TB067
Finance Report: Qtr. 1 Management Accounts
Purpose: To note financial performance of Liverpool Hope Students’ Union at Qtr. 1.
Contact Caroline Bates, Union Development Manager
Introduction
1. Management accounts have been prepared for the period (detailed budget summary attached). Year-to-date performance shows spend of £99,532 against a projected spend of £95,299, with key variances summarised below.
2. Income to date is £127,425, with £79,938 debited directly to external bank account and £47,487 within the block grant held by the university.
Expenditure / Projected Qtr. 1 / Actual Qtr. 1Policy & Campaigns / £2,900 / £1,012
Central Services / £32,137 / £40,367
Student Services / £60,262 / £58,153
Total / £95,299 / £99,532
Income / Projected Annually / Actual Qtr. 1
Block Grant / £231,750 / £97,487
AA Membership / £10,800 / £3,500
BAM / £9000 / £14,374
Welcome Week / £28,000 / £ 9,713
NUS Extra / £6,280 / £2,311
Event Ticket Sales / £9,300 / £0
Union Cloud / £0 / £0
Other / £0 / £40
Total / £296,130 / £127,425
3. This paper sets out key variances against budget.
Main area of overspend
4. Contingency (£1363 negative variance) Overspend on contingency as NUS had advised we could carry over unused on campus printed NUS extra cards from last year. Following setting of budget NUS then advised they had rebranded cards thus meaning we had to purchase a new batch of cards to sell on campus. Also an oversight over UnionCloud transaction fees which were not passed onto students making online purcahses.
5. Unused cards were returned and refund given, debited within last financial year but should cover this overspend.
6. NUS Affliation Fee (£374 negative variance) projection was based on 2012/13 cost, so slight is increase understandable.
7. Welcome Week (£356 negative variance) We have been charged full cost for sport hall hire - Dean of Students had agreed to pay half so £666 needs reimbursing.
Areas of Underspend
8. Sabbatical Officer Activity (£753 underspend) – Projectionf or Qtr1 was too high and did not take into account that students return to university towards end of Qtr1, will expect higher spend in Qtr2 & 3.
9. Elected Officer Budgets (part-time student officers)(£793 underspend) –Projection for Qtr1 was too high and did not take into account that students return to university towards end of Qtr1, will expect higher spend in Qtr2.
10. NUS Green Impact Bid (£464 underspend) - Projection for Qtr1 was too high and did not take into account that student officer leading campaign would return to university towards end of Qtr1, will expect higher spend in Qtr2.
11. Sports (£7420 underspend) - not yet had Qtr. 1 invoices for transport to away matches.
Outstanding Debt
12. Several clubs and societies are showing as being in debt/overdrawn through lack of adequate monitoring systems and approved overdrafts by current and previous President. We will have a clear picture once 2012/13 accounts have been finished and repayment plans will be put in place. Men’s Gaelic have a significant debt of £7782 which is unlikely to be paid off.
13. Repayment plans and options to be presented at January board.
14. The Union has an outstanding debt of £46,300 owed to the University: £36,143 unpaid sports facility hire for 2010/11 and the University paid Union expenses of £10,157 above the block grant allocation.
15. The University’s auditors require a repayment plan for the Union to demonstrate how this debt will be paid.
16. Repayment Options presented to September Board meeting:
Option 1: Repay full amount putting Union bank account £4407 overdrawn and leaving no reserves for the Union
Option 2: 5 year fixed rate repayment of £9260 leaving £32,633 in reserves.
Option 3: Pay a one off amount of £8000 and review repayment plan when setting 2014/15 budget, leaving £33,893 in reserves
Option 4: Pay a one off amount of £4000 and review further payment in January following reforecast of 2013/14 budget. Followed by review of remaining repayments when setting 2014/15 budget.
Sept board agreed to Option 3 but with one off payment of £2000 and Nov board to discuss how to repay remaining £6000 – either in a one off instalment or quarterly £2000 instalments
Decision needed: to agree repayment plan option
Conclusion
17. Qtr. 1 projected budget is slightly overspent however there are no major concerns or implications moving forward.
18. Following Qtr. 2 report we will have a more accurate picture of income and expependiture and will reforecast as appropriate.
19. There may be some unanticipated changes to the figures reported in this paper, e.g. as a result of timing differences (such as late invoices and credit notes).
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