2013 14 wsu consolidated final feb 2015 by Warwick SU

WARWICK STUDENTS' UNION ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 1 August 2013 to 31 July 2014

COMPANY REGISTRATION NUMBER: 07297865 CHARITY NUMBER: 1136894

CONTENTS PAGE

Legal and Administrative Information Annual Report of the Board of Trustees (Incorporating Strategic Report) Statement of the Board of Trustees' Responsibilities Independent Auditor's Report

1 -5 6 - 24 25 26 - 27

Group Statement of Financial Activities

Balance Sheets

Consolidated Cash Flow Statement

Principal Accounting Policies

31 - 35

Notes to the Financial Statements: Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8 Note 9 Note 10 Note 11 Note 12 Note 13 Note 14 Note 15 Note 16 Note 17 Note 18 Note 19 Note 20 Note 21 Note 22

Charitable Activity and Support Costs Governance Costs Net Incoming Resources for the Period Staff Costs Trustees' Remuneration and Expenses Tangible Fixed Assets Capital Commitments Fixed Asset Investments Stocks Debtors Creditors Provisions for Liabilities and Charges Restricted Funds Designated Funds Analysis of Net Assets between Funds Grants to Student Sports Clubs and Societies Lease Commitments Cash Flow Statement Pension Scheme Related Party Transactions Affiliations

Post Balance Sheet Event

WARWICK STUDENTS' UNION For the year ended 31 July 2014

36 - 37 37 38 38 - 39 39 40 40 41 - 42 42 43 43 - 44 44 44 45 45 46 46 47 48 - 49 49 50 50

LEGAL AND ADMINISTRATIVE INFORMATION UNION

WARWICK STUDENTS' UNION

CHARITABLE STATUS

Warwick Students' Union is a charitable company limited by guarantee. Warwick Students' Union is a charity established under the Education Act 1994. Warwick Students' Union charity registered with the Charity Commission for England and Wales on 15 July 2010. Registered UK charity number: 1136894

COMPANY

Warwick Students' Union is a charitable company limited by guarantee registered in England and Wales on 29 June 2010. Registered company number: 7297865

REGISTERED OFFICE

WARWICK STUDENTS' UNION University of Warwick Gibbet Hill Road COVENTRY CV4 7AL

BOARD OF TRUSTEES

Search and Nominations Committee ensures that Warwick Students' Union has effective systems for the appointment and training of trustees and that the membership of the Board of Trustees is appropriate.

SABBATICAL OFFICERS 2013-2014

2014-2015

Appointed

Resigned

B Sundell E Davies C March L Gill A Scott Z Buckland C Turhan

President Education Democracy & Development Postgraduate Societies Sports Welfare & Campaigns

1 August 2012

31 July 2014

1 August 2013

31 July 2014

1 August 2012

31 July 2014

1 August 2013

31 July 2014

1 August 2013

31 July 2014

1 August 2013

31 July 2014

C Turhan M Mirza R Ankcorn A Thompson I Leigh R Compton-Davies A Husakova

President Education Democracy & Development Postgraduate Societies Sports Welfare & Campaigns

1 August 2013

WARWICK STUDENTS' UNION For the year ended 31 July 2014

1 August 2013

1 August 2014 1 August 2014 1 August 2014 1 August 2014 1 August 2014 1 August 2014

LEGAL AND ADMINISTRATIVE INFORMATION BOARD of TRUSTEES continued WARWICK STUDENTS' UNION TRUSTEES Sabbatical Officer Trustees

Student Trustees

External Trustees

SECRETARY

Appointed

B Sundell E Davies C March L Gill A Scott Z Buckland C Turhan M Mirza R Ankcorn A Thompson I Leigh R Compton-Davies A Husakova

Chair

1 August 2012

31 July 2014

1 August 2013

31 July 2014

1 August 2012

31 July 2014

1 August 2013

31 July 2014

1 August 2013

31 July 2014

1 August 2013

31 July 2014

1 August 2013 1 August 2014 1 August 2014 1 August 2014 1 August 2014 1 August 2014 1 August 2014

A Evans S Hewlings A Moore N Shiers S Brazell A Khan H Gould T Leek R Strudwick S Fry M Beatty

1 August 2012

31 July 2014

1 August 2012

31 July 2014

1 August 2012

26 March 2014

1 August 2012 5 December 2012

31 July 2014

15 November 2013

31 July 2014

1 August 2014 1 August 2014 1 August 2014 29 October 2014 29 October 2014

J Ryder E Cox H J Hunt G Parker N Pitt

Vice Chair

1 August 2010 7 December 2011 7 December 2011 7 May 2013 7 May 2013

J Clements

29 June 2010

SENIOR MANAGEMENT Chief Executive

Appointed J Clements

WARWICK STUDENTS' UNION For the year ended 31 July 2014

Resigned

14 July 2008

LEGAL AND ADMINISTRATIVE INFORMATION COMPANY

STUDENTS' UNION SERVICES WARWICK LIMITED

GOVERNING INSTRUMENT

The company is a limited company with share capital. It is governed by its Memorandum and Articles of Association.

COMPANY REGISTERED NUMBER

2197761

DIRECTORS

The following director was appointed on 18 November 2010: A H Smith

The following director was appointed on 1st August 2013 and resigned on 31 July 2014: Z Buckland

The following director was appointed on 1 August 2012 and resigned on 31 July 2014: C March

The following directors were appointed on 1 August 2014: R Ankcorn R Compton-Davies

COMPANY SECRETARY

J Clements

REGISTERED OFFICE

SUHQ Warwick Students' Union University of Warwick Gibbet Hill Road Coventry CV4 7AL

WARWICK STUDENTS' UNION For the year ended 31 July 2014

LEGAL AND ADMINISTRATIVE INFORMATION COMPANY

MEMBERSHIP SOLUTIONS LIMITED

GOVERNING INSTRUMENT

The company is a limited company with share capital. It is governed by its Memorandum and Articles of Association.

COMPANY REGISTERED NUMBER DIRECTORS

5525449 The following director has held office since incorporation 2 August 2005: C Horton The following director was appointed on 29 November 2007: S Gilling The following director was appointed on 12 July 2008: J Clements The following director was appointed on 1 August 2009: J Bonsall The following director was appointed on 1 August 2012 and resigned on 31 July 2014: C March The following director was appointed on 1 August 2013 and resigned on 31 July 2014: B Sundell The following directors were appointed on 1 August 2014: C Turnhan R Ankcorn

COMPANY SECRETARY

J Clements

REGISTERED OFFICE

SUHQ, Warwick Students' Union, Warwick Students' Union University of Warwick Coventry CV4 7AL

WARWICK STUDENTS' UNION For the year ended 31 July 2014

LEGAL AND ADMINISTRATIVE INFORMATION BANKERS

NatWest plc 24 Broadgate Coventry West Midlands CV1 1NE

SOLICITORS

Band Hatton Button 25 Warwick Road Coventry West Midlands CV1 2EZ Bates Wells and Braithwaite London LLP 2 - 6 Cannon Street London EC4M 6YH Woodroffes Solicitors 7 Beeston Place London SW1W 0JJ

AUDITOR

Baker Tilly UK Audit LLP Chartered Accountants St Philips Point Temple Row Birmingham B2 5AF

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (Incorporating Strategic Report) The Board of Trustees of the Union submit their Annual Report for the period ended 31 July 2014 which includes the administrative information set out on pages 1 to 5 together with the audited accounts for the year. The Board of Trustees have prepared this in accordance with the Accounting and Reporting by Charities published in March 2005 (Statement of Recommended Practice 2005).

MEMBERS OF THE UNION Full Members All registered students of the University of Warwick except those who exercise their right not to be a member under clause 22 (c) of the Education Act 1994. Sabbatical Officers of the Union are full members of the Union. Associate Members Those persons admitted to membership by the Student Council or a delegated officer, who have paid any required fee.

STRUCTURE, GOVERNANCE AND MANAGEMENT Warwick Students' Union (the Union) is constituted under the Education Act 1994 as a charity with internal rules and regulations approved by University Council, the governing body of the University of Warwick. The Union's charitable objects under the Act, to advance the University's educational purposes by providing representation and support for the students of the University of Warwick, are supplemented by the further object of helping members to develop their own charitable activities as participants in civil society. Warwick Students' Union has moved from the traditional unincorporated association model and has registered as a charity with the Charity Commission and incorporated as a company limited by guarantee as of 1 August 2010, when Students' Unions connected with exempt higher education institutions were removed by section 11(9), Charities Act 2006, from the list of exempt charities in Schedule 2 to the Charities Act 1993.

BOARD OF TRUSTEES The Union is administered by its Board of Trustees comprising:- up to five appointed external lay members - up to six appointed full student members who are not Sabbatical Officers - up to seven student Sabbatical Officers (including the President of the Union) The President of the Union acts as Chair of the Board of Trustees. The appointed Student Trustees are recruited to the Board and selected by the Trustees and Student Council to serve a maximum term of two years.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) BOARD OF TRUSTEES continued The appointed Lay Trustees are recruited to the Board and selected by the Trustees and Student Council to normally serve a term of three years which may be extended for a second term.

Officers of the Union The Officers of the Union are: -

Sabbatical Officer Trustees Chair and Deputy Chair of Student Council Chairs of the societies and sports committees four Liberation Officers University Faculty Representatives on the Student Staff Liaison Committees

There are up to seven Sabbatical Officer Trustees including a President, Deputy President and a Sabbatical Officer with responsibility for finance. The Sabbatical Officers are officer trustees elected through a secret ballot by the members each year, normally serving for one year in office but can serve a second term if re-elected. These are full time posts remunerated as authorised by the Education Act and the Memorandum and Articles of Warwick Students' Union. Trustees Induction and Training Upon appointment all trustees receive a variety of information through their induction. Trustees are briefed on their legal obligations and other trustee responsibilities. The Sabbatical Officers are new to the Board every year, so they undergo more intensive, in depth training to ensure that they are fully aware of their roles and responsibilities and can perform their duties to the best of their abilities as soon as possible. There is an on-going training programme for Trustees for issues which may occur during their term of office.

TRUSTEES POWERS AND RESPONSIBILITIES Trustees' General Authority The Board of Trustees has ultimate responsibility for the financial matters and procedures of the Union. The Board of Trustees may choose to prohibit the implementation of any policy recommended by Student Council which has financial implications if it is passed without a realistic financial plan, is not legal, or may not be in the best interests of the Union in accordance with Article 40.3 of the Memorandum and Articles of Association. The Board of Trustees is assisted by committees where appropriate and has delegated the day-to-day running of Warwick Students' Union to the Chief Executive.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT Committees The Board of Trustees meets at least five times a year to receive reports from committees, Sabbatical Officers, Senior Management and the Chief Executive, to review the Union's performance and administration generally and to agree policy issues arising, subject to consultation with the Student Council. The Board of Trustees is supported by three committees which focus on certain key aspects of Warwick Students' Union governance and management:- The Search and Nominations Committee - The Audit and Risk Committee - The Finance and Human Resources Committee Search and Nominations Committee This ensures that new trustees are recruited, inducted and developed properly. They also have responsibility for recruitment of the Chief Executive. Audit and Risk Committee This monitors the Union's finances, risk profile and other aspects which could impact on Warwick Students' Union's organisational health as well as ensuring that the Union is complying with relevant legislation. Finance and Human Resources Committee This examines issues relating to finance. It scrutinises the management and annual accounts, financial plans and annual budgets. It also monitors issues relating to staff including the staff survey results, pay changes, training and development as well as staff policies.

STUDENT COUNCIL The Union operates on democratic principles, working for and with our members, the students of the University of Warwick. The voice of students is represented by Student Council, elected by and from members of the Union. Student Council has the primary responsibility for the implementation and oversight of Union policy. Union policy, regulations and principles are debated and voted for by members at All Student Meetings. The composition and proceedings of Student Council are set out in the By-laws. Policies held by Student Council cannot be overturned without being debated and voted on at a further All Student Meeting. Policies may be overturned by the Board of Trustees only for financial, reputational or legal reasons.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) STUDENT COUNCIL continued The Union maintains a policy file and record of lapsed policies. Policies lapse after two years unless renewed by Student Council who will specify the next renewal date. The Student Council receives a quarterly report from the Trustees.

RELATIONSHIP WITH THE UNIVERSITY OF WARWICK The relationship between the University and the Union is established in the Charter, Statutes, Ordinances and Regulations of the University. The Union receives a block grant from the University and occupies a building owned by the University of Warwick Foundation Fund which is leased to the Union at an agreed rent. There is no reason to believe that the block grant or equivalent support from the University of Warwick will not continue for the foreseeable future, as the Education Act 1994 imposes a duty on the University to take such steps as are reasonably practicable to ensure that the Union operates in a fair and democratic manner and is accountable for its finances. Warwick Students' Union therefore works alongside the University of Warwick to ensure that the affairs of the Union are properly conducted and that the educational and welfare needs of the Union's members are met.

RISK MANAGEMENT The Trustee Board has examined the main strategic business and operational risks faced by the Union. A risk register has been established and is updated at least annually. Where appropriate, systems and procedures have been established to mitigate the risks the Union faces and these are periodically reviewed to ensure that they continue to meet the needs of the Union. Budgetary and internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with the health and safety of staff, volunteers and participants on all activities organised by the Union. These procedures are periodically reviewed to ensure they continue to meet the needs of the Union.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) DISABLED PERSONS Full and fair consideration is given to applications for employment by disabled persons, having regard to their aptitudes and abilities. Should an employee become disabled during their employment, all efforts will be made to continue their employment and to provide appropriate training and support. Training, career development and promotion opportunities will be, as far as possible, identical to those for other employees.

EMPLOYEE ENGAGEMENT The Union encourages the involvement of its employees in its management through regular meetings of the Staff Consultative Forum. This forum has the responsibility for the dissemination of information of particular concern to employees and for receiving their views on important matters of policy.

AIMS, OBJECTIVES AND ACTIVITIES Our Mission Warwick Students' Union - creating a better experience for students at Warwick. Our Objects The objects of the Union are the advancement of education of students at the University of Warwick for the public benefit by:(i) promoting the interests and welfare of students at Warwick Students' Union during their course of study and representing, supporting and advising students. (ii) being the recognised representative channel between students and the University of Warwick 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. The Trustees have had regard to the Charity Commission Guidance on Public Benefit and believe that the objects above comply with the public benefit requirement.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) AIMS, OBJECTIVES AND ACTIVITIES (continued) Our Values We are:-

Democratic, student led, member focussed and representative the Independent voice of Warwick students Ethical, fair, principled, transparent and environmentally sound Fun, friendly, vibrant and entertaining Informative, supportive, knowledgeable, responsive and useful Enriching, helping students develop and nurture their aspirations Accessible, diverse, welcoming, tolerant and inclusive

In pursuit of this vision, the Union will ensure the diversity of its membership is recognised, valued and supported and as such has established departments and services for use by its members and to support its work with the University of Warwick and other organisations on behalf of students. These include the Union's Advice and Welfare Centre and the Student Resources Centre which hosts Democracy and Representation, Student Activities and Student Development. There are also the Venue, Union Bars and Catering outlets. The Sabbatical Officers represent students by sitting on key committees and working groups of the University of Warwick. This ensures that the student voice is heard and responded to at all levels of the University to enhance the student experience. Student representatives now sit on and contribute to over 30 University committees and through the Staff - Student Liaison Committee system (SSLC) approximately 720 students effectively liaise with University departments to raise student concerns and work to improve the teaching and learning experiences of students. The Union's Senior Managers also meet regularly with Local Authorities, local Primary Care Trusts and other providers of public services affecting students. To further enhance the student experience, Warwick Students' Union involves and supports students from all walks of life to get involved with both the University and local community by actively promoting the benefits of volunteering in student-led activities such as Warwick Volunteers and the Inspire scheme. This involves students visiting comprehensive schools in the West Midlands area to talk about their lives as students with pupils who may not have considered embarking on a course in higher education. Warwick Students' Union also supports approximately 72 sports clubs and 270 student societies offering students a wide range of academic, social, cultural, charitable and interest based groups. Students have the opportunity to meet new people and share their interests as well as develop transferable skills.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) INVESTMENT POLICY The Trustees objective is to invest surplus cash to best advantage with minimum risk. The Union has taken a prudent stance with funds being held in high interest bearing deposit accounts for periods not exceeding 6 months. Cash funds so invested are usually over a minimum balance of £100,000 and must be placed with an approved and reputable banking institution to minimise risk. Investment returns in the year reflect the stated policy as well as the lower interest rates available due to market conditions.

RESERVES POLICY Following the Union's registration with the Charity Commission the Trustees have considered the level of free reserves required. Issues considered by the Trustees when looking at the level of reserves were future investment and contingency requirements for risks. This includes such items as future building refurbishment and potential pension fund deficits. The Board of Trustees have agreed that the Union should have a reserves target of at least £750,000. The Union will be reviewing this policy in line with its future strategy in the next twelve months. Designated reserves are held to fund future building refurbishment plans and the current level is £250,000 (2013: £250,000).

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Headline Key Performance Indicators (KPIs) Well run organisations set clear objectives each year and communicate these to everyone involved. A crucial component of these objectives is being able to see whether they have been successfully achieved. The measures put in place are Key Performance Indicators (KPIs) and they are - in simple terms - the way of benchmarking achievement relating to aims for the year. Seven areas were identified for monitoring with KPIs during the 2013-14 financial year: Impact: - % of students satisfied with the Union (National Student Survey - target: 78%) Representation: - voter turnout in Autumn Elections (target: 1,900) - voter turnout in Officer Elections (target: 7,000) - number of students who know who their Staff-Student Liaison Committee (SSLC) representative is (target: 70%) Membership Participation: - memberships of Sports Clubs (target: 10,000) and Societies Federation (target: 7,800) - % of Postgraduate students satisfied with the SU (target: at least 55% satisfied) - a target of 1,000 votes cast at an All Student Meeting Communications: - % of students aware of Union's achievements (target: at least 50% awareness) Staff: - student staff who feel valued for their contribution (Staff Survey - target: 4.00) - permanent staff who feel valued for their contribution (Staff Survey - target: 4.10) Finance: - Achieve or exceed budget surplus of ÂŁ50k for 2013-14 Environmental Impact: - Reduce the volume of waste (target: 116 tonnes - a 4% reduction) These key performance indicators were selected by the Board of Trustees from a larger list of monitoring targets and will provide benchmarks and challenges for the Union. As the Union begins a review of strategy for the next five years these performance measures will also be reviewed.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) ACHIEVEMENTS AND PERFORMANCE (continued) Warwick Students' Union achieved the following against the published objectives for 2013-14:

Objective

Achievement

Impact - Our purpose: % of students who are satisfied with Warwick SU in the National Student Survey (question 23)

Target at least 78% - achieved 79% The result placed the Union in the top quartile of UK Students' Unions and was higher than last year - 76%.

Representation: Voter Turnout for Autumn and Officer elections

Autumn voter turnout 2,061 - target 1,900 Officer voter turnout 5,554 - target 7,000 A mixed result. The Autumn voter turnout was 192 higher than last year (2013: 1,869) however the turnout for Officer elections was below target and 1,145 lower than last year (2013: 6.699). This may have reflected the lower candidate numbers.

Representation: number who know their Staff-Student Liaison Committee Representative

Target at least 70% - achieved 55% This was a disappointing result and was lower than last year (2013: 64%).

Involvement - Membership Participation: membership of sports clubs and societies

Sports club memberships 9,578 - target 10,000 SocsFed memberships 8,689 - target 7,800 A mixed result. Warwick Sport membership was 107 higher than last year (2013: 9,471) however down on target. Membership of Societies Federation was 889 higher than target and 1,004 higher than last year (2013: 7,685). A really good result.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) ACHIEVEMENTS AND PERFORMANCE (continued) Objective

Achievement

Involvement - Membership Participation: % of postgraduates satisfied with the SU

Target 55% satisfied - achieved 48% This was a disappointing result but higher than last year (2013: 45%). There was improvement with 39% of postgraduates who remained neutral and only 9% expressing dissatisfaction.

Communications: % of students aware of achievements

Target 50% awareness - achieved 34% This was lower than last year (2013: 37%) with 31% of students remaining "neutral". Where students engage with the Union awareness is much higher.

Our people: staff feel valued by the Union for their contribution (source: Staff Survey)

Student staff target 4.00 - achieved 3.95 Permanent staff target 4.10 - achieved 4.01 This survey uses a five point Likert Scale where: 1 = I don't feel valued for my contribution 3 = My contribution is neither valued or not valued 5 = I feel my contribution is very valued The results are an average and the student staff target has improved slightly on last year. (2013: student staff 3.87 permanent staff 4.04). The Union has undertaken a reward review and the results may help with assessing key issues and identify areas that could be improved.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) ACHIEVEMENTS AND PERFORMANCE (continued) Objective

Achievement

Our finances: Achieve planned surplus of ÂŁ50k

Achieved a surplus of ÂŁ297k This is a pleasing result which enabled the Union to build back to its reserve target.

Environmental impact: Reduce the volume of waste produced

Target 116 tonnes - achieved 110 tonnes The Union continues to review wastage and is working to reduce the impacts of food waste within catering outlets. Their target of reducing waste to less than 0.5% of turnover was achieved.

The measures had mixed results and were challenging for the Union. The Union has extended its current strategic plan in order to undertake a more detailed consultation with members as part of the process to develop a new strategic plan. The Union agreed a total of 104 key performance indicators for 2013-14 to help assess development and impacts for the organisation. At the end of July 2014 the Union achieved the following: - 55 KPI's achieved. Representing 53% of total KPI's. - 27 KPI's almost on target. Representing 26% of total KPI's. - 15 KPI's missed or of concern. Representing 14% of total KPI's. - 7 KPI's which were no longer applicable. Assessing Impacts: Other key successes The Union has been working to reach under represented groups. One of the measures for the year was to increase overseas students attendance at Union events. The target for the year was 33%. This was set against the % demographic of 28% and last year's measure of 35%. The Union achieved a participation rate of 52%. This was very high and it is hoped that this level of engagement in Union organised events will continue.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) ACHIEVEMENTS AND PERFORMANCE (continued) Assessing Impacts: Help Us Help You Student Survey The Union undertakes an annual student survey known as "Help Us Help You". These results help to shape the targets and measures for the Union. The survey takes places in Term 2 and the questions are reviewed annually to ensure that the data collected continues to be relevant and helps to shape Union strategy. The Union will continue to promote its successes to members - particularly with regard to advice and welfare support, student representation and development.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FUTURE PLANS: THE UNION'S STRATEGY for 2014 - 2015 The Board of Trustees have rolled-on the 2011 - 2014 strategic plan for another year in order to bring the planning cycle in line with the University. The new strategic plan will be developed in Term 2. The 2011 - 2014 strategic plan centres around seven key values (previously outlined in the Aims, Objectives and Activities section). These values help the Union to create a better experience for students at Warwick. The key action points can be grouped as follows: From the Membership - The membership want greater exploitation of technology for communication, including work on the Union website to ensure it is up-to-date and attractive. - The importance of the Union operating ethically and with environmental impact in mind. - The importance of transparency around Union processes and structures. - There are frustrations around the bureaucracy with managing funds for societies. The procedures and regulations around these funds needs better explanation. Future Challenges - Pensions are in crisis in the UK and this will impact on the perception by staff of benefits. - There will be further legislative changes for pensions that require compliance. - The Union tries to do too much for its resources and needs to ensure that it doesn't over promise and not deliver. - To build back the Union's reserves position after the financial impact of the redevelopment of the Union's facilities. - To maintain the Union's reputation with key stakeholders such as the University. Other Potential Impacts - The Government may change licensing laws to decrease alcohol sales. - There may be further increases to VAT. - Sponsorship opportunities may decrease in certain industry sectors. - Pay settlements may increase above the Union's financial plan estimates. - The Union's membership research is insufficient.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) Headline Key Performance Indicators (KPIs) Seven areas were identified for monitoring with KPIs during the 2014-15 financial year all of which are intended to provide a challenge for the organisation: Membership Participation: - memberships of Sports Clubs (target: 10,000) and Societies Federation (target: 8,600) - % of Postgraduate students satisfied with the SU (target: at least 55% satisfied) Representation: - voter turnout in Autumn Elections (target: 2,070) - voter turnout in Officer Elections (target: 7,000) - % of Postgraduate students voting in elections (target: 20% Autumn and 15% Officers) Communications: - number of visits to the Union's website (target: 365,000) Staff: - staff feel appreciated by managers and colleagues (Staff Survey - target 4.30) Finance: - Achieve or exceed budget surplus of ÂŁ6k for 2014-15 Impact: - % of students satisfied with the Union (National Student Survey - target: 80%) Environmental Impact: - Reduce the volume of waste (target: 97.5 tonnes - a 12% reduction) These will be challenging targets which will continue to stretch the Union.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW Income and Expenditure The overall results for the year were:

2014 £

2013 £

Incoming resources

7,479,189

7,059,300

419,889

Resources expended

7,181,767

6,863,136

318,631

297,422

196,164

101,258

Net incoming resources (surplus) Surplus as a % of Incoming resources

4.0%

movement

2.8%

The surplus was £246,963 ahead of the budget for the year of £50,459. This was another good financial year for the Union, enabling the reserves to reach the target level set by the Board of Trustees of at least £750,000. The annual recurrent grant contribution from the University increased by £146,559 (7%) to £2,105,393 (2013: £1,958,834). This grant included an additional amount from a successful bid to the University for support with the additional costs of pension auto-enrolment and student freshers helpers. The Food and Beverage area had a more challenging year. The decline in drink sales has continued and income has decreased by £20,540 to £2,544,193 (2013: £2,564,733). Despite this decrease in turnover the food and bar outlets continue to make a significant surplus contribution to the Union before recharging overheads. The trend by students to spend more on food that drink was first experienced last year. Margins for food are less than drink and there are increased staffing costs to produce food. This has impacted on returns however the variety of offerings across the Union's catering and bar outlets helps to spread this risk. This trend is reflected nationally. The Union's Venue, The Copper Rooms also had a difficult trading year. As previously reported, the market for live music is now very different and students social habits have changed - as can be seen by the increase in food sales and the decrease in bar sales. This trend is not just happening at Warwick. There is a change nationally in the way that live music venues operate. The Venue experienced a reduction in income last year of £81,318 down to £1,014,849 (2013: £1,096,167). The reduction was primarily due to a reduced programme of events through the year in response to lower student demand. The entertainments programme still provides lively programmes for key points during the year - such as Freshers, the end of term, end-of-year balls and the summer festival.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW (continued) The resources expended by the Union are in line with overall income. This expenditure includes the Union's deficit repair contribution to the Students' Union Superannuation Scheme - which closed to future accrual on 30 September 2011. This contribution increased by £4,422 (3%) to £157,053 (2013: £152,631).

Net Assets and Cash Flow The year-on-year movements were:

2014 £

2013 £

179,037 16,664

183,268 22,124

(4,231) (5,460)

Current Assets

2,163,163

1,781,517

381,646

Creditors: Amounts falling due within one year

(1,322,666)

(1,241,125)

(81,541)

(7,008)

7,008

1,036,198

738,776

297,422

Fixed assets: Tangible fixed assets Fixed assets: Investments

Provisions for liabilities and charges Net ASSETS

movement

Total Net Assets increased by £297,422 to £1,036,198 (2013: £738,776). The decrease in the value of tangible fixed asset investments was due to the sale of shares during the year back to NUS Services Limited. The increase in current assets was mainly due to an increase in cash available for short term deposits. There was an increase of £408,876 to £1,053,240 (2013: £644,364). The increase in creditors was mostly due to an increase in the amounts held by the Union as custodian funds on behalf of student sports clubs and societies. This increased by £59,610 to £526,775 (2013: £467,165). The provision held on the balance sheet for redundancy costs following a review of staffing levels was released in the year. These results reflect a much healthier balance sheet position for the Union at 31 July 2014.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW (continued) Reserves Free unrestricted general reserves at 31 July 2014 increased by £290,969 to £760,415 (2013: £469,446). In 2011 the Board of Trustees approved that £180,000 be set aside in a designated reserve for future building refurbishment. It was agreed to increase this to £250,000 at 31 July 2013.

Students' Union Services Warwick Limited This is the subsidiary company for non-primary purpose trading. Turnover for the company increased by £317,727 on the previous year at £559,579 (2013: £241,852). This increase was due to the transfer and increase in marketing and advertising activity, the opening of a new food outlet and some additional income from consultancy work. The outlet - which was based in the University's Science Park - was not successful and closed in the year. Students' Union Services Warwick Limited made a donation under gift aid of £236,707 (2013: £111,627) to Warwick Students' Union. This was a increase of £125,080 on the previous year. It is anticipated that going forward Students' Union Services Warwick Limited will continue with modest growth in delivered catering services and marketing activities. There is caution around revenue generated during vacation and conference periods since activity is dependent on the bookings for campus facilities made through the University.

Membership Solutions Limited The 2013-14 financial year saw Membership Solutions Limited (MSL) making a transfer under gift aid to Warwick Students' Union of £192,660 (2013: £132,303) an increase of £60,357. Turnover for the company increased by £169,041 to £688,360 (2013: £519,319). MSL continues to grow and provide IT membership solutions to Students' Unions and Universities across the country.

Custodian Funds Warwick Students' Union acts as a custodian for funds raised by the many sports clubs, student societies and RAG (raising and giving) affiliated to the Union. These funds are held in a separate bank account and the year end balances for each sports club and society are within the Union's creditor balance (see Note 11). The balance held for sports clubs and student societies at 31 July 2014 was £526,775 (2013: £467,165). This includes £2,761 held at the end of the year for distribution to charities (2013: £793).

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) FINANCIAL REVIEW (continued) Custodian Funds (continued) The income and expenditure for the student sports clubs and societies is not reported within the Union's Statement of Financial Activities. During the financial year the sports clubs and societies received £1,928,152 of income (2012: £1,801,325). Included in this income were grants from the Union of £162,976 (2013: £174,490) for Warwick Sport and £40,347 (2013: £47,698) from the Societies Federation for student societies. These grant awards were spent in the year and appear in the Union's Statement of Financial Activities as a cost in the "Student Activities, Societies and Sports Clubs" line. Future Funding Every year the Union produces a Five Year Plan. This process enables the Union to review the current and future financial performance of its activities. The plan (including the budget for the 2014-15 financial year) was approved by the Board of Trustees in May 2014. The budget for 2014-15 forecasts a surplus for the Union of £6,821 representing 0.1% of income (2013: £50,459 - 0.7%) and includes an approved block grant from the University of Warwick of £2,325,082 (2013: £2,105,393). The current Five Year Plan includes an annual block grant from the University of Warwick across the planning period of at least the level of the 2014-15 approved grant. Although the Union has no definitive guarantee that funding will continue from the University at these levels, the Union will continue its dialogue with the University about the future and monitor the impacts of the changes in Higher Education Funding. The Capital Commitments note (Note 7) reports authorised but not yet contracted expenditure of £21,575 (2013: £nil) and contracted expenditure of £9,281 (2013: £20,232). This is directly attributable to furniture and refurbishment work required to converted the Mighty Duck bar into a postgraduate social and study space. The majority of costs will be required to remodel the entrance. The Union potentially faces significant financial risk as a result of the current pension deficit reported from the Students' Union Superannuation Scheme (SUSS). This is a defined benefit scheme whose membership consists of students' unions and related bodies throughout the country (see Note 19). This scheme closed to future accrual on 30 September 2011. The Union's contributions towards the pension deficit will have doubled in recent years from the level paid in 2009-10. The amount contributed at 31 July 2014 was £157,053 (2013: £152,631). Provision for increases in pension deficit contribution costs have been included in the current Five Year Plan based on the forecast on-going increase in contribution rate of 3.2% per annum. The Union also made a voluntary prepayment to the pension fund in October 2014 (see Note 22). It is not clear at present what may happen to wage inflation and increases. This may become clearer following the general election in 2015.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

ANNUAL REPORT OF THE BOARD OF TRUSTEES (continued) AUDITOR'S Baker Tilly UK Audit LLP has indicated its willingness to continue in office.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS The Board of Trustees members who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each member of the Board of Trustees members have confirmed that they have taken all the steps that they ought to have taken as Board of Trustees members in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. The Trustees Report (incorporating the Strategic Report) is approved on behalf of the Board of Trustees:

C Turhan President Date:

WARWICK STUDENTS' UNION For the year ended 31 July 2014

R Ankcorn Democracy & Development Officer

STATEMENT OF BOARD OF TRUSTEES RESPONSIBILITIES The trustees (who are also directors of Warwick Students' Union for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the trustees to prepare financial statements for each financial year with give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those financial statements, the Board of Trustees are required to:a) select suitable accounting policies and then apply them consistently; b) observe the methods and principles in the Charities SORP; c) make judgements and estimates that are reasonable and prudent; d) state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and e) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

INDEPENDENT AUDITORS' REPORT to the Members of Warwick Students' Union We have audited the group and parent charity financial statements of Warwick Students' Union ("the financial statements") for the year ended 31 July 2014 on pages 28 to 50 which comprise the Group Statement of Financial Activities, the Group and Charitable Company Balance Sheets, the Group Cash Flow Statement, 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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR As explained more fully in the Statement of Trustees' Responsibilities set out on page 25, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at: www.frc.org.uk/auditscopeukprivate

OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: - give a true and fair view of the state of the group's and the charitable company's affairs as at 31 July 2014 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the Companies Act 2006.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

INDEPENDENT AUDITORS' REPORT (continued) OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' Report and the incorporated Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - the parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or - the parent charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

PAUL OXTOBY (Senior Statutory Auditor) For and on behalf of: BAKER TILLY UK AUDIT LLP Statutory Auditor Chartered Accountants St Philips Point Temple Row Birmingham B2 5AF Date:

WARWICK STUDENTS' UNION For the year ended 31 July 2014

GROUP STATEMENT OF FINANCIAL ACTIVITIES

Note

2014 TOTAL £

2013 TOTAL £

Unrestricted

Designated

Restricted

Funds

INCOMING RESOURCES Incoming resources from generated funds: Voluntary Income - University Grant

2,158,433

25,643

2,184,076

2,039,482

1,205,636

725,064

32,219

160,774

1,295

1,819

2,544,193

2,564,733

1,014,849

1,096,167

14,101

21,230

4,677

7,677

130,419

347,724

478,143

442,354

7,105,822

373,367

7,479,189

7,059,300

707,569

433,972

2,624,278

2,587,921

1,457,486

1,521,160

661,059

19,189

680,248

654,608

458,853

458,723

859,330

347,725

1,207,055

1,168,010

46,278

38,742

6,814,853

366,914

7,181,767

6,863,136

290,969

6,453

297,422

196,164

14 / 15

469,841

250,000

18,935

738,776

542,581

760,810

250,000

25,388

1,036,198

738,776

Activities for Generating Funds - Commercial income - Marketing and sponsorship Investment Income - Interest Receivable Incoming Resources from Charitable Activities - Food and beverage - Venues, events and entertainments - Administration and support services - Student services and representation - Student activities, societies and sports clubs TOTAL INCOMING RESOURCES RESOURCES EXPENDED Cost of Generating Funds - Commercial activities Charitable Activities for Students - Food and beverage - Venues, events and entertainments - Student membership services - Representation and affiliations - Student activities, societies and sports clubs Governance costs TOTAL RESOURCES EXPENDED

NET INCOMING RESOURCES for the PERIOD Equity minority interests Transfers between Funds Fund Balances Brought Forward

TOTAL FUNDS CARRIED FORWARD

This group statement of financial activities represents a consolidation of the income and costs for Warwick Students' Union, Students' Union Services Warwick Limited and Membership Solutions Limited, all operations are continuing. No separate Statement of Total Recognised Gains and Losses has been presented as all such gains and losses have been included in the group statement of financial activities.

BALANCE SHEETS

Company Registration Number: 07297865 GROUP 2014 Note

FIXED ASSETS Tangible fixed assets Investments

CURRENT ASSETS Stocks Debtors Short-term deposits Cash at bank and in hand

CREDITORS: Amounts falling due within one year

6 8

9 10

NET CURRENT ASSETS PROVISIONS for LIABILITIES and CHARGES

NET ASSETS

2013

UNION 2014

2013

179,037 16,664

183,268 22,124

179,037 17,934

183,268 23,394

195,701

205,392

196,971

206,662

27,982 376,266 1,053,240 705,675

38,251 375,534 644,364 723,368

27,982 595,378 755,423 671,353

38,251 593,223 433,525 648,437

2,163,163

1,781,517

2,050,136

1,713,436

(1,322,666)

(1,241,125)

(1,209,318)

(1,172,723)

840,497

540,392

840,818

540,713

(7,008)

1,036,198

738,776

1,037,789

740,367

25,388

18,935

25,388

18,935

760,415 250,000

469,446 250,000

762,401 250,000

471,432 250,000

395

1,036,198

738,776

1,037,789

740,367

REPRESENTING: CHARITABLE FUNDS Restricted Funds Unrestricted Funds - General - Designated EQUITY MINORITY INTERESTS TOTAL FUNDS

The financial statements on pages 28 to 50 were approved by the Board of Trustees and authorised for issue on 18th February 2015 and are signed on its behalf by:

C Turhan President

R Ankcorn Democracy & Development Officer

The Group Balance Sheet represents a consolidation of the Balance Sheets of Warwick Students' Union, Students' Union Services Warwick Limited and Membership Solutions Limited.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

CONSOLIDATED CASH FLOW STATEMENT

Note

2014 £

2013 £

18(a)

473,906

12,656

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE Interest receivable 18(a)

1,295

1,819

(84,018)

(124,676)

Cash inflow / (outflow) before Use of Liquid Resources and Financing

391,183

(110,201)

Management of Liquid Resources Net (investment) / withdrawals from Short Term Investments

(408,876)

(437,766)

(17,693)

(547,967)

Net cash inflow from operating activities

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Payments to acquire tangible fixed assets

(Decrease) in Cash in the Period

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2014 £

2013 £

(Decrease) in cash in the period

(17,693)

(547,967)

Increase in Short Term Deposits

408,876

437,766

391,183

(110,201)

1,367,732

1,477,933

1,758,915

1,367,732

Movement in net funds in the period

18(b)

Net funds at 1 August

Net Funds at 31 July

WARWICK STUDENTS' UNION For the year ended 31 July 2014

18(b)

PRINCIPAL ACCOUNTING POLICIES PRESENTATION OF ACCOUNTS The Union's Articles of governance require the trustees to prepare accounts for each financial year. These accounts represent a consolidation of the accounts of Warwick Students' Union and its subsidiary undertakings Students' Union Services Warwick Limited and Membership Solutions Limited.

BASIS OF ACCOUNTING The accounts have been prepared under the Charities Act 2011 under the historical cost convention in accordance with the Statement of Recommended Practice: "Accounting and Reporting by Charities" published in March 2005 (SORP 2005) and with applicable UK Accounting and Financial Reporting Standards (UK Generally Accepted Accounting Practice).

GOING CONCERN The current economic conditions create uncertainty particularly over the level of demand for the Union's services and the level of future income provided under the block grant agreement with the University of Warwick. The Union's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Union should be able to operate within the level of its current facilities for at least twelve months from the date of approval of these accounts. The Union has held discussions with the University about future funding and no matters have been drawn to its attention to suggest that future funding may not be forthcoming at budgeted levels. The Trustees have a reasonable expectation that the Union has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

PRINCIPAL ACCOUNTING POLICIES (continued) BASIS OF CONSOLIDATION The financial statements consolidate the financial statements of the charitable company and its subsidiary undertakings. Inter-group profits are eliminated on consolidation. The consolidation is carried out on a line-by-line basis. A separate Statement of Financial Activities (SoFA) for the charity itself is not presented because the charity has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006 and paragraph 397 of the Charities SORP 2005. For the charitable company for the period ended 31 July:-

Incoming resources Resources expended

Net incoming resources

2014 ÂŁ

2013 ÂŁ

6,806,559 6,509,137

6,661,714 6,464,910

297,422

196,804

INCOMING RESOURCES All income and capital resources are recognised in the accounts when the Charity is legally entitled to the income and the amount can be quantified with reasonable certainty. Income from commercial trading activities (net of Value Added Tax) is recognised as earned as the related goods and services are provided. Investment income is recognised on a receivable basis.

GRANTS The Union receives voluntary income from the University of Warwick in the form of a block grant and this is credited to the financial statements in respect of the period to which each grant relates.

RESOURCES EXPENDED Charitable expenditure comprises the direct and indirect costs of delivering public benefit. Overhead costs are apportioned to activities on a basis consistent with the use of the resources. Expenditure includes irrecoverable Value Added Tax. Governance costs comprise those costs associated with the governance of the charity. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources. This applies to the annual grant awards made by the Union to third party student sports clubs and societies.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

PRINCIPAL ACCOUNTING POLICIES (continued) TANGIBLE FIXED ASSETS Fixed assets are stated at cost less accumulated depreciation. IT equipment is capitalised if the item value is greater than ÂŁ400. Expenditure on other individual capital items or groups of related items costing less than ÂŁ1,500 are written-off to the income and expenditure account in the year in which they occurred. Depreciation is provided to write-off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful lives as follows: Building Improvements, Fixtures & Fittings General Equipment, Vehicles IT Equipment

3 - 10 years 3 - 5 years 3 years

The Union occupies premises provided by the University of Warwick Foundation. On 1 August 2010 the assets of the University of Warwick Students' Union (an unincorporated exempt charity) were transferred to Warwick Students' Union (an incorporated exempt charity). The tangible fixed assets taken on are depreciated using their remaining useful life at 1 August 2010.

INVESTMENTS Warwick Students' Union's fixed asset investments in NUS Services Limited are valued at cost, as these assets are not readily saleable and a reliable market value is not readily available. The Board of Trustees value the shareholding in the subsidiary companies at the lower of cost and net realisable value.

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

STOCKS Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in, first out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

PRINCIPAL ACCOUNTING POLICIES (continued) TAXATION From 1 August 2010 Warwick Students' Union became a registered charity and therefore benefits from exemptions from taxation on its income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year. Students' Union Services Warwick Limited The taxable profits of Students' Union Services Warwick Limited are donated under Gift Aid to the Union with the consequence that no taxation is payable by that company. Membership Solutions Limited The profits for the year for Membership Solutions Limited are donated under Gift Aid to the Union with the consequence that no taxation is payable by that company.

FUNDS STRUCTURE Warwick Students' Union administers and accounts for a number of charitable funds, as follows: - Unrestricted Funds representing unspent income which may be used for any activity / purpose at the Board of Trustees discretion. - Designated Funds set aside by the Board of Trustees to be spent on some specific purpose at its own discretion. The Board of Trustees intend to use some of these designated funds to finance future building refurbishment. - Restricted Funds raised and administered by Warwick Students' Union for specific purposes. This includes revenue received from a donor to be used for activities prescribed by the donor. - Custodian Funds entrusted to Warwick Students' Union for safekeeping, but not under its management control such as Sports Club and Society funds (including annual Raising and Giving). Such custodian activities are disclosed in the Annual Report, but as the funds are not managed by Warwick Students' Union they cannot be included in these accounts.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

PRINCIPAL ACCOUNTING POLICIES (continued) DEFINED BENEFIT PENSION SCHEME The group participates in the Students' Union Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension. The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the Trustees on the advice of the actuary. The Scheme operates as a pooled arrangement, with contributions paid at a centrally agreed rate. As a consequence, no share of the underlying assets and liabilities can be directly attributed to the Union. Under the terms of FRS17, in these circumstances contributions are accounted for as if the Scheme were a defined contribution scheme based on actual contributions paid through the year. The scheme closed to future accrual on 30 September 2011. From 1 October 2011 the group participates in the National Union of Students' Pension Scheme, a defined contribution scheme proved by Aegon, a brand name of Scottish Equitable plc.

LIQUID RESOURCES Liquid resources represent those amounts on short term deposits with financial institutions.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS 1: CHARITABLE ACTIVITY AND SUPPORT COSTS Charitable Activity Costs

TOTAL

Other Operating

Support

Staff Costs £

Cost of Sales £

Expenses £

Costs £

2,624,278 1,457,486 680,248 458,853 1,207,058

1,004,325 373,440 297,771 151,939 83,121

874,937 504,599 -

159,146 103,670 52,580 57,395 442,430

585,870 475,777 329,897 249,519 681,507

6,427,923

1,910,596

1,379,536

815,221

2,322,570

6,390,422

1,851,163

1,423,697

722,361

2,393,201

Charitable Activity Cost Reallocation Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation and Affiliations Student Activities, Societies and Sports Clubs

2013 Last Year

Charitable Activity Costs Summary

Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation and Affiliations Student Activities, Societies and Sports Clubs

2014

2013

2,624,278 1,457,486 680,248 458,853 1,207,058

2,587,921 1,521,160 654,608 458,723 1,168,010

6,427,923

6,390,422

Student Representation expenses includes the affiliation fee for the National Union of Students' of £51,448 (2013: £49,361). For further information on affiliations see Note 21: Affiliations on page 50.

Support Costs

Marketing, IT &

Admin & General

TOTAL

Premises

Finance & HR

Communications

Management

29.4%

585,870 475,777 329,897 249,519 681,507

233,408 252,859 145,880 97,253 243,133

228,883 99,413 60,512 28,687 191,218

51,984 51,953 51,953 51,984 103,967

71,595 71,552 71,552 71,595 143,189

100.0%

2,322,570

972,533

608,713

311,841

429,483

2,393,201

995,418

597,749

348,944

451,090

Use

Support Costs Reallocation Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation & Affiliations Student Activities, Societies and Sports Clubs

2013 Last Year

Support Costs Summary Food and Beverage Venues, Events and Entertainments Student Membership Services Student Representation & Affiliations Student Activities, Societies and Sports Clubs

WARWICK STUDENTS' UNION For the year ended 31 July 2014

25.2% 20.5% 14.2% 10.7%

2014

2013

585,870 475,777 329,897 249,519 681,507

605,330 492,931 340,837 261,086 693,017

2,322,570

2,393,201

NOTES TO THE FINANCIAL STATEMENTS (continued) 1: CHARITABLE ACTIVITY AND SUPPORT COSTS (continued) Support costs are allocated on the following basis: -

Premises is allocated on space occupied Finance is allocated on total number of financial transactions HR is allocated based on staff costs Marketing, IT Services and Communications are pro-rata across all activities Administration and General Management are pro-rata across all activities

Finance and HR costs include:

- Pension deficit contribution - Redundancy and severance payments

Administration and General Management costs include:

- Insurance - Irrecoverable Value Added Tax

2: GOVERNANCE COSTS

Auditors' remuneration - Audit fees Auditors' remuneration - Other services Professional fees - IT Contracts & Structures Professional fees - Reward review Other legal and professional fees Board of Trustees - Committee expenses Board of Trustees - Travel reimbursements

WARWICK STUDENTS' UNION For the year ended 31 July 2014

2014 £

2013 £

157,053 -

152,631 7,008

157,053

159,639

2014 £

2013 £

93,142 131,580

96,733 147,903

224,722

244,636

2014 £

2013 £

19,000 5,900 18,462 1,723 879 314

17,500 11,525 6,064 2,983 589 81

46,278

38,742

NOTES TO THE FINANCIAL STATEMENTS (continued) 3: NET INCOMING RESOURCES FOR THE PERIOD Net incoming resources for the period is stated after charging: Auditors' remuneration: - Audit fees - Other fees

Depreciation and amounts written-off Tangible Fixed Assets: - Owned Assets - Loss on disposal of assets

Operating lease rentals: - Plant and machinery - Buildings

4: STAFF COSTS

Wages and salaries National insurance Pension costs

WARWICK STUDENTS' UNION For the year ended 31 July 2014

2014 £

2013 £

19,000 5,900

17,500 11,525

24,900

29,025

78,202 10,047

69,897 894

88,249

70,791

2,655 450,000

1,549 450,000

452,655

451,549

2014 £

2013 £

2,848,118 206,111 109,869

2,653,464 189,271 85,884

3,164,098

2,928,619

NOTES TO THE FINANCIAL STATEMENTS (continued) 4: STAFF COSTS (continued) The average staffing was as follows: Monthly salaried staff / Full time equivalent Weekly paid student staff / Full time equivalent

The following number of employees received remuneration above £60,000 within the year: £75,000

£79,999

2014 Number

2013 Number

109 / 90 600 / 58

106 / 86 448 / 56

709 / 148

554 / 142

2014 Number

2013 Number

The above staff member was accruing retirement benefits under the pension scheme disclosed in note 19.

5: TRUSTEES REMUNERATION AND EXPENSES As well as having a role as a trustee of Warwick Students' Union the seven Student Sabbatical Officers perform a full time role to be the voice of students. They are authorised in the Union's governing document to represent students, undertake campaigning and support work as distinct from their trustee responsibilities. They listen to how students want things to be done, work with Warwick Students' Union staff, the Board of Trustees and partners to make it happen. They represent students to the University of Warwick, external organisations and the wider community. Each of the Student Sabbatical Officers were paid a salary of £18,634 during the year with a total cost to Warwick Students' Union of £154,387 (2013: £151,528) including salary and national insurance. This salary was remunerated by way of their role as a Sabbatical Officer not as an Officer Trustee. The eleven other member Trustees of the Board were reimbursed a total of £314 (2013: £81) for personal travel and subsistence expenses in performing their role as trustee, no trustees received any remuneration as a result of their role as trustee.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 6: TANGIBLE FIXED ASSETS - GROUP AND UNION

Fixtures, Building

Fittings and

TOTAL £

Improvements

IT Equipment

Cost 1 August 2013

367,600

47,398

320,202

Disposal of assets Additions

(55,490) 84,018

(26,970) -

(28,520) 84,018

31 July 2014

396,128

20,428

375,700

Depreciation 1 August 2013

184,332

19,069

165,263

Disposal of assets Charge for the year

(45,443) 78,202

(17,666) 5,511

(27,777) 72,691

31 July 2014

217,091

6,914

210,177

Net Book Value 31 July 2013

183,268

28,329

154,939

31 July 2014

179,037

13,514

165,523

2014 £

2013 £

21,575 9,281

20,232

30,856

20,232

7: CAPITAL COMMITMENTS Future capital expenditure: Authorised but not contracted Contracted

Amounts disclosed for this year are in respect of the refurbishment of the Graduate Bar.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 8: FIXED ASSET INVESTMENTS Group Cost NUS Services Limited: deposit under Students' Unions central billing scheme NUS Services Limited: 'A' Shares: 60 ordinary shares at £1 each NUS Services Limited: 'B' Shares: 270 ordinary shares at £20 each

2014 £

2013 £

16,664 -

16,664 60 5,400

16,664

22,124

The NUS Services Limited A and B shares were sold back to NUS Services Limited during the year at their face value.

Union

NUS Services

Shares in

TOTAL £

Limited

Group

Cost 1 August 2013

23,394

13,792

9,602

NUS Services Limited: 'A' Shares transfer back to NUS NUS Services Limited: 'B' Shares transfer back to NUS

(60) (5,400)

31 July 2014

17,934

8,332

9,602

Warwick Students' Union holds equity share capital in the following unlisted companies:

Students' Union Services Warwick Limited Warwick Students' Union holds 102 ordinary shares of £1 each being 100% of issued ordinary shares. Students' Union Services Warwick Limited is registered and operates in Great Britain. The primary nature of the business being trading services on behalf of the charity. Turnover for the year ended 31 July 2014 was £559,579 (2013: £241,852) and profits of £236,707 (2013: £111,627) were generated which was donated to the Union under gift aid. Net assets at 31 July 2014 were £102 (2013: £102).

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 8: FIXED ASSET INVESTMENTS (continued) Membership Solutions Limited Warwick Students' Union holds 9,500 (2013: 9,500) £1 ordinary shares in Membership Solutions Limited, a company limited by shares registered in Great Britain, being 95% of its issued share capital. The primary nature of the business is the sale of membership and other IT related systems. Turnover for the year ended 31 July 2014 was £688,360 (2013: £519,319) and a profit for the year of £nil (2013: loss £609) was recorded after the payment of a donation made under gift aid to the Union of £192,660 (2013: £132,303). Net assets at 31 July 2014 were £7,908 (2013: £7,908). Equity Minority Interests

5% share of loss in Membership Solutions Limited

2014 £

2013 £

500 (105)

395

Minority interests of 5% in Membership Solutions Limited: - share capital - reserves

The principal activity of Membership Solutions Limited is the sale of membership and other IT related systems. NUS Services Limited During the year the Union sold its shares in NUS Services Limited, a purchasing consortium for member student unions providing purchasing benefits through collective operations. NUS Services Limited also holds a deposit from the Union in respect of payment for monthly supplies of brewed and other products.

9: STOCKS

Goods for resale

GROUP 2014 £ 27,982

WARWICK STUDENTS' UNION For the year ended 31 July 2014 42

2013 £ 38,251

UNION 2014 £ 27,982

2013 £ 38,251

NOTES TO THE FINANCIAL STATEMENTS (continued) 10: DEBTORS

GROUP 2014 £

2013 £

UNION 2014 £

2013 £

Amounts falling due within one year: Trade debtors Amounts due from subsidiary undertakings Other debtors Prepayments and accrued income

11: CREDITORS

285,845

307,697

87,593

130,543

430,677

401,782

1,281

1,466

1,281

1,466

89,140

66,371

75,827

59,432

376,266

375,534

595,378

593,223

GROUP 2014 £

2013 £

UNION 2014 £

2013 £

Amounts falling due within one year: Trade creditors Amounts due to subsidiary undertakings

182,611

178,751

180,391

177,912

4,185

3,299

Amounts held for clubs and societies

526,775

467,165

526,775

467,165

Other taxation and social security

124,448

138,291

124,448

138,291

87,398

51,866

83,937

49,972

401,434

405,052

289,582

336,084

1,322,666

1,241,125

1,209,318

1,172,723

Other creditors Accruals and deferred income

Amounts held for clubs and societies represent balances held on behalf of these bodies, these funds have been generated separately from the activities of the Union and the use of these funds is directed by the individual club or society. Warwick Students' Union acts as a custodian for these funds.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 11: CREDITORS (continued)

2014 £

2013 £

At 1 August 2013

125,418

42,264

Released during the year Additions during the year

(101,917) 80,127

(25,706) 108,860

At 31 July 2014

103,628

125,418

Deferred Income

These amounts are held primarily in respect of receipts-in-advance for Membership Services Limited.

12: PROVISIONS FOR LIABILITIES AND CHARGES - GROUP AND UNION

2014 £

2013 £

At 1 August 2013

7,008

17,195

Settled during the year Provision for restructuring during the year

(7,008) -

(17,195) 7,008

7,008

Provision for Staff Restructuring

At 31 July 2014

13: RESTRICTED FUNDS - GROUP AND UNION 1 August 2013

Income

Expenditure

Transfers

31 July 2014

347,724

(347,724)

5,837 1,515 1,825 2,869 5,899 143 76 771

6,000 1,000 16,643 1,500 500 -

(5,804) (268) (1,030) (9,219) (824) (1,603) (442) -

6,033 1,247 1,795 10,293 5,075 40 134 771

18,935

373,367

(366,914)

25,388

Warwick Sport Projects - Inspire Scheme Projects - Internationalisation Projects - Community Scheme Projects - SU Communities Projects - Social Enterprise Projects - Welfare Projects - Student Development Projects - Media Centre

All of the above restricted reserves represent funds received specifically for the identified activity and are either supported by service level agreements or one-off grant applications. WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 14: DESIGNATED FUNDS - GROUP AND UNION

Building Refurbishment

1 August 2013

Income

Expenditure

Transfers

31 July 2014

250,000

The designated reserve to finance building refurbishment was created to set aside funds for planned future development of facilities and refurbishment of trading areas.

15: ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed Assets £

Net Current Assets / (Liabilities) £

2014 Net Assets / (Liabilities) £

2013 Net Assets / (Liabilities) £

Restricted Funds

25,388

18,935

Designated Funds

250,000

187,369 8,332

565,431 (322)

752,800 8,010

461,831 8,010

195,701

840,497

1,036,198

738,776

General Funds:

Warwick Students' Union Subsidiary Undertakings

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 16: GRANTS TO STUDENT SPORTS CLUBS AND SOCIETIES

Grant awards by Societies Federation:

Grant awards by Warwick Sport:

Media, performance and music Campaigning, charity and welfare Activities and hobbies Academic societies Cultural societies Faith and belief

Sports clubs

2014 £

2013 £

18,228 12,042 4,175 2,908 2,244 750

24,147 8,367 6,107 5,032 3,070 975

40,347

47,698

149,577

174,490

189,924

222,188

These are grant awards made by the Union during the year to student sports clubs and societies. Warwick Students' Union acts as custodian for funds raised by the many sports clubs, student societies and RAG (raising and giving) affiliated to the Union. These funds are not consolidated in to the Union's accounts. These funds are held in a separate bank account and the year end balances for each sports club and student society are within the Union's creditor balance (see Note 11).

17: LEASING COMMITMENTS At 31 July 2014 Warwick Students' Union had annual commitments under non-cancellable operating leases as follows: GROUP AND UNION 2014 2013 £ £ Land and Buildings Operating leases expiring within: over 5 years 450,000 450,000 Plant and Machinery Operating leases expiring within:

WARWICK STUDENTS' UNION For the year ended 31 July 2014

1 year 2 to 5 years

2,655

7,313 -

452,655

457,313

NOTES TO THE FINANCIAL STATEMENTS (continued) 18: CASH FLOW STATEMENT

(a)

GROUP 2014 £

Reconciliation of net incoming resources for the year to net cash inflow from operating activities: Net incoming resources

297,422

196,195

5,460

2,352

Decrease / (Increase) in stocks (Increase) in debtors

10,269 (732)

(3,541) (181,797)

Increase / (Decrease) in creditors (Decrease) in provisions

81,541 (7,008)

(59,338) (10,187)

Depreciation Loss on asset disposal Interest receivable

78,202 10,047 (1,295)

69,897 894 (1,819)

473,906

12,656

Cash Flow £

At 31 July 2014 £

Decrease in investments

Net cash inflow from operating activities

(b)

2013 £

Analysis of changes in net funds

At 1 August 2013 £

Cash at bank and in hand Short term deposits

WARWICK STUDENTS' UNION For the year ended 31 July 2014

723,368 644,364

(17,693) 408,876

705,675 1,053,240

1,367,732

391,183

1,758,915

NOTES TO THE FINANCIAL STATEMENTS (continued) 19: PENSION SCHEME The Union participates in the Students' Union Superannuation Scheme, which is a defined benefit scheme whose membership consists of employees of students' unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 are accrued on a "final salary" basis, with benefits in respect of service from 1 October 2003 to 30 September 2011 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 accrued on a 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 set out recommended a monthly contribution requirement by each Union expressed in monetary terms intended to clear the on-going 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 on-going administrative and operational expenses of running the Scheme. These rates applied with effect from 1 October 2014 and will be formally reviewed following completion of the next valuation due with an effective date of 30 June 2016. Surpluses or deficits which arise at future valuations will also impact on the Union's future contribution commitment. In addition to the above contributions, the Union also pays its share of the Scheme's levy to the Pension Protection Fund. The contribution rate (excluding deficit contributions) for the period to 30 September 2011 applicable to the Union for the majority of members was 8.17% of Earnings for members and 9.38% of Earnings for the Union (17.3%/17.55% in aggregate). The total contributions paid into the Scheme by the Union in respect of eligible employees for the year ended 31 July 2014 amounted to £157,053 (2013: £152,631) but this includes an additional proportion of contributions in respect of future accrual as well as deficit contributions.

WARWICK STUDENTS' UNION For the year ended 31 July 2014

NOTES TO THE FINANCIAL STATEMENTS (continued) 19: PENSION SCHEME (continued) At the year end there were outstanding amounts of £12,781 (2013: £12,781) in other creditors relating to the contributions to the pension scheme. The contributions expected to be paid into the scheme during the year to 31 July 2014 are £694,475. This is in respect of a voluntary prepayment of three years of pension deficit contributions which enable the Union to benefit from a 8.75% (see Note 22).

20: RELATED PARTY TRANSACTIONS a)

Membership Solutions Limited The Union received a donation under gift aid from Membership Solutions Limited of £192,660 (2013: £132,303). The Union purchased £35,299 (2013: £35,640) of IT services from Membership Solutions Limited and provided £44,933 (2013: £31,746) of services. At the year end, the Union was owed £84,123 (2013: £150,166) from Membership Solutions Limited. 2014 2013 £ £ Salary support, administrative and expenses Premises and equipment rental Interest charged on current account

28,542 15,696 695

16,824 14,004 918

44,933

31,746

Students' Union Services Warwick Limited The Union received a donation under gift aid from Students' Union Services Warwick Limited of £236,707 (2013: £111,627). The Union paid £6,757 (2013: £109) in current account interest and purchases with Students' Union Services Warwick Limited and provided £58,815 (2013: £52,395) of services to Students' Union Services Warwick Limited. At the year end the Union was owed £342,369 (2013: £248,317) from Students' Union Services Warwick Limited. 2014 2013 £ £ Salary support, administrative and expenses Premises and equipment rental Interest charged on current account

WARWICK STUDENTS' UNION For the year ended 31 July 2014

12,114 46,492 209

7,304 44,627 464

58,815

52,395

NOTES TO THE FINANCIAL STATEMENTS (continued) 21: AFFILIATIONS Warwick Students' Union is affiliated to the following organisations. Membership entitles the Union to have a say in how organisations are run or what focus they may have. This may be in the form of a vote or a voice on working parties over and above other membership benefits such as access to expert advice or information resources. 2014 £

2013 £

National Union of Students (NUS) NUS Services Limited (NUSSL)

51,448 555

49,361 400

British Universities and Colleges Sport (BUCS) UK Council for International Student Affairs (UKCISA) National Council for Voluntary Organisations (NCVO) Child Poverty Action Group (CPAG) Coventry and Warwickshire Chamber of Commerce

13,670 360 66 195

13,479 353 65 76

66,294

63,734

Confirmation of these affiliations is undertaken by vote at an All Student Meeting.

22: POST BALANCE SHEET EVENT In October 2014 the Union made a voluntary prepayment to the Students' Union Superannuation Scheme in respect of three years deficit repair contributions:

£ Contributions payable in 2014 - 2015

220,380

Contributions payable in 2015 - 2016

231,395

Contributions payable in 2016 - 2017

242,700

694,475 By making this advance payment the Union was able to take advantage of a discount of 8.75%.

WARWICK STUDENTS' UNION For the year ended 31 July 2014