2021-08-31-accounts

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REGISTERED COlVtPANY NUMBER,. 00971293 (England alld Wal¢s) REGISTERED CHARITY NUMBEIL. 307299 IIEPORT OF THi TRUSTEES Af4D FJNANCIAL STATEMENTS FOR THE YEAR EfiDED 31 AUGUST 2021 FOR SOUTHAMMN ENGif4EERING TRA[NG ASSOCIATION LIMITFD TRADING AS SETA Hper Williams & Bell Limited Sithtory Auditor Highland Hse Mayfiower Close Chandlerfs Ford Eastleigh Hampshire S053 4AR

SOUTHAMpfoN ENGINEERING TRAINING ASSOCtATION Lllr[ED TRADING AS SETA CONTENTS OF THE ThYANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUCUST 2021 Page Report of the TTustses I to 7 Report of the Ind¢p¢thdent AMdi¢oT8 8 to JI ststemeD¢ ofMnallel#l ActilIeS 12 Balan¢e Shee¢ 13 Cash Flow StateJneu¢ 14 Notss to the Cash FIDW Ststtment 15 Nots¥ to tb¢ Flnallcial Statew¢Lts 16 to 26 Dttxlled StatèfA¢llt of Flnaneial Artlvltl&s 27 to 29

SOUTHALIUYON ENGINEERING TRAINllYG ASSOCIATION LIMITED TRADING AS SETA REPORT OF TH£ TRUSTEES FOR THE YEAR ENDED 31 A15GUST 21121 The trustees are also dir¢iorn of the Charity ts the Frtwpose5 of the Companie8 Aet 2006, present their report with the finan¢ial statsments of the ¢lMTity for lkne year ¢nded 31 AuwJst 2021. The truste¢s have adopted the proviglons ofAwuDting and Rep¢Jrtkng by Charities.. Stst¢ment of Re¢onJmethd pra¢t1 opplicable to ¢hariti¢3 prcparing their 4¢couttts in aceoydan¢¢ WAth tho FI8CIal Reporting Standard appIlble in tbe UK and Republic of Ir¢land (FRS 102) (¢ifertive l January2019). OBJEcfivES AND AcfiviTIES ObJe¢tive$ alms lkn aim 18 to be the first choice for local etnplOS requiring training servtces for the development oe their engitteering staff. By offerin% a cornbinatioTh of workthop and t¢a¢hing facilitie4 mat¢hing thc requir¢ments of Ii)cal industy togettLer with excellent CUslom6r sorvi¢e we have established a loyal ruslom¢r base alld a higEL level of repEut orders. R¢ferr8ls by satisfied customer& frequenlly introduce now ¢u8tomtts an4 C(equentIy. inc(xne is not d¢pelldant on a Jarg¢ exp¢nditure on sales and marketing. SETA ts positiODed to provide SPE¢iaii8t trainin8 servlces to the en8in¢eriJkg and ronstrudion Servi 5eGtors and Striv(% to offeT a ¢omprchensive te¢hni¢al training 8¢rviee. New courses aro introduced and existing ccAwses 4 T¢Vi5 in TOnSt to employeTT¢que8ts. We Jre ¢om7nittEd to thliyering appr¢nI1hipS and support youttg pe(yb to enter engineeTing. Vacancir5 are advertised on behalf of employers and appIication8 are r¢gularly ov¢r8ubsaibed by a &ctor of 5. Advlc¢ and guidan¢e is offered lo stsdents applying for positiony and throughout their training prwRmll)¢s. Maititainin8 the safeguti8 and weItbEing ¢)f all learners and Jtsff is p&rti¢tdarly imiknant attd is Ulld¢r ¢Stat review. We alln to provide a 8UPPOrtive working enviroDment wh the contribuiion of our employees is valuel creativity fJi¢ourag¢d. equa]ity and diversity is rospectedand equal opportunity is promoted. Publle b¢ll¢fit Tho obiectivea and acttvities undertaken by ibe charity are c(¥thed to be fr public ben¢fit alld the Trustees have omplied with the duty in section 4 of the Charities Act 2011 to have due regwd ts) public benofjt 8uidanct published by the CommLssioD. Durin8 the year 2021.. 225 (2020.. 202) apprenticeships were provided and. of these. 127 (2020.. 107) were agad b¢tsve¢n 16 and 18 years of wgc. 67 (2020. 67) WCTe betwe¢n 19 and 23 years of 8g¢ ond 3 1 (2020.28) were aged ov¢r 24 years. Overall 33 (2020.. 53) candidatrs 3urcessfully COpIet¢d their aNYentlcGthips with 66/ 12020.. 55%) achieviD8 withtn Ihe planTh¢d liJn&4cale. These r&eg hro higb¢r than average national achievetnent levels for the engine¢rin8 CtI3. STRATEGIC REPORT Achiev¢m¢nt And perhrm8n¢¢ FutsdrAl$luR 4¢llvilies Th¢ charity does nut participats in ally d¢t or fuThdd ndlis1ng. However, donotions are ntrd* by employws and SpplierS., the3e are mostly plant and ¢quipm¢nt. Finallelal reyle Principal funding sources The prin¢ipo1 soutte OF fiuiditig arises from apprenticfships fimded ty the Education and Skills Funding Agency (ESFA) repr¢seniin8 51P/4 {2020.. 52 /•) of inGoJne. Th6 rnuiority of the (ther illcotne is m8de from ¢otnmucipI irtcome from employers. Page I

SOtrrHAMPTON ENGINEERG TIL4INING ASSOCIATTON LIMITED TRADING AS SETA REPORT OF THE TRUSTEES FOR YEAR Ef4DXD 31 AUGUST 2021 STRATEGIC REPORT Flnanelal review Rejervw polity The current level of unrestrlcted reservE9 (ex¢ludin8 the fair vaille reserve) i5 valued at £209576 (2020.. £134.344) whith represents 9% (2020: 60/0) of nual costs. the objective setby t&e ly)ard is for this to Ee increasedto £i,000,000 rwAenting 51Yh of annual costs. The Boord of Trust¢¢s has coll&idered the a(kqua¢y of tot r¢serYes held lry the c(xnpony and 18 of the opinv)n that they are adequate tr th¢ fltherattce of the d)aritys abiectives. The reserve$ policy is to,. Protectthe charity frcqn the rlgk of insolvellcy or serious di¥niption to its ch8rit&bkwork. Provide sufficient thrLds to iov¢st in ¢quiptnent serTrices for tbg beDefit ofyoung pyle and adults uothrtakng trainiti8. Perfor&et The r¢sults fcf they¢pr 3tLd th¢ fin8nGi41 position of th¢ assoclatlon are sllown in tbe 8onexed llccounts. ThC show $UTplll5 for th¢ fLll8ncial Ye which the Trustees rem2Jmend IR add¢d to r¥serv¢, ID accordart¢e wlth the rcqulrenLents of the Charlty ComElli5sioll a ValuatIon w&8 carrled out on the leasehold premiw u5¢das an apprentice trainitig ¢eDtr6 in 2016. Th¢ butldin8 was ereded in 1969 and has a floor llrea of 1950 Sq m. Jt is occupied under an 84 year leN3e which expires 28103r2054 leaving aft un¢xpired terni of 33 years. The estimated fair voluo ofthe le4se is still illcluded at a valuation of £335,OLM). less depTeciation. Ihe fatr valuele8¢e of £93,234 (2020: £96,094) call onty be r¢le95Ed by dib'pusal of th¢ apprentice traitting ¢e]e. Overnll sales revenuos increased by £185.407 (9•A) c(Anpared with the prevAI)us ye8tr. This is due to inu¢as¢d c<ffntD¢r¢ial sales. Alyo, overall fllndingh8s in¢reased from the ESFA for the apprentlceslllps. Safeguardillg has continll¢d to att rn of revlew. The p8ndeJnic has caused a Significant knerease In mental health issues with 1..4 apprentlc¢s and a $IlIar ratio of staff affected. A dedicated Pastoral S¢rvice5 Tea has Ixen cr¢oled. xed ossets The prin¢ipal fixed L8set Is the lotsg le8$¢ for the pr¢mises at ljt Avenue the market value was t?8¢ssed in 2016.

SOUTHAMPTON ENGINEEIIING TRAINING ASSOCIATION LIMITED TRADING AS SETA REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 STRATEGIC REPORT Prlnclpal risks alld uL¢ert8)lltieg The panderni¢ rctittiins on¢ ofihe main risks to the training centre. A jor Government reform of 8pprtnticeshlps and fjjnding ill 2017 Iw bad a continuing impact on inwm¢ received from the appTenti¢thip sGheme, Although overall fi]nding leyels have not beBrn redured by the ititroductith 4)f an apprcnlic¢ship l¢Try. cash tlow continues to be affected. Previousty, employer3 wero dir¢¢tty tharged for 'off the job training, delivered in the rt Year of the wogramme, providing a substantial cash tIDw EenefiL Our plan stated it would lake three years to re-establish inciKne levek Imt th¢ pdeI has unpicted thls plan due to a redu¢¢i(y) in apwenticeslLiP Starts in SepteMr 2020 aud approntw leaving the progrdn)me. There i5 anottLer reforni of the opprenticesbip standards ld¢TwaY $0 this will Cause fuTther uncertainties for emplo)ers and training provide alike. Areduixd value ov¢rdrall facilityha8 beth retsincd with tbe bank 08 a ¢onthi8ency. Demalld for hazardoll5 area tsainiD& represtht& 20 Yo of eornm¢rcial salo8. Addition 3t&ff to wvice the8e coursey is VIÈ to keq) ¢ontinuity of supply. Pzocth and syst¢Trys have Eeou put in place to ¢n5we that critical Tr dats is tthed.up and stored to facilitate Teinstatan¢nt, Th¢se procedures are compli8mt with the GenBral Data Profyrtion Rtquir¢ments {GDPR) legislation and the 8yStom for reeording student details is audited by the Provider Financial Assurallce Team operating rn behalf of the EducalioD and Skills Funding Agen¢y(BSFA). Ptlnclpa] financial ti8k8 ar¢: l) Remaining on the Kegister of Training ProvideTS (ROATP), ts vllal for ESFA in¢ome aThd Ihe ability to grow the apprenticblP schetne. Similarly vital is t¢maitsin8 w OFSTED Grade 2 or alK>ve. 2) Current arraugem6nts wilh the ESFA Ère dependent ott hloving a consistent satisfactory fwancial health assess[llet and tbis will require achieving break-e finaD¢ial perforJllallc¢ as a minimurn in the 2020121 fmaD¢ial 3) ComTneTcial ¢ourse8 represent 450/fy of the total Income and are vitsl to 8UPPOrting the apprentIC1p programmes. Bngincerlng apprenticesb¥s are typicalty four years in duration and iD¢ome Is released on a monthly ba3iy by tho Eduration and Skills Funding Agen¢y (LSFA) wtth 200/ts being rct&ined until completion. 4) CLmpktioll of an 4)pr¢nti¢eship is achieved by SUccessfi as5essm¢nt orc0peteucY by an approved Independent End Point Ass¢¥sm¢nt Organ[si0ll (EPAO). The pandemi¢ h#s caused d¢lays to these &wessrnents. wiib mally beillg switched to a virtual assessment. Delays in ¢ompletLOnS of appr¢nti[knLPS se5 a rt¢gative impact on fLftan¢ial perforniance and OFSTBD assessment latin& 5} Ci)mmer¢ial cole5 are fijuybookd, rlsk to delivery 18 hlgh tf in$tru¢tors are unavailable which pos a potential risk to income. Pag¢ 3

soirThAMFTON ENGINEERING TRA]fqiNG SSOCIATION L]MITED TRADING AS SETA REPORT OF THE TRUSTEES FOR THE YEAR EP4DED 31 AUGUSI 2021 rnTEGIC REPORT Future plan5 SETA has a w¢ll-establi$hed reputatim for delivering high qty, value for molley engineIng apwenti¢¢sbip training services. Th¢ ¢reation of apprenticeship service teams encompasslng recruitmenL tschnic. fidIn& p&gtoral ernd eud ass¢ssment wer• fjjudamental to h¢lp eMplor$ derStand the refi)rms gttd extract maximum vftlue frLE their Levy in&[¢nt. SETA Iw ¢5t&blished 4 package whith pre$ & comp¢titive edge find will help secure preDtic#sbip cotttracts with employers far &Dd wid¢. W¢ must ensure rovetwe generated through apprenticeship training 18 SUStainable Ivhi18t ¢llsuring omploy¢rs a returtt on their levy thvestment. Nearly 8Ji Dew appretttic¢8bws in 2020 were provided at LLvel 3. In our sector, ther¢ ts fillther indItiOn of l)rovt8XOtt 8lkift' away from level 2 (intermedi8te) tOWArds level 3 attd th¢ n¢w Igvel 4 (advanced) apprenticeships. SETA were one of frjur providers nationally credIted to deliver lev¢1 4 apprenticcships in our Sr. Forging links with Universities and Profrsslottal E4¥in¢ering IllstitLttious will b¢ crucial to trarLsitioDID8 appr¢ntiwhip8 in our se¢tor. SETA has a commeTcial facility whicb provid05 el point asye5snent servi¢eB for alectro-ts¢bnl¢al qualificailons and a wsde rang¢ of ¢leCtri, mechanical and hazardous Brea trainitEg coutses. The incorne e8rngd fro these sViCeS represEuÉ5 50Yo of (r inc(ttne Cruci to fundihg the appreniiccship training seNiceg we Provide. We must c(mtinue to add to owportfolio of services to &ble thi5 provision tO8rowto rneet ony futur¢ apprtic&hIp rtfonns. STRUCTURE, GOVERNANCE AND MANAGEMENT Governlng document Th¢ ¢hority ts ¢ontrolled by its governing docllment, a deed of trust. and constitutw a limited ¢ompany. limited by guarante4 as defmed bythe Companie5 2006. Th¢ g¢)v¢rDins aullIeI is the mOradUt aThd Artt¢les of A&sclation, dated 28th J8nuary 1970. This dOcurnt is CU<ntiY undeT review, and Eeing updatrd in line with ehang¢$ to th¢ GhlIy0per4tillg wo¢thes. Rerruttm¢nt and appolDtment to th¢ CouDeil of Trugt¢ tnvltations are eJttended to the user mernb¢rs of thè ¢hority to rtomln81¢ one as a member and Dtreetor of the tharity. Th¢ charity. no shRre capital, 18 by the Council of Trustets and rAO individual is able lo exercise cwtrol ofth¢ charity, PagE 4

' soirTHAMPTON ENGINfERING TRAINING ASSOCIATION LIiVIITED TRADING AS SETA REPORT OF THE TRUSTEES FOR THE YEAR ETrIDED 31 AUGUST 2021 STRUCTURE, GOVERNANCK APID MANAGEMENT Organballonal strlldure Day to day nagernent of the Charity 18 under ¢ontroI of the CEO, Ju]ie Gougb, who acts In ac¢ordance with th¢ in81ntiOnS of the Council of Tru$tecs l Board of Dire(Xors. Theie are thee principal areas of optration: i) 2) 3) Delivery ofEnginewiThg Apprenticeships Commercial training C(NllPfA¢ncyassessment All activiti¢s iiicluding support $Èrvices, finan¢4 perSnCl , marketin8* compliance, henl¢h & safety mcmES1P are managed througb the key managernenl team. su¢ontraCtOrs are relalned QD annual contracts to provide speclalL5t 5ppOrt in tbo areas of IT and Personntsl Mall8g¢mtnL Remuneration for koymanagement personnel is goyernedby limits $¢t by the Thistees. Performatt¢e is 8s$essed ty the key managemont. The charity operates a defined ¢trIbUtIOn pension scheme open to all staff The )lty contributrs IOOA of gross salary to the $cheme f each staffmember emplOd prior to August 2021, and a minijnutn ¢Jf Syo for staff tecruited ftor thi$ dot¢. stsff will ¥ontribut¢ a mittium of 3% to reach the 8¥• GoVmeThI requir6m¢nL Jnduetlon tralning of new trmstces Potential trust¢w are invited to apply to become involved Ivith the charity and l¢arn more about th¢ contribtjtion they can make. A formal application must be made to the Directors tor their approval. A fal explanation of responsibilitie8 is provided before en appoitltmellt ig Cfirrn¢d. RKFERENCE AND ADMlSTRATIVE DETAILS Regijjtved Comp8Try number 00971293 (England aTJd Wales) Regist¢rEd Chorlty uumber 307299 ReElg¢ered offire Fir8t Avenue Millbrook SouthauLtéou Hampthir¢ S015 OLJ Page 5

SSOCIATION LIMITED TRADING AS SETA REPORT oir THE TRusfEES FOR THE YEAR ENDED 31 AUGUST 2021 Trustees M5 J E Freemantle GE Mason T J ML'llard G Ranger C J Sav8g¢ A J Thornton Resigned 30 Julle2021 Comp8Dy director M D Driscoll Mrs J D Gough BAsigned 09 Au8USt 2021 R¢signed 09 Augu812021 CompAlly S¢¢retsry R W Uei8hin8ton Hopper Wllliams & B¢ll Limited StatytoryAuditor Iwland House M&yfiower Close Chandler's Ford Bastleigh HampshiTe S053 4AR Key ma£¢¢*. M D Driscoll MtE J D Gough oFat11)n8 dirKtor Bkr8 Natlonal Westminster BbDk plc 12 HiBk Streot Southampton Hampshire SOk4 2NX GOING CONCERN The association operates on a dalty Iwi& using & combirLation of bank facilities, ¢dit ¢gJd knrrowiDg credit from suppliers. The trustees have a rvdsonable eXpeKtati tbat the Charity has adequate reserves to contiti fn (w9tion for the foreseeable tUre and cfftlinue to adopt the going conm bas1$ of ac¢ountin8 in preparing tht annual financial stat¢mettt& STATEMENT OF TRUSTEES, RESPONSIBILITTES The trustees (wko ¥r¢ also the dir¢Lttors of Southllrnptoll Engineemg Training Association Limlted for th¢ purposes of company law) ore respoll5ts1e ftr preparing the Report of the Trustee8 and the fin¥Aclai $1xtem¢nts in cOrdance with applicable l&w and United Kin8(10 A¢¢ounting Standatds (United Kingdom G¢Dora]fy Acfw Arxountin8 Prarfi¢¢).

' SOUTHAtVIPTON ENGINEERING TRAININC ASSOCIATION LIMITFD TRADING AS SETA REPORT OF THK TRUSTE FOR THE YEAR ETrtDED 31 AUGUST 201L STATEMENT OF TRusfKES' RESPONSIBILITIKS- ¢ontJttued Company law requires the trustees lo prepare financial 8tatEments for ea¢h fJnan¢lal year whi¢h give And fair view of the state of affairs of the charitable company alld of tho in¢oming resourGe8 and application of resources, includiog the in¢omo and expenditur& of the ch8ritabk company fv th period. tn Prepar8 those financial statements. the trustees ar¢required to sele¢t suitable accOting policies and then &pply them consistently. obsen¢ the methcds and prinGiplE$ in the ChaTity SOiUJ. makn judgements and esÈimat&5 that are r¢a$onable and prudont. stat¢ whether app1[ble 4¢counting stattdards hove be followed. subject to any material depwtures di$clowl and explain¢d in th¢ fjnallcial statements; prepare the finBncial statements on the going c(HLcern basis unless it i8 iDappropri&ts to presum¢ that the charitknie omp8ny will c¢)ntinue in busittess. The trustees are respm5ible for k¢opin8 proper acciM)nting recor&8 wbich disclckqe with reasonabl¢ a¢curaGy at any tllne the fmancial positlon of the charitable comp8JLy to enablo th¢m to cnsure that the financial stntements cornplywith th¢ CoJnpanie$ Act 2006. They 8rc also responsible for safeguarding ihe assets oftbe charitable company dhence for taking reasorL&bl¢ steps for the prevention aLd dettIO of fraud attd er ]rrelaritie3. In so far as the trUSte¢s are awue: there is no rglev8nt audit infornMtIQD of which the tharitable Comp)5 thitff8 ar¢ unaware. and the trustees have tsken all ep$ ththt they (rtht to h&ve taken to make th¢mselves aware of any relevdnt 4udit InfonlI0ll and to 4Stabli5hthat the uuditiJr8 are aware of that inforuwtion. AUDITOBS The auditors. Ilow Williams & B¢ll Ltmited, wlll be proposed for re-appointhient at the fortbcoming Annual C]cAeral Meeting. Report of th¢ tru5t¢es. inW[pillg a strategic report, approved by order of the board of trustxs. 08 the ¢mpany direct(8, oTh......... ...................... ............ arLd signed on the board's behalf by: R W H¢igbington- Secretsry Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE mEER5 OF SOUTHAMPTON ENGINEERtNG TRAINING ASSOCIATKON LIMITED Opinlo We have audited the fillanci statqnents of Swthampton Ell8ittttring Trainlng Association Limited (IILe 'charitabl¢ yjllpany) for the year ended 31 August 2021 whiGh GOllLpri8¢ tht Statement of Fynatt¢ial Activlties. the Bal3mce Sh¢¢t. th¢ Cash Flow Ststement and notss to tho financiol st4iements. includlng A Stllllmary of yignifi¢ant a¢c(NJntins poii¢i?s. The fllwicial rwhn8 fram¢work th9¢ has bee applled iti their preparation 18 applicable law aud United lQll8dom AccountiDg Standards (United Ki]L8dom GenerallyAe¢eptedAocountmg Pr4cd¢e). In our opinion the finaucial statgments.. giv¢ a true and foir view of the state of ¢haritabl¢ compatty8 affaiTh &9 at 3 1 2021 and of its incomlllg Te8ourc¢s 4Thd app]ltion ofresour¢es, inelthling its illcome and expcoditure. for the y¢ar thert thded; haveb¢en properlyprepared irL a¢cordall¢e wilh Ullit¢dKingdoftn Generally AcceptedAccixmting Pragtic¢" aLd have been prepared An accordance with the requirements ofthe Compani¢s Act2006. Basig for oplnlon W¢ ci(Lducted our audit accordance with InteTnational Standards oll Authtln8 (UK) USAS IUK)) and applicable law. Our respoLsibilitie5 under thos¢ standayds are fjjrtber dosttilled in the Audith, re5wi$ibllities for the audit of the £nsn¢ial stalemonts section of our reprf We are ittdepundent of the charit&bl¢ company in accordan¢e with the hical requirements that are relevattt lo our audit of the fanCIaL 8tat¢ments in the UK. iucluding the FRC'S Ethieal Stsndarl and we bftve fifilled our other eth1 re8pon$ibiJiti¢s in accwdance th these requlrwD¢nts. We b¢lie that the audit eTridenc¢ w¢hav¢ obtained is sufficient Attd qpproprnte toprovide a basis for our opinion, CoDeluJlons rel8ting to lolng ¢on¢¢rn tD auditing the fllwL¢ial statements. we havB CLmrlud¢d that the trust¢es' use of tbe going eoACern basis of accountill8 the preparntion Dfthe fjnancial statements is 8ppropriate. Based on tbe work we ha performe w¢ h&ve ttot ideAtified any material unc¢rtalnties relating to eyents or ¢Mkditiong tha( individually or collectively* Juay Gast sigllifi¢mt doubt on tlle charitable Compatts abitity to cthtlnue as 4 going for a pe¥iod ofat le28t twelve nonths frcTh when th¢ fmanciat statejnents are authorised for issue. OUT respon$ibiliti¢3 alld tho responsibilities of the tsu8tees with respett to golthg ncern are described in the relevant se¢titsns of ehis report. Other infDnnaOon The trusieBs are responsible for tho thher infoTmation. The Oth infttEnation w)wrises the informaticfj Included in the Anuual lieporl oth¢rihan the rClaI statellLents and Report rfthe ]ndendent Audttors thereoll. Our opinlon on the fin8ll¢iol statemeThts does not cover the other inform&tion an4 ex¢¢pt to the extent othenviBe expliGitly3tated iti ourrep(rE we do not express any forrn of assurall 00ncl10ll thereffl. ¢onnertilfL with (wr audit of tILe fiThancial statemell1 (w rwonsil)ility18 to read the other infotTftatith an doing so, c(osidEr wheth¢r the dher Information is materially inconsisteot with the fill¢11[ statements or our knDwl¢d8¢ obtalned In the audit or otbenwist BPP¢gry to Ix matsria]ly misstatsd. If we identify materlal iThconslstencie5 or apparent mthi&l mi5stal¢ments we are requir¢d lo d¢termiDe whether this gives rise to a materi MItateMent in the financial 8tatements thernsclves. 1£ b&sed on the work w¢ buve p¢rfonne4 w¢ conclude that there j3 a m&t¢rial lsStateiellt of this othet InfontiOn, we are roquired to report that fact. W¢ have nothing to rOrt itL this regard. Opinions on other matters prescribed by the Companles Act 2006 Jn our Opinio based on tho work uudBrtak¢Th in the Course of the autllt: the inforn]ati¢m giv&n in th¢ R¢port of the Trusteey for the £natt¢ial y¢ar for whi¢h thè finAn¢ial statements are prepred Is Consistent WAth the tlnanclal stat¢ments' and the Report ofthe Trwtea8 has been pr¢p8r¢d In a¢cordance with applicabje legal r¢quirem&ts. P8ge 8

REPORT OF THE INDEPENDENT AUDITORS TO THC, MEMBERS OF SOIJTHAMPTON ENGINEBRSNG TRAINING ASSOCIATION LIMITED M4tlers on whlch we arc re4llired to report by eeptIon In th¢ light of the knowledge and ulld¢r8t)tig of th¢ charitable c1)mpY its eLvIront obtained in tbe cow8e of th¢ audi¢ wthavenot Idetlttfiod mat¢ri8lmisststements SD the Report of th¢ Trusteg5. We have n¢xbing to report in respect of the following matters whore the Compallies Act 2006 require3 to repLYt Éo you if, in our opinion: 8dequats accounting red9 have not k¢pt or retums adequate for our audit have not receiwl from IxanthesDOt visited by u8. or the finBncial statements are itL agreement with the arr(tIllg re¢orth and returns. OT certain disclosur oftrusteel remutLeratiim spe¢ifi¢d by l&w are JLOtmade" or we have nrt receAved all tht inforntiOTr explanations we require for our audiL Re8ponsShllStles •f trui¢eas As ¢xplain¢d moT¢ fully iu tbe Staternent of Trustees, RespollsibllÈti. the trustees (who are also the directors of ths tharitAbl¢ company frjr th¢ purposes of company law) arp respon8ible for the prqparation of the statemet 8nd for being satIsfd that they give a true and fair view. and for such internal contrd L8 the trwtees determine 13 lleS3ry to enable the prep1TL0 of fin8tt¢i81 stawmellts that are free from material misstatemen¢ whether due to fraud or eLTOr. JTh pr¢pariug the fjnancial slat¢m¢nt4 the trllstees are respousible for asseiDg the ¢harilable Companys ability to c(ffttinDe as a going Conc dtsclosing, as applicabl<, matter8 reloted to goillg ron¢ern and using the 8QIDg concern iwis of aCCting unless the trustees either illtelld to liquidate the ¢haritablo company or to •$¢ operations, or have no r¢alisti¢ alternatibut lo do so. Prtge 9

REPORT OF TIIE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTItAMFfoN ENGIP4EERING T1141NJNC. ASSOCIATION LIMITED Our respoD$ibiltlle$ for the Y4udlt ofthe fillgnclal st•tsments Otjr objectiV¢g are to (thin reasorL&bl¢ wsuran¢è ibout wh¢thgr the thattclal statetnents as a whok are fr¢¢ from Jnatsrial mI¢at¢1cllt, whether dué to fraud or error. alld to issue & Report of the ]ndsp¢ndffit Allditc that includes our opittion. R£asonable a&%urance ts & high level of L8srnc4 I? is not a guarantee that an audit ¢onduthd in a¢¢Ordary with ISAS (UK) S11 always detect & mateTial Thisslat¢m¢nt whett it ¢xists. Misstat¢ments ¢m wise from fraud or etror ¢sIdered materlal If. individually or in the aggregats. they (Ldd r¢a80n4bly be eApE¢tsd to inllu&n¢e the e¢oll¢)mic deckqions ofu5ers tsken on thèbasls ofth¢s¢ fJn8ncial State[nls. The +1 to hi¢h ow predr¢S are Capable of detecting bregularitiw, includlng frAud is detaikd below.. - We d)tained an vnthstaDding of the legol ¥lld regulatory frameworks that are appllcabk to the company, 8nd th8 Industry in whiLh it operates. These iticlude lyjt are not limited to compliwLCC with the Coffjpanies Act 2006, UK Genorally Awepted ArUnting Piinciples andthe relevtht tax Kanpliance regul2tims for the company. - Wtr nbtained gn understanding of bow the ¢LdparLy 18 wuplying with theso framework8 tbrough dts¢us8ion$ wlth man8g¢m¢llt, - W¢ ¢nquired WAth matMg¢m¢Dt whdber thue w¢ any instances of noll-compliAnGe with laws aThd r¢guiatlon$ or whether thgy had knowl¢dg? of actual L* suspected frau(L These onquirieB are coyr(aJorat¢d through follow.up audit proced includin8 but not li)nited to a review of legal and profrssicoai costs. corr•spondence and a review of bwd mittutes. - We ll5se58 th¢ 8U8¢eptibility of th¢ Comp8 fin¥Tr¢ial stateMts to material Thisslatement, kncloding the risk of froud and managwllenl override of controls. We desied (xtr audit procethres to respoDd to this a88wmellL including the IdtIfiCation and tegthig of w rolated party transactlolls and the t¢stlng of j(urnal trallsaGtion5 that arise from Mallagemt ¢$timates, that gre d¢l¢rniioed h) bo of siguificant value orunusual in tbeirnatUTe. - We asse88ed the apprLyriatonèss uf the colle¢tlY¢ eomp¢tenr4 and capabilitie5 of the en8ag¢ment team. iL¢ludiug tl8id8ratiou of the engagemtht team'8 knowledge Alld derStand]Th8 of the in whlch the compally operates in, and their prarticAI expeJieoFe tbrough traitting and participation with audit eng&g¢mts pfa $imilorDature. A fllrth de8UiPtion of our responsibilities for th¢ audit of the financial stst¢ments is lOtea on the Fin8nclal Reporting Council's weIte at viww.fr¢.(Yg.uldaudit(wesponsibilitse5. This description fms part of our Re[ of tho Independent Auditon. Pog¢ 10

RKPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINIIERll4G TRAINING ASSOCIATION LIKrrED Use of our report Thls report is mzde lolY to the ciwitalAe compan8 memb¢t5, as a b(wJy. in accdIn£e with Chapt¢r 3 of Part 16 of tho Compani¢s Art 21x16. Our autht work ha8 been undertaken so that we migbt state to the choritable companys Members those matters we are required to state to them in an auditors, report alld for no other purpose. To the fvllest extetst pemiitted by law, not accept or a&wme responsibility to anyone other than the tharitsble WpanY and the ¢harltabl¢ ¢otnpanys membgrg as & bly. for our audit worL for this repor4 or for tho opinions we h&v¢ fmeLt Micha¢h Johns FCCA (Senior statutAUditr) for and OD bthalf vf Hoppw Williams & Bell Littiited StutlltwAuditor HighlandHou8e Mayfiower Cl¢)se Chandler's Ford Eastleigh Hampshire S053 4AR Pa8ell

ASSOCJATIOIY LIMITED TRAi)ING AS SETA STATEMENT OF TrINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGU 2021 2020 Unrutricted fund8 funds INCOME AND ETrlDOWMBs FROM Donetioos and legacies 74 127 Charltsble activiti Cours¢s alld training 2J57,136 2240,143 Jnv¢stment incolle 603 Total 2J57.214 2,240,873 E%PEI4DITURE ON PAisiTh8 funds 165 3,483 Cbarttsble •¢tiYitips Courseg and training Staff crfjts Establi8hJnent Plant malerlal alld oquipm¢nl General exper& 460,73S IA54,179 152,678 8S687 131J98 398.869 1.399,711 172.358 73,016 127,2f2 Total 1284J42 2,174.719 NET INCOME 72?72 66,154 RECONCILIATION OF FUTrIDS Total fuuds browght lorward 230h38 164,284 TOTAL s CARRJED FORWARD 301810 230,438 Thonotes forni pgrt Orthe fjnanclal statan¢nts Pw12

' SOUTHAMwfoN ENGLNEERllYG ThAIMNG ASSOCIATION LIMITED TRADING AS SETA BALANCE 31 AiIGUST 2021 2fr21 Unrestrieted nds 2020 Total fvnds Notes FIXED k8SETS Trngible assels 12 370,432 380,587 CuRREr ASSETS Debtors Cash at bank and in hatsd 13 19&973 30,567 191.3LI 28.816 22940 220,127 CREDITORS Amount8 fAllitsg duewithin one y¢8r 14 1259,084) P20.443) NET CIJRRKNT ASSETS (29,544) (100,316) TOTAL A&SEIS LESS CURRETr4T LIABILITIES 340,888 280271 CREDITORS Amounts falling due after tttura than one year 15 (38,078) (49.833) 14ET ASSETS 302,810 230.438 FUD]DS Unre5triotgd fiwds 18 302.810 230.438 TOTAL FUNDS 302,810 230,438 The fjjj cial Statements were approved by the Board of Th¢5 and authorised for i&suo on 2oLL. alld w¢re signed ou ils belACby'. T J Millard - Tru8t¢¢ The not¢3 fOI partofthese fillpncial statements Pa8e 13

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED TRADING AS SETA CASH FU)w sfATEMENr FOR TIIE YEAR ENDED 31 AUGusf 2021 2020 Notes IIow8 from opertlng actlvitle8 Cash g¢ner&ted frclll owlong Jnterest paid 41238 65) 84,513 13.483) Net 8 provlded byopernting activities 41,073 81.030 Cash Alows from Rttvegting actlvltles Purchase oftarLgible fixed assets Tnterest received (3A826) GO,296) Net cesh used In investing activitie$ (36,824 (20.293) Cash flows from Iln*n¢in8 #¢tivitSe8 Newlo8n8 sn year L(wi r¢paymerLts ill year 50,000 (2} Net ch (used inyprovlded by firLancing activities (2,500) 50,000 Change Itt talb gnd fash eqvlv2lent8 In the reportlng period C•sh and eash equivalents at tbe benIttg of the reportlng peTlod 1,751 110.737 28,816 (81,921) C8gb and cash equlvalEnts At the eDd of th¢ reportitig peri(•d 30,567 28,816 Th# not¢s forni part ofthese finatt¢ial statsments P&8e 14

SoUTHAtroN ENGINEII RING TRA]TrIING ASSOCIATION LIkrrED TRADINC AS SETA NOTES TO THE Ck8H FLOW STATEMEYIT FOR THE YEAR E[ED 31 AUGUST 2D21 RECDNCILIATION OF NET INCOME TO Nrr CASH FLOW FROM OPERATll¥G ACTIVITIFS 2021 2020 fincon)e for the repordng period (as per the Statement of allclal Actlvltl¢5) Adju4tmettts for.. DepT¢Giatiffl charges Los5 on disposal of fixed assets Jnter¢streceiv¢d Jnter¢stpaid iti debtors (Decreaseymcroase In creditors 72,372 66,154 42347 4,735 <4) 165 (7,663) (70,614) 34,730 162 (3) 3.483 (41,495) 21.482 Net eash provided by OpetiOnS 41238 84,513 ANALYSIS OF CHANGES IN NET DEDT At 1.9.20 Cosh flow At31,821 Not eash Cash ut bank and in hand 28JJ6 1.7SI 30A67 28016 1,751 30.567 Debt Deixs falling within l year Dekn fallin8 due after l year (2,355) (47,645) (7,067) 9,567 19.422) (38.078) (50,000) 2,SlJO (47AOO) Totsl (21,184) 4,2SI 933) Th? notas forni pth of these fjnon¢iAI statemellts Pase 15

SOUTHAMFTON ENGINEERING TRAINING SSOCIATION LIMITED TRADING AS SETA PIOTES TO THE FINANCIAL STATKTrJENTS FOR THE YEAR ENDED 31 AUCiISf 2021 AcCOlTING POLICIES Basts of pr¢pirlTrg tho flnanell itatemeDts The fiDCIal statements of the ¢haritsbl¢ wnwarty, whl¢h b a publi¢ benefit etitity under FRS 102, have bee prepaTedAll a¢¢ctdaneewith tho Charities SORP (FRS 102)'A¢¢ounting and Reporting by Charities.. StLt¢ment of Re¢(K(unEaded Pr4ctice appllcable to charities preparing their accamts in a(rdance Ivith th¢ EIttte1&1 Reporting Standard applicable in the UK and RePL]IC of Tr¢laThd (FRS 102) (eff¢¢live l January 2019),, Financial Rewyting Standard 102 The F]nall¢ia] Rewttng Staudard applicabk in th¢ UK atLd Rtpublic èf Treland, 8nd the Companies Act 2006. The fancIal statements have b¢¢n pr¢p8red uttder th¢ historf] Cost convention, as mDdifLed bythe rIllatiOn of ¢¢rtaio L8Stts. Golng conceTIL The truske¢s conjidered the impact ond risk on the charity of COVID.19 and the ¢hgritys prospec ie¢o8Disittg tho high d¢e of uncertaillty. The dlrectors have concluded that with th? ri8knt management acdon4 tb¢ cknity 15 a going Ccern for at I81 12 months following th¢ sigtmture of the fmdnciai statements. IDeome AII kncLTne is Tocoguised in the Stat¢mont of Flnan¢ial A¢tivilies onro the tsity ba8 elltiti¢rnent to the funds, it is probable that the inwne will t¢ reIvedad the anLOUTLt w be theasuredreliably. Expelldltur¢ Liabiliti¢s Hre rec0gllia L8 eXpelld1tLe as so1 as there is a legal or Gonstru¢tlv¢ ¢b]i84tion tommittlng the ¢h8rity to thvlt expenditure, it is probable that trS[r of economic benefits will required in sottlement and the arnount of th¢ obtigation call be me&sur¢d r¢liably. Expenditure is aled for on an artls bagix and has been classified under h¢ading$ that 888re8ate c05t T¢lated to th¢ thgory. Where G()5ts cannot be directly attribut to parti¢ular headings thrykayt E¢en a]Io¢Atedto actiVAtie8 on a basi5 COILSiStent with thE Use of Tangible Ilxcd assets Depreciation is provided at the folloivlllg annual rat¢5 ITh (rder to WTite off ea¢h awt over its estimated useful Lwehold prernlses (1st Av¢nu¢- building) Short l¢thold premises (2nd Avenue - land) Plant and equipnieJJt Computer v4UiPtn¢ Po¥ta¢ab Motor vehicle Over the remainlng period of tbt 68 year I8¢ Over lo years strallht Ilne 20°h r¢duclng balanee 33 113Vty Strglght lille 20•/o redllclng balAn¢¢ 20/0 reduclng balanc¢ T)xatl The Charityis exlpt frorn ¢uwffation t&x on Its charitlble artivitie$. Fuud aeeouDtlng Unrestricted thTLds be US in accordanowith tbe ¢hAritablc objectives at the disLaftion of tbe trustees. R¢stri¢t¢d fjjndy can ollly ix used p&rtlcular re8trsthd pwpc¢e8 within th¢ obittts of the ¢harAty. Kestrictton$ ar18e when specified by tbe dorAor or whon fjmds arerai5ed for particul rgstrlctedputPDses. Further w)lanntion of the natUTe and pwpoje of each is iDcluded In the notes tothe financl81 Ststcmts. Page16

' SOITlllAMPTON ENGINCIERING TRAIPIINC ASSOCIATIOPI LIMITED TRADING AS SETA NOTES TO THII FINANCIAL STATEMENTS. contlnued FOR THE YEAR ENDED 31 AUGUST 2021 ACCOiINTING POLICIKS- con¢lttued Pensioll costs and oth¢r post-retire]Dent b¢nefiis The &ssociation Ctilles to contribute to three defiued contribution 8themes. contritionS are tharged to the income expcAdlture ae¢outtt &8 theybe¢LNne payabl¢. GoverDtnent gr8nts The following soywnnient grants h8v¢ beenteceived (kning th¢ Iw.. Business Interniption Pa)Thent (BtP) lder the Bounce Back L1 schome.. The BIP is PbLe in rupect of the loan inierc8t for the first 12 months, together with any relhted ft&%. The accrual model has ett u8ed tts i¢gnISe the inrotn¢ on a wtematic basis over th¢ periods to which th¢ Teled f]nall $ts ar¢ inrwred. The compwy has alsobefited from th¢ UK governmenvs provision ot security for I• ofthe loan. Cmonavirus Job R¢tsnlion Stheme.. the accrual model has be¢n wed to recognise the grant on a systematic ba5TS over the p¢riod5 iD whi¢h tlle rel&ted staff wsts are iticurr¢d. Busiue5s Support Gr8Dt Funds: the accrnal model has been used to recognise the grant when it is received ¢x F£com&s ieceivable. as there 8re no future relatedcosts or performance conditions. Leased assets Amounts paid under operatiTrg leases are ¢hwEed to the inc¢Jne and exditre account as illourred. Grants Grants receivable in respect of fjx¢d assets are treAt¢d as d¢f•r¢d itt¢om¢ whl¢h aro cr¢dit¢d to tb¢ itt¢¢Jtn¢ and exp¢nditWe account ovw tho ¢stimatsd ¢wiomic lives ofth¢ related assets. DONATIONS AND LEGACIES 2021 2020 Donations 74 127 INVESTMENT llYCOMK 2021 2020 tllvestment income Deposit account ititere51 600 603 Page17 tinu¢¢l..

SOUTHAMwfoN ENGINEERING TRAINING SSOCIATIof4 LIMITED TRADll¥G AS SETA NOTES TO THE FJNANCIAL STATEMEpffs- ¢ontinll¢d FOR THE YEAR EF4DED 31 AUGUST 2021 rNCOME FROM CHARABLE AcfiviTIES 2021 2020 Total activitiès training Employer¢oThtriblltions Trnining Welding courses FSFA fundin G0mMettt grallts Cell8ne( incane Cattteen sales attd sundry ConurL¢r¢ial cowses 29935 123,023 121,790 1,181311 114,707 518 331 579,679 199,925 3.897 21,146 108,f167 1,166,522 183,121 3,011 22S 434,260 224,835 3064 Trwel recovered 2?57,130 2,240.143 Grants receive in¢luded in the abov4 a5 follow$: 2021 220 ijher government ltsts Cryonavirus JobRetentlon Scheme Grt Business Sllpi Grants Fund BounceBaek Loan S¢h¢m¢ intere8t 3,319 111,388 170,116 10,000 1,250 I14707 181,366 RAISING FUNDS Other tr4dlng a¢tfvhies 2021 Jnterestpayable and Similar charw 165 3,483 Pag¢ 18 (YLtin(j...

' sourHaMPTON KNGINEER]NG TRAING ASSOCIATION LIMITED TlDING SETA NOTES TO THE FINANCTAL STATEMLNTS- eontlllu¢ FOR THE YEAR ENDKD 31 AUGiFST 2021 CHAIUTABLK ArrivriIES COSTS Support costs {8ee note 7} Direct Costs Totsls Courses and trnining Staff costs Estab]islJment ant mat¢rial and equipment General exp¢n3¢s 460,735 1I49,942 152,678 85,6 120,1130 460,735 1,454,179 152,678 8$687 131J98 4,237 IIA68 2,269,072 IS,605 1284677 SUPPORT COSTS GoverngTr¢o costs Management Totals Stsff costs General expens 4.237 4,237 11,368 11,368 4237 11?68 15,605 4ET INCOMKI(EXTENDITURE) Net incomel(expcuditure) is stated aft¢r chargtnW(crediting): 2021 2020 Auditors, remuneratlon AuditS remuneration for non audtt work DepreGiation- owjed 155ets Oth¢r operatIg le& D¢fici¢ on disposal of fix¢das8ets S,900 5,468 42,247 113.1122 4,735 5,700 2,100 34,730 127,622 162 Page 19 o)ntillued...

soITrHAMPTON ENGINRERINC TRAININC ASSOCIATION LIMITED TRADING AS SITA NOTES TO THE FINANCIAL STATEMENfs- contlnued FOR THE YEAR EfqDED 31 AUGUST 2021 TRUSTEES, REMUNERATION AND BENBFITS TheT¢ w¢r¢ no trust¢K' rejnuneration or other benefits the Ye ettded 3l Augwt 2021 n(ff for th¢ ended 31 August 2020. Trl¢Cl, expen8¢5 There were no ts7, expenw paid fv the year ended 31 Aiwst 2021 Dor for th¢ yeor ernd 31 August 2020. io. AFF COSTS 2021 2020 Wag¢s alld salaries SLa1 s¢Gurily oxts (Aher pen3ion ¢osts 1,181A92 120,395 128,429 1.171,074 115235 110,749 1030316 1,397.058 Th¢ avrage monthly number of employe¢s during th¢ y¥arwa8 as follows.. 2021 39 2020 41 Employe No employees reC¢ideMolm@nts In of£60.000. Ihe total key managom¢nt remun¢rAtion including pensiou and ben•fits noted abov¢ is £138,662 (2020: £137258). COMPARATIVES FOR THE STATEMENf OF FINANCIAL ACTIVITIES Unrestri¢t¢d fjjnds INCOME AND ENDOWMENl8 Imom Donations and k8acies 127 Cha Yltible ActlYlÉle$ Courses and traitiin8 2240.143 Tnv¢stment in¢c4n¢ 603 Total 2.240.873 ExpEfqDITiJRE ON Raising fimds 3,483 CknHritable aetivltles Cour8¢8 attd training Staff costs 398,869 lJ99.711 Page2D tinued...

SOUTHAMFfoN ENGINEERING TRAINLYG ASSOCIATIONLIKITED TRADING AS SETA NOTES TO THE FINAWCIAL sfATEMENTS- Continued FOR THE YEAR ET4DED 31 AUGUST 2021 Ji. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTivrriES- eontloued Unrostrlcted Estsblishm¢nt Plant ma7a1 and equipment 172,358 73,016 127.282 Total 2.174.719 NET INCOME 66.154 RECONCILIATION OF Fuf4DS Totsl fullds brought Iorward 164,284 TOTAL FUNDS CARRIU) FORWARD 230,438 12. TANGIBLE FIXED ASSETS Plant alld machinery l¢as¢hold leA8ehold Totals COST At I September 2020 AddiliLYAS Di5posal8 74,370 33SOLM) 930,430 3fi826 (149,0113) laS9,8(Ml 36,820 (149,003) At 31 August 2021 74J70 335,1100 838,153 1247.023 DEPRECIATION At I SEPtember 2020 Cbarge for year Blituinatfd on disposal 7{014 147 32.160 12.420 873,039 29,680 044169) 979.213 42,247 (144,269) At 31 August 2021 74,161 44.58(1 758,450 877,191 NET BOOK VALUE At 31 August 2021 2119 290,420 79J03 370A32 Al 31 August 2020 356 302,840 77.391 380.587 The loug tenn leasehold premi5¢5 were re-valu¢d to £335,000 on 9 November 2016 by Hugbe8 Eliard Limited, itidepthdent finn of properry consultattts on ao open market yu¢ basis. If th¢ building8 had becn induded at valuatTon, they would hav¢ beea included under the historlcal cost rmvenlion a8 follows,. Page21 tinuod.,.

SOiTTHaMnoN fNGtNEERLYG TRAINING ASSOCIATION LIMITED TRADING AS SETA NOTES TO THE FINANCJAL STATEMENtS. ¢ODtlnued ITOR THE YEAR ENDED 31 A13GUST 2021 12. TANGJBLK FIXKD ASSETS. eontlnued 2021 2020 383Jl)7 (184,9B5) 383.307 (178,587) AccuMd deprectstion 198J22 204.720 Thwe no eapitsl coffjmitmmts outstaDdin8 at 31 August 2W21 {2020: £nil). 13. DEBTORS.. AMOiIFTfs FALLll¥G DUE wmtlN ONE YEAR 1021 2020 Trade debtor8 Prepayments 104,564 94,409 58,632 132.679 198973 191,311 14. CREDITORS: AMouNfs FALLING DUE WKN ONE YEAR 2021 2020 BaDk108os and ov¢rdrafts (see nots 16) Trado ¢reditors So¢tal Security and ither taxe VAT (kher credÉtors Accrual$ and d¢ferred Income Deferred SOTMmment ttt9 Inc(Kne in advance 9A22 6707V 30.089 29,681 4,002 93.53D 1355 31,266 78,584 44,337 5,336 113.357 1.131 44,077 2S290 259,084 320.443 The bank ovethft i8 s¢cufEd on allth¢ a8sets ofthe ¢anpaDy. Deferred ino)Jne r¢lat¢s to cr5e d¢po8tt8 attd fres. whiGh have b¢en invoi¢¢d. but not perfonned by th¢ year end. Deftrred iLcome Is In¢luded in 4)ther Gr¢ditor8 ab)v¢. The amount ofthi8 income is follows.. 2021 2020 Deferred at 31 Auwst2020 Release during th¢ y¢8r Dotsrred dtirillg tILe yegr 077 (44,B77) 2S29CF 63.453 (63.453) 44,077 D¢ferred #t 31 Au8USt 202 2S290 44.077 Pagè22 continued,.,

souTHADPT0N ENGINEERING TRAIfqll¥G ASSOCIATION LIMITED TIL4DING AS SETA NOThS TO THE FINANCIAL STATEMENiS . conthiued FOR THE YEAR ENDED 31 AUGUST 2021 I& CREDITORS; AMOUNTS FALLING DIJE AFTER MORE THAN ONE YEAR 2021 2020 Bank loans (seenote 16) Deferr¢d govVrnmLt wl8 38,078 47.645 2.188 38,078 49,833 16. LOANS An analysis of th¢ matsrity of loatts is gtvenbelow: 2021 2020 Amounts falling due within one year on dematLd.. Ballk loans 9,422 2.355 Amounts falling between rne dtwO years: B#nk loans- 1-2 years 9.808 9,566 Amounts fallittg the between two and five y¢arg: Bank loans- 2-5 year& 2&270 30,175 Amounts hlling due iTLmwe th8D five R8payablo by in8talmthts: Bank loans more 5 yr by snstai 7.904 17. LEASING AGREEMENrs Minimum le& paymenu under non-coDcellable op¢ratiThg IM5e$ fall due as follows.. 2021 21no Within one yeer B¢tweell one 8Ld fiv¢years ltt more tlLBn five years 72301 19&915 1,103,600 77,985 231.117 1.143,600 1,374.716 1,452,702 Page 23 ntittued...

SOUTHAhllryON ENGINEERG TRAINING ASSOCIATION LIMfTED TRADll4G AS SETA NOTES TO FINANCIAL STATEMENTS- eontlttued FOR THE YEAR EI¥DED 31 AUGusf 2021 MOVEMENT IN FUNDS Net Transfers m(Jvgment Ixtweell fithds At 313.21 At 1.9.20 Unrejtrieted Iund8 (leneral fid Fair value reserve 134,344 9A094 72A72 1860 .860) 209,576 91234 230,438 72J72 301,810 TOTAL FUNDS 23&,438 72J72 302,810 Net movrnt in fUtt iLC]ud¢d in tho al are as follows.. kncoming Resourc£g Movement rejourtts expended in fjjllds UDfoStrlcted fimds G¢n¢Thl fulld 2057214 (2,284842) 74372 2J57J14 (2,284042) 72?72 CompxratlveB for rnovemeDt In fund$ N¢t move]nent in fimd¥ Tra08fris between fid$ At 31.8.20 At 1.9,19 UnTrstrleted 65.493 98,791 66.154 2,697 Q,697) 134,344 96,094 Fairvalug r¢8grve 164,284 66.154 230,438 TOTAL Fuf(DS 164,284 66,154 230.438 PJg¢24 nued...

SOI]THAMPTON ENGINEERING TRA]NG ASSOCIATION LIMITED TRADING AS SETA NiyfEs TO THE FINANCJAL STATEMENfs- eolltlny¢d FOR THE YEAR ENDED 31 AUGUST 21121 MOVEMKNT JN FUNDS. ¢ontlntsed Cotuparative net movement in funds, in¢lud¢d in the Above ar¢ as follow8; Ill¢{1ng resourc¢s Resour¢w Mtsvement eXpeded ill fun(ts iTnrestrl¢t¢d funds Generdl fimd 2240,873 (2,174,719) 06,154 2.240.873 (2,174,719) 66,154 A current year 12 nlonths attd prior year 12 mrnith5 c(llnbinedpo$ition is as toItows: Net Transfrrs movement bcwcn in funds fid6 At 31.8.21 Atl,9.19 Unre$trleted fuHd$ General fund Fair value resttve 65,493 98.791 138.526 S,557 {5,557) 209,576 93234 164284 138J26 32,810 TOTAL FUNDS 164.284 138,526 301810 A curront ye¥ 12 month$ and prior year 12 months combined net movement in fimd4 Included th the above re as follows.. Jncoming expended in funds Unr¢slrleled fvnds (]eneral fi]nd 4,598.087 (4.459.561) 138,526 TOTAL FUNDS 4,598,087 (4,459.561) 138.526 Page25 continued,..

SOUTEIAMIryON ENGINEERING TRAlI1G ASSOCIATION LirrED TRADING AS SETA Norn TO THK FINANcL STATEMfNTS- Continued FOR THE YEAR ENDED 31 AiJGusf 2021 19. RELATBD PARTY DJSCLOSURES There w¢re no r¢lated pty tran8llctiL5 for tb¢ year ended 31 Awul 2021 nor for Ihe ended 31 Au8USt 2020. COMPANY STATUS The Association i$ limited by guarantpc of the markber5, each of whom is dueto contr1te a maximum of £20 wbi15t a methter or, Ivit]Lin oneyear of ceasillg to be m¢rnE¢r. Ihe number 0fMemr8, who are the trustee8. iti 221 was 5 {2020= 6). 21. TAXATION The association h&A charitable status arLd ex¢mption from taxation has been grdThtsd under Coryorarfon Taxes A¢t 2010. P8ge 26

Southampton Engineering Training Association Limited

Audit Findings Report For the year ended 31 August 2021

Section 1: Management letter points arising from audit work .......................................................................................................................................................... 1 Section 2: Adjusted misstatements ................................................................................................................................................................................................... 2 Section 3: Unadjusted misstatements .............................................................................................................................................................................................. 4 Section 4: Going Concern .................................................................................................................................................................................................................. 5 Section 5: Assignment Director Contact Details ............................................................................................................................................................................... 6

Audit findings for Southampton Engineering Training Association Limited for the year ended 31 August 2021

The Trustees

Southampton Engineering Training Association Limited First Avenue Millbrook Southampton Hampshire SO15 0LJ

Audit findings for Southampton Engineering Training Association Limited for the year ended 31 August 2021

Dear Trustees

In accordance with our normal practice we are writing to draw your attention to various matters which arose during the course of our audit of the accounts for the year ended 31 August 2021.

Audit opinion

There are no expected modifications to the auditors’ report on the financial statements.

Adjusted and unadjusted misstatements

The adjusted misstatements determined during the course of our audit, are summarised in section 2 of our audit findings report. A schedule of unadjusted misstatements over our audit triviality threshold of £2,000 is included in Section 3.

Letter of representation

A draft of our letter of representation, detailing the representations which we have relied upon for our audit, will be sent separately for your consideration.

Internal Controls

The control environment at the charity was good and the key financial controls that we would have expected to see were in place.

Improvements in the accounting and internal control systems

As you are aware from our letter of engagement, our audit procedures were directed towards testing the accounting systems in operation upon which we have based our assessment of the accounts.

Section 1 of this report contains details of matters identified during the course of our audit and our recommendations for improvements. This may not contain all areas for improvement that are present in your system.

In making our recommendations, we have considered the size of the charity and the number of staff you employ. Responses from the Finance Manager and the Managing Director are included in the final column.

Other relevant matters relating to the audit

We have discussed with you the fact that we provide additional services to the charity in addition to acting as auditors. We wish to confirm to you that in our opinion the provision of such services does not affect our independence as the additional services provided are of a routine compliance nature and the Finance Manager and Trustees take any decisions where judgement is required.

Other matters required by Auditing Standards to be communicated There are no other matters that we are required by auditing standards to communicate to you.

We would like to take this opportunity of expressing our thanks to all of your staff for their assistance during the course of our audit, in particular George James and Julie Gough.

Please note that this report has been prepared for Southampton Engineering Training Association Limited. It must not be disclosed, quoted or referred to third parties without prior written consent. No responsibility is assumed by us to any other person.

Yours faithfully

HWB

Section 1: Management letter points arising from audit work

----- Start of picture text -----
Issue (including financial Implication/ Risk
Recommendation Management response Timescale
impact) Consequence H/M/L
1 The short leasehold The asset was depreciated L Once net book value reaches Miscommunication and a N/a.
premises have a negative net after its useful life elapsed. zero, ensure the depreciation presumption that we were
book value once worked Management figures stops. going to go back into lease
through on the fixed asset presented would be immediately. This has been
register. This was due to the inaccurate. delayed to due to COVID-19
asset being over-depreciated and a hold up with the
by £7,216. landlords.
2 A fixed asset register is not Fixed assets could be L Ensure a fixed asset register The previous accountant’s Going
maintained. misstated in the financial is maintained and updated on advised us that our asset forward.
statements. a monthly basis. The register register was incorrect. This
should also be agreed to the was adjusted in 2020 however
trial balance every month. we required guidance to
HWB can supply you with the maintain this register going
register we have set up and forward. Training to be
the required training. provided.
3 Fixed asset additions have Depreciation is understated L Ensure fixed assets are Same response as point 2. Going
not been depreciated in the in the financial statements. depreciated from the point at forward.
year. Depreciation for which they are available for
additions total £4,827. use.
4 Accruals were not adjusted Accruals were overstated in L Ensure accruals are updated Schedule to be completed Going
for in the year resulting in the financial statements. on a monthly basis and going forward. Additional forward.
accruals being overstated by reconciled to the trial training to be provided.
£18,160. balance.
5 Deferred income was not Deferred income was L Ensure deferred income is Same response as point 4. Going
adjusted for in the year overstated in the financial updated on a monthly basis forward.
resulting in deferred income statements. and reconciled to the trial
being overstated by £18,787. balance.
----- End of picture text -----

Section 2: Adjusted misstatements

Audit materiality of £58,500

----- Start of picture text -----
Balance
Description Nominal SOFA Total
sheet
£ £ £
Surplus/(deficit) per trial balance - 26,928 26,928
Audit adjustments:
1 To reallocate ESFA’s accrued income Prepayments 63,878 - -
Trade debtors (63,878) - -
2 To release prior year accrued income Welding courses - (6,759) (6,759)
Auditors remuneration - (250) (250)
Wages - 20,677 20,677
Social security - 1,721 1,721
Bank charges - 55 55
3 To adjust for year-end accruals Light and heat - (1,154) (1,154)
Cleaning, laundry and refuse - (23) (23)
Sundries - 135 135
Other operating leases - (3,000) (3,000)
AM2 testing income - 17,001 17,001
4 To release prior year deferred income Commercial courses income - 27,076 27,076
Plant and machinery additions 3,275 - -
5 To correct depreciation charge Plant and machinery depreciation (3,275) - -
6 To reverse depreciation for second avenue Depreciation for short leasehold - 7,217 7,217
7 To provide depreciation for additions in the Depreciation for plant and machinery - (4,827) (4,827)
year
8 To correct VAT charge Sundries - 14,281 14,281
----- End of picture text -----

----- Start of picture text -----
Balance
Description Nominal SOFA Total
sheet
£ £ £
9 To dispose of assets Loss on disposal - (4,735) (4,735)
10 To release government grant Government grants - 3,319 3,319
To defer income invoiced in August 21 AM2 testing income - (4,730) (4,730)
11
relating to September 21. Commercial courses income - (20,560) (20,560)
Surplus per final accounts - 72,372 72,372
----- End of picture text -----

Section 3: Unadjusted misstatements

Schedule of unadjusted misstatements above audit triviality of £2,000.

----- Start of picture text -----
SOFA Balance Sheet
Description Nominal Dr Cr Dr Cr
£ £ £
1 To defer income relating to work Commercial courses 11,314 - - -
completed in September 2021, invoiced Income in advance - - - 11,314
in August 2021.
2 To accrue for costs relating to work Course costs and accommodation 2,474 - - -
completed in August 2021, invoiced in Accruals - - - 2,474
September 2021.
Total 13,788 - - 13,788
Reduction on surplus (13,788)
----- End of picture text -----

Section 4: Going Concern

Trustees’ assessment

After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the charity has sufficient resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Work performed by HWB

Review latest budgets to ascertain whether going concern has been correctly addressed.
Enquire into whether there have been any material new commitments, borrowings or guarantees post year end.
Enquire into whether there have been disposals or acquisition of material assets or any appropriation or destruction of assets.
Consideration of any financial uncertainties regarding the charity’s financial sustainability as a result of Covid-19.

Conclusion

The charity has made a surplus of £72,372 for the year ended 31 August 2021 and the balance of funds at that date is £209,576 (excluding the Fair Value reserve).

The charity is projecting to make a surplus of £31,553 in the year ending 31 August 2021. Funds at that date are therefore forecast to be £241,129. Based on this, our assessment is that the charity continues to be a going concern and our audit report is not modified in this respect.

Section 5: Assignment Director Contact Details

Michaela Johns (FCCA) Audit Director T: 023 8046 1256 M: 07769 730189

E: michaela.johns@hwb-accountants.com

Address

HWB Chartered Accountants Highland House, Mayflower Close, Chandlers Ford Eastleigh, Hampshire, SO53 4AR

HWB Chartered Accountants HWB Chartered Accountants @HWB_Accountants HWB Accountants

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Contents

Audit findings for Southampton Engineering Training Association Limited for the year ended 31 August 2021

The Trustees

Audit opinion

Adjusted and unadjusted misstatements

Letter of representation

Internal Controls

Improvements in the accounting and internal control systems

Section 1: Management letter points arising from audit work

Section 2: Adjusted misstatements

Audit materiality of £58,500

Section 3: Unadjusted misstatements

Section 4: Going Concern

Trustees’ assessment

Work performed by HWB

Conclusion

Section 5: Assignment Director Contact Details

Address