Company Registration Number 01447612 Charity Registration Number 511387
LANCASTER TRAINING SERVICES LIMITED
Financial Statements For the year ended 31 July 2023
LANCASTER TRAINING SERVICES LIMITED
Directors' Report for the purposes of section 417 of the Companies Act 2006 and Trustees' Annual Report for the purposes of Part 8 of the Charities Act 2011 For the year ended 31 July 2023
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The trustees present their annual report together with the financial statements and auditor's report for the year ended 31 July 2023
Reference and Administrative Details
The full name of the charity is Lancaster Training Services Limited. The Charity registration number is 511387.
The Company registration number is 01447612.
The Directors and Trustees who served during the year were:
Mr RW Little Mr G Sierpinski
The Company Secretary and Chief Executive Officer is Mr M Horabin, to whom day to day management of the charity is delegated.
Executive committee - each member company is entitled to send a representative to the executive committee meetings. Such representatives are not trustees.
Darbyshire & Horabin Limited (trading as DCL Transport Ltd) Kidds Transport Limited
J & M Collinson Limited
Westmoreland and Furness Council (formerly Suth Lakeland District Council) Lancaster City Council
| Quinn (Haulage Contractors) Carrs Billington Limited RW Little (Haulage)
- S$ J Bargh Limited
Bibby's of Ingleton
- G.Powell Esq
G.Sierpinski Esq
The registered office of the charity is: 5 Penrod Way Heysham Lancaster LA3 2UZ
Bankers Barclays Bank plc 38 Market Street Lancaster
LA1 1HR
Solicitors
Oglethorpe, Sturton & Gillibrand 16 Castle Park
Lancaster LA1 1YG
Auditors
Azets Audit Services Fleet House
New Road Lancaster LA1 1EZ
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LANCASTER TRAINING SERVICES LIMITED Directors’ and Trustees' Annual Report (continued) For the year ended 31 July 2023
eee Structure, Governance & Management Governing Document
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Lancaster Training Services is a charitable company limited by guarantee and has no authorised or issued share capital 12 members, as
indicated in a list held at the registered office, agree to contribute £200 each to the assets of the charity in the event of a winding up. The
company is governed by its Memorandum and Articles of Association dated 7 September 1979 as amended by a special resolution
dated 13 November 1995. Management of the Charity’s affairs is vested in its executive committee.
Appointment of trustees of trustees trustees
The directors and trustees are subject to re-appointment annually by the members in the Annual General Meeting.
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Appointment of trustees of trustees trustees
Trustee induction and training
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|Trustees are given|such advice|and|information by the Chief|Executive|Officer as|is|necessary|to allow them to carry out their function.|
|Organisation|
|The|operation|and|administration|of the charity|is|controlled|by Mr M|Horabin,|training manager and company|secretary.|Strategic|issues|
|and|important|business|matters|including|setting|the|pay|and|remuneration|of|the|charity's|key|management|personnel|rest|with|the|
|directors|and|trustees.|They are|able|to|use|the|advice|of the|executive|committee,|to|which|each|of|the|charity's|members|can|send|
|one|representative|.|
|The chair of executive meetings|is the charity's|chairman,|Mr R W|Little.|
|During|the|year the charity employed|one|training|manager,|eleven|driving|instructors,|seven|-|house|tutors and|five administrative|staff.|
|Risk management|
|The trustees|have assessed|the major|risks to|which|the charity|is|exposed,|in|particular those|related|to|the|operations|and finances|of|
|the|charity,|and|are|satisfied|that|systems|are|in|place to|mitigate|our exposure|to|the|major|risks.|The charitable|company|is|striving|to|
|build|up|its|liquid assets|in|its|current|location|and|believes|that|it|is taking|the|necessary steps to achieve|this|end.|
|Objectives|&|Activities|
|The|charity's|principal|object as|set out|in the Memorandum|of Association|is|to|provide|training|for persons employed|or intending|to be|
|employed|in|Road|Transport|activities|or|such|other|persons|employed|or|intending|to|be|employed|in|such|other|activities|as|may|
|benefit from|the training|services|provided|by the Company.|
|The|principal|activity|of the|charity during|the|year was|the|continuing|provision|of transport|related|training|services|to|its|members and|
|other|outside|interests.|The|charity|meets|the|standards|required|by|the|Education|&|Skills|Funding|Agency|/|Ofsted,|the|government|
|body|responsible|for|maintaining|the|standards|of|government|funded|training|providers,|thus|maintaining|its|status|as|an|approved|
|training|centre|in|North|Lancashire and|South|Cumbria.|
|Policies|adopted|to further the objects of|the charity|
|-|Maintaining strong|links with|its member companies|in|order to continue the|original|principal|activity.|
|-|Continuing|to be the approved|training centre for the Education|& Skills|Funding Agency.|:|
|-|Achieving|high|rates of qualification|to secure|a commensurate|level|of funding from the|Education & Skills|Funding Agency.|
|-|Raising|the|profile|of the charity to outside|businesses through|the wide|range|of|road transport|training|services|provided.|
|-|Maintaining the|standards|required|by the Education|&|Skills|Funding|Agency|/ Ofsted.|
|-|To|maintain the|standards|required|for ‘Investors|in|People’.|
|-|To|maintain|links with|National|bodies which support the charity in the|pursuit of|its objectives|e.9.|The|National|Logistics Academy,|
|The|Road Transport|Association.|
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Achievements and Performance
The charity has continued to offer a wide range of training services during the year. The major achievement has been the
high rates of qualification, thus receiving the appropriate level of ESFA fund ing (86.7% overall success against a National
average of 53.4%). Over 1,000 individuals were trained during the year. Of the 334 Driving & Vehicle Standard Agency
(DVSA) driving tests conducted, a first time pass rate of 81% and overall pass rate of 80% was achieved against a
combined national average of 59.7% (LGV & 64.5% (PCV). in the year the Compnay maintained the "GOOD" grade in the
full OfSTED inspection. The company has continued successfully to establish itself at Heysham where it believes the
facilities are excellent.
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LANCASTER TRAINING SERVICES LIMITED
Directors’ and Trustees’ Annual Report (continued) For the year ended 31 July 2023 ———eePublic benefit ee The charity offers training opportunities to employees of member companies and to others without reference to age, gender, race, or creed. The same criteria apply to trainees taken on under publicly funded schemes. The aim of the directors and trustees is to provide its facilities on a no profit no loss basis subject to maintaining a satisfactory ongoing cash flow position. The directors and trustees believe that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.
Financial Review
Results
Asummary of the results is as follows:
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|2023|2022|
|£|£|
|Total|incoming|revenue|resources|1,383,951|1,222,734|
|Total|resources|expended|(1,293,249)|(1,198,671)|
|Profit on|disposal|of fixed|assets|-|240|
|Net incoming|resources|for the|year|90,702|24,303|
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- In the financial year the charity had an excess of incoming resources over outgoing resources of £ 90,702 (2022 £ 24,303) all of which represents unrestricted funds. - The principal funding sources are training allowances received from Skills Funding Agency and invoiced courses - The bulk of the charity's assets consist of tangible fixed assets, all dedicated to the running of the charity. In consequence of the relocation following compulsory purchase of the company's premises the company had to establish its business at its Heysham location. The trustees believe that the company will generate cash resources to allow the future development of the charity's activities.
Reserves Policy
The trustees aim to maintain sufficient reserves to allow the company to continue to provide its training services to its members and to the community.
Unrestricted reserves at 31 July 2023 are comprised as follows:
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|£|
|Fixed|assets|1,193,973|
|Free|reserves|784,675|
|1,978,648|
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The trustees believe that free reserves amounting to one half of annual running costs would be appropriate to this charity, the target level being £700,000. Free reserves now satisfy that level and the trustees will be looking for ways in which the charity's activities can be developed commensurate with financial security.
Investment powers and policy
The Articles of Association permit the trustees to invest in the name of the charity such part of the funds as they see fit. Pricing policy
Pricing policy is such as to provide members with training facilities at as reasonable a cost as possible. Indemnity insurance
Indemnity insurance in respect of the trustees has been provided within a professional indemnity policy. The cost of this insurance amounted to £ 1,265 (2022: £355).
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LANCASTER TRAINING SERVICES LIMITED
Directors’ and Trustees’ Annual Report (continued) For the year ended 31 July 2023
e eeeeeOeseaeaeaoaewnNe Plans for future periods - Increased take up of Driver Certificate of Professional Competence courses. - Increase Apprentice numbers on motor vehicle maintenance programmes. - Expansion of commercial courses to include initial MOT tester training. - More driver licence acquisition with category 'B' car drivers via an automatic electric vehicle Trustees’ responsibilities in relation to the financial statements The trustees (who are also directors of Lancaster Training Services Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). i 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial Position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Statutory compliance
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and Account 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 freland published on 16 July 2014. Auditors t The auditor ,Azets Audit Services , is deeed to be reappointed under Section 487(2) of the Companies Act 2006
This report has been prepared in accordance with the provisions applicable to companies subject to the small companiss' regime.
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Disclosure of information to the auditors
We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm,
SO far as we are aware, that:
- there is no relevant audit information of which the company’s auditors are unaware; and
- we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information
and to establish that the company’s auditors are aware of that information.
In approving the Trustees' Annual Report, we al rove the Strategic Report included therein, in our capacity as company directors.
a
Trustee
Date | { aa Z
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INDEPENDENT AUDITOR'S REPORT To the members of Lancaster Training Services Limited
Opinion
We have audited the financial statements of Lancaster Training Services Limited for the year ended 31 July 2023 which comprise the Statement of Financial Activities (including Income and Expenditure Account), the Balance Sheet, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accaunting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 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.
Basis of 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees’ use of the 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report, 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. 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 inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: - the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements: and ~ the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or j ~ the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
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INDEPENDENT AUDITOR'S REPORT (continued) To the members of Lancaster Training Services Limited
eee
Responsibilities of trustees
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|As explained|more fully in the statement of trustees’|responsibilities,|the trustees, who are also|the directors|of the charity for the|
|purpose 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 charity's|ability to continue as a going concem,|disclosing,|as applicable,|matters|related to going|concern and using the|
|going concem|basis of accounting|unless|the trustees|either|intend|to liquidate the charitable company or to cease|operations,|or have|
|no|realistic|alternative|but to do|so.|
|Auditor's|responsibilities|for the audit|of the|financial|statements|
|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|auditor's|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.|
|A|further description|of our responsibilities|is|available on|the|Financial|Reporting|Council's website|at:|
|https:/Avww.frc.org.uk/auditorsresponsibilities.|This|description forms part of our auditor's report.|
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Matters on which we are required to report by exception
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|In the|light of our knowledge and|understanding|of the company and|its|environment|obtained|in|the course|of the audit, we have|not|
|identified|material|misstatements|in the|Trustees’ Annual|Report.|
|We|have|nothing|to|report|in|respect|of|the|following|matters|where|the|Companies|Act|2006|requires|us|to|report|to|you|if,|in|our|
|opinion:|
|-|adequate|accounting|records|have|not|been|kept|or|returns|adequate|for our|audit|have|not|been|received|from|branches|not|visited|
|by us;|or|
|-|the|financial|statements|are|not|in agreement with|the|accounting|records|and|returns: or|
|-|certain|disclosures|of trustees’|remuneration|specified|by law are|not made:|or|
|-|we|have|not received|all|the|information and|explanations|we|require for our audit;|or|
|-|the Trustees were|not entitled|to prepare|the financial|statements|in|accordance|with the|small companies|regime and|take advantage|
|of the|small|companies|exemption|in|exemption|from|the|requirement|to|prepare|a|strategic|report|or|preparing|the|Trustees’ Annual|
|Report.|
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Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
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INDEPENDENT AUDITOR'S REPORT (continued)
To the members of Lancaster Training Services Limited
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance; Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those teading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
trelo Hudik Semsiar
Susanna Cassey (Senior Statutory Auditor) Fleet House for and on behalf of Azets Audit Services New Road Chartered Accountants Lancaster Statutory Auditor LA1 1EZ vateNOV(4 1[is]
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LANCASTER TRAINING SERVICES LIMITED
Statement of Financial Activities
(Incorporating an Income and Expenditure Account) For the year ended 31 July 2023
| Statement of Financial Activities (Incorporating an Income andand Expenditure Account)Account) For thethe year endedended 31 July 20232023 |
Statement of Financial Activities (Incorporating an Income andand Expenditure Account)Account) For thethe year endedended 31 July 20232023 |
Statement of Financial Activities (Incorporating an Income andand Expenditure Account)Account) For thethe year endedended 31 July 20232023 |
Statement of Financial Activities (Incorporating an Income andand Expenditure Account)Account) For thethe year endedended 31 July 20232023 |
Statement of Financial Activities (Incorporating an Income andand Expenditure Account)Account) For thethe year endedended 31 July 20232023 |
Statement of Financial Activities (Incorporating an Income andand Expenditure Account)Account) For thethe year endedended 31 July 20232023 |
|---|---|---|---|---|---|
| a | |||||
| Unrestricted | Endowment | ||||
| Note | Funds 2023 |
Funds 2023 |
Total 2023 |
Total 2022 |
|
| £ | £ | £ | £ | ||
| INCOMEANDENDOWMENTS FROM | |||||
| Charitable activities | |||||
| - Trainingallowances - Coursefees |
3 | 417,041 948,362 |
417,041 948,362 |
417,513 792,378 |
|
| Othertrading activities | |||||
| - Membershipfees - Miscellaneousincome |
250 16,349 |
250 16,349 |
250 12,519 |
||
| Investments | |||||
| - Bank interestreceivable | 1,949 | 1,949 | 74 | ||
| Other | |||||
| - Profiton disposal offixed assets | - | - | 240 | ||
| Totalincomeandendowments | 1,383,951 - 1,383,951 1,222,974 8 SS laa |
||||
| EXPENDITUREON | |||||
| Charitable activities | |||||
| - Trainingcosts | 1 | 1,285,034 | 1,285,034 | 1,190,806 | |
| Other | 1 | 8,215 | 8,215 | 7,865 | |
| ee | |||||
| Totalexpenditure | 1,293,249 | - | 1,283,249 | 1,198,671 | |
| ee | |||||
| Netincome | 2 | 90,702 | . | 90,702 | 24,303 |
| Totalfund balances broughtforward at | |||||
| 1August2022 | 1,845,527 | 42,419 | 1,887,946 | 1,863,643 | |
| a | |||||
| Totalfund balances carried forward at | |||||
| 31July2023 | 1,936,229 | 42,419 | 1,978,648 | 1,887,946 |
The statement of financial activities includes all gains and losses in the year.
All incoming resources and resources expended derive from continuing activities.
In the prior year all income and expenditure was unrestricted.
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LANCASTER TRAINING SERVICES LIMITED Company registered number: 01447612 Charity registered number: 511387
Balance Sheet As at 31 July 2023
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|Note|2023|2022|
|£|£|
|Fixed|Assets|
|Tangible|assets|6|1,193,973|1,238,666|
|Current|Assets|
|Stocks|7|4,600|5,500|
|Debtors|8|137,031|119,079|
|Cash|at bank and|in|hand|818,588|677,501|
|960,219|802,080|
|Creditors:|amounts falling|due within one year|9|(175,544)|(152,800)|
|Net current assets|784,675|649,280|
|Total|assets|less current|liabilities|1,978,648|1,887,946|
|Creditors:|Amounts|falling|due after more than one year|10|.|
|Net assets|1,978,648|1,887,946|
|Funded|by:-|
|Unrestricted|funds|15|1,936,229|1,845,527|
|Endowment funds|13|42,419|42,419|
|Restricted funds|14|es|%|
|Total funds|1,978,648|1,887,946|
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These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.
‘)ard OW Alle approved by the Board of Trustees on 11 November 2023 and signed on its behalf by: Mr R W Little
Trustee
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LANCASTER TRAINING SERVICES LIMITED Company registered number: 01447612 Charity registered number: 511387
Statement of Cash Flows
For the year ended 31 July 2023
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|---|---|---|---|---|---|---|
|a|
|2023|2022|
|£|£|
|Cash flows from operating|activities:|
|Net income|/ (expenditure)|for the year|90,702|24,303|
|Adjustments|for:|
|Depreciation|of tangible assets|47,501|48,604|
|(Profit)/Loss on disposal of tangible assets|-|(240)|
|Interest paid|(8)|210|
|Interest received|(1,949}|(74)|
|Decrease/|(increase)|in stock|900|(600)|
|Decrease/|(increase)|in debtors|(17,951)|54,849|
|Increase / (decrease)|in|creditors|22,743|(12,635)|
|Net cash|provided|by operating|activities|141,938|114,417|
|Cash|flows from|investing|activities:|
|Interest received|1,949|74|
|Purchase of tangible fixed|assets|(2,808)|(65,514)|
|Proceeds|on sale of tangible|fixed|assets|240|
|Net cash (used|in)|/ provided|by Investing|activities|(859)|(65,200)|
|Cash|flows|from|financing|activities|
|Loan|repayments|-|(14,984)|
|Interest paid|8|(210)|
|Net cash|(used|in) / provided|by financing|activities|8|(15,194)|
|Net increase in cash and cash|equivalents|141,087|34,023|
|Cash and cash equivalents|at the|beginning|of the year|677,501|643,478|
|Cash and cash equivalents at the end|of the year|818,588|677,501|
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LANCASTER TRAINING SERVICES LIMITED
Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
General information
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|Lancaster Training|Services|Limited|is|a|private|charitable company|limited|by guarantee|and|has|no|authorised|or|issued|share|capital.|
|The|charitable company|is|incorporated|in|England|and|Wales|and|its|place|of|business|is|the|registered|office|at The|Training|centre,|5|
|Penrod|Way,|Heysham,|Morecambe,|Lancashire,|LA3|2UZ.|
|Basis|of accounting|
|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|1|January|2015)|-|(Charities|SORP|(FRS|102)),|the|Financial|Reporting|Standard|applicable|in|
|the UK and|Republic|of|Ireland|(FRS|102) and|the|Companies|Act|2006.|
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Lancaster|Training|Services|Limited|meets|the|definition|of|a|public|benefit|entity|under|FRS|102.|Assets|and|tiabilities|are|initially|
|recognised|at|historical|cost or transaction|value|unless|otherwise|stated|in|the|relevant accounting|policy|note.|The|financial|statements|
|are|presented|in|sterling|which|is the functional|currency|of the|charity and|rounded|to the|nearest|£.|
|Going|concern|
|The accounts|showa|surplus of £90,702 and there are no|material|uncertainties|regarding|going concem.|There|are also total|reserves|
|of over £1.8m.|Therefore|in the|opinion|of the|trustees|the|financial|statements|should|be|prepared on|a|going|concern|basis.|
|Incoming|resources|
|Allincoming|resources|are|included|in the|Statement of|Financial|Activities|(SoFA) when|the|charity|is|legally|entitled|to|the|income after|
|any performance|conditions|have|been|met,|the|amount can|be|measured|reliably and|it|is|probable that the income will|be|received.|
|Income from|trading|activities|includes|income|earned|from|course fees|and|consultancy to|raise funds for the|charity.|Income|is|
|received|in exchange for supplying|goods and|services|in|order to|raise|funds and|is|recognised when entitlement|has|occurred.|
|The charity receives government|grants|in|respect|of Training|Allowances from|the|Government's|Skills|Funding Agency.|Income from|
|government and|other grants|are|recognised|at fair value when|the|charity has|entitlement|after any|performance|conditions|have been|
|met,|it is|probable|that the|income|will|be|received|and|the|amount|can|be|measured|reliably.|If entitlement|is|not met then these|
|amounts|are|deferred.|
|Resources|expended|
|All|expenditure|is|accounted|for on an accruals|basis|and|has|been|classified|under|headings|that aggregate|all|costs|related|to the|
|category.|Expenditure|is|recognised where there|is a|legal|or constructive|obligation|to|make|payments|to|third|parties,|it|is|probable|that|
|the|settlement|will|be|required and the amount|of the|obligation|can|be|measured|reliably.|It|is|categorised|under the|following|headings:|
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-
Expenditure on charitable activities includes costs incurred by the charity in the carrying out of training which is the principal activity of the charity.
-
Other expenditure represents those items not falling into the categories above
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
11
LANCASTER TRAINING SERVICES LIMITED
Accounting Policies (continued)
SOMULL errr Support costs allocation
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
Tangible fixed assets and depreciation
Tangible fixed assets are initially recognised at cost.
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Depreciation|has|been|provided|on|all|tangible|fixed|assets|at|rates|calculated|to|write|off the|cost|less estimated|residual value|of each|
|asset evenly over|its|estimated|useful|life|as|follows:|
|Freehold|buildings|1%|straight|line|basis|
|Plant and equipment|25%|straight|line|basis|
|Office equipment|15%|straight|line|basis|
|Motor vehicles|25%|straight|line basis|
|Freehold|land|is|not depreciated.|
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Stocks
Stocks are valued at the lower of cost and net realisable value.
Debtors Trade and other debtors are recognised at the settlement amount dus after any trade discounts offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
Cash at bank and in hand
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Cash|is represented|by cash|in|hand|and|deposits with|financial|institutions|repayable|without|penalty on notice|of not|more than 24|
|hours.|Cash|equivalents are highly liquid|investments|that mature|in no more than three months from|the date of acquisition and|that are|
|readily convertible|to|known amounts|of cash|with|insignificant|risk|of change|in|value.|
|Creditors|
|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 trade|discounts due.|
|Employee|benefits|
|When employees|have rendered|service to the|charity,|short-term|employee|benefits to which|the employees are|entitled|are|recognised|
|at the|undiscounted|amount expected|to be|paid|in exchange|for that|service.|
|Pensions|
|The|charity operates a|defined|contribution|pension scheme.|The assets|of the scheme are|held|separately from those|of the charity.|
|Pension costs charged|represent|the|contributions|payable|by the|charity|in|the|year.|
|Operating|leases|
|Rentals|applicable to operating|leases where|substantially|all of the|benefits and|risks of ownership|remain with the|lessor are charged|
|against net incoming|resources|as|incurred.|
|Financial|instruments|
|Financial|instruments|are|classified and|accounted for,|according|to the|substance|of the|contractual arrangement,|as|either financial|
|assets,|financial|liabilities or|equity instruments.|An equity instrument|is any contract that evidences a|residual|interest|in|the assets|of|
|the company after deducting|all|of|its|liabilities.|
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12
LANCASTER TRAINING SERVICES LIMITED
Accounting Policies (continued)
Fund accounting
Funds held by the charity are either:-
Unrestricted general funds
- These are incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds to be used at the discretion of the trustees.
Restricted funds
- These are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular purposes. The fixed asset fund balance funds future depreciation of assets purchased using restricted funds.
Endowment funds
- These funds represent the assets of the Lancaster and District Road Haulage Group Training Association at the date on which which the company was incorporated
Related party transactions
The charity discloses transactions with related parties. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the trustees, separate disclosure is necessary to understand the effect of the transactions on the charity financial statements.
Judgements and key sources of estimation uncertainty
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
13
LANCASTER TRAINING SERVICES LIMITED
Notes to the financial statements For the year ended 31 July 2023
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||||||||||
|---|---|---|---|---|---|---|---|---|
|Eee|
|1|Total|resources|expended|
|Training|Supportcosts|Total2023|Total2022|
|£|£|£|£|
|Costs|directly|allocated|to|activities|
|Vehicle fuel and|oil|80,843|-|80,843|72,308|
|Vehicle|repairs|20,952|-|20,952|24,845|
|Vehicle|licence,|insurance,|and|hire|21,844|-|21,844|19,783|
|Salaries|812,443|-|812,443|700,331|
|Employer pension|contributions|55,427|-|55,427|49,521|
|Insurance|15,198|-|15,198|13,532|
|Office expenses|5565|:|5,555|5,337|
|Telephone|3,235|-|3,235|3,307|
|Computer expenses|5,382|-|5,382|3,972|
|Advertising|6,473|-|6,473|6,366|
|Light and heat|(152)|-|(152)|(4,019)|
|Bad debts|76|-|76|716|
|Rates and water|9,404|-|9,404|9,662|
|Teaching and course expenses|125,192|-|125,192|163,477|
|ADR course fees|11,029|-|11,029|9,140|
|Subscriptions|, and|consultancy accreditations|12,187|-|12,187|21,476|
|Staff training course|9,285|-|9,285|5,171|
|Repairs and maintenance|13,639|-|13,639|11,606|
|Bank charges|4,078|-|4,078|3,279|
|Bank|interest|(8)|-|(8)|210|
|Audit and accountancy|-|8,215|8,215|7,865|
|Legal and|professional fees|581|-|581|2,575|
|Sundry expenses|15,520|15,520|12,368|
|Laundry and cleaning|9,350|-|9,350|7,239|
|Depreciation -|Freehold|buildings|10,222|-|10,222|10,222|
|- Motor vehicles|15,421|-|15,421|17,541|
|- Plant and|equipment|18,681|-|18,681|16,870|
|- Office equipment|3,177|-|3,177|3,971|
|Seeee|ee|
|1,285,034|8,215|1,293,249|1,198,671|
|——SS——————————SS|ee|
|2|Net incoming|resources for the year|2023|2022|
|£|£|
|The net incoming|resources|for the|year|is|stated|after charging|/|(crediting) the following:|
|Depreciation of tangible fixed assets|47,501|48,604|
|Profit on disposal|of fixed assets|:|(240)|
|Auditor's|remuneration|- audit services|6,000|5,590|
|Auditor's|remuneration|- non|audit services|1,600|1,600|
|Auditor's|remuneration|-|non|audit|services|comprises:|
|VAT services|1,600|1,600|
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14
LANCASTER TRAINING SERVICES LIMITED
Notes to the financial statements (continued) For the year ended 31 July 2023
3 Government grants
The charity received grants from the Government's Skills Funding Agency totalling £ 365,298 (2022: £417,513) during the year which enabled the Charity to provide Apprenticeship training courses.
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||||||||||
|---|---|---|---|---|---|---|---|---|
|4|Employees|2023|2022|
|£|z|
|The|aggregate|payroll|costs during|the|year|amounted|to|:-|
|Wages and|salaries|748,941|645,824|
|Social|security costs|63,502|54,507|
|Pension|costs|55,427|49,521|
|867,870|749,852|
|The average|monthly number of full|time and|part time|employees|during|the|year was:-|
|2023|2022|
|Number|Number|
|Training:|
|Management|and|administration|7|6|
|Operations|staff|19|19|
|26|25|
|The average|monthly number of full|time|equivalent employees|during the|year was:-|20|22|
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One employee earned between £70,000 - £80,000 in in the year (2022: Nil). During the previous one employee earned between £60,000 - £70,000 (2023: Nil).
5 Trustees and key management personnel remuneration
No trustee received any remuneration from the charity during either of the two financial years.
Travel expenses reimbursed to 2 trustees amounted to £1,786 (2022: £702).
During the year the charity paid £77,011 (2022: £60,956) in remuneration to key management personnel.
6 Tangible fixed assets
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|||||||||
|---|---|---|---|---|---|---|---|
|Freehold|
|Land|and|Plant and|Office|Motor|
|Buildings|Equipment|Equipment|Vehicles|Total|
|£|£|£|£|3|
|Cost|
|At|31|July 2022|1,282,127|327,958|115,978|373,676|2,099,739|
|Additions|-|2,808|-|.|2,808|
|Disposals|-|.|-|(45,759)|(45,759)|
|At 31|July 2023|1,282,127|330,766|115,978|327,917|2,056,788|
|Depreciation|
|At 31|July 2022|152,544|278,828|105,095|324,606|861,073|
|Charge|for the|year|10,222|18,681|3,177|15,421|47,501|
|Disposals|-|-|-|(45,759)|(45,759)|
|At|31|July 2023|162,766|297,509|108,272|294,268|862,815|
|Net book|value|
|At 31|July 2023|1,119,361|33,257|7,706|33,649|1,193,973|
|At 31|July 2022|1,129,583|49,130|10,883|49,070|1,238,666|
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15
LANCASTER TRAINING SERVICES LIMITED
Notes to the financial statements (continued) For the year ended 31 July 2023
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|||||||||
|---|---|---|---|---|---|---|---|
|Eee|
|7|Stocks|2023|2022|
|£|£|
|Stock|of fuel|4,100|5,000|
|Sundry stock|500|500|
|4,600|5,500|
|8|Debtors|2023|2022|
|£|£|
|Trade debtors|72,250|66,757|
|Prepayments|25,949|24,893|
|Accrued|income|38,832|27,429|
|137,031|119,079|
|9|Creditors:|amounts|falling|due within|one year|2023|2022|
|&|£|
|Bank|loan|-|3,806|
|Trade creditors|19,049|18,429|
|Taxation and|social|security|53,395|40,166|
|Accruals and|deferred|income|103,100|90,399|
|175,544|152,800|
|10|Creditors:|amounts falling due|after more than one year|2023|2022|
|£|£|
|Bank loan|"|.|
|Due|between|2 and 5|years|=|%|
|Due|in|more than|5 years|-|-|
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16
LANCASTER TRAINING SERVICES LIMITED
Notes to the financial statements (continued) For the year ended 31 July 2023
Se 11 Analysis of net assets between funds
eee
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||||||||
|---|---|---|---|---|---|---|
|Unrestricted|Restricted|Endowment|Total|
|funds|funds|funds|funds|
|£|2|£|£|
|Tangible fixed assets|1,151,554|-|42,419|1,193,973|
|Current assets|960,219|-|-|960,219|
|Current|liabilities|(175,544)|-|-|(175,544)|
|Long|term|liabilities|-|-|-|-|
|——————————————————————————|
|1,936,229|.|42,419|1,978,648|
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12 Endowment funds
The fund of £42,419 (2021 - £42,419) represents the assets of the Lancaster and District Road Haulage Group Training Association at the date at which Lancaster Training Services Limited was formed.
13 Restricted funds
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||||||||
|---|---|---|---|---|---|---|
|Fixed asset|Total|Total|
|fund|2021|2020|
|£|£|£|
|At|1|August|=|7|
|Annual|release|of fixed|asset|restricted|fund|«|
|At 31|July|-|-|-|
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Purposes of restricted funds
The fixed asset fund represents monies received as grants for fixed assets purchased and funds the annual depreciation of the assets.
14 Unrestricted funds
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|||||||||
|---|---|---|---|---|---|---|---|
|General|Total2023|Total2022|
|£|£|£|
|At|1|August 2022|1,845,527|1,845,527|1,821,224|
|Surplus|for the year|90,702|90,702|24,303|
|At 31|July 2023|1,936,229|1,936,229|1,845,527|
|15|Capital commitments|
|There were|no|capital|commitments|at the|balance|sheet|date.|
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17
,
LANCASTER TRAINING SERVICES LIMITED
Notes to the financial statements (continued) For the year ended 31 July 2023
EEE 16 Operating lease commitments
The amounts payable in the next year in respect of operating leases are shown below, analysed according to the expiry date of the leases. 2023 2022 £ £ Office equipment Within 12 months 268 268 268 268
17 Guarantee
The charitable company is limited by guarantee and has no authorised or issued share Capital. Twelve members agree to contribute £200 each to the assets of the charity in the event of a winding up.
18 Pension costs
The company makes defined contributions to individual employees personal pension plans. The assets of the schemes are held in separately administered funds. The pension cost charge represents contributions payable by the company and amounted to £ 55,427 (2022: £ 49,521). All contributions were paid during the year.
19 Controlling party
There was no controlling party of the company in either the current or previous year.
20 Related Party transactions
There are no related party transactions that require disclosure in the current or previous year.
21 Analysis of changes in net debt
| 1 August | Cashflows | 31 July | |
|---|---|---|---|
| 2022 | 2023 | ||
| £ | £ | £ | |
| Cash atbankand inhand Loans fallingduewithin one year |
677,501 (3,806) |
141,087 3,806 |
818,588 - |
| Loans fallingdue aftermore thanone year | - | ||
| 673,695 | 49,006 | 673,695 |
18
LANCASTER TRAINING SERVICES LIMITED
Management information
For the year ended 31 July 2023
The following page does not form part of the statutory financial statements
19
‘
Income and expenditure account For the year ended 31 July 2023
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||||||||
|---|---|---|---|---|---|---|
|Eee|
|2023|2022|
|tz|£|
|Incoming|Resources:|
|Apprenticeship funding|365,298|349,192|
|Other|IHT|training|51,743|68,321|
|Course fees|927,343|771,950|
|DGSA consultancy|21,019|20,428|
|Bank deposit|interest|1,949|74|
|Membership fees|250|250|
|Rental|income|11,809|9,974|
|Other income|4,540|2,545|
|Profit on disposal of fixed assets|-|240|
|1,383,951|1,222,974|
|Resources|Expended:|
|Vehicle fuel and|oil|80,843|72,308|
|Vehicle|repairs|20,952|24,845|
|Vehicle|licence,|insurance,|and|hire|21,844|19,783|
|Salaries|812,443|700,331|
|Employer pension|contributions|55,427|49,521|
|Insurance|15,198|13,532|
|Office expenses|5,555|5,337|
|Telephone|3,235|3,307|
|Computer expenses|5,382|3,972|
|Advertising|6,473|6,366|
|Light and|heat|(152)|(4,019)|
|Rates and water|9,404|9,662|
|Teaching|and course expenses|125,192|163,477|
|ADR course fees|11,029|9,140|
|Subscriptions|, and consultancy accreditations|12,187|21,476|
|Staff training course|9,285|5,171|
|Repairs and|maintenance|13,639|11,606|
|Bad|debts|76|716|
|Bank charges|4,078|3,279|
|Bank|interest|(8)|210|
|Legal and|professional fees|581|2,575|
|Audit and accountancy|8,215|7,865|
|Sundry expenses|15,520|12,368|
|Laundry and cleaning|9,350|7,239|
|Depreciation|- Freehold|buildings|10,222|10,222|
|- Motor vehicles|15,421|17,641|
|-|Plant and equipment|18,681|16,870|
|- Office equipment|3,177|3,971|
|1,293,249|1,198,671|
|Net incoming incoming|resources for the year for the year the year year|90,702|24,303|
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Net incoming incoming resources for the year for the year the year year
20