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2024-07-31-accounts

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Registered number: 00992831 Charity number: 502259

Tyne North Training Limited

(A company limited by guarantee) Annual report Year ended 31 July 2024

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Contents

Page
Reference and administrative details 1 - 2
Trustees' report 3 - 8
Independent auditors' report to the members of Tyne North Training Limited 9 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 27

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Reference and administrative details Year ended 31 July 2024

Trustees

T I Selkirk, Chairman / acting Chief Executive Officer

C Pratt, Vice Chairman S Armstrong

G Longstaff (appointed 8 October 2024)

Key management personnel

Michael Needham, Chief Executive Officer (resigned 30 September 2024) Geoff Moore, Quality Manager

Company registered number

00992831

Charity registered number

502259

Registered office

Embleton Avenue Wallsend Newcastle upon Tyne Tyne and Wear NE28 9NJ

Company secretary

Michael Needham (resigned 30 September 2024) David Collins (appointed 3 February 2025)

Independent auditor

UNW LLP Chartered Accountants Citygate St James' Boulevard Newcastle upon Tyne NE1 4JE

Bankers

Barclays Bank Plc 49/51 Northumberland Street Newcastle upon Tyne Tyne and Wear NE1 7AF

Page 1

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Reference and administrative details (continued) Year ended 31 July 2024

Solicitors

Hay & Kilner Helix, The Lumen St James' Boulevard Newcastle upon Tyne NE4 5BZ

Investment managers

Brewin Dolphin Time Central Gallowgate Newcastle upon Tyne NE1 4SR

Rathbone Investment Management Limited Earl Grey House 75-85 Grey Street Newcastle upon Tyne NE1 6EF

Page 2

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Trustees' report Year ended 31 July 2024

The trustees, who act as directors for the purposes of company law, are pleased to present their annual report together with the financial statements for the year ended 31 July 2024.

The annual report serves the purposes of both a trustees' report and a directors' report under company law. The trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the charity qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

OBJECTIVES AND ACTIVITIES

The charity’s objectives are specific towards the advancement of learning and education for the public benefit of persons employed or intending to be employed in industry and commerce.

Core Business Objectives

Our overall aim is to deliver a high-quality service to an increasing number of apprentices and employers within the region by increasing the skills, knowledge and understanding of those involved in engineering and businessrelated activities.

Contracts with the Education and Skills Funding Agency (ESFA) and employers provide the funding to deliver accredited advanced apprenticeship standards benefiting young people, the majority whom begin their apprenticeships between the ages of 16-18 years old. The total number of apprentices on-programme during 2023 – 2024 was 344 (2022 – 2023: 396).

The policy of the trustees is to utilise the charity reserves in supporting business growth and manage risk with any additional surpluses used to enhance the skills and learning of existing apprentices, support employer engagement; design and implement business model changes in response to ESFA funding rule changes and be available as contingency funding in the event of apprentices being made redundant and/or the loss of government funded contracts.

The charity's main activities are to:

Funding levels along with the operation and main activities are reviewed on an annual basis by the trustees. Grant making is not a material part of the charity’s activities.

Page 3

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Trustees' report (continued) Year ended 31 July 2024

Public Benefit

The charitable company offers a wide range of advanced apprenticeships and functional skills to relevant apprentices within the local engineering manufacturing and business sectors. We are very committed to delivering a high standard of quality that will ensure all users of our service are completely satisfied and have the opportunity to make appropriate comments.

We assist companies to understand and comply with current apprenticeship standards, the contractual arrangements and the apprenticeship levy system. We also support young people in making appropriate apprenticeship decisions, many from disadvantaged backgrounds, guiding them with information and advice to achieve their full potential successfully, progressing them through a level 3 apprenticeship and also providing encouragement and further support onto higher education courses. Should any apprentice be facing the prospect of a possible redundancy, we will continue to offer support and ensure the smooth transition from one employer to another.

ACHIEVEMENTS AND PERFORMANCE

Achievements

Achievements of the charity are assessed internally and externally, both qualitatively and quantifiably through:

Internal assessment

This is performed through a review against company operating policies and procedures within our Quality Assurance (QA) system that is continually updated along with yearly performance management against business objectives.

External assessments :

These are performed by Ofsted who assess our apprenticeship delivery against the (EIF) Education Inspection Framework where we continually maintain our Ofsted ‘Good’ inspection status, demonstrating high standards and service delivery. Overall Leadership and Management were highlighted as strengths. We are preparing for the possibility of another inspection during 2025.

Financial Assurance Teams from the ESFA audit our performance against the contractual funding requirements and performance management against contractual obligations and national quality measures. We achieved our core apprenticeship completion objective by matching the low target set for unsuccessful apprenticeship completions specific to both engineering and business administration. The overall qualification achievement rate (QAR) for apprenticeships was 76.8% (2023: 70.3%). This is an improvement on the previous year’s results for those apprentices, whose progression was impacted and delayed with COVID, successfully completing their apprenticeships. This continued into the early part of 2023/24 but all delayed apprenticeships had been completed by the end of July 2024. We did not achieve our core objective for apprenticeship recruitment targets which was mainly due to a fall in the number of suitable candidates applying for an apprenticeship combined with lower-than-expected employer demand for new apprentices.

Strategic Objectives

Our first strategic objective were to recruit and train human resources to meet our functional and business requirements, this being achieved by supporting our Training Officers. Our second objective was to minimise external risks and to ensure high levels of compliance through enhanced process standardisation. To achieve this, we introduced an operational audit process to ensure compliance with the ESFA funding rules.

The ESFA subcontractor rules prohibits any more than 25% of a main providers apprenticeship funding being subcontracted. This requires us to secure and maintain its ‘Contractor Cap Exemption’ status which was approved for the current year, with an application made and successfully granted for the 2024/25 year. Exemption for 2025/26 will be applied for at the appropriate time.

Staff Matters

Stable staff levels have promoted a good work ethic to complete all the required procedures by keeping sufficient and appropriate records allowing the company to maintain its high standards. Subsequent to the year end, the

Page 4

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Trustees' report (continued) Year ended 31 July 2024

former Chief Executive Officer (CEO) left the charity with effect from 30 September 2024. The chair of the board has temporarily taken on the role of the CEO while a long term solution is found.

External Factors Impacting Achievement

The main external factors effecting the achievement of business objectives during 2023 - 2024 were:

FINANCIAL REVIEW

Investment Policy

In a constant changing world. the investment policy of the trustees remains one of caution. With continuing cost rises, close monitoring is required to ensure it achieves the best return. Our initial deposit with two investment managers has result in a small profit. During the year, the funds were withdrawn from one investment manager bringing the total investments at year end to £357,580 (2023: £635,363).

Financial Performance

Income has remained largely consistent at £1,697,236 (2023: £1,697,366), the key movements being a reduction in learners that has resulted in less funding from the ESFA, offset by an increase in funding per apprentice and Investment income increasing due to favourable market conditions. The charitable activities expenditure has decreased significantly to £1,698,372 (2023: £2,064,983) due to 2023 including a significant accrual for the former CEO's settlement agreement. The year end result was a deficit of £18,841 (2023: deficit of £374,196) on unrestricted funds, including a gain on investments. Given some of the challenging circumstances during the period described above the trustees are satisfied with the year end position.

Reserves Policy

The level of unrestricted reserves at 31 July 2024 was £1,058,063. These are held for important reasons:

  1. Fund necessary activities to minimise risk to the charities ability to operate as a going concern.

  2. Enable the charity to discharge all its commitments to existing apprentices and companies should government funding diminish or cease;

  3. Fund business development and growth to remain competitive and to offer the charities services to a wider business community; and

  4. Support apprentices made redundant to continue and complete their apprenticeships with alternative Employers.

A designated capital fund of £340,796 was held at 31 July 2024 which is equal to the net book value of the property. The free reserves held at 31 July 2024 were £717,267.

Principle Funding Sources

Principle funding sources and associated activities during 2023-24

Page 5

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Trustees' report (continued) Year ended 31 July 2024

Going Concern

Whilst the charity has gone through a period of change at management level, the board have prepared and reviewed forecasts for the coming periods based upon expected apprenticeship take up rates and known funding sources. With robust systems in place to ensure ongoing high quality delivery of work and taking into account the significant reserves held, the trustees are satisfied that the going concern basis of preparation remains appropriate for these financial statements.

PLANS FOR FUTURE PERIODS

The company will continue to effectively manage external changes and challenging targets contained within the core objectives agreed each year, to effectively capitalise on future growth opportunities and enhance quality delivery.

The charity will continue to focus on achieving its core objectives to:

The achievement of our strategic objectives will seek to safeguard effective, high quality subcontracted delivery along with our currently embedded proactive account management system across all business functions.

The Trustees are currently reviewing the management structure to ensure that the charity has the right leadership to continue to deliver its charitable objective whilst ensuring it can continue for the long term future.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The charity is a company limited by guarantee and governed by a Memorandum and Articles of Association.

Organisational Structure and Trustee Induction Process

Prospective trustees may be either:

Once they are nominated they are invited to attend an ‘Executive Committee’ meeting in an ex-officio capacity to familiarise themselves with the workings of the charity. The induction includes a meeting with a member of the key management personnel during which any queries relating to the governance, structure or management of the charity and its aims and objectives would be addressed.

On election to the board, they are provided with a copy of:

Page 6

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Trustees' report (continued) Year ended 31 July 2024

The trustees make and agree strategic objectives and policy decisions on behalf of the business. Implementing the strategic and operational objectives along with the day to day running of the company is delegated to the key management personnel.

Financial expenditure is authorised by two signatories required, including the chairman.

The number of trustees must not be less than three. No external body or person is entitled to appoint a trustee to the board.

Organisation structure

The trustees provide delegated authority to the Chief Executive Officer (CEO), who in turn leads the employees to successfully operate the business and set the strategic direction. From 30 September 2024, the chair of the board has acted as CEO on a temporary basis while the board seek to appoint a longer term solution into the new role.

Pay policy for senior staff

All trustees give their time freely throughout the year without receiving any form of financial remuneration. Staff salaries are reviewed annually by the board.

Risk Management

Several major risks to which the charity may be exposed to has been identified:

To mitigate risks and to ensure the quality and financial performance of the organisation does not give cause for concern should the loss or withdrawal of these ESFA contracts; RoATP and/or approval centre status occur, there are in place a number of policies, systems and procedures:

Additional to the above there are always competitive risks and pressures from other training providers as government funding, apprentice funding rate and the apprenticeship policy is continuously redefined within a financially and operationally competitive environment.

Page 7

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Trustees' report (continued) Year ended 31 July 2024

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also directors of Tyne North Training Limited for the purpose of company law) are responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 the year. In preparing these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

Approved by order of the members of the board of trustees on 14 April 2025 and signed on their behalf by:

T I Selkirk

Chairman

Page 8

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Independent auditor's report to the Members of Tyne North Training Limited

Opinion

We have audited the financial statements of Tyne North Training Limited (the 'charitable company') for the year ended 31 July 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ('ISAs (UK)') and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 9

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Independent auditor's report to the Members of Tyne North Training Limited (continued)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our 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 Trustees' report.

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

Page 10

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Independent auditor's report to the Members of Tyne North Training Limited (continued)

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the directors and other management (as required by Auditing Standards) and from inspection of the charity's legal correspondence and we discussed with the directors and other management the policies and procedures in place regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.

Firstly, the charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection, safeguarding, environmental law and certain aspects of company legislation, recognising the nature of the charity's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance material to the financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Independent auditor's report to the Members of Tyne North Training Limited (continued)

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 auditor's report.

Use of our report

This report is made solely to the charitable company's trustees, 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 trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Anne Hallowell BSc DChA FCA (Senior Statutory Auditor) for and on behalf of UNW LLP, Statutory Auditor Chartered Accountants Newcastle upon Tyne

14 April 2025

Page 12

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) Year ended 31 July 2024

Note
Income from:
Charitable activities
2
Investments
3
Total income
Expenditure on:
Investment management costs
Charitable activities
4
Total expenditure
Net expenditure before net gains/(losses) on
investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
Unrestricted
funds
2024
£
1,685,359
11,877
1,697,236
4,408
1,738,601
1,743,009
(45,773)
26,932
(18,841)
1,076,904
(18,841)
1,058,063
Total
funds
2024
£
1,685,359
11,877
1,697,236
4,408
1,738,601
1,743,009
(45,773)
26,932
(18,841)
1,076,904
(18,841)
1,058,063
Total
funds
2023
£
1,681,311
16,055
1,697,366
6,185
2,058,798
2,064,983
(367,617)
(6,579)
(374,196)
1,451,100
(374,196)
1,076,904

The statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 16 to 27 form part of these financial statements.

Page 13

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Balance sheet At 31 July 2024

2024 2024 2023
Note £ £
Fixed assets
Tangible assets 7 340,796 348,796
Investments 8 357,580 635,363
698,376 984,159
Current assets
Debtors 9 135,780 194,677
Cash at bank and in hand 514,602 727,810
650,382 922,487
Creditors: amounts falling due within one
year 10 (290,695) (829,742)
Net current assets 359,687 92,745
Total assets less current liabilities 1,058,063 1,076,904
Total net assets 1,058,063 1,076,904
Charity funds
Unrestricted funds 11 1,058,063 1,076,904
Total funds 1,058,063 1,076,904

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the trustees on 14 April 2025 and signed on their behalf by:

................................................ OC9286F6BAAD4CSY... T I Selkirk Chairman

Company registered number: 00992831

The notes on pages 16 to 27 form part of these financial statements.

Page 14

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Statement of cash flows Year ended 31 July 2024

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Interest and dividends received
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
2024
£
(529,800)
11,877
458,559
(153,844)
316,592
(213,208)
727,810
514,602
2023
£
266,320
16,055
46,172
(51,774)
10,453
276,773
451,037
727,810

The notes on pages 16 to 27 form part of these financial statements

Page 15

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

1. Accounting policies

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

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Tyne North Training Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared under the historical cost convention, are presented in pounds sterling and rounded to the nearest £1.

1.2 Company status

The company is a company limited by guarantee, incorporated and domiciled in United Kingdom and registered in England and Wales. The members of the company are the trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £20 per member of the company.

1.3 Going concern

The trustees have concluded that the material uncertainty that existed in prior year has been sufficiently resolved and there are no current material uncertainties about the charity's ability to continue as a going concern. The charitable company continues to have a strong level of free reserves of £717,267 to support the operations, a strong number of current apprentices in training with more in the pipeline for the 2024/25 academic year and the sub-contracted exemption for the 2024/25 has been granted. The trustees will apply for the 2025/2026 year exemption at the appropriate time and do not believe there are any reasonable grounds for this application to be rejected. Therefore, the trustees believe there is sufficient certainty the charity has the ability to continue as a going concern for at least 12 months from signing these financial statements.

1.4 Income

ESFA income is recognised in accordance with apprenticeship funding guidance based upon the amount of progress made by the students concerned or on a straight line basis over the expected duration of the apprenticeship for each student.

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Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

1. Accounting policies (continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes fees of investment managers relating to investments held for income generation.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

1.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.

1.9 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

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Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

1. Accounting policies (continued)

1.10 Cash at bank and in hand

Cash and cash equivalents includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

1.12 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.13 Contingent liabilities

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or nonoccurrence of uncertain future events not wholly within the group’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

1.14 Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

1.15 Employee benefits

Short-term benefits

Short-term benefits, including other non-monetary benefits, are recognised as an expense in the period in which the service is received.

Defined contribution pension plan

The company operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 18

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

1. Accounting policies (continued)

1.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2. Income from charitable activities

Unrestricted
funds
2024
£
Education and Skills Funding Agency
1,656,006
Employer contributions
29,353
1,685,359
Unrestricted
funds
2023
£
Education and Skills Funding Agency
1,652,249
Employer contributions
29,062
1,681,311
Total
funds
2024
£
1,656,006
29,353
1,685,359
Total
funds
2023
£
1,652,249
29,062
1,681,311

Page 19

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

3. Investment income

Unrestricted
funds
2024
£
Income from investments
11,326
Interest receivable
551
11,877
Unrestricted
funds
2023
£
Income from investments
14,622
Interest receivable
1,433
16,055
Total
funds
2024
£
11,326
551
11,877
Total
funds
2023
£
14,622
1,433
16,055

4. Analysis of expenditure by activities

Provision of education and training
Provision of education and training
Activities
undertaken
directly
2024
£
1,434,940
Activities
undertaken
directly
2023
£
1,483,690
Support
costs
2024
£
303,661
Support
costs
2023
£
575,108
Total
funds
2024
£
1,738,601
Total
funds
2023
£
2,058,798

Page 20

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

4. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Premises expenses
Office costs
Motor costs
Bank charges
Subscriptions and professional fees (including auditors' remuneration)
Sundry costs
Depreciation
Equipment costs and repairs
Total
funds
2024
£
47,188
40,848
29,537
47,952
214
94,946
9,343
8,000
25,633
303,661
Total
funds
2023
£
384,814
31,344
36,766
49,714
152
49,088
10,680
9,500
3,050
575,108

5. Auditor's remuneration

The auditor's remuneration amounts to an auditor fee of £13,000 ( 2023 - £11,000 ) , and accounting services of £12,000 (2023 - £10,800).

6. Staff costs

Wages and salaries
Social security costs
Pension costs
2024
£
807,049
98,736
37,970
943,755
2023
£
970,355
116,790
132,321
1,219,466

Page 21

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

6. Staff costs (continued)

The average number of persons employed by the company during the year was as follows:

Provision of education and training
Management
2024
No.
12
1
13
2023
No.
13
1
14

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

2024 2023
No. No.
In the band £360,001 - £370,000 1 -
In the band £420,001 - £430,000 - 1

No expenses were reimbursed to any trustees during the year (2023: £nil). No trustees received any remuneration.

The key management personnel of the charity comprise the senior management team (as listed on page 1), with total employee benefits (including pension costs) of £442,535 (2023: £607,979).

The total payments to key management personnel in prior year include amounts due under a settlement agreement.

Page 22

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

7. Tangible fixed assets

Cost
At 1 August 2023
At 31 July 2024
Depreciation
At 1 August 2023
Charge for the year
At 31 July 2024
Net book value
At 31 July 2024
At 31 July 2023
8.
Fixed asset investments
Cost or valuation
At 1 August 2023
Additions
Disposals
Revaluations
At 31 July 2024
Net book value
At 31 July 2024
At 31 July 2023
Freehold
property
£
400,000
400,000
51,204
8,000
59,204
340,796
348,796
Office
equipment
£
184,816
184,816
184,816
-
184,816
-
-
Total
£
584,816
584,816
236,020
8,000
244,020
340,796
348,796
Listed
investments
£
635,363
153,844
(461,506)
29,879
357,580
357,580
635,363

Page 23

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

9. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
2024
£
120,557
500
14,723
135,780
2023
£
148,528
5,000
41,149
194,677

10. Creditors: amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
2024
£
124,361
73,058
8,000
85,276
290,695
2023
£
344,902
35,549
6,500
442,791
829,742

Page 24

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

11. Statement of funds

Statement of funds - current year

Balance at 1
August 2023
£
Income
£
Unrestricted funds
Designated funds
Property Fund
348,796
-
General funds
General Funds
728,108
1,697,236
Total Unrestricted funds
1,076,904
1,697,236
The designated property fund has a balance equal to the net
enables the non-liquid reserves to be easily identifiable.
Statement of funds - prior year
Balance at
1 August
2022
£
Income
£
Unrestricted funds
Designated funds
Property Fund
356,796
-
General funds
General Funds
1,094,304
1,697,366
Total Unrestricted funds
1,451,100
1,697,366
Expenditure
£
(8,000)
(1,735,009)
(1,743,009)
book value of
Expenditure
£
(8,000)
(2,056,983)
(2,064,983)
Gains/
(Losses)
£
Balance at
31 July 2024
£
-
340,796
26,932
717,267
26,932
1,058,063
the freehold property which
Gains/
(Losses)
£
Balance at
31 July 2023
£
-
348,796
(6,579)
728,108
(6,579)
1,076,904
Gains/
(Losses)
£
Balance at
31 July 2024
£
-
340,796
26,932
717,267
26,932
1,058,063
the freehold property which
Gains/
(Losses)
£
Balance at
31 July 2023
£
-
348,796
(6,579)
728,108
(6,579)
1,076,904
Unrestricted funds
Designated funds
Property Fund
General funds
General Funds
Total Unrestricted funds
728,108
1,076,904

The designated property fund has a balance equal to the net book value of the freehold property which enables the non-liquid reserves to be easily identifiable.

Page 25

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

12. Reconciliation of net movement in funds to net cash flow from operating activities

Net expenditure for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Dividends, interests and rents from investments
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities
13.
Analysis of cash and cash equivalents
Cash in hand
2024
£
(18,841)
8,000
(26,932)
(11,877)
58,897
(539,047)
(529,800)
2024
£
514,602
2023
£
(374,196)
9,500
6,579
(16,055)
(3,771)
644,263
266,320
2023
£
727,810

14. Analysis of changes in net debt

At 1 August At 31 July
2023 Cash flows 2024
£ £ £
Cash at bank and in hand 727,810 (213,208) 514,602

15. Contingent liabilities

Subsequent to the year end, a legal claim has been brought against the charity which in part relates to periods up to and including the year ended 31 July 2024. The board are seeking appropriate legal advice and at this current time, the amount of the liability, if any, and subsequent timing of settlement, is extremely uncertain therefore no amount can be reliably estimated.

16. Pension commitments

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charitable company which amounted to £37,970 (2023: £132,321).

Page 26

Docusign Envelope ID: AB511B72-2207-4FAC-8595-8BA1F429DF53

Tyne North Training Limited

(A company limited by guarantee)

Notes to the financial statements Year ended 31 July 2024

16. Pension commitments (continued)

There are also amounts owing at the year end of £66,161 (2023: £68,122) within creditors which include the outstanding pension contribution in relation to the settlement agreement.

17. Operating lease commitments

At 31 July 2024 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2024 2023
£ £
Not later than 1 year 28,116 27,763

18. Related party transactions

There have been no related party transactions in the reporting period.

Page 27

Certificate Of Completion Envelope Id: AB511B72-2207-4FAC-8595-8BA1F429DF53 Status: Completed Subject: Complete with Docusign: TNT final accounts (no draft watermark) 140425.pdf Source Envelope: Document Pages: 29 Signatures: 3 Envelope Originator: Certificate Pages: 5 Initials: 0 Joe Walsh AutoNav: Enabled joewalsh@unw.co.uk EnvelopeId Stamping: Enabled IP Address: 86.25.200.16 Time Zone: (UTC) Dublin, Edinburgh, Lisbon, London Record Tracking Status: Original Holder: Joe Walsh Location: DocuSign April 14, 2025 | 16:01 joewalsh@unw.co.uk Signer Events Signature Timestamp Ian Selkirk Sent: April 14, 2025 | 16:03 ian.selkirk@tynenorthtraining.co.uk Viewed: April 14, 2025 | 16:08 Cc Sulkive Security Level: Email, Account Authentication Signed: April 14, 2025 | 16:09 (None) Signature Adoption: Pre-selected Style Using IP Address: 87.127.249.130 Electronic Record and Signature Disclosure: Accepted: April 14, 2025 | 16:08 ID: 9c393bec-3377-4d50-83a0-91ee47c5d298 Anne Hallowell DocuSigned by: Sent: April 14, 2025 | 16:09 annehallowell@unw.co.uk Viewed: April 15, 2025 | 08:04 Partner Signed: April 15, 2025 | 08:04 Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 92.207.251.92

Electronic Record and Signature Disclosure: Accepted: December 13, 2021 | 08:23 ID: 27660088-235a-40ca-b464-f6f785d8e64d

In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Charlotte Todd Sent: April 15, 2025
charlottetodd@unw.co.uk Viewed: April 15, 2025
Audit and Assurance Secretary
UNW LLP
Security Level: Email, Account Authentication
(None)

Electronic Record and Signature Disclosure:

Not Offered via Docusign

Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted April 14, 2025
Certified Delivered Security Checked April 15, 2025
Signing Complete Security Checked April 15, 2025
Completed Security Checked April 15, 2025
Payment Events Status Timestamps
Electronic Record and Signature Disclosure

Electronic Record and Signature Disclosure created on: December 3, 2019 | 08:44 Parties agreed to: Ian Selkirk, Anne Hallowell

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