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|Directors' and Trustees' Annual<br>Report (continued)<br>Forthe year ended 31July 2021||
|---|---|
|Structure, Governance<br>&Management||
|Lancaster<br>Training<br>Services is a charitable<br>company<br>limited<br>by guarantee<br>and has no authorised<br>or issued<br>share capital. Fouteen||
|members, ss indicated<br>in a list held at the registered<br>oflice, agme to oontribute 2200 each to the assets ofthe charity<br>in the event|ofa|
|winding<br>up. The company<br>is governed<br>by its Memorandum<br>and Artides<br>ofAssociation<br>dated 7 September 1979as amended<br>by a<br>special resolution<br>dated 13November 1996. Management<br>ofthe Charity's<br>affairs is vested<br>in its executive commiitee.||
|The directors and trustees are subject to re-appointment<br>annually<br>by the members<br>in the Annual<br>General Meeting.||
|'<br>'||
|T<br>tee induction<br>an<br>r||
|Trustees are given such advice and information<br>by the Chief Executive Officer as is necessary to sfiow them to carry out their function.||
|~Or anisation||
|The operafion<br>snd administrafion<br>of the charity<br>is controlled<br>by Mr M Horsbin,<br>training<br>manager<br>and company<br>secretary. Strategic||
|issues and important<br>business<br>matters<br>induding<br>setting<br>the pay and remuneration<br>of the charity's<br>key management<br>personnel|rest|
|with the directors and trustees.<br>They are able to use the advice ofthe executive committee,<br>to which each of the charity's<br>members||
|csn send one representafive<br>.||
|The chair ofexecutive meetings<br>is the charity's<br>chairman,<br>Mr RW Litfie.||
|During<br>the year the charity<br>employed<br>one training<br>manager,<br>eleven<br>driving<br>instructors,<br>seven - house tutors and five administrative||
|staff.||
|Bjfijkgtfig&ggment||
|The trustees<br>have assessed<br>the major risks to which the charity is exposed,<br>in particular those related to the opersfions<br>and finances<br>of the chariity,<br>and are satisfied<br>that systems<br>sre<br>in place to mitigate<br>our exposure<br>to the major risks.<br>The charitable<br>company<br>is||
|striving to build up its liquid assets in its current location and believes that<br>it is taking the necessary steps to achieve this end.||
|Objectives<br>& Activities||
|The charity's<br>principal<br>object as set out in the Memorandum<br>ofAssociation<br>is to provide<br>training<br>for persons employed<br>or intending|to|
|be employed<br>in Road Transporl<br>activities<br>or such other persons employed<br>or intending<br>to be employed<br>in such other activiTies as msy<br>benetit from the training<br>services provided<br>by the Company.||
|The prinupal<br>activity ofthe charity<br>during<br>the year was the continuing<br>provision<br>of transport<br>related<br>training<br>services to its members||
|and<br>other<br>outside<br>interests.<br>The charity<br>meets<br>the standards<br>required<br>by the<br>Education<br>& Skills<br>Funding<br>Agency I Ofsted,|the|
|government<br>body responsible<br>for maintaining<br>the standards<br>ofgovernment<br>funded<br>training<br>providers,<br>thus maintaining<br>its status as|an|
|approved<br>training<br>centre in Norih Lancashire<br>and South Cumbria.||
|licies ado t<br>further the ob'acts ofthe chari||
|- Maintaining<br>strong links with its member companies<br>in order to conknue the original principal<br>acfivity.||
|- Confinuing<br>to be the approved<br>training<br>centre forthe Education<br>&Skills Funding<br>Agency.||
|- Achieving<br>high rates ofqualificarion<br>to secure a oommensurate<br>level offunding<br>from the Educafion<br>&Skills Funding<br>Agency.||
|- Raising the profile ofthe charity to outside businesses<br>through<br>the wide range ofroad transport<br>training<br>services provided.||
|- Maintaining<br>the standards<br>required<br>by the Education<br>& Skills Funding<br>Agency/<br>Ofsted.||
|- To maintain<br>the standards<br>required<br>for 'Investors<br>in Peoplek||
|- To maintain<br>links with National bodies which support the charity<br>in the pursuit of its objectives e.g.The National<br>Logistics Academy,<br>The Road Transport Association.||
|Achievements<br>and Performance||
|The charity has continued<br>to offer s wide range oftraining<br>services during<br>the year. The 'In-House<br>Training'<br>depariment<br>continue|to|
|achieve a success rate higher than the national<br>average.<br>Over 1,000 individuals<br>were trained<br>during<br>the year. Of the 336 Driving|&|
|Vehide Standard Agency (DVSA) tests conducted, a fimt time pass rate of69%and overall pass rate of69%was achieved<br>against|a|
|combined<br>national<br>average of 58%.The company<br>has continued<br>successfully<br>to establish<br>itself at Heysham<br>where<br>it believes the||
|facilities are excellent.||





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|A summary<br>of|the results is as fofiaws:|||
|---|---|---|---|
|||2021|2020|
|||5|2|
|Total incoming|revenue resouries|924,286|958,929|
|Totalresources|expended|(982,277)|(929,065)|
|Profit on disposal offixed assets|||1,067|
|Net inooming resources for the year||(57,991)|30,931|



|Unres|kicted<br>|rese|rves at 31|July 2021 are comprised as follows:||
|---|---|---|---|---|---|
||||||2|
|Fixed|assets|net|ofsecured|loan|1,202,966|
|Free|reserves||||618,258|
||||||1,821,224|





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||||||Unrestricted|Endowment|||
|---|---|---|---|---|---|---|---|---|
||||||Funds|Funds|Total|Total|
|||||Note|2021|2021|2021|2020|
||||||5|5|5||
|INCOIEE AND ENDOWMENTS|||FROIE||||||
|Charitable<br>activities|||||||||
|- Training<br>allowances<br>- Course fees|||||364,016<br>480,721||364,016<br>480,721|367,098<br>489,760|
|Other trading activities|||||||||
|- Membership<br>fees|||||271||271|271|
|- Miscellaneous<br>income|||||Ta,114||79,114|99,934|
|Investments|||||||||
|- Bank interest receivable|||||166||185|1,865|
|Other|||||||||
|- Profit on disposal offixed assets||||||||1,067|
|Total income and endowments|||||924,286||924,286|959,996|
|EXPENDITURE ON|||||||||
|Charaable activities|||||||||
|- Training costs|||||a73,356||$73,868|922,332|
|Other|||||8,421||8,421|6,733|
|Total expendltum|||||682,277||982,277|929,065|
|Net income|||||(57,991)||(67,881)|30,931|
|Total fund bahrnces<br>1Augtist 2020|brought|forward at|||1,879,216|42,4181,921,634||1,690,703|
|Total fund balances|carried|forward at|||||||
|31July 2021|||||1,821,224|42,419|1,863,643|1,921,634|





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|||||Note|2021|2020|
|---|---|---|---|---|---|---|
||||||5|2|
|Fixed Assets|||||||
|Tangible assets|||||1,221,755|1,195,521|
|Current Assets|||||||
|Stocks|||||4,900|4,500|
|()enters|||||173,928|108,473|
|Cash at bank and in|hand||||643+78|773,502|
||||||822,306|886,475|
|Credltorsi<br>amounts|fanlng||due within one year|8|(175,981)|(141,192)|
|Net current assets|||||546,325|745,283|
|Total assets less curmnt||liabgitles|||1,868,080|1,940,804|
|Creditors: Amounts|falling||due after more than one year|10|(4,437)|(19,170)|
|Net assets|||||1,86$,643|1,921,634|
|Funded<br>by:-|||||||
|Unrestrictedfunds||||16|1,821,224|1,879,215|
|Endowment<br>funds||||13|42,419|42,419|
|Restricted<br>funds||||14|||
|Total funds|||||1,96$,64$|1,921,634|





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|||202'I|2,020|
|---|---|---|---|
|||6||
|Cash flows from operating<br>activities:||||
|Net income /(expenditure)<br>for the year<br>Adjustments<br>for:||( 57,991)|30,931|
|Depmciation<br>oftangible assets||42,764|50,534|
|(Proiit)/Loss<br>on disposal oftangible assets<br>Interest paid||412|( 1,067)<br>392|
|Interest received<br>Decrease /(increass)<br>in stock<br>Decrease / (increase)<br>in debtors<br>Increase /(decrease)<br>in creditors||( 195)<br>( 400)<br>( 56,455)<br>34,789|( 1,866)<br>( 600)<br>55,082<br>( 35,021)|
|Net cash provided<br>by operating<br>activities||( 46,066)|98,385|
|Cash flows horn Investing<br>activitiesr||||
|Interest received||165|1,866|
|Purchase<br>oftangible fixed assets<br>Proceeds on sale oftangible fixed assets||I 68,879)|( 3,162)<br>1,067|
|Net cash (used In) / provided<br>by investing|activities|( 68,714)|( 229)|
|Cash flows from financing<br>activates||||
|Loan repayments<br>Interest paid||( 14,842)<br>( 412)|( 14,540)<br>( 392)|
|Net cash (used in) / provided<br>by financing|activities|( 15,254)|( 14,932)|
|Net Increase<br>in cash and cash equivalents||( 130,024)|83,224|
|Cash and cash equivalents<br>at the beginning|ofthe year|773,502|690,278|
|Cash and cash equivalents<br>atthe end ofthe year||643,478|773,502|





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|Total resources expended|||||
|---|---|---|---|---|
|||Support|Total|Total|
||Training<br>6|COStS<br>8|2021<br>2|2020f|
|Costs directly agocated to activities|||||
|Vehicle fuel and oil|27,152||27,152|30,585|
|Vehicle repairs|14,543||14,643|10,018|
|Vehide licence, insurance,<br>and hire<br>Salaries|17,643<br>638,057||17.643<br>638,057|16,193<br>603,666|
|Employer pension<br>contributions|40,936||40,936|42,506|
|Insurance|12,856||12,856|12,276|
|Office expenses<br>Telephone|4,943<br>3,136||4,943<br>3,136|5,590<br>2,875|
|Computer expenses|4,987||4,987|3,784|
|Advertising|3,902||3,902|4,994|
|Light and heat<br>Bad debts|(1,172)<br>893||(1,1'r2)<br>893|(2,412)<br>'f19|
|Rates and water|8,923||8,923|8,764|
|Teaching and course expenses|96,763||96,763|84,289|
|ADR course fees|6,980||8,980|7,820|
|Subscriptions,<br>and consultancy<br>accreditations|16,104||18,104|12,932|
|Staff training<br>course|6,258||6,268|3,083|
|Repairs and maintenance|6,957||6.987|5,565|
|Bank charges|2,546||2.646|3,844|
|Bank interest|412||412|392|
|Audit and accountancy<br>Legal and professional<br>fees||8,421|8,421|6,733|
|Sundry expenses<br>Laundry<br>and cleaning<br>Depreciation<br>-Freehold<br>buildings<br>- Motor vehides<br>-Plant and equipment<br>-Oftice equipment|9,485<br>8,798<br>10,222<br>19,380<br>8,029<br>5,123||9,485<br>8,768<br>10,222<br>19,380<br>8,029<br>6,123|7,223<br>7,692<br>10,222<br>33,205<br>2,342<br>4,765|
||973,856|8,421|982,277|929,065|
|Net incoming resoumes for the year|||2021|2020|
||||6|5|
|The net incoming<br>resources for the year is stated after charging i(crediting) the following:|||||
|Depreciation<br>oftangible<br>fixed assets|||42,764|50,534|
|Profit on disposal offixed assets<br>Auditor's<br>remuneration<br>-audit senrices|||4,790|(1,067)<br>4,700|
|Auditor's<br>remuneration<br>-non audit services|||1,600|2,033|
|Auditor's<br>mmuneration<br>- non audit senrices compnises:|||||
|VAT services|||1,600|2,033|





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|4|Employees||||||||||||||||2021|2020|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||||||||||||||||5|F|
||The aggregate|payroll|costs|during||the year|amounted||to:-||||||||||
||Wages and salaries||||||||||||||||684,$33|553,482|
||Social security|costs|||||||||||||||53,124|50,184|
||Pension costs||||||||||||||||40,936|42,506|
||||||||||||||||||678,$93|646,172|
||The average<br>monthly||number|of|full|time and part time employees||||||during|the year|wash|||||
||||||||||||||||||2021|2020|
||||||||||||||||||Number|Number|
||Training:||||||||||||||||||
||Management|snd administration|||||||||||||||6|6|
||Operations<br>staff||||||||||||||||18|18|
||||||||||||||||||24|24|
||The average<br>monthly||number|of|full|time equivalent||employees<br>during the year was:-||||||||||19|
||One employee|earned|between 260,000-270,000|||||in|the|year (2020:1).|||||||||
|5|Trustees snd key management||||pemonnel||remuneration||||||||||||
||No trustee received any remuneration|||||from the charity|||during||either|ofthe two financial|||years.||||
||Travel expenses reimbursed|||to2trustees amounted||||to2||702 in the||year.|||||||
||During the year|the charity paid 263,829(2020:265,138)||||||||in|remuneration||to ksy management|||personnel.|||
|6|Tangible fixed|assets|||||||||||||||||
|||||||||||Freehold|||||||||
||||||||||Lend and||||Plant and|||Office|Motor||
||||||||||Buildings|||Equipment|||Equipment||Vehicles|Total|
||||||||||||9|||2||2|2|2|
||Cost||||||||||||||||||
||At 31 July 2020||||||||1,282,127||||254,666|||111,146|317,406|1,965,345|
||Additions||||||||||||60,035|||2,844|s,ooo|ss,sra|
||Disposals||||||||||||||||||
||At 31 July 2021||||||||1,282,127||||314,701|||113,990|823406|2,034,224|
||Depmclation||||||||||||||||||
||At 31 July 2020|||||||||132,100|||264,038|||96,001|287,636|rsa,524|
||Adjustment<br>to blfwd charge||||||||||||(10$)|||||(109)|
||Charge for the year||||||||||10,222||8,029|||6,123|1a,3sg|42,764|
||Dispossls||||||||||||||||||
||At 31July 2021|||||||||142,322|||261,958|||101,124|307,065|812,469|
||Net book value||||||||||||||||||
||At 31 July 2021||||||||1,139,805||||52,743|||12,866|15,341|1,221,755|
||At 31 July 2020||||||||1,150,027||||628|||15,145|29,721|1,195,521|



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|7|Stk||||
|---|---|---|---|---|
||ocs||2021|2020|
||||E||
||Stock offuel<br>Sundry stock||4,000<br>soo|4,000<br>500|
||||4,800|4,500|
|8|Debtors||2021|2020|
||||E|K|
||Trade debtors||105,831|28,700|
||Prepayments||24,247|21,596|
||Accrued income||43,860|58,177|
||||173,928|108,473|
|8|Creditors: amounts|falling due within one year|2021|2020|
||||E|K|
||Bank loan<br>Trade creditors||14,352<br>18.172|14,475<br>13,865|
||Taxation and social security||36,924|19,274|
||Accruals and deferred income||106,633|93,575|
||||'l75,981|141,192|
|10|Creditors: amounts|faglng due after more than one year|2021|2020|
||||E|K|
||Bank loan||4,437|19,170|
||Due between 2 and 5years<br>Due in more than 5years||4,437|19,170|
||||4,437|19,170|





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|Analysis|ofnet assets between funds|||||
|---|---|---|---|---|---|
|||unrestricted|Restricted|Endowment|Total|
|||tend|rllnde|ronde|tunde|
|||E|E|E|E|
|Tangible|fixed assets|1,17$,336||42,419|1,221,755|
|Currant|assets|822,306|||822,306|
|Current|liabilities|lI(75,981)|||(175,$81)|
|Long term liabilities||(4,437)|||(4,437)|
|||1,821,224||42,419|1,853,643|



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|Fixed|asset|Total|Total|
|---|---|---|---|
||fund|2021|2020|
||E|8||



|At 1 August|At 1 August||
|---|---|---|
|Annual|release offixed asset restricted|fund|
|At 31|July||



## 

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|Unrestricted<br>funds||||
|---|---|---|---|
|||Total|Total|
||General|2021|2020|
||E|E|E|
|At 1 August|1,879,215|1,879,215|1,648,284|
|Surplus forthe year|(57,991)|(57,991)|30,931|
|At 31 July|1,821,224|1,821,224|1,879,215|



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|||2021 f|2020|2|
|---|---|---|---|---|
|Ofgce|equipment||||
|Within|12months|286||260|
|||286||260|



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## 

|alysis|ofchanges<br>in net debt||||
|---|---|---|---|---|
|||1 August|Cash flows|31July|
|||2020||2021|
|||8|||
|Cash <br>Loans <br>Loans|at bank and in hend<br> falling due within one year<br> falling due sacr more than one year|773,502<br>(f4+78)<br>R8,170)|(130,024)<br>126<br>14,733|643,478<br>(14,352)<br>(4,437)|
|||739,864|(115,165)|624,689|





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|||2021|2020|
|---|---|---|---|
|||5|2|
|Incoming Resources:||||
|Apprenticeship<br>funding||315,322|282,602|
|Other IHT training<br>Course fees||48,69S<br>460,736|84,496<br>475,421|
|DGSA consultancy||19,986|14,339|
|Bank deposit interest<br>Membemhip<br>fees||165<br>271|1,866<br>271|
|Rental income<br>Other income<br>Pmfit on disposal offixed assets<br>Furlough scheme||9.364<br>5,057<br>64,60S|10,404<br>4,414<br>1,067<br>85,116|
|||824.286|959,900|
|Resources Expended:||||
|Vehicle fuel and oil<br>Vehicle repairs<br>Vehicle licence, insurance,<br>and <br>Salaries|hire|27,152<br>14,543<br>17,643<br>638,057|30,585<br>10,018<br>16,193<br>603,666|
|Employer pension<br>contributions||40,938|42,506|
|Insurance||12,856|12,276|
|Office expenses<br>Telephone||4,943<br>3,136|5,590<br>2,875|
|Computer expenses<br>Adverksing||4,987<br>3.002|3,784|
|Light and heat<br>Rates and water<br>Teaching<br>and coume expenses<br>ADR course fees<br>Subscriptions,<br>and consultancy<br>Staff training course<br>Repairs and maintenance<br>Bad debts|accreditations|I1,172)<br>8,923<br>96,763<br>6,980<br>16,104<br>6,258<br>6,957<br>8$3|(2,412)<br>8,764<br>84,28$ 7,820<br>12,932<br>3,083<br>5,565<br>119|
|Bank charges<br>Bank interest||2,546<br>412|3,844<br>392|
|Legal and professional fees||||
|Audit and accountancy<br>Sundryexpenses<br>Laundry<br>and deaning<br>Depreciation - Freehold<br>buildings<br>-Motor vehides<br>-Plant and equipment||8,421<br>9,486<br>8,7$8<br>10,222<br>19,380<br>8,029|6,733<br>7,223<br>7,692<br>10,222<br>33,205<br>2,342|
|-Office equipment||5,123|4,765|
|||982,277|929,065|
|Net Incoming resources forthe|year|I57,091)|30,931|



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