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Charity number: 1140647

UNIVERSITY OF CUMBRIA STUDENTS' UNION

FINANCIAL STATEMENTS

31 JULY 2014


CONTENTS

Page

Reference and administrative details of the charity, its trustees and advisers 1

Chairman's statement 2

Trustees' report 3 - 9

Independent auditors' report 10 - 11

Statement of financial activities 12

Balance sheet 13

Notes to the financial statements 14 - 23


REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED 31 JULY 2014

Trustees Matthew Tennant (resigned 30 June 2014)Laura DaviesPatricia LowrieMartin DoddMatthew Hayhurst (resigned 30 June 2014)Adam Leach (resigned 30 June 2014)Amie Godward (resigned 30 June 2014)Jonathan HopkinsChristopher Atkins, Chair (appointed 1 July 2014)John Sharp (appointed 1 July 2014)Aden Fry (appointed 1 July 2014)

Charity registerednumber 1140647

Principal office The Gateway BuildingBowerham RoadLancasterLA1 3JD

Chief executive officer Daryl Ormerod

Independent auditors Armstrong Watson Audit LimitedChartered AccountantsStatutory AuditorsFairview HouseVictoria PlaceCarlisleCumbriaCA1 1HP

Bankers The Co-operative Bank147 Church StreetPrestonPR1 3UD

Page 1


CHAIRMAN'S STATEMENTFOR THE YEAR ENDED 31 JULY 2014

The chairman presents his statement for the period.

2013-14 was the final year of the period covered by the UCSU Strategy to 2010-14. With a reduction inUniversity grant funding, and a corresponding down-sizing of the UCSU team, much of the year involvedestablishing a ‘new normal’ for our working practices whilst we endeavoured to continue our progress andimprove our performance and outcomes for members.

Despite capacity challenges, UCSU has enjoyed successes for members, founded prominently upon a strengthof relationship with, and encouragement of, student representational input and influence from university seniormanagement.

Indeed, the year ended with UCSU’s quality being recognised by the awarding of a Silver level accreditation bythe Students’ Union Evaluation Initiative, a Gold award from the NUS Green Impact environmental sustainabilityawards scheme, and by the awarding of a Silver level accreditation by Investors in People.

Looking to the Future

Trustees have recently approved a new strategy to focus UCSU’s efforts and resources on developments to theyear 2018. Developed from a depth of membership insight we have not previously explored, we are confidentthat our future will be relevant and valuable for the breadth of our geographically and demographically disparatemembership.

Though resourcing our plans will continue to be challenging, with our resources dependent upon the financialsuccess of the University of Cumbria, we remain positive about and committed to delivering more and better forour members, so that they may receive the quality of educational experience they deserve and expect.

Christopher AtkinsChair of Trustees

26 November 2014

Page 2


TRUSTEES' REPORTFOR THE YEAR ENDED 31 JULY 2014

The Trustees present their annual report together with the audited financial statements of University of CumbriaStudents' Union (the charity) for the year ended 31 July 2014. The Trustees confirm that the Annual report andfinancial statements of the charity comply with the current statutory requirements, the requirements of thecharity's governing document and the provisions of the Statement of Recommended Practice (SORP)"Accounting and Reporting by Charities" issued in March 2005.

STRUCTURE, GOVERNANCE AND MANAGEMENT

CONSTITUTION

The University of Cumbria Students' Union is an unincorporated charity established under the Education Act1994 and is registered with the Charity Commission (No. 1140647).

METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

Four Officer Trustees (three as of 1/7/14) are elected annually and may serve a maximum of two years, two(three as of 1/7/14) student Trustees are elected annually and may serve additional years for the duration oftheir membership of UCSU. External Trustees are appointed to 3 year terms with the option to serve 2consecutive terms. Trustees are supported by an annual training programme and with resources and networksprovided by NUS and local voluntary support organisations.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

UCSU operates within the framework provided by the constitution (governing document), which took effect as ofthe 1st July 2010 having been approved by the University of Cumbria Board of Directors, and has beenreviewed in-year with minor amendments taking effect as of the 1st July 2014. The Board of Trustees areresponsible for the management and administration of UCSU and may exercise all of the powers of the charitysubject to relevant laws and regulations. The Trustee Board meets regularly during the year to consider UCSUstrategy, budgets, policies, plans and performance.

The Board delegates certain powers and responsibilities to an Appointments Committee, and to a Resources,Risk and Compliance Committee, as well as the Chief Executive, who in turn have powers to delegate further asthey see fit.

RELATED PARTY RELATIONSHIPS

UCSU is a students' union within the meaning of the Education Act 1994 and is regulated for such purposes bythe University of Cumbria under an agreed code of practice. A relationship agreement was signed in 2011 whichsets out the frame of reference for our productive inter-dependent partnership.

RISK MANAGEMENT

The Trustee Board, with assistance from the Union's advisers, has implemented a suitable risk managementstrategy. The process prioritises risks in terms of impact, likelihood of occurrence and from that formulatesmeans of managing those risks. The strategy encompasses the following aspects:- consideration of the types of risk UCSU faces- the level of risk which is regarded as acceptable- the likelihood of a risk occurring- UCSU's ability to reduce the incidence and impact upon operations

Page 3


TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 JULY 2014

OBJECTIVES AND ACTIVITIES

STRATEGIES FOR ACHIEVING OBJECTIVES

UCSU has an established strategic plan, spanning the period 2010/14, which defines the purpose of theorganisation as working for a better education for the students of the University of Cumbria. Four key themes ofwork have been identified: Academic, Representation, Student Life and Union Community, around which all ofthe activities of UCSU are shaped.

PUBLIC BENEFIT

UCSU's objectives are the advancement of education of students at the University of Cumbria for the publicbenefit by: promoting the interests and welfare of students at the University of Cumbria during their course ofstudy and representing, supporting and advising students; being the recognised representative channel betweenstudents and the University of Cumbria and any other external bodies; and providing social, cultural, sportingand recreational activities and forums for discussion and debate for the personal development of its students.The Trustees have had regard to the public benefit guidance issued by the Charity Commission.

ACHIEVEMENTS AND PERFORMANCE

GOING CONCERN

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequateresources to continue in operational existence for the foreseeable future. For this reason they continue to adoptthe going concern basis in preparing the financial statements.

REVIEW OF ACTIVITIES

Representation

We represent your views to the university, the local community and other people and organisations.

Our representation aims, as stated in our 2010-14 strategic plan, are;

• Develop effective democratic representation systems• Develop effective relations between Union Officers and University staff• Ensure the direction of UCSU is governed by the will of the membership• Ensure UCSU’s policies are legitimate, transparent and accessible to amendment by students• Ensure that the voice of University of Cumbria students is represented locally, regionally and nationally

Academic

We work to ensure you get the best from the University in terms of your academic experience and opportunities.

Our academic aims, as stated in our 2010-14 strategic plan, are;

• Develop an effective and efficient student academic representation system• Ensure fair and reasonable access to learning, teaching and assessment provision• Empower students to drive positive outcomes in their academic provision• Provide relevant, valuable and accessible academic information and advocacy• Recognise academic best practice within the University

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Student Life

We will provide relevant and valuable advice and information services to promote the health and wellbeing ofour members. We will also promote opportunities for students to support their academic learning with shared-interest groups and sporting activities.

Our student life aims, as stated in our 2010-14 strategic plan, are;

• Provide valuable and accessible information and advocacy relevant to the wider student experience• Provide opportunities for members to support their academic learning through shared interest groups,

sporting activities and volunteering opportunities• Support students to achieve positive change to improve their wider student experience• Promote the health and wellbeing of our members• Recognise best practise relevant to the wider student experience

Union Community

We aim to provide one students’ union for all our members, wherever and however they study. We will provideopportunities for students to engage with the local community to promote the value of students within the local,regional and national community. We provide social space and entertainments for the development of thestudent community.

Our union community aims, as stated in our 2010-14 strategic plan, are;

• Provide opportunities for members to engage with the communities in which they study• Promote the value of students in the communities in which they study• Champion the progression and promotion of equality and diversity, including fair access to UCSU and University facilities, services and activities.• Establish and develop mutually beneficial relationships and partnerships which should grow the capacity, effectiveness and/or efficiency of UCSU in achieving its strategic aims

With 2013-14 being the final year of delivery within the strategic framework established in 2010, much of ourwork has been about maintaining the good work of previous years, rather than developing new activities andservices. Some of the highlights include;

UCSU to UThis year saw UCSU develop a new way of engaging with members. Building on our improved methods ofremote, digital engagement, notably through social media and our website, we recognised that face to face,physical contact proved valuable in building and developing relationships with our members. This of course ischallenging, with our members based at multiple sites spread over hundreds of miles, and our staffing capacitylimited and reduced. A planned project to take student officers and staff to students at different locations hasproven successful in enabling students, particularly those at our smaller sites, to understand the value theyderive from their membership of UCSU and to access the support services and opportunities we provide.

Student Academic RepresentationUCSU took ownership for the operation of this largely absent scheme back in 2010, and targeted a robust,valuable system, with at least 1 representative for every 30 students. At the end of the period we can boast aratio of 1 representative for every 19 students and over 500 registered course level representatives, all workingto improve the educational experience of their peers by acting as a conduit to the course staff and raising issueswith UCSU officers.

SUccess AwardsThese awards seek to recognise and reward the contributions of students and staff in the delivery of a highquality student experience. This 3rd such occasion continued to build on the respect and value delivered by thefirst two years, and a record number of nominations and attendees proved our progress in growing awarenessand engagement with this highly valued awards scheme.

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Promotion of Health and WellbeingA student-led ‘U in Mind’ campaign raised student awareness of mental health matters, and spawned a newpartnership with the University which now flourishes with joint events targeting student and staff wellbeingcollectively.

Volunteering SuccessUCSU continued to invest in student volunteers, to promote their employability, support their social integration,to learn new skills, to contribute to the university and local communities and to have fun, as well as to increaseUCSU’s capacity and reach of benefit and influence.

A great number and variety of projects and schemes, led by UCSU and our partner third and public sectororganisations were organised, including activities for disabled children, a festival of the diversity of culture inLancaster, National Trust conservation projects, supporting adults with learning disabilities, animal sanctuarysupport, school homework clubs, IT training for elderly local residents, arts and crafts with a local youth club, ameadow project with Cumbria Wildlife Trust, and many more.

Including student group leaders, project volunteers, elected student representatives and UCSU activity helpers,UCSU boasts in excess of 1,000 student volunteers working mutually and collaboratively for others’ benefit.

138 student volunteer welcome helpers were recruited, trained and supported to help integrate new studentsinto life at the university.

UCSU continued to distribute Eleanor Peel Trust funding to student volunteers seeking to volunteer abroad, andsupported 27 students to do so.

Student Groups ParticipationWe continued to support and promote shared interest student communities, with 46 active Groups across 3campuses and a total number of 713 participants throughout the year.

We saw significant interest in course based and shared interest society groups, and nurtured and facilitatedgrowth in these areas. The results being best exemplified by the English society achieving peer recognitionawards at the end of year awards ceremony.

In sports we enjoyed success in Cheerleading, placing 1st in regional competition and 4th at nationals. UCSUgroups also exceeded expectations in BUCS, finishing top of, and achieving promotion in, 3 leagues (Hockey,Cricket & Football).

Greener MindsThis 2 year, HEFCE and NUS funded project seeks to change student attitudes and behaviours on matters ofenvironmental sustainability. This first year focussed on establishing process and beginning sub-projects thatwill develop impacts and benefits in year two. Examples of this work include the granting of planning permissionfor a UCSU outdoor stage, made from recycled and sustainable materials to promote drama performancesoutside, the development of an online course to educate students about sustainability, and the development ofstudent-led allotments and gardens in Carlisle, Ambleside and Lancaster.

The Greener Minds project team supported UCSU in achieving the Gold standard in the NUS Green Impactaccreditation scheme for excellence in environmental sustainability.

Information and AdvocacyOur student advice case workers remain at capacity as the service becomes established and well-valued byuniversity staff and students alike. From basic enquiries to significant, life-changing interventions, this serviceprovides something of a lifeline to our members and our strategic investment in this now very professionalservice has been proven well worthwhile.

Page 6



NSS Question 23The National Student Survey has included a question asking final year students about their experience andsatisfaction with their students’ union. For 2013-14, UCSU achieved a satisfaction rating of 59%. Though stilllower than we would hope for, this has improved 9% over the last two years, showing UCSU to be improvingfaster than the national average. We are confident that our new strategy to 2018, being founded in studentneeds and opinion, will support our continued progress in this respect.

An Award-Winning YearUCSU were audited by Investors in People, and seeking advancement from the standard accreditation, we weredelighted to be awarded with a Silver level accreditation. We are planning a top-up audit in an attempt toachieve Gold status in 2014-15.

The year ended with a UCSU delegation collecting a Silver award in the Students’ Union Evaluation Initiative atthe Students’ Unions 2014 Annual Dinner and awards ceremony. This HEFCE-backed national schemerecognises excellence across the breadth of Students’ Union activity, and places UCSU amongst the bestperformers nationally. UCSU member, Nathalie Atkinson, collected the NUS/Endsleigh award for Student of theYear to complete a highly successful period for UCSU.

FINANCIAL REVIEW

FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES

The net movement in funds for 2013-14 of £36,604 represents a successful transition from the previous year’sdeficit of (£43,744) and the cost-issues related to our reduced grant income for 13-14. A break-even budget wassupplemented by savings made in year, primarily from staff-cost related savings, a carrying-forward of fundsyet-to-be spent relative to the Greener Minds project of £22,067, a release of accrued provisions for pension-related costs of £9,512, and self-generated income improvements against budget expectations.

The structural changes provide UCSU with the financial stability to enable further swift and effective response toadditional income reductions, though any such reductions would significantly impact our ability to maintainpresent service offerings, and Trustees are continuously considering responses to future funding challenges.

RESERVES POLICY

Trustees have agreed a reserves target of £160,000 of unrestricted funds, as an adequate amount to hold tosafeguard the charity. The balance sheet provides an unrestricted funds position of £193,246, so confirmingachievement of the reserves target following the staffing restructure processes of 2013. The surplus amount willbe considered by Trustees in support of the new strategic plan to 2018.

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PLANS FOR THE FUTURE

FUTURE DEVELOPMENTS

Plans for the Future: A New Strategy for UCSUAs we approached the end of the strategic period 2010-14, much attention and resource was redistributed tothinking about and designing the next phase of UCSU’s strategic development.

We undertook the largest formal student research project we have ever undertaken, and together with aninformal scheme of consultation sought to establish the expectations, needs and concerns of our members toinform our strategy to 2018.

A nine-month project completed with Trustees approving a strategy document, together with enabler plans anda supporting implementation plan, which sets out the future plans as such;

PurposeUCSU exists to represent and support our members to achieve their ambitions

ValuesMember-led: our services, opportunities and activities are informed by what matters to you Inclusive: relevant to, involving of, and accessible for you Friendly: enjoying working with and for you Excellent: always striving to do our best for you

VisionBy 2018, UCSU will be a community of learners, encouraging excellence, and supporting and celebratingachievement

Themes of Work

Your Education;- Working together to promote a high quality academic experience - There to help when you need it

Your Career; - Connecting you with opportunities to develop your skills and experiences - Supporting you into the world of work

Your Student Life; - Connecting you with others to enrich and support your learning experience - Helping you overcome potential barriers to success

Early in 2014-15 we shall establish the delivery projects necessary to effect the changes we seek over the firstperiod of the new strategic plan, and we are excited about furthering our performance with member benefit atthe heart of our work.

Clearly our future success rides on our ability to overcome the financial challenges expected to follow from thecontinued income decline experienced by the University of Cumbria, and we remain hopeful that we candevelop new streams of revenue to advance our work in a more independent manner.

AUDITORS

On 1 April 2014 Armstrong Watson transferred its audit business to Armstrong Watson Audit Limited. On 31March 2014 Armstrong Watson resigned as the company's auditors and Armstrong Watson Audit Limited wassubsequently appointed to fill the vacancy arising.

Page 8



TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements foreach financial year which give a true and fair view of the state of affairs of the charity and of the incomingresources and application of resources of the charity for that period. In preparing these financial statements, theTrustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

charity will continue in operation.

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain thecharity's transactions and disclose with reasonable accuracy at any time the financial position of the charity andenable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accountsand Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguardingthe assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud andother irregularities.

This report was approved by the Trustees on 26 November 2014 and signed on their behalf by:

Christopher Atkins, Chair Laura Davies, Chair of Resources

Page 9


INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF UNIVERSITY OF CUMBRIA STUDENTS'UNION

We have audited the financial statements of University of Cumbria Students' Union for the year ended 31 July2014 which comprise the Statement of financial activities, the Balance sheet and the related notes. The financialreporting framework that has been applied in their preparation is applicable law and the Financial ReportingStandard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practiceapplicable to Smaller Entities).

This report is made solely to the Union's trustees, as a body, in accordance with section 144 of the Charities Act2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we mightstate to the Union's trustees those matters we are required to state to them in an Auditors' report and for noother purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the Union and its trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for thepreparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 144 of the Charities Act 2011 and report to you inaccordance with regulations made under section 154 of that Act. Our responsibility is to audit and express anopinion on the financial statements in accordance with applicable law and International Standards on Auditing(UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standardsfor Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council'swebsite at www.frc.org.uk/auditscopeukprivate.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

give a true and fair view of the state of the Union's affairs as at 31 July 2014 and of its incoming

resources and application of resources for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice applicable to Smaller Entities; and

have been prepared in accordance with the requirements of the Charities Act 2011.

Page 10


INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF UNIVERSITY OF CUMBRIA STUDENTS'UNION

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to reportto you if, in our opinion:

the information given in the Trustees' report is inconsistent in any material respect with the financial

statements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit.

Alan JohnstonFor and on behalf ofArmstrong Watson Audit LimitedChartered AccountantsStatutory AuditorsCarlisle3 December 2014

Armstrong Watson Audit Limited is eligible to act as auditors in terms of section 1212 of the Companies Act2006.

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STATEMENT OF FINANCIAL ACTIVITIES(incorporating income and expenditure account)

FOR THE YEAR ENDED 31 JULY 2014

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

Note2014

£2014

£2014

£2013

£

INCOMING RESOURCES

Incoming resources from generated funds: Voluntary income 2 442,800 117,154 559,954 492,097 Activities for generating funds 3,7 101,395 - 101,395 124,190 Investment income 4 1,676 - 1,676 1,681Incoming resources from charitable activities 5 17,085 13,083 30,168 29,134Other incoming resources 6 - - - 5,783

TOTAL INCOMING RESOURCES 562,956 130,237 693,193 652,885

RESOURCES EXPENDED

Costs of generating funds: Fundraising expenses and other costs 7 91,219 - 91,219 111,872Charitable activities 428,252 127,331 555,583 576,576Governance costs 10 9,787 - 9,787 8,211

TOTAL RESOURCES EXPENDED 8 529,258 127,331 656,589 696,659

NET INCOMING / (OUTGOING)RESOURCES BEFORE TRANSFERS 33,698 2,906 36,604 (43,774)

Transfers between Funds 17 (5,864) 5,864 - -

NET MOVEMENT IN FUNDS FOR THE YEAR 27,834 8,770 36,604 (43,774)

Total funds at 1 August 2013 165,412 32,865 198,277 242,051

TOTAL FUNDS AT 31 JULY 2014 193,246 41,635 234,881 198,277

The notes on pages 14 to 23 form part of these financial statements.

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BALANCE SHEETAS AT 31 JULY 2014

2014 2013Note £ £ £ £

FIXED ASSETS

Tangible assets 13 6,813 12,823

Investments 14 - 3,660

6,813 16,483

CURRENT ASSETS

Stocks 4,160 5,815

Debtors 15 17,659 17,928

Cash at bank and in hand 268,302 230,579

290,121 254,322

CREDITORS: amounts falling due withinone year 16 (62,053) (72,528)

NET CURRENT ASSETS 228,068 181,794

NET ASSETS 234,881 198,277

CHARITY FUNDS

Restricted funds 17 41,635 32,865

Unrestricted funds 17 193,246 165,412

TOTAL FUNDS 234,881 198,277

The financial statements were approved by the Trustees on 26 November 2014 and signed on their behalf, by:

Christopher Atkins, Chair Laura Davies, Chair of Resources

The notes on pages 14 to 23 form part of these financial statements.

Page 13


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 JULY 2014

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with theexception of investments which are included at market value, and in accordance with the FinancialReporting Standard for Smaller Entities (effective April 2008). The financial statements have beenprepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting andReporting by Charities' published in March 2005 and applicable accounting standards.

1.2 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees infurtherance of the general objectives of the charity and which have not been designated for otherpurposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees forparticular purposes. The aim and use of each designated fund is set out in the notes to the financialstatements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors or which have been raised by the charity for particular purposes. The costs of raising andadministering such funds are charged against the specific fund. The aim and use of each restrictedfund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.3 Incoming resources

All incoming resources are included in the Statement of financial activities when the charity hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability.

Revenue grants are credited to the SOFA in the year in which they are received. In the SOFA grantsare shown as income and the relate expenditure disclosed as appropriate.

1.4 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categoriesthat aggregate all costs for allocation to activities. Where costs cannot be directly attributed toparticular activities they have been allocated on a basis consistent with the use of the resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costsof disseminating information in support of the charitable activities. Support costs are those costsincurred directly in support of expenditure on the objects of the charity. Governance costs are thoseincurred in connection with administration of the charity and compliance with constitutional andstatutory requirements.

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1. ACCOUNTING POLICIES (continued)

1.5 Going concern

The relationship between University of Cumbria and University of Cumbria Students' Union isestablished in the Regulations of the University and detailed in Unversity of Cumbria Students' UnionArticles approved by both organisations. University of Cumbria Union receives a Block Grant from theUnviersity and part-occupies a number of buildings. The University pays for utilities, portering andsome cleaning staff. This non-monetry support is intrinsic to the relationship between the Universityand the Students' Union.

Although the University of Cumbria Students' Union continues to generate supplementary fundingfrom various primary purpose trading activities, it will always be dependant on the University'ssupport.

There is no reason to believe that this or equivalent support from the University will not continue forthe foreseeable future, as the Education Act 1994 imposes a duty on the University to ensure thefinancial viability of its student representative body. The financial statements have thereon beenprepared on the going concern basis.

1.6 Tangible fixed assets and depreciation

All assets costing more than £500 are capitalised if they are expected to last more than one year.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at ratescalculated to write off the cost of fixed assets, less their estimated residual value, over theirexpected useful lives on the following bases:

Fixtures and fittings - 20% - 33.3% straight line

1.7 Investments

Investments are stated at market value at the balance sheet date. The Statement of financialactivities includes the net gains and losses arising on revaluations and disposals throughout theyear.

1.8 Operating leases

Rentals under operating leases are charged to the Statement of financial activities on a straight linebasis over the lease term.

1.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion offixed and variable overheads.

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2. VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Donations - 4,000 4,000 100Grants 442,800 113,154 555,954 491,997

Voluntary income 442,800 117,154 559,954 492,097

3. FUNDRAISING INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Merchandise 21,296 - 21,296 36,539External sales & events 80,099 - 80,099 87,651

101,395 - 101,395 124,190

4. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Bank interest received 1,676 - 1,676 1,681

5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Success Awards 4,102 - 4,102 854Volunteering Support 7,318 - 7,318 3,465Information and Advocacy - - - 1,380Clubs and societies - 12,378 12,378 21,716Other income 5,539 - 5,539 372Strategic Communication - - - 1,000Student Group - 705 705 347IT reserve 126 - 126 -

17,085 13,083 30,168 29,134

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6. OTHER INCOMING RESOURCES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Release of provisions - - - 5,783

7. TRADING ACTIVITIES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Fundraising trading expenses

Merchandise 12,176 - 12,176 21,174External sales and events 21,868 - 21,868 20,524Wages and salaries 18,814 - 18,814 33,987Pensions 2,715 - 2,715 2,378Depreciation - - - 984Support costs 35,646 - 35,646 32,825

91,219 - 91,219 111,872

Net expenditure from trading activities (91,219) - (91,219) (111,872)

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8. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff costs Depreciation Other costs Total Total2014

£2014

£2014

£2014

£2013

£

Fundraising expenses 45,175 81 45,963 91,219 111,872

Costs of generating funds 45,175 81 45,963 91,219 111,872

Success Awards 2,812 10 8,029 10,851 9,715Volunteering Support 114,278 156 61,157 175,591 141,919Information and Advocacy 93,195 100 20,125 113,420 123,786Clubs and societies 8,084 28 23,074 31,186 23,438Other costs 1,585 5 4,523 6,113 5,073Strategic Communication 41,289 48 18,905 60,242 96,783Student Group fund - - 547 547 1,610Strategic Development fund - - 9,446 9,446 2,670IT reserve - 5,532 776 6,308 5,783Representation 35,247 50 15,495 50,792 165,799Green fund 33,526 - 57,561 91,087 -

Charitable activities 330,016 5,929 219,638 555,583 576,576

Governance - - 9,787 9,787 8,211

375,191 6,010 275,388 656,589 696,659

9. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES

Activitiesundertaken

directlySupport

costs Total Total2014

£2014

£2014

£2013

£

Success Awards 6,611 4,240 10,851 9,715Volunteering Support 106,966 68,625 175,591 141,919Information and Advocacy 69,094 44,326 113,420 123,786Clubs and societies 18,998 12,188 31,186 23,438Other costs 3,724 2,389 6,113 5,073Strategic Communication 38,861 21,381 60,242 96,783Student Group 547 - 547 1,610Strategic Development fund 9,446 - 9,446 2,670IT reserve 6,308 - 6,308 5,783Representation 28,779 22,013 50,792 165,799Green fund 91,087 - 91,087 -

Total 380,421 175,162 555,583 576,576

Support costs are allocated over the Union's costs of charitable activities on the basis of assessedconsumption.

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10. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Auditors' remuneration 5,683 - 5,683 6,271Trustees' expenses 4,104 - 4,104 1,940

9,787 - 9,787 8,211

11. STAFF COSTS

Staff costs were as follows:

2014 2013 £ £

Wages and salaries 356,588 430,028Other pension costs 18,603 39,015

375,191 469,043

The average monthly number of employees during the year was as follows:

2014 2013 No. No.

Student services - permanent 14 16Trading operations - permanent 1 2Sabbatical officers 4 4

19 22

No employee received remuneration amounting to more than £60,000 in either year.

12. TRUSTEES' REMUNERATION

During the year retirement benefits were accruing to 1 Trustee (2013 - NIL) in respect of defined benefitpension schemes.

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13. TANGIBLE FIXED ASSETS

Fixtures andfittings

£

Cost

At 1 August 2013 and 31 July 2014 30,716

Depreciation

At 1 August 2013 17,893Charge for the year 6,010

At 31 July 2014 23,903

Net book value

At 31 July 2014 6,813

At 31 July 2013 12,823

14. FIXED ASSET INVESTMENTS

Unlistedsecurities

£

Market value

At 1 August 2013 3,660Disposals (3,660)

At 31 July 2014 -

On 23 December 2013 NUS Holdings Limited acquired all of the issued A and B shares held by the Unionin NUS Services Limited at par.

15. DEBTORS

2014 2013 £ £

Trade debtors 10,662 10,762Other debtors 1,070 1,070Prepayments and accrued income 5,927 6,096

17,659 17,928

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16. CREDITORS:Amounts falling due within one year

2014 2013 £ £

Trade creditors 42,071 43,302Other taxation and social security 164 1,459Other creditors 2,874 2,405Accruals and deferred income 16,944 25,362

62,053 72,528

17. STATEMENT OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

CarriedForward

£ £ £ £ £

Designated funds

Strategic Development fund 9,446 - (9,446) - -IT Reserve 7,727 126 (6,308) - 1,545

17,173 126 (15,754) - 1,545

General funds

General funds 148,239 562,830 (513,504) (5,864) 191,701

Total Unrestricted funds 165,412 562,956 (529,258) (5,864) 193,246

Restricted funds

Clubs and societies 26,381 12,378 (31,973) 5,807 12,593Student Group fund 6,484 705 (547) - 6,642Green Fund - 113,154 (91,087) - 22,067Eleanor Peel fund - 4,000 (3,724) 57 333

32,865 130,237 (127,331) 5,864 41,635

Total of funds 198,277 693,193 (656,589) - 234,881

Strategic Development fund University of Cumbria provided additional resource from its own Strategic Development Fund, for UCSUto develop a new brand identity and a new website, designed to improve levels of membershipcommunication and engagement.

IT reserve Cash made available for significant investment in IT infrastructure, particular video conferencing facilities,reserved to fund the depreciation of those assets.

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17. STATEMENT OF FUNDS (continued)

Clubs and societiesFunds are received from membership subscriptions to individual clubs and societies that are used tosupport activities and events hosted by those clubs and societies. Any amounts unspent at the year endare carried forward to the subsequent year for spending by each club or society.

Student Group fundDormant groups have residual monies frozen, to be reclaimed should future members wish to restart thatgroup within a 24 month timeframe. After 24 months, monies are made available for the development ofactive groups, for example training, health and safety, equipment purchases.

Green fundNUS have provided the Union with grant funding for two years to create a 'greener future' for students.Any amount unspent in the first year is carried forward. All of the funding must be spent in the secondyear otherwise this is clawed back by NUS.

Eleanor Peel fundFunds are received to assist students research, advanced study, or the acquisition of a new clinical skillunlikely to be available in the UK. Candidates are expected to be planning a career in the UK which willbe enhanced by spending up to a year at a centre of international excellence.

Transfers Transfers are made from unrestricted reserve to the clubs and societies fund of £5,807 to cover the costof support costs that have been allocated to the funds.

SUMMARY OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

CarriedForward

£ £ £ £ £

Designated funds 17,173 126 (15,754) - 1,545General funds 148,239 562,830 (513,504) (5,864) 191,701

165,412 562,956 (529,258) (5,864) 193,246

Restricted funds 32,865 130,237 (127,331) 5,864 41,635

198,277 693,193 (656,589) - 234,881

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2014£

2014£

2014£

2013£

Tangible fixed assets 6,813 - 6,813 12,823Fixed asset investments - - - 3,660Current assets 247,529 42,592 290,121 254,322Creditors due within one year (61,096) (957) (62,053) (72,528)

193,246 41,635 234,881 198,277

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19. PENSION COMMITMENTS

The Union through the University, participates in the Local Government Pension Scheme (LPGS),making payments for eligible members of staff. This is a multi employer scheme and as a consequence,no share of the underlying assets and liabilities can be directly attributable to the charity on a reasonableand consistent basis under the terms of FRS 17 "Retirement Benefits". In these circumstances,contributions are accounted for as if the scheme were a defined contribution scheme, based on thecontributions paid through the year. Contributions payable in the year amounted to £28,115, however astrain on the fund liability of £9,512 was offset against these contributions as it is confirmed as no longerpayable and hence overall costs for the year amounted to £18,603 (2013 - £39,015).

LGPS is valued every three years by professionally qualified independent actuaries, using the projectedunit method, the rates of contribution payable being determined by the trustees on the advice of theactuaries. In the intervening years, the LGPS actuary reviews the progress of the LGPS scheme.

For LGPS, the actuary has indicated that the resources of the scheme are likely, in the normal course ofevents, to meet the liabilities as they fall due, at the level specified by LGPS regulations. The contributionpayable to Lancashire Pension Services by the employer is 12.5% from 1 April 2010.

20. OPERATING LEASE COMMITMENTS

At 31 July 2014 the charity had annual commitments under non-cancellable operating leases as follows:

2014 2013£ £

Expiry date:

Between 2 and 5 years 2,355 -

21. RELATED PARTY TRANSACTIONS

The Union is in receipt of a recurrent grant from the University of Cumbria £442,800 (2013 - £491,997). Inaddition the Union occupies its building on a rent free basis under an informal licence subject to theUnion maintaining the building in a good state of repair. The value of this facility has not been recognisedin the SOFA as it cannot be reasonably measured.

The sovereign body of the Union is the General Meeting. The sabbatical officers of the Union Councilreceive remuneration for their services as provided for within the Constitution. The aggregate amountpayable under such contracts in the year was £63,732 (2013 - £67,548).

During the year 6 (2013 - 4), trustees were reimbursed for their travel costs incurred during the course oftheir duties of £4,104 (2013 - £1,940).

22. CONTROLLING PARTY

The Union is controlled by the Trustee Board which is subject to democratic election by votingmembership of the Union (excluding three external trustees who are appointed for their skills andexperience who are appointed by a sub-committee of the Board). The ultimate control of the Union isvested under the constitution in the membership in General Meeting. As such no single person or entitycontrols the Union as defined by Financial Reporting Standard 8.

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