Company Number: 01300119 GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee FINANCIAL STATEMENTS 31 August 2023 CONTENTS Page CHARITY INFORMATION CH￿RPERsON's REPORT MANAGEMENT BOARD'S REPORT 4-7 STATEMENT OF MANAGEMENT BOARD'S RESPONSIBILITIES INDEPENDENT AUDITORS, REPORT 9-11 STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNTI 12 STATEMENT OF FINANCIAL POSITION 13 STATEMENT OF CASH FLOWS 14 NOTES TO THE FINANCIAL STATEMENTS 15-25 GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED {By Guarantee) CHARITY INFORMATION For the year en(Jed 31 August 2023 Referenee and Administrative Information Charity name.. Charity registration number Company regislralioo number. Registered office and operational addiess: Gloucestershire Engineering Training Limited 273571 01300119 Barnwood Polnl. Corbnlum Avenue. GIOU￿Ster. GL4 3HX Managernent Board Appointment date J Brearley C Biggin G Miller (resigned 14111r2023} T Southgate A Powell A Kinder l Henderson S Biggs R Grey J Farrington H Gardiner L Marfey 2911111991 10102r2015 25111r2015 011LW018 0110212019 01108f2019 11110r2019 05108r2021 18101r2022 0311012022 0311012022 1910912023 Company Secretary R Hill 0610912021 Chltf Extcutl WThomas 0610912021 Senior Management Team W Thorna5 C Slerry E Phelpstead R Hoyland C Spender l Mustoe L Jones J Weatherfey Chief Executive Officer Head of Service5 Ileft October 2023) Learner Services Manager Finance Manager Aeademic Manager Quality Manager (from July 20231 Skills & Development Manager Training & Maintenance Manager Bankers Lloyds Bank PIC 19 Eastgale Street Gloucester GL1 1NU Audltors Hazlewoods LLP Staverton Court Chellenham GL51 OUX Solicitors Davies & Partners Rowan House Barnwood Gloucester GL4 3RT GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee} CHAIRMAN'S REPORT For the year ended 31 August 2023 CHAIRPERSON'S REPORT 2022-2023 Following on from 202112022 which was very much a transition year post COWD, 202212023 has been a much4mproved year for GET in terms of delivery, Apprenth"￿sh￿) on programrr£ delwery and End Point Assessment c<)mpletions. Current we have 66 le8mws who are out of the Apprenti￿Ship funding, however we have Sl￿SSIu11Y supported a further 92 through ErKI Point Assessment. GEF has developed and adapted significantly in ils operational approach lo ensure the Apprentices were trained to sVPPOrt our empkjyer Suc￿$s1on plann￿n9. Academic year 202212023 has an increased intake of Apprenli¢es11241, Level 4 {101, Level 31991 and Level 2115}. In addition to the Apprenti￿5. we had 8 new cohort of $4 HE leamer5 start on HNCID. Another great milestone for GET was our Ofsted inspection. There has been a lol of P￿$$ regarding the increased rigor of the new Education Inspection Framework and the challenging outcomes lor a high number of colleges and independent training woviders. GET achieved a 'Good 'grad8 for all aieas, and we were only two minor points away from achieving Outstanding. Whilst this is 8 very positive outcome for us, there is darily on the are8s we need lo improve upon which will be reflected in the SAR IS&lf-Assessmenl Report) and QIP (Quality Improvement Planl. One of these areas is the way we report the Quality of Educatitsn to our BoardlGovemors. There has most definitejy been an impact on the younger generation due to the closure of schools and CAG'8 Icenlre Asse55menls Grades) have had a negative impact on our learners, both academically and socially and the outcomes and progres5i0n into Year 2 of the Technical Certificate, where there has been a high nurnber of leamers fail their Math's and Materials units. GET has however provided support lo ensure most of the learner's progress. Higher Education reamers have been far more successful over the last 12 months whith 15 very posits.ve news. There have been agreements to prtsthde additional paid support for learner5 this academlc year at both Level 2 or Level 3 Technical Certificate and practical delivery. Just 5 learners failed one or more modules of their HNCID. A very big improvement in comparison to the previous ￿ Academic years, which is Ihanks to the dedication of the Academic Team and the support ofthe employers. As alway5. a review of the delivery year was undertaken. with measures put in pla￿ lo avoid similar issues with leamers f8iling. We have adapted th& curriculum delivery plan and allocated sessions attheend of (heyearlosupportlhose leamers who were close to passin9. Positively, all limelabled delivery for the practr'cal delivery was successfijlly compfeted by the first week in Augu31. Thanks tcs the dedication and support of the Staff within the Pr8ctii31 Delivèry Team, all the learners can now progress lo the development (Level 31 stage of their Apprenti￿shIP. Financially, as anticipated, we have performed well this 8cademi¢ yèar. with surplus of £87,598. Recruilmenl for 2023r2024 has been very positive, with the biggest intake lo date Level 3 Apprentices193 in Barnwood and 11 in Forest of Dean) and Level 4 Apprenti￿5(341. a lolal of 138 Apprentices and 39 new Higher Education learners added to the I￿rrent groups of HE learn8rs. Although the average number of Staff has remained the same year on ye8r, we have suc￿ssfUllY recruited additional Academic Tutors, ￿ Instructors, two Skills & Development Advisors. a Quality Manager and a Learner Liaison Officer lo support growth and sUC￿Ssion planning due lo relirernenl. Along with this recruitment drive we have agreed a S￿￿$s1On plan lo recruit two additional members of Staff every year for the next two years to support futureretirements. Commercial skills trarning is increasing with far more demand due to the appoinlrngntof a Training & Maintenance Manager. creating a more efficient operating model which has resulted in largely increased income. however extemal demand currently exceeds our capacity to deliver. A satellite centre in the Forest of Dean has been identified and we have opened fortrainiro in September 2023. The maln aim of the project is Its redLth our carbon footprint and to support the young AppientiGes in the Forest, with the logistical hallenga of getting intts Barnwood. Many are aged between 1&17 and non-drivers, who ale reliant on public transport which has not been the best. This will all¢)w the first years from the Forest to complete the Level 2 practul skills nearer home and only attend GET on a day rel08se basis in Years 2 and 3. We have now successfully managed the end of our shortfall deposit agTeetnents with all but of our customers. This was done to redu￿ Ihe company's liabilities and fin8nrE future growth,. we have agreed wth employer5 for them lo stop paying shortfall deposits and in relum GET will ringfence their ()utstanding refunds as designated lo offset thè Year 1 Apprenliceshipfunding deficiland lofinance growth. We have ag￿ed an intereslfree loan wilh on8 of our ernployer partners lo return the shortfall deposits over a period often years, wth the first payment made in August 2023. The shortfall deposll liabilty has reduced £222,919 year on year. It has been anoiher demanding year for everyone. these difficulties are r8ducin9 on a weekly basis. I want lo thank all the Staff at GET for their continued hard work. efforts. and commitmerts during these extremely busy and derranding limes. I would also like lo thank all our ojslorners and Board of Directors for their patience and ongoing support. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) CHAIRMAN'S REPORT For the year ended 31 August 2023 We are very mindful of the external pressures around the economy and continue to monitor and discuss any implications with our trusted erllployei partners on a ￿gUlar basis, this supports gur regular business plan and strategy review. This also included Ihe new educatsgn refotm5 around technical education and Ihe current review of the Apprenti￿Ship standards. Well done and a big thank you to everyone involved. Tristram Southgate Chalrperson Gloueèstershlre Englneerlng Tralnlng GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) MANAGEMENT BOARD'S REPORT For the year ended 31 August 2023 The Management Board presents its report, inclLKling the Directors. Report as required by the Companie5 Ad 2006. and audited financial statements for the year ended 31 August 2023. Structure, Governance and Management Govèmance Document The organisation is a charitable company limited by guarantee. The Charitable Company was estsblished under a Memorandum olAssocialion which established the objects and powers of the Charitable Company and Is governed under rts Articles of Association. In the event of the Charitable Company being wound up Iru5tees are required lo conlrfbule an amount not exceeding £20. Recruitrnent and Appointment of Management Board The Directors of the Charitable Company are also charity trustees lorthe purposes ofcharity18w and under the Company's Articles ofAssociation are known as trustees ofthe Management Board. Under the requirements ofthe Memorandum and Articles of Association membership will automatically teminate three years from the dale of admission to membership_ Members may then reapply as provided in art￿le 10(2}. ffhe wording of 10(21 15 beli)w}. 10121 Membership is open to organisationslcompanies which are engaged in industry, engineeftng. manufacturing or commerce and who.. al Apply to thé charity in the form required by the Diredors.. and bl Are approved by the Directors. The Management Board consists ofa Chairperson and V￿e Chairperson, the minimm numberof Direciors shall be 4 aThJ the maximum sh811 be 12 and the majority of the Board musl b¢'lnduslry Directors.. To qualify for appointment as 8 Director a persorb must-. al be employed by or be a Director of a company or organisation involved in industry, engineering manufacturing or commerce., or bl have previously worked in industry. enginèèring manufacturing or commerce for a number of years so as lo have exlenswe experience of such sectors., or cl have professional or other relevant skills I"In¢Jependent Directors.). Management Board Induction and Tralnlng As dired ¢uslorners and users of the Charitable Company's training and developmènt resource In-coming Direciors a generally familiar with the operational goals and principles of the Association. Thos& who are ntst are provided with an appropriate induction. Ri¥k Management The rnajoi iisk to which the Charitable Company is exp95ed 15 the reduction in Govemmenl funding. The Managernenl Board monltor and evaluate this and other risks by holding wular Board meetings. Budgets are prepared and upd8ted lo predict possible losses arising from these risks. Organlsatlonal Structur• The Charitable Company Is divided into four departments.. Learner Services Team, Skills Developm8nt TÈ8m, Pr8etical Delivery Team, and Academic Delivery Team. The day-to-day managernenl ofthe Charitable Company rests with the CEO, with delegated responsibilities to the Senior Management Team. The Leamer Services, Finance and IT Team prowdes support services throughout the organlsation. The Skills Development Tearn reviews. inlemally quality assures the learner portfolios and prepares the learner for End Point Assessment, with the 8UPPOrt of the employer to ensure that the apprenticeship programme is achieved. The Practical Delivery Team provides off théjob training on the wod(shop whereas the Academic Team provide the dassroom-based elements which includes our commercial HE offering and functional skills. All teams are now working far doser together within tre organisalion lo meet the needs of the apprenticeship standard arKI individual learnerjourney. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) MANAGEMENT BOARD'S REPORT For the year ended 31 August 2023 As a Chxrty we regulady benchrnark our remuneration and beneffls packages against a variety of measures- firstly we look81 the local market rates by comparing oursalaiies and T&Cs against ourcornpetilors, we look at benchmarking against olherGroup Training Associations IGTAI across the UK and use national slalislics from public research IKPMG etc.). We aim to make sure we are al least competitive and are paying the market rates but also need lo make our offer attractive wilhoul being overly excessive to the market posib"on. This activity is a)mpleied internally by HR and thé CEO and presented and discussed at Board level. Very recently board directors who have a 5uilable background have also carried oul these reviews as a supporting measure. Extemal Stakeholders Gloucestershire Engineering Training Limited is audited by the Department of Education IDtsfEI, Education and Skills Funding Agen¢y IESFA), Office for standards In education (Ofstedl and Education Awarding Organisats'ons (Aos) in order to deliver approved Apprenticeship Standards. Objective$ and Str8tsgi¥s The Memorandum 8ndArticles ofAs50cialion ofthe Ch8rflable Company state that the objeds foiwhich the Charitable Company 15 established are.. to promot¢ 8nd advance adequate trainlng ol persons employed or intending lo be empk*yed in industry and comrnerce. subject lo the forego¢ng object, to exiend such training to members of the publicgenerally. The objedives ale achieved by the provisions of a training centre, offering both the Skills and Knowledge aspects of the programm8, and contracts with each Ernplc>yer. The contracts are funded by the Apprenticeship Levy for full Apprenticeships oron a commeroal basi$forSkillstraining. There have been no majorpolw ¢hanges during the year. Strategic Report Achievements and Performance Given the challang8s wa have faced (Ivar the last thirty-six monihs. the Trusle8s think it is commendable how the org8ni5ation and the staff wthin have adapted and grown the business and o￿ned 8 satellite centre within the Forest of Dean. Practical Delive the training year ended on time a high number of first year learners completed Ihwr training. 98 out of the 113 recruited passing. The learners who were not successful were withdrawn frorn the apprenticeship scheme by their employers for failing to meet the behaviour81 reqvirèments of the apprenticeship prograrnme. Some learners finished slighlty earlier and retumed to Iheir ernployer's premises ahead of the revised dale or were given additional free training lo support the stretch in their development. The 1S level 2 apprentices are progressing wo118nd thiee have completed their end point assessment IEPAI. Academic Oelive the Academic deliveryfinished as planned. We have most definitely nOt￿d a difference in abilitie8 of the younger apprent￿eS this academic year. Far more support sessions have been provided over the last Iwelve nKinths, particularly in areas such as Malhemalics and materials lor the level 3 apprentices. Failure rates forlhe academic year 2022-2023 have improved significantly. Leamers who unfortunately failed modules were given the opportunity to repeat the training 81 the ènd of the academic year or relum for a short period in September 2023. The failures were down the learners, attitude and engagement or in some instances capability or poor retention. Apprenb'ceship success rates at GET did drop as low as 67%, with the nation818ver8ge as low 8$ 53.4 /0, thi5 was due lo leaver and the delay in complèting EPA. however these are now increasing vary iapidly to thè level we are 8CCUStomed lo, and we have 8 tsrget to leach 85Q/o plus. Skills Develo ent Team - A high volum8 of work was carried out lo keep le8rners progressing. the recruitment of dedicated staff to support EPA has been very positive. staff have provsded well above and beyond the requirements of the on-programme training. We have $upported employers with more engagern8nl visits and provided support for EPA. such as interview techniques and reviewing reamer EPA submission documents. There is Still a delay in leainerswho need tr) complete EPA (End Point Assessment), 57 currently. The team is working hard with the employers to get the app￿ntiCeShrps completed and we have reemited a further member of staff within thè téam to support this and support SUC￿$S1on planning. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) MANAGEMENT BOARD'S REPORT For the year ended 31 August 2023 HE numbers interestingly have also seen a significant increase, with more learners following a level 4 apprenticeship route lo Complete their HNCID. The commercial training aspect at GET continues to grow in both skills training 8nd direct NVQS. and the appointment ol a skills and maintenance manager has support this growth. We have been able to show more COFnmilmenl to our charitable obiecuves Ihls year and have provided support for two external organisations as well as SUPPOrting 50rne individuals to training at 8amwood. Financial Revièw The budget for2022-2023 predicted a surplus of £329k. 6 months into the year, we provided a reforecast for the remainder of the year which saw this figure drop by £152k lo end the ye8r with a surplus of £177k. This reduction was mainly due to the timing ol End Point Assessment completions and addition81 staff re¢ruilmenl. We ended 2ts22-2023 with a nel surplus of £88k, £89k less than the forec8sl due lo annual accrued income adjustment for leavers belng partly offset by salary savings from delayed recruilmenl. During this financial yèar. the shortfall deposit reserve has inuea5ed by a lurther £26k due lo changes in the GET shortfall depositarrangements. The 2023-2024 training year has started very well w¢th 137 leamers starting Ihetr apprenticeships (Level 3 & 4) at GET in September2023 and logelherwith the successes of this year. we are expe¢ting lo end 2023-2024 wrth a surplus of£324k. Principal Funding Sources The principal funding source is primarity our employercuslomer base supported by the Education and Skill Funding Agency funding for Apprenticeships in the rnain the Apprenti￿Ship Levy. All businesses ￿gardlesS of size are supported by the apprenticeship levy, either via 5°h contribution from the erllployer or co-inveslm6nlapproach. We understand the requir¢menl$ under Ch81ily regulations to dis¢lose our Involvement in fundiaising. The Charity is tv)t involved in such activitie5 a5 all monies are generated from commercial activities and charitable activities fvnded by local employers, supported by government funding. The Charitable Company does not have any volunteers. Investment Policy The Charitable Company does not have an irhvestment portfolits. All funds are held in bank deposit accounts and monitored regularly by the Board. Reserves Policy The Tru51ees reserves policy is to build and have sufficient funds lo cover 3 to 6 months, operating costs rfapprenliceship fvnding Geased lo exist. Retained ￿SerVeS are currently £689k, which is al the lower end of this lange but we ¢onlinue lo work towards building up this reserve further. We also have designated fund5 to finance what were the shortfall deposit5 from employers and provide financial security to the charitable organis81ion. Plans for Future Periods A new 10-year lease has now been si9ned with a 5 year break out option, with the following agreed as part of our Strategy and Business Plan.. Increase the numberofApprentices undertakingthe Level 3 programme to an optimum numberof95-105al Bamwood with ojrrent staffing levels. Convert th8 ffl8jority of our Comrnercial HE on lo Level 4 Apprenticeship pro9rams. Consideration to incre8sing the number of leamer5 in acadernic sessions from 12-16. Continue tr) grow and improve our comrnerci81 offering. which has shown very positive growth in 2022123 Identity new income opportunities such as delwering more commercial academic courses such as CAD-Computer aided design, Abrasive wheels. Consideration to evening delivery lo support comrnerrAal training around welding and electrical safety Forest of Dean GET sile now oper81ional wfth 10-year lease slartlng September 2023 and presently occupied with 10x Year 1 Level 3 apprentices. Public Benefit The trustees confirm thatthey have Complied with the duty set out in section 4 of the Charities Act 2011, to have due regard to the public benefit guidance published by the Charity Commission. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED18y Guarantee) MANAGEMENT BOARD'S REPORT For the year ended 31 August 2023 Auditors Hazlewoods LLP have exwessed their willingness to contlnue Sn offi￿. statement of Disclosure to Auditor al so far as the trustees of the Management Board are aware, there is no relevant audit infomialion of which the Charitable Company's auditors are unaware, and bl they have taken all steps that they ought to have taken as Iruslees of thè Management Board in order to make themselves aware of any relevant audit infomiation and lo establish th81 the Charitable Company's auditors are aware of that information. Thls report has been prepared In accordance with the specAal provisions of Part 15 of Ihe Companles Act 2006 relatlng lo small companies. By order ofthe Board T Southgate Chairperson A Powell Vice Chairperson Date.. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) STATEMENT OF MANAGEMENT BOARD'S RESPONSIBILITIES OF GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED For the year ended 31 August 2023 The man8gemenl board are responsible lor preparing a trustees, annual report and fjnancial statements in accordan with applicable lawand United Kingdom Accounting Standards (United Kingdom Generally A(tepled Accounting PraCU￿). Cornpany law requires the trusteesto prepare financial statements for each financial year. Under company lawlhe Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the Charitable cornpany and of the incoming Tesources and application of resources. including the inwme and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are requiredlo.. select suitable accounting polioes and Ih8n apply them consistently. observe the methods and principles in the charities SORP (Accounting and Reporting by Charities- S18temenl of Recommended Practice). make judgements and estimates Ihat are reasonable and prudent. p￿pare the financial staternenls on tho going concem basis unless it is inappropriate lo presume that the charitable company will continue in business. The management board are responsible for keeping adequate accounting records that are suificienl lo show and explain the charitable company's tFanSaclion$ and di5c105e with reasonable accuracy at any time Ihe financial position of ihe charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2(X)6. They are also responsible for safeguardlng tl)e assets of the charitable company and hence for taking reasonable steps for the prevention and delection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial inform8litsn in¢luded gn the charitable company's website. Legislation in the United Kingdom goveming the preparation and di55emination of fin8nryal statements and other informatlon Included in annual reports may differ from legislation in olherjurisdictions. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) INDEPENDENT AUDITORS REPORT TO THE MANAGEMENT BOARD OF GLOUCESTERSHIRE ENGINEERING TRAINING LIMITEO For the year ended 31 August 2023 Opinion We have audited the financi81 slalemenl3 of Gloucestershi￿ Engineering Training Limited (the 'th8ritablÈ ¢ornp8ny'l for the yearended 31 August 2023 which comprise the slalemenl of financial activities. balan￿ sheet. stalemenl of cash flows and the related notes to the finanaal statements, including a summary of significant accounting policies. The financAal reporting framework that has been applied in theirpreparalion is applicable lawand United Kingdom Accounting Standards, induding Financial Reporting Standard 102.. The Financial Reporting StsrKlard applicable in the UKand Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statements= give a true and fair view of the state of the charitable companys affairs a5 al 31 AtJgust 2023 and of its incoming resources and application of resour￿$. including its income and expendilvre, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in ar£ordance with the requirements of the Cornpanies Act 2006. Basls for opinion We conducted our audit in accordan￿ with Intemational Standards on Auditing IUKI {ISAs IUKI) and applicable law. Our 18sponsibililies under thosè stand8rds 8r8 furthèr described in the Auditor's responsibilities for the audit of the financial statements section of our ieport. We are independent of the charitable company in accordance with the ethical requlrements that are relevant to our audlt of the financial statements in the UK, induding the FRC'S Ethlcal Standard, and we have fulfilled ourother ethical responsibilities in accordance with these requirernenls. We believe thatthe auditevidence we have obtained rs suffiaent and appropriate to provide a basis for our opinion. Conclusions relatiny to going concern In auditsng the fjnancial statements. we have conclvded that the TTUStees' use of the going concern basis of accounllng In the preparation of the financial statements is appropriate. Based on the work we have performed, wo havg not identified any material uncertainlie5 relating to évènts or ctsndilions that. individually or collectively, tnay cast significant doubt on the charitable company's obility to continue as a going concem for a period of at least twelve months from when the original ffinancial statemen15 We￿ authorised for issue. Our responsibilities and the responsibilities of the trustees with respect l¢Tr going cOn￿M are descrtbed in the relevant sections of this report. Other information The truslees are responsible for the other infomalion. The other information comprises the information induded in the annual report other than the financial statemersls and our auditorfs report Ihereon. Our opinion on the financial statements does nc*t cover the other information and, except to the extent olherwi$è axpliatly stated #i our report, we do not express any fom of assurance conclusion thereon. In connedion with our audit of the financial statements, our responsibilty is to read ihe other informalicn and. in doing so, consider whether the other infomiation is materially inconsistent wth the ffinancial statements, or our knowledge obtained in the auditorolh8rwise appears to be materially misslaled. If we identify such malerial inconsistencies or apparent rnaterial misslatement5. we are required lo determine whether there is a material misstatement in the finan¢i81 $tslemenls or a malerfal mlsstatemenl of the other information. If, based on the work we have performed, we concludè that there is a material misstatement of this other information. we are required to report thatfact. We have nothing to raport in this regard. Oplnlons on other matters prescrlbed by the Compan5es Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infomiabon given in tha Trustees. Report. which includes the Directors, Report prepared for the purpose5 of company law for the financial year forwhich the ffinancial statements are prepared Is conslslenl with the finandal statements,. and the Directors, Report included within the Trustees, Report has been prepared in ac￿rdanCe with appIl￿ble legal requirements. GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) INDEPENDENT AUDITORS REPORT TO THE MANAGEMENT BOARD OF GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED For the year ended 31 August 2023 Matters on which we ar8 required to report by exception In the light of the knr)wledge and understanding of the ch8ri1able ¢ompany and its environment obtained in the o)urse of the audit, we have not identified material misstatements in the Direct015 Report in¢luded in the Trustees, Report. We have nothing lo report in respect of the following matters in relation lo which Ihe Companies Act 2(L16 requires us to report to you if, in our opinion.. 8dequale accounting records have nol been kept or relums adequate for our audit have not been receNed from branches not visited by us., the financial stalements a￿ not in agreement with the accounting records 8nd retums., certain disclosures oltrustees, remuneralion specified by law are not made; or we have not received all the inlormabon and explanations necessary lor the purposes of ouraudit. Responsibilities of Trustees The Trustees are responsible forlhe olh8rinformation. As explained MOreful￿ in the Management Board's Responsibilities statement set out on page 8 Ihe Trustees {who are also the Directors of the company for the purposes of company law} are responsible for the preparation of the f(nancial statements and for being satisfied that they give a true and fair view, and for such internal control a5 the Trustees determine is ne￿SSary to enable the preparation of finan￿8[ statements th81 are free from material misstat6menl, whethèr due to fraud orerior. In preparing the financial statements, the Trustees are responsible for assessing the Charitable Company's abillly lo 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 intetKI to liquidate Ihe company or to ¢e8se operations. or have no realistic altemative but to do so. Auditor's responsibilities for the audlt of the financial ststements Our objectives are to obtain reasonable assurance aboutwhelher the financial st81ements as awhole 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 wilh ISAS IUKI will always detect a material misstatement when rt exists. Misststements can 8ri5e from fraud or error and are consideied rnalerial if, individually or in the aggregate, they could reasonably be expected to influence the econornic decisions of users taken on the basis of these financial statements. Exltrnt to which thè èudil was Gapable of d8leGtffng 1￿￿9U}è￿t1é$. Including frnud Irregulaiities, including fraud. are instances of non-compliance with laws and regulations. We destgn procedures in lThie with our responsibilities, outlined above. to delect material misstslements in respect of irregularities, including fraud. The extent to which tsur procedures are capable of detecting irtegularities. including fraud is detailed below- We considered the nature of thè charitablè company's industry and ils control environment and reviewed the charitable company's documentation of their policies and prO￿dureS relating to fraud and ¢orrplian¢&wlh laws and regulations. We also enquired of management about Ihelr own Identification and assessment of the llsks of irregularitl8S. We obtained an understanding of the legal and regulatory framework that the company opèrates in and identified the key laws and regulations Ihat had a direct effect on the delerminalion of material amounts and disclosures in the finanaal staternents, including the UK Companies Act, UK Charities Act and Charity SORP and tax legislation, and, those that do not have a direct effect on the finanaal statements bul crynplianr£ with which may be fundamental to the charitable company'5 ability to operate or to avoid a material penalty. We discussed among ItrE audit engagernent team ie9arding the opportunitRs and incentives that may exist within Ihe organi$8titsn for fraud and how and where fraud might occur In the flnancial statements. In common with 8118udils under ISAS IUKI. we are also reqLIl￿d to perform speafic procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we lesled the appropriateness of journal entries and other adjustments.. assessed whether Ihejudgments rnade in 8ccounting estirnales are Indicative of a potential blas.. and gvaluated the business rationa￿ of any significznt tran58clions that are unLLsual or outside the ntsmal course of business. In addition to the above, our Procedures to respond to the risks identified included the following.. reviewing financial ststement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as havirig a direct effect on the financial statements., perfomiing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud., enquiring of management concerning actual and potentiall￿gat￿0n and daims and instan￿5 of nonrs are amounts due from ajstomers for services performed in the ordlnary Course of business. Trade debtors are recognised initially at the Irans8clion price. They are subsequently measured 8t amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is esiablished when there is objective evidence that the Charitable Cornpany wll not be able to collect all amount5 due according to the original temis of the receIvab￿s. Trade creditors Trade c￿dItorS are obligations to pay for goods or seNices that have been acquired in the ordinary coursg of bu$in8s5 fr(xn suppliers. Accounts payable are classified as current liabilities ifihe charity does not have an un¢onditional right. at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting dale. If thtrre is an unconditional right to defer settlement for at least twehe rnonths after the reporting dale. they are presented as non-currént Trade Crèditors are recognised initially at the transadion price and 8ubsequently measured al amortised cost using the effective interest method. Borrowings Interest-bearir4J borrowings are initially recorded at fair value. net of transaction costs. Inleresl-bèaring borrtswings are Subsèquently carried at amorbsed cost, with the difference between the proTreds. net of transaction wsts, and the amount due on redemption being recognised as a charge to the S181emenl of Finandal Activity over the pedod of the relevant borrowing. Interest expense is reo)gnised on the basis of the effective interest method and is included wthin Othar Costs. Borrowings are dassified as current liabilib'es unless the Charitable Company has an unconditi(Inal right to defer settlement of the liability for al least ￿e1ve months after reporting date. Operating Leases The cost of oper8fy.ng leases has been charged to the statement of financial activities on a straight-line basis over the term of the lerm. Hire Purchasè Assets acquired undor hire pur(J)aso have been recorded in the balance sheet as tsngible fixed assets at their equivalent Capital value. The corresponding liabilily has been included undercredilors due within or after one year. The interest element s Charged lo the statement of finanual activities and represents a constant proporbon of Ihe balar￿e of capital repayments outstanding. Resourcès Expended All expenditure is accounted lor under the accruals concept. The Charitable Company has only one main activity.. the provision of training setw1￿$. All costs, other than professional fees are allocated to the main charitable activity. Within the main charitable activity, costs are allocated across Practical, Academi¢ and Assessment costs. These 8llornlions are based on dlrect apportionment except for premises costs, which are alloc81ed on approximate floor space and usage. Professional fees are allocated to govemance costs. Fund structure Unrestiicted income funds are general funds that are available for use at the Trustees discretion in furtherance of the objectNes ol the charity. Pensions Contributions payable on behalf of employee5 to the defined ¢ontribution pension scheme are charged to the statement of financial actwities as they become payable in accordanTr with the njles ofthe scheme. Financial Instruments The Charitable Company only has fsnancial assets and financial lia￿lItieS of a kind that qualfy as basic finanaal instrum¢nl$. Basic financial inslrurnents are inilsally recognised attransaction value and sub5equenUy measured at theIrSett￿mentValUe. 17 GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 INCOME Skill$ & Development Advi¥ors 2023 Practical Delivery Academlc Total Government fundad app￿ntitsshipS 1,041,002 740.559 680,939 2.462,500 Commercial courses 74.075 372,114 64.024 510,213 Other income 243 332 177 752 1.115.320 1.113.005 745,140 2,973,465 Skills & Development Advisors 2022 Praetieal Dèlivèry Academlc Total Government lunded apprentI￿ShIpS 923,982 683,761 646,270 2,254.013 CommercAal courses 59,867 428.962 6,700 495.529 other income 312 426 227 984,161 1,113.149 653,197 2.750,507 All income relates to services provided. During the year yovemment funding income totalling £1,960,095 {2022- £2,096,851) was Teceived from the Education and Skill Furvjing Agency under the agreed training framework. 18 GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 EXPENDITURE ON CHARITABLE ACTIVITIES Practical Delivery Academic Skllls & Dévalopment Advisors 2023 Total 2022 Total Staff costs Building costs Motor and travel Depreciation Business support costs Governance costs Equipment costs Other costs 569.993 140,9Q4 1.288 25.300 404,293 15,544 32,775 9.208 601,405 99.794 27 12,068 328,447 12,630 3.315 4.101 404.079 13,477 3.215 1.575.477 254.175 4.530 37.368 934,861 35,948 36,349 15,540 1,337,873 229,086 1,851 48,096 804,595 58.369 24.530 14.643 202.121 7,772 259 2.231 2023 1.199,305 1.(E1.787 633.154 2,894.246 2022 838,763 1.114.562 565,718 2.519,043 ANALYSIS OF GOVERNANCE AND SUPPORT COSTS The Charitable Company identifies the support and governance functions and the costs whi¢h relate lo them. These wsts are then allocated between the practical delivery. academic and skills & development advisors departments by the number of employees in the department. Business Support Governance 2023 Total 2022 Total Staff cost5 Building cos1$ Non reclaimabl8 input VAT Motor and travel Advertislng Depreciation Disposal of fixed assets Equipment costs Other costs 522.521 37.353 98.657 3,277 522.521 37,353 98,657 3,277 454.550 38,523 83,194 2,706 12.150 73,437 1,756 8,589 188.059 36,398 1931 10.063 226,687 36,3 1931 10,OS3 262,633 35,946 2023 934,861 35.946 970.807 2022 804,595 58,369 862,984 19- GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 AUDITORS. REMUNERATION 2023 2022 Auditors, remunaialion Inel of VAT) Costs of exlemal scrutiny Other finantyal serwces 11,000 2.455 7,183 1,972 13,455 9,155 STAFF COSTS 2023 2022 Wages and Salaries Social security costs Pènsion costs 1,766.898 181.292 68,492 81,316 1,496,120 157,671 57,251 81,380 Other stsff Costs 2.097,998 1,792,422 The Charitable Company operates 8 defined contribution pension scheme. Contributions are charged lo the statement of financAal activities as they become payable in accordance with the rules of the scheme. No contributions were outstanding at the end of the current or prioi year. Included within the wages and salaries are ex gratia payments totalling £nil12022- £nill. The key management personnel of the Charitable Company comprise the Management Board and Senior Managernent Team as listed on page 1. The Management Board, being the Iruslees, received no remuneration or reimbursement of expenditure. The lolal amount of employee benefits (including employer pension ¢ontribulions} recelved by the Senior Managetnent Tearn forlheir Ser¥￿e$ to ￿e Company was £529,489 {2022- £376,645). Key management personnel 2023 2022 The number of key management personnel 10 The numter of key management personnel and other staff who re￿iVed annual emolumenls, excluding pension contributions and Employerfs national insurance, but including benefits in kind. in the followng ranges was= 2023 2022 £90,001 to £100,000 p.a £100,001 tr) £110.000 p.a. -20- GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 STAFF COSTS {continuedl The average number of employees was.. 2023 2022 Senior Management Board {And CEO HR and Finance) Business Support Workshop {Practical delivery) VRQ IAcademic team> Review Officers 14 16 10 14 44 TAXATION As a registered charily the Charitable Company has no liability in respect of taxation. io INTANGIBLE FIXED ASSETS Softwa development eosts Cost At 1 September 2022 Additions At 31 August 2023 8,000 Depreciation At 1 September 2022 Charge for year At 31 August2Q3 933 Net book value Al 31 August 2023 7,067 Al 31 August 2022 21 GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantee) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 11 TANGIBLE FIXEDASSETS Lea¥ehold Plant and improvements rnaehlnery Total Cost At 1 September 2022 Additions 638,363 707,122 1,345,485 25.300 116,026 141,328 Disposals Al 31 August 2023 663.663 785,293 1.448,958 Depreclatlon At 1 September 2022 Charge for year Disposals 577,941 550,967 46,721 1,128.908 72,831 26,110 At 31 August 2023 604,051 560,149 1,164,200 Net book value At 31 August 2023 59.612 225.144 284,756 At 31 August 2022 60,422 156,155 216.577 Included within plant and rnachinery are assets held under hire purchase leases with a net book value of £48,895 {2022- £57.2771. The depreciation charged on these assets in the year was £8.38212022- £8,382). 12 DEBTORS 2023 2022 Trade debtors 149,261 2,046,667 842 5,778 2.025,795 859 Prepayments and a(£rued income Other debtors 2,196.770 2,032.432 Included with accrued income is £791,87012022- £719.3221 due in more than one year. -22- GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarantse) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 13 CREDITORS Note 2023 2022 Duè withln one year Loans and borrowings Nèt obligab.ons under finance lease and hire purchase contracts Trade creditors Tax81ion and security Accrualg Other ueditors (Shortfall Deposits for 17118 & 1W19 starters) 14 25.000 9,867 58,731 45,461 159.555 442,152 25.000 10.388 $4,584 39,4C6 16,938 912,981 14 740.766 1,059.295 Due after one year Loans atyj borrowings Dilapidations provision Other creditors (Shortfall Deposits 19120 to 22123 starters) HP Li8bllity 14 47,917 175,000 717,026 72,917 175,000 469,116 10,245 14 939.943 727,278 14 LOANS ANO BORROWINGS 2023 2022 Due within one year Bank loans Nel obligations under ffinance lease and hire purchase contracts 25.000 9,867 25,000 10,386 34.867 35,386 Due after ong year Bank loans 47,917 72,917 10,245 Nel obligations under ffinance lease and hire purchase contracts 47,917 83,162 Hire purchase liabilities are securèd over the assets lo whith they relate. During 2021 the Charitable Company drewdown a loan underthe Coronavirus Busines5 Interruption Loan Sctheme. The loan is repayable by instalments over six years, with £nil12022- £nil) repayable by instslments after more than five years. The loan incurs Interest after 12 months at2.75% and is secU￿d overthe assets of the Charitable Company. Bank loans are secured by an unlimited debenture incorporating a fjxed and floatitvJ charge. -23- GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED {By Guarantee) STATEMENT OF CASH FLOWS For the year ended 31 August 2023 15 SHARE CAPITAL The Charitable Company does not have any share capital 88 it is lirniled by guarantee Each of the tmstees is a guaranloT to the extent of £20 in the event of the Gharitable Company being wound up whilst they are Iru51ee5. or within one year of them ceasing to be trustees in respect of debts and liabilities contracted before they ceased lo be amember. 16 FUNDS At1 September 2022 Income Expenditure Transfers between funds At31 August 2023 Unrestrlcted funds Retained surplus Designated funds 601,142 703,861 2.981.844 25,921 (2,894,246) 688,740 729,782 1,305,003 3.CK)7,765 {2,894,2461 1,418,522 Retained surplus relates lo nel Surpluses accumulated by the charitab￿ Company and 8re retsined lo provide w(vking capital. Deslgnated funds consist of training supp)rt funds which previously listed under the other creditors which. after a change in the training SUPFK)rt funds process, have now been ringfen￿$ by GET lo support the year 1 8pprenliceship cost versus the funding from the apprenli¢e5hip levy lo support the future stability and growth of the charitsble company. Over the proceeding years this valv8 will increase lo £1.2tn lo cover the additional costs of training. 17 OTHER FINANCIAL COMMITMENTS As at 31 August 2023 the following 8nnuaf Ctsmmilments were held under non-eAn￿￿ab1e a9reements.' 2023 Land and bulldlngs Other Total Expiry dale.. Within one year Be￿en kn and five years Over 5 years 214.198 711,957 150,000 9.435 7.285 223,633 719.242 150.000 1,076.155 16,720 1,092.875 2022 Land and buildings other Total Expiry date". thin one year Be￿een and five years Over 5 years 174.446 657.845 14,185 10.836 18,597 185,282 676,442 14.185 846,476 29,433 87S.909 -24- GLOUCESTERSHIRE ENGINEERING TRAINING LIMITED (By Guarante¢l STATEME￿ OF CASH FLOWS For the year ended 31 August 2023 17 OTHER FINANCIAL COMMITMENTS Icontinuedl The amount of non-cancellable land and buildings operating lease payments arbd other lease payments recognised as an expense durfng the year was £18d.19812022- £174,448) and £10,568 P022- £11.1fj41 respectively. 18 DEFINED PENSION CONTRIBUTION SCHEME The Charitable Cornpany operates a defined contiibulion ￿nSIOn scheme. The pension c051 charge for the year represents coniributions payable by the Charitable Company lo Ihe scheme and amounted lo £68,49212022- £57,251}. 19 RELATED PARTIES Several members of the Management Board are employed by companies that use GET fortheir apprenticeship, higherlfurther education and skills training. All transactions involving thÈse companies are conducted in accordanTr with the charity's financial Tegulations and prO￿dureS which 5UPPOrts the distance required to avoid any conflicts of interest. No related party transactions look place in the period of accounts. -25-