DURHAM STUDENTS’ UNION ( A CHARITY EXEMPT FROM ... · Kevin Carter (Finance and Administration Manager) Sarah Elliott (Membership Services Manager) As of the 12 th May 2010 DSU

DURHAM STUDENTS’ UNION

( A CHARITY EXEMPT FROM REGISTRATION )

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JULY 2011


FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2011

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Index Page

Legal and Administrative Information 1

Trustees’ Report 2 – 15

Auditors’ Report 16 - 17

Statement of financial activities 18

Balance sheet 19

Notes to the financial statements 20 - 28


LEGAL AND ADMINISTRATIVE INFORMATION


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Full-time (Sabbatical) Officers Mike King (President) (Appointed 1.08.11)

Scott Parker (Education & Welfare Officer) (Appointed 1.08.11)

Jennifer Lawson (Societies & Student Development Officer) (Appointed 1.08.11)

Archie Dallas (DUCK Officer) (appointed 1.08.11) Appointed 1.08.11)

Sam Roseveare (Retired 31.07.11)

Jake Wanstall (Retired 31.07.11)

Kristina Hagan (Retired 31.07.11)

Martin Dorset-Pukis (Retired 31.07.11)

Student Trustees Jack Heritz-Smith (Appointed 1.08.11)

Sarah Picken (Appointed 1.08.11)

Oliver Davies (Appointed 1.08.11)

Michael Paton (Appointed 1.08.09 Retired 31.07.11)

Andrew Macfarlane (Retired 31.07.11)

Joseph Flynn (Retired 31.07.11)

Lauren Harrison (Appointed 1.08.10)

selected by the Board of Trustees to hold office from 1st August 2008 to 31st July 2012

Co-opted Trustees Andrew Young (Chair) (Appointed 01.08.08)

Robert George (Appointed 01.08.08)

Ray Hudson (Appointed 26.11.10)

Vacancy

Principal Address Dunelm House,

New Elvet,

Durham

DH1 3AN

Auditors HW, Chartered Accountants

Floor 11 Cale Cross House

156 Pilgrim Street

Newcastle upon Tyne

NE1 6SU

Bankers HSBC

1 Saddler Street

Durham

DH1 3 NR

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TRUSTEES’ REPORT


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Financial Statement

The Board of Trustees present their Annual Report for the year ended 31 July 2011, which includes the legal and

administrative information set out on page 1, together with the audited financial statements for that year.

The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and

Reporting by Charities” issued in March 2005 in preparing the annual report and financial statements of the Charity.

Charitable Status

The Students’ Union falls under the definition of a "students' union" in section 20(1) of the Education Act 1994. The

Students’ Union is an unincorporated association and is currently an exempt charity under the Education Act. It will be

directly regulated by the Charity Commission under the Charities Act 2006 when it registers as a charity under that act.

The Student’s Union will be registering as a charity during 2011-12. In accordance with best practise and in preparation

for the future the Trustees have considered the requirements of the Statement of Recommended Practice, (SORP 2005)

and prepared these financial statements accordingly.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

On 1 July 2011 the trustees incorporated a company Limited by Guarantee, Durham Students’ Union Limited

(No.7689815), and on 1 August 2011 the assets and liabilities of Durham Students’ Union were transferred to the Limited

company under a deed of transfer. Durham Students’ Union is currently a charity exempt from registration with the

Charity Commission. Following the enactment of the Charities Act 2006, Durham Students’ Union is required to register

with the Charity Commission. It is planned to complete this process by 1st January 2012.

Durham Students’ Union is a membership organisation that is governed by a written constitution and via democratic

structures detailed in the constitution. All students of the University of Durham automatically become members of Durham

Students’ Union as soon as they enrol at the University. Students have the right (under the Education Act 1994) to ‘opt-

out’ of Union membership; once their student status at the University of Durham ends, they lose their membership of

Durham Students’ Union. The Union’s constitution is reviewed every five years and any changes must be approved by

the membership, through a General Meeting or Referendum, and by the University of Durham, through its Council. The

Union’s constitution provides for the following democratic structures.

Governance

The Board of Trustees is composed of four sabbatical officers, four student trustees, and four external, co-opted trustees,

(for further information see the section on the Board of Trustees, below). The trustees induction and training is provided

at the beginning of each term of office and is co-ordinated internally by the Chief Executive. The programme includes

internal training courses and attendance on courses run by the National Union of Students.

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TRUSTEES’ REPORT (CONTINUED)


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Board of Trustees

The charity trustees of the Union (“the Trustees”) shall be made up of the following persons:-

• Not more than four Sabbatical Trustees

• Not more than four Student Trustees

• Not more than four Co-opted Trustees

Sabbatical Trustees

Four Sabbatical Trustees shall be elected by secret ballot by the Members of the Union at an election held in accordance

with the Standing Orders and shall remain in office for a term of usually 12 months, as specified in the Standing Orders.

The term of office may be shorter or longer on a transitional basis to coincide with the alteration of the year-start or year-

end. At the same time as commencing the term of office as trustee the Sabbatical Trustee will enter into a contract of

employment with the Student Union for a term to be determined by the Constitution.

One of the four Sabbatical Trustees shall be elected to the post of Union President and one shall be elected to the post of

DUCK Officer. The remaining Sabbatical Trustees shall be elected to such full-time posts as are specified in the Standing

Orders of the Union from time to time.

Sabbatical Trustees may be re-elected for a maximum further term of 12 months by the Members of the Union at an

election to be held in accordance with the Standing Orders; and

-the maximum total term that a Sabbatical Trustee may serve is 24 months;

-each Sabbatical Trustee must be a Member of the Union at the time of his or her election;

-the Sabbatical Trustees shall be deemed to be “major union office holders” for the purposes of section 22 of the

Education Act;

-a Sabbatical Trustee shall become a Member of the Union for a term of 12 months on the commencement of his or her

appointment or re-appointment as Sabbatical Trustee.

The duties and payment of each Sabbatical Trustee shall be as set out in the Standing Orders (as amended from time to

time).

Student Trustees

Four Student Trustees shall be elected by secret ballot by the Members of the Union at an election to be held in

accordance with the Standing Orders and shall remain in office for a term of usually 12 months as specified in the

Standing Orders. The term of office may be shorter or longer on a transitional basis to coincide with the alteration of the

year-start or year-end.

Student Trustees may be re-elected for a further non-renewable terms of usually one year. The maximum total term that a

Student Trustee may serve is 24 months.

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Co-opted Trustees

The Trustees shall co-opt by a simple majority of those present and voting up to four such persons as they consider

suitable to be charity trustees (having regard to their skills and experience) as Co-opted Trustees. Unless their

appointment is terminated in accordance with clause 83, Co-opted Trustees shall remain in office for terms of up to four

years calculated from the date of appointment.

At the end of their term of office Co-opted Trustees shall be eligible for reappointment by a simple majority of those

trustees present and voting for further terms of up to four years, but shall not be eligible for reappointment once they have

served a maximum aggregate term of eight years.

Management

Durham Students’ Union employs a Chief Executive to work closely with the Trustees and Sabbatical Officers and ensure

effective management of the charity as head of a senior management team as follows:-

Patrick Reilly (Chief Executive) (Appointed 10.10.11)

Kevin Carter (Finance and Administration Manager)

Sarah Elliott (Membership Services Manager)

As of the 12th May 2010 DSU employed an interim management team from Northumbria Students’ Union to lead and

support DSU’s senior management team. Their assignment ended on the 21st October 2011.

Martyn Williams (CEO)

Michelle Berry (Director of Commercial Services)

Graham Atkinson (Director of Membership Services & HR)

The Trustees of the Union are responsible for protecting the values of the Union, as set out in the Union’s Values

Statement, and ensuring that the Union is working towards its Vision and delivering its Mission (see Vision and Mission

Statements). The Trustees are responsible for approving the strategy, major plans (including the annual budget and long-

term financial goals) and policies of the Union and for ensuring that these are implemented.

The Trustees delegate much of the day-to-day running of the Union to the Senior Management Team (or to the interim

management team to the period noted above), who oversee the Union’s staff. The Management Structure of the Union is

based around three departments, each with a Head of Department who reports to the Chief Executive.

The Trustees also utilise two committees to oversee and direct specific areas of the Union’s activities. These committees

operate to terms of reference, which were approved by the Board of Trustees; each committee is chaired by one of the

Trustees.

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Finance Committee

The Finance Committee oversees the Union’s financial controls, co-ordinates a programme of internal audit activity,

reviews audit reports, identifies improvement areas and scrutinises proposed new policies, procedures and systems. This

committee also has responsibility for staffing arrangements.

DUCK Committee

The Durham University Charities Kommittee(sic) oversees the Union’s management of charitable fund raising through the

Raise and Give (RAG) programme of events, and is responsible for ensuring that DUCK operates within the appropriate

legislation and Union regulations.

Relationship with Durham University

The Union has worked closely this year with the University on a number of crucial issues, including the revision and

agreement to a new Memorandum of Agreement, the adoption of a new constitution for DSU, the incorporation of DSU as

a Company Limited by Guarantee, the long-term development of Dunelm House and providing clarity on the role of the

College Junior Common Rooms in the Students’ Union’s systems of governance.

The University has also given significant support to the Board of Trustees and the Union as a whole, in solving some of

the problems that have occurred as a result of historical inadequacies within the Union.

Risk Management

The Trustees have identified the major strategic risks facing the Union and have established controls and actions to

manage them. The Union’s Risk Management Report and Plan was approved by the Board of Trustees on 27 March

2009 however it is in need of major review and this work will be undertaken through 2011-2012.

These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity.

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Charitable Objects

1. The Union’s charitable objects are the advancement of education of students at Durham University for the

public benefit by:-

1.1 providing opportunities for the expression of Student opinion and actively representing the interest of Students;

1.2 acting as a channel of communication in dealing with Durham University and other external bodies;

1.3 promoting the interests and welfare of students at Durham University during their course of study, and representation, supporting and advising students;

1.4 facilitating the social, recreational and educational interests of its Membership, through providing services and support for its Members;

1.5 supporting the development of and cooperation between the Common Rooms;

1.6 working with other Students’ Unions and affiliated bodies; and

1.7 raising funds for such purposes as are charitable according to the laws of England and Wales and to make grants and donations of such funds to other exclusively charitable bodies or to apply such funds directly for such charitable purposes.

Objectives and Activities

Durham Students’ Union’s objects, as detailed in its constitution, are to represent its members to the University and the

wider community and to provide a range of services for its members, grouped into two distinct areas, Membership

Services and ‘Operations’. The Union’s aim is to be recognised as one of the best students’ unions in the United

Kingdom.

Vision Statement

Durham Students’ Union will be an innovative Students’ Union, enabling all students to participate fully in the academic

and social life of Durham University. We will be a sustainable organisation which prioritises our members’ needs, and will

be considered an asset to Durham University and to student life.

Mission Statement

Durham Students’ Union exists to promote the interests of all Durham University students.

Cultural Values

The following cultural values are about our staff, officers and volunteers and are an expression of either how we currently

work together, or an aspiration as to how we want to be working together. They are draft only and need to be further

discussed in more detail with staff.

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Principled

People working in the union behave with integrity, speak their minds honestly but with the utmost respect for others.

They are professional in their approach, accountable for their decisions and responsible for their actions.

Achieving

The Union staff and officers concentrate on making students’ lives better and supporting a strengthened students’ union

movement. They take decisions based on the benefits and outcomes to the membership. They are persistent in the

pursuit of these goals, achieve them and celebrate their success.

Open

The Union staff and officers challenge the orthodox and question the norm to find new ways to achieve the aims of

Durham Students’ Union. They are generous to new ideas, creative in their thinking and look to innovate where it

supports the needs of students and student unions. Flexible to change and changing circumstances, they ensure

members’ needs always guide decisions.

Engaged

The Union staff and officers are committed to working with students and student union officers and being involved in the

issues they face, fighting alongside them to overcome any barriers to a fulfilling, enjoyable education. They are positive

in attitude.

Collaborative

The Union staff and officers work as a team within the Union and with registered stakeholders. They understand and

harness the strength of democracy and collectivism in achieving the aims of the Union.

It is the Board’s intention to carry out a fundamental review of its vision, mission and values through 2011-2012 so that

this aligned with its objective of becoming a “world class Students’ Union”.

Themes of the Vision

There are three themes which underpin the Vision:

• strong Democracy and responsible Representation

• effective and exciting Student Development

• Operational Success.

In order to achieve the vision Durham Students’ Union has planned specific activities in the three main areas.

Be relevant and responsive and build strong relationships with our stakeholders through:

• Democratic Governance structures

• Social Responsibility

• Students’ Commitment to Durham Students’ Union

• improving Relationships with JCRs.

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Be sustainable and legitimate, but also innovative, with effective change over time, implying:

• good Relationship with the University

• improving Community Liaison

• innovative Officer and Student Development

• good Member and Customer Relations.

Have competent and motivated staff and volunteers, and invest in the development of, and support for, our staff and

volunteers, implying:

• Staff Commitment to Durham Students’ Union

• Financial Strength

• Successful operational activities

• effective staff Training and Development system

• effective Planning and Strategy processes

• good external benchmarking results.

Review of 2010/2011

This year has been a watershed year for the Union that will bring lasting stability to the organisation. In reviewing our

Constitution and relationship with the University we have redefined the purpose of the Union. DSU has developed a

blueprint for the complete reform of our representative and democratic structures, and we are particularly indebted to the

Common Room Presidents for their help and support. We hope that in future years our partnership with these

organisations will only grow and become ever more fruitful.

The review of the Memorandum of Agreement has re-articulated the relationship between the University and Union as

two independent entities, but has also re-affirmed the University’s commitment to the Union in the long term. The function

and purpose of the Union has further been reflected in an alteration of the University’s Statutes, establishing DSU for the

first time as the principal representative body for the generality of students, and codifying the distinction between the

Common Rooms and the Students’ Union.

Following the Principles for Student Engagement (June 2010), this year has seen a closer working partnership between

the Union and the University to ensure a more effective course representative system. The Education and Welfare Officer

and Education Officer produced a new Course Representative (Rep) Handbook which the University kindly funded. The

response has been very positive in that it provides reps with a more professional resource; something which is key given

the importance of the role they undertake. Using feedback from departments and current reps it is hoped that the Union

and the University will be able to improve it further.

The Union has continued to build its relationship with Middle Common Room Presidents’ Committee, engaging

specifically with the President of Ustinov Graduate Common Room, Matt Hann and the Union’s Postgraduate Officer, Ian

Williamson. The Committee has agreed to become part of the DSU’s formal democratic structures, and, as we build

capacity within the Union, we plan to establish and maintain effective administrative support to ensure that there is good

continuity year on year.

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The inclusion of representation from mature students has broadened the scope and remit of the Committee, ensuring that

the concerns of this integral student demographic are aired in a suitable forum. The reform of the democratic and

representative structures of the Union establishes postgraduates as a full part of our democratic structures with increased

numbers of postgraduate representatives sitting on the chief policy-making body of the Union - a significant step in

achieving parity of representation for this as yet under-represented body of students. This reform is also reflected in

amendments to the Constitution and a review of the place of MCRs in the University’s Statutes next year.

Durham’s relationship with the National Union of Students has been at times turbulent over the last two academic years

with three referenda on the subject of affiliation in the space of 18 months. A motion submitted to a General Meeting

towards the end of the last academic year called for a third vote in Epiphany Term. A solid 21% of the student body voted

on the issue with the majority voting to re-affiliate.

DSU has had the active involvement of over 40 students in running hard-hitting welfare campaigns around the themes of

Mental Health, Sexual Health Awareness, Alcohol Awareness and Stress.

The Advice Centre not only provides one-to-one casework but also drop-in clinics staffed by outside agencies such as the

eating disorder service, mental health support service and the Sexual Health Improvement Team. The DSU advice

Centre assisted a total of 2913 students from June 2010 until May 2011, compared to supporting 1690 students in the

previous year. The main reason for this increase is due to the increase in staffing provision during this academic year

within the Advice Centre.

During 2010 the DSU accreditation framework was reviewed and a new “Code of Standards for Landlords” was launched.

We had a total of 532 properties accredited under the new framework during the 2010-11 academic year. We have

worked directly with the Police and the County Council on issues such waste and recycling, planning, balanced and

sustainable communities and environmental issues such as noise and the day and night time economy of Durham city.

DSU provided house-hunting talks to all 14 Colleges despite the best efforts of the British winter. We also distributed

2000 copies of the ‘livers out’ guide to the Durham campus Colleges.

The Board made a strategic decision in 2010-2011 to transfer the Estate Agency part of the Accommodation service to

the University and this took effect from the 1st of August 2011.

This year saw the ratification of 27 new societies, thus boosting the number contained on the Union’s database to 195

and the total investment in societies for academic year 2010-11 was £15,000. Society Forums were introduced for the

first time this year. Their themes surrounded environmental issues, Experience Durham, and inter-faith dialogue. It is

hoped that these will be held more regularly in future with a wider range of themes, as they provide societies with an

opportunity to network with each other. It is clear that these have the potential to become society working groups,

allowing societies to cooperate with each other in the pursuit of common objectives.

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We have pushed the boundaries for DUCK this year, with new challenges, new expeditions and new technology. Twelve

members of the DUCK Executive, 19 College Reps, 10 international expeditions, 50 rag raids, 779 participants in 29

sponsored events from marathons to bungee jumps has raised money that will benefit over 200 local, national and

international charities.

Review of Key Objectives 2010/2011

The Students’ Union will conduct a fundamental review of all services and activities during the course of 2011-2012. The

objectives of this exercise include the following.

1. To identify options for expansion in membership and other core services and secure the commitment of the

University to fund these.

DSU submitted a three year Development Plan for Membership Services to the University. This was received very

positively and the University has committed additional resources to fund a large part of phase one of that Plan. DSU will

make a case, as part of the University’s budget setting process for 2012/2013, to secure additional funding for phases

two and three.

2. To identify and agree opportunities for collaboration with the University where this will improve the Durham

student experience without compromising the ability of the Union to act independently of the University.

In recent times, functional relationships and collaboration have been improved in respect of HR, Health and Safety and

Estates and Buildings. The most significant collaborative work has been in the review of the Memorandum of

Agreement, adoption of a new Constitution and the incorporation of DSU as a Limited Company. We are pleased to

report that the University paid the not insubstantial legal costs of this work being carried out. Special thanks go to Kate

Deeming and the University’s Governance Department in supporting these projects.

3. To agree the long-term vision and a plan for the substantial redevelopment of Dunelm House and to secure

the support of the University to fund this within an agreed time frame.

The Board has agreed a long-term vision and outline brief for the complete modernisation and refurbishment of Dunelm

House. A high level Programme Board has been established under the chairmanship of the Deputy Vice-Chancellor

Professor Anthony Forster with representation from DSU on that Board including the Chair of Trustees, the President

and DSU Chief Executive. The Programme Board has secured a substantial project fund to appoint architects and

other professionals to translate DSU’s vision for the House into a fully costed and practical detailed design. Whilst there

is no firm timeline on when work will begin, the University have publicly stated that they would wish to see a substantial

refurbishment project completed in time for the 50th anniversary of the building in 2015.

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4. To identify a sustainable structure for the delivery of commercial services by the Students’ Union.

The Board has undertaken a fundamental review of commercial services and agreed a new business model going

forward that significantly reduces business risk. This has resulted in a decision being taken to cease running regular

club nights and to provide instead low cost and one-off events that carry little or no risk. DSU will however continue to

deliver a comprehensive and high quality ‘fresher’ events programme.

5. To significantly improve our communication with our members through increased and higher quality marketing

and promotion of DSU values, aims and activities.

Substantial progress has already been made against this objective over the past year. There is a sharper and more

strategic focus to DSU marketing activity as a result of a complete revamp of the Union’s website, improved e-

communication, the development of a DSU App and other initiatives. The quality of printed media has significantly

improved and this is now designed and distributed in a more targeted fashion. All the Students’ Union’s marketing and

promotional activity is tailored so that it is truly reflective of the organisation’s core values and gives an accurate

representation of the services, activities and opportunities DSU provides for its Members.

6. To improve the general governance of the Students’ Union so that decisions are based on business needs and

reliable management information.

The quality of management information, options’ appraisals, financial reporting and other papers for the Board of

Trustees is beginning to be improved so that decisions are well-founded.

7. To campaign on issues that affect Durham students and improve the quality of the learner experience.

The Sabbatical Officers and other Officers remain focussed on the issues that affect Durham Students’ Union that need

to be taken up with the University. In partnership with the Education Activist Network, the Union helped organise

protests on Palace Green and outside Old Shire Hall in Durham, joining students up and down the country in

opposition to the Government’s Higher Education Policy. In advance of the University’s decision over tuition fees,

four informal question and answer sessions were organised by the Union with the Vice-Chancellor and Pro Vice-

Chancellor (Education) on hand to answer any questions the student body might have.

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8. To increase the level and impact of student representation at Durham University, bringing about change and

improvement in the student experience.

The work-in-progress online course rep tool will now make it easier for students quickly to contact their course

reps. The establishment of a closer working relationship with Newcastle and Northumbria Students’ Unions,

should provide useful insight into their representative systems. The close working relationship between DSU

Sabbaticals and staff with the Academic Support Office and Faculty Deputies in providing Course Rep Training

has been particularly fruitful. As we look forward, the benefit of increased University support for the Union we

anticipate will bring significant improvements in the quality of the representation that we are able to offer students.

Key Objectives 2011/2012

1. With the active involvement of members and other key stakeholders redefine DSU’s vision, mission and values to

achieve the objective of becoming a World Class Student’ Union.

2. Create a Strategic Plan that can achieve the objective of DSU becoming a World Class Students’ Union and a

rolling Business Plan that will ensure incremental steps are taken to achieve that end within an agreed timeframe.

.

3. Further develop DSU’s governance so that the organisation is accountable and transparent to its members.

4. Create a sustainable commercial and building usage strategy that supports the primary objective of significantly

increasing use of Dunelm House by student groups and for student activities.

5. Manage the financial resources of DSU effectively to achieve no worse than break-even in the financial year.

6. Maximise the value of NUS membership through active engagement and develop mutually beneficial

relationships and collaborative activities with other Students’ Unions.

7. Develop a credible evidenced-based case for the University to meet the funding requirements of phases two and

three of the Membership Services Development Plan.

8. Secure a firm financial commitment from the University with realistic timescales for the delivery of DSU’s vision

for a redeveloped Dunelm House so that this can be achieved in time for academic year 2015/2016.

9. Further enhance DSU’s systems of representation to achieve measurable outcomes that positively impact on the

Durham student experience.

10. Wherever it is advantageous to our members and where it is not detrimental to DSU’s ability to act as an

independent organisation, establish new working partnership and collaborative relationships with University

departments and personnel.

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Financial review

Durham Students’ Union gross income from all sources in 2010/11 totalled £1,165,517.

The Union has continued to benefit from the recognition and support of the University with an annual block

grant of £450,000 and additional deficit funding of £123,400.

Costs for membership services activities, including student advice, accommodation services, the safety night bus and

society grants totalled £117,600.

The general net costs of running the building and providing administrative services to the Union were £230,400.

Redundancy and business reorganisation costs totalled £21,548.

We have reviewed Durham Students’ Union reserve requirements and the current level is much lower than

required. The Union is working to increase reserves over the next few years so that there is a level of funding available

in the absence of normal income. The Union relies on the continued support of the University.

The Union is currently affiliated only to the NUS, for which our total subscription costs amounted to £24,841 for the year,

and no donations were made during the year to any external institutions from the Union’s own resources.

Custodian Activities: Clubs’ & Societies’ Funds and Durham University Charities Kommittee (DUCK)

DSU is also custodian of the annual DUCK proceeds from fundraising events organised by students under DSU auspices

for distribution to the intended charities. Funds raised by DUCK amounted to £660,393 and expenditure, including

distributions to charities applying for funding, amounted to £628,089, leaving a balance of £72,500 in hand for next year’s

DUCK events.

DSU also acts as custodian for funds raised by the many student Clubs and Societies it hosts, in addition to the grant-

support funds it disburses to them, as shown in the DSU accounts.

Future Funding

The Board of Trustees confirms that DSU has additional funds to meet all its obligations.

The Block Grant for 2011/2012 has been confirmed at £686,000.

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Public Benefit

The Union’s charitable objectives are the advancement of education of students at Durham University for the public

benefit by providing opportunities for the expression of student opinion and actively representing the interests of students,

acting as a channel of communication in dealing with Durham University and other external bodies.

Promoting the welfare of students at Durham University, facilitating the social, recreational and educational interests of its

membership, through providing services and support for its members, supporting the development of and co-operation

between the JCRs and working with other students’ unions and affiliated bodies.

Also raising funds for such purposes as are charitable according to the laws of England and Wales and to make grant

and donations of such funds to other exclusively charitable bodies or to apply such funds directly for such charitable

purposes.

Statement of the Board of Trustees’ Responsibilities

The Trustees are required to prepare financial statements for each financial year which give a true and fair view of both

the state of affairs of the Students’ Union and of its financial activities for the period. In preparing those financial

statements, the Trustees are required to:

1. select suitable accounting policies and then apply them consistently;

2. make judgements and estimates that are reasonable and prudent;

3. state whether applicable Accounting Standards have been followed subject to any material departures disclosed

and explained in the financial statements; and

4. prepare the financial statements on a going-concern basis unless it is inappropriate to presume that the charity will

continue in business. In assessing going-concern for the purpose of preparing financial statements, the Trustees

have paid particular attention to the period of 12 months from the balance sheet date, the period covered by the

Students’ Union business plan.

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any

time the financial position of the Union. They are also responsible for safeguarding the assets of the Union and hence for

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

Auditors

Haines Watts were reappointed auditors of the Durham Students’ Union during the year and a resolution proposing that

they be re-appointed will be determined by the Trustee Board.

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Statement of disclosure to auditor

• So far as we are aware, there is no relevant audit information of which the Union’s auditors are unaware.

• As the Trustees of the Union we have taken all the steps that we ought to have taken in order to make ourselves

aware of any relevant audit information and to establish that the Union’s auditors are aware of that information.

Chair of the Board of Trustees

Dated: ……………….……………….

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INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF DURHAM STUDENTS’ UNION


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We have audited the financial statements of Durham Students’ Union (the Union) for the year ended 31 July 2011 which

comprise The Statement of Financial Activities, the Balance Sheet and the related notes. These financial statements

have been prepared under the accounting policies set out therein.

This report is made solely to the Durham Students’ Union members, as a body, in accordance with the Constitution of the

Union. Our audit work has been undertaken so that we might state to the Union members those matters we are required

to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept

or assume responsibility to anyone other than the Union and its members as a body, for our audit work, for this report, or

for the opinions we have formed.

Respective responsibilities of Trustees and Auditors

The Trustees responsibilities for preparing the financial statements in accordance with applicable law and the regulations

set out by the Department for Education and Skills and are set out in the Statement of Trustees’ Responsibilities.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and

International Standards on Auditing (UK and Ireland).

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

whether in our opinion the information given in the Trustees Report is consistent with the financial statements.

In addition we report to you if, in our opinion, the Union has not kept proper accounting records, if we have not received

all the information and explanations we require for our audit.

We read the Trustees Report and consider the implications for our report if we become aware of any apparent

misstatements within it.

Basis of audit opinion

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

Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in

the financial statements. It also includes an assessment of the significant estimates and judgments made by the

Trustees and officers of the Union in the preparation of the financial statements, and of whether the accounting policies

are appropriate to the Union’s circumstances, consistently applied and adequately disclosed.

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INDEPENDENT AUDITORS’ REPORT (CONTINUED)

TO THE MEMBERS OF DURHAM STUDENTS’ UNION


_____________________________________________________________________________________________

We planned and performed our audit so as to obtain all information and explanations which we considered necessary in

order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from

material misstatement, whether caused by fraud or other irregularity or error.

Emphasis of matter – going concern

In forming our opinion, we consider the adequacy of the disclosures made in note 1 of the financial statements

concerning the uncertainties over future results of the Union and continuing dependence on the University of Durham for

future funding support. In view of the significance of this uncertainty we consider that it should be drawn to your attention

but our opinion is not qualified in this respect.

HW, Chartered Accountants ……………………………..

Registered Auditors

Floor 11 Cale Cross House

156 Pilgrim Street

Newcastle upon Tyne

NE1 6SU

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STATEMENT OF FINANCIAL ACTIVITIES


_______________________________________________________________________________________________

Unrestricted Restricted Total Total Note Funds Funds 2011 2010 £ £ £ Incoming resources Incoming resources from generated funds Voluntary income Grants receivable 3 573,450 - 573,450 552,534 Charitable activities for students 4 591,895 983,551 1,575,446 1,705,302 Other Income 172 - 172 9,945 _______ _______ _______ _______ Total incoming resources 1,165,517 983,551 2,149,068 2,267,781 _______ _______ _______ _______ Resources expended Charitable activities for students 5 539,333 941,026 1,480,359 1,590,284 Governance costs 7 11,280 - 11,280 11,777 Other resources expended 6 600,001 - 600,001 597,025 _______ _______ _______ _______ Total resources expended 1,150,614 941,026 2,091,640 2,199,086 _______ _______ _______ _______ Net incoming resources 14,903 42,525 57,428 68,695 before exceptional items Exceptional items 8 ( 14,903 ) - ( 14,903 ) ( 24,920 ) _______ _______ _______ _______ Net movement in funds - 42,525 42,525 43,775 Reconciliation of funds Total funds brought forward at 1 August 2010 97,812 151,158 248,970 205,195 _______ _______ _______ _______ Total funds carried forward at 31 July 2011 97,812 193,683 291,495 248,970 _______ _______ _______ _______ All amounts derive from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities.

18


BALANCE SHEET

AS AT 31 JULY 2011

________________________________________________________________________________________________

2011 2010 Note £ £ £ £ Fixed Assets Tangible assets 10 119,678 140,193 Current assets Stocks 12,085 12,829 Debtors 11 41,643 37,880 Cash and bank balances - Union 131,447 101,342 - Societies 112,731 110,962 - DUCK 242,785 59,955 _______ _______ 540,691 322,968 Current liabilities Creditors – amounts falling due within one year 12 ( 368,874 ) ( 214,191 ) _______ _______ Net current assets 171,817 108,777 _______ _______ Total assets less current liabilities 291,495 248,970 _______ _______ Net assets 15 291,495 248,970 _______ _______ Funds Unrestricted general fund 15 97,812 97,812 Restricted funds 14 193,683 151,158 _______ _______ Total funds 291,495 248,970 _______ _______ The trustees acknowledge their responsibilities for:

i. ensuring that the Union keeps proper accounting records which comply with the requirements of the Education Act and the Charities Act

ii. preparing accounts which give a true and fair view of the state of the affairs of the Union as at the end of the financial year and of its surplus for the financial year.

The financial statements were approved by the Board of Trustees and authorised for issue on …………………………2011 and signed on their behalf by: ………………………… Mike King – President

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NOTES TO THE FINANCIAL STATEMENTS


________________________________________________________________________________________________

1. ACCOUNTING POLICIES

The financial statements are prepared in accordance with the charities (Accounts and Reports) Regulations 2000

and the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ issued March 2005 (‘SORP’),

and with applicable accounting standards. These financial statements are drawn up on the historical cost accounting

basis.

Going Concern

During the year ended 31 July 2011 the Union made a deficit on general unrestricted fund of £123,450

(2010:£66,148) before additional deficit funding from the University of Durham, see note 3 for further details of grant

funding. At this date, general unrestricted funds were £97,812 (2010:£97,812). The Union is dependant, in the

absence of other funding, on the continued financial support of the University of Durham. The Trustees believe, on

the basis of discussions held, that further support will continue to be made available from the University.

On this basis the Trustees consider it appropriate to prepare the financial statements on the going concern basis.

The financial statements do not include any adjustments that might be necessary if the University were not to provide

further support.

Fund Accounting

General funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the

Union.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the

charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

All income and expenditure is shown in the Statement of Financial Activities.

Tangible Fixed Assets and Depreciation

Fixed assets are stated at cost less accumulated depreciation. Assets costing more than £500 are capitalised and

carried in the balance sheet at historic cost.

Depreciation is provided at rates calculated to write down the assets to their estimated residual values over the

course of their anticipated working lives.

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________________________________________________________________________________________________

1. ACCOUNTING POLICIES (Continued)

The annual rates of depreciation used on the straight line basis are as follows:-

%

Building 2% straight line

Bar furnishings 10 – 20% straight line

Events equipment 10 – 33.33% straight line

Shop equipment 10 – 33.33% straight line

Facilities, finance, admin,

services & marketing 10 – 33.33% straight line

Stock

Items of bar and vending stock are stated at the lower of historical cost and net realisable value.

Incoming Resources

Block grant received is taken to income on receipt, with the exception of amounts received relating to future periods

which are taken to deferred income and recognised in those accounting periods.

Incoming resources subject to donor imposed conditions that specify the time period in which the expenditure of

resources can take place are recognised over the time period imposed.

The amount of block grant is agreed year on year and the Union has no contractual entitlement to this.

Other revenue grants are taken to income when the conditions of entitlement, certainty and measurement are met.

The Union receive a number of donated resources from Durham University; accommodation on the campus and payroll services, as these services can not be quantified the income and expenditure has not be recognised in the statement of financial activities.

Resources Expended

Resources expended are accounted for on an accruals basis.

The Union is partially exempt for VAT purposes and expenditure is shown gross of the irrecoverable proportion of

VAT where applicable.

Pensions

The pension costs charged in the financial statements represents the contributions payable by the Union during the

year in accordance with FRS17.

An explanation of the pension scheme run by the Union and details on payments in the year can be found on note 14

to the accounts.

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________________________________________________________________________________________________

2. OTHER OPERATING EXPENSES

2011 2010 £ £ Auditor’s remuneration 9,803 10,500 Depreciation 17,152 24,171 Sabbatical officers expenses 1,477 1,277 _______ _______

3. BLOCK GRANT RECEIVABLE 2011 2010 £ £ Block grant 450,000 486,386 Additional deficit funding 123,450 66,148 _______ _______ 573,450 552,534 _______ _______

4. INCOME FROM CHARITABLE ACTIVITIES FOR STUDENTS

Unrestricted Restricted Funds Funds 2011 2010 £ £ £ £ Events and venue rentals 222,771 - 222,771 297,161 Bars 225,943 - 225,943 366,300 Marketing 90,821 - 90,821 74,487 Shops - - 21,950 Welfare services 46,552 - 46,552 35,406 Vending 5,808 - 5,808 9,573 DUCK - 660,393 660,393 471,741 Societies - 323,158 323,158 428,684 _______ _______ _______ _______ 591,895 983,551 1,575,446 1,705,302 _______ _______ _______ _______

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________________________________________________________________________________________________

5. EXPENDITURE FOR CHARITABLE ACTIVITIES FOR STUDENTS

Staff Supplies costs Utilities Other 2011 2010 £ £ £ £ £ £ Events 23,589 46,946 691 120,582 191,808 266,679 Bar 82,494 49,744 416 53,265 185,919 287,045 Marketing 119 18,952 441 28,551 48,063 51,796 Shops - - - - - 1,514 Welfare services (membership services) 7,800 88,318 1,008 12,697 109,823 111,246 Vending 3,420 - - 300 3,720 5,688 DUCK - - - 628,089 628,089 459,662 Societies - - - 312,937 312,937 406,654 _______ _______ _______ _______ _______ _______ 117,422 203,960 2,556 1,156,421 1,480,359 1,590,284 _______ _______ _______ _______ _______ _______

6. OTHER RESOURCES EXPENDED Included in other resources expended are support costs of; 2011 2010 £ £ Salaries and wages 368,584 370,058 Printing and stationery 1,238 1,010 Utilities 77,140 75,574 Maintenance and servicing 12,128 18,354 Cleaning 35,781 46,243 Equipment 5,014 3,716 IT costs 8,097 8,201 Professional services 40,251 22,875 Other finance costs 5,093 6,287 Travel and subsistence 1,984 3,976 Other student services expenditure 30,626 32,441 Irrecoverable VAT 14,065 8,290 _______ _______ 600,001 597,025 _______ _______

7. GOVERNANCE COSTS

2011 2010 £ £ Auditor’s remuneration 9,803 10,500 Sabbatical officers expenses reimbursed 1,477 1,277 _______ _______ 11,280 11,777 _______ _______

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________________________________________________________________________________________________

8. EXCEPTIONAL ITEMS

2011 2010 £ £ Redundancy costs 14,903 24,920 _______ _______ 14,903 24,920 _______ _______

9. WAGES AND SALARIES 2011 2010 £ £ Wages and salaries 527,122 576,354 Social Security costs 38,632 42,761 Pension costs 690 690 _______ _______

566,444 619,805 Other staff costs 6,101 5,771

_______ _______ 572,545 625,576 _______ _______

Wages and salaries excludes redundancy payments of £14,903 which are included in exceptional costs.

There were no employees whose emoluments exceeded £60,000 in the year (2010: Nil).

Expenses of £1,477 were reimbursed to trustees during the year.

The average number of employees during the year was: 2011 2010 No No Full Time 21 24 Casual 38 71 _______ _______

59 95 _______ _______

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________________________________________________________________________________________________

10. TANGIBLE FIXED ASSETS

Leasehold Plant & Computer Furniture & Improvements Machinery Equipment Fittings Total £ £ £ £ £ Costs As at 1 August 2010 131,998 40,799 11,980 39,839 224,616 Additions - - 3,882 - 3,882 Disposals - ( 8,151 ) ( 2,249 ) ( 6,620 ) ( 17,020 ) _______ _______ _______ _______ _______ As at 31 July 2011 131,998 32,648 13,613 33,219 211,478 _______ _______ _______ _______ _______ Depreciation As at 1 August 2010 34,132 26,017 3,268 21,006 84,423 Charge for the year 2,640 3,650 4,162 6,700 17,152 Disposals - ( 2,237 ) ( 1,202 ) ( 6,336 ) ( 9,775 ) _______ _______ _______ _______ _______ As at 31 July 2011 36,772 27,430 6,228 21,370 91,800 _______ _______ _______ _______ _______ Net Book Value As at 31 July 2011 95,226 5,218 7,385 11,849 119,678 _______ _______ _______ _______ _______ As at 31 July 2010 97,866 14,782 8,712 18,833 140,193 _______ _______ _______ _______ _______

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________________________________________________________________________________________________

11. DEBTORS 2011 2010 £ £ Trade debtors 16,177 33,566 Prepayments and accrued income 10,872 1,078 Other debtors 800 3,236 University of Durham 13,794 - _______ _______ 41,643 37,880 _______ _______

12. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR 2011 2010 £ £ Bank overdraft and loans 25,019 17,379 Trade creditors 172,738 81,079 Taxation and social security 2,934 8,800 Accruals and deferred income 56,255 42,108 Other creditors 111,928 17,373 University of Durham - 47,452 _______ _______ 368,874 214,191

_______ _______ 13. PENSION

The University of Durham Students’ Union participates in a defined contribution group personal pension scheme which was opened to the members during the financial year to 31 July 2000. Under the scheme the Union and employees each contribute 3% of earnings.

The income and expenditure account charge for the period under FRS17 represents employer contributions payable. Pension contributions payable for the year ended 31 July 2011 amounted to £690 (2010: £690) and there was 1 employees (2010:1) participating in this scheme during the year.

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________________________________________________________________________________________________

14. RESTRICTED FUNDS

Balance Balance at 1 August 31 July 2010 Income Expenditure 2011 £ £ £ £ Restricted funds: DUCK 40,196 660,393 ( 628,089 ) 72,500 Societies 110,962 323,158 ( 312,937 ) 121,183 _______ _______ _______ _______ 151,158 983,551 ( 941,026 ) 193,683 _______ _______ _______ _______ Societies Balance at Balance at 1 August 31 July 2010 Income Expenditure 2011 £ £ £ £ Choral 8,543 6,779 ( 7,396 ) 7,926 Folk 2,738 4,323 ( 2,511 ) 4,550 Freefall 2,917 12,906 ( 10,814 ) 5,009 Hill Orchestra 1,586 1,469 ( 751 ) 2,304 Hill Walking 2,506 17,291 ( 17,916 ) 1,881 Instep 8,753 14,382 ( 14,775 ) 8,360 International Students 2,367 6,005 ( 6,687 ) 1,685 LGBTA 1,594 6,606 ( 6,838 ) 1,362 Links 2,810 1,655 ( 2,806 ) 1,659 Opera Ensemble 5,171 6,856 ( 5,928 ) 6,099 Orchestal 7,611 32,455 ( 37,717 ) 2,349 Purple Radio 3,298 4,452 ( 2,361 ) 5,389 Other Societies 61,068 207,979 ( 196,437 ) 72,610 _______ _______ _______ _______ 110,962 323,158 ( 312,937 ) 121,183 _______ _______ _______ _______

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________________________________________________________________________________________________

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

The Union’s net assets belong to various funds as follows: Fixed Net Assets Fund Assets / (Liabilities) Balances £ £ £ General funds 119,678 ( 21,866 ) 97,812 Restricted funds - 193,683 193,683 _______ _______ _______ 119,678 171,817 291,495 _______ _______ _______

16. RELATED PARTY TRANSACTIONS

Included in other debtors is an amount of £13,794 due from the University of Durham. The University of Durham

own the building occupied by Durham Students Union, no rent is charged on this lease.

17. CONTROLLING PARTY

Control of the Students’ Union is considered to be in the hands of its membership, and consequently there is no

controlling party.

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Documents

DURHAM STUDENTS’ UNION ( A CHARITY EXEMPT FROM ... · Kevin Carter (Finance and Administration Manager) Sarah Elliott (Membership Services Manager) As of the 12 th May 2010 DSU