Company registration number 01372963 (England and Wales) Charity registration number 507714 (England and Wales)
SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
CONTENTS
| Page | |
|---|---|
| Trustees’ report | 1-5 |
| Independent auditor's report | 6-8 |
| Statement offinancial activities | 9-10 |
| Balance sheet | 1 |
| Statement of cash flows | i2 |
| Notestothefinancialstatements | 13-22 |
SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
Financial review
Overall, the Association is showing revenue from charitable activities of £2,634,113 compared to revenue of F2,127,855 in the previous financial year, an increase of 23.7%. Net income for the year was £483,354 compared to a net income of £196,057 in 2024 an increase of £287,297,
The growth strategy put in place during previous financial years to increase employer involvement and apprentice numbers, is continuing ta deliver positive results, with the highest number ever of apprentice learners on programme,
Seta's investments increased in value overall during the year to £337,031 from £317,289. The market value of retained investments increased by £19,742.
Reserves policy and Going Concern
The trustees aim to maintain minimum accessible reserves in unrestricted funds at a level which equates to approximately three months of unrestricted charitable expenditure,
The balance held as unrestricled funds at 31 August 2025 was £2,018,841 of which £1,408,769 are regarded as free reserves after allowing for funds tied up in tangible fixed assets. Restricted reserves at 31 August 2025 are £67,969, Actual 3 month cash payments totalled £549,000,
The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in revenue, they will be able to continue the Charily’s current activities while consideration is given to ways in which additional funds may be raised. In addition, the Charity is preparing for continued growth, where larger or additional training facilities will be required, at significant cost to the organisation. This level of reserves has been maintained throughout the year.
The Trust reported net revenue of £483,354 in the year. The Trustees expect that the current financial year will also generate a significant surplus. On thal basis they consider the charity is a going concern.
In the event that Seta was unable to recruit any apprentices in the current year, there would be DIEYESFA continuation funding for the >300 apprentices currently on programme. This would run down over three years, by which time adjustments would be made to outgoing costs or alternative revenue streams secured. There is a very low risk that this event will occur.
In the event that Seta was unable to deliver commercial training, reserves would be adequate to cover all costs until they Were able to be reduced to match income.
Bearing the above in mind, and considering that Seta has £1,408,769 of readily accessible reserves, the Trustees cansider the charity is a going concern.
Investment powers and policy
During the 24/25 financial year the investment portfolio was managed by Brewin Dalphin. The portfolio value is noted above. An annual review of this investment portfolio and performance is carried aut by Seta trustees.
The Trustees have the power to invest in such assets as they see fit. Seta’s investment advisors have been instructed to invest to maximise the total return on investment funds within the constraints of a medium risk portfolio. An investment policy is in place. Whilst the investment brief is broadly defined, Seta trustees are happy that the nature of investments is appropriate fram an ethical standpoint.
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr O Bartell Mr | Scurtield Mr A Ramsey Mir K Robson Mir M Hutchinson
(Appointed 21 March 2025}
The day-to-day management of the Charity has been delegated to Mr Robin Lockwood as the Chief Executive Officer.
Induction and Training of Trustees
The induction process follows the ICSA good practice Charity Trustees’ Guide with an induction programme far any newly appointed trustee, which includes an initial meeting with the Chair and the trustees, follawed by a series of short meetings with the Chief Executive to further discuss roles and responsibilities and clarify charity policy matters, Further training will be provided as required and in keeping with the Good Practice Guide.
Pay Policy for senior staff
Seta trustees review the salary of all staff on an annual basis including individual rewards packages of senior managers. To ensure retention of all staff, Seta trustees aim to ensure that the organisation is competitive with commensurate organisations with all its salary and reward packages, Trustees None of the trustees received remuneration of other benefit from their work with the charity. Any connection with the charity must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party, In the current year no such related party transactions were reported, None of the Trustees has any beneficial interest in the company, All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
Statement of trustees’ responsibilities
The trustees, who are also the directors of Sunderland Engineering Training Association Ltd for the purpose of company law, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practica).
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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial staternents, the trustees are required to:
- select suitable accounting policies and then apply them consistently: - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - slate whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements: and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. /
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
Opinion
We have audited the financial statements of Sunderland Engineering Training Association Ltd (the ‘charity’) for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flaws and notes to the financial staternents, including 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 Firancial Reporing Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice}.
In-our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; : have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and : have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (/SAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Audifor's respansibililies for the audit of the financial statements section of our report. We are independent of the charity 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 gaing concem 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 charity'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.
Qur responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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, Qur 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 rasponsibility 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 misstaternents, 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 our audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors’ report prepared for the purposes of company law, is consistent with the financial statements: and
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therequirements,directors’ report included within the trustees’ report has been prepared in accordance with applicable legalf -
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may invalve collusion, forgery, intentional omissions, misrepresentations of the override of internal contrals.
4 further description of our responsibilities is available on the Financial Reporting Council's website at https www.fre.org.uk/auditarsresponsibilities. This description forms part of our auditor's report.
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 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
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Nicholas Cunningham MSc Sc FCCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited, Statutory Auditor Accountants
Fernwood House Fernwood Road Jesmond Newcastle upon Tyne Tyne and Wear NE@ 1TJ England Date: (~4 ~7ork.
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2025
| Prior financial year | Unrestricted | Restricted | Total | |
|---|---|---|---|---|
| funds | funds | |||
| 2024 | 2024 | 2024 | ||
| Notes | £ | £ | E | |
| Income and endowments from: | ||||
| Donationsand legacies | 3 | 8,000 | 70,089 | 78,089 |
| Charitable activities | 4 | 2,127,855 | - | 2,127,855 |
| Othertrading activities | 1,629 | - | 1,629 | |
| Investments | 5 | 9.312 | - | 9.312 |
| Other income | 6 | 500 | = | 500 |
| Total income | 2,147,256 | 7O 089 | 2.217,385 | |
| Expenditure on: | ||||
| Raising funds | 7 | 2,808 | - | 2,608 |
| Charitable activitias | 8 | 2,031,057 | 18,690 | 2.049.747 |
| Total expenditure | 2,033,865 | 18,690 | 2,052,555 | |
| Net gains/(losses) on investments | 31,227 | “ | 31,227 | |
| Netmovement Infunds | 10 | 144,558 | 51,399 | 196,057 |
| Reconciliation offunds: | ||||
| Fund balances at 1 September 2023 | 1,407,399 | - | 1,407,399 | |
| Fundbalancesat31August2024 | 1,552,057 | 51,3499 | 1,603,456 |
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2025
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| Notes | 5 | £ | E | £ | |
| Cash flows from operating activities | |||||
| Gash generated from operations | 23 | 527,129 | 309,385 | ||
| Investing activities | |||||
| Purchase of tangible fixed assets | (76,897) | (50,562) | |||
| Proceeds from disposal oftangible fixed | |||||
| assets | 480 | 500 | |||
| Purchase ofinvestments | (62,606) | (91,489) | |||
| Proceeds fram disposal of investments | 56,303 | 91,166 | |||
| Investment income received | 10,987 | 9,312 | |||
| Netcash used in investing activities | (71,733) | (41,073) | |||
| Netcashgenerated from financing activities | - | - | |||
| Netincrease in cash and cash equivalents | 455,396 | 268,312 | |||
| Cash and cash equivalents at beginning ofyear | 498 793 | 230,481 | |||
| Cash and cash equivalents atand ofyear | 954,189 | 498,793 | |||
| Relating to: | |||||
| Cash at bank and inhand | 944 652 | 487,141 | |||
| Short term deposits included in current asset | |||||
| investments | 9,547 | 11.652 |
The notes on pages 13 to 22 form part of these financial statements.
SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
- 1 Accounting policies
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- 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings 2% straight line PlantFixtures and equipment 25% reducing balance/ 33% straight line and fittings 10% reducing balance
The gain or loss arising on the disposal of an asset is deterrnined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
- 1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date, Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
- 1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable arnount of the asset is estimated in order to determine the extent of the impairment loss {if any).
- 1.9 Gash and cash equivalents
Gash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts, Bank overdrafts are shown within borrowings in current liabilities,
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 1.11 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due,
2 Critical accounting estimates and judgements
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources, The estimates and associated assumptions are based an historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates, The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only thal period, or in the period of the revision and future periods where the revision affects both current and future periods.
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
7 Expenditure on raising funds
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Investmentmanagement | 3,072 | 2,408 | |
| g | Expenditure on charitable activities | ||
| Training | Training | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Direct costs | |||
| Staff costs | 813,196 | $33,411 | |
| Depreciation and impairment | 67,794 | 84.083 | |
| Materials and consumables | 84,900 | 72,886 | |
| Bought in services | 76,985 | 73,113 | |
| Safety clothing and cleaning | 36,416 | 47,079 | |
| Training courses and expenses | 240,118 | 176,502 | |
| 1,319,409 | 1,286,074 | ||
| Share ofsupportand governance costs (see note 9) | |||
| Suppart | 882,223 | 754,973 | |
| Governance | 9,164 | 8,700 | |
| 2,210,796 | 2,049,747 | ||
| Analysis by fund | |||
| Unrestricted funds | 2,192,106 | 2,031,057 | |
| Restricted funds | 18,690 | 18,690 | |
| 2,210,796 | 2,049,747 |
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
12 Employees
The average monthly number of employees during the year was:
| The average monthly number of employeesemployees during the year was: | |||
|---|---|---|---|
| 2025 | 2024 | ||
| Number | Number | ||
| Lecturers and training providers | 21 | 19 | |
| Management and admin staff | 14 | 13 | |
| Total | 35 | a2 | |
| Employment costs | 2025 | 2024 | |
| £ | £ | ||
| Wages and salaries | 1,195,157 | 1,118,991 | |
| Social security costs | 124,415 | 113,673 | |
| Other pension costs | 64,681 | 60,997 | |
| 1,404,253 | 1,313,661 | ||
| The number of employees whose annual remuneration was more than £60,000 | |||
| iS as follows: | |||
| 2025 | 2024 | ||
| Number | Number | ||
| £110,001 - £120,000 | 1 | 1 | |
| Remuneration ofkey management personnel | |||
| The remuneration of keymanagement personnel was as follows: | |||
| 2025 | 2024 | ||
| £ | £ | ||
| Aggregate compensation | 129,992 | 126,618 | |
| 13 | Taxation |
The charity is exempt fram taxation on its activities because all its income is applied for charitable purposes,
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
17 Creditors: amounts falling due within one year
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|---|---|---|---|---|---|---|---|---|---|---|---|
|2025|2024|
|£|£|
|Other taxation|and|social|security|31,785|26,895|
|Trade|creditors|471,032|32,752|
|Other creditors|22,083|21,669|
|Accruals|and|deferred|income|247|124|56,959|
|442,024|138|275|
|18|Retirement|benefit|schemes|
|2025|2074|
|Defined|contribution|schemes|£|£|
|Charge|to|profit|or|loss|in|respect|of defined|contribution|schemes|64.681|40,997|
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The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund,
19 «Restricted funds
The restricted funds of the charity camprise the unexpended balances of donations and grants held on trust subject to specific canditions by donors as to how they may be used.
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|---|---|---|---|---|---|
|Ati|Incoming|Resources|At|31|August|
|September|resources|expended|2025|
|2024|
|£|£|£|£|
|Capital|grant fund|51,399|35,260|(18,690)|87,969|
|Previous year:|At‘|Incoming|Resources|At31|August|
|September|resources|expended|2024|
|2023|
|£|£|£|£|
|Capital|grant fund|-|70,089|(18,690)|61,999|
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Capital grant fund
Funding received towards the cost of fixed assets. The fund is being released in line with the associated depreciation on an annual basis.
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SUNDERLAND ENGINEERING TRAINING ASSOCIATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2025
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|---|---|---|---|---|---|---|---|---|
|23|Cash|generated|from|operations|2025|2024|
|£|£|
|Surplus|for|the|year|483,354|196,057|
|Adjustments|for:|
|Investment|income|recognised|in|staternent|of financial|activities|(10,987)|(9,312)|
|Gain|on|disposal|of tangible|fixed|assets|(480)|(S00)|
|Gain|on|disposal|of|investments|(15,467)|(31,227)|
|Depreciation|and|impairment|of tangible|fixed|assets|o7.910|112,978|
|Movements|in|working|capital:|
|(Increase)/decrease|in|debtors|(230,864)|458,411|
|Increase/(decrease)|in|creditars|203,663|(46,933)|
|(Decrease)|in|deferred|income|(70,089)|
|Cash|generated|from|operations|527,129|309,385|
|24|Analysis|of changes|in|net funds|
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The charity had no material debt during the year.
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