## **Company Registration Number 01273462 Charity Number 294222** 

**NETA Training Trust Company Limited by Guarantee Financial Statements 31[st] July 2021** 



NETA Training Trust Company Limited by Guarantee **Financial Statements Year Ended 31[st] July 2021** 

|**Contents**|**Pages**|
|---|---|
|Report of the trustees|3 – 12|
|Independent auditor’s report to the Members and Trustees of NETA Training|13 – 18|
|Trust||
|Consolidated Statement of Financial Activities (including the consolidated||
|income and expenditure account)|19|
|Consolidated balance sheet|20|
|Charity balance sheet|21|
|Consolidated statement of cash flows|22|
|Notes to the financial statements|23 – 37|



2 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

The trustees are pleased to present their annual trustees’ report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 July 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. 

The charity is a company limited by guarantee (incorporated 17 August 1976) and as such is governed by its memorandum and articles of association, last revised December 2020. It is registered as a charity with the Charity Commission in England, number 294222. 

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). 

## **Chair’s report** 

## **Charitable Objectives and Purpose** 

Our main activities, and who we try to help, are described below.  All our charitable activities focus on the provision of training courses and are undertaken to further our charitable purposes for the public benefit. 

The objectives of the charity are to promote and advance adequate training of persons employed or intending to be employed in industry and commerce and to extend such training to members of the public. 

Our purpose is to deliver great learning opportunities, inspirational educational experiences and real practical skills training for the young people, adults, businesses and the diverse communities that we serve. 

During the year NETA Training Trust continued to provide training programmes in the following areas: 

- Engineering Apprenticeships 

- Engineering Scholarships 

- Post 16 Engineering Study Programmes 

- 14-16 Schools’ Provision 

- Adult Education Programmes 

- Technical Engineering Disciplines included but not limited to: 

   - Electrical, Mechanical, Instrumentation & Control, Pipefitting, Fabrication, Welding, Steel Erecting, Rigging and Lifting, Scaffolding, Commercial & Domestic Gas, Health, Safety & Environment 

3 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## **Overview** 

NETA Training has delivered a good financial performance in 2020-21 underpinned by continued investment in our facilities, our people, our brand and a strong focus on quality improvement. This is in spite of the ongoing effects of Covid-19 global pandemic which impacted full costs adult training during the year with further periods of national lockdown in November 2020 and January 2021. 

The key highlights for the year include: 

- HSE performance remained strong in line with our strategic objectives and COVID Safe operations. 

- Successful reaccreditation to the OSHAS 18001 to the ISO 45001 standard and a focus on better health at work and mental health at work for all staff and learners. 

- Winners of two national contracts with the ECITB for the delivery of Scholarship programmes. 

- Record levels of full time study programme and apprenticeship recruitment over the year have yielded above target results against our business plan. 

## **Specifically relating to Covid-19** 

In response to the pandemic, NETA: 

- Maintained full alignment with the Government’s guidelines on Covid-19 safety measures for all staff, learners and visitors to our centres 

- Re-established Commercial face-to-face learning following periods of lockdown. 

## **Operations** 

Study programme learners’ intake (16-18) grew by 32.5% in 2020-21, demonstrating another significant increase in performance. Overall achievement rates were positive at 89.6% and positive destinations for learners at 97.7%. 

The apprentice intake in 2020-21 saw an 8.9% increase in engineering learners on the previous year, this level of growth is forecast to continue during 2021-22 as local and national companies recover from economic impact of the pandemic and local projects begin early stages of construction-based activities. 

NETA engaged with c. 1000 commercial organisations and clients (B2B & B2C), with over 4,660 commercial delegates trained during 2020-21 (impacted by Covid-19 closure). NETA continued to work with the Department for Work and Pensions (DWP), Tees Valley Combined Authority and local employers to provide technical skill specific training which resulted in positive employment opportunities for unemployed people. These courses included the development of new innovative programmes in Scaffolding and Welding resulting in positive destinations for delegates. 

4 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

Following Government announcements and guidelines, NETA ceased face-to-face learning for all of its training activities during January 2021 due to national lockdown. Commercial programmes for adult learners were suspended and our study programme and apprentice students transferred to on-line remote learning in order to continue their studies. Face-toface learning successfully and safely resumed in March 2021. 

Given the unknown economic effects of the Covid-19 pandemic on local and national companies, full cost income is currently sporadic and extremely difficult to forecast. However, NETA’s full cost commercial sales income has made a positive recovery since its return to learning in March 2021.  New national contracts with emerging sectors have been secured to deliver skills training and assessment during the year, these contracts have the potential to grow over the medium to long term. 

Capital investment continued in NETA’s training facilities during the year to further support the successful development of the business. This investment is aligned to the business’s strategic growth plans and to our mission of building real skills for real jobs.  Capital grant funding received by the sole member, Education Training Collective, from the Education and Skills Funding Agency as Further Education Conditions Allocation for the benefit of the Group to improve the condition of its estate was utilised by the charity to replace the roof at the premises on Pennine Avenue. 

## **Core Market Growth** 

NETA works closely with its parent, the Education Training Collective, and in conjunction with key stakeholders has developed a strategy for growth in response to the devolution agenda, challenges with engineering apprenticeship sponsorship and to challenges associated with the future implementation of T Levels. 

The regional training landscape continues to remain competitive with a number of similar training providers and colleges offering engineering-based courses to local businesses and young people. Projected local inward investment and the development of new emerging industrial sectors will see an upturn in the requirement for highly skilled workers and we believe that NETA is strongly placed to support and service this demand. During 2020-21 local engineering construction project activity has remained relatively flat as the sector recovers from the COVID Pandemic. However, the recent activity to redevelop the old SSI Steelworks site (now Teesworks), announcements for major inward investment in renewable energy and carbon capture technology plus the awarding by Government of free port status should see an increase demand for highly skilled people to build, operate and maintain these assets. NETA is therefore well positioned to service this requirement both locally, nationally and internationally. 

5 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## **Outlook** 

As we emerge from the pandemic, we remain confident that the business is well positioned to continue serving local and national clients with high quality education and training programmes and are unchanged in our outlook for some growth in core market segments for 2021 and beyond. To that end, we have also developed an estates investment strategy and bold vision to support our future growth ambitions and to ensure that NETA’s training facilities provide leading edge, sustainable, energy efficient learning and work environments for our staff, students and visitors. 

Our overall performance represents a significant shift over the past four years in NETA’s financial and operational health and will deliver greater confidence in what is already a highly respected and trusted national brand. 

## **Financial Review** 

## _**Reserves Policy**_ 

The nature of the charitable group’s activities are such that a large proportion of the reserves are represented by fixed assets used in the provision of training services. 

The charitable group’s usual policy has been to retain sufficient other reserves in form of working capital to manage its activities.  Due to the cyclical nature of these activities, liquid funds held as part of working capital can vary significantly from one date to another and need to be sufficient to enable the charity to provide training when income may not cover operating costs.  The charitable group’s policy is not to retain reserves beyond the amount necessary to carry out its activities but to retain sufficient reserves equivalent to two months’s expenditure. 

Reserves were £250k at the balance sheet date.  The trustees are satisfied that this is appropriate against the target of £266k which is set on the basis of two months’ from an annual expenditure in the region of c. £1.6m. 

6 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## _**Principal funding sources**_ 

The principal funding sources available to the charitable group are government funding contracts, contract delivery to schools and colleges, and full cost delivery to employers. 

## _**Incoming resources policy and objectives**_ 

The trustees are satisfied with the range of income streams and that the charitable group is not reliant on a single source of income. 

## **Reference and Administrative Details** 

Company Registration Number: 01273462 Charity Number: 294222 Registered office: Pennine Ave North Tees Ind Est., Portrack Lane, Stockton on Tees, Cleveland, TS18 2RJ **Our advisers Auditor** RSM UK Audit LLP 1 St James’ Gate Newcastle Upon Tyne NE1 4AD **Bankers** Barclays Bank 49 High Street Stockton-on-Tees TS18 1AH **Solicitors** Endeavour Partnership Westminster St Marks Court Teesdale Business Park Stockton on Tees TS17 6QP 

7 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## **Directors and trustees** 

The directors of the charitable company (the charity) are its trustees for the purpose of charity law.  The trustees and officers serving during the year and since the year-end were as follows: 

## _**Key management personnel NETA Training Trust: Trustees’ and Directors:**_ 

J C Hornby 

R W McCallion (to 9 March 2021) S Cossins P M Cook J P Heathcock M Wilson 

Secretary: F Sharp 

## **Structure, Governance and Management** 

## **Governing Document** 

The charity is controlled by its governing document, the memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.  A revised set of Articles of Association was adopted by special resolution by the Board on 10 December 2020. 

## **Recruitment and appointment of new trustees** 

Trustees are appointed in accordance with procedures set out in the Articles of Association. 

## **Induction and training of new trustees** 

Trustees are encouraged to attend appropriate external training courses.  New trustees are invited to meet the NETA Managing Director and relevant managers to understand the operations of the business. Members are also issued with a trustee pack including appropriate governance information, as well as relevant information related to the charity. This includes the staffing structure, Articles of Association, Governance Code, Standing Orders, most recent Financial Statements and Self Assessment Reports. Members are asked to undertake Safeguarding, Prevent and Equality and Diversity training on appointment and at regular intervals thereafter. Members also receive periodic training on the role and responsibilities as trustees. 

## **Organisational Structures** 

The Education Training Collective is the sole member of NETA. 

The NETA board of trustees meets termly to administer the charity.  A salaried Managing Director is appointed by the member to manage the day to day operations of the charity.  The salary costs are borne by the sole member.  To facilitate effective operations the Managing Director has delegated authority, within terms of delegation approved by the member, for operational matters including finance, employment and performance related activity. 

8 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## **Related parties** 

The Education Training Collective is the sole member of NETA Training Trust.  The charity’s trustees are drawn from the College and industries active in the North East area. 

## **Risk Management** 

The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to such risks.  The trustees continue to monitor risk closely and the principal risks facing the charity are; 

- Financial sustainability 

- Maintenance of high quality training provision 

- Maintaining full cost commercial sales income 

- Covid-19 and its impact on the business and its people 

The charity has robust governance and has in place strategic planning processes in Business Planning (BP) and Performance Review (PR) systems. The BP/PR system has enabled precise and pre-emptive financial management and quality monitoring to drive the charity forward to achieve its aims. 

The business considers that risk management is an integral part of good business process and, on a regular basis, reviews the industry, operational and financial risks facing the business and considers the adequacy of the controls and mitigations to manage these risks. 

Key risks are mitigated in a number of ways by: 

- Funding is derived through a number of direct and indirect contractual arrangements 

- Building transformational partnerships with local employers 

- Ensuring NETA is rigorous in delivering high quality education and training 

- Via the College Group, considerable focus and investment is placed on maintaining and managing key relationships with the various funding bodies 

- Delivering government funded training provision in partnership with the Group 

- Ensuring NETA is focused on those priority sectors which will continue to benefit from public funding 

9 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## **Public benefit** 

In setting our objectives and planning our activities the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on the advancement of education. 

NETA Training Trust was founded by a group of industrialists in North East England who wished to ensure that their apprentices were given the very best start to their careers by providing them with first rate training.  Since those early days the organisation has grown and developed, but the underlying principle of providing the highest quality training still remains true.  Historically, and continuing to the present day, training courses organised by NETA are available to all members of the community who wish to partake in them. 

## **Volunteers** 

The charity does not benefit from the use of volunteers. 

## **Pay policy for senior staff** 

Guided by the Trustees and the senior management at the College, the Managing Director of NETA and the management team comprise the senior leadership team of the charity in charge of directing and controlling, running and operating the Trust on a day to day basis. All trustees give of their time freely and no trustee received remuneration in the year. Details of trustees’ expenses are disclosed in note 12 to the accounts. 

The pay of the senior leadership team is a fixed salary assessed in accordance with market rates. The pay is reviewed annually and any increase in pay will be in accordance with any percentage increase implemented by its parent, The Education Training Collective. The salary costs of the Managing Director is borne by The Education Training Collective. 

10 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

## **Trustees’ Responsibilities Statement** 

The charity trustees (who are also the directors of NETA Training Trust for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

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

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to 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 the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Statement as to disclosure to our auditors** 

In so far as the trustees are aware at the time of approving our trustees’ annual report: 

- there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and 

- the trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

11 



NETA Training Trust Company Limited by Guarantee **Report of the trustees for the year ending 31 July 2021** 

Signed on behalf of the trustees 


S Cossins **Trustee** 

Date: 12[th] November 2021 

12 



## NETA Training Trust Company Limited by Guarantee **Independent Auditor’s Report to the Members and Trustees of NETA Training Trust Year Ended 31[st] July 2021** 

## **Opinion** 

We have audited the financial statements of NETA Training Trust Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: 

- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 July 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. 

## **Basis for opinion** 

We have been appointed auditors under the Companies Act 2006 and section 152 of the Charities Act 2011 and report in accordance with those Acts. 

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 ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

13 



NETA Training Trust Company Limited by Guarantee **Independent Auditor’s Report to the Members and Trustees of NETA Training Trust Year Ended 31[st] July 2021** 

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The other information comprises the information included in the financial statements other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements. 

14 



NETA Training Trust Company Limited by Guarantee **Independent Auditor’s Report to the Members and Trustees of NETA Training Trust Year Ended 31[st] July 2021** 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- the parent charitable company financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the Trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Trustees’ Report. 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees’ responsibilities set out on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

15 



NETA Training Trust Company Limited by Guarantee **Independent Auditor’s Report to the Members and Trustees of NETA Training Trust Year Ended 31[st] July 2021** 

## **Auditor’s responsibilities for the audit of the financial statements** 

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

## **The extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities are instances of non-compliance with laws and regulations.  The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. 

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team: 

- obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the group and parent charitable company operates in and how the group and parent charitable company are complying with the legal and regulatory frameworks; 

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; 

16 



NETA Training Trust Company Limited by Guarantee **Independent Auditor’s Report to the Members and Trustees of NETA Training Trust Year Ended 31[st] July 2021** 

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud 

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inspecting correspondence with local tax authorities. 

The most significant laws and regulations that have an indirect impact on the financial statements are those which are in relation to the Education Inspection Framework under the Education and Inspections Act 2006, Keeping Children Safe in Education under the Education Act 2002 and the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these law and regulations and inspected correspondence and inspected correspondence with licensing or regulatory authorities. 

The group audit engagement team identified the risk of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud.  Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and include key procedures to address other risks. 

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

17 



NETA Training Trust Company Limited by Guarantee **Independent Auditor’s Report to the Members and Trustees of NETA Training Trust Year Ended 31[st] July 2021** 

## **Use of our report** 

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

CLAIRE LEECE (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP Chartered Accountants 1 St James’ Gate Newcastle upon Tyne NE1 4AD 

Date: 12[th] November 2021 

18 



## NETA Training Trust Company Limited by Guarantee 

## **Consolidated Statement of Financial Activities (including the consolidated income and expenditure account) For the year ending 31[st] July 2021** 

|**Note**<br>**INCOME**<br>_Income from charitable activities:_<br>Operation of training provision<br>**2**<br>Other income<br>**3**<br>**TOTAL INCOME**<br>**EXPENDITURE**<br>_Expenditure on charitable_<br>_activities:_<br>Operation of training provision<br>**4**<br>Other operating expenses<br>**5**<br>**TOTAL EXPENDITURE**<br>**NET INCOME (EXPENDITURE)**<br>**AND NET MOVEMENT  IN FUNDS**<br>**FOR THE YEAR**<br>**RECONCILIATION OF FUNDS**<br>Total funds brought forward<br>**21**<br>**TOTAL FUNDS CARRIED**<br>**FORWARD**|**Unrestricted Restricted**<br>**2021**<br>**2021**<br>**£**<br>**£**<br>2,159,035<br>-<br>68,370<br>181,230<br>**2,227,405**<br>**181,230**<br>(1,517,695)<br>-<br>-<br>(181,230)<br>**(1,517,695)**<br>**(181,230)**<br>709,710<br>-<br>(459,883)<br>-|**Total Funds**<br>Total Funds<br>**2021**<br>2020<br>**£**<br>£<br>2,159,035<br>1,715,046<br>249,600<br>82,263|
|---|---|---|
|||**2,408,635**<br>1,797,309|
|||(1,517,695) (1,602,861)<br>(181,230)|
|||**(1,698,925) **(1,602,861)|
|||709,710<br>194,448<br>(459,883)<br>(654,331)|
||**249,827**<br>**-**|**249,827**<br>(459,883)|



The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.  Grant monies received in the year have been recognised as restricted funds.  All other funds are unrestricted. 

The notes on pages 23 to 37 form part of these statutory financial statements 

19 



NETA Training Trust Company Limited by Guarantee Company Registration Number: 01273462 **Consolidated Balance Sheet (GROUP) 31[st] July 2021** 

|**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>**13**<br>**CURRENT ASSETS**<br>Stocks<br>**15**<br>Debtors<br>**16**<br>Cash at bank and in hand<br>**CREDITORS: amounts falling**<br>**due within one year**<br>**17**<br>**NET CURRENT ASSETS /**<br>**(LIABILITIES)**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**CREDITORS:  amount falling**<br>**due after more than one year**<br>**18**<br>**FUNDS**<br>Unrestricted income funds<br>**21**<br>**TOTAL FUNDS**|**2021**<br>**£**<br>**£**<br>634,746<br>15,089<br>301,209<br>314,670<br>630,968<br>(187,871)<br> <br>443,097<br>1,077,843<br>(828,016)<br>**249,827**<br>249,827<br>**249,827**|**2021**<br>**£**<br>**£**<br>634,746<br>15,089<br>301,209<br>314,670<br>630,968<br>(187,871)<br> <br>443,097<br>1,077,843<br>(828,016)<br>**249,827**<br>249,827<br>**249,827**|2020<br>£<br>£<br>659,293<br>15,362<br>255,739<br>41,622<br>312,723<br>(532,961)<br>(220,238)<br>439,055<br>(898,939)<br>(459,884)<br>(459,884)<br>(459,884)|2020<br>£<br>£<br>659,293<br>15,362<br>255,739<br>41,622<br>312,723<br>(532,961)<br>(220,238)<br>439,055<br>(898,939)<br>(459,884)<br>(459,884)<br>(459,884)|
|---|---|---|---|---|
||630,968<br>(187,871)||312,723<br>(532,961)||
||||||
|||1,077,843<br>(828,016)||439,055<br>(898,939)|
|||**249,827**||(459,884)|
|||249,827||(459,884)|
|||**249,827**||(459,884)|



The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011.  The Charity has taken exemption from preparing its unconsolidated statement of financial activities under Section 408 of the Companies Act 2006.  The total incoming resources for the year amounted to £2,408,635 and net movements in funds was a surplus of £709,710. 

These financial statements were approved by the members of the committee on the 12[th] November 2021 and are signed on their behalf by: 


S Cossins **Trustee** 

20 



The notes on pages 23 to 37 form part of these statutory financial statements NETA Training Trust 

Company Limited by Guarantee 

## Company Registration Number: 01273462 **Charity Balance Sheet 31[st] July 2021** 

|**Note**<br>**FIXED ASSETS**<br>Tangible assets<br>**13**<br>Investments<br>**14**<br>**CURRENT ASSETS**<br>Stocks<br>**15**<br>Debtors<br>**16**<br>Cash at bank and in hand<br>**CREDITORS:  Amounts**<br>**falling due within one year**<br>**17**<br>**NET CURRENT LIABILITIES**<br>**TOTAL ASSETS LESS**<br>**CURRENT LIABILITIES**<br>**CREDITORS:  Amounts**<br>**falling due after more than**<br>**one year**<br>**18**<br>**NET ASSETS**<br>**FUNDS**<br>Unrestricted income funds<br>**TOTAL FUNDS**|**2021**<br>**£**<br>**£**<br>634,746<br>-<br>634,746<br>15,089<br>301,209<br>314,670<br>630,968<br>(187,871)<br>443,097<br>1,077,843<br>(828,016)<br>**249,827**<br>249,827<br>**249,827**|**2021**<br>**£**<br>**£**<br>634,746<br>-<br>634,746<br>15,089<br>301,209<br>314,670<br>630,968<br>(187,871)<br>443,097<br>1,077,843<br>(828,016)<br>**249,827**<br>249,827<br>**249,827**|**2020**<br>£<br>£<br>659,293<br>-<br>659,293<br>15,362<br>256,558<br>40,803<br>312,723<br>(532,961)<br>(220,238)<br>439,055<br>(898,939)<br>(459,884)<br>(459,884)<br>(459,884)|**2020**<br>£<br>£<br>659,293<br>-<br>659,293<br>15,362<br>256,558<br>40,803<br>312,723<br>(532,961)<br>(220,238)<br>439,055<br>(898,939)<br>(459,884)<br>(459,884)<br>(459,884)|
|---|---|---|---|---|
|||634,746<br>443,097||659,293<br>(220,238)|
||630,968<br>(187,871)||312,723<br>(532,961)||
||||||
|||1,077,843<br>(828,016)||439,055<br>(898,939)|
|||**249,827**||(459,884)|
|||249,827||(459,884)|
|||**249,827**||(459,884)|



These financial statements were approved by the members of the committee on the 12[th] November 2021 and are signed on their behalf by: 


S Cossins 

## **Trustee** 

The notes on pages 23 to 37 form part of these statutory financial statements 

21 



NETA Training Trust Company Limited by Guarantee **Consolidated statement of cash flows For the year ending 31[st] July 2021** 

|**Note**<br>**Cash generated from operating activities:**<br>**27**<br>**Cash flows from investing activities:**<br>Payments to acquire tangible fixed assets<br>Proceeds from sale of asset<br>**Cash used in investing activities**<br>**Cash flows from financing activities:**<br>Repayment of hire purchase creditor<br>Repayment of other borrowings<br>**Cash used in financing activities**<br>Increase in cash and cash equivalents in the year<br>Cash and cash equivalents at the beginning of the year<br>**Total cash and cash equivalents at the end of the year**|**2021**<br>**2020**<br>**£**<br>£<br>393,609<br>114,393|
|---|---|
||(49,638)<br>(27,583)|
||(49,638)<br>(27,583)|
||-<br>-<br>(70,923)<br>(70,923)|
||(70,923)<br>(70,923)|
||273,048<br>15,887<br>41,622<br>25,735|
||**314,670**<br>41,622|



The notes on pages 23 to 37 form part of these statutory financial statements 

22 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **1. Accounting policies** 

NETA Training Trust is a charitable company limited by guarantee incorporated in England. The address of its principal place of business is given on page 7 and the nature of its operations is set out in the trustees’ report. 

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below. 

## **Basis of Preparation** 

The financial statements of the charity have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Charities Act 2011 and the Companies Act 2006. 

NETA Training Trust meets the definition of a public benefit entity under FRS 102 and has therefore applied the relevant public benefit requirements of FRS 102. 

The financial statements are presented in sterling which is also the financial currency of the charity. Monetary amounts in these financial statements are rounded to the nearest whole £1. 

## **Going concern** 

Based on the positive performance of NETA Training Trust during 2020-21 and the future projections, the Board of Trustees considers the charity to have sufficient working capital available to continue as a going concern for the foreseeable future, with the foreseeable future being defined as the period of 12 months from the date of approval of these financial statements.  The charity has support available from the sole member if this was required. 

23 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **1. Accounting policies (continued)** 

## **Consolidation** 

The financial statements consolidate the results of the charity and its wholly owned subsidiary undertaking, NETA Enterprises Limited, on a line by line basis.  All financial statements are made up to 31 July 2021 and consistent accounting policies are used. 

A separate Statement of Financial Activities for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. 

## **Incoming resources** 

All incoming resources are accounted for when the charity has entitlement to the funds, certainty of receipt and the amount is measurable.  Where income is received in advance of performance, or other specified service, it is deferred until the charity is entitled to that income. 

## **Charitable activities** 

Charitable activities represent expenditure associated with the provision of training courses and educational programmes and include both direct and support costs relating to those activities. 

## **Governance costs** 

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the dissection of the trustees.  Restricted funds can only be used for particular restricted purposes within the objects of the charity.  Restrictions arise when funds are raised for particular restricted purposes. 

24 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **1. Accounting policies (continued)** 

## **Resources expended** 

Expenditure is accounted for on an accrual basis and has been classified under the headings that aggregate all cost related to the category.  Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.  Expenditure includes value added tax which cannot be fully reclaimed. 

## **Fixed assets** 

All fixed assets are initially recorded at cost.  Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund. 

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: 

|-|New building|60 years|
|---|---|---|
|-|Leasehold building|Period of lease|
|-|Fixtures and fittings|10 years|
|-|Furniture and general equipment|7 – 10 years|
|-|Major IT systems|7 years|
|-|Vehicles and plant|5 years|
|-|Computer and ILT equipment|3 years|
|-|Software|3 years|



A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying 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. Impairment losses are recognised in the Statement of Financial Activities. 

25 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **1. Accounting policies (continued)** 

## **Investments** 

In the separate accounts of the charity, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. 

Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in income and expenditure.   In the consolidated accounts fixed asset investments held in the form of shares or securities are included at mid-market value at the balance sheet date. 

Realised gains and losses on investments are calculated as difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the SoFA in the year of disposal.  Unrealised gains and losses represent the movement in the market values during the year and are credited to the statement or charged to the SoFA based on market value at the year end. 

Short term investments are deposits held in fixed term bank accounts on which penalties would be incurred if funds were withdrawn before maturity. 

## **Stocks** 

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. 

## **Financial instruments** 

The charity has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS 102, in full to all of its financial instruments. 

All of the charities financial assets and financial liabilities qualify as basic financial instruments. Basic Financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## _**Financial assets: Trade and other debtors**_ 

Trade, group and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. 

26 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **1. Accounting policies (continued)** 

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate.  Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss. 

## _**Financial liabilities: Trade and other creditors**_ 

Trade, group and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. 

## **Hire purchase agreements** 

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value.  The capital element of the future payments is treated as a liability and the interest is charged to the statement of financial activities on a straight line basis. 

## **Sale and leaseback** 

A sale and leaseback transaction is one where a vendor sells an asset and immediately reacquires the use of that asset by entering into a lease with the buyer.  When this occurs the proceeds are credited to a liability account, demonstrating the commercial substance of the transaction, which is reduced by the capital element of future payments and interest is charged to the SOFA on a straight line basis. 

## **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. 

## **Pension costs** 

The company operates a defined contribution pension scheme for employees.  The assets of the scheme are held separately from those of the company.  The annual contributions payable are charged to the statement of financial activities. 

27 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **1. Accounting policies (continued)** 

## **Critical accounting estimates and areas of judgement** 

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

## **Critical accounting estimates and assumptions** 

In categorising leases as finance leases or operating leases, management makes judgments as to whether significant risks and rewards of ownership have transferred to the charity as lessees, or the lessee, where the charity is lessor. 

## **2. Income from Operation of training provision** 

|Income from Training courses<br>**.**<br>**Other income**<br> <br>Capital grant<br>Job Retention Scheme<br>**Total Other income**|**Unrestricted**<br>**Funds**<br>**Total**<br>**Funds**<br>**2021**<br>Total Funds<br>2020<br>**£**<br>**£**<br>£<br>**2,159,035**<br>**2,159,035**<br>1,715,046<br>**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Total Funds**<br>**2021**<br>Total<br>Funds<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>181,230<br>-<br>181**,**230<br>-<br>-<br>68,370<br>68,370<br>82,263|**Unrestricted**<br>**Funds**<br>**Total**<br>**Funds**<br>**2021**<br>Total Funds<br>2020<br>**£**<br>**£**<br>£<br>**2,159,035**<br>**2,159,035**<br>1,715,046|
|---|---|---|
||**181,230**<br>**68,370**<br>**249,600**<br>82,263||



**3. Other income** 

Capital grant funding received by the sole member, Education Training Collective, from the Education and Skills Funding Agency as Further Education Conditions Allocation to improve the condition of education provider estate. 

## **4. Costs of Operation of training provision** 

||**Unrestricted**|**Total**|Total|
|---|---|---|---|
||**Funds**|**Funds**|Funds|
|||**2021**|2020|
||**£**|**£**|£|
|Costs of Training courses|**1,517,695**|**1,517,695**|1,602,861|



28 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

|**5.**<br>**Costs of other operating expenses-Further Education Conditions Allocation**|**5.**<br>**Costs of other operating expenses-Further Education Conditions Allocation**|**5.**<br>**Costs of other operating expenses-Further Education Conditions Allocation**|**5.**<br>**Costs of other operating expenses-Further Education Conditions Allocation**|**5.**<br>**Costs of other operating expenses-Further Education Conditions Allocation**||
|---|---|---|---|---|---|
|||**Restricted**|<br>**Total**||Total|
|||**Funds**|<br>**Funds**||Funds|
||||**2021**||2020|
|||**£**||**£**|£|
|Roof expense||**181,230**|<br>**181,230**||-|
|**6.**<br>**Costs of charitable activities – by activity**||||||
||**Staff**|**Support**|**Total**||Total|
||**costs**|**costs**|**Funds**||Funds|
||||**2021**||2020|
||**£**|**£**||**£**|£|
|Training courses|702,906|814,789|1,517,695||1,602,861|
|Other Expenditure|-|181,230|181,230||-|
||**702,906**|**996,019**|**1,698,925**||1,602,861|
|**7.**<br>**Analysis of support costs**||||||
|||**Total Funds**||<br>Total Funds||
||||**2021**||2020|
||||**£**||£|
|Other staff non-teaching costs|||3,118||13,456|
|Agency staff costs|||189,754||147,621|
|Premises expense|||199,680||204,561|
|Vehicle costs|||8,914||7,527|
|Teaching costs|||207,535||232,218|
|Non-teaching costs|||82,640||103,861|
|Depreciation|||74,180||73,900|
|Interest costs|||61,994||64,077|
|Other recharges|||(13,026)||(39,049)|
|Roof expense|||181,230||-|
|**Total**|||**996,019**||808,172|
|**8.**<br>**Net Outgoing Resources for the Year**||||||
|This is stated after charging:||||||
||||**2021**||2020|
||||**£**||£|
|Interest payable on finance leases|||61,994||64,077|
|Depreciation – owned assets|||34,918||34,638|
|Depreciation – assets held on hire purchase|||39,262||39,262|
|Auditors’ remuneration:||||||
|-audit of the financial statements|||6,300||6,300|



29 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **9. Taxation** 

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 

## **10. Surplus of the Parent Company** 

As permitted by Section 408 of the Companies Act 2006, the statement of financial activities of the parent company is not presented as part of these financial statements.  The parent’s surplus for the year was £709,717 (2020: £194,448). 

## **11. Staff Costs and Remuneration Total staff costs were as follows:** 

|Wages and salaries<br>Social security costs<br>Other pension costs|**2021**<br>2020<br>**£**<br>£<br>611,898<br>692,636<br>51,510<br>60,417<br>39,498<br>41,236|
|---|---|
||**702,906**<br>**794,289**|



Restructuring Costs paid during the year nil (2020: £nil). 

Total contributions to money purchase pension schemes for staff earning over £60,000 per annum were nil (2020: £nil). The salary cost of the Managing Director of NETA Training Trust is borne by the Education Training Collective. 

## **Particulars of employees:** 

The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows: 

|Delivery staff<br>Support staff|**2021**<br>2020<br>**No**<br>No<br>8<br>10<br>11<br>12|
|---|---|
||**19**<br>22|



No employee was remunerated greater than £60,000 (2020: nil). 

## **Key management personnel** 

The key management personnel of the group are the Trustees of the Trust and the Chief Executive.  The total employee benefits of the key management personnel of the group were nil (2020: £nil). 

The key management personnel of the charity comprise the Trustees and the Chief Executive. 

30 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **12. Trustees’ Remuneration** 

## **Trustees’ expenses** 

No trustee has received a salary and none received any expenses in respect of the year ended 31[st] July 2021 (2020: £nil). 

## **13. Tangible Fixed Assets** 

|**Group**<br>**COST**<br>At 1 August 2020<br>Additions<br>Disposals<br>**At 31 July 2021**<br>**DEPRECIATION**<br>At 1 August 2020<br>Charge for the year<br>On disposals<br>**At 31 July 2021**<br>**NET BOOK VALUE**<br>**At 31 July 2021**<br>At 31 July 2020|**Freehold**<br>**property**<br>**Leasehold**<br>**property**<br>**Motor**<br>**vehicles**<br>**Equipment**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>19,677<br>1,117,101<br>-<br>626,412<br>1,763,190<br>-<br>-<br>-<br>49,634<br>49,634<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**19,677**<br>**1,117,101**<br>**-**<br>**676,046**<br>**1,812,824**<br>15,346<br>582,408<br>506,143<br>1,103,897<br>1,018<br>39,262<br>-<br>33,900<br>74,180<br>-<br>-<br>-<br>-<br>-|
||**16,364**<br>**621,670**<br>**540,043**<br>**1,178,077**<br>**3,313**<br>**495,430**<br>**-**<br>**136,003**<br>**634,746**|
||4,331<br>534,693<br>-<br>120,269<br>659,293|



## **Sale and finance leasebacks** 

Included within the net book value of £634,746 is £495,430 (2020 - £534,693) relating to assets held under sale and finance leasebacks.  The depreciation charged to the accounts in the year in respect of such assets amounted to £39,262 (2020 - £39,262). 

31 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **13. Tangible Fixed Assets** _**(continued)**_ 

|**Company**<br>**COST**<br>At 1 August 2020<br>Additions<br>Disposals<br>**At 31 July 2021**<br>**DEPRECIATION**<br>At 1 August 2020<br>Charge for the year<br>On disposals<br>**At 31 July 2021**<br>**NET BOOK VALUE**<br>**At 31 July 2021**<br>At 31 July 2020|**Freehold**<br>**property**<br>**Leasehold**<br>**property**<br>**Motor**<br>**vehicles**<br>**Equipment**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>19,677<br>1,117,101<br>-<br>626,412<br>1,763,190<br>-<br>-<br>-<br>49,634<br>49,634<br>-<br>-<br>-<br>-<br>-|
|---|---|
||**19,677**<br>**1,117,101**<br>**-**<br>**676,046**<br>**1,812,824**<br>15,346<br>582,408<br>506,143<br>1,103,897<br>1,018<br>39,262<br>-<br>33,900<br>74,180<br>-<br>-<br>-<br>-<br>-|
||**16,364**<br>**621,670**<br>**540,043**<br>**1,178,077**<br>**3,313**<br>**495,430**<br>**-**<br>**136,003**<br>**634,746**|
||4,331<br>534,693<br>-<br>120,269<br>659,293|



## **Sale and finance leasebacks** 

Included within the net book value of £634,746 is £495,430 (2020 - £534,693) relating to assets held under sale and finance leasebacks.  The depreciation charged to the accounts in the year in respect of such assets amounted to £39,262 (2020 - £39,262). 

32 



## NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

|**14.**<br>**Investments**<br>**Company**<br>**COST**<br>At 1stAugust 2020 and 31stJuly 2021<br>Depreciation<br>Disposal<br>As at 31stJuly 2021<br>NET BOOK VALUE<br>**At 31st July 2021**<br>At 31stJuly 2020<br>Analysis of investments at 31 July 2021 between funds<br>**Unrestricted funds**<br>**Total Funds**<br>**2021**<br>**£**<br>Group undertakings<br>**0**|**Group**<br>**companies**<br>**£**<br>-|
|---|---|
||-<br>-|
||-<br>**-**|
||-|
||<br> <br>Total Funds<br>2020<br> <br>£<br> <br>0|



Details of the investments in which the company holds more than 10% of the nominal value of any class of share capital are as follows: 

||**Country of**|**Holding**|**Proportion**|**Nature of**|
|---|---|---|---|---|
||**registration**||**of voting**|**business**|
||**and operation**||**rights held**||
|**Subsidiary Undertakings:**|||||
|NETA Enterprises Limited|England|Ordinary|100%|Dormant|
|(CRN: 02448095)||Shares|||



The activities of the subsidiary has been consolidated on a line by line basis in the SOFA. 

33 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **14. Investments** _**(continued)**_ 

## **NETA Enterprises Limited** 

The trading results of the subsidiary, as extracted from the audited financial statements, are summarised as follows: 

|**Turnover**<br>Total expenditure<br>**Net gain/loss for the year**<br>The assets and liabilities of NETA Enterprises Limited were:<br>Assets<br>Liabilities<br>**Net liabilities**|**2021**<br>2020<br>**£**<br>£<br>-<br>-<br>-<br>-|
|---|---|
||-<br>-|
||-<br>819<br>(82,246)<br>(83,065)|
||(82,246)<br>(82,246)|



The net assets of NETA Training Consultancy at 31 July 2021 were nil (2020: £nil). 

## **15. Stocks** 

||**Group**|**Group**|**Company**|**Company**|
|---|---|---|---|---|
||**2021**|2020|**2021**|2020|
||**£**|£|**£**|£|
|Stock|**15,089**|15,362|**15,089**|15,362|



## **16. Debtors** 

|Trade Debtors<br>Amounts owed by group<br>undertakings<br>Other debtors|**Group**<br>**Company**<br>**2021**<br>2020<br>**2021**<br>2020<br>**£**<br>£<br>**£**<br>£<br>**30,855**<br>43,051<br>**30,855**<br>43,870<br>**105,421**<br>-<br>**105,421**<br>-<br>**164,933**<br>212,688<br>**164,933**<br>212,688|
|---|---|
||**301,209**<br>255,739<br>**301,209**<br>256,558|



34 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **17. Creditors: amounts falling due within one year** 

|Trade creditors<br>Other taxation and social security<br>Other creditors<br>Accruals and deferred income<br>Amounts owed to group undertaking|**Group**<br>**Company**<br>**2021**<br>2020<br>**2021**<br>2020<br>**£**<br>£<br>**£**<br>£<br>**66,593**<br>70,992<br>**66,593**<br>70,992<br>**14,600**<br>13,319<br>**14,600**<br>13,319<br>**70,923**<br>70,923<br>**70,923**<br>70,923<br>**35,520**<br>52,595<br>**35,520**<br>52,595<br>**235**<br>325,132<br>**235**<br>325,132|
|---|---|
||**187,871**<br>532,961<br>**187,871**<br>532,961|



Included in other creditors is £70,923 (2020: £70,923) which relates to a sale and finance leaseback. 

## **18. Creditors: amounts falling due after more than one year** 

|Other creditors|**Group**<br>**Company**<br>**2021**<br>2020<br>**2021**<br>2020<br>**£**<br>£<br>**£**<br>£<br>**828,016**<br>898,939<br>**828,016**<br>898,939|
|---|---|
||**828,016**<br>898,939<br>**828,016**<br>898,939|



Included in other creditors is £828,016 (2020: £898,939) which relates to a sale and finance leaseback. 

## **19. Pension Commitments** 

The company operates a defined contribution pension scheme.  The assets of the scheme are held separately from those of the company in independently administered funds.  The pensions cost charge represents contributions payable by the company to the fund and amounted to £39,498 (2020: £41,235).  Contributions totalling £3,787 (2020: £1,861) were outstanding at the balance sheet date and are included in creditors. 

## **20. Related party transactions** 

The company has taken advantage of the exemption under FRS 102 not to disclose transactions with members of the group in which it is a wholly owned subsuidiary. 

35 



NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **21. Unrestricted income funds** 

|General Funds<br>Restricted<br>**Total**|**At 1 August**<br>**2020**<br>**Incoming**<br>**resources**<br>**Outgoing**<br>**resources**<br>**Balance at**<br>**31 July 2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>(459,883) 2,227,405<br>(1,517,695)<br>249,827<br>-<br>181,230<br>(181,230)<br>-|
|---|---|
||**(459,883) 2,408,635**<br>**(1,698,925)**<br>**249,827**|



## **22. Analysis of Net Assets between funds** 

## **Group** 

|Tangible fixed assets<br>Net current assets/(liabilities)<br>Long term liabilities<br>**Company**<br>Tangible fixed assets<br>Net current assets/(liabilities)<br>Long term liabilities|**2021**<br>2020<br>**£**<br>£<br>634,746<br>659,293<br>443,097<br>(220,238)<br>(828,016)<br>(898,939)|
|---|---|
||**249,827**<br>(459,884)|
||**2021**<br>2020<br>**£**<br>£<br>634,746<br>659,293<br>443,097<br>(220,238)<br>(828,016)<br>(898,939)|
||**(249,827)**<br>(459,884)|



## **23. Commitments under sale and finance leasebacks** 

## **Group and company** 

Future commitments under a sale and finance leaseback are as follows: 

|Amounts payable within 1 year<br>Amounts payable between 2 to 5 years<br>Amounts payable after 5 years|**2021**<br>2020<br>**£**<br>£<br>70,923<br>70,923<br>283,692<br>283,692<br>544,324<br>615,247|
|---|---|
||**898,939**<br>969,862|



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NETA Training Trust Company Limited by Guarantee **Notes to the Financial Statements Year Ended 31[st] July 2021** 

## **24. Capital Commitments** 

At the year end, there were no capital commitments (2020: £nil). 

## **25. Company Limited by Guarantee** 

The Trust is a company limited by guarantee and has no share capital.  The liability of each member in the event of a winding-up is limited to an amount not exceeding £20. 

## **26. Ultimate Controlling Party** 

In the Trustees’ opinion the company's immediate parent is The Education Training Collective. The Education Training Collective is the smallest and largest entity for which consolidated accounts including NETA Training Trust is prepared. The consolidated financial statements of The Education Training Collective are available from its website. 

In the opinion of the trustees, as sole member of the charity The Education Training Collective are the ultimate controlling party of the company. 

## **27. Reconciliation of net movement in funds to net cash flow from operating activities** 

|Net movement in funds<br>Add back depreciation charge<br>Decrease (increase) in stock<br>Decrease (increase) in debtors<br>Increase (decrease) in creditors|**2021**<br>2020<br>**£**<br>£<br>709,717<br>194,448<br>74,180<br>73,900<br>273<br>(3,117)<br>(45,471)<br>(22,775)<br>(345,090)<br>(128,062)|
|---|---|
||**393,609**<br>114,394|



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