end of year accounts 2014

Teesside University Students’ Union

and its Subsidiary Company

Statement of Accounts

for the year ended 31 July 2014

ANDERSON BARROWCLIFF LLP

Chartered Accountants



Statement of Accounts

for the Year Ended 31 July 2014

Page

Administrative Details 1

Report of the Trustees 2 - 8

Report of the Independent Auditors 9

Statement of Financial Activities 10

Balance Sheet 11

Notes to the Accounts 12 - 24



Administrative Details


Charitable Status

Teesside University Students’ Union is a registered charity, registration number 1136875.

Principal Address

Students’ Union Building, Southfield Road, Middlesbrough, Tees Valley TS1 3BA

Elected to Hold Office

Trustees / Full Time (Executive) Officers July 2014 July 2013

President Will Ridley John Pinkney

Student Activities Officer Jodie Bird Jodie Bird

Education Officer Ryan Marshall Hannah Graham

Welfare Officer Manon Goetschel James Carroll

Appointed

External Trustees July 2014 July 2013

External Trustee Mark Fishpool Mark Fishpool

External Trustee Heather Ashton Heather Ashton

External Trustee Liz Barnes Liz Barnes

External Trustee Linda Maughan Linda Maughan

Appointed

Student Trustees July 2014 July 2013

Student Trustee Iain Clement Mike Patrick

Student Trustee Margaret-Alice

Achiampong

Colin Longstaff

Auditors

Anderson Barrowcliff LLP


Statutory Auditor

Waterloo House

Teesdale South

Thornaby Place

Thornaby on Tees

TS17 6SA

Bankers

Co-operative Bank Plc

Olympic House

Montford Street

Salford

M5 2QP

Solicitors

Poppleston Allen

37 Stoney Street

The Lace Market

Nottingham

NG1 1LS

Solicitors

SGH Martineau LLP

No. 1 Colmore Square

Birmingham

B4 6AA

The Students’ Union employs a Chief Executive to work closely with the Trustees and ensure effective management

of the organisation by leading a senior management team. During the year the senior managers were as follows:-

Chief Executive Jon Berg

Deputy Chief Executive Adam Cotterill

Page 1



Report of the Trustees for the Year Ended 31 July 2014

Structure, governance and management

The Students’ Union is constituted under the Education Act and the Regulations of Teesside University Higher

Education Corporation. The Students’ Union is responsible for giving representation and support to the students of

Teesside University and is governed by its Constitution and supporting Bye-Laws.

The Students’ Union has provision for ten members on its Board of Trustees. Four are External Trustees and two are

Student Trustees, all appointed by the Appointments Committee of the Board of Trustees. The four Officer Trustees

(also known as “Student Officers”) are students elected by cross-campus secret ballot for a one-year term of office as

President, Education Officer, Welfare Officer, and Student Activities Officer. These are full time or ‘sabbatical’

positions and receive remuneration as authorised by the Education Acts. No one can be on a sabbatical for more than

two years.

Teesside University Students’ Union is a charity with the ultimate decision making power being vested in its Board of

Trustees. The Students’ Union is a democratic organisation and the Board of Trustees delegates authority to the

following democratic bodies with safeguards ensuring legality of these decisions: Athletic Union, Societies

Federation, Student Representative Forum, Elected Officer Committee, and Scrutiny Committee.

The Officer Trustees oversee the day to day running of the Students’ Union and are accountable to the student body

and the Board of Trustees. All Trustees receive an induction into their legal and administrative responsibilities, with

an ongoing programme of development during their term of office.

The Officer Trustees and senior managers meet regularly as the Leadership Team to receive reports from officers, the

Chief Executive and other senior managers. This Leadership Team is the day to day decision making body of the

Students’ Union for all significant business. Teesside University Students’ Union employs non-student staff to ensure

effective management of its many activities and to implement the policy decisions made by the democratic bodies of

the Students’ Union. There is delegated authority through the Chief Executive for operational decision making and

accountability within the departments of the Students’ Union, in accordance with a written structure.

Relationship with Teesside University

The relationship between the University and the Students’ Union is established in the Regulations of the University

and detailed in articles approved by both organisations. The Students’ Union receives a Block Grant from the

University based on student numbers and part-occupies a building owned by the University, which also pays for

utilities, caretaking and cleaning staff. This support is intrinsic to the relationship between the University and

Students’ Union and has not been valued. Although the Students’ Union successfully runs various mutual trading

activities and external trading with the public through a subsidiary company it will always be dependent on the

support of the University. There is no reason to believe that this support will not continue for the foreseeable future

as the Union is an integral part of the University structure.

Risk Management

The Trustees have examined the major strategic, business and operational risks which the Students’ Union faces and

confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be

taken to lessen these risks.

Page 2




Objectives and activities

The Students’ Union’s charitable Objects are the advancement of education of students at Teesside University for the

public benefit by:-

(i) promoting the interests and welfare of Students at Teesside University during their course of study and

representing, supporting and advising Students;

(ii) being the recognised representative channel between Students and Teesside University and any other

external bodies; and

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

personal development of its Students.

Its vision is: “to consistently perform in the top 10% of students’ unions in the UK”

Its mission statement is: “The Students’ Union will make a significant contribution to students’ lives at the

University, and secure a positive and inclusive student experience for all.”

In pursuit of these objects, its mission and vision the Students’ Union has established departments and services for

use by its members and to support its work with the University and other organisations on behalf of students. These

include The Link‘s Advice, Jobs, and Representation services, the Activities Centre, The Link department, the

Terrace Bar and kitchen, The Hub night club, and the Union Shop. Officers of the Students’ Union sit on every

committee of the University and meet regularly with Middlesbrough Council, local landlords, health care providers,

and other organisations.

The Students’ Union’s commitment to its members includes volunteer development opportunities for nearly 3,000

students in activities from competitive sports to student academic representation within the Schools of the University.

Objectives for 2014/15:

In the Strategic Plan 2012 – 15, the key objectives within the eight Strategic Themes are as follows

(i) Understanding our hyper-diverse student population

The Students’ Union will continue its work with the University on the Fees and Bursaries for new students,

and monitor the changes in the student population. It will continue to work on “in-reach” measures of

student participation in the SU and University life.

Measure: at least 80% satisfaction with the Students’ Union in the National Student Survey

(ii) Listening to the Student Community

The Students’ Union will expand its student engagement to meet at least 3,000 students through SU on Tour

and other information gathering campaigns. The SU will increase engagement with its course rep network.

An Events Forum will be established in 2014/15 to increase student input into the SU events programme.

Measures: meet over 3,000 students and at least 80% satisfaction with the Students’ Union in the National

Student Survey

(iii) Powerful and effective representation

The Students’ Union will use the information gathered through SU on tour and other engagement to

prioritise its campaigns for students and follow up with the University, the local Councils, landlords, and

other organisations to address issues affecting students by lobbying, negotiating, and campaigning to achieve

positive outcomes. Its work on accommodation will build on the success of Think: Housing. It will campaign

on value for money, sleep deprivation, retaining the Disability Support Allowance for students, and working

with external partners to enhance student safety in Middlesbrough. The new Union Reps will be involved in

campaigns. The SU will be actively involved in the appointment of the new Vice-Chancellor.

Measures: at least 80% satisfaction with the Students’ Union in the National Student Survey and over 10%

voting in Student Officer elections.

(iv) Offering the best services for students

The Students’ Union will continue to collect feedback on its services and facilities to ensure it maintains

very high satisfaction levels and explores new opportunities in the transformed SU Building. The SU

Activities will develop its ‘active clubs and societies’ to further grow student participation to over 2,000.

The SU:Link will gain AQS accreditation and offer a new mediation service to students. The SU’s trading

will grow with increased Shop, catering and night time business.

Page 3




Objectives for 2014/15: (continued)

(iv) Offering the best services for students (continued)

Measures: Retain Best Bar None Silver, gain Quality Students’ Union recognition from NUS, at least 80%

satisfaction with the Students’ Union in the National Student Survey

(v) Graduate employability

The Students’ Union will offer at least three graduate placements and employ over 200 student staff. It will

continue to lobby the University to produce a clear and comprehensive Employability Strategy to structure

the help being given to students and graduates in the difficult economic times.

Measure: employ at least 200 student staff

(vi) Financial sustainability

The Students’ Union will grow its trading income, including catering, and put in place an External Trading

Strategy. It will continue to make budget efficiencies and changes to maximise spending on the student

experience, whilst remaining financially robust.

Measure: net free reserves equivalent to 4 months charitable operating expenditure

(vii) Maintaining our building and infrastructure

The transformed Students’ Union Building will develop as student feedback is used to identify further

investment. The SU will lobby the University to reclad the exterior of its building, so improving the Campus

Heart.

Measure: SU recladding in University estates capital plan.

(viii) Social responsibility and sustainability

The Students’ Union will engage its members in improving the environmental impact of the Students’ Union

and University, including work towards Eco-Campus Gold and retaining Green Impact Students’ Unions

Gold. It will widen its Fairtrade product range and ensure Fairtrade University status is retained. The SU will

establish a Community Engagement Strategy to identify its main connections with the towns and Tees

Valley, and how these will be used to improve students’ lives at the University.

Measure: Retain Green Impact Gold and ensure Fairtrade University status is regained

Achievements and performance The Students’ Union’s performance against its published objectives for 2013/14: Objectives by Strategic Theme Achievement

(i) Understanding our hyper-diverse student

population:

The Students’ Union will continue to work

with the University on the Fees Strategy,

considering the impact on different student

groups and ensuring access arrangements

are well planned. It will use “in-reach”

measures of student participation in the

SU, considering these and the relative

satisfaction of the student segments in the

National Student Survey.

Measures: at least 80% satisfaction with

the Students’ Union in the National

Student Survey

The Students’ Union ensured that students received good

financial support and that many new students in 2014/15 will

get free NUS extra cards to make cost savings during their

studies. It has researched hidden course costs as part of a value

for money campaign in 2014/15. The SU has captured

anonymised statistics on which student groups use its various

services and developed participation measures including ‘in-

reach’ with non-traditional students.

The National Student Survey 2014 showed very high

satisfaction with the SU, maintaining an overall 81% registered

score.

Page 4




Achievements and performance (continued)

(ii) Listening to the student community:

The Students’ Union will expand its

student engagement to meet at least 2,000

students through SU on Tour and

information gathering campaigns. The SU

will establish a student-led teaching

awards scheme and work with the

University to publish a student charter in

2013/14.

Measure: at least 80% satisfaction with the

Students’ Union in the National Student

Survey

The SU expanded its “SU on Tour” engagement work, going

out to meet over 1,500 students across the University and hear

about their day to day experiences.

The STAR Awards enabled students to recognise staff and

student achievements across the University and SU.

The ‘Working together Charter’ was launched in 2014.

The National Student Survey showed that 81% of registered

students were satisfied with the Students’ Union, keeping the

SU in the top 10% of students’ unions in the UK.

(iii) Powerful and effective representation:

The Students’ Union will use the

information gathered through SU on Tour

and other engagement to prioritise its

campaigns for students. It will take up

these issues with the University, the local

Councils, landlords, and other

organisations to address issues affecting

students by lobbying, negotiating, and

campaigning. It will build on the success

of Think: Housing, and campaign on

mental health awareness and signing the

“Time to change” pledge.

Measures: at least 80% satisfaction with

the Students’ Union in the National

Student Survey and 15% voting in

Executive elections.

The Students’ Union ran the Think: Housing campaign with its

second, larger Housing Fayre in term two to help students to

find safe, affordable and convenient housing, offered specialist

accommodation advice, and started a new ‘Rate Your

landlord’ scheme. More landlords became externally

accredited as a result of the SU’s direct involvement.

The SU co-signed the “Time To Change” pledge with the

University to raise mental health awareness.

NSS 2014 showed 81% satisfaction with all registered students

and 82% for University taught satisfaction. The 2013/14

election turnout was 12.7% of active students.

(iv) Offering the best services for students:

The Students’ Union will be researching

its members’ needs and input on the

redevelopment of the first floor bar and

services. It will continue to collect

feedback on its services and facilities to

ensure it maintains very high satisfaction

levels and explores new opportunities.

Measures: Retain Best Bar None Silver,

Students’ Union Evaluation Initiative

Silver, at least 80% satisfaction with the

Students’ Union in the National Student

Survey

The SU used extensive research and engagement to identify

students’ needs and summarised these in the SU Project Brief.

It successfully lobbied the University to take over the ground

floor unit for the SU Shop and University Information point.

The transformed SU opened just before Freshers 2014 with

very positive feedback from students and visitors, and

increased visits. The SU won the Club MTV/Lucozade ‘Pimp

My Summer Ball’ competition with over 2 million tweets and

ran an expanded Final Fling 2014 event with over 4,000

attending.

Best Bar None Silver was retained and the SU is working

towards the new NUS Quality Students’ Unions scheme that

replaced SUEI. NSS 2014 satisfaction of 82% taught.

Page 5




Achievements and performance (continued) (v) Graduate employability:

The Students’ Union will offer graduate

placements and employ over 200 student

staff. It will encourage the University’s

development of the “Get Ahead” portal

and continue to lobby the University to

produce a clear and comprehensive

Employability Strategy to structure the

help being given to students and graduates

in the difficult economic times.

Measure: employ at least 200 student staff

and increase range of employability

training.

The Students’ Union employed 3 graduate placements and over

200 student staff in 2013/14. It trained over 70% of the 504

Course Representatives and over 300 club and society leaders.

The SU has supported the University’s development of the

“Get Ahead” portal and hosted Careers stalls to supplement

over 5,000 visits to the SU:Link’s Jobs desk.

The University has committed to produce an Employability

Strategy as part of its new Academic Strategy.

(vi) Financial sustainability:

The Students’ Union will continue to make

budget efficiencies and changes to

maximise spending on the student

experience, whilst remaining financially

robust.

Measure: net free reserves equivalent to 4

months charitable operating expenditure

The SU made a small deficit before writing off fixed assets

that were scrapped in the building.

Students’ Union has over 4 months charitable expenditure in

its net free reserves.

(vii) Maintaining and developing our building

and infrastructure:

The modernisation of the Students’ Union

Building will continue in 2013/14 with the

final designs and preparation for a first

floor and bar refurbishment.

Measure: All University capital funding

approved and work started in summer 2014

In January 2014 the University Governors approved a further

£500,000 capital budget for the SU redevelopment. This will

transform over 2,000 square metres to encompass the needs of

all Teesside students with the Love It Lounge (social learning

space), post graduate reading rooms, expanded and improved

Link and Activities services, the new Terrace venue and the

SU Shop moved to the ground floor with a University

Information Point.

Work started immediately after the Final Fling 2014 and was

ready in time for Freshers 2014. (viii) Social responsibility and sustainability:

The Students’ Union will engage its

members in improving the environmental

impact of the Students’ Union and

University, including work on Eco-Campus

and Green Impact Students’ Unions. It will

widen its Fairtrade product range, replace

old lighting with more energy efficient

systems, and make greater use of electronic

media including e-mail, websites, online

polls and surveys, social media and the

virtual learning environment.

Measure: Retain Green Impact Gold and

ensure Fairtrade University status is

regained

The Students’ Union won a Green Impact Excellence Award

for its environmental work, including a report on Education

for Sustainable Development at Teesside University. It

continued to work in partnership with Middlesbrough

Environment City and the Middlesbrough Fairtrade Group.

The SU offered more Fairtrade products and installed low

energy lighting throughout the two floor redevelopment.

The SU won the Green Impact Students’ Unions Excellence

Award in 2013/14. The SU helped the University to regain its

Fairtrade University status.

Page 6




The Students’ Union had the following achievements in the year:

In the National Students Survey 2014, the Students’ Union’s 82% satisfaction with University taught

students was 10th highest in the UK and joint 1st among the University Alliance.

Nearly 11,000 people visited daytime orientation events run by the Students’ Union in 2013/14.

The Students’ Union established a quality assurance system for its student-led activities, ‘active clubs and

societies,’ with extensive training and support for the students leading and running these groups to ensure all

members get a a consistently good experience. This built on the fourth year of the SU’s pioneering

longitudinal study on increased retention and course completion among club/society members.

The SU beat other UK unions to win the Club MTV/Lucozade ‘Pimp my Summer Ball’ competition.

TUSU was awarded “Top 10 Student Union” in the WhatUni Student Choice Awards in 2013.

Teesside University Students’ Union was shortlisted as one of five for NUS “Students’ Union of the Year

2014/15”

Tees S U Limited

Tees S U Limited is a 100% subsidiary of the charity which was incorporated on 23 September 2010 and started to

trade in that year. The subsidiary’s activities provide income for the benefit of the students but cannot be directly

attributable to the Students’ Union’s primary or ancillary purposes.

The trustees are satisfied with the results of the subsidiary and the profit generated of £10,408 (2013 - £10,346).

£9,241 (2012 - £11,513) has been gift aided to the Students’ Union.

Future plans

The Students’ Union has established a three year revolving Strategic Plan, currently for 2012 – 2015. This includes

the mission and vision with eight strategic themes. This has long term plans and targets which are aligned with the

objectives in the annual operating plan to ensure TUSU continues to deliver public benefit by meeting the needs of

Teesside students in the future.

The Trustees have monitored developments in Higher Education following the Browne Review of tuition fees and

have engaged with the University in its fees strategy. The Students’ Union has maintained its general and earmarked

funding for 2014/15 against future expectations that its total incoming resources will be reduced by the national and

regional economic situation, including pressures on public sector spending. The Board will continue to monitor

developments and will act to ensure that the Charity continues to deliver public benefit via provision of services and

activities in accordance with its charity objects.

Financial review A summary of the results for the year is given on page 10 of the financial statements. The Students’ Union made a surplus of £592,786 including Capital Grant Fund income of £655,798 (2013 - surplus

of £30,774). The net surplus from the Students’ Union’s continuing trading activities was £13,109 (2013 - surplus

£32,362). The Students’ Union continued to benefit from the recognition and support of the University, the recurrent

Block Grant funding increased to £725,000. The Trustees have examined the requirement for free reserves, which are the unrestricted funds of £548,445 less

£292,055 invested in fixed assets (£1,113,228 less capital grant fund of £821,173), designated for specific purposes or

otherwise committed. The Trustees consider that they require four months of non-trading expenditure which equates

to approximately £248,000. The free reserves now exceed this target level and the Trustees intend to maintain this

level of unrestricted reserves.

Page 7




Future funding The Trustees confirm that the Union has sufficient funds to meet all its obligations. The Block Grant for 2014/15 has

been confirmed at £725,000 (with earmarked grant £200,000 pension deficit funding) and the commercial activities

are expected to generate significant funds. These resources will be applied in service provision to deliver public

benefit via the charity objects.

Trustees responsibilities The Students’ Union’s Constitution requires us to prepare financial statements for each financial year which give a

true and fair view of the state of affairs of the Union and of the income and expenditure of the Union for that period.

In preparing those financial statements we are required to:-

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent; - prepare the financial statements on a going concern basis unless it is inappropriate to presume that

the Union will continue in business. We are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the

financial position of the Union and enable us to ensure that the financial statements comply with the financial

regulations approved by the Annual General Meeting. We are also responsible for safeguarding the assets of the

Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Trustee statement In setting our objectives and planning our activities the Trustees have given careful consideration to the Charity

Commission’s guidance on public benefit.

Will Ridley

President and Chair of the Trustees

Date: 11 November 2014

Page 8



Independent Auditor’s Report to the Trustees of



We have audited the financial statements of Teesside University Students’ Union Group and the Parent Charity for

the year ended 31 July 2014 which comprise Group Statement of Financial Activities, the Group Balance Sheet and

related notes. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charity’s Board of Trustees, as a body, in accordance with Section 154 of the

Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s Board of Trustees

those matters we are required to state to them in an auditors 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 charity and its Board of Trustees

as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Trustees and Auditors As explained more fully in the Trustees’ Responsibilities Statement set out on page 8 the trustees are responsible for

the preparation of financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with

regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the financial

statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those

standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors. Scope of the audit of the financial statements 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 charity’s circumstances

and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates

made by the trustees; and the overall presentation of the financial statements. In addition we read all the financial and

non-financial information in the Trustees’ Annual 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 group and parent charity’s affairs as at 31 July 2014, and of the

group’s incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

(applicable to smaller entities);

have been prepared in accordance with the requirements of the Charities Act 2011. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to

you if, in our opinion:

the information given in the Trustees’ Annual Report is inconsistent in any material respect with the

financial statements; or sufficient accounting records have not been kept; or

the parent charity’s financial statements are not in agreement with the accounting records and returns; or

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

Anderson Barrowcliff LLP

Statutory Auditor


Waterloo House

Teesdale South

Thornaby Place

Thornaby on Tees TS17 6SA

Date: …………………….

Page 9



Consolidated Statement of Financial Activities

(including Summary Income & Expenditure Account)


Restricted

Un-

Restricted

Endowment

Total

2014

Total

2013

Notes £ £ £ £ £

Incoming Resources

Incoming Resources from

Generated Funds:

Voluntary income: Donations & grants 2 125,496 726,625 655,798 1,507,919 844,015 Investment income - 956 - 956 2,983

Incoming resources

from charitable activities

3

1,184

1,450,025

-

1,451,209

1,517,364

Total incoming resources 126,680 2,177,606 655,798 2,960,084 2,364,362

Resources Expended

Costs of generating funds

Charitable activities 4 113,757 2,179,152 45,648 2,338,557 2,304,310

Governance costs 4 - 28,741 - 28,741 29,278

Total resources expended 113,757 2,207,893 45,648 2,367,298 2,333,588

Net movement in funds 12,923 (30,287) 610,150 592,786 30,774 Fund balances brought forward 34,445 578,732 211,023 824,200 793,426

Fund balances carried forward 47,368 548,445 821,173 1,416,986 824,200

The notes on pages 12 to 24 form part of these accounts

Page 10



Consolidated Balance Sheet as at 31 July 2014

2014 2013

Charity Group Charity Group

Notes £ £ £ £ £ £ £ £

Fixed Assets Tangible fixed assets 6 1,112,645 1,113,228 489,509 491,259

Investments 7 1 - 3,430 3,429

1,112,646 1,113,228 492,939 494,688

Current Assets

Stocks held by bars, shops &

other outlets

29,248

29,248

35,372

35,372

Debtors & prepayments 8 372,996 372,996 97,410 97,410

Cash at bank & in hand 451,315 451,316 532,780 532,781

853,559 853,560 665,562 665,563

Creditors: Amounts falling

due within one year

9

549,802

549,802

336,051

336,051

Net Current Assets 303,757 303,758 329,511 329,512

Total Net Assets 1,416,403 1,416,986 822,450 824,200 Represented by: Endowment Funds

Capital Grants Fund 10 821,173 821,173 211,023 211,023

Income Funds

Restricted

Safer Middlesbrough Fund 11 484 484 484 484

Club & Society accounts 11 24,591 24,591 20,836 20,836 Sports Development Fund 11 - - 3,893 3,893

Student Hardship Fund 11 15,136 15,136 386 386

Rag Fund 11 1,146 1,146 512 512 Pension Deficit Funding 11 3,310 3,310 4,320 4,320

Entrepreneurs Fund 11 2,701 2,701 4,014 4,014

47,368 47,368 34,445 34,445

Unrestricted

Accumulated Fund 547,862 548,445 567,982 569,732 Designated Funds –

Development Fund

12

-

-

9,000

9,000

547,862 548,445 576,982 578,732 Total Reserves 13 1,416,403 1,416,986 822,450 824,200

Approved on Behalf of Teesside University Students’ Union on 11 November 2014 by:

William Ridley

President and Chair of the Trustees

The notes on pages 12 to 24 form part of these accounts

Page 11



Notes to the Accounts for the Year Ended 31 July 2014

1 Accounting Policies (a) Basis of preparation The accounts have been prepared under the Historical Cost Convention. The financial statements

have been prepared in accordance with the Statement of Recommended Practice (SORP)

“Accounting and Reporting by Charities” published in March 2005 and applicable UK Accounting

Standards and the Charities Act 2011. The statement of financial Activities (SOFA) and Balance Sheet consolidate the financial

statements of the Charity and its subsidiary undertaking. The results of the subsidiary are

consolidated on a line by line basis. The accounts consolidate those of the Charity and its wholly owned non charitable subsidiary, Tees

S U Limited. No separate SOFA has been presented for the Charity alone as permitted by paragraph 397 of the

SORP. (b) Incoming resources

All incoming resources are recognised in the Statement of Financial Activities (SOFA) when the

Charity is legally entitled to the income and the amount can be quantified with reasonable

certainty. Incoming resources are not shown net of expenditure. (c) Resources expended

All expenditure is accounted for on an accruals basis and is stated net of VAT.

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities

and services for its beneficiaries. It includes both costs which can be directly allocated to activities

and those costs of an indirect nature necessary to support them. Costs are allocated between the

expenditure categories of the SOFA based on usage of the resource. Where costs cannot be directly

allocated they are apportioned on an appropriate basis as set out in note 5 to the accounts.

Governance costs are those incurred in connection with compliance with constitutional and

statutory requirements. (d) Grants received

Revenue grants other than the block grant are credited to the SOFA in the year in which they are

received. The block grant is credited to the SOFA in the year in which it is receivable. In the

SOFA grants are shown as income and the related expenditure disclosed as appropriate. (e) Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation. Assets are capitalised if they cost

more than £1,000 and are expected to last more than a year. Equipment, fixtures and fittings are included at cost. Depreciation is provided at the following

annual rates in order to write the cost of assets off over their estimated useful lives:-

Fixtures and Fittings - 20% - 33% of Cost

Computer and Office Equipment - 20% - 33% of Cost

Improvements to Buildings - Between 10 years and the expected life of the buildings

(f) Investments

Fixed asset investments are valued at cost. The assets are not readily saleable and the market value

is not easily ascertainable.

(g) Pension costs

Teesside University Students’ Union (TUSU) participates in the NUS pension scheme, a money

purchase pension scheme. This scheme is not defined benefit and so cannot build up a deficit. The

only money ever paid into this scheme is the contribution rates set by the employer. This scheme

became active 1 October 2011. The students’ Union Superannuation Scheme closed to new

members and accrual of future benefits ceased at this date. TUSU continues to fund this scheme as

described in the next paragraph.

Teesside University Students’ Union (TUSU) participates in the Students’ Union Superannuation

Scheme, a defined benefit scheme which is externally funded and contracted out of the State

Second Pension.

Page 12




1 Accounting Policies continued/….

(g) Pension costs continued/….

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 TUSU.

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.

(h) Leased assets

Rentals payable under operating leases are charged to the SOFA on a straight line basis over the

period of the lease.

(i) Stock

Stock is valued at the lower of the cost and its net realisable value.

(j) Fund accounting

The Students’ Union has two distinct types of fund in its balance sheet:-

(i) Unrestricted, or general, funds arising from the accumulated surplus from its various

activities; (ii) Restricted funds representing surpluses set aside by the Students’ Union for specific

purposes, such as Club and Societies Accounts. It also includes monies placed in the

custody of the Students’ Union but not under its control, such as the Student Hardship

Fund. (iii) Designated Funds are funds set aside by the Trustees for a specific purpose. The income and expenditure are shown in the SOFA.

The assets and liabilities representing each fund are shown in the notes to the accounts. (iv) Endowment Funds represent those assets which must be held permanently by the Charity

in the form of fixed assets. It is considered to be an expendable endowment fund and as

such it is being released to unrestricted funds over a period to match the depreciation

charged on the assets.

2 Donations and Grants

Restricted

Un-

Restricted

Endowment

Total

2014

Total

2013

£ £ £ £ £

Block Grant from Teesside University - 725,000 - 725,000 685,000

Earmarked funding grants received from

University (see note 11) 124,014 - 500,000 624,014 151,331

Due from University (1st Floor development

grant) 155,798 155,798

Earmarked funding from Safer Middlesbrough - - - - 754

Campaign contribution - 1,625 - 1,625 -

Grant from Citizen Advice Bureau for Link

Advice Training - - - - 3,000

Funds raised for Rag Fund 1,482 - - 1,482 3,830

Student Hardship Fund Collections - - - - 100

125,496 726,625 655,798 1,507,919 844,015

Page 13




3 Incoming Resources for Charitable Activities

Restricted

Un-

Restricted

Endowment

Total

2014

Total

2013

£ £ £ £ £

Bars, kitchen, games and vending & entertaining - 1,078,596 - 1,078,596 1,118,232

Shop - 301,775 - 301,775 327,251

Sponsorship - 65,355 - 65,355 71,206

The Link – Income - 1,620 - 1,620 175

Activities and Skills –

Awards Dinner Sponsorship Income

-

500

-

500

500

Website Income - 2,179 - 2,179 -

Tee-Shirts Income 1,184 - - 1,184 -

1,184 1,450,025 - 1,451,209 1,517,364

Page 14

Teesside University Student’s Union



4 Activities for Generating Funds

2013/14 Notes

Representing, supporting &

advising

Students

Repre-

sentative channel

to the

University & other

external

bodies

Social,

cultural, sporting &

recreational,

and forum for student

develop-

ment

Bars, games,

kitchen &

entertainment Shop Sponsorship Unrestricted

Total Restricted

Endowment

Fund

Gover-

nance costs Total

£ £ £ £ £ £ £ £ £ £ £

Cost allocated directly to activities

Cost of Sales - - - 458,181 228,458 25,557 712,196 - - - 712,196

Staff costs 174,622 82,529 59,783 484,323 61,792 17,005 880,054 - - 880,054

Other costs 23,615 31,788 97,882 122,436 17,113 - 292,834 - 45,648 - 338,482

Sports Development expenditure - - - - - - - 23,907 - - 23,907

Pension Deficit expenditure - - - - - - - 50,010 - - 50,010

Big Events expenditure - - - - - - - 20,000 - - 20,000

Safe Homes Fund expenditure - - - - - - - - - - -

Entrepreneurs expenditure - - - - - - - 2,497 - - 2,497

Community Engagement expenditure - - - - - - - 20,000 - - 20,000

Club & Society Accounts Movements - - - - - - - (3,755) - - (3,755)

Support costs allocated to activities 5 108,072 68,970 59,977 37,731 13,486 5,832 294,068 1,098 - 28,741 323,907

Total costs for charitable activities 306,309 183,287 217,642 1,102,671 320,849 48,394 2,179,152 113,757 45,648 28,741 2,367,298

2012/13 Total

£ £ £ £ £ £ £ £ £ £ £

Cost allocated directly to activities

Cost of Sales - - - 457,720 238,761 24,610 721,091 - - - 721,091

Staff costs 162,873 77,104 59,889 474,402 62,534 15,014 851,816 - - - 851,816

Other costs 14,534 34,481 72,070 160,751 18,953 (3,946) 296,843 - 45,648 - 342,491

Sports Development expenditure - - - - - - - 24,644 - - 24,644

Pension Deficit expenditure - - - - - - - 48,730 - - 48,730

NASES expenditure - - - - - - - 7,128 - - 7,128

Big Events expenditure - - - - - - - 524 - - 524

Safer Homes Fund expenditure - - - - - - - 1,986 - - 1,986

Club and Society Accounts Movement - - - - - - - 472 - - 472

Support costs allocated to activities 5 111,228 70,366 61,049 38,227 13,539 5,610 300,019 5,409 - 29,278 334,706

Total costs for charitable activities 288,635 181,951 193,008 1,131,100 333,787 41,288 2,169,769 88,893 45,648 29,278 2,333,588

Page 15



Notes to the Accounts for the Year Ended 31 July 2014 5 Support Costs

Basis of

Allocation

Promoting the

interests & welfare, Rep

support advise

students

Representative Channel to

the University

& external

Social,

cultural &

recreational

Bars, games,

kitchen &

entertainment Shop Sponsorship Unrestricted

Total Restricted

Governance

costs Total

£ £ £ £ £ £ £ £ £ £

Support costs allocated to activities

Central staff costs Staff time 51,807 50,237 41,406 26,100 7,653 - 177,203 - 19,035 196,238

Marketing costs Staff time 11,597 11,597 11,597 11,597 5,799 5,798 57,985 - - 57,985

Trustee Board Costs Staff time 35 35 35 34 34 34 207 - 34 241

NUS subscriptions Staff time 36,872 - - - - - 36,872 - - 36,872

Premises costs Staff time 3,661 3,661 3,662 - - - 10,984 - 1,220 12,204

General Office costs Staff tine 2,616 2,616 2,617 - - - 7,849 - 872 8,721

Legal & Professional fees Staff time - - - - - - - - 7,250 7,250

Other costs Staff time 1,484 824 660 - - - 2,968 - 330 3,298

108,072 68,970 59,977 37,731 13,486 5,832 294,068 - 28,741 322,809

Grants & Donations made

Rag Fund - - - - - - - 848 - 848

Student Hardship Fund - - - - - - - 250 - 250

108,072 68,970 59,977 37,731 13,486 5,832 294,068 1,098 28,741 323,907

Governance Costs

2014 2013

£ £

Includes:- auditors remuneration 7,300 7,125

Page 16




6 Tangible Fixed Assets

Group and Company

Assets Under

Construction

Fixtures, Fittings

& Equipment Charity Group Charity Group

2014 2014

£ £ £ £

Cost

At 1 August 2013 - - 1,671,201

8,601

(479,289)

1,674,701

8,601

(479,289)

Additions 721,841 721,841

Disposals - -

At 31 July 2014 721,841 721,841 1,200,513 1,204,013

Depreciation

At 1 August 2013 - - 1,181,692 1,183,442

Charge for the year - - 85,315 86,482

Disposals - - (457,298) (457,298)

At 31 July 2014 - - 809,709 812,626

Net Book Values

At 31 July 2014 721,841 721,841 390,804 391,387

At 31 July 2013 - - 489,509 491,259

Total Charity Group

2014

£ £

Cost

At 1 August 2013 1,671,201 1,674,701

Additions 730,442 730,442

Disposals (479,289) (479,289)

At 31 July 2014 1,922,354 1,925,854

Depreciation

At 1 August 2013 1,181,692 1,183,442

Charge for the year 85,315 86,482

Disposals (457,298) (457,298)

At 31 July 2014 809,709 812,626

Net Book Values

At 31 July 2014 1,112,645 1,113,228

At 31 July 2013 489,509 491,259

The net book value of fixed assets represents:-

2014

£ £

Assets used for direct charitable purposes 1,080,750 1,080,750

Other purposes 31,895 32,478

1,112,645 1,113,228

Page 17




7 Investments

2014 2013

£ £

At Cost

-

Investment in NUS Services Limited 3,429

In order to continue receiving retrospective discounts through the Central Billing System the Students’

Union purchased 60 “A” and 180 “B” voting shares. These shares were disposed of to NUS Holdings during

the year

Investments held by the charity include an extra £1 (2013 – £1) investment in the subsidiary which

represents 100% of the issued share capital of Tees S. U. Limited. The nature of business was that of letting

of the Student Union facilities.

8 Debtors – Group and Company

2014 2013

£ £

Trade debtors 36,398 11,982

Other debtors 272,714 407

Prepayments & accrued income 63,884 85,021

372,996 97,410

9 Creditors: Amounts Falling Due Within One Year

Group and Company 2014 2013

£

306,871

£

Trade creditors 60,104

Social security & other taxes 18,661 30,369

Other creditors 7,440 3,582

Accruals 12,195 34,952

Deferred income 204,635 207,044

549,802 336,051

10 Endowment Funds – Capital Grant Fund

Toilets

(2011)

Reception

(2013)

HUB

(2008)

Offices

(2009)

1st Floor

(2014)

Total

2014

Total

2013

£ £ £ £ £ £

At 1 August 2013 14,655 64,983 106,295 25,090 - 211,023 184,468

Additional Grants from

University

-

-

-

-

500,000

500,000

72,203

Due from University 155,798 155,798

Released to SOFA (2,674) (7,220) (31,172) (4,582) - (45,648) (45,648)

At 31 July 2014 11,981 57,763 75,123 20,508 655,798 821,173 211,023

This represents monies provided by the University for various refurbishments. The £655,798 received and

receivable for the year was for a major refurbishment to the first floor. This is considered to be an

expendable endowment fund.

Page 18




11 Restricted Funds

Clubs &

Societies

Deposits

Sports

Development

Fund

Student

Hardship

Fund

RAG

Pension

Deficit

Big

Events

Grant

Safer

Middlesbrough

Entrepreneurs

Fund

Community

Engagement

Total

£ £ £ £ £ £ £ £ £ £

Balance at 1 August 2013 20,836 3,893 386 512 4,320 - 484 4,014 - 34,445

Collections-RAG - - - 1,482 - - - - - 1,482

Earmarked funding received from University - 20,014 15,000 - 49,000 20,000 - - 20,000 124,014

Tee-Shirts Income - - - - - - - 1,184 - 1,184

Outgoing

Rag Donations made - - - (848) - - - - - (848)

Hardship Fund Donations made - - (250) - - - - - - (250)

Sport Development expenditure - (23,907) - - - - - - - (23,907)

Pension Deficit expenditure - - - - (50,010) - - - - (50,010)

Big Events expenditure - - - - - (20,000) - - - (20,000)

Entrepreneurs expenditure - - - - - - - (2,497) - (2,497)

Community Engagement expenditure - - - - - - - - (20,000) (20,000)

Net movement - Clubs & Societies 3,755 - - - - - - - - 3,755

Net Movements 3,755 (3,893) 14,750 634 (1,010) - - (1,313) - 12,923

Carried Forward 24,591 - 15,136 1,146 3,310 - 484 2,701 - 47,368

Represented by:

Net Current Assets 24,591 - 15,136 1,146 3,310 - 484 2,701 - 47,368

Page 19




The Clubs and Societies consist of both money from the Students’ Union and the students to support the running of the various clubs and societies.

The Sports Development Fund was established to hold earmarked annual funding from Teesside University and expenditure.

The Student Hardship Fund was created in 1987/88 to provide financial assistance to T.U.S.U. Members in cases of genuine hardship. Its funds have been raised

through specific fund raising events and are administered on its behalf by the Students Union’s Trustees in accordance with written regulations. University of Teesside

Students’ Union holds the funds of the Student Hardship Fund, and its Trustees are Trustees of the fund.

The Rag Fund represents fund raising events held by Students’ Union which have not yet been distributed to other charities. The assets are held are in the form of cash at bank

and are recorded separately within the accounting records of the Students’ Union.

The pension deficit funding was received form the University to fund the pension deficit payments made in the year.

The Big Events grant was funding from the University to be spent on a specific purposes.

The Safer Middlesbrough fund was monies provide by the Safer Middlesbrough Partnership to improve security of student accommodation and also for providing general safety

advice.

The Entrepreneurs Grant is made up of funding from NACUE (National Consortium of University Entrepreneurs) and Teesside University. This fund is to be spent on the expenses and

overheads for the student enterprise known as ‘Tees-Shirts.’

The Community Engagement Grant was funding from the University to support work between our Trustee team and the local community.

Page 20




12 Designated Funds – Development Fund

2014 2013

£

9,000

(9,000)

-

£

Balance at 1 August 2013 10,500

Released to General Funds (1,500)

Balance at 31 July 2014 9,000

The Development Fund was set up by the Trustees in 2005 to support future investment in the Students’

Union’s facilities and refurbishment of trading areas. In 2010 the Trustees agreed that £15,000 could be used

for “The Link” help centre which opened in January 2010 to be released over ten years to offset the

depreciation charge. In 2014 “The Link” help centre was part of the refurbishment project ongoing at 31 July

2014, therefore the remaining balance of this fund was released.

13 Analysis of net assets between funds – group

Unrestricted

Funds

Restricted

Funds

Endowment

Fund

Total

£ £ £ £

Fixed assets 292,055 - 821,173 1,113,228

Current assets 806,192 47,368 - 853,560

Liabilities (549,802) - - (549,802)

Balance at 31 July 2014 548,445 47,368 821,173 1,416,986

14 Leasing Commitments

At 31 July 2014 the Students’ Union has annual commitments under non-cancellable operating leases as

detailed below:-

2014 2013

£ £

Plant and machinery

Operating leases which expire within two to five years 2,762 2,518

The amount paid during the year in respect of operating leases for plant and machinery was £ 2,518.

15 Trustees’ Remuneration

The full time (sabbatical) Officer Trustees were the only members of the Board of Trustees to receive any

remuneration. The salary costs were as follows:-

2014 2013

£ £

Salaries including National Insurance Contributions 74,967 73,751 Members of the Board of Trustees are reimbursed for their travel costs and any other expenses incurred

during the course of their duties.

Page 21




16 Staff Costs

Staff costs were as follows: 2014 2013

£

1,047,329

63,965

12,699

1,123,993

£

Wages & salaries 1,010,040

Social security 61,293

Pension costs 10,503

1,081,836

In addition pension costs included £46,988 deficit funding paid from a restricted fund, and £3,022 for Death

in service policy and consultation charges. No employee earned over £60,000 per annum. The average number of employees was as follows:-

2014 2013

28

24

Full time 27

Students – term time only 27

17 Control Relationships

The Students’ Union is under the control of the Board of Trustees.

18 Pension Costs

Teesside University Students’ Union (TUSU) 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 was carried out as at 30 June 2013 and showed that the market

value of the scheme’s assets was £80,910,623 with these assets representing 52% of the value of benefits

that had accrued to members after allowing for expected future increases in earnings. The deficit on an

ongoing funding basis amounted to £73,849,000.

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

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

The following assumptions applied at 30 June 2013:-

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

retirement

Pensions 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 Union 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 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 Students’ Union future

contribution commitment. In addition to the above contributions, the Students’ Union also pays its share of

the scheme’s levy to the Pension Protection Fund.

Page 22




18 Pension Costs continued/….. The total contributions paid into the Students’ Union Superannuation Scheme by TUSU in respect of eligible

employees for the year ended 31 July 2014 amounted to £50,010 (2013 - £48,730) in respect of future

accrual as well as deficit contributions. The amount outstanding at 31 July 2014 was £3,936 (2013 -

£3,814). Contributions paid into the NUSPS scheme for the year ended amounted to £12,699 (2013 - £12,833),

including Death in Service Insurance Policy. This scheme is not defined benefit and so cannot build up a

deficit. The only money ever paid into this scheme is the contribution rates set by the employer.

19 Capital Commitments

At the year end, the Students’ Union had capital commitments of £421,762 (2013: £nil).

20 Affiliations During the year the Students’ Union paid the following affiliations:

Organisation 2014 2013

36,872

7,829

360

National Union of Students (NUS) 38,803

British Universities and Colleges Sports Association

(BUCS, formerly BUSA)

8,207

NUS Services Ltd (NUSSL) 300

21 Subsidiary Company

The charity owns the whole of the issued ordinary share capital of Tees S U Limited, a company registered in

England. The subsidiary was incorporated on 23 September 2010. It is used for non-primary purpose trading

activities. All activities have been consolidated on a line by line basis in the SOFA. A summary of the results

of the subsidiary is shown below:-

2014 2013

£ £

Turnover 109,716 87,018

Cost of sales 30,653 21,454

Gross Profit 79,063 65,564

Administrative expenses 70,989 55,218

Net Profit 8,074 10,346

The aggregate of assets, liabilities and funds was:

2014 2013

£ £

Assets 584 1,751

Liabilities - -

584 1,751

Share Capital (representing 1 ordinary shares £1 each) 1 1

Profit and Loss Account 583 1,750

584 1,751

Page 23




22 Results of Parent Company

2014 2013

£ £

Total incoming resources 2,850,368 2,277,344

Net movement in funds 593,953 31,941

The subsidiary gift aided £9,241 (2013:£11,513) to the parent company in the year.

Page 24

end of year accounts 2014

Documents

officer trustees

student trustees

external trustees

office trustees

board of trustees

student officers

subsidiary company report

education acts