Keele statement of accounts 20/21 | Page 62

Keele University

Notes to the Accounts For the year ended 31 July 2021

31 Related Party Transactions

During the year the group entered into transactions , in the ordinary course of business , with other related parties . The University has taken advantage of the exemption within FRS 102 and has not disclosed transactions with other group entities where it holds 100 % of the voting rights . Included within the financial statements are the following transactions with related parties :

31 ( a-i ) Council Members

The University ' s council members are the trustees for charitable law purposes . Due to the nature of the University ’ s operations and the composition of the Council , being drawn from public and private sector organisations , it is inevitable that transactions will take place with organisations in which a member of the Council may have an interest . All transactions involving organisations in which a member of Council may have an interest are conducted at arms-length and in accordance with the University ’ s Financial Regulations and usual procurement procedures .

The table below discloses members of Council and transactions for the full year where there was a related party relationship at any point in the year :

31 ( a-ii ) Payment for services provided to the University by Council Members

There were no payments for services provided by a Council Member in the year ( 2020 – £ nil ). Please refer to the Corporate Governance Statement for the total expenses paid to council members .

31 ( b ) Staff pension benefits Keele Superannuation Scheme (“ KSS ”)

KSS is a final salary defined benefit scheme in the United Kingdom , with the assets held in separate trustee-administered funds . The University is the principal employer . KSS is closed to future service benefit accrual . Accordingly , no further contributions by either members or the University to KSS have been made except for the deficit funding contributions paid by the University in line with the recovery plan . For the year ended 31 July 2021 , these were £ 1,447k ( 2020 : £ 1,363k ), which included £ nil ( 2020 : £ nil ) outstanding contributions at the balance sheet date .

The University settles the pensions payable of £ 1,695k ( 2020 : £ 1,630k ) through its payroll . These costs are then recharged by the University to the Scheme .

From 1 August 2015 , as the Scheme has become a closed scheme , the administrative expenses of £ 250k ( 2020 : £ 201k ) have been re-imbursed by the University , including Trustees Indemnity Insurance . The University recovers VAT on behalf of the Scheme , in relation to VAT levied on administration expenses . At the year end the amount due to the University was £ nil ( 2020 : £ nil ).

Other pension schemes

Past and present employees of the University are members of the Universities ’ Superannuation Scheme , Local Government Pension Scheme , National Health Service Pension Scheme and National Employment Savings Trust . Please see Note 32 “ Pension Schemes ” for more detail .

31 ( c ) Transactions with Keele University Students ’ Union (“ KSU ”) and Keele Postgraduate Association (“ KPA ”)

The President of KSU and the President of the KPA are Council members during their term of office . As such they are trustees of the University , and transactions are required to be disclosed between the University and the two bodies .

During the year , grants were awarded to KSU of £ 1,138k ( of which £ 267k was paid in 2019 / 20 ) and additionally £ 546k paid in advance ( 2020 - £ 1,119k in year and £ 267k paid in advance ) and to the KPA of £ 55k along with £ 47k of additional grant contributions ( 2020 - £ 55k ). At the year end , £ nil ( 2020 - £ nil ) was owed to KSU and £ 546k ( 2020 - £ 267k ) was prepaid on the balance sheet , and £ nil ( 2020 - £ nil ) was owed to the KPA .

During the year , sales of £ 21k ( 2020 - £ 17k ) were made by the group to KSU and £ nil ( 2020 - £ 1k ) to the KPA , with a related debtor of £ nil ( 2020 - £ nil ) and £ nil ( 2020 - £ nil ) respectively on the balance sheet . During the year , £ 54k ( 2020 - £ 53k ) was purchased by the group from KSU and there was a trade creditor balance of £ 1k ( 2020 - £ 1k ). For the KPA , the University purchased items from them for £ 2k ( 2020 - £ 19k ) and had a trade creditor balance of £ 1k ( 2020 - £ 1k ).

31 ( d ) Keele Residential Funding (“ KRF ”) agreement

The term Keele Residential Funding (“ KRF ”) is used to describe several linked transactions running throughout the financial statements . The principle relationships and transaction flows are described in this note .

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