Ulster University Students’ Union Annual report for the ...uusu.org/ee_uploads/general_files/10a._UUSU_Accounts_31_July_2016… · Ulster University Students’ Union Annual report

Ulster University Students’ Union

Annual report

for the year ended 31 July 2016


Annual report for the year ended 31 July 2016 Page(s)

Trustees and advisers 1

Officers of the Students’ Union report 2 - 5

Independent auditors’ report to the members of Ulster University 6

Students’ Union

Income and expenditure account 7

Balance sheet 8

Notes to the financial statements 9 - 19


1

Trustees and advisers Trustee Board Michael Quigg – (Student Officer) Colum Mackey – (Student Officer) Conan Meehan – (Student Officer) Kellie Murnion - (Student Officer) (Resigned 30 June 2016) Gillian Bell – (Student Officer) (Resigned 30 June 2016) Emma Bonner – (Student Officer) (Resigned 30 June 2016) Elliott Lyness – (Student Officer) (Resigned 30 June 2016) Hannah Rooney – (Student Officer) (Appointed 1 July 2016) Kevin McStravock - (Student Officer) (Appointed 1 July 2016) James O’Mullan – (Student Officer) (Appointed 1 July 2016) Ben Johnston – (Student Officer) (Appointed 1 July 2016) James Coyle - (External Trustee) Aoibheann Doherty- (External Trustee) Robert Stewart – (External Trustee) (Appointed 27 October 2015) Ellen McGuinness - (Student Trustee) (Resigned 30 June 2016) Dan Reynolds - (Student Trustee) (Resigned 30 June 2016) David McCaffrey - (Student Trustee) (Resigned 30 June 2016) Victoria Lutton – (Student Trustee) – (Resigned 30 June 2016) Danielle Roberts – (Student Trustee) (Appointed 11 March 2016) Key Personnel Emmett Mullally – General Manager Principle Office Ulster University Newtownabbey BT37 0QB Independent Auditors RSM Northern Ireland Chartered Accountants and Statutory Auditors Number One Lanyon Quay BELFAST BT1 3LG Solicitors Shean Dickson Merrick Washington House 14-16 High Street Belfast County Antrim BT1 2BS Bank First Trust Bank 35 University Road BELFAST BT7 1ND


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Officers of the Students’ Union report for the year ended 31 July 2016 Principal activities and results The Officers of the Students’ Union present their annual report and the audited financial statements for the year ended 31 July 2016. The information with respect to officers and advisers set out on page 1 forms part of this report. The Union is engaged in promoting the interests of the students and representing them in all matters affecting their interests. The Officers of the Students’ Union are required to prepare financial statements for each financial year that complies with the Constitution of the Students’ Union, all statutory requirements relating to the Students’ Unions’ financial affairs and the Financial Memorandum with the University. Under the Constitution of the Students’ Union the officers have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The results for the year are shown on page 7. Reference and administrative details of the Students Union, the Trustees and Advisers Details of these are included on page 1. Structure, governance and management The Students’ Union is an unincorporated organisation. It is governed by its Constitution. The Board of Trustees is responsible for the management and administration of the Union and may exercise all the powers of the Union. The Union has been called for charity registration on 12 September 2016. The trustees are made up of the following persons:

• Not more than seven officer trustees, elected by Members of the Union at an annual election; • Not more than four student trustees elected by Members of the Union at an annual election; and • Not more than three external trustees appointed by interview process.

Officer trustees can serve a maximum of three years, student trustees can serve a maximum of two consecutive years and external trustees may serve a maximum of two terms; each term being a maximum of four years in duration. The General Manager carries out the day to day management of the Students’ Union. The trustees meet on a quarterly basis. There are other committees in place to manage specific areas of the organisation. Procedures have been put in place for the induction and training of trustees. The Students’ Union ensures trustees are aware of their responsibilities on Corporate Governance. Relationship with related parties The relationship between Ulster University and the Union is established in an Ordinance of the University’s Governing Documents and the Union receives a block grant from the University, by agreement with the University on an annual basis. The Union occupies commercial space owned by the University for which it pays an annual rent. There is also non-monetary support which is intrinsic to the relationship between the University and the Union in relation to the provision of office space. Although the Union continues to generate supplementary funding from various mutual trading activities, it is dependent on the University’s financial support. There is no reason to believe that this or equivalent support from the University will not continue for the foreseeable future. The University of Ulster Students’ Union Club bars are separate legal entities from the Students’ Union but are overseen by the same management structure. Risk management The Trustees have overall responsibility for ensuring that the Students’ Union has in place an appropriate system of controls, financial and otherwise, to provide reasonable assurance that: • the Students’ Union is operating efficiently and effectively; • its assets are safeguarded against unauthorised use or disposition; • proper records are maintained and financial information used within the organisation or for publication is reliable;


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Officers of the Students’ Union report for the year ended 31 July 2016 (continued)

• it complies with relevant laws and regulations; and

• that the systems of financial control are designed to provide reasonable, but not absolute assurance against material

misstatement or loss. The major risks, to which the Students’ Union is exposed, are set out in the Risk register and systems have been established to mitigate those risks. Objectives and activities and public benefit The Students’ Union’s objective is the advancement of the education of students at Ulster University for the public benefit by:

• promoting the interests and welfare of students at Ulster University during their course of study and representing, supporting and advising students;

• being the recognised representative channel between students and Ulster University and any other external bodies; and • providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal

development of its students. Achievements and performance The Students’ Union continued to be extremely busy in 2015/16. In academic representation, over 800 course representatives were elected with senior representatives also elected in 29 university schools. Together with our full time officers, these representatives worked with the university to resolve issues such as making course costs more transparent, timetabling, teach out plans following course closures and improvements in assessment and feedback. The Students’ Union Learning and Teaching Awards had over 500 nominations from students to recognise University staff who had inspired them, with the Awards ceremony attended by over 100 worthy nominees. Our expanded Student Council, including full time, part time and international students, passed a number of new policies on topics such as extended library opening hours, ready to rent, campus car parking and free education. Our full time officers represented Ulster student interests appearing before the DEL committee to speak about student finance and fees, as well as travelling to Westminster to speak to MPs about the same issues. Our officers also led on a number of internal campaigns such as Save the Coleraine Crèche, Suicide Awareness, Mental Health Week, Get Home Safe and Register to Vote. The Students’ Union has 137 sports clubs and societies, with over 4000 members actively involved. There were over 320 society events where students got an opportunity to meet their peers and improve their employability skills. In sport there were 32 individual and team wins at intervarsity and national level in addition to 16 individual podium finishes, as well as representation at international competitions. Raising of funds The Students’ Unions’ main source of income is by way of block grant awarded by Ulster University. The Students’ Union operates a catering facility on the Jordanstown and Magee campuses and a shop on the Coleraine and Magee campuses. The Jordanstown shop closed in May 2015. Governance Governance of the organisation is of vital importance and is assessed on a regular basis through the review of the Strategic Plan, Risk Register and Financial Memorandum. The Students’ Union Student Executive, consisting of seven full time elected officers and relevant staff, meets every three weeks to discuss Students’ Union policy and membership issues. The Senior Management Team meets fortnightly to review operational matters. The quarterly meetings of the Trustee Board include the review of management accounts, progress of the Yearly Plan, and monitoring of the Risk Register. A governance sub group comprising of Students’ Union and University representatives met several times during the year to review governance structures. There are plans to submit a revised constitution for student referendum in the 2016/17 academic year.


4


Financial review

The Students’ Union income for the current year was £1,508,595 (2015: £1,538,356). The net surplus for the year was £40,916 in comparison to a deficit of £47,076 in the previous year. The accumulated funds amounted to £131,76 at 31 July 2016 (2015: £90,800). At 31 July 2016 the Union’s free reserves (i.e. unrestricted funds not represented by fixed assets) amounted to £107,407 (2015: £59,347). The trustees are satisfied that the Union has a sound financial base from which to continue its services to the student community. Reserves policy Reserves will be established to safeguard activity should funding not be available from the principle funding source. Principal Funding Source The principal funder is Ulster University through the allocation of block grant funding to the Union. Future plans The Students’ Union continues to work with the University to ensure it has good facilities on the new Belfast campus as the move into Belfast represents an exciting opportunity for us and our members. In 2016 we also commissioned independent market research to help inform our new strategic plan which will be finalised by December and launched in spring 2017. This plan will form the basis of our work for the next 3 years and will also link into the new University strategy. Statement of the Officers of the Students’ Union responsibilities The Officers of the Students’ Union are responsible for preparing the Officers of the Students’ Union report and the financial statements in accordance with applicable law and regulations. The Officers of the Students’ Union are required to prepare financial statements for each financial year that comply with the Constitution of the Students' Union, all statutory requirements relating to the Students’ Union’s financial affairs, the Financial Memorandum with the University, and other regulations relating to the Constitution and activities of the Students' Union and which are relevant to its financial affairs. Under the Constitution of the Students’ Union the officers have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are also required to show a true and fair view of the statement of balances at 31 July 2016 and of the Income and Expenditure for the year then ended, taking into account, where relevant and appropriate, all required statutory and other disclosure requirements. In preparing those financial statements, the officers of the Students’ Union are required to:

• select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Students’

Union will continue in business. The officers of the Students’ Union confirm that they have complied with the above requirements in preparing the financial statements. The officers of the Students’ Union are responsible for establishing and maintaining a system of controls, financial and otherwise, in order to


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a) carry on operations in an orderly and efficient manner; b) ensure adherence to laid down policies;

c) keep proper accounting records that disclose with reasonable accuracy at any time the financial position of the Union;

and

d) ensure that the financial statements comply with all the required statutory and other disclosure requirements.

They are also responsible for safeguarding the assets of the Students’ Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The officers of the Students’ Union are responsible for the maintenance and integrity of the Union’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Statement of disclosure of information to auditors So far as each of the officers of the Students’ Union at the date of approval of these financial statements is aware: • there is no relevant audit information of which the Students’ Union’s auditors are unaware; and • they have taken all the steps that they ought to have taken as officers of the Students’ Union in order to make themselves

aware of any relevant audit information and to establish that the Union’s auditors are aware of that information. Independent auditors The auditors, RSM Northern Ireland have indicated their willingness to continue in office, and a resolution concerning their reappointment will be proposed by the Trustee Board. By order of the Officers of the Students’ Union Officer Date: ______________________


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Independent auditors’ report to the members of Ulster University Students’ Union We have audited the financial statements of Ulster University Students’ Union for the year ended 31 July 2016 which comprise the Income and Expenditure Account, the Balance Sheet and the 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). Respective Responsibilities for the Officers and auditors As explained more fully in the Statement of the Officers of the Students’ Union Responsibilities set out on page 4 the officers 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 Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the officers as a body and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. 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 club’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the committee; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Officers of the Students’ Union report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements:

• give a true and fair view of the state of the Students’ Unions affairs as at 31 July 2016 and of its surplus for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

RSM Northern Ireland Number One Lanyon Quay Belfast BT1 3LG Date: ______________________


7

Income and expenditure account for the year ended 31 July 2016

2016 2015 Notes £ £

Income 2 1,508,595 1,538,356 Expenditure 3 (1,467,727) (1,585,648)

Operating surplus Interest receivable

40,868 48

(47,292) 216

Surplus/(Deficit) for the financial year 12 40,916 (47,076) Accumulated surplus on general fund at 1 August 2015 90,800 137,876

Accumulated surplus on general fund at 31 July 2016 12 131,716 90,800

All amounts above relate to continuing operations. The Union has no recognised gains and losses other than those included in the results above, and therefore no separate statement of total recognised gains and losses has been presented. There is no difference between the deficit for the financial year stated above, and its historical cost equivalent.


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Balance sheet as at 31 July 2016

2016 2015 Notes £ £

Fixed assets Tangible assets 6 24,309 31,453

Current assets Stocks 7 20,498 17,219 Debtors 9 52,672 59,078 Cash at bank and in hand 10 280,889 256,754

354,059 333,051 Creditors: amounts falling due within one year 11 (246,652) (273,704)

Net current assets 107,407 59,347

Net assets 131,716 90,800

Reserves Retained reserves 12 131,716 90,800

131,716 90,800

The financial statements and notes on pages 7 to 19 were approved by the Trustee Board of the Ulster University Students' Union on ______________________and were signed on its behalf by: ______________________ Colum Mackey Chair of Trustee Board ______________________ Emmett Mullally Accountable Officer


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Notes to the financial statements for the year ended 31 July 2016 1 Accounting policies These financial statements are prepared on a going concern basis under the historical cost convention and in accordance with applicable accounting standards in the United Kingdom. The principal accounting policies which have applied consistently throughout the year are set out below. Tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. The cost of tangible fixed assets is their purchase cost, together with any incidental costs of acquisition. Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, on a straight line basis over the expected useful economic lives of the assets concerned. The principal annual rates used are as follows: % Alterations to premises 10 - 20 Fixtures, fittings and equipment 20 Motor vehicles 20 Computer equipment 20 Leased assets Rentals under operating leases are charged to the profit and loss account as incurred. Revenue grants University grant income is based on the grant allocation approved by the Ulster University Resource Committee for the year to 31 July 2016 and is received in twelve equal monthly instalments.

Capital grants Capital grants received are released to the profit and loss account over the estimated lives of the related assets.

Value added tax VAT is payable on all taxable outputs and recoverable on all direct inputs. VAT on indirect inputs is recoverable in the ratio that taxable outputs bear to total outputs. There is, therefore, a portion of VAT attaching to indirect inputs which is irrecoverable, and which has been recharged to the relevant items of expense. Stocks Stocks are stated at the lower of cost and net realisable value. Cost represents actual invoice price and net realisable value is the price at which stock can be realised in the normal course of business. Provision is made where necessary for obsolete and slow moving stocks. Debtors Debtors are stated after all known bad debts have been written off and specific provision has been made against all debts considered doubtful of collection. Income Income is recognised as follows: University Grants University Grants are recognised as income when received.


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Notes to the financial statements for the year ended 31 July 2016 1 Accounting policies (continued) Commercial services Income is the amount derived from the provision of goods and services within the Union’s ordinary activities after deduction of value added tax. Revenue in respect of goods and services is recognised on customer receipt. Rent Rent receivable is recognised as income on an accruals basis. Marketing Marketing income is recognised as income on an accruals basis. Sundry income Sundry income is recognised as income when received. Pension The Union 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. Contributions are also made to two defined contribution schemes being NUSPs and NEST. Cash flow statement The Union is exempt under the terms of Financial Reporting Standard 1 “Cash flow statements” from publishing a cash flow statement. 2 Income

2016 2015 £ £

University grants 1,193,400 1,200,000 Rent receivable 6,112 4,733 Commercial services gross profit and other income (Note 4) 277,610 309,530 Marketing 21,455 12,408 Sundry income 10,018 11,685

1,508,595 1,538,356


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Notes to the financial statements for the year ended 31 July 2016 3 Expenditure

2016 2015 £ £

Admin salaries and wages 830,911 886,781 Commercial salaries and wages (Note 4) 180,278 228,911 Commercial rental charges 21,778 23,391 NUS and USI fees 42,267 39,036 Conference and committee expenses 16,683 14,461 Campaign and representation 22,292 19,024 Sports union (Note 5) 216,389 212,960 Societies 5,562 5,206 Telephone 3,363 6,328 Cleaning 12,959 17,117 Repairs and renewals 10,481 13,508 Insurance 11,509 8,897 Postage, printing and stationery 11,478 10,557 Audit and accountancy fees 4,480 8,971 Legal and consultancy fees 25,663 5,478 Motor and travelling expenses 21,206 23,864 Bank charges 5,454 5,807 Crèche ticket subsidies 1,235 3,494 Depreciation (Note 6) 11,381 35,778 Staff training and recruitment costs 1,205 2,322 Stocktaking fees 1,308 1,422 Marketing expense 13,730 9,792 VAT adjustment (3,885) 2,543

1,467,727 1,585,648


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Notes to the financial statements for the year ended 31 July 2016 4 Commercial services

2016 2015 £ £ Jordanstown Shop Turnover - 53,658 Opening stock - 8,194 Purchases - 31,420 Closing stock - - 39,614 Gross profit - 14,044 Wages and NIC - (33,887) Rent - (1,393) Net loss - (21,236)

% of turnover: - Gross profit - 26.2% Net loss - (39.6%)

2016 2015 £ £ Jordanstown Catering Turnover 155,206 193,233 Opening stock 760 695 Purchases 51,325 64,951 Closing stock (665) (760) 51,420 64,886 Gross profit 103,786 128,347 Wages and NIC (63,387) (66,095) Rent (2,326) (2,484) Net profit 38,073 59,768

% of turnover Gross profit 66.9% 66.4% Net profit 24.5% 30.9%


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Notes to the financial statements for the year ended 31 July 2016 4 Commercial services (continued)

2016 2015 £ £ Magee Shop Turnover 182,372 187,194 Opening stock 9,597 8,792 Purchases 107,279 114,655 Closing stock (7,965) (9,597) 108,911 113,850 Gross profit 73,461 73,344 Wages and NIC (39,714) (39,774) Rent (15,594) (15,557) Net profit 18,153 18,013

% of turnover: Gross profit 40.3% 39.2% Net profit 10.0% 9.6%

2016 2015 £ £ Magee Catering Turnover 126,422 116,033 Opening stock 1,388 983 Purchases 53,096 51,952 Closing stock (1,031) (1,388) 53,453 51,547 Gross profit 72,969 64,486 Wages and NIC (57,703) (53,694) Rent (1,244) (1,184) Net profit 14,022 9,608

% of turnover: Gross profit 57.7% 55.6% Net profit 11.1% 8.3%


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Notes to the financial statements for the year ended 31 July 2016 4 Commercial services (continued)

2016 2015 £ £ Coleraine Shop Turnover 56,915 47,158 Opening stock 5,474 6,099 Purchases 34,884 27,224 Closing stock (10,837) (5,474) 29,521 27,849 Gross profit 27,394 19,309 Other Income - 10,000 Total Income 27,394 29,309 Wages and NIC (19,474) (18,376) Rent (1,423) (1,132) Net profit/ (loss) 6,497 9,801

% of turnover: Gross profit 48.1% 40.9% Net profit (loss) 11.4% 20.8%

2016 2015 £ £ Coleraine Catering Turnover - 1,415 Opening stock - 1,415 Purchases - - Closing stock - - 1,415 Gross profit - Wages and NIC - 17,086 Rent - - Net profit/ (loss) - (17,086)


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Notes to the financial statements for the year ended 31 July 2016 4 Commercial services (continued) The charges for wages and NIC amounting to £180,278 (2015: £228,911) are included under the heading “commercial salaries and wages” in note 3. The gross profit before wages and NIC amounting to £277,611 (2015: £309,530) is included under the heading “commercial services gross profit” in note 2. Employee information can be summarised as follows:

2016 2015 £ £

Staff costs

Redundancy costs - 61,484 Wages and salaries 765,301 817,243 Social security costs 52,614 60,996 Other pension costs 193,274 175,969

1,011,189 1,115,692

Number

2016 Number

2015 Average monthly number of persons employed by the Union during the period

94

64

During the year the Union made contributions of £28,091 into a defined contribution scheme (2015: £29,654). There are contributions outstanding as at 31 July 2016 of £5,163 (2015: £5,603) under this scheme. 5 Sports union The expenditure for the sports union shown in note 3 relates only to direct expenditure for the sports union and does not include:

sabbatical and secretarial salaries for the sport union administrators in Coleraine and Jordanstown; telephone; liability insurance; and other management and administrative costs or other items of indirect expenditure affecting the running of the sports union.

Jordanstown Coleraine Magee Total £ £ £ £

Central funds 100,949 - - 100,949 Sporting clubs 68,175 40,335 6,930 115,440

169,124 40,335 6,930 216,389


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Notes to the financial statements for the year ended 31 July 2016 6 Tangible assets

Alterations to premises

Fixtures, fittings and equipment

Motor

vehicles

Computer equipment

Total £ £ £ £ £

Cost At 1 August 2015 196,554 189,066 31,882 115,085 532,587 Additions Transfer from Magee Club

- -

2,028

5,519

-

-

-

-

2,028

5,519

At 31 July 2016 196,554 196,613 31,882 115,085 540,134

Accumulated depreciation At 1 August 2015 195,785 178,309 25,182 101,858 501,134 Charge for year Depreciation on assets transferred from Magee Club

769

-

4,754

3,310

1,751

-

4,107

-

11,381

3,310

At 31 July 2016 196,554 186,373 26,933 105,965 515,825

Net book amount At 31 July 2016 - 10,240 4,949 9,120 24,309

At 31 July 2015 769 10,757 6,700 13,227 31,453

In the financial year ended 31 July 2014 Magee Club and the Students’ Union jointly bought furniture for a shared space. On closure of the Club, the furniture has been transferred to the Students’ Union at book value. 7 Stock

2016 2015 £ £

Shop stock Coleraine 10,837 5,474 Magee 7,965 9,597 Catering stock Jordanstown 665 760 Magee 1,031 1,388

20,498 17,219

8 Taxation As an educational charity, the Students' Union has received formal authorisation from the Claims Branch, Charity Division that it is exempt from any charge to taxation on its trading activities and on its investment income, so long as its income is applied for charitable purposes only.


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Notes to the financial statements for the year ended 31 July 2016 9 Debtors

2016 2015 £ £

Amounts due from UUSU Club (Magee) 655 - Amounts due from UUSU Club (Coleraine) 8,929 21,290 Trade debtors 36,701 22,812 Prepayments and accrued income 6,387 14,976

52,672 59,078

10 Cash at bank and in hand

2016 2015 £ £

Cash at bank Title of account First Trust Fixed Term Deposit Account 96,253 96,205 First Trust Current Account 184,291 140,534 First Trust Jordanstown Sports Union (4,661) 10,185 First Trust Coleraine Sports Union 162 5,528 First Trust Credit Card Account - (507) Santander Current Account 35 - Cash float 4,809 4,809

Total cash 280,889 256,754

11 Creditors: amounts falling due within one year

2016 2015 £ £

Amounts due to University of Ulster Students’ Union Club (Magee) - 462 Amounts due to UUSU Hardship Fund 32,067 47,328 Trade creditors 22,634 43,114 Taxation and social security 19,006 16,988 Rag account 3,085 1,590 Other creditors 122,123 142,306 Accruals and deferred income 47,737 21,916

246,652 273,704


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Notes to the financial statements for the year ended 31 July 2016 11 Creditors: amounts falling due within one year (continued) Included in other creditors is an amount of £24,328 (2015: £44,574) which relates to an under spend in the Sports Union current year budget allocation. There is also an amount of £65,240 (2015: £55,244) due to the various sports clubs within the Sports Union which relates to money raised from fund raising activities which is held by the Students Union on behalf of the individual sports clubs. 12 Reserves

Retained reserves

£

At 1 August 2015 90,800 Surplus for the year 40,916

At 31 July 2016 131,716

13 Pension schemes The Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings (CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual. The most recent valuation of the Scheme available 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. A valuation was carried out as at 30 June 2016 but the report will not be available until early 2017. 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 accruing on the 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 recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended to clear the ongoing funding deficit over a period of 17 years and will increase by at least 5% each year. These contributions also include an allowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 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 total contributions paid into the Scheme by the Union in respect of eligible employees for the year ended 31 July 2016 amounted to £153,834 (2015: £146,315) but this includes an additional proportion of contributions in respect of future accrual as well as deficit contributions. There were also £28,091(2015: £29,654) paid into defined contribution schemes.


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Notes to the financial statements for the year ended 31 July 2016 14 Related party disclosures The Students’ Union is financially dependent on Ulster University for funding and is therefore regarded as a related party. It received £1,193,400 as a block grant in the financial year. Rent of £21,778 was paid to the University for the use of premises for commercial purposes. University of Ulster Students’ Union Clubs are regarded as related parties as defined by Financial Reporting Standard 8 “Related Party Disclosures”. The University of Ulster Students’ Union (UUSU) club bars operate licensed premises at the campuses in Coleraine and Magee. The financial statements of each club are reported independently of UUSU financial statements. Magee Club ceased trading May 2016. The amounts due from and owed to each of the clubs are as stated in notes 9 and 11 of the accounts. 15 Contingent liabilities The Ulster University Students’ Union has issued a letter of support to the University of Ulster Students’ Union Club (Coleraine) to provide financial support should it be required for a period of 12 months from the date of signing the financial statements of the Club; the date of signing being.