Stockport Engineering Training Association Limited (A company Ilmlted by guarantee) Report of the Trustees and Consolidated Financial Statements For the year ended 31 July 2020 Company Number 1512311 Registered Charity in England no 510493
StOGkport Engin•orlng Tralnlng Assoclatlon Llmlted Report and Consolldated A¢Gounts Contents Pagg Report of the Iruslees Report of the Ind&pèndenl aijdilors Consolidated slalemenl of financlal acllvlll&s 9- 11 Consolidated balance sheet 13-14 Charlly balance sheet Statement of Cash Flows and Congolldaled sl8lem&nl ol Cash Flows 15-16 17 Notes forming part of the financlal statements 18-33
Stockport Engineerlng Tralnlng Association Llmited Report of the Trustees for the ear ended 31 July 2020 The trustees are pleased to pres8nl their annual directors, report lo ether wlh the consolidated financSal statements of the charity and Ils subsidiaries for the year ending 315uly 2D20 which are also prepared lo meet the requirements for a directors, report and accounts for Companies Act purpos8S. The financial slalemenls comply wllh Ihe Charitles AGI 2011, the Companles Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement ol ReMrnended Proclice applicable lo Charities preparing their accounts in accordance wllh the Financial Reporting Standard applic8ble Sn the UK and Republlc of Ireland (FRS 102} {effeclivo 1 January 2019}. Chalrs Ro ort The SETA team continue Mth the same enthusiasm and hard work lo ¢arry on the business developemenl and consolidation of plans previously put into practice. The next phase of Ihe planned Improvements lo develop the dellvery of the academlc progamme hav6 been cemplelèd lo consolidate HNC so as lo relaln and achlevè conlinulty of sludènls within the organistion with consideration to develop through lo HND level. Recent years issues with funding sources have largely been resolved either by legislation or by in company inlllalSves, thus redu¢ing SETA'S vulnerabllily. Our Operatlonal Board IOBI continue lo mon11or all changes in funding rLJlfjs and will plan allernativa solutions for Any issues that may 8rlsg. The organisalion continues to deliver a wide range of training initiatives lo meet our customer dgmands across apprenticeships, adult skills and health and safely in line with both recognised national and Internatlonal standards. The courses are delivered across the UK and overseas as roqulred and to a customer base ¥anging from small lo multinational organisalions. The budgeted targets for the year were very much on track for first three perlods, then we were hlt by the Cgvid 19 pandemic and reslriclions which came into force in March 2020, many booked courses were cancelled without notice. with the consequ8ntial effect on reducing final quarter income. The 08 acted wlh Inltiallve and Integrity lo revSew what land howl could bo d8llvered undor th& clrcumslancos and reslrfcllons imposed by Government legi81allon, The Apprentice Trainlng Programmes continued to achSeve timely oulcoTlles with a great deal of strategic and logistical planning. However il was necessary lo pul some of our staff Dnlo the Govemmenls Furlough scheme. Consoquenlly the budgeted profil sol In the business plan was not m81, howovor with prudent accounting and financial planning together wilh the acllons of the OB th8 final result shows a small loss for the year. Despite the difficulties in the year. larg819 sel by the bDard and management team havè generally beèn achleved. and although the largeled prolSls were not mel we b6llve we have performed well in olrcumstanGes that are beyond our control. We wlll pursue Snlllatlves lo develop the buslness and conllnually revlew these through strategic discussion at planned board meetings. I thank our stakeholders, Board Members, Chief Executive. Operational Board and all the hardworklng staff who make11 a privilege to chair SETA and their commllment lo the success of Ihe organisalk)n. as we provide the education training and support to our clients and their employees. Our os• and activitles The principal objo¢tive of the Charity Is to mainlain, Imtxove ar 8dvance e(iucation by promoling thè tralnlng and education for employed pèople and those intending lo be employed in industry and commèrcè as shown in the Memorandum and Articles of the Association. Member Companies of the Association have prlorlty access lo IhSs seICe for Iheir identified needs. The slral&gies for achievlng tho objocllves ar8 to build on the success we h8ve already achleved and lo maxlmlse the polenllal apprenll¢e recrultment flgure of 120 Includlng a cohort of SETA sponsorad apprentices. - To promote and develop SETA Cyprus and SETA Inlernallonal through the acquisition of trainirEg contracts In Europe and the Mlddle East. Meet the challenge and succession plannlng for key personnel from quallfled and compelenl replac8m8nts. Improve Adult Learning Budget initiative for employers. ur The Charity doe5 not carry out signifant fundraising actlvilies, the main income for the Charity is via Government funded Apprenticeship training which is supported by commercial training 20tiMlies.
Stockport Englneerlng Trabning Association Llmlled Report of the Trustees for the ear ended 31 Jul 2020 Publlc Bgnellt The Trustees confirm that they have, wh8n and where necessary lo do so, paid regard lo the Charlty Commissioner's Guidance on Public Benefll when considering and making ils decisions. SETA Is Ideally placed lo offer ils funded services lo Ihe whole of the Greater Manchester and surroundlng calchmenl area. Membership We currently have 19 member companies. Appr8ntic8 Training The consider8bl6 changes In thè educatlon system continue to have a major impact on SETA. The inlroducllon of the New Apprenticeship Levy and funding system that was irllplemenled in 2017 caused some confusion and lack of confiderKe the system, this seems lo be turning around now with numbers Increaslng for Levy paying employers. The drive by the government lo slgn up on new Apprenllceship Standards Irom Frameworks conllnues with Frameworks finally belng wlthdrawn on the 31st July 2020. The number ol Standards available continues lo grow and we continue lo expand our portlolio where avallable. After we were unsuccessful irb our bid lor Non-Levy Iijndlng from 1 sl April 2018 we managed lo secure a subcontract arrangement with Easti@igh College lo continue lo provide Apprenllceshlps lo small employers. The Government finally released Non-Levy lunding via the Digital Apprenticeship Service the 1 st January 2020 and we have managad to ulillse this system before Covid hit, this means that we do not have to rely on subcontracting movlng foard. Apprenllce Tralning is one of the Charills main sources of income. This relles on the Charity's recrullmenl of apprentices for member companies and clienls. Recruilmenl - initial assessment, interviewing and selec15on of young people on behalf of the Association's membgrs and ¢llenls Is undertaken lo support Ihelr crllerla for employment. Non-charltablo AGtivlties These are done lo support charllable aclivllSes and to provldg mgmbers with services required. Aduft Engineering Trainlng Adult Skllls programtll8s tallored lo suit the employing company's needs continue to grow in today's environrnenl of multi-skilled workforces. Many are using the NVQ system to gain fomial qualifications of Ihelr competences. We wlll respond lo the needs of compani85 investing in workforce development via purpose deslgned programmes. Contacts with the newly created Skills Academies should assist in the marketin9 ar)d delivering of core skills for which there is a regular and polen11811y larger m8rk61. New opportunies continue lo b8 monitored, thls included starting delivery of the new 18th Edition Eleclrlcal course in 2019 that IS Still provlng very popluar. Safety and sIrt Cours•s Health, safety and environment related courses for industry and commorce are in constant demand throu9houl the UK, European and the Middle East. SETA has rssponded lo this and has sel up SETA Inlern3lional lo grow links with partner5 in these areas, partlculady In Cyprus, Greece, Turkey, Affi¢a and Eastsm Europe. E-portfolio - NVQ Level 5 in Occupational Health and Safety practice is still increasing in numbers.
Stockport Englneerlng Tralnlng Assoclation Llmltod Rfrport of tho Trusteos for the ear ended 31 July 2020 Achievaments P rf rmance and Covid-19 2019120 stsrted off very strongly for us wSlh all sides of the business looking very Ilkely to surpass their budgets. When Covid-19 hil us 11 forced the closure of tho Trainlng Accademy on the 23rd March. All Commerclal course dèllv&ry ceased as did Apprentlce praclKal trainlng. We moved quickly lo ensure that as many apprentices as posslble Temained on program lo secure continued Inwme from the ESFA, thi8 includ8d-. 1 } Setting remote Ir8Snlng for BTECINNC via Zoom 21 Tasking leamers on pracliallossons with Completion of job "wrlle ups" vla their E-portfollo 3} Complellon of additional onllne Iralnlng courses, includlng Safeguarding, EDI, elc SETA ulilised the Coronavlrus Job Retenllon Scheme to Furfough all staff that could T¢ work from home and rovlewed this on a weekly basis. Once the lockdown was eased, after a Covid rlsk assesment and safety measure bèirbg impFemenled, the Irainlng centra re-opened on the 15th June 2020 wllh much r6duced numbers. Those staff that were required were brought back from Furfough and numbers were monllored regularly, all BTEC dellvery remalned r8mDle. Commercial courses seemed lo pick up very qulckly with them belng run remotely where posslble. Apprenliceshlp slarts were looking to Surpass th8 previous years lolal of 124 unlil Covld-19 hil in March, the total for 2020 finished 8197. We have been hll by some 8pprenllce redundancies sinco the year end bul have minlmised the impact by utllislng the ESFA speoial funding rules to conlinue training and galn allemative employment for the lèarners. The number of learners slartlng stand alonè NVQ'S pald directly by thelr employers decreased from 24 to 13 IhSs year, these also Started late in the y6ar due lo compani88 uncertalnty over Covid-19. Demand for the The Level 4 Higher Nation81 C8rtiflcale {HNC) In Engineering st411 continued to be strong th 15 commendng year one and 21 relurnlng lo complete year Iwo. This 15 a natural progr8ssion for Apprènllces after achieving the Level 3 National Certlflcale and is a full eommerclal ¢harg6 to employers. We are still looking to expand lo HND over the next Couple of years.
Stockport Englneerlng Tralning Assoclallon Llmitod Report of the Trustegs for the ear ended 31 Jul 2020 Flnancial Roview The principal funding sources for Sto¢kport Engineering Trainlng Association Ltd are re¢elv8d from the Educallons and Skills Funding Agency for Levy funded apprenticeships. Thls Is supplemented via eTnpIoy8r conlribulions. where they require Iralnlng over and above Ihe Iramework or the learner only qualifies lor part funding. The new Non-Lovy fun¢Jing system that was r818ased in January 2020 means that we are no longer reliant on our subcontract agreement wlth Eastl6igh College lo fund apprenlic8ships for small employers. Those leamers registered with Easlleigh will conllnue wlth them until complelton. This funding is supported by other training income being general8d through the charfty's subsidiary trading compariies. these allow us to operate in other markets Ihal would not n¢xma51y be accessible lo the charity. These include.. 11 Comrnerclal Englneering Training - Thls had an Increased budget for 202D of £240,000 and was on largel lo meet Ihls up until February 2020. Covid-19 ensured Ihls lirkished £86,000 down al the year end. 21 Héalth & Safely courses - Thls was £39,000 above budget to February 2020 b1 finlshed £55,000 under budgel. 3) Commercial NVQ training. 4) SETA Inlernallonal - On largel to achieve an incre8s8d budget up unltl February 2020 bul finished £50,000 under budget. All profi18 from the commercial Iralnlng are glft-aided back to the Charity to aid 11 In fulfilllng Its charitable aims, £13,688 has been glfl aSded In 2020.1£143,380 in 20191 The financial resuli for the period was a nel decrease in funds of £2,83712019 .' £60,Q481. Due lo the re- classili¢ation of Government Apprenticeship Income (See Note 21), reslrided funds decreased by £40,988 {2019'. decrease £8,018) and unreslricled funds increasect by £38,15112019'. decreased £52,030). Income decreased by £244,510 {£290,OOD down on budgell. this was purety down lo the impact of Covid-19, however after claiming £109,720 via the Governments CJRS furlough scheme, the nel impact on the accounts was a reduction of £134,790. We did. however, manage lo keep expendilufe under the original budget by £153,000 due lo cost saving measures. This had the result of miligaling thè impact of Covid to the small loss of £2,837. Our ctsnsolidaled balance sheet continues lo show a strong picture sin¢e the reflnance was completed in February 2016 with net Gurrent assets of £42,892 compared 19 £42,155 in 2019. Budgets have been sel for the next year a5.. Year 2021 Turnover £1,657,500 Expenditure £1,724,600 Covid-19 and the oconomic climate will still have an effect on the Charity achleving its objectives, due lo the nature of the buslness we operate bul we continue lo monllor the risks and impacts and adapt accordingly. Al th8 year end we had securèd a Coror)avirus Business Interuplion Loan facility ICBILS) of £120,000 10 pnsure SETA has enough capit81 lo survlve the pandemic. This had not beèn roqulred yel bul was drawn down on the 21st January 2021. The past few years has be$n a period of much change in the 8pprenll¢eship delivery area, including the move from Frameworks (which were fi'nally withdrawn on the 3151 July 20201 lo Standards and massiva changes In funding. We are in a strong poslllon Flloving forward with the delivery of Standards and, desplle Covid, hope lo see some stability coma back lo the area in the future.
Stockport Engineerln9 Tralnlng Assoclation Limlted Report of the Trustees for the ear ended 31 Jul 2020 Post Balanco Shagt Evonts The CBILS loan of £120.000 had been agreed by the bank on the 20th July 2020 but, largely due lo the fact that tralnlng picked up much fasleT th8n anllcipaled. had not been r8quired by the year end. The agreement was lo expire on the 20th January 2021 and so the loan was drawn down on Ihls dale even though 51 was sllll not required at Ihls Ilm8. During January and February 2021 11 bocame apparent that the main roof of the workshop was delgriorating faster than anlicipaled and running repalrs were no longer an option. Even though il was not included in the budget11 was agreed Ihat quotes would be collected for a full replacement and preparations made lo move ahead with this beforo July 2021. Quotes have bè8n rece5ved lo date In the reglon of £90,000 to £110,000 and we are just entering Iln81 negoli81ions. Rosorvos Policy ReseNes are needed lo brldgg Ihg gap between the spending and receiving of income and to cover unplanned emergency repalrs and other expenditure. Thè Iruslees wnsider Ihal the ideal level of reserves as at 31 sl July 2020 would equate to between 3 and 6 months of rton-course related ?xpendlture. Three months belng £341,000 based on 2020 levels. The trustees consider that Ihls lev81 of roserves would ensure that. glven a slgnificanl drop in fundlng, they woulé be able to contlnue the Chadlls current aclimties whilst allernale plans were implemented. The Charities total reserves were £532,208 as 8131st July 2020. The free res8rves. being those unreslrfcled funds not represented by fixed assets and their associ8lèd finance. were £87,324 al 31 sl July 20201£48,905 in 2019), an increase of £38.419.1£40,988 of Ihis increase was related lo th8 reclassifi¢allon of Governemnl AppTenlicehsip income Irom Restricted to Non-Reslricled - Note 21). Note that £44,109 of this finan Is repayable wlthln twelve months. We were In a strong poslllon lo improve this In 2020 but Covld-19 had a malor Impaol on Ihls. We do sllll alm to brlng thèse up to ideal level over the next five years. We conslstenlly plan and monitor the financial performance of the ¢harlty In order lo malnlain res6Ne levels by.. Setting Budgets Produclng Cash flows Produclng Monthly Management Accounts Selling Business Development Plan Investmants Hald The investments held by th8 charlly are sh8r6 capital held in it's two subsidiary companles: SETA Training and Advisory Services Llmiled held in order lo allow Ihe charity lo a¢c6ss olhsr commercial training to supplement il's Income. SETA Training (Cyprusl Limited - held In order to maintain our safel training presen¢8 in Cyprus when govemmenl policies changed and il would have be8n imposslble with a yprus registered company. Plans for future erlods Our futur8 p18ns are detailed in our business development plan. A Goncert&d effort Is b8ing made lo promote a15 SETA courses lo existing clSenls and members companies. Major fundlng changes Sn the Apprenticeship Levy should now sellle down and provlde Some stablllty In the sector. we are still on the front Ilne for any informatlon that is released and we wlll monllor the potential threats and opportunities that may arlse. Covid-19 wlll conllnue to impaGI the Assoclallon In Ihe future but we have contingency plans In place and will continue to adapt lo Ihe Changes requlr8d and maximise any funding asslslance that ¢an be accessed.
Stockport Englneerlng Tralnlng Association Llmlted Report of the Trustees for the ear ended 31 Jul 2020 Referenc8 and admlnistrative deta Company Numbgr.. 1512311 Charlty NUmr. 510493 Registered Offlco: 18 Hammond Avenue Whilehill Industrial Estate South Reddlsh Stockport SK4 1PQ Bankgrs The Royal Bank of Scotland PIC 1 Great Underbarnk Stockport SK1 1LN Auditors Lloyd Piggoll Limlled Chartered Accounlanls and Slalutory Auditors St George'8 House 56 Peter Stre81 Manchester M2 3NQ Dlrgctors and trusteos The directors of the Gharilable company {the charllyl are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end w8r8 as follows.. Mr R G Howarth (Chairman) Mr J R Moss (Treasurer) Dr Moray Kidd Mr N Carne- Appointed 15th June 2020 Company Secretary. Mr M C Field Key management personnèl: Chief Executive.. Flnan¢lal Director External Operations Dlrector Internal Operations Dlreclor Quallty Dlr8Ctor Mr R M Prince Mr M C Field Mrs J Bums Mr M Neild Mr L Johnson
stockport Englneering Tralnlng Assoclatlon Llmtted Report of the Trustees for the aar ended 31 Jul 2020 Structure Governance and Mana ment Governing Do¢ument The charity is controlled by Ils memorandum and articles ol assoclalion and constllutes a Ilmited cc)mpany, Ilmlled by guarantee as deemed by the Companies Act 2006. Rocrultment and AppoSntment of New Dlrectors and Trustees The Directors of the Company are elected annually 81 the Compartry's Annual General Meeting. Al each Annual General Mealing one third of Ihe Elected Board Members for th& tlme belng, or if Ihelr number Is not a muS1iple of 3 then the nearest one Ihlrd, retires from office. If there 15 only one Ele¢led Board Member who Is subject to r81ir8menl by roiallon, helshe retires. The Elected Board M8mbers who are to rellre In every year are IhDse who have been longest In offlce since their last election or appointmenl. bul as between person8 who became Elecl&d Board Mambers on the same day those lo retire lunl85s Ih&y otherwise agree among themselves) are deemod by lol. A retiring Board Member Is ellglble for retheleclion. but does not serve more than 3 consecutive 3 year terms or, In the case of an Officer. 2 consecutive 3 year terms. Each Trustee is elected and voted into office by the members and offlce of Chairman, Deputy and Treasurer similarly elected. rhe Assoclalion Is a member led organisalion and the Trustees ara mindful of meeting their needs. Currently there ar8 five Tnjslees. all holding non-execullve office and meet formally every four monlhs. Inductlon and Tralnlng of Dlroctors and Trustees New Dlreclors and Trustees are given Iralnln9 upon election, subjèttl to Ihelr exlsling skills and knowledge. A tailored programme of training takes place for each new Director and Trustee. 11 provldes trusteBs with suitable and sufficlenl help and guldance on how the Char¢ty works. Organlsational Structure Overall responsibility for the Charity's strategy and dlrecllon rests with the Board of M8nagemenl, which comprises all Dlreclors. The carfying out of day lo day 8¢1ivllles Is delegated lo the $18ff under the management of the Chief Executive. There are no specific glgniftcanl restrictions regar(Sing the way the Charlty cAn operate. The CharitSes decisions are ulllm8lely made by Ihe Board of Directors, there are bi-monthly meellngs when dlscusslons lake place and decisions are then flllered down lo the staff conGern8d by Ihelr line managers. Subsidiaries The Charity has Iwo Iradlng subsldiarles. SETA Tfftining & Advisory SeNlces Ltd and SETA Tralnlng {Cyprus} Ltd whose accounts are reported separately, and are Gorbsolidaled Into these accounts. Both these companles were set up to perform trading activitios to prgvide funds for the charlty. As staled in the notes SETA Training and Advisory Services Ltd made a profll of £13,688 before distributions and SETA Tralning (Cyprusl Limited a sniall loss of £519. Pay poll¢y for senior staff Decisions on management remuneralion levels are made by the Chtef Executive taking into acci)unl Ihe lob role, peer group salary evaluations, appraisols and advice from the Company Accountant. The Chlef Executives remuneration Is ultimately set by the Board.
Stockport Enginoering Tralning Asso¢latlon Limited Report of tho Trustees for the year ended 31 Jul 2020 Risk Management The TrLJsle¢s have a duly lo identify and revSew the risks lo which the Charity is exposed and lo ensure appropriate contro15 are in place lo provide reasonable assuran against fraud and error. The Board has carried out a review of the major risks lo whlch the Charity is exposed and has put In place controls and aclivilles lo miligale those risks which are wilhln their control lo influence. Trustees. res onsibilities in relatlon to the financial statements Tho Iruslees (who are also the dire¢lors of Stockport Engineering Tralnlng Association Limited for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally A¢cepled Accounting Praclicel. Company law requires the Iruslees to prepare financial slalements for each financial year which give a true and fair view of the slate of affairs of the ¢harllable company and the group and of the Incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing those financial slalernenls, the Iruslees are required to selvl sullable accounting Policies and then apply them consislenlly., observe the Tllelhods and principles In the Charity SORP., make judgements and eslimales that are reasonable and prudent; slate whether appllcable UK accounting standards have been followed, subject lo any material departures disclosed and explained in the linanclal stalemenls. prepare the flnancial 51alemenls on the going concern basis unless il is inappropriate lo presume that the charitable company will continue in buslness. The trustees are responsible for malntslnlng proper accounting records whlch dlsclose with reasonable accuracy al any lime the financial posllion of the charitable company and to enable them lo ensure that the flnancial statements comply with the Companies Act 2006. They are also responslble for safeguarding the assets of the charity and the group and hence for taking reasonabl8 steps for the prevention and detection of fraud and other irregularities. Statement as to dl closur6 to our auditors In so far as the ITuslees are aware al the lime of approving our Irustee8' annual report.. Ihere Is no relevant infomialion, being Information needed by the auditor In connection with pr8P8ring their report, of which the group's auditor is unaware, and • the Iruslees, having made enquiries of fellow directors and the group's audito¥ that they ought lo have individually taken. have each taken all steps that helshe is obliged lo take as a director in order to make themselves aware of any relevant audit infomi81ion and lo establish that the auditor is aware of that information. By r of the board of trustoes Mr. R G Howarth Chairman 15th Aprll 2021
Stockport Engino•rlng Tralnlng Associatlon Llmllod Report of thè Ind•pendont AuditOTS to tho Tru$tee5 of Stock ort En Ingfjrfn Tralnin Assoclatlon Llmlted We have audited the financial slalemenls of Stockport Englneering Training Associatlon Limlled (which comprises Ihe Group and Parent Charll8ble Company) for the year ended 31 July 2020 on pages 12 10 33. The financial reportlng framework that has been applied in their preparation is applicable law and United Klngdom Gengrally ACpted Accounllng Pracllce, induding Financial Reporting Siandard 102, Th6 Flnanclal Reporting Standard appllcable In the UK Ènd Republic of Ireland (Unlied Klngdom Generally Accepted Accounting Practic81. This report is made solely to the Group and Chorilable Company's Trustees, as a bgdy, in accordance with Sectlon 144 of the Charities Act 2011 and regulations made under Secllon 154 of that Act. Our audll work has been undertaken so that we miqht slate lo the charitable companls trustees those matters we are required to slate to them in an auditors, roport and for no other purpose. To the fullest extent pèrmilled by law, we do not ¢ept or assume r8sponsibility lo anyone other than the charitable company arid the charitable company's trustees as a body, for our audit work, for thls report, or for the opSnigns we have formed. Oplnlon on financlal statomonts In our opinlon the financial slalements.. give a true and fair view of the stale of the group and parent charitable company's affairs as B131 Juty 2020 and of its incoming resources and application of resources, including ils income and oxpendilure, for the year then ended., have been properfy prepared In accordanco with United Klngdom Generally Accepted Accounllng Practice.. and have been prepared in accordance with the roqulrements of Ihe CompanS88 Act 2006 and Charitles Act 2011. Basls of opinion We conducted our oudtt in accordance with Intarnalional Standards on Auditing IUKI I'ISAS (UK}°l and 8pplicable law. Our responsibilities under those standards are further described in the Auditors. responsibililles for the audit of the fln8ncI81 stslements section of our report. We are independent of the Group In accordance with the glhical requlrements that are relevanl to our audit of the financial statements In the UK, including the FRC'S Ethic81 Stsndard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufflclenl and appropriate lo provide a basls for our opinlon. Conclu$lons relating to golng conc8rn We have nolhlng lo report in respect of the following malters in relation lo whid) the ISAS IUKI require us to report lo you where.. The Trustees, use of the gDing concern basis of ac¢ounling in the PTeparation of the financial stalemenls Is nol appropriate: or The Trustees hav8 not disclosed in the finatsclal statements any identified Tnateri81 mal¢rlal uncertainties that may cast significant doubl about the Group and Parent Charitabla Companls abilty to continue lo adopt the going concern basis of accounllng for 2 period of al least twelve monlhs from the dale when the financial statements are aulhorised for Issue. othar Snlorniatlon The other Infom)alon ¢omprises the inform8tk)n induded in the annual r&port, other than the financl81 statements and our auditors, report thèraon. The Trustees ar8 responsible for the other information. Our opinion on the flnancl81 statements does not cover the other information and we do not oxpress any form of aS5urance concluslon Ihereon.
Stockport Engineerlng Tralnlng Assoclatlon Llmlt8d Roport of the Independent Auditors to the Trustees of Stock ort En ineerln Tralnl AStlatIOn Llmltéd In connection with our audll of the financial slalemenls, our responslblllty is lo read the other informallon and, in doing so, consider whether the olher infomiallon Is materially inconsislenl wlth the flnancial stsleTnents or our knowledge obtained in th6 audlt or olhernise appears lo be malerbally FFTriSStaled. If we identify sijch material incon$is18ncles or apparent materlal mlsstalem8nts. we are required to dèterwlne whether there Is material rnisslalemenl In the financial slalements or a malerlal mlsslalemenl of th& other Informallon. If, based on th6 work we have performed, w8 condude that there is a malerlal mlsstatgwwient of this other Information. we are requirad lo report that fact. We have nothlng lo rèport In Ihls regard. Oplnlons on other matters pr•scribod by thfj Companies Act 2006 In our opinion, based on th& work undertaken in the course of the audit.. the information given in the Trustees. Report, which includes the Directors. Report for the purposes of company law, for the flnancial year for which the financial slalemenls are prepared is conslslenl wllh the financial slalements; and the Directors, Report included within the Tru8te@s' Report h88 been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to r8POrt by exceptlon In the light of the knowledge and underst8ndlng of the group and ils envlronmenl oblained in the course of the audit, we have not Klentilied material misslalemenls within the Trustees, Report. We have nolhlng lo r6Wrt in respect of the following rnatters In relation to whlGh the Companies Act 2006 and thè Charllles Act 2011 requires us lo report lo you if, In our opinion.. adequate and proper accounting re¢ord8 have not been kept. or returns adoquat8 for our audll have not been recfjived from branches not visited by us., or the financlal Sialemenls are not in agreement with the accounting records and rglurns., or certain disclosures of Trustees, remuneration specified by law are not made.. or we have not r6eaivéd all the Information and explanallons w8 require for our audit.. or the Trustees were not enlill6d lo prepa the financial slalemenls In 8ccordance with the small companies. regime and lake advantage of the small companies, exemptions in preparing th8 Trustees, Report and from the requlremenl lo prepare a Strategic RGw>rt. Rèsponsibilities of Trustea$ As explained mor@ fully in the Trustees, responsibilities slalement, the Trustees, (who aré also the directors of the Charllabl& Company for Ihg purposes of company lawl are responslblo for the preparation of the flnanci21 slalemenls and for belng sallslied that they glve a true and fair view, and lor sijch internal control as the Trustees determine is necessary to enable the preparation of flnancial s1818ménls that are free from material rnisslat8menl, wheiher due lo fraud or error. In preparing the financial slalements, the Trustees are rasponslble for as8e5sing the Group and Charllablo Company's abillLy to continue as a going concern, disck)sing, as applicable, mallers relating lo going concern and using tha going ¢on¢ern basis of accounting unless the Trustees èither intend to Ilquidale the company or lo cease operations, or have no reallslic allernalive but to do so. 10
Stockport Englnagring Tralnlng Asso¢latlon Llmited Roport of the Indepondent Auditors to th& Trust00s of Stock ort En In99rln Tralnln A550¢iatlon Llmllod Audltor's responslbllltles for thg audlt of the financlal statements The Truslees have elected for the fin8ncial statements to btt audited In a¢¢ordance with the Charities Act 2011 rather than the Companles Act 2005. Accordingly, we hav8 been appointed as audblor under section 144 of the Charili6s Act 2011 and report In accordance with the Act and relevant regul81ions made or having offecl Ihereunder. Our objectlves are lo oblaln reasonable assurance about wh8ther the flnancial slalemenls as a whole arè frae from material misslatemenl, whether due lo fraud or error, and lo issue an audrtors, report that includes our oplnlon. Reasonable assurance Is a hlgh level of assurance, but is not a guarantee Ihal an audit ¢onductgd in accordance th ISA8 (UK} wlll always deleGt a maler6al mlsstatemanl when It exlsts. Mlsslalements can arise from fraud or error and are consldered material if. individually or In the aggregate, they could reasonably be expected lo Influen¢8 the economic decisions of users iaken on the basls of these flnanclal sla16ments. A further description of our responsibilities for the audit of the flnanclal slalemenls is located on the FSnancSal porting Council's web$ilè. This de9criilion forms part of our audilor8' report. Lloyd Iggott Liml Chartered Accountants and Statutory Auditor Sl Gèorye's House 56 Peter Street Manchester M2 3NQ Date.. 26th Ap.ril 2021
Stockport Engineerlng Training Associatlon Llmltod Consolidated Statement of Flnancial Activities Ilncorporatlng a Consolidated InGome and Expendlture Account) for the ear ended 31 Jul 2020 Unr•strtcted Restricted Funds Funds Totsl 2020 Total 2019 Notes INCOME Donalions arpd legacies Income fmm tradlng actlvltl•s 109.720 548,049 109,720 548,049 795,875 Inves1191 income 120 120 73 Income from charltablo a¢tlvltles.' 5 1,147.786 1,147,786 1,144,517 Total Incoma 1,805.675 1,805,675 1,940,465 EXPENDITURE Expendlturo on raising funds 551,950 551,950 746,698 Expendltur• on charitable actlvlll 7 1.256.562 1.256.562 1,253,815 Total Expenditure 1,808,512 1,808,512 2,000.513 NET INCOMEIIEXPENDITURE) Transfers between funds GalnsllLossesl on revaluation of Fixed Assets 12,8371 40,988 12,837) 160,048) (40,9881 Not movement of funds for th• yoar 38,151 {40,988} 2,837) 60,048 RECONCILIATION OF FUNDS Total funds brought foTward 494,057 40,988 535.045 595,093 Funds balances carrled forward 532,208 532.208 535.045 12
Stockport Englne•rlng Tralnlng Assoclatlon Limitod Consolldated Balance Shget as at 31 Jul 2020 Notas 2020 2019 FIXED ASSETS T8ngible assets 12 958,944 1,C>08,227 CURRENT ASSETS Stocks Debtors Cash al bank and In hand 14 15 9.451 263,014 163,074 435.539 13,753 394,444 44,244 452,441 CREDITORS Amounts falling due wllhln one year 16 1392,647} 1410,2861 NET CURRENT (LIABIUTIESIASSETS 42.892 42,155 TOTAL ASSETS LESS CURRENT LIABILITIES 1,001,836 1,050,382 CREDITORS Amounts falling due after more than one year 17 {469,628} 1515.337) NET ASSETS 2,208 535,045 FUNDS Restricted furHIs General funds 21 21 40.988 494,057 532,208 TOTAL FUNDS 532,208 535 045 13
Stockport Engineering Training Assoclatlon Llmlled Consolidated Balance Sheet as at 31 Jul 2020 The charitable company is enlilled lo exemption from audit under Secllon 477 of the Companies Act 2006 for the year ended 31 July 2020. The members have not deposited notice. pursuant to Section 476 of the Companles Act 2006 requiring an audit of these financial slalements. The Iruslees acknowledge Ihelr responslblllly for lal ensuring that the charitable company keeps accovnllng records that comply wllh Sectlons 386 and 387 of the Companies Act 2006.. and Ib) preparing financial st8lemenls which glve a true and fair vlew of the slate of affairs of the charitable company as 8t the end of ea¢h fbnancial year and of ils surplus or deficit for each rinancial year in a¢cordan¢e with the requirements of Section 394 and 395 and which olheTwise oomply with the requirements of any Companie8 Act 2006 relating lo financial statements. so far as appllcable lo the ¢h8rilable company. These financial slalements have been audlled under the requlremenls of secllon 144 of the Charib'es Act 2011. These flnanclal slalements have been prepared in accordance with the Companies Act 2006 ond wllh the Flnancial Reporting standard applicable in the UK and Republlc of Ireland IFRS 102}. The flnanclal slalemenls were approved by the board of Trustees on the 15th April 2021 and were signed ori ils behalf by.. Mr. R G Howarth Chalrman 14
Stockport Englneorlng Tralnlng Associatlon Llmitad Charity Balance Sheet as at 31 Jul 2020 Not•S 2020 2019 FIXED ASSETS Tanglble assets Inveslmenls 12 13 958,944 1,901 960,845 1.008,227 1,899 1,010,126 CURRENT ASSETS Debtors Cash al bank and in har 15 91,143 72,833 163,976 123,117 18.043 141,160 CREDITORS Amounts falling due within one year 16 (128,9781 1103,884) NET CURRENT (LIABILITIESIASSETS 34,998 37,276 TOTAL ASSETS LESS CURRENT UABIUTIES 995,843 1,047,402 CREDITORS Amounts falling due after more than one year 17 {469,828) 1515.337) NET ASSETS 526,215 532,065 FUNDS Restricted funds General funds 40,988 491,077 526,215 TOTAL FUNDS 526 215 532,065 15
Stockport Englneerlng Tralning Associatlon Llmltod Charity Balance Shoot as at 31 Jul 2020 The charitablfj company is enlilled lo exempllon from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2020. The members have not deposited notice, pursuant lo Secllon 476 of the Companies Act 2006 requiring an audil of these flnanclal slalemenls. The trustees acknowledge their responsibility for.. la} ensuring that the charitable ¢ompany keeps accounting records that comply with Sectlons 386 and 387 of the Companies Acl 2006., and Ibl preparing financial slalemonls which give a true and fair vlew of the slate of arfalrs of tho charitable company as al the end of each financlal year and of ils surplus or deficll for each financial year in accordance with the requlremenls of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relatlng lo flnanci81 statements, so far as appllcable lo the charitable ¢ompany. These financial slalements have been audited under the requirements of secllon 144 of the Charities Act 2011. These flnanclal slalements have been preparad in accordance wilh Ihg Companles Act 2006 and wllh the Flnancial Reporting Standard applicable in the UK and Republlc of Ireland {FRS 1021. The financial slalements were approved by the board of Trustees on the 15th Aprfl 2021 and were Signed on ils behalf by.. Mr. R G Howarth Chalrman 16
Stockport Englno•rlng Trglnlng A88oclatlon Umltsd stat•m•nt of Cash Flows and Consolldoted Statemont of Cash Flows for thg year ended 31 July 2020 Group 2020 Group 2019 Charlty 2020 Chartty 2019 Cash used In oporatlnu adlvltle$ 27 18 497 33,465 Cash flows from Invos¢lng a1VIll9& Interest Income Purchase of18ngible fixed 8sspts ¢a8h pro¥lded by (usèd Inl Invastlng actIleS 120 73 21.583 21,510 20.078 21,583 Cash flows from ttnanclng actlvlt88 Increase Irepaymentl of borrowing Cash used In flnanclng Bctlvlt85 45.709 45,709 49,435 49.435 Increas8llde¢reasel In cash and ¢Ash equivalent8 In the year Cash and cash equivalent5 al the beginning of the yèar Total ¢h and cash equlvalents at the &n of the yefir 118830 44.244 104410 148,654 14,520 18,043 17
Stockport Englneerlng Tralnlng Associafjon Llmlted Notes to tho Consolldated Accounts for the ear gnded 31 Jul 2020 ACCOUNTING POLICIES Basls ofprèp8ratlon of accounts The flnancial statements have beèn pfftpargd in accordance with AccounJng 8nd Rèporting by Charities: SlalBin8nl ol Recornrnended Pr2ctle6 applicable to charitles preparing thelr acctsunts in accordance wlth the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive January 20191- {Ch8rid8s SORP IFRS 102}I, the Financial Reporting Standard applicable in thè UK and Republic of Irfyland IFRS 102) and the Companlè8 Act 2006. stockport Engineoring Tralning Association LSmlled meets Ihp definiNon of a public benefit antlty undar FRS 102. Assets liabilllles arg initially CognIsd 81 historical cosl or Iransacllon value unle$$ olhenNlse stated In Ihg relevant accounting policy not81sl and with the exceptlon ol Investments which are IncludÉd at rnaikel value. Prèparatlon of the accounts on a 9olng concgrn basls The Trustee8 believe it is approprlat@ to prapare the accounls of the COFThpany on a goSng concem basi8. The COVID-19 pandemlc and the government's m8asures lo contain the vlrus havo no on the charity's P8rformance since March 2020. As ex lain8d in the Trustees, Annua 8tivaly impacted the use of the government's Coronavirus Job Retenllon Report, through Gheme, Coronavirus Business Interruption Loan Scherne, cost savlng measurgs and increased use of onlinè rèmot8 learning tools, the trustees have mili dots atgd this impact as best thèy can and are satisfied that there aro no material uncertaintses lo cast l over the charity's ablllty to continuo as a golng concem The charity 8180 receives part ol ils inEQtllB in Ihg foTTn of a contract from the Edu¢alion and Skills Fundlng Agency l Th8 ESFA l. In common wllh many funded charities, the adoption of thÈ golr concern basls Is dependent on the charily receiving 8d8qUate funding. The charlty currently has thi8 funding secured until 31 July 2021. While the Trustees recognise the uncertainties inherent in predlctlng the liming and level of future fvnding beyond Ihls dale, they b81Sèv& that adequate funding wlll be secured. 18
Stockport Enginoerlng Tralnlng Asso¢iation Llmlted Notos to thè Consolldated Accounts for tho ear ended 31 Jul 2020 Group flnanclal statèmènts The consolld8ted accounts incorporate th8 rgsults of Stockport EnginÈÈrlng Tralnlng Assoclallon Limited I'lhe Charity'l and Ils subsidlary undertakings- SETA Tralning & Advlsory Service8 Llmltéd and SETA T181n1 (Cyprusl Limited,. on a line-by-line basis. Tha consolidated entlty Is refgrred lo as 'lhe Group,. No sep8rale company Ststemenl of Financial Activities ISOFAI has bè8n prepared for the Charity as pemltted by sectson 408 of tha Companies Act Income Income is me wil ncluded jn I SOFA Wh the ch bè rèceive and the mount can g In¢om mb8bla that B measure Te ia y. Don are cognise tR fr value to Ihe charity when Il&y are reee5ved. No amounts are Included for services dona18 at lunleers. erily is enllllt P El Income comprise.. Donations and I6gacl8S L8¢18S Pecuniary legac8 are r¢¢ognlsed as receivable once probate has bèan granted and nolificatlon ha8 been recèived. Re8iduary legacies 8r6 recognlsed as receivable once probate has bèan granted, provided that suffiGient Inlormation has btrÈn recelved lo enable valuatlon of the Charivs entltl&m&nl. Don8tson$ Gift Aid Donallons are ?ccounl8d for as thèy are received. Gift Aid 1$ includèd basad on amounts recovered or recovarabla at the accounting date. Acllvitl88 for raising fund8 Momb&rshlp 8ubscrlpllon Membership subscription incomo Iwhlch Is not con8idtrréd to bè donaOnSI is accounted for on gn a¢¢rual basis. Engineering Ir81nlng Income from provlding training and ¢ourses are accounted for on an accrual b8sIs. S8f81y tl1ng Incorne from providlng tralnlng and course6 are accounttrd for on an accrua1 basis. Incorne from provldlng trBlning and ¢our8e8 are aooounted for on an ac¢wal basis. Schools training Inv8stment In¢omg Inveslmonl Incom8 Is accounted for on an accru81 ba818. Incom8 from charitable actSvilie8 Appr8nticg training- Govemmènt funded Appr6¥ntl¢e trainlng- Olher fund8d members seNices Gov8mmtsnl funding Is ro¢ognlsed when the Charity Is èntltled to receipt on an accrual basis. Income Is recognised wh8n the Charity is entltled lo receipt on an accrual basls. Incomè from providlng tralnitYJ and courses ar9 a¢counted for on an accrual basis. Government Grant In¢omè Coronavlrus Job Retentlon Scheme Fudough Incorne is claimed and accounlod for Fn the month that il relate$ lo. 19
Stockport Englnaaring Trainlng Assoclation Limited Notes to the Consolldated Accounts for the ear ended 31 July 2020 Expendlture and basls of allocatlon Exp8ndilure is accounted for an acGruals basis. Overheads and othèr costs not dir8Ctly attributsble lo artlcular charitable activity category are apportloned ovar the relevant on the basls of management es imates attnbutablg ts) that activity In the year, which18 c8lculaled as follows- min Staff Ti 2020 2019 Engineering training incom8 Safety and short rseS Apprentice tralnlng Non-Govgrnment funded apprentlcès Schools Training S6NiC8$ to members Gove¥nancè 15.4 49.1 12.9 26.4 33.0 17.3 15.9 14.3 ex en es 2020 2019 Engineering training Ineoma Apprenliog training Non-GovernFnenl funded apprentices Schools Training Services to mèmbers Governance 14.2 70.6 15.0 15.9 62.0 18.0 urse èx ens 2020 2019 Safely and short coutsfjs Apprentice training Non-Governm8nt fundèd 8pprenlices Sfjhools Tralning Servlces to mgmbers 97.6 100.0 Time 2020 2019 Engineering IrainSng income Safèly and short courses Apprentice tralnlng Non-Governm8nt funded appranticgs Schools Training Services to members Governanc& 72.0 16.3 11.3 Can 8an Dele ate Numbe 2020 2019 Engineering training income Safety and short courses ApprentSc& training 11.7 13.1 75.1 15.3 22.6 62.1 20
Stockport Englneorlng Tralnlng Assoclatlon Llmlted Notè$ to the Consolidated kGounts for the earended 31 Jul 2020 enses Fl 2020 2019 Engineering tr8lning Incomg S8f6ty and short courses Apprenlce Iraining-Gov9rnmènt fundad Apprenucg training-olher funded Schools Tralnlng S8rvlees to member8 Govemance 28.4 13.2 30.0 10.9 13.0 31.8 36.3 Govomance costs Gov&manc8 Costs compri888 thg gxpendllurè on governance of tha charlty Including audll fe88, legal advlcè for trustees, Costs of trustee meetlngs and an apportionment of relevant staff costs based on limg spènt on governanc&-relat8d matters. Loaslng and hlrg pur¢h4s0 ¢ommllmonts Assets held under financ6 leases and hire purchase Contracts are capilalised in tha b8lanc& sheet. Th8 assets are d8preci8l¢d over Ihelr expeclgd useful liv$s. Rentsls undar oporaling lejases are charged to the Btstemenl of financial a¢VItIeS as they lall due. Penslon costs The company op8ralps a defined conlribuliort pandon scheme for the pr88ent employ¥es. Contributions ar8 charged lo the SOFA as they become payable in accordance wSth Ihg rules of tho schemg Tanglb19 find asséts and d•prgcffatlon All flxed assets are h81d for charitable use and ar8 Stated 81 ¢ost18s8 depreciation wlth all repalrs wrlll6n off as occurred. Land and bulldings ar9 held at market valuÈ. Land and bulldiros are revalu@d rfjgularly to ensure the carrying value is not mal&rfally dlfferent from a falr value at the end of the repOrtIf period. Deprgcialion 15 provlded at rates Calculated to write off the c081 of tsngiblb fixed assets, less thoir estimalgd residual vAlue, over Iheir ex¢1 u$8ful1Sves on the followlng bases= Freehold Proparty Motor Vghicles Plant and Machinery Computer Equipmènt Offlce Equipment 2Vo Stralght Ilne 25% reducing balance 15°h reducing balance 20% stralght line 25% reducing balance Sloeks stock8 arè valued al the lower of c081 and net reallsable value, aftèr maklng due allowarKe for obsolel8 and slow moving Iterns. Investments Stjbsidlary companies are value(J al cost. wllh any resulting galns or10888s on exchango Includgd in the SOFA. 21
Stockport Englneering Training Assoclatlon Limlted Notes to the Consolldated Accounts for the ear ended 31 Jul 2020 Taxalio The activities of the Charlty 8r8 axèmpl fr¢>m ¢orporalion laxalion under secllon 505 of the Income and Corpordlckn T8X88 Act 1988 to the exlenl that they are applSed to the organisation's charflablo obj8¢livgS. The trading subsldlarfes do not generally pay UK corporatlon tax becausè their policy is to pay taxable profits as Gift Aid lo the Charity. Foreign tax Incurr8d by overs&as subsidiaries is charged as it Is incurred. Funds Unre81ricled funds ara funds whlch can be used in accordance wSlh the charthble otie¢ts al the discielion of th9 Iruslees. Restricted funds Bre funds whieh gre to bo used in accordance wllh specific reslrictions imposed by donors or which have bggn raised by the chadly for particular purposes. Th& cost of ralslng and 8dmirTrisl&ring such funds is charged against the specific fund. The airn and u88 of ¥e8lrict8d fund is s&t out in the notes lo the flnanclal statements. Investment incom8 and gains arè allocated lo the appropriate fvnd. Forelgn curr•ncle5 Transactions in foreign currencles are recordod al tho r818 of exchange prevailing at the date of th& Iransactlon. ForÈlgn eurrancy balances are translated into sterllng al the èxchange rates pr9vailing at the balance 8heet dale, Any resulling gains or losses on exchangg aro includgd in the SOFA. Profits and losses of foreign subsidiarfes are translated to slerfing at average rale8 of exchange. The openlng nel ass¢ls and profil and 1088 accounts of ihose subsidiaries are retranslated lo ye8r end rates., èxchange differences arising on the reiranslallon are taken to ieserves. D•btors Dgbtors are nom7ally recognised at their Iransactlon prfcè. provision for Bad Debts has been included for the year. Credltors and Provl8lons Cradltors and provisions are recognlsed where the charity has a pies8nl obllgauon resulting from a past evont that will probably result In the Iransfer of funds to a third party the amount due lo sellle the obligation can be measured or eslimat&d rall8bly. Cr8dilors and prowsions are normally recogni8ed al Ihelr settlement amount after allowing for any discounts due.
Stockport Engineerlng Tralning Assoclatlon Llmited Notes to the Consolidated Accounts for the earended 31 Jul 2020 FINANCIAL PERFOMANCE OF THE CHARIT The charity is a company limited by guarante8 and has no share capital. The Ilablllty of 8ach mèmber In the evenl of winding-up Is Ilmlled to £1. The Consolidated Statement of Financi81 A¢livill8s Is for the Group as a whole. Th8 figuras bèlow 8ra the equivalent figures for the Charily only, excludlng other Group ¢ompanles. 2020 2019 Income Gift akj from the sub8idlary company 999.262 13,688 764,257 143.380 1.012,950 907.e37 Expenditure on charSlable aclivitles Govèrnance costs GainsllLosse8} on revaluallon of Frxed Assot$ 1862.8641 1152,4131 1823,991} 1153.534} 1,015,277 977.525 Net movomènt In funds 12.327) 169,888) Total funds brought fo¥ward 528.542 598,430 Total funds carrled forward 526.215 528.542 Funds Roslricled funds Unrestricted fund8 40,988 487,554 526.215 52621S 528 542 DONATIONS AND LEGACIES Unrestrlcted Fundi Restrl¢t•d Funds 2020 Total 2019 Total Goveinmenl Grant Incom8 109,720 109,720 109 Y20 INCOME FROM OTHER TRADING ACTIVITIES Unr•strlctod Fund8 Re8trlcted Funds 2020 Total 2019 Total other trading 8ctlvltlg$ Membershlp subscrfptlons Englneering training incomo Safely and short courses 4,940 172,538 370,571 4,940 172,538 370.571 1,833 255,659 538,383 548.D49 548,049 795 875 Invotstmènt Incom• Interest on c89h dèposlts 120 120 73 23
Stockport Engineering Training Assoclatlon Llmited Note5 to the Consolidated Accounts for the ear ended 31 Jul 2020 INCOME FROM CHARITABLE ACTIVITIES Unrestflcted Funds Restriet¢d Funds 2020 Total 2019 Total Appreniice tralnlng-Govarnménl fvnd8d Apprèntice Iralning-olher funded Members servlces 917,469 220,717 9,600 917.469 220,717 9.600 826.700 271,301 4e,516 1.147,786 1,147 786 1 144517 EXPENDITURE ON RAISING FUNDS Unre6trlcted Fund¥ Restrlctod Funds 2020 Total 2019 Totsl Engineering Iralnlng Mèrkèling Staff costs Training costs Travel Premls69 ctssts Office and sundry costs DepreoiRlon 11,222 68,365 19,852 13.994 35.796 7,152 13,885 170266 11,222 68,365 19.852 13.994 35,796 7.152 13.885 170266 10,316 120,177 30,342 9,615 39,642 9,278 15,266 234,636 Safety and short Gourses Marketing Staff costs Training costs Travel Premises costs Offico and sundry costs Depreclatlon 9.270 188.265 112,098 28.722 16,849 18.133 8,547 9,270 188,265 112.098 28,722 16.64 18,133 8,547 42.026 205,785 177,958 38,653 14,427 26,282 8,931 381,684 512062 TOTAL 551,950 551,950 746 698 24
Stockport Englnaerlng Tralning Assoclatlon Limlted Notès to the Consolidated Accounts for tho ear onded 31 Jul 2020 EXPENDITURE ON CHARITABLE ACTIVITIES Unrestrlcted Fund8 R•strlcted Funds 2020 Total 2019 Total Apptsnllca trainlng-gov8rnm&nt funded Marketing Staff costs Training cost¥ Travel Pr8mlses costs Offico sundry costs Depreclauon 5,483 696.698 102,377 7,661 13,949 42.154 8,211 5.483 696.698 102,377 7.661 13,949 42,154 8,211 6,3B6 599,175 105,590 10.191 17,229 41,325 9.814 876.533 876,533 789,710 Appr8& Ir8lnlng-Oth6r fund8d Mad(eling Staff costs Trainlng ¢osl$ Travel Premises costs Office and sundry Costs Depreclatk)n 124,330 10,228 124,330 10,228 178,343 15,233 45.792 11.108 14.528 45,792 11,108 14.528 42,068 5.853 12,996 205 986 205,986 254,493 Membar s&rvices Markatlng staff costs Tfaining co818 Travel Premises costs Office and Sundry ¢o¥ls Depre¢lalion 2.597 137 2.597 137 27,634 2,707 1,836 1,775 1.487 1.836 1,775 1,487 7,213 1,585 3,043 7.832 Governan costs (r18 71 166,211 166,211 167.430 TOTAL 1,256.562 1,256 562 1.253,815 GOVERNANCE COSTS Unro8trlctod Funds Restrlcled Fund$ 2020 Totsl 2019 Totsl Markoling Staff costs Training costs Travel Premises co8t8 Offi¢e and sundry costs Depreclatlon 287 53,693 252 5,335 12,109 71,833 22,702 287 53,693 252 5,335 12,109 71,833 22.702 353 49.698 622 7,115 11,780 69,018 28,844 166211 166211 167430 25
Stockport Engin8ering Trainlng Association Limited Notes to the Consolldated Accounts for the ear ended 31 Jul 2020 NET RESOURCES EXPENDED BEFORE TRANSFERS 2020 2019 This Ss slated after chargSng: Dèpreclatlon Directors, remunerdlvjn Pension costs ALtdllors' rèmunerallon 69,361 61,939 34,224 78,894 63,117 34.479 10 TRUSTEES. REMUNERATION AND BENEFITS Total remun9ration paid to ¢ruslees' amounted Ig.. R.G Howarth J. R. Moss Total £750 £1.500 £2,250 12019 £1,500) 12019 £1,500) 12019 £3,000} ThiB has been agre8(I with the Charitie8 Ctsmmi85ion due lo the additional me Involved In b&lng a Director of the Trading subsidiary company SETA Training and Advisory Servic88 Llrniled Thero wore no trustees, exnseS or other benefrts for the yoar ended 31 July 2020 nor for ihe year enEled 31 July 2019. STAFF COSTS 2020 2019 staff costs during the year amounted lo.. Wagès and salarl&s Social security costs Pension costs 998,467 92.995 34,224 1,125.686 1,035,764 103,364 34,479 1,173,607 The BverBge numb&r of employees during the year, InGludlng full lime equivalgnls of part tim8 grnploy898, wa8.. Apprentice training"government funded Mèmbers seNces Enginoering Irainlng Safely and short courses Governance 10 fo 32 32 The employees perfomied training, administrative and management functions. The emoluments of one member of staff, including benefits in kind, 15 within the range £60,000 to £69,99912019 - One), not Including rellrernenl benefits whlch are acofuing und&r a mongy purcha scheme. Thg key rnanagement per80nrtel of th8 group eomprisè thos8 of thè charlty, bèlng th8 tmsteès. the chief executive and the company secretary. The total employ8e benefits of the key manag8m8nl per$onn¢l of the grtsyp w¢re £107,51312019.' £108,868). The number of employe8S to whom retirement benefits were accruing w8¥ 3712019.. 351 The above includes holiday pay accfual amounting lo £35,00612019 £20.704) 26
stockport Englneering Tralnlng A8soclation Llmlted Notes to thè Consolldated Accounts for the frar endad 31 Jul 2020 12 TANGIBLE FIXED ASSETS Land and bulldlng8 Plant and m8chlnory etc Motor vohlclgs Total Co$1 or valuatlr>n Al 1 August 2019 Addlllon$ Dlsposals At 31 July 2020 850,000 690,447 20,078 403.159 307 366 226,432 1,766,879 20,078 403,159 1383 798 850,000 226,432 DeprecSatlon At 1 August 2019 Charge for the year On di8po8al8 At 31 July 2020 34.000 17,000 605,47g 25.546 403,159 227 866 119,173 26,815 758.652 69.361 403,159 145988 Net book value At 31 July 2020 799.000 At 31 July 2019 816000 107 259 1.008.227 All fixed assèts h8ld are used for dlrecl charitable PUTposes. Except under an order of th6 roglstrar, no deposition by th8 proprietor of the land is lo be regisleTed wllhout the consent of the proprietor of the Charge in favour of thè Royal Bank of Scotland Plc. referred to in the Ch8rg8s R89iSter. If the freehold land and building had not been revalued they would have been Included at tho following historical cost.. 2020 Cost Aggrggate depredatlon 702,6 1230,395) Al 31 July 2020 Freehold land anil bulldlngs were valuod on an open market basis al July 2017 by Roberts & Roberts SuNgyors. Cost OT valuation at 31 July 2020 Is repTes8nled by: Land And Bulldlngts Cosl Valuation Valuatlon Valuatlon 542.323 640,000 1420.000} 87,677 At 31 July 2020 850,000 27
stockport Engineering Tralnlng Association Llmited Notes to the Consolidated Accounts for the ear endèd 31 Jul 2020 13 INVESTMENTS Unllsted Investment Cost At 1 August 2019 MoveTnenl 1,B99 At 31 July 2020 Net book valu• 31 July 2020 31 July 2019 1,901 1.899 The company'$ investments at Ihe balBnc& shggt dale in the share capltal of compani83 include the followlng.. Country of Incorporatlon England Cyprus England Class of Shar•s Ordinary Ordinary Ordlnary Subsldlary Und•rtaklng SETA Tralning and Advisory Sèrvices Limited SETA Trainlng (Cyprusl Llmiled SETA Int8m8tional Lirnilod Yts Held 1000 100% 99.8°ID SETA Tr41nlng and A(Ivlsory S•rvlc88 Limlted Ilncorporalad in England and Wales) Nature of busin69s.' Providing training for people erllployed or intending lo b6 8mploy8d In irKluslry and commerce. Class of shares.. Ordinary shares of £1 each holdlng 100.00 Company Number.. 03001863 2020 2019 Turnover Cost of sales and admlnlslratlon wsls Inleresl rocelv8ble Inlgrest payable Tax 746,174 1732,8021 11 1,161,789 {1.016,992 69 Net Profll 144,866 Amount gift aided tr) the Ehawty {13.e881 1143.3801 Rotalned in $ubsSdlary 28
stockport Engineerlng Training Assoclatlon Llmlted Notas to the Consolldated knounts for tho ear ended 31 Jul 2020 SETA Tralnlng {Cyprusl Llmlted Ilncorpoiat6d In Cyprus) Nature of business.. Providing heallh and 8afgty Coufses industry and commerce. Class tsf shares.. Ordinary shares of £168ch holdSng 100.00 Company Nurnbsr.. 224453 2020 2019 Aggregate capitsl and reserves ProfiVILo88I for the perlod 5,594 519 6,102 The consolidatèd 8tatèmenl of financial aclivitios Includes the re8uIts of the charivs wholly ownod 8ubsldiarl$8. The summary finan¢¢al perfomance of SETA Training (Cyprusl Limited alona Is.. 2020 2019 Tumover Cost of sales and adminlstralion co$18 Interest re¢eSvabla Corporallon Tax 12.750 (13,0411 72,943 163.0651 {2281 N&t Profil 519 9.878 Amount gift 81dèd to the charity R¢tslnèd In subsldlary 519 SETA Iht•rnatlonal Llmlted Nature of bu8ine88'. 0(vmant Ilncorporaled In England and Wale$} Class of $hares= Ordinary 8hare5 of £1 each holdlng 99.80 Company Number.. 9992870 2020 AggTg9ale ¢apltal and resem8 ProflU(Lossl for the pèrtod 1,000 14 STOCK Gr<)up 2020 Group 2019 Charlty 2020 Ch•ilty 2019 Centre rnalerials Prolactlva clothing ond equlpmenl R8gistrallon8 Canteen stationery Cleaning Malgrials Maintenance Materials course Books 6,1 7,040 1,627 4.068 390 1.142 1.115 842 602 29
Stockport Engineerlng Tralnlng Association Llmited Notes to the Consolidated Account8 for the oargnd&d 31 Jul 2020 15 DEBTORS Group 2020 Group 2019 Charlty 2020 Charlty 20qg Trade d6btors Govemmenl fundlng recèlv8bl¢ Amounts du¢ from Group undertakings 129,985 53.600 261,480 49,416 7,452 53,600 11.125 49,416 4.411 50,500 Other tax68 and 80cial Securlly costs Prepayments and accmed in¢omg Oiher debtors 9,172 9,109 7,399 91.143 1,957 1,656 8,4fj3 123117 71.625 7,804 263.014 74.680 8,868 394,444 On 4th December 1997 the d1ClOr$ of th8 charity 6xeculed a first lègal charge over tho Lx)ok debts of the wholly owned subsidiary company. The loan to thè $ubsidiary company Is the suble¢l of a lorm81 loan agement beeen Slself and th¢ Charlly dated 4th December 1997 and which is subjectto the following.. al Interest is to ba eh8rge¢f al 1Y¢ over bank base rate and the loan Is 8acured by a fixed charga over book and olh8r debts of the wholly owned subsidiary Company. bl The loan is lo bg renegotiated In the Intèrèsts of the Charily each year and shall bg Tepayable to th8 Charity on Ihe 3181 July each yoar. 16 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Gr<>up 2020 2019 Charlty 2020 Charlty 2019 ank loan Isecured Bank overdraft Isecuredl Trdde credltors Obliggtions undgr fftnance lease and hire purchase contracts Accruals and deferred Income 22,414 18,513 22,414 18,513 51.886 35,432 17,932 4.074 21,695 248,591 29,225 277,046 21,695 36.055 29.225 24,808 Other taxes and social securlty costs Other creditors 40,652 9,409 392,647 46,205 3,865 410,286 22.673 8,209 128,978 24,599 2,665 103,884 30
Stockport Englneering Tralnlng Assoclatlon Llmlted Notes to the Consolldated Accounts for the ear ended 31 Jul 2020 17 CREDITORS.. AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group Group 2020 2019 Ch8rlty 2020 Chartty 2019 Bank loan Isecur8dl Obligations under finance lease and hire pur¢hase contracts 463.770 487,785 463.770 487,785 5,858 489,628 27,552 515337 5,858 469.628 27,552 515337 1 year8 More than S years 133,267 336,361 469 628 145,470 369,867 515,337 133.267 336,361 469.628 145.470 369.8fj7 515 337 18 SECURITY On 29 April 2(K)2 thè dlraolors of the charity executed a fir81 legal charge ovar the book debts of the wholly owned subsldS8ry company. Th8 bank108n and overdraft is secured by a legal ¢harg& over the freehold propety oflhe company. 19 Dtsforred Income Defe8 Income ¢omprlsos advanced sal•$ for ¢ovrsè8, qu8rtèrfy membership and monltorlng which are carried out Post year ond. Group 2020 Charlty 2019 Balance as at 1 August 2019 196.754 13S,323 Amount released lo Incomè eamed from charitablg activitie5 1196.7541 1135,323) Amount deferred as at 31 July 2020 169,912 196,754 20 CALLED UP SHARE CAPITAL SETA Tralnlng & AdvS80ry Strvl¢•$ Llmlted Alloled, Éssued and lulty pald.. 2020 2019 Cl8SS'. Nominal value.. Ordlnary 1.000 SETA Tralnlrhg (Cyprusl Limlt4d Alloted, Issued and lully pal(l.. 2020 2019 Cl8SS'. Nominal value.. Ordlnary 901 899 31
Stockport Enginoorlng Training Association Llmited Notes to the Consolidated Accounts forthe ear gndod 31 Jul 2020 21 FUNDS- GROUP Unrestrlcted Funds Rastrlcted Funds Total Tangible fixed assets Nel current Iliabi11ti88ya8S818 Deferred IlabllltÉes 917,601 41,343 42,892 958,944 42,892 469,628 532 208 469.628 447.973 Balanc• at 1-Aug-2019 Income Expenses Transfers Balanct 31 July 2020 Restricted lunds Apprenilce ¢raining-9ovfyrnmenl fund Loan stock 40,988 140,9881 Unr8slrictgd funds General resorvè Revaluation reserve L08n 81ock 164,065 329.992 1,805,675 {1.808,5121 43,941 12,9531 205,169 327,039 494 057 1805 675 1.808,512 532,208 TOTAL 635.045 1 805 675 1808512 532 208 Name of Fund Descrtption, nature and purposes of Ihe fund Ggnerol reserve The Yree reserves, 8ft8r ollowing for all das1gftat funds. Rovaluatlon re86Ne The value of freeho propèrty al markèt value in exces8 of Carrylng value al hl8lor(cal cost. Apprentic& tralning-govèmm8nl fund Th8"surplus" on government funded apprentices related lo all learnèrs stlll "In lèarnlng. al the year end where restllclions may apply to the funding until complètion of tha 8pprènllcÈship. The Charfty hav6 rèviewed the Irealmgnl of Government funded Apprenllceship income in ihe year. The tsuIcorn8 of the review was that the Sncome Is now reealved under a Gonlracl basis rather than grant income 8nd. 88 such. 8hould not b8 treated as Reslricled income. Thè way thls lundlng Is now r6celved rernoves the potentlal for'Clawback5" Irorn Ihg ESFA. The Iran8fer between lunds relates to the removal of thé 8bovè funds frorn restficled income. Operatlng Leases 2020 2019 Wlthln one year Betwegn ttvo and five years 12,645 15,390 12,645 28,035 40.680 23 RELATED PARTY TRANSACTIONS There WBS no r6lat8d p8ty trangacllons In thè p9ri0d. 32
StoGkport Engineerlng Training Assoclatlon Llmiled Notes to the Consolidatgd Accounts for the ear anded 31 Jul 2020 24 ULTIMATE CONTROLLING PARTY There wa8 no ulllmalo ¢onlrollSng party during the year und6r review or the preceding year. 2S RECRUITMENT OF TRUSTEES Whan récruiting new Twstegs sevgr81 factors ar8 taken into account Includlng thè dlveislly of the prèsént Board, currènt sklll gaps on thè Board. curwnl Qmployer represerrtation. RècomendBtlons may be made by the Chief Execullv8 bul th6 ullimale declslon must be madg by the gxlsllng Board. 26 MANAGEMENT REMUNERATION Deci8ions on managment remuneration lgvèls arè made by the Chief Executive tsklng Into account tha job role, potrr group salary evaluations. appraI8815 and advlce frorn the Company Accountant. The Chief Executives remunerg1Son Is ultlmately set by th8 Board. 27 RECONCIUATION OF NET MOVEMENT IN FUND5 TO NET CASH FLOW FROM OPERATING ACTIVITIES Group 2020 Group 2019 Charlty 2020 Charlty 2019 Nel movomant In funds Add back depreciation chargg Less profil on disposal of FA Add back IGalnsyLosse8 on revaluation of Fixed Asset$ Movement in Inveslm¢nls D8duct interest income shown in Investing aclivititsg D8croase linereasel In stock D&crease lincreasel in debtor8 Increase Idecrea8el in crgditors 12.8371 69,361 160,0481 78,894 {2,3271 69,361 169,8881 78,894 {21 {71 {1201 4.302 131.430 17,639 184,497 {731 13.3011 1110,2041 61,267 33,465 {31 131 31,974 25,094 124.097 84,303 125,807 67,492 33