Charity registration number 507714 (England and Wales) Company registration number 01372963 SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD LEGAL AND ADMINISTRATIVE INFORMATION Truslees Mr D Bartell Mr I Scurfiehj Mr A Ramsey Mr K Robson Mr M Hutchins (ApFointod 9 February 2024) (Appointed 21 March 20251 Secrgtary Mr R Lockwc(xJ Cheif exeGulive offiGor Mr R Loc￿￿￿1 Charlty number (England and Wales) 507714 Company number 01372 Reglstèred offlce 17 Se(ling Ro&J Wear IndL¢Stnal Estal Washingtc Tyne & Wear NE38 9BZ Audltor Robson Laidler AcC￿niantS Limiled Femwc(yJ H¢)use Fernwc(%J Road JeSM￿l Newcastle Tyne Tyno We ErKJland NE2 1TJ Bankorn LbydsBank PLC 54 Fawcett Street Sunderland Tine and W SR1 1SF AGcountsnts JC Acctjuntanis Lwnited 19 Ncyfolk Street Sunderland and We SR1 IEA Investment advisors Brewin Dolphin Limited 12 Smithfield Street Lormjon EC1A98D SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD CONTENTS Page TTUStees' rewrt lThlependenl auditofs report StateTrwnl of financial artNitios Balan¢£ sheet 10 ststemenl of cash flow5 11 Notes to the financBI statenEnts 12-22 SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORn FOR THE YEAR ENDED 31 AUGUST 2024 The Irustees pre58nt their annual report ar￿ financial s&alements for the year ended 31 Awusl 2024. The financial statements have t)8en prepared in a(tordance with the aCc￿n￿r￿j pclKies set out in note 1 to ihe financial ststements and comply with Ihe charily's g2vern￿9 d(￿uMent, Ihe Companies Acl 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Repubtic of Ireland" and the Charitiès SORP "Accounting and Reporting by Charits"es." Statement of RecOmn￿n￿ Practice applicable lo Charit￿s prgparing Ihoir accounts in accordance with the Financial Reporbry Stsndard akylicable in the UK aTrJ Republ￿ ol Ire12nd (FRS 1021". Objectives ahd actlvitles The company was established as a Regi*ered Charity with Il* ot4eclive of beneliling the public by providing education and Iraining for persons eng￿ed fft. CY %)lending to be engaged in the eTr3ineering, manufa¢luring. process. and ￿ated induslries. Sundorland ErKJineenng Training As￿laIK)n Ltmited {Setal is a long-estabhshed Group Train￿9 Association. operating from its own Training Centre in Washington. Tyne aThJ Weaf. It has been a majcrf APp￿nI1¢8 Training Organisation in the region for n￿le than 50 years. The main activikn'es ovor the year have been the delivery of a range of Institute for Appfenliceships and Technical Education IlfATE) approved apprenliceship programmes. These have been selecied and delivered in respon￿ lo the requirements of appfenlicg enployors. Apprentsceship Slandards require the delivery of off-the.job training, which is carried out in the Seia Wofkshops in year one of the programrw. This ts followed by furlher development training at employers premise5. The Fxinapal source of fuFKling for this Is thr￿gh Ihe apprenticeship lovy, via the Education and Skims Funding Agency IESFA). with wh￿h Seta is a primary contract holder. Seta assists omFqoyers wilh the Apprenbce recnjrtment process by receiving applications, providing an apti'tude tesling service, screen￿9 for surtable applicants and subsequently by provmjing short lists ot wtential APprenti￿S. In addition to apprenticeship training delNQry. Sela provides a viide range ol short Courses for employers and the public wishing to upskill or Cross-s￿.11 thew slaff. Some of t￿se courses le￿ lo the achievement of nats"onally recognised qualificalions. These ￿lse$ afe ffK)Stty funded by employets. Up lo 31st December 2023 Seta was a partner ￿ the ESF lunded "Norfh East w0￿fOrCe Skills" Pfogramffte in collabofation with Sunderland Univefsily arKJ a number of other iTrJependenl trainirbg provKlers. This project delivers upskilling and eross skilling training to workers currently in omploymenl. From 1s1 April 2024 Sets was a partner in the follow-on UKSPF Ski115 and Inclusion programme, provKling training lo eluilje businesse5 ifb the Sunderland region. Fundraising The chanty d09s not raise any funds from the general pulthc. Publlc benefit The Tftjst￿S have paid due regard to guKlan(x issued by the Charity Cofflmission tii decKI￿g what activities the Charity shouhj undertake in order to further ihe charilable purposes Ihe publi¢ benefil. These 8elivities are surTmansed below. Achlevemenls and performanc• During tho yoar Seta performed well in the delivery ol traning and leamgrs onfft)yed a good level of success whith is consisiently higher than nats'onal averages. Sets has been audited by a number of extemal ovjanlsatK￿, inth%ling its custrThrs. and qualrfication awarding bcK1ies. All have been compleied lo ihe sats'slaction of the organisatK)ns c￿cerned. Seta operatès an IS09001..2015 acerediled quality manwnt syst8m. Sata last had an Ofsted inspedion on 23TrJ to 26YI May 2023. Sets received a 'Good' r8ting in all categories. SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD TRUSTEES. REPORT {INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Financial review Overall, the Association is slM)wing revenue from charilable activities of £2,127,855 compared to revenue of £2.049,657 in the provious financial year. an increase of 3.8%. Net Incon￿ for the year was £196,057 compared to 8 nel income of £186,195 in 2023 an increase of £9.862. The growth slralegy IXIt in Place during prev￿US financial years lo incrèase employer involrfement and apprentice numbers. is continuing lo deliver p)sitive results. with the highest number of appreniice ￿arnets on progr2mm6. Seta's Investments increased in value ovefal the year to £317.289 fr(Yn £281.994. The rnarkel value of r8tain8d 1nv8Stn￿nlS increased by £35.295. Reserves policy The Iruslees aim lo maintain minimLwn ￿ssi)le rv6ery8s in unfestricted fvnds at a level which equates to approximately Ihre8 monlhs of unrestrKted charitable expenditure. The total funds held as al 31 August 2024 an￿nted io £1.603.456 (2023 . £1.407,YJ91 , of whth £51.399 (2023 .' £Nill are reslncted funds and £1.552.057 12023 ", £1.407,3991 are unrestricted funds. Fre8 reserves aftor allowing lor ftjnds tigd up in tangible fixed assets are £853.002 {2023 . £645.928) There a￿ no restricted reserves. Actual 3 month cash payments lotalled £513.000. The Truslees considers that reseNes al this level will ensure that. in the event of a significant drop in rgvonue, they will be able to conhnue Ihe Charily's cuff8nt activitsos whilo consideraknon ￿ given to ways in which addilional lunds may be raised. In addiiion. the Charity is preparing for contsnued growth, where larger or adth"ts-onal training facilitie5 will bo requwed. at s*Jnificant cost to the organisat&￿. This levol of reserves has been maintain￿ throughout the year. Investment powers and policy During Ihe 2&124 financial year Ihe inveslmenl F>Ortfolio was managed by Brewin Dolphin. The portfolio valu@ is noted above. An annual review of this investrnenl portfolio and performance is carried out by Sota trustees. The Trustees have rK)wgr lo invest in suGh assets as they See fit. Seta's invo5tmenl advisors have been instructed to invest to maximise the lotal ￿turn on mveslmenl funds within the conslraints of a medium risk portfolio. An inveslmenl pohcy is in place. Whilsl the investment brief is bro&Jly defined. Seta trustoos are happy Ihat Ihg nalure of investment5 is appropr￿0 from an ethThl slandFM)int Rlsk rnanagèment strategy The Trustees have assessed tho major risks to the Charity is gXPOsed, are salisfied thal syslems are in place to mitigate expJ8ure tD the major risks. Seta trustees regularly review risks ￿rtainti6$, and these we dassified as part of the SWOT I PESTLE analysis which remains part ol Seta business improvement plan. To ensure eafly miligation of risk5 Seta truslees conlinually monilof aThJ review financial status and forward forecasts on a quarterly basis. The principal risks faced by the Trust lio in both the performan(z of inve5tmenls. and the issue of secunng ihe conlinurty of funding from the educalicx) and skills fundi￿ ￿encY (ESFAI frw delivery of Went￿ trainw￿. Other risks whith remain under regular re¥iew a￿ Chry to Ofsted Ed￿l￿)n Inspèction FraMeW￿rk IEIF): Changes lo DIEIESFA funding levels., Corrrf)ets.ts'￿ frcffl local cole9es and technical trJning FXQVKJers; political influences. SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Plans for future periods The level of trading surplus is an indication that rrAn•￿￿nI strategies 8re paying off. It is 8xpeded that the new financial year124i25) will show further growth. Appren￿￿ re￿￿trnent numbers for September '24 were oncE again gwd with. the Ofganisalion's h¥Jhesl ever intake. increasing the tolal numbw of leamers on programme to over 39), and IhprofoTe 9eneraw increas￿￿ revenue. Commercial training sales have improved, in part, thanks to the ESF funded "Northgasl Workforce Skills" programme and the follow-on govemmont fuThJ￿ UKSPF Programn￿. This allows Seta and othef partners lo delivèr up-skilling and cross-skilliTrJ cc￿rseS to elwjible companies at no cost lo them. The Workforce Skills pr￿araMMe ran until Oecember 2023 the EKSPF Pfogramrne comenced Apnl 2024, and is ongoing. Seta conlinues to respond to market needs Ixth in Ihe delivery of apprent￿eship pnJgTamme$ aTrJ commercral training courses. We review new appronlvship "sla￿ardS- published by IfATE. for surtabihly where there is a gtjod fil, develop capacity and capabih'ly to del•ver Ihese to apw8ntKes and emKAoyers. Allhough Seta primarily delivers training in the engineering and manufacturing sector. rt I￿kS for opportunities lo enter the market in complementary sectors, lor exanwe it cwrenlly delivers a number of business and administration related prc*arammes. Sota will conlinue lo make investment in training fxilities as reyed to allow quality tratning lo be dehv8red. The charity has more than sufficiont funds to fund for at least 12 mnths from ihe date of signing the accounls, Strueturè, governance and managom¢nt The Chatity 15 8 company liff*ied by guarantee and is govomed by a memixandum and article5 of association. The Directors ol the Company are also Trustees of the Charity. Eligibility for mgmbership ol the Charity arbd membership of tho Board ol Trustees is governed by the merrK]randum and articles of assocAation. There are no reslnctions in Ihe 9overf)irKJ document on the operat￿n d the charity ￿ lyb rts investment powers other that Ihose imposed by Charty law. The organisalion 15 WV8rned by a Board of Directors. %￿iCh (X￿sIstS of nryninaled members, The Board is responsible foi Ihe management contrd of the Chanty arKI overall direction of rts work. Directors are mostly offLYrs from member ￿rnpan￿S. Ttw Directcrfs have the pwer to new Dwedors up io the fft8ximum 017 boafd mem1￿r5 as set out in the menKrfarK1￿n and Artth of AssocialK￿. Trustees arp aFwtynted via invite request to apwentK8 omployer organisalKJns or speth board nominalions. Seta trustees have expressed an aim lo expand the board lo lis maxmnum of 7 toard membefs and Ihal prrces5 conts.nues through opon invites to apprenlKe efflpk)yer conyaThes arKI board invites to tiominated individuals. The trustees. who are also Ihe directors for the purpose of law. and who s8wJ during the year and up to the dalè of signature of tho financial statements were.. Mr D Bartell Mr I Scurfiold Mr A Ramsey Mr S Cellend Mf K Robson Mr M Hutchinson (Resoned 16 Felxuary 2024) (Appointed 9 February 20241 (Apwmted 21 March 2025) The day-tTrday m8nagement of the Charity has been delegated lo Mr Robin LoKkwoDd as Ihe Ch￿f ExeculNe otricer. SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Induction and Training of Tru¥tee8 The induclicffl proco55 follows the ICSA good Pract￿ Chanty Trustees. Guide with an indudion programme fof any newly appointed Iruslee. which includes an Niitk31 meeting ￿th tho Chair and the Irustees. followed by a series of short meetings with the Chief Executsve lo furthef discuss roles and responsibilities and darify charity policy matters. Furiher training will be prowded as required and in ke8kxng with the Pra￿lce Guide. Pay Policy for senior stsff Seta trustees reV￿W Ihe salary of all slatf C￿ an annual ba￿$ including indivKJual rewards padLages of senior managers. To ensure retention of all staff. Seta trustees aim to ensure thal the or9anisalion is competitive with commensurate organisalions with all Il5 salary and reward packages. Trustèeg Nong of tho trustees r￿1Ved ￿muneralm)n or other benefit Ir(Kn Iheir WLyk wrth tho charity. Any connection with Ihe chanty musl be disclosed to Ihe lull board of tru51e95 in the saFrE way as any other contractual relationship with a related party. In tho currenl year no such related party transactions were repC￿t￿l. Nono of the Trustees has any benefioal interest in the company. All of the Trustees are members of the company 8nd guarantee to contribute £10 in the eveirt of a winding Ly. Slat•m•nt of trustees. responslbllltles The trustee5, who are also the diredors of Sunderland Engineering Training Association Ltd fof the purpose of company law. are responsible for preparing Ihe Trustees. Report and the finar￿la1 slatemenls in accordance wilh applicable law and United lQngdom Accounting Slandards {Unil¢d Kingdom Generally Accepted AccouTTrting Practscei. Company law requires the trustees to prepare financial slatements for each financial year which give a true and fair view of the stale of affairs of Ihe charity and ol the IncomiNJ resources aTrJ application of resources. including Ihe income and expendTrtu￿, of the charitsble company for that year. In preparing these finanaal ststemenls, the trustees are required to.. select suitable accounting policies and then apply them mn515tently- - observe the mettM)ds and principlos In the Charilios SORP: mako judgements and estimates that are reasonable and pnJdent', slate whether applicable UK Accounling Standards havo been followed. subj'ect lo any material departures disclosed and explained in the financial statements,. and prepare the financial slalements on the g(Mng o)ncem basis unless it is napwopn'ate to Pfesume thal Ihe charity will contsnue in operats"on. The trustees are reSPon￿bIe for keeping adequate accounting re¢￿dS thal disdose with reasonable accuracy al any time the financial tM)sition of the thanty and onable them to ensure thal the financ￿1 stalemerbts comply with the Companies Act 2006. They are also responsible lor safeguarding Ihe assets of the charity and hence lor laking asonable steps for the prevents'on delection of fraud and other irregularities. Auditor In accordance vrilti the company's th'cles, 8 resdution wop)sing that Robson Laidler Ac¢ouniants Limited be reappointed as 8udiior of the company wll be wl at a General Mpetirg. SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Olsclosure of inforniation lo audilor Each of the tru51oes hds confimied that the￿ is rto informatth ol which they are aware which is relevant lo thg audit. but ol which the auditor is unaware. They have further C￿fIrMed that they have taken appropriate sleps to identify such relevant infcrntion and to establish ihat the audiior is aware of such in1ormati￿. The trustees. re5X)rt was aFwved by the Board of Trustees. Mr D Bartell Trustee Date.. 1515125 SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD Oplnlon We have audiied ihe financial slalements ol SuTrJertaTrJ En￿eerir￿j Trainiw Associaticffl Ltd {the 'charity') for Ihe year ended 31 Augusl 2024 whith compnse the 51alernent of financial arti¥ll￿s, the balance sheet, the statemenl ol cash flows and notes lo the financial sialements. Inc1￿j1ng stgnificant accountiTrJ policies. The hnancial reporting framework that has been applied in thar preparation is applicable taw and United Kingdom Accounling Standards, including Finanoal RcportiTrJ Standard 102 The Financial Reporttng Slandarrl applicablG* irt tlpe UK c1nd Ropublic of Ireland (United Kingdom Generally knepted Accounlir¥J Prackn). In our opinion, Ihe financial slateffents: give a true and faif view of Ihe state of kne charrtable C￿1panY'S affairs as at 31 Augusl 2Q24 and of its coming resources applicatic￿ of resources: includiTrJ lis incoff* expenthture. for the year then have been properly prepared in aCc￿dance with Uniled Kingdom Generally Accepted Accounb'ng Practi￿., have been prepared in accordano with the requirements of the C(Kn￿leS Act 2006. Basis for opinlon We conducted our audrt in accordance wilh Intemational Slandards on A￿￿'r9 {UK) (ISAS (UK)) and applicable law. Ouf respOnsi￿.1rtieS under ￿se standards are lurther described in Ihe Audjlorfs ￿SponSIbl1ft1eS lor the audit of tho linanciaj slalements sed￿n of our rep￿. We are irNJependenl of the chanty in accordanc¢ with the ethical requirements that are relevant to our audit of fnan(ial statements in the UK, including the FRC'S Ethical Standard. and wo hav¢ fulfilled our oiher elhical responsibilit￿5 in accordance with these requirements. We believe that Ihe audil evidence we have obtained is suffKbenl and appropnale Io ￿￿¥KI0 a tklsis for our wnKJn. Conclusions relating to going concern In auditing the financial statements, we havo conduded that ihe trustee8' use of going concem basis of accounting in the kYeparalK)n ol the ffftanckgl slatemenls is awopri81e. Based on the work we have perfomwd. we have Trjt identtfied any malerial uncertsints.es felab.ng to event5 or conditions Ihat. iThJividually Of eollectivety, may casl significanl doubt on the charity's ability lo continuo as a going concem for a perM)d of al least twelve m￿th5 from when ￿ financial 5tstements are aulhorised for issue. Our responsibilities and Ihe responsR)ililies of the trustees with respgct to going concem are described in the relevant seth.ons ol Ihis report. Other informatlo The other informalion comprises Ihe inf(xmat￿n irKluded in the annual rewt olher than thè financial statements and our auditorf5 report Ihereon. The trustees a￿ responsible for the other ￿lO[matIon contained wilhin tho annual report. Our opinion on the financial statements does not ￿ver tho other information and. except to the extenl otheThYise explicFtty staled in our Teport. do not express ￿Y fomi of assurance conclusion Ihereon. Our responsibility is to read the other infcmatsjn and, in doing so. consider whether Ihe other information 15 materially ineonsislent wilh the financial slalemenls or our knowledge obtained in Ihe course of the audil, or olhernvise appears lo be materially misstated. If we idenb.fy such matenal Incon￿stenC￿S or apparent material misstatements, we are required to determine whether this gives rise to a malenal misstatement in the financial statement5 Ihemselves. IF, baséd on the work we have performed, we conclude that there is a matenal misstalemenl of this other informats"on. we are required lo rpwt that fart. We have nothing to report in this regard. Opinions on other mattor8 prescribod by the Companies Act 2006 In our opinion, based on the work undertaken In the course ofour audit., the information given in the trustees. report for thg finanual year for Wh￿ the financial statemenls are prepared. which includes the dffectcys. rewrt prepared for Ihe purF*)ses ol ￿MpanY law. is consislent with the financial slalemenls; and the directors, reFQrt included wthin the tru5tees' reFKXt has boen prepared in ac￿rdaftee with applicable ￿gaI requirements. SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD INDEPENDENT AUDITOR'S REPORT (CONTINUED TO THE MEMBERS OF SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD Mattars on whlch we are requsred lo report by exception In the light of the krvjwledge and undofstanding of the charity and ils environment obtsined in the course of the audit, we have nol identified material misstalements in the directors, report included within the *rustees' report. We have nothing to report in ￿S￿cl ot the fc4lowirvJ malters n relalion lo which the Companies Act 2006 requires us lo report to you if. in ow opinion.. adequate accounling rec(Yds have nol been kept, or retums aJequale for our audit have noi been reteNed from branches not visited by us. or the financial slatgmenls are not in agreement with the ￿e￿Unting reC￿rdS and reiums: (Y cortain disclosures of trustees. femunefalion speafied by law are not made., or we have nol reteived all the informab.on arKI explanats'ong we require for our audil or the Iruslees V￿re not entitled to prepare the financial Statements in accordan￿ with Ihe small ￿MPanieS regime and lake advantage of tho small companies, exemptions in preparing the INstees' report and from the requirement to p￿pa￿ a slrategic rewrt. Respon51bllities of trustees As explained rTrJre fully in the statement of trustees, reS￿InsIbilItIes. the trustees. who ar8 also the diroctors ol the charity for the purpose of company law, are responsible for the Pfeparalion of the financial sialements and for being sabsfied that they give a true and fair view. and for such intemal control as Ihe trustees determine 15 nece55ary to enable Iho pr¢parats'on or rinancial sfalements Ihal are free from fflaterial misslalemont, whether due to fraud or error. In preparing the finanaal slalemenls. the trustees are responsible lor assessing the charity's ability to continue as a going concern, disdosing. as applicable. matters related to gcm'ng concern and using the going concern basis ol accounting unless the trustees erther inlend to Ivwd*e the charitable comp8ny or to cease operations, or have no realistic altemats've bul to do so. Audltor's responslbllitles for the audit of Ihe financial stat•ments Our objocttvos aro lo obtain reasonable asSUrar￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. ar￿ to issue an audilLVs report that includes our opinion. Reasonable assuranc8 15 a high knvel of assurance but is nol a guarantee Ihat an audrt Conducted in accordance wrth ISAS IUKI will 8￿dayS delecl a malenal rThSStsten￿￿t it exists. Misstatements can arise from Irau4J or error and are considered material if. Indiv￿ua1ty or in the aggregale. Ihey cwld reason*Jy be expeded to influgnca the ornnomic decisions of users ￿ken on the basis of these financial statements. The extent to vthich ow ￿C￿lureS arg capatye of delecling irregu18ntses. ￿clU￿ng fraud, is detailed below. The risk ol material misstatement due to erny ￿ fra￿1 has been awssed in ¢4￿1und1On wth how internal controls may mitigate any such nsk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are oper?ling effe¢tivety. Anafytical review aThl subslantNe tosling is also porfomied on all maleri81 balances and therefore any Instan￿ of non 2,031.057 18,69) Total expenditure 2,033.865 18.690 2,052,555 1,900,270 Nel gainsl{losses) on invo5tments .31.227 31,227 (1,509) Net Income and movement in funds 144.658 51.399 196,057 186,195 R￿On¢111a1l0n ot funds: Fund balances al 1 September 2023 1,407.399 1.407,399 1.221.204 Fund balances al 31 AL￿USt 2024 1,552.057 51.399 1.603,456 1,407,399 The ststement of financial activthes IrKI￿ all gains ard bsses reccwised in the year. All income and expendilure deriv8 from continuing actIV￿*s. SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD BALANCE SHEET ASAT31 AUGUST2024 2024 2023 Notes Flxed assets Tangible assots Investments 14 15 699.055 317.289 761,471 281,994 1,016.344 1,043,465 Current a880ts Debiors Cash at bank arKI in hand 16 238.246 487.141 396,657 222,574 725,387 619,231 Creditors; amounts falling due within one year 17 (138.2751 {203,898) Net current assets 587.112 415,333 Tolal assets less current Ilabllities 1.603.456 1,458.798 Credllors: amounts falllng due after more than one year 18 151,3991 Net assets 1,603.456 1,407.399 The lunds of thè eharlty Reslricled Incon￿ funds Unre51ricted f￿d$ 21 22 51,399 1.552.057 1,407,399 1,603.456 1.407,399 The financial slatements were approv￿ by ttbe trust&s on .15 May. 2025 Mr D Bartèll Trustee Company regislralion number 01372963 (England and Wales) 10- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Notès Cash flows from opefating activities Cash generated frc¥n operations 309,385 163.075 Invesllng actlvlties Purchase of tsngible fixed assets Proceeds from disposal of tangib￿ fix&J assets Purchase of inveslments Proceeds from disposal of Investn￿ntS Investmenl inGomo Teceivod (50.5621 (283.9471 14.500 (30.2521 20.743 6.381 (91.4891 91.166 9.312 Net cash used In Investlng a¢tfvltles (41.073} (272,575 Net cash gènerated from financing actlvltl Net Increasel{decreasel in cash and cash equivalents 268.312 1109.500) Cash and cash oquivalents at beginning of year 230,481 339,981 Cash and cash equfvalents at end of year 498,793 230,481 Relatlng to.. Cash al bank and in hand Short term deposits induded in ￿rrent asset investments 487,141 222.574 11,652 7.907 The notes on pages 12 to 22 fom part of these finan(ial slaiemenls. 11 SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policios Charity information Sunderland Engineering Training ASS￿"a￿'0n Ltd is 8 private cc(npany limited by guarantee incorporated in England and Wales. The registered office is 17 Sedlng Road, Wear Industrial Estate, Washington. Tyne & W¢ar, NE38 9BL 1.1 Accounilng convention The financial statements have been prepared in accordance with charity's goveming document, the Companies Act 2(￿6. FRS 102 Vhe Financial Reporting Standard applicable in the UK and Republic of Iroland- and the Charitss SORP "Accounting and Rewrting by Charities. Slatemenl of Recommend8d prac1￿ applicable lo charilies preparing their accounts in accofdance wrth the Financial Roporting Standard applicable in thg UK arHI RepublK of IrfjlarKI {FRS 1021-. The Ch￿"1Y is a Public Benefil Entity as defined by FRS 102. The financial slalement5 are prepared in sterling. which is Ihe funcbonal currency of the tharity. Monètary amounts in these finanoal slalements are rounded to the nearest £. The financial staten￿nIS havg Lwn prepared under Ihe htslor￿￿ cost cOnvent￿n. The pyrtipal a¢¢ounling licies adopted are sel c￿1 below. 1.2 Going concern At the lime of approving the financial slatemenls. the Irustoes have a reasonable expectation that the charity ha5 adequate resources lo wnts'nug in oporalional existen￿ ihe loreseeable lulure. Thus Ihe truslees continue lo adopt ihe going concern basis of accounting in preparing Ihe financial statements. 1.3 Charllable funds Unrostricted funds ava4able for use al the thscrekn'on of the Irusiees in furtheran￿ of their charitable objects'ves. ReStr￿ted funds are subject to Specif￿ conditKiris by donors or grantors as to how they may be used. The purposes aTrJ uses of the restricled funds are sei in Ihe noles lo the financial statements. 1.4 Ineom8 Income is recognised when the chanty is *aMy entitled to rt after any performw cL)ndition¥ have been mel, Ihg arrKJunls can be moaswed relrably. and rt is probable thal income will be received. Cash donations are recognised ￿ receipt. Other ￿natIonS are fecogniwj once the charity has been nolified CJI the donation. unless perfofmance conditions require deferral of the amount. Income lax recovorable in relation to donalions received under Gift ANJ or deeds of ¢ovenanl Is recOgn￿ed 81 the tKne of the donation. Income from trading adivities is used to raise funds for the Ch￿ty. Income is received in exchan9e for suppty ol goods 8nd services is recognised on delivery of such activits"es. 1.5 Expendllure Expenditure is recognised once there is a legal oi u)nstructive Obluati￿ lo transfer ec4)ncxnic benefil lo a third party, rt ￿ probable that H transfer of eu)noxrr benefils will be required in settlen*nt. and the amount of the obligalion can be measured re4ably. Expondrtufg is ¢lassif*d by athity. Tr* costs of each activity ar& made up of the total of direcl costs and shared costs. including support costs involved in undertaking each activity. Direcl Gosls attribulablo lo a single activity are allctaled directly to that actiwty. Shared c051s whith conlribute to more than one activity and svpport Costs which are not attntryjtsble lo a single activity arè apportsned between those activilies on a basis consislenl wilh ihe use of fesoufces. Central stsff costs are alkxaled on the basis of time spent, and depreciatson charges are alocated on the t￿lon of tho a&set's use. 12- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 AGcounlin9 policies (Conlinu•d) 1.6 Tangible flxed assets Tangible fixed assets are initially measurod at cthl and subsequentty measured at co* CK valualion. net of depreciation and any impannenl losses. Depreciation re¢ognised so as to write off the cosl or valuation of assets ￿8S th￿r residual values over their useful lives on the following bases: F￿ehOld land and bull dings Plant and equIp￿nt Fixtures and fith'ngs 2% straighi fine 25Vts reduung balance 133% straKJhl line 10Yc* reducing balanco The gain or loss ari&n9 on the disposal of an asset is deternwned as Ihe difference bemeen the salo proceed8 and the carrying value of the asset. a￿1 is recognisfjd slaiemenl oi finanaal athvities. 1.7 Flxed asset investments Fixed asset investments are initially measured at tTansaGtion price exduding transaclion costs, and ar8 subsequently measured al fair value at rep)rtrng dale. ChaNJes in laif value are rewgnised in net incornel(expondiluro) for the year. Transaction cosls are eX￿nself as incurred. 1.8 Impairrnent of fixed assets At each reportin9 eTrJ dale. tho charity reviews the carrwng am￿nts of its tangibl8 assets to detemiine whether ther8 is any indicalion that Ihose assets have suffered an impaiment boss. If any such indication exists, the re￿Verable amounl of Ihe a55et eslimated in order to determine the extent of Ihfj ifflpairmenl loss {rf ￿Y). 1.9 Ca8h and cash ewivalents Cash and cash equivalents includo cash in hand. deposits held al call wrth banks, other short-lemi liquid investrnent5 with original malurilies of ihree months or less. and bank overdrafts. Bank overdrafts are shown within borrowmgs in currenl ba￿.11￿.e￿ 1.10 Employee benefits The cost of any unused holmjay enblbement is recognised in th8 wk)J in which Ihe employee's services are received. TerminalDn benefils a￿ recognEed Imn￿diatelY as an expgnso when Ihe charity is demonstrably comfftitted to lerminate the eMP￿YMent c4 an employee ￿ lo tefmM)aknon benefits. 1.11 Retiremgnl b6nefits Payments ￿ defined contribut￿￿ retIreff￿I benefit schen*8 are charged as ￿ expense as they fall due. Critical accounting •stimates and Judgements In the applicat)on of the chartty's a¢counb'rwJ [h)lic￿s, the trustees are required to make judgements, eslimates and assunptions about the carrying amount of assets and liabilitios Ihal arè not readily apparent from othor sources. The estimates aThJ associated assumptit)ns are based cm histoncal expenen¢o and other factors that are considered to bo relevant. Actual fesdls may differ fv¢Jn these estimates. The estimates and undertying assurnptsjns a￿ revwied on an ongoiwvJ basis. Revisions to accounting estimates are ￿C￿nISed in the pen'tsj in which the eslimalo is revised vthere the revision affeGt5 Only that period. or in the period of the revisi￿ and future periods where the revision affects b¢)th currenl and future periods. 13- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Income from donalions and logaGio¥. Unrestricted Restrictod funds funds 2024 2024 Total Unrestrlcted Restricted funds funds 2023 2023 Total 2024 2023 Grants 70.089 78.089 17.172 17.172 Income from ch8rttable actlvities Unrestrlctèd funds 2024 Unrestricted funds 2023 Training Appreniice training Commercial IrainitVJ Aplitude le51ing foos 1.853.219 274.636 1,545,243 501.446 2,968 2.127.855 2,049,657 Income Irom investments Unrestricted Unrgstricted funds funds 2024 2023 Income from listed investments Inleresl receivable 5.882 3.430 5,785 596 9.312 6,381 Other inGome Unrestflcted Unrestrictpd funds funds 2024 2023 Net gain on disposal of tangible fixed assets 14.000 14- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Expenditure on ralslng funds Unreslricted Unrestridod funds funds 2024 2023 Investmenl management 2,808 2,648 Expendilure on charitable actsvities Tfainlng 2024 Tralnlng 2023 Direct Gosts Staff costs Depreciation and impaffment Malerials and ￿nsUMableS Boughl in services Safely clothing and cleaning Traning courses and exFonses 833.411 84,083 72,886 73.113 47,079 175,502 703,626 48,436 79,566 79,799 39,738 174,626 1,286,074 1.125,791 Share ol support and governancè eosts (see note 9) Support Governance 754.973 8.71JO 766.009 7.200 2,049.747 1,899.000 Analysis by fund Unrestricted furKIs RestrKled funds 2.031,OS7 18,690 1,899.000 2.049,747 1,899,000 15- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Support costs allocated to actlvltles 2024 2023 Slaff costs D9prgcial￿n Siaff travel Staff health insurance Office c05t5 Software and IT Advertising Sundry gxponses Finance eosts Profesgonal fees Governanc8 c051s 480,250 28,895 14,650 484,774 27,437 19,150 6,S77 161 .788 15,179 11 ,()47 6,168 259 33.630 7,200 160,566 21,160 27,539 5,762 513 15,638 8,700 763,673 773.209 Analysed betweén: Tra￿Ing 763.673 773,209 2024 2023 Governance costs comprise: Audrt fees 8.71X) 7.200 8.7CKI 7.2 10 Not movement in funds 2024 2023 The net movomenl ￿ funds is staled after ¢harging/(crediling): Fees payable for the audit ol the charivs financ￿1 ststements Depreciation ol owned tangit4e fixed assets Prolit on diswsal of tangiblo fixed assets 8.7QK) 112,978 15001 7.200 75.873 114.000) 11 Trustees None ol the Iwslees ior any persons connected th them) r8ceiwJ any remuneratK)n or benefits from Ihe chanly during Ihe year. 16- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 12 Employees Tho average ffK)nthly number of employees duriTrJ the year was: 2024 Numbor 2023 Number Lecturer5 and training prov¥Jers Managemenl and admin staff 19 13 18 13 Total 32 31 Employment costs 2024 2023 Wages and salaries Social security costs Other penston costs 1.118.991 113,673 80.997 1.013,001 95.783 79.616 1,313,661 1.188.400 The number of empkjyees whose annual remunerats.on was rrw)re than £6Q,QXY) is as fomows.. 2024 Number 2023 Number £100,001- £110,000 £110,001- £120.000 Rernuneratlon of key management personnel The remuneraticffl of key management ￿rSc¥mo1 was as follows.. 2024 2023 Aggregate coM￿nsatIon 126.618 108,823 13 Taxatlon The chanty is exempt frcmn laxation on its %tivrties because all ils Th￿rne is applied for charilable purposes. 17- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 14 Tanglble flxed assets Fr••hold land •nd buiklings Plant and Fixtuwu •qulpm•nt fittlng$ Cost At 1 Sepiembei 2023 Addrtions 600,586 1,W1.156 19,004 306.740 1,908,482 31,558 50,562 AI 31 August 2024 600.586 1,020.160 338.298 1.959,044 Depreclation and inw)airment At 1 September 2023 Depreciatson charged in ihe year 267.355 13.(￿2 709.580 85.070 170,076 14.846 1.147,011 112,978 At 31 August 2024 280.417 794.650 184.922 1,259,989 Carrytrw amount At 31 August 2024 320.169 225.510 153,378 699,055 At 31 August 2023 333.231 291,576 136.664 761.471 15 Fixed asset investments Listod Investments Cost or valuatlon At 1 September 2023 Addrtions V81ualion changes Cash movemenl sposals 281.994 91.489 31.227 3,745 (91,166) Al 31 August 2024 317,289 Carrying amount At 31 Augusi 2024 317,289 At 31 August 2023 281,994 16 Debtors 2024 2023 Amoun18 falling due wlthln one year: Tf8de debtors Pfepaymanls and accrued Inco￿ 212,707 25,539 218,404 178.253 238,246 396,657 18- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 17 C￿dItOrs". amounts falllng due wlthln one year 2024 2023 Not6s Olhef laxalion and soaal security Government grants Trade creditors Other creditors Accfuals and defetted inc 26.895 26,561 18.690 71.903 26,172 60,572 19 32.752 21.669 56,959 138,275 203.898 18 Credltors: amounts falling due after more than one year 2024 2023 Notes Govemmenl grants 19 51,399 19 Govemment grants Deferred income ts Induded in the financlal siatements as fdlows.. 2024 2023 Deferred income is induded vthin.. Current liatrtlibes NOn-￿rrent li8bililies 18,690 51,399 70,089 Movements in Ihe year" Oeferred sncome al 1 Septemter 2023 Released from previous pwiods Resources deferred in the year 70.089 (70,089> 14.672) 74.761 Deferred income at 31 Auwst 2024 70.089 20 Retirement benefrt schemes 2024 2023 Defin6d contrlbutlon schemes Charge lo profrt cr los3 li respect of defined ¢(￿trIbut￿)n sthemes 80,997 79,616 The Charity oporatcs a defined ￿nIr￿ulKYft pension scheme for all qualifying employees. The assets of the scheme are hdd separately from those of the charity in an I￿leper￿entIY adnThni51ered fund. 19- SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 21 Restricted funds The reslricled funds of the charity ca)￿Y￿e tho unexwth t)alances of donations and grants held on trust subject lo specific conditions by dC￿orS AS to hcA¥ they may be used. At1 September 2023 Incoming resources Resources At 31 August expended 2024 Capital granl fund 70.089 {18,69)1 51,399 Capital granl fund Funding received towards the CO￿ of fixed asseis. The fuThJ is teing released in line wth the associat8d depreciation on an annual basis. 22 Unrestrlcted funds The unrestrided funds of the th￿ilY comprise Ihe unexpended balances ol donab'ons and granls which are not subjecl lo specific conditions by donors and grantors as to how they may be used. These include designated fu￿j5 whith have been set asth oul of unre5tncted funds by the trustees for specific purposes. At1 September 2023 Incoming fèsourcès Resource¥ expended Gains and At 31 August losses 2024 Gener81 funds 1.407.399 2.147.296 {2,033.865} 31.227 1,S52,057 Prevlous year: At1 Septembor 2022 Incomlng resources ResourGes expended Gains and At 31 August lo$8e8 2023 Gener21 hjnds 1,221.204 2.087,974 (1,9)),270} 11,5091 1.407,399 23 Analysls of net assets between funds Unrgglricted funds 2024 Rostrictgd funds 2024 Totsl 2024 At 31 August 2024: Tangible assels Inveslmenls Current asselsllli8bihtses) 699.055 317,289 535.713 699.055 317,289 587,112 51.399 1,552,057 51,399 1,603,456 SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 23 Analysis of net assets betwgon fund {Contlnued) Unrgstricted fvnds 2023 Restrlcted funds 2023 Total 2023 At 31 August 2023.. Tangible assets Investments Current asselsllliabililies} Long term liabilit￿S 761,471 281,994 415,333 (51.399) 761,471 281,994 415.333 {51,3991 1.407.393 1,407,399 24 Operatln9 lease commltments Lessèé At ihe reporting end date the charity had 0uls1a￿j]ng commitments fof future minirwm thse payments under non