Purpose: to Update the Board on Current Financial and Audit Issues

TB105

Finance & Audit Sub-Committee Report

Purpose: To update the board on current financial and audit issues

Recommendation:That the Board notes the report and approves identified Risks

Financial impact: Discussed within each section if appropriate

Student impact:Discussed within each section if appropriate

Risk:Discussed within each section if appropriate

ContactCaroline Bates, Union Development Manager

1. Qtr 1 Management Accounts & Trial Balance

Committee scrutinised Qtr1 Trial Balance & Balance Sheet and are satisfied that projected and actual income and expenditure showed no key variances of any concern. There was some concern raised about how to keep track of block grant transactions (held with university) to ensure adequate cash flow and how to show this on the balance sheet. There was also a slight discrepancy with accruals however committee satisfied this will be rectified as use of SAGE is established. Ms Barrett (from university finance dept.) and Ian share same concern over presentation of trial balance and use of headings.

Recommendations

UDM to meet with university about recording of block grant transactions and recording accruals

Ian and Ms Barrett to meet to review presentation of Balance sheet etc

1. Risk Register

Committee reviewed Risk Register and have highlighted 5 key risks they feel represent highest risk to the union and the areas that require focusing on.

Governance Risk: Loss of key staff

Operational Risk: Employment and HR Issues

Procedural & System Documentation (Data Protection)

Financial Risk: Dependency on income source –as this is position we are unable to rectify committee is undecided on its inclusion

Environment or External Factors: Students and Stakeholder perception & satisfaction with Union

Recommendation: to focus Risk Policy on the above 4/5 key risks

1. Order of Business for Sub-Committee – Insurance

Committee happy with draft order of business but asked that Insurance be included. As this is due at the end of January and renewal notices did not come in on time for meeting these will be distributed by email to committee and discussed at this meeting.

1. Urgent Business

A temporary loan request has been submitted by Cheerleading . These are usually approved by UDM and President however the group have asked for a 2 year repayment plan and therefore it was taken to the committee for consideration.

The temporary loan is needed to purchase new competition uniforms. Their first suplier agreed to make duplicate competition uniforms for the squad last year however they arrived late, incomplete and did not replicate the orginal design (and one top was missing.) It was agreed that they would remake the tops, however nearly 10 months after the order was initated they are still waiting on the tops, jeopardising their opportunitiy to compete as a squad. Also, with new members joining again this year, the group are not happy to place another order with this. The group have applied for a loan to design and order new competition uniforms which are digitally designed (easily replicated) and printed by Milano pro sport who are contracted to supply leotards for the British Gymnastics squad at the Olympics. The competition uniforms would be owned by the squad and not owebd ny idniual memebers.

Committee agreed loan with following conditions:

A hardship grant from SU will be given to help reduce amount of loan needed.

There was some concern over loans being agreed by final year students and then leaving and the debt being a surprise to new committee members therefore a counter signatory from either a 1st or 2nd year committee member must be added to forms for all groups

Requested a more detailed repayment plan e.g. instead of we aim to pay back £500 by the end of term committee request more detailed plans e.g. we will pay back £200 by end of April, £300 back by July etc

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