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2022-07-31-accounts

REGISTERED COMPANY NUMBER: 02868750 (England and Wales) REGISTERED CHARITY NUMBER: 1029526

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 July 2022

for

Basingstoke ITEC Limited

Turner & Co Chartered Accountants 10a White Hart Parade London Road Blackwater Camberley Surrey GU17 9AD

Basingstoke ITEC Limited

Contents of the Financial Statements for the Year Ended 31 July 2022

Page
Reference and Administrative Details 1 to 2
Report of the Trustees 3 to 8
Independent Examiner's Report 9 to 10
Statement of Financial Activities 11
Balance Sheet 12 to 13
Notes to the Financial Statements 14 to 20
Detailed Statement of Financial Activities 21 to 22

Basingstoke ITEC Limited

Reference and Administrative Details for the Year Ended 31 July 2022

TRUSTEES Ms C B Flower (resigned 19.10.21) M Jones H Putty P Richards (resigned 24.8.22) Ms M A Robins Ms M L Hart M Garvey (appointed 6.9.22) J D Lance (appointed 28.2.23)

COMPANY SECRETARY

M Roberts

REGISTERED OFFICE

Desklodge Belvedere House Basing View Basingstoke Hampshire RG21 4HG

REGISTERED COMPANY 02868750 (England and Wales) NUMBER

REGISTERED CHARITY 1029526 NUMBER

INDEPENDENT EXAMINER Turner & Co

Chartered Accountants 10a White Hart Parade London Road Blackwater Camberley Surrey GU17 9AD

SOLICITORS

Clarke & Son Manor House 8 Winchester Road Basingstoke Hampshire RG21 8UG

Page 1

Basingstoke ITEC Limited

Reference and Administrative Details for the Year Ended 31 July 2022

BANKERS Metro Bank Unit 1 Chiswick House Festival Place Basingstoke RG21 7LD

Page 2

Basingstoke ITEC Limited

Report of the Trustees for the Year Ended 31 July 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2022. The trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019).

Page 3

Basingstoke ITEC Limited

Report of the Trustees for the Year Ended 31 July 2022

OBJECTIVES AND ACTIVITIES Objectives and activities

The Charity's aims, and differences it seeks to make through its activities

The advancement, education and training of young people (and the upskilling of older workers) through the development of their IT and business skills thus providing a solid foundation for their future careers

The Charity's strategies for achieving these aims

Supporting the recruitment and training of apprentices for learners in skill shortage areas such as IT and business-related areas.

The advancement, education and training of adults on selected courses only (from the above income sources). We will provide enrichment training courses in addition to the apprenticeship requirements. Including mental health, sexual health, sexual harassment and career development Achievement of these objectives encourages employers to retain apprenticeship learners and to integrate them into their companies. Allowing companies to retain and grow allow us to draw down planned Education and Skills Funding Agency ("EFSA")

Maximising EFSA funding and procuring income from levy payers, non-procured and procured contract, through the newly implemented digital employer accounts , through levy transfer, and through West Berkshire Training Contract.

The significant activities undertaken to contribute to the achievement of the aims and objectives The company trains and finds employment for approximately 60 apprentices and trainees each year in Information communication technician, IT solutions, Cyber Security, Digital Support technician, IT Salesperson, Business Administration, and Digital Marketing.

The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the company should undertake.

The measures it uses to assess success against aims

The achievement and performance of the strategic priorities, aims and objectives are reviewed at board meetings and measured against the ESF A contract and associated agencies performance measures.

The company is funded by the ESFA depending on how many apprentices are recruited by the employers we create relationships with. Additionally, we draw income for the traineeship programme which is funded by the ESFA. The amount we can draw down for this programme depended on the success of the previous year and current DWP policies. All Apprenticeship standards have different funding levels which are decided by the ESFA in consultation with Ifate. Completion Rates -a completion is a learner who completes all aspects of their training programme, and pass their EPA (end point assessment) and where required Functional skills.

The organisation has a strategy document in place which sets out the steps needed to achieve its aims and objectives, including targets for tendering, recruiting apprentices and trainees, both levy and non-levy, obtaining transfers of unspent levy funding and maximising funding from the traineeship programme. The board review progress against these targets monthly.

The organisation has a marketing strategy which sets expectations for the regular business development activities and promotion of the ITEC brand to levy and non-levy employers including a social media strategy, and continuous development of the website. The board review progress against these targets quarterly.

Page 4

Basingstoke ITEC Limited

Report of the Trustees

for the Year Ended 31 July 2022

OBJECTIVES AND ACTIVITIES

Public benefit

Since the pandemic, all promotions of our services have been delivered in a hybrid of face to face and remotely to schools, colleges and universities across Basingstoke and the wider geographical network that we serve.

During 2020/2021 we continued to use our hardship fund to support all unemployed young learners, this included money for interview and work clothes when starting work and money when the learner gained employment to help with switching to a monthly salary.

The achievement of our aims has enabled us to meet the charity's legal purposes.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The aims of the company in training young people were vigorously pursued in line with our objectives and those of the Education and Skills Funding Agency. 56 learners were enrolled during the accounting period. Although the number of enrolments are slightly down this is offset by higher funding levels for each enrolment.

46% of new learner starts is repeat business. 27% of our starts are from levy paying organisation and 73% from SMEs.

The overall completion rate for this accounting period is 65.4%; this is compared a national average of 51%.

Our retention rate 62% is compared to the national average of 53%. This is distorted by low numbers Digital Marketer for example has a retention rate of 86% , but IT salesperson and Infrastructure have a retention rate of 33%.

Our pass rate of 92% is less than the national average of 97%.

FINANCIAL REVIEW

Financial position

Against the backdrop of limited resources and uncertainties over funding, it is difficult to plan more than one year ahead. At the year end the company had net assets of £169,070 and made a deficit of £23,867 (2021 £63303). Accordingly, the Board of Management have had regular monthly meetings and are confident that the outlook is more positive for the coming year

Page 5

Basingstoke ITEC Limited

Report of the Trustees for the Year Ended 31 July 2022

FINANCIAL REVIEW

Reserves policy

The reserves policy for the company is to hold 6-8 month's expenditure as free reserves. Currently reserves are within this range.

There are two sources of funding: Education Skills Funding Agency

Around 82% of our funding comes from the ESFA, this funding is paid on the number of learners in training and the outcomes of these learners.

Employers

Employer contributions count for approximately 1.7% of our annual income and we received approximately.

10.7% of income through delivery of subcontracted contracts.

The company plans continuing the activities outlined above in the forthcoming years subject to satisfactory funding arrangements.

The directors meet quarterly and are updated regularly on the surplus and deficit and the effects of the new funding and are confident of that although the next year might be challenging the projections are looking favourable and will be constantly monitored.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The organisation is a registered charity number 1029526 started in 1984 and incorporated on 3 November 1993.

The company was established under a Memorandum and Articles of Association, which set out the objectives and rules of the company. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

The directors who served during the year and up to the end of the year were as follows:

Mrs Maxine Hart

Mr Michael Jones Mrs M A Robins Mr H Putty Mrs Melanie Roberts Mr Matt Garvey

Page 6

Basingstoke ITEC Limited

Report of the Trustees for the Year Ended 31 July 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of directors

Method of recruitment of directors

The directors of the company are also the trustees for the purpose of Charity Law. The company is governed by a Board of Management. Members are elected to serve for a period of one year after which they must be re-elected at the next Annual General Meeting.

Recruitment of new members is carried out by the existing members and the aim is to include a balance of members, for example: business, local council and other interested parties. We also try to ensure we represent the community in terms of equality and diversity.

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Organisational structure

At present Basingstoke ITEC Limited has a Board of Management of six members (2021 - five), which includes the Chair. The Board of Management have delegated the day-to-day responsibilities of the company to the manager (Mr Mark Hammond).

The Board of Management meets every quarter, and the Chairman meets with the manager every four weeks to discuss day to day issues.

Page 7

Basingstoke ITEC Limited

Report of the Trustees for the Year Ended 31 July 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Induction and training of new trustees

All new members attend induction training, which is carried out by the manager of the company. This includes the following:

Background of the company

Obligation of Board of Management Committee Members

Accounts

Current statistics

Safeguarding Training

Criminal and DBS checks

Strategic and Marketing aims

Future plans and objectives (Business Plan)

New members will also be invited to meet the learners to gain a good understanding of our client base and their needs.

Related parties

Most funding is received from central Government (via the Education Skills Funding Agency). This is the main partner of the company. Other parties are local employers who work with our learners and the local council

Basingstoke and Deane Borough Council.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

............................................................

M Roberts - Secretary

Page 8

Independent Examiner's Report to the Trustees of Basingstoke ITEC Limited

Independent examiner's report to the trustees of Basingstoke ITEC Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 July 2022.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.

Page 9

Independent Examiner's Report to the Trustees of Basingstoke ITEC Limited

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of FCA which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Margaret Turner FCA Turner & Co Chartered Accountants 10a White Hart Parade London Road Blackwater Camberley Surrey GU17 9AD

Date: .............................................

Page 10

Basingstoke ITEC Limited

Statement of Financial Activities for the Year Ended 31 July 2022

31.7.22
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS
FROM
Charitable activities
Charitable activities
405,637
Investment income
2
-
Other income
-
Total
405,637
EXPENDITURE ON
Raising funds
300
Charitable activities
Support costs
-
Charitable activities
429,204
Total
429,504
NET INCOME/(EXPENDITURE)
(23,867)
RECONCILIATION OF FUNDS
Total funds brought forward
192,937
TOTAL FUNDS CARRIED
FORWARD
169,070		 31.7.21
Total
funds
£
334,024
1
59,708
393,733
-
-
457,036
457,036
(63,303)
256,240
192,937

The notes form part of these financial statements

Page 11

Basingstoke ITEC Limited

Balance Sheet

31 July 2022

31.7.22
Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
7
1,536
CURRENT ASSETS
Debtors
8
51,619
Cash at bank
159,503
211,122
CREDITORS
Amounts falling due within one year
9
(43,588)
NET CURRENT ASSETS
167,534
TOTAL ASSETS LESS CURRENT
LIABILITIES
169,070
NET ASSETS
169,070
FUNDS
10
Unrestricted funds
169,070
TOTAL FUNDS
169,070		 31.7.21
Total
funds
£
2,019
43,514
194,169
237,683
(46,765)
190,918
192,937
192,937
192,937
192,937

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 12

Basingstoke ITEC Limited

Balance Sheet - continued 31 July 2022

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

.............................................

M L Hart - Trustee

The notes form part of these financial statements

Page 13

Basingstoke ITEC Limited

Notes to the Financial Statements for the Year Ended 31 July 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 20% on cost
Computer equipment - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 14

Basingstoke ITEC Limited

Notes to the Financial Statements - continued

for the Year Ended 31 July 2022

1. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. INVESTMENT INCOME

INVESTMENT INCOME
31.7.22 31.7.21
£ £
Deposit account interest - 1
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.7.22 31.7.21
£ £
Depreciation - owned assets 669 1,814
Other operating leases 38,559 31,731

3. NET INCOME/(EXPENDITURE)

4. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2022 nor for the year ended 31 July 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 July 2022 nor for the year ended 31 July 2021.

Page 15

continued...

Basingstoke ITEC Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

5. STAFF COSTS

The average monthly number of employees during the year was as follows:

31.7.22 31.7.21
Administration 10 11
No employees received emoluments in excess of £60,000.
6. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Charitable activities
Charitable activities 334,024
Investment income 1
Other income 59,708
Total 393,733
EXPENDITURE ON
Charitable activities
Charitable activities 457,036
NET INCOME/(EXPENDITURE) (63,303)
RECONCILIATION OF FUNDS
Total funds brought forward 256,240
TOTAL FUNDS CARRIED
FORWARD 192,937

Page 16

continued...

Basingstoke ITEC Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

7. TANGIBLE FIXED ASSETS

Fixtures
and
Computer
fittings
equipment
£
£
COST
At 1 August 2021
1,166
18,256
Additions
-
186
At 31 July 2022
1,166
18,442
DEPRECIATION
At 1 August 2021
1,166
16,237
Charge for year
-
669
At 31 July 2022
1,166
16,906
NET BOOK VALUE
At 31 July 2022
-
1,536
At 31 July 2021
-
2,019
8.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.22
£
Trade debtors
40,318
Prepayments
11,301
51,619		 Totals
£
19,422
186
19,608
17,403
669
18,072
1,536
2,019
31.7.21
£
33,702
9,812
43,514

continued...

Page 17

Basingstoke ITEC Limited

Notes to the Financial Statements - continued for the Year Ended 31 July 2022

9.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.22
£
Trade creditors
12,709
Social security and other taxes
-
Other creditors
-
Accruals and deferred income
4,575
Accrued expenses
26,304
43,588		 31.7.21
£
2,066
6,915
1,162
4,525
32,097
46,765

10. MOVEMENT IN FUNDS

At 1.8.21
£
Unrestricted funds
General fund
192,937
TOTAL FUNDS
192,937
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
405,637
TOTAL FUNDS
405,637		 Net
movement
At
in funds
31.7.22
£
£
(23,867)
169,070
(23,867)
169,070
Resources
Movement
expended
in funds
£
£
(429,504)
(23,867)
(429,504)
(23,867)

continued...

Page 18

Basingstoke ITEC Limited

Notes to the Financial Statements - continued

for the Year Ended 31 July 2022

10. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.8.20
£
256,240
256,240		 Net
movement
in funds
£
(63,303)
(63,303)		 At
31.7.21
£
192,937
192,937

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
393,733
393,733		 Resources
Movement
expended
in funds
£
£
(457,036)
(63,303)
(457,036)
(63,303)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 At 1.8.20
£
256,240
256,240		 Net
movement
in funds
£
(87,170)
(87,170)		 At
31.7.22
£
169,070
169,070

continued...

Page 19

Basingstoke ITEC Limited

Notes to the Financial Statements - continued

for the Year Ended 31 July 2022

10. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
799,370
799,370		 Resources
Movement
expended
in funds
£
£
(886,540)
(87,170)
(886,540)
(87,170)

11. RELATED PARTY DISCLOSURES Remuneration of key management personnel

The remuneration of key personnel is as follows: 2022 2021 £ £ Aggregate compensation 50,407 49,500

Page 20

Basingstoke ITEC Limited

Detailed Statement of Financial Activities
for the Year Ended 31 July 2022
INCOME AND ENDOWMENTS
Investment income
Deposit account interest
Charitable activities
Commercial trading
Co-investment cost for training services
Education & skills funding agency grants
Government employers incentive
income
Other income
Furlough grant received
Total incoming resources
EXPENDITURE
Other trading activities
Bad debts
Support costs
Management
Wages
Social security
Pensions
Rent re operating leases
Insurance
Telephone
Printing, postage & stationery
Advertising
Office supplies
Trainee allowance & other training
related costs
Carried forward		 31.7.22
£
-
42,486
6,709
349,442
7,000
405,637
-
405,637
300
185,263
63,009
12,653
38,559
3,972
3,288
334
3,149
2,010
21,904
334,141		 31.7.21
£
1
27,445
6,207
292,372
8,000
334,024
59,708
393,733
-
272,943
21,165
5,336
31,731
4,738
3,628
1,812
3,251
2,306
25,718
372,628

This page does not form part of the statutory financial statements

Page 21

Basingstoke ITEC Limited

Detailed Statement of Financial Activities for the Year Ended 31 July 2022

Management
Brought forward
Staff training
Premises costs
Repairs & maintenance
Travel costs
Subcontract costs
Hardship fund
Bank charges
Computer running costs
Subscriptions
Staff welfare
Government employers incentive
expenses
Depreciation of tangible and heritage
assets
Governance costs
Accountancy
Legal and professional
Independent examination fee
Total resources expended
Net expenditure		 31.7.22
£
334,141
2,726
-
-
3,728
3,018
332
166
8,094
2,172
1,902
7,500
1,131
364,910
386
60,908
3,000
64,294
429,504
(23,867)		 31.7.21
£
372,628
1,888
5,631
2,822
794
36,385
8
180
5,906
3,833
819
7,500
1,032
439,426
361
14,249
3,000
17,610
457,036
(63,303)

This page does not form part of the statutory financial statements

Page 22