warwick su accounts 2009-10

UNIVERSITY OF WARWICK

STUDENTS' UNION

CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 July 2010

ISSUE: 12th January 2011

PAGE

Legal and Administrative Information 1 - 7

Report of the Board of Trustees 8 - 13

Statement of the Board of Trustees' Responsibilities 14

Independent Auditors' Report 15 - 16

Group Income and Expenditure Account 17

Balance Sheets 18

Consolidated Cash Flow Statement 19

Principal Accounting Policies 20 - 22

Notes to the Financial Statements:

Note 1 Deficit for the Year 23

Note 2 Pension Scheme 23 - 24

Note 3 Taxation 24

Note 4 Provisions for Liabilities and Charges 24

Note 5 Tangible Fixed Assets 25

Note 6 Capital Commitments 25

Note 7 Fixed Asset Investments 26 - 27

Note 8 Stocks 27

Note 9 Debtors 28

Note 10 Creditors 28

Note 11 Accumulated Revenue Reserve 29

Note 12 Cash Flow Statement 29

Note 13 Related Party Transactions 30

Note 14 Post Balance Sheet Events 31

CONTENTS

UNIVERSITY of WARWICK STUDENTS' UNION

For the year ended 31 July 2010

LEGAL AND ADMINISTRATIVE INFORMATION

UNION UNIVERSITY of WARWICK STUDENTS' UNION

GOVERNING INSTRUMENT The Union was incorporated under the Royal Charter founding

the University of Warwick. The Union's affairs are however

governed by its own constitution and regulations drawn up

under that constitution.

CHARITABLE STATUS The University of Warwick Students' Union is an unincorporated

charity established under the Education Act 1994. As Students'

Unions connected with exempt higher education institutions

were removed by section 11(9), Charities Act 2006, from the

list of exempt charities in Schedule 2 to the Charities Act 1993,

the Warwick Students' Union has registered as a charity and a

company limited by guarantee from 1st August 2010.

From 1 August 2010 WARWICK STUDENTS' UNION

Registered UK charity number: 1136894

A company limited by guarantee registered in England and Wales.

Registered company number: 7297865

BOARD OF TRUSTEES Appointed Resigned

Sabbatical Officers A Bradley President / Chair 1 August 2009 31 July 2010

S Khaku Education 1 August 2009 31 July 2010

A Perkins Finance 1 August 2009 31 July 2010

I Acquah Communications 1 August 2009 31 July 2010

J Hall Societies 1 August 2009 31 July 2010

A Twiss Sports Clubs 1 August 2009 31 July 2010

S Wannell Welfare 1 August 2009 31 July 2010

D Stevens President 1 August 2010

S Ruston Education 1 August 2010

S Stanley Finance 1 August 2010

C Luck Democracy & Comms 1 August 2010

A White Societies 1 August 2010

G Whitworth Sports Clubs 1 August 2010

L Boe Welfare 1 August 2010


For the year ended 31 July 2010 1

BOARD of TRUSTEES continued Appointed Resigned

Student Trustees B Wood Vice Chair 24 November 2008

A Clarey 24 November 2008

C Watts 24 November 2008

M Wassermann 16 February 2009 28 June 2010

S Stanley 24 November 2008 28 June 2010

T Evans 1 August 2010

J L E Wolfson 1 August 2010

V N J Fowler 1 August 2010

Lay Members T Smeaton 24 November 2008

S P Baylis 9 March 2009

T W I King 10 May 2010

L C Morrison 10 May 2010

J Ryder 10 May 2010

SENIOR MANAGEMENT

Chief Executive J Clements 14 July 2008




COMPANY STUDENTS' UNION SERVICES WARWICK LIMITED

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

governed by its Memorandum and Articles of Association.

COMPANY REGISTERED

NUMBER 2197761

DIRECTORS The following directors were appointed on 1 August 2009 and

resigned on 31 July 2010:

A Bradley

A Perkins

I Acquah

J Hall

S Khaku

A Twiss

S Wannell

The following directors were appointed on 1 August 2010:

S Stanley

G Whitworth

The following director was appointed on 18 November 2010:

A H Smith

COMPANY SECRETARY J Clements

REGISTERED OFFICE SUHQ Union North

Warwick Students' Union

University of Warwick

Gibbet Hill Road

Coventry

CV4 7AL




COMPANY WARWICK STUDENTS' UNION SERVICES LIMITED

GOVERNING INSTRUMENT The company is limited by guarantee not having share capital. It

is governed by its Memorandum and Articles of Association.

COMPANY REGISTERED

NUMBER 1187495

DIRECTORS The following directors were appointed on 1 August 2009 and


A Bradley

A Perkins

I Acquah

J Hall

S Khaku

A Twiss

S Wannell

The following director was appointed on 1 August 2010:

D Stevens





Gibbet Hill Road

Coventry

CV4 7AL

DISSOLUTION The company is dormant and an application for dissolution was

made in August 2010.

The company was dissolved on 30 November 2010.




COMPANY MEMBERSHIP SOLUTIONS LIMITED



COMPANY REGISTERED

NUMBER 5525449

DIRECTORS The following directors continued to hold office during the period:

C Horton

J Clements

S Gilling

J Bonsall

The following director was appointed on 1 August 2009 and


A Bradley


D Stevens

The following director was appointed on 14 September 2010:

S Stanley





Gibbet Hill Road

Coventry

CV4 7AL




COMPANY STUDENTS' UNION WARWICK EVENTS LIMITED



COMPANY REGISTERED

NUMBER 6371766

DIRECTORS The following director has held office since incorporation:

J Clements

The following director held office since incorporation and

resigned on 2 September 2009:

D Walters

The following director was appointed on 1 August 2009 and


A Bradley


D Stevens





Gibbet Hill Road

Coventry

CV4 7AL

DISSOLUTION The company is dormant and an application for dissolution was

made in August 2010.

The company was dissolved on 30 November 2010.




BANKERS NatWest plc

24 Broadgate

Coventry

West Midlands

CV1 1ZZ

Barclays Bank plc

25 High Street

Coventry

West Midlands

CV1 5QZ

SOLICITORS Band Hatton & Co

1 Copthall House

Station Square

Coventry

West Midlands

CV1 2FY

AUDITORS BakerTilly UK Audit LLP

Chartered Accountants

St Philips Point

Temple Row

Birmingham

B2 5AF




REPORT OF THE BOARD OF TRUSTEES

The Board of Trustees of the Union submit their report and the financial statements of the

University of Warwick Students' Union for the year ended 31 July 2010.

UNION CONSTITUTION

The Royal Charter under which the University of Warwick was founded requires that there shall

be a Students' Union. It is therefore considered that the Union is incorporated under the

auspices of the University and shares its charitable status.

The Union's affairs are however governed by its own constitution and regulations drawn up under

that constitution.

Following the publication of the Charities Act 2006, the Union has registered with the Charity

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

THE AIMS AND OBJECTIVES OF THE UNION ARE:

- to promote the interests of Union members as effectively as possible at institutional,

local and national level, now and in the future.

- to afford effective communication between its members and the University of

Warwick and other bodies.

- to provide for the educational, cultural, recreational, sporting, social and welfare

needs of its members.

- to operate an effective equal opportunities policy whilst guaranteeing freedom of

expression and minimising any adverse environmental impact, therefore providing a

safe and enjoyable environment for all.

THE FOLLOWING ARE MEMBERS OF THE UNION:

Full Members

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

be a member under clause 22 (2) c) of the Education Act 1994. Sabbatical Officers of the Union

are full members of the Union.

Associate Members

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

paid any required fee.




Honorary Members

Those persons conferred honorary life membership by the Union Council or a Union General

Meeting.

The Union may withdraw membership on disciplinary grounds.

GOVERNANCE

The Union is governed by its constitution and individual policies.

The policy making bodies are:

- Referenda

- General Meetings

- Union Council

Union policy may be amended by resolution of a Referendum, the Annual General Meeting or

Emergency General Meeting and the Union Council.

The sovereign body of the Union is the Annual General Meeting or Emergency General Meeting

except in respect of amendments to the Union constitution which are the business of a duly

convened Referendum.

The Constitution can only be changed by Referendum and changes must be approved by the

University Council before taking effect.

Policies passed by Referendum cannot be overturned without a further Referendum. Policies

passed by General Meetings cannot be overturned without being debated and voted on at a

further General Meeting or Referendum.

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

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

OFFICERS OF THE UNION

The Officers of the Union are:

- Sabbatical Officers

- Chair and Deputy Chair of Union Council

- Chairs and members of Union Standing and Representation Committee

There are seven Sabbatical Officers including a President, Deputy President and Sabbatical

responsible for finance.




REFERENDA

The President calls up to a maximum of two referendum periods in each academic year at least

thirty-five days in advance of close of polling.

Members are given a period of fourteen days to submit motions which may only be called to

propose changes to the Constitution, to debate a controversial issue, to challenge an affiliation

or to propose any changes previously determined at Referendum level.

The quorum for Referendum motions is:-

a) 7.5% of the Union's full membership to cast a valid vote on the motion or

b) 5.0% of the Union's full membership to cast a valid vote for the motion or

c) 5.0% of the Union's full membership to cast a valid vote against the motion.

GENERAL MEETINGS

The President calls an Annual General Meeting during each academic year. Further General

Meetings are called by the President if deemed necessary or on receipt of a petition signed by at

least 0.5% of the full membership.

The policy quorum for all General Meetings is at least 0.5% of the full membership. An inquorate

meeting becomes an open meeting which may discuss motions in full and take an indicative vote

to be submitted to the next Union Council meeting for consideration.

Union Officers are obliged to attend all General Meetings.

UNION COUNCIL

Membership of the Union Council includes:


- Chairs of Union Standing Committees and Forums

- Chairs of Union Representation Committees

- Convenors of Union Campaigning Groups

- Senate and Council Representatives, provided they are full Union members

- Undergraduate, Postgraduate and Medical Faculty Representatives, provided they

are full Union members

- Chair and Deputy Chair of Union Council

- Chair of the Executive Committee

The membership of Union Council has a greater number Councillors than Officers.




BODIES REPORTING TO COUNCIL

The bodies that report to Council are:

- Standing Committees (with the exception of Sports Committee)

- Representation Committees

- Working Groups

BOARD of TRUSTEES

There is a Board of Trustees whose membership is:

- an appointed Board of Trustees consisting of up to five lay members and up to

six full student members who are not Sabbatical Officers


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

ultimate responsibility for the financial matters and financial procedures of the Union.

The Board of Trustees may choose to prohibit the implementation of any policy which has

financial implications, if it is passed without a realistic financial plan.

RELATIONSHIP WITH THE UNIVERSITY OF WARWICK

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

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

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

the Union at an agreed rent.

The Education Act 1994 imposes a duty on the University to take such steps as are reasonably

practicable to secure that the Union operates in a fair and democratic manner and is

accountable for its finances.

RISK MANAGEMENT

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

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

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

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

In particular, the risk management plan with regard to future finances prompted the recent cost

and staffing restructure review with a view to improved long term financial viability.




REVIEW OF THE YEAR & FINANCIAL PERFORMANCE

January saw the redevelopment of SU South finally completed. The CuriosiTea Café outlet was

the last part of the programme to be delivered.

Trading for the food and beverage outlets remained strong with a particularly pleasing outturn for

the Dirty Duck Pub which ended 2009-10 £129k ahead of budgetted surplus before overheads.

The Union received a package of measures from the University and the University Foundation

Fund during the year to offset the impact of the delays to the building. The Union received a

one-off additional grant of £350k and was granted a rent holiday for a year.

With the redevelopment completed, the February planning round used figures based on actual

performance. This review highlighted the need to go back and fundamentally reassess costs

across the Union to ensure a more financially sustainable future. The Union embarked on a

restructuring programme which identified approximately £250k of staff savings going forward.

To enable the Union to embark on this programme of cost reduction measures the University

granted an additional one-off allocation of £90k towards the restructure programme.

The Union looked forward to 2010-11 and registered as a charitable company limited by

guarantee on 1 August 2010. Leading up to incorporation, a considerable amount of work was

undertaken to review the governing and constitutional documents.

Despite all of these challenges the Union ended the the 2009-10 year £41k ahead of budget

achieving a surplus of £567k. This meant that the year end reserves position was positive - at

£62k - and some of the pressures with regard to the cash position greatly reduced (when

compared to the same period in 2008-09).

The Union revisited the programme of end of year celebrations and launched the Six Days of

Summer. This series of events built on the success of previous end of year balls (Final Fling

Graduation Ball and SportsFed Ball) by adding a Summary Party outdoor music festival combined

with the student run Warwick Students Arts Festival. This ended a tough year on a high note as

the students celebrated their achievements and enjoyed the entertainments in the summer

sunshine.

Looking to the years ahead it is difficult to forecast what impact the Browne Report on student

fees may have on future funding. The Union undertook the restructuring process in order to

build back reserves over time and become more sustainable. It is hoped that these measures

will prove sufficient until the future funding position becomes more clear.

The Union is very clear that the next few years will not be easy and there remain difficult

challenges ahead.




RESERVES POLICY

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

the level of free reserves required.

Prior to incorporation at 31 July 2010 the Union's reserves position was £62,426.

AUDITORS

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

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

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

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

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

that it has been communicated to the auditor.

On behalf of the Board of Trustees.

D Stevens S Stanley

President Finance Officer

12 January 2011



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

financial statements in accordance with applicable law and regulations.

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

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

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

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

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

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

period.

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

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

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

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

subject to any material departures disclosed and explained in the financial

statements.

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

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

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

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

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

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

prevention and detection of fraud and other irregularities.

STATEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES



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

year ended 31 July 2010 on pages 17 to 31.

This report is made solely to the Union's Board of Trustees, as a body, in accordance with the

Charities Act 1993. Our audit work has been undertaken to that we might state to the Union's

Board of Trustees those matters we are required to state to them in an auditor's report and for

no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Union and the Union's Board of Trustees as a body, for

our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF BOARD OF TRUSTEES AND AUDITORS

The Board of Trustees responsibilities for preparing the Annual Report and the financial

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

Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Board of

Trustees Responsibilities.

We have been appointed as auditors under section 43 of the Charities Act 1993 and report in

accordance with regulations made under section 44 of that Act. Our responsibility is to audit the

financial statements in accordance with relevant legal and regulatory requirements and

International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and

are properly prepared in accordance with the Charities Act 1993. We also report to you if,

in our opinion the information given in the Report of the Board of Trustees is not consistent with

those financial statements, if the Union has not kept sufficient accounting records, if the

Union's financial statements are not in agreement with these accounting records, or if we have

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

We read the Report of the Board of Trustees and consider the implications for our report if we

become aware of any apparent misstatements within it.

BASIS OF AUDIT OPINION

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)

issued by the Auditing Practices Board. An audit includes examination, on a test basis, of

evidence relevant to the amounts and disclosures in the financial statements. It also includes

an assessment of the significant estimates and judgements made by the Board of Trustees in

the preparation of the financial statements, and of whether the accounting policies are

appropriate to the group's and Union's circumstances, consistently applied and adequately

disclosed.

INDEPENDENT AUDITORS' REPORT



We planned and performed our audit so as to obtain all the information and explanations which

we considered necessary in order to provide us with sufficient evidence to give reasonable

assurance that the financial statements are free from material misstatement , whether caused

by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall

adequacy of the presentation of information in the financial statements.

OPINION

In our opinion:

- the financial statements give a true and fair view, in accordance with United

Kingdom Generally Accepted Accounting Practice, of the state of affairs of the

Union and the Group as at 31 July 2010 and of the Group's surplus of income over

expenditure for the year then ended; and

- the financial statements have been prepared in accordance with the Charities Act

1993.

BAKER TILLY UK AUDIT LLP

Statutory Auditor

Chartererd Accountants

St Philips Point

Temple Row

Birmingham

B2 5AF

++ January 2011

INDEPENDENT AUDITORS' REPORT continued



2010 2009

Note £ £

INCOME

Union block grants from the University of Warwick 1,959,276 2,114,064

Turnover from commercial operations 4,013,641 3,444,623

Miscellaneous income 121,122 49,102

Interest receivable 3,414 10,656

6,097,453 5,618,445

EXPENDITURE

Operating costs 2,068,301 1,897,737

Payroll 2,774,734 2,738,177

General overheads 439,712 1,171,349

Sports, Social and Committee costs 105,665 102,722

Depreciation 1, 5 142,165 131,196

Rent 1 - 85,000

Interest payable - 76,140

5,530,577 6,202,321

SURPLUS / (DEFICIT) FOR THE YEAR 566,876 (583,876)

This income and expenditure account represents a consolidation of the income and expenditure

of the University of Warwick Students' Union, Students' Union Services Warwick Limited, Warwick

Students' Union Services Limited, Membership Solutions Limited and Students' Union Warwick

Events Limited.

The activities of Warwick Students' Union Services Limited and Students' Union Warwick Events

Limited have been discontinued and the companies are dormant. Further details of their activity

levels are disclosed in note 7. All other activities are classed as continuing.

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

gains and losses have been included in the Income and Expenditure Account.

GROUP INCOME AND EXPENDITURE ACCOUNT



GROUP UNION

2010 2009 2010 2009

Note £ £ £ £

FIXED ASSETS

Tangible fixed assets 5 147,436 129,988 147,436 129,988

Investments 7 24,476 24,476 8,534 8,534

171,912 154,464 155,970 138,522

CURRENT ASSETS

Stocks 8 28,991 9,219 28,991 9,219

Debtors: Amounts falling

due within one year 9 163,452 107,119 242,668 224,197

Short-term deposits 355,519 183,001 342,857 170,791

Cash at bank and in hand 407,121 104,065 334,397 36,130

955,083 403,404 948,913 440,337

CREDITORS: Amounts falling

due within one year 10 (988,747) (1,062,320) (959,748) (1,047,474)

NET CURRENT LIABILITIES (33,664) (658,916) (10,835) (607,137)

PROVISIONS for LIABILITIES

and CHARGES 4 (75,824) - (75,824) -

TOTAL ASSETS / (LIABILITIES) 62,424 (504,452) 69,311 (468,615)

REPRESENTED BY:

Accumulated revenue reserves 62,424 (504,452) 69,311 (468,615)

The financial statements on pages 17 to 31 were approved by the the Board of Trustees and authorised

for issue on 12 January 2011 and are signed on its behalf by:

D Stevens S Stanley

President Finance Officer

The Group Balance Sheet represents a consolidation of the Balance Sheets of the University of Warwick

Students' Union, Students' Union Services Warwick Limited, Warwick Students' Union Services Limited,

Membership Solutions Limited and Students' Union Warwick Events Limited.

BALANCE SHEETS



2010 2009

Note £ £

Net cash inflow from operating activities 12 631,773 125,419

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE

Interest receivable 12 3,414 10,656

Interest payable 12 - (76,140)

Taxation - -

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT

Payments to acquire tangible fixed assets 5 (159,613) (73,711)

FINANCING

Long term loan repayment - (138,860)

Increase / (Decrease) in Cash 475,574 (152,636)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

2010 2009

£ £

Increase / (Decrease) in cash in the period 475,574 (152,636)

Change in net funds resulting from non-cash flows - 138,859

Movement in net funds in the period 12(b) 475,574 (13,777)

Net funds at 1 August 287,066 300,843

Net funds at 31 July 12(b) 762,640 287,066

CONSOLIDATED CASH FLOW STATEMENT



PRESENTATION OF ACCOUNTS

These accounts represent a consolidation of the accounts of the University of Warwick Students'

Union and its subsidiary undertakings Students' Union Services Warwick Limited, Warwick

Students' Union Services Limited, Membership Solutions Limited and Students' Union Warwick

Events Limited.

BASIS OF ACCOUNTING

The accounts have been prepared in accordance with applicable accounting standards and under

the historical cost convention.

BASIS OF CONSOLIDATION

These accounts consolidate the financial statements of the Union and its four subsidiary

companies. Intra-group transactions are eliminated on consolidation.

As disclosed in note 7, the minority interest arising on the consolidation of Membership Solutions

Limited has not been reflected in these consolidated financial statements on the basis that the

value is not material.

UPDATE ON GOING CONCERN

During the year ended 31 July 2010, the Union made a surplus of £566,877 (2009: loss of

£583,876). This marks the end of the major redevelopment and refurbishment project for

the main Union building SU South. This surplus contribution built the reserves at year end

back to a positive position of £62,424 (2009: negative reserves of £504,452) and enabled

the Union to register as a charity and a company limited by guarantee.

This surplus was achieved with additional financial support from the University in the form of a

one-off grant and a rent holiday. This assistance ensured that the impact of delays in opening

were minimised and the Union achieved a more financially stable position.

In January and February - following the opening of the redevelopment - the Union under took a

review of future finances. A staff restructuring and cost cutting programme was implemented to

ensure that going forward the Union has adequate resources to continue in operational

existance building back operational reserves. The members of the Board of Trustees have

reviewed the financial forecasts.

PRINCIPAL ACCOUNTING POLICIES



TANGIBLE FIXED ASSETS

It is the policy of the Union to write-off, in the year of purchase, all fixed assets purchased from

its own resources for use by clubs and societies. Equipment purchased for clubs and societies

during the year cost £41,849 (2009: £18,568).

The cost of other tangible fixed assets is capitalised and depreciated with depreciation being

charged by equal annual instalments commencing with the year of acquisition at rates estimated

to write-off their cost less any residual value over the expected useful lives as follows:

Building improvements 3 - 10 years

Fixtures, fittings and office equipment 3 - 5 years

IT equipment 3 years

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

GRANTS

The Union received block grants from the University of Warwick and these are credited to the

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

INCOME

Income represents the value, net of Vaue Added Tax, of income recognised through the

operation of bars, catering outlets, entertainment events, gaming, vending, photo and

launderette machines, equipment hire, rental income and the provision of stewarding, event

management, marketing and reception services.

Bars and catering income is recognised at the point of sale of the related goods.

Entertainment income is recognised at the point at which the related event commences.

Machine income is recognised in line with machine usage.

Equipment hire, stewarding, event management, marketing and reception services income is

recognised as the contracted service is provided.

LEASE CONTRACTS

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

PRINCIPAL ACCOUNTING POLICIES continued



STOCKS

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

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

of disposal.

DEFINED BENEFIT PENSION SCHEME

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

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

is valued at least every three years by a professionally qualified independent actuary with the

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

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

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

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

as if the Scheme were a defined contribution scheme based on actual contributions paid through

the year.

INVESTMENTS

Long term investments are described as participating interests and are classified as fixed assets.

Participating interests representing unlisted investments are stated at cost in the balance sheet.

Provision is made for any impairment in the value of fixed asset investments.

PRINCIPAL ACCOUNTING POLICIES continued



1: RESULT FOR THE YEAR

The surplus for the year is stated after charging: 2010 2009

£ £

In respect of audit services 18,000 20,700

In respect of tax and other non-audit advice 5,675 14,219

Depreciation of tangible fixed assets 142,165 165,118

Operating leases: building - 85,000

2: PENSION SCHEME

The Union participates in the Students' Union Superannuation Scheme, which is a defined benefit

scheme whose membership consists of employees of students' unions and related bodies throughout

the country. Benefits in respect of service up to 30 September 2003 are accrued on a "final salary"

basis, with the benefits in respect of service from 1 October 2003 onwards accruing on a Career

Average Revalued Earnings (CARE) basis.

The most recent valuation of the Scheme was carried out as at 1 October 2007 and showed that the

market value of the Scheme's assets was £56,318,000 with these assets representing 69% 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 £24,901,000.

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

relating to the rate of return on investments and the rates of increase in salaries and pensions.

The following assumptions applied at 1 October 2007:-

- The investment return would be 7.3% per annum before retirement and 5.3% per annum

after retirement.

- Salaries would increase at 5.2% per annum, equivalent to 2.0% per annum above inflation.

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

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

appropriate assumptions where these are dependent on inflation.

The 2007 Valuation recommended a contribution requirement expressed in two parts: a rate of 17.3%

of Earnings (with higher rates in certain circumstances) paying for future accrual, with additional monthly

contributions expressed in monetary terms intended to clear the ongoing funding deficit over a period of

NOTES TO THE FINANCIAL STATEMENTS



2: PENSION SCHEME continued

15 years. These rates applied with effect from 1 October 2008 and will be formally reviewed following

completion of the next Valuation due with an effective date of 1 October 2010. Surpluses or deficits

which arise at future valuations will also impact on the Union’s future contribution commitment.

In addition to the above contributions, the Union also pays its share of the Scheme’s levy to the Pension

Protection Fund.

The contribution rate (excluding deficit contributions) for the period from 1 August 2009 to 31 July 2010

applicable to this Union for the majority of members is 8.17% of Earnings for members

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

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

31 July 2010 amounted to £171,523 (2009: £160,519), including funding deficit contributions.

3: TAXATION

The Union, as an unregistered charity deriving its charitable status from the University of Warwick's

Royal Charter, is exempt from corporation tax and income tax on its charitable income.

Students' Union Services Warwick Limited

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

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

Membership Solutions Limited

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

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

Warwick Students' Union Services Limited

This company was dormant during the year and no taxable profits have arisen in Warwick Students'

Union Services Limited.

Students' Union Warwick Events Limited

During the year the inter-company liability with the Union of £66,157 was written-back to the profit and

loss. The Union confirmed that the amount had been approved for write-off. The company was

otherwise dormant during the year and the profits arising from the write-off in the year have been offset

against losses brought forward. No taxation arises on the results of Students' Union Warwick Events

Limited.

4: PROVISIONS FOR LIABILITIES AND CHARGES

The Union under took a staff restructure during the year and a provision of £75,824 was made for

costs associated with the programme. It is expected that this expenditure will be incurred in the current

fiscal year (2010-11).

NOTES TO THE FINANCIAL STATEMENTS



NOTES TO THE FINANCIAL STATEMENTS continued

5: TANGIBLE FIXED ASSETS - GROUP AND UNION Fixtures,

Building Fittings and

Total Improvements IT Equiment

£ £ £

Cost

1 August 2009 2,632,370 849,739 1,782,631

Disposal of asset (1,843,341) (322,868) (1,520,473)

Additions 159,613 17,349 142,264

31 July 2010 948,642 544,220 404,422

Depreciation

1 August 2009 2,502,382 835,434 1,666,948

Disposal of asset (1,843,341) (322,868) (1,520,473)

Charge for the year 142,165 11,207 130,958

31 July 2010 801,206 523,773 277,433

Net Book Value

31 July 2009 129,988 14,305 115,683

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

Following the redevelopment of the SU South building and prior to incorporation on 1 August 2010

the Union undertook a review of the fixed asset register. This resulted in the write-off of fully

written-down assets (no longer held) contained in this note.

6: CAPITAL COMMITMENTS 2010 2009

Future capital expenditure: £ £

Authorised but not contracted 7,500 12,210

Contracted - 54,850

7,500 67,060




7: FIXED ASSET INVESTMENTS 2010 2009

£ £

Group

Cost

NUS Services Limited: deposit under

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

NUS Services Limited: 'A' Shares 60 60

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

24,476 24,476

Union

Cost

NUS Services Limited: deposit under

Students' Unions central billing scheme 8,332 8,332

Shares in subsidiary undertaking 202 202

8,534 8,534

The Union holds the entire equity share capital of the following unlisted companies:

Students' Union Services Warwick Limited

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

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

trading services.

Students' Union Warwick Events Limited

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

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

arranging external events.

The company was dormant during the year and has ceased trading. An application has been made to

dissolve this company.

For the year ended 31 July 2010, the company's turnover was £nil (2009: £54,931), gross profit

was £nil (2009: £9,794), and profit on ordinary activities, before and after taxation was £66,157

(2009: loss of £66,157). The profit during the year occurred due to the write-back of £66,157

of inter-company debt. At 31 July 2010, the company held net assets of £100.

The Union agreed to write off the inter-company debt to the value recoverable and provided against

the amounts due from subsidiary undertakings to the extent of the irrecoverable debt

(2009: £66,157).




7: FIXED ASSET INVESTMENTS continued

Warwick Students' Union Services Limited

The Union also has a dominant influence by virtue of common directors, over Warwick Students' Union

Services Limited, a company limited by guarantee registered in Great Britain which leases property to

the Union. The company's lease agreement ceased in May 2009 and the company ceased trading at

this date and became dormant.

For the year ended 31 July 2010, the company's turnover was £nil (2009: £161,142), gross profit was

profit was £nil (2009: £76,142) and profit on ordinary activities before and after taxation was £nil

(2009: £nil).

At 31 July 2010, the company had net assets of £nil (2009: £nil).

Warwick Students' Union Services Limited holds 95 £1 ordinary shares in Membership Solutions

Limited, a company limited by shares registered in Great Britain, being 95% of its issued share capital.

The minority interest value of £1,448 arising on the consolidation of Membership Solutions Limited and

the cumulative balance sheet value of (£339) has not been reflected in the consolidated financial

statements on the basis that these amounts are not material.

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

systems.

On 1 August 2010 the 95 x £1 share holdings in Membership Solutions Limited will transfer from

Warwick Students' Union Services Limited to Warwick Students Union Limited.

8: STOCKS GROUP UNION

2010 2009 2010 2009

£ £ £ £

Goods for resale 28,991 9,219 28,991 9,219




9: DEBTORS GROUP UNION

2010 2009 2010 2009

£ £ £ £

Amounts falling due within one year:

Trade debtors 117,979 63,083 6,208 25,282

Amounts due from

subsidiary undertakings - - 193,767 151,992

Other debtors 1,921 839 1,921 16,206

Other prepayments

and accrued income 43,552 43,197 40,772 30,717

163,452 107,119 242,668 224,197

10: CREDITORS GROUP UNION

2010 2009 2010 2009

£ £ £ £

Amounts falling due within one year:

Trade creditors 147,784 380,152 142,863 372,803

Amounts due to

subsidiary undertakings - - 100 -

Amounts held for clubs and societies 324,450 331,997 324,450 331,997

Other taxation and social security 150,087 54,693 150,087 61,982

Other creditors 46,687 48,111 46,681 48,111

Accruals and deferred income 319,739 247,367 295,567 232,581

988,747 1,062,320 959,748 1,047,474

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

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

the individual club or society.



11: ACCUMULATED REVENUE RESERVE GROUP UNION

£ £

1 August (504,451) (468,615)

Surplus for the year 566,870 537,926

31 July 62,419 69,311

12: CASH FLOW STATEMENT GROUP

2010 2009

£ £

(a) Reconciliation of operating deficit to net cash

inflow / (outflow) from operating activities:

Operating surplus 566,876 (583,876)

(Increase) / Decrease in stocks (19,772) 76

(Increase) / Decrease in debtors (56,333) 447,596

(Decrease) / Increase in creditors (73,573) 31,021

Increase in provisions 75,824 -

Depreciation 142,165 165,118

Interest receivable (3,414) (10,656)

Interest payable - 76,140

Net cash inflow / (outflow) from operating activities 631,773 125,419

(b) Analysis of changes in net funds At At

31 July 2010 Cash Flow 1 August 2009

£ £ £

Cash at bank and in hand 407,121 303,056 104,065

Short term deposits 355,519 172,518 183,001

762,640 475,574 287,066




13: RELATED PARTY TRANSACTIONS

a) Membership Solutions Limited

The Union purchased £17,216 (2009: £2,861) of services from Membership Solutions

Limited and provided £38,564 (2009: £13,551) of services.

2010 2009

£ £

Salary support, administrative and expenses 35,033 10,645

Premises and equipment rental 3,531 2,906

38,564 13,551

b) Students' Union Services Warwick Limited

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

Limited of £167,229 (2009: £46,179). The Union provided £48,010 (2009: £48,011)

of services to Students' Union Services Warwick Limited.

2010 2009

£ £

Salary support, administrative and expenses 7,274 7,275

Premises and equipment rental 40,736 40,736

48,010 48,011

c) Students' Union Warwick Events Limited

This company was dormant during the year and made no payments under gift aid to the

Union. At the end of 2008-09 the Union agreed to write-off the £66,157 inter-company

debt held with Students' Union Warwick Events Limited of £66,157.

d) Warwick Students' Union Services Limited

This company was dormant during the year and made no payments under gift aid to the

Union.





14: POST BALANCE SHEET EVENTS

Warwick Students' Union incorporated as a company limited by guarantee on 1 August 2010,

changing from its previous status as an unincorporated association.

From 1 August 2010 Warwick Students' Union has also registered with the Charity Commission.

Following changes to the Charities Act 2006 (section 11(9)) students' unions connected with

higher education institutions are no longer exempt charities by virtue of their special relationship

with their parent institutions. Unions now need to register as charities in their own right.



warwick su accounts 2009-10

Documents

s ruston education

s khaku education

education act

s stanley finance

j ryder

charities act

s wannell welfare

s p baylis