Warwick SU Accounts 2010-11

WARWICK STUDENTS' UNION

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the period from 29 June 2010 to 31 July 2011

COMPANY REGISTRATION NUMBER: 07297865

CHARITY NUMBER: 1136894

CONTENTS

PAGE

Legal and Administrative Information 1 - 6

Annual Report of the Board of Trustees 7 - 19

Statement of the Board of Trustees' Responsibilities 20

Independent Auditors' Report 21 - 22

Group Statement of Financial Activity 23

Balance Sheets 24

Consolidated Cash Flow Statement 25

Principal Accounting Policies 26 - 29

Notes to the Financial Statements:

Note 1 Charitable Activity and Support Costs 30 - 31

Note 2 Governance Costs 31

Note 3 Net Incoming Resources for the Period 32

Note 4 Staff Costs 32 - 33

Note 5 Trustees' Remuneration and Expenses 33

Note 6 Tangible Fixed Assets 34

Note 7 Capital Commitments 34

Note 8 Fixed Asset Investments 35 - 36

Note 9 Stocks 36

Note 10 Debtors 37

Note 11 Creditors 37

Note 12 Provisions for Liabilities and Charges 38

Note 13 Restricted Funds 38

Note 14 Designated Funds 38

Note 15 Analysis of Net Assets between Funds 39

Note 16 Lease Commitments 39

Note 17 Cash Flow Statement 40

Note 18 Pension Scheme 41

Note 19 Related Party Transactions 42

Note 20 Merger 43


For the period ended 31 July 2011

LEGAL AND ADMINISTRATIVE INFORMATION

UNION WARWICK STUDENTS' UNION

CHARITABLE STATUS Warwick Students' Union is a charitable company limited by guarantee.

Warwick Students' Union is a charity established under the Education

Act 1994.

Warwick Students' Union charity registered with the Charity Commission

for England and Wales on 15 July 2010.

Registered UK charity number: 1136894

COMPANY Warwick Students' Union is a charitable company limited by guarantee

registered in England and Wales on 29 June 2010.

Registered company number: 7297865

REGISTERED OFFICE WARWICK STUDENTS' UNION

University of Warwick

Gibbet Hill Road

COVENTRY

CV4 7AL

BOARD OF TRUSTEES Search and Nominations Committee ensures that Warwick Students'

Union has effective systems for the appointment and training of trustees

and that the membership of the Board of Trustees is appropriate.

Sabbatical Officers Appointed Resigned

2010-2011 D Stevens President / Chair 1 August 2010 31 July 2011

S Ruston Education 1 August 2010

S Stanley Finance 1 August 2010 31 July 2011

C Luck Communications 1 August 2010

A White Societies 1 August 2010 31 July 2011

G Whitworth Sports 1 August 2010

L Boe Welfare 1 August 2010

2011-2012 L Boe President 1 August 2011 re-elected

S Ruston Education 1 August 2011 re-elected

G Whitworth Union Development 1 August 2011 re-elected

C Luck Democracy 1 August 2011 re-elected

M Rogers Societies 1 August 2011

C Sury Sports 1 August 2011

I John Welfare 1 August 2011


For the period ended 31 July 2011 1

BOARD of TRUSTEES continued

UNIVERSITY of WARWICK STUDENTS' UNION Appointed Resigned

Student Trustees B Wood Vice Chair 24 November 2008 13 July 2011

S Stanley 24 November 2008 28 June 2010

A Clarey * 24 November 2008 28 June 2010

C Watts * 24 November 2008 28 June 2010

M Wassermann 16 February 2009 28 June 2010

External Trustees T Smeaton * 24 November 2008 31 July 2010

S P Baylis * 9 March 2009 13 July 2011

L C Morrison * 10 May 2010 31 July 2010

T W I King * 10 May 2010 31 July 2010

J Ryder * 10 May 2010 31 July 2010

On 1 August 2010 the trade, assets and liabilites transferred from University of Warwick Students'

Union (an unincorporated exempt charity) to Warwick Students' Union (an incorporated exempt charity).

The designated trustees also transferred to the new entity, Warwick Students' Union.

Board of Trustee members marked with an asterisk (*) transferred to Warwick Students' Union.

WARWICK STUDENTS' UNION Appointed Resigned

Student Trustees A Clarey 29 June 2010

C Watts 29 June 2010

T Evans 1 August 2010 13 July 2011

V N J Fowler 1 August 2010 13 July 2011

J L E Wolfson 1 August 2010

C Olgilvie 1 August 2011

A K S Mou 1 August 2011

S Cragg 1 August 2011




BOARD of TRUSTEES continued

WARWICK STUDENTS' UNION continued Appointed Resigned

External Trustees T Smeaton 1 August 2010

S P Baylis 1 August 2010 13 July 2011

L C Morrison 1 August 2010 12 October 2011

T W I King 1 August 2010

J Ryder 1 August 2010

SENIOR MANAGEMENT Appointed

Chief Executive J Clements 14 July 2008




COMPANY STUDENTS' UNION SERVICES WARWICK LIMITED

GOVERNING INSTRUMENT The company is a limited company with share capital. It is

governed by its Memorandum and Articles of Association.

COMPANY REGISTERED

NUMBER 2197761

DIRECTORS The following director was appointed on 1 August 2010 and

resigned on 31 July 2011:

S Stanley

The following director was appointed on 1st August 2010:

G Whitworth

The following director was appointed on 18 November 2010:

A H Smith

The following director was appointed on 1 August 2011:

C Sury

COMPANY SECRETARY J Clements

REGISTERED OFFICE SUHQ

Warwick Students' Union


Gibbet Hill Road

Coventry

CV4 7AL




COMPANY MEMBERSHIP SOLUTIONS LIMITED

GOVERNING INSTRUMENT The company is a limited company with share capital. It is

governed by its Memorandum and Articles of Association.

COMPANY REGISTERED

NUMBER 5525449

DIRECTORS The following director has held office since incorporation

2 August 2005:

C Horton

The following director was appointed on 29 November 2007:

S Gilling

The following director was appointed on 12 July 2008:

J Clements

The following director was appointed on 1 August 2009:

J Bonsall

The following directors were appointed on 1 August 2010 and

resigned on 31 July 2011:

D Stevens

S Stanley

The following directors were appointed on 1 August 2011:

L Boe

G Whitworth

COMPANY SECRETARY J Clements

REGISTERED OFFICE SUHQ

Warwick Students' Union


Gibbet Hill Road

Coventry

CV4 7AL





BANKERS NatWest plc

24 Broadgate

Coventry

West Midlands

CV1 1ZZ

Barclays Bank plc

25 High Street

Coventry

West Midlands

CV1 5QZ

SOLICITORS Band Hatton & Co

1 Copthall House

Station Square

Coventry

West Midlands

CV1 2FY

Bates Wells and Braithwate London LLP

2 - 6 Cannon Street

London

EC4M 6YH

AUDITORS BakerTilly UK Audit LLP

Chartered Accountants

St Philips Point

Temple Row

Birmingham

B2 5AF



ANNUAL REPORT OF THE BOARD OF TRUSTEES

The Board of Trustees of the Union submit their Annual Report for the period ended 31 July 2011

which includes the administrative information set out on pages 1 to 6 together with the audited

accounts for the year. This is the first year that the Board of Trustees have presented this in

accordance with the Accounting and Reporting by Charities published in March 2005 (Statement

of Recommended Practice 2005).

MEMBERS OF THE UNION

Full Members

All registered students of the University of Warwick except those who exercise their right not to be

a member under clause 22 (c) c) of the Education Act 1994. Sabbatical Officers of the Union are

full members of the Union.

Associate Members

Those persons admitted to membership by the Union Council or a delegated officer, who have paid

any required fee.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Warwick Students' Union (the Union) is constituted under the Education Act 1994 as a charity

with internal rules and regulations approved by University Council, the governing body of the

University of Warwick. The Union's charitable objects under the Act, to advance the University's

educational purposes by providing representation and support for the students of the University

of Warwick, are supplemented by the further object of helping members to develop their own

charitable activities as participants in civil society.

Following the publication of the Charities Act 2006, Warwick Students' Union has moved from the

traditional unincorporated association model and has registered as a charity with the Charity

Commission and incorporated as a company limited by guarantee, as of 1 August 2010.

BOARD OF TRUSTEES

The Union is administered by its Board of Trustees comprising of:-

- up to five appointed external lay members

- up to six appointed full student members who are not Sabbatical Officers

- up to seven student Sabbatical Officers (including the President of the Union)

The President of the Union acts as Chair of the Board of Trustees.

The appointed Student Trustees are recruited to the Board and selected by the Trustees and

Union Council to serve a maximum term of two years.



ANNUAL REPORT OF THE BOARD OF TRUSTEES continued

BOARD OF TRUSTEES continued

Officers of the Union

The Officers of the Union are:

- Sabbatical Officer Trustees

- Chair and Deputy Chair of Union Council

- Chairs and members of Union Standing and Representation Committee

There are seven Sabbatical Officer Trustees including a President, Deputy President and a Sabbatical

Officer with responsiblity for finance.

The Sabbatical Officers are officer trustees elected through a secret ballot by the members each

year, normally serving for one year in office but can serve a second term if re-elected. These are

full time posts remunerated as authorised by the Education Act and the Memorandum and Articles

of Warwick Students' Union.

Trustees Induction and Training

Upon appointment all trustees receive a variety of information through their induction. Trustees

are briefed on their legal obligations and other trustee responsibilities. The Sabbatical Officers are

new to the Board every year, so they undergo more intensive, in depth training to ensure that they

are fully aware of their roles and responsibilities and can perform their duties to the best of their

abilities as soon as possible. There is an on-going training programme for Trustees for issues which

may occur during their term of office.

TRUSTEES POWERS AND RESPONSIBILITIES

Trustees' General Authority

The Board of Trustees has ultimate responsibility for the financial matters and procedures of the

Union. The Board of Trustees may choose to prohibit the implementation of any policy

recommended by Union Council which has financial implications if it is passed without a realistic

financial plan, is not legal or may not be in the best interests of the Union.

The Board of Trustees is assisted by committees where appropriate and has delegated the

day-to-day running of Warwick Students' Union to the Chief Executive.

Committees

The Board of Trustees meets at least five times a year to receive reports from committees,

Sabbatical Officers, Senior Management and the Chief Executive, to review the Union's

performance and administration generally and to agree policy issues arising, subject to

consultation with Union Council.




STRUCTURE, GOVERNANCE AND MANAGEMENT continued

Committees continued

The Board of Trustees is supported by four committees which focus on certain key aspects of

Warwick Students' Union governance and management:-

- The Executive Committee

- The Search and Nominations Committee

- The Audit and Risk Committee

- The Finance and Human Resources Committee

The Executive Committee

This consists of the Sabbatical Officer Trustees and Part Time Officers. The Executive Committee

covers aspects of student voice such as representation and campaigning focusing on policy

implementation.

Search and Nominations Committee

This ensures that new trustees are recruited, inducted and developed properly. They also have

responsibility for recruitment of the Chief Executive.

Audit and Risk Committee

This monitors the Union's finances, risk profile and other aspects which could impact on Warwick

Students' Union's organisational health as well as ensuring that the Union is complying with relevant

legislation.

Finance and Human Resources Committee

This examines issues relating to finance. It scrutinises the management and annual accounts,

financial plans and annual budgets. It also monitors issues relating to staff including the staff

survey results, pay changes, training and development as well as staff policies.

UNION COUNCIL

The Union operates on democratic principles, working for and with our members, the students of

the University of Warwick. The voice of students is represented by Union Council, elected by and

from members of the Union.

The Unions' policy making bodies are:

- General Meetings

- Referenda

- Union Council

Union policy may be amended by resolution of a Referendum, General Meeting or Union Council.

The composition and proceedings of Union Council are set out in the Bye Laws.




STRUCTURE, GOVERNANCE AND MANAGEMENT continued

UNION COUNCIL continued

Policies passed by Referendum cannot be overturned without a further Referendum or General

Meeting. Policies passed by General Meetings cannot be overturned without being debated and

voted on at a further General Meeting.

The Union maintains a policy file and record of lapsed policies. Policies lapse after two years

unless renewed by Union Council who will specify the next renewal date.

The Union Council receives a quarterly report from the Trustees.

RELATIONSHIP WITH THE UNIVERSITY OF WARWICK

The relationship between the University and the Union is established in the Charter, Statutes,

Ordinances and Regulations of the University. The Union receives a block grant from the

University and occupies a building owned by the University Foundation Fund which is leased to

the Union at an agreed rent.

There is no reason to believe that the block grant or equivalent support from the University of

Warwick will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on

the University to take such steps as are reasonably practicable to ensure that the Union operates

in a fair and democratic manner and is accountable for its finances.

Warwick Students' Union therefore works alongside the University of Warwick to ensure that the

affairs of the Union are properly conducted and that the educational and welfare needs of the

Union's members are met.

RISK MANAGEMENT

The Trustee Board has examined the main strategic business and operational risks faced by the

Union. A risk register has been established and is updated at least annually. Where appropriate,

systems and procedures have been established to mitigate the risks the Union faces and these

are periodically reviewed to ensure that they continue to meet the needs of the Union.

Budgetary and internal control risks are minimised by the implementation of procedures for

authorisation of all transactions and projects.

Procedures are in place to ensure compliance with the health and safety of staff, volunteers and

participants on all activities organised by the Union.

These procedures are periodically reviewed to ensure they continue to meet the needs of the Union.




AIMS, OBJECTIVES AND ACTIVITIES

Our Mission

Warwick Students' Union - creating a better experience for students at Warwick.

Our Objects

The objects of the Union are the advancement of education of students at the University of Warwick

for the public benefit by:-

(i) promoting the interests and welfare of students at Warwick Students' Union during their

course of study and representing, supporting and advising students.

(ii) being the recognised representative channel between students and the University of

Warwick and any other external bodies; and

(iii) providing social, cultural, sporting and recreational activities and forums for discussions and

debate for the personal development of its students.

Our Values

We are:-

- Democratic, student led, member focussed and representative

- the Independent voice of Warwick students

- Ethical, fair, principled, transparent and environmentally sound

- Fun, friendly, vibrant and entertaining

- Informative, supportive, knowledgeable, responsive and useful

- Enriching, helping students develop and nurture their aspirations

- Accesssible, diverse, welcoming, tolerant and inclusive

In pursuit of this vision, the Union will ensure the diversity of its membership is recognised, valued

and supported and as such has established departments and services for use by its members and

to support its work with the University of Warwick and other organisations on behalf of students.

These include the Union's Advice and Welfare Centre, Democracy and Representation Office,

Student Activities and Development Office, the Student Resources Centre, the Venue, Bars and

Catering outlets.

The Executive Officers represent students by sitting on key committees and working groups of the

University of Warwick. This ensures that the student voice is heard and responded to at all levels of

the University to enhance the student experience. Student representatives now sit on and

contribute to over 30 University committees and through the Staff - Student Liaison Committee

system (SSLC) approximately 650 students effectively liaise with University departments to

raise student concerns and work to improve the teaching and learning experiences of students.




AIMS, OBJECTIVES AND ACTIVITIES continued

The Union's Executive Officers also meet regularly with Local Authorities, local Primary Care Trusts

and other providers of public services affecting students.

To further enhance the student experience, Warwick Students' Union involves and supports students

from all walks of life to get involved with both the University and local community by actively promoting

the benefits of volunteering in student-led activities such as Warwick Volunteers and the Inspire scheme.

This involves students visiting comprehensive schools in the West Midlands area to talk about their

lives as students with pupils who may not have considered embarking on a course in higher education.

Warwick Students' Union also supports approximately 75 sports clubs and 300 student societies offering

students a wide range of academic, social, cultural, charitable and interest based groups. Students

have the opportunity to meet new people and share their interests as well as develop transferrable

skills.

ACHIEVEMENTS AND PERFORMANCE

The 2010-11 year was a year of transition as it was the final year of the previous strategic plan. Warwick

Students' Union achieved the following published objectives for 2010-11:

Objective Achievement

Our purpose:

Number of people who feel Warwick SU Target at least 85% - achieved 82%

has contributed positively to their time at

Warwick (source: Big 5 Survey) The result was higher than anticipated and a real

cause for celebration at a time when the Union

was looking to the future as part of the update

of the new Strategic Plan.

Representation:

Achieve Voter Turnout of 30% of members Voter turnout 356 ahead of the 5,200 target

in Officer Elections

A really pleasing result. It is hoped that this strong

performance can be built on with the work

currently underway on the Democracy Review.

Involvement:

Increase the number of students joining Memberships increased by 528 on 16,350 target

sports clubs and societies

Warwick Sport in particular did well with over 6,000

student memberships covering a wide variety of

activities from archery, ice hockey to ballroom dancing




ACHIEVEMENTS AND PERFORMANCE continued

Objective Achievement

Engagement:

% of students who feel the SU listens to Target at least 50% - achieved 29%

feedback (source: Big 5 Survey)

This result was disappointing and the Union looked

closely at ways in which both feedback could be

collated and the positive impacts and actions taken

communicated back to members. Rant Week and

Have Your Say were introduced as well as an

information campaign - You Said We Did.

Work on this will be on-going.

Our people:

Achieve IIP Accreditation 2011 Achieved

Our finances:

Achieve planned surplus of £57k Achieved a surplus of £265k

A really good result which helped to build back reserves

Environmental impact:

Achieve at least a silver level in Achieved Gold

Green Impact Awards

FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014

During 2011 Warwick Students' Union launched it's new strategic plan for 2011-2014. This plan

reflects the comments and feedback of members responding to questions and research undertaken

by the Union. The Union's overall strategic objectives are reviewed every three years.

The detailed actions identified in the plan will be reviewed each year to account for any changes to

student population, changes to Union policy or changes as a result of the manifestos of the students

elected to represent the members.

The plan centres around seven key values (previously outlined in the Aims, Objectives and Activities

section). These values will help the Union the create a better experience for students at Warwick.




FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014 continued

Several key action points emerged from this review:

From the Membership

- The membership want greater exploitation of technology for communication, including

work on the Union website to ensure it is up-to-date and attractive.

- The importance of the Union operating ethically and with environmental impact in mind.

- The importance of transparency around Union processes and structures.

- There are frustrations around the bureaucracy with managing funds for societies. The

procedures and regulations around these funds needs better explanation.

Future Challenges

- Pensions are in crisis in the UK and this will impact on the perception by staff of benefits.

- There will be further legislative changes for pensions that require compliance.

- The Union tries to do too much for it's resources and needs to ensure that it doesn't

over promise and not deliver.

- To build back the Union's reserves position after the financial impact of the redevelopment

of the Union's facilties.

- To maintain the Union's reputation with key stakeholders such as the University.

Other Potential Impacts

- The Government may change licensing laws to decrease alcohol sales.

- There may be further increases to VAT.

- Sponsorship opportunities may decrease in certain industry sectors.

- Pay settlements may increase above the Union's financial plan estimates.

- The Union's membership research is insufficient.

Headline Key Performace Indicators (KPI's)

Well run organisations set clear objectives each year and communicate these to everyone involved. A

crucial component of these objectives is being able to see whether thay have been successfully

achieved. The measures put in place are Key Performance Indicators (KPI's) and they are - in simple

terms - the way of benchmarking achievement relating to aims for the year.

Seven areas were identified for monitoring with KPI's during the 2011-12 financial year:

- Membership Participation: Membership numbers - Warwick Sport and Societies Federation

- Representation: Voter turn out in autumn and officer elections

- Communications: % of students voting that the website is at least average (Big 5 Survey)

- Staff: % of staff who feel valued by the Union (Staff Survey)

- Finance: Achieve or exceed budget surplus of £49k for 2011-12

- Impact: % of people who feel that the Union has contributed positively to their time at Warwick

- Environmental Impact: Achieve at least a silver Green Impact Award




FUTURE PLANS: THE UNION'S STRATEGY for 2011 - 2014 continued

Review: Membership Services

During 2011-12 there will be a review of Membership Services. This will look at the Union's strategy

and members feed back. This will shape the key services delivered to students such as advice and

welfare, representation, democracy and student activities for the Union going forward.

Review: Democracy

Running alongside the review of Membership Services will be the Democracy Review. This will look at

the structures which allow members to participate and shape decision making. Part of this will be

a fresh look at the current Sabbatical Officer roles to ensure that they reflect the views and needs of the

Union's members.

FINANCIAL REVIEW

As a result of the changes to the Charities Act 2006, Warwick Students' Union created a new company

limited by guarantee on 29 June 2010 and registered with the Charity Commission on 15 July 2010.

All the assets and liabilities held by the previous unincorporated membership association were

transferred to the new company on 1 August 2010.

These are the first accounts presented according to the Charity Commission's Statement of

Recommended Practice (2005) format. Comparatives for 2009-10 relating to the unincorporated

membership association have been restated to reflect SORP 2005 reporting.

Income and Expenditure

The overall surplus for the year was £265,297 (2010: £566,876). This represents 4% of total incoming

resources and was £207,750 ahead of the budget for the year of £57,547.

This was the second good financial year for the Union and the first full year of trade in the newly

refurbished building. This enabled the Board of Trustees to approve £180,000 to be transferred from

general reserves to a designated reserve for future building refurbishment.

Total incoming resources increased by £272,495 to £6,689,923 (2010: £6,417,428). The grant

contribution from the University was down overall by £124,723. This grant is made up of two elements -

recurrent and non-recurrent grant. The annual recurrent grant actually increased by £293,595 to

£1,713,391 (2010: £1,419,798). This additional funding included a modest inflationary increase,

contribution for increased pension costs and an amount to continue supporting the Union with the

excellent work it undertakes on the Student-Staff Liaison Committees (SSLC'S). The prior year

non-recurrent grant of £473,250 was a one-off award to assist the Union with the impact of the closure

during the building redevelopment.

The Food and Beverage outlets traded very well contributing £78,308 (2010: £54,421) and with

income £250,507 ahead of last year - £2,478,250 (2010: £2,227,743). This was the first year of full




FINANCIAL REVIEW continued

trade out of the newly refurbished building and strong trading performances were turned in by the

Union's baguettes-to-order outlet: The Bread Oven, the Union's pub: The Dirty Duck and the Union's tea

shop: CuriosiTea.

The story wasn't the same for the Union's Venue, The Copper Rooms. Since the original proposal in 2006

for the building redevelopment the business model has changed. The market for live music is now very

different and students social habits have changed. This is not just happening at Warwick. There is change

nationally in the way that live music venues operate. Disappointingly the Venues did not increase income

significantly - only £27,310 increase on last year to £1,252,757 (2010: £1,225,447). Costs also

increased in line and action was taken during the year to scale back the programmes to minimise losses.

The budget for the 2011-12 year is more realistic and to date the financial performance of the Venue

is good.

Total Resources Expended increased by £574,074 to £6,424,626 (2010: 5,850,552). This reflects

the new rental charge payable to the University of Warwick Foundation Fund of £450,000 per annum

for the Union buildings.

Students' Union Services Warwick Limited

This is the subsidiary company for non-primary purpose trading. Turnover for the company was down

£87,962 on the previous year at £233,763 (2010: 321,725). The 2009-10 year included some

one-off summer conference trade which was sadly not repeated in summer 2011.

Students' Union Services Warwick Limited made a donation under gift aid of £118,461 (2010: £167,229)

to Warwick Students' Union. This was a decrease of £48,768 on the previous year.

It is anticipated that going forward Students' Union Services Warwick Limited will be impacted by the

current economic climate and the budgetted operating profit for the 2011-12 financial year is £38,145.

This reflects the reduction in conference and vacation bookings as well as income generated from

external room hire.

Membership Solutions Limited

The 2010-11 financial year saw Membership Solutions Limited (MSL) making a transfer under gift aid to

Warwick Students' Union for the first time of £125,658 (2010: nil).

This was a good year for MSL with the delivery of the NUS website - NUS Connect see:

http://www.nusconnect.org.uk/.

Turnover for the company increased by £151,553 to £352,825 (2010: £201, 272). During the 2010-11

financial year MSL increased its client client base to approximately 30 students' unions nationally.

MSL made profits on ordinary activities before taxation of £5,467 (2010: £28,957) finally utilising the

brought forward losses from previous years.





Net Assets and Cash Flow

Total Net Assets increased by £265,297 to £327,727 (2010: £62,430). This consisted of the following

movements:

- the net book value of Total Fixed Assets fell by £37,858 to £109,578 (2010: £147,436).

This is due to the transfer of Tangible Fixed Assets at net book value on 1 August 2010

as detailed in Tangible Fixed Assets Note 6.

- the Current Assets increased by £230,286 to £1,185,369 (2010: £955,083).

This included an increase in cash balances and short term deposits of £217,084

(see Consolidated Cash Flow Statement). Debtor balances increased by £12,989

(Note 10) due to an increase in Trade Debtors.

- the value of Creditors increased by £2,955 to £991,696 (2010: £988,741).

This is mostly due to an increase in the amounts held as custodian funds for sports

clubs and student societies (Note 11).

- the value of Provisions for Liabilities was reduced to nil at year end (2010: £75,824)

This was a provision set aside for redundancy costs following the staffing restructure

in 2010.

These results reflected a much healthier balance sheet position for the Union at 31 July 2011 as it

builds back it's reserves.

Reserves

Free unrestricted general reserves at 31 July 2011 increased by £102,573 to £135,003

(2010: £62,430). The Board of Trustees also approved that £180,000 be set aside in a designated

reserve for building refurbishment. At 31 July 2011 total unrestricted reserves were £315,003

(2010: £62,430) taking the reserves back to 2006-07 levels prior to the building redevelopment.

This is a pleasing increase in reserves and the contribution for the year was ahead of budget. During

the coming year the Board of Trustees will consider what level of reserves the Union will require to

cover the Union for any unforseen changes in commercial operations as well as future investment in

infrastructure.

Custodian Funds

Warwick Students' Union acts as a custodian for funds raised by the many sports clubs, student

societies and RAG (raising and giving) affiliated to the Union. These funds are held in a separate

bank account and the year end balances for each sports club and society are within the Union's

creditor balance (see Note 11). The balance held for sports clubs and student societies at

31 July 2011 was £382,836 (2010: £324,450). This includes £7,321 held at the end of the year

for distribution to charities.





Custodian Funds continued

The income and expenditure for the student sports clubs and societies is not reported within the

Union's Statement of Financial Activity. During the financial year the sports clubs and societies

received £1,541,106 of income. Included in this were grants from the Union of £173,023 for

Warwick Sport and £45,933 from the Societies Federation for student societies. These grant awards

were spent in the year and appear in the Union's Statement of Financial Activity as a cost in the

"Student Activities, Societies and Sports Clubs" line.

Future Funding

Every year the Union produces a Five Year Plan. This process enables the Union to review the current

and future financial performance of its activities. The plan (including the budget for the 2011-12

financial year) was approved by the Board of Trustees in June 2011.

The budget for 2011-12 forecasts a surplus for the Union of £48,663 (representing 0.7% of income)

and includes an approved block grant from the University of Warwick of £1,832,775

(2010: £1,768,325).

The current Five Year Plan includes an annual block grant from the University of Warwick across the

planning period of at least the level of the 2011-12 approved grant. Although the Union has no

definitive guarantee that funding will continue from the University at these levels, the Union will

continue it's dialogue with the University about the future and monitor the impacts of the changes in

Higher Education Funding.

The Capital Commitments note (Note 7) reports authorised but not yet contracted expenditure of

£60,000 this is directly attributable to the refurbishment of the Union's Xananas restaurant. This

project was delayed over the summer of 2011 and it is hoped that the majority of major work will be

completed before the end of the financial year 31 July 2012.

The Union is under going a review of Membership Services and any impacts on the capital plan will

be included during the 2012 Five Year Plan.

The Union potentially faces significant financial risk as a result of the current pension deficit

reported from the Students' Union Superannuation Scheme (SUSS). This is a defined benefit scheme

whose membership consists of students' unions and related bodies throughout the country (see

Note 18). This scheme closed to future accrual on 30 September 2011.

The Union's contributions towards the pension deficit will have doubled in two years from the level

paid in 2009-10. The amount contributed at 31 July 2011 was £102,906 (2010: £72,060).

Provision for increases in pension deficit contribution costs have been included in the current Five Year

Plan based on the forecast on-going increase in contribution rate of 3.2% per annum.




INVESTMENT POLICY

The Trustees objective is to invest surplus cash to best advantage with minimum risk. The Union

has taken a prudent stance with funds being held in high interest bearing deposit accounts for

periods not exceeding 6 months. Cash funds so invested are usually over a minimum balance of

£100,000 and must be placed with an approved and reputable banking institution.

Investment returns in the year reflect the stated policy as well a the lower interest rates available

due to market conditions.

This policy will be reviewed in the coming year to ensure that it continues to reflect best advantage

with minimum risk.

RESERVES POLICY

Following the Union's registration with the Charity Commission the Trustees will be considering

the level of free reserves required.

Prior to incorporation and transfer to the incorporated charity limited by guarantee the Union's

free reserves position was £62,430 as set out in Note 15.

Designated reserves are held to fund building refurbishment plans.

AUDITORS

BakerTilly UK Audit LLP has indicated its willingness to continue in office.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

The Board of Trustees members who were in office on the date of approval of these financial

statements have confirmed, as far as they are aware, that there is no relevant audit information

of which the auditors are unaware. Each member of the Board of Trustees members have

confirmed that they have taken all the steps that they ought to have taken as Board of Trustees

members in order to make themselves aware of any relevant audit information and to establish

that it has been communicated to the auditor.

On behalf of the Board of Trustees.

L Boe G Whitworth

President Union Development Officer

8 February 2012



The Board of Trustees are responsible for preparing the Report of the Board of Trustees and the

financial statements in accordance with applicable law and regulations.

Charity law requires the Board of Trustees to prepare financial statements for each financial

year. Under that law the Board of Trustees have elected to prepare the financial statements

in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law). Under charity law the Board of Trustees must not

approve the financial statements unless they are satisfied that they give a true and fair view of

the state of affairs of the Union and the group and of the surplus or deficit of the group for that

period.

In preparing those financial statements, the Board of Trustees are required to:-

a) select suitable accounting policies and then apply them consistently;

b) make judgements and estimates that are reasonable and prudent;

c) state whether applicable UK Accounting Standards have been followed,

subject to any material departures disclosed and explained in the financial

statements.

d) prepare the financial statements on the going concern basis unless it is

inappropriate to presume that the group and the Union will continue in business.

The Board of Trustees are responsible for keeping adequate accounting records that are

sufficient to show and explain the group's and the Union's transactions and disclose with

reasonable accuracy at any time the financial position of the Union. They are also responsible

for safeguarding the assets of the group and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

STATEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES



We have audited the financial statements of the University of Warwick Students' Union for the period

29 June to 31 July 2011 on pages 23 to 43. The financial reporting framework that has been applied

in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom

Generally Accepted Accounting Practice).

This report is made solely to the charitable company's members, as a body, in accordance with

Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we

might state to the charitable company's members those matters we are required to state to them in an

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 charitable company and the charitable company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF BOARD OF TRUSTEES AND AUDITOR

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the

directors of the 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.

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

A description of the scope of an audit of financial statements is provided on the APB's website at:

www.frc.org.uk/apb/scope

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the charitable company's

affairs as at 31 July 2011 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 Companies Act 2006.

INDEPENDENT AUDITORS' REPORT to the Members of Warwick Students' Union



http://www.frc.org.uk/apb/scope

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Companies Act 2006 requires

us to report to you if, in our opinion:

- the charity has not kept adequate accounting records, or returns adequate for our audit

have not been received from branches not visited by us; or

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

- certain disclosures of trustees' remuneration specified by law are not made; or

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

PAUL OXTOBY (Senior Statutory Auditor)

For and on behalf of:

BAKER TILLY UK AUDIT LLP

Statutory Auditor

Chartered Accountants

St Philips Point

Temple Row

Birmingham

B2 5AF

8 February 2012

INDEPENDENT AUDITORS' REPORT continued



GROUP STATEMENT OF FINANCIAL ACTIVITY

Unrestricted Designated Restricted 2011 2010

Funds Funds Funds TOTAL TOTAL

Note £ £ £ £ £

INCOMING RESOURCES

Incoming resources from generated funds:

Voluntary Income

- University Grant 1,768,325 - - 1,768,325 1,893,048

Activities for Generating Funds

- Commercial income 559,062 - - 559,062 505,109

- Marketing and sponsorship 137,385 - - 137,385 137,996

Investment Income - Interest Receviable 337 - - 337 3,414

Incoming Resources from Charitable Activities

- Food and beverage 2,478,250 - - 2,478,250 2,227,743

- Venues, events and entertainments 1,252,757 - - 1,252,757 1,225,447

- Administration and support services 17,105 - - 17,105 9,051

- Student services and representation 16,464 - 17,604 34,068 25,244

- Student activities, societies and sports clubs 96,609 - 346,025 442,634 390,376

TOTAL INCOMING RESOURCES 6,326,294 - 363,629 6,689,923 6,417,428

RESOURCES EXPENDED

Cost of Generating Funds

- Commercial activities 282,995 - - 282,995 238,038

Charitable Activities for Students

- Food and beverage 1 2,399,942 - - 2,399,942 2,173,322

- Venues, events and entertainments 1 1,588,284 - - 1,588,284 1,530,897

- Student membership services 1 530,572 - 2,897 533,469 520,304

- Representation and affiliations 1 441,841 - 1,985 443,826 394,239

- Student activities, societies and sports clubs 1 789,266 - 346,023 1,135,289 946,916

Governance costs 2 40,821 40,821 46,836

TOTAL RESOURCES EXPENDED 6,073,721 - 350,905 6,424,626 5,850,552

NET INCOMING RESOURCES for the PERIOD 252,573 - 12,724 265,297 566,876

Transfers between Funds 14 / 15 (180,000) 180,000 - - -

Fund Balances Brought Forward 62,430 - - 62,430 (504,446)

TOTAL FUNDS CARRIED FORWARD 135,003 180,000 12,724 327,727 62,430

On 1 August 2010 the assets, liabilities and trade of the University of Warwick Students' Union (an unincorporated exempt

charity) were transferred to Warwick Students' Union (an incorporated exempt charity). All incoming resources and

resources expended derive from continuing activities. The current year figures represent the trading activities from

1 August 2010 and the comparative period represents the transactions for the year 1 August 2009 to 31 July 2010.

This statement of financial activity represents a consolidation of the income and costs for Warwick Students' Union,

Students' Union Services Warwick Limited and Membership Solutions Limited.

No separate Statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been

included in the statement of financial activities.



GROUP UNION

2011 2010 2011 2010

Note £ £ £ £

FIXED ASSETS

Tangible fixed assets 6 109,578 147,436 109,578 147,436

Investments 8 24,476 24,476 16,341 8,534

134,054 171,912 125,919 155,970

CURRENT ASSETS

Stocks 9 29,204 28,991 29,204 28,991

Debtors 10 176,441 163,452 313,132 242,668

Short-term deposits 211,577 355,519 54,604 342,857

Cash at bank and in hand 768,147 407,121 762,572 334,397

1,185,369 955,083 1,159,512 948,913

CREDITORS: Amounts falling

due within one year 11 (991,696) (988,741) (956,289) (959,748)

NET CURRENT ASSETS / (LIABILITIES) 193,673 (33,658) 203,223 (10,835)

PROVISIONS for LIABILITIES - (75,824) - (75,824)

NET ASSETS 327,727 62,430 329,142 69,311

REPRESENTING:

CHARITABLE FUNDS

Restricted Funds 13 12,724 - 12,724 -

Unrestricted Funds

- General 135,003 62,430 136,418 69,311

- Designated 14 180,000 - 180,000 -

TOTAL FUNDS 327,727 62,430 329,142 69,311

The financial statements on pages 23 to 43 were approved by the the Board of Trustees and authorised for

issue on 8 February 2012 and are signed on its behalf by:

L Boe G Whitworth

President Union Development Officer

The Group Balance Sheet represents a consolidation of the Balance Sheets of Warwick Students' Union,

Students' Union Services Warwick Limited and Membership Solutions Limited.

BALANCE SHEETS Company Registration Number: 07297865



2011 2010

Note £ £

Net cash inflow from operating activities 17(a) 280,620 631,773

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

Interest receivable 17(a) 337 3,414

Taxation - -

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

Payments to acquire tangible fixed assets 6 (63,873) (159,613)

Increase in Cash in the Period 217,084 475,574

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

2011 2010

£ £

Increase in cash in the period 217,084 475,574

Change in net funds resulting from non-cash flows - -

Movement in net funds in the period 17(b) 217,084 475,574

Net funds at 1 August 762,640 287,066

Net funds at 31 July 17(b) 979,724 762,640

CONSOLIDATED CASH FLOW STATEMENT



PRINCIPAL ACCOUNTING POLICIES

PRESENTATION OF ACCOUNTS

The Union's Articles of governance require the trustees to prepare accounts for each financial year.

These accounts represent a consolidation of the accounts of Warwick Students' Union and its

subsidiary undertakings Students' Union Services Warwick Limited and Membership Solutions

Limited.

BASIS OF ACCOUNTING

The accounts have been prepared under the Charities Act 1993 on the historical cost convention in

accordance with the Statement of Recommended Practice: "Accounting and Reporting by Charities"

published in March 2005 (SORP 2005) and with applicable UK Accounting and Financial Reporting

Standards (UK Generally Accepted Accounting Practice).

FUTURE FUNDING

The current economic conditions create uncertainty particularly over the level of demand for the

Union's services and the level of future income provided under the block grant agreement with the

University of Warwick.

The Union's forecasts and projections, taking account of reasonably possible changes in trading

performance show that the Union should be able to operate within the level of its current facilities

for at least twelve months from the date of approval of these accounts. The Union has held

discussions with the University about future funding and no matters have been drawn to its

attention to suggest that future funding may not be forthcoming at budgeted levels.

The Trustees have a reasonable expectation that the Union has adequate resources to continue

in operational existence for the foreseeable future. Thus they continue to adopt the going concern

basis of accounting in preparing the annual financial statements.

MERGER AND COMPARATIVE AMOUNTS

On 1 August 2010 the trade, assets and liabilities of the University of Warwick Students' Union (an

unincorporated exempt charity) were transferred to Warwick Students' Union (incorporated registered

charity). This transfer meets the definition of a group reconstruction in accordance with Financial

Reporting Standard 6 - Acquisitions and Mergers - and has been accounted for in line with the

principles of merger accounting.

In line with the principles of merger accounting, comparative balances are shown throughout

representing the activities of the University of Warwick Students' Union (an unincorporated body) for

the period 1 August 2009 to 31 July 2010.



BASIS OF CONSOLIDATION

The financial statements consolidate the financial statements of the charitable company and its

subsidiary undertakings. Inter-group profits are eliminated on consolidation. The consolidation is

carried out on a line-by-line basis. A separate Statement of Financial Activities (SoFA) for the charity

itself is not presented because the charity has taken advantage of the exemption afforded by Section

408 of the Companies Act 2006 and paragraph 397 of the Charities SORP 2005.

For the charitable company for the period ended 31 July:- 2011 2010

£ £

Incoming resources 6,347,454 6,061,660

Resources expended 6,087,623 5,589,896

Net incoming resources 259,831 471,764

As disclosed in note 7 Fixed Asset Investments, the minority interest arising on the consolidation of

Membership Solutions Limited has not been reflected in these consolidated financial statements on

the basis that the value is not material.

INCOMING RESOURCES

All income and capital resources are recognised in the accounts when the Charity is legally entitled

to the income and the amount can be quantified with reasonable certainty. Income from

commercial trading activities (net of Value Added Tax) is recognised as earned as the related goods

and services are provided.

Investment income is recognised on a receivable basis.

GRANTS

The Union receives voluntary income from the University of Warwick in the form of a block grant and

this is credited to the financial statements in respect of the period to which each grant relates.

RESOURCES EXPENDED

Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Overhead

costs are apportioned to activities on a basis consistent with the use of the resources. Expenditure

includes irrecoverable Value Added Tax.

PRINCIPAL ACCOUNTING POLICIES continued



TANGIBLE FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. Expenditure on individual capital items

or groups of related items costing less than £1,500 are written-off to the income and expenditure

account in the year in which they occurred.

Depreciation is provided to write-off the cost less the estimated residual value of tangible fixed assets

by equal instalments over their estimated useful lives as follows:

Building improvements 3 - 10 years

Fixtures, fittings and office equipment 3 - 5 years

IT equipment 3 years

The Union occupies premises provided by the University of Warwick Foundation.

INVESTMENTS

Warwick Students' Union's fixed asset investments are valued at cost, as these assets are not readily

saleable and a reliable market value is not readily available.

The Board of Trustees value the shareholding in the subsidiary companies at net asset value.

LEASE CONTRACTS

Rentals paid under operating leases are charged to income as the cost falls due.

STOCKS

Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in, first

out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal.

TAXATION

From 1 August 2010 Warwick Students' Union became a registered charity and therefore benefits

from exemptions from taxation on its income and gains falling within Section 505 of the Taxes Act

1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are

applied to its charitable objectives. No tax charge has arisen in the year.


The taxable profits of Students' Union Services Warwick Limited are donated under Gift Aid to the

Union with the consequence that no taxation is payable by that company.


The profits for the year for Membership Solutions Limited have been offset against losses brought

forward for tax purposes. No taxation arises on the results of Membership Solution Limited.




FUNDS STRUCTURE

Warwick Students' Union administers and accounts for a number of charitable funds, as follows:

- Unrestricted Funds representing unspent income which may be used for any

activity / purpose at the Broad of Trustees discretion.

- Designated Funds set aside by the Board of Trustees to be spent on some specific

purpose at its own discretion. The Board of Trustees intend to use some of these

designated funds to finance future building refurbishment.

- Restricted Funds raised and administered by Warwick Students' Union for specific

purposes. This includes revenue received from a donor to be used for activities

prescribed by the donor.

- Custodian Funds entrusted to Warwick Students' Union for safekeeping, but not under

its management control such as Sports Club and Society funds (including annual Raising

and Giving). Such custodian activities are disclosed in the Annual Report, but as the

funds are not managed by Warwick Students' Union they cannot be included in these

accounts.

DEFINED BENEFIT PENSION SCHEME

The group participates in the Students' Union Superannuation Scheme, a defined benefit scheme

which is externally funded and contracted out of the State Second Pension. The fund is valued at

least every three years by a professionally qualified independent actuary with the rates of contribution

payable being determined by the Trustees on the advice of the Actuary.

The scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate.

As a consequence, no share of the underlying assets and liabilities can be directly attributed to the

Union. Under the terms of FRS17, in these circumstances contributions are accounted for as if the

Scheme were a defined contribution scheme based on actual contributions paid through the year.

The scheme closed to future accrual on 30 September 2011.

From 1 October 2011 the group participates in the National Union of Students' Pension Scheme, a

defined contribution scheme proved by Aegon, a brand name of Scottish Equitable plc.



For the year ended 31 July 2011 29

NOTES TO THE FINANCIAL STATEMENTS

1: CHARITABLE ACTIVITY AND SUPPORT COSTSOther

Operating Support

Charitable Activity Costs TOTAL Staff Costs Cost of Sales Expenses Costs

£ £ £ £ £

Charitable Activity Cost Reallocation

Food and Beverage 2,399,942 935,541 803,818 144,244 516,339

Venues, Events and Entertainments 1,588,284 421,431 592,893 117,511 456,449

Student Membership Services 533,469 214,411 - 15,360 303,698

Student Representation and Affiliations 443,826 140,320 - 62,211 241,295

Student Activities, Societies and Sports Clubs 1,135,289 70,137 - 413,565 651,587

6,100,810 1,781,840 1,396,711 752,891 2,169,368

Charitable Activity Costs Summary 2011 2010

£ £

Food and Beverage 2,399,942 2,173,322

Venues, Events and Entertainments 1,588,284 1,530,897

Student Membership Services 533,469 520,304

Student Representation and Affiliations 443,826 394,239

Student Activities, Societies and Sports Clubs 1,135,289 946,916

6,100,810 5,565,678

Student Representation expenses includes the affiliation fee for the National Union of Students' of £49,361

(2010: £49,347).

Marketing, IT & Admin & General

Support Costs Use TOTAL Premises Finance & HR Communications Management

£ £ £ £ £

Support Costs Reallocation

Food and Beverage 23.8% 516,339 230,622 159,437 54,020 72,260

Venues, Events and Entertainments 21.0% 456,449 249,840 80,406 53,987 72,216

Student Membership Services 14.0% 303,698 144,139 33,356 53,987 72,216

Student Representation & Affiliations 11.1% 241,295 96,092 18,923 54,020 72,260

Student Activities, Societies and Sports Clubs 30.0% 651,587 240,231 158,797 108,039 144,520

100.0% 2,169,368 960,924 450,919 324,053 433,472

Support Costs Summary 2011 2010

£ £

Food and Beverage 516,339 470,759

Venues, Events and Entertainments 456,449 352,764

Student Membership Services 303,698 234,457

Student Representation & Affiliations 241,295 188,072

Student Activities, Societies and Sports Clubs 651,587 495,910

2,169,368 1,741,962



NOTES TO THE FINANCIAL STATEMENTS continued

1: CHARITABLE ACTIVITY AND SUPPORT COSTS continued

Support costs are allocated on the following basis:

- Premises is allocated on space occupied

- Finance is allocated on total number of financial transactions

- HR is allocated based on staff costs

- Marketing, IT Services and Communications are pro-rata across all activities

- Administration and General Management are pro-rata across all activities

Finance and HR costs include: 2011 2010

£ £

- Pension deficit contribution 102,906 72,060

- Redundancy and severance payments - 100,160

102,906 172,220

Administration and General Management costs include: 2011 2010

£ £

- Insurance 65,756 58,615

- Irrecoverable Value Added Tax 133,958 124,020

199,714 182,635

2: GOVERNANCE COSTS 2011 2010

£ £

Auditors Remuneration - Audit Fees 20,000 18,000

Auditors Remuneration - Other Services 5,250 1,250

Legal Fees - Preparation for incorporation and charity registration 3,264 26,620

Professional Fees - Pension advice 7,500 -

Other Legal and Professional Fees 4,474 341

Board of Trustees - Committee expenses 127 556

Board of Trustees - Travel reimbursements 206 69

40,821 46,836




3: NET INCOMING RESOURCES FOR THE PERIOD 2011 2010

Net incoming resources for the period is stated after charging: £ £

Auditors remuneration:

- Audit Fees 20,000 18,000

- Other Fees 5,250 1,250

25,250 19,250

Depreciation and amounts written-off Tangible Fixed Assets:

- Owned Assets 88,502 142,165

- Loss on Disposal of Assets 13,229 -

101,731 142,165

Operating lease rentals:

- Plant and machinery 40,387 40,387

- Buildings 450,000 -

490,387 40,387

4: STAFF COSTS 2011 2010

£ £

Wages and Salaries 2,531,429 2,488,535

National Insurance 167,194 170,994

Pension Costs 80,484 91,627

2,779,107 2,751,156




4: STAFF COSTS continued 2011 2010

The average staffing was as follows: Number Number

Monthly Salaried Staff / Full Time Equivalent 93 / 84 98 / 95

Weekly Paid Student Staff / Full Time Equivalent 581 / 52 396 / 44

674 / 136 494 / 139

The following number of employees received 2011 2010

remuneration above £60,000 within the year: Number Number

£70,000 - £79,999- £74,999 1 1

The above staff member was accruing retirement benefits under the pension scheme disclosed in

note 18.

5: TRUSTEES REMUNERATION AND EXPENSES

As well as having a role as a trustee of Warwick Students' Union the seven Student Sabbatical

Officers perform a full time role to be the voice of students. They are authorised in the Union's

governing document to represent students, undertake campaigning and support work as distinct

from their trustee responsibilities. They listen to how students want things to be done, work with

Warwick Students' Union staff, the Board of Trustees and partners to make it happen. They

represent students to the University of Warwick, external organisations and the wider community.

Each of the Student Sabbatical Officers were paid a salary of £18,117 during the year with a total

cost to Warwick Students' Union of £140,320 (2010: £143,078) including salary and national

insurance.

The eleven other members Trustees of the Board were reimburseed a total of £206 (2010: £69) for

personal travel and subsistence expenses in performing their role as trustee.




6: TANGIBLE FIXED ASSETS - GROUP AND UNION Fixtures,

Building Fittings and

TOTAL Improvements IT Equiment

£ £ £

Cost

1 August 2010 147,436 20,447 126,989

Disposal of asset (18,940) (2,108) (16,832)

Additions 63,873 17,904 45,969

31 July 2011 192,369 36,243 156,126

Depreciation

1 August 2010 - - -

Disposal of asset (5,711) (350) (5,361)

Charge for the year 88,502 7,129 81,373

31 July 2011 82,791 6,779 76,012

Net Book Value

31 July 2010 147,436 20,447 126,989

31 July 2011 109,578 29,464 80,114

7: CAPITAL COMMITMENTS 2011 2010

Future capital expenditure: £ £

Authorised but not contracted 60,000 7,500




8: FIXED ASSET INVESTMENTS 2011 2010

£ £

Group

Cost

NUS Services Limited: deposit under

Students' Unions central billing scheme 16,664 16,664

NUS Services Limited: 'A' Shares 60 60

NUS Services Limited: 'B' Shares 7,752 7,752

24,476 24,476

Union NUS Services Shares in

TOTAL Limited Group

£ £ £

Cost

1 August 2010 8,534 8,332 202

Disposal of shares - Students' Union Warwick Events Limited (100) - (100)

Additions - Membership Solutions Limited 95 - 95

Additions - NUS Services Limited 'A' Shares 60 60 -

Additions - NUS Services Limited 'B' Shares 7,752 7,752 -

31 July 2011 16,341 16,144 197

At the 1 August 2010 the fixed asset investments held by The University of Warwick Students' Union (an

unincorporated exempt charity) transferred to Warwick Students' Union.

Warwick Students' Union on holds equity share capital in the following unlisted companies:


102 ordinary shares of £1 each being 100% of issued ordinary shares. Students' Union Services

Warwick Limited is registered and operates in Great Britain. The primary nature of the business being

trading services on behalf of the charity.

Turnover for the year ended 31 July 2011 was £233,763 (2010: £321,725) and profits of £118,461

(2010: £167,229) was generated which was donated to the Union under gift aid.

Net assets at 31 July 2011 were £102 (2010: £102).




8: FIXED ASSET INVESTMENTS continued


Warwick Students' Union holds 95 £1 ordinary shares in Membership Solutions Limited, a company

limited by shares registered in Great Britain, being 95% of its issued share capital. The primary

nature of the business is the sale of membership and other IT related systems.

Turnover for the year ended 31 July 2011 was £352,825 (2010: £201,272) and profit for the year

of £5,467 (2010: £28,957) was recorded after the payment of a donation made under gift aid to the

Union of £125,658 (2010: nil).

Net liabilities at 31 July 2011 were £1,320 (2010: £6,787).

The minority interest value of £273 arising on the consolidation of Membership Solutions Limited and

the cumulative balance sheet value of (£71) has not been reflected in the consolidated financial

statements on the basis of immateriality.

The principal activity of Membership Solutions Limited is the sale of membership and other IT related

systems.

Students' Union Warwick Events Limited

This company ceased to trade and was dissolved on 1 August 2010. The £100 share capital held by

the University of Warwick Students' Union was written-off on dissolution.

NUS Services Limited

The Union holds shares in NUS Services Limited, a purchasing consortium for member student unions

providing purchasing benefits through collective operations. NUS Services Limited also holds a

deposit from the Union in respect of payment for monthly supplies of brewed and other products.

9: STOCKS GROUP UNION

2011 2010 2011 2010

£ £ £ £

Goods for resale 29,204 28,991 29,204 28,991




10: DEBTORS GROUP UNION

2011 2010 2011 2010

£ £ £ £

Amounts falling due within one year:

Trade debtors 138,214 117,979 73,997 6,208

Amounts due from

subsidiary undertakings - - 210,679 193,767

Other debtors 6,296 1,921 6,296 1,921

Prepayments and accrued income 31,931 43,552 22,160 40,772

176,441 163,452 313,132 242,668

11: CREDITORS GROUP UNION

2011 2010 2011 2010

£ £ £ £

Amounts falling due within one year:

Trade creditors 147,581 147,784 146,395 142,863

Amounts due to

subsidiary undertakings - - - 100

Amounts held for clubs and societies 382,836 324,450 382,836 324,450

Other taxation and social security 131,328 150,087 131,328 150,087

Other creditors 61,810 46,681 61,810 46,681

Accruals and deferred income 268,141 319,739 233,920 295,567

991,696 988,741 956,289 959,748

Amounts held for clubs and societies represent balances held on behalf of these bodies, these funds

have been generated separately from the activities of the Union and the use of these funds is directed by

the individual club or society. Warwick Students' Union acts as a custodian for these funds.



12: PROVISIONS FOR LIABILITIES AND CHARGES Staff

Restructuring

£

At 1 August 2010 75,824

Payments during the year (75,824)

At 31 July 2011 -

13: RESTRICTED FUNDS

1 August 2010 Income Expenditure Transfers 31 July 2011

£ £ £ £ £

Warwick Sport - 346,023 (346,023) - -

Campaigns - 1,985 (1,985) - -

Projects - Community Scheme - 1,916 - - 1,916

Projects - Health Awareness - 200 (200) - -

Projects - Student Development - 321 (321) - -

Projects - Membership Surveys - 150 (150) - -

Projects - Inspire Scheme - 7,500 (1,022) - 6,478

Projects - Internationalisation - 4,500 (170) - 4,330

Proejcts - Environmental - 1,034 (1,034) - -

- 363,629 (350,905) - 12,724

All of the above restricted reserves represent funds received specifically for the identified activity and are

either supported by service level agreements or one-off grant applications.

14: DESIGNATED FUNDS

1 August 2010 Income Expenditure Transfers 31 July 2011

£ £ £ £ £

Building Refurbishment - - - - - 180,000 180,000

- - - 180,000 180,000

The designated reserve to finance building refurbishment was created to set aside funds for planned

future development of facilities and refurbishment of trading areas.




15: ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net Current 2011 2010

Fixed Assets / Net Assets / Net Assets /

Assets (Liabilities) (Liabilities) (Liabilities)

£ £ £ £

Restricted Funds - 12,724 12,724 -

Designated Funds - 180,000 180,000 -

General Funds: Warwick Students' Union 125,721 10,499 136,220 69,311

Subsidiary Undertakings 8,332 (9,549) (1,217) (6,881)

134,053 193,674 327,727 62,430

16: LEASING COMMITMENTS

At 31 July 2011 Warwick Students' Union had annual commitments under non-cancellable operating

leases as follows:

GROUP AND UNION

2011 2010

£ £

Land and Buildings

Operating leases expiring within:

over 5 years 450,000 -

Plant and Machinery

Operating leases expiring within:

2 to 5 years 40,387 40,387

490,387 40,387





17: CASH FLOW STATEMENT GROUP

2011 2010

£ £

(a) Reconciliation of net incoming resources

for the year to net cash inflow / (outflow) from

operating activities:

Net incoming resources 265,297 566,876

(Increase) in stocks (213) (19,772)

(Increase) in debtors (12,989) (56,333)

Increase / (Decrease) in creditors 2,955 (73,573)

(Decrease) / Increase in provisions (75,824) 75,824

Depreciation 88,502 142,165

Loss on asset disposal 13,229 -

Interest receivable (337) (3,414)

Net cash inflow from operating activities 280,620 631,773

(b) Analysis of changes in net funds At At

31 July 2011 Cash Flow 1 August 2010

£ £ £

Cash at bank and in hand 768,147 361,026 407,121

Short term deposits 211,577 (143,942) 355,519

979,724 217,084 762,640

The balances at 1 August 2010 represent the amounts transferred from the University of Warwick

Students' Union (an unincorporated exempt charity) to Warwick Students' Union (an incorporated exempt

charity).



18: PENSION SCHEME

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 the benefits in respect of service from 1 October 2003 to 30 September 2011 accruing on

a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the scheme

closed to future accrual on 30 September 2011.

The most recent valuation of the Scheme was carried out as at 1 October 2010 and showed that the

market value of the Scheme's assets was £67,141,000 with these assets representing 58% 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 £47,869,000.

The assumptions which have the most significant effect upon the results of the valuation are those

relating to the rate of return on investments and the rates of increase in pensions over the period up

to retirement and once in payment.

The following assumptions applied at 1 October 2010:-

- The investment return would be 6.6% per annum before retirement and 4.6% per annum

after retirement.

- Pensions accrued on a CARE basis would revalue in line with RPI at 3.2% per annum and

pensions accrued on the final salary basis would revalue in line with CPI at 2.7% per annum.

- Present and future pensions would increase at rates specified by scheme rules with

appropriate assumptions where these are dependent on inflation.

The 2010 valuation set our recommended monthly contributions expressed in monetary terms intended

to clear the on-going funding deficit oerva period of 20 years. These amounts are applied with effect from

1 October 2011 and will increase each year by 3.2%. They will be formally reviewed following completion

of the next valuation due with an effective date of 1 October 2013. In addition to these contributions,

The Union also pays its share of the scheme's levy to the Pension Protection Fund.

The scheme closed to future accrual on 30 September 2011 but as the Scheme was still open to future

accrual to 31 July 2011 the Union was also required to pay contributions towards the cost of benefits

accrued by members in that year. The contribution rate (excluding deficit contributions) for the period

from 1 August 2010 to 31 July 2011 applicable to this Union for the majority of members is 8.17% of

Earnings for members and 9.38% of Earnings for the Union (17.3%/17.55% in aggregate).

The contributions paid into the Scheme by the Union in respect of eligible employees for the year ended

31 July 2011 amounted to £183,390 (2010: £163,687), including funding deficit contributions.





19: RELATED PARTY TRANSACTIONS

a) Membership Solutions Limited

The Union received a donation under gift aid from Membership Solutions Limited of £125,658

(2010: nil). The Union purchased £17,216 (2010: £17,216) of services from Membership

Solutions Limited and provided £5,832 (2010: £38,564) of services.

2011 2010

£ £

Salary support, administrative and expenses 1,800 35,033

Premises and equipment rental 3,531 3,531

Interest charged on current account 501 -

5,832 38,564

b) Students' Union Services Warwick Limited

The Union received a donation under gift aid from Students' Union Services Warwick

Limited of £118,461 (2010: £167,229). The Union paid £145 (2010: nil) in current account

interest with Students' Union Services Warwick Limited and provided £48,174 (2010: £48,010)

of services to Students' Union Services Warwick Limited.

2011 2010

£ £

Salary support, administrative and expenses 7,272 7,274

Premises and equipment rental 40,752 40,736

Interest charged on current account 150 -

48,174 48,010



20: MERGER

On 1 August 2010 the trade, assets and liabilities of the University of Warwick Students' Union (an

unincorporated exempt charity) were transferred to Warwick Students' Union (an incorporated

exempt charity).

The assets and liabilities of the University of Warwick Students' Union (an unincorporated exempt

charity) at the 1 August 2010 are set out below:

Book Value

£

Tangible Fixed Assets 147,436

Investments 8,534

Stocks 28,991

Debtors 242,668

Short Term Deposits 342,857

Cash at Bank and In Hand 334,397

Total Assets 1,104,883

Creditors due within one year (959,748)

Provisions for Liabilities (75,824)

Net Assets 69,311

The results and financial position of the University of Warwick Students' Union (an unincorporated

exempt charity) have been shown throughout these financial statements as comparative amounts as

the group reconstruction fails to be treated as a merger in accordance with Financial Reporting

Standard 6 - Acquisitions and Mergers.

Prior to the transfer outlined above, the charity did not trade in the period 29 June 2010 to

31 July 2010.




Warwick SU Accounts 2010-11

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Transcript of Warwick SU Accounts 2010-11