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2021-08-31-accounts

AMENDED

THE ENGINEERING TRUST

CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

INDEX

Company Registration Number 01706333

Charity Registration Number 287075

1

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

The directors present their report together with the consolidated audited accounts for the year ended 31 August 2021.

Reference and Administrative Details of the Charity, its Trustees and Advisers

The Engineering Trust is registered as follows:

Charity Registration Number: 287075 Company Registration Number: 01706333

The directors set out below held office during the year. The directors are all trustees of the charity.

T J Green (Chair) (resigned 13[th] April 2021) R J Green (Secretary) W J Stewart-Lee (resigned 14[th] September 2021) R J Morris S D Jaycock (appointed 13[th] July 2021)

The Chief Executive of the Charity is Mark Vingoe based at the Registered Office.

Bankers Auditors National Westminster Bank Plc Shaw Gibbs (Audit) Limited 43 Cornmarket Street 264 Banbury Road Oxford OX1 3HA OX2 7DY

Registered Office and Principal Office

2, The Courtyard Home Farm Caversfield Bicester OX27 8TG

Public Benefit

The trustees have taken into account the Charity Commission guidance on public benefit and believe that the activities of the Trust are in line with that guidance.

Structure Governance and Management

The Engineering Trust is registered with the Charity Commission in England and Wales and is a company limited by guarantee registered at Companies House.

The governing instrument of the company is the Memorandum and Articles of Association incorporated 14 March 1983 as amended 4 May 1983, 25 May 2006 and 2[nd] June 2009.

Trustees are drawn from the member companies, which comprise businesses in the local area involved in engineering related activities.

During the year, the Directors have reviewed the major risks, which may affect the charity, and have amended their risk assessments where necessary.

Objectives and Activities

To promote training of persons employed, or intending to be employed in industry and commerce. To extend such provision or assistance to the training or education of members of the public generally.

The main business of the company continues to be operated through its wholly owned subsidiary, Engineering Trust Training Limited.

2

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and Performance

The Group continues to successfully place future engineers into good quality apprenticeships. Many of the apprentices go on to Foundation degree level or further training and obtain senior or management positions because of their apprenticeship.

The group plans to offer the following apprenticeship standards during 2021/22

The Group currently supports in excess of 150 apprentices together with our subcontractor; Group Training and Development Ltd who operate in Devon.

We currently hold a Grade 2 OFSTED across all four areas:

Effectiveness of Leadership & Management Quality of Teaching, Learning & Assessment Personal Development, Behaviour & Welfare Outcome for Learner

The Covid-19 global pandemic continued to affect us during the first 6 months of 2020/21 financial year. The final four months of the 2020/21 financial year were positive as restrictions eased and productivity within the engineering sector grew along with employer confidence to take on new staff and apprentices.

The pandemic, and other economic factors, continue to affect us in terms of delivery and new start apprenticeships. In the first months of the 2021/22 financial year, the tightening of the labour market has limited our ability to meet the demand from employers looking to take on apprentices. This demand from employers however remains strong, and our pipeline of new apprenticeship opportunities continues to grow. These give us a good portfolio of opportunities for new starts for the remaining part of the current financial year which will be filled when our talent pool increases with school and college leavers looking to be placed within apprenticeship roles.

The Trust continued its work with school and college career events with many in 2020/21 being

online. Many now are back to face-to-face events and we continue to support them with our attendance. The Trust has several key projects designed to increase its work and further meet its charitable aims. The Trust has taken on a deeper role in the governance of ETT apprenticeship delivery by completing regular satisfaction and wellbeing surveys of apprentices. They will also survey employers to better understand their experience of ETT delivery and gain improved oversight.

Plans for Future Periods

The goals and objectives of the group is to grow, both in terms of the number of apprentices that are trained but also the volume of work the Trust is involved in.

The Group is moving forward with the development of its own Training Venue. This will have its first intake of apprentices in September 2022 and will take in-house some of the delivery currently carried out by college partners. It will also allow the Trust to further develop projects that meets its charitable aim and mission. The Training Venue will require internal investment as well as seeking grants and donations from our industry and relevant philanthropic organisations.

THE ENGINEERING TRUST 3 FOR THE YEAR ENDED 31 AUGUST 2021

Financial Review

The deficit is, in part, is due to the ongoing charitable expenditure which is covered by reserves accumulated in prior years. The deficit is an issue that continues to be addressed to ensure a sustainable future for the Group. A key element to combat the deficit is the growth in the number of apprenticeships that are delivered by ETT and the development of the Training Venue. In-house delivery of the elements that ETT usually pay colleges for will ensure the funding stays within the Group and the margin, usually made by are partner organisations, retained and added to our bottom line. It is likely that the group will again record a deficit in 2021/22 due to the tight labour market in the first part of the financial year and the costs associated with our growth and the development of the Training Venue. The benefit of our growth and opening of the Training Venue will be felt in the 2022/23 financial year.

The trustees (who are also directors of The Engineering Trust for the purposes of company law) applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

is unaware and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Auditor

A resolution to reappoint Shaw Gibbs (Audit) Limited as auditors for the ensuing year will be proposed at the annual general meeting.

ON BEHALF OF THE BOARD

R J Green (Chair)

Date

4

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

Opinion

balance sheet, the charity balance sheet, the group statement of cash flows and the 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 group and parent charitable company in accordance with the Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on matters prescribed by the Companies Act 2006

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

financial statements are prepared is consistent with the financial statements, and

THE ENGINEERING TRUST 5 FOR THE YEAR ENDED 31 AUGUST 2021

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

charitable company for the purpose 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.

going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Use of our report

those matters we are required to state to them in an auditors' 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

Samantha Daniels (Senior Statutory Auditor)

for and on behalf of Shaw Gibbs (Audit) Limited

......................... Chartered Certified Accountants Statutory Auditor 264 Banbury Road Oxford OX2 7DY

Shaw Gibbs (Audit) Limited is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006

6

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

2021 2020
Unrestricted Unrestricted
Notes funds funds
Income from:
Investments 51 598
Other trading activities 594,639
614,938
Total income 2 594,690 615,536
Expenditure on:
Raising Funds 5 585,000 599,231
Charitable activities 5 70,631 106,563
Total Expenditure 655,631 705,794
Net expenditure (60,941) (90,258)
Balances brought forward at 1 September 2020 420,239 510,497
Balances carried forward at 31 August 2021 359,298 420,239

All funds are unrestricted.

All income and expenditure derives from continuing activities.

The Consolidated statement of financial activities includes all gains and losses other than those recognised during the year.

The notes on pages 10 to 17 form part of these accounts.

7

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

CONSOLIDATED BALANCE SHEET

Notes
FIXED ASSETS
Tangible assets
9
CURRENT ASSETS
Debtors
12
Cash at bank and in hand

CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
13
NET CURRENT ASSETS
NET ASSETS
FUNDS - Unrestricted
Capital reserve
14
Accumulated surplus
14
2021
8,621
108,861
335,041
443,902
(93,225)

350,677
359,298
12,614
346,684
359,298
2020
9,122
80,623
394,168
474,791
(63,674)
411,117
420,239
12,614
407,625
420,239

These accounts were approved and authorised for issue on by the Board.

....................................................... ....................................................... R J Green Date Chair

Company number: 01706333 (England and Wales)

The notes on pages 10 to 17 form part of these accounts.

8

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

Notes
FIXED ASSETS
Tangible assets
10
Investments
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
13
NET CURRENT ASSETS
NET ASSETS
FUNDS - UNRESTRICTED
Capital reserve
14
Accumulated surplus
14
2021
1520
160,000

161,520
4,163
94,976
99,139
(2,900)
96,239
257,759
12,614
245,145
257,759
2020
2,025
160,000
162,025
5,701
143,418
149,119
(2,900)
146,219
308,244
12,614
295,630
308,244

These accounts were approved and authorised for issue on by the Board.

....................................................... ....................................................... R J Green Date Chair

Company number: 01706333 (England and Wales)

The notes on pages 10 to 17 form part of these accounts.

9

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

CONSOLIDATED CASH FLOW STATEMENT

Cash Used in Operating Activities
Cash flows from investing activities
Interest income
Purchase of tangible fixed assets
Cash provided by (used in) investing activities
Increase/(decrease) in cash and cash equivalents
in the year
Cash and cash equivalents at the beginning of the year
Total Cash and cash equivalents at the end of the year
Group
2021
(57,508)
51
(1,670)
(1,619)
(59,127)
394,168
335,041
Group
2020
(54,474)
598
(877)
(279)
(54,753)
448,921
394,168
Charity
2021
(48,445)
3
0
3
(48,442)
143,418
94,976
Charity
2020
(99,147)
33
0
33
(99,114)
242,532
143,418

The notes on pages 10 to 17 form part of these accounts.

10

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS

1 Summary of significant accounting policies

General Information and basis of preparation : The Engineering Trust is a charitable company limited by guarantee registered in the UK. In the event of the charity being wound up, the liability The address of the registered office is given in the charity information on page 1. The nature of the intending to be employed, in industry and commerce. To extend such provision or assistance to the training or education of members of the public generally.

The charity constitutes a public benefit entity as defined by FRS102. The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting the Financial Reporting Standard applicable in the UK & the Republic of Ireland (FRS 102) and the Companies Act.

The financial statements are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity.

The accounts consolidate The Engineering Trust and its subsidiary Engineering Trust Training Limited. The trading results of the subsidiary are shown in note 4. Transactions and balances between the subsidiary have been eliminated from the consolidated financial statements.

The significant accounting policies applied in the preparation of these financial statements are Set out below. These policies have been consistently applied to all years presented unless Otherwise stated.

Unrestricted funds are income generated for the objects of the charity without further restriction and are available as general funds.

Income recognition:

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income, after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Expenditure recognition:

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties and the amount of the obligation can be measured reliably. It is categorised under the headings of cost of raising funds and expenditure on charitable activities including direct and support costs.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose

Tangible fixed assets and depreciation

Tangible fixed assets are stated at historical cost less accumulated depreciation. Depreciation is Provided using bases and rates which reflect the anticipated useful lives of the assets and their estimated residual values.

Office equipment

15%-33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the Sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

11

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pensions - Defined contribution scheme

Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include management and governance costs.

Going concern basis

continue as a going concern. They have reviewed the financial position in conjunction with reserve levels and consider them adequate to meet future operational commitments. The future financial impact of Covid-19 has been considered as part of the review and they conclude that the going concern basis of Accounting remains appropriate for the preparation of the financial statements.

Investment in subsidiaries

The investment in subsidiaries is at cost.

Taxation

No corporation tax is payable due to the charitable status of the parent company. Taxable profits are generated by the trading subsidiary are transferred as a gift to the parent company.

Amendments to the financial statements

These revised financial statements replace the original financial statements. The accounts have been amended to

2. INCOMING RESOURCES

A significant proportion of this related to contracts with the Education and Skills Funding Agency for monitoring and assessment of apprenticeships in engineering.

3. SUMMARY PERFORMANCE OF THE CHARITY ALONE:

2021

Income
36,461
Expenditure on raising funds
16,327
Expenditure on charitable activities
70,619

Net expenditure
(50,485)
(
Total funds brought forward
308,244
2020
33,382
26,360
106,563
99,540)
407,784

Total fllnds tarried forn'ard 257 759

12

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

4 INCOME EARNED FROM TRADING ACTIVITIES

The wholly owned trading subsidiary, Engineering Trust Training Limited (ETT), is incorporated the United Kingdom (company number 02423523) and pays profits to the charity under the gift aid scheme. ETT is a registered training provider specialising in engineering apprenticeships and other work-based learning. A summary of the trading results is shown below.

The summary financial performance of the subsidiary alone is:

Turnover and other operating income
Cost of sales and administration costs
Interest receivable
Profit before tax
Corporation Tax
Profit after tax
The assets and liabilties of the subsidiary were:
Fixed assets
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves
5. RESOURCES EXPENDED
Cost of raising funds
16,327
Raising funds trading activities
568,673
Total cost of raising funds
Charitable activities
Direct costs
55,715
Support costs
14,916
Total charitable activities
2021
2020
656,839
698,939
(643,623)
(677,872)
51
565
13,267
21,632
-
-
13,267
9,283
7,101
7,097
344,765
325,674
(90,312)
(60,775)
261,554
271,996
261,554
271,996
TOTAL
TOTAL
2021
2020
26,360
572,871
585,000
599,231
90,814
15,749
70,631
106,563
655,631
705,794

13

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2020

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

6
DIRECTORS AND EMPLOYEES
Wages and salaries
Social security costs
Pension costs

Average monthly number employed including executive directors
Office and management
2021
266,881
27,653
29,746
324,280
No.
8
2020
296,281
31,899
34,942
363,122
No.
9

No trustees received any remuneration in the year (2020: none).

Pension costs:

The group operates an auto-enrolled staff pension scheme. The pension cost charge represents contributions

7 TAXATION

The company is a registered charity and is exempt from corporation tax for its charitable activities. Corporation

14

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

8 OPERATING LEASE RENTALS

At the reporting end date, the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases as follows:

2021 2020
Total future non-cancellable operating
lease payments 45,590 54,234

9 TANGIBLE FIXED ASSETS - GROUP

Office equipment
and other
Cost or valuation
1st September 2020 26,088
Additions 1,670
31st August 2021 27,758
Depreciation
1st September 2020 16,966
Charge for the
year 2,171
31st August 2021 19,137
Net book amount
31st August 2021 8,621
31st August 2020 9,122

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

----- Start of picture text -----
10
Office
Equipment
Cost or valuation
1st September 2020 7,250
Additions -
31st August 2021 7,250
Depreciation
1st September 2020 5,225
Charge for the
year 505
31st August 2021 5,730
Net book amount
31st August 2021 1,520
31st August 2020
2,700
11 FIXED ASSET INVESTMENTS Group Charity
- GROUP AND CHARITY 2021 2020 2021 2020
Shares in group undertaking - - 160,000 160,000
12 DEBTORS Group Charity
- GROUP AND CHARITY 2021 2020 2021 2020
Trade debtors 81,753 44,325 - -
Other tax recoverable 2,163 3,701 2,163 3,701
Prepayments and accrued income 24,945 32,597 2,000 2,000
108,861 80,623 4,163 5,701
----- End of picture text -----

16

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

13
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR - GROUP AND
CHARITY
Trade creditors
Other creditors
Accruals and deferred income
Tax and social security
Group
2021
2020
35,082
15,792
14,782
12,338
29,680
20,220
13,681
15,324
93,225
63,674
Charity
2021
2020
-
-
-
-
2,900
2,900
-
-
2,900
2,900
Charity
2021
2020
-
-
-
-
2,900
2,900
-
-
2,900
2,900
2,900

14 UNRESTRICTED FUNDS - GROUP AND COMPANY

Group Charity Charity
Accumulated Capital Accumulated
Surplus Reserve Surplus
At 1 September 2020 407,625 12,614 295,630
Net resources and (60,941) - (50,485)
Movement in funds
At 31 August 2021 346,684 12,614 245,145

The capital reserve is the excess of assets over liabilities taken over from the Oxford and District Training Group.

15 CONSTITUTION

The Engineering Trust is a company limited by guarantee and not having a share capital. In the event of

16 RELATED PARTIES

Transactions with Engineering Trust Training Limited, a subsidiary company of The Engineering Trust, are not disclosed. The company has taken advantage of the exemptions provided by SORP FRS 102 - Related party disclosures not to disclose transactions with the related undertakings of The Engineering Trust Training Limited.

17

THE ENGINEERING TRUST FOR THE YEAR ENDED 31 AUGUST 2021

NOTES TO THE CONSOLIDATED ACCOUNTS (CONTINUED)

17 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net movement in funds
Add back depreciation
charge
Deduct interest income
shown in investing
activities
Decrease/(Increase) in
Debtors
Increase/(Decrease) in
Creditors
Net cash used in operating
activities
Group
2021
(60,941)
2,171
(51)
(28,238)
29,551
(57,508)
Group
2020
(90,258)
2,714
(598)
63,957
(30,289)
(54,474)
Charity
2021
(50,485)
505
(3)
1,538
-
(48,445)
Charity
2020
(99,540)
675
(33)
(249)
-
(99,147)