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2023-07-31-accounts

Trustees. Annual Report for the period Period start date Day Period end dale Day To 31 Month Aug Year Month Ye#1 2023 From 2022 Section A Reference and administration details Charity name Preston Vocational Centre Other namas charlty Is known by pvc Reglslered charfty number (If any) 1135863 Charlty's prln¢lpal addr986 St Paul's Road Preston Postcode PR1 1PX Names of the charlly trustoes who manage tho charliy Trustee name Offlce111 any) Dates act•d11 not for whole y•ar Name ot person lor body) èntitled olnt tru8t•g If an Preston Vocational Centre Preston Vocational Centre Pr8Ston Vocational Centre Preston Vocational Centre Preston Vocational Centre Communlty Gateway Association Preston Vocational Centre Maureen Boland Sian Elcomb Trevor Hart Michael Higgins Chris Keeney Rob Wakefield Vice Chair Chair Amanda Watson 1$1 August 2022 to 6th June 2023 10 12 13 14 15 16 17 18 19 20 Names of the trustees for the charlty. If any. (for èxample. any custodlan trustees) Name Dates actèd if not for wholè ear TAR May 2024

Names and addresses of advlsers (Optlonal Infomiatlon} e of advlser Name Address Name of chlef executlve or names of senlor staff membors Ioptlonal Infomiatlonl Claire Smith - Executive Lead for PVC & Head of Culture and Engagement at Community Gateway Association (Parent company) Craig Garner - PVC Company Secretary Martin Grayston - PVC Centre Manager Section B Structure, overnance and mana ement Doscrlpllon of the charlty's trusts Memorandum and Artlcles of Association Type of governing docum6nl How the charity is constituted Company Limlted by Guarantee Trustee selection methods Appointed by the PVC Board in line with Group Policies Addltlonal governance18suès Ioptlonal Informatlonl 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 ICGA) and an Intra Group Agreement was signed. The Intra Group Agreement was last reviewed and approved by the Parenl and Subsidiary Boards in February 2023 and is next due for review in February 2026. You may choo88 to Snclud8 8ddilion81 information, wher8 relevant, about= policies and procedures adopted for the induction and training of trustees., the charity's organisational structure and any wider ne￿Ork with whi¢h the Gharity works., relalionship with any related parties. trustees, consideration of major risks and the system and proCedU￿S lo manage them. PVC delivers construction based vocational training and has become highly regarded amongst partners and stakeholders as a specialist conslruction training facility. PVC has a Irading 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 and construction sectors. The PVC Board is continually developing using a system of annual collective and individual appraisals that enable the Board lo 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 lans for future Trustee recruitment are in TAR May 2024

place to ensure PVC maintains the required knowledge, skills and experien￿. 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 2022123 was the impact of the macro-economic climate, however the Centre has continue operating effectlvely and maintained its financial viability. PVC has adopted the Charity Governance Code and undertakes an annual assessment of compli8nce. Any areas of improvement idenlified are included in a governance action plan and the Board monitor im lementalion of the action lan throu hout the ear. Section C ectives and activities To advance the education of children, young p80ple and adults, especially those Ilving within the Preston area. in particular through provision of vocational training, supporting their personal development, and equipping them for further educatlon. employment and training. Summary of the objects of tha charlty Set out In Ils governlng document PVC provides vocational training opportunlties in a wide range of construction skills which include,. Brickwork, Plastering, Painling & Decorating, Carpentry, Joinery, and Plumbing and Tiling for young people and adults from around Preston and the surrounding Districts. Alongside the vocation81 training, we provide pastoral wrap around support to create a posStSve, inclusive and supportlV8 environment. PVC operates under three key themes which are: Pre 16 Post 16 Not in Employment, Education, or Training (NEET) Adults Summary of the maln actlvities undertaken for the publlc beneflt In relatlon lo these objects (Include wllhln Ihls sectlon the statutory declaration that trustees havo had regard to the guidance Issuèd by ihe CharSty Commlsslon on publlc beneflt) VISION STATEMENT Building Skills - Building Futures MISSION STATEMENT To dellver the highest quality constructlon based vocational training and support to enable young people and adults to gain skills. qualifications and confidence to enhan￿ their potential and build a positive future. VALUES We developed a suite of values in partnership with our leamers, to set out the expectations of everyone and our commitment lo how we will do things. Our six values are.. Inclusive We embrace the differences that come from a wide TAR May 2024

range of backgrounds. We ensure everyone has the opportunity to learn and gfow. Passionate We are passionate in our approach to inspire learning and celebrate success. Respectful We encourage and promote positive responses towards people, our aclivities and most importantly ourselves. Integrlty - 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. PVC'S learners come from a diverse array of providers and include Key Stage 4 students, 14 to 16-year-old pupils from mainstream education, and those with Special Educational Needs and Disabilities (SENDI, as well as post-16 pupils. Many of our post-16 learners are often disaffected or disengaged and require a transition to work program. PVC fiJlfills its mission by continuously developing and nurturing bolh exisling and new partnerships that promote genuine collaborative efforts. These partnerships include local high schools. Pupil Referral Units, Special Educational Needs and Disabilities (SEND) schools, the Youth Offending Team, Lancashire Constabulary's Early Action Team, Lancashire Care NHS Foundation Trust, Lancashire Children's Social Care, Lancashire Probation SeNice, and varSous local community organSsations. The PVC Awards evening is an annual event held at the centre every July, celebrating the hard-earned achievements of our students with the presentation of Qualification certificates and various other awards. This prestigious evening has been generously sponsored by organisations including: Conlon Construction Ltd, Travis Perkins Ltd, Community Gateway Association Ltd. JFN Integrated Solulions Ltd, SIKA Lld, Persimmon Homes Ltd, Seddon Construction Ltd, Xacom Ltd, CCH Jolnery Ltd, and Barnfield Constructlon. Furthermore, PVC retalned its Specialist Partner status to deliver NEET (Not in Education, Employment. or Training) provision for 16-24-year-olds, wilh funding secured through the ESF-funded program LIP to March 2023. SubseqLtenlly, PVC successfully re- applied for additional funding starting from April 1, 2023, through the UK Shared Prosperity Fund (UKSPFI via Selnet and Preston City Council. This allows PVC to continue providing post-16 training for young people aged 14-24 residing in Preston, with the funding extending until March 2025. Our goal is to support anyone in need of the learnlng opportunities we offer. Our experience has demonstrated our ability to collaborate effectively with a variety of providers and cater to a diverse leamer population. TAR May 2024

Additional details of objectives and actlvltlos (Optlonal information) We do not provide grants to organisalions or individuals. You may choose lo include fvrther ststements, where relevant. about.. Any surplus funds are reinvested into the business to support its ongoing development and to build adequate reserves, as outlined in our business plan. This approach enables PVC to invest in future growth effectively. policy on grantmaking; policy programme related investment- contribution made by volunteers. We are supported by a small number of volunteers, who provlde valuable skills, resource and in particular are positive role models for our oun eo le. TAR May 2024

Section D Achievements and performance Preston Vocational Centre has a growing reputation through the work we deliver with partner schools in Preston and the surrounding areas. During 2022123, PVC focused on continuing to deliver high-quality training for our partner schools, applying for additional funding for post-16 programs, and obtaining direct claim status from our awarding body, City & Guilds. Key highlights of the year are listed below: PVC delivered specialist vocational provision to a total of 231 students from 29 schools across Lancashire of which 51.950/0 were from schools that support behaviour, emotional and social difficulties,. 16.880/y were from mainstream schools; and 28.18°/o were from schools with special educational needs or disabilities; Of the 98 school and sixth form leavers in July 2023, 80 181.63 % } achieved a City and Guilds Level I Construction qualification. As well as school students, 10 non-school students benefitted from PVC'S specialist training through the following programmes.. Post 16 Pre-Apprenticeship programme, delivered through European structural and Investment Fund (ESIF) enabling 7 students who are Not In Training, Education or Employment {NEETs) to achieve a City & Guilds Level 1 qualification., 1 student funded through Lancashire County Council (Looked after student) More Positive Together- funding to provide employment and skills training for 68 students., Guild Lodge {NHS facility)- 2 participants attended the Centre over a number of weeks working towards a City and Guilds Level 1 qualification. Summary of the maln achlevements of the charlty durlng the year TAR May 2024

Section E Financial review 2022123 Financial Review Brief statement of the charlty's pollcy on reserves As of 31st July 2023, PVC'S reserves were £137,579. All surpluses (when generated) are reinvested back into the business for its further development and to build up adequate reserves. As the financial posilion of PVC conlinues 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 lo cover its operating costs for two to three months should anticipated income nol materialise. The Trustees. Reserve5 Policy is to monitor reserve levels on an ongoing basis in light of charitable spending and the level of charitable giving to pvc. Dotalls of any funds materlally In deflclt None at present Furthor flnanclal rovlow detalls {Opiional Informatlon) In 2022123 the majority of PVC'S income, £398,101 {83.02°1.I was received from the delivery of construction courses lo 14 - 18 year olds. The remainder of the income £81,408 (16.980/0) was received from donations and successful bids for grant funding to cary out programmes of work, with fundlng received from European Structural and Investment Fund IESIF), and the European Social Fund 'More positive Together, initiative. Donations were also received from palrons who support us. You may choose to include additional information, whe relevant about: the charity's princlpal sources of funds (including any fundraisingl., how expenditure has supported th8 key oblectlves of the charity., investment policy and objectives including any ethical investment policy adopted. During the year PVC invested in a vehicle lo support it's activities which will be used lo enable students to attend work experience and sile visits, slaff to attend careers events and to collect materials donated for training purposes. Section F Other optional information Section G Declaration The trustees declare that they have approved the trustees. report above. Slgned on behalf of the charlty's trustees Slgnature(sl TAR May 2024

Full name{s) Position (eg Secrelary. Chalr, ete) Michael Higgins Chair Date Z*los/. TAR May 2024

Annual Report and Financial Statements

Year ended 31[st] July 2023

Company Registration Number: 07085396 Charity Registration Number: 1135863

Content Page
Board of Directors, Executives and Advisors 2
Trustees’ Report 3-9
Independent auditors’ report 10-15
Trustees’ responsibilities in relation to the financial statements 16
Statement of Financial Activities 17
Balance Sheet 18
Notes to the Financial Statements 19-29

1

Board of Directors, Executives and Advisors
Board of Directors, Executives and Advisors
Board of Trustees
M J Higgins (Chair)
M Boland
R Wakefield
S Elcomb
C Keeney
T Hart
A Watson (Resigned 6thJune 2023)
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
Board of Trustees
M J Higgins (Chair)
M Boland
R Wakefield
S Elcomb
C Keeney
T Hart
A Watson (Resigned 6thJune 2023)
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

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 2023 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 2022 / 2023

Aims and Objectives

2022/23 was the second year of our 2021-26 Business Plan.

Operating Review

The 2021-26 plan is centred around four key themes:

Each theme has its own suite of Key Performance Indicators (KPIs) that are reported to the Board on a regular basis. The key highlights for 2022/23 are summarised below.

5

Trustees’ Report (continued)

Operating Review 2022 / 2023 (continued)

Financial Review

A surplus for the year of £31,653 is reported which represents 6.6% of turnover exceeding the business plan target of 5%. The focus in 2022/23 was on increasing income to the level achieved prior to the Covid19 pandemic. This was successfully achieved with income of £479,510 secured during the year, exceeding the £438,375 pre covid-19 level of income by over 9%. This strong level of income combined with tight control of costs ensured that we generated a healthy surplus to add to reserves accumulated in previous years, maintaining a strong financial position. A summary of our Statement of Financial Activities for the past four years is shown below.

6

Trustees’ Report (continued)

Financial Review (continued)

2019/20
£		 2020/21
£		 2021/22
£		 2022/23
£
Total Income 438,375 357,316 404,658 479,510
Total Expenditure 382,954 372,612 393,935 447,857
Surplus/(Deficit) 55,421 (15,296) 10,723 31,653

The 2022/23 surplus of £31,653 shows a steady improvement of £46,949 from 2020/21 and £20,930 from 2021/22 as income levels increased above the pre Covid-19 pandemic levels.

The majority of our income, £398,101 (83.02%) was received from schools for the delivery of construction courses to 14 to 16-year olds. The remainder of the income £81,408 (16.98%) was received from donations from Patrons who support us combined with successful bids for grants to carry out programmes of work. This included funding received from Preston City Council ‘Meaningful Use of Time’ fund, European Structural and Investment Fund (ESIF) and the European Social Fund ‘More Positive Together’ initiative.

Expenditure for the year is £447,857 compared to a budget of £440,285. The increase relates to inflationary increases on employee costs, course costs and premises costs offset by reduced vehicle running costs.

The Statement of Financial Position shows fixed assets with value of £53,969, which is the carrying value of a) a van (£51,317) purchased in 2022/23 to transport students for work experience, attending site visits, participating in careers events and collecting materials from construction sites; b) a portacabin (£382) purchased in 2020/21 to increase capacity at the centre facilitating operation in a Covid secure manner and c) a CCTV system purchased in April 2023 to enhance health and safety provision at the centre.

As shown in the Statement of Financial Position (SoFP) PVC’s reserves remain substantial at £137,579 as a result of surpluses generated in previous years and the 2022/23 surplus.

7

Trustees’ Report (continued)

Financial Review (continued)

The financial position is reviewed monthly by the Management Team and updates are presented to the Board on a bi-monthly basis. Performance is measured against the annual budget, key performance indicators and the business plan. Our Risk Register is also regularly reviewed.

Reserves Policy

As of 31[st] July 2023, reserves were £137,579. All surpluses (when generated) are reinvested back into the business for its further development and to build up adequate reserves. As our financial position continues to improve, we can increase our 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.

We aim to hold cash reserves in the region of £40,000 to £60,000 to allow us to cover our 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.

We are also supported by volunteer trainers who provide valuable skills and are positive role models for its young people. We concentrate on our young people and therefore do not make any grants to organisations or individuals.

Review of Activities

We look to maximise student numbers wherever possible to achieve our target of a range of income sources.

8

Trustees’ Report (continued)

Risk Analysis

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

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. In order to mitigate the financial risks, longer term income streams are being identified. As such, we 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.

12/04/2024

Approved by the Board on ___ and signed on its behalf by:

M Higgins - Chair of the Board of Trustees

9

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 2023 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.

10

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material 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 regard.

11

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

Opinions on other matters prescribed by the Companies Act 2006

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

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 16, 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.

12

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:

13

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.

14

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 Court Fulwood, Preston Lancashire. PR2 9NB

Date: 12/04/2024

15

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.

16

Preston Vocational Centre Ltd

Statement of Financial Activities for the Year Ended 31 July 2023

Note
Incoming and endowments from
Donations and legacies
2
Charitable activities
3
Total
Expenditure on
Charitable activities
4
Total
Net movements in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
15		 Unrestricted
Total
Funds
2023
£
21,451
458,058
479,510
447,857
447,857

31,653
105,926
137,579		 Unrestricted
Total
Funds
2022
£
35,210
369,448
404,658
393,935
393,935
10,723
95,203
105,926

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

17

Preston Vocational Centre Ltd (Registration Number: 07085396)

Balance Sheet for the Year Ended 31 July 2023

Note
Fixed Assets
Tangible assets
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		 2023
£
43,403
141,494
184,897
(101,287)		 £
53,968
1
53,969
83,610
137,579
137,579
137,579		 2022
£
25,759
150,467
176,226
(75,263)		 £
4,962
1
4,963
100,963
105,926
105,926
105,926

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

12/04/2024

These financial statements were approved by the Trustees on ________ and were signed on its behalf by:

M Higgins – Chair of the Board of Trustees

18

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023

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 current high inflation environment highlighted as a principal risk and uncertainty above.

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.

19

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (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 fixed term of three years; however, they may be reappointed thereafter for a maximum of two 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 board’s 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

20

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (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.

21

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (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 Donations and legacies

Patronage Package
Building Blocks for your Future
Recycling Materials
Other Donations
Donations Total		 Unrestricted
Total
Funds
2023
£
14,500
-
135
6,816
21,451		 Total
Funds
2022
£
19,008
10,129
4,033
2,040
35,210

22

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

3 Charitable activities

Unrestricted
Total
Funds
2023
£
Income
Grant Income
59,957
Education and Training
398,101
Other Income
-
458,058

Expenditure on Charitable Activities and Governance Costs
Education
and training
Governance
£
£
Direct costs
Employment costs
319,155
-
Establishment costs
57,174
-
Repairs and maintenance
13,941
-
Office expenses
10,466
-
Printing, posting and stationery
1,421
-
Subscriptions
964
-
Sundry and other cost
488
-
Cleaning
2,345
-
Travel and subsistence
92
-
Depreciation
8,081
-
Recharge from parent company
-
30,000
Audit fees
-
3,000
Bank charges
547
-
414,674
33,000		 Total
Funds
2022
£
33,685
333,167
2,597		 2022
£
279,491
52,234
3,800
10,035
1,445
295
374
2,631
113
9,157
30,000
2,580
368
369,448
Total
£
319,155
57,174
13,941
10,466
1,421
964
488
2,345
92
8,081
30,000
3,000
547
447,674
392,524

4 Expenditure on Charitable Activities and Governance Costs

Other Expenditure
Community Projects		 Education
and training
£
183
183		 Governance
£
-
-		 Total
£
183
183		 2022
£
1,411
1,411

23

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (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 2023
9		 2022
9

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		 2023
£
283,368
22,298
13,489
319,155		 2022
£
243,964
21,655
13,872
279,491

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.

24

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

8 Investments held as fixed assets

Market value
As at 1 August 2022 and 31 July 2023
Net book value
As at 31 July 2023
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 -

25

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

9 Debtors
Trade debtors
Prepayments and accrued income		 2023
£
38,970
4,433
43,403		 2022
£
18,217
7,542
25,759

10 Creditors: Amounts falling due within one year

Amounts owed to group undertakings
Trade creditors
Accruals and deferred income
Deferred capital grant		 2023
£
35,019
9,623
28,728
27,917
101,287		 2022
£
31,276
5,196
38,792
-
75,263

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.

26

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

12 Operating Lease commitments

As at 31 July 2023 the charity had total future minimum lease payments under non-cancellable operating leases as follows:

Land and buildings

Due within 1 year
Due 2 – 5 years
Due 5+ years
Operating lease expenditure		 2022/23
£
3,200
-
-
3,200
£
19,200
19,200		 2021/22
£
19,200
3,200
-
22,400
£
19,200
19,200

13 Fixed assets

Cost
At 1 August 2022
Additions
Disposals
At 31 July 2023
Less: Depreciation
At 1 August 2022
Charge for the period
At 31 July 2023
Book Value as at 31 July 2023
Book Value as at 31 July 2022		 Offices
£

13,740
-
-
13,740
8,778
4,580
13,358
382
4,962		 Equipment
£

-
2,389
-
2,389
-
119
-
119
2,270
-		 Vehicles
£
-
54,698
-
54,698
-
3,382
-
3,382
51,316
-		 Total
£
13,740
57,087
-
70,827
8,778
8,081
-
16,859
53,968
4,962

27

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (continued)

14 Analysis of funds

Analysis of funds
At 1
August Incoming Resources At 31 July
2022 resources expended 2023
£ £ £ £
General funds
Unrestricted income
fund 105,926 479,510 (447,857) 137,579

15 Net assets by fund

Tangible assets
Investments
Current assets
Creditors: Amounts falling due within one year
Net assets		 Unrestricted
Total
Funds
2023
£
53,968
1
184,897
(101,287)
137,579		 Unrestricted
Total
Funds
2022
£
4,962
1
176,226
(75,263)
105,926

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 £13,489 (2022 - £13,872).

28

Preston Vocational Centre Ltd

Notes to the Financial Statements for the Year Ended 31 July 2023 (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 and CGA.

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

Related Party Transactions

During 2022/23 the following transactions included in the Financial Statements took place between CGA and PVC:

During 2022/23 the following transactions included in the Financial Statements took place between Conlon Construction and PVC:

During 2022/23 the following transactions included in the Financial Statements took place between JFN Integrated Solutions and PVC:

29

APPENDIX B1

PRIVATE & CONFIDENTIAL

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

Shorrock House Faraday Court Fulwood Preston Lancashire PR2 9NB T: 01772 693111 F: 01772 652661 E: mail@rushtonsaccountants .com W: www.rushtonsaccountants.com

28 November 2023

Our Ref: PVC A1052/JB/LB

Dear Sirs

Report to Management

During the course of our audit for the year ended 31 July 2023 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

Rushtons is the trading name of Rushtons (NW) Limited Registered in England Number 07160541 VAT Reg No: 483 2595 21

A list of Directors is available at the Registered Office

Registered to carry on audit work in the UK regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales