets and liabilities of that charity to the newly registered CIO on that date. In accordance with the requirements of the SORP (FRS102), these accounts have been prepared under the merger accounting rules, combining the results of the merged entities for the entirety of the reporting period. The comparative numbers in these financial statements therefore relate to the previously unincorporated entity only.

The principal SOFA components pre and post-merger are as follows:

Union of Brunel

Students Pre-merger

Union of Brunel

Students Post-merger Total

£ £ £

Total Income 67,626 2,820,068 2,887,694 Total Expenditure 94,626 2,691,138 2,785,764

Net Movement in Funds (27,000) 128,930 101,930

2 Accounting Policies

(a) Accounting convention The financial reporting framework that has been applied in the preparation of these accounts is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102 “the Financial Reporting Standard applicable in the UK and Republic of Ireland”, and the 2015 Charities Statement of Recommended Practice based thereon – the Charities SORP and the Companies Act 2006. Union of Brunel Students meets the definition of a public benefit entity under FRS 102

(b) Going concern

The charity has cash resources and is supported by Brunel University. The trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. There are no material uncertainties about the charity’s ability to continue and so they continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.



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(c) Income

All incoming resources are included in the statement of financial activities when the Students' Union is legally entitled to the income, receipt is probable and the amount can be quantified with reasonable accuracy. Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the Students' Union where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers. Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.



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(d) Expenditure

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Expenditure includes irrecoverable VAT. Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Governance costs are those incurred for compliance with constitutional and statutory requirements, such as the annual audit, annual elections and training for sabbatical officers. The value of free serviced campus accommodation is apportioned on estimated floor space occupied. Other central overhead costs are apportioned to charitable and other projects/activities on a usage basis, pro rata to the total costs of each project or activity undertaken. Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

(e) Tangible fixed assets

Fixed assets are capitalised if over £500 and are stated at cost less accumulated depreciation. Depreciation is provided at the following annual rates in order to write the cost of assets off over their estimated useful lives:-

Fixtures and Fittings - 20-25% per annum straight line. IT & Hi-tec equipment - 33% per annum straight line. Motor vehicles - 33% per annum straight line.

(f) Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid

investments with a short maturity of 3 months or less from the date of acquisition or opening of the deposit or similar account.

(g) Debtors Short term debtors are measured at transaction price, less any impairment. (h) Creditors Short term creditors are measured at transaction price. (i) Pension costs Union of Brunel Students participates in the Students’ Union Superannuation

Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to Union of Brunel Students.



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Pension costs (continued) However the Union has entered into an arrangement to clear the scheme deficit

over a 20 year period. The Net Present Value of Union student union’s contributions as part of this plan are reflected as a liability on the balance sheet, which will reduce as they are paid.

The Union now operates a defined contribution pension scheme and the pension

charge represents the amounts payable by the Union to the fund in respect of the year. Differences between contributions payable in the year and paid are shown as accruals or prepayments in the balance sheet.

(j) Leased assets Rentals payable under operating leases are charged as expenditure on a straight

line basis over the period of the lease.

(k) Stock Stock is valued at the lower of the cost and its net realisable value after making due

allowance for obsolete and slow-moving stocks.

(l) Fund accounting

(i) Unrestricted Funds General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Students' Union and which have not been designated for other purposes

(ii) Designated Funds Designated funds comprise unrestricted funds that have been set aside by the Trustee for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements

(iii) Restricted Funds raised and administered by the Union for specific

purposes as determined by students, such as Club and Societies Accounts, as well as revenue received for purposes specified by the donor. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(m) Taxation

No provision is made in these accounts for corporation tax as the Union is exempt from such taxes as a result of its charitable status.

(n) Termination benefits

Termination benefits are accounted following a commitment by legislation, by contractual or other agreements with employees to make payments (or provide other benefits) to employees when the Union terminates their employment.



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(p) Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as

basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3 Critical areas of judgement Preparation of the financial statements requires management to make judgements and

estimates.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are that of the SUSS pension scheme deficit. A discount rate of 2.5% has been used in line with industry standards.

4 Voluntary Income

2018 2017 £ £ Block grant 1,230,844 1,250,000 Student representation grant 34,000 33,000 Free sport grant 200,000 - Catering contract compensation 90,156 - Grant for rent in kind 300,000 300,000

1,855,000 1,583,000

The University provides rent-free accommodation to the Union under the Charities SORP the ‘donations in kind’ must be valued and included within the accounts. The value to the Union is considered to be £300,000 and is included as ‘Grant for rent’ above.



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5(a) Charitable and other Activity costs Cost of

sales Staff costs

Rent

Other costs

Total

Total 2017

£ £ £ £ £ £

Activities for generating funds

Advertising & marketing - 77,801 17,248 96,019 191,068 334,498 Charitable activities

Advice, welfare & representation

- 181,873 27,224 33,903 243,000 516,265

Student Activities - 176,111 40,452 144,502 361,065 303,369 Bar & catering 202,806 506,869 111,327 172,686 993,688 1,183,418 Entertainment 60,667 83,591 22,276 32,296 198,830 397,564 Transport - 7,616 3,667 21,445 32,728 23,040 Societies & Clubs - 287,179 77,806 400,400 765,385 589,556

Community Projects - - - - - 7,745 Total costs 263,473 1,321,040 300,000 901,251 2,785,764 3,355,455

Included in the above costs is the annual audit fee of £14,350 (2017: £14,000)

Affiliation fees are: 2018 2017

£ £

BUCS 10,160 9,084 NUS 50,125 50,755 60,285 59,839


ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2018

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5(b) Central Overhead Costs included in Note 5(a)

Staff Rent Other Total

Usage £ £ £ £

Activities for generating funds

Advertising & marketing 5.7% 35,829 17,248 17,104 70,181 Charitable activities Advice, welfare & representation 9.1% 56,552 27,224 26,996 110,772 Student Activities 13.5% 84,028 40,452 40,113 164,593 Bar & catering 37.1% 231,254 111,327 110,394 452,975 Entertainments 7.4% 46,272 22,276 22,089 90,637 Transport 1.2% 7,617 3,667 3,636 14,920 Societies & Clubs 25.9% 161,622 77,806 77,154 316,582 Totals 100% 623,174 300,000 297,486 1,220,660

6 Staff Costs 2018 2017

£ £

Wages and salaries 1,075,715 1,197,246 Social security 84,190 90,838 Pension costs 158,789 718,054 Other staff costs 2,346 59,272 1,321,040 2,065,410

The number of employees whose emoluments (excluding pension contributions) exceeded

£60,000 during the year were as follows:

£60,001 - £70,000 - 1 £70,001 - £80,000 1 -

Pension contributions totalled £4,302 for the above higher paid employee. The key management personnel of the Union are the Trustees and the Senior Management

Team. The aggregate employee benefits of key management personnel was £321,592 (2017: £359,381). The average staffing was as follows:-

Permanent staff 35 40 Students – term time only 35 36

Redundancy payments of £7,091 (2017: £24,500) were made during the year. Amounts were settled during the financial year.



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7 Trustees’ Remuneration and Expenses Sabbatical officers are paid as authorised in the Union's governing document, for the

representation, campaigning and support work they undertake as distinct from their trustee responsibilities. This work included voicing student opinion with the University and local community, defending and extending the rights of students through petitions etc. and also organising and supporting student volunteers and service provision for them.

The total salary and social security costs for the sabbatical officers amounted to £129,456 (2016/17: £126,730). Full time sabbatical officers in post were paid a salary of £20,943 (2016/17: £20,438) for 11 months of the year whilst the new Sabbatical officers were paid £3,407 (2016/17: £1,858) for two months of the year, with the Postgraduate Officers being paid for a part-time role paid on a pro-rata basis.

7 (2016/17: 6) trustees were reimbursed a total of £812 (2016/17: £1,635) in connection with their duties during the period. The expenses reimbursed during the year related to training and attendance at conferences and meetings.

8 Tangible Fixed Assets

Fixtures &

fittings IT and Hi-tec

equipment Total £ £ £

COST

At 1 August 2017 230,805 267,994 498,799 Additions 40,260 3,912 44,172 Disposals (91,214) (196,758) (287,972)

At 31 July 2018 179,851 75,148 254,999

DEPRECIATION At 1 August 2017 135,535 242,740 378,275 Charge for the year 36,231 17,716 53,947 On disposals (91,214) (196,758) (287,972)

At 31 July 2018 80,552 63,698 144,250

At 31 July 2018 99,299 11,450 110,749

At 31 July 2017 95,270 25,254 120,524

9 Stock 2018 2017

£ £

Bar and shop stock 36,317 28,110



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10 Debtors

2018 2017 £ £

Trade debtors 29,332 14,828 Other debtors 7,289 36,671 Prepayments & accrued income 45,195 50,895 81,816 102,394

11 Creditors: Amounts due within one year

2018 2017 £ £

Trade creditors 6,502 7,910 Social security & other taxes 22,314 20,897 Other creditors 7,384 29,549 Accruals & deferred income 84,262 88,531 120,462 146,887

Deferred income 2018 2017

£ £ Balance as at 1st August 2017 34,000 - Amounts released to income in the year (34,000) - Amounts deferred in the year 24,943 34,000 24,943 34,000

Deferred income includes receipts relating to the subsequent period, being a grant for student representation.



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12 Financial instruments

2018 2017 £ £ Financial assets Financial assets measured at amortised cost 479,726 459,610

Financial liabilities Financial liabilities measured at amortised cost 96,891 91,985 Financial liabilities measured at fair value 2,298,017 2,364,278

Financial assets measured at amortised cost comprise cash, trade debtors, accrued income and other debtors.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals. Financial liabilities measured at fair value comprise the pension scheme funding deficit.

Financial assets give rise to interest received of £2,062 and financial liabilities give rise to interest cost of £23,742.

The transfer from unrestricted funds to restricted funds represents money spent by the Union on the Sports Fund over and above the restricted income received.

13 Fund Analysis

As at 31 July 2017

Incoming resources

Resources expended Transfers

As at 31 July 2018

£ £ £ £ £ Unrestricted Funds Free reserves (Undesignated) 423,835 2,499,515 (2,412,133) (45,632) 465,585

Pension Reserve (2,364,278) - 66,261 - (2,298,017)

Special projects reserve 21,539 20,336 (37,113) - 4,762

(1,918,904) 2,519,851 (2,382,985) (45,632) (1,827,670) Restricted Funds Students’ Societies & Club Funds 72,454 84,055 (70,901) - 85,608 Students representation fund 3,815 34,000 (36,458) - 1,357

Sports Fund - 249,788 (295,420) 45,632 -

Total Funds (1,842,635) 2,887,694 (2,785,764) - (1,740,705)



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14 Analysis of Net Assets between Funds Unrestricted

Funds Restricted

Income Funds

Total £ £ £

At 31 July 2018 Fixed Assets 110,749 - 110,749 Current assets 480,060 86,965 567,025 Current liabilities (120,462) - (120,462) Pensions (2,298,017) - (2,298,017) (1,827,670) 86,965 (1,740,705)

As at 31 July 2017 Fixed Assets 120,524 - 120,524 Current assets 474,091 76,269 550,360 Current liabilities (149,241) - (149,241) Pensions (2,364,278) - (2,364,278) (1,918,904) 76,269 (1,842,635)

15 Control Relationship The Union is controlled by the Board of Trustees which is subject to democratic election by

the voting membership of the Union. The ultimate control of the Union is vested under the constitution in the membership in General meeting. As such no single person or entity controls the Union.

16 Related Parties The Union is in receipt of a recurrent grant from Brunel University of £1,264,844 (2017:

£1,283,000). A further grant of £200,000 has been received to facilitate free sport club membership.

In addition the Union occupies its building on a rent free basis under an informal license

subject to the union maintaining the building in a good state of repair. A notional value for rent in kind is included in the accounts and amounted to £300,000 (2017: £300,000).

Following a review of the catering provision at the University, a new contract was signed

between the University and the Union whereby the Union has received compensation of £90,156.

The Sabbaticals of the Union are the members of the Trustee Board and receive

remuneration for their services as provided for within the Constitution. Whilst basic pay is consistent for these 4 paid Trustees, the amounts paid are variable due to holiday pay. The remuneration included in the accounts are noted in note 7.

The amount due from Brunel University at the year-end was £1,949 (2017: £57).



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17 Pension Costs

The Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual. The most recent Valuation of the Scheme was carried out as at 30 June 2016 and showed that the market value of the Scheme’s assets was £101.3m with these assets representing 46% of the value of benefits that had accrued to members after allowing for expected future increases in earnings. The deficit on an ongoing funding basis amounted to £119.7m.

The assumptions which have the most significant effect upon the results of the valuation are those relating to the rate of return on investments and the rates of increase in salaries and pensions.

The following assumptions applied at 30 June 2016:-

The investment return would be 4.3% per annum before retirement and 2.3% per annum after retirement.

Pensions accruing on the CARE basis would revalue at 3.2% per annum.

Present and future pensions would increase at rates specified by Scheme rules with appropriate assumptions where these are dependent on inflation.

The 2016 valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 16 years and will increase by 20% from 1 October 2017 and by a further 5% in each subsequent year. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 2017 and will be formally reviewed following completion of the next Valuation due with an effective date of 30 June 2019. Surpluses or deficits which arise at future valuations will also impact on the Union’s future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension Protection Fund.

During the year the Students’ Union was made aware of a possible increase in SUSS's pension deficit. This will not impact the SU until a revised deficit funding contribution schedule has been agreed which will be following the next triennial valuation of the scheme.

A valuation of the scheme has not been formally completed and there remains various stages of consultation around the key factors specifically relating to the funding of the past deficit, including the level of contributions required, the period of the recovery plan and the level of asset performance over the period. It therefore remains appropriate to continue to account for the past deficit obligation in accordance with the agreed plan.



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17 Pension Costs (continued)

However, there is a significant risk that the year-end provision for the costs of the deficit funding as calculated will not reflect the position following the final outcome of negotiations, potentially by a very significant amount depending upon what is finally agreed as regards future deficit contributions and their duration. The Union expects to have greater clarity in this respect during the next financial year.

In accordance with FRS102, the net present value of the future contributions required over 17 years to clear the funding deficit is £2,298,017 (2017: £2,364,278). In calculating this net present value, a one off 20% increase and then annual increases of 5% have been made and a discount rate of 2.5% (2017: 2.5%) representing the typical yield of high quality corporate bonds has then been applied. The decrease in liability of £66,261 has been included in pension contributions for the year as part of the Union’s unrestricted funds.

The total contributions (including deficit contributions) paid into the Scheme by the Union in respect of eligible employees for the year ended 31 July 2018 amounted to £138,911 (2017: £114,072). Contributions are accounted for as part of the Union’s unrestricted funds.

Defined Contribution Pension Costs

The Union also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Union in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £17,977 (2017: £18,973). Contributions are accounted for as part of the Union’s unrestricted funds. Pension costs as disclosed in the Staff Costs note (note 6) also include Death in Service premiums.



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18 Comparative Statement of Financial Position

Unrestricted

Fund

Designated

Fund

Restricted

Fund

Total

2017

Income £ £ £ £

Donations:

- Grant income 1,250,000 - 33,000 1,283,000

- Other grants and donations 300,000 - - 300,000

Other trading activities:

- Advertising & marketing 93,291 - - 93,291

Investment income 927 - - 927

Charitable activities for students:

- Bar & catering 728,991 - - 728,991

- Entertaining 180,271 - - 180,271

- Transport 3,503 - - 3,503

- Societies & clubs 21,740 - 35,204 56,944

Other income 32,865 - - 32,865

Total income 2,611,588 - 68,204 2,679,792

Expenditure

Raising Funds:

- Advertising and marketing 303,925 30,573 - 334,498

Charitable Activities for students:

- Advice, welfare & representation 485,566 - 30,699 516,265

- Student activities 303,369 - - 303,369

- Bar & catering 1,183,418 - - 1,183,418

- Entertainment 397,564 - - 397,564

- Transport 23,040 - - 23,040

- Societies & clubs 529,622 - 59,934 589,556

- Community project - 7,745 - 7,745

Total expenditure 3,226,504 38,318 90,633 3,355,455

Net incoming resources for the year (614,916) (38,318) (22,429) (675,663)

Fund balances brought forward (1,325,527) 59,857 98,698 (1,166,972)

Fund balances carried forward (1,940,443) 21,539 76,269 (1,842,635)

UNION OF BRUNEL STUDENTS TRUSTEES REPORT AND … · August 2017 under the merger-accounting rules...

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