2013 14 wsu consolidated final feb 2015

WARWICK STUDENTS' UNION

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 1 August 2013 to 31 July 2014

COMPANY REGISTRATION NUMBER: 07297865

CHARITY NUMBER: 1136894

CONTENTS

PAGE

Legal and Administrative Information 1 - 5

Annual Report of the Board of Trustees (Incorporating Strategic Report) 6 - 24

Statement of the Board of Trustees' Responsibilities 25

Independent Auditor's Report 26 - 27

Group Statement of Financial Activities 28

Balance Sheets 29

Consolidated Cash Flow Statement 30

Principal Accounting Policies 31 - 35

Notes to the Financial Statements:

Note 1 Charitable Activity and Support Costs 36 - 37

Note 2 Governance Costs 37

Note 3 Net Incoming Resources for the Period 38

Note 4 Staff Costs 38 - 39

Note 5 Trustees' Remuneration and Expenses 39

Note 6 Tangible Fixed Assets 40

Note 7 Capital Commitments 40

Note 8 Fixed Asset Investments 41 - 42

Note 9 Stocks 42

Note 10 Debtors 43

Note 11 Creditors 43 - 44

Note 12 Provisions for Liabilities and Charges 44

Note 13 Restricted Funds 44

Note 14 Designated Funds 45

Note 15 Analysis of Net Assets between Funds 45

Note 16 Grants to Student Sports Clubs and Societies 46

Note 17 Lease Commitments 46

Note 18 Cash Flow Statement 47

Note 19 Pension Scheme 48 - 49

Note 20 Related Party Transactions 49

Note 21 Affiliations 50

Note 22 Post Balance Sheet Event 50


For the year ended 31 July 2014

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

2013-2014 B Sundell President 1 August 2012 31 July 2014

E Davies Education 1 August 2013 31 July 2014

C March Democracy & Development 1 August 2012 31 July 2014

L Gill Postgraduate 1 August 2013 31 July 2014

A Scott Societies 1 August 2013 31 July 2014

Z Buckland Sports 1 August 2013 31 July 2014

C Turhan Welfare & Campaigns 1 August 2013

2014-2015 C Turhan President 1 August 2013

M Mirza Education 1 August 2014

R Ankcorn Democracy & Development 1 August 2014

A Thompson Postgraduate 1 August 2014

I Leigh Societies 1 August 2014

R Compton-Davies Sports 1 August 2014

A Husakova Welfare & Campaigns 1 August 2014


For the year ended 31 July 2014 1


BOARD of TRUSTEES continued

WARWICK STUDENTS' UNION TRUSTEES Appointed Resigned

Sabbatical Officer Trustees B Sundell Chair 1 August 2012 31 July 2014

E Davies 1 August 2013 31 July 2014

C March 1 August 2012 31 July 2014

L Gill 1 August 2013 31 July 2014

A Scott 1 August 2013 31 July 2014

Z Buckland 1 August 2013 31 July 2014

C Turhan Chair 1 August 2013

M Mirza 1 August 2014

R Ankcorn 1 August 2014

A Thompson 1 August 2014

I Leigh 1 August 2014

R Compton-Davies 1 August 2014

A Husakova 1 August 2014

Student Trustees A Evans 1 August 2012 31 July 2014

S Hewlings 1 August 2012 31 July 2014

A Moore 1 August 2012 26 March 2014

N Shiers 1 August 2012

S Brazell 5 December 2012 31 July 2014

A Khan 15 November 2013 31 July 2014

H Gould 1 August 2014

T Leek 1 August 2014

R Strudwick 1 August 2014

S Fry 29 October 2014

M Beatty 29 October 2014

External Trustees J Ryder Vice Chair 1 August 2010

E Cox 7 December 2011

H J Hunt 7 December 2011

G Parker 7 May 2013

N Pitt 7 May 2013

SECRETARY J Clements 29 June 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 18 November 2010:

A H Smith

The following director was appointed on 1st August 2013 and

resigned on 31 July 2014:

Z Buckland

The following director was appointed on 1 August 2012 and


C March

The following directors were appointed on 1 August 2014:

R Ankcorn

R Compton-Davies

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



C March



B Sundell

The following directors were appointed on 1 August 2014:

C Turnhan

R Ankcorn

COMPANY SECRETARY J Clements

REGISTERED OFFICE SUHQ, Warwick Students' Union,

Warwick Students' Union


Coventry

CV4 7AL




BANKERS NatWest plc

24 Broadgate

Coventry

West Midlands

CV1 1NE

SOLICITORS Band Hatton Button

25 Warwick Road

Coventry

West Midlands

CV1 2EZ

Bates Wells and Braithwaite London LLP

2 - 6 Cannon Street

London

EC4M 6YH

Woodroffes Solicitors

7 Beeston Place

London

SW1W 0JJ

AUDITOR Baker Tilly UK Audit LLP

Chartered Accountants

St Philips Point

Temple Row

Birmingham

B2 5AF



ANNUAL REPORT OF THE BOARD OF TRUSTEES (Incorporating Strategic Report)

The Board of Trustees of the Union submit their Annual Report for the period ended 31 July 2014

which includes the administrative information set out on pages 1 to 5 together with the audited

accounts for the year. The Board of Trustees have prepared 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) 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 Student 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.

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, when Students' Unions connected with exempt higher education

institutions were removed by section 11(9), Charities Act 2006, from the list of exempt charities in

Schedule 2 to the Charities Act 1993.

BOARD OF TRUSTEES

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

- 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

Student Council to serve a maximum term of two years.



ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued)

BOARD OF TRUSTEES continued

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

Council to normally serve a term of three years which may be extended for a second term.

Officers of the Union

The Officers of the Union are:

- Sabbatical Officer Trustees

- Chair and Deputy Chair of Student Council

- Chairs of the societies and sports committees

- four Liberation Officers

- University Faculty Representatives on the Student Staff Liaison Committees

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

Sabbatical Officer with responsibility 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 Student 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 in accordance with Article

40.3 of the Memorandum and Articles of Association.

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.




STRUCTURE, GOVERNANCE AND MANAGEMENT

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 the Student Council.

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

Warwick Students' Union governance and management:-

- The Search and Nominations Committee

- The Audit and Risk Committee

- The Finance and Human Resources Committee

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.

STUDENT 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 Student Council, elected by

and from members of the Union.

Student Council has the primary responsibility for the implementation and oversight of Union policy.

Union policy, regulations and principles are debated and voted for by members at All Student

Meetings. The composition and proceedings of Student Council are set out in the By-laws.

Policies held by Student Council cannot be overturned without being debated and voted on at a

further All Student Meeting. Policies may be overturned by the Board of Trustees only for financial,

reputational or legal reasons.




STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

STUDENT COUNCIL continued

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

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

The Student 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 of Warwick 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.




STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

DISABLED PERSONS

Full and fair consideration is given to applications for employment by disabled persons, having regard

to their aptitudes and abilities. Should an employee become disabled during their employment, all

efforts will be made to continue their employment and to provide appropriate training and support.

Training, career development and promotion opportunities will be, as far as possible, identical to

those for other employees.

EMPLOYEE ENGAGEMENT

The Union encourages the involvement of its employees in its management through regular

meetings of the Staff Consultative Forum. This forum has the responsibility for the dissemination

of information of particular concern to employees and for receiving their views on important matters

of policy.

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.

The Trustees have had regard to the Charity Commission Guidance on Public Benefit and believe that

the objects above comply with the public benefit requirement.




AIMS, OBJECTIVES AND ACTIVITIES (continued)

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

- Accessible, 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 and the Student Resources Centre which

hosts Democracy and Representation, Student Activities and Student Development. There are also

the Venue, Union Bars and Catering outlets.

The Sabbatical 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 720 students effectively liaise with University departments to raise

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

The Union's Senior Managers 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 72 sports clubs and 270 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

transferable skills.




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 to minimise risk.

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

due to market conditions.

RESERVES POLICY

Following the Union's registration with the Charity Commission the Trustees have considered the

level of free reserves required. Issues considered by the Trustees when looking at the level of

reserves were future investment and contingency requirements for risks. This includes such items

as future building refurbishment and potential pension fund deficits. The Board of Trustees have

agreed that the Union should have a reserves target of at least £750,000. The Union will be

reviewing this policy in line with its future strategy in the next twelve months.

Designated reserves are held to fund future building refurbishment plans and the current level is

£250,000 (2013: £250,000).




STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Headline Key Performance Indicators (KPIs)

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 they have been successfully

achieved. The measures put in place are Key Performance Indicators (KPIs) and they are - in

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

Seven areas were identified for monitoring with KPIs during the 2013-14 financial year:

Impact:

- % of students satisfied with the Union (National Student Survey - target: 78%)

Representation:

- voter turnout in Autumn Elections (target: 1,900)

- voter turnout in Officer Elections (target: 7,000)

- number of students who know who their Staff-Student Liaison Committee (SSLC)

representative is (target: 70%)

Membership Participation:

- memberships of Sports Clubs (target: 10,000) and Societies Federation (target: 7,800)

- % of Postgraduate students satisfied with the SU (target: at least 55% satisfied)

- a target of 1,000 votes cast at an All Student Meeting

Communications:

- % of students aware of Union's achievements (target: at least 50% awareness)

Staff:

- student staff who feel valued for their contribution (Staff Survey - target: 4.00)

- permanent staff who feel valued for their contribution (Staff Survey - target: 4.10)

Finance:

- Achieve or exceed budget surplus of £50k for 2013-14

Environmental Impact:

- Reduce the volume of waste (target: 116 tonnes - a 4% reduction)

These key performance indicators were selected by the Board of Trustees from a larger list of

monitoring targets and will provide benchmarks and challenges for the Union.

As the Union begins a review of strategy for the next five years these performance measures will also be

reviewed.




ACHIEVEMENTS AND PERFORMANCE (continued)

Warwick Students' Union achieved the following against the published objectives for 2013-14:

Objective Achievement

Impact - Our purpose:

% of students who are satisfied with Target at least 78% - achieved 79%

Warwick SU in the National Student

Survey (question 23) The result placed the Union in the top quartile of UK

Students' Unions and was higher than last year - 76%.

Representation:

Voter Turnout for Autumn and Officer Autumn voter turnout 2,061 - target 1,900

elections Officer voter turnout 5,554 - target 7,000

A mixed result. The Autumn voter turnout was 192

higher than last year (2013: 1,869) however the

turnout for Officer elections was below target and

1,145 lower than last year (2013: 6.699). This

may have reflected the lower candidate numbers.

Representation:

number who know their Staff-Student Target at least 70% - achieved 55%

Liaison Committee Representative

This was a disappointing result and was lower

than last year (2013: 64%).

Involvement - Membership Participation:

membership of sports clubs and Sports club memberships 9,578 - target 10,000

societies SocsFed memberships 8,689 - target 7,800

A mixed result. Warwick Sport membership was 107

higher than last year (2013: 9,471) however down

on target. Membership of Societies Federation was

889 higher than target and 1,004 higher than last

year (2013: 7,685). A really good result.






Involvement - Membership Participation:

% of postgraduates satisfied with the SU Target 55% satisfied - achieved 48%

This was a disappointing result but higher than last

year (2013: 45%). There was improvement with

39% of postgraduates who remained neutral and only

9% expressing dissatisfaction.

Communications:

% of students aware of achievements Target 50% awareness - achieved 34%

This was lower than last year (2013: 37%) with 31%

of students remaining "neutral". Where students

engage with the Union awareness is much higher.

Our people:

staff feel valued by the Union for their Student staff target 4.00 - achieved 3.95

contribution (source: Staff Survey) Permanent staff target 4.10 - achieved 4.01

This survey uses a five point Likert Scale where:

1 = I don't feel valued for my contribution

3 = My contribution is neither valued or not valued

5 = I feel my contribution is very valued

The results are an average and the student staff

target has improved slightly on last year.

(2013: student staff 3.87 permanent staff 4.04).

The Union has undertaken a reward review and the

results may help with assessing key issues and

identify areas that could be improved.






Our finances:

Achieve planned surplus of £50k Achieved a surplus of £297k

This is a pleasing result which enabled the Union

to build back to its reserve target.

Environmental impact:

Reduce the volume of waste produced Target 116 tonnes - achieved 110 tonnes

The Union continues to review wastage and is working

to reduce the impacts of food waste within catering

outlets. Their target of reducing waste to less than

0.5% of turnover was achieved.

The measures had mixed results and were challenging for the Union. The Union has extended its

current strategic plan in order to undertake a more detailed consultation with members as part of

the process to develop a new strategic plan.

The Union agreed a total of 104 key performance indicators for 2013-14 to help assess development

and impacts for the organisation. At the end of July 2014 the Union achieved the following:

- 55 KPI's achieved. Representing 53% of total KPI's.

- 27 KPI's almost on target. Representing 26% of total KPI's.

- 15 KPI's missed or of concern. Representing 14% of total KPI's.

- 7 KPI's which were no longer applicable.

Assessing Impacts: Other key successes

The Union has been working to reach under represented groups. One of the measures for the year

was to increase overseas students attendance at Union events. The target for the year was 33%.

This was set against the % demographic of 28% and last year's measure of 35%. The Union achieved

a participation rate of 52%. This was very high and it is hoped that this level of engagement in Union

organised events will continue.





Assessing Impacts: Help Us Help You Student Survey

The Union undertakes an annual student survey known as "Help Us Help You". These results help

to shape the targets and measures for the Union. The survey takes places in Term 2 and the

questions are reviewed annually to ensure that the data collected continues to be relevant and helps

to shape Union strategy.

The Union will continue to promote its successes to members - particularly with regard to advice and

welfare support, student representation and development.




FUTURE PLANS: THE UNION'S STRATEGY for 2014 - 2015

The Board of Trustees have rolled-on the 2011 - 2014 strategic plan for another year in order to bring

the planning cycle in line with the University. The new strategic plan will be developed in Term 2.

The 2011 - 2014 strategic plan centres around seven key values (previously outlined in the Aims,

Objectives and Activities section). These values help the Union to create a better experience

for students at Warwick. The key action points can be grouped as follows:

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 its 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 facilities.

- 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 Performance Indicators (KPIs)

Seven areas were identified for monitoring with KPIs during the 2014-15 financial year all of which

are intended to provide a challenge for the organisation:

Membership Participation:

- memberships of Sports Clubs (target: 10,000) and Societies Federation (target: 8,600)

- % of Postgraduate students satisfied with the SU (target: at least 55% satisfied)

Representation:

- voter turnout in Autumn Elections (target: 2,070)

- voter turnout in Officer Elections (target: 7,000)

- % of Postgraduate students voting in elections (target: 20% Autumn and 15% Officers)

Communications:

- number of visits to the Union's website (target: 365,000)

Staff:

- staff feel appreciated by managers and colleagues (Staff Survey - target 4.30)

Finance:

- Achieve or exceed budget surplus of £6k for 2014-15

Impact:

- % of students satisfied with the Union (National Student Survey - target: 80%)

Environmental Impact:

- Reduce the volume of waste (target: 97.5 tonnes - a 12% reduction)

These will be challenging targets which will continue to stretch the Union.




FINANCIAL REVIEW

Income and Expenditure

The overall results for the year were: 2014 2013 movement

£ £

Incoming resources 7,479,189 7,059,300 419,889

Resources expended 7,181,767 6,863,136 318,631

Net incoming resources (surplus) 297,422 196,164 101,258

Surplus as a % of Incoming resources 4.0% 2.8%

The surplus was £246,963 ahead of the budget for the year of £50,459.

This was another good financial year for the Union, enabling the reserves to reach the target level set

by the Board of Trustees of at least £750,000.

The annual recurrent grant contribution from the University increased by £146,559 (7%) to £2,105,393

(2013: £1,958,834). This grant included an additional amount from a successful bid to the University

for support with the additional costs of pension auto-enrolment and student freshers helpers.

The Food and Beverage area had a more challenging year. The decline in drink sales has continued and

income has decreased by £20,540 to £2,544,193 (2013: £2,564,733). Despite this decrease

in turnover the food and bar outlets continue to make a significant surplus contribution to the

Union before recharging overheads. The trend by students to spend more on food that drink was first

experienced last year. Margins for food are less than drink and there are increased staffing costs to

produce food. This has impacted on returns however the variety of offerings across the Union's

catering and bar outlets helps to spread this risk. This trend is reflected nationally.

The Union's Venue, The Copper Rooms also had a difficult trading year. As previously reported, the

market for live music is now very different and students social habits have changed - as can be seen by

the increase in food sales and the decrease in bar sales. This trend is not just happening at Warwick.

There is a change nationally in the way that live music venues operate. The Venue experienced a

reduction in income last year of £81,318 down to £1,014,849 (2013: £1,096,167). The reduction was

primarily due to a reduced programme of events through the year in response to lower student demand.

The entertainments programme still provides lively programmes for key points during the year - such as

Freshers, the end of term, end-of-year balls and the summer festival.




FINANCIAL REVIEW (continued)

The resources expended by the Union are in line with overall income. This expenditure includes the

Union's deficit repair contribution to the Students' Union Superannuation Scheme - which closed to

future accrual on 30 September 2011. This contribution increased by £4,422 (3%) to £157,053

(2013: £152,631).

Net Assets and Cash Flow

The year-on-year movements were: 2014 2013 movement

£ £

Fixed assets: Tangible fixed assets 179,037 183,268 (4,231)

Fixed assets: Investments 16,664 22,124 (5,460)

Current Assets 2,163,163 1,781,517 381,646

Creditors: Amounts falling due within one year (1,322,666) (1,241,125) (81,541)

Provisions for liabilities and charges - (7,008) 7,008

Net ASSETS 1,036,198 738,776 297,422

Total Net Assets increased by £297,422 to £1,036,198 (2013: £738,776).

The decrease in the value of tangible fixed asset investments was due to the sale of shares during the

year back to NUS Services Limited.

The increase in current assets was mainly due to an increase in cash available for short term deposits.

There was an increase of £408,876 to £1,053,240 (2013: £644,364).

The increase in creditors was mostly due to an increase in the amounts held by the Union as custodian

funds on behalf of student sports clubs and societies. This increased by £59,610 to £526,775

(2013: £467,165).

The provision held on the balance sheet for redundancy costs following a review of staffing levels was

released in the year.

These results reflect a much healthier balance sheet position for the Union at 31 July 2014.





Reserves

Free unrestricted general reserves at 31 July 2014 increased by £290,969 to £760,415

(2013: £469,446).

In 2011 the Board of Trustees approved that £180,000 be set aside in a designated reserve for

future building refurbishment. It was agreed to increase this to £250,000 at 31 July 2013.

Students' Union Services Warwick Limited

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

by £317,727 on the previous year at £559,579 (2013: £241,852). This increase was due to the

transfer and increase in marketing and advertising activity, the opening of a new food outlet and some

additional income from consultancy work. The outlet - which was based in the University's Science

Park - was not successful and closed in the year.

Students' Union Services Warwick Limited made a donation under gift aid of £236,707

(2013: £111,627) to Warwick Students' Union. This was a increase of £125,080 on the previous

year.

It is anticipated that going forward Students' Union Services Warwick Limited will continue with modest

growth in delivered catering services and marketing activities. There is caution around revenue

generated during vacation and conference periods since activity is dependent on the bookings for

campus facilities made through the University.

Membership Solutions Limited

The 2013-14 financial year saw Membership Solutions Limited (MSL) making a transfer under gift

aid to Warwick Students' Union of £192,660 (2013: £132,303) an increase of £60,357.

Turnover for the company increased by £169,041 to £688,360 (2013: £519,319). MSL continues

to grow and provide IT membership solutions to Students' Unions and Universities across the country.

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 2014 was £526,775

(2013: £467,165). This includes £2,761 held at the end of the year for distribution to charities

(2013: £793).





Custodian Funds (continued)

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

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

received £1,928,152 of income (2012: £1,801,325).

Included in this income were grants from the Union of £162,976 (2013: £174,490) for Warwick

Sport and £40,347 (2013: £47,698) from the Societies Federation for student societies. These

grant awards were spent in the year and appear in the Union's Statement of Financial Activities

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

2014-15 financial year) was approved by the Board of Trustees in May 2014.

The budget for 2014-15 forecasts a surplus for the Union of £6,821 representing 0.1% of

income (2013: £50,459 - 0.7%) and includes an approved block grant from the University of

Warwick of £2,325,082 (2013: £2,105,393).

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 2014-15 approved grant. Although the Union has

no definitive guarantee that funding will continue from the University at these levels, the Union

will continue its 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

£21,575 (2013: £nil) and contracted expenditure of £9,281 (2013: £20,232). This is directly

attributable to furniture and refurbishment work required to converted the Mighty Duck bar into

a postgraduate social and study space. The majority of costs will be required to remodel the entrance.

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 19). This scheme closed to future accrual on 30 September 2011. The Union's

contributions towards the pension deficit will have doubled in recent years from the level paid in

2009-10. The amount contributed at 31 July 2014 was £157,053 (2013: £152,631).

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. The

Union also made a voluntary prepayment to the pension fund in October 2014 (see Note 22).

It is not clear at present what may happen to wage inflation and increases. This may become clearer

following the general election in 2015.




AUDITOR'S

Baker Tilly 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 auditor is 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.

The Trustees Report (incorporating the Strategic Report) is approved on behalf of the Board of

Trustees:

C Turhan R Ankcorn

President Democracy & Development Officer

Date:



The trustees (who are also directors of Warwick Students' Union for the purposes of company law)

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

accordance with applicable law and United Kingdom Accounting Standards (United Kingdom

Generally Accepted Accounting Practice).

Charity law requires the trustees to prepare financial statements for each financial year with give

a true and fair view of the state of affairs of the charitable company and the group and of the

incoming resources and application of resources, including the income and expenditure, of the

charitable 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) observe the methods and principles in the Charities SORP;

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

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

subject to any material departures disclosed and explained in the financial

statements; and

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

inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records that 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. They are also responsible for

safeguarding the assets of the charitable company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

- there is no relevant audit information of which the charitable company's auditor is

unaware; and

- the trustees have taken all steps that they ought to have taken to make themselves

aware of any relevant audit information and to establish that the auditor is aware of

that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial

information included on the charitable company's website. Legislation in the United Kingdom

governing the preparation and dissemination of financial statements may differ from legislation

in other jurisdictions.

STATEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES



We have audited the group and parent charity financial statements of Warwick Students' Union ("the

financial statements") for the year ended 31 July 2014 on pages 28 to 50 which comprise the

Group Statement of Financial Activities, the Group and Charitable Company Balance Sheets, the

Group Cash Flow Statement, and related notes. 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 TRUSTEES AND AUDITOR

As explained more fully in the Statement of Trustees' Responsibilities set out on page 25, 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.

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 Financial Reporting

Council's website at: www.frc.org.uk/auditscopeukprivate

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 2014 and of the group's incoming resources and application of

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

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

Accounting Practice; and

- have been prepared in accordance with the Companies Act 2006.

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



http://www.frc.org.uk/auditscopeukprivate

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the Trustees' Report and the incorporated Strategic Report

for the financial year for which the financial statements are prepared is consistent with the financial

statements.

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 parent charitable company has not kept adequate accounting records, or returns

adequate for our audit have not been received from branches not visited by us; or

- the parent charitable company 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

Date:

INDEPENDENT AUDITORS' REPORT (continued)



GROUP STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted Designated Restricted 2014 2013

Funds Funds Funds TOTAL TOTAL

Note £ £ £ £ £

INCOMING RESOURCES

Incoming resources from generated funds:

Voluntary Income

- University Grant 2,158,433 - 25,643 2,184,076 2,039,482

Activities for Generating Funds

- Commercial income 1,205,636 - - 1,205,636 725,064

- Marketing and sponsorship 32,219 - - 32,219 160,774

Investment Income - Interest Receivable 1,295 - - 1,295 1,819

Incoming Resources from Charitable Activities

- Food and beverage 2,544,193 - - 2,544,193 2,564,733

- Venues, events and entertainments 1,014,849 - - 1,014,849 1,096,167

- Administration and support services 14,101 - - 14,101 21,230

- Student services and representation 4,677 - - 4,677 7,677

- Student activities, societies and sports clubs 130,419 - 347,724 478,143 442,354

TOTAL INCOMING RESOURCES 7,105,822 - 373,367 7,479,189 7,059,300

RESOURCES EXPENDED

Cost of Generating Funds

- Commercial activities 707,569 - - 707,569 433,972

Charitable Activities for Students

- Food and beverage 1 2,624,278 - - 2,624,278 2,587,921

- Venues, events and entertainments 1 1,457,486 - - 1,457,486 1,521,160

- Student membership services 1 661,059 - 19,189 680,248 654,608

- Representation and affiliations 1 458,853 - - 458,853 458,723

- Student activities, societies and sports clubs 1 859,330 - 347,725 1,207,055 1,168,010

Governance costs 2 46,278 - - 46,278 38,742

TOTAL RESOURCES EXPENDED 6,814,853 - 366,914 7,181,767 6,863,136

NET INCOMING RESOURCES for the PERIOD 290,969 - 6,453 297,422 196,164

Equity minority interests 8 - - - - 31

Transfers between Funds 14 / 15 - - - - -

Fund Balances Brought Forward 15 469,841 250,000 18,935 738,776 542,581

TOTAL FUNDS CARRIED FORWARD 760,810 250,000 25,388 1,036,198 738,776

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

Students' Union Services Warwick Limited and Membership Solutions Limited, all operations are continuing.

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

been included in the group statement of financial activities.

GROUP UNION

2014 2013 2014 2013

Note £ £ £ £

FIXED ASSETSTangible fixed assets 6 179,037 183,268 179,037 183,268

Investments 8 16,664 22,124 17,934 23,394

195,701 205,392 196,971 206,662

CURRENT ASSETSStocks 9 27,982 38,251 27,982 38,251

Debtors 10 376,266 375,534 595,378 593,223

Short-term deposits 1,053,240 644,364 755,423 433,525

Cash at bank and in hand 705,675 723,368 671,353 648,437

2,163,163 1,781,517 2,050,136 1,713,436

CREDITORS: Amounts falling

due within one year 11 (1,322,666) (1,241,125) (1,209,318) (1,172,723)

NET CURRENT ASSETS 840,497 540,392 840,818 540,713

PROVISIONS for LIABILITIES

and CHARGES 12 - (7,008) - (7,008)

NET ASSETS 1,036,198 738,776 1,037,789 740,367

REPRESENTING:

CHARITABLE FUNDS

Restricted Funds 13 25,388 18,935 25,388 18,935

Unrestricted Funds

- General 760,415 469,446 762,401 471,432

- Designated 14 250,000 250,000 250,000 250,000

EQUITY MINORITY INTERESTS 8 395 395 - -

TOTAL FUNDS 1,036,198 738,776 1,037,789 740,367

The financial statements on pages 28 to 50 were approved by the Board of Trustees and authorised

for issue on 18th February 2015 and are signed on its behalf by:

C Turhan R Ankcorn

President Democracy & 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



2014 2013

Note £ £

Net cash inflow from operating activities 18(a) 473,906 12,656

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

Interest receivable 18(a) 1,295 1,819

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

Payments to acquire tangible fixed assets 6 (84,018) (124,676)

Cash inflow / (outflow) before Use of Liquid

Resources and Financing 391,183 (110,201)

Management of Liquid Resources

Net (investment) / withdrawals from Short Term Investments (408,876) (437,766)

(Decrease) in Cash in the Period (17,693) (547,967)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

2014 2013

£ £

(Decrease) in cash in the period (17,693) (547,967)

Increase in Short Term Deposits 408,876 437,766

Movement in net funds in the period 18(b) 391,183 (110,201)

Net funds at 1 August 1,367,732 1,477,933

Net Funds at 31 July 18(b) 1,758,915 1,367,732

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 2011 under 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).

GOING CONCERN

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.



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:- 2014 2013

£ £

Incoming resources 6,806,559 6,661,714

Resources expended 6,509,137 6,464,910

Net incoming resources 297,422 196,804

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.

Governance costs comprise those costs associated with the governance of the charity.

Liabilities are recognised as soon as there is a legal or constructive obligation committing the

charity to pay out resources. This applies to the annual grant awards made by the Union to third

party student sports clubs and societies.

PRINCIPAL ACCOUNTING POLICIES (continued)



TANGIBLE FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

IT equipment is capitalised if the item value is greater than £400. Expenditure on other 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, Fixtures & Fittings 3 - 10 years

General Equipment, Vehicles 3 - 5 years

IT Equipment 3 years

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

On 1 August 2010 the assets of the University of Warwick Students' Union (an unincorporated

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

tangible fixed assets taken on are depreciated using their remaining useful life at 1 August 2010.

INVESTMENTS

Warwick Students' Union's fixed asset investments in NUS Services Limited 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 the lower of cost and

net realisable 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 are donated under Gift Aid to the Union with

the consequence that no taxation is payable by that company.

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 Board 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.

LIQUID RESOURCES

Liquid resources represent those amounts on short term deposits with financial institutions.




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 2,624,278 1,004,325 874,937 159,146 585,870

Venues, Events and Entertainments 1,457,486 373,440 504,599 103,670 475,777

Student Membership Services 680,248 297,771 - 52,580 329,897

Student Representation and Affiliations 458,853 151,939 - 57,395 249,519

Student Activities, Societies and Sports Clubs 1,207,058 83,121 - 442,430 681,507

6,427,923 1,910,596 1,379,536 815,221 2,322,570

2013 Last Year 6,390,422 1,851,163 1,423,697 722,361 2,393,201

Charitable Activity Costs Summary 2014 2013

£ £

Food and Beverage 2,624,278 2,587,921

Venues, Events and Entertainments 1,457,486 1,521,160

Student Membership Services 680,248 654,608

Student Representation and Affiliations 458,853 458,723

Student Activities, Societies and Sports Clubs 1,207,058 1,168,010

6,427,923 6,390,422

Student Representation expenses includes the affiliation fee for the National Union of Students' of £51,448

(2013: £49,361). For further information on affiliations see Note 21: Affiliations on page 50.

Marketing, IT & Admin & General

Support Costs Use TOTAL Premises Finance & HR Communications Management

£ £ £ £ £

Support Costs Reallocation

Food and Beverage 25.2% 585,870 233,408 228,883 51,984 71,595

Venues, Events and Entertainments 20.5% 475,777 252,859 99,413 51,953 71,552

Student Membership Services 14.2% 329,897 145,880 60,512 51,953 71,552

Student Representation & Affiliations 10.7% 249,519 97,253 28,687 51,984 71,595

Student Activities, Societies and Sports Clubs 29.4% 681,507 243,133 191,218 103,967 143,189

100.0% 2,322,570 972,533 608,713 311,841 429,483

2013 Last Year 2,393,201 995,418 597,749 348,944 451,090

Support Costs Summary 2014 2013

£ £

Food and Beverage 585,870 605,330

Venues, Events and Entertainments 475,777 492,931

Student Membership Services 329,897 340,837

Student Representation & Affiliations 249,519 261,086

Student Activities, Societies and Sports Clubs 681,507 693,017

2,322,570 2,393,201



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: 2014 2013

£ £

- Pension deficit contribution 157,053 152,631

- Redundancy and severance payments - 7,008

157,053 159,639

Administration and General Management costs include: 2014 2013

£ £

- Insurance 93,142 96,733

- Irrecoverable Value Added Tax 131,580 147,903

224,722 244,636

2: GOVERNANCE COSTS 2014 2013

£ £

Auditors' remuneration - Audit fees 19,000 17,500

Auditors' remuneration - Other services 5,900 11,525

Professional fees - IT Contracts & Structures 18,462 -

Professional fees - Reward review - 6,064

Other legal and professional fees 1,723 2,983

Board of Trustees - Committee expenses 879 589

Board of Trustees - Travel reimbursements 314 81

46,278 38,742




3: NET INCOMING RESOURCES FOR THE PERIOD 2014 2013

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

Auditors' remuneration:

- Audit fees 19,000 17,500

- Other fees 5,900 11,525

24,900 29,025

Depreciation and amounts written-off Tangible Fixed Assets:

- Owned Assets 78,202 69,897

- Loss on disposal of assets 10,047 894

88,249 70,791

Operating lease rentals:

- Plant and machinery 2,655 1,549

- Buildings 450,000 450,000

452,655 451,549

4: STAFF COSTS 2014 2013

£ £

Wages and salaries 2,848,118 2,653,464

National insurance 206,111 189,271

Pension costs 109,869 85,884

3,164,098 2,928,619




4: STAFF COSTS (continued) 2014 2013

The average staffing was as follows: Number Number

Monthly salaried staff / Full time equivalent 109 / 90 106 / 86

Weekly paid student staff / Full time equivalent 600 / 58 448 / 56

709 / 148 554 / 142

The following number of employees received 2014 2013

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

£75,000 - £79,999 1 1

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

note 19.

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 £18,634 during the year with a total

cost to Warwick Students' Union of £154,387 (2013: £151,528) including salary and national

insurance. This salary was remunerated by way of their role as a Sabbatical Officer not as an

Officer Trustee.

The eleven other member Trustees of the Board were reimbursed a total of £314 (2013: £81) for

personal travel and subsistence expenses in performing their role as trustee, no trustees received

any remuneration as a result of their role as trustee.




6: TANGIBLE FIXED ASSETS - GROUP AND UNION Fixtures,

Building Fittings and

TOTAL Improvements IT Equipment

£ £ £

Cost

1 August 2013 367,600 47,398 320,202

Disposal of assets (55,490) (26,970) (28,520)

Additions 84,018 - 84,018

31 July 2014 396,128 20,428 375,700

Depreciation

1 August 2013 184,332 19,069 165,263

Disposal of assets (45,443) (17,666) (27,777)

Charge for the year 78,202 5,511 72,691

31 July 2014 217,091 6,914 210,177

Net Book Value

31 July 2013 183,268 28,329 154,939

31 July 2014 179,037 13,514 165,523

7: CAPITAL COMMITMENTS 2014 2013

Future capital expenditure: £ £

Authorised but not contracted 21,575 -

Contracted 9,281 20,232

30,856 20,232

Amounts disclosed for this year are in respect of the refurbishment of the Graduate Bar.




8: FIXED ASSET INVESTMENTS 2014 2013

£ £

Group

Cost

NUS Services Limited: deposit under

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

NUS Services Limited: 'A' Shares: 60 ordinary shares at £1 each - 60

NUS Services Limited: 'B' Shares: 270 ordinary shares at £20 each - 5,400

16,664 22,124

The NUS Services Limited A and B shares were sold back to NUS Services Limited during the year at

their face value.

Union NUS Services Shares in

TOTAL Limited Group

£ £ £

Cost

1 August 2013 23,394 13,792 9,602

NUS Services Limited: 'A' Shares transfer back to NUS (60) (60) -

NUS Services Limited: 'B' Shares transfer back to NUS (5,400) (5,400) -

31 July 2014 17,934 8,332 9,602

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


Warwick Students' Union holds 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 2014 was £559,579 (2013: £241,852) and profits of £236,707

(2013: £111,627) were generated which was donated to the Union under gift aid.

Net assets at 31 July 2014 were £102 (2013: £102).




8: FIXED ASSET INVESTMENTS (continued)


Warwick Students' Union holds 9,500 (2013: 9,500) £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 2014 was £688,360 (2013: £519,319) and a profit for the year

of £nil (2013: loss £609) was recorded after the payment of a donation made under gift aid to

the Union of £192,660 (2013: £132,303).

Net assets at 31 July 2014 were £7,908 (2013: £7,908).

Equity Minority Interests 2014 2013

£ £

5% share of loss in Membership Solutions Limited - 31

Minority interests of 5% in Membership Solutions Limited:

- share capital 500 500

- reserves (105) (105)

395 395

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

related systems.

NUS Services Limited

During the year the Union sold its 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

2014 2013 2014 2013

£ £ £ £

Goods for resale 27,982 38,251 27,982 38,251


For the year ended 31 July 2014

42


10: DEBTORS GROUP UNION

2014 2013 2014 2013

£ £ £ £

Amounts falling due within one year:

Trade debtors 285,845 307,697 87,593 130,543

Amounts due from

subsidiary undertakings - - 430,677 401,782

Other debtors 1,281 1,466 1,281 1,466

Prepayments and accrued income 89,140 66,371 75,827 59,432

376,266 375,534 595,378 593,223

11: CREDITORS GROUP UNION

2014 2013 2014 2013

£ £ £ £

Amounts falling due within one year:

Trade creditors 182,611 178,751 180,391 177,912

Amounts due to

subsidiary undertakings - - 4,185 3,299

Amounts held for clubs and societies 526,775 467,165 526,775 467,165

Other taxation and social security 124,448 138,291 124,448 138,291

Other creditors 87,398 51,866 83,937 49,972

Accruals and deferred income 401,434 405,052 289,582 336,084

1,322,666 1,241,125 1,209,318 1,172,723

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.



11: CREDITORS (continued) 2014 2013

£ £

Deferred Income

At 1 August 2013 125,418 42,264

Released during the year (101,917) (25,706)

Additions during the year 80,127 108,860

At 31 July 2014 103,628 125,418

These amounts are held primarily in respect of receipts-in-advance for Membership Services Limited.

12: PROVISIONS FOR LIABILITIES AND CHARGES - GROUP AND UNION 2014 2013

£ £

Provision for Staff Restructuring

At 1 August 2013 7,008 17,195

Settled during the year (7,008) (17,195)

Provision for restructuring during the year - 7,008

At 31 July 2014 - 7,008

13: RESTRICTED FUNDS - GROUP AND UNION

1 August 2013 Income Expenditure Transfers 31 July 2014

£ £ £ £ £

Warwick Sport - 347,724 (347,724) - -

Projects - Inspire Scheme 5,837 6,000 (5,804) - 6,033

Projects - Internationalisation 1,515 - (268) - 1,247

Projects - Community Scheme 1,825 1,000 (1,030) - 1,795

Projects - SU Communities 2,869 16,643 (9,219) - 10,293

Projects - Social Enterprise 5,899 - (824) - 5,075

Projects - Welfare 143 1,500 (1,603) - 40

Projects - Student Development 76 500 (442) - 134

Projects - Media Centre 771 - - - 771

18,935 373,367 (366,914) - 25,388

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 - GROUP AND UNION

1 August 2013 Income Expenditure Transfers 31 July 2014

£ £ £ £ £

Building Refurbishment 250,000 - - - 250,000

250,000 - - - 250,000

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 2014 2013

Fixed Assets / Net Assets / Net Assets /

Assets (Liabilities) (Liabilities) (Liabilities)

£ £ £ £

Restricted Funds - 25,388 25,388 18,935

Designated Funds - 250,000 250,000 250,000

General Funds: Warwick Students' Union 187,369 565,431 752,800 461,831

Subsidiary Undertakings 8,332 (322) 8,010 8,010

195,701 840,497 1,036,198 738,776




16: GRANTS TO STUDENT SPORTS CLUBS AND SOCIETIES 2014 2013

£ £

Grant awards by Societies Federation: Media, performance and music 18,228 24,147

Campaigning, charity and welfare 12,042 8,367

Activities and hobbies 4,175 6,107

Academic societies 2,908 5,032

Cultural societies 2,244 3,070

Faith and belief 750 975

40,347 47,698

Grant awards by Warwick Sport: Sports clubs 149,577 174,490

189,924 222,188

These are grant awards made by the Union during the year to student sports clubs and societies.

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

RAG (raising and giving) affiliated to the Union. These funds are not consolidated in to the Union's accounts.

These funds are held in a separate bank account and the year end balances for each sports club and student

society are within the Union's creditor balance (see Note 11).

17: LEASING COMMITMENTS

At 31 July 2014 Warwick Students' Union had annual commitments under non-cancellable operating

leases as follows:

GROUP AND UNION

2014 2013

£ £

Land and Buildings

Operating leases expiring within: over 5 years 450,000 450,000

Plant and Machinery

Operating leases expiring within: 1 year - 7,313

2 to 5 years 2,655 -

452,655 457,313




18: CASH FLOW STATEMENT GROUP

2014 2013

£ £

(a) Reconciliation of net incoming resources

for the year to net cash inflow from operating

activities:

Net incoming resources 297,422 196,195

Decrease in investments 5,460 2,352

Decrease / (Increase) in stocks 10,269 (3,541)

(Increase) in debtors (732) (181,797)

Increase / (Decrease) in creditors 81,541 (59,338)

(Decrease) in provisions (7,008) (10,187)

Depreciation 78,202 69,897

Loss on asset disposal 10,047 894

Interest receivable (1,295) (1,819)

Net cash inflow from operating activities 473,906 12,656

(b) Analysis of changes in net funds At At

1 August 2013 Cash Flow 31 July 2014

£ £ £

Cash at bank and in hand 723,368 (17,693) 705,675

Short term deposits 644,364 408,876 1,053,240

1,367,732 391,183 1,758,915




19: 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 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.

The most recent valuation of the Scheme was carried out as at 30 June 2013 and showed that the

market value of the Scheme's assets was £80,910,623 with these assets representing 52% 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 £73,849,000.

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 salaries and pensions.

The following assumptions applied at 30 June 2013:-

- The investment return would be 6.1% per annum before retirement and 4.1% per annum

after retirement.

- Pensions accrued on a CARE basis would revalue at 3.6% per annum.

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

appropriate assumptions where these are dependent on inflation.

The 2013 valuation set out recommended a monthly contribution requirement by each Union

expressed in monetary terms intended to clear the on-going funding deficit over a period of 17 years

and will increase by at least 5% each year. These contributions also include an allowance for cost of the

on-going administrative and operational expenses of running the Scheme. These rates applied with effect

from 1 October 2014 and will be formally reviewed following completion of the next valuation due with an

effective date of 30 June 2016. 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.

The contribution rate (excluding deficit contributions) for the period to 30 September 2011 applicable to the

Union for the majority of members was 8.17% of Earnings for members and 9.38% of Earnings for the Union

(17.3%/17.55% in aggregate).

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

31 July 2014 amounted to £157,053 (2013: £152,631) but this includes an additional proportion of

contributions in respect of future accrual as well as deficit contributions.




19: PENSION SCHEME (continued)

At the year end there were outstanding amounts of £12,781 (2013: £12,781) in other creditors relating to

the contributions to the pension scheme. The contributions expected to be paid into the scheme during

the year to 31 July 2014 are £694,475. This is in respect of a voluntary prepayment of three years of

pension deficit contributions which enable the Union to benefit from a 8.75% (see Note 22).

20: RELATED PARTY TRANSACTIONS

a) Membership Solutions Limited

The Union received a donation under gift aid from Membership Solutions Limited of £192,660

(2013: £132,303). The Union purchased £35,299 (2013: £35,640) of IT services from

Membership Solutions Limited and provided £44,933 (2013: £31,746) of services.

At the year end, the Union was owed £84,123 (2013: £150,166) from Membership Solutions

Limited.

2014 2013

£ £

Salary support, administrative and expenses 28,542 16,824

Premises and equipment rental 15,696 14,004

Interest charged on current account 695 918

44,933 31,746

b) Students' Union Services Warwick Limited

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

Limited of £236,707 (2013: £111,627). The Union paid £6,757 (2013: £109) in current account

interest and purchases with Students' Union Services Warwick Limited and provided £58,815

(2013: £52,395) of services to Students' Union Services Warwick Limited.

At the year end the Union was owed £342,369 (2013: £248,317) from Students' Union Services

Warwick Limited.

2014 2013

£ £

Salary support, administrative and expenses 12,114 7,304

Premises and equipment rental 46,492 44,627

Interest charged on current account 209 464

58,815 52,395




21: AFFILIATIONS

Warwick Students' Union is affiliated to the following organisations. Membership entitles the Union to have

a say in how organisations are run or what focus they may have. This may be in the form of a vote or a voice

on working parties over and above other membership benefits such as access to expert advice or information

resources.

2014 2013

£ £

National Union of Students (NUS) 51,448 49,361

NUS Services Limited (NUSSL) 555 400

British Universities and Colleges Sport (BUCS) 13,670 13,479

UK Council for International Student Affairs (UKCISA) 360 353

National Council for Voluntary Organisations (NCVO) - -

Child Poverty Action Group (CPAG) 66 65

Coventry and Warwickshire Chamber of Commerce 195 76

66,294 63,734

Confirmation of these affiliations is undertaken by vote at an All Student Meeting.

22: POST BALANCE SHEET EVENT

In October 2014 the Union made a voluntary prepayment to the Students' Union Superannuation Scheme in

respect of three years deficit repair contributions:

£

Contributions payable in 2014 - 2015 220,380



694,475

By making this advance payment the Union was able to take advantage of a discount of 8.75%.



Documents

2013 14 wsu consolidated final feb 2015