2023-07-31-accounts - Herefordshire And Worcestershire Group Training Association Limited

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REGISTERED COMPANY NUMBER: 1475237 (England and Wales)

REGISTERED CHARITY NUMBER: 512976

Report of the Trustees and

Financial Statements

for the Year Ended 31 July 2023

for

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Contents of the Financial Statements for the Year Ended 31 July 2023

		Page
Reference and Administrative Details		1
Report of the Trustees	2	to	6
Report of the Independent Auditors	7	to	10
Statement of Financial Activities		11
Balance Sheet		12
Cash Flow Statement		13
Notes to the Cash Flow Statement		14
Notes to the Financial Statements	15	to	25
DetailedStatementofFinancialActivities		26

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Reference and Administrative Details for the Year Ended 31 July 2023

TRUSTEES	D Goldsmith
	Mrs G D Gittoes (resigned 15.2.23)
	S Green
	D J Hunt
	D MWood
	A Hall (appointed 4.8.22)
	A J Cook (resigned	10.3.23)
	Mrs S K Bourn (appointed 29.11.23)
COMPANY SECRETARY	R J 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 7BS
SOLICITORS	Lanyon Bowdler
	12 The Business Quarter
	Eco Park Road
	Ludlow
	Shropshire
	SY8 1FD
BANKERS	Lloyds Bank PLC
	8 High Town
	Hereford
	HR1 2AE
	KeyManagement
	N Morgan	Chief Executive
	J Jones	Head of Organisational Development
	A Jones	Head of Engineering
	V Smith	Head of Commerce
	RJGriffiths	FinanceManager

Page 1

Herefordshire and Worcestershire Group Training Association Limited (byguarantee)

Report of the Trustees for the Year Ended 31 July 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

There have been no changes in the Company's objects during the year. The objects as stated in the Company's Memorandum of Association for which the Company is established are:
a) | To promote and advance the theoretical and practical education and training of persons engaged in, or intending to be engaged in, industry and commerce.
b) Subject to the foregoing object, to extend such provision or assistance to the training or education of members of the public generally.
The Association's prime purpose is to organise and provide training for Members and other customers. This is summarised in the Mission Statement "HWGTA's mission is to deliver outstanding training provision that results in an increasingly skilled, dynamic, resilient and dedicated workforce for the local economy”.

In order to do this effectively the following key objectives are in place:

Maintain high Quality Achievement Rates across all programmes
Ensure high levels of customer, learner and employer satisfaction
Meet the statutory requirements for keeping people safe in education and encouraging equality, diversity and inclusion
Continually improve the quality of our pedagogical and vocational provision to retain our Ofsted grade 1 Outstanding status
Generate a surplus each year to allow reinvestment in training activities

To achieve the objectives the services are extended to:

Provide advice and guidance on training and related matters
Provide careers advice and guidance to schools, colleges and people not in employment, education or training
Provide an apprenticeship promotion and a recruitment service
Maintain our ESFA contract and ROATP status to allow access to apprenticeship funding
Plan, implement, deliver and review high quality apprenticeship training
Review the availability of funded projects to facilitate training for members, customers and local people
Influence external agencies on the training and skills needs of members and customers

Significant activities

The Association delivers the following provision:

Apprenticeships Accountancy and Finance Business Administration Coaching Customer Service Engineering and Manufacturing Leadership & Management

Training Engineering (inc Electrical) Firs Aid (inc Mental Health FA) Health & Safety IT Leadership & Management Teaching & Trainer qualifications Multiply Numeracy Training

Page 2

Herefordshire and Worcestershire Group

Training Association Limited (by guarantee)

Report of the Trustees for the Year Ended 31 July 2023

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The priorities for the year were to:

1, Meet the training needs of the Members and other customers, evidenced by feedback surveys and continual demand for services
1. Deliver apprenticeships for employers to the criteria of the Education & Skills Funding Agency and Institute for Apprenticeships and Technical Education
3: Maintain high levels of achievement and progression 4. Contribute to regional and national skill priorities through memberships of local and national network groups
1. Progress the ‘ideal’ of employer-led training

Our Key performance indicators are:

Numbers of apprentice starts across all programmes 2. Quality Achievement rates 3. Number of withdrawals (non-achievers) 4, Learners that are past planned end date 5. Learners on a break in-learning 6. Number of schools and careers events attended 7s Financial indicators

The Association operated out of two sites located in Hereford and Worcester.

The Association has again continued to work in achieving its priorities as set out above whilst:

Further developing existing Apprenticeship Standards and introducing new Apprenticeship standards as a lead provider to service local needs
Addressing the lack of applicants onto apprenticeship programmes.
Collaborating with local authorities to tender for and deliver funded training programmes.

The autumn 2022 recruitment was strong for engineering and accountancy programmes. Recruitment to commerce programmes was lower than expected during the year, although employer vacancies remained high and increased numbers of applicants resulted in increases in starts towards year-end. The Association has introduced a Learning Support and Welfare Lead and has taken a proactive approach to identifying and supporting learners with additional needs, providing a programme of differing interventions to suit the individual. The objective is to increase learner satisfaction and support retention and achievement.

The Association's achievement rates remained stable in the 2022/23 year. With 227 learners completing, the Association's achievement rate remains robust at 75.3%. National data for the same period is not yet published, however we anticipate remaining significantly higher than the national average. Maintaining high levels of achievement remains a key objective of the Association. The trustees monitor and scrutinise achievement and retention rates to ensure achievement remains consistently high and challenge the management team to continually improve all elements of training delivery.

HWGTAAchievement Rates		Overall Achievement
	2020/21	2021/22	2022/23
Cohort	238	266	298
Achieved	191	201	227
AchievementRate	80.25%	75.56%	76.17%

Fundraising activities

The Association does not carry out any significant fundraising activities.

Page 3

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Report of the Trustees for the Year Ended 31 July 2023

FINANCIAL REVIEW

Financial position

The results for the year are set out in this document. During the year the Trustees agreed significant expenditure to pursue a project for the design and specification for a new Training Centre in Hereford. This combined with lower than budgeted starts on Commerce apprenticeships and higher expenditure on costs resulted in a year end deficit of £142,506.

The principal source of funding is apprenticeship funds via the Education and Skills Funding Agency, used to provide apprentice training and assessment in accordance with the Funding Rules.

The lower engineering intakes in 2020 and 2021, combined with lower than budgeted commerce starts in 2022/23 continue to impact our income. Across the board cost increases, combined with stagnant apprenticeship funding present a considerable challenge to operating profitably. The Association continues to contribute to networks such as GTA England, Trailblazer groups and funding reviews to influence funding policy and ensure a sustainable future.

The 2023-2024 year has started optimistically with another record intake on the engineering programmes and commerce programmes ahead of budget.

Principal funding sources

The principal source of funding is apprenticeship funds via the Education and Skills Funding Agency, used to provide apprentice training and assessment in accordance with the Funding Rules.

Reserves policy

The Association holds reserves to ensure:-

Continuation of activities in periods of less favourable funding and income.
Secure and suitable premises in Herefordshire and Worcestershire.
Provision for major capital items.
The capability to develop new provision.

Level of reserves

To meet fluctuations in funding and routine capital expenditure, we are working towards operating cash reserves being maintained at a minimum of £550,000. Should a building project be anticipated within a three year period, then the level of Reserves may be increased up to a maximum level of 100% of turnover, reflecting the anticipated costs of the land and/or buildings.

Maintenance and monitoring of reserves

In years of favourable funding, resulting surpluses will be held as reserves within the levels and for the purpose set out in this policy.

The Board of Directors will review current levels of reserves along with various operational factors at each Board meeting. Reserves will be externally audited annually and discussion between the Auditor, Chairman, Treasurer and Chief Executive will confirm compliance with the reserves policy.

Monitoring and reviewing the policy

All policies, including the Reserves Policy, will be reviewed by the Board of Directors as required by the Association quality procedure.

Page 4

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Report of the Trustees for the Year Ended 31 July 2023

FUTURE PLANS

The Association plans to continue the work in line with the principal activities of the company. The strategic plan was revised during the year to lay out the objective for the next 3 years under the following headlines:

Quality & Improvement of Provision
People and Facilities - Promotion of the Association - Sustainability - Financial Health - Governance & Membership

During the financial year the Association spent £105,587 to commission the design, specification and tender exercise for the potential construction of a new training centre. This spend is contained in these accounts. The strategic aim of the Association is to relocate the Hereford training centre to a new purpose-built facility, with a location in the counties main employment zone, Skylon Park, being identified as the preferred option. Potential options to secure the co-funding required to realise the project are in progress with a decision on the project expected during the 2023-24 financial year. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Herefordshire and Worcestershire Group Training Association Limited is a company limited by guarantee and a charity. The charitable company's memorandum and articles of association are the primary governing documents.

The trustees are also directors of the charitable company for the purposes of company law. The method and recruitment of trustees is defined in the Articles of Association.

Details of the trustees who served throughout the year are included in the Reference and Administrative details on page 3.

The trustees/ directors have conducted their own review of the major risks to which the Association is exposed and systems have been established to mitigate those risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the Association. These procedures are periodically reviewed to ensure that they still meet the needs of the Association.

If new trustees/directors are required, they will be recruited from apprentice employers and will be provided with an induction to understand the operation and governance of the Association.

The Senior Management Team comprises key management personnel responsible for efficient and effective control of their designated operations on a day-to-day basis. The Chief Executive, as appointed by the Board of Trustees/Directors, has overall strategic and operational control of the Association.

Recruitment and appointment of new trustees

If new trustees/directors are required, they will be recruited from apprentice employers and will be provided with an induction to understand the operation and governance of the Association.

Organisational structure

Page 5

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Report of the Trustees

for the Year Ended 31 July 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

REMUNERATION POLICY - SENIOR STAFF

All Trustees/Directors give of their time voluntarily and freely and have received no remuneration or reimbursement of expenses during the year.

The Board assemble a Remuneration Committee comprising the Chief Executive, the Chairman and the Treasurer who meet annually to conduct a salary review for all staff; market factors, average earnings locally and recruitment needs are considered. Individuals may be reviewed independently wherea significant change in their role has occurred. The Chief Executive exits the meeting so that their remuneration can be reviewed confidentially.

Risk management

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also the directors of Herefordshire Group Training Association 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity Statement of Recommended Practice;
make judgements and estimates that are reasonable and prudent;
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 keeping 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 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 auditors are 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 auditors are aware of that information.

AUDITORS The auditors, Thorne Widgery Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on vee WAN Weber - Trustee

ccccccccccceccsessseeeees and signed on its behalf by:

Page 6

Report of the Independent Auditors to the Members of Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Opinion

We have audited the financial statements of Herefordshire and Worcestershire Group Training Association Limited (by guarantee) (the ‘charitable company’) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 charitable company 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 charitable company'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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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. We have nothing to report in this regard.

Opinions on other matters 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Page 7

Report of the Independent Auditors to the Members of Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Matters on which we are required to report by exception

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

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 take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern 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.

Page 8

Report of the Independent Auditors to the Members of Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Our 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 a Report of the Independent Auditors 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:

Fraud and breaches of laws and regulations - ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: o Enquiring of trustees, the finance committee and inspection of policy documentation as to the Charity's high-level policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud.

o Reading Trustees’ meetings and finance committee minutes.

o Considering performance targets for management.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, and taking into account our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the revenue is non-judgemental and straightforward, with limited opportunity for manipulation.

We did not identify any additional fraud risks. We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted by finance management/ those posted and approved by the same user/ those posted to unusual accounts.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with management (as required by auditing standards) and discussed with management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, taxation legislation and the Charities Act legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Charity is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Charity's license to operate. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery, employment law, data protection, anti-money laundering and specific areas of other legislation recognising the nature of the Charity's activities.

Page 9

Report of the Independent Auditors to the Members of Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management, inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation”

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Lisa Weaver FCCA (Senior Statutory Auditor)

for and on behalf of Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS Date: en ok 2

Page 10

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Statement of Financial Activities

(Incorporating an Income and Expenditure Account) for the Year Ended 31 July 2023 ‘

					315/523	317,22
		Unrestricted	Designated	Restricted	Total	Total
		fund	fund	fund	funds	funds
	Notes	£	£	£	£	£
INCOME AND ENDOWMENTS
FROM
Charitable activities	3
Provision oftraining		3,388,444	-	-	3,388,444	3,182,804
Investment income	2	99,439	-	-	99,439	91,146
Other income		-	-	-	-	4,855
Total		3,487,883	-	-	3,487,883	3,278,805
EXPENDITURE ON
Raisingfunds
Investment management costs	4	8,877	-	-	8,877	3,542
		8,877	-	-	8,877	3,542
Charitable activities	5
Provision of training		3,621,512	-	-	3,621,512	3,292,104
Total		3,630,389	-	-	3,630,389	3,295,646
NETINCOME/(EXPENDITURE)		(142,506)	-	-	(142,506)	(16,841)
RECONCILIATION OF FUNDS
Total funds brought forward		3,862,914	-	-	3,862,914	3,879,755
TOTAL FUNDS CARRIED
FORWARD		3,720,408	-	-	3,720,408	3,862,914

The notes form part of these financial statements

Page 11

Herefordshire and Worcestershire Group Training Association Limited (by guarantee) (Registered number: 1475237)

Balance Sheet 31 July 2023

					31.7.23	31.7.22
		Unrestricted	Designated	Restricted	Total	Total
		fund	fund	fund	funds	funds
	Notes	£	£	£	£	£
FIXED ASSETS
Tangible assets	10	3,973,776	-	-	3,973,776	3,989,452
Investment property	11	845,000	-	-	845,000	845,000
		4,818,776	-	-	4,818,776	4,834,452
CURRENT ASSETS
Debtors	12	509,136	-	-	509,136	577,578
Cash at bank		810,738	-	-	810,738	936,520
		1,319,874	-	-	1,319,874	1,514,098
CREDITORS
Amounts falling due within one
year	13	(376,058)	-	-	(376,058)	(333,190)
NET CURRENT ASSETS		943,816	-	-	943,816	1,180,908
TOTAL ASSETS LESS CURRENT
LIABILITIES		5,762,592	-	-	5,762,592	6,015,360
CREDITORS
Amounts falling due after more
than one year	14	(2,042,184)	-	-	(2,042,184)	(2,152,446)
NETASSETS		3,720,408	-	-	3,720,408	3,862,914
FUNDS	18
Unrestricted funds:
General fund					3,720,408	3,862,914
TOTALFUNDS					3,720,408	3,862,914

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

Thewe financialBMstatementsceewere andapproved were signedby ontheits behalfBoard by:of Trustees and authorised for issue on

S Green - Trustee

The notes form part of these financial statements

Page 12

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Cash Flow Statement
for the Year Ended 31 July 2023
		31.7.23	31.7.22
	Notes	£	£
Cash flows from operating activities
Cash generated from operations	1	127,817	(136,809)
Interest paid		(102,955)	(46,076)
Rental income		(84,883)	(88,292)
Net cash used in operating activities		(60,021)	(271,177)
Cash flows from investing activities
Purchase of tangible fixed assets		(54,415)	(55,188)
Sale of tangible fixed assets		-	11,500
Interest received		14,556	2,854
Rental income		84,883	88,292
Net cash provided by investing activities		45,024	47,458
Cash flows from financing activities
Loan repayments in year		(110,785)	(120,925)
Net cash used in financing activities		(110,785)	(120,925)
Change in cash and cash equivalents in the
reporting period		(125,782)	(344,644)
Cash and cash equivalents at the
beginning ofthe reporting period		936,520	1,281,164
Cash and cash equivalents at the end of
thereportingperiod		810,738	936,520

The notes form part of these financial statements

Page 13

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Cash Flow Statement for the Year Ended 31 July 2023

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

	31.7:23	3167522
	£	£
Net expenditure for the reporting period (as per the Statement of
Financial Activities)	(142,506)	(16,841)
Adjustments for:
Depreciation charges.	70,091	67,568
Profit on disposal of fixed assets	-	(4,855)
Interest received	(14,556)	(2,854)
Interest paid	102,955	46,076
Decrease/(increase) in debtors	68,442	(145,302)
Increase/(decrease) in creditors	43,391	(80,601)
Netcashprovidedby/(usedin)operations	127,817	(136,809)

ANALYSIS OF CHANGES IN NET DEBT

	At 1.8.22	Cash flow	At 31.7.23
	£	£	£
Net cash
Cash at bank	936,520	(125,782)	810,738
	936,520	(125,782)	810,738
Debt
Debts falling due within 1 year	(135,483)	523	(134,960)
Debts falling due after 1 year	(2,152,446)	110,262	(2,042,184)
	(2,287,929)	110,785	(2,177,144)
Total	(1,351,409)	(14,997)	(1,366,406)

The notes form part of these financial statements

Page 14

Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements for the Year Ended 31 July 2023

ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘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)’, Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Going Concern

The Board have seriously considered the basis on which the financial statements have been prepared and feel the going concern basis is appropriate due to the following factors:

The Association has strong demand for apprenticeships, with vacancies remaining high and record numbers of apprentices on programme, including 100% occupancy in the Worcester engineering centre for a second successive year. Although the ongoing loss of income due to a shortage of engineering starts in 2020 will impact results until FY 2024/25, the long-term forecast reinforces the Association is a viable going concern. Start numbers in the second half of 2023 were ahead of budget, while starts for 2024 and beyond are expected to remain strong.

Apprenticeship funding bands are not increased unless the specific standard is revised, squeezing margins due to significant cost inflation since funding bands were set in 2017. A key initiative to overcome this is ensuring HWGTA participates in trailblazer groups and standards revisions. This ensures the standards and assessment methods remain fit for purpose (to meet our employers needs), including providing evidence of delivery costs to influence funding changes. To date this has contributed to funding increases on two standards the ‘Association delivers ensuring the programmes remain viable.

The Board and leadership team continue with a strategic approach to planning and are providing effective leadership to ensure the long-term security of the Association to ensure the Association remains a going concern in the coming years.

At the year end the organisation has Free Reserves of £825,066, the majority of which is held in the form of cash at bank. This is still the case as of date of signing these financial statements.

The board will continue to monitor and review the activities and provide strong and clear governance.

Income

All income is recognised in the Statement of Financial Activities once the charitable company has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the Bank.

Rental income is recognised on a straight line basis over the term of the lease.

Debtors

Trade and other debtors are recognised at the settlement amount due after any discounts offered. Prepayments are valued at the amounts prepaid net of any discounts due.

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

1. ACCOUNTING POLICIES - continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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.

Tangible fixed assets

The Association states property interests at fair value. The Association engaged independent valuation specialists to determine fair value at 31 August 2016, the valuation technique used was market value based on local market data.

Crossway House £940,000

The directors are of the opinion that this is still a true market value.

Individual fixed assets costing £5,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives as follows:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Property|Improvements|Straight|Line|over|10|years| |Fixtures|&|Fittings|Straight|Line|over|4 years| |Plant|&|Machinery|Straight|Line|over|10|years| |Hardware|&|Software|Straight|Line|over|3|years| |IT &|Infrastructure|100%|Straight|line|in|year|1|

----- End of picture text -----

Assets under construction are not depreciated until brought into use.

Investment property

Investment property is initially measured at cost and subsequently at fair value at the reporting date.

Elgar House £845,000

The directors are of the opinion that this is still a true market value.

Taxation

The charitable company is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds 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 restricted purposes.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

1. ACCOUNTING POLICIES - continued

Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Cash and bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2. INVESTMENT INCOME

INVESTMENT INCOME
				31.7.23	31.7.22
		Unrestricted	Restricted	Total	Total
		funds	funds	funds	funds
		£	£	£	£
Rents received		84,883	-	84,883	88,292
Investment income		14,556	-	14,556	2,854
		99,439	-	99,439	91,146
INCOME FROM CHARITABLE	ACTIVITIES
				31.7.23	31.7.22
	Activity			£	£
Government funds	Provision of training			2,759,945	2,666,658
Employers contributions and
other course income	Provision of training			625,951	513,921
Room hire	Provision of training			2,548	2,225
				3,388,444	3,182,804
INVESTMENTMANAGEMENT	COSTS
				31.7.23	31.7.22
		Unrestricted	Restricted	Total	Total
		funds	funds	funds	funds
		£	£	£	£
Interestpayableandsimilar	charges	8,877	-	8,877	3,542

35 INCOME FROM CHARITABLE ACTIVITIES

4. INVESTMENT MANAGEMENT COSTS

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

5. CHARITABLE ACTIVITIES COSTS

Charitable activities costs relate to the provision of training and are all direct costs.

NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/ (crediting):

	31.7.23	31.7.22
	£	£
Depreciation - owned assets	70,091	67,568
Surplus on disposal of fixed assets	.	(4,855)
Auditors’ fees - statutory audit	6,924	7,134
Operatingleasepayments	25,731	30,091

7. TRUSTEES’ REMUNERATION AND BENEFITS

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

STAFF COSTS

STAFF	COSTS
		31.7.23	31.7.22
		E	£
Wages	and salaries	1,904,934	1,487,804
Social	security costs	194,035	156,438
Other	pension costs	80,558	74,470
		2,179,527	1,718,712

Due to the government change in legislation for contractors and following IR35 rules, staff salaries this year include associate costs which would previously been included in training and course expenditure.

Included within staff salaries for 2022/23 is £11,747 relating to a termination payment paid as compensation for termination of employment, this has been fully paid in the year.

The average monthly number of employees during the year was as follows:

	31.7.23	31,7,22
Key management	5	5
Training	37	34
Administration	11	10
Associates	5	z
	58	49

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

			31.7.23	31.7.22
£70,001	-	£80,000	1	fl

The key management personnel of the charitable company comprise the Chief Executive and the management team as listed on page 1. The total employee benefits of the key management personnel were £295,884 (2022: £279,396)

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

COMPARATIVES FORTHE STATEMENT OF FINANCIAL ACTIVITIES	COMPARATIVES FORTHE STATEMENT OF FINANCIAL ACTIVITIES
	Unrestricted	Designated	Restricted	Total
	fund	fund	fund	funds
	£	£	£	£
INCOME AND ENDOWMENTS FROM
Charitable activities
Provision of training	3,182,804	-	-	3,182,804
Investment income	91,146	-	-	91,146
Other income	4,855	-	-	4,855
Total	3,278,805	-	-	3,278,805
EXPENDITURE ON
Raising funds
Investment management costs	3,542	-	-	3,542
	3,542	-	-	3,542
Charitable activities
Provision of training	3,292,104	-	-	3,292,104
Total	3,295,646	=	-	3,295,646
NET INCOME/(EXPENDITURE)	(16,841)	-	-	(16,841)
RECONCILIATION OF FUNDS
Total funds brought forward	3,879,755	-	-	3,879,755
TOTALFUNDSCARRIEDFORWARD	3,862,914	-	-	3,862,914

The designated fund is held for future dilapidation costs.

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

10. | TANGIBLE FIXED ASSETS

|| TANGIBLETANGIBLE FIXED ASSETSASSETS||||| |---|---|---|---|---| ||||Improvements|| |||Freehold|to|Plant and| |||property|property|machinery| |||£|£|£| |COST||||| |At 1 August 2022||3,740,656|326,821|399,800| |Additions||-|-|47,244| |At 31 July 2023||3,740,656|326,821|447,044| |DEPRECIATION||||| |At 1 August 2022||-|193,476|293,949| |Charge foryear||-|32,688|30,213| |At 31 July2023||-|226,164|324,162| |NET BOOKVALUE||||| |At 31 July2023||3,740,656|100,657|122,882| |At 31 July 2022||3,740,656|133,345|105,851| ||Fixtures|||| ||and|Hardware|IT &|| ||fittings|& Software|— Infrastructure|Totals| ||£|£|£|£| |COST||||| |At 1 August 2022|34,001|78,445|33,766|4,613,489| |Additions|-|7,171|-|54,415| |At 31 July2023|34,001|85,616|33,766|4,667,904| |DEPRECIATION||||| |At 1 August 2022|34,001|68,845|33,766|624,037| |Charge for year|-|7,190|-|70,091| |At 31 July 2023|34,001|76,035|33,766|694,128| |NET BOOKVALUE||||| |At 31 July 2023|-|9,581|-|3,973,776| |At31July2022|-|9,600|-|3,989,452|

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

INVESTMENT PROPERTY

----- Start of picture text -----
|||||| |---|---|---|---|---| |£| |FAIR VALUE| |At|1|August|2022| |and|31|July|2023|845,000| |NET|BOOK VALUE| |At|31|July|2023|845,000| |At|31|July|2022|845,000|

----- End of picture text -----

During the year ended 31 August 2016 the investment and freehold properties were revalued by an independent valuer. The fair value was determined by using market value as defined in the RICS Appraisal and Valuation Standards. The combined cost brought forward was £1,700,000. The fair value was calculated to be £845,000 for the investment property and £940,000 for the freehold property, a combined value of £1,785,000 and an increase of £85,000. The charitable company has taken advantage of the transitional relief to measure the items at fair value at date of transition to FRS 102. The investment property will be measured at fair value at the reporting date. The directors are of the opinion that this is still a true market value.

12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |31.7.23|31.7.22| |£|£| |Trade|and|other|debtors|455,591|532,479| |Prepayments|and|accrued|income|53,545|45,099| |509,136|577,578| |CREDITORS:|AMOUNTS FALLING FALLING|DUE WITHIN ONE YEAR WITHIN ONE YEAR ONE YEAR YEAR| |31.7.23|31.7.22| |£|£| |Bank|loans|and|overdrafts|(see|note|15)|134,960|135,483| |Trade|and|other|creditors|153,474|105,219| |Social|security|and|other|taxes|61,322|61,105| |Accruals|and|deferred|income|26,302|31,383| |376,058|333,190|

----- End of picture text -----

| CREDITORS: AMOUNTS FALLING FALLING DUE WITHIN ONE YEAR WITHIN ONE YEAR ONE YEAR YEAR

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2023|2022| |£|£| |Deferred|Income|at|1|August|2022|3,763|3,763| |Released|from|previous|years|(3,763)|(3,763)| |Resources|deferred|in|the|year|16,235|3,763| |Deferred|Income|at|31|July|2023|16,235|3,763|

----- End of picture text -----

At the balance sheet date the Association was holding funds received in advance in relation to rental income.

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

		31.7.23	31.7.22
		£	£
	Bank loans (see note 15)	2,042,184	2,152,446
15.	LOANS
	An analysis of the maturity of loans is given below:
		31.7.23	31.7.22
		£	E
	Amounts falling due within one year on demand:
	Bank loans	95,377	93,816
	Coronavirus Business Interruption Loan	39,583	41,667
		134,960	135,483
	Amounts falling between one and two years:
	Bank loans - 1-2 years	95,377	93,816
	Coronavirus Business Interruption Loan	39,583	41,667
		134,960	135,483
	Amounts falling due between two and five years:
	Bank loans - 2-5 years	286,131	281,449
	Coronavirus Business Interruption Loan	79,167	125,000
		365,298	406,449
	Amounts falling due in more than five years:
	Repayable by instalments:
	Bankloansmore5yrbyinstal	1,541,926	1,610,514

16. | LEASING AGREEMENTS

At 31 July 2023 the total future minimum lease payments under non-cancellable operating leases were:

Other operating leases

Other operating leases
	31.7.23	31.7.22
Expiring:	£	£
Within one year	24,159	14,470
Between one and five years	41,480	30,861
	65,640	48,331

At 31 July 2023 the total future minimum lease receipts under non-cancellable operating leases were:

Land and Buildings

Land and Buildings
	31.7.23	31.7.22
Expiring:	£	£
Within one year	51,727	58,328
Between one and five years	:	5
	51,727	58,328

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

17. | SECURED DEBTS

The following secured debts are included within creditors:

Bank loans

31.7.23	31.7.22
£	£
2,177,144	2,287,929

The secured bank loans are secured at 31 July 2023 on freehold and investment property. The terms of the security provide for the lender to claim immediate repayment of the loan in the event of a default.

18. |MOVEMENT IN FUNDS

||MOVEMENTMOVEMENT IN FUNDS|||| |---|---|---|---| |||Net|| |||movement|At| ||At 1.8.22|in funds|31.7.23| ||£|£|£| |Unrestricted funds|||| |General fund|3,862,914|(142,506)|3,720,408| |TOTAL FUNDS|3,862,914|(142,506)|3,720,408| |Net movement in funds, included in the above are as follows:|||| ||Incoming|Resources|Movement| ||resources|expended|in funds| ||£|£|£| |Unrestricted funds|||| |General fund|3,487,883|(3,630,389)|(142,506)| |TOTAL FUNDS|3,487,883|(3,630,389)|(142,506)| |Comparatives for movement in funds|||| |||Net|| |||movement|At| ||At 1.8.21|in funds|31.7.22| ||£|£|£| |Unrestricted funds|||| |General fund|3,879,755|(16,841)|3,862,914| |TOTALFUNDS|3,879,755|(16,841)|3,862,914|

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

18. |MOVEMENT IN FUNDS- continued

Comparative net movement in funds, included in the above are as follows:

	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	3,278,805	(3,295,646)	(16,841)
TOTALFUNDS	3,278,805	(3,295,646)	(16,841)

A current year 12 months and prior year 12 months combined position is as follows:

		Net
		movement	At
	At 1.8.21	in funds	31.7.23
	£	£	£
Unrestricted funds
General fund	3,879,755	(159,347)	3,720,408
TOTALFUNDS	3,879,755	(159,347)	3,720,408

A current year 12 months and prior year 12	months combined net movement in funds, included	months combined net movement in funds, included	in the above
are as follows:
	Incoming	Resources	Movement
	resources	expended	in funds
	£	£	£
Unrestricted funds
General fund	6,766,688	(6,926,035)	(159,347)
TOTALFUNDS	6,766,688	(6,926,035)	(159,347)

19, EMPLOYEE BENEFIT OBLIGATIONS

During the period the charitable company incurred pension costs of £80,558 (2022: £74,470). There was an amount of £12,232 outstanding at the year end (2022: £19,792).

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Notes to the Financial Statements - continued for the Year Ended 31 July 2023

20. RELATED PARTY DISCLOSURES

The trustees are all associated with companies that are customers of the Association. All transactions with these companies are carried out at normal commercial rates.

21. POST BALANCE SHEET EVENTS

22. | ULTIMATE CONTROLLING PARTY

The trustees are deemed to be the ultimate controlling party of the charitable company.

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Herefordshire and Worcestershire Group Training Association Limited (by guarantee)

Detailed Statement of Financial Activities for the Year Ended 31 July 2023

Detailed Statement of Financial Activities for the Year Ended 31 July 2023
	31.7.23	31.7.22
	£	£
INCOMEAND ENDOWMENTS
Investment income
Rents received	84,883	88,292
Investment income	14,556	2,854
	99,439	91,146
Charitable activities
Government funds	2,759,945	2,666,658
Employers contributions and other course
income	625,951	513,921
Room hire	2,548	2,225
	3,388,444	3,182,804
Other income
Gain on sale of tangible fixed assets	-	4,855
Total incoming resources	3,487,883	3,278,805
EXPENDITURE
Investment management costs
Bank loan interest	8,877	3,542
Charitable activities
Staff salaries	1,904,934	1,487,804
Social security	194,035	156,438
Pensions	80,558	74,470
Training and courses	642,851	701,186
Development and acquisition expenditure	16,692	16,320
Premises costs	321,772	417,409
Office Costs	296,501	328,375
Improvements to property	32,688	32,682
Depreciation plant & machinery	30,213	24,086
Depn of hardware & software	7,190	10,800
Bank loan interest	94,078	42,534
	3,621,512	3,292,104
Total resources expended	3,630,389	3,295,646
Netexpenditure	(142,506)	(16,841)

This page does not form part of the statutory financial statements

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