UCLU Financial Statements for the year ended 31 July 2015 · Marketing & Communications Manager Anthony Withstandley . UNIVERSITY COLLEGE LONDON UNION TRUSTEES’ REPORT FOR THE YEAR

Registered Charity No: 1142404 Registered Company No: 07635628

UCLU Financial Statements

for the year ended 31 July 2015

UNIVERSITY COLLEGE LONDON UNION

CONTENTS

FOR THE YEAR ENDED 31 JULY 2015

Table of Contents

Union Information ..................................................................................................... 1

Trustees’ Report ....................................................................................................... 3

Independent Auditor’s Report to the Members .................................................... 11

Statement of Financial Activities .......................................................................... 13

Balance Sheet ......................................................................................................... 14

Cashflow Statement ............................................................................................... 15

Notes to the Financial Statements ........................................................................ 16


UNION INFORMATION


Page 1

Union Information

Charitable Status University College London Union (UCLU) is an incorporated charity (limited by guarantee). The charity registration number is 1142404. The company registration number is 07635628. It was originally established under the Education Act 1994 and has been registered with the Charity Commission since 14 June 2011, when Students’ Unions connected with exempt higher/further education institutions were removed by the Charities Act 1993 and operates as defined in s20 of the Education Act 1994. UCLU is governed by its Memorandum and Articles of Association last amended in May 2011. Principal Address 25 Gordon Street, London, WC1H 0AY Website www.uclu.org Trustee Board The Charity Trustees who are also Company Directors for the purposes of the Companies Act:-

Sabbatical Officer Position 2015-2016 (appointed August 2015) 2014-2015 (retired July 2015)

Activities & Events* A Khan S Imran Rasool

Black & Minority Ethnic A Lunat H Begum

Democracy & Communications* closed position H Sketchley

Education & Campaigns* W Samie L Kolia Sustainability Engagement & Operations* M A Mumtaz O Khan

External Affairs & Campaigns* closed position O Raii

Medical, Pharmacy & Health closed position H Dhanjal

Postgraduate S Nair M Ceccotti

Welfare & International* T Robinson L Francis

Women's N James A Tidbury *Denotes Sabbatical Trustees

Student Trustees (Appointed October 2015) (Retired October 2015)

M Bukhari L Blackett

L Kolia A Borissova

M Al-Maary Z Chatoo

B Aziz A Khan (retired July 2015)

I Qureshi

External Trustees Position

Alumni RJ Barber (retired November 2014)

Alumni M Basterfield

Professional M Bayim-Adomako (appointed July 2014)

UCL staff A Gibb (retired May 2015)

UCL staff H Thompson (resigned November 2014)


UNION INFORMATION


Page 2

Auditors

Bankers

Crowe Clark Whitehill LLP Barclays Bank Plc

Aquis House London Corporate

49 – 51 Blagrave Street Service Centre

Reading PO Box 46116

Berkshire London

RG1 1PL EC4N 8WB

UCLU employs a Chief Executive Officer to work closely with the Full Time Officers to ensure effective management of the charity as head of the senior management team detailed below:-

Chief Executive Office Ian Dancy

Commercial Services Manager Timothy Cary

Finance & IT Manager Mary-Celeste Nri

Human Resource Manager Sally Handley

Marketing & Communications Manager Anthony Withstandley


TRUSTEES’ REPORT


Page 3

The Board of Trustees present the Annual Report for the year ended 31 July 2015 under the Charities Act 2011 and the Companies Act 2006, including the Directors’ Report and the Strategic Report under the 2006 Act, together with the audited financial statements of UCLU or (“the Union”) for the year ended 31 July 2015.

Trustees’ Report Governance UCLU is constituted under the Education Act 1994 as a charitable company limited by guarantee (see page 2) with internal regulations and rules approved by the governing body of University College London (UCL). The primary aim of UCLU is the advancement of education of students at UCL for the public benefit. Public Benefit All our activities are undertaken to further our charitable purposes for the benefit of our Student members. In shaping our objectives and planning activities the Board of Trustees have had regard to the Charity Commission public benefit general guidance regarding the exercising of duty and power for the public benefit. The main benefits which have arisen during the year from the organisation's aims are detailed in the following sections. Trustee Board The Trustee Board ensures UCLU has the necessary financial and structural stability to carry out its aims effectively. The Trustee Board makes decisions on legal and financial issues and ensures that the organisation is delivering on the political policy set by the democratic bodies of UCLU. In accordance with the organisation's Memorandum and Articles, the Trustee Board comprises:

4 Sabbatical Trustees

4 Student Trustees

1 External Trustees (Alumni)

1 External Trustees (UCL Staff)

1 External Trustee (External)

The Trustees hold a minimum of four meetings per academic year and are responsible for establishing and delegating to the following committees:

Finance & Services Committee

Human Resources Committee

Steering Committee

Sports Ground Committee

The terms of reference for Trustee Board and its associated committees, are available on the UCLU website. (http: //uclu. org/about-uclu/governance-trustees/governing-documents) Committees Finance & Services Committee is responsible for the finances of the Union, considering strategic options for, and general oversight of all areas of the Union's finances. This includes approving annual budgets, key performance objectives, and monitoring the financial performance of the organisation. The committee is charged with considering and recommending to the Board of Trustees the annual income and expenditure budget for the year ahead, on advice from appropriate committees and senior managers, and considering and reporting on statements on actual income and expenditure throughout the year and projected out-turn with annual budget. Human Resources Committee is in place to give the Board of Trustees oversight of the organisation’s HR practices. UCLU is provided employment contracts as part of its on-going relationship with UCL and this relationship puts a significant element of employment practices with UCL.


TRUSTEES’ REPORT


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Steering Committee is responsible for the smooth running of governance of the Union, including Elections and Committees. The committee has the power to interpret and clarify the Memorandum & Articles and Byelaws if there is confusion as to their meaning or if there is contradiction within any single constitutional text. Sports Ground Committee supports the governance and management of Shenley Sport Fields, agreeing high level expenditure and discussing our important relationship with Watford Football Club. Recruitment and training of Trustees The Sabbatical Officer Trustees are democratically elected each year by the membership of UCLU in the spring election to serve from August to July. All new Sabbatical Officer Trustees undergo a lengthy period of internal and NUS training. To ensure smooth handover, Sabbatical Officer Trustee elects undergo a two week shadowing period. They have weekly administration meetings with the Union's Chief Executive Officer who has delegated responsibility for overseeing the-day to-day activity of the Union. The Sabbatical Officer team role is to lead and represent students ensuring that motions of the Council, Members' Meetings and Referenda are implemented and that both internally, with UCL and beyond students are at the heart of decision making. Student Trustee positions are democratically elected by the membership of UCLU in the October elections. They serve for one year. External Trustees are appointed following advertisements placed within the UCL community and nationally in the media. They are appointed for a period of four years and the appointment is ratified by UCLU Council UCLU Council is the policy making body of the Union and is responsible for the formulation of Union policy except where policy was determined by a Members' Meeting or Referendum. Relationship with University College London The relationship between UCL and UCLU is established in the Regulations of UCL and detailed in UCLU Rules approved by both organisations. UCLU receives a Block Grant from UCL and occupies a number of buildings owned by UCL. UCLU also receives administrative support in a number of areas including Human Resources, IT infrastructure and Payroll. This non-monetary support is intrinsic to the relationship between UCL and UCLU. The Charities SORP has been adopted for this and future financial years for due compliance with the requirements for Students' Unions provided for in the Charities Act 2011. An estimated value to UCLU for the free serviced accommodation has been included in the accounts, priced at a market value of £2.47m. Although UCLU continues to generate supplementary funding from various mutual trading activities, it will always be dependent on UCL's support. There is no reason to believe that this or equivalent support from UCL will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on UCL to ensure the financial viability of its student representative body. Employment Policy UCLU’s contracts of employment continue to be provided by UCL. This allows UCLU to continue to benefit from UCL’s extensive and proven HR procedures, policies and support from UCL HR. Through its relationship with UCL UCLU offers competitive terms, conditions and benefits to its staff including a generous annual leave entitlement and pension scheme. UCLU has a longstanding commitment to equality, and to providing a working and social environment in which the rights and dignity of its diverse staff are recognised. All staff have an annual appraisal which incorporates a personal development plan. UCLU has excellent provision for training which is provided by the UCL Organisational Development team. All staff are expected to undertake at least 3 training events per year. Regular all-staff meetings and email briefings are used to keep staff up-to-date with relevant issues such as strategic and financial planning, and staff are invited to provide feedback to senior


TRUSTEES’ REPORT


Page 5

management through regular surveys. This year, all staff were invited to take part in staff engagement surveys carried out by UCL and NUS. Further, internal surveys were carried out to capture staff opinion on the future direction of the organisation. In the course of the year, to deliver and support our activities, we engaged 333 (32 FTE) part time UCLU casual student staff. We employ 74 permanent members of staff. Statement of Accounting and Reporting Responsibilities The Trustees (who are also directors of UCLU for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

Select suitable accounting policies and then apply them consistently;

Observe the methods and principles in the Charities SORP;

Make judgements and estimates that are reasonable and prudent;

State whether applicable UK accounting standards have been followed, subject to any

material departures disclosed and explained in the financial statements; and

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 adequate accounting records that:

Are sufficient to show and explain the charitable company's transactions;

Disclose with reasonable accuracy at any time the financial position of the charitable

company; and

Enable them to ensure that the financial statements comply with the Companies Act 2006 and

the provisions of the charity's constitution.

They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Risk Management The current risk register requires updating. This was planned to be completed during 2014-15 but following a year of significant change this continues to be an area of focus. This will be a key output for the following year. A risk register exercise was carried out as part of the Strategic Plan 2015-18 planning process. Our comprehensive three year Internal Audit Strategy 2012-15 is in place. This includes a rolling programme which reviews all aspects of UCLU's operations. Further to this, UCLU's embedded budgetary and internal control procedures are in place to minimise risk. The internal audit strategy will be reconsidered at the end of the current programme to ensure best value for money and that the internal audit is being used to support the organisation’s risk management. Procedures are in place to ensure compliance with health and safety of staff, volunteers and participants in all activities organised by the Union.


TRUSTEES’ REPORT


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UCLU’s Vision, Mission, Values and Strategic Plan 2015-18 (as approved by the UCLU Board of Trustees) Our vision is to open up opportunities for students during their time at UCL and enable them to make a fuller contribution in their future lives Our mission is to:

Be the voice for all our members

Provide services, support and advice

Facilitate opportunities for students to share common interests

Values

Ambitious, Proactive, Representative, Inclusive, Creative, Empowering Strategic goals 1. To engage with students, hear from them and represent their views effectively 2. To provide a students’ union that is relevant to all groups of students 3. To provide high quality support, services and activities, which are value for money 4. To raise awareness amongst students about ways in which the students’ union can help them flourish 5. To run the students’ union effectively and efficiently Review of 2014/15 The organisation is going through an exciting period of change, with a number of areas across the union shifting their focus to better understand, interact and serve our members. The arrival of a new Chief Executive Officer has allowed the Union to reflect and review its services and operations, and to consider what culture is needed to best underpin where the union wants to be in 3 years’ time and beyond. This year has given way for the Union’s new Strategic Plan that will guide it leading up to 2018. The union has worked with UCL to start to create an environment that best serves its members and creates an environment that is rewarding for students and staff. This year of change created a significant drain on UCLU’s financial resources with several unforeseen factors impacting the Union’s financial performance. However, even during a year of change the organisation made significant progress for its members. Work continued in the following areas:

Representation and Campaigns (RAC)

o The RAC team have continued to support student campaigns and work with UCL to

ensure that issues relating to education, liberation and focus on our diverse range of

students is at the heart of decision making. Notable achievements include an exciting

and vibrant Black History Month, achieving a bronze Race Equality Charter Mark (in

partnership with UCL), launching the Try It! campaign and our StARS programme

continuing to make an impact for UCL students.

o The Women’s Network’s Zero Tolerance to Sexual Harassment campaign got huge

support from clubs & societies with over two thirds signing the pledge, and the Active

Bystander workshops have been delivered to over 200 students and members of

UCLU staff. UCLU’s Women’s Officer (WO) is also working with UCL to develop a

campus wide Zero Tolerance policy. This year, the number of Student Academic

Representatives (StARs) has increased by 10% with 80% of students represented.

StARs provide a vital link between students, academic and administrative staff,

bringing about real change to improve students’ academic lives.

Rights and Advice

o The Rights and Advice team have seen over 4,000 student cases and continue to be

one of a few union advice centres that support the entire international student visa

process. The work that the team do continues to support and protect students on a

range of issues.


TRUSTEES’ REPORT


Page 7

Commercial Services

o UCLU’s cafes and bars continue to offer good quality food and drink at affordable

prices, with any profits being reinvested in the organisation and used to fund our free

services. UCLU’s commercial services also employ over three quarters of UCLU’s

student staff putting nearly £500,000 back into the student pocket.

Fun, Recreation and Community

o Skills4Work (in partnership with UCL) have run 29 workshops across the year in

subjects including project planning and implementation, presentation skills,

communication and networking, starting and running a business, managing yourself

and others, and team working.

o Our Volunteering Support Unit has helped place over 2,000 students in to schools,

charities and other organisations with a further 20 projects being launched by

students themselves. The work of the VSU not only helps UCL students develop new

skills, it also supports UCL’s position at the heart of a vibrant community.

o UCLU continues to support over 11,000 students to get involved in an activity,

whether that be an art, society or sport. UCLU sports teams have had a successful

year achieving a national ranking of 24th (out of 151) in the BUCS National Rankings,

with 7 students winning individual medals in the BUCS National Championships. On

top of this, 16 students have been supported to become qualified sports coaches and

officials. The Clubs & Societies Centre (CSC) also supported UCLU Netball to create

its first Post Graduate Netball team. The team went on to take part in a series of

friendly matches throughout the year and have been entered into a league for the

15/16 season. UCLU Elite Athletes Programme has helped 15 students compete at

national & international level. Paul Padda, has competed in a number of tournaments

in the Karate Premier League with the support of this programme

o This year our Give it a Go programme has held over 50 events with over 2000

students attending them. From theatre to trips to walking tours and coach trips that

show students some of the highlights of Britain, Give it a Go has been giving students

hassle free ways to make the best of their time at university throughout the year.

A significant element of 2014/15 was used to think about the future and what students, stakeholders and staff want UCLU to be focusing on moving forward. Strategic Report (Strategic Plan 2015-18) UCLU commissioned the NCVO to support the organisation in developing its new strategy. At the end of January 2015 the Board of Trustees discussed and approved the top level strategy which consisted of the vision, mission and strategic goals. The approved vision, mission and strategic goals formed the basis of developing the next stages of UCLU’s strategy, namely the values and the SMART objectives that will enable UCLU to be successful in delivering its top level strategy. These values and SMART objectives were approved by Trustees at their meeting at the end of March 2015. The Board of Trustees approved the next steps of the project that included the following next steps:

A measurement framework to evaluate UCLU’s success

Work plans to ensure the delivery of UCLU’s strategy and to inform the development of UCLU’s budget submission

An initial mapping of the risks to UCLU in delivering its strategy Work took place during April 2015 to devise measures to enable UCLU to evaluate its success in delivering against its strategy and this was linked to an increased focus on how UCLU embedded its strategic objectives to its large staff team. In order to ensure that UCLU delivers its strategy, it has adopted an approach to work planning that actively matches activities against SMART objectives and strategic goals. An initial meeting was held


TRUSTEES’ REPORT


Page 8

with senior managers to introduce them to the new form of work planning and respond to a wide range of questions. Finance Review UCLU’s outcome for the year is a deficit of £178k (2014: £523k) excluding capital appreciation on investments of £185k (2014: £77k). UCLU’s incoming resources for the year totalled £10.65m (2014: £10.28m); total resources expended for the year totalled £10.83m (2014: £10.81m). The deficit comprises a surplus of £653k against restricted funds; a deficit of £277k against designated funds and £555k against unrestricted funds as shown in the table below:-

The deficit on unrestricted funds of £555k is mostly due to significant non-recurring items (£404k) such as redundancy, legal and consultancy costs plus a major reduction in gym income due to late completion of building work. UCLU has continued to benefit from the recognition and support of the University College London, and this year received a block grant of £2.48m (2014: £2.43m) and a notional facilities grant of £2.47m (2014: £2.43m). Custodian Activities: Clubs’ & Societies’ Funds UCLU acts as custodian for funds raised by the students’ Clubs & Societies amounting to a net figure of £493k (2014: £398k) in creditors at the year-end. In addition to this UCLU provides grant-support for their core activities as shown in note 2 of the accounts. Future Funding The trustee board confirms that UCLU has sufficient funds to meet all its obligations. The block grant for 2015/16 has been confirmed at £2.71m (2014/15: £2.48m); this includes an additional grant of £210k to cover the costs related to the merger of the IOESU and the TUPE of staff. Commercial activities made a negative contribution of £22k this year due to the overrun of building works, which significantly impacted turnover in 4 of our 8 outlets. In 2015/16 the commercial outlets, whilst being subjected to further external building works, are expected to revert to form and generate a contribution in the region of £397k, which includes the addition of 2 former IOESU outlets. Restricted grant funding for capital investment in our buildings Until 2021, UCLU will continue to present statutory account deficits, large parts of which derive from the depreciation of former investments in our buildings. UCLU received restricted capital grants to partially fund these works and has set aside designated funds specifically to cover the shortfall between the cost of the works and the capital grants received. In 2014/15 the statutory presentation of this information shows depreciation of £424k as a cost against the restricted grant fund and £181k

Sports Ground expenditure (76,155)

Significant non-recurring costs (404,000)

Sports Development expenditure (16,879)

Big Ideas project expenditure (2,604)

Net costs of activities funded

by restricted grants (1,856)

Remaining net cost (48,732)

Depreciation against restricted

reserve fund (423,886)

Depreciation against capital

reserve fund (181,114) Depreciation (101,904)

Sports Ground restricted grant

receipts 1,078,695

652,953 (276,752) (554,636)

Restricted Designated Unrestricted


TRUSTEES’ REPORT


Page 9

against designated funds (please see table above), both of which are shown as contributing a total of £605k towards the annual deficit. Reserves Level and Policy The reserves of UCLU provide financial stability and the means for the continued development of our principal activities. The Union is heavily dependent on the annual grant received from UCL and would be at risk were those funds to be reduced. In the event of a reduction in income and to ensure continuity of activities and scope for review, it is the Trustees’ policy to maintain our undesignated funds, net of that invested in fixed assets (“free reserves”), at a level which equates to a minimum of 6 months running costs. The Union’s undesignated fund balance as at 31 July 2015 was £1.81m (2014: £1.63m) and the free reserves were £1.61m (2014: £1.48m) - equivalent to approximately 2.6 months running costs. Investments Policy, Objectives and Performance UCLU’s investment objectives are to balance the current and future needs by:

Maintaining (at least) the value of the investments in real terms;

Producing a consistent and sustainable amount to support expenditure; and

Delivering these objectives within acceptable levels of risk. The policy to invest surplus funds is agreed by the UCL Union Finance Committee. The day to day management of the investments is controlled by the Finance Manager. Investments are placed after agreement with the Investment team. Transfers are under the control of the Finance Manager and the General Manager. Other than Investments in the UCL fund, all other assets must be held in a restricted portfolio (where capital has to be preserved). The investment policy objective is to obtain a minimum income yield of Base Rate pIus 0.5%. Our investment, valued at £2.55m as at 1 August 2014 in the UCL Unified fund returned an income yield of 2.51%, and we recognised an unrealised capital gain of £185k or 7.25% growth, taking the valuation to £2.73m as at 31

July 2015.

Other average treasury investments of approximately £2.26m returned an income yield of 2.83%. The income yield objective of base rate plus 0.5% is satisfied, however with inflation (CPI) averaging 0.1% for the year, we have earned enough income/capital to negate the erosion of the capital sums invested. Future Plans The 2015/16 financial year marks the start of an important period of UCLU’s history and the start of a new strategic planning cycle, which will be so important in how it improves the services and representation to its members. As an organisation we face a number of significant challenges for the coming year. Specifically, these include: Reputation UCLU will focus over the next 12 months on building a strong and supportive reputation both within UCL and nationally, reaching out to stakeholders to support local/national initiatives, both democratically and operationally. Restructuring of the organisation’s Senior Management Team (SMT) UCLU are committed to restructuring its SMT and creating new environments for its staff, services and members to work with. The organisation’s SMT will support the Chief Executive Officer in creating fantastic work experiences for staff, services for members and a wider culture that supports our people.


TRUSTEES’ REPORT


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Development of Strategic Plan 2015-18 The development of the Strategic Plan was just the start and the work now begins on aligning the organisation with its strategy but also ensuring that the organisation is able to work strategically. Balancing the budget UCLU continues to focus on its financial performance, ensuring value for money, optimised commercial returns and seeking new opportunities to support its members and staff. Governance Review An initial governance review was carried out in 2014 which eventually became part of a wider review leading up to the 2015/16 year. It is essential that our democratic and governance is modern but still reflects the values of our history and members. The Sabbatical Officers are leading this process ensuring that the review is student led and able to be sustainable for years to come. Provision of Information to Auditors

Each of the persons who are Trustees at the time when this Trustees’ Report is approved has confirmed that:

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

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

This Trustees report, comprising the Directors report and Strategic Report, was approved by the board on 3 December 2015 and signed on its behalf by: Mohammad Ali Mumtaz Wahida Samie Sustainability, Engagement & Operations Officer Education & Campaigns Officer


INDEPENDENT AUDITOR’S REPORT


Page 11

Independent Auditor’s Report to the Members of the University College London Union We have audited the financial statements of the University College London Union for the year ended 31 July 2015 which comprise the Statement of Financial Activities (incorporating the Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement and the related notes numbered 1 to 25. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdome 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 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 Trustee’s Responsibilities, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements 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 Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustee’s Annual Report incorporating the Director and Strategic Reports, to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 July 2015 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees Annual Report, incorporating the Directors’ and Strategic Reports, for the financial year for which the financial statements are prepared is consistent with the financial statements.


INDEPENDENT AUDITOR’S REPORT


Page 12

Matters on which we are require 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 charitable company has not kept adequate accounting records; or

The 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.

Alastair Lyon

Senior Statutory Auditor

For and on behalf of

Crowe Clark Whitehill LLP

Statutory Auditor

Reading

Date: 3

rd December 2015


STATEMENT OF FINANCIAL ACTIVITIES


Page 13

Statement of Financial Activities (Incorporating the Income and Expenditure Account) Total Total

Restricted Revaluation Designated Unrestricted 2015 2014

Notes £ £ £ £ £ £ INCOMING RESOURCES

Incoming resources from generated funds

Voluntary income Grant and donations 2 105,161 - 148,535 4,825,773 5,079,469 5,207,148 Investment income 3 - - - 122,456 122,456 130,920 Incoming resources from charitable activities

Trading 4 - - - 3,660,539 3,660,539 4,083,023 Non trading 4 1,063,901 - 432,461 290,211 1,786,573 862,598 Total incoming resources

1,169,062

- 580,996

8,898,979

10,649,037

10,283,689

RESOURCES EXPENDED

Charitable activities

Trading 5 58,250 - - 4,791,053 4,849,303 4,890,276 Non-trading 5 457,859 - 857,747 4,636,454 5,952,060 5,898,456

Governance costs 5 -

-

- 26,108

26,108

17,470

Total resources expended 5

516,109 -

857,747

9,453,615

10,827,471

10,806,202

Net movement in funds 652,953 - (276,751) (554,636) (178,434)

(522,513)

Unrealised gain on investments

- 184,595 - - 184,595 76,594

Transfer between funds

-

-

(733,665)

733,665

-

-

Net incoming/ (outgoing) resources

652,953

184,595

(1,010,416)

179,029

6,161

(445,919)

Fund balances brought forward

2,820,394

448,239

3,891,789

1,633,855

8,794,277

9,240,196

Funds at 31 July 2015 3,473,347 632,834 2,881,373 1,812,884 8,800,438 8,794,277

The statement of financial activities includes all gains and losses recognised in the year.

All amounts derive from continuing activities.

The notes on pages 16 to 27 form part of these financial statements


BALANCE SHEET


Page 14

Balance Sheet Company number: 07635628 2015 2014 Note £ £ FIXED ASSETS Tangible assets 9 3,669,973 3,467,901 Investments 11 3,739,441 3,554,846 7,409,414 7,022,747 CURRENT ASSETS Stocks 12 50,193 64,840 Debtors 13 816,069 229,930 Cash at bank 1,451,222 2,313,936 2,317,484 2,608,706 CREDITORS: amounts falling due within one year 14

(926,460)

(837,176)

NET CURRENT ASSETS 1,391,024 1,771,530 TOTAL ASSETS LESS CURRENT LIABILITIES

8,800,438

8,794,277

REPRESENTED BY: Restricted reserves

Deferred capital grant 15 2,342,650 2,751,744 Other 66,796 68,650 Shenley Grounds capital reserve 1,063,901 - 3,473,347 2,820,394 Revaluation Funds Revaluation fund

16

632,834

448,239

Unrestricted reserves 17 Designated funds - Sports development fund 149,857 166,735 - Big idea fund 250,000 986,269 - Designated capital reserve 1,158,594 1,339,708 - Shenley athletics ground fund 1,322,922 1,399,077 Unrestricted funds 1,812,884 1,633,855

4,694,257 5,525,644

8,800,438 8,794,277 These financial statements were approved by the Trustee Board on 3

rd December 2015 and are signed on

their behalf by:- ……………………………… …………………………………………… Mohammad Ali Mumtaz Wahida Samie Sustainability, Engagement & Operations Officer Education & Campaigns Officer



CASHFLOW STATEMENT


Page 15

Cashflow Statement 2015 2014 Notes £ £ £ £ Net cash outflow from operating activities

20

(90,987)

(78,324)

Returns on investments and servicing of finance

Investment income 58,443 51,455 Interest received 64,013 79,465

122,456 130,920 Capital expenditure

Capital grant received 14,794 92,500 Purchase of tangible fixed assets (908,977) (211,733)

(894,183) (119,233) Decrease in cash (862,714) (66,637)



NOTES TO THE FINANCIAL STATEMENTS


Page 16

Notes to the Financial Statements

1. ACCOUNTING POLICIES a) Basis of Accounting

The accounts are prepared under the Charities Act 2011 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 & Financial Reporting Standards.

The Trustees consider that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future and, for this reason, they continue to adopt the going concern basis in preparing the annual financial statements.

b) 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. UCL grant of free serviced accommodation on the campus is accounted for as income and expenditure of the year at an estimated value to UCLU by reference to the alternatives available on the commercial market.

c) Resources expended

Expenditure includes irrecoverable VAT. Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Governance costs are those incurred for compliance with constitutional and statutory requirements, such as the annual audit, annual elections and training for sabbatical officers. The value of free serviced campus accommodation is apportioned on estimated floor space occupied. Other central overhead costs are apportioned to charitable and other projects/activities on a usage basis, pro rata to the staff costs of each project or activity undertaken.

d) Depreciation

A full year of depreciation is charged in the year of acquisition. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:-

Fixtures and fittings - between 3 and 10 years

Equipment - between 3 and 10 years Furniture - between 3 and 10 years Motor vehicles - between 3 and 10 years

Capital expenditure in excess of £1,000 is capitalised within fixed assets, expenditure less than this amount is charged to the Income and Expenditure account in the year it is incurred.

e) Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

f) Taxation

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




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g) Investments

Investments are stated at market value. Unrealised gains and losses due to movements in market value are taken to the revaluation reserve.

h) Pension costs UCLU contributes to two principal pension schemes on behalf of its employees: the

Universities Superannuation Scheme (USS) and the Superannuation Arrangements of the University of London (SAUL).

Both are defined benefit schemes. The USS and SAUL are multiemployer schemes and it is not possible to identify UCLU’s share of the underlying assets and liabilities. Therefore, as required by Financial Reporting Standard (FRS) 17, the contributions are charged directly to the income and expenditure account as if the schemes were defined contribution schemes.

USS is a “last man standing” scheme which means that in the event that another member institution becomes insolvent the other participating members will pick up any funding shortfall. Further details about USS, information about the latest informal valuations of the scheme and proposed rule changes can be found at www.uss.co.uk.

i) Fund accounting

Unrestricted funds Unrestricted funds relate to UCLU’s general operating funds from both trading and non-trading activity.

Unrestricted funds – Designated Designated unrestricted funds relate to funds which have been set aside for particular future

expenditure. Restricted funds

Restricted funds are those which must be applied in accordance with the purpose specified by the

donor. Expenditure relating to these purposes is charged directly to the fund. Revaluation funds Revaluation funds consist of the unrealised surpluses/(deficits) on the revaluation of investments held. j) Leased assets

Rentals payable under operating leases are charged as expenditure on a straight line basis over the period of the lease.




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2. Donations and Grants

Total Total Restricted Designated Unrestricted 2015 2014 £ £ £ £ £

Donations and Grants Clubs and societies grants - - 435,686 435,686 347,764 Sports grounds grant - 105,460 - 105,460 109,051 Union grant - 43,075 1,891,034 1,934,109 1,970,618 Facilities Grant - Trading - - 1,108,811 1,108,811 1,193,053 Facilities Grant - Other - - 1,364,450 1,364,450 1,354,567 Total block grant from UCL - 148,535 4,799,981 4,948,516 4,975,053 Other grants 105,161 - 25,792 130,953 232,095 TOTAL 105,161 148,535 4,825,773 5,079,469 5,207,148

3. INVESTMENT INCOME

Unrestricted 2015 2014 £ £ £

Income from deposits 58,443 58,443 79,465 Investment income 64,013 64,013 51,455

122,456 122,456 130,920

4. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Total Total Restricted Designated Unrestricted 2015 2014 £ £ £ £ £

- Trading income - - 3,660,539 3,660,539 4,083,023 - Promotional activity - - 18,713 18,713 15,482 - CSC income - - 49,990 49,990 41,126 - Sports ground income 1,063,901 432,461 - 1,496,362 589,777 - Medics, postgraduate,

SSEES income -

-

64,062

64,062

55,192

- Welfare & support income - - 71,894 71,894 55,788 - Representation & trustee income - - 4,098 4,098 11,744 - Welcome Fair income - - 64,432 64,432 65,362 - Other income - - 17,022 17,022 28,127

1,063,901 432,461 3,950,750 5,447,112 4,945,621




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5. TOTAL RESOURCES EXPENDED

Direct

Staff costs Direct

Other costs Direct

Depreciation

Support Costs Total 2015

Total 2014

£ £ £ £ £ £ Charitable activities: Trading expenditure 1,622,068 1,818,629 206,640 1,201,966 4,849,303 4,890,276 C&S expenditure 260,569 757,731 15,165 769,310 1,802,775 1,553,583 Sports grounds expenditure 284,884 287,137 43,534 556,866 1,172,421 1,330,245 Medics, postgraduate, SSEES expenditure 324 74,653 - 473 75,450 71,447

Welfare and support expenditure 250,395 163,731 797 739,158 1,154,081 1,194,073

Representation & trustee expenditure 611,750 116,479 - 952,583 1,680,812 1,656,606 Welcome Fair expenditure 2,774 59,707 - 4,040 66,521 63,069 Other amortisation - - - - - 29,433

3,032,764 3,278,067 266,136 4,224,396 10,801,363 10,788,732

Governance costs 906 23,881 - 1,321 26,108 17,470 3,033,670 3,301,948 266,136 4,225,717 10,827,471 10,806,202

Included in governance costs are fees to the University College London Union Auditors of £18,000 (2014: £12,510).




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6. SUPPORT COSTS (included in note 5)

2015 2014 £ £

Notional rent charge 2,473,261 2,547,620 Salaries and wages 667,162 675,292 Security - 26,927 Other staff related costs 11,207 22,027 Printing and stationery 10,674 14,265 Website and publicity 20,496 55,282 Cleaning 153,078 133,955 Utility costs - (2,467)

Computer and equipment 47,939 45,598 Repairs and maintenance 16,904 22,846 Depreciation 420,837 400,360 Legal and professional 136,422 40,918 Insurance 56,919 64,531 Phone and postage 486 612 Membership & subscription 53,212 51,864 Training and conferences 13,675 7,340 Bank charges and cash handling 6,317 3,320 Irrecoverable VAT 142,068 102,908 Other (4,940) 587

4,225,717 4,213,785

‘Notional Rent’ above relates to the cleared “Donation in Kind” costs for accommodation provided by the University. 7. SALARY COSTS

2015 2014 £ £

Wages and salaries 2,836,622 2,878,851 Agency costs 230,807 251,860 Social security costs 182,099 192,341 Pension costs 478,029 390,627

3,727,557 3,713,679

8. STAFF

Total Total Fulltime Casual (FTE) 2015 2014 No. No. No. No.

Average 74 32 106 108

The number of employees whose emoluments exceeded £60,000 was:-

2015 2014

£60,000 – 70,000 2 2




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9. TANGIBLE FIXED ASSETS

Fixtures &

fittings

Equipment

Furniture Motor

vehicles

Total £ £ £ £ £

COST At 1 August 2014 5,139,719 723,688 32,140 12,056 5,907,603 Additions 783,760 125,217 - - 908,977 Disposals (91,643) (185,630) (28,505) (12,056) (317,834) At 31 July 2015 5,831,836 663,275 3,635 - 6,498,746 DEPRECIATION At 1 August 2014 1,899,563 497,620 30,463 12,056 2,439,702 Charge for the year

581,435

124,512

958

-

706,905

Disposals (91,643) (185,630) (28,505) (12,056) (317,834) At 31 July 2015 2,389,355 436,502 2,916 - 2,828,773 NET BOOK VALUE At 31 July 2015 3,442,481 226,773 719 - 3,669,973 At 31 July 2014 3,240,156 226,068 1,677 - 3,467,901

10. CAPITAL COMMITMENTS

The union had contracted capital commitments of £Nil (2014: £875,071) relating to refurbishment works.

11. INVESTMENTS

Unlisted

investments Listed

investments Total

£ COST OR VALUATION: At 1 August 2014 60 3,554,786 3,554,846 Revaluation in the year - 184,595 184,595 NET BOOK VALUE: At 31 July 2015 60 3,739,381 3,739,441

At 31 July 2014 60 3,554,786 3,554,846

In order to continue receiving retrospective discounts through the Central Billing System UCLU has minority holdings of 60 “A” shares in NUS Services Limited. These shares are held at cost under unlisted investments as they are not held for a return.

Listed investments represent the value of investments held on behalf of the Union by the University in its University Trust fund. The investment was originally purchased by the Union and revaluations in investments are recognised through the Revaluation fund. The historic cost of these investments total £2,173,606 (2014: £2,173,606). There have been no additions or disposals of investments in the year. The remaining value within listed investments relates to a cash deposit held with Scottish Widows of £1,009,535 (2014: £1,009,535).




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12. STOCKS

2015 2014 £ £

Bars 15,262 16,324 Cafés 13,975 10,311 Sports ground - 1,756 Sports centre 3,827 3,145 Retail and other 17,129 33,304

50,193 64,840

13. DEBTORS

2015 2014 £ £ Trade debtors 75,067 110,869 Amounts due from University 641,711 - Other debtors 83,203 104,061 Prepayments and accrued income 16,088 15,000

816,069 229,930

14. CREDITORS: Amounts falling due within one year

2015 2014 £ £

Trade creditors 241,641 267,250 Amounts owed to the University - 51,087 Other creditors 619,563 480,723 Accruals and deferred income 65,256 38,116

926,460 837,176

15. RESTRICTED RESERVES

As at 1 August 2014

Incoming resources

Amortisation in the year

As at 31 July 2015

£ £ £ £

Deferred Capital Grants

2,751,744

14,794

(423,888)

2,342,650

Other restricted reserves

68,650

90,367

(92,221)

66,796

The Shenley Athletics Ground

Capital Fund - 1,063,901 - 1,063,901

2,820,394 1,169,062 (516,109) 3,473,347




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Deferred Capital Grant Fund relates to receipts received to fund specific capital purchases. The funds are written down over the life of the asset. Other restricted funds relate to receipts received for the following specific purposes:- Hardship Fund – received to set up a revolving hardship loan/grant service for students in need. The fund is administered by UCLU’s Rights & Advice Department and payments are authorised by the Officers/Trustees of the Union. Alumni Fund – received from UCL Alumni to be spent on student “Welfare” projects. These funds will be utilised by the Welfare Officer/Trustee as specified. Care/Holiday Fund – fundraised as part of RAG week to organise day trips and fund community action in the local community. These funds will be utilised by the Voluntary Services Unit as specified. South African Scholarship Appeal (SASA) Fund – fundraised to enable a South African Scholar to attend UCL. A scholarship was provided by UCL. The Unions contribution being to cover or supplement the scholars living costs. A new initiative along the same lines is currently being discussed. The Shenley Athletics Ground Capital Fund - originates from transfer of surplus funds previously held by the Trust on behalf of UCLU and used to carry out capital works to ensure the Grounds and facilities are fit for purpose. There are restrictions which limit the use of funds on capital works greater than £20k.

16. REVALUATION FUNDS

As at 1 August 2014

Investment gains

As at 31 July 2015

£ £ £

Revaluation fund 448,239 184,595 632,834

Revaluation funds consist of the unrealised surpluses/(deficits) on revaluation of the shares bought by UCL Union held in the University Trust Fund.

17. UNRESTRICTED RESERVES

As at 1 August 2014

Transfers

Incoming resources

Resources expended

As at 31 July

2015 £ £ £ £ £

Designated Funds Sports Development

Fund 166,735

-

43,075

(59,953)

149,857

Big Idea Fund 986,269 (733,665) - (2,604) 250,000 Designated Capital Reserve 1,339,708 - - (181,114) 1,158,594 Shenley Athletics Ground

Fund 1,399,077

-

537,921

(614,076)

1,322,922

3,891,789 (733,665) 580,996 (857,747) 2,881,373

Unrestricted Funds 1,633,855 733,665 8,898,979 (9,453,615) 1,812,884

Total Unrestricted Reserves

5,525,644

-

9,479,975

(10,311,362)

4,694,257




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The Sports Development Fund originates from the increase in grant received when the Chislehurst Sports ground was sold in 1999. There is no restriction on the grant but UCLU took the decision to ring fence these funds annually to be spent on sport and sport/student development. The Big Idea Fund represents ring-fenced project expenditure earmarked for use in delivering student submitted project ideas to be undertaken by the Union on behalf of our membership commencing in 2014-15 over a 4 year period. The Designated Capital Reserve represents ring-fenced capital expenditure earmarked for the following years in relation to the Union’s capital expenditure programme. The Shenley Athletics Ground Fund originates from the annual unused grant allocated to the management of the grounds by UCLU. The grounds are held in Trust by UCL on behalf of UCLU. These funds have been designated to support and fund the upkeep, maintenance and continued running of the Grounds and facilities.

18. PENSIONS

The two principal pension schemes for UCLU’s staff are the Universities Superannuation Scheme (USS) and the Superannuation Arrangements of the University of London (SAUL). Assets of each scheme are held in separate trustee administered funds. It is not possible to identify UCL’s share of the underlying assets and liabilities of either scheme and hence contributions are accounted for as if they were defined contribution schemes. The schemes are defined benefit schemes which are externally funded and contracted out of the State Second Pension (S2P) and valued every three years by professionally qualified independent actuaries using the Projected Unit Method. Universities Superannuation Scheme (USS)

The latest actuarial valuation of the USS was carried out as at 31 March 2014 to meet the requirements of the Pensions Act 2004, currently being audited by the scheme auditor. This valuation showed the scheme assets as being sufficient to cover 89% of its liabilities with an overall shortfall of £5,3bn. The key actuarial assumptions are as follows:- 31 March 2015 31 March 2014 Financial assumptions Discount rate 3.3% pa 4.5% pa Price Inflation (CPI) 2.2% pa 2.6% pa Pension increases 3.5% in the first year and

4.0% thereafter 4.4%

The main demographic assumption used relates to the mortality assumptions. Mortality in retirement is assumed to be in line with the Continuous Mortality Investigation's (CMI) S1NA tables as follows: Male members’ mortality S1NA [“light”] YoB tables – No age rating Female members’ mortality S1NA [“light”] YoB tables – rated down 1 year




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Use of these mortality tables reasonably reflects the actual USS experience. To allow for further improvements in mortality rates the CMI 2009 projections with a 1.25% pa long term rate were also adopted for the 2014 FRS17 figures, for the March 2015 figures the long term rate has been increased to 1.5% and the CMI 2014 projections adopted, and the tables have been weighted by 98% for males and 99% for females. The current life expectancies on retirement at age 65 are:

2015 2014 Males currently aged 65 (years) 24.2 23.7 Females currently aged 65 (years) 26.3 25.6 Males currently aged 45 (years) 26.2 25.5 Females currently aged 45 (years) 28.6 27.6

2015 2014 Existing benefits Scheme assets £49.0bn £41.6bn FRS 17 liabilities £67.6bn £55.5bn FRS 17 deficit £18.6bn £13.9bn FRS 17 funding level 72% 75% The total pension cost for UCLU in respect of the USS pension scheme amounted to £133,929 (2014: £137,821). Superannuation Arrangement of the University of London (SAUL) The latest actuarial valuation of the scheme was at 31 March 2011 using the projected unit method. The assumption and other data which have the most significant effect on the determination of the contribution levels are as follows:

Past Service

Future Service

Investment returns per annum - before retirement 6.80% 6.80% - after retirement 4.70% 4.70% Salary scale increases per annum – until 31 March 2014 3.75% 3.75% Salary scale increases per annum – after 31 March 2014 4.50% 4.50% Pension increases per annum 2.80% 2.80% Market value of assets at last actuarial valuation date £1,506m Proportion of members’ accrued benefits covered by the actuarial value of assets 82.0% Current Employers contribution rate 13.0% Total pension costs for UCLU in respect of the SAUL pension scheme amounted to £218,804 (2014: £238,963). Auto-enrolment Pension Scheme

This year, eligible employees have been included in the NEST Scheme for auto-enrolment. The

Union’s cost of contribution in the year amounted to £21,788 (2014: £13,843).




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19. OPERATING LEASE COMMITMENTS

At 31 July 2015 UCLU had annual commitments under non-cancellable operating leases as set out below:-

2015 2014 Land and

Buildings

Other Land and Buildings

Other

£ £ £ £ Operating leases which expire:

Due 2 – 5 years - 11,300 - 10,700

20. RECONCILIATION OF NET OUTGOING RESOURCES TO NET CASHFLOW FROM OPERATIONS

2015 2014 £ £

Net outgoing resources (178,434) (522,513) Investment income (122,456) (130,920) Capital grant repayment (14,794) (92,500) Depreciation 706,905 632,177 Decrease in stock 14,647 26,771 (Increase)/decrease in debtors (586,139) 25,095 Increase/(decrease) in creditors 89,284 (16,434)

Net cash outflow from operating activities (90,987) (78,324)

21. ANALYSIS OF CHANGES IN NET FUNDS

As at 1 August 2014

Cashflow As at 31 July

2015 £ £ £

Cash at bank and in hand 2,313,936 (862,714) 1,451,222

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed assets

Investments Net current

assets

Total £ £ £ £

Unrestricted Funds 168,729 1,,633,828 10,327 1,812,884

Designated Funds 1,158,594 1,472,779 250,000 2,881,373

Revaluation funds - 632,834 - 632,834

Restricted Funds 2,342,650 - 1,130,697 3,473,347

Total Funds £ 3,669,973 £ 3,739,441 £ 1,391,024 £ 8,800,438




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23. RELATED PARTY TRANSACTIONS

The Union is in receipt of a recurrent grant from the University of £2,475,254 (2014: £2,427,433). In addition UCLU occupies its building on a rent free basis under an informal licence subject to the Union maintaining the building in a good state of repair. Under the Charities SORP the ‘donations in kind’ must be valued and included within the accounts. The value to the Union for this space is considered to be £2,473,261 (2014: £2,547,620). The Trustees of UCLU are stated on page 1.10 sabbatical officers received remuneration totalling £250,000 (2014: £250,000 for 10 sabbatical officers) for their services as provided for within the Constitution. No trustees received reimbursement of expenses during the year (2014: £Nil).

UCLU is also a related party of Somers Town Community Sports Centre Ltd as it is considered to be under common control. UCLU has been invoiced for amounts totalling £2,707 (2014: £2,788) for the hire of sports facilities. Somers Town Community Sports Centre Limited was invoiced for amounts totalling £Nil (2014: £Nil). The balance due to UCLU at 31 July 2015 is £1,630 (2014: £2,429). 24. AFFILIATIONS

2015 2014 £ £

National Union of Students 52,126 51,830

25. CONTROLLING PARTY

The structure and governance of UCLU is stated in the Finance Committee’s report. The ultimate controlling party of the Union is the Trustee Board. The ultimate policy decision making body of the Union is the student body via the Union Council.

Documents

UCLU Financial Statements for the year ended 31 July 2015 · Marketing & Communications Manager Anthony Withstandley . UNIVERSITY COLLEGE LONDON UNION TRUSTEES’ REPORT FOR THE YEAR