2022-07-31-accounts - Herefordshire And Worcestershire Group Training Association Limited

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	Page
Reference and Administrative Details
Report of the Trustees	2 to	6
Report ofthe Independent Auditors	7 to	10
Statement of Financial Activities
Balance Sheet	12
Cash Flow Statement	13
Notes to the Cash Flow Statement	14
Notes to the Financial Statements	15 to	25
Detailed Statement of Financial Activities	26

TRUSTEES		D Goldsmith
		G D Gittoes
		C Rowles (resigned	6.8.21)
		5 Green
		DJ Hunt
		N J Chatley (resigned 6.8.21)
		D M Wood
		AJ Cook (appointed 6.5.22) A Hall (appointed 4.8.22)
COMPANY SECRETARY		RJ Griffiths
REGISTERED OFFICE		Holmer Road
		Hereford
		HR4 9SX
REGISTERED COMPANY	NUMBER	1475237 (England	and Wales)
REGISTERED CHARITY	NUMBER	512976
AUDITORS		Thorne Widgery Accountancy		Ltd
		Chartered Accountants
		Statutory Auditors
		2 Wyevale Business Park
		Kings Acre
		Hereford
		Herefordshire
		HR4 785
SOLICITORS		Lanyon Bowdler
		12The Business Quarter
		Eco Park Road
		Ludlow
		Shropshire
		SY8 1FD
BANKERS		Lloyds Bank PLC
		8 High Town
		Hereford
		HR1 2AE
KEYMANAGEMENT		N Morgan	Chief Executive
		JJones	Head of Organisational		Development
		A Jones	Head of Engineering
		V Smith	Head of Commerce
		BGriffiths	Finance Manager

Re of the Truste s for the Yea ed 31 Jul 2022	Re of the Truste s for the Yea ed 31 Jul 2022
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The 1.	priorities for the year were to: Meet the training needs of the Members and other		customers, evidenced		by feedback	surveys	and	continual
2.	demand for services Deliver apprenticeships for employers to the criteria ofthe Education 8 Skills Funding					Agency	and	Institute
	for Apprenticeships and Technical Education
3.	Maintain high levels of achievement and progression Contribute to regional and national skRI priorities through memberships of local and national						network
	gr'oops
5.	Progress the 'ideal' ofemployer-led training
The	Association operated out of two sites located in Hereford and Worcester.
The	Association has again continued to work in achieving Further developing existing Apprenticeship Standards	its priorities as and introducing		set out above whilst: new Apprenticeship		standards		as a lead
	provider to service local needs
	Addressing the lack of applicants onto apprenticeship Collaborating with local authorities to tender for and		programmes. deliver funded	training	programmes.

- -	Quality of Provision Governanc, Influence	Quality of Provision Governanc, Influence	& Relationships
-	Structure il Staffing
-	Service Et Delivery
-	Resources, Premises	R	Equipment
-	Quality of Provision
-	Financial Health

b uarantee Re 'stered num Baia~bggt ~Ju( 20~2	ber: 14	75237
					31.7.22	31.7.21
		Unrestricted	Designated	Restricted	Total	Total
		fund	fund	fund	funds	funds
	Notes	E	E	E	E	E
FIXEDASSETS Tangible assets Investment property	10 11	3,989,452 845 000			3,989,452 845 000	4,008,477 845,000
		4,834,452			4,834,452	4,853,477
CURRENT ASSETS Debtors Cash at bank	12	577,578 936 520			577,578 936 520	432,276 1 281 164
		1,514,098			1,514,098	1,713,440
CREDITORS
Amounts falling due within one year	13	(333,190)			(333,190)	(417,366)
NET CURRENT ASSETS		1,180908			1 180908	1 296 074
TOTAL ASSETS LESS CURRENT LIABILITIES		6,015,360			6,015,360	6,149,551
CREDITORS
Amounts falling due after more than one year	14	(2,152,446)			(2,152,446)	(2,269,796)
NET ASSETS		3 862,914			3,862 914	3 879,755
FUNDS	18
Unrestricted funds: General fund					3 862 914	3 879,755
TOTAL FUNDS					3 862.914	3 879,155

for the Year Ended 3	1Ju	( 2022
							31.7.22	31.7.21
				Unrestricted	Designated	Restricted	Totai	Total
				fund	fund	fund	funds	funds
			Notes	E	E	E	E	E
INCOME AND ENDOWMENTS
FROM
Charitable activities
Provision of training				3,182,804			3,182,804	2,839,019
Investment Income Other income			2	91,146 ~4855			91,146 ~4855	257,270
Total				~3278,805			~3278 805	~3096 289
EXPENDITURE ON
Raising funds Investment management		costs	4	~3542			3,542	2 984
				3,542			3,542	2,984
Charitable activities
Provision of training				~3,292 104			~3292 104	~2689 674
Total				~3295 646			~3,295 646	2,692,658
NET INCOME/(EXPENDITURE)				(16,841 )			(16,841)	403,631
RECONCILIATION OF FUNDS
Total funds brought	forward			3,879,755			3,879,755	3,476,124
TOTAL FUNDS CARRIED
FORWARD				3,862,914			~3862 914	~3879 755

Cash Flow Statement
f rthe Year Ended 31Ju	2022
				31.7.22	31.7.21
			Notes	E
Cash flows from operating activities Cash generated from operations Interest paid Rental income				(136,809) (46,076) ~88 292)	439,048 (35,447) ~255 331
Net cash (used in)/provided	by operating		activities	~271 177)	~148 270
Cash flows from investing activities Purchase of tangible fixed assets Sale oftangible fixed assets Interest received Rental income				(55,188) 11,500 2,854 ~88 292	(10,680) 1,939 ~255 331
Net cash provided by investing activities				~47 458	~246 590
Cash flows from financing New loans in year Loan repayments in year	activities			120925	250,000 ~80 301
Net cash (used in)/provided	by financing		activities	~120 925)	~169699
Change in cash and cash equivalents the reporting period		in		(344,644)	564,559
Cash and cash equivalents beginning ofthe reporting	at the period			~1281 164	716,605
Cash and cash equivalents the reporting period	at the end	of		~936 520	~1281 164

RECONCILIATION OF ACTIVITIES	N	E	T (	EXPENDITURE)/INC	OME TO NET CASH	FLOW FROM	OPERATING
							31.7.22	31.7.21
							E	E
Net (expenditure)/income				for the reporting	period (as per the
Statement of Financial Adjustments for:		Activities)					(16,841)	403,631
Depreciation charges							67,568	78,528
Profit on disposal of	fixed assets						(4,855)
Interest received							(2,854)	(1,939)
Interest paid							46,076	35,447
Increase in debtors							(145,302)	(190,467)
(Decrease)/increase	in	creditors					~80 601)	113,848
Net cash (used in)/provided				by operations			~136 809)	~439 048
ANALYSIS OF CHANGES			IN	NET DEBT
						At 1.8.21	Cash flow	At 31.7.22
						E	E	E
Net cash
Cash at bank						~1281 164	~344 644)	~936 520
						~1281 164	~344 644)	~936 520
Debt
Debts falling due within			1 year			(139,059)	3,576	(135,483)
Debts falling due after		1	year			(2,269,796)	117,350	~2, 152,446)
						(2,408,855)	120,926	(2,287,929)
Total						j1,127,691)	~223,718)	(1,351,409)

useful economic lives as f	ollows:
Property Improvements	Straight	Line	over 10years
Fixtures ft Fittings	Straight	Line	over 4 years
Plant ft Machinery	Straight	Line	over 10years
Hardware ft Software	Straight	Line	over 3years
IT Es Infrastructure	100XStraight		line in year 1

three months or less from	three months or less from	th	e date of ac	quisition or opening oft	he deposit or si	milar account.
INVESTMENT INCOME						31.7.22	31.7.21
				Unrestricted	Restricted	Total	Total
				funds	funds	funds	funds
				E	E	E	C
Rents received Investment income One-off investment	income			88,292 2,854		88,292 2,854	88,679 1,939 166,652
				91,146		~91 146	~257 270
INCOME FROM CHARITABLE			ACTIVITIES			31.7.22	31.7.21
Government funds			Activity Provision	of training		E 2,666,658	E 2,354,131
Employers contributions other course income Room hire Grants - CJRS Other income		and	Provision Provision Provision Provision	of training of training of training of training		513,921 2,225	453,592 3,166 26,480 ~1650
						~3182 804	~2839 019
Grants received, included		in	the above,	are as follows:		31.7.22	31.7.21
						E	E
Covid Job Retention	Scheme						26,480
INVESTMENT MANAGEMENT			COSTS			31.7.22	31.7.21
				Unrestricted	Restricted	Total	Total
				funds	funds	funds	funds
				E	E	E	E
Interest payable and similar			charges	3,542		~3542	2,984

Net income/(e	xpenditure)	is stated after charging/(crediting	):
			31.7.22	31.7.21
			E	E
Depreciation	- owned assets		67,568	78,528
Surplus on disposal offixed assets			(4,855)
Auditors' fees	- statutory	audit	7,134	7,134
Operating lease payments			30,091	~32 980

								31.7.22	31.7.21
								E	E
Wages and salaries								1,487,804	1,362,082
Social security costs Other pension costs								156,438 ~74 470	143,975 74,138
								1,718,712	1,580,195
The average	monthly	number of employees		during the year was		as follows:
								31.7.22	31.7.21
Key management								5	5
Trcdning								34	31
Administration								10	9
								49	45
The number	of employees		whose employee	benefits	(excluding	employer	pension	costs) exceeded	E60,000w
								31.7.22	31.7.21
E70,001 - E80,000								1	1

Association Limited arantee othe Fina ' ISt tement - conti r Ended 31 Jul 2022	Association Limited arantee othe Fina ' ISt tement - conti r Ended 31 Jul 2022	Association Limited arantee othe Fina ' ISt tement - conti r Ended 31 Jul 2022	Association Limited arantee othe Fina ' ISt tement - conti r Ended 31 Jul 2022
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted				Designated	Restricted		Total
			fund	fund	fund		funds
			f.	L	E		E
INCOME AND ENDOWMENTS		FROM
Charitable activities Provision of training			2,839,019				2,839,019
Investment income			~257 270				~257 270
Total			~3096289				~3096 289
EXPENDITURE ON
Raising funds Investment management	costs		~2984				~2984
			2,984				2,984
Charitable activities Provision of training			~2689 674				~2,689 674
Total			~2692 658				~2692 658
NET INCOME			403,631				403,631
RECONCILIATION OF FUNDS Total funds brought forward			3,476,124				3,476,124
TOTAL FUNDS CARRIED	FORWARD		~3879,755	-		-	~3879 755

TANGIBLE	FIXEDASSETS
				Improvements
			Freehold	to	Plant and
			property	plopelty	machinery
			E	E	E
COST
At 1 August	2021		3 740 656	326,821	402,687
Additions Disposals					40,78S ~43 675)
At 31 July	2022		~3740 656	326,821	~399800
DEPRECIATION
At 1 August	2021			160,794	306,895
Charge for Eliminated	year on disposal			32,682	24,084 ~37,030)
At 31 July	2022			~193476	~293 949
NET BOOK	VALUE
At 31 July	2022		~3740 656	133,345	105 851
At 31 July	2021		~3740 656	166,027	~95 792
		Fixtures
		and	Hardware	IT El
		fittings	Er Software	Infrastructure	Totals
		E	E	E	E
COST
At 1 August	2021	34,001	64,045	33,766	4,601,976
Additions Disposals			14,400		55,188 ~43 675)
At 31 July	2022	34,001	78,445	33,766	~4613 489
DEPRECIATION
At I August	2021	34,001	58,043	33,766	593,499
Charge for Eliminated	year on disposal		10,802		67,568 ~37,030)
At 31 July	2022	34,001	~68 845	33,766	624,037
NET BOOK	VALUE
At 31 July	2022		9,600		3,989,452
At 31 July	2021		6,002		~4008,477

and an increase of 685,000. Te cartae company as the items at fair value at date of transition to FRS 102.The investment at the reporting date. The directors are ofthe opinion that this is still	property will be measured a a true market value.	t fair value
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR	31.7.22	31.7.21
		E
Trade and other debtors Prepayments and accrued income	532,479 45,099	388,290 ~43 986
	~577 578	432,276
CREDITORS: AMOUNTS FALLIHG DUE WITHIN ONE YEAR	31.7.22	31.7.21
	E	E
Bank loans and overdrafts (see note 15) Trade and other creditors Social security and other taxes Accruals and deferred income	135,483 105,219 61,105 31,383	139,059 186,361 44,189 47,757
	333,190	417,366
	2022	2021
	E	E
Deferred Income at 1 August 2021 Released from previous years Resources deferred in the year	3,763 (3,763) 3 763	16,608 (16,608) 3 763
Deferred Income at 31 July 2022	3 763	3 763

for th	e Year Ended 31 Jul 2022	e Year Ended 31 Jul 2022	e Year Ended 31 Jul 2022	e Year Ended 31 Jul 2022
14.	CREDITORS: AMOUNTS FALLING				DUE AFTER MORE THAN		ONE YEAR
								31.7.22	31.7.21
								E	C
	Bank loans	(see note 15)						~2152,446	~2269 796
15.	LOANS
	An analysis	of the maturity	of	loans is given below:
								31.7.22	31.7.21
								E	E
	Amounts falling due within		one year on demand:
	Bank loans Coronavirus	Business Interruption			Loan			93,816 ~41 667	97,392 ~41 667
								135,483	~139059
	Amounts falling between one			and two years:
	Bank loans Coronavirus	- 1-2years Business Interruption			Loan			93,816 ~41 667	97,392 ~50000
								~135483	~147 392
	Amounts falling due between			two and five		years:
	Bank loans	- 2-5 years						281,449	292,176
	Coronavirus	Business Interruption			Loan			~125000	~158333
								406,449	~450 509
	Amounts falling due in more than five years:
	Repayable	by instalments:
	Bank loans	more 5yr by instai						1,610,514	1,671,895
16.	LEASING AGREEMENTS
	At 31 July	2022 the total future minimum				lease payments	under non-cancellable	operating leases	were:
	Other operating leases
								31.7.22	31.7.21
	Expiring:							E	E
	Within one	year						14,470	24,672
	Between one and five years							~30 861	30 336
								48 331	55008

At 31 July 2022 the total future	operating	leases	were:
Land and Buiidings
	31.7.22		31.7.21
Expiring:	E		E
Within one year	58,328		47,392
Between one and five years
	~58	328	~47 392

31.7.22	31.7.21
E	E
~2287 929	~2408 855

					Net
					movement	At
				At 1.8.21	in funds	31.7.22
				E	E	f.
Unrestricted Generalfund	funds			3,879,755	(16,841)	3,862,914
TOTAL FUNDS				~3 879 755	~16 841)	~3 862 914
Net movement	in funds, included		in the above are as follows:
				Incoming	Resources	Movement
				resources	expended	in funds
				E	f.	E
Unrestricted Generalfund	funds			3,278,805	(3,295,646)	(16,841)
TOTAL FUNDS				~3278 805	~3295 646)	16,841
Comparatives	for movement	in	funds
					Net
					movement	At
				At 1.8.20	in funds	31.7.21
				E	E	E
Unrestricted Generalfund	funds			3,476,124	403,631	3,879,755
TOTAL FUNDS				~3476 124	~403 631	~3879 755

Comparative	net movement in funds, inciu	ded in the above are as follows:
		Incoming	Resources	Movement
		resources	expended	in funds
		E	C	f.
Unrestricted	funds
Generalfund		3,096,289	(2,692,658)	403,631
TOTAL FUNDS		~3096 289	~2,692 658)	~403 631

A curren	t yea	r 12months and prior year 1	2months combined position is as follo	ws:
				Net
				movement	At.
			At 1.8.20	in funds	31.7.22
			E	E	C
Unrestricted		funds
General	fund		3,476,124	386,790	3,862,914
TOTAL	FUNDS		~3 476 124	386,790	~3 862 914

			Incoming	Resources	Movement
			resources	expended	in funds
			E	E	6
Unrestricted		funds
General	fund		6,375,094	(5,988,304)	386,790
TOTAL	FUNDS		6,375,094	~5 988 304)	~386 790

for the Year Ended	31 Ju	l 20	22
				31.7.22	31.7.21
				E	E
INCOME AND ENDOWMENTS
Investment income
Rents received				88,292	88,679
Investment income				2,854	1,939
One-off investment	income				~166652
				91,146	257,270
Charitable activities
Government funds				2,666,658	2,354,131
Employers contributions		and	other course
'Ineoale				513,921	453,592
Room hire				2,225	3,166
Grants - CJRS Other income					26,480 ~1650
				3,182,804	2,839,019
Other income Gain on sale oftangible fixed			assets	~4855
Total incoming resources				3,278,805	3,096,289
EXPENDITURE
Investment management		costs
Bank loan interest				3,542	2,984
Charitable activities
Staff salaries				1,487,804	1,362,082
Socialsecurity				156,438	143,975
Pensions				74,470	74,138
Training and courses				701,186	533,375
Development and acquisition			expenditure	16,320	7,458
Premises costs				417,409	186,780
Office Costs				328,375	270,875
Improvements to property				32,682	37,260
Depreciation plant 8 machinery				24,086	15,017
Fixtures and fittings					4,905
Depn of hardware R Bank loan interest	software			10,800 ~42 534	21,346 ~32 463
				~3292 104	~2,689 674
Total resources expended				~3295,646	~2692 658
Net (expenditure)/income				(16,841)	~403 631