Reglstered number: 04274770 Charity number. 1091711 INDEPENDENT TRAINING SERVICES LIMITED (A compony limited by guorantee) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024
INDEPENDENT TRAINING SERVICES LIMITED CONTENTS Page Reference and administrative details of the charityi its trustees, and advisers Trustees, report Independent auditor's report 10 Consolidated statement of financial activities 14 Consolidated statement of financial position 15 Company 5totement of financial position 16 Con501idated statement of cash flows 17 Notes to the financial statements 18
INDEPENDENT TRAINING SERVICES LIMITED REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2024 Trustees Miss K Dickinson, Chai r (resigned 29 July 20241 Mrs H E Jaggar Mr I K Koursis (resigned 31 October 2023) Mr D Akeroyd (oppointed 4 October 2023) MrA J Porker Mr5 N Adams Mrs C Cooper-smith, Chair (appointed 18 June 2024) Company Secretary Mrs H Jackson Company registered number 04274770 Charity registered number 1091711 Registered office Queens Court Business Centre, Regent Street, Barnsley, South Yorkshire, England, 570 2EG Managing Director Mr Steve Hepworth Independent auditors TC Group Limited, l Rushmills, Northompton, NN4 7YB Bonkers Santander. Bootle, Merseyside, L30 4GB Solicitors DAC Beachcroft, St Pauls House, 23 Park Square South, Leeds, LSI 2ND
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT FOR THE YEAR ENDED 31 JULY 2024 Chair's foreword 2023124 has been a positive year for Independent Training seIces (ITSI with a number of new contracts and projects and the ongoing development of o first-rate staff team. During the year the Board of Trustee5 monitored closely the execution of the operationol plan and our progress delivering another year of profitobility. The organisation remains focused on improving our finoncial health and providing the best educotion and training experience for our learners (students) and local businesses. Mrs C Cooper-smith, Chair, Board of Trustees Managing Directors Introduction The financial yeor 2023124 wa5 a better trading year due to increases in revenue and growth of new projects taking place for ITS. Apprenticeship recruitment Wa5 the highest it has been for very many years ond with small to medium size enterprises now engaging in apprenticeships again across service industries supported by sustained recruitment in the care sector. ITS also storted delivering South Yorkshire Mayoral Combir)ed Authority (SYMCA) courses for jobs funding direct and successfully gained growth on odult loon contrarts. Smartstyle Technology Training Limited also generated o positive contribution for the first year in four years due to exponding their services available into longer courses as opposed to short workshops. This oreo of the business is well positioned to continue to move forward for future years and capitalise on an increasing offer available to individuals and employers. ITS were successful in winning odditionol controcts in 2023124 that will start in 2024125. The main contract that ITS has secured is the delivery of Adults Skills Funding through SYMCA. This controct will start on the I August 2024. The quality of provision has been good overall across all contracts. Apprenticeships and courses for adults were inspected and graded Good in June 2023 ond this is still the case in 2023124. The achievement rate for apprentices has increased for the third successive year and retention and ochievement in adult programmes have been sustoined whilst doubling the cohort size. Portnership provision hos been outstanding all year delivering high levels of quality teaching and leorning whilst delivering excellent outcomes for learners transforming lives. Our people remain passionate and committed to our core purpose and hove demonstrated a positive and welcoming team approach to ensure we are stronger and have greater resilience to continue our journey. Steve Hepworth Managing Director
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 JULY 2024 The Trustees present their annual report together with the audited financial statements of Independent Troining Services Limited {the company I ITS) for the parent company ond group for the period l August 2023 to 31 July 2024. The Trustees confirm thot the Annual Report ond finoncial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice ISORPI, applicable to charities preparing their accounts in accordance with the Financiol Reporting Stondord applicable in the UK ond Republic of Ireland (FRS 102) (effective l Jonuary 20191. STRUCTURE, GOVERNANCE AND MANAGEMENT The company and the group is registered os a charitoble compony limited by guarontee and was set up by a Memorandum of Association on 22 August 2001. The company and the group is constituted under o Memorondum of Associotion, registered charity number 1091711 ond company (limited by guorontee) number 4274770. The Boord of Trustees changed in 2018119 following the ocquisition by Bornsley College. The trustees monitor the organisation's performance through a formal board which meets four times a year. The Boord monitors the financial ond operotionol performonce ond risk monagement of ITS and Smartstyle, and invitations are made to other senior leadership team members os appropriate. As required by the Articles of Association, an Annual General Meeting is held on o yearly basis. The governance model chonged in 2019120 to bring it into line with the College. There is a formal procedure for the induction and training of trustees that mirrors that of Barnsley College. Trustees The Trustees are appointed by the Board of Trustees. The trust deed allows for a minimum of five Trustees and no more thon twelve. One third (orthe number nearest one third) of the Trustees must retire eoch year, those longest in office retiring first. A retiring Trustee who remains qualified may be reappointed. Meetings The Boord of Trustees meet every quarter. At the meetings, the Trustees agree the broad strategy and areas of activity of the company, including rotificotion of gronts thot are made and a review of the live risk register. Policies and Procedures adopted for Recrultment, Induction and Training of Trustees The Board keeps the skill requirements for the Trustee Body under review. Any recruitment of new Trustees is undertaken by open advertisement ond through o diologue with interested porties. When an individual expresses on interest in becoming a Trustee, an initial meeting is held with the Chair. A proposal to appoint a new Trustee is submitted to the Boord for opproval. Once an appointment hos been made, the newly elected Trustee undergoes an induction programme. The company keeps up to date with key developments and training is provided to Trustees as and when required. Financial Plan and Budget The company odopts the College's business plonning and performance review cycle. Business plans ore completed annually and reviewed by the senior leodership teom at the college. Performance reviews are completed quarterly and review oll aspects of the business performance. The detailed business plan ond occomponying budget ore submitted for approval by the Board of Trustees on an annual basis. The day-to-doy running of the company is delegated to the Monoging Director, who hos the power to oct and toke decisions, as long as they are contained within the plan. Any deviations from or additions to the plan have to receive approval from the Board of Trustees. The Managing Director submits o written report detailing progress and future planned activity to all Board meetings. The Company continues to produce an annual Self-Assessment Report ISAR) which is validated by the College ond opproved by the ITS Boord of Trustees.
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 JULY 2024 Our Objectives and Activities MISSION We provide inclusive services offering training, educotion and lifelong learning opportunities, the achievement of appropriate qualifications ond sustoinoble employment. VISION Our Vision is to Transform Lives through education and troining. PURPOSE To be the partner of choice, leading the way through innovation and excellence. We will ochieve this by: Developing a range of products to meet the diverse needs of learners, employers, and customers. Ensuring our delivery is cutting edge, personolised and responsive resulting in 5ucce55ful outcomes. Shoring our success to benefit und develop our locol communities. Ensuring that we are recognised for whot we do, and the way thot we do it. Public Benefit In pursuonce of the objectives set out above the Company benefits individuals and employers in the Barnsley area ond the wider community throughout the Yorkshire, Humber, ond Midlands regions. The Trustees hove regord to Chority Commission guidance on public benefit when planning strategy. aims and activities. Achievements and Performance Key achievements in 2023124 Achieved three year upward trend for apprenticeship achievement rates. Achieved 95% achievement rate on all odult education and training programmes. This is 4-year positive upward trend. Successfully delivered courses for jobs contract through SYMCA. Retained Motrix standard for the quality of information, advice, and guidance. Retained Skills for Care centre of excellence standard. Achieved over 95010 progression rote into o positive destinotion upon leaving Achieved highest ever recruitment figures for adult education courses with over 3,800 learning aims delivered. Achieved highest number of apprenticeship recruitment for 5 years ot 272.
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 JULY 2024 Learners 2023124 Learners remain central to our focus and purpose. During 2023124 we carried out internal learner and employer surveys. 380 learners and employers responded to our internal learner survey ond the results ore 05 follows: The apprenticeship on programtne satisfaction survey showed 93.5% of learners would recommend ITS as a training provider. Other key positives are: Apprenticeships 99% agreed that they know how to keep themselves safe at work. 99% agreed that feedback from their tutor helped them improve. 97% of apprentices agreed that their tutor helps develop their skills, knowledge and behoviours consistently. Overall, 4.51 rating out of 5 for apprenticeship survey Adults IOOO/o ogreed that adults, skills courses met their needs and helped progress into work 98% of learners agreed thot they were mode owore of progression opportunities. 98% of leorners agreed that the course met their needs to progress into work. Overall rating of 4.75 out of 5 for quality of teaching and leorning. Overall, 4.57 rating out of 5 for adult skills survey. Employers and Clients 2023124 Our employer base has increased in 2023124 with the recoveryofthe apprenticeship morketandthe successful delivery of extemal contracts. In total ITS are currently working with over 400 employers. An integrol port of our success is the effective engagement of employers, whether they ore local, regional or national. Our employer base has actively engaged with us in workforce development, apprenticeships, commercial training and pre-employment training leading to employment. Overall, 96% of employers are extremely likely to recommend ITS. Financial Review Overall, the company realised a total income position of £1,234k, which is an increase of 15%1£1,070k 2022123). The opprenticeship income achieved £921k in 2023124, which is an increase of 47.9% (£623k 2022123). The group net asset position has increasedfr(Jn £239,723 in 2022123 to £242,257 in 2023124. The ESFA Financial Health for the year is Good. Financial Statements The finonciol stotements have been prepared under the historical cost convention ond in occordonce with Statement of Recommended Proctice 'Accounting and Reporting by Charities, (issued in October 20191 and applicable United Kingdom accounting stondards including FRS 102 The Financial Reporting Standard opplicoble in the UK ond Republic of Ireland. The movement in funds is shown on the Statement of Financial Activities. The group's total funds amounted to £242,257 as at 31 July 202412023: £239,723).
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 JULY 2024 Reserves Policy The reserves of the company are composed of restricted and unrestricted funds. Unrestricted Reserves: The Trustees are committed to building up general reserves to ensure that the core octivities of the company will continue into the future. At 31 July 2024 the group has unrestricted reserves of £242,257. Fundraising Policy The company does not undertake any fundraising activities. The future outlook 2024125 ITS hove started on many positives in 2024125 thot will allow for future growth and even better financial performance for 2024125 ond 2025126. ITS now o solid base including strong financial performance to grow which includes growth on apprenticeships, adult loons, adult skills fund and commercial courses. Apprenticeships recruitment is continuing to grow on a regional and national basis with new apprenticeships and diversification cf the employers that we are engaged with. Apprenticeships are currently ot the highest numbers they have been for 4 years and substantial additional adult contracts will position ITS very well moving forward. We will continue to obtain additional contracts if these fit within our focus of delivery. ITS'S key challenge is achieving growth and delivering its budget whilst maintaining the quality of our provision. Key priorities are listed below: Increase opprenticeship achievement rates to over 70% Achieve growth on apprenticeship recruitment numbers regionally and nationally to over 400. Achieve growth on adult loan provision for 4th successive yeor. Continue to diversify the offer away from health and social care Safeguard all learners Mointain an outstanding adult curriculum Gain future additional funded contracts regionally and nationally Mointain Outstonding ITS financiol heolth Maintain a net asset position Improve operating performance to generote surplus of at least IO% of income
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 JULY 2024 Going Concern The group balance sheet shows net assets of £242,257 (2023 £239,723) and the surplus for the year before octuorial gains was E35,53412023: surplus of £144,588). The going concern assessment considered the company financial operating forecasts and ccsh flow forecasts to December 2025. The company has sufficient cash funds throughout this period. The cash flow is sensitive to delays in cash receipts and therefore contains some risk that it will not have sufficient cash to cover its debt. Barnsley College, the parent company is comfortable based on forecasts that it has the ability to support its subsidiary entities and has confirmed they will financially support the company for at least twelve months following from the date the financial statements are signed, including support for ITS'S subsidiory Smartstyle Technology Training Limited which is in a net liobilities position ot 31 July 2024. As such, the Trustees are of the view that, based on detailed budgets and cash flow forecasts, the group will be able to pay its debts as they foll due and therefore the group is a going concern. Exemptions from disclosure Since the company and the group qualify os smoll under section 383, the strategic report required of medium and lorge companies under The Componies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required. No seporote Stotement of Financial Activities has been presented for the company alone as permitted by section 408 of the Companies Act 2006. Funds held as custodian trustee on beholf of others The company does not hold any funds os o custodion trustee on behalf of others. Developments ITS have evidenced positive recruitment trends across the apprenticeship market which has resulted in the highest partici pation in over five years. The main priority is to maintain this by increasi ng and diversifying our curriculum offer with an ever increosing geographicol reoch for 2024125. Continuous review ond robust planning of the offer in line with labour market intelligence and in colloborotion with employers ollows us to maintain this positive trend. We will also be pushing hard to goin future growth in the adult market ond build on the success of recent contracts we have won. Focus on gaining new direct contracts for local and regional provision will also be high on the key priorities for 202412 5.
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT IcontSnued) FOR THE YEAR ENDED 31 JULY 2024 Risk Management and Principal Risks The risk management system includes an assessment of the greatest risks to the company against financial, operationol and student impact which is designed to protect the company's assets and reputation. A comprehensive review of the risks to which the company is exposed is undertaken and acknowledged in the Board Assurance Framework IBAFI. The 8oard Assuronce Framework identifies the key risks, the likelihood of those risks occurring, their potential impoct on the group and the actions being taken to reduce ond mitigate the risks and covers assuronce gained. Systems ond procedures ore identified which mitigate potential impact on the company. In addition to the annuol review, we will olso consider any risks which moy arise os a result of a new oreo of work being undertaken by the group. Our historic Local Government Pension Scheme odrninistroted by South Yorkshire Pensions Authority (SYPA) shows an actuarial posltion of nil. The actuary review resulted in asset position, we have under the FRS 102 accounting rules, shown this as a nil position within our balance sheet os the pension fund terms would not allow for the asset to be realised. We have ogreed an onnual contribution fee for current scheme members, which is shown in the SOFA. We work closely with SYPA ond TC Group Limited our tax advisors, to ascertain an annual actuarial statement, to ensure we conform and comply with the FRS and HMRC treatment of multi- employer pensions. scheme. UK Government's agency ESFA continue with their radical reform to apprenticeships, which has been planned since a review in 2012, and has resulted in o new register of training providers. The three changes included: new standards which impacts on the current delivery model; on employer levy system which impacts on the funding model; and a new procurement system which impacts the current annual contract.
INDEPENDENT TRAINING SERVICES LIMITED TRUSTEES, REPORT (continued) FOR THE YEAR ENDED 31 JULY 2024 TRUSTEES, RESPONSIBILITIES STATEMENT The Trustees (who are also directors of Independent Training Services Limited for the purposes of company law) are responsible for preparing the Trustees, report and the financial statements in accordance with opplicable law and United Kingdom Accounting Stondards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of offairs of the charitable company and the group and of the incoming resources ond opplicationof resources, including the income ond expenditure, of the charitable graup for that period. In preparing these financiol statements, the Trustees ore required to: Select suitable accounting policies and then apply them consistently. Observe the rnethods and principles in the Chorities SORP. Make judgments and accounting estimates that are reasonable and prudent. Prepare the financial stoternents on the going concern bosis unless it is inappropriate to presume thot thecharitable group will continue in operation. State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statement5. The Trustees ore responsible for keeping proper occounting records that ore sufficient to show ond explain the choritoble compony and the group's transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements complywith thecomponies Aci 2006. They are olso responsible for safeguarding the assets of the charitoble compony and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregulorities. DISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who ore Trustees at the time when this Trustees, report is approved has confirmed that: So for os thot the trustees o re awore, there is no relevont audit informction of which the charitable group's auditors are unaware. Trustee has taken all the steps thot ought to hove been token os trustees in order to be oware of ony relevant audit information andto establish that the charitable group's auditors are aware of that information. This report wos approved by the Trustees on 10 December 2024 ond signed on their behalf by: David Akeroyd Trustee
INDEPENDENT TRAINING SERVICES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INDEPENDENT TRAINING SERVICES LIMITED Opinion We hove audited the financial statements of Independent Training Services Limited (the 'porent charitable company'l ond its subsidiary (the 'group'l for the yeor ended 31 July 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Statement of Financiol Position, the Consolidated Cosh Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework thot has been applied in their preparation is applicable law and United Kingdom Accounting Stondards, including Financial Reporting Standard 102 The Financiol Reporting Standard applicoble in the UK ond Republic of Ireland (United Kingdom Generolly Accepted Accounting Practice). In our opinion the financial statements". give o true and fairview of the state of the group's and parent charitable compony's affairs os at 31 July 2024 and of the group's incoming resources ond application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Proctice; and have been prepored in accordance with the requirements of the Companies Act 2006. Bosis for opinion We conducted our oudit in occordonce with International Standards on Auditing IUKI {ISAs IUKII and opplicoble low. Our responsibilities under those stondords ore further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethicol requirements that are relevant to our oudit of the finonciol stotements in the UK, including the FRC'S Ethicol Standard, and we have fulfilled our other ethicol responsibilitie5 in accordance with these requirements. We believe that the audit evidence we have obtoined is sufficient and oppropriate to provide o bosis for our opinion. Concluslons relating to going concern auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we hove performed, we hove not identified ony moteriol uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group ond porent charitable cornpony's obility to continue as a going concern for a period of at least twelve months from when the financial statements ore authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sertions of this report. Other information The trustees are responsible for the other information. The other information comprises the information in the trustees, report, but does not include the finonciol stotements and our Report of the Auditors thereon. Our opinion on the financial statements does not cover the other informotion and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 10
INDEPENDENT TRAINING SERVICES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INDEPENDENT TRAINING SERVICES LIMITED (CONTINUED) In connection with our audit of the finonciol stotements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financiol statements or our knowledge obtained in the audit or otherwise appears to be materiolly misstated. If we identify such moterial inconsistencies or apparent material misstotements,we are requiredto determine whether this gives ri5eto o moteriol misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regord. Opinlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit". the information given in the trustees, report, which includes the directors, report, prepared for the purposes of company low, for the financial year for which the finoncial statements are prepared is consistent with the financial statements; and the directors, report, included within the trustees, report, has been prepared in occordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and parent charitable company ond its environment obtoined in the course of the oudit, we hove not identified moteriol misstatements in the trustees, report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records hove not been kept by the parent charitable company, or returns odequate for our audit have not been received from branches not visited by us" or the parent charitable company's financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by low ore not made. or we have not received all the information and explanations we require for our audit; or the trustees were not entitled to prepore the finonciol statements in occordance with the small companies regime and take advontoge of the small companies, exemption from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of the parent charitable companyforthe purposes of company law) are responsible for the preporotion of the finonciol stotements ond for being satisfied thot they give a true ond fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from materiol misstatement, whether due to fraud or error. In preparing the finonciol statements, the trustees ore responsible for o5ses5ing the group and parent charitable company's ability to continue as a going concern, disclosing, as opplicoble, matters reloted to going concern ond using the going concern basis of accounting unless the trustees either intend to liquidote the group or parent charitable company or to cease operations, or have no realistic alternative but to do so. li
INDEPENDENT TRAINING SERVICES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INDEPENDENT TRAINING SERVICES LIMITED (CONTINUED) Auditors, responsibilities for the audit of the financlal statements Our objectives are to obtain reasonable assurance obout whether the financial statements as a whole are free from material misstotement, whether due to froud or error, ond to issue o Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarontee thot on oudit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstotements can orise from fraud or error and are considered moterial if, individuolly or in the oggregote, they could reasonably be expected to influence the economic decisions of users token on the bosis of these financial statements. Irregularities, including fraud, are instances of non-compliance with lows and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregulorities, including froud. The extent to which our procedures ore capable of detecting irregularities, including fraud is detailed below: We obtoined on understanding of the legal and regulatory frameworks thot ore applicable to the group and porent choritable company and determined that the most significant frameworks which are directly relevant so specific assertions in the finonciol statements are those that relate to the reporting framework (UK GAAP, the Componies Act 2006, the Charities Act 2011 and Charities SORPI and the relevant tox compliance regulotions in the UK. We understood how the group ond parent charitable company is complying with those frameworks by making enquiries of monagement and those responsible for legal ond compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. We assess the susceptibility of the group ond parent charitable compony's financial statements to materiol misstatement, including how fraud might occur, by discussion with monogement from various parts of the business to understand where they considered there was o susceptibility to fraud. We considered the procedures and controls thot the group and porent charitable company has established to prevent and detect froud, and how these ore monitored by management, and also ony enhonced risk factors such os performance targets. Based on our understonding, we designed our oudit procedures to identify any non- compliance with laws and regulations identified in the paragrophs above. A further description of our responsibilities for the audit of the financial statements is locoted on the Finonciol Reporting Council's website ot www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Auditors. Use of our report This report is mode solely to the company's members, as a body, in accordance with Chopter 3 of Port 16 of the Companies Act 2006. Our oudit work hos been undertoken so that we might state to the choritoble company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by low, we do not accept or ossume responsibility to onyone other than the charitable compony and the choritoble company's members as a body, for our audit work, for this report, or for the opinions we hove formed. 12
INDEPENDENT TRAINING SERVICES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INDEPENDENT TRAINING SERVICES LIMITED (CONTINUED) Dilun Mistry FCA {Senior Statutory Auditor) for and on behalf of TC Group 31 High View Close Hamilton Office Park Leicester Leicestershire LE4 9LJ Dote;... iÉlizlio'LLk 13
INDEPENDENT TRAINING SERVICES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2024 Total funds Total Fund5 2024 2023 Note INCOME AND ENDOWMENTS FROM: Choritoble activities 1,216,658 1,014,359 Other trading activities 17,220 54,980 Other income 264 TOTAL INCOME 1,233,878 1,069,603 EXPENDITURE ON: Charitable activities (1,191,604) 1908,7301 Other trading activities (6,740) {16,285) TOTAL EXPENDITURE (1,198,344) 1925,015) Net income l (expenditure) before taxation 35,534 144,588 Taxotion NET INCOME I (EXPENDITURE) BEFORE TRANSFERS NET INCOME I (EXPENDITURE) BEFORE OTHER RECOGNISED GAINS AND LOSSES Actuarial gains on defined benefit pension schemes Restriction of actuaria I surplus 35,534 144,588 35,534 144,588 17 83,000 (116,000) 308,000 1310,000) 17 NET MOVEMENT IN FUNDS 2,534 142,588 RECONCILIATION OF FUNDS: Total funds brought forward 239,723 97,135 TOTAL FUNDS CARRIED FORWARD 242,257 239,723 The notes on pages 18 to 37 form port of these financial statements. 14
INDEPENDENT TRAINING SERVICES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2024 2024 2023 Note FIXED ASSETS Tangible assets CURRENT ASSETS Debtors 10 165,923 306,551 Cash ot bonk and in hand 186,715 6,094 352,638 312,645 CREDITORS: amounts falling due within one yèar NET CURRENT ASSETS li (110,381) (72,922) 242,257 239,723 TOTAL ASSETS LESS CURRENT LIABILITIES 242,257 239,723 NET ASSETS EXCLUDING PENSION SCHEME LIABILITIES 239,723 Defined benefit pension scheme liability NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 17 242,257 239,723 FUND5 Restricted funds Unrestricted funds: 13 242.257 239,723 TOTAL FUNDS 242,257 239,723 The financial statement5 were approved ond authorised for issue by the Trustees on 10 December 2024 ond signed on their behalf, by: David Akeroyd The notes on pages 18 to 37 form port of these financial statements. 15
INDEPENDENT TRAINING SERVICES LIMITED COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2024 2024 2023 Note FIXED ASSETS Tongible assets Investments 1,000 1.000 1,000 1,000 CURRENT ASSETS Debtors 10 353,355 182,631 535.986 520,640 3,235 523,876 Cash at bank and in hand CREDITORS: amounts falling due within one year NET CURRENT ASSETS 11 {91,9781 (71,9221 444,008 451,954 TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: amounts falling due after more thon one year NET ASSETS EXCLUDING PENSION SCHEME LIABILITIES 445,008 452,954 445,008 452,954 Defined benefit pension scheme liability NET ASSET INCLUDING PENSION SCHEME LIABILITIES 17 445,008 452,954 CHARITY FUNDS Restricted funds Unrestricted funds: 13 445,008 452,954 TOTAL SURPLUS FUNDS 445,008 452,954 The finonciol 5totement5 were opproved and authorised for issue by the Trustees on 10 December 2024 and signed on their behalf, by: David Akeroyd The notes on pages 18 to 37 form part of these financial statement5. 16
INDEPENDENT TRAINING SERVICES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2024 2024 2023 Note Cash flows from operating activities Net cash from operating activities 17 180,621 {31,1621 Cash flows from finoncing octlvities: Repoyments of borrowings Interest on borrowings Tax paid Net cash used in financing activities Change in cash and cash equivalents in theyear 180,621 (3 1,162) Cash and cash equivolents brought forward 6,094 37,256 Cash and cash equivalents carried forward 18 186,715 6,094 The notes on pages 18 to 37 form part of these financial statements. 17
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordonce with the Financial Reporting Standard opplicable in the UK and Republic of Ireland IFRS1021 (effective l January 20191- (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Irelond (FRS 102) and the Companies Act 2006. Independent Troining Services Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities ore initiolly recognised ot historical cost or tronsaction volue unless otherwise stated in the relevant accounting policy. The Statement of financial activities (SOFA} and statement of financial position consolidate the finar)cial statements of the company and its subsidiory undertoking. The results of the subsidiary areconsolidated on a line by line basis. No separate SOFA has been presented for the company olone as permitted by section 408 of the Companies Act 2006. 1.2 Company status The company is a cornpony limited by guorontee. The members of the company are the Trustees named on page l. In the event of the company being wound up, the liobility in respect of the guoranteeis limited to £1 per member of the company. 1.3 Going concern The group balance sheet shows net assets of £242,257 (2023 £239,723} and the surplus for the year before octuarial gains was £35,534 {2023 surplus of £144,588). The going concern assessment considered the company financial operating forecasts and cash flow forecast5 to December 2025. The company has sufficient cash funds throughout this period. ITS'S subsidiary, Smartstyle Technology Training Limited has a net liabilities position at 31 July 2024 including a debt owing to ITS of £205,098. Barnsley College, the parent cornpony is comfortable based on forecasts that it has the obility to support its subsidiary entities and has confirmed they will not seek repayment of the debt for ot leost twelve months following from the date the finonciol statements ore signed. As such, the Trustees are of the view that, based on detailed 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
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES (continued) 1.4 Income All income is recognised once the company has entitlement to the income, it is proboble that the income will be received, and the amount of income receivable can be measured reliably. Government funded grants ond omounts 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 estimate5 for the period of what is receivable and dependent on the particular income stream involved. Income from other troding activities is recognised upon the raising of soles invoices or upon receipt of cash from eligible government schemes. Where income is received for a specific purpose which is defined the income and asSOClated expenditure is shown within restricted funds. 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefitto a third party, 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 classified by activity. The c05tsof each octivity ore mode up of the total of dirert costs ond shored costs, including support costs involved in undertoking each activity. Direct costs ottributoble to o single activity are allocated directlyto that octivity. Shared costs which contribute to more thon one octivity ond support costs which ore not attributable to o single octivity ore apportioned between those activities on a basis consistent withthe use of resources. Central staff costs are allocated on the bosis of time spent, and depreciation charges allocated on the portion of the osset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project monogement corried out at Headquarters. Governance costs ore thoseincurred in connection with odministrotion of the company and compliance with constitutional and statutory requirements. Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs felating to the governance of the company apportionedto choritoble octivities. All expenditure is inclusive of irrecoverable VAT. 1.6 Basis of consolidation The financial statements con501idate the account5 of Endependent Training Services Limited ond its subsidiory entity Smortstyle Technology Troining Limited. No seporate SOFA hos been presented for the compony as permitted within section 408 of the Companies Act 2006. ITS company made a deficit of £7,946 for the financial year ended 31 July 2024 {2023: surplus of £103,894). 19
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES {contlnued) 1.7 Tangible fixed assets and depreciotion All assets costing more than £1,000 are capitalised. A review for impoirment of a fixed osset 15 carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets ond their recoverable cmounts are recognised as impoirments. Impairment losses are recognised in the Statement of financial activities. Tongible fixed ossets are corried ot cost, net of depreciation ond any provision for impairment. Depreciation is provided ot rates colculated 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 Computer equipment 20¥0- 25% Stroight line 33.3% Straight line 1.8 Investments Investments in subsidiaries are valued at cost less provision for impairment. 1.9 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be meosured reliobly by the company; this is normally upon notification of the interest paid or payable bythe Bank. 1.10 Debtors Trode and other debtors ore recognised ot the settlement amount ofter ony trade discount offered. Prepayments ore volued ot the amount prepaid net of any trade discounts due. 1.11 Cash at bank and in hand Cash at bank and in hand includes Cash and Short term highly liquid investments with a short moturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.12 Liabilities and provisions Liabilities ore recognised when there is an obligation ot the Balance sheet date as a result of a past event, it is proboble thot o transfer of economic benefit will be required in settlement, and the amountof the settlement can be estimated reliably. Liabilities are recognised at the amount that the componyanticipates it will pay to settle the debt or the amount it hos received os odvanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is materiol, the provisionis bosed on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges. 20
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIE5 (continued) 1.13 Financial instruments The compony only hos fina ncial ossets and finoncial liabilities of o kind thot qualify as b05ic finonciol instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 1.14 Deferred taxatlon Full provision is mode for deferred tox assets ond liabilities orising from oll timing differences between the recognition of gains and losses in the financial statements ond recognition in the tax computation. A net deferred tax asset is recognised only if it can be regarded os more likely than not that there will be suitoble taxable profits from which the future reversol of the underlying timing differences con be deducted. Deferred tax assets and liabilities are calculated at the tox rates expected to be effective at thè time the timing differences are expected to reverse. 1.15 Pensions The company operates a defined contribution pension scheme, and the pension charge represents the omounts payoble by the company to the fund in respect of the year. The company operate5 a defined benefit pension scheme, and the pension charge is bosed on o full octuorial voluotion dated 31 March 2023, updated to 31 July 2024 by the octuory. More detail of the scheme can be found in Note 19. 1.16 Fund accounting General funds ore unrestricted funds which ore ovoiloble for use ot the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Designated funds comprise unrestricted funds that hove been set aside bythe Trustees for porticulor purposes. The aim ond use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for porticulor purposes. The costs of raising and administering such funds ore charged against the specific fund. 21
INDEPENDENT TRAINING SERVICES LEMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 ACCOUNTING POLICIES (continued) 1.17 Critical accounting estimates The preparation of financial statements may require management to make significant judgements and estirnotes. Estimates and judgements are continually evaluated and ore b05ed on historicol experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There ore no critical oreos of judgements. Critical accounting estimates: The company and group makes estimates and assumptions concerning the future. The resulting accounting estimates and ossumptions will, by definition, seldom equol the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the corrying omounts of assets and liabilities within the next financial year are discussed below. Local Government Pension Scheme The present volue of the Locol Government Pension Scheme defined benefit liability depends on o number of factors that ore determined on an actuarial basis using a variety of ossumptions. The assumptions used in determining the net cost (income) for pensions including the discount rote which is the most sensitive to the mocro-economic environment. Any changes in these assumptions, which ore disclosed in note 19, will impact the corrying omount of thepension liobility. Furthermore, a roll forward opproach which projects results from the latest full actuarial valuation performed at 31 Morch 2023 has been used by the actuary in voluing the pensions liability at 31 July 2024. Any differences between the figures derived from the roll forword opproach ond o full actuoriol valuation would impact on the carrying amount of the pension liobility. 22
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 INCOME FROM CHARITABLE ACTIVITIES Total 2024 Total 2023 ESFA- Non-levyl levy income ESFA - Learner Responsive Other 921,020 622,965 295,638 1,216,658 391,394 1,014,359 DIRECT COSTS Totol 2024 Total 2023 Administration expenses Educational expenditure and associated recreational costs Wages and salaries National insurance Staff Pension costs 25,462 200,816 452,828 80,459 26,081 785,646 52,086 96,662 464,886 72,281 37,073 722,988 SUPPORT COSTS 2024 2023 Premises costs Office administrative costs Computer and software costs Depreciation and amortisation Bank charges Bad debts Pension interest 17,263 396,207 372 5,846 179,343 6,946 787 682 (3,862) (4,000) 185,742 217 13,899 (22,000> 405,958 23
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 NET INCOME I (EXPENDITURE) This is stated after charging: 2024 2023 Depreciation of tangible fixed assets:_ owned by the charitable group Operating lease rentals 787 30,000 30,000 During the yeor, no Trustees received any remuneration (2023 - £nil). During the year, no Trustees received any benefits in kind (2023 - £nill. During the year, no Trustees received any reimbursement of expenses (2023 £nill. AUDITORS, REMUNERATION Net fees payable to the company's auditor for the oudit of the group annual accounts 2024 2023 Independent Training Service5 Ltd Smartstyle Technology Training Ltd 10,500 525 11,025 10,000 500 10,500 The audit services were provided by TC Group Limited, Northampton. Non-audit related fees are borne by the porent company, Barn51ey College. 24
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 STAFF COSTS Staff costs were as follows". Group 2024 Company 2024 Group 2023 Company 2023 Woges and salaries Social security costs Other pension costs 452,828 80.459 26,081 559,368 452,828 80,459 26,081 559,368 464,886 72,281 37,073 574,240 464,886 72,281 37,073 574,240 The average number of persons employed by the Group during the year was as follows: 2024 No. 2023 No. Administration Teaching Monogement io 18 11 13 31 26 Key monagement personnel Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the Company. During the year the total amount of remunerotion and benefits received by key monagement personnel was £74,90012023: £68,0001. The number of key monogement personnel and other staff who received onnual emoluments, excluding pension contributions and employer's national insurance but including benefits in kind, in the following ranges wos: 2024 No. 2023 No. In the band £65,001- £70,000 In the band £70,001- £75,000 The Managing Director is the highest paid member of staff. Their remuneration received in the year is as follows: 2024 £'ooo 2023 £'ooo Solaries- gross of salary sacrifice and waived emoluments Employers National Insurance 75 68 84 20 76 19 Pension contributions Total emoluments 104 95 25
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 TANGIBLE FIXED ASSETS Flxtures ond fittings Computer equipment Total Group C05t At l August 2023 Additions Disposals At 31 July 2024 15,880 11,314 27,194 15,880 7.503 3,811 23,383 3,811 Depreciation At l August 2023 Charge for the year Disposals 15,880 11,314 27,194 15,880 7,503 23,383 At 31 July 2024 3.811 3,811 Net book value At 31 July 2024 At 31 July 2023 Fixtures and fittings Computer equipment Total Charity Cost At l August 2023 Additions Disposals At 31 July 2024 15,880 10,430 26,310 15,880 7.503 2,927 7,503 2,927 Depreciation At l August 2023 Charge for the yeor Disposals At 31 July 2024 15,880 10,430 26,310 15,880 7,503 2,927 7,503 2,927 Net book value At 31 July 2024 At 31 July2023 26
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 FIXED ASSET INVESTMENTS Subsidiary undertakings The following were subsidiary undertakings of the company: Name Smortstyle Technology Training Limited Registered office oddress," Queens Court, Regent Street, Barnsley, England, 570 2EG. Holding loo% The aggregate of the share capital and reserves as at 31 July 2024 and of the profit or loss for the year ended on that date for the subsidiary undertakings were as follows". Aggregate of share capital and reserves Name Profit Smartstyle Technology Training Limited (200,962) 10.480 Shares In group undertakings Company At l August 2023 and 31 July 2024 1,000 27
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 10 DEBTORS Group 2023 Company 2023 2024 2024 Trode debtors Amounts owed by group parent Prepayments and accrued income 60,380 19,457 86,086 165,923 65,597 42,669 198,285 306,551 44,868 223,716 84,771 353,355 51,154 271,201 198.285 520,640 11 CREDITORS: Amounts falling due within one year Grou Com 2024 2023 2024 2023 Trade creditors Other toxotion and social security Accruols and deferred income 78,737 11,924 19,720 110,381 25,582 22,584 24,756 72,922 61,742 13,656 16,579 91,978 26,112 21,150 24,660 71,922 12 FINANCIAL INSTRUMENTS 2024 2023 Financial assets measured at amortised cost 147,305 95,456 263,882 50,338 Financial liabilities measured at amortised cost Financial assets meosured ot omortised cost comprise trade and other debtors and accrued income. Financial liabilities measured at amortised cost comprise trade and other creditors and accruals. 28
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 13 CONSOLEDATED STATEMENT OF FUNDS STATEMENT- CURRENT YEAR Balance ot l August 2023 Income Expenditure Transfers inlout Gainsl Balance at (Losses) 31 July 2024 General Funds Generol Funds 239,723 1,233,878 {1,231,344) 242.257 Pension reserve 33,000 (33,0001 Other General Funds Total 239,723 1,233,878 (1,198,344) 133,000) 242,257 Unrestricted Funds 239,723 1,233,878 (1,198,344) 133,000) 242,257 Total funds 239,723 1,233,878 (1,198,344) 133,000) 242,257 14 CONSOLIDATED STATEMENT OF FUNDS STATEMENT- PRIOR YEAR Balance at l August 2022 Income Expenditure Transfers inlout Gainsl Balance at (Losses) 31 July 2023 General Funds General Funds 97,135 1,069,603 (927,015) 239,723 Pension reserve 2,000 12,000) Other General Funds Total 97,135 1,069,603 (925,015> (2,0001 239,723 Unrestricted Funds 97,135 1,069,603 1925,015) 12,0001 239,723 Total funds 97,135 1,069,603 (925,015) {2,0001 239,723 Designated funds had no opening balance and no activity during the year or the prioryear. 29
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 15 ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unrestricted funds Restricted funds Total funds 2024 2024 2024 Tangible fixed assets Current assets Creditors due within one year 352,638 (100,381) 352,638 {100,381} 242,257 242,257 16 ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS- PRIOR YEAR Unrestricted funds Restricted funds Total funds 2023 2023 2023 Tangible fixed assets Current assets Creditors due within one year 312,645 (72,922) 312,645 (72,92 2) 239,723 239,723 30
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 17 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES Group 2023 2024 Net income for the year (as per Statement of Finonciol Activities) 35,534 144,588 Adjustment for Depreciotion charges Tax charge 885 Decreosel(increase) in debtors 140,628 (11,3681 Increosel{decrease) in creditors 37.459 (163,2671 Interest costs Pension costs (33,000) (2,0001 Net cash from operating activities 180,621 (31,162) 18 ANALYSIS OF CASH AND CASH EQUIVALENTS Group 2024 2023 Cash in hond 186,715 6,094 Total 186,715 6,094 31
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 19 PENSION COMMITMENTS The group operates o defined contribution pension scheme where the assets of the scheme are held separate to those of the group in independently odministered funds. The total expense for the year was £26,081 12023: £37,073). The group participates in the funded defined benefit pension scheme operated by South Yorkshire Pensions Authority. The ossets of the scheme ore held in separate funds administered by SYPF. The total contributions made for the year ended 31 July 2024 were £26,204, of which employer's contributions totalled £20,148 ond employees, contributions totolled £6,056. The agreed contribution rotes for future yeors are 26.9%. The gain on the scheme's assets during the year was £83,000 before the surplus restriction (2023- £308,000), being 3.6%12023: 14.1%) of the year end assets. Principol actuarial assumptions at the stotement of finonciol position date {expre55ed os weightedaverages): 2024 2.75% 5.00% 3.35% 2.75% 2023 5.05% 3.00% 3.60% 3.00% Discount rote ot 31 July CPI inflation rate Future solory increases Future pension increases The current mortality assumptions include sufficient allowance for future improvements in mortality rate5. The ossumed life expectations on retirement age 65 are: At 31 July 2024 Years At 31 July 2023 Years Retiring todoy Males Females Males Females 20.5 23.6 21.3 25.0 20.6 23.6 21.4 25.0 Retiring in 20 years The assets in the scheme were- Fair value at Fair value at 31 July 2024 31 July 2023 Equities Government bonds Property Cash I liquidity Total market value of asset5 1,546,000 484,000 231.000 1,506,000 480,000 174,000 2,307,000 2,182,000 32
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 19 PENSION COMMITMENTS (continued) The actual gain on scheme ossets wos £83,000 (2023 - £308,000 gain). The amounts recognised in the Statement of financial octivities are as follows: 2024 2023 Current service cost 9,000 {22,000) (13,000) 22,000 (4,0001 18,000 Interest cost on pension scheme obligation5 Total Movement in net defined benefit liability during yeor 2024 2023 £'ooo £'ooo Net defined benefit liobility at l August Movernent in year: Current service cost {9,000) 20,000 22,000 83,000 (116,000) (22,0001 20,000 4,000 308,000 (310,000) Employer contributions Net interest on the defined liobility Actuarial gain Restriction of actual surplus Net defined benefit liability at 31 July Movements in the present volue of the defined benefit obligation were os follows: 2024 2023 Opening defined benefit obligation Interest cost Contributions by scheme porticipants Current service cost Benefits paid Actuarial {gains)IIoss 1.761,000 87,000 7,000 9,000 (87,000) (7,000) 2,076,000 71,000 6,000 22,000 (72,0001 1342,000) Closing defined benefit obligotion 1,770,000 1,761,000 33
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 19 PENSION COMMITMENTS (contlnued) Changes in the fair value of scheme assets were as follows: 2024 2023 Opening fair value of scheme assets Expected return on ossets Actuarial gainslllosses) Contributions by employer Contributions by scheme participants Benefits paid 2,182,000 76,000 109,000 20,000 7,000 (87,000) 2,187,000 (Iii,000) 152,000 20.000 6,000 172,0001 2,307,000 2,182,000 Amounts for the current and previous period are as follows: 2024 2023 Defined benefit obligation Scheme ossets Re5trirtion of actual Surplus Surplus l (deficit) Experience adjustments on scheme liabilities (1,770,000) 2,307,000 (537,000) (1,761,000) 2,182.000 1421,000) 60,000 190,000 34
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 19 PENSION COMMITMENTS (continued) Guaranteed Minimum Pension 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 (GMP) provisions. The 2018 Lloyds Bank court jLJdgement provided clarity in this area. A further High Court ruling in 2020 extended GMP equalisation costs to historic transfers, potentially creating a further liability for pension schemes. The LGPS has allowed for the impact of full GMP indexation in the calculation of the latest funding valuation results in respect of the 2018 ruling. The actuaries believe the 2020 ruling is unlikely to have a significont impact. so they hove not mode any ollowance for this in their calculations. Transitional Protection Arrangements {McCloud) Following the loss of o court cose {the Mccloud judgement) which found thot tronsitionol protections put in place when two public sector pension schemes were reformed were age discriminatory, the government committed in July 2019 to seeking o remedy ocross oll public sector schemes. The key feoture of the proposed remedy was to extend the final solary scheme underpin to a wider group of members for service up to 31 March 2022. The College's pension liabilities in respect of the South Yorkshire Pension Fund have increased due to this. The fund actuary has included an allowonce that is substontially in line with the judgement and the effect of any minor proposed changes will have an estimated liability of nil. The schemes actuaries hove rolled forward the previous allowance and no additional adjustment has been made for the current yeor. Widower Benefits (Goodwin) Following a recent Employment Tribunal ruling that a female member in an opposite sex morriage is treoted less favourably than o female in a some sex morriage or civil partnership, and that treatment amounts to direct discriminotion on the grounds of sexual orientation, the government announced in July 2020 that it believed chonges would be required to oll public sector schemes with similor arrangements. For the College, this will increase the liability in respect of the South Yorkshire Pension Fund, but no ollowance hos been mode in the accounting figures as it is expected that the impact on the liabilities will be immaterial Icirca 0.1-0.2% of the obligations) and there is currently insufficient data available to estimate a cost 35
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 20 OPERATING LEASE COMMITMENTS At 31 July 2024 the total of the group's future minimum lease payments under non-cancellable operating leases was: Land and buildings Other Group: 2024 2023 2024 2023 Amounts payable Within l year Between l and 5 years 15,000 30,000 554 Total 15.000 30,000 554 At 31 July 2024 the charitable compony had onnual commitments under non-concellable operating leasesas follows- Charitable company Amounts payable: 2024 2023 Within l yeor Between l and 5 years 15,000 30,000 Total 15,000 30,000 36
INDEPENDENT TRAINING SERVICES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 21 RELATED PARTY TIIANSACTIONS Owing to the nature of the Companies operations and the composition of the Board of Directors being drown from local public ond private sector organisations, it is inevitable thot transactions will take place with orgonisotions in which o member of the Boord of Director5 may hove an interest. All transQCtion5 involving Such orgonisotions ore conducted at orms, length ond in occordonce with Bornsley College's finonciol regulations and normal procurement procedures. Summary of transactions with organisations connected to members of the Board of Directors Nature of goods or seNices purch05ed by the college Nature of goods or services purchased by the other party Related party of the compony Transaction5 during the year Debtor Bulonce at 31 July 2024 Creditor Bolonce at 31 July 2024 Income Related Related Porty Expenditure Related BARNSLEY & ROTHERHAM CHAMBER OF COMMERCE Director £455 £0 £455 £0 £0 Subscriptions nlo Barnsley MBC Director £144,662 £144,110 £552 £60 £0 Venue Hire Education controcts NOCN Director £1,354 £0 £1,354 £0 £0 Exam costs nlo The total expenses paid to or on behalf of the trustees during the year was £nil, (2022123: £nil}. No trustee hos received ony remunerotion or waived poyments from the Company or its subsidiories during the year12022123: nil). 22 ULTIMATE PARENT COMPANY The ultimate controlling party is Barnsley College, o corporation established under the Further ond Higher Education Act 1992 and is an exempt charity for the purposes of Part 3 of the Chorities Act 2011. The consolidated accounts which includes Independent Training Services Limited and Smartstyle Technology Training Limited are ovoilable on the College's website or on request from Barn51ey College, Church Street, Barnsley, S70 2AX. 37