GOLDSMITHS STUDENTS' UNION
FINANCIAL STATEMENTS for the year ended 31 July 2011
GOLDSMITHS STUDENTS' UNION
CONTENTS
Page Trustee Board and Union Information Trustees' report Statement of Trustees' responsibilities Auditors' report Balance sheet
1 1-6 7 8-9 11
Notes to the financial statements
12 - 21
Income and Expenditure Account
10
GOLDSMITHS STUDENTS' UNION
UNION INFORMATION
CHIEF EXECUTIVE
Graham Gaskell
REGISTERED OFFICE
Dixon Road New Cross London SE14 6NW
AUDITOR
Crowe Clark Whitehill LLP 49 - 51 Blagrave Street Reading Berkshire RG1 1PL
TRUSTEE BOARD
2010/2011 Bindz Patel - President James Hayward - Campaigns and communications officer Francesca Bancarino - Welfare and Education Officer Manoj Kerai - Activities and Services Officer Alexandra Thorne - Student Trustee Amy Pidwill - Student Trustee Charlotte Eve - Student Trustee Marc McCormick - Student Trustee Paul Collier - External Trustee & Honorary Treasurer Justine Stephens - External Trustee Sharon Wagstaff - External Trustee (Resigned June 2011) Tom Philpott (Appointed February 2011)
2009/2010 Jesse Fajemisin - President Bindz Patel - Welfare and Education Officer Rheem Al-Adhami - Student Activities Officer (resigned 26 March 2010) Jennifer Jones - Campaigns and Communications Officer (resigned-30 November 2009) Ruth Bibby - Student Trustee Emily Harthern - Student Trustee Katherine Daish - Student Trustee Sian Lapwood - Student Trustee Justine Stephens (External Trustee) Paul Collier (External trustee & Honorary Treasurer)
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GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORT for the year ended 31 July 2011 Trustees' Report The Students’ Union is pleased to present our Financial Statements for 2010-11, a year that saw significant changes across the Students’ Union. The Union had an extremely successful year in 2010-11. We were victorious in our most important Goldsmiths campaign, to prevent the closure of the College nursery, something which looked almost inevitable a year ago. Financially we generated a surplus of over £59,000, significantly higher than we’d planned. And we persuaded the College to make changes based on evidence-based representation (such as the introduction of an International Rent Guarantee scheme) as well as seeing continued success and growth for our sports teams. GSU has now generated surpluses in seven of the last eight years and our reserves have grown significantly during this time. However, we recognise that conditions for our commercial services will remain challenging and that the Union needs to continue to build its reserves to levels capable of dealing with an unexpected problem or further downturns in trading turnover, particularly given the fact we are now running the nursery. We are still hugely dependant on the College for our grant funding and at a time when all Higher Education institutions will be making cutbacks it’s important we continue to diversify our income streams, generate more of our own funds from fundraising and marketing and seek to find efficiencies in all that we do. Income Despite a small reduction in funding from the College, our overall income increased by 8% (£51,814). This was largely due to the improvement in our trading, and in particular in the performance of the entertainments. Bar and entertainments The SU bar experienced yet another sharp decline in turnover; this has now fallen from £318,764 in 2006/7 to £207,642 in 2010/11. This was larger than we had projected and was compounded by the profit margin achieved being below the rate we budgeted for. However, cutbacks in our running costs in areas such as security reduced the impact somewhat and while the deficit on the bar of £6,592 is disappointing, it at least it represents an improvement on the deficit of £12,499 recorded the year before. The excellent practices in the bar were recognised by our achieving “Gold” in the Best Bar None scheme. One of the success stories of last year was the performance of our entertainments. After a number of years of significant deficits (including one of £51,840 last year) we finally managed to make a surplus overall. This was partly due to a small reduction in the number of events, but also the result of very careful management and the constant search for efficiencies in this area. Shop 2010-11 was a poor year for the SU shop, with sales falling back by 8% to £360,979. This was the first year sales have declined after consistent growth of around 10% a year since 2007. However, the opportunity provided by a restructure of staffing led to a reduction in salary costs in the second half of the year and the fact that the refurbishment costs are now fully depreciated meant the shop generated £12,196 in net profit. The shop provides essential arts materials for students and over 180,000 customers were served over the course of the year. Growth in competition from the café in the NAB and the soon-to-open local Sainsbury’s will undoubtedly make it harder to attract more customers but we believe there are opportunities in growing on-line sales of memorabilia to alumni.
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GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORT for the year ended 31 July 2011
Expenditure Expenditure overall fell back slightly, with a significant reduction in the costs associated with our Central Services (such as expenditure on legal costs and recruitment) but with a growth of over 10% on Representation, which is of course at the heart of the Union’s mission. Clubs, societies and student activities Participation in our sports clubs has continued to increase, with the number of members of our sports teams growing from 386 in 2008-9 to 564 in 2009-10 and reaching 632 last year. Society members fell back from 2,478 in 2009-10 to 2,060 last year, in large part due to the demise of the popular Bass Society. Balance Sheet The Union spent just £3,726 on investment in tangible fixed assets in 2010-11, but significant investment has taken place over the late summer which will show in the 2011-12 accounts. Overall depreciation meant that the value of the Union’s tangible fixed assets fell from £49,512 to £30,698 and the state of the building means that further capital investment will be required very soon. We have managed to reduce the levels of stock of stock we hold, and cash balances increased significantly, so that the Students’ Union’s capital and reserves now stand at £282,035. Reserves The Finance Committee have set a reserves policy which aims to generate reserves equivalent to six months running costs for the Union’s commercial services within the medium term. While we are still some way off this - at current levels it would require reserves of roughly £360,000 – it’s clear that important progress has been made when one considers that the Union’s net current assets have risen from £76,222 in 2007 to £251,277 this year. Some key achievements in 2010-11 • • • • • • •
The campaign to persuade the College to keep the College nursery open was successful and was recognized by NUS as runner up in the campaign of the year category at the NUS Annual awards. A huge turnout from Goldsmiths students at the November demonstration against higher fees. Another increase in the number of students participating in sports clubs and victory (again) in the annual Varsity competition against the University of the Arts. Gold in Sound Impact Awards, which recognises environmentally friendly unions. Gold in the Best Bar None awards. On-line elections run for the first time ever, an increase in turnout and no complaints raised by candidates. Reviewed our staff handbook and conducted a job evaluation on all permanent jobs.
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GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORT for the year ended 31 July 2011
Membership figures (taken from the Higher Education Statistics Agency for 2009/10, the most recent year that figures are available for) Student numbers Total
8,160
Undergraduate Postgraduate Further education
5,510 (of which 4905 are studying FT, 605 are PT) 2,460 (1,595 FT, 865 PT) 185 (70 FT, 115 PT)
International Students EU Students Non EU Students
725 720
(360 Postgraduate, 365 Undergraduate) (535 PG, 375 UG)
Total of 1,635 out of 8,160 Students 20% of total student numbers are international Looking to the future 2011-12 will see the Students’ Union registering with the Charities Commission. We are very aware that the SU Building has suffered from years of under-investment and are planning a number of improvements in the short term, alongside a thorough review into the long term needs of the organisation and possibilities for refurbishment. As a Students’ Union we believe our future lies in the effective representation of all our members, we continue to focus on the development of diverse services and projects that offer significant opportunities to our members and ultimately have a positive and measurable impact on their lives. The current strategic plan outlines a series of projects and initiatives designed to meet the challenges facing Goldsmiths Students’ Union. Four strategic themes are common to these initiatives: Strategic Theme One - Financial sustainability This is a critical area. Without ensuring our financial sustainability we will have to cut services, activities and staff. In some instances, in other students’ unions around the country, this has led to bankruptcy (Aberdeen) or resulted in the College or University taking over part of their students’ union (Queen Mary and Portsmouth) or all of their students’ union (London Met). Strategic Theme Two – Delivering diverse opportunities The Students’ Union believes there is no single ‘Student Experience’, but many student experiences. The Union has the capacity to have significant impact on the lives of students through the delivery of diverse opportunities, enabling our students to make the most of their time at Goldsmiths. We believe we are able to do this by placing equality and diversity at the heart of organisation’s culture and activity.
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GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORT for the year ended 31 July 2011 Strategic Theme Three –Representing students effectively Our mission stipulates that representation is at the heart of all that we do. If we are not representing all students effectively then we simply will not be fulfilling our raison d’etre. This is especially important at a time when students will be expecting more of their College and will need mechanisms to channel their criticisms. This is particularly true of under-represented and minority groups. Strategic Theme Four – Professional, ethical services We operate in a competitive environment where students enter into higher education with increasingly higher expectations. For the Union to remain sustainable it must deliver excellent services across the organisation that measurably impact on students lives. Our belief in collectivism ensures we embrace our responsibilities beyond the walls of Goldsmiths. The Union believes that the pursuit of ethical and environmental excellence throughout the organisation and active lobbying for it beyond we will ensure meet our responsibilities and become a sustainable organisation. Key Performance Indicators (KPIs) Our key performance indicators are those areas that are critical to our success as an organisation and, as such, these will be constantly monitored. Our key performance indicators are: Increasing participation and involvement • Election Turnout (%) and no. of candidates. • No. of students involved in clubs, societies, volunteering, media. • No. of NUS Extra cards sold. Being effective campaigners and representatives • Campaigning objectives are achieved. • Students recognise campaigns made a difference to their lives. • Number of students seen through our advice centre. High levels of Membership Satisfaction • Students see the Students’ Union as having made a positive difference to their lives. Achieving our financial targets • Generating surpluses. The targets for these areas are detailed in the 2008-2013 strategic plan. Projects for 2011/12 The most significant projects for the Union in 2011/12 are: • • • • • • •
Developing a new Strategic Plan. A new website for the Union and greatly improved levels of engagement with our members. Fighting cuts in Higher Education and against higher tuition fees. Agreeing a revised Memorandum of Understanding with the College and registering with the Charity Commission. Work towards Silver accreditation under the Students’ Union Evaluation Initiative. Working to achieve another Gold in the Sound Impact Awards. Establishing workplace representation for students in part-time employment through the GMB partnership
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GOLDSMITHS STUDENTS' UNION
TRUSTEES' REPORT for the year ended 31 July 2011 We will also aim to achieve the targets in Union-led campaigns for 2011/12, which are broadly grouped around: • • • •
Union ethos: Promoting Union policy, supporting campaigns linked to our beliefs and values and having a zero tolerance approach to sexual harassment. Goldsmiths not for profit: Making sure Goldsmiths College does not outsource student services or academic courses to private companies and defending the integrity of education at Goldsmiths from damaging cuts. Support our students: Lobbying the College to provide funding for the development of our advice service. Increase the number of student volunteers in particular with our two main projects: Open Book and the Safety Night Bus.
Our successes last year were a result of the hard work and commitment of union staff, officers and volunteers, but I must finish with a special mention of last years President, Bindz Patel, who provided exceptional leadership. James Haywood President 2011-12
RESULTS The profit for the year, after taxation, amounted to £59,465 (2010 - £2,202). PRESIDENT The president who served during the year was: Bindz Patel PROVISION OF INFORMATION TO AUDITOR Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
so far as that Trustee is aware, there is no relevant audit information of which the Union's auditor is unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the Union's auditor in connection with preparing its report and to establish that the Union's auditor is aware of that information.
AUDITOR The auditor, Crowe Clark Whitehill LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on
and signed on its behalf.
James Hayward President
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GOLDSMITHS STUDENTS' UNION
STATEMENT OF TRUSTEES' RESPONSIBILITIES for the year ended 31 July 2011 Charity law requires the Trustees 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 surplus or deficit for that year. In preparing the financial statements the Trustees are required to select suitable accounting policies, as described below, and then apply them on a consistent basis, making judgments and estimates that are prudent and reasonable. The Trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Union will continue to operate. The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the Union. It is 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. Risk Management The Trustees have undertaken to examine the major risks that the Union faces. That review is an integral part of the annual planning cycle. The Union has, and continues to develop, systems to monitor and control these risks in order to mitigate any impact that they have on the Union and its operations. The Trustees are responsible for preparing the Trustees' Report and the Financial Statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare for each financial year. Under that law the Trustees have elected to prepare the in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these, the Trustees are required to: 
select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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GOLDSMITHS STUDENTS' UNION
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GOLDSMITHS STUDENTS' UNION We have audited the financial statements of Goldsmiths Students' Union for the year ended 31 July 2011, set out on pages 9 to 19. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the Union's members as a body. Our audit work has been undertaken so that we might state to the Union's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Union and the Union's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Trustees' and auditors The 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 Trustees' Responsibilities. We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under 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 Trustees’ Annual Report is not consistent with those financial statements, if the charity has not kept sufficient accounting records, or if we have not received all the information and explanations we require for our audit. We read the Trustees’ Annual Report 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 trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed. 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.
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GOLDSMITHS STUDENTS' UNION
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF GOLDSMITHS STUDENTS' UNION
OPINION ON FINANCIAL STATEMENTS 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 charity as at 31 July 2011 and of its incoming resources and application of resources, for the year then ended; and
have been properly prepared in accordance with the Charities Act 1993.
CROWE CLARK WHITEHILL LLP Statutory Auditor Reading
Page 9
GOLDSMITHS STUDENTS' UNION
INCOME & EXPENDITURE ACCOUNT for the year ended 31 July 2011
Note
2011 £
2010 £
INCOME Grants receivable
2
605,830
620,679
Net trading result
3
13,389
(53,087)
Sundry income
4
10,917
10,804
Investment income
5
215
141
630,351
578,537
EXPENDITURE Representation
6
322,708
289,090
Central services
7
115,064
161,411
Clubs and societies
8
64,068
60,728
Building costs
9
49,248
53,184
Student activities
10
2,453
11,922
553,541
576,335
76,810
2,202
SURPLUS FOR THE YEAR BEFORE ALLOCATION TO FUNDS TRANSFERS Transfer to development reserve SURPLUS FOR THE YEAR TO INCOME AND EXPENDITURE ACCOUNT
(17,345) 59,465
2,202
The notes on pages 11 to 19 form part of these financial statements.
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GOLDSMITHS STUDENTS' UNION
BALANCE SHEET as at 31 July 2011 2011 Note
£
2010 £
£
£
FIXED ASSETS Tangible fixed assets Fixed asset investments
12 13
30,698
49,452
60
60
30,758
49,512
CURRENT ASSETS Stocks
14
48,443
54,923
Debtors
15
39,070
48,142
234,778
111,533
322,291
214,598
(71,014)
(58,885)
Cash at bank
CREDITORS: amounts falling due within one year
16
NET CURRENT ASSETS
251,277
155,713
TOTAL ASSETS LESS CURRENT LIABILITIES
282,035
205,225
CAPITAL AND RESERVES -
-
Development reserve
17
17,345
Income and expenditure account
19
264,690
205,225
282,035
205,225
FUNDS
-
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
G Gaskell Chief Executive
James Hayward President
The notes on 11 to 19 form part of these financial statements.
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
1.
ACCOUNTING POLICIES 1.1 Basis of accounting The financial statements have been prepared under the historical cost convention. The Trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. This is on the basis they continue to obtain support from the College. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements. 1.2 Cash flow statement The Trustee Board has taken advantage of the exemption in Financial Reporting Standard No 1 from including a cash flow statement in the financial statements. 1.3 Turnover Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. 1.4 Depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Bar extension & Entertainment Union Bar Shop refurbishment Union equipment
-
20-25% straight line 25% straight line 25% straight line 10-33% straight line
1.5 Operating leases Rentals under operating leases are charged on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. 1.6 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 1.7 Pensions Since February 2009, the Union has participated in the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P). The liabilities are valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuary, based on the latest actuarial valuation of the scheme, and are accounted for on the basis of charging the cost of providing pensions over the period during the institution benefits from the employees' services.
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011 1.
ACCOUNTING POLICIES (continued) 1.8 Accounting by charities - Statement of Recommended Practice (SORP) As a result of its exempt charitable status the Union is not required to adopt the SORP in the presentation of the Financial Statements. However, in accordance with the establishment of best practice, where appropriate the Union will make disclosures in accordance with the broader principles of the SORP. 1.9 Taxation No provision is made in these accounts for corporation tax as the Union is exempt from such taxes as a result of having derived its charitable status from its parent governing body, Goldsmiths College.
2.
GRANTS RECEIVABLE 2011 £ Block Grant
3.
605,830
620,679
NET TRADING INCOME 2011 Turnover £ Retail operations Other trading activities
4.
2010 £
2011 Surplus / (Deficit) £
2010 Turnover £
2010 Surplus / (Deficit) £
570,301 101,166
5,604 7,785
639,506 83,477
9,909 (62,996)
671,467
13,389
722,983
(53,087)
SUNDRY INCOME 2011 £ Other income Sponsorship Smiths Pension income
2010 £
725 311 9,881
747 1,272 8,785
10,917
10,804
Pension income represents pension costs paid for on behalf of Goldsmiths College.
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
5.
INVESTMENT INCOME 2011 £ Bank deposit interest NUSSL Deposit interest
6.
2010 £
215 -
80 61
215
141
REPRESENTATION 2011 £
Conference fees and expenses Elections Trustee Board expenses NUS affiliation fee Wages and salaries Bad debts Welfare Diversity support Pension Course Rep scheme Other affiliation fees Campaigns Additional projects
2010 £
15,227 3,755 58 31,191 190,436 (54) 1,007 9,881 16,545 42,602 4,369 7,691
10,284 1,735 11 25,916 160,355 (170) 2,928 1,833 8,786 25,988 43,124 5,989 2,311
322,708
289,090
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
7.
CENTRAL SERVICES 2011 £
2010 £
Administration Costs Audit and accountancy Bad debts Bank charges Depreciation Insurance Legal Salaries and wages Staff expenses Staff recruitment Stationery, photocopying, publications and postage Telephone Training Loss on disposal of fixed assets
9,500 1,569 1,689 3,282 19,453 641 64,847 1,832 643 1,274 5,472 4,862 115,064
8,500 (1,679) 2,407 5,709 17,830 18,068 77,991 2,116 6,889 3,717 8,933 9,818 1,112 161,411
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
8.
CLUBS AND SOCIETIES 2011 £
2010 £
Sports Clubs income Fitness gym income Annual membership fees External Venue Hire
(31,061) (6,458) (9,013)
(28,717) (5,582) (10,133)
(46,532)
(44,432)
3,448 330 996 38,161 1,524 716 19,986 513
3,725 720 34,024 1,696 522 20,107 -
65,674
60,794
87 139 861 5,029 800 38,010
56 2,658 9,382 32,270
44,926
44,366
64,068
60,728
Sports Clubs Expense Affiliations Bad debts Varsity Salaries and wages Transport (including Minibus) AU Dinner Club activities Sports administration
Societies Expense Volunteering projects expenditure Diversity support Bad debts Grants Membership expenditure Salaries and wages
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
9.
BUILDING COSTS 2011 £
Maintenance and repair of premises Salaries and wages Cleaning Society developments Depreciation Common room income
10.
7,692 18,215 20,792 660 3,339 (1,450)
12,497 16,711 23,976 -
49,248
53,184
STUDENT ACTIVITIES 2011 £ Induction and enrolment project Made in Goldsmiths Student development
11.
2010 £
2010 £
994 1,459 -
6,569 4,881 472
2,453
11,922
STAFF SALARIES AND WAGES 2011 £
2010 £
Gross salaries Pension contributions
572,534 9,881
567,522 8,785
Total
582,415
576,307
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
12.
TANGIBLE FIXED ASSETS
Bar extension £
Union bar £
Shop refurbishment and Union equipment Entertainment £ £
Total £
COST At 1 August 2010 Additions
599,744 -
66,403 -
161,093 3,726
67,449 -
894,689 3,726
At 31 July 2011
599,744
66,403
164,819
67,449
898,415
At 1 August 2010 Charge for the year
599,744 -
56,715 5,968
140,885 6,921
47,893 9,591
845,237 22,480
At 31 July 2011
599,744
62,683
147,806
57,484
867,717
DEPRECIATION
NET BOOK VALUE
13.
At 31 July 2011
-
3,720
17,013
9,965
30,698
At 31 July 2010
-
9,688
20,208
19,556
49,452
INVESTMENTS £ COST: At 1 August 2010 and 31 July 2011
60
NET BOOK VALUE: At 31 July 2011
60
At 31 July 2010
60
At 31 July 2011 the Union held investments in the following companies which are incorporated in the United Kingdom. Name of Company NUS Services Limited A Shares B Shares
Main Trading Activity Purchasing Services
Equity Held 0.36% 0.00%
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
14.
STOCKS 2011 £ Bar and shop
15.
48,443
Trade debtors Other debtors Prepayments and accrued income
2010 £
4,538 9,645 24,887
13,382 18,892 15,868
39,070
48,142
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2011 £ Trade creditors Social security and other taxes Other creditors Accruals and deferred income
17.
54,923
DEBTORS 2011 £
16.
2010 £
2010 £
23,237 9,981 22 37,774
21,447 8,184 5,260 23,994
71,014
58,885
RESERVES Develop ment reserve £ Transfer to reserves in year
17,345
At 31 July 2011
17,345
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
18.
RELATED PARTY TRANSACTIONS The Union is an exempt charity for the purposes of the Charities Act 1993 deriving charitable status from its governing parent body, the Goldsmiths College. The Union is in receipt of a recurrent grant from the parent body of £605,830 (2010: £ 620,679). The amount due from Goldsmiths College at the year end was £5,941 (2010: £18,869). In addition the Union occupies its building on a rent free basis under an informal license subject to the union maintaining the building in a good state of repair. The Sabbaticals of the Union are the members of the Trustee Board and receive remuneration for their services as provided for within the Constitution. The aggregate amount payable under such contracts in the year was £94,124 (2010: £80,082). The total board expenses paid during the year to the Trustees was £58 (2010: £11) and reimbursed travel expenditure amounted to £1,531 (2010: £403).
19.
20.
INCOME AND EXPENDITURE ACCOUNT 2011 £
2010 £
At 1 August 2010 Retained surplus for the financial year
205,225 59,465
203,023 2,202
At 31 July 2011
264,690
205,225
2011 £
2010 £
CAPITAL COMMITMENTS At 31 July 2011 the company had capital commitments as follows:
11,500
Contracted for but not provided in these financial statements
21.
-
OPERATING LEASE COMMITMENTS At 31 July 2011 the company had annual commitments under non-cancellable operating leases as follows: Land and buildings 2011 2010 £ £
Other 2011 £
2010 £
EXPIRY DATE: Within 1 year
-
-
1,673
1,673
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
22.
AFFILIATIONS 2011 £ NUS BUCS / BUSA Jitsu Foundation NCVO ULU Sports
23.
31,191 1,865 560 43,056 569
2010 £ 25,916 1,605 200 146 43,124 -
PENSION SCHEME The Union is a participating employer of the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension Scheme (S2P). The assets of the scheme are held in a separate trustee-administered fund. It is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme. The cost recognised within the surplus/deficit for the year in the income and expenditure account being equal to the contributions payable to the scheme in the year. The latest actuarial valuation of the scheme was at 31 March 2008. The assumptions which have the most significant effect on the result of the valuation are those relating to the rate of return on investments (i.e. the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the past service liabilities the financial assumptions were derived from market yields prevailing at the valuation date. It was assumed that the valuation date of interest would be 6.4% per annum, salary increases would be 4.3% per annum and pensions would increase by 3.3% per annum. In relation to the future service liabilities it was assumed that the valuation rate of interest would be 6.1%, salary increases would be 4.3% per annum and pensions would increase by 3.3% per annum. The valuation was carried out using the projected unit method. At the valuation date, the market value of the assets of the scheme was £28,842.6M. The assets were sufficient to cover 103% of the benefits which had accrued to members after allowing for expected future increases in earnings. The institution contribution rate required for future service benefits alone at the date of the valuation was 16% of salaries. Surpluses or deficits which arise at future valuations may impact on the future contribution commitment. The next formal actuarial valuation is due as at 31 March 2011 when the above rates will be reviewed. The total pension cost for the Union was £9,881 (2010 - £8,785).
24.
CONTROLLING PARTY The Union is controlled by the Trustee Board, which is subject to democratic election by the voting membership of the Union. Under the constitution, the ultimate control of the Union is vested in the membership in General meeting. As such no single person or entity controls the Union as defined by Financial Reporting Standard 8.
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GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011 The following pages do not form part of the audited financial statements which are the subject of the auditors' report on page 8. Information is provided for the use of the executive committee and senior management team of Union of Goldsmiths Students' Union.
PAGE Net trading income - summary
23
Union Bar
24
Union Shop
25
Entertainments
26
Other trading
27
Page 22
GOLDSMITHS STUDENTS' UNION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 July 2011
TRADING OUTLET 2011 Turnover £ Union bar Union shop Entertainments Other
2010 Surplus/ (deficit) £
Turnover £
Surplus/ (deficit) £
207,642 362,659 103,539 14,972
(6,592) 12,194 25,205 (17,418)
247,145 392,361 72,916 10,561
(12,498) 22,407 (51,839) (11,157)
688,812
13,389
722,983
(53,087)
SUMMARY OF FUNCTIONS £
£
£
£
Bars Shops Other
207,642 362,659 101,166
(6,592) 12,194 7,787
247,145 392,361 83,477
(12,498) 22,407 (62,996)
Total
671,467
13,389
722,983
(53,087)
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNTS - UNION BAR for the year ended 31 July 2011
2011 £
2010 £
SALES Sales
207,642
247,145
COST OF SALES Opening stock Purchases Closing stock
11,020 76,535 (7,026)
9,041 96,358 (11,020)
Retrospective discount
80,529 3,131
94,379 4,966
(105) 2,474 1,871 5,968 5,265 25,253 1,400 42,463 1,450 4,079 42,271 1,768 2,679
4,460 1,650 5,733 5,587 33,874 2,550 57,644 832 9,901 46,938 1,062 -
OPERATING EXPENSES Bad debts Consumables Credit card charges Depreciation Repairs and maintenance Security Stocktaking fees Student staff Sundry expenses Travel expenses and staff uniforms Wages and salaries Gases Staff training
136,836 NET (DEFICIT)
(6,592)
170,231 (12,499)
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNTS - UNION SHOP for the year ended 31 July 2011
2011 £
2010 £
TURNOVER Sales Pay for display
360,979 1,680
390,655 1,706
362,659
392,361
43,903 252,763 (41,418)
32,421 274,897 (43,903)
255,248
263,415
COST OF SALES Opening stock Purchases Closing stock
OPERATING EXPENSES Depreciation Student staff Sundry expenses Wages and salaries Repairs and renewals Travel expenses Bank charges Uniform Bad debts
NET SURPLUS
300 27,027 664 61,037 2,873 927 2,198 191 -
16,905 23,280 822 62,478 486 2,200 1,650 150 (1,432)
95,217
106,539
12,194
22,407
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNT - ENTERTAINMENTS for the year ended 31 July 2011
2011 £
2010 £
INCOME Sales Bands and disco tickets Space and hall hire Sundry income
17,345 54,340 25,147 6,707
52,763 21,268 (1,115)
103,539
72,916
22,480 -
31,056 7,532
22,480
38,588
9,591 2,980 1,110 8,990 3,692 1,125 24,318 5,042 (994)
12,311 656 14,637 9,957 1,159 41,370 6,078 -
55,854
86,168
25,205
(51,840)
COST OF SALES Groups, bands, disc jockeys and other entertainment Summer ball expenditure
OPERATING EXPENSES Depreciation PPL Licence Posters, printing and advertising Security Student staff Sundry expenses Wages and salaries Repairs and Maintenance Bad debts
NET SURPLUS/(DEFICIT)
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GOLDSMITHS STUDENTS' UNION
DETAILED TRADING ACCOUNTS - OTHER TRADING for the year ended 31 July 2011
2011 £
2010 £
TURNOVER Sales NUS extra Freshers Fair
1,559 3,746 9,667
1,497 2,046 7,018
14,972
10,561
6,008 108 69 4,146 22,059
4,707 610 6,375 10,026
32,390
21,718
(17,418)
(11,157)
OPERATING EXPENSES Fresher's Fair expenditure Fresher's printing costs Communications and PR Marketing and advertising Salaries
NET (DEFICIT)
Page 27