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2021-07-31-accounts

Trustees' Annual Report for the period Period start date Period end date ~~a|~~ From Day 1 Month Aug Year 2020 To Day 31 Month July Year 2021 Section A Reference and administration details ~~a~~

Charity name Preston Vocational Centre

Other names charity is known by PVC

Registered charity number (if any) 1135863 ~~PO~~ Charity's principal address St Paul’s Road Preston Postcode PR1 1PX

Names of the charity trustees who manage the charity

Trustee name
~~ee~~		 Office (if any)
~~ee~~		 Dates acted if not for whole year
~~ee~~		 Name of person (or body) entitled
to appoint trustee (ifany)
~~ee~~
Julie Bather
~~ee~~
~~ee~~		 Chair
~~ee~~
~~ee~~		 Resigned from the Board on 1st
March 2021.
Chair upto 1stMarch 2021.
~~ee~~		 Preston Vocational Centre
~~ee~~
Rob Wakefield
~~ee ~~
~~ee~~		 ~~ee ~~
~~ee~~		 ~~ee~~ Community Gateway
Association
~~ee~~
3 Maureen Boland
~~ee~~
~~a~~		 ~~ee~~ Preston Vocational Centre
4 Sian Elcomb
~~a~~
~~ee~~		 ~~ee~~ ~~ee~~ Preston Vocational Centre
~~ee~~
Michael Higgins
~~ee~~		 Chair
~~ee~~		 Vice Chair up to 1stMarch
2021.
Chair from 1stMarch 2021.
~~ee~~		 Preston Vocational Centre
~~ee~~
6 Chris Keeney
~~ee ~~
~~a~~
~~ee~~		 ~~ee~~
~~ee~~		 ~~ee~~
~~ee~~		 Preston Vocational Centre
~~ee~~
Trevor Hart
~~ee~~
~~es~~		 Vice Chair
~~ee~~
~~Gs~~		 Vice Chair from 1stMarch
2021.
~~ee~~
~~Gs~~		 Preston Vocational Centre
~~Gs~~
8 Amanda Watson
~~ee ~~
~~es~~
~~ee~~		 ~~ee~~
~~Gs~~		 ~~ee~~
~~Gs~~		 Preston Vocational Centre
~~Gs~~
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Name Dates acted if not for whole year

Names and addresses of advisers (Optional information)

Type of adviser Name Address

Name of chief executive or names of senior staff members (Optional information)

Claire Smith – Executive Lead for PVC & Head of Culture and Engagement at Community Gateway Association (Parent)

Craig Garner – PVC Company Secretary

Martin Grayston - PVC Centre Manager

Section B Structure, governance and management

Description of the charity’s trusts

Memorandum and Articles of Association Type of governing document

(eg. trust deed, constitution) Company Limited by Guarantee How the charity is constituted

Appointed by the PVC Board in line with Group Policies Trustee selection methods

(eg. appointed by, elected by)

Additional governance issues (Optional information)

You may choose to include additional information, where relevant, about:

PVC was established in February 2009 and became a charity in May 2010. On 1st August 2013, PVC became a subsidiary of Community Gateway Association Ltd (CGA) and an Intra Group Agreement was signed. The Intra Group Agreement was last reviewed and approved by the Parent and Subsidiary Boards in February 2020 and is next due for review in February 2023.

PVC delivers construction based vocational training and has become highly regarded amongst partners and stakeholders as a specialist construction training facility. PVC has a trading subsidiary, Preston Construction Centre Limited which is currently dormant.

The Charity draws its Trustees from both the public and private sector, including specialist skills from the education sector. The PVC Board is continually developing using a system of annual collective and individual appraisals that enable the Board to recognise both the strengths and any skill gaps that may need addressing. An induction programme is provided for new Trustees and ongoing training is delivered via a range of methods including Planning Days and attendance at external conferences and seminars. Succession plans for future Trustee recruitment are in

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place to ensure PVC maintains the required knowledge, skills and experience.

PVC has a risk management framework in place and the risk register is regularly reviewed by the Management Team, PVC’s Board and the Risk Review Group of the parent, Community Gateway Association. An ongoing risk during 2020/21 has been the Covid-19 pandemic and the impact on students being able to attend the Centre, however mitigating actions have been taken to enable the Centre to continue operating and minimise financial losses. PVC has adopted the Charity Governance Code and undertakes an annual assessment of compliance. Any areas of improvement identified are included in a governance action plan and the Board monitor implementation of the action plan throughout the year.

Section C Objectives and activities

Summary of the objects of the
charity set out in its
governing document
Summary of the main
activities undertaken for the
public benefit in relation to
these objects (include within
this section the statutory
declaration that trustees have
had regard to the guidance
issued by the Charity
Commission on public
benefit)		 To advance the education of children, young people and adults,
especially those living within the Preston area, in particular through
provision of vocational training, supporting their personal
development, and equipping them for further education,
employment and training.
PVC provides vocational training opportunities in a wide range of
construction skills which include; Brickwork, Plastering, Painting &
Decorating, Carpentry, Joinery, and Building Maintenance for
young people and adults from around Preston and the surrounding
Districts.
Alongside the vocational training, we provide pastoral wrap around
support to create a positive, inclusive and supportive environment.
We operate under three key themes which are:
•Pre 16
•Post 16 Not in Employment, Education, or Training (NEET)
•Adults
VISION STATEMENT
Building Skills – Building Futures
MISSION STATEMENT
To deliver the highest quality construction based vocational training
and support to enable young people and adults to gain skills,
qualifications and confidence to enhance their potential and build a
positive future.
VALUES
We developed a suite of values in partnership with our learners, to
set out the expectations of everyone and our commitment to how
we will do things. Our six values are:

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Inclusive – We embrace the differences that come from a wide range of backgrounds. We ensure everyone has the opportunity to learn and grow. Passionate – We are passionate in our approach to inspire learning and celebrate success. Respectful – We encourage and promote positive responses towards people, our activities and most importantly ourselves. Integrity – We unconditionally promote being open, honest and transparent in all that we do. Empowering – Through training and support we enable people to realise their full potential and improve their futures. Quality – We have a commitment to exceed expectations in everything we do.

Many of PVC’s learners come from a range of providers and include Key Stage 4, 14 to 16 year old pupils from mainstream education, those who are SEND (Special Educational Needs & Disability), as well as post 16 year old pupils. Many of our post 16 learners are often disaffected or disengaged and need a transition to work programme.

PVC is able to deliver its mission through the continuing development of existing and new partnerships which foster true collaborative working. These include local high schools, Pupil Referral Units, Special Educational Needs and Disabilities (SEND) schools, Youth Offending Team, Child Action North West (CANW) Lancashire Constabulary’s Early Action Team, Lancashire Care NHS Foundation Trust, Lancashire Children’s Social Care, Lancashire Probationary Service and local Community organisations.

PVC has also received grant funding from the Office of the Police & Crime Commissioner for Lancashire and received sponsorships for the Annual Awards Evening from: Conlon Construction, Travis Perkins, Community Gateway, JFN Integrated Solutions and SIKA Ltd.

Furthermore, PVC’s retained its Specialist Partner status to deliver NEET Provision to 16–24 year olds and funding for this programme has now been extended to March 2023.

It is our aim to support anyone who requires the type of learning which we provide, and our experience to date has shown we can work with a range of providers with a diverse learner population.

Additional details of objectives and activities (Optional information)

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We do not make grants to organisations or individuals.

You may choose to include further statements, where relevant, about:

Any surpluses are re-invested back into the business for its further development and to build up adequate reserves in line with the business plan, in order to enable PVC to invest in future growth. We are supported by a small number of volunteers, who provide valuable skills, resource and in particular are positive role models for our young people.

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Section D Achievements and performance

Summary of the main achievements of the charity during the year

Preston Vocational Centre has a growing reputation through the work we deliver with partner schools in Preston and the surrounding areas.

The ongoing Covid-19 pandemic continued to impact PVC in 2020/21 however the Centre was able to remain open throughout the year. The Centre’s adapted delivery measures remained in place to ensure staff and student safety.

PVC delivered specialist vocational provision to a total of 228 beneficiaries in 2020/21, including 157 learners from 21 high schools across Lancashire. This resulted in 59 learners achieving a BTEC qualification in Construction. In addition, 11 learners attended our Post 16 provision with a further 33 adult beneficiaries attending the Centre through various grant funded projects.

The qualifications delivered included the BTEC Award, BTEC Level 1 Certificate, and BTEC Extended Certificate. There are a small number of learners who attended our Building Skills Schools programme who are on a two year programme. These students will receive BTEC and City & Guilds qualification certificates upon competition of the course.

Training programmes are also offered for those learners with Special Educational Needs and Disabilities (SEND), often with behavioural or medical needs, with a need for specialist training provision at higher teacher to pupil ratios.

PVC’s grant funded projects include:-

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Section D Achievements and erformance p Other notable highlights were: • 90% of 2021 school learners and post 16 are now in education or employment opportunities PVC continued to widen their geographical footprint across Lancashire with the development of new partnerships with schools. PVC also supported grassroots organisations by continuing to deliver a number of projects, which benefit the local community while enabling learners to gain real life work experience. Furthermore, by building social resilience within those beneficiaries who engage with our projects we have established healthy relationships fostered through mentoring support, which in turn develops life skills and improves community cohesion and mutual understanding between diverse local communities. Finally, PVC continues to receive generous donations from Warburtons to provide our learners with breakfast at break times. We hope that this is the start of a wider partnership with other organisations.

Section E Financial review 2020/21 Financial Review Brief statement of the charity’s policy on reserves As of 31st July 2021, PVC’s reserves were £95,203. All surpluses (when generated) are reinvested back into the business for its further development and to build up adequate reserves. As the financial position of PVC continues to improve, this will allow PVC to increase its reserves and assist the company’s growth. The Trustees will continue to monitor fund values to ensure the timely use of donations in accordance with donors’ wishes. PVC aims to hold cash reserves in the region of £40,000 to £60,000 to allow it to cover its operating costs for two to three months should anticipated income not materialise. The Trustees’ Reserves Policy is to monitor reserve levels on an ongoing basis in light of charitable spending and the level of charitable giving to PVC. Details of any funds materially None at present in deficit

Further financial review details (Optional information)

Youmay chooseto include
additional information, where
relevant about:
•
the charity’s principal
sources of funds (including
any fundraising);
•
how expenditure has		 In 2020/21 the majority of PVC’s income, £325,726 (91.16%) was
received from the delivery of construction courses to 14 to 18 year
olds. The remainder of the income £31,590 (8.84%) was received
from donations and successful bids for grant funding to carry out
programmes of work, with funding received from European
Structural and Investment Fund (ESIF), and the European Social
Fund ‘More positive Together’ initiative.

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supported the key objectives of the charity;

~~Se~~ Section F Other optional information ~~pd~~ Section G Declaration ~~a~~

The trustees declare that they have approved the trustees’ report above.

Signed on behalf of the charity’s trustees

Signature(s)

Full name(s) Michael Higgins Position (eg Secretary, Chair, ~~ee~~ Chair ~~ee~~ etc) ~~ee ee~~ Date 29TH April 2022 ~~pO~~

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Annual Report and Financial Statements

Year ended 31[st] July 2021

Company Registration Number: 07085396 Charity Registration Number: 1135863

Content Page
Board of Directors, Executives and Advisors 2
Trustees’ Report 3-11
Independent auditors’ report 12-17
Trustees’ responsibilities in relation to the financial statements 18
Statement of Financial Activities 19
Balance Sheet 20
Notes to the Financial Statements 21-31

1

Board of Directors, Executives and Advisors
Board of Directors, Executives and Advisors
Board of Trustees
M J Higgins (Chair from 2ndMarch 2021)
J Bather (Resigned from Board/Chair to 2nd
March 2021)
M Boland
R Wakefield
S Elcomb
C Keeney
T Hart
A Watson
Company Secretary
Craig Garner
Advisors
Independent Auditor
Rushtons
Chartered Accountants and Business Advisers
Shorrock House
1 Faraday Court
Fulwood
Preston
PR2 9NB
Bankers
Barclays Bank PLC
1stFloor
3 Hardman Street
Spinningfields
Manchester
M3 3HF
Board of Trustees
M J Higgins (Chair from 2ndMarch 2021)
J Bather (Resigned from Board/Chair to 2nd
March 2021)
M Boland
R Wakefield
S Elcomb
C Keeney
T Hart
A Watson
Company Secretary
Craig Garner		 Advisors
Independent Auditor
Rushtons
Chartered Accountants and Business Advisers
Shorrock House
1 Faraday Court
Fulwood
Preston
PR2 9NB
Bankers
Barclays Bank PLC
1stFloor
3 Hardman Street
Spinningfields
Manchester
M3 3HF
Registration Details
Charity Name:Preston Vocational Centre Ltd
Registered Office & Principal Office:
Preston City Council Services Site, St Paul’s Road, Preston, Lancashire, PR1 1PX.
Charity Registration Number:1135863
Company Registration Number:07085396

Registration Details

Charity Name: Preston Vocational Centre Ltd

Registered Office & Principal Office:

Preston City Council Services Site, St Paul’s Road, Preston, Lancashire, PR1 1PX.

Charity Registration Number: 1135863 Company Registration Number:

2

Preston Vocational Centre Ltd

Trustees' Report

The Trustees of Preston Vocational Centre (PVC) present their annual report and audited accounts for the year ended 31 July 2021 and confirm they comply with the requirements of the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Structure Governance and Management

PVC (Company No. 07085396) was established in February 2009. PVC converted to a charity in May 2010 and became a subsidiary of Community Gateway Association Ltd (CGA) (Company No. IP29838R) following the signing of an intra-group agreement on 1 August 2013.

The Charity draws its trustees from both the public and private sector, including specialist skills from the education sector.

Following best practice governance principles, the PVC Board has a range of knowledge, skills, and expertise, including commercial and educational experience. The PVC Board is continually developed using a system of collective and individual appraisals performed annually. This enables PVC to assess both the strengths and skill gaps so appropriate training can be provided. This process also allows for succession planning to the Board which aims to further strengthen governance.

PVC has a trading subsidiary, Preston Construction Centre Limited, which is currently dormant.

PVC’s main focus is on establishing a centre of excellence in construction trades and being regarded as a construction specialist training facility in Preston. The principal objective of PVC is to advance the education of children, young people and adults, especially those living within the Preston area. This will be through the provision of vocational training, supporting their personal development and equipping them for further education, employment and training.

PVC is an inclusive learning environment which aims to provide all young people with suitable skills and qualifications to allow them to progress in their future adult working lives.

3

Trustees' Report (continued)

The Centre operates under the strap line of “Building Skills - Building Futures” and delivers its activities under three thematic areas which are:

Our Mission / Values

PVC is committed to delivering the highest quality construction based vocational training and support to enable young people and adults to gain skills, qualifications and confidence to enhance their potential and build a positive future. In order to achieve the mission, we strive to live the following values:

Our Commitment

We strive to be the first choice for schools, learners and other stakeholders who require vocational training provision leading to a progressive and recognised learning route to continue to the world of work. We continually set high standards and go the extra mile to set us apart from any competitors. We are dedicated to bringing those young people at risk of not entering training, employment or education and equipping them with the confidence and skills to move forward. We work with all our learners to achieve a recognised qualification and where this is not appropriate, get them to a level upon where they can build themselves a positive future.

We have a proven track record and a well-established good reputation for being committed to providing construction vocational training in painting and decorating; joinery and carpentry; building maintenance; brickwork; and plumbing and plastering.

4

Trustees’ Report (continued)

We provide high quality pastoral support to young people, adults and communities of Lancashire. We offer accredited and non-accredited learning and development opportunities that supports positive steps towards achieving personal economic and social potential within an inclusive learning environment that is focused on the needs of participants.

Operating Review 2020 / 2021

Impact of Covid-19

The outbreak of Covid-19 and the social distancing measures which continued into the 2020/21 financial year presented both operational and financial risks that have been successfully managed. The Centre remained open for learners throughout the year, operating in accordance with government guidelines, but student numbers were reduced due to the restrictions placed on both schools and the Centre. Although a deficit of £15,296 is reported for the year, it is at a level which can be funded from reserves accumulated in previous years and does not affect the future operation of the Centre. Management of the Covid-19 financial risks throughout the year focussed on minimising the deficit through a combination of controlling costs and protecting income.

The approach taken by PVC centred on pragmatism, following the relevant Covid-19 restrictions and the specific guidance issued to the education sector. We retained a clear focus on the health, safety and wellbeing of colleagues and students whilst continuing to deliver quality training and education. A number of adjustments were made at the centre to reconfigure the teaching areas to allow for social distancing and the implementation of enhanced cleaning measures so that learning could continue in safe and secure environment.

The financial and operational impact of the Covid-19 pandemic included reduced schools’ income due to fewer learners attending, limited capacity to deliver programmes attracting external funding and increased costs as a result of enhanced cleaning.

Aims and Objectives

2020/21 was the third year of our 2018-21 Business Plan.

5

Trustees’ Report (continued)

Operating Review (continued)

The Business Plan set out our aims and objectives to build upon the success of the Centre, particularly focusing in the following areas.

Each objective has its own suite of Key Performance Indicators (KPIs) that are reported to the Board on a regular basis. The key highlights for 2020/21 are summarised below.

6

Trustees’ Report (continued)

Operating Review (continued)

7

Trustees’ Report (continued)

Financial Review

A deficit for the year of £15,296 is reported due to a decrease in both core school income and grant income as a result of the disruption caused by the Covid-19 pandemic. The potential risks arising from the pandemic were identified at an early stage and steps were taken to control costs in order to minimise losses which may arise. Despite the deficit, PVC remains in a strong financial position due to reserves accumulated in previous years. A summary of PVC’s Statement of Financial Activities for the past three years is shown below.

2018/19
£		 2019/20
£		 2020/21
£
Total Income 421,126 438,375 357,316
Total Expenditure 381,826 382,954 372,612
Surplus/(Deficit) 39,300 55,421 (15,296)

The 2020/21 deficit is principally due to a £81,059 decrease in income, offset by a reduction in costs of £10,342. Schools Income of £325,726, grant income of £26,525 and donations of £5,065 were realised; however due to the Covid-19 pandemic impacting on the capacity of the centre, PVC was unable to meet its ‘New Business Target’ of £81,674.

In 2020/21 the majority of PVC’s income, £325,726 (91.16%) was received from the delivery of construction courses to 14 to 18-year olds. The remainder of the income £31,590 (8.84%) was received from donations and successful bids for grants to carry out programmes of work with funding received from European Structural and Investment Fund (ESIF) and the European Social Fund ‘More positive Together’ initiative.

The Statement of Financial Position shows fixed assets with value of £14,522, including a portacabin purchased in 2020/21 to increase capacity at the centre facilitating operation in a Covid secure manner.

Looking forward, 2021/22 marks the start of a new 5-year Business Plan. The 2021-26 plan is focussed on Covid-19 recovery and re-establishing previous levels of performance. The impact of Covid-19 on our colleagues, students and communities cannot be underestimated and PVC will continue to face challenges as we adapt to the new environment.

8

Trustees’ Report (continued)

Financial Review (continued)

The 2021-26 Business Plan is centred around 4 key themes:

In developing the Business Plan, the Board has considered the environmental impact of how PVC operates and also developments in the construction industry which will have an impact of the training provided by the Centre.

The level of ambition within the Business Plan is limited to a degree by the capacity and staffing resources at the Centre. As a result, a number of feasibility studies, including options to relocate and expand the qualifications on offer, will be carried out during years 1 and 2 of the plan. Once complete, the Business Plan may be subject to a review to reflect any new priorities.

Targets for financial and key performance indicators have been set for year 1, including a target surplus of 5% of turnover. Future years targets will be driven by the recovery from the impact of Covid-19 and the results of the feasibility studies. The financial position is reviewed on a frequent basis by the Management Team and regular updates are presented to the Board. Performance is measured against the annual budget, key performance indicators and the business plan. PVCs Risk Register is also regularly reviewed.

9

Trustees’ Report (continued)

Financial Review (continued)

Reserves Policy

As of 31[st] July 2021, PVC’s reserves were £95,203. All surpluses (when generated) are reinvested back into the business for its further development and to build up adequate reserves. As its financial position continues to improve, this will allow PVC to increase its reserves and assist the company’s growth.

The Trustees will continue to monitor fund values to ensure the timely use of donations in accordance with donors’ wishes.

PVC aims to hold cash reserves in the region of £40,000 to £60,000 to allow it to cover its operating costs for two to three months should anticipated income not materialise.

The Trustees’ Reserves Policy is to monitor reserve levels on an ongoing basis in light of charitable spending and the level of charitable giving to PVC.

PVC is also supported by volunteer trainers who provide valuable skills and are positive role models for its young people. PVC concentrates on its young people and therefore does not make any grants to organisations or individuals.

Review of Activities

PVC looks to maximise student numbers wherever possible to achieve its target of a range of income sources.

Risk Analysis

A number of risks have been and continue to be actively considered by the Board. These risks include:

10

Trustees’ Report (continued)

Risk Analysis (continued)

The risks identified and new risks that arise during the year are monitored, reviewed and updated where necessary by the Management Team and Board. Risk Management Action Plans have been developed identifying actions to mitigate the risks. During 2020/21 an external safeguarding audit was completed in July 2021. The results were positive with no major issues arising. In order to mitigate the financial risks, longer term income streams are being identified and PVC are looking to spread the financial risk over a number of income sources.

Public Benefit

The trustees confirm that PVC has paid due regard to the Charity guidance on public benefit reporting in deciding what activities the charity should undertake.

This Annual Report explains the charity’s work during the year and how it has been carried out for public benefit.

Small company provisions

This report has been prepared in accordance with the small companies’ regime under the Companies Act 2006.

Approved by the Board on 14[h] December 2021 and signed on its behalf by:

M Higgins - Chair of the Board of Trustees

11

Independent Auditor’s Report to the Members of Preston Vocational Centre Ltd

Opinion

We have audited the financial statements of Preston Vocational Centre Ltd (the ‘charitable company’) for the year ended 31 July 2021 which comprise the Statement of Financial Activities (incorporating Income & Expenditure Account), Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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Independent Auditor’s Report to the Members of Preston Vocational Centre Ltd (continued)

Conclusions relating to going concern (continued)

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, 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 financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Independent Auditor’s Report to the Members of Preston Vocational Centre Ltd (continued)

Opinions on other matters prescribed by the Companies Act 2006 (continued)

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement as set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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Independent Auditor’s Report to the Members of Preston Vocational Centre Ltd (continued)

Auditor’s responsibilities for the audit of the financial statements

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

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

Identifying and assessing potential risks related to irregularities

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

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Independent Auditor’s Report to the Members of Preston Vocational Centre Ltd (continued)

Audit response to risks identified

As a result of performing the above procedures, we did not identify any key audit matters.

In addition to the above, our procedures to respond to risks identified included the following:

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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Independent Auditor’s Report to the Members of Preston Vocational Centre Ltd (continued)

We also communicated relevant identified laws and regulations and potential fraud risks to all of the engagement team, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

Use of our report

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

Adam Calvert ACA (Senior Statutory Auditor)

For and on behalf of Rushtons

Chartered Accountants

Statutory Auditors

Shorrock House 1 Faraday House Fulwood, Preston Lancashire. PR2 9NB

Date:

17

Statement of Trustees' responsibilities in respect of the trustees’ annual report and the financial statements

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law they have are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of expenditure over income for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

18

Preston Vocational Centre Ltd

Statement of Financial Activities for the Year Ended 31 July 2021

Note
Incoming and endowments from
Voluntary income
2
Charitable activities
3
Total
Expenditure on
Charitable activities
4
Grant Expenditure
4
Governance costs
4
Total
Net movements in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
15		 Unrestricted
Total
Funds
2021
£
5,065
352,251
357,316
350,092
-
22,520
372,612

(15,296)
110,498
95,203		 Total
Funds
2020
£
1,280
437,095
438,375
348,811
1,713
32,430
382,954
55,421
55,077
110,498

The notes on pages 19 to 29 form an integral part of these financial statements.

19

Preston Vocational Centre Ltd (Registration Number: 07085396)

Balance Sheet for the Year Ended 31 July 2021

Note
Fixed Assets
Equipment
13
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: Amounts
falling due within one
year
10
Net current
(liabilities)/assets
Net assets
The funds of the charity:
Unrestricted funds
Unrestricted income funds
Total charity funds		 2021
£
33,725
102,514
136,239
(55,559)		 £
14,522
1
14,523
80,680
95,203
95,203
95,203		 2020
£
25,338
133,505
158,843
(61,050)		 £
12,704
1
12,705
97,793
110,498
110,498
110,498

The notes on pages 19 to 29 form an integral part of these financial statements.

These financial statements were approved by the Trustees on 14 December 2021 and were signed on its behalf by:

Chair

20

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021

1 Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities SORP (FRS 102)’, Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

There are no judgements which have a significant effect on the amounts recognised in the accounts. There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date which would have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

The Board also confirm that PVC meets the definition of a qualifying entity and meets the criteria for applying the disclosure exemptions with FRS 102. The exemptions applied relate to the cashflow statement and the strategic report.

The functional and presentational currency is Sterling (£) monetary amounts in these financial statements are rounded to the nearest £. The legal from of the charity is limited by guarantee and a private company.

Going Concern

PVC’s Financial Statements have been prepared on a going concern basis which assumes an ability to continue operating for the foreseeable future. The going concern expectation takes into account the Covid-19 pandemic noted throughout these accounts and highlighted as a principal risk and uncertainty.

Fund accounting policy

Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.

21

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

1 Accounting policies (continued)

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Fixed assets

Individual fixed assets costing £1,000 or more are initially recorded at cost.

Incoming resources

Donations are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Investment income is recognised on a receivable basis. Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.

Resources expended

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance

Under the constitution of the subsidiary the parent has the ability to both remove and appoint all Board Members from the Boards of the Subsidiaries. Board members shall be appointed by the board for a fix term of three years; however, they may be reappointed thereafter for a maximum of three times with a total duration of nine years. The appointment of board members takes place following a selection exercise as a result of board member appraisals to highlight the skills gaps of the current board, which then results in the specific advertisement to fulfil the boards requirements. These advertisements are placed on free recruitment sites as the role is voluntary. The appointment of a director must not cause the number of directors to exceed the maximum of 10, if the appointment of a director by the Parent causes the number

22

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

1 Accounting policies (continued)

Governance (continued)

to exceed said maximum the Parent has the right to remove so that the number does not exceed the maximum.

Governance costs

Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.

Depreciation

Depreciation is provided on tangible fixed assets to write-off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

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

23

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

1 Accounting policies (continued)

Investments

Fixed asset investments are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of the financial activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

Operating leases

Rentals payable under operating leases are charged in the statement of financial activities on a straightline basis over the lease term.

Pensions

The charity operates a defined contribution pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.

2 Voluntary income

Donations
Donation Total		 Unrestricted
Total
Funds
2021
£
5,065
5,065		 Total
Funds
2020
£
1,280
1,280

24

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

3 Charitable activities

Unrestricted
Total
Funds
2021
£
Income
Grant Income
26,525
Education and Training
325,726
352,251

Expenditure on Charitable Activities and Governance Costs
Education
and training
Governance
£
£
Direct costs
Employment costs
262,957
-
Establishment costs
64,620
-
Repairs and maintenance
6,483
-
Office expenses
9,229
-
Printing, posting and stationery
1,530
-
Subscriptions
292
-
Sundry and other cost
292
-
Cleaning
4,106
-
Travel and subsistence
176
-
Recharge from parent company
-
20,000
Audit fees
-
2,520
Bank charges
407
-
350,092
22,520		 Total
Funds
2020
£
55,595
381,500		 2020
£
261,238
58,674
9,138
13,393
2,200
207
494
2,091
784
30,000
2,430
592
437,095
Total
£
262,957
64,620
6,483
9,229
1,530
292
292
4,106
176
20,000
2,520
407
372,612
381,241

4 Expenditure on Charitable Activities and Governance Costs

Grant Expenditure
Twilight Expenditure
Festival of Skills
INTACT		 Education
and training
£
-
-
-
-		 Governance
£
-
-
-
-		 Total
£
-
-
-
-		 2020
£
268
816
629
1,713

25

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

5 Employees’ remuneration

The average number of persons employed by the charity (excluding trustees) during the year was as follows:

Charitable activities - employee numbers 2021
9		 2020
10

All employee benefits fall within the banding £10,000 - £60,000. There are no employees who received employee benefits excluding (employer pension costs) of more than £60,000.

The aggregate payroll costs of these persons were as follows:

Wages and salaries
National Insurance
Other pension costs		 2021
£
230,886
20,072
11,999
262,957		 2020
£
231,054
18,208
11,976
261,238

6 Trustee Expenses

During the year none of the trustees have been paid any remuneration or received any other benefits from an employment with their Preston Vocational Centre or a related entity.

7 Taxation

The company is a registered charity and is therefore exempt from taxation.

26

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

8 Investments held as fixed assets

Market value
As at 1 August 2020 and 31 July 2021
Net book value
As at 31 July 2021
All investment assets were held in the UK.		 Investments
in
group and
associated
undertakings
£
1
1
1

The charity holds more than 20% of the share capital of the following company:

Country of Principal
incorporation activity Class %
Subsidiary undertakings
Preston Construction Centre Ordinary
Ltd England & Wales Dormant Shares 100
Profit/(loss)
Capital & for the
reserves period
£ £
Subsidiary undertakings
Preston Construction Centre
Ltd 1 -

27

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

9 Debtors
Trade debtors
Prepayments and accrued income		 2021
£
25,402
8,323
33,725		 2020
£
17,487
7,851
25,338

10 Creditors: Amounts falling due within one year

Amounts owed to group undertakings
Trade creditors
Accruals and deferred income		 2021
£
39,878
1,095
14,586
55,559		 2020
£
49,366
4,299
7,385
61,050

11 Members’ Liability

The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

28

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

12 Operating Lease commitments

As at 31 July 2021 the charity had total future minimum lease payments under non-cancellable operating leases as follows:

Due within 1 year
Due 2 – 5 years
Due 5+ years
Operating lease expenditure
13
Fixed assets
Cost
At 31 August 2020
Additions
Disposals
At 31 July 2021
Less: Depreciation
At 1 August 2020
Charge for the period
At 31 July 2021
Book Value as at 31 July 2021
Book Value as at 31 July 2020		 Offices
-
13,740
-
13,740
-
4,198
4,198
9,542
-		 Fixtures &
Fittings
7,500
-
-
7,500
5,208
2,292
7,500
-
2,292		 Land and
2020/21
£
19,200
22,400
-
41,600
2020/21
£
18,750
18,750
Vehicles
16,298
-
-		 Land and
2020/21
£
19,200
22,400
-
41,600
2020/21
£
18,750
18,750
Vehicles
16,298
-
-		 buildings
2019/20
£
13,388
-
-
13,388
2019/20
£
20,588
20,588
Total
23,798
13,740
-
37,538
11,094
11,922
23,016
14,522
12,704		 buildings
2019/20
£
13,388
-
-
13,388
2019/20
£
20,588
20,588
Total
23,798
13,740
-
37,538
11,094
11,922
23,016
14,522
12,704
16,298 37,538
5,886
5,432		 11,094
11,922
11,318 23,016
4,980 14,522
10,412 12,704

29

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

14 Analysis of funds

Analysis of funds
At 1
August Incoming Resources At 31 July
2020 resources expended 2021
£ £ £ £
General funds
Unrestricted income
fund 110,498 357,316 (372,612) 95,203

15 Net assets by fund

Tangible assets
Investments
Current assets
Creditors: Amounts falling due within one year
Net assets		 Unrestricted
Total
Funds
2021
£
14,522
1
136,447
(55,767)
95,203		 Total
Funds
2020
£
12,704
1
158,843
(61,050)
110,498

16 Pension Scheme

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the period represents the contributions payable by the charity to the scheme and amounted to £11,999 (2020 - £11,976).

30

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2021 (continued)

17 Related parties

Controlling Entity

On 1 August 2013 PVC became a wholly owned Subsidiary of CGA. The Chief Executive of CGA is a Board Member of PVC.

Maureen Boland is a member of PVC’s board and a Director at Conlon Construction, a company that transacts with PVC.

Chris Keeney is a member of PVC’s board and a Director at JFN Integrated Solutions Limited, a company that transacts with PVC.

Related Party Transactions

During 2020/21 the following transactions included in the Financial Statements took place between CGA and PVC:

During 2020/21 the following transactions included in the Financial Statements took place between Conlon Construction and PVC:

31

29 November 2021

Our Ref: PVCA1052/NM/

PRIVATE & CONFIDENTIAL

The Board of Directors Preston Vocational Centre Ltd Preston City Council Services Site St Paul's Road Preston Lancashire PR1 9PX

Dear Sirs

Report to Management

During the course of our audit for the year ended 31 July 2021 there were no matters which we consider should be brought to your attention.

No matters came to light during the course of our normal audit tests which are designed to assist us in forming our opinion on the financial statements. Our tests may not necessarily disclose all errors or irregularities and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of course, inform you immediately.

We have complied with the Ethical Standards for Auditors and all threats to our independence, as identified to you, have been properly addressed through appropriate safeguards. No additional facts or matters have arisen during the course of the audit that we wish to draw your attention to and we confirm that we are independent and able to express an objective opinion on the financial statements.

This report has been prepared for the sole use of the Directors of Preston Vocational Centre Ltd and must not be shown to third parties without our prior consent. No responsibilities are accepted by Rushtons towards any party acting or refraining from action as a result of this report.

Finally, we would like to express our thanks to all members of the company's staff who assisted us in carrying out our work.

Yours faithfully

RUSHTONS