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2022-02-28-accounts

ENGINEERING SERVICES TRAINING TRUST LIMITED (a company limited by guarantee)

Registered No. 02674888 Charity Registration No. 1007703

Annual report and financial statements For the year ended 28 February 2022

ENGINEERING SERVICES TRAINING TRUST LIMITED (a company limited by guarantee)

Annual Report and Financial Statements For the year ended 28 February 2022

CONTENTS

1 Company Information
2-5 Report of the Trustees
6-9 Report of the Independent Auditors
10 Statement of Financial Activities
11 Balance Sheet
12 Statement of Cash Flows
13-18 Notes to the Financial Statements

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Annual Report and Financial Statements For the year ended 28 February 2022

COMPANY INFORMATION

Board of Trustees S A Hardy M C James (appointed 2 June 2021) S Chenia (appointed 2 June 2021) L C Gillespie (appointed 15 August 2022) Secretary S A Hardy Nominating Bodies The Building Engineering Services Association B&ESA Ltd Registered Office Old Mansion House Eamont Bridge Penrith Cumbria CA10 2BX Company Number 02674888 Charity Registration Number 1007703 Independent Auditor Armstrong Watson Audit Limited Fairview House Victoria Place Carlisle CA1 1HP Bankers Lloyds TSB 5-6 King Street Penrith Cumbria CA11 7AP Investment Fund Providers Cazenove Capital Management Schroder & Co Limited 1 London Wall Place London EC2Y 5AU

1

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Trustees For the year ended 28 February 2022

The Trustees submit their report together with the audited financial statements for the year ended 28 February 2022. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Name and Registered Office of Charity

The name of the charity is Engineering Services Training Trust Limited. Its registered office is:

Old Mansion House, Eamont Bridge, Penrith, Cumbria, CA10 2BX

and its principal operating address is:

Rotherwick House, 3 Thomas More Street, Saint Katharine’s & Wapping, London, E1W 1YZ.

Constitution and Registration

The charity was formed as a company limited by guarantee on 31 December 1991; is governed by the terms of its Memorandum and Articles of Association; and is registered with the Charity Commission.

Objectives and Activities

The charity was established to promote and advance, for the public benefit, the education and training of persons employed or intending to be employed in building engineering services and related industries, in the UK and elsewhere. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its activities.

The Trustees are satisfied that the reported or expected benefits of the funding the charity has provided meet their required success criteria.

Organisation of the Charity

The charity’s operations are controlled by the Board of Trustees, responsible for the legal, statutory and financial obligations. In particular the Board is responsible for:

As the charity has no directly employed staff, support services are provided as required by The Building Engineering Services Association. In the opinion of the Trustees, the value of these services is not sufficiently material to require disclosure in the financial statements as a gift in kind.

2

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Trustees For the year ended 28 February 2022

Trustees

The Trustees of the charity during the year were:

S A Hardy F S Clayton MBE (appointed 2 June 2021 resigned 15 December 2021) M C James (appointed 2 June 2021) S Chenia (appointed 2 June 2021)

The Trustees had no financial interest in either the charity or in any material contract during the year relating to the activities of the charity.

Key management personnel are deemed to be the Trustees. No Trustee receives any remuneration.

Appointment and Induction of Trustees

Trustees are appointed by the nominating bodies, The Building Engineering Services Association and B&ESA Limited, in accordance with the charity’s Memorandum and Articles of Association, as and when required in order to maintain an effective balance of knowledge and relevant experience. In addition to general induction, training for new Trustees will be provided where necessary on charity, legal and financial matters.

Statement of Trustees’ Responsibilities

The Trustees, who are also the directors of Engineering Services Training Trust Limited for the purposes of company law, are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with the Companies Act 2006 and for being satisfied that the financial statements give a true and fair view. The Trustees are also responsible for preparing the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Investment Powers

The Memorandum and Articles of Association of the charity place no restrictions on the power of investment of the Trustees.

3

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Trustees For the year ended 28 February 2022

Risk Management

In the opinion of the Trustees, the only major risk to which the charity could be exposed is that the value of its investments could reduce through significant market turmoil or by fraud. They believe that both of these issues are covered by the placement of the charity’s funds, other than working capital, with a reputable fund manager selected after careful review.

The Trustees are satisfied that internal risks, which could derive from the selection of projects or unauthorised bank payments have been minimised by the various policies, procedures and mandates which are in place and regularly reviewed.

The Trustees continue to assess the potential implications of the United Kingdom withdrawing from the European Union. Although there is an appreciation that there is a level of uncertainty associated with this, no significant direct implications are expected.

Reserves Policy

Accumulated funds are invested as outlined in the financial statements and the general policy is that returns on these investments will be used to fund charitable activities. Neither this, nor the capital benchmark which the Trustees use to monitor reserves, is a financial limit and the policy of the Trustees is that, subject to rigorous review criteria being met, the charity’s funds and reserves should be used in a manner where and when they can provide maximum benefit within its objectives.

The value of the Unrestricted General Fund at 28 February 2022 was £2,871,360 (2021: £2,663,144).

The Trustees' capital benchmark at 28 February 2022 was £2,980,000 (2021: £2,907,000), reflecting a deficit of £108,640 (£243,857). The Trustees are satisfied that, as investment income covers administrative expenses, the deficit against the benchmark is due to unrealised losses which they believe can reasonably be expected to be recovered in the longer term.

Review of Income and Expenditure

The charity’s principal funding source is the income which it receives from listed investments. At £93,061, the investment income received was higher compared to the previous year’s figure of £86,123. In the current year, the charity has provided funding of £23,950 (2021 £Nil). The Charity has funded £23,950 to the Building Engineering Services Assocaition for the Catapult project to undertake research to identify the key changes needed to achieve competence in the industry. Taking into account the overall total of grants provided or authorised in the year resulting in net income before investment activity of £56,457 for the year (2021 – £76,379). After gains on investments of £151,759 (2021 – 182,646), there was a net increase in funds of £208,216 (2021 – 259,025).

Review of Developments and Future Prospects

The Trustees have decided that the charity will continue to act as a charity for the benefit of training in building engineering services and other related industries. It will seek actively to support initiatives and projects that are consistent with its Memorandum and Articles of Association. This policy will be the subject of regular review to ensure that the most appropriate use of the charity’s funds is being made.

Related parties

Related party transactions are fully disclosed within note 14 to the financial statements.

4

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Trustees For the year ended 28 February 2022

Public Benefit statement

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Investments

Details of the investment transactions in the year are set out in note 9 to the financial statements.

Statement as to Disclosure of Information to Auditor

In so far as the Trustees are aware at the time of approving the Trustees’ Annual Report:

Auditor

Armstrong Watson Audit Limited have expressed their willingness to continue in office. A resolution to reappoint them in accordance with Section 485 of the Companies Act 2006 will be put to the annual general meeting.

This report has been prepared in accordance with the Small Companies regime of the Companies Act 2006.

By order of the Board

S A Hardy Trustee

Date: 23 September 2022

5

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Independent Auditors For the year ended 28 February 2022

Opinion

We have audited the financial statements of Engineering Services Training Trust Limited (the 'charitable company') for the year ended 28 February 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

6

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Independent Auditors For the year ended 28 February 2022

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

7

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Independent Auditors For the year ended 28 February 2022

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non compliance. Auditing standards also limit the audit procedures required to identify non compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

8

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Report of the Independent Auditors For the year ended 28 February 2022

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Gray (Senior Statutory Auditor)

for and on behalf of Armstrong Watson Audit Limited Chartered Accountants and Statutory Auditor Fairview House Victoria Place Carlisle CA1 1HP Date

9

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Statement of Financial Activities For the year ended 28 February 2022

Note
Income
Investment income
2
Total
Expenditure
Raising funds
3
Charitable activities
4
Total
Net income before gains and losses on
investments
Net gains on investments
8
Net movement in funds
Fund balance brought forward
Fund balance carried forward
11		 Unrestricted
Funds
Unrestricted
Funds
2022
2021
£
£
93,061
86,123
93,061
86,123
8,015
4,626
28,589
5,118
(36,604)
(9,744)
56,457
76,379
151,759
182,646
208,216
259,025
2,663,144
2,404,119
2,871,360
2,663,144		 Unrestricted
Funds
Unrestricted
Funds
2022
2021
£
£
93,061
86,123
93,061
86,123
8,015
4,626
28,589
5,118
(36,604)
(9,744)
56,457
76,379
151,759
182,646
208,216
259,025
2,663,144
2,404,119
2,871,360
2,663,144
86,123
4,626
5,118
(9,744)
76,379
182,646
259,025
2,404,119
2,663,144

All gains and losses recognised in the year are included above.

The notes on pages 13 to 18 form part of these financial statements

10

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Balance Sheet as at 28 February 2022 Registered No 02674888

Note
Fixed assets
Investments
9
Current assets
Cash at bank and in hand
317,613
317,613
Liabilities
Creditors: amounts falling due within one year
10
(71,111)
Net current assets
Total assets less current liabilities
Funds
Unrestricted General fund (including revaluation
reserve)
12		 Note
Fixed assets
Investments
9
Current assets
Cash at bank and in hand
317,613
317,613
Liabilities
Creditors: amounts falling due within one year
10
(71,111)
Net current assets
Total assets less current liabilities
Funds
Unrestricted General fund (including revaluation
reserve)
12		 2022
£
2,624,858
246,502		 387,279 2021
£
2,384,385
278,759
317,613
(71,111)		 387,279
(108,520)
2,871,360 2,663,144
2,871,360 2,663,144

These financial statements have been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

The financial statements were approved and authorised for issue by the board on 23 September 2022 and signed on its behalf.

S A Hardy Trustee

The notes on pages 13 to 18 form part of these financial statements

11

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Statement of Cash Flows For the year ended 28 February 2022

Note
2022
£
£
Cash flows from operating activities
Net movement in funds
208,216
(Decrease) / Increase in creditors
10
(37,409)
Interest received
-
Gains on investments
(151,759)
Net cash inflow from operating activities
19,048
Cash flows from investing activities
Investment income reinvested in the fund
9
(93,061)
Proceeds from sale of investments
4,347
Interest received
-
Net cash outflow from investing activities
(88,714)
Net decrease in cash and cash equivalents
(69,666)
Cash and cash equivalents at the start of the
year
387,279
Cash and cash equivalents at the end of the
year
317,613
Cash and cash equivalents consists of:
Cash at bank and in hand
317,613		 Note
2022
£
£
Cash flows from operating activities
Net movement in funds
208,216
(Decrease) / Increase in creditors
10
(37,409)
Interest received
-
Gains on investments
(151,759)
Net cash inflow from operating activities
19,048
Cash flows from investing activities
Investment income reinvested in the fund
9
(93,061)
Proceeds from sale of investments
4,347
Interest received
-
Net cash outflow from investing activities
(88,714)
Net decrease in cash and cash equivalents
(69,666)
Cash and cash equivalents at the start of the
year
387,279
Cash and cash equivalents at the end of the
year
317,613
Cash and cash equivalents consists of:
Cash at bank and in hand
317,613		 Note
2022
£
£
Cash flows from operating activities
Net movement in funds
208,216
(Decrease) / Increase in creditors
10
(37,409)
Interest received
-
Gains on investments
(151,759)
Net cash inflow from operating activities
19,048
Cash flows from investing activities
Investment income reinvested in the fund
9
(93,061)
Proceeds from sale of investments
4,347
Interest received
-
Net cash outflow from investing activities
(88,714)
Net decrease in cash and cash equivalents
(69,666)
Cash and cash equivalents at the start of the
year
387,279
Cash and cash equivalents at the end of the
year
317,613
Cash and cash equivalents consists of:
Cash at bank and in hand
317,613		 2021
£
£
259,025
2,004
(1,045)
(182,646)
77,338
(85,078)
3,789
1,045
(80,244)
(2,906)
390,185
387,279
387,279		 2021
£
£
259,025
2,004
(1,045)
(182,646)
77,338
(85,078)
3,789
1,045
(80,244)
(2,906)
390,185
387,279
387,279
(93,061)
4,347
-		 (85,078)
3,789
1,045
(69,666)
387,279		 (2,906)
390,185
317,613 387,279
317,613 387,279

The notes on pages 13 to 18 form part of these financial statements

12

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Notes to the Financial Statements For the year ended 28 February 2022

1 Accounting Policies

1.1 General Information

Engineering Services Training Trust Limited (‘the charity’) is a charitable company limited by guarantee incorporated in the United Kingdom and registered in England and Wales. The address of its registered office is:

Old Mansion House, Eamont Bridge, Penrith, Cumbria, CA10 2BX

and its principal place of operation: Rotherwick House, 3 Thomas More Street, Saint Katharine’s & Wapping, London, E1W 1YZ

The charity was established to promote and advance, for the public benefit, the education and training of persons employed or intending to be employed in building engineering services and related industries, in the UK and elsewhere. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its activities.

These financial statements have been presented in pound sterling which is the functional currency of the charity.

1.2 Basis of Preparation

The charity is a public benefit entity and the financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost, as modified by the revaluation of investments to market value.

1.3 Investment Income

Investment income is included in the Statement of Financial Activities when it is declared by the investment manager. Bank interest is included in the Statement of Financial Activities on a receivable basis.

1.4 Fund Accounting

Unrestricted general funds represent funds, which are expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.

1.5 Expenditure and Irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

13

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Notes to the Financial Statements For the year ended 28 February 2022

1.6 Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

1.7 Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

1.8 Financial Instruments

Financial assets and liabilities are recognised when the charity becomes party to the contractual provisions of the financial instrument. The charity holds only basic financial instruments, which comprise cash and cash equivalents, other payables, and other financial instruments.

Financial assets – classified as basic financial instruments

Financial liabilities – classified as basic financial instruments

1.9 Critical Accounting Judgements and Key Sources of Estimation Uncertainty

In applying the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

14

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Notes to the Financial Statements For the year ended 28 February 2022

1.10 Taxation

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.11 Going Concern

The financial statements have been prepared on a going concern basis. The Trustees, having considered the financial position of the charity for a period of at least twelve months from the date of signing these financial statements, have no reason to believe that a material uncertainty exists that may cast doubt about the ability of the charity to continue as a going concern.

Accordingly, the Trustees have a reasonable expectation that the charity will continue in operational existence and thus they adopt the going concern basis of accounting in preparing the financial statements.

2 Investment Income

Investment Income
Bank interest
Distributions from UK listed investments
Raising Funds
Professional fees
Charitable Activities
Direct Costs
Grants payable
Support costs
Audit fees
Bank charges		 Unrestricted
2022
£
-
93,061
93,061
Unrestricted
2022
£
8,015
Unrestricted
2022
£
23,950
4,434
205
28,589		 Unrestricted
2021
£
1,045
85,078
86,123
Unrestricted
2021
£
4,626
Unrestricted
2021
£
-
4,997
121
5,118

3 Raising Funds

4 Charitable Activities

5 Information Regarding Trustees

No Trustee received or waived any remuneration, fees or expenses from the charity during the year (2021 - £nil).

15

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Notes to the Financial Statements For the year ended 28 February 2022

6 Staff Costs

No staff costs were incurred directly by the charity during the year (2021 - £nil). The entity had no employees in the current or prior period.

7 Corporation Tax

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

8 Gains / (Losses) on Investment assets

9 Realised gains
Unrealised gains
Fixed Asset Investments
Listed investments (at valuation):
Market value at 1 March
Additions
Disposals
Unrealised net investment gain
Market value at 28 February
Cost at 28 February		 Unrestricted
2022
£
239
151,520
151,759
Unrestricted
2022
£
2,384,385
93,061
(4,108)
151,520
2,624,858
2,164,291		 Unrestricted
2021
£
251
182,395
182,646
Unrestricted
2021
£
2,120,450
85,078
(3,538)
182,395
2,384,385
2,075,099

Each of the investments included in the above, represents more than 5% of the total market value as follows at the end of the period:

Market Market
Value Value
2022 2021
£ £
Cazenove Charity UCITS Fund 31.5% 827,061 26.6% 633,904
Cazenove Charity NURS Fund 68.5% 1,797,797 72.1% 1,720,481

16

ENGINEERING SERVICES TRAINING TRUST LIMITED

(a company limited by guarantee)

Notes to the Financial Statements For the year ended 28 February 2022

10 Creditors falling due within one year

Unrestricted
2022
£
Amounts due to related undertakings
-
Grants payable
65,721
Accruals
5,390
71,111
Analysis of Funds
Unrestricted
2022
£
Unrestricted general fund
At 1 March
2,663,144
Income
93,061
Expenditure
(36,604)
Investment gains
151,759
At 28 February
2,871,360
Analysis of Net Assets
Unrestricted
2022
£
Unrestricted funds
Investments
2,624,858
Cash at bank
317,613
Net current liabilities
(71,111)
2,871,360
Financial Instruments
Financial assets that are debt instruments measured at amortised costs:
Unrestricted
2022
£
Cash at bank and in hand
317,613		 Unrestricted
2021
£
4,800
97,978
5,742
108,520
Unrestricted
2021
£
2,404,119
86,123
(9,744)
182,646
2,663,144
Unrestricted
2021
£
2,384,385
387,279
(108,520)
2,663,144
Unrestricted
2021
£
387,279

11 Analysis of Funds

12 Analysis of Net Assets

13 Financial Instruments

14 Related Party Transactions

The Building Engineering Services Association (BESA) and its subsidiaries are considered by the Trustees to be related parties of the charity.

During the year BESA paid costs totalling £Nil (2021: £600) on behalf of the charity. At the year end £Nil was owed to BESA (2021 - £4,800).

During the year grants of £23,950 (2021: £Nil) were agreed for projects within BESA by the charity. At the year end, grants as yet unclaimed by BESA amounted to £63,221 (2021: £95,478).

17

ENGINEERING SERVICES TRAINING TRUST LIMITED (a company limited by guarantee)

Notes to the Financial Statements For the year ended 28 February 2022

15 Legal Status of the Charity

The charity is incorporated as a company limited by guarantee, having no share capital. In accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 28 February 2022 and 29 February 2021 there were two members as follows:

The Building Engineering Services Association, a registered trade and employers association operating in the United Kingdom. Certification office number 043/E.

B&ESA Limited, a company registered in England 00852809, The Company is the parent company of a group of companies who operate in the building services industry.

Consolidated accounts for both entities are available from Old Mansion House, Eamont Bridge, Penrith, Cumbria, CA10 2BX.

16 Controlling Party

The Building Engineering Services Association (BESA) has the power to appoint six out of a maximum of eight Trustees.

The charity has no ultimate controlling party due to no individual having control over BESA.

18