Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc Registered nurnber: 04274770 Charity number.1091711 INDEPENDENTTRAINING SERVICES LIMITED FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 JULY 2021
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A tompany limited by guorontee CONTENTS Poge Reference ond odmini5trotive details of the charityg Its trustees, Und odvi5ers Trustees. report Independent audito5 report 10 Consolidated statement of finonciol octivities 14 Consolidated stotement of financial position 16 Cornpany statement of financial position 18 Con501idated statement of cash flows 19 Notesto the financial statements 20
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED IA companylimited by guaranteel REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021 Trustees Miss. K Dickinson. Chair Mrs. H E Jaggar Mr. l K Koursis Mr. D E MacDougall Mr. A J Porker Compony Secretory Mrs. H Jockson Compony registered number 04274770 Chority registered number 1091711 Registered office Queens Court Business Centre. Regent Street. Barnsley. South Yorkshire. England. S70 2EG Managing Director Steve Hepworth Independent auditors Gront Thornton UK LLP, No I Whitehall Riverside. Leeds. LSI 4BN Bankers National Westminster Bank plc. 26 Market Hill, Bornsley. South Yorkshire. S70 2QE Solicitors DAC Beachcroft, St Pauls House, 23 Pork Squore South, Leeds, LSI 2ND
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A ¢omponylimited by guorontee TRUSTEES, REPORT FOR THE YEAR ENDED 31 JULY 2021 Chair'sforeword 2020121 hos been another challenging year for Independent Training Servi¢e5 IITSI. In yeor the Board of Trustees monitored closely the execution of the operotionol plan and our progress made delivering our 2020121 business plan. The organisation remains focused C improving our financial heolth to ensure we can invest in the delivery of our promise- thus providing the best education and training experience for our learner5 lstudents) ond locol businesses. We were on track to exceed the busine55 plan prior to COVID-19, however the pondemic had an adverse effect on apprenticeship recruitment ond the financial performance of the company. Miss. K Dickinson. Choir, Boord of Trustees Monoging Oirectors Introdurtion The year has been o difficult yeor due to vorious externol factors including COVID-19 which hos hod o significont impact on income. The operationol performance throughout the year has seen a downturn on government funded opprenticeship and our non-government training services. COVIO-19 has restricted our ability to recover this position on these fvnded streoms. Government support pockages were occessed in year to reduce the overoll financiol impoct on the business. ITSwere successful in extending Europeon funded contracts into 2020121 ond these have supported further finoncial benefits and allowed ITS to diversify the Iroining offer and expond to o wider audience. In oddition, we have been successful in goining new European ond Deportment of Work and Pensions IDWPI contracts to support the Sheffield City and North Eost Oerbyshire regions. These will start to toke shape in 2021122. The quality of provision hos been good overall but this hos been impocted by COVID-19. Our continued support for apprentices and employers has allowed us lo retain apprentices on courses but it has had a negotive effect on the ochievement rotes with the time toking to complete under the circumstonces. Our adult ond European funded provision has been outstonding throughout the year delivering excellent outcomes for learners locolly ond regionolly. We ore starting to see positive signs of previous chon9es to our subsidiory Smortstyle Technology Training Limited Ismartstylel. This oreo of the blnesS is well positioned to move forword for future years. The commercial training market hos been non*xislent during COVID-19 $0 further changes and support packages were implemented during the yeor to protect the financial performance. Additional controcts and portnerships have been built and these will positively impoct Smortstyle moving forward. Our people Temoin possionate ond committed to our core purpose ond hove demonstrated o positive ondwelcomed team approach to ensure we are stronger and have greater resilience to continue our journey. Steve Hepworth Managing Dirertor
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A ¢ompony limited by guaronteè TRUSTEES, REPORT Icontinued) FOR THE YEAR ENDED 31 JULY 2021 The Trustees present their onnuol report together with the oudited finonciol stotements of Independent Training Services Limited Ithe company I ITS) for the porent company and group for the period l August 2020 to 31 July 2021. The Trustees confirm that the Annual Report and finoncial statements of the company comply with the current statutory requirements. the requirements of the company'sgoverning document ond the provisions of the Statement of Recommended Practice ISORPI. applicable to charities preparing their accounts in accordance with the Financial Reporting Standard opplicoble in the UK and Republic of Ireland IFRS 1021 (effective l Jonuory 20191. STRUCTURE, GOVERNANCE AND MANAGEMENT The company ond the group is registered os o choritable company limited by guarantee and was set up by a Memorondum of Association on 22 August 2001. The company ond the group is constituted under a Memorondurn of Associotion. registered chority number 1091711 and company Ilimited by guoronteel number 4274770. The Boord of Trustees changed in 2018119 following the acquisition by Barnsley College. The trustee5 monitor the organisotion's performance throu9h u formal boord which meets four times o year. The Boord monitors the finance, performance ond qualityof ITS and Smortstyleand invitations ore mode to other senior leodership teom members os appropriate. As required by the Articles of Associotion, an Annual General Meeting is held on a yearly bosis. The governonce model chonged in 2019120 to bring it into line with the College. There is a formal procedure for the induction and troinin9 of trustees thot mirrors thot of Bornsleycollege. Trustees The Trustees are appointed by the Boord of Trustees. The trust deed ollows for a minimum of five Trustees and no more than twelve. One third lor the number nearesl one thirdl of the Truslees must retire each yeor,those longest in office retiring first. A retiring Trustee who remoins quolified may be reappointed. Meetings The Board of Trustees meet every quorter. At the meetings, the Trustees ogree the broad strategy ond oreos of activity of the company, including rotificotion of gronts thot ore made ond a review of the live risk register. Policles and Procedures adopted for Recruitment, Induction and Training of Trustees The Board keeps the skill requirements for the Trustee Body under Teview. Any recruitment of new Trustees is undertoken by open odvertisement andthrough o dialogue with interested parties. When an individual expresses on interest in becoming o Trustee, on initiol meeting is held with the Choir. A proposol to oppoint o new Trustee is submitted to the Boord for opprovol. Once on oppointment hos been mode, the newly elected Trustee undergoes on induction progromme. The compony keeps uptctdote with key developments and training is provided to Trustees os ond when required. Financial Plan ond Budget The company now adopts the College's business plonning ond performonce review cycle. Business plons are completed onnually and reviewed by the senioT leadership teom ot the tollege. Performance reviews ore completed quarterly ond review oll ospects of the business performonce. The detoiled business plan ond occomponying budget are submitted for opprovol by the Board of Trustees on an onnual basi5. The doy-to-doy running of the company 15 delegated to the Monoging Director, who has the power to act and take decisions, os long os they ore contoined within the plon. Any deviotions from or odditions to the plon hove to receive opprovol from the Boord of Trustees.The Managing DirectOTSubmit5 a Written report detailing progress ond future plannedoctivity to all Board meetings. The Company continues to produce an annual Self-Assessment Report ISARI which is volidoted by the College and opproved bythe ITS Boord of Trustee
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A ¢ompony limited by guorontee TRUSTEES, REPORT Icontinued) FOR THE YEAR ENDED 31 JULY 2021 Our Objectives tsnd ortivities MISSION We provide inclusive services offering training, education and lifelong learning opportunities, the achievement of appropriate qualification5 and sustoinable employment. VISION Our Vision is to be the portner of choice. leoding the way through innovation and excellence. We will achieve this by: Developing o ronge of products to meet the diverse needs of learners. employers ond customers. Ensuring our delivery 15 Cutting edge, personalised ond responsive resulting in successful outcornes. Sharing our success to benefit and develop our locol communities. Ensuring thot we are recognised for what we do. ond the woy thot we do it. Public Benefit Ln pursuonce of the objects set out obove the Compony benefits individuols ond employers in the Barnsley Areo ond the wider community throughout the Yorkshire, Humber ond Midlands region5. The Trustees hove regard io Chority Commission guidance on public benefit when planning strotegy, aims ond octivities. Achievements and performance Key achlevements in 2020121 Extended two European contracts to delNer training ocross the Sheffield City Region ond North Eost Derbyshire. Successfully won o further European controct ond o DWP contract. Retoined Motrix stondard for the quolity of information, advice and guidonce. Retained Skills for Care centre of excellence standard. Achieved 96% on oll odult educotion ond troining pTogrommes. This is 3 yeor positive upward trend Achieved 97% ochievement on ESF subcontrocted provision1600 learning oimsl. Achieved over 70% progression rate into o positive destination. DÈlivÈTed ESFA Adult Educotion contract ollocotion. Achieved 99% achievement on subcontrocted provision with Bornsley College. Introduced new Adult Skills team. CentTolised quolity os o key shored service with Bornsley College. Secured notionol opprenticeship levy contract. Launched new distance leorning ocodemy
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A ¢ompony limited by guorontee TRUSTEES, REPORT Icontinued) FOR THE YEAR ENDED 31 JULY 2021 Learners 2020121 Learners remain central to our focus and purpose. During 2020121 we carried out internal learner survey5. Due to COVID-19 there were no externol ESFA surveys completed on leorners in 2020121. 250 learners responded to our internal learner suNey ond the results are os follows: The overoll satisfaction in the apprenticeship on programmesurveyshowed 95% of learner5 would recommend ITS as a training provider. Other key positive5'. 100% agree to they know how to keep themselves safe at work. 98% agreed they were aware who to contact if they didn't feel sofe. 95% agreed that teaching and learning artivities enable them to make good progress. Employers ond client5 2021Y21 Our employer bose has increosed in 2020121 with the introduction of a newteom and new contracts workin9 with employers ocros5 all aspectsof educotionand training. In totol ITS orecurrently workingwith over 200 employers. An integral port of our success is the effective engogement of employers, whether they ore locol, regional or nationol. Our employer bose hos octively en9aged with us in workforce development, opprenticeships, commercial troining ond pre-employment troining leadin9 to employment. Overall 98% of employers are extremely likely to recommend ITS. Financial Review The overall effects of changes in the sector and cov119 hod an adverse impact on our income, ond olthough costs hove been monoged the overall outcome wos disoppointing. Income of £1.6m ond net income of £0.2m ore lower thon expected prior to the pondemic The compony occessed £31k from the Coronovirus Job Relention Scheme ICJRSI and also £139k from ihe ESFA supplier relief which helped but it wosn't sufficient to cover the loss compored to pre-COVID-19 expectotions. The company set on income budget of £2m for the yeor but fell short of this os businesses restricted spending on training. This and a reduction in the opprenticeship funding accounts for the income loss. The company restricted staff costs and olso the relocotion of premises contributed to cost reduction. The overoll net income of £171k is a small improvement on the budget. This morks significont progress in the componls finoncial monogement in response to income shortfalls. The groupnet liability position hos reduced from E442k in 2019120to £17k. This is a step in the right direction despite the impact of COVID-19. The ESFA finonciol Heolth for the yeor is Sotisfoctory. Financial Statements The financial statements hove been prepored under the historicol cost convention ond in occordonce with Statement of Recomrnended Practite 'Actounting and Reporting by Charities, li55ued in October 20191 and opplicoble United Kingdom occounting stondords including FRS 102 The Finonciol Reporting Stondord applicable in the UK and Republic of Ireland. The movement in funds is shown on the Statementof Financial Activities. The company generated income in excess of expenditure on its unrestricted fund5 of £169,93312020- £49,118). The company's total deficit funds omountedto £17.173 ot 31 July 202112020: £442,1061.
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee} TRUSTEES, REPORT Icontinued) FOR THE YEAR ENDED 31 JULY 2021 Rèsèrves Polity The reserves of the compony ore composed of restricted ond unrestrirted funds. Unrestricted Reserves: The Trustees are committed to building up general reserves to ensure that the core activities of the company will continue into the future. At 31 July 2021 the company has unrestricted reserves deficit of £17,173. Excluding the pension fund deficit of £322.000 the company hos unrestricted fund5 of £304,827. The Trustees are delighted to report significant progress in the redurtion of the unrestricted reseNe5 deficit during 2020121. The reserves of the company ore forecast to increose over the next yeor as the compony increase5 Its focu5 On financial stobility. Restricted Reserves: The composition of, and movement in, restricted reserves is shown in note 12 to the financial statements. Fundraising Policy The company does not undertake anyfundraising activities. The future outlook 2021122 ITS continue to operate under difficult circumstonces with growth being restricted in some areas due to COVID-19. ITS has the platform to grow ond an excdlentteom that wll help ITS drive forwordto be a recognisable nationol training provider providing key workforce developmentsolutions to learner5 ond employers of all size5. This is the plan to grow ITS long term. ITS hove expanded into new morkets to better position for future funded contracts ond to work with a wider geogrophical footprint. Support from Barnsley College has already ollowed ITS to goin new contracts and ITS hove performed exceptionolly well on these so for leoding to grovrth. This growth moving forword will be focused on the Sheffield City Region due to notional chonges to funding regionally ond this will be developed further into new areas in 2020121. The apprenticeship morket is still very unprediclable but the inilial signs of recovery are good which is positive for ITS. Government funding hos chonged significontly overthe post two yeors ond odopting to this change has been o strength of ITS as it is extremely responsive to the morkel. Key priorities over the 2021122 ocademic yeor will be: Sofeguord all our stoff. leorners ond OPPTentices. Continueto improve the finonciol position of ITS ond Smortstyle. Improve the quality of apprenticeship provision ond increase apprenticeship ochievement rates. Deliver oll funded ond non budget controcts ond ollocotions. Gain notionol opprenticeship levy controcts. Goin odditionol funded controcts regionally ond notionolly Support Barnsley College and ossist the delivery of key government priorities os part of the wider group. Continue ond fully implement the integrotion with Bornsleycollege. The key finonciol priorities for ITS ore: Improve operoting performonce to generote surplus of at least IO% of income Achieve o net osset position Improve the ESFA Finonciol Heolth score to Good.
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A ¢ompony limited by guorontee TRUSTEES, REPORT Icontinued) FOR THE YEAR ENDED 31 JULY 2021 Going Concern The group balance sheet show5 net liabilities of £17,17312020: £442,106) and the profit for the year before ortuarial gains wos £169.93312020.. £49.1181. The company has made significont improvement5 to its financial position and is expected to make a profit again in 2021122. The ongoing economic impact of COVID-19 on the apprenticeship market and the commerciol training market is o risk to the compony ochieving its finonciol forecosts. The company 15 delivering training online ond is monitoring the external environment closely. The company has taken advantage of government scheme5 including ESFA supplier relief and the Coronoviru5 Job Retention Scheme and will continue to do so os far as it is eligible. During thi5 time expenditure is minimised ond new stoff recruitment is on hold until income is secured. The going concern assessment considered the company financial operating forecosts and cash flow forecasts to July 2023. The company hos sufficienl cosh funds throu9hout this period. The cash flow is sensltive to deloy5 in cosh receipts ond therefore contoins some risk thot it will not hove sufficient cosh to cover it5 debt. Barnsley College. the parent company is comfortable based on forecasts that it has the obility to support its subsidiory entities and hos confirmed they will financially support the company until ot least July 2023 including support for ITS'S subsidiary Smortslyle Technology Training Limited which hos negotive net a55ets. As such, the Trustees are of the view that, bosed on detailed budgets ond cosh flow forecasts, the group will be able to pay its debts as they fall due and therefore the group is a going concern. Exemptions from disclosure Since the company ond the group qualifie5 as small under section 383. the strategic report required of medium ond large companies under The Componies Act 2006 (Strotegic Report ond Director's Report) Regulations 2013is not required. No seporote Statement of Financiol Actiwties has been presented for the compony olone os permitted by section 408 of the Componies Act 2006. Funds held as custodian trustee on behalf of others The company does not hold any funds os a custodian trustee on behalf of others. Developments We continue to invest heavily in the use of technology both for OUT SUPPOrt services ond for our teoching ond learning. In 2020121 this included investment in online learning iesources, online teaching platforms and online odditionol support plotforms to support our leorners during these challenging times. This is increasingly important for us os COVID-19 continues. ITS continue to be one of the highest performing subcontractors across the whole of the supply chain for The Growth Compony IGCI. We oreworking with them on o new Digitol Skills contTaCt ond some controcts with DWP ond the locol outhority. Whilst commercial training is not a priority for customers, we Ore utilising the Smartstyle customer base to engage withthe levy poying employers, who were not aware of ITSond the apprenticeship provision we delivei. To date, thi5 has led to positive discussions Wlth three additional levy employer5. ITS and Barnsley College continue to work through key oreos of shored services. Key oreos include the ITS website, externol Promotional moterial for employers ond compoigns to generote new business. ITS ore olso due to launch the central on boarding system for apprenticeships in conjunction with Barnsley College.
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A ¢ompony limited by guorontee TRUSTEES, REPORT {continuedl FOR THE YEAR ENDED 31 JULY 2021 Risk Management and Principal Risks The risk monagement system includes on assessment of the greatest risks to the company against financial, operotionol ond student impoct which is designed to protect the company's ossets ond reputotion. A comprehensive review of the risks to which the company is exposed is undertaken and acknowledged in the Boord Assurance Fromework IBAFI. The Board Assurance Framework identifies the key risks, the likelihood of those risks occurring, their potentiol impoct on the college ond the actions being token to reduce ond mitigote the risks ond covers assurance gained. Systems and procedures are identified which mitigate potential impact on the company. In addition to the annual review we will also consider ony risk5 which may arise as o result of a new area of work being undertaken bythe college. The pondemic continues to be the biggest chollenge that ITS ore currently facing. Feedback given durin9 business development activity is that employers have stated their priority is trying to remoin in busine55 and they are reluctant to commit to recruiting an apprentice. This is hoving a big impact on the generation of non-levy busine55 especially. Commercial training budgets hove been cut which hos resulted in customers postponing and cancelling training until at least the end of March 2021. Desplte continuous engagement octivity with the customer database. business opportunities have reduced dramatically which hos had an impoct on the income generotion. The compony continues to access the CJRS ond ESFA supplier relief where possible. In oddition. stoff recruitment Is on hold until new income is secuied. The finoncial position is being monitored and ossessed on a monthly basis. Our historic local Government Pension Scheme administrated by South Yorkshire Pensions Authority ISYPAI shows an octuariol deficit figure of £322k. A reduciion of £243k since July 2020. Although this is o variable figure Idue to the noture of the investment morket and pluslminus shore voluel we hove, under the FRS 102 occounting rules. shown this as a potentiol liability within our balance sheel. We have agreed an annual contribution fee for current scheme members, which is shown in the SOFA. We work closely with SYPA and Grant Thornton our Accountonts. to oscertoin on onnual octuoriol stotement, to ensure we conform ond complywith the FRS and HMRC treatment of multi-employer pensions, scheme. UK Government's agency ESFA continue with their rodicol refomi to apprenticeships, which hos been planned since o review in 2012, and hos resulted in o new register of troining providers. The three chonges included. new stondords which impocts on the current delivery model: an employer levy system which impacts on the funding model- and a new procuremenl system which impacts on current annual contract.
DocuSign Envelope ID: 8C764647-A319-490B-8BB8-5472A8A0BD0C
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15/12/2021
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF INDEPENDENTTRAINING SERVICES LIMITED Opinion We have audited the finoncial statements of Independent Training seICe5 Limited Ithe'porent charitable compony'l and its subsidiary Ithe'group'l for the year ended 31 July 2021, which comprise the Consolidated stotement of financial activities, Consolidated statement of finoncial position, Company statement of financiol position, Consolidated statement of cash flows and notes to the financiol stotements, including a summary of significant accounting policies. The financial reporting framework that hos been applied in their preparation is opplicable law and United Kingdom Accounting Standards, including Financial Reporting Stondard 102; The Financial Reporting Stondord applicoble in the UK and Republic of Irelond (United Kingdom Generally Accepted Accounting Procticel. In our opinion, the financial statements: give a true and fair view of the stote of the group's and porent charitoble company5 affoirs as ot 31 July 2021 and of the group'5 incoming resources and opplicotion of resources, including it5 income ond expenditure for the year then ended; hove been properly prepared in occordonce with United Kingdorn Generally Accepted Accounting Practice. and have been prepored in accordance with the requirements of the Companies Act 2006 and Chorities Act 2011. Bosis for opinion We have been appointed auditor under the Companies Act 2006 and section 151 of the Chorities Act 2011 and report in occord(nce with those Acts. We conducted our audit in accordonce with International Stondards on Auditing IUKI ILSAS IUKII and opplicoble law. Our responsibilities under those standards ore further described in the 'Auditor's responsibilities for the oudit of Ihe financial statements, section of our report. We ore independent of the group and the porent choritable company in accoidonce with the ethical requirements that ore relevont to our oudit of the finonciol stotements in the UK, including the FRC'S Ethicol Stondord, ond we have fulfilled our other ethical responsibilities in occordonce with these requirements. We believe that the oudit evidence we have obtoined is sufficient and oppiopiiote to piovide o bosis for our opinion. Conclusions relating to going concern We ore responsible for concluding on the opproprioteness of the trustees, use of the going concern basis of occounting and, bosed on the oudit evidence obtoined, whether a materiol uncertainty exists reloted to events or conditions thot may cosl significoni doubt on the group's and the porent choritoble company's obility lo continue os o going concern. If we conclude thot o materiol uncertointy exists, we ore required to draw ottention in our report to the related disclosures in the financiol stalements or, if such disclosures are inadequate, to modify the auditor's opinion. Our conclusions Ore bosed on the oudit evidence obtoined up to the dote of our report. However, future events or conditions moy couse the group or porent choritoble company to cease to continue os o going concern. In our evaluotion of the trustees. conclusions, we considered the inherent risks associoted with the group's and porent charitoble compony's business model including effects orising from mocro*conomic uncertointies such os Brexit and Covid-19, we assessed and challenged the reasonableness of estimates made by the trustees ond the reloted disclosures ond onolysed how those risks might offect the group's ond porent choTltoble company's finoncial resources or obility to continue operotions over the going concern period. Bosed on the work we hove performed, we have not identified ony moteriol uncertointies reloting to events or conditions thot, individually oi collectively, may cast significant doubt on the group's ond porent charity's ability to continue as o going concern for o period of ot least twelve months from when the finonciol stotements are authorised foi issue. In auditing the finonciol stotements, we hove concluded that the trustees, use of the going concern bosis of occounting in the preporotion of the finoncial statements is appropriate. The responsibilities of the tTUStee5 Wlth respect to going concern ore described in the 'Responsibilities of trustees for the finonciol stotements, section of this report. io
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc Other information The trustees are responsible for the other information. The other information comprises the information included in the Trustees, report, other than the financial statements and our auditor's report thereon. Our opinion on the finoncial stotements does not cover the other informotion ond, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the finoncial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the finonciol statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or opparent material misstatements, we are required to determine whether there is o 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 fflisstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other motters prescribed by the Componies Art 2006 In our opinion, bosed on the work undertaken in the course of the oudit: the informotion given in the Direttor5' Report. prepared for the purpose of compony law, included in the Trustee5' Report for the finonciolyeor for which the finonciol stotements ore prepored is con515tent with the financiol Statements. the Directors, Report included in the Trustees, Report has been prepared in accordonce with applicable legol requirements. Motter on which we ure required to report under the Companie5 Art 2006 In the light of the knowledge ond understanding of the group ond porent charitable compony ond its environment obtoined in the course of the oudit, we have not identified material misstatements in the Strategic Report or the Directors, Report included in the Trustees. Report. Matters on which we ore required to report by exception We have nothing to report in respect of the following motters where the Companies Act 2006 ond Charities Act 2011 requires us to report to you if, in our opinion- odequate and sufficient accounting records hove not been kept by the parent charitable company, or returns odequate for our audit have not been received from branche5 not V15ited by us,. or the porent choritable company's financial stotements ore not in agreement with the accounting records and returns: or certain disclosures of trustees, remuneration specified by law are not made.. or we have not received all the informotion ond explonotions we require for our audit: or the trustees were not entitled to prepore the finonciol stotements in occordonce with the smoll componies regime and take advantage of the small companies exemplion from the requirement to prepare a strategic report. Responsibilities of the trustees for the finonciol stotements As explained more fully in the Trustees, Responsibilities Stotement os set out on poge 9, the trustees (who are olso the directors of the choritoble company for the purposes of compony lowl are responsible for the preparation of the financial statements and for being satisfied that th give a true ond fail view, and for such internal control os the trustees determine is necessory to enable the preporotion of finonciol stotements thot ore free from moteriol misstotements, whether due to fraud or error. In preparing the finonciol statements. the tTUStees ore responsible for assessing the group's ond the porent choritoble compony's ability to continue os o going concern. disclosing, as applicoble, motters reloted to going concern ond using the going concern bos15 of occounting unless the trustees either intend to liquidate the group or parent thaiitable company or to cease operation5, or hove no realistic olternative but to do 50. li
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assuronce about whether the financial statements a5 a whole are free from material misstaternent, whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reosonable assurance is o high level of OSSUTonce but is not o guarantee thot an audit conducted in occordance with ISAS IUKI will always detect a materiol misstotement when it exists. Misstotements 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 token on the basis of these financial 5totemerits. A further description of our responsibilities for the oudit of the financial statements is located on the Financial Reporting Council's website at= www.frc.org.uklouditorsresponsibilities. This description forms part of our auditor's report. Explonotion os to what extent the audit wos considered copuble of deterting irregulorities, including froud Irreguloritie5, including froud, are instonces of norpcomplionce with lows and regulation5. We design procedures in line with our responsibilities, outlined above, to detect moterial misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit. there is an unavoidable risk that moteriol mi55totements in the finonciol statements may not be detected. even though the oudit is properly planned and performed in accordance with the ISAS IUKI. The extent to which our procedures ore copoble of detecting irre9ulorities. including fraud is detoiled below: We obtained an understanding of the legol and regulatory fromeworks that are applicable to the corporation. and the sector in which it operoles. We determined thot the following laws and regulations were most significont. finonciol reporting legislotion (Charities SORP and United Kingdom Generally Accepted Accountin9 Proctice. including Finonciol Reporting Standard 1021: regulotory environment lincluding the ESFA funding rules 2020 to 20211; and The Charities Act 2011 and the Companies Act 2006. The engagement team remained alert to any indicotions of froud and non-compliance with laws and regulations throughout the audit: We understood how the group ond parent compony is complying with these legol ond regulotory frameworks by making inquiries of monogement, internol oudit. and those chorged with governonce. We enquired of management and those charged wilh governance whether there were any inslance5 of non-compliance with laws ond regulations, or whether they hod any knowledge of actual or suspected fraud. We corroboroled the results of our enquiries through our review of boord minutes ond popers provided to the Audit Committee, and through our legal and professional expenses review. To ossess the potential risks of moteTiol misstotement. includin9 how o fraud might occur. we obtoined an understanding of: The group and porent compony's operotions. including the nature of its sources of income, expected financiol stotement disclosures ond risks thot moy result in risk of material misstotement,. ond The group ond porent compony's control environment including the adequocy of procedures for authorisation of transoctions We ossessed the susceptibility of the group and porent compon$ finoncial stotements to materiol misstotement, including how froud might occur. Audit PToceduTes perform by the engagement team included: Evaluating the piocesses and controls established to address the risks related to irregularities and fraud. Testing monuol journol entries, in porticulor journol entries reloting to management estimotes ond entries determined to be IoTge or reloting to unusuol transactions. Chollenging ossumptions ond judgements mode by monogement in its significont occounting estimotes,. Identifying and testing related party tronsoctions. and Completion of audit procedures to conclude on the compliance of disclosures in the finonciol stotements with applitable financial reporting requirements. 12
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc These oudit procedures were designed to provide reasonable assurance that the finonciol statements were free from froud or error. The risk of not detecting o moterial misstatement due to froud is higher thon the risk of not detecting one resulting from error ond detecting irregulorities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financiol statements, the less likely we would become aware of it. We assessed the opproprioteness of the collective competence and capobilities of the engagement team, including consideration of the engogement team's knowledge and understanding of the industry in which the group and parent tompony operates in, its understanding of. and practical experience with audit engagements of o similor nature ond Complexity through oppropriote training and participation. We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud, or non-compliance with laws and regulations throughout the audit. Use of our report This report is mode 501ely to the charitable company's members and trustees, 05 o body, in accordonce with Chopter 3 of Part 16 of the Companies Art 2006 and section 154 of the Choritie5 Act 2011. Our audit work hos been undertaken 50 that we might state to the charitable company's member5 and trustee5 those matters we ore required to Stote to them in on ouditor's report ond for no other purpose. To the fullest extent permitted by law, we do not accept or a55ume responsibility to anyone other thon the charitable company ond its members ond trustees os o body, for our audit work. for this report. or for the opinions we hove formed. &tritr frtomto IAr LLe Deborah Watson Bsc (Horbs) FCA Senior Statutory Auditor for ond on behalf of Grant Trnton UK LLP Statutory Auditoi, Chartered Accountants Leeds Grant Thornton UK LLP is eligible to act as an auditor in tems of section 1212 of the Companies Act 2006 16/1212021 13
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED IA ¢omp0nylimit by guaronteè CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND LXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY2021 Unrestricted funds Restricted funds Total funds Totol Funds Re5toted 2020 2021 2021 2021 Note INCOME FROM: Charitable activities 1.303,965 169,912 1,473,877 1,619,711 Other troding activities 97,998 97,998 181.507 Investments Other income 457 TOTAL INCOME 1401967 169 912 1571879 1801675 EXPENDITURE ON: Choritoble octivities 1.147,549 139,211 1,286,760 1,523,856 Othertrading ortivities 83,610 30,701 114,311 228,663 TOTAL EXPENDITURE 1,231,159 169,912 1,401,071 1,752,519 Net income before tox(rtion 170,808 170,808 49,156 Taxation 875 875 38 NET INCOME BEFORE TRANSFERS 169,933 169,933 49,118 NET INCOME BEFORE OTHER RECOGNISED GAINS AND LOSSES Actuarial goins on defined benefit pension 16 schemes NET MOVEMENT IN FUNDS 169,933 255,000 424,933 169,933 255,000 424,933 49,118 26,000 75,118 RECONCILIATION OFFUNDS: Totol funds brought foTword TOTAL FUNDSCARRIED FORWARD (442,106) 117,173) (442,106) 117,173) 1517,2241 1442,1061 The notes on pages 18 to 40 form port of these financiol statements. The 2020 restatement is contained in note 19. 14
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Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED IA ¢omponylimited by guorontee CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY2021 2021 2020 Note Cash flowsfrom operating activities Net cash from operating octivities Cash flowsfrom investing activities: 14 46.703 1248.5001 Sole proceeds Purchase of tangible fixed assets Net cash used in investing artivities 669,732 13,8121 665.920 Cosh flows from financing artivitie& Repayments of borrowings Interest on borrowings Tox paid Net cash used in financing activities 17,3221 11.0471 1875) 1411,5821 11,8101 (9244) 1413.3921 Change in cash and cash equivalents in the year 37,459 4,028 Cash and cash equivolents brought forword 67,322 63,294 Cash and cash equivalents carried fOard 15 104,781 67,322 The notes on pages 18 to 40 form part of these financial stotements. 17
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company lirnited by guarantee) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ACCOUNTING POLICIES 1.1 Basis of prèparation of finantial statements The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Proctice applicable to chorities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republicof Ireland IFRS1021 (effective l January 20191- Ichorities SORP IFRS 10211, the Finonciol Reporting Stondord opplicoble in the UK and Republic of Irelond IFRS 1021 andthecomponies Art 2006. Independent Training seiCe5 Limited meets the definition of o public benefit entity under FRS 102. A55ets ond liabilities ore initially recognised ot historical cost or tron5QCtion volue unle55 Otherwise stated in the relevant accountin9 policy. The &atement of financial activities ISOFAI ond stotement of financial position consolidote the financial statements of the company ond its subsidiary undertoking. The results of the subsidiary oreconsolidated on a line by line basi5. No separate SOFA has been presented for the company alone os permitted by section 408 of the Componies Act 2006. 1.2 Compony status The company is a company limited by guarantee. The members of the compony ore the Trustees nomed on page l. In the event of the company being wound up. the liobilily in respect of the guaranteeis limited to £1 per member ofthecompany. 1.3 Going concern The group balance sheet shows net liobilities of £17,17312020: £442,106) ond the profit for the year before octuariol gains wos £169,93312020.. £49,118). The compony hos mode significant improvements to its financiol position ond is expecled to make o profit again in 2021122. The ongoing economic impoct of COVID-19 on the opprenticeship moTket ond the commercial training morket is a risk to the compony achieving its finoncial forecosts. The compony is delivering training online and is monitoring the external environment closely. The company has taken advantage of government schemes including ESFA supplier relief and the Coronavirus Job Retention Scheme and will continue to do so as far os it is eligible. During this time expenditure is minimised and new stoff recruitment is on hold until income is secured. The going concern assessment considered the compony financial operating foreca&s and cosh flow forecosts to July 2023. The company hos sufficient cosh funds throughout this period. The cosh flow is sensitive to delays in cash receipts and therefore contains some risk that it will not have sufficient cosh to cover its debt. Bornsley College, the parent compony is comfortoble based on foiecosts thot it has the ability to support its subsidiory entities ond hos confirmed they will finonciolly support the compony until ot least July 2023 including support for ITS'S subsidiory Smortstyle Technology Training Limited which has negotive net assets. As such, the Trustees ore of the view thot. bosed on detoiled budgets and cash flow forecasts, the group will be able to pay its debts as they fall due and therefore the group is a going concern. 18
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company lirnited by guarantee) NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ACCOUNTING POLICIES (continued) 1.4 Income All income is recognised once the compony hos entitlement to the income. it is proboble thot the income will be received and the amount of income receivable can be measured reliably. Government funded grants and amounts from the Growth Company are accounted for under the accruals model as permitted by FRS 102. Funding body recurrent grants ore measured in line with best estimote5 for the period of what is receivable and dependent on the particular income stream involved. Income from other trading ortivities 15 recognised upon the roising of sales invoices or upon receipt of cosh from eligible government schemes. Where income is received for o specific purpose which is defined the income and Qssociated expenditure is shown within restricted funds. During the yeor support received under the Coronavirus Job Retention Scheme and ESFA Supplier Relief hos been recognised under the performonce model. For legacies, entitlement is token os the earlier of the date on which either.. the company is aware that probate hos been granted, the estote hos been finolised ond notification hos been mode by the executorlsl to the Trust that o distribution will be made, or when o distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can bemeosured reliably and the company has been notified of the executor's intention to make o distribution. Where legocies hove been notifiedto the company, or the compony is oware of the gronting of probote, ond the criteria for income recognition have not been met, then the legocy is treoted os o contingent asset and disclosed if materiol. 1.5 Expenditure Expenditure is recognised once there is o legol or conslructive obligation to transfer economic benefitto a third party, it is probable that a transfer of economic benefits will be required in settlement ond the omount of the obligation can be meosured reliobly. Expenditure is clossified by octivity. The costsof eoch octivity ore mode up of the total of direct costs ond shared costs. including support costs involved in undertoking each octivity. Direct costs attributoble to a single octivityore ollocoted directl0 thot octiwty. Shored costs which contribute to more than one octivity ond support costs which are not ottributoble to a single octivity ore opportioned between those octivities on o bosis consistent withthe use of resources. Central staff costs are ollocated on the basis of time spent, and depreciation charges ollocoted on the portion of the osset's use. Support costs are those costs incurred directly in support of expenditure on the objerts of the company ond include project monogement carried out ot Heodquarters. Governonce costs ore thosdncurred in connection with administration of the company and complionce with constitutional and statutory requirements. Choritoble octivities ond Governonce costs ore costs incurTed on the compony's educotionol operations, including support costs ond costs relating tothe governonce of the componyapportionedto charitoble octivities. All expenditure is inclusive of irrecoveroble VAT. 1.6 Basis of consolidation The financiol statements consolidate the occounts of Independent Training Services Limited and oll of its subsidiary undertakings I'subsidiarie5'1. The company hos token odvontage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Income ond expenditure occount. ITS company made a surplus of £441,2487for the financial year ended 31 July 2021 (2020- £148,112). 19
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 JULY 2021 ACCOUNTING POLICIES (continued) 1.7 Turnover Turnover comprises revenue recognised by the company in respert of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. 1.8 Tangible fixed ossets and depreciation All assets costing more than £l.000 ore copitoli5ed. A review for impoirment of a fixed asset is curried out if event5 or chonges in circumstances indicate thot the carrying value of ony fixed Osset moy not be recoverable. Shortfalls between the carrying value of fixed ossets and their recoverable omounts ore recognised a5 impairments. Impairment losses ore recognised in the Statement of financial uctivities. Tangible fixed assets are carried ot cost. net of depreciotion and any provision for impairment. Depreciation 15 provided at rates calculated to write off the cost of fixed ossets. less their estimated residual value. over their expected useful lives on the following boses: Fixtures and fittings Computerequipment 20%- 25% Straight line 33.3% Stroight line 1.9 Investments Investments in subsidiaries are volued ot cost le55 provision for impairment. 1.10 Interest receivable Interest on funds held on deposit is included when receivoble ond the omount con be meosured reliably by the company; this is normally upon notificotion of the interest paid or payoble by the Bank. 1.11 Debtors Trode and other debtors ore recognised ot the settlement omount ofter ony trode discount offered. Prepayments are valued at the amount prepoid net of onytrade discounts due. 1.12 Cosh (rt bonkond in hand Cosh ot bonk ond in hond includes cosh ond shortterm highlyliquid investments with o short moturity of three months or less from the dote of ocquisition or opening of the deposit or similoroccount. 1.13 Liabilities ond provisions Liabilities are recognised when there is an obligation at the Bolance sheet date as a result of a past event, it is probablethat a tronsfer of economic benefit will be required in settlement, andthe omountof the settlement can be estimated Teliably. Liabilities are recognised at the amount thatthe companyanticipate5 It will pay to settle the debt or the omount it hos received os odvonced payments for the goods or services it must provide. Provisions are measured at the best estimote of the amounts required to Settle the obligation. Where the effect of thetime value of money is material, the provisionis based on the present value of those amounts, discounted ot the pre-tax discount Tote thot reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 20
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ACCOUNTING POLICIES (continued) 1.14 Financial instruments The company only has financiol assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial in5trument5 are initially recognised at tran5artion value and subsequently measured ot their settlement value with the exception of bank loans which are subsequently measured at omortised cost using the effective interest method. 1.15 Oeferredtaxation Full provision is made fordeferred tax assets and liabilities arisingfrom all timing differences between the recognition of goins ond losses in the financial 5totement5 ond recognition in the tox computotion. A net deferred tox asset is recogni5ed only if it con be regarded as more likelython not that there will be suitable taxable profits from which the fulure reversal of the underlying timing differences can be deducted. Deferred tax assets ond liabilities ore colculated ot the tox rates expected to be effective ot the time the timing differences ore expected to reverse. Deferredtox ossets and liabilities are discounted. 1.16 Pensions The company operotes a defined contribution pension scheme ond the pension chorge represents the amount5 poyable by the compony to the fund in respect of the yeor. The company operates o defined benefits pension Scheme ond the pension charge is based on a full octuariol valuation doted 31 March 2016. updated to 31 July 2021 by the octuory. More detail of the scheme con be found in Note 16. 1.17 Fund accounting Generol funds ore unrestricted funds which ore ovailoble for use ot the discretion of the Trustees in furtheronce of the generol objectives of the compony ond which hove not been designated for other purposes. Designoted funds comprise unrestricted funds thot hove been set oside by the Trustees for particular purposes. The aim and use of each designated fundis setout in the notes to the financial statements. Restricted funds are funds which ore to be used in occordonce with specific restrictions imposed by donors or which hove been Toised by the compony for porticulor purposes. The costs of roising ond odministering such funds Ore chorged ogoinst the specific fund. The oim and use of eoch restricted fund is set out in the notes to the financial statements. 21
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 ACCOUNTING POLICIES (continu) 1.18 Criticol occounting estimates and areas of judgernont Estimates and judgements are continually evaluated ond are bosed on historical experience and other factors, including expectotion5 of future events thot ore believed to be reasonable under the circumstonces. Critical occounting estimates and assumption5'. The cornpony ond group make5 estimates and ossumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual result5. The estimates ond 055umptions thot hove o significant risk of cousing a rnoteriol adjustment to thecarrying omount5 of assets and liabilities within the next financial yeor are disCUSsed below. Critical ore05 of judgment.. The useful economic lives for the omortisation of goodwill ond for the depreciotion of tangible fixed ossets. The actuariol assumptions used in the calculation of the defined benefit pension liability. The appropriateness of the carrying value of tangible fixed ussets and the need for impoirment. if nece550ry. Local Government Pension Scheme The present volue of the Locol Government Pension Scheme defined benefit liobility depends on a number of factors thot are determined on on octuoriol basis using o variety of ossumptions. The assumptions used in determining the net cost lincomel for pensi5 include ihe discount rate. Anychanges in these ossurnption5, which ore disclosed in note 19, will impact the corrying omount of thepension liability. Furthermore, o roll forword opproach which projects results from the lotest full octuariol voluation performed at 31 March 2016 has been used bythe actuary in voluing the pensionsliability at 31 July 2021. Any differences between the figures derived from the roll forward approoch ond a full octuoriol voluation would impoct on the carrying omount of the pension liobility. 1.19 Restatement A review of debtors and occrued income identified thot income hod been incorrectly recognised in 2020 thereby overstoting the income and debtors due to Smartstyle Technology Troining Limited and the Group. As o result, the 2020 figures hove been restated to reduce the income OCCTUOI by £28k ond to debit the Statement of Comprehensive Income for the overstated revenue. 22
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 INCOME FROM CHARITABLE ACTIVITIES Unre5trirted funds 2021 Restrirted funds 2021 Totol funds 2021 Totol funds 2020 ESFA- Non-levy I levy income ESFA- Learner Responsive Other 395,037 214,962 693,966 1,303,965 139.211 534,248 214,962 724,667 1,473,877 995,495 342,876 281,340 1,619,711 30,701 169,912 Total 2021 1,303,965 169,912 1,473,877 The company received £139,21112020: £31.2801 in relotion to the ESFA supplier relief fund in 2021. Thi5 15 included within ESFA- Non-levyllevy income. There is £30,70112021Tr. £6.5451 of Coronavirus Job Retention Funding contoined within the other trading activities income. DIRECT COSTS Total 2021 Total 2020 Administration expenses Educotionol expenditure ond ossociated recreational costs Woges ond salaries National insurance Staff Pension costs 45,049 408,162 590,765 55,140 29,669 74,966 377.342 747.181 60,815 27,554 1,124785 1,287,858 Total 2021 1,124785 23
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 SUPPORT COSTS 2021 2020 Premises costs Office odministrative costs Computer and software costs Depreciation and amortlSOtion Bonk chorges Bod debts Loon interest Pension interest 43,934 S7,678 19,665 21,009 1,488 4,154 1,047 9,000 157,975 37,548 122,314 23,228 28,028 2,030 9.040 1.810 12,000 235,998 Total 2021 157,975 NET INCOMEIIEXPENDITURE) This is stated after chorging: 2021 2020 Depreciation of tongible fixed ossets:_ owned by the choritoble group Operating leose rentals 21,304 43,190 28,028 30.943 During the year, no Trustees received any remuneration12020- ENILI. During the year. no Trustees received any benefits in kind12020 - £NILI. During the yeor, no Trustees received ony reimbursement of expenses12020 - £NILI. AUDITORS'REMUNERATION 2021 2020 Fees poyoble to the compony's ouditor for the oudit of the group onnuol occounts 14,000 12,000 The audit services were provided by Grant Thornton UK LLP, Leeds. NorFaudit related fees are boine by the porent company, Barnsley College. 24
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 STAFF COSTS Staff costswere as follows: Group 2021 Company 2021 Group 2020 Cornpany 2020 Woges and solorie5 Sociol security cost5 Other pension costs 663,983 58,412 30,624 591,765 55,140 29,669 879,198 73,460 30,475 747,181 60,815 27,554 753,01 .574 5.55 The average number of persons employed by the Group during the yeor wos os follows: 2021 No. 2020 No. Administration Teoching Management 14 20 25 30 Key management personnel Key management personnel ore those persons having authority ond responsibility for planning. directing ond controlling the activilies of the Company. During the yeor the total omount of remuneration ond benefits received by key management personnel wos £65.00012020: £121.5381. The number of key mano9ement personnel ond other staff who Teceived onnual emoluments, excluding pension contributions and employer's nationol insuronce but including benefits in kind, in the following ranges was.. 2021 No. 2020 No. In the bond £60.001- £65,000 The Monoging Director is the highest poid member of stoff. Their remunerotion received in the yeor is os follows: 2021 £'ooo 2020 £'ooo Solaries - gross of salary sotrifice ond woived emoluments Employers Notional Insurance 65 56 73 20 93 63 io 73 Pension contributions Total emolurnents 25
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A tompany limited by guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED31 JULY 2021 TANGIBLE FIXEDASSETS Fixtures and fittings Computer equipment Totol Group Cost At l August2020 Di5P0501s Additions 283,536 270.365 553.901 283.536 270,365 553,901 At l August 2020 Disposals Chorge for the year 264,208 258.727 522.935 12,116 9,188 21,304 At31July2021 276,324 267,915 544,239 Net bookvalu• At31July2021 At 31 July2020 19,328 11,638 30,966 Fixtures and fittings Computer equipment Total Chority Cost At l August 2020 Disposals Additions At 31July2021 Depreciotion At l August 2020 Disposals Charge forthe yeor At31July2021 283,536 269,481 553.017 283,536 269,481 553,017 264.208 258,531 522,739 12,116 276,324 8,893 267,424 21,009 543,748 Net bookvolue At 31July2021 At31 July2020 7,212 2,057 9,269 19,328 10,950 30,278 26
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company lirnited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 FIXED ASSET INVESTMENTS Subsidiaryundertakings The following were subsidiary undertakings of the compony. Nome Smartstyle TechnologyTroining Limited Registered office gddress: Queens Court, Regent Street. Bornsley, England, S70 2EG. Holding loo% The oggregate of the share capital and reseNes os ot 31 July 2021 ond of the profit or loss for the yeor ended on that date for the subsidiary undertakings were as follows: Aggregate of share copital and reserves Nome Profitllloss) SmartstyleTechnologyTraining Limited 1281.966) (16 3981 Shares in group undertakings Company At l August 2020 and 31 July 2021 1,000 27
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company lirnited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 DEBTORS Group 2020 Restated Compony 2020 2021 2021 Trade debtors Amounts owedby group undertokings Prepayment5 ond occrued income 126,655 43.292 113,303 303,532 209,103 625,938 41,186 265,534 131,227 437,947 209,103 335,758 136,425 179.717 10. CREDITORS: Amountsfalling due within oneyear Grou Com 2021 2020 2021 2020 Finance leose Trode creditors Amounts owedto group undertakings Other taxation ond sociol security Other creditors Accruals ond deferred income 7,322 63,526 7,322 58,189 64,813 12,627 19,165 7,407 41.362 60,259 10,077 13,082 7,407 41,362 132,187 33.010 754 50.499 32,781 45,595 143,887 145,374 155.111 11. FINANCIAL INSTRUMENTS 2021 2020 Restated Financial assets meosured at amortised cost 340,539 138,690 224,402 152,831 Financial liabilities measured at amortised cost Finonciol ossets meosured ot omortised cost comprise trode ond other debtors and occrued income. Financial liabilities meosured at omortised cost comprise trade ond other Creditors, occruols and bankloans. 28
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 CONSOLIDATED STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENTYEAR Balance at Balanceat l August 2020 Restated Transfer Gainsl 31 July Income Expenditure Taxotion inlout (Losses} 2021 General Funds Generol Funds Pension reserve Other General Funds 122,895 1,401,967 11.219.159) 1875) 304,828 (565,0001 {12.0001 255,000 1322,0001 iii (i) Total (442,106) 1,401,967 {1231,159) 1875) 255,000 (17,1731 Unrestr'd Fund5 (442,106) 1,401,967 11,231,159) 1875) 255,000 (17,173) Re5trictedfunds CJRS grant 30.701 130.7011 ESFA 5upp' Relief 139.211 1139.2111 169,912 (169,912 (1,401,071) Total funds (442,106) 1,571,879 1875) 255,000 117,1731 Designoted funds had no opening bolance ond no activity during the yeor. 29
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company lirnited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 12. STATEMENT OF FUNDS (continued) CONSOLIDATED STATEMENT OF FUNDS- PRIOR YEAR RESTATED Balance (rt l August 2019 Incorne Expenditure Taxation Transfers inlout Goinsl (Losses) Balance at 31 July 2020 Designoted funds Leorner Support Trovel 4.870 14.8701 Learner Support Resource 6.481 16.4811 11,351 111.3511 General funds General Funds 27,426 1,801,675 11.738,5191 1381 32,351 122,895 Pension reserve 1577,0001 114.0001 26,000 1565,000) Other General funds iii (i) Total (549,5751 1,801,675 11,752,519) 138) 32,351 26,000 (442,106 Unrestr'd fund (538,2241 1,801,675 11,752,519) 138) 21,000 26,000 (442,106 Restricted funds App'ship grant 21,000 121,000) 21,000 121,0001 Total of funds (517,224) 1,801,675 11.752.519) 138) 26,000 (442,106) 30
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 12. STATEMENT OF FUNDS (continued) CONSOLIDATED SUMMARYOF FUNDS- CURRENT YEAR Bolance ot I Au9USt 2020 Income Bolon¢e ot 31 July 2021 Tronsf¢rs Golnsl inlout ILoss¢sl Expenditure Toxotion Generol funds 1442,1061 1,401,967 11231,1591 18751 255.000 117,1731 1442.1061 1,401,967 11231,1591 18751 255,000 117,1731 RestTlCted funds 169,912 (169,9121 1442.106) 1.571.879 (IhOl.071) 1875> 255,1)00 117,1731 CONSOLIDATED SUMMARYOF FUNDS- PRIOR YEAR Balonceat l August 2019 Income Tronsfers Goin Balance at 31 July 2020 Restated Expenditure Taxotion inlout (Losses) Desi9noted Jnds 11,351 111.3511 Generol funds 1549,5751 1,801.675 11.752.519) 1381 32,351 26,0 1442,106) 1538,2241 1,801.675 11.752,5191 1381 21,000 26,000 1442,106) Restricted funds 21,000 121,0001 1517,224) 1.801.675 (1.752,519> 138 26,0(M) 1442.106) 31
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 13. ANALYSIS OFNET ASSETS BETWEEN FUNDS ANALYSIS OFNET ASSETS BETWEEN FUNDS-CURRENTYEAR Unrestricted funds Restricted funds Total funds 2021 2021 2021 Tongible fixed assets Current assets Creditors due within one year Creditors due in more than one year 9,662 440.539 1145.3741 1322.0001 9,662 440,539 1145.3741 1322.0001 117.1731 117,1731 ANALYSIS OFNET ASSETS BETWEEN FUNDS- PRIOR YEAR Unrestricted fund5 2020 Restricted funds 2020 Total funds 2020 Intongible fixed ossets Tongible fixed ossets Current ossets Creditors due within oneyeoi Creditors due in more than one year Provisions for liabilities and charges 30,966 247,039 1155.1111 30,966 247,039 1155,1111 1565,0001 1442,1061 1565,0001 1442,1061 32
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 14. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES Group 2020 Restoted 2021 Net income for the yeor105 per Statement of Financiol Artivitiesl 169,933 49,118 Adju5tmentfor Depreciotion charge5 Loss on disposol of fixed assets Tax charge Ilncreoselldecre05e in debtor5 Decreose in creditors Interest costs Pension costs Net cosh from operating octivities 21,304 28,028 47,127 875 38 (156,0411 103.126 12,415) 1491,7471 10.047 13,810 3,000 2,000 46,703 1248,5001 15. ANALYSIS OFCASH ANDCASH EQUIVALENTS Group 2021 2020 Coshinhond 104,781 104 781 67,322 Totol 33
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 16. PENSION COMMITMENTS The group operates a defined contribution pension scheme where the assets of the scheme are held separate to those of the group in independently administeThd funds. The total expense for the year was £33,000 12020: £40,000). The group participotes in the funded defined benefit pension scheme operated by South Yorkshire Pensions Authority.The assets of the scheme ore held in separate funds administered by SYPF. The totalcontribution5 mode for the year ended 31 July 2021 were £26.932, of which employer's contribution5 totolled £20,497 and employees, contributions totolled £6.435. The agreed contribution rates for future years are 28.8% together with sums totalling £2,100 to be paid before 31 March 2022 to fund the past service deficit. The goin on the scheme's assets during the yeor wos £278,00012021Tr. £22.00010s5). being 12.8%12020:_6.7%1 of the year end ossets. Principal actuarial assumptions at the statement of finoncial position date (expressed os weightedoverage51: 2021 1.60% 2.60% 2.60% 2.60% 2020 1.50% 2.30% 2.30% 2.30% Discount rote at 31 July CPI inflation rote Future salory increases Future pension increases The current mortality ossumptions include sufficient ollowonce for future improvements in mortality rates. The ossumed life expectotions on retirement oge 65 are: At 31 July At 31 July 2021 2020 Years 21.3 24.3 21.8 25.3 years 21.2 24.2 21.8 25.3 Retiring todoy Moles Femoles Males Femoles ftetlng In 20yeo The ossets inthe scheme were: Foir value at Foir value at 31 July 2021 31 July 2020 Equities Governmentbonds Otherbonds 1.045,000 305,000 166,000 192,000 39,000 431,000 2 178,000 882,000 298,000 170,000 160,000 78,000 321,000 1909,000 Property Cash I liquidity Other Total marketvolue of assets 34
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited byguaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 16. PENSION COMMITMENTS (Continu) The actual gain on scheme assetswas £278,000 (2020- £22,O¢XI loss). The omounts recognised in the Stotement of finonciol octivities ore os follows: 2021 2020 Current seNice cost 24,000 28,000 Interest cost on pension scheme obligotions 9,000 12,000 Totol 33,000 40,000 Movement in net defined benefrt liability duringyear 2021 2020 £'ooo £'ooo Net defined benefit Iliabilityllosset in scheme at l August Movementin yeor- 1565,000) 1577,0001 Current service cost Employer contributions Net interest on the defined liability Actuariol goin Net defined benefrt liability at 31 July 124,0001 128,0001 21,000 26,000 19,000) 112,0001 255,000 26,000 1322,000) 1565,0001 Movements in the present volue of the defined benefit obligotion were os follows: 2021 2020 Opening defined benefit obligotion Interest cost Contributions by scheme porticiponts Current service cost Benefits paid Aduoriol lossÈsllgoins} 2,474,000 37,000 6,000 24,000 164,000) 23,000 2,545,000 54,000 6,000 28,000 37,000 1196,0001 Closing defined benefit obligation 2,500,000 2,474,000 35
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 16. PENSION COMMITMENTS (continued) Chonges in the foir volue of scheme ossets were 0$ follows: 2021 2020 Opening fair value of scheme assets Expected return on assets Actuarial gainslllosses) 1,909,000 28,000 278,000 1,968,000 42,000 1170,0001 Contributions by employer Contributions by scheme porticiponts Benefit5 paid 21,000 6,000 164,0001 26,000 6,000 37,000 2,178,000 1,909,000 Amounts forthe current and previous period ore os follows: 2021 2020 Defined benefit obligation SchemeassetS 12,500,000) 2,178,000 12,474,000) 1,909,000 Deficit 1322,000) 1565,0001 Experience odjustments on scheme liobilities Experience odjustments on scheme assels 152,0001 1187,0001 Sen51tlvltyonolys55 Dlsclosure Item Centrol +0.1% +0.1% p.o. Inflotlon +O.I%p. l year Incr In +1% -1% dSscount growt chonge In 2020121 exp•rtoncy Investment Tetums chonge In 2020121 Investment returns rote 2.500 2,463 2.537 2.584 2,500 2,500 Assets 12,1781 12,1781 12.1781 12,1781 12,1781 12,2001 12,1561 Deficitllsurplusl Projected Servicecost for nextyeor Projected Net interest Costfor next yeor 322 285 3S9 322 406 300 344 25 25 25 25 26 25 25 36
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 16. PENSION COMMITMENTS (continued) Guoront*ed Minimumpension Defined benefit pension schemes will be affected bythe ultimate resolution of the equalisation of benefits for men ond women in relation to Guaranteed Minimum Pension provisions. The method of equalisation has the poteritiol to increose the Compan$ pension liobilities in respect of the South Yorkshire Pension Fund, however it is unclear how this would impact the fund given ongoing legal questions being addressed by HM Treasury and the fund actuary has colculoted no estimated liability. Transitionol Protection Arron9ements (Mccloud) Following the loss of a court case (the Mccloudjudgementl which found thot transitionol protections put in place when two public sector pension schemes were reformed were age discriminatory, the government committed in July 2019 to seekin9 0 remedy across all public sector schemes. The Compony's pension liabilities in respect ofthe South Yorkshire Pension Fund hove increosed due to this although the method of remedy ond hence the amount of the increose in liobilities is not yet known. The fund octuory calculated an opproximote estimoted liobilr(yof nil. Chonges tothe estimated liability in 2020121 hove been recognised through octuorial gainsl losses. Widower Benefits (Goodwin) Following o recent Employment Tribunol ruling thot a femole member in an opposite sex marriage is treated less fovourobly than a female in o some sex morriage or civil portnership, and thot treotment omounts to direct discriminotion on the grounds of sexuol orientotion, Ihe government onnounced in July 2020 that it believed changes would be required to oll public sector schemes with similor orrongements. For the Compony, this will increase the liobility in respect of the South Yorkshire Pension Fund. but no ollowance hos been made in the occounting figures os it is expected that the impact on the liabilities will be immoteriol and there is currently insufficient data ovailoble to estimate a cost. 37
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 JULY 2021 17. OPERATING LEASE COMMITMENTS At 31 July 2021 the total of the group's future minimum lease poyments under non-cancellable operating leases wo5: Land and buildings Other Group: 2021 2020 2021 2020 Amounts poyable Within l year Between l and 5 yeors 32,400 8,100 34.916 40.500 554 554 Total 40,500 75,416 554 554 At 31 July 2021 the choritable company had annual commitments under non-cancelloble operating lease5a5 follows: Charitable company Amounts payable: 2021 2020 Within l year 8etween l ond 5 years Total 32,400 8,100 32,400 40,500 40,500 72,900 18. ULTIMATE PARENT COMPANY The ultimote controlling party is Barnsley College, a corporation estoblished under the Further ond Higher Education Act 1992 ond is on exempt charity for the purposes of Part 3 of the ChoTlties Act 2011. The consolidated occounts are available on the College's website or on request from Barnsley College, Church Street, Barnsley, S70 2AX. 38
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 19. 2020 RESTATEMENT CONSOLIDATED STATEMENT OF FINANcL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT 2020 RESTATEMENT FOR THE YEAR ENDED 31 JULY 2021 Original Income corrertion Totol Fund5 Restated 2020 2020 INCOME FROM: Choritoble uctivities 1.619,711 1,619.711 Other trading activities 209,953 181.507 Investments Other income 457 457 TOTALINCOME 1,830 121 128 4461 1801,675 EXPENDITURE ON: Choritable octivities 1.523,856 1,523,856 Othertrading octivities 228,663 228.663 TOTALEXPENDITURE 1,752.519 1,752,519 Net Income before toxotion 77,fA)2 128,446) 49,156 Taxotion 38 38 NET INCOME BEFORE TRANSFERS 77,564 128,446) 49,118 NET INCOME BEFORE OTHER RECOGNISED GAINS AND LOSSES 77,564 26,000 103.564 128,446) 49,118 26,000 75,118 Actuorial gains on defined benefit pension schemes NET MOVEMENT IN FUNDS 128,446) RECONCILIATION OFFUNDS: Total funds brought forward TOTAL FUNDSCARRIED FORWARD {517.224) 1413,660) 1517,2241 128,446) 1442.1061 39
Docusign EnvÈlope ID." 8c764647-A3l4>PABS47?A8AOBDoc INDEPENDENTTRAINING SERVICES LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 CONSOLIDATED STATEMENT OF FINANCIAL POSITION- 2020 RESTATEMENT 2020 Income correction 2020 Re5tuted Original FIXEDASSETS Tongible osset5 30,966 30,966 30,966 30,966 CURRENT ASSETS Debtors 208,163 128.4461 179,717 Cash at bank and in hand 67,322 67,322 275,485 128.4461 247.039 CREDITORS: arnountsfalling due within oneyear NET CURRENT ASSETS 1155.1111 1155,1111 120,374 128.4461 91,928 TOTAL ASSETS LESSCURRENT LIABILITLES 151,340 128.4461 122,894 NET ASSETS EXCLUDINGPENSION SCHEME LIABILITIES 151,340 128,4461 122,894 Defined benefit pension scheme liobility NET LIABILITIES INCLUDING PENSION SCHEME LIABILITIES 1565,0001 1565,0001 1413.660) 128.4461 1442,1061 CHARITY FUNDS Restricted funds Unrestricted funds: 1413,660) 128,4461 1442,1061 TOTALDEFICITFUNDS 1413,6601 128,4461 1442,1061 40