Registered number: 07333911 Charlty number: 1143246 & SC045901 THE WORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Blliiii *Kth9AS0• 3110312023 c￿￿PANIEs HOiJSE Bishop Fleming THE WORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEEI CONTENTS Page Reference and Administrative Details of the Company. its Trustees and Advisers Foreword Trustees. Report Ind¢p¢ndfjnt AuditOTS' Report on the Financial Statements 10-13 Consolidated Ststement of Financial Activities 14 Consolldated Balance Sheet 15 Company Balance Sheet 16 Consolidated Ststement of Cash Flo 17 Notes to the Financial Stalements 18-35 THE WORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEEI REFERENCE AND ADMINISTRATNE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2022 Trnstees J Newman. Chair of Trustees l F MacDonald. Non-Execubve Director {resigned 16 Decernber 2022) J Rogers. Chief Execuknve A Malhotra. NoTr•Executrve Director (appointed 1 September 2022) G R H Dawes. Non-Executive Director (resigned 5 July 2022} A Williams, Non-Executive Director (resigned 15 September 2022) D Langton. Non-ExwJtive Director E Bannemian, Non-Executive Director K A Fraser. Non-ExecutTrve Director N L McKenna, Non-Execulive Director R Hill. Non-Execulive Director L Winward, Non-Executiv8 Diredor {appointed 1 September 20221 J Abboud. Non-Execub"ve Director {appointed 1 September 2022) S L Munro, Non-Executive Director J G Restell. Non-Executive Director Company reglstered number 07333911 Charlty reglstered number 1143246 & SC045901 Registered office Vertigo Cheese Lane Bristol BS2 OJJ Chief executive officer J Rcgers Independent auditors Bishop Fleming LLP Chartered A¢wuntants Statulory Auditors 10 Temple Back Bristol BS16FL Bankers HSBC Bank PLC Cabot Circus Brisl BS138A Sollcitors TLT LLP 1 Redcliff Street Bristol BS16TP Page 1 THE WORKFORCE DEVELOPMENT TRUST LIMITED IA COMPANY LIMITED BY GUARANTEEI FOREWORD FOR THE YEAR ENDED 30 SEPTEM8ER 2022 The chair presents his ststemenl for the year. We are pleased to present our annual reFQrt together wih the 8ULlited (x)nsolidaled financial statements of the Workforce Development Trust Limited {Ihe Group'l for the year ended 30 September 2022_ The year ended 30 September 2022 has been a pwtive year for the Group, 7% grovrth in revenue compared to 202(k21, contributing to the maintenance of a sound financial base for the organisation, with a surplus of £704.793 for the ￿ar {2021". suWus of £227.220). This gives us the opportunity lo further invest in the services that we prowde. Our Consultancy and Research division along wilh our SFJ Awards subsidiary saw positive performance in the year. Our People 1st Intemational subsidiary showed the start of some positive recovery from the effects of the P8ndemic. During the year, the Group helped improve the skills of over 160.(M)O individuals and supported over 1.000 or9anisations operaling in our sectors. Key highlights include.. Development of the Level 3 Award in Supporling Survivors of Dome51ic AtNJse. Across health. justice. hospitaltty. retail. travel and awation we have helped improve standards for app￿ntICeShlps. Our heakh apwenticeship stsrKlards alone have had over 58,O¢J) downloads. Delivery of over 1.100 End-Point Assessments for apprentices vthing in public services. Over 100.000 leamers have actively used our eLeaming ￿UrseS this year to ￿Ver their statutory and mandatory training. Our eRostering solutions have been used by over 12.C(MJ users. saving around 45.000 doclors hours. Transforming workforce skills through training over 3,O¢XI participants in ￿r WorldHost programme and provided custom certifiGats"on to 36 training programmes Our Heaf(h Heroes Awards took pla￿ in person thi8 year. a g￿at ceremony lo shine a light on the In￿diblY high standard of work and the wtal role playeij by both apprènts"rÉs and suprx)rt workers. who make up roughly 400A of the NHS. M College Restaurant of the Year Award. the award recognises the hard work of chef lecturers and sludenl brigades that run edlege reslaurarts. a partnewship between peop￿ 1s1 and AA Hotel Servi￿. Inlemallywe have o)ntinued to vA)rk lowards ensuring that we have a L￿MOn cufture across the Workforce Development Trust group. the￿bY enabling us lo delrver hvJh qtlalty services and supwt to all the sectors in which we operate. We believe that the Worklorce Development Tnjst has a very solkl foundation which wll enable us lo continue to SUPPK)rt employers and employees io deliver their Ml81 serwes. The Workforce Oevelopmenl Twst has issued an impact rep￿ for 2021122 to highlight the many Wa￿ that we support the skills development of individuals and teams across a broad range of seclors. both in the UK and inlemalionally. This can be found on our website eremy Chair ewman i%igi zLcs Page 2 THE WORKFORCE DEVELOPMENT TRUST UMITED (A COMPANY LIMITED 8Y GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022 The Trustees present their annual report together with the audited finanual statements of the Company for the 1 October 202110 30 September 2022. The Annual Report serves the purposes of toth a Trustees. Report and a directors, Report undef company law. The Trustees confirm that the Annual Report and financial ststements of the charitable company comply with the current statutory requirements. the requirements of the tharitable companls governing document and the provisions of the Stalernent of Recomrnended Practice ISORPI applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS1021 (effective 1 January 20191- Objectives and activitie5 . Policies and objectives T9 5UPPOrt the development and effective use of workforce skills to provide serv￿$ for public benefit by. bul not limited to.. Promoting and advancing workforce education, training and skills through the development of frameworks. capabilitses, competences. knowledge and qualtfi¢ations Improving the design and implementathJn of workforce development practices and policies through research. anal￿1$ and the provisiorE of insights and experknse Providing integrated leaming. accredilalion and digital solutions that in(Tease the effe¢tiveness of workforce skills development. deployment and management Undertaking and assisting in the identification, design and recognition of continuing professional development for individuals and teams As the UK wide Sector Skills Council for Health and Justice, li￿nSed by the UK Govemmenl, the company holds a unique place in these sectors. 11 is our aim to contribute to the preservation and protection of good health in the United Kingdom by contributing to the stralegic developfflent and improvement of the health sector workfo and a¢fvancing the education, training aTrJ skills of that workforee public benefit. The company will continue lo undertake work of this sort to the benefit of public for the foreseeable fvture. In setting objectives and planning for acbvibes. the Trustees have given due consideration lo general guidance published by the Charity CornmisS￿n relating to public benefi( incjuding the guidance 'Public benefit.. running a charity IPB2)'. b. Strategies for achieving objectives The companys overarching strategy continues to be to develop a self-sustaining business model via the provision of a range of products and services to the hea￿ and justice sectors that create a better skilled and flexible workforce. Page 3 THE WORKFORCE DEVELOPMENT TRUST UMrrED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 30 SEPTEMBER 2022 Objectives and activities (CONTINUED ¢. A¢tivities undertakon to achiove objectives During the year ended 30 Sept8mber 2022 th8 company has continued lo pursue its strategic aims through activities that have include(l= Development of the Level 3 Award in Supporting Survivors of Domestsc Abuse. Across health. justice. hospitality. retail. travel and aviatK)n we have helped improve standards for apprenticeships. Our heajth apprenti￿ship stsndards alone have had over 58.000 downloads. Delivery of over 1.100 End-Point Assessments for apprentices working in pu￿1¢ services. Over 100.000 leamers have actively used our eLeaming courses this year to cover their statutory and mandatory training_ Our eRostering solub'ons have been used by over 12.000 users, saving around 45,000 doctor5 hours. Transforming worklorce skills through training over 3,000 paiticipants in our WorldHost programme and provided custom eertification to 36 training programmes Achlevements and perf0m￿nCe a. Revfew of acllvltles All acts'vities are geared towards our vision of organisations to "improve people's lives by enabling the effective development and deployment of the worlrforce who deliver services for public benefit.. Strategic and operational plans are approved by the Ex￿lIVe Team and our Board. Performance KPIS against objectives are systematically monitored and rewewed regularty al all levels. Speciffc projects are also evaluated and assessed for impact_ Performance, financial management and planning are combined with robust risk management. The Board and Executive Team also perM)dically assess their own performance. Once again during 2021122 the organisation has substantially achieved its objectives as set ¢)ul in the operational plan. b. Factors relevant to achieve objectives The Board continues to fvnction effeclively and ctjrrentty meets five times per year with a number of stra19gic development activities factored in.11 has established robust finance. contracting. personnel and IT systems and recognises the need to secure the fulure through a sustsinable business model. Page 4 THE WORKFORCE DEVELOPMENT TRUST UMITED IA COMPANY LIMITED BY GUAIiANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022 Financial review . Going concern The forecast for the following financial years IFY22f23 and Ff23f24} are for surpluses of £453k and £679k respectively. The cashflow projections estimate that cash reserves wll increase by -£1 m over the following twelve months. further positive net cash inllows to follow thereafter. On the basis of the level of existing reserves and forecast increases to those reserves over the next Iwo years, we believe that The Worlrforce Devdopment Trust Limited is and will continue to be a going concem for the foreseeable future and therefore consider the going concem basis io be appropriate. Further details regarding the adoption of the goin9 concem basis can be found in the accounting policies. b. Rgserves Doli At 30 September 2022. the Workforce Development Trust hokls cash reserves of £7.6m and balance sheet reseThes of £9.6m. Of the balance sheet reserves. £5m is set aside as the Designated Reserve to ensure orderly settlement of the CoMpan￿S contracted liabilities if required. This comprises £0.6m in respect of Afc redundancy costs. £3.4m estimated running costs for six months and £1.Om as contingency. Our reserves policy will enable the organisatton to navigate difficull market ￿)ditiOnS over the next 5 years and ensure that the organisation is sustsinable into the foreseeable fvture. c. Prlnclpal rfsks and uncertalntles The Workforce Development Trust recc*Jnises its obligation to identify and review its exposure to risk. It has agreed strategy and policy documents in place and its risk register is reviewed and monitored by the Governance and Audit Committee on a regular basis wth Tegular rep￿ts through to the Board. The key risks identified in 2021122 were.. Failure to meet financial plan and achievefflent of gr￿p wide finanaal targets; Cyber-security,. Delivery of kay contracts: Compelttion and reputation- and Recruitment and retention of key people. A serres of measures lo control. mitigate and minimise Ihe effects of risk are in place. inclLtding developing and maintaining a diverse range of products and services and income sources in order to reduce the risk of over reli8nee on a single source of income and sm811 number of products available lor sale. The company has taken out insurance policies to cover key risks in respect ot. Employer liability, Directors and officers liability- Professional indemnty. and Combined liability. Page 5 THE WORKFORCE DEVELOPMENT TRUST LIMITED IA COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2022 d. Flnanclal revlew Total Group incoming resour￿$ for the year amgunted to £11.349.81212021: £9.362.3571 and total expenditure £10,645,019 {2021= £9,135,137) resulting in a surplus of £704.793 (2020-. surplus £227,220). By far the largest proportion of expenditure related to slaffing and overhead costs. which are predominantly fixed. We continue to support and flex our core slaff through the use of associates and fixed temi contracts in order lo meet demand. As at 30 September 2022 cumulative reserves amounted to £9.645,001. Structur•. governanc? and rnanag•ment . Constitution The Workforce Development Trust is a company knmited by Guarantee (number 07333911) and is a registered Charity in England (number 1143246) and Scotland (number SC0459011. Its governing document is its Memorandum and Articles of Association which was last updated 9 June 2015 and members of the Board of Trustees are also directors of the company in conjundion wth the executive directors. The Workforce Development Trust has three wholly owned tradirwj subsidiaries: SFJ Awards Limited (SFJA)- This subsidiary is an awardin9 tfv)dy for the Justice Sector. It operates in the UK and overseas. Any profits made by SFJA will be donated bad( lo the Workforce Development Trust under Grft Aid arrangements. People 1st Intemalional Limited. This subsidiary provides strategic services to the hospitality. retail. travel and aviation sectors from the predecessor body. It operates in the UK and overseas. Any profits made by the subsidiary will be donated back to the Workforce Development Trust under Gift Aid arrangements. The National Skills Academy for Health Limrted {NSAH). This subsidiary company provides serviees to the health and education sectors based on the WoA(force Development Trust remit, products and services. It operates in the UK. Any proffts made by NSAH will be donated back to the Workforce Development Trust under Grft ￿'d arrangements. b. MethZ) The notes on pages 18 to 35 form part of these financia ststements. Page 16 THE WORKFORCE DEVELOPMENT TRUST LIMITED IA COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2022 2022 2021 Cash flows Irom operating activilies Net C8sh used in operating activtknes 1,627,085 1404,993) Cash flows from investing activities Interest received 36,379 10.905 (255.8581 {349.726} (291.512) {311,890) Purchase of intangible assets Purchase of tangible fixed assets Net cash used in investing activitles (510,991) (650.711) Change in cash and cash equivalents in the year Cash and cash equivalents at the beginnirvJ of the year 1.116.094 {1,055.704) 6,523.604 7.579,308 Cash and cash equlvalents at the end of the year 7,639,698 6,523,604 The notes on pages 18 to 35 fomi part of these finanual statements Page 17 THE WORKFORCE DEVELOPMENT TRUST LIIIJITED (A COMPANY LIMITED B Y GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 GENERAL INFORMATION The Workforce Development Trust Limited is a tharitable company Inc￿￿ed in England and Wales. The registered office is Vertigo, Cheese Lane, Bristol, BS2 OJJ. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounb'ng and Reporbng by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2019}. the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Workforce Oevelopment Trust Limited rneets the definition of a public benefft entity under FRS 102. Assets and liabilib'es are initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting Fdicy. The Consolidated Ststement of Finanual Activit￿ (SOFA) and Consolidal8d Balance Sheet consolidate the financial statements of the Company and its subshdiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Company has taken advantage of Ihe exemption allowed under section 408 of the Companles Art 2006 and has not presented its own Ststement of Financial Activities in these financial statements. 2.2 COMPANY STATUS The company is a company limtled by guarantee. The members of the company are the Trustees named on page 1. In the event of the ￿MpanY being wound up, the liability in respect of the guarantee is limited to £1 per member of the company. 13 GOING CONCERN The Trustees assess whether the use of going concem is appropriate, i.e. whether there are any material uneert8inties related to events or conditions that may cast significant doubt on the ability of the company lo continue as a going concem. The Trustees make this assessment in respect of a period ol one year from the date of approval of the financial ststements. The Trustees have assessed the cJJrrent trading condrtions and the financi81 forecasts. and have considered altemative scenarios. Under all secanarios reviewed the Group has sufficient reserves to enable it to continue as a going concern. For this reason it continues to adopt the going concern basis in preparing the financial statements. Page 18 THE YIORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 ACCOUNTING POLICIES (continued) 2.4 INCOME All income is recognised once the company has entidement to the income, il is probable that the income will be received and the amount of income receNable can be measured reliably. Other income is recognised in the period in whith it is recENable and to the extent ihe goods have been provided or on completion of the service. Grants received are recognised in the Ststement of Financial Aclrvilies as voluntary income and dassified as restricted or unrestricied depending on the terns attached to them. Income on long lemi contracts is recognised in the Statement of Finanaal Actlvities to reflect the proF)Ortion of work carried out up to the year end. Where incoming resources are received in advance they are deferred to the period to which they relate. analysis of the movement on deferred income is included in note 16. 2.5 EXPENDITURE Expenditure is recognised once there is a legal or conslruclive obligatN)n to transfer economic benefit io a third paty. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditu￿ ts classified by activity. Expenditure on charitable activities is incurred crf) diredly undertakn'ng the activrties which further the Group's objectives. as well as any associated support costs. 2.6 BASIS OF CONSOLIDATION The financial statements consdidate the accounts of the Workforce Developrnent Trust Limited and all of its subsidiary undertakings {'subsidiaries'). The company ha5 taken advantsge of the exemption conlained within sertion 408 of the Companies Act 2006 not to present its own Income and expendr¢ure account. The in￿rne and expenditure a¢counl for the year dealt with in the accounts of the company was £266.538 surplus {2021= £558.151 surplus). 2.7 IKfEREST RECEIVABLE Interest on funds held on deposit is induded when receivable and the amount can be measured reliably by the company. this is nonnally upon notification of the intere51 paid or payable by the Bank. 2.8 FOREIGN CURRENCIES Monetary a55els and liabilitie5 denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date. Transactions in foreign currenaes are transLated into steding at the rate ruling on the dale of the transaction. Exchange gains arKI Iwes are recognised in the Consolidated Ststement of Finanoal Acliwties. Page 19 THE WORKFORCE DEVELOPMENT TRLIST LIMITED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 ACCOUNTING POUCIES (continued) 2.9 INTANGIBLE ASSETS Development Costs are ￿pitalISed within intaThJible assets where they can be identified with a specific product or project antiupated to produ￿ future benefits, and are amortised on the straight line basis over the anlirypated lrfe of the beneffts arising from the completed product or project. Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt. the balance of any relaled research and development is written off to the Statement of Financial Acbvrfies. 2.10 TANGIBLE FIXED ASSETS AND DEPRECIATION A capitalised fixed asset 1$ propety. such as land buildings andlor equipment with a cost or value equal to or greater than £S.000 at the dale of acquisition and which has an expected useful life in excess of one year. Capitalised fixed assets are acquired for the use in normal operations and are not under nomial circUmstan￿S acquired for resale. All fixed assets are entered into the financial ledger for inventory and finanaal reports.ng purposes. Assets ¢osting les$ than £5.000 are acLounted for in the financial year of purchase and are therefore not ¢apitaiised. Costs to keep as fixed asset in its nomal operating conditKm that do not extend the original useful life of the asset wll not be capitalised. These costs are expenses as repairs and maintenance during the year in which they are incurred. A review for impaimienl of a fixed asset is carried oul rf events or changes in urcumslances indicate that the carryng value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impaimient losses are re(x)gnised in the Statement of Financial Activities. Tangible fixed assets are carried at cost. net of depreciatKJn and any proWs￿Th for impairment. Depreciation is provided at rates calculated to write off the cost of fixed as5els. less their estimated residual value. over their expected useful lives on the following base5: Freehold propety Short-terrn leasehold improvernent works Fixtures and frttings Office equipment - straight line over 50 years straight line over 5 years. or life of lease if shorter - straight line over S >ears - straight line over 4-5 years 2.11 INVESTMENTS Investrnents in subsidiaries are valued at cost less provision for impairmenL 2.12 DEBTORS Trade and other debtors are recr•3nised al the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaKI net of anytrade discounts due. 113 CASH AT BANK AND IN HAND Cash at bank and in hand indudes ￿$h and short-term highly liquid investments with a short maturity of Ihree months or less from the date of acquisition or opening of the dep051t or similar account. Page 20 THE WORKFORCE DEVELOPMENT TRUST LIMITED {A COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 ACCOUNTING POUCIES (continued) 2.14 LIABILITIES AND PROVISIONS Liabilitres are recognised when there is an obligation at the Balance Sheet dale as a result of a past event, it is probable that a transfer of economic benefit wll be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company antic¢pates it will pay lo settle the debt or the amount it has received as advanced payTnents for the goods or semces it musl provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time value of money is material, the provision is based on the presenl value of those amounts. discounted at the pre-tax discount rate that refleds the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Staternent of Financial Activities as a finance cost. 2.15 FINANCIAL INSTRUMENTS The Group onFy has financial assets and financial liabilities of a kind that qualfy as basic financial instruments. Basic finanaal instruments are initially recognised at transaction value and subsequently measured at their setuemenl value the excepb'on of bank loans Ithich are subsequently measured at amorttsed cost using the effeclive interest method. 2.16 OPERATING LEASES Renlals paid under operating leases are charged to the Consolidated Stalement of Financial Activities on a straight line basis over the lease term. 2.17 PENSIONS The Group operates a defined c￿tribUtion pension scheme and the pension charge represents the amounts payable by the Group to the fvnd in respect of the year. The company operates a defined benefits pension scheme. The scheme is a multi-employer scheme where it is not possible. in the nonnal course of events. to identrfy on a consistent and reasonable basis, the share of underlying a&sets and liabilities belonging to individual partiapating employers. Therefore, as required by FRS102. the company accounts for this scheme as if il was a defined CODtribution scheme. The amount charged to the Statement of Finaniaal Activities represents contributions payable to the scheme in respect of the accounting periixl. 2.18 FUND ACCOUNTING General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and whth have not been designated for other purposes. Designated funds compTise unrestricted funds that have been set aside by the Tft￿tees for particular purposes. The aim and use of eath designated fvnd is set out in the notes to the financial statements. Restricted lunds are funds which are io be used in accordance specific restrictions imposed by donors or which have been raised by the Group for partieular purposes. The costs of raising and administering such fvnds are charged against the 5pwfic fund. The aim and use of each restricted fund is set out in the notes to the finanual statements. Investsmenl income. gains and losses are allocated to the appropriate fund. Page 21 THE WORKFORCE DEVELOPMENT TRUST UMITED {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMEp¥r The preparation of the financial statements requires management lo make judgements, estimates and assumptions that affecl the amounts reported for assets and liabilities as at the balance sheel date and the amounts reported for revenues and expenses during the ￿ar. However, the natur8 of estimation means the actual outcomes C￿ld drffer from those estimates. Estimates and judgements are Gonlinualty evaluated and are based on historical experience and other factors, including expeclations of future events that are believed lo be reasonable under the circumstances. Critical accounting estimates and assumptiw$.' Accrued and deferred income from long term contra¢ts". Long term contract balances are valued based on the stage of I￿}plet￿on of the contract at the year end by reference lo the costs incurred to year end and Ihe totsl expeded ¢J)sts of the contract. Where a contract is expected to be toss making, the balance is written down to the expected recoverable amount at the year end. Operating lease commitments: The company has enlered into commerThal propety leases as a lessee for the use of prtsperty and equipment. The dassfficalion of such leases as operdting or finance lease requires the company lo determine. based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in Ihe Statement of Financial Position. INCOME FROM CHARITABLE ACTIVITIES Unrestricted funds 2022 Total funds 2022 Total funds 2021 Edu¢￿tIon and training 6.564,717 6,5H717 5,656,818 TOTAL 2021 5,656,818 5.656.818 INVESTMENT INCOIAE Unrestrlcled funds 2022 T(rtal funds 2022 Total funds 2021 Invesknent income 36.379 36.379 10.905 TOTAL 2021 10,905 10.905 Page 22 THE WORKFORCE DEVELOPMENT TRUST UMITED (A COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 ANALYSIS OF EXPENDITURE BY ACTMTIES £tivltles undertaken directly 2022 Support costs 2022 Total funds 2022 Totsl funds 2021 Education and training 4,636.494 2.227.743 6.864,237 6,410,144 TOTAL 2021 4,313.103 2.097.041 6,410,144 ANALYSIS OF DIRECT COSTS Education and Training 2022 Total funds 2022 Total funds 2021 Staff costs Depreciation Consultancy Bad debt provision Travel and subsistence Subscriptions Apprenticeships VAT adjustments Difference on foreign exthange Loss on disposal of fixed assets 3.362.857 414.907 662,163 {25,468) 134.605 13,188 70.212 (516) (254) 4,800 3,362,857 414.907 662.163 (25,4681 134,605 13.188 70.212 (516) (254) 4.800 3.292.570 348.973 517,692 28,462 66.687 12.093 48.664 (1,522) {516) 4.636.494 4.636.494 4.313.103 TOTAL 2021 4,313,103 4,313,103 Page 23 THE WORKFORCE DEVELOPMENT TRUST LIMITEO {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 ANALYSIS OF EXPENDITURE BY ACTJVMES (CONTINUED ANALYSIS OF SUPPORT COSTS Education and Traintng 2022 Total funds 2022 Total funds 2021 Staff costs Insurance 1.006.125 69,137 8,050 54.818 211.856 44,047 16,965 123,506 521.738 10,801 137,078 23.622 1.006.125 69.137 8,050 54.818 211.856 44,047 16,965 123.506 521,738 10.801 137,078 23,622 1,002,694 68.477 4.752 77.643 50,092 27.954 29.939 190.143 474,437 26,227 119.583 25.100 Bank tharges Office costs Staff recruitment Agency and other staff costs Professional fees Premises costs Computer costs Travel and subsistence Advertising and promotion Governance costs 2.227.743 2,227.743 2.097,041 TOTAL 2021 2.097.041 2,097,041 NET INCOMING RESOURCESIIRESOURCES EXPENDED) This is stated after charging: 2022 2021 Depreciation of tangible fixed assets Amottisation of intsngible fixed assets Auditors. reffluneration Operaling lease rentals 92,922 402,459 22.000 8.250 89,437 364.615 20.525 21,625 Page 24 THE WORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 STAFF COSTS Group 2022 Group 2021 Company 2022 Company 2021 w￿e$ and salaries Social security costs Contribution to defined contribution pension schemes 5.381.401 431,016 5.309,114 401.414 3,701.236 431.016 3,655.688 401,414 236.730 239,535 236,730 239,535 6.049.147 5,950,063 4,368,982 4.296.637 The average number of persons employed by the Cornpany during the year was as follows: Group 2022 No. Group 2021 No. Operational Stafl 118 The number of employees whose employee benefits (exduding employer pension ￿Sts> exceeded £60.000 was.. Group 2022 Group 2021 No. In the band £60,001 - £70,IxIO In the band £70.001- £80,000 In the band £80.001- £90.000 In the band £90.001- £100.000 In the band £100,001- £110,000 In the band £140,001- £150.000 Total temiinalion payments amounted to £42.923 in the year12021: £18.468). The key rnanagernent personnel comprise the Trustees and the Senior Management Team. The total arnount of ernployee beneffts lincuding employer pension contributions) received by key management personnel for their services was £657.992 {2021-. £411.498}. TRUSTEES. REMUNERATION AND EXPENSES In line with the provision in the goveming dor#Jment of the charity, the post of Chair is a remunerated position.. and the Chief Executive only receNes remuneration in respect of services provided undertaking the role of Chief Executive. and not in respect of services as a Trustee. Other Trustees have received payments from the charity in respect of their roles as Trustees. these Trustees will receive remuneration until their current term of office comes to an end. The value of Trustees remuneration, including employers pension costs, for the year was as follows; J Nevanan (Chair) £25.882 {2021'. £25.2501. and J Rogers {Chief Executive) £162.553 {2021.' £157.635). Page 25 THE WORKFORCE DEVELOPMENT TRUST LIMITEO IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 10. INTANGIBLE ASSETS GROUP Developrnent Goodwill Total COST Al 1 October 2021 Additions Disposals 1.814.663 255.858 14,800) 370,883 2.185,546 255,858 (4.800 At 30 September 2022 2.065.721 370.883 2,436.604 AMORTISATION At 1 Ortober 2021 Charge for the year 1.183.471 328,282 214.937 74.177 1.398.408 402.459 At 30 September 2022 1,511,753 289,114 1,800,867 NET BOOK VALUE At 30 September 2022 553.968 81,769 635,737 AI 30 Septernber 2021 631,192 155,946 787,138 Page 26 THE WORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 10. INTANGIBLE ASSETS (CONTINUED) COMPANY Development COST At 1 October 2021 Additions Disposals 1,796.903 255.858 (4.800) At 30 September 2022 2,047,961 AMORTISATION At 1 October 2021 Charge for the year 1,172,906 322,362 AI 30 September 2022 1.495.268 NET BOOK VALUE At 30 Seplember 2022 552.693 At 30 September 2021 623,997 Page 27 THE WORKFORCE DEVELOPMENT TRUST LIMITED IA COMPANY LIMrrED B Y GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 11. TANGIBLE FIXED ASSETS GROUP AND COMPANY Short4emi leasehold Fixtures and Office property ffttings equipment Freehold PrO￿rtY Total COST OR VALUATION Al 1 October 2021 Additions 1,429,427 214.829 121,046 144183 9,417 423,570 67266 2,118,226 291,512 1989) Disposals (989) At 30 September 2022 1.644.256 120.057 153.600 490,836 2.408.749 DEPRECIATION At 1 October 2021 Charge for the year 120.057 12.681 24.340 310,383 51.688 448,069 92,922 16,894 At 30 September 2022 21,842 120,057 37,021 362.071 540.991 NET BOOK VALUE At 30 September 2022 1.622.414 116,579 128.765 1.867.758 AI 30 September 2021 1.424,479 989 131,502 113.187 1.670,157 Page 28 THE WORKFORCE DEVELOPMENT TRUST UMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 12. INVESTMENT PROPERTY GROUP AND COMPANY Freehold investment property VALUATION Al 1 October 2021 484.716 At 30 September 2022 484.716 13. FIXED ASSET INVESTMENTS Shares in group undertakings COMPANY COST OR VALUATION At 1 October 2021 AT 30 SEPTEMBER 2022 NET BOOK VALUE AT 30 SEPTEMBER 2022 AT 30 SEPTEMBER 2021 Page 29 THE VVORKFORCE DEVELOPMENT TRUST UMITED {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 30 SEPTEMBER 2022 14. DEBTORS Group 2022 Group 2021 Company 2022 Company 2021 DUE AFTER MORE THAN ONE YEAR Amounts owed by group undertaknngs 75,000 75,000 DUE WITHIN ONE YEAR Trade debtors Amounts owed ty group undertakings Other debtors Prepayrnents and accrued in¢ome 1.485.644 1,817,685 755,253 2.729.489 3.449 256.390 903.876 3,469.382 1.830 331,480 11.177 407.178 1.830 557,453 1.903.999 2,376,968 3,744,581 4.781.568 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2022 Group 2021 Company 2022 Company 2021 Trade credilcKs Amounts owed to group undertakings Other taxation and $￿al security Other creditors Accruals and deferred income 252.881 319,250 166,454 262.808 308,736 88.441 2.236.849 456.056 112.176 2.014.893 308,736 88.441 1,983.252 456.056 111,244 1,411,671 2.886.907 2,902,375 2,546,932 2.241,779 Group 2022 Group 2021 Company 2022 Company 2021 Deferred income at 1 October 2021 Resources deferred during the year Amounts released from previous periods 1.794,431 2.199.343 1.297.275 1,661,967 1.849.671 1,794,431 1,701.197 1,297,275 11,794.431) (2,199,343) (1.297.275) (1.661.967} 1.849,671 1.794.431 1.701.197 1,297,275 Al the balance sheet dale the group was holding funds received in advance for projects spanning the year end. Income has been induded in the SOFA io represent the 5tsge of wmplebon of these projects and the excess has been deferred as appropriate. Page 30 THE WORKFORCE DEVELOPMENT TRUST LIMITED IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 16. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR Balance at Balance at 1 October 2021 Transfers September i￿out 2022 Income Expenditure UNRESTRICTED FUNDS DESIGNATED FUNDS Future staff liabilities 673.045 (55N70) 617.575 GENERAL FUNDS General Funds 8267.163 11.349,812 110,645,019) 55.470 9,027.426 TOTAL UNRESTRICTED FUNDS 8.940.208 11.349.812 (10.645.019) 9.645.001 Page 31 THE WORKFORCE DEVELOPMENT TRUST UMITED IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 16. STATEMENT OF FUNDS ICONTINUEDI STATEMENT OF FUNDS - PRIOR YEAR Balance at 30 September 2021 8alanee at 1 October 2020 Transfers inlout Income Expenditure UNRESTRICTED FUNDS DESIGNATED FUNDS Future staff liabilities 625.974 47.071 673,045 GENERAL FUNDS General Funds 8.087,014 9,362,357 (9.135.137) (47.071) 8,267,163 TOTAL UNRESTRICTED FUNDS 8.712.988 9.362.357 (9.135,137) 8,940,208 DESIGNATED FUNDS This fund has built up prior to and on transiknon to cover potential future staff liabilities arising from the TUPE of staff from Skills for Health. Followng staff changes since 2013. a significant proportion of this fund was released to leave a baLqnce refle¢Xive of the Current estimate of potential future staff liabilities in relation to those individuals. 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR Unrestricted funds 2022 Total funds 2022 Tangible fixed assets Intangible fixed assets Investment property Current assets CreditOTS due within one year 1,867,758 1.867.758 635.737 635.737 484,716 484,716 9,543,697 9.543.697 {2,886.9071 (2,886.907) TOTAL 9.645,001 9,645.001 Page 32 THE WORKFORCE DEVELOPMENT TRUST UMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS ICONTINUEDI ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unrestricted funds 2021 Total funds 2021 Tangible fixed assets Intsngible fixed assels Investment propety Current assets 1,670,157 1.670.157 787,138 787.138 484.716 484,716 8,900,572 8.￿0.572 {2,902.3751 12,902,375) Creditors due ￿thin one year TOTAL 8.940.208 8,940,208 RECONCILIATIOhl OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 18. Group 2022 Group 2021 Net income for the year las per Statement of Finanryal Actiwtiesl 704.793 227,220 ADJUSTMEKfs FOR: Depreciation charges Amortisation charges Dividends. interests and rents from investments Loss on the sale of fLxed assets Decreasel{increase) in debtors Decrease in creditors 92.922 402.459 136.3791 5,789 472.969 {15.468) 89.437 364.615 (10.905) (272.7491 (802,6111 NET CASH PROVIDED BYI(USED INI OPERATING ACTIVITIES 1.627.085 {404.9931 19. ANALYSIS OF CASH AND CASH EQUIVALENTS Group 2022 Group 2021 Cash in hand 7.639.698 6,523.604 TOTAL CASH AND CASH EQUIVALENTS 7.639.698 6,523,604 Page 33 THE WORKFORCE DEVELOPMENT TRUST LIMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 20. ANALYSIS OF CHANGES IN NEf DEBT At30 September 2022 October 2021 Cash flows Cash at bank and in hand 6.523.604 1,116,094 7,639,698 6,523,604 1,116.094 7,639.698 21. PENSION COMMITMENTS The Cornpan￿$ employees belong to three principal pension schemes. The NHS pension scheme for eligible staff which is a defined benefit scheme. Stsff are offered a defined contributions scheme administered by the National Employment Savings Twst. An Aviva pension scheme was brought in during the year ended 30 September 2015 on transfer from JSSC. NHS Scherne Only NHS employees TUPE'd over from the Universty Hospitals Bristol NHS Trust belong to the NHS scheme, which is a multi*mployer defined benefit pension scheme. As the company is unable to identify its share of the assets and liabilities of the scheme on a consistent and reliable basis, the scheme is treated by the company as rf it were a defined contribution scheme. in accordance with Section 28 of FRS 102. The pension cost charge represents contributions payable by the company to the scheme and amovnted to £86,939 {2021.. £91.086). Contributions totalling £11.551 (2021: £16.030) were payable to the scheme at the balance sheet date and are included in creditors. Defined Contribution Schemes The assets of these schemes are held separately from those of the company independently administered funds. The pension cost charge represents ox)ntributions payable by the company to the funds and arnounled to £207.687, hyo funds (2021: £249.132. tsvo funds). Conlribulions tolalling £32,354 12021: £34,160) were payable lo the fvnds at the balance sheet date and are included in creditors. 22. OPERATING LEASE COMMITMENTS At 30 September 2022 th6 Group and the Company had commitments to make future rninimum lease payments under non-cancellable operating leases as follows: Group 2022 Group 2021 Company 2022 Company 2021 Not18ter than 1 year Later than 1 year and ￿t later than 5 years 8.250 20.625 8.250 28,875 8.250 20.625 8,250 28.875 28.875 37.125 28.875 37.125 Page 34 THE WORKFORCE DEVELOPMEKf TRUST UMITED (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022 RELATED PARTY TRANSACTIONS Thg Workforce Development Trust Limtled is daiming the exemptj'on under FRS 102 Section 33 not to disclose transactions with wholty owned subsidiaries. 24. PRINCIPAL SUBSIDIARIES The following were subsidiary undertakings of the Company. Names Company nurnber Equity shareholdlng Basis ol ¢ontn The National Skills Academy for Health 07461613 Limited SFJ Awards Limited People 1st lntemali￿aI Limited 100% Fully owned and controlled 06926458 11332207 100% 100% Fully owned and controlled Fully owned and controlled The financial results of the subsidiaries for the year were: Names Income Expendlture ProfftllL0551 I Surplusl (Deficitl for the year Net assets The National Skills Acadèmy for Health Limited SFJ Awards Limited Pw)le 1st Intemational Limited 477.476 (201) 477,625 2.723.631 1.547.609 12.193.952) 11,577,334) 529.679 129,725) (1.463,6491 Page 35