REGtSTERED COMPANY NLfiiBER.. 00971293 (England And W*lt•) REGISTERED CHAIUTY NUMBER: 3117299 RIPORT OF THE TBUSTELS AND FINANCIAL STATEhlENTS FOR THE YEAR ENDED 31 AUGUST 2022 FOR soirTHAMFfoN LNGINEERING TRAINING A&SOCIATION LIMITF. TRADIE4G AS SEI'A Hopper WillsaTllS & Beil Limited StatutoryAudiror EEghland House Mayllower Close and1¢￿$ Ford Eastleigh Elarnpshite S053 4AR A&SOCL4TION LIMITED TRADING AS SETA CONTENTS OF THE FINAI¥CL4L STATEMENTS FOR Tllt YEAR EYDED 31 AUGUST 2022 PAge Report Df the Trustees Report of the IDdtpeDdEllt Auditorj 8 10 10 Statement ofFillaDclal Actliitles BalaD¢¢ Sheet 12 Cgsh Fkny Statement 13 Notes t& the CaAh Flow Statem¢Lt 14 Notes to the Financi￿ Ststtments 15 ty 25 SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMrrED TIL4DING AS SETA REPORT OF THE TRUSTEES FOR YEAR ENDED 31 AUGusf 2022 The tr￿ttts wbo ar¢ also directors of the chariryfor thc purposes of the CotnpRniesAct 2006, presellt rheirreport with the finkDCi#18tstern￿ts of thr charityfor the yar endcd 31 August 2022. The knistees havc adopted the provisions of ULlin¥ 2nd Re￿I￿g by Ch￿lÉ1¢s.. Statement of RecomtllEDdcd Practice ftpplicabl¢ to ¢h8ritics preparillg their 8¢coiinls in accordan¢¢ withtheFiuan¢ialReporting Stsndard8pplicabl¢ in the UK and Rcpublic of Ireland (FRS 102) (cffedive l jaM￿arv201￿). Objectives 2nd Xims Our aim È5 to be the first choice for local employers requiringtraiiiingsctyices for the development ¢)f their ¢ngiuecrillg EthtT. By offerillg a combination of w¢Kk5hop trainingattd teachin8factlities, matchingthe rwirejncrtlsof local industry together with ¢X¥xllaJt customer servi¢e w¢ havc cstabli.%hed a low ¢u$tomcr basc attd a high level of repeat ordtts. RcfeErals by satisfied cust￿r￿[S frequelltly illtrodu¢e ncw CLL%tDmers aK4 ¢onsquently, income is Ilot dcpcndant on 18rg¢ cxpertth.ture on Sales alld [D￿ketIng. SETA is positioned to provide specialis( traillingservices w tbe engtnccrillgibuilding sffwces and ¢￿StrUctio￿ indllstry se¢iors and slriv¢s to oftcr a comprehensive ttcknical training service. N¢w w¥rs are conliaually introduced and exisiing cour9¢s reTrised in resp)nse to emplo￿ requests and rtwket treods, SETA is ¢ollJn]itt¢d to d¢liv¢ring high quality, value for money apprttlticcship5 and supporting y()ullg people to ent¢r eogineeritEg. v￿anCIeS are odv¢rtis¢d on behalf of cmployers and applicaiions arc rcgularly oversubscribed by 8 factor of 4_ Career inforu]&tiou,advi¢¢ andguidanceis provided to ¢aDdidat&8who have Èpplied for vacancics and continvlllly througbout tlLEir traiuingprogrammes. sFfA Work closety ProfessiorLal EngincerinEln8timtions IPEI'S) and lttat Universities cnablin8 8t&tole55 alld profes¥iullal developmet)t for 9ppr¢ntiC￿ who cornplete and progre&8 through their ¢#reu pathtvsys. The legal r¢quircmcnt to maintaitt Safcguarding. $afcty and wellbeÈag att8rtgements for all learners our staff is pardIIlDunland parti¢ulailyimF￿ntattd ts undcrconst8ntre¥iew tbroughngoious illtEtlla15elf-asses$ment. Wv aTUL to provid¢ A SUPPDrtive working EnvircAJment V4here the contribution of our emplo)res is Yatued. cr¢attvity encourage equality and divetsity AS rwected aod th¢ equality of opporttiijity is promoted. Public benefit The thjectives and activitie5 undert&keD by the ¢bariLy are Confirm￿ ¢0 be for public bcncfit and the Trusiees have conpliedwitbthc duty ID sectiun 4 of the Chariti¢sAct2011 io bave due regard to publi¢ benEfit guid8nccpubli$hed by thc Cornm1￿10￿. Duringthe acad¢mi¢ ycar 2021122. 250 {2020r21.' 225) &pprentÈccships￿￿￿e in l¢arnln8an￿ of tbese. 73 (2020lll.. 45) nisb¢d. Oveiall 49 (2020121.. 331 candidates su¢ce&sfully ¢onspl¢ted thcirapprentLceship& givillgan 4)verall 5ucw$ rote of 670/01202Q121.. 73Yo). Thes¢ rHte8 arc higher tlwn the rLational averag¢ a¢hi¢vcm¢nt for all levels" all serlor5. Of the 70 (2020r21: 351 new enrol￿entS in year 45 {2020f21.. 18) wcre &gcd E£tween 16 And 18 years of ag4 18 12020121.. 9) werE aged bdwe¢n 19 and 23 years ofage and 7 (2020121: 8) w¢re a8cd o&Er 24 yeArs. STRATEGIC REPORT Athltiemoltt &nd perform1￿Ce Fundraising aetiilties The charity doES Dot particip8t¢ ill any direct or fimded thndraisiri8. HoweTrw. donatlOTIS are rn&de by employ¢rs and supplk¢rs', rnostly pjant ¢quipmenL Financlal review Printip*l fvnding source8 Theprin¢ip&l sourcc of Sjndingatisesfrom #ppreDticcships ffjJnded by tbeEdu¢ation arLd Skill$FuDdiDgAg¢noy (ESFA) representing 474/0 (2021.. 50Yg} nf in¢(¥me. The rnajority of the otb* iti¢thDc 15 nade from conunercial incom¢ from ¢mploy¢r5. Page I ASSOCIATION LIMITED TIL4DING AS SETA REPORT OF ThE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2•22 STiL4TEGIC REPORT Fitiancial revlew Reserves poliey The ¢urreut level of unrestri¢tgJ r¢5¢rvEs (¢￿I￿lIng th¢ fair v&lu¢ reserve) is valucd at £246.892 (202I: £209.576) which repregents IO% (2021: V/0) of awiu81¢o$ts; the objective set by th¢l)wd is for this to b¢ Incre￿It9 £l.(M)O.Tr)o rq7resettting 50% of annual tost& Thc Bo&Td of Tn￿te¢S Iwconsidered thekn4uacyof totsI resen￿* beld by the comparlyattd is of the q)illion that they are adequate fortbe hJrtherance of the clwitys obj'ective& The re8erves poliGy 15 to.. Protsct the charityfrom the risk of iusolveDcyors¢rtous dIsr￿tion to its ¢hati¢able work. Provide sufficien¢ fimds to invest in equipment attd seryiees for thtljenefit ofyoung p¢(yl¢ and 8dults urldcrtaking training. Ptrf•rman¢e The results for year and the fin8ncialprrfition of the asfjoclatioll are shoThYA in the onnexoa The5c sbow a s￿￿luS for tb¢ financial yeAr which th¢ TtUgte49 recommend bg addEd to re5crve. In a¢cotdano with th¢ rwirem¢nts of the Ch￿iryc0m￿is$jo￿ a r¢valuatioll*w caTriedout on the leasehold premis¢g scd a5 an apprenticetra1u￿g¢qLtr¢ ID 2016. Thebuildingwas erec￿1 in 1969 aud has 8 flixr area of1950 tsq ￿. li is cupitd under an 84 )rar lease which expires 2810312054 leavillg all y￿￿pirEd of 33 year5. The ¢Stin￿ted fair Valu¢ of the lease is still includedat tt valuationof £335,OW. less dep￿lation. fait valutt¢&eE¥e oF£90.374 (2021: £93,234) can ontyE¢ released by disp)sal ofthe apprentice training witre. OYeraLI sales T¢Trrllues itt¢reas¢d by £173.599 (P/•) CLXDpared ￿th the prc￿ouS year. This is dlle to iticrelsed ¢¢)mme￿Ial 5alEs. Also. overall fuuding Iw incre&sed from theESFA for the apprentice8￿Ps. S8feguardingh&q contirjued to be atea of rcvicw. The pandemic has caused a stgnificanÉ ill¢r¢ase in m¢ntsl hdth i&qUG8 with 1.4 appr¢ntiCC5 Similar ratio of staff afr￿ted. A dedicated Pa$tor41 Savic¢s Tea￿ has been ¢r¢a¢e Flxed 8skts The principal sssct is the long le￿ fir the pr¢mtses at 1st Avettu¢ and tho Market ￿lue was r¢-as545sed in 2016. Pa8e2 sotrrHAMPTON ENGIYEER]NG TRAtMNG ASSOCL4TION LIFa￿ED TIL4DtNG AS SETA REPORT OF THE TRUSTEES FOR THE YEAR Ef4DED 31 AUGUST 2022 STIL4TEGIC REPORT Prknclpll risks and uncertgintieg I￿ 2017. a major Governmenttefonn of appren(iceships and fil￿dIn￿¢￿sUVd. PrEvio￿% legislation cnabled emplo￿￿ to bc invoiced by providers for'off the job trxinAng'trHdition811ydelivctcd kn Cctttre, duringthe first )rar and this provided & substantial cash tiow FKnefit. Reforms mean fundin8iS ttow cticulated &8airtstnegotiittd paramctcrs., thc duration of ¥prenticeship It￿l¢allY three ￿ar$), ￿ndIdate prior attainmentlcvcly and end ￿eSS￿￿￿t CQ5ts. Consequently, fi)Thds ar¢'drip fed, to SETA monthly, thus rcducing Ga5h flow. Our platt identified At would take three y¢aT8 to re-e5tab]isb income levels but thc Pandemi¢ has thwthed this plan l¢&dillgto a reductionin apprtolii¢ship s18rts during2020121 and pprentices withdrawing. The Apprenticthip Levy is subjert tv and w¢ awiit fiwther anlloullcement pending Governa￿ll( refomi. Wc aLli¢ipat¢ thi8 may cause fjjrtber uncertaintyfor ¢mpl(ryers and trainingprovi(krs. A reduccd value overdraft facilityhas IxeD retain&l with the bank 8$ a c(rt)iingeThcy. As bEgin to rnove forward frorn Cor(xJavirns, new challenges have emcr8ed surrounditigthe Tnv&sion of Ukn2ine by Russia #ttd a potcntiai'cost of ItNillg crisis. vlithill the UL Early indication suggcst5 wc will 5¢e an iticrea3¢ to ¢rt¢r8y and m&t¢rialschor8¢s and this may negatively affect operational costs to all bugin¢ss¢s, in¢ludingSETA" procurement is Continually under reiqew v/c continue to work with all suppli¢rs and our contractors to secure the bcs¢ poysibl¢ outcomes. Provdu￿$ sy51etDS h8vr b¥¢n put in piarx to ensure that ¢iitical IT dfyta 1$ b8¢ked-up aad stored to facib.tat reinstatetnent. Th¢8¢ pr￿￿ureS are ¢ompliJnt wktb the G¢D¢r&l Dat& Protection RequiremeDts{GDPR) Icgislation and tbe 4stem for rewrding studelltdetsils iy audited by the Provider FinanCialA￿llrallte Tcam operating on behalf of the Education and Ski115 Funding Agenq (ESFA)- Furtherrisks include.. o Our¢li8ibiliry ioremlitt oll the Resist¢r ofTrainin8 Provide15 (RoATP)- subject to th¢ followin8= oMan&gemeDt of funds received via ESFA. 0FiDats¢i￿ blabili(y of vrguuis8tioll (fillon¢t41 be41th OSSWDent). oThe abiLityto develop, moiutain and grow the apprenticeship ￿h￿lIe its Itae with Sectcr reqTruremEnts. Ohlaints￿Illg a (01."STLDI Glade 2 (or above) o NlaitstaiDing other a&￿18tCd kite illarks akin to an educAtional astablishmcnL o Satisfactory safcgufirding. safrty and welfare arr8ngCrn￿ts. o C'ompletion of Èn apprentied8hip is ochieved by su¢cwfvl L*se8sment of competcncy by an approved indepeLdellt End Point ASS￿smcllt Organisation(EPAO). Thc pandeEDiC has caused nwjor delays to tbese assc¥sTnents, wirb many being swit¢bed virtual arrangm¢nt. Delays in compl¢tiou of apprentic¢ship¥ negatI￿lY impact fiuaDciai performance llnd succw fwire& both ar2 measured via IIM In5PfCtornle and ¢an ultimately impact ROATP placanenl. o Higher Durnknr of appreDticeship Slar￿ LOULbiDed with growth of conimercial c¢)ur5es put risk to delivery., instructor &vailability & pot¢Ltio1 risk to incojlle. We are also under pressure to eryid existsng facilities furtherto acc(￿￿￿0dat¢ gtow¢h o[prov￿Qll End Kllay tu ¢t￿lder rel￿￿tion OPFrf>rtunitie8 within the City. o Cotnmercial courses repr¢5ent 45°h of thc total income &Dd 8r¢ vit&l to Supporting the ApprenticL8bip prwammcs in licu of 8pprcttti¢tsbip$ ar¢ typi¢illy 3 or 4 years in dut&lioll and in¢ome is 'drip fed, on a monthly b#si$ by the Edllcation and Skills 14unding Agency(ESFA) with 2￿/th being retsineduntil complettoTh. Pagc 3 SOCIATION LIMITED TRADING AS SETA REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 STRATEGIC REPORT Fntsre plans SETA well njay c&st signific8tttdoubt th6 charitable ¢Vinpan￿s ability to continuc as a gotrt8 conc¢m for & periodofat l¢ast ￿E1¥Crno￿th.G from when the Iinan¢thi statemeats atr uuthorised for is511 Our r&¥p0￿5]E1]iIle5 and th¢ rewDsibiEities of the trustCCS Witb respeet to going wnccrn are described irA the relevant sections of this t¢&￿. Other ijrformatio The tr￿￿£S aT¢ respottsiblt for the other infirmatiots.Thr LrtheT informa¢ion¢ornpTise$ th¢itifomMtion ill¢lud￿ irt the Anoual R¢ptrk other thall the finaD¢ial statements and our Rcwt of the tndep¢lldeJktAuditors tbereon. OUE opinitXL on th¢ f￿anCI￿ statell￿ts dcts coTrEr the other infornwtion cArpt to th¢ ¢xtellt ￿￿ErWiSe explicitly Stated in ourrewt, we do not expr¢sg attyforni of a&8uran¢e couclusiots thercorL In connection with our audit of the fuJan¢ial &tstCTnellt4our r¢spott$tbilityis to read the othcr Inforn￿tiOnattd. in doing s￿ ¢0tt5ider wb¢th¢r the othcr information is roaterially illconsistent wilh th¢ fjnallcial statements or our knowledse obtsined in the audit or otherwis¢ 8pp¢ars to be materially ￿ls$￿tea. If w¢ idellttfv sucb n￿terial inconsistencies or apparent rn4teri81 ￿SstateMen￿ we are required to dctcrnjille wðerthis givw rise io a mat¢rialmisstst¢mentin the fmall¢ial statements th¢TDscIvL8. ￿ kned (In the work we bave ptrfonllrf we conclud¢ that there is a matcrial Mi￿tAteM￿t of this other itifotJnati(m, we are required th repM that fact. We h&vc nothing lo rep)rt in this regard Opinions on other matter5 prescribed by tbe Companies Act 2006 our opillion, bascd ot) the work undertaken ill ibe ¢wrse ofthe audit.. the irLformttion given in the Rewt of the TTU3tee5 for the fitsancial ￿ for wh3Gh the financial 8tatcm¢ttts arc prepared is consistent witb the fi￿anCIal State￿ents. and tbe Report of the Trustecs has be￿ prepared in am)rdance wtth Applicable le8&1 ryuiremellts. Pa8c 8 RFPORT OF THE INDEPENDP.p￿ AUDITORS TO THE MEMBERS OF soirrHAMPTON ENGINFERING TRAI1￿c ASSOCIATION IJMITED Mxtters on whlck we are required tt• report by exceptioD thc ItBILt of theknowledge and ulldcrstattdin8of the ehRrirablecoTnpanyaDd its environmentobtained iti tbe eourse of the audit, w'e havc not tdctttified nmterial rnisstatcrncnts in the Rrport of the Trustees. We havenotbin8to rcport itire4XCt of thefollowlugn￿￿eT$Wh¢r¢thecompanI¢$ACt 2006 rcquiresus tD report to you rf. in our opit]ion'. equate accountinc T￿￿rdS have uot E¢¢n k¢pt or returns adequate for (R]r audit have been received from branches Dot visited by us. or the fuLattcial staLemeots are nat in agreemcnt with the accouniitt8 r￿OrdS and rctUrnS' OT certain di5c105UT¢S of tr1I5tees' rcmunttution specified by I&w &Te not madc" or we havc ttot rcccived all tbc infomtion and cxplanatiOEES we requir¢ for our audiL Re￿on￿lbIlltlCs of trn5tees As explained more fvlly in the StsteTncnt of TnLSte¢5' K¢sponsibililies. tILe trwtees (who also the djrtctors of the ¢Fwitable COD]pally for the purFose6 of £￿PanY law) are respon$il)le for the preparatjon of thc financial statements and for b¢iD¥ ¥4ti5fjrd thaithrygtve a tn* and tair view. 8lld fi)r such internalcoDtrol &8 tbc trustees determine 1$ necessary lo ejrable the preparation of fiDatt¢ial Statements that frec from tnattrial misstatetten¢ whether duc to fraud or errLY. In preparing the financial Stat￿llent4 the trustees Are responsible for assessing th¢ charitable CoMpan￿S ability to continuc as a going CthLCCm, dis¢losing, &% applicAble, mattcrs relatcd io going concern alld usiog tb¢ going concern basia of &¢¢outttitts unle$9 the trustecs citber intcnd to liquidat¢ the charitable con]pany ut to ¢¢ase operatltsD$. or have o rc&lL5tLC llltcrnatiyc but todo so. Our Te•ponslbUtties for the audlt of the fin4n¢i•l $tstements OUT UbJ￿tiveS ID obtaill r¢a50nable ￿s￿alle¢ whetber tbe fmancial statettcnls as ts whole are free frojn nuterlalmisstateraenls¥hetherd￿ to fraud ui etror, and to 15wc A R2POrt of thc IndcptndentAuditors that includ¢s our opinion. R¢asDnable a55ui3uGBis a higb levcl af 8ssura]ict, ljut is not & guarAnteethat ao audit conductrd iti ￿cord￿te with ISA5 (UK) will alway5 detect a That￿La1 misstatemetltw￿¢n it exists. Mi&stal¢rnert¢s ¢an arise from fraud Dr ¢ttor and arc considercd matcrial if, indivithAlly or in the aggrcgatc. th¢y could reasonably be eKp¢clBd w influ¢nce the eeonomic deeisions of user8tsken Dn the basis of thesc fJnatt¢i41 stat¢ments. Th¢ ¢xt¢ttt to Bthi¢h our procedures are capablc orde1¢￿Illg irr¢gularities, including fraud is dcrailcd bclow.. - We ob￿1n¢£I understanding of the le8al and regulatory frHmeworks th&t ar¢ appli¢able to tbe company. and tbe industy ill ivbÉcb it operate5. The￿ Tllclude but 8re not itmitrd kn fOTnplEancc witb the Companies Act 2006, UK GeDerally Accepted AecouAtin8 Principles the r¢luMIt tax £(￿PIlan¢t regulations for thc cotDpany. - We obtaio¢d an ut)d¢rs¢andingof fvow the ¢ompany is complying with ih¢s¢ fram¢works thr(￿h discussions with managemettt. - We ¢ttquir¢d Brytb managemeotwhether there were any illsrats￿ of Don￿Ornpl1￿ry￿e with la￿ and regulotioos or wh¢ther they had knowled8e of actual or Sus￿*¢a fraud. These enquirirs are corroborated through follow-up audit procthes in¢ludingiNll llot limit¢d to 8 r¢view of lesal and profe&gion8L costs. correspondence and a review of bcdrd rwnutes. - We assessed the ws¢¢ptibility of the Compon￿$ finanei&l staiement8 to matcri&l rnisststemenL including thr risk of fraud and llwiagemerltoyerride of controls. Th'¢ designed our audkt procedur¢s to respoDd to thi5 ass¢s>m¢Dt, illcluding the identification and *￿tIng of any rclatcd party transa¢tions and the ¢￿ting of journal tran5aCti¢)DS that at18c from mAt)agctn¢nl ¢SliIrt&*s. that Are deiermitted lobe of sisnificaTht valuv or unusyal in thEir nature. We assessed tbe apprvpri&teU￿S of thr ¢olle¢rive competence aud capabilities of th¢ eiigogcmcnt team. iocluding nsideration of the enga8¢melltteani's knowldge and uttderstandingof ib¢ industryin which the companyoper#t¢s i and their PTacii¢al cxperience throug&tT8initLg and p&rti¢ipation with audii ettgdgem¢nts of a sitn11￿ natur¢. A furth¢rdcscriptiOD ofollr restx)nsibi1itiesf￿ the audiT of the finarLciatEtstem¢ntsis located on thc Fina￿¢1￿ Rq)orting Coullcil's wctsitc at www.frc.or&ukJauditOT8respoLsibiliues. This des￿1p(lOrI fon)L8 pan of our Report of the tDdepcndcnt Auditors. Pag¢ 9 REPORT OF THE INDRPE14DEF4T AUDITORS TO THE MEMBERS OF ASSOCIATION LIMrrED Use of report This report is utode 801¢ly to the ¢lntitablc cDmpaAg5 n￿be14 #s A body? io ￿CordanCe Ivith Chapter 3 of Part 16 of tb¢ Comp￿1¢5 Act 2006. Our audit work has Ixen undettakett ￿ tbAt we might State kn the ¢h8rtttible cornpaugs E¢mber3 tbtsge DTratteE$ w¢ ar¢ required to 8late to thefft tty auditors, Teport attd for other purp￿. To the ￿llest exkntpelmittedty law, we do llot ￿ept or assume responsibilityto Anyo0¢ other thau tIL¢ ¢h#titablecompauyand the ¢hariti171¢ ¢¢)Jnpaoys members as & body, for our audit WOTL for this reprf or for the opiuions w¢ have fontttfL Mithela Johns FCCA (SeDi¢Jr StatutoryAtiditor) for and on behalf of Hopper Willi2ms & BellLimited ststutory Auditor Highland House Mkytlower CIOSE Clwidws Ford E4sti¢igb S053 4AR Pag¢lQ SOLTHAIMPTON ENCIYEERlh'G TRAININC ASSI)CIATION LTMITED TRADING AS SETA STAT8MEL¥T OF FTh AL¥CIAL ACTIVITIES FOR YEAR ENDED 31 AUGusf 2022 2022 Unr¢3trictcd rundj 2021 Tolal fiind8 Notes INCOME AND ENIDOIVMEYTS FROM DoJJ2tRons and le&￿1¢¥ 611 74 Charitable a¢tivitteJ Cgurse5 and Iraitjing 2,530,73S 2,357.136 Envestm¢Trt income 31 TolaI 2,531,377 2,357,2E4 EXPLNDJTURE ON RaE8ing filnds 648 165 ChAritable 9ttivitles Cow$es And trajning costs Establishment Plattt matcrial equipmeDt General ¢xp 441,797 1,651,152 163,426 74,642 165,2S6 460.735 1.454,179 152.678 85.687 131,398 Totsl 2.496.921 2,284,B42 NET INCOME 3{456 72.372 BECONCILIATION OF Tr'UNDS Totsl funds bro￿g￿t forward 302OID 230.438 TOTAL FiTF4DS CARRIED FORWARD 337,266 302.810 The notes fornk part of tbes¢ finart¢iaI stat¢m¢nts Pa8e 11 soirrHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED TRADING ￿ SETA BALANCE SHEET 31 AUGUST 2022 2022 2(ni funds Tothl fithds Nrtss FL￿D ASSETS Tangible 8SSrts 12 364J74 370.432 Debtors Cash atE4nk and in band 13 230,759 41,779 198.973 30.567 272J38 229,540 CREDITORS Arnounts falling due within One year 14 127l,955) (259.084) NET CURRENT ASSETS (29.544) TOTAL A&SETS LFSS CURRENr LIABtLTrtES 364,957 340.888 CREDrroRS Amounts fallin8 due llfter D]ore than one )Ear Is (27.691) (38.078) NET ASSETS 337,266 302.810 18 Unrestri¢ted fityds 337.266 302.810 TOTAL FUTrI￿s 337266 302,810 Th ¢ial st4t¢m¢nts were opproNrd by the Board of Trus*es and authoris¢d for ijs and were signed on its behalf by. T J NfjLLArd- Trusiee The notes fm port ofthes¢ financial statements Page 12 SOLryItANIPTON ENGP4EERING TRAINING ASSOCIATION LIMITED TRADLYG AS SF.TA CASH FLOW STATEMENT FOR THE YEAR EL¥DED 31 AUGUST 2022 2022 2021 Notes Cajb flom from operating aCti￿tieS Cash gett¢rA¢¢d fr4)Tn opcrations tnter¢5t paid SS844 (648) 41,238 {165) Net ¢ash provided by cyera¢tng ￿tivitI 54.796 41,073 Casb flows from illVEsting activitie5 Pureh8sc of tangible fixed assets Interest receivcd (33,615) 31 (36,826) N¢t ￿8h u5cd ID investing actiwtie (33,584) (36,822) Cash ljows fro￿ fiDancing acti￿ti LIM& rep&yn]¢nts in ycttr (lo.0￿) (2.500) Net ¢asiL used finaDCtng activities (10,000) {2.500) Change In eash and ¢4yh ¢qUiv￿c￿ts in the reporting period Cfish elsh tquiv8ltnts at the beginning of the rcporting period 11,212 1.751 30,567 28,816 Cash and £a5b equiv8l¢nts at tbe eDd of the reportiDg peraod 41,779 30.567 Th¢ llot¢s form part of tbes¢ fin8L¢i81 ￿atern-nts Pagc 13 soirrHAMPTON ENGLNEERING TRAINING ASSOCIATION LIMrrED TBADING AS SETA NOTES TO THE CASH FLOW STATEMENT FOR THE ITAR ENDED 31 AUGUST 2022 RECONCILEATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2022 Net income for the reportlog perlod189 per the Stgtement of Fln*n¢ial ACti￿tI) Adjustm¢nts for: Depre¢iAtion charge L05s disposal offixed assrts Int¢Mt r¢¢¢iv¢d lut¢r¢st paid Illcre&s¢ in debtors lll¢reaSel(deCr￿8e} io ¢[￿lI1)r5 71372 38.006 1,667 pi) 42247 4.735 (4) 165 (7.663) (70.614) 131,780 12A84 Net ush PrnTthled by operadons 55,444 41,238 ANALYSIS OF CHANGES IN.N£T (DKBIYFt￿S At 1.9.21 C18h flow At31.8.22 Ca5b at ballk and in hand 30567 11,212 41,779 30￿67 11,212 41,779 Debt Debts hlling due within l )wr DeEts falling due ofter l ycar {9.422) (3&078) 138T) IllJ87 (9.8119) (27,691> (47JOO) (37.5110) (16,933) 21212 4.279 Th¢ n(*¢s forni p8rt of fittan¢i81 statenients Pasc 14 SOLTHAMPTOPS ENGINEERLNG TRAINING ASSOCL4I10Fi LITrtITED TRADING AS SETA N￿rE$ TO THE FINANCtAL STATEMEf4TS FOR THE YEAIi EIYDED 31 AUGUST 2022 Accouf*TING POLICIES Bosi3 ofprep&rfng the fln*nelal StstsmeDts The fin￿ela1 sÉ&t¢m¢ll¢9 of ¢b¢ ¢bgrit&bl¢ GI)￿pany$ whicb is a public benefit entity wider FRS 102. hav¢ be¢tt prepared ill ac¢ordauce with the Charities SOIiTr (FRS 1021 'A￿0vOtingalld RewrtiT]g by Ch8Tities'. Statement of Rccottllnend¢d Practic¢ applicable to charities preparing their Accouuts in Awordance uryth the Fingncial Reportsng Statsdtrd apPIL￿ble the UK and liepublic of Ireland (FRS 102) (effective l January 2019),. Financial Reportin8 Standard 102 'Thc fin&rÈcial Rwrtittg stsndaid applicable in the UK and Republic or trelatkd, and the Cntnpanies Act 21)06. The f￿anCial statements havc been prqjared undcr the htstoricLI c4)5t onYentioD. as modified by¢h¢ r¢valuation of ¢crtain a&sLts. In¢ome All ill¢c4n¢ 15 Tec()8llis¢d ill the Stst¢m¢ntof FinHll¥ial Activiti¢s ollce the cbarityhas entitle￿LeDttO the fimds, it s Pro￿ble th8t the income will be re¢eivtd a￿d the amoun¢ w b¢ m¢asur¢d r¢li8bly. Exptnditure Ltabilities arc r¢cog￿lS¢d as cxpcnditttre as soon &s there is s legal or constructive obligation C{￿[ttIng the ¢ILArityto that expenditttye, it is proixble that a transfer of eeononlic benefits will bc rquired ill scttleTnent and the ￿￿O￿tt¢ Df the obligation caD k mcasuredreliably. F,X￿diI￿reiS accounted for on an accr￿1$ basis and has classifsed under h¢adirtgs thar 888r¢gatc all cost rclatcd to tbc c&tCEOry. Whcrc casts cannot h¢ directly attributEd (o p&rticular headiogs they have b¢en Allocat￿ to a¢tivities on a basts CLmSiStcnt with thc use of regourc¢s. Tojgible fixed asjels Dweciation is provided at th¢ following annual Tates in omler to write otT ea¢h osset (wer its t￿1￿￿ted u5efvl L¢a5elLold premises (IstAv¢nuc- buildin8) Short leasehold premis¢8 (2nd Av￿U¢- land) Plant and equipment Over the remAlninE period of the 68 year lease ver 111 ye&rs fjtrgight line 20 /.- 33 J30/y reducing balance 'I'xxatioll The oharityi5 exettipl from rorporation tax on it5 charitable activitia5. Fund Seco￿ntIng Unrestricted fi￿￿S catt beused ill &c¢ordan¢ewith the ¢harit&ble obJ￿tIveS at tht dL5cretion of thc IT￿Ste¢ Restrictedfimds caD only be for particularre$tricted purposes within the objects of tbe charity. Restrfftctions 15¢ whell specified bythe dollor or when fimds Are rnised forparticuLar ieBtrictcd purpoBe8. litsrthcr explanation of the natur¢ aKL¢J purpos¢ of¢aLb fiuld is included ill tbe notes to the fjnallcial stateEneDts. Pellsion ¢￿t$ A]Ld other pOst-retire￿cllt bEnefits The &8sociation ¢Onti￿UcS to contributr to tbree defi￿ed ￿)ntrIbutIon 5cheTnes. Coutribut10115 Arc charged to thr incomc aud ¢xpendittlrt accoibit as th¢ybccotll¢ P8ydbl¢. Government grants The fullowing 8ovemm¢nt grants have iEtn T￿￿1Ved during the year. Bustne8s Intern￿lonPayrnentiB1P} ulldertbe Boun¢¢ Back Loall s¢hem¢: The BtP i5 payable sn rr5PCL* of ibB loan intetesthr tbc fiT5t 12 tnonth5,together with ￿yrelated fec8. The accrual tllodel has been used to reco8nts¢ the incoEtte on a systeTnatic kni5 over tlkc penu(L8 ￿ whith Lb2 Teknted f￿anCE costs are inGurr¢d. The c<)mpny h&5 also benefited from th¢ UK Bo¥eTllmellVs provisioTh of security for 100% of tbe loall. Page 15 CL)ntinue&.. souTHA￿lFToN ENGLYEERll¥G TRAINING ASSOCIATtOl¥ LIMITED TRADING AS SETA NOTES TO THE FINANCIAL STATEh(Effft- CDnthwed FOR THE ENDED 31 AUGUST 2(J22 ACCOU,YfiNG POLICIES- ¢o#d4ued GDvertsJnettt grants I￿￿ed asxts Amouttts paid undcrorKrnting le&qes Ore ¢har8ed tothe illcome a￿d cxpenditure ￿OUnt Is iocw¥¢ GraDts fjranls r¢¢eÈvable in ress¢Ct of fixed wets are treated &5 def¢rred in¢orne wbich are cr¢dit¢d to the illcome and ¢Kpeoditur¢ a¢¢thmt over th¢ economic liv￿ of ih¢r¢l*t¢d ass&s. DONATIONS LKGACILS 2022 2021 611 74 VESThENT ￿COmE 2022 2021 tkposit account interest 31 INcoftrlE FROM CHARIT&BLE ACIIVITIES 2022 Courses and trainiti8 2021 Total rtivitics EmplDyer ¢ontributi¢)llS Training weld￿ cc1￿$¢$ ESFA fundin8 Government 8r8nts Misttllanetxts inccmc Canteen qal¢s and sunthy Cornmcrcial courges AM2 testing Travel recover¢d 34J26 149,465 101,055 1.1È1,842 29,953 123,023 121,790 1,183,311 114,707 518 331 579.679 199.925 3.897 2,(179 248 826,584 227,699 7,437 2,530,735 2,357.136 Grants received. Èn¢lud¢d in the above. are as lollows.. 2022 2021 Other 8ov¢rnILent ￿allts Coronavirus Job R¢teDtiott S¢hcrne Gr8Dt 3.319 111.388 114.707 P88¢ L6 continued... SoirrHA￿tPT0N ENGIYF.ERING TrAtNif4G ASSOCIATION LIMITED TRADING AS SETA NOTES TO THE FINANCL4L sTATEi￿Erifs- COntin￿d FOR TUE YEAR Ef4DED JI AL'GUST 2022 iL41SPIG FUNDS Otkner tr8dlng ll¢tsviknes 2022 21Y21 Inter¢stpa￿bIe similar charges 648 165 cH￿rABLE AeTIvTfiFS COSTS Support costs (stt n<*¢ 7) J)irect Totsls Cou15es alld training Staff ￿$t8 Estsbli3hment Plant material and equipment Ltcttcra] cxperL5C5 441,797 1,64&842 163,426 74,642 155.152 441,797 1,651,152 163,426 74,642 16S256 4,310 10,104 2,481.859 14.414 2.496,273 SUPPORT COSTS Governllnre Managemettt Ti)tsls Stsff costs G¢n¢ral expe05e% 4AIO 4,31D 10,11M 10,1114 4.3111 ID,1114 A4,414 NET ITrICOMEI(EXPENDfruRE) Net inmal(Bxprnditure) 18 thted aftcrchargingl(CreditiD￿. 2022 2021 Auditors, remuncratio A￿aItorS, remu1)eratio￿ ftx ttorl audit work Dcpreciatiort- owncd a&8ets Other opernting leèses D¢fi¢it on disp￿] of fixed &$8ets 6,200 3,904 38.IJ06 99.lJ22 1,667 5.900 5,468 42,247 113,022 4.735 Pag¢ 17 CODtinued... soirTHAMPTON ENG￿EERll¥G TRAJNING ASsOc￿TION LIMrrED TL4DING AS SETA NOTES TO THE FINANCIAL sTATE￿El￿s- ¢witin￿ed FOR THE YEAR ENDED 31 AUGUST 2D22 TRUSTEES, RENfUNERATION AIYD BENKFITS Th¢r¢ w¢r¢ oo trustees'remwierntionor otherE¢n¢fits for the>rar ended 31 August 2022 nor for th¢y¢8r ended 31 Augiist 2021, TrL¥te￿, expens There were no trustees, expenses p&id for the year ettded 31 August 2022 nor for the year ¢nded 31 Au8USt 202I. io. STAFF COSTS 2022 21Ql Wages and salaries Social security ¢¢)sts Other pension crffjts lJ4&488 143,122 13@717 1.181,392 120.395 128,429 1,62&327 1.430.216 Th¢ Average tttonthlyntstDber of employBes during the Ye￿ wa9 ag follows.. 2022 43 2021 39 Emploi Thenumb¢r of ¢mploires whose emplo5Ye beuefiLs (excl￿lIng employer peusioD W5ts) ¢xcerJ]Ed £60.000 w&8: 2022 2021 £60,001- £70.0(K) £70,¢XII - £80.000 Corxtributions were maik into the Pe￿510￿ schem￿ fw th¢ higberpaid cmployecs of £18.173 (2021: £13.036). The key fftauag¢m¢nt r¢mun¢ration in¢ludin8 tKDSAOD and beaefits a5 DQt¢d above is £154207 (2021: £138.662). Pagc18 contiAue&.. SO[￿ AMPTON F,NGINEERING TRAIMNC ASSOCIAT10Tr4 LIMITED TIL4DINC. AS SETA NOTES TO THE FINANCIAL STATEMENTS- continued FOR TUE YEAR ENDED 31 AUGUST 2022 11. COMPARATtVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestr￿cted funds INCOME AND ENDOWMENTS FROM Donations leg8¢i¢S 74 ChAritAble &¢tlvltles Cours£s and training 2,357.136 I￿veS￿neTht ittc¢)mc Total 2,357,214 EXPENDrruRE OL ising fijnds 165 Charitable gctivtties Courses training Slaffcosts E8tablishmaLt Plant matrrial attd equiptn¢nt G¢neial ¢xpcnses 460,735 .454,179 152,6711 85,687 131.398 Totsl 2.284.842 T4￿. ￿CoME 72,372 RECONCILIATION OF FUNI)S Total fulld5 brought forward 230.438 I'OI'AL Fuf4DS CARRIED FORWARD 302.810 Pa8e 19 colltsnued... SOUTHAMPTON ENGINEERING TRAINING ASSOCL4TtON LIMITED TRADING AS SETA NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YURENDED 31 AUGUST 2022 12. TANGIBLE FIXED ASSETS Shttt leaseFLold Plant and m&chill¢ry le¥sehold Totsls COST At I septem￿ 2021 AdditiorL5 Di5P05als 74Jl(1 3￿0(￿) 83&253 33,615 (13,000) 1.247,623 33,615 (ts,000) At 31 Augwt 2022 74,370 33SOO 851868 1,268J38 DEPRECIATION At I September 2021 Charge for year ElimitL&t¢d on disposal 74,161 209 738.4SO 2&880 (11.333) 877.191 3&006 (IlJ33) 917 At 31 August 2022 74a70 53A97 77S9 BOOK VALUE At 31 Au8USt 2022 281,503 82,871 364,374 At 31 Au8USt 2021 209 2￿1,420 79,803 370,432 The long tenn lea%ehdd pmniscs were re-valued to £335.000 on 9 Novernbcr 2016byHughe Ir the buildiDgs had illcllld￿ at T￿1￿10￿ they would hive be¢n included under tbc hisrori¢o1 convention as f¢)llows: 2022 383J07 (191,383) 383.307 (184.985) Accumulata depreciatic 191,924 198,322 Ther¢ were no capital Mjnmitments £￿¢5￿￿al￿g at 31 A￿8￿t 2022 (2021: £nil). Pag• 20 inued... SOUTHAMPTON ENG1ts￿lR1NG TL41NING A&S0￿￿TIoN LIMITED TILlD￿c AS SETA NOTES TO THE FINANCIAL STATEMENfS- continuwl FOR THE YEAR ENDED 31 AUGUST 2022 13. DEBTORS: AMOUNTS VALLING DUE wrrHIN ONE YEAR 2022 2021 Trade debtOIg PrcpayiDents I1￿743 12S,016 104,564 94.409 230,759 198,973 14. CREDITORS: AMOLINTS FALLING DUE wrrHIN YEAR 2022 2021 Bank loatts aod Dvcrdrafts (sec oote 16) Trade creditor5 S(Kial se¢urityand oth¢riaxc5 VAT Other creditors Accruals •nd defe(r¢d illcotne Income in adv8tttte 9.809 411,582 36.079 29,117 2,431 101,253 52,684 9.422 67.070 30.089 29.681 93.530 25.29() 271,95S 259,084 The bank ov¢rdraft is s¢ewcd ott all the &ss¢ts r)rtbe wmpany. tkfclled incomc relat¢s to course dep)sitg and ftts. which have be￿ invoice4 but not perfomied by th¢ )tar end. r)efwed ia¢(Yuc is ia¢ludcd in other credito[5 above. Thr amount of this income 15 as lollows.. 2022 2021 Deferred at 31 August 2021 Release during the Jrar Deferrcd during the ye4r 2S290 (25,Z90) 52,684 44.077 (44,0771 25.290 Deferredat 31 August 2022 52,684 25.290 Pa8e21 c¢)ntinu¢d... SOUTHAMPTON ENGINEERING TRAif41NG ASSOCIATION LtMfTED T114DL¥G AS SETA OTES TO THE FINANCL4L STATfMENTS- c4)ntiDwd FOR THE YEAR ENDED 31 AUGUST 2022 Is. CREDITORS: AMouNfs FALLINC DUE AFfER MORE THAN ONE YEAR 2022 2021 B￿kIll&ll$ (se¢no¢¢ l6) 27.691 38.078 16. LOANS An allal)Eis of ihe matiwAtyof l¢)au8 18 giv￿ b¢low: 2022 2021 AmourLts f4lling due wiihiD one ytsr on denwLd'. B#uk l¢)ans 9,809 9.422 ATnouttts faIlin8 betweeD one and ttyo Y¢￿s. Batik loans- 1.2 yea 10,IJ56 9.808 Amounts fallin8 due between two and fiv¢ ￿. Bank l(thn$- 2-5 y¢arB 17.635 28,270 17. LEASING AGREEMENrs Mmimum leas¢ payments thider non-caDccll4ble op¢ratill8 icas¢s fall IbJ¢ as follows.. 2022 2021 Within one year Bctwc£n ottg and five years In rnore th2t) five yEaTS 60049 178,1160 1.063,600 72.201 198,915 1,103,600 1,302,515 ,374.716 18. MOVEMENT lTri FUM)S Net Tr8nsfcrs At 1.9.21 iti fijnds fimds Ai 31.8.22 UDreitricted funds G¢ncrdl fiwd FaiI value rcserve 209,576 93,234 34,456 24A892 9YIJ74 (2.860) 302,810 ¥456 337,266 TOTAL FUNDS 302.811J 34,456 337,266 PaB¢ 22 ¢otttillued... SOLrtHAMPTON ENGINEERING TIL4INING ASSOCIATION L[￿rrED TRaD￿G AS SETA NOTLS TO THE FINANCIAL STATF.KEI NTS- contlnued FOR THE YEAR ENDED 31 AUGUST 2022 18. MOVTME.YI IIY FUNDS- rontinued Net movement IL fjjnds, in¢lud¢d the above ar¢ *s follow&'. tUiQTning Rcsources ¢xp¢ndcd MDvement in fullds Unrutrieted funds Gen¢ral flllld 2￿31,377 (2,496.921) 456 TOTAL FUr￿S 1531 J77 (2,496,921) 34.456 Comparltives for move￿2￿1 in Net movcment in fi￿d5 TraDsfers betwero fvnds Ai 1.9.20 At 31.8.21 L'llrestrieted fund Gea¢ral full Fatr v￿u￿ reserv¢ 134.344 96,094 72,372 2,860 (2,860) 209,576 93,234 230.438 72,372 302,810 TOTAL FUNDS 230,438 72.372 302,810 Comparative n¢tmovem¢ttt in funds, included in the above ur¢ as follows.. TncomitL8 R¢sourc¢s iesources jcnded MovED]eD¢ Unr¢strleted fund$ G¢rLcral hsttd 2.357,214 (2.284.842) 72.372 TOTAL FUNDS 2,357,214 {2,284,842) 72,372 Page 23 LKLtinued... SOUTHAMmN ENGINEERING TRAINING ASSOCIATION UMITED TRIDING ￿s SETA NOTES TO TRE FINANCIAL STATEMENTS- conthiued FOR THE YEAR ENDED 31 AUGUST 2022 I& MOVKMENT IN F15f4DS-contlnued A Curre￿year 12 months aDdprior yew 12 months rAlSition is as folloTr3: Net Tr8Dsf¢rs mc*vem¢llt in funds At 1.9.20 fi￿d5 At 31.8.22 Uorestrlcted fwid$ G￿er&I Fairvttlue re*¢rve l34.344 96.094 106,828 5,720 (5.720) 246.892 90.374 230,438 106,828 337.266 TOTAL FUTr4DS 230,438 106.828 337,266 A CUrr¢nt￿&r l2 months and priorpr 12 Month$c￿￿￿1￿cd D¢t movement l[Lfi￿d8. included iti the abDVC are as follow5= tncominE resouT¢es Mov¢m¢nt expended UDrestrlctrd fwidj Gelleral Ilmd 4.888.591 (4.781,763) 10&828 TOTAL FUNDS 4.888.591 (4.781,763) 106.828 19. REIATED PARTY DISCLOSURES Ib¢rr wer¢ no relatrd party transactions for the cnded 31 All8L￿t 2022 nor for the )raT endcd 31 August 2021. COMPANY STATUS The AsscKi&tion is IittJAted by guaTPllteeof the m¢rnkers. carh of whom is dlle to contribute a ￿￿]MUM0£ £IQ whilst a m¢rllber or, withirLQnE yr3r of to be wember. The number of Tremb￿. who ar¢ the tru5tee4 in 2022 was 4 (2021: 5). Page 24 ntinued... ASSOCtATIOL¥ LIMrrED TRADLYG AS sEfA NOTES TO THE FINANCIAL sTATEl¥tE￿rn- conliuued FOR THE YEAR ENDED 31 AUGUST 2022 21. TAXATIOII The ass4xi•ion has charit8ble3tatus andex¢o¥)tion fromtsxation basbeen 8raotcdunder tbe Cofjjoration T￿¢S Act 2010. PA8e 25