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2023-07-31-accounts

Stockport Engineering Training Association Limited (A company limited by guarantee)

Report of the Trustees and Consolidated Financial Statements

For the year ended 30 July 2023

Company Number 1512311

Registered Charity in England no 510493

Stockport Engineering Training Association Limited Report and Consolidated Accounts Contents

Page
Report of the trustees 1 - 7
Report of the independent auditors 8 - 10
Consolidated statement of financial activities 11
Consolidated balance sheet 12 - 13
Charity balance sheet 14 - 15
Statement of Cash Flows and Consolidated Statement of Cash Flows 16
Notes forming part of the financial statements 17 - 30

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 30th July 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Chairs Report

It has been a most difficult year for the business, following the failed OFSTED inspection as noted in the report for last year. The inspection took place in September 2022 an appeal against the Inadequate grading was unsuccessful in December 2022 and subsequently the ESFA apprenticeship funding ceased in March 2023. Up to this time there were two major initiatives in respect of the apprentice training; to ensure that the apprentices were least affected by the pending changes whilst under the Stockport Engineering Training Association (SETA) contract and to seek ongoing alternative provision with minimum disruption. The board is pleased to announce that after examining several options, agreement was reached with a privately owned business, Elevated Knowledge Ltd (EKL) to take over our contract and transfer virtually all the apprentices under their tuition. Almost all the SETA staff transferred employment to EKL who also signed a lease agreement to continue in the training centre premises from March 2023.

This has seen the demise of apprentice training under SETA contract in the organisation which commenced in 1966, however apprentice training is still very active in the intended purpose of the premises, under EKL contract, and contributing rental income to the business.

The subsidiary organisation SETA Training and Advisory Services (SETA H&S) has continued in business delivering its portfolio of Safety related courses across national standards. The staff members dedicated to this part of the business continue to be employed by the company. However, after extensive review the development of the international arm or this business has been discontinued in the year and we ceased that market in May 2023.

The consequence of this reorganisation resulted in the only loss of staff and redundancy of the Chief Executive.

In summary the trading for the year has been totally different than set out in the business plan, and the result of £63K Deficit has been achieved despite unforeseen costs and income streams. It can be reported that at the later part of the year there is reason for optimism in terms of financial performance going forward with current operation and organisation structure.

I thank our stakeholders, Board Members, Senior Management Team and all the hardworking staff who have had an extremely difficult year and accepted enforced changes to ensure continuation of the business who make it a privilege to chair SETA. We also look forward to the continued cooperation and support to EKL to provide the education training and support to clients and employees.

Our purpose and activities

The principal objective of the Charity is to maintain, improve and advance education by promoting the training and education for employed people and those intending to be employed in industry and commerce as shown in the Memorandum and Articles of the Association.

The Charity does not carry out significant fundraising activities, the main income for the Charity was via Government funded Apprenticeship training (until March 2023) and then subsequently by the provision of specialised training centre facilities which is supported by commercial training activities.

1

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

Public Benefit

The Trustees confirm that they have, when and where necessary to do so, paid regard to the Charity Commissioner’s Guidance on Public Benefit when considering and making its decisions.

SETA is ideally placed to offer its services to the whole of the Greater Manchester and surrounding catchment area.

Membership

We currently have 19 member companies.

Apprentice Training

The number of apprentice starts for the year continued to recover after the Covid-19 pandemic for both Levy and non-Levy funded apprentices in the year.

Apprentice Training was one of the Charity's main sources of income but, as mentioned in the Chairmans report above, The OFSTED result has forced us to discontinue this type of training. The Charity continues to support its Charitable aims by providing specialised training centre facilities.

Non-Charitable Activities

These are done to support charitable activities and to provide members with services required.

Adult Engineering Training

Adult Skills programmes tailored to suit the employing company's needs continue to grow in today's environment of multi-skilled workforces were provided up until the transfer of provision to Elevated Knowledge. After this date the provision of Engineering training became impossible and was discontinued.

Safety and Short Courses

Health, safety and environment related courses for industry and commerce are in constant demand throughout the UK.

As mentioned in the Chairmans report, as part of the restructure after OFSTED, International delivery was reviewed in the year and was deemed to not to be cost effective and was discontinued in May 2023.

2

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

Achievements and Performance

2022/23 continued to see an improvement on Apprentice starts and we also saw a resurgence in commercial courses. An increased budget was set from the previous year.

Commercial courses continued to pick up and all departments were exceeding their budgets for the year.

The impact of the OFSTED inspection resulted in the Charity discontinuing Apprenticehsip and Engineering Training.

Safety and Short Course delivery continued to perform well for the whole year and grew by 6%.

Financial Review

SETA underwent an Ofsted inspection from 13-16 September 2022 and due to some of the findings during the inspection they assessed the overall effectiveness of SETA as unsatisfactory. Despite disagreeing with some of the points made we were not successful in changing the grading and on 9 November 2022 the report was made public.

As per apprenticeship funding rules for main providers, the Education and Skills Funding Agency (ESFA) indicated their intention to terminate their contract with SETA and to remove us from the Register of Apprenticeship Training Providers (RoATP). SETA appealed this decision by submitting a mitigation case to the ESFA but on 7 December 2022 the ESFA notified us that the appeal had been unsuccessful and of their intention to remove SETA's apprenticeship delivery as from 7 March 2023.

We had been informed that we would be allowed a "run-out" contract for any learners where the employer still wanted SETA to complete their apprenticeship. On 19 December we were then informed that the ESFA's stance had changed and this was no longer an option, subsequently all learners must be removed as from 7 March 2023.

ESFA funding amounted to 47% of income levels in 2022 plus additional training linked to apprentice training.

The Main Board and Operational Board explored all the options available to them to ensure:

An agreement was made that as from 1 March 2023, SETA would transfer all apprentices and commercial engineering training courses to a local training provider (Elevated Knowledge Limited). As part of the agreement they would lease a large proportion of SETA's training centre and take over the majority of staff and equipment.

This would allow SETA to continue to support its Charitable aims of still assisting the advancement of education whilst it concentrated on the delivery of Health and Safety training.

The principal funding sources for Stockport Engineering Training Association Ltd was received from the Educations and Skills Funding Agency for funded apprenticeships. This was supplemented via employer contributions, where they require training over and above the framework/Standard or the learner only qualifies for part funding. This area was blocked by the OFSTED grading and resulted in income dropping by £360,000 to £700,000.

3

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

This funding was supported by other training income being generated through the charity's subsidiary trading companies, these allow us to operate in other markets that would not normally be accessible to the charity. These include:

1) Commercial Engineering Training - This had an increased budget for 2023 of £215,000 and , despite being dicontinued in February 2023, finished on £190,000 for the year

2) Health & Safety courses - This also had a increased budget of £405,000 and, despite the impact of OFSTED ony finished £30,000 under budget.

3) Commercial NVQ training.

4) SETA International - This had a budget of £110,000 and finished on £99,000. Costs of delivery were deemed to be impactical to continue and the training was disconitinued in the year.

All profits from the commercial training were gift-aided back to the Charity to aid it in fulfilling its charitable aims, £150,063 has been gift aided in 2023 (£185,288 in 2022).

The financial result for the period was a net deficit in funds of £62,774 (2022: deficit £43,939). Continuing operations resulted in a net deficit of £17,063 (£124,502 deficit in 2022) and discontinued operation resulted in a net deficit of £45,711 (£80,563 gain in 2022).

Continued operations Income increased by £107,141, discontinued operation income dropped by £351,814.

The effect is that our consolidated balance sheet still shows a positive picture with net current assets of £24,699 compared to £53,737 (2022) and total funds of £1,004,775 compared to £1,067,549 (2022).

Budgets had been set for the next year as: Year 2024 Turnover £582,500 Expenditure £543,192

Reserves Policy

Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. The trustees consider that the ideal level of reserves as at July 2023 would equate to between 3 and 6 months of non-course related expenditure. Three months being £77,000 based on 2023 levels. The trustees consider that this level of reserves would ensure that, given a significant drop in funding, they would be able to continue the Charity's current activities whilst alternate plans were implemented.

The Charities total reserves were £1,004,775 as at 31 July 2023. The free reserves, being those unrestricted funds not represented by fixed assets and their associated finance, were (£11,980) at 31 July 2023 ((£989) in 2022), a decrease of £10,991.

We aim to bring these up to an ideal level over the next five years.

We consistently plan and monitor the financial performance of the charity in order to maintain reserve levels by:

Investments Held

The investments held by the charity are share capital held in its two subsidiary companies:

4

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

Plans for future periods

Our future plans are detailed in our business development plan. A concerted effort is being made to promote all SETA courses to existing clients and member companies.

Plans now include concentrating on commercial income along with rental of the training centre to further our charitable aims.

Reference and administrative details

Company Number: 1512311

Charity Number: 510493

Registered Office:

18 Hammond Avenue Whitehill Industrial Estate South Reddish Stockport SK4 1PQ

Bankers

The Royal Bank of Scotland Plc 1 Great Underbank Stockport SK1 1LN

Auditors

DJH Mitten Clarke Audit Limited Chartered Accountants and Statutory Auditors St George’s House 56 Peter Street Manchester M2 3NQ

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of Charity Law. The trustees and officers serving during the year and since the year end were as follows:

Mr R G Howarth (Chairman) Mr J R Moss (Treasurer) Dr Moray Kidd - appointment terminated 28 December 2022 Mr N Carne - appointment terminated 28 December 2022

Company Secretary: Mr M C Field

Key management personnel:

Chief Executive Mr R M Prince (employment ceased 31 May 2023) Financial Director Mr M C Field

5

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

Structure, Governance and Management

Governing Document

The charity is controlled by its memorandum and articles of association and constitutes a limited company, limited by guarantee as deemed by the Companies Act 2006.

Recruitment and Appointment of New Directors and Trustees

The Directors of the Company are elected annually at the Company's Annual General Meeting. At each Annual General Meeting one third of the Elected Board Members for the time being, or if their number is not a multiple of three then the nearest one third, retires from office. If there is only one Elected Board Member who is subject to retirement by rotation, he/she retires. The Elected Board Members who are to retire in every year are those who have been longest in office since their last election or appointment, but as between persons who became Elected Board Members on the same day those to retire (unless they otherwise agree among themselves) are deemed by lot. A retiring Board Member is eligible for re-election, but does not serve more than three consecutive three year terms or, in the case of an Officer, two consecutive three year terms. Each Trustee is elected and voted into office by the members and office of Chairman, Deputy and Treasurer similarly elected. The Association is a member led organisation and the Trustees are mindful of meeting their needs. Currently there are five Trustees, all holding non-executive office and meet formally every four

Induction and Training of Directors and Trustees

New Directors and Trustees are given training upon election, subject to their existing skills and knowledge. A tailored programme of training takes place for each new Director and Trustee. It provides trustees with suitable and sufficient help and guidance on how the Charity works.

Organisational Structure

Overall responsibility for the Charity's strategy and direction rests with the Board of Management, which comprises all Directors. The carrying out of day to day activities is delegated to the staff under the management of the Financial Director. There are no specific significant restrictions regarding the way the Charity can operate.

The Charity's decisions are ultimately made by the Board of Directors, there are bi-monthly meetings when discussions take place and decisions are then filtered down to the staff concerned by their line managers.

Subsidiaries

The Charity has two trading subsidiaries, SETA Training & Advisory Services Ltd and SETA Training (Cyprus) Ltd whose accounts are reported separately, and are consolidated into these accounts.

Both these companies were set up to perform trading activities to provide funds for the charity. As stated in the notes SETA TrainTrain ing andand Advisory ServicesAdvisory Services Ltdmademadea profita profitof £75of £149,612 beforeand SETA Trainingdistribution(Cypru s )andLimitedSETAa loss of £4,433.Training (Cyprus) Limited a small loss of £142.

Pay policy for senior staff

Decisions on management remuneration levels are made by the Board.

6

Stockport Engineering Training Association Limited Report of the Trustees for the year ended 30 July 2023

Risk Management

The Trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The Board has carried out a review of the major risks to which the Charity is exposed and has put in place controls and activities to mitigate those risks which are within their control to influence.

Trustees' responsibilities in relation to the financial statements

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

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and 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 statements, the trustees are required to

• observe the methods and principles in the Charity SORP;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

●there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware, and

●the trustees, having made enquiries of fellow directors and the group’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

By order of the Board of Trustees

Mr. R G Howarth Chairman

Date: 24th April 2024

7

Stockport Engineering Training Association Limited Report of the Independent Auditors to the Trustees of Stockport Engineering Training Association Limited

Opinion

We have audited the financial statements of Stockport Engineering Training Association Limited (which comprises the Group and Parent Charitable Company) for the year ended 30 July 2023 which comprise the consolidated statement of financial activities, the consolidated and charity balance sheet, the consolidated and charity statement of cashflows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

· give a true and fair view of the state of the group and parent charitable company’s affairs as at 30 July 2023 and of its incoming resources and application of resources 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 and Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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, including the trustees' report, other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

8

Stockport Engineering Training Association Limited Report of the Independent Auditors to the Trustees of Stockport Engineering Training Association Limited

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material 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.

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement, the trustees’ (who are also the directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Group and Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

9

Stockport Engineering Training Association Limited Report of the Independent Auditors to the Trustees of Stockport Engineering Training Association Limited

In preparation for our audit we identified areas of laws and regulations which we considered could have a material effect on the financial statements. This information was obtained via discussions with management and from our general commercial and sector experience.The trustees also provide us with written representation of all the key and fundamental industry specific laws and regulations with they are required to adhere to. These were then communicated to the whole of the audit team at our audit planning meeting.

As a charitable company providing training and education, non-compliance with the Charities Act 2011, Companies Act 2006 and industry specific regulations of Ofsted and the Education & Skills Funding Agency were assessed to be most relevant. Our audit procedures to respond to these risks included:

Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor's report.

Use of our report

This report is made solely to the Group and Charitable Company’s trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

DJH Mitten Clarke Audit Limited Chartered Accountants and Statutory Auditors St George’s House 56 Peter Street Manchester M2 3NQ

Date: 25/04/2024

10

Stockport Engineering Training Association Limited Consolidated Statement of Financial Activities (Incorporating a Consolidated Income and Expenditure Account) for the year ended 30 July 2023

Notes
INCOME
Donations and legacies
3
Income from trading activities
4
Investment income
4
Income from charitable activities:
5
Total income
EXPENDITURE
Expenditure on raising funds
6
Expenditure on charitable activities
7
Total Expenditure
NET EXPENDITURE
Gains/(Losses) on revaluation of Fixed Assets
Net movement of funds for the year
RECONCILIATION OF FUNDS
Total funds brought forward
Funds balances carried forward		 Unrestricted Unrestricted Unrestricted Unrestricted
Continuing Discontinued
operations
operations
£
£		 Total
2023
£		 Continuing Discontinued
operations
operations
(as restated) (as restated)
£
£		 Total
2022
£
-
511,682
596
85,563
597,841
415,703
199,201
614,904
(17,063)
-
(17,063)
(17,063)		 -
246,664
-
699,818
946,482
198,436
793,757
992,193
(45,711)
(45,711)
(45,711)		 -
758,346
596
785,381		 7,621
483,005
74
-
490,700
453,487
161,715
615,202
(124,502)
155,000
30,498
30,498		 -
239,141
-
1,059,155
1,298,296
224,030
993,703
1,217,733
80,563
80,563
80,563		 7,621
722,146
74
1,059,155
1,544,323 1,788,996
614,139
992,958		 677,517
1,155,418
1,607,097 1,832,935
(62,774)
-		 (43,939)
155,000
(62,774) 111,061
1,067,549 956,488
1,004,775 1,067,549

11

Stockport Engineering Training Association Limited Consolidated Balance Sheet as at 30 July 2023

Notes
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Stocks
14
Debtors
15
Cash at bank and in hand
CREDITORS
Amounts falling due within one
year
16
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT LIABILITIES
CREDITORS
Amounts falling due after more
than one year
17
NET ASSETS
FUNDS
General funds
20
TOTAL FUNDS		 2023
£
1,444,286
2,950
224,642
80,692
308,284
(283,585)
24,699
1,468,985
(464,210)
1,004,775
1,004,775
1,004,775		 2022
£
1,521,043
20,942
326,227
155,526
502,695
(445,978)
56,717
1,577,760
(510,211)
1,067,549
1,067,549
1,067,549		 2022
£
1,521,043
20,942
326,227
155,526
502,695
(445,978)
56,717
1,577,760
(510,211)
1,067,549
1,067,549
1,067,549
1,577,760
(510,211)
1,067,549
1,067,549
1,067,549

12

Stockport Engineering Training Association Limited Consolidated Balance Sheet as at 30 July 2023

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 July 2023

.

The directors acknowledge their responsibilities for: The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibility for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006; and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Section 394 and 395 and which otherwise comply with the requirements of any Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of section 144 of the Charities Act 2011.

These financial statements have been prepared in accordance with the Companies Act 2006 and with the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements were approved by the board of Trustees on 24th April 2024 and were signed on its behalf by:

Mr. R G Howarth Chairman

13

Stockport Engineering Training Association Limited Charity Balance Sheet as at 30 July 2023

Charity Balance Sheet
as at 30 July 2023
Notes 2023 2022
£ £
FIXED ASSETS
Tangible assets 12 1,444,286 1,521,043
Investments 13 1,857 1,839
1,446,143 1,522,882
CURRENT ASSETS
Debtors 15 213,073 95,727
Cash at bank and in hand 12,002 6,776
225,075 102,503
CREDITORS
Amounts falling due within one
year 16 (276,485) (122,120)
NET CURRENT LIABILITIES (51,410) (19,617)
TOTAL ASSETS LESS
CURRENT LIABILITIES 1,394,733 1,503,265
CREDITORS
Amounts falling due after more
than one year 17 (464,210) (510,211)
NET ASSETS 930,523 993,054
FUNDS
Restricted funds - -
General funds 930,523 993,054
TOTAL FUNDS 930,523 993,054

14

Stockport Engineering Training Association Limited Charity Balance Sheet as at 30 July 2023

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 July 2023.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibility for:

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006; and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of section 144 of the Charities Act 2011.

These financial statements have been prepared in accordance with the Companies Act 2006 and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements were approved by the board of Trustees on 24th April 2024 and were signed on its behalf by:

Mr. R G Howarth Chairman

15

Stockport Engineering Training Association Limited Statement of Cash Flows and Consolidated Statement of Cash Flows for the year ended 30 July 2023

for the year ended 30 July 2023
Cash used in operating activities
24
Cash flows from investing activities
Interest Income
Purchase of tangible fixed assets
Cash used in investing activites
Cash flows from financing activites
Increase (repayment) of borrowing
Cash used in financing activites
Increase/(decrease) in cash and cash equivalents
in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end
of the year		 Group
2023
£		 Group
2022
£		 Charity
2023
£		 Charity
2022
£
(11,408) 70,027 69,248 43,113
596
(18,021)		 74
(27,880)		 -
(18,021)		 -
(27,880)
(17,425) (27,806) (18,021) (27,880)
(46,001) (39,241) (46,001) (39,241)
(46,001) (39,241) (46,001) (39,241)
(74,834) 2,980 5,226 (24,008)
155,526 152,546 6,776 30,784
80,692 155,526 12,002 6,776

16

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

1 ACCOUNTING POLICIES

Basis of preparation of accounts

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

Stockport Engineering Training Association Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and with the exception of investments which are included at market value.

Preparation of the accounts on a going concern basis

At the time of approval the trustees have a reasonable expectation that the charity has adequate resources to continue for the foreseeable future. In making the assessment they have considered a period of 12 months from the date of approval. The trustees therefore believe it is appropriate to prepare the financial statements on a going concern basis.

Group financial statements

The consolidated accounts incorporate the results of Stockport Engineering Training Association Limited (‘the Charity’) and its subsidiary undertakings; SETA Training & Advisory Services Limited and SETA Training (Cyprus) Limited; on a line-by-line basis.

The consolidated entity is referred to as ‘the Group’. No separate company Statement of Financial Activities (SOFA) has been prepared for the Charity as permitted by section 408 of the Companies Act

Income

Income is included in the SOFA when the charity is entitled to the income and when it is probable that income will be received and the amount can be measured reliably. Donations in kind are recognised at their value to the charity when they are received. No amounts are included for services donated by volunteers.


their value to the charity when they
volunteers.		 y. g
are received. No amounts are included for services donated by
Income comprise:
Donations and legacies
Legacies Pecuniary legacies are recognised as receivable once probate
has been granted and notification has been received.
Residuary legacies are recognised as receivable once probate
has been granted, provided that sufficient information has been
received to enable valuation of the Charity’s entitlement.
Donations Donations are accounted for as they are received.
Gift Aid Gift Aid is included based on amounts recovered or recoverable at
the accounting date.
Activities for raising funds
Membership subscription Membership subscription income (which is not considered to be
donations) is accounted for on an accrual basis.
Engineering training Income from providing training and courses are accounted for on
an accrual basis.
Safety training Income from providing training and courses are accounted for on
an accrual basis.
Schools training Income from providing training and courses are accounted for on
an accrual basis.

17

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

Investment income

Investment income is accounted for on an accrual basis.

Income from charitable activities

Apprentice training – Government funded Apprentice training – Other funded members services

rental income

Government funding is recognised when the Charity is entitled to receipt on an accrual basis.

Income is recognised when the Charity is entitled to receipt on an accrual basis.

Income from providing training and courses are accounted for on an accrual basis.

Income from providing a specialised training centre facility.

Government Grant Income

Coronavirus Job Retention Scheme Furlough income is claimed and accounted for in the month that it relates to. The scheme ended in September 2021.

Expenditure and basis of allocation

Expenditure is accounted for on an accruals basis. Overheads and other costs not directly attributable to a particular charitable activity category are apportioned over the relevant on the basis of management estimates attributable to that activity in the year, which is calculated as follows:

Administrative expenses (Staff Time) 2023 2022
% %
Engineering training income 6.7 6.9
Safety and short courses 18.7 16.3
Apprentice training 43.7 47.5
Non-Government funded apprentices 11.7 12.4
Rental Income 2.2 -
Services to members - 1.6
Governance 17.0 15.3
Training Centre expenses (Staff Time) 2023 2022
% %
Engineering training income 26.5 25.1
Apprentice training 61.1 57.1
Non-Government funded apprentices 12.4 14.8
Rental Income - -
Services to members - 3.0
Governance - -
Short Course expenses (Staff Time) 2023 2022
% %
Safety and short courses 100.0 100.0
Apprentice training - -
Non-Government funded apprentices - -
Rental Income - -
Services to members - -

18

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

port Engineering Training Association Limited
s to the Consolidated Accounts
eyear ended 30 July 2023
Group Services expenses (Staff Time) 2023 2022
% %
Engineering training income 3.0 3.4
Safety and short courses 5.5 4.3
Apprentice training 78.9 79.1
Non-Government funded apprentices 10.7 8.9
Rental Income - -
Services to members - 2.0
Governance 1.9 2.3
Canteen expenses (Delegate Numbers) 2023 2022
% %
Engineering training income 38.5 49.5
Safety and short courses 61.5 50.5
Apprentice training - -
Premises expenses (Floor Area) 2023 2022
% %
Engineering training income 26.8 29.8
Safety and short courses 14.3 15.3
Apprentice training-Government funded 5.5 17.9
Apprentice training-Other funded 12.2 24.5
Rental Income 32.7 -
Services to members - 4.0
Governance 8.5 8.5

Governance costs

Governance costs comprises the expenditure on governance of the charity including audit fees, legal advice for trustees, costs of trustee meetings and an apportionment of relevant staff costs based on time spent on governance-related matters.

Leasing and hire purchase commitments

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet. The assets are depreciated over their expected useful lives.

Rentals under operating leases are charged to the statement of financial activities as they fall due.

Pension costs

The company operates a defined contribution pension scheme for the present employees. Contributions are charged to the SOFA as they become payable in accordance with the rules of the scheme

19

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

Tangible fixed assets and depreciation

All fixed assets are held for charitable use and are stated at cost less depreciation with all repairs written off as occurred.

Land and buildings are held at market value. Land and buildings are revalued regularly to ensure the carrying value is not materially different from a fair value at the end of the reporting period.

Depreciation is provided at rates calculated to write off the cost of tangible fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold Property 2% straight line Motor Vehicles 25% reducing balance Plant and Machinery 15% reducing balance Computer Equipment 20% straight line Office Equipment 25% reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using the first-in first-out basis of valuation.

Investments

Subsidiary companies are valued at cost, with any resulting gains or losses on exchange included in the SOFA.

Taxation

The activities of the Charity are exempt from corporation taxation under section 505 of the Income and Corporation Taxes Act 1988 to the extent that they are applied to the organisation’s charitable objectives.

The trading subsidiaries do not generally pay UK corporation tax because their policy is to pay taxable profits as Gift Aid to the Charity. Foreign tax incurred by overseas subsidiaries is charged as it is incurred.

Funds

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income and gains are allocated to the appropriate fund.

Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange prevailing at the date of the transaction. Foreign currency balances are translated into sterling at the exchange rates prevailing at the balance sheet date. Any resulting gains or losses on exchange are included in the SOFA.

Profits and losses of foreign subsidiaries are translated to sterling at average rates of exchange. The opening net assets and profit and loss accounts of those subsidiaries are retranslated to year end rates; exchange differences arising on the retranslation are taken to reserves.

20

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

Debtors

Debtors are normally recognised at their transaction price, provision for Bad Debts has been included for the year.

Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.

2 FINANCIAL PERFOMANCE OF THE CHARITY

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding-up is limited to £1. The Consolidated Statement of Financial Activities is for the Group as a whole. The figures below are the equivalent figures for the Charity only, excluding other Group companies.

Income
Gift aid from the subsidiary company
Expenditure on charitable activities
Governance costs
Gains/(Losses) on revaluation of Fixed Assets
Net movement in funds
Total funds brought forward
Total funds carried forward
Funds
Unrestricted funds		 2023
£
651,971
150,063
802,034
(745,283)
(119,282)
(864,565)
(62,531)
993,054
930,523
930,523
930,523		 2022
£
741,785
185,288
927,073
(825,207)
(145,760)
155,000
(815,967)
111,106
881,948
993,054
993,054
993,054

3 DONATIONS AND LEGACIES

Donations
Government Grant Income		 Continuing
operations
£
-
-
-		 Discontinued
operations
£
-
-
-		 2023
Total
£
-
-
-		 2022
Total
£
2,185
5,436
7,621

21

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

4 INCOME FROM OTHER TRADING ACTIVITIES

Continuing
operations
£
Other trading activities
Membership subscriptions
-
Engineering training income
-
Safety and short courses
511,682
Schools/Study Programme Training
-
511,682
Investment income
Interest on cash deposits
596
5
INCOME FROM CHARITABLE ACTIVITIES
Continuing
operations
£
Apprentice training-Government
funded
-
Apprentice training-Other funded
-
Members services
-
Rental Income
85,563
85,563
6
EXPENDITURE ON RAISING FUNDS
Continuing
operations
£
Engineering training
Marketing
-
Staff costs
-
Training costs
-
Travel
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Safety and short courses
Marketing
16,924
Staff costs
187,500
Training costs
130,048
Travel
28,353
Premises costs
20,787
Office and sundry costs
24,696
Depreciation
7,395
415,703
TOTAL
415,703		 Discontinued
operations
£
1,438
245,226
-
-
246,664
-
Discontinued
operations
£
567,720
132,098
-
-
699,818
Discontinued
operations
£
3,606
68,109
54,038
5,153
38,962
11,798
16,770
198,436
-
-
-
-
-
-
-
-
198,436		 2023
Total
£
1,438
245,226
511,682
758,346
596
2023
Total
£
567,720
132,098
-
85,563
785,381
2023
Total
£
3,606
68,109
54,038
5,153
38,962
11,798
16,770
198,436
16,924
187,500
130,048
28,353
20,787
24,696
7,395
415,703
614,139		 2022
Total
£
3,027
236,114
483,005
-
722,146
74
2022
Total
£
833,617
194,025
31,513
1,059,155
2022
Total
£
8,353
105,535
31,532
7,050
44,702
18,346
8,512
224,030
45,517
218,679
117,164
21,052
22,970
23,706
4,399
453,487
677,517

22

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

7
EXPENDITURE ON CHARITABLE ACTIVITIES
Continuing
operations
£
Apprentice training-government funded
Marketing
-
Staff costs
-
Training costs
-
Travel
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Apprentice training-Other funded
Marketing
-
Staff costs
-
Training costs
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Member services
Staff costs
-
Training costs
-
Premises costs
-
Office and sundry costs
-
Depreciation
-
-
Rental Income
Staff costs
4,794
Premises costs
47,534
Depreciation
13,696
66,024
Governance costs (note 7)
133,177
TOTAL
199,201
8
GOVERNANCE COSTS
Continuing
operations
£
Marketing
80
Staff costs
44,065
Training costs
6,123
Travel
2,798
Premises costs
12,356
Office and sundry costs
59,490
Depreciation
8,265
133,177		 Discontinued
operations
£
3,858
370,880
253,500
5,675
7,993
25,551
3,668
671,125
-
70,197
23,920
17,733
3,509
7,273
122,632
-
-
-
-
-
-
-
-
-
-
-
793,757
Discontinued
operations
£
-
-
-
-
-
-
-
-		 2023
Total
£
3,858
370,880
253,500
5,675
7,993
25,551
3,668
671,125
70,197
23,920
17,733
3,509
7,273
122,632
-
4,794
47,534
13,696
66,024
133,177
992,958
2023
Total
£
80
44,065
6,123
2,798
12,356
59,490
8,265
133,177		 2022
Total
£
5,146
598,713
111,169
9,264
26,906
33,368
5,379
789,945
-
112,239
11,419
36,812
6,018
6,143
172,631
20,812
2,344
5,979
994
998
31,127
-
-
-
-
161,715
1,155,418
2022
Total
£
110
57,755
4,258
5,170
12,761
69,594
12,067
161,715

23

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

Stockport Engineering Training Association Limited
Notes to the Consolidated Accounts
for theyear ended 30 July 2023
9
NET RESOURCES EXPENDED BEFORE TRANSFERS
This is stated after charging:
Depreciation
Directors' remuneration
Compensation to past directors for loss of office
Pension costs
Auditors' remuneration
10
TRUSTEES' REMUNERATION AND BENEFITS
Total remuneration paid to trustees’ amounted to:
R.G Howarth
£1,500
(2022 £1,500)
J. R. Moss
£1,500
(2022 £1,500)
M. Kidd
(2022 £1,500)
Total
£3,000
(2022 £4,500)		 2023
£
57,068
73,438
29,290
22,427
17,538		 2022
£
37,499
64,617
33,492
11,681

This has been agreed with the Charities Commission due to the additional time involved in being a Director of the Trading subsidiary company SETA Training and Advisory Services Limited

There were no trustees’ expenses or other benefits for the year ended 30 July 2023 nor for the year ended 31 July 2022.

11
STAFF COSTS
Staff costs during the year amounted to:
Wages and salaries
Social security costs
Pension costs
The average number of employees during the year,
including full time equivalents of part time employees, was:
Apprentice training-government funded
Engineering training
Safety and short courses
Governance		 2023
£
653,739
64,088
22,426
740,253
5
5
4
3
17		 2022
£
984,196
92,611
33,492
1,110,299
11
9
4
7
31

The employees performed training, administrative and management functions.

The above includes holiday pay accrual amounting to £4,751 (2022 £27,030)

The emoluments of one member of staff, including benefits in kind, is within the range £60,000 to £69,999 (2022 - One), not including retirement benefits which are accruing under a money purchase scheme.

The key management personnel of the group comprise those of the charity, being the trustees, the chief executive and the company secretary. The total employee benefits of the key management personnel of the group were £136,765 (2022: £130,793).

The number of employees to whom retirement benefits were accruing was 4 (2022: 36)

24

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

12 TANGIBLE FIXED ASSETS - GROUP

Cost or valuation
At 31 July 2022
Additions
Disposals
At 30 July 2023
Depreciation
At 31 July 2022
Charge for the year
On disposals
At 30 July 2023
Net book value
At 30 July 2023
At 30 July 2022		 Land and
buildings
£
1,400,000
-
1,400,000
-
28,000
-
28,000
1,372,000
1,400,000		 Plant and
machinery etc
£
249,162
18,021
(11,285)
255,898
172,317
21,777
(4,404)
189,690
66,208
76,845		 Motor
vehicles
£
209,432
-
(171,467)
37,965
165,234
7,290
(140,637)
31,887
6,078
44,198		 Total
£
1,858,594
18,021
(182,752)
1,693,863
337,551
57,067
(145,041)
249,577
1,444,286
1,521,043

All fixed assets held are used for direct charitable purposes.

Except under an order of the registrar, no deposition by the proprietor of the land is to be registered without the consent of the proprietor of the Charge in favour of the Royal Bank of Scotland Plc. referred to in the Charges Register.

If the freehold land and building had not been revalued they would have been included at the following historical cost:

Historical cost
Aggregate depreciation
At 30 July 2023		 2023
£
702,356
(272,536)
429,820

The fair value of the freehold land and buildings has been determined by the trustees of the charity on an open market value for existing use basis. The valuation has been based on a desktop comparison exercise between the land and buildings owned by the charity to similar sized properties in close geographical proximity.

Cost or valuation at 30 July 2023 is represented by:

Historical cost
Revaluation 2006
Revaluation 2011
Revaluation 2017
Revaluation 2021
Revaluation 2022
At 30 July 2023		 Land and
Buildings
£
702,356
555,825
(495,858)
87,677
395,000
155,000
1,400,000

25

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

13 INVESTMENTS - COMPANY

Cost
At 31 July 2022
Movement
At 30 July 2023
Net book value
30 July 2023
30 July 2022		 Unlisted
investment
£
1,839
18
1,857
1,857
1,853

The company's investments at the balance sheet date in the share capital of companies include the following:

Country of Class of
Subsidiary Undertaking Incorporation Shares % Held
SETA Training and Advisory Services Limited England Ordinary 100%
SETA Training (Cyprus) Limited Cyprus Ordinary 100%

SETA Training and Advisory Services Limited

(Incorporated in England and Wales)

Nature of business: Providing training for people employed or intending to be employed in industry and commerce.

%
Class of shares:
holding
Ordinary shares of £1 each
100.00
Turnover
Cost of sales and administration costs
Interest receivable
Interest payable
Tax
Net Profit
Amount gift aided to the charity
Retained in subsidiary		 Company Number: 03001863
2023
2022
£
£
889,239
1,044,512
(740,197)
(858,845)
570
72
149,612
185,739
(150,063)
(185,288)
(451)
451		 Company Number: 03001863
2023
2022
£
£
889,239
1,044,512
(740,197)
(858,845)
570
72
149,612
185,739
(150,063)
(185,288)
(451)
451
185,739
(185,288)
451

26

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

SETA Training (Cyprus) Limited (Incorporated in Cyprus)

Nature of business: Providing health and safety courses industry and commerce.

%

Class of shares:
holding
Ordinary shares of £1 each
100.00
Aggregate capital and reserves
Profit/(Loss) for the period		 Company Number: 224453
2023
2022
£
£
4,333
4,106
(142)
(436)

The consolidated statement of financial activities includes the results of the charity's wholly owned subsidiaries. The summary financial performance of SETA Training (Cyprus) Limited alone is:

14

Turnover
Cost of sales and administration costs
Interest receivable
Corporation Tax
Net Profit
Amount gift aided to the charity
Retained in subsidiary
STOCK
Group
2023
Centre materials
Registrations
255
Canteen
Stationery
580
Cleaning Materials
176
Course Books
1,939
2,950		 Group
2022
£
10,418
2,554
542
980
176
6,272
20,942		 2023
£
13,232
(13,086)
(4)
142
-
142
Charity
2023
£
-
-
-
-
-
-
-		 2022
£
15,060
(15,101)
(395)
(436)
-
(436)
Charity
2022
£
-
-
-
-
-
-
-

27

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

15 DEBTORS

DEBTORS
Trade debtors
Government funding receivable
Other taxes and social security costs
Prepayments and accrued income
Other debtors		 Group
2023
£
129,355
94,961
326
224,642		 Group
2022
£
200,618
64,903
-
54,207
6,499
326,227		 Charity
2023
£
119,616
6,108
87,123
226
213,073		 Charity
2022
£
19,346
64,903
3,562
1,823
6,093
95,727

On 4th December 1997 the directors of the charity executed a first legal charge over the book debts of the wholly owned subsidiary company.

The loan to the subsidiary company is the subject of a formal loan agreement between itself and the Charity dated 4th December 1997 and which is subject to the following:

a) Interest is to be charged at 1% over bank base rate and the loan is secured by a fixed charge over book and other debts of the wholly owned subsidiary company.

b) The loan is to be renegotiated in the interests of the Charity each year and shall be repayable to the Charity on the 31st July each year.

16 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loan (secured)
Trade creditors
Obligations under finance lease and
hire purchase contracts		 Group
2023
£
42,334
10,917
4,987
216,639
7,864
844
283,585		 Group
2022
£
45,690
53,413
4,604
293,752
41,147
7,372
445,978		 Charity
2023
£
42,334
1,648
4,987
213,402
11,277
1,993
844
276,485		 Charity
2022
£
45,690
2,963
4,604
-
35,635
25,856
7,372
Amounts
owed
to
group
undertakings
and
undertakings
in
which
the
company
has
a
participating interest
Accruals and deferred income
Other taxes and social security costs
Other creditors
122,120

28

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

17 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loan (secured)
Obligations under finance lease and
hire purchase contracts
1-5 years
More than 5 years		 Group
2023
£
462,011
2,199
464,210
155,735
308,475
464,210		 Group
2022
£
503,025
7,186
510,211
140,344
369,867
510,211		 Charity
2023
£
462,011
2,199
464,210
155,735
308,475
464,210		 Charity
2022
£
503,025
7,186
510,211
160,862
349,349
510,211

18 SECURITY

The bank loan and overdraft is secured by a legal charge over the freehold property of the company.

19 Deferred Income

Deferred income comprises advanced sales for courses, quarterly membership and monitoring which are carried out post year end.

Balance as at 31 July 2022
Amount released to income earned
from charitable activities
Amount deferred as 30 July 2023		 Group
2023
£
225,673
(225,673)
147,036
~~147,036~~		 Group
2022
£
169,583
(169,254)
225,344
~~225,673~~

29

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

20 FUNDS - GROUP

Tangible fixed assets
Net current (liabilities)/assets
Liabilities due after one year
Restricted funds
Loan stock
Unrestricted funds
General reserve
Revaluation reserve
Loan stock
TOTAL
Name of Fund
General reserve
Revaluation reserve		 £
£
Unrestricted
Restricted
Funds
Funds
Total
£
£
£
1,444,286
1,444,286
24,699
24,699
(464,210)
(464,210)
1,004,775
-
1,004,775
Balance at
Income
Expenses
Transfers
1-Aug-2022
£
£
£
£
-
-
-
-
-
-
-
-
111,416
1,544,323
(1,579,097)
(14,047)
956,133
-
(28,000)
14,047
-
1,067,549
1,544,323
(1,607,097)
-
1,067,549
1,544,323
(1,607,097)
-
Description, nature and purposes of the fund
The 'free reserves' after allowing for all designated funds.
The value of freehold property at market value in excess of
carrying value at historical cost.		 Balance
30 July 2023
£
-
-
62,595
942,180
-
1,004,775
1,004,775

21 Operating Leases

Operating Leases
Within one year
Between two and five years
Greater than five year		 2023
£
9,683
30,129
39,812		 2022
£
11,312
24,022
-
35,334

30

Stockport Engineering Training Association Limited Notes to the Consolidated Accounts for the year ended 30 July 2023

22 ULTIMATE CONTROLLING PARTY

There was no ultimate controlling party during the year under review or the preceding year.

23 MANAGEMENT REMUNERATION

Decisions on management remuneration levels are made by the Board of Directors taking into account the job role, peer group salary evaluations, appraisals and advice from the Financial Accountant.

24 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net movement in funds
Add back depreciation charge
Sale of Fixed Assets
Less profit on disposal of FA
Add back (Gains)/Losses on
revaluation of Fixed Assets
Movement in Investments
Deduct interest income shown in
investing activities
Decrease (increase) in stock
Decrease (increase) in debtors
Increase (decrease) in creditors		 Group
2023
£
(62,774)
57,067
66,464
(28,753)
-
(596)
17,992
101,585
(162,393)
(11,408)		 Group
2022
£
111,061
37,499
2,000
(908)
(155,000)
(74)
(5,772)
(8,644)
89,865
70,027		 Charity
2023
£
(62,531)
57,067
66,464
(28,753)
-
(18)
-
(117,346)
154,365
69,248		 Charity
2022
£
111,106
37,499
2,000
(908)
(155,000)
14
-
-
35,445
12,957
43,113

25 RELATED PARTY TRANSACTIONS

During the year, the company disposed of fixed assets for an amount of £9,922 to R.M Prince, a Director at the time of disposal. These goods were purchased on an arm’s length basis and had a written down value of £6,313 at the time of disposal.

During the year, the company purchased services totalling £4,000 (2022 – £0) from Lyncfield Services Limited, a company in which Mr M. C. Field has a controlling interest. These services were purchased on an arm’s length basis. There were no amounts outstanding to or from the company at the period end.

31