trustees’ report · 2016-11-21 · solent students’ union financial statements for the year...

Trustees’ Report and Financial Statements for the year ended 31 July 2016

Registered Charity Number 1153350 Registered Company Number 8619653

SOLENT STUDENTS’ UNION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2016 INDEX

Page Reference and administrative details 1 Trustees’ report 2 Independent auditors’ report 14 Statement of financial activities 16 Balance sheet 17 Statement of cash flows 18 Accounting policies 19 Notes to the financial statements 21

SOLENT STUDENTS’ UNION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2016 REFERENCE AND ADMINISTRATIVE DETAILS

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Trustees (and Directors) Full-time (Sabbatical) Officer Trustees President Naomi Oiku (resigned 3rd July 2016) President Megan Maddex (from 4th July 2016 formerly a student trustee) VP Welfare & Community Samuel Spencer (resigned 3rd July 2016) VP Welfare & Community Hanna Head (appointed 4th July 2016) VP Education Charlotte Winfield (resigned 3rd July 2016) VP Education Marko Qiaochu Xie (appointed 4th July 2016) VP Employability & Engagement Jasmine Barton (resigned 3rd July 2016) VP Employability & Engagement Lewis Cleminson (appointed 4th July 2016) Student Trustees Non-Portfolio Megan Maddex (to 3rd July 2016 now President) Non-Portfolio Ashleigh Harris (resigned 13th April 2016) Non-Portfolio Gergana Tacheva (resigned 3rd July 2016) External Trustees Non-Portfolio Andrew Gameson (appointed 3rd February 2016) Non-Portfolio Melissa Lewis (resigned 5th February 2016) Non-Portfolio Samuel Perry Non-Portfolio Michael Platten Non-Portfolio Bonnie Amato Southcott (appointed 23rd May 2016) Company Secretary Lorna Reavley Chief Executive Lorna Reavley Finance Manager Judith Strike Registered Office Solent Students’ Union East Park Terrace Southampton Hampshire SO14 0YN Registered Company Number 08619653 Registered Charity Number 1153350 Auditors Solicitors Blue Spire Limited Paris Smith LLP Bond Pearce Cawley Priory 1 London Road 22 Kings Park Road South Pallant Southampton Southampton Chichester Hampshire Hampshire West Sussex SO15 2AE SO15 2UF PO19 1SY Bankers Barclays Bank Plc Triodos Bank Southampton Bargate Branch Deanery Road 106 Above Bar Street Bristol Southampton BS1 5AS SO14 7DT

SOLENT STUDENTS’ UNION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2016 TRUSTEES’ REPORT

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The Trustees, who are directors of the company for the purposes of company law, present their report, for the purposes of Charities Act 2011 and Companies Act 2006, and the audited financial statements of the charity for the year ended 31 July 2016. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the report and financial statements of the charity. STRUCTURE GOVERNANCE AND MANAGEMENT Solent Students’ Union is an incorporated charity established under the Education Act 1994 and registered with the

Charity Commission (1153350) since 13th September 2013. On 13th September 2013 the assets of the unincorporated

charity Solent Students’ Union registered with the Charity Commission (No. 1142382) since 14th June 2011 were

transferred to the incorporated charity.

Solent Students’ Union is a students’ union as defined in the Education Act 1994 linked to Southampton Solent

University. As a student led, independent, democratic organisation, the Union represents students to the University

and the wider community and provides a range of opportunities, activities and services to enrich their experience.

Southampton Solent University exercises its duty under the Education Act 1994 to take such steps as are reasonable

practicable to secure that the Students’ Union operates in a fair and democratic manner and is accountable for its

finances.

The Union is a registered charity number 1153350 and also a company limited by guarantee registered in England

number 8619653.

Governance

The Union is constituted by its Memorandum & Articles of Association, which were revised during 2013-2014, and is

controlled by a Board of Trustees, who act as Directors for the purposes of company law and Trustees for the purposes

of charity law. Decisions are made by simple majority vote.

The Union has eleven Trustees made up of the following persons:

i. Four Officer Trustees, elected annually by a cross campus ballot of ordinary members of the Union in

accordance with the Union’s Memorandum & Articles of Association and Bye Laws.

ii. Three Student Trustees, appointed in accordance with the Union’s Memorandum & Articles of Association.

iii. Four External (non-student) Trustees, appointed in accordance with the Union’s Memorandum & Articles of

Association

All Trustees are provided with the Charity Commission’s guidance to Trustees and are given an introduction to the

activities of the Union by the Chief Executive and other senior managers as required. Trustees are given training as

and when required on an individual and collective basis.

The four full time sabbatical posts are remunerated as authorised by the Education Act 1994 and cannot exceed two

years’ duration for each holder.

The Union’s Board of Trustees meets at least quarterly and is responsible for maintaining legal, financial and

reputational stewardship of the Union. The Board of Trustees determines the mission, vision and values and sets

organisational strategy in line with membership requirements. The Board of Trustees approves policy, annual accounts

and annual budgets.

The Board of Trustees delegates some authority through two subcommittees: Finance Committee and Risk and

Control Committee.


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Finance Committee meets at least three times a year and is responsible for overseeing all financial affairs of the Union

including monitoring performance against budget, the preparation of annual accounts and ensuring appropriate levels

of audit, financial control and financial procedures are in place. Membership consists of:

One External Trustee (Chair)

Two Officer Trustees

One Student Trustee

Finance Manager

Chief Executive (in an advisory capacity)

Risk and Control Committee meets at least once a year and has responsibility to ensure that levels of risk are

monitored and appropriate levels of control are maintained across all operational activities including appropriate

frameworks for accountability; assessing risk and systems to review controls are in place. Membership consists of:

One External Trustee (Chair)

One Officer Trustee

One Student Trustee

Chief Executive (in an advisory capacity)

There is delegated authority, through the Chief Executive, for operational decision making and accountability within

the departments of the Union.

Democracy

The political and campaigning policies of the Union are set by Student Council and executed by the Officer Trustees

and other elected student officers. The Board of Trustees maintains oversight of these policies in accordance with

their duty to maintain legal, financial and reputational stewardship.

Student Council membership includes the elected student officers and the president of Sonar Media, the president of

RAG society and the chair of Societies Council. Officer Trustees report to Student Council who are responsible for

scrutinising the performance of the Officer Trustees.

The Officer Committee, consisting of the four elected sabbatical officers and the other elected student officer positions,

exists to implement policy and administer all recommendations from Student Council and referenda. The Officers also

represent the concerns and interests of the members of the Union both within the University and the wider community.

Operational

The Board of Trustees delegates the day to day running of the Union to the Chief Executive who is employed to ensure

effective management of the Union and to lead the Senior Management Team.

The Union employs approximately 17 permanent staff for the sake of continuity in the management of its activities. All

staff are accountable to the Chief Executive for the performance of their duties.

A job evaluation process for all permanent staff roles and an eight grade incremental pay scale was implemented in August 2015. The Senior Management Team are responsible for evaluating all roles which determines the appropriate pay scale grade. The Board of Trustees review the pay scale and set cost of living or incremental increases annually. The Job Evaluation scheme is reviewed by the Board of Trustees at least every three years to ensure it fits the requirements of the organisation.


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The Union’s Senior Management Team meet on a weekly basis and consists of:

Chief Executive

Finance Manager

Business and Commercial Services Manager

Communications Manager

Student Involvement Manager

In 2015 – 2016 they were:

Chief Executive Lorna Reavley

Finance Manager Judith Strike

Business & Commercial Services Manager Andy Brown

Communications Manager James Sordillo

Student Involvement Manager Laura Pratt (Maternity Leave December 2014 – July 2015)

Ben Martin (Maternity Leave Cover December 2014 – July 2015)

The Union’s Leadership Team meets fortnightly and exists to ensure effective operational procedures and

performance in line with strategy and policy set by the Board of Trustees, Student Council and other democratic

procedures. It consists of:

The Officer Trustees

The Senior Management Team

RELATIONSHIP WITH RELATED PARTIES

The relationship between the University and the Union is established in a Memorandum of Understanding. The Union

receives a Block Grant from the University and part-occupies buildings owned by the University. This support is intrinsic

to the relationship between the University and the Union.


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Although the Union continues to generate supplementary funding from various trading activities, it is dependent on the

University’s financial support for which we are very grateful. There is no reason to believe that this or equivalent

support from the University will not continue for the foreseeable future.

Southampton Solent University exercises its duty under the Education Act 1994 to ensure that the Students’ Union

operates in a fair and democratic manner and is accountable for and manages its finances appropriately.

The Union pays an annual affiliation to the National Union of Students (NUS) of £21,749 to ensure that the Union has

an influence on national student matters. In addition, the Union receives specialist training and operational support.

This affiliation is decided annually by members via referendum.

The Union pays a subscription of £2,000 to Warner Goodman to provide Employment Law advice and HR support through their “Peace of Mind” package. RISK MANAGEMENT The Trustees examine the major strategic, business and operational risks faced by the Union. The Union maintains

a risk register which is updated at least annually. Where appropriate systems or procedures have been established

to mitigate the risks faced by the Union. Budgetary and internal risks have been minimised by the implementation of

financial procedures which include authorisation limits. Policies and procedures are also in place to ensure compliance

with health and safety, diversity and other legislation and these are periodically reviewed to confirm they continue to

meet the needs of the Students’ Union and are up to date with any changes to legislation.

OBJECTIVES AND ACTIVITIES The Union remains committed to furthering its charitable objectives which are outlined in the Memorandum & Articles of Association as: The advancement of education of Students at Southampton Solent University for the public benefit by:

promoting the interests and welfare of Students at Southampton Solent University during their course of study;

providing representation, advice and assistance to Students on matters affecting their welfare and interests as Students;

providing social, cultural, sporting and recreational activities and forums for discussions and debate for the personal development of its Students;

being the recognised representative channel between Students and Southampton Solent University and any other external bodies; and

promoting and encouraging contact and cooperation between Students in all matters affecting their interests

as Students without regard to ethnic origin, nationality, gender, sexual orientation, religion, disability or age.

In pursuit of these aims, the Union represents around 11,500 students to the University, the local community and

nationally via the National Union of Students and supports students in campaigning about the issues which affect

them. The Union offers a diverse and inclusive range of activities, opportunities and services to enrich student life.

These include advice, training, societies, volunteering opportunities, the Duke of Edinburgh Award and other services

which promote inclusion, friendship and personal development.

The Trustees confirm that they have had due regard to the guidance on Public Benefit published by the Charity Commission in exercising their powers and duties. On the 1st August 2015 the Unions’ three-year strategic plan was launched, with a new logo, which sets out the following aims:


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Our Vision Every student will have an excellent student experience at Solent University. Our Mission We enrich the student experience through opportunities, support, influence and action. We will:

Represent and support you to have a clear influence in shaping your academic experience.

Empower you to apply influence to ensure social justice, challenge injustice and bring about positive social change.

Remove barriers to Education, opportunities, personal development and social engagement.

Identify opportunities for you to lead, apply learning and collaborate.

Cultivate safe social spaces and fun activities which develop a sense of community, pride and confidence.

Work in partnership across the University and community for your benefit and create positive social impact.

Our Values

Our values help us to create the future and our culture - it’s how we work with each other and our stakeholders.

Inclusive: We want all our members to feel valued and that they belong. We strive to be a welcoming, diverse organisation.

Trust: We believe we must earn your trust. We aim to do this by being open, honest and responsible in everything we do.

Progressive: We will build on our strengths, encourage new ideas and challenge boundaries of thinking.

Passionate: We are motivated and courageous. We persevere when things get tough and challenge injustice. We care deeply about people, our community and what we do. We push ourselves and go the extra mile.

Balance: We want you to have an excellent time at Solent University. We know a balanced life leads to good mental health and greater chances of success. We provide diverse opportunities and events for students to relax, socialise and enjoy every aspect of the student experience. Our Themes Our plan has five themes which we believe will help us realise our Vision and Mission. Three are student focussed which will enrich your student experience; Influence, Money & Relationships. Two are the things which provide the foundation needed to deliver the themes which will have a positive impact on your student experience; Communication and People.

Influence We want you to be proud to be a student of Solent University and to shape the world in which you live. We will represent and support you to have a clear impact on all aspects of your student experience, ensure you set our priorities and campaign on issues which affect you locally, nationally and throughout the world.


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Money You are telling us that you face increasing financial pressures which makes life as a student difficult and negatively impacts on your student experience. We want to address this and reduce these pressures.

Relationships The Relationships you develop throughout your time at University have the greatest impact on your experience and success. Positive relationships with University staff are fundamental in your academic success and opportunities to make friends, relax and have fun are a big part of the student experience. Activities are a great place to connect with other students and are fundamental in developing skills which will lead to success outside of University. We believe the Students’ Union is key in providing this element of student life and developing a community which is safe, welcoming, accepting and offers balance to every student at Solent University.

Communication Communicating effectively with you and others and listening to what you have to say is key to an excellent student experience. We aim to be like air to you, our members; vital and everywhere. We aim to be a Students’ Union which is not defined or constrained by walls and buildings. We will develop a Students’ Union which is everywhere and ensure we connect with you wherever you are.

People We believe that people are our greatest asset and influence on our success whether we employ them or they volunteer. Making sure that everyone understands how they contribute to enriching the student experience ensures that the Students’ Union becomes the heart of an excellent student experience. We aim for a happy, motivated, diverse and high performing team of people. ACHIEVEMENTS AND PERFORMANCE Solent Students' Union entered the 2015 - 2016 academic year with a 9% increase in the NSS satisfaction score (rising from 54% to 63%), refreshed branding and a new three-year strategic plan. The Strategic Plan 2015-2018 set out a clear three-year framework to meet the needs of our members. The teams’ commitment to our mission to enrich the student experience through support, opportunities, influence and action has been central to our success in the first year of the plan. In this year we have: • Successfully negotiated a £200k hardship fund with the University to cover additional course costs; • Expanded the criteria of the hardship fund to include graduation gown hire; • Successfully reduced of the cost of learning a language from £600 to £260 to be implemented in the 2016-2017

Academic year; • Ran a successful “It’s ok not to be ok” campaign to highlight potential issues at key times and provided activities to

de-stress including a very popular puppy room; • Worked with the University support services to introduce peer to peer mentoring around mental health issues; • Worked closely with the University to develop a new student charter; • Increased the provision of and access to specialist software and study space at weekends; • Negotiated invitations for course reps to Board of Governors liaison meetings to strengthen the student voice; • Ensured the sustainability of a free night bus by securing additional funding; • Increased the Advice Service staff resource. Notable outcomes include:

o successfully challenging a social work professional panel recommendation to exclude a student; o defending a student from a debt collection agency and securing the refund of membership and kit fees; o supporting an entire cohort of students’ lodge to complaints around the quality of their course using the

CMA guidance o securing both funding and fluid submissions to support a student through the critical illness of his child.


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Democracy is at the heart of the Union and central to our mission. Creating opportunities for students to influence is a key strategic objective and commitment within our Influence theme which aims to “Empower you to be the power which drives your Students’ Union”. This year we have:

• Reviewed all student officer positions to ensure they are relevant and provide appropriate representation for the diverse student members on Student Council;

• Altered the timing of Student Council following consultation with officers and students to ensure increased accessibility. This has increased the impact with increasing numbers of motions submitted and policy being passed;

• Held a Student Council meeting at our Warsash Maritime Academy (WMA) campus for the first time to ensure cadets are included;

• Held a hustings event and ensured an onsite polling booth on our WMA campus during the main elections and provided a polling booth for the NUS referendum on site;

• Provided free transport from WMA to all Union democratic events to ensure access and participation; • Committed to a referendum around automatic voter registration on enrolment following discussions with the

University. With Southampton Solent University renewing its commitment to social justice and widening participation, the Union ensured that this was reflected in our strategy and made a commitment to empower our members “to apply influence to ensure social justice, challenge injustice and bring about positive social change”. In order to achieve this we have:

• Held a homelessness conference to raise awareness and reduce stigma; • Supported a student led tampon drive on campus to support the homeless; • Encouraged students to register to vote with an ongoing voter registration drive in partnership with

Southampton City Council; • Participated on the panel in an EU Referendum debate, hosted by the University for the local community, to

ensure students understand how the outcome may impact them and encourage participation; • Lobbied MPs and a member of the House of Lords to retain maintenance grants for students; • Supported students to conduct accessibility audits of the campus and our services; • Held a volunteering fayre with numerous charities to highlight the opportunities and benefits of volunteering

to communities and individuals during student volunteering week; • Hosted housing workshops with the University Accommodation Team to highlight tenant rights, provide

support with landlord issues and worked in partnership with the local council and University to raise the standard of student housing in the city;

• Challenged the binary gender options available with the Duke of Edinburgh Award registration process; • Achieved the Green impact bronze award and supported student participation in sustainability projects; • Continued in our commitment to EDI resulting in the Union being named in the National Diversity top 100

list. TARGETS

The Board of Trustees set 24 organisational targets across the five strategic themes outlined in the Strategic Plan

2015-2018 and included an additional set of financial operational targets which are detailed with progress against the

targets.

In summary progress against targets is:

11 Achieved

8 Partially achieved

5 Not achieved


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Influence Progress

1. Increase the number of students supported by

the Advice service by 20% to 222 through

outreach engagement at least 3 times a year and

during the exam period.

Three outreach events were run throughout the year and

in total 212 students were supported – 163 with open

cases and 49 during the outreach events.

During the year, the Advice Service was refocussed to

concentrate on support only for academic issues rather

than housing and finance advice which is now provided

by the University. There were 107 cases for Academic

support case in 2014-2015 and 161 cases in 2015-2016,

which is a 50% increase in the number of Academic

Support cases.

2. Two referendums will be run with quorate

responses by May 2016.

One quorate referenda was run in the year. Officers

made a decision not to run a second referendum on

automatic voter registration at enrolment until the new

academic year.

3. Develop an activist academy and hold at least

one training event by May 2016.

Due to staffing vacancies in the student involvement

department this was not achieved. This target will

continue into the new academic year and a residential

event is planned for November 2016 once course reps,

student officers and society committee members have

been elected.

4. Ensure at least 70% of reps are democratically

elected by November 2015 and agree and

implement a new academic rep system linked to

academic societies by July 2016

As above, staffing vacancies in the Student Voice

Coordinator role have meant this has not been achieved

this year. It will continue as a target for the coming year.

Money Progress

1. Conduct research into what additional financial

support you would like from the University and

work with the University to reduce costs

This was complete and discussed with the University. As

a result, a hardship fund of £200k was established in the

University to support students with additional course

costs which was then extended to cover the cost of

graduation gown hire.

2. Create a partnership with a local debt advice

agency and submit a proposal to hold regular

advice sessions on campus

A partnership with Frontline has been agreed and they

will hold sessions on campus in the 2016 – 2017

Academic year.

3. Create a 3-year plan to establish a student

letting agency on campus

Good progress has been made against this target

although no plan has been produced. We have agreed

to work in partnership with the Southampton University

Students’ Union letting agency who will provide a letting

agency service to our students in the next academic

year. We are working on the next phase of introducing a

specific space in our building for their staff to be on

campus and will continue to develop the plans over the

next academic year.

4. Establish a student car pool system and

investigate a cycle hire scheme for students

This has not been achieved this year due to staff

vacancies and will be taken into the next year.


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Relationships Progress

1. Work with academic staff to hold at least three

new course related events

Two course related events were held – although one

was a regular event every two weeks.

2. Increase the number of free events for students

and work in partnership to develop a summer

celebration in June 2016

The first summer ball was held in June 2016 in

partnership with Original Sin with excellent feedback

from students. A free drinks reception was offered to all

graduating students with support from the University as

part of the celebration and there was a comprehensive

schedule of free events held in the Union bar.

3. Develop and implement a range of society

ambassadors and mentors by April 2016.


vacancies within the Student Involvement Department

and will be taken into the next year.

4. Produce a plan to introduce ethical international

volunteering opportunities for Trustees by July

2016


vacancies within the Student Involvement Department

and will be taken into the next year.

Communication Progress

1. Annual survey will be conducted in January 2016 with at least 1000 responses based on the strategic plan research

The Annual Survey was conducted in January based on

the strategic plan research with 699 responses.

Although falling short of the 1000 target, this was a

significant increase from the original research response

of 174 students.

2. Union ambassadors and pop up union will hold an event in every building at least once a term

Pop up union events were held at least once a term but

not across every building.

3. Hold a Refreshers fayre at guildhall as part of Your Union week in January 2016

This was complete and very successful with additional

income and opportunities for societies to enlist more

members.

4. Produce a student friendly version of the strategic plan

This is in progress with the design team and is

anticipated to be produced in time for the start of the

teaching year.

People Progress

1. Customer service standards will be produced by

all departments based on our 5 values by

February 2016.

This was complete across all departments.

2. Ensure that there is a Mentor or coach for all

sabbatical officers by December 2015 and any

staff who would like one.

All sabbatical officers were coached by the Chief

Executive and staff who requested a mentor were found

one. We did not have the capacity to open this out to all

staff as yet but are investigating the schemes run by the

University and NUS to provide this support to staff.

3. Produce a plan to achieve the IIP accreditation

by 2018 to be presented to Trustees by July

2016.

Complete – we agreed to wait until 2017 to establish

whether this would be financially viable. We are also

looking at the NUS quality mark as an alternative.

4. All staff policies are reviewed and updated and

career staff volunteering policy is developed and

agreed by April 2016

Complete and a new staff handbook was approved and

circulated to staff.


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Financial Progress

1. Ensure the approved 2015 – 2016 budget is met

across the organisation and that the deficit does

not exceed the approved level of £30K at end of

year.

Clear controls on expenditure and staff savings due to

vacancies through the year have seen the Union return

a surplus to budget for the first time in three years.

2. Conduct a robust Audit Tender Process to

appoint auditors for 2016 – 2019.

Complete with a new auditor Blue Spire being

appointed.

3. Conduct a full financial review of the commercial

services with a report with clear

recommendations submitted to the Trustees by

31st December 2015.

Trustees made a decision to continue to monitor the

commercial services throughout the year and as a result

have made a decision to change the commercial offer

with the shop being replaced by a welcome centre and

the café and bar combining.

4. Submit the 2016 – 2017 draft budget to Finance

Committee by 27th April ensuring a balanced

budget with no deficit for approval by the Board

by 6th July 2016.

Complete with a forecast surplus of £156 and additional

provision for anticipated increases to the pensions

deficit liability.

FINANCIAL REVIEW Our total incoming resources for the year were £ 1,151,163.

Our largest source of income continues to be our block grant from the University of £434,641. This was supplemented

with a gift in kind of £206,149 applied as a rental charge to the building we occupy bringing the total income from the

University to £640,790. Income from our charitable trading activities was £406,745 and additional income from the

rental of space and advertising equated to £102,433. Interest on funds held was £1,195.

Our total resources expended were £1,117,772.

Our largest expenditure was on charitable activities at £1,108,891 which includes support and governance costs of

£221,312. The costs of rental and advertising was £8,881.

The free reserves level was reviewed by Trustees during the year and set at £246,865 based on three months of core

expenditure plus creditors and contractual obligations. It was forecast that the reserves level would fall below this safe

level at the end of the financial year at £203,000 and a five-year budget plan was agreed in order to increase reserve

to the level set as detailed below.

Budget surplus Year End Reserves Level

2016 - 2017 0 £203,000

2017 - 2018 £5,000 £208,000

2018 - 2019 £10,000 £218,000

2019 - 2020 £15,000 £233,000

2020 - 2021 £15,000 £248,000

However, careful controls on expenditure and staff cost savings in the year resulted in the Union return a surplus of

£33,391 in the year against the forecast deficit of £29,671. This has returned our reserves level to £292,914 which is

within the safe levels set before the provision for the pension deficit. Our current level of reserves will be reviewed

annually alongside the five-year budget plan.

There are additional restricted reserves held of £21,485, which are explained in more detail in note 12 of these financial

statements.


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PLANS FOR FUTURE PERIODS

The Trustees plan to continue to set annual operational targets based on the commitments outlined in the strategic

plan in line with the themes.

Changes to commercial trading are planned for the next academic year to reflect the downturn in income generated.

The Union plans to reduce the retail offer and will redevelop the shop into a Welcome Centre which will serve primarily

as a first point of contact and information service with a reduced retail offer. A letting agency space will also be

developed in this space initially in partnership with the Union Southampton agency (SUSU Lettings). The café and bar

will be merged into one outlet with a focus on daytime food and drink sales and an increasing variety of themed menu

with normal opening hours between 10am and 7pm.

Partnerships with local bars and clubs will be developed in line with the diverse interests of our students and it is hoped

that this will bring a new income stream and we will continue to develop our events to offer the best value for money

for our members.

The Trustees plan to open a wholly owned trading subsidiary in the next year in order to increase the potential income

from advertising with all profit donated to the charity.

We anticipate that there will be an increased pensions deficit liability in 2017 so have included a £25,000 provision within the 2016 – 2017 budget to minimise the potential impact of this increase on the financial stability of the charity.

STATEMENT OF TRUSTEES RESPONSIBILITIES The Trustees (who are also directors of Solent Students’ Union for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The Trustees are responsible for keeping adequate 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 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.

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2016

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S REPORT TO THE MEMBERS OF SOLENT

the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes. Thefinancial reporting framework that has been applied in their preparation is applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 FinancialReporting Standard applicable in the UK and Republic of Ireland .

members those matters wextent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and

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

Respective responsibilities of Trustees and Auditor

Responsibilities, the Trustees (who are also the directors of thecharitable company for the purposes of company law) are responsible for the preparation of the financial statementsand 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 andInternational Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing

.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to givereasonable assurance that the financial statements are free from material misstatement, whether caused by fraud orerror. This includes an asscircumstances and have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, weread all the financial and non-audited financial statements and to identify any information that is apparently materially incorrect based on, ormaterially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become awareof any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

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 requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

prepared is consistent with the financial statements.

SOLENT STUDENTS’ UNIONFINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2016

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

31 July 16 31 July 15Unrestricted Restricted Total Total

Funds Funds Funds FundsNote £ £ £ £

INCOME AND ENDOWMENTS FROM:

Donations and legacies 1 578,105 62,685 640,790 579,269Charitable activities 2 406,745 - 406,745 359,873Other trading activities 3 102,433 - 102,433 81,287Investments 4 1,195 - 1,195 5,464

Total 1,088,478 62,685 1,151,163 1,025,893

EXPENDITURE ON:

Raising funds 5 8,881 - 8,881 5,206Charitable activities 6 1,056,360 52,531 1,108,891 1,100,032

Total 1,065,241 52,531 1,117,772 1,105,238

Net Income/(expenditure) 23,237 10,154 33,391 (79,345)

Transfers between funds 460 (460) - -

Net movement in funds 23,697 9,694 33,391 (79,345)

RECONCILIATION OF FUNDS

Total funds brought forward 18 66,772 11,791 78,563 157,908

Total funds carried forward 18 90,469 21,485 111,954 78,563

None of the Union’s other activities were acquired or discontinued during the above two financial years.

The Union has no recognised gains or losses other than those dealt with in the statement of financial activities.

Page 16


STATEMENT OF CASH FLOWS

£ £ £ £

Net cash flow from operating activities (see below) 57,735 (75,652)

Cash flow from investing activitiesPayments to acquire tangible fixed assets (460) (17,890)Interest received 1,195 5,464

Net cash flow from investing activities 735 (12,426)

Net increase/(decrease) in cash and cash equivalents 58,470 (88,078)

Cash and cash equivalents at 1 August 2015 241,805 329,883

Cash and cash equivalents at 31 July 2016 300,275 241,805

Cash and cash equivalents consist of:Cash at bank and in hand 300,275 241,805

Cash and cash equivalents at 31 July 2016 300,275 241,805

Reconciliation of net income to net cash flow from operating activities

£ £ £ £

Net income/(expenditure) for the year 33,391 (79,345)

Adjusted for:Interest receivable (1,195) (5,464)Depreciation and impairment of tangible fixed assets 26,928 41,483Decrease/(increase) in stock 7,677 (6,093)Decrease/(increase) in debtors (7,574) (27,719)Increase/(decrease) in creditors less than one year (24,853) 20,050Increase/(decrease) in creditors due in more than one year (7,279) (6,014)Increase/(decrease) in provisions for liabilities 30,640 (12,550)

24,344 3,693

57,735 (75,652)

31 July 16 31 July 15

31 July 16 31 July 15

Page 18


ACCOUNTING POLICIES

Scope and basis of the financial statements

Income recognition

Donation in kind

Expenditure recognition

Support cost allocation

Governance costs

Employee benefitsWhen employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at theundiscounted amount expected to be paid in exchange for that service.The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accountingand Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the FinancialReporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable inthe United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fairvalue.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have beenconsistently applied to all years presented unless otherwise stated.

The charity adopted SORP (FRS 102) in the current year and an explanation of how transition to SORP (FRS 102) has affected the reportedfinancial position and performance is given in note 20.

Income from trading activities includes income generated by the charity’s ancillary trading activities. Income is received in exchange for supplyinggoods and services in order to raise funds and is recognised when entitlement has occurred.

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after anyperformance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditionsattached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditionsare fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Investment income is earned through holding assets for investment purposes such as shares and cash deposits. It includes dividends andinterest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investmentincome is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effectiveinterest method and dividend income is recognised as the charity’s right to receive payment is established.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement willbe required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

The Solent Students’ Union building is owned by Southampton Solent University and is provided at £nil consideration. Therefore a donation andcorresponding cost is recorded in the financial statements for rent in kind assessed as the market rate of the square metres provided.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governancecosts, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include projectmanagement. Where support costs cannot be directly attributed to particular headings they have been allocated to expenditure on charitableactivities on a basis consistent with use of the resources.

Governance costs comprise the costs associated with the governance arrangements of the charity and include audit fees, legal advice (if any) forTrustees, costs associated with constitutional and statutory requirements and any costs associated with the strategic as opposed to the day to daymanagement of the charity’s assets.

Page 19


ACCOUNTING POLICIES

VAT

Taxation

Fixed Assets

Centre for student involvement 20% Straight lineBar & shop 20% Straight lineFurniture and office equipment 20% Straight lineMotor Vehicles 20% Straight line

Stock

Debtors receivable and creditors payable within one year

Fund accounting

Going concern

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costsdirectly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on asystematic basis over its expected useful life as follows:

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trusteeshave considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financialstatements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arisingfrom impairment are recognised in expenditure.

The charity is considered to pass the tests set out in sections 466 to 493 Corporation Tax Act 2010 (CTA 2010), as such no income tax is payableon the charity’s activities.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs ofconversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of thecharity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or raised by the charity for particularpurposes. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each restricted fund are setout in the notes to the financial statements.

Where assets were held by the predecessor charity on incorporation they were recorded as additions at net book value at that date. Those assetscontinue to be depreciated using the above rates on their original cost.

The building which the Union occupies is owned by the Southampton Solent University. Under the terms of a licence agreement the SouthamptonSolent University is obliged to give the Union twelve months notice of termination of this agreement. However, the estimated useful life for thebuilding improvements and fittings is in excess of this notice period due to the fact that the licence requires the Southampton Solent University tocontribute towards the provision of equivalent facilities at another location. It is the Union’s opinion that such compensation is likely to exceed thenet book amount of building improvements and fittings shown in the financial statements and therefore the adoption of a longer estimated usefullife than the notice year is justifiable.

The charity is registered for VAT and operates on a partial exemption basis. Therefore where relevant income and costs are recorded in thefinancial statements net of VAT.

Page 20


NOTES TO THE FINANCIAL STATEMENTS

1. Donations and legacies31 July 16

Unrestricted Restricted TotalFunds Funds Funds

£ £ £

Block grant and other grants from Solent University 371,956 62,685 434,641Donations in kind 206,149 - 206,149

578,105 62,685 640,790

31 July 15Unrestricted Restricted Total

Funds Funds Funds£ £ £

Block grant and other grants from Solent University 345,706 69,830 415,536Donations in kind 163,733 - 163,733

509,439 69,830 579,269

2. Income from charitable activities31 July 16


£ £ £

Bar sales 57,663 - 57,663Catering sales 82,428 - 82,428Shop sales 74,674 - 74,674NUS Extra income 12,850 - 12,850Events income 179,130 - 179,130

406,745 - 406,745



Bar sales 73,741 - 73,741Catering sales 94,011 - 94,011Shop sales 95,711 - 95,711NUS Extra income 11,601 - 11,601Events income 84,809 - 84,809

359,873 - 359,873

Page 21



3. Income from trading activities31 July 16


£ £ £

Rental and advertising income 102,433 - 102,433102,433 - 102,433



Rental and advertising income 81,287 - 81,28781,287 - 81,287

4. Income from investments31 July 16


£ £ £

Bank interest receivable 1,195 - 1,1951,195 - 1,195



Bank interest receivable 5,464 - 5,4645,464 - 5,464

5. Raising funds31 July 16


£ £ £

Costs of rental and advertising sales 8,881 - 8,8818,881 - 8,881



Costs of rental and advertising sales 5,206 - 5,2065,206 - 5,206

Page 22



6. Expenditure on charitable activities31 July 16


£ £ £

Bar costs 40,979 - 40,979Catering costs 53,949 - 53,949Shop costs 61,056 - 61,056Business and commercial salaries 79,500 - 79,500Event costs 139,964 27,280 167,244NUS Extra costs 79 - 79Sabbatical officer salaries and other costs 87,726 1,368 89,094Communications costs (including salaries) 81,574 - 81,574Student involvement (including salaries) 84,072 10,043 94,115Project costs - 13,840 13,840Donations in kind 206,149 - 206,149Support and governance costs (see note 7) 221,312 - 221,312

1,056,360 52,531 1,108,891



Bar costs 61,272 - 61,272Catering costs 55,749 - 55,749Shop costs 79,764 - 79,764Business and commercial salaries 80,064 - 80,064Event costs 39,149 13,863 53,012NUS Extra costs 1,322 - 1,322Sabbatical officer salaries and other costs 78,640 - 78,640Communications costs (including salaries) 93,703 - 93,703Student involvement (including salaries) 141,349 1,788 143,137Project costs - 27,055 27,055Donations in kind 163,733 - 163,733Support and governance costs (see note 7) 262,581 - 262,581

1,057,326 42,706 1,100,032

7. Support and governance costs31 July 16


£ £ £

Staff wages and other staff costs 105,247 - 105,247Printing, postage and stationery 5,395 - 5,395Other office costs 23,627 - 23,627Affiliation fee 21,749 - 21,749Pension deficit 30,640 - 30,640Bad debts expense - - -Depreciation 26,928 - 26,928Governance costs:

Legal and professional fees 7,163 - 7,163Trustee expenses 563 - 563

221,312 - 221,312

Page 23



7. Support and governance costs (continued)31 July 15


£ £ £

Staff wages and other staff costs 125,031 - 125,031Printing, postage and stationery 10,014 - 10,014Other office costs 19,354 - 19,354Affiliation fee 18,524 - 18,524Pension deficit 32,646 - 32,646Bad debts expense 5,392 - 5,392Depreciation 41,483 - 41,483Governance costs:

Legal and professional fees 9,949 - 9,949Trustee expenses 188 - 188

262,581 - 262,581

8. Net income is stated after charging31 July 16


£ £ £

Auditors’ remuneration - audit services 5,250 - 5,250Depreciation 26,928 - 26,928Finance lease interest 3,190 - 3,190



Auditors’ remuneration - audit services 6,000 - 6,000Depreciation 41,483 - 41,483Finance lease interest 4,182 - 4,182

9. Wages and salary cost31 July 16 31 July 15

Total TotalFunds Funds

£ £

Gross wages 408,721 427,175Employer’s national insurance costs 26,778 27,539Pension costs 17,942 18,957Pension deficit funding 14,290 14,290

467,731 487,961

31 July 16 31 July 15Staff numbers:

Average head count 57 56

There were no employees with employee benefits (excluding employer pension costs) above £60,000 in this or the preceding period.

Page 24



£Naomi Oiku 16,710Charlotte Winfield 15,895Jasmine Barton 16,713Samuel Spencer 16,687Megan Maddex 1,728Marco Qiaochu 1,728Lewis Cleminson 1,728Hannah Head 1,728

72,917

11. Fixed assetsCentre for Shop & bar Furniture

student equipment/ and office Motorinvolvement refurbishment equipment vehicles Total

£ £ £ £ £

CostAt 1 August 2015 63,646 16,458 37,915 16,187 134,206Additions - 460 - - 460Disposals - - - - -At 31 July 2016 63,646 16,918 37,915 16,187 134,666

DepreciationAccumulated at 1 August 2015 40,632 6,281 14,836 6,398 68,147Charge for the year 13,460 3,538 6,731 3,199 26,928On disposals - - - - -At 31 July 2016 54,092 9,819 21,567 9,597 95,075

Net book value at 31 July 2016 9,554 7,099 16,348 6,590 39,591

Net book value at 31 July 2015 23,014 10,177 23,079 9,789 66,059

12. Stock31 July 16 31 July 15


£ £

Bar stock 2,220 2,061Shop stock 15,146 23,508Catering stock 1,144 618

18,510 26,187

10. Related party transactions

During the year under review a total of £10,488 (2015: £6,347) was reimbursed to or paid on behalf of the sabbatical officers and other trustees fortravel, subsistence, clothing and training.

The union’s 8 (2015: 4) sabbatical officers received total employee benefits, including employer pension contributions, totalling £72,917 (2015:£57,348) as employees of the union as follows:

During the year under review 5 (2015: 5) members of the Union’s key management personnel received employee benefits, inclusive of pensionbenefits, totalling £134,967 (2015: £127,119). In addition these members of key management personnel were reimbursed or had expenses paidon their behalf amounting to £4,007 (£6,864) for travel, subsistence and training.

Page 25



13. Debtors31 July 16 31 July 15


£ £

Trade debtors 96,537 92,303Accrued income 37,472 28,379Other debtors 174 15,203Prepayments 18,807 9,531

152,990 145,416

14. Creditors: amounts falling due within one year31 July 16 31 July 15


£ £

Trade creditors 371 18,477Other taxes and social security costs 5,246 3,768Other creditors 16,744 20,384VAT liability 7,964 8,868Hire purchase lease 7,156 6,014Deferred income 72,310 64,611Accruals 33,397 45,919

143,188 168,041

15. Creditors: amounts falling due after more than one year31 July 16 31 July 15


£ £

Hire purchase lease 14,188 21,46714,188 21,467

16. Provisions for liabilities31 July 16 31 July 15


£ £

Pension liability 242,036 211,396242,036 211,396

Page 26



17. Analysis of net assets between funds31 July 16 31 July 15

Unrestricted Restricted Total TotalFunds Funds Funds Funds

£ £ £ £

Fixed assets 39,591 - 39,591 66,059Net current assets 307,102 21,485 328,587 245,367Non-current liabilities (14,188) - (14,188) (21,467)Provisions for liabilities (242,036) - (242,036) (211,396)

90,469 21,485 111,954 78,563

18. Analysis of net movement in fundsTotal funds Total Total Transfers Total funds

brought incoming resources between carriedforward resources expended funds forward

£ £ £ £ £

Restricted fundsDuke of Edinburgh Award 769 2,500 (2,390) - 879Headstart 8,912 - (8) - 8,904Capital project 2,110 - - (460) 1,650Feshers’ marquee - 17,280 (17,280) - -Knight Bus - 20,000 (9,948) - 10,052Other projects - 22,905 (22,905) - -

Total restricted funds 11,791 62,685 (52,531) (460) 21,485

Unrestricted fundsDesignated funds

Capital fund 27,800 - - (27,800) -27,800 - - (27,800) -

General funds 38,972 1,088,478 (1,065,241) 28,260 90,46966,772 1,088,478 (1,065,241) 460 90,469

Total funds 78,563 1,151,163 (1,117,772) - 111,954

Description of fundsDuke of Edinburgh Award

Headstart

Capital project

Feshers’ marquee

Knight Bus

Other projects

Designated capital fund

Funds received from Southampton Solent University in support of Duke of EdinburghAward events.

Funds received from Southampton Solent University in support of Headstart projectevents.

Funds received from Southampton Solent University in support of the development ofthe Centre for Student Involvement.

Funds received from Southampton Solent University to cover the marquee costs of theFreshers’ Fayre.

Funds received from Southampton Solent University in support of providing the KnightBus service for students of the University.

Funds received from Southampton Solent University in support of other projects andevents for students of the University.

The capital fund was created by a grant received from Southampton Solent Universitytowards the development of the Centre for Student Involvement. Accordingly, thebalance of this fund was transferred to a designated fund within the charitiesunrestricted reserves. The designated capital fund is released to general reserves overthe remaining life of the asset.

Page 27



19. Legal status

20. First time adoption of FRS 102 SORP (2015)

The effect on the financial statements of transition from SORP (2005) to SORP FRS 102 (2015) is set out below:31 July 16 31 July 15


£ £

Opening reserves as previously stated 318,538 381,854Transition adjustment - Removal of pension deficit prepayment (28,579) -Transition adjustment - Recognition of pension provision (211,396) (223,946)

Opening reserves following transition adjustments 78,563 157,908

31 July 15Total

Funds£

Net income/(expenditure) as previously stated (63,317)Transition adjustment - Removal of pension deficit contributions 16,618Transition adjustment - Release of discount on provision (32,646)

Net income/(expenditure) following transition adjustments (79,345)

21. Relationship with Southampton Solent University

22. Control

The charity was controlled throughout the year by its Trustees.

The Union receives a substantial part of its income by means of grant funding from Southampton Solent University. The core block grantamounted to £371,956 (2015: £343,649) in the year under review with additional grants of £45,405 (2015: £49,830) being received to fund otherprojects. At the balance sheet date £7,572 (2015: £28,379) was outstanding. The Trustee Board are of the opinion that this financial assistance isnot an influencing factor with regards to the formulation of Union policy nor does it have any effect on the internal management and decisionmaking of the Union.

During the year under review other income and expenses recharged to the University amounted to £7,354 (2015: £30,620) with a balance of£1,350 outstanding at the year end. Purchases of goods and services from the University amounted to £1,933 (2015: £Nil) with a balance of £Niloutstanding at the year end. All transactions took place at commercial values.

The building the Union occupies is owned by Southampton Solent University and provided rent free. This free rent has been recognised as adonation in note 1 and a corresponding expense in note 6.

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is £1.

The charity has adopted the SORP FRS 102 (2015) for the first time in the year ended 31 July 2016 and therefore the date of transition was 1August 2014.

Page 28



23. Pensions

dependent on inflation.

Defined Contribution Pension SchemeThe charity operates a defined contribution pension scheme. The total contributions paid into the scheme by the Union in respect of eligibleemployees for the year under review was £17,942 (2015: £18,876).

Pensions accruing on the CARE basis would revalue at 3.6% per annum.Present and future pensions would increase at rates specified by Scheme rules with appropriate assumptions where these are

The 2013 Valuation recommended a monthly contribution requirement by each Participating Employer expressed in monetary terms intended toclear the ongoing funding deficit over a period of 17 years and will increase by at least 5% each year. These contributions also include anallowance for the cost of the ongoing administrative and operational expenses of running the Scheme. These rates applied with effect from 1October 2014 and will be formally reviewed following completion of the next Valuation due with an effective date of 30 June 2016. Surpluses ordeficits which arise at future valuations will also impact on Solent Students’ Union’s future contribution commitment. In addition to the abovecontributions, Solent Students’ Union also pays its share of the Scheme’s levy to the Pension Protection Fund.

The total contributions paid into the Scheme by Solent Students’ Union in respect of eligible employees for the year ended 31 July 2016 amountedto £nil (2015: £45,197). The amount paid in the comparative year under review includes a payment of three years’ contributions, for the periodOctober 2014 to September 2017, totalling £42,869, which represented an 8.75% saving on contributions payable for the same period.

Solent Students’ Union participates in the Students’ Union Superannuation Scheme, which is a defined benefit scheme whose membershipconsists of employees of students’ unions and related bodies throughout the country. Benefits in respect of service up to 30 September 2003 areaccrued on a “final salary” basis, with benefits in respect of service from 1 October 2003 accruing on a Career Average Revalued Earnings(CARE) basis. With effect from 30 September 2011 the Scheme closed to future accrual.

The most recent Valuation of the Scheme was carried out as at 30 June 2013 and showed that the market value of the Scheme’s assets was£80,910,623 with these assets representing 52% of the value of benefits that had accrued to members after allowing for expected future increasesin 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 investmentsand 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.

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trustees’ report · 2016-11-21 · solent students’ union financial statements for the year...

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