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2024-08-31-accounts

REGISTERED COMPANY NUMBER: 00971293 (England and Wales) REGISTERED CHARITY NUMBER: 307299

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

FOR

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

Page
Report of the Trustees 1 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 26
Detailed Statement of Financial Activities 27 to 28

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2024. The trustees have adopted the provisions of 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Our aim is to be the first choice for local employers requiring training services for the development of their engineering staff. By offering a combination of workshop training and teaching facilities, matching the requirements of local industry together with excellent customer service we have established a loyal customer base and a high level of repeat orders. Referrals by satisfied customers frequently introduce new customers and, consequently, income is not dependant on a large expenditure on sales and marketing.

SETA is positioned to provide specialist training services to the engineering, building services and construction industry sectors and strives to offer a comprehensive technical training service. New courses are continually introduced and existing courses revised in response to employer requests and market trends.

SETA is committed to delivering high quality, value for money apprenticeships and supporting young people to enter engineering. Vacancies are advertised on behalf of employers and applications are regularly oversubscribed by a factor of 4. Career information, advice and guidance is provided to candidates who have applied for vacancies and continually throughout their training programmes. SETA work closely with Professional Engineering Institutions (PEI's) and local Universities enabling seamless and continual professional development for apprentices who complete and progress through their career pathways.

The legal requirement to maintain safeguarding, safety and wellbeing arrangements for all learners and our staff is paramount and particularly important and is under constant review through rigorous internal self-assessment. We aim to provide a supportive working environment where the contribution of our employees is valued, creativity encouraged, equity, diversity and inclusion is respected and the equality of opportunity is promoted.

Public benefit

The objectives and activities undertaken by the charity are confirmed to be for public benefit and the Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

During the academic year 2023/24: 269 (2022/23: 260) apprentices were in learning and, of these, 30 (2022/23:80) completed. Overall, 26 (2022/23: 44) candidates successfully completed their apprenticeships giving an overall success rate of 52% (2022/23: 55%). Our achievement rates for 2024 were predictably lower than in 2023 due to the impact of the coronavirus pandemic and continuous delays with end point assessment. Achievement rates remain broadly in line with national trends.

Of the 92 (2022/23: 94) new enrolments in the year 55 (2022/23: 35) were aged between 16 and 18, 37 (2022/23: 59) were aged 19+.

STRATEGIC REPORT

Achievement and performance

Fundraising activities

The charity has not participated in any direct or funded fundraising to date. However, donations from employers and suppliers of plant and equipment have been received.

Page 1

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STRATEGIC REPORT Financial review

Principal funding sources

The principal source of funding arises from apprenticeships funded by the Education and Skills Funding Agency (ESFA) representing 49% (2023: 45%) of income. The remaining 51% (2023: 55%) of income arises from commercial course delivery and consultancy

Reserves policy

The current level of unrestricted reserves (excluding the fair value reserve) is valued at £217,251 (2023: £214,692) which represents 7% (2023: 8%) of annual costs; the objective set by the board is for this to be increased to £1,000,000 representing 33% of annual costs.

The Board of Trustees has considered the adequacy of total reserves held by the company and is of the opinion that they are adequate for the furtherance of the charity's objectives.

The reserves policy is to:

Performance

The results for the year and the financial position of the association are shown in the annexed accounts. These show a deficit for the financial year which the Trustees recommend be deducted from the reserve.

In accordance with the requirements of the Charity Commission a revaluation was carried out on the leasehold premises used as an apprentice training centre in 2016. The building was erected in 1969 and has a floor area of 1950 sq m. It is occupied under an 83 year lease which expires 28/03/2054 leaving an unexpired term of 30 years. The estimated fair value of the lease is still included at a valuation of £335,000, less depreciation. The fair value reserve of £84,646 (2023: £87,514) can only be released by disposal of the apprentice training centre.

Overall sales revenues increased by £255,901 (8%) compared with the previous year. This is due to increased commercial sales, more apprentices on programme and the introduction of Skills Bootcamp training programmes.

Safeguarding and mental health support continues to rise year on year. In 2022 we introduced Student Welfare & Development as part of our pastoral services team which enables learners to receive dedicated learning support as we find more and more with complex learning needs.

Our 2024 our 'first year off the job' training programme was revamped. We introduced a SETA Foundation Certificate rather than the traditional PEO award meaning we could ensure the training offered met the skills, knowledge & behaviours (SKBs) of each Apprenticeship Standard.

We ensured that learners whose academic qualifications did not meet the required standard to start their technical qualification in Year 1 were not penalised and introduced a full functional skills programme to allow them to get up to speed. They will start their technical qualification in Year 2 enabling them to achieve without compromise.

Fixed assets

The principal fixed asset is the long lease for the premises at 1st Avenue and the market value was re-assessed in 2016.

Page 2

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STRATEGIC REPORT

Principal risks and uncertainties

In the Autumn Statement 2023, the Department of Education (DFE) announced a new two year £50m apprenticeship growth sector pilot which launched from April 2024.

The pilot aim was to boost funding for eligible providers delivering 13 high-value advanced manufacturing and engineering, green and life sciences apprenticeship standards. The DFE would support providers with £3,000 per apprentice start, to make capital investment that will unlock their ability to grow and deliver training in the standards in scope of the pilot i.e. by purchasing fixed assets such as course specific equipment, tools and machinery. Providers would be able to claim funding once they delivered a minimum of 15 starts per standard (and once each learner had achieved a minimum of 42 days of learning).

In August 2024, the Growth Pilot funding rules were released, and even though SETA delivered two of the relevant apprenticeship standards, they were standards with low enrolments so this precluded us from meeting the rules from the outset. Statistics showed that out of the 45 independent training providers, only 15 would be eligible to meet the funding rules.

Apprenticeship funding bands were set in 2017, inflation has increased by 27.90% (2023: 27.71%) and there has been no inflation related rise in apprenticeship funding to keep up with this increase. The eagerly awaited growth pilot was expected to go some way towards meeting this shortfall, enabling providers to make capital investment. The constant increases in utility and energy bills, materials and consumables puts pressure on the budgets. We continue to work with all suppliers and contractors to secure the best rates possible.

The 2023-24 year has been particularly difficult resulting in a restructure and three redundancies; the Chief Operations Officer (COO), Head of Strategy and Apprenticeship Recruitment consultant. A wage freeze was announced which caused concerns amongst staff resulting in several leavers. While teaching staff had to be replaced, it allowed for changes to be introduced. The negative impact was the need to use recruitment agencies who attract high costs for their services.

The overdraft facility has been retained with the bank as a contingency.

The 'cost of living crisis' saw a huge increase in utility and energy bills and unprecedented increases in costs of materials and consumables. Wage increases to keep up with the cost of living have pushed operational costs to an all-time high all of which has had a negative impact. Procurement is continually under review and we continue to work with all suppliers and our contractors to secure the best possible outcomes.

Procedures and systems have been put in place to ensure that critical IT data is backed-up and stored to facilitate reinstatement including Cyber Essentials Plus certification. These procedures are compliant with the General Data Protection Requirements (GDPR) legislation and the system for recording student details is audited by the Provider Financial Assurance Team operating on behalf of the Education and Skills Funding Agency (ESFA).

Further risks include:

Our eligibility to remain on the Apprenticeship, Training & Assessment Register (ATAR) - subject to the following:

Page 3

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STRATEGIC REPORT

Future plans

SETA has a well-established reputation for delivering high quality, value for money engineering apprenticeships and commercial training courses. The creation of apprenticeship service teams encompassing recruitment, technical, funding, pastoral and end assessment are fundamental to help employers understand the changes to funding rules annually and extract maximum value from their Levy investment. SETA has established a package providing a competitive edge against competitors and will continue to help secure apprenticeship contracts with employers far and wide.

SETA is the largest provider of engineering training services in the South; we must continue to review funding viability on schemes and ensure apprenticeship training is sustainable to deliver whilst ensuring employers see a return on their levy investment. Nearly all new apprenticeships are provided at Level 3 or 4 and attract the highest funding band available; very few apprenticeships are provided at Level 2 which are not sustainable or popular with employers and offer candidates limited progression opportunities. We must continue engagement services with local Schools, FE Colleges and Partners, Award Organisations, Stakeholders and the local community to promote career opportunities within our Sector as this will ensure a sustainable feeder system of potential new apprenticeship applicants. Forging links with Universities and Professional Engineering Institutions will be crucial to facilitate progression pathways and higher retention levels of the skilled employee workforce.

We run a schedule of Taster days, Jobs Fairs and other open events to encourage young people into the Centre to see what encompasses an engineering apprenticeship.

SETA has a commercial facility which provides end point assessment services for electro-technical qualifications and a wide range of electrical, mechanical health & safety and hazardous area training courses. The income earned from these services represents 52% (2023: 50%) of our income and is crucial to funding the apprenticeship training services we provide. We must continue to add to our portfolio to enable this provision to grow to meet any future apprenticeship reforms.

SETA has been delivering apprenticeships at the centre in First Avenue since 1969, and the building is becoming increasingly difficult to maintain and meet the requirements of new, sustainability aspirations. The commercial delivery and assessment is delivered from a smaller building in Second Avenue which can cause operational challenges. The long-term objective is to move to a larger, modern facility to encompass operations in one place.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The governing document is the Memorandum and Articles of Association, dated 28th January 1970. This document was reviewed and updated in 2021 in line with changes to the charity operating procedures.

Page 4

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment to the Council of Trustees

Invitations are extended to the user members of the charity to nominate one person as a member and Director of the charity. The charity, having no share capital, is run by the Council of Trustees and no individual is able to exercise control of the charity.

Organisational structure

Day to day management of the charity is under control of the CEO, Julie Gough, who acts in accordance with the instructions of the Council of Trustees / Board of Directors.

There are thee principal areas of operation:

All activities including support services, finance, personnel, IT, marketing, compliance, health & safety and membership are managed through the key management team. Consultants are retained on annual contracts to provide specialist support in the areas of IT and Personnel Management.

Remuneration for key management personnel is governed by limits set by the Trustees. Performance is assessed by the Trustees.

The charity operates a defined contribution pension scheme open to all staff. The charity contributes 10% of gross salary to the scheme for each staff member employed prior to August 2021, and a minimum of 3% for staff recruited after this date. Staff will contribute a minimum of 5% to reach the 8% Government requirement.

Induction and training of new trustees

Potential trustees are invited to apply to become involved with the charity and learn more about the contribution they can make. A formal application must be made to the Directors for their approval. A formal explanation of responsibilities is provided before an appointment is confirmed.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

00971293 (England and Wales)

Registered Charity number

307299

Registered office

First Avenue Millbrook Southampton Hampshire SO15 0LJ

Page 5

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

Trustees
Ms J E Freemantle Resigned 20 May 2024
G E Mason
T J Millard
C J Savage
Ms A Lancashire
Mr K Brett Appointed 28 May 2024

Company Secretary R W Heighington

Auditors

Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR Key Management: M D Driscoll COO until 30 April 2024 Mrs J D Gough CEO Bankers National Westminster Bank plc 12 High Street Southampton Hampshire SO14 2NX

GOING CONCERN

The association operates on a daily basis using a combination of bank facilities, credit card borrowing and credit from suppliers.

The trustees have a reasonable expectation that the charity has adequate reserves to continue in operation for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the annual financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Southampton Engineering Training Association Limited (The) for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Page 6

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

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

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

In so far as the trustees are aware:

AUDITORS

The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by: 31 Jan 2025

....................................................................

R W Heighington - Secretary

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

Opinion

We have audited the financial statements of Southampton Engineering Training Association Limited (The) (the 'charitable company') for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

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 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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:

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

Our 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 a Report of the Independent Auditors 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 our procedures are capable of detecting irregularities, including fraud is detailed below:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE)

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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michaela Johns FCCA (Senior Statutory Auditor) for and on behalf of Hopper Williams & Bell Limited Statutory Auditor Highland House Mayflower Close Chandler's Ford Eastleigh Hampshire SO53 4AR 31 Jan 2025 Date: .............................................

Page 11

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

2024
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
22,429
Charitable activities
4
Courses and training
3,030,581
Investment income
3
1,333
Total
3,054,343
EXPENDITURE ON
Raising funds
5
648
Charitable activities
6
Courses and training
488,115
Staff costs
2,086,486
Establishment
199,173
Plant material and equipment
55,353
General expenses
222,009
Total
3,051,784
NET INCOME/(EXPENDITURE)
2,559
RECONCILIATION OF FUNDS
Total funds brought forward
302,206
TOTAL FUNDS CARRIED FORWARD
304,765		 2023
Total funds
£
13,181
2,786,636
579
2,800,396
648
439,167
1,966,038
174,981
59,819
194,803
2,835,456
(35,060)
337,266
302,206

The notes form part of these financial statements

Page 12

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

BALANCE SHEET 31 AUGUST 2024

2024 2023
Unrestricted
funds Total funds
Notes £ £
FIXED ASSETS
Tangible assets 12 355,974 360,912
CURRENT ASSETS
Debtors 13 281,415 284,171
Cash at bank and in hand 37,203 40,931
318,618 325,102
CREDITORS
Amounts falling due within one year 14 (362,637) (346,472)
NET CURRENT ASSETS (44,019) (21,370)
TOTAL ASSETS LESS CURRENT
LIABILITIES 311,955 339,542
CREDITORS
Amounts falling due after more than one year
15		 (7,190) (37,336)
NET ASSETS 304,765 302,206
FUNDS 18
Unrestricted funds 304,765 302,206
TOTAL FUNDS 304,765 302,206

The financial statements were approved by the Board of Trustees and authorised for issue on 31 Jan 2025 ............................................. and were signed on its behalf by:

Tim Millard

............................................. T J Millard - Trustee

The notes form part of these financial statements

Page 13

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
Loan repayments in year
Net cash used in financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2024
£
34,560
(648)
33,912
(28,973)
1,333
(27,640)
(10,000)
(10,000)
(3,728)
40,931
37,203		 2023
£
42,552
(648)
41,904
(33,331)
579
(32,752)
(10,000)
(10,000)
(848)
41,779
40,931

The notes form part of these financial statements

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SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2024

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Interest paid
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operations		 2024
£
2,559
33,911
(1,333)
648
2,756
(3,981)
34,560		 2023
£
(35,060)
36,792
(579)
648
(53,411)
94,162
42,552

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23
Cash flow
At
£
£
Net cash
Cash at bank and in hand
40,931
(3,728)
40,931
(3,728)
Debt
Debts falling due within 1 year
(10,056)
(254)
Debts falling due after 1 year
(17,444)
10,254
(27,500)
10,000
Total
13,431
6,272		 31.8.24
£
37,203
37,203
(10,310)
(7,190)
(17,500)
19,703

The notes form part of these financial statements

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SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under 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 resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold premises (1st Avenue - building) Over the remaining period of the 83 year lease
Short leasehold premises (2nd Avenue - land) Over 10 years straight line
Plant and equipment 20% - 33.33% reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The association continues to contribute to three defined contribution schemes. Contributions are charged to the income and expenditure account as they become payable.

Government grants

The following government grants were received in the prior year:

Page 16

continued...

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

1. ACCOUNTING POLICIES - continued

Government grants

Business Interruption Payment (BIP) under the Bounce Back Loan scheme: The BIP is payable in respect of the loan interest for the first 12 months, together with any related fees. The accrual model has been used to recognise the income on a systematic basis over the periods in which the related finance costs are incurred. The company has also benefited from the UK government's provision of security for 100% of the loan.

Leased assets

Amounts paid under operating leases are charged to the income and expenditure account as incurred.

Grants

Grants receivable in respect of fixed assets are treated as deferred income which are credited to the income and expenditure account over the estimated economic lives of the related assets.

2. DONATIONS AND LEGACIES

2024
£
Donations
22,429
3.
INVESTMENT INCOME
2024
£
Deposit account interest
1,333
4.
INCOME FROM CHARITABLE ACTIVITIES
2024
Courses and
training
£
Employer contributions
54,175
Training
132,798
Welding courses
57,780
ESFA funding
1,488,878
Miscellaneous income
12,481
Canteen sales and sundry
993
Commercial courses
959,179
AM2 testing
300,914
Travel recovered
23,383
3,030,581		 2023
£
13,181
2023
£
579
2023
Total
activities
£
40,753
195,047
46,018
1,273,864
1,116
1,686
927,487
292,989
7,676		 2023
£
13,181		 2023
£
13,181
2023
£
579
2,786,636

continued...

Page 17

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

5. RAISING FUNDS

Other trading activities

Other trading activities
2024
£
Interest payable and similar charges
648
6.
CHARITABLE ACTIVITIES COSTS
Support
Direct
costs (see
Costs
note 7)
£
£
Courses and training
488,115
-
Staff costs
2,086,486
-
Establishment
199,173
-
Plant material and equipment
55,353
-
General expenses
208,039
13,970
3,037,166
13,970
7.
SUPPORT COSTS
Governance
Management
costs
£
£
General expenses
3,295
10,675
8.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
2024
£
Auditors' remuneration
6,835
Auditors' remuneration for non audit work
3,840
Depreciation - owned assets
33,911
Other operating leases
92,941		 2023
£
648
Totals
£
488,115
2,086,486
199,173
55,353
222,009		 2023
£
648
3,051,136
Totals
£
13,970
2023
£
6,510
3,940
36,793
94,527

continued...

Page 18

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2024 nor for the year ended 31 August 2023.

10. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2024
£
1,753,850
181,377
140,313
2,075,540		 2023
£
1,641,846
172,641
144,924
1,959,411

The average monthly number of employees during the year was as follows:

2024 2023
Employees 48 47

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000		 2024
1
2
3		 2023
1
2
3

Contributions were made into the Pension Schemes for the higher paid employees of £19,298 (2023: £19,320).

The total key management remuneration including pension and benefits as noted above is £166,279 (2023: £174,393)

During the year, two employees were paid a total of £18,459 (2023: £nil) as a result of redundancy.

continued...

Page 19

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 13,181
Charitable activities
Courses and training 2,786,636
Investment income 579
Total 2,800,396
EXPENDITURE ON
Raising funds 648
Charitable activities
Courses and training 439,167
Staff costs 1,966,038
Establishment 174,981
Plant material and equipment 59,819
General expenses 194,803
Total 2,835,456
NET INCOME/(EXPENDITURE) (35,060)
RECONCILIATION OF FUNDS
Total funds brought forward 337,266
TOTAL FUNDS CARRIED FORWARD 302,206

continued...

Page 20

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

12. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Short Long Plant and
leasehold leasehold machinery Totals
£ £ £ £
COST
At 1 September 2023 74,370 335,000 892,199 1,301,569
Additions - - 28,973 28,973
At 31 August 2024 74,370 335,000 921,172 1,330,542
DEPRECIATION
At 1 September 2023 74,370 62,414 803,873 940,657
Charge for year - 8,916 24,995 33,911
At 31 August 2024 74,370 71,330 828,868 974,568
NET BOOK VALUE
At 31 August 2024 - 263,670 92,304 355,974
At 31 August 2023 - 272,586 88,326 360,912

The long term leasehold premises were re-valued to £335,000 on 9 November 2016 by Hughes Ellard Limited.

If the buildings had not been included at valuation, they would have been included under the historical cost convention as follows:

2024 2023
£ £
Cost 383,307 383,307
Accumulated depreciation (204,179) (197,781)
179,128 185,526

There were no capital commitments outstanding at 31 August 2024 (2023: £nil).

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Prepayments		 2024
£
115,614
165,801
281,415		 2023
£
152,531
131,640
284,171

continued...

Page 21

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 16)
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income
Income in advance		 2024
£
10,310
39,844
154,741
43,192
1,713
84,386
28,451
362,637		 2023
£
10,056
46,347
99,192
41,397
872
102,573
46,035
346,472

The bank overdraft is secured on all the assets of the company.

Deferred income relates to course deposits and fees, which have been invoiced, but not performed by the year end. Deferred income is included in other creditors above.

The amount of this income is as follows:

The amount of this income is as follows:
2024 2023
£ £
Deferred at 31 August 2023 46,035 52,684
Release during the year (46,035) (52,684)
Deferred during the year 28,451 46,035
Deferred at 31 August 2024 28,451 46,035

continued...

Page 22

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 16)
Social security and other taxes
16.
LOANS
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
17.
LEASING AGREEMENTS		 2024
£
7,190
-
7,190
2024
£
10,310
7,190
-		 2023
£
17,444
19,892
37,336
2023
£
10,056
10,331
7,113

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
In more than five years		 2024
£
58,828
202,450
983,600
1,244,878		 2023
£
61,387
221,491
1,023,600
1,306,478

continued...

Page 23

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

18. MOVEMENT IN FUNDS

MOVEMENT IN FUNDS
Net Transfers
movement between
At 1.9.23 in funds funds At 31.8.24
£ £ £ £
Unrestricted funds
General fund 214,692 2,559 2,868 220,119
Fair value reserve 87,514 - (2,868) 84,646
302,206 2,559 - 304,765
TOTAL FUNDS 302,206 2,559 - 304,765

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
3,054,343
3,054,343		 Resources
expended
£
(3,051,784)
(3,051,784)		 Movement
in funds
£
2,559
2,559

Comparatives for movement in funds

Net Transfers
movement between
At 1.9.22 in funds funds At 31.8.23
£ £ £ £
Unrestricted funds
General fund 246,892 (35,060) 2,860 214,692
Fair value reserve 90,374 - (2,860) 87,514
337,266 (35,060) - 302,206
TOTAL FUNDS 337,266 (35,060) - 302,206

continued...

Page 24

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
2,800,396
2,800,396		 Resources
expended
£
(2,835,456)
(2,835,456)		 Movement
in funds
£
(35,060)
(35,060)

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfers
movement between
At 1.9.22 in funds funds At 31.8.24
£ £ £ £
Unrestricted funds
General fund 246,892 (32,501) 5,728 220,119
Fair value reserve 90,374 - (5,728) 84,646
337,266 (32,501) - 304,765
TOTAL FUNDS 337,266 (32,501) - 304,765

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
5,854,739
5,854,739		 Resources
expended
£
(5,887,240)
(5,887,240)		 Movement
in funds
£
(32,501)
(32,501)

Page 25

continued...

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2024

19. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2024 nor for the year ended 31 August 2023.

20. COMPANY STATUS

The Association is limited by guarantee of the members, each of whom is due to contribute a maximum of £10 whilst a member or, within one year of ceasing to be member. The number of members, who are the trustees, in 2024 was 5 (2023: 5).

21. TAXATION

The association has charitable status and exemption from taxation has been granted under the Corporation Taxes Act 2010.

Page 26

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Investment income
Deposit account interest
Charitable activities
Employer contributions
Training
Welding courses
ESFA funding
Miscellaneous income
Canteen sales and sundry
Commercial courses
AM2 testing
Travel recovered
Total incoming resources
EXPENDITURE
Other trading activities
Bank loan interest
Charitable activities
Wages
Social security
Pensions
Other operating leases
Rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Advertising
Sundries
Course cost
Carried forward		 2024
£
22,429
1,333
54,175
132,798
57,780
1,488,878
12,481
993
959,179
300,914
23,383
3,030,581
3,054,343
648
1,750,555
181,377
140,313
92,941
15,228
22,967
42,729
9,895
3,462
4,878
1,677
463,065
2,729,087		 2023
£
13,181
579
40,753
195,047
46,018
1,273,864
1,116
1,686
927,487
292,989
7,676
2,786,636
2,800,396
648
1,637,831
172,641
144,924
94,527
12,151
19,545
41,711
9,534
10,979
660
457
425,604
2,570,564

This page does not form part of the statutory financial statements

Page 27

SOUTHAMPTON ENGINEERING TRAINING ASSOCIATION LIMITED (THE) TRADING AS SETA

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2024

Charitable activities
Brought forward
Validation fees
Private healthcare scheme
Staff training
Cleaning laundry and refuse
Repairs and maintenance
Motor and travel
Catering and canteen
Reference books, subs, film hire and module
manuals
Safety and first aid
Award ceremonies and entertaining
Computer expenses
Subscriptions
HMRC late interest and fines
Recruitment expenses
Legal fees
Bank charges
Irrecoverable VAT
Depreciation of long leasehold premises
Depreciation of plant and machinery
Support costs
Management
Wages
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Total resources expended
Net income/(expenditure)		 2024
£
2,729,087
50
13,606
1,356
26,447
20,302
27,094
15,976
1,227
5,302
618
65,768
40
5,749
33,695
31,760
7,361
17,817
8,916
24,995
3,037,166
3,295
6,835
3,840
10,675
3,051,784
2,559		 2023
£
2,570,564
125
13,890
6,626
12,328
17,746
20,635
16,455
335
4,657
3,688
63,780
-
2,152
11,256
19,329
6,546
13,438
8,917
27,876
2,820,343
4,015
6,510
3,940
10,450
2,835,456
(35,060)

This page does not form part of the statutory financial statements

Page 28

Issuer

Issuer HWB Chartered Accountants Document generated Fri, 31st Jan 2025 9:22:51 GMT Document fingerprint be17863bfcf1f816accb8ac5a540ea3f

Parties involved with this document

Document processed

Party + Fingerprint

Fri, 31st Jan 2025 14:47:02 GMT Fri, 31st Jan 2025 15:12:42 GMT Fri, 31st Jan 2025 15:56:46 GMT Fri, 31st Jan 2025 15:56:46 GMT Fri, 31st Jan 2025 15:56:46 GMT

Richard Heighington - Signer (dedd52f5b949bbdb6b6abdf240a48b09) Tim Millard - Signer (34f030bf0180635d92cc65e5ef7126bd) Michaela Johns - Signer (85e64e18050cd22c0fc54ead04a6e819) Matt Pickett - Copied In (51ef5ac7222126ae4f4a13614aab0189) Julie Gough - Copied In (8cad548f03789d030b18d35c1bf4adc5)

Audit history log

Date

Action

Fri, 31st Jan 2025 9:22:52 GMT Envelope generated by Accounts Department51.145.115.253 Fri, 31st Jan 2025 9:22:52 GMT Document generated with fingerprint b0996a993bdda47613074a79be099a7151.145.115.253 Fri, 31st Jan 2025 9:22:52 GMT Document generated with fingerprint be17863bfcf1f816accb8ac5a540ea3f51.145.115.253 Fri, 31st Jan 2025 9:22:52 GMT Document generated with fingerprint d9a5bfd65d53d681a1ffc80717def33451.145.115.253 Fri, 31st Jan 2025 9:22:52 GMT Document generated with fingerprint 26bb5c76d47e3edda04714e381b75b7951.145.115.253 Fri, 31st Jan 2025 9:22:52 GMT Document generated with fingerprint d2246f34878e5616e6c79e13bead883451.145.115.253 Fri, 31st Jan 2025 9:58:37 GMT Sent the envelope to Richard Heighington (rheighington@seta-training.co.uk) for signing51.145.115.253 Fri, 31st Jan 2025 9:58:37 GMT Document emailed to rheighington@seta-training.co.uk18.171.214.243 Fri, 31st Jan 2025 14:33:11 GMT Richard Heighington opened the document email.34.250.240.117 Fri, 31st Jan 2025 14:33:11 GMT Richard Heighington opened the document email.172.224.224.30 Fri, 31st Jan 2025 14:36:10 GMT Richard Heighington viewed the envelope86.166.160.71 Fri, 31st Jan 2025 14:47:02 GMT Richard Heighington signed the envelope86.166.160.71 Fri, 31st Jan 2025 14:47:03 GMT Sent the envelope to Tim Millard (tjmberene@gmail.com) for signing86.166.160.71

Fri, 31st Jan 2025 14:47:03 GMT Fri, 31st Jan 2025 14:47:03 GMT Fri, 31st Jan 2025 14:51:39 GMT Fri, 31st Jan 2025 15:01:15 GMT Fri, 31st Jan 2025 15:01:15 GMT Fri, 31st Jan 2025 15:01:39 GMT Fri, 31st Jan 2025 15:12:42 GMT Fri, 31st Jan 2025 15:12:42 GMT

Fri, 31st Jan 2025 15:12:42 GMT Fri, 31st Jan 2025 15:12:42 GMT Fri, 31st Jan 2025 15:55:38 GMT Fri, 31st Jan 2025 15:55:56 GMT Fri, 31st Jan 2025 15:56:46 GMT Fri, 31st Jan 2025 15:56:46 GMT

Fri, 31st Jan 2025 15:56:46 GMT

Fri, 31st Jan 2025 15:56:46 GMT Fri, 31st Jan 2025 15:56:47 GMT Fri, 31st Jan 2025 15:56:47 GMT Fri, 31st Jan 2025 15:56:47 GMT

Document emailed to tjmberene@gmail.com18.132.200.197 Richard Heighington viewed the envelope86.166.160.71 Richard Heighington viewed the envelope86.166.160.71 Tim Millard opened the document email.86.139.253.29 Tim Millard opened the document email.86.139.253.29 Tim Millard viewed the envelope86.139.253.29 Tim Millard signed the envelope86.139.253.29 Sent the envelope to Michaela Johns (michaela.johns@hwb-accountants.com) for signing86.139.253.29 Tim Millard viewed the envelope86.139.253.29 Document emailed to michaela.johns@hwb-accountants.com13.40.42.191 Michaela Johns viewed the envelope51.145.115.253 Michaela Johns viewed the envelope40.94.105.81 Michaela Johns signed the envelope51.145.115.253 Sent the envelope to Matt Pickett (matt.pickett@hwb-accountants.com) for signing51.145.115.253 Sent the envelope to Julie Gough (jgough@seta-training.co.uk) for signing51.145.115.253 This envelope has been signed by all parties51.145.115.253 Michaela Johns viewed the envelope51.145.115.253 Document emailed to matt.pickett@hwb-accountants.com3.8.234.100 Document emailed to jgough@seta-training.co.uk18.175.227.239