2017/18 Annual Review

 

A link to the most recent Report & Accounts for Edinburgh University Students’ Association and its subsidiary company EUSACO Ltd is below. These accounts relate to our financial year 2017-18 which ran from 1 April 2017 to 31 March 2018.

 

Edinburgh University Students' Assosiciation 2017-18

EUSACO Ltd 2017-18

 

Summary

 

Edinburgh University Students’ Association is a surprisingly large and complex organisation. We are a student-led charity whose board of trustees is made up of five elected student sabbatical officers, four student trustees and three external, non-student trustees. All students are by default a member of the Students’ Association.

We operate numerous bars and cafes, five shops, two nightclubs, a gym and an external catering business. We provide impartial and confidential advice to students on areas ranging from financial matters to relationships and studies. We campaign to ensure that students get a better deal during their time at university, and support students from overseas. We help students to volunteer in the community and we support the 300+ student societies that exist. Our total income in 2017/18 was £12.7 million, we employed 150 salaried staff and paid £2.1 million in wages to hourly-paid staff, most of whom are students.

 

Where our money is from

 

Our income can be split into two main groups: commercial and grant income. Commercial income from the Association’s bars, cafes, shops and Festival operations was £9.1m in 2017-18, and makes up the greatest share of our total income. Grant income (mainly from the University) at £3.1m is the next largest, and there are also various smaller sources such as rental income from the Teviot Print shop and Vitality optician/dentist in Potterrow.

 

However this only shows part of the picture. The commercial income represents gross takings at the Association’s outlets. If you factor in the direct costs of selling the products – called the cost of sales – plus the wage costs of the people staffing our outlets, a profit of about £0.5m was made.

So a more realistic way of looking at the income is to consider the ‘useable’ or net income. This is the surplus from our commercial activities plus the annual grant from the University and other sources. This added up to £4.0m in 2017-18 as can be seen in the second chart.

 

Where the money goes

 

We use our income to run our student support activities such as The Advice Place, the Peer Support programme or the Activities Hub. We also use it to pay for the teams and services that support the whole organisation, such as the Human Resources and Marketing teams, Estates (who maintain our buildings) or Front of House (who provide our door security).

On our website you can see more details on the things that we do to directly help our student members.

We spent 65% of our ‘useable’ income on non-commercial staff costs in 2017/18. The remaining £1.6m was used to fund everything else: heat & light, repairs & maintenance, equipment hire, design and print costs, and much more. Anything that’s left over at the end of the year is retained to help rebuild the Association’s reserves (see ‘balance sheet’, below). In 2017/18 expenditure was higher than income and a deficit of £176k was made as a result.

 

Balance sheet

 

Knowing where our income is from and expenditure goes is however only part of the picture. The balance sheet is a snapshot taken at the end of the financial year showing what the Association owns (assets), and what it owes to others (liabilities). A strong balance sheet is one with a good ratio of assets to liabilities, which for a charity is reflected in its net assets or reserves.

Since 2013 we have been working hard to strengthen the Association’s balance sheet. We have increased the reserves by close to £1 million since then, have grown cash balances to avoid the need for a bank overdraft, and have paid off loans. This has involved hard work and focus on the part of the trustees and staff, and has been successfully achieved. Many challenges lie ahead and the Association’s balance sheet is not yet as strong as the trustees believe it needs to be. The deficit made in 2017/18 reduced reserves for the first time since 2013 and our financial plans are therefore to control costs where possible, generate new income and manage cash carefully. See the chart below for a representation of where our balance sheet was in 2013, is now, and our target for 2022.

 

 

Budget for 2018-19

 

The budget for 2018-19 was signed off by the board of trustees in March 2018 and gives a surplus of £90k for the year. This will be used as a benchmark against which the actual results for the year will be compared. A high level summary of the 2018/19 budget is shown below.