REGISTERED COMPANY NUI.IBER: 1475237 (England and Wales) REGISTERED CHARITY NUMBER: 512976 Re rt of the Trustees and Financial Ststements for the Year Ended 31 Jul , 2024 for Hereford5hire and Worcestershire Grou Trainin Association Limited uarantee Thorne Widlery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Part< Kin£s Acre Hereford Herefordshire HR4 7BS
Herefordshire and Worcestershire Grou Trainin -AS50clatIOn Limited uarantee Contents of the Financial Statements for the Year Ended 31 Jul 2024 Page Reference and Administrative Details Report of the Trustees Report of the Independent Auditor5 7 to 10 ststernent 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 Detailed Statement of Financial Activities 26
Herefordshire and Worcestershire Gr(MJ Trainin Ass¢xiation Limited uarantee Reference and Administrative Detai15 for the Year Ended 31 Jul 2024 TRusfEES D Goldsmith S Green DJHunt D M W(x)d A Hall Mrs S K BO (app)inted 29.11.231 A E Pitt (appointed 25.9.Z4) S Smith lappointed 25.9.241 COMPANY SECREfARY R J Griffith5 REGISTERED FICE Hoimer Road Hereford HR4 9SX REGisfERED COMPANY NUMBER 1475237 (England and Wales) REc4¥fERED CHARtrY NUMBER 512976 AUDrroRS Thorne Widgery kcountarq Ltd Chartered Accountants 51atulOry Authtors 2 Wyevale Business Park Kings kre Hereford Herefordshire HR4 7BS sOUcoRs Lanyon &)wdler 12 The Business Quarter Eco Park Road Ludlow Shropshire SY8 1FD BANKERS Uoyds Bank PLC 8 High Town Herefd HRI 2AE N Ak>rgan J Jones A Jones V SmTth R J Griffiths Chief Execut7ve Head of Organisational Devdopment Head of Engineering Head of Commerce Finance Alanager Page 1
Herefordshire and Worcestershire Grou Trainin Association Limited uarantee Re rt of the Tntstees for the Year Ended 31 Jul 2024 The trustees VAK) are also directors of the charity for the purwses of the Conpanie5 Act 2CK)6, present their report with the financial statements of the charity for the F)eriod 1 August 2023 to 31 July 2024. The trustees have adopted the provisions of Accounting and Rewrting by Charities: Statement of RecomnEnded Practice applicable to charitie5 preparing their accounts in accordarKe with the Financlal Rep)rting Standard applTcabie in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019). OBJEcnvE5 AND AcnvtnES PRINCIPAL ACTIVITIES AND BUSINE55 REVIEW There have been chanqes in the Company's objects during the year. The objects as stated In the Companls Memorandum of AssocTation for which the Company is established are: a) To promote and advance the theoretical and practical e(hKati( and training of persons engaged in, or intending to be enga9ed in, industry and commerce. Subject to the foregoing object. to extend sh provision or assistance to the tralning or education of rnembers of the public generally. bl The Associatlon'5 prime purpose Is to organise and provide training arKI other customers. This is summarised in the Mission Statement -HWGTA's mission is to deliver outstanth'nq training provision that results 7n an increasingly skilled, dynamic, resilient and dedicated workforce for the Icral ec. In order to do this effectively the following key objectives are In place: hlaintain high Quality Achievement Rates across all programmes Ensure high levels of customer, leamer and employer satisfaction het the statutory requirements for keeping people safe in education and encouraging equality, diversity and irKIu5i Continually improve the quallty of our pedagogical and vocational provision to retain our Ofsted grade 1 Outstanding status Generate a surplus each year to allow refnvestment in training artivities To achieve the objectives the seryices are extended to: Provide advTce and guidance on trainTng and related matter5 Provide careers advice and guldance to scIMJ)is. colleges and people Th)t in employment, education or traTning Provide an apprenticeship promotion and a recruitrnent seiCe lkiintaln our ESFA contract and ROATP status to allow access to apprenticethip fundlng Plan, implement, deliver and review high quality apprenticeship training Review the availabilily of funded projects to facilitate training for meML5, Customers and local people Influence extemal agencie5 on the training and skills needs of members and custor5 Significant activitie5 The Association deliver5 the following provision: renticeshl Accountancy and Finance Bu5ine5s Adminlstratlon Coaching Customer 5ervlce Engineering and Marnjfacturing Leadership & hlanagement Tralnf Engineering linc Electrical) Fir5 Aid (inc hkntal Health FA) Health & Safety Leadershlp & Management Skills Bt£aMpS Teaching & Tralner qualifications Page Z
Herefordshire and Worcestershire Grou Trainin Association Limited uarantee Re rt of the Trustees for the Year Ended 31 Jul 2024 ACHIEVEMENT AND PERFORIWKE Charitable activities The priorities for the year Vre to: Meet the tralning needs of the h*mbers and other custonErs, eviden by feedback suryeys and continual demand for services Deliver apprenticeship5 for employers to the criteria of the Ethjcatiorb & Ski115 Funding AgerKy and Institute for Apprenticeships and Technical Education Maintain high levels of achievement and progressvjn ContrIte to regional and national skill wi)rities through memberships of local and national network group5 Progre55 the lideal. of employer-led training Our Key perfonnarKe indicators are: Numbers of apprentice starts acros5 ail wogrammes Quality Achievement rates Number of withdrawals I)n-achIeVerS} Leamers that are past planned end date Learners on a break in-learning Number of schools and careers events attended Financlal indlcator5 The As%)ciation operated out of two sites IcKated in Hereford arKI Worcester. The Association has again contin to work in achieving its priorities as set (Art above whilst: Fwther developing existing Apprenticeship Standards and introthcirvl new Apprenticeship standards as a lead provider to sernce local needs Addresslng the lack of applicants onto apprentKe5hlp programmes. Collaborating with local authorities to tender for and delTver funded training programmes. Autumn 2023 recruitment VRS ahead of budgets, with the cohort peaking at 686 learners in September. Ongo7ng recwitment to commerce and manageEnt prograrrwnes being consistent thrgt the year. A priorlty for the A550dation is to irKrease participation of under represented grow, sh as females into engineering, in future cohort5 to meet and exceed rotional averages. Demand for comwcial training was mixed, with tsrgets met primarily due to two key projects delivering ILM leadership training and engineering NVQS. The Association's achievement rates iKreased in the 2023124 year. With 218 learners comrleting, the As50ciation'5 achievement rate 15 78.7%. National data for the sarne period is not yet published. however we anticipate remaining slgnificantly higher than tke national average and among the best of equivalent provider5. hlaintaining high levels of achievement remains a key objective of the Association. The trustee5 rnonitor and scrutinise achievement and retention rates to ensure achievement remains consistently high and challenge the management team to continually im[ve all elements of training delivery. HWA Achlevement Rates (herall Achlevement 2022123 2021122 2023124 Leavers Achieved Achievement Rate 269 201 74.7% 296 226 76.4% 277 218 78.7% Fundralslng actlvltles The Association thes not carry out any slgnificant fiindraising actlvlties. Page 3
Herefordshire and Worcestershire Grou Tralnln AsscKiation Limited uarantee Re rt of the Trustees for the Year Ended 31 Jul 2024 FINANCIAL REVIEW Flnanclal p051tlon The results for the year are set out in this document. The principal source of fundlng is apprenticeship funds vla the £datiOn and Skills Funding Age, used to provlde apprenti training and assesswent in accordance with the FdIng Rules. Increased englneerin8 corts as the lower engineering intakes in 2020 and 2021 complete, comblned with con515tent omrrerce and management starts have supported growth. Ongolng cost increases, comblned wlth stagnant apprenticeship fundln8 contTnve to present a considerable challenge to generating a surplus. The Association continues to contribute to networks such as GTA England, Traiibiazer groups and funding reviews to 7nfluence funding pollcy and ensure a sustainable future. Year-on-year revenue Increased by 15.7%, supported by growth in apprentice number5, uplifts to some apprentice funding and an increase in commercial activity. The ASlatIOn benefited from Local Skills Improvement Fund (LSIF) project, receiving grant arKI revenue funding to enhance engineering provisN)n. This resulted in a year end surplus of £145,849, significantly ahead of ldget. The 2024-2025 year has started with a yxcessiye record intake on the engineering programmes, 5UPPOrted by commerce and management programme5 ahead of Ixt. Princvpal funding sources The principal source of funding Is apprenticeship funds via the Education and Skills Funding AgeKy, used to provide apprentice training and assessment in accordance with the FwKling Rules. Re5erve5 poIIcy The AssociaOn hold5 reserves to ensure:. - ContiNation of activities in periods of less favourable fund? aTrJ irKome. - Secure sultable premlses in Herefordshlre and Worcestershire. Provf51on for major capTtal items. - The capability to develop new provision. Level of reserves To meet fluctuations in funding and routlne capital eXplture, we are workfng towards operating cash reserves being maintalned at a minimum of £550k. TrÈ level of Reserve5 rnay ireased up to a max1wrn level of 11))% of turnover. reflecting the anticipated costs of future wojects as the purcha of land andlor buildings. Maintenance and monItorf of re5erve5 In year5 of favourable funding, resulting surpiu5e5 wlll be heid as reserv within the levels and for the purpose set out in this policy. The Board of Directors will review current levels of reserves along with varirnts Operatal factors at each Board meeting. Reserves V11 be externally audited annually and discussion between the Auditor, Chalrman, Treawrer and Chief Executive will confirm Complian with the reser w)licy. Monltorlng and reirfewlng the policy All policies. including the Reserves Policy, will be reviewed by the Board of Directors as requlred by the Association quality prccethre. Page 4
Trainin A551atjrt Llmited of the TnLSt&s for the Year Ended 31 2(r24 ASslatiOn piarts to tontlwe the work kn lkne with the wncyai artivitse5 of the c0ryX. The 2023.26 strate8lc ' Sustalnablllty . & EngageThnt - l)Jality & Improvement . Provlsion . Petse & FlitIeS Govffnlng document The charity is controlled by Its goYernk4 <kn0Jn a deed of trusL aNI cor&tituits a limited compary. Umfted ty 8uardntee, as defi by Companie5 Act 2(Th. Herefordshlre and W(Kcesiethe Group Tralnlng Assc£latkn Llm1ted ts a conpkny lkntted Iw gu¥aTrtee WKI a chty. The charltable cm1pan$ Mem and artides of aSthtkth ¥e the wlmary governin8 (hXUnnts. recruitment of tnstees is defird in the Articles of Aslat¥. pa8e 1. The tntee$l dlrector5 have CIN¢[ed thelr ¢ywn revlew ol the major rlsks to vthKh the AswciatM is exposed and 5fftms have been ertabilshed to mitigate tlbxe rlsks. Intemal risks are rninimlsed ty the ImpieffEntation of ocedures for aut}risation of all trans arKI projects and to ensure consistent waiity of deltwy for au nee%ls of the A550clatlon. The Senior managet Team comwtses key persrmd reSIble efficlent and effectlve control of their designated cyrntlons OTr a day.tOwday The Chief Executl¥e, as appolnted by the Board of TnsteeslDirector4 has overall strateik I1 operdtionai control of the Awiation. The Sen1 managet Team COryFses key managenmt peryne1 $[)nsIble for efflcnt and effective control of their deslgnated operations on a day-ttrday basls. Chfef Executlve, as ew)inted ty the Board of TrusteeslDirectors, has overall srrntrfk aJKI yTaiional control of the Associati(m. REIAUNEIIAIKIN POUCY. SEMI(Mi AFF l Tntstees/Dlrect(Ws give of their tln LlY and freely aThl have received no renxmratKth or relmtAWTht meet annualty to ClKKkn a salary revtew for all staff; market fKtors. average eamlrys locally and recruitment needs are considered. Indlvl(hwis may be revItr1 Independently wtrre a srynfficant change In thetr roie ha5 occurred. The Chlef Executive exits the ntIl4 $0 that their remwffttion can be revie¥ confidentiauy. ssth))5 have been estabiisljed to mltlgate tl*)se rlsks. Internal risks are m?nfmtsed by the Inwlementatlon of edures for autlbxisation of all transths and pmjects and to ensure ConStent (wllty of delivery for all operattrjnai aspects of Ass(Klati(m. These pr¢teduS are pwknthcally re¥ye0 to ensure that they still rneet the needs of the Ass(Kiatn.
Herefordshire and WorTrster5hire Gro Training Assoaation Limited Iby uuaranteei Re ort of the Trustees for the Year Ended 31 Jul . 2024 STRUCTURE, GOVERNANCE AND h14NAGEMENr Rlsk management The trusteesl directors have conducted th•ir ¢)wn review of the major ri5k5 to ]ch the Association is exposed and systerns have been established to mitiiate those risks. Internal risks are minimi5ed by the implementation of procedures for authorisation of all transactions and projepts and to ensure consistent quality of delivery for all operational aspects of the AsxKiation. These procedures are periodically reviewed to ensure that they still meet the needs of the Association. EVE15 SINCE THE END OF THE YEAR InfomHtion relating to events Since tho end of the year is iiyen in the notes to the financial statements. STATEME OF TRUSTEES. RESPONSIBILITIES The trustees (who are a150 the dirKtors of Herefordshire Group Training Association for the purFvses of company law) are responsible for preparing the Report of the Ttee5 and the fitwtcial statements in accordance with applicable law and United Kingdorn Accguntinz Standards Iunited Kinidom Generally Accepted Accountino Pradicel. Cr%npany law requires the trustees to prepare financial statements for each financial year which give a tnje and fair view of the state of affairs of the charitable company and of the Tncoming resource5 and application of resource5, including the incthne and expenditure, of the charitable company for that period. In preparini those financial staternents, the trustees are required to select suitable accountin% policies and then apply them consistentlyi observe the m9thod5 and principles in the Charity StateTnent of Recommended PTactic•' make judgements and estimates that arè reasonabl8 Pent. - prepare the financial statements on the ff01 concern basis )lesS it ls inappropriate to presume that the charitable company will continue in bu5ir5S. The trustees are responsible for keepine proper accountinll records which disclose with reasonable accuracy at any time the financ7al position of the charTtable company and to enable them to ensvTe that the financiat statements comply with the Companies Act 2006. They are atso responsible for safeguarding the assets of the charitable company and hence for takin8 reasonable steps for the prevention and detection of fraud and other irfeeulartties. In so far as the trustees are aware: there 15 no relevant auth't infomation of which charitable companys auditors are unaware. and the trustees have taken all steps that they ought to haye taken to rnake themselves aware of any relevant audit inforniation and to establish that the auditors are awaro of that inforniation. AUDoRs The auditors, Thome Widgery Accountancy Ltd, will lje proposed for rtrappointment at tl ftythcorn1 knual Generèl Voeting. Approved by ¢)rder of the board of trustees on....2S.Izi2&............. ............. and signed on its behalf by. Id5mith - Trust99 Poge 6
rt of the Inde ndent Auditors to the Member5 of lierefordshire and Worcestershire Group Traininu Association Limited Ib, ouarantee I Opinlon We have audited the financial statements of Herefordshire and Worcestershire Group Tra7ning Association Limited Iby guaranteel Ithe 'charitable company'l for the year ended 31 July 2024 whTch comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, includin£ a summary of 57£nificant accountin2 policies. The financial reporting framework that has been appl?ed in their preparation is pplicable law and United KinRdom Accounting standards (United Kingdom Generally Accepted Accountin£ Practice), includinl Financial Reportin£ Standard 102 The Financial ReportinR Standard applicable in the UK and Republic of Ireland.. In our opinion the financial stètements: g?ve a true and fair view of the state of the charitable company's affairs as at 31 July 2024 and of its incoming resources and application of resources, includinE Its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial ReportinR Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.: and have been prepared 7n accordance with the requirement5 of the Companie5 Act 2006. Basls for opinlon We conducted our audit in 3ccord3nce w3th International Standards on Auditin2 (UK) (ISAS IUKII and applicable law. Our responsibilitie5 under those standards are further described in the Auditors. responsibilities for the aud?t of the financial statements section of our report. We are independent of the charitable company in accordance with the eth7cal 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 SLrfficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial stètements, we have concluded that the trustees. use of the £oin£ 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 silnificant doubt on the charitable company's ability to continue as a £oinz 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 Wth respect to 8oin8 concern are described in the relevant 5ection5 of thi5 report. Other Information The trustees are responsible for the other Tnformation. The other information cornpri5es the information included in the Annual Report. other than the financial statements and wr Report of the Independent Auditors thereon. Our opinion on the financial statements does not corfer the other infomation and, except to the extent otherwise explicitly stated in our report, we do not expre55 any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibilTty 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 appear5 to be materially misstated. If we identify such Material inconsistenciès or apparent material misstatements, we are required to determine whether this 8ives rise to a material misstatement in the financial statements themselves. If, based on the worf( we have performed, we conclude that there is a material ffli5Statement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infoation 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 lÈgal requirements. Page 7
Re ort of the Inde endent Auditors to the Members of ,ereford5hire and Worcestershire Gro Trainin+J Associat'.on Lirnited I bij eLfarantee Matters on whlch 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 mi5Statements in the Rewrt 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 accoJnting records and returns. or certain di5c105ure5 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 %Yere not entitled to take 3dvanta%e of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responslbilities of trustee5 As explained more fully in the Staternent of Trustees. Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of compani law) are responsible for the preparation of the finanaal statements and for bein2 satisfied that they oive a true and fair vieiv, and for such internal control as the trustees detennine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparinq the financial statements, the trustees are responsiblè for assessin£ the charitable companls ability to cont?nue as 3 goincs concern. disclosinu, as applicable, rnatters related to uoin£ concern and usino the going CDncem basis of accounting unless the trustees either intend to liquidate the charitable conpany or to coase operations, or have no realistic alternative but to do so. Page 8
rt of the Inde endent Auditors to the Members of Herefordshire and Wtsrcestershire Gro&1 Trainino Association Limited uarantee Our responsibilities for the audit of the flnanclal 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 ineludés our opinion. Reasonable assurance is a hi2h level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Mi5Statements can arise from fraud or error and are considered material if, individually or in the a2Ere8ate, thei 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: includinE fraud is detailed below: Fraud and breaches of laws and regulations - ability to detect Identifyino and responding to risk5 of material misstatement due to fraud To identify ri5k5 of material misstatement due to fraud I'fraud risks°I we assessed events or conditions that could indicate an incentive or pressure to commit fraud or prcvide an opportunity to commit fraud. Our risk assessment procedures Included: o Enquirin% of trustees. the finance committee and inspèrtion of policy documentation a5 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 minute5. o Considerini perfomiance targets for management. Ve communicated identified fraud risks throughout the audit team and remained alert to any indication5 of fraud throughout the audit. A5 required by auditing standards, and taking Tnto account our overall knowledge of the control environment, we perform procedure5 to address the nsk of management override of contro15, 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-jud£emental and straightfornard, with limited opportunity for manipulation. We did not identify any additional fraud risks. We perfonned procedures including identifyino journal entries to test based on risk criteria and comparin8 the identified entries to supporting documentation. These included those posted by finance manalementl those posted and approved by the same userl those posted to unusual account5, Identifying and respondlng to rlsks of materlal misstatement due to non-compliance with laws and regulations We identified areas of laws and revulations that could reasonably be expected to have a material effect on the financial statement5 from our Renerai commercial and sKtor experience, and through discussion with management las required by auditin8 standards) and discussed with manafement the policies and procedures regarding compliance with laws and rezulations. We communicated ?dentified laws and re£ulations throughout our team arKI remained alert to any indications of non-compliance throughout the audit. The potential effect of these law5 and regulation5 on the financial statements varies considerably. Firstly, the Charity 15 Subject to laws and regulations that directly affect the financial statements including financial reporting leii51ation: taxatTon legislation and the Charities Act legislation and we assessed the extent of c¢)mpliance with these law5 and re2vlations as part of our procedures on the related financial statement items. Secondly, the. Charity is subject to many other lavls 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 litlEation or the loss of the Charity's license to operate. We identified the followin£ areas as those most likely to have such an effect." health and safety, anti-bribery, employment law, data protection, anti-money launderine and specific areas of other Legislation recognising the nature of the Charity's activities. Pale 9
Re ort of the Inde ndent Auditors to the Members of Herefordshire and Worcestershire Grou Trainin Association Limited Ib. guarantee Additing standards limit thè required audit procedures to identify non.compliance with these laws and regulations to enquiry of manaiemeit, inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational reeulations is not disclosed to us or evident from relevant correspondence, an addit will not detect that breach. Context of the ablllty of the audit to detect fraud or breache5 of law or regulation Owing to the inherent lim tations of ap, audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements: even thouEh we have properly planned and performed our audit in accordance Mth auditing standards, For example. the further reffloved 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 auditinLT Standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, a5 these may involve collusion, forgery, intentional omissions, misrepresentations: or the override of internal controls. Our aJdit procedures are designed to detect material ffli55tatem?nt. 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 dèscription of our respons7bilities for the audit of the financial statements is located on the Financial Reportin£ Council's website at WW¢4.frc.or2.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charitable company'5 members, a5 a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we m4ght state to the chaThtable companls members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent perm7tted by Law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable companls 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 Widiery Accountancy Ltd Chartered Accountants Statutory Aud7tors 2 Wyevale Business Park Kings Acre Hereford Hereford5hire HR4 7BS Date: Page 10
Hereford5hire and Worcestershire Grou Traininc Association Limited uarantee Statement of Financial Activities Incor ratino an Income and Ex enditure Account for the Year Ended 31 Jul 2024 31.7.24 Total funds 31.7.23 Total funds Unrestricted fund Designated fund Restricted fund Notes INCOME AND ENDOWMENTS FROM Charitable activities Provision of training 3,971.358 3,971,358 3,388,444 Investment income Other income 61,373 1,250 61,373 1,250 99,439 Total 4,033.981 4.033,981 3,487,883 EXPENDITURE ON Raising funds Investment mana£ement costs 12.591 12,591 8,877 12.591 12,591 8,877 Charatable actlvities Provision of trainTnL5 3,875.541 3,875,541 3,621,512 Total 3,888,132 3,888,132 3,630,389 NET INCOMEI(EXPENDITURE) 145,849 145,849 (142,5061 RECONCILIATION OF FUNDS Total fund5 broveht forward 3,720,408 3,720,408 3,862.914 TOTAL FUNDS CARRIED FORWARD 3.866.257 3.866,257 3,720.408 The notes fonn part of these financial statements pa11
Pierefordshire and Worcestershire Gro(1 Trainin# socIat.-cn Limited IVaranteeLiistfred nunber: 1475237 Balance Sheet 31 Jul 2024 31.7.24 Total funds 31.7.23 Total funds Unrestricted fund De512nated fund Restricted fund Notes FIXED ASSErs Tangible assets Investment property 10 3.911.610 845,IKiO 3.911,610 845,000 3,973.776 845,CQO 4,756,610 4.756,610 4,818,776 CURRENT ASSETS Debtors Cash at bank 12 495.183 851.495 495,183 851,495 509,136 810,738 1,346,678 1,346,678 1,319,874 CREDITORS Amounts falling due within one year 13 1278,661) (278,661 } 1376,0581 NET CURRENT ASSErs 1,068,017 1,068,017 943,816 TOTAL ASS5 LESS CURRENT LIABILITIES 5,824,627 5,824,627 5,762,592 CREDITORS Amounts falling due after more than one year 14 11,958,370) {1.958,370} (2,042,184) NET ASSETS 3,866,257 3,866,257 3,720,408 FUNDS Unrestricted funds: General fund 18 3.866,257 3,no,408 TOTAL FUNDS 3,866.257 3,720.408 These financTal statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financsal statements were approved by the Board of Trustees and authorised for issue ISl.41£. ..................... and weresiined onits behalf by: on S Green - Trustee The notes form part of these financial statements Page 12
Herefordshire and Worcestershire Grou TraininLF Association Limited uarantee Cash Flow Statement for the Year Ended 31 Jul 2024 31.7.24 31.7.23 Notes Cash f lows from operatlng activltles Cash ienerated from operations Interest paid Rental income 265.983 {138:5191 138,8301 127,817 1102,9551 184,8831 Net cash provided byl (used inl operatin2 activities 88,634 160,0211 Cash flows from Investlng actlvitie5 Purchase of tan2ible fixed asset5 Sale of tangiblÈ fixed as5etS Interest received Rental income (11:880} 1,250 22,543 38,830 (54,4151 14,556 84,883 Net cash prov?ded by investTng activities 50,743 45,024 Cash flow5 from financing activities Loan repayments in year 198,6201 1110,7851 Net cash used in financing activities (98,6201 1110,7851 Change in cash and cash equlvalents In the reportlng period Cash and cash equivalents at the beglnnlng of the reporting period 40.757 1125,7821 810,738 936,520 Cash and cash equivalents at the end of the reportln8 perlod 851,495 810,738 The notes form part of these financial statements Page 13
Here!ord5hire and Worcestershire Grou Trainino Association Limited Notes to the Cash Flow Statement for the Year Ended 31jU1 2024 RECONCILIATION OF NEf INCOMEI(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.7.24 31.7.23 Net Incomel{expendlture) for the reporting period (as per the Statement of Flnancial Actlvities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Interest received Interest paid Decrease in debtors (Decrease) lincrease in creditors 145,849 1142,5061 74,045 (1,2501 122,5431 138,519 13.953 182,5901 70,091 114,5561 102,955 68,442 43,391 Net cash provided by operations 265,983 127,817 ANALYSIS OF CHANGES IN NET DEBT At 1.8.23 Cash flow At 31.7.24 Net cash Cash at bank 810,738 40,757 851,495 810,738 40,757 851,495 Debt Debts fallino due within l year Debts falling due after 1 year 1134,9601 2,042,184) 14,807 83.814 {120,153) 11,958,370) 2,177, 1441 98,621 12,078,523) Total (1,366,406) 139,378 11,227,028) The notes forni part of these financial statements Page 14
Herefordshire and VJorcestershire Grou Trainino Association Limited uuarantee Notes to the Financial Statements for the Year Ended 31 Jul 2024 ACCOUNTING POLICIES Basls of preparlng the flnancial statements The financial statements of the chantable company, which TS a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP {FRS 102) 'AccountincT and Reporting by Charities: Statement of Recommended Practice applicable to charities preparin2 their accounts in accordance with the Financial Reportin¥ Standard applicable in the UK and Republic of Ireland IFRS 102) leffective 1 January 20191,, Financial Reporting Standard 102 The Financial Reportini Standard applicable in the UK and Republic of Ireland. and the Companies Act 2CQ6. The financial statements have been prepared under the historical c05t convention, a5 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 ioini concern basis is appropriate due to the followino factors: The Assxiation has strono demand for apprenticeships. with vacancies remaining high and record numbers of apprentice5 on programme, includFn2 1C¥)% occupancy in thé Worcester eniineerini centre for the last several successive years. Althouuh the ongoing loss of income due to a shortage of enqineerinz learners starting in 20121 and 21122 will impact results until FY 2024125, the long-term forecast reinforces the Association 15 a viable going concern. Start numbers in the Second half of 2023 were ahead of budeet, while starts for 2024 and beyond are expected to remain strong. Apprenticeship funding bands are not increased unless the specifTC 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 ensure5 the standards and a55essrnent methods remain fit for purpose Ito meet our employers needs), includinE providing evidence of delivery costs to influence funding changes. To date this has contnbuted to funding increases on two standards the Association delivers ensuring the programmes remain wable. 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 AssKiation to ensure the Association remains a going concern in the coming years. At the year end Free Reserves increased from £943,816 to £1,068,017, the majority of which is held in the form of cash at bank. However, takin8 into account the long terrn liabTlity (bank loan) the balance has still increased but from IE1,098,3681 to (£890,353). This is still the case as of date of sivning these fin3nc?al statements. The board will continue to monitor and review the activities and provide stron£ and clear £overnance. Income All income is recoinised in the Statement of Financial Activitie5 once the charitable company has entitlement to the funds: it Is probable that the income will be received and the amount can be measured relTably. Income from government and other frants, is recognised when the charitable cornpany has entitlement to the fund5, any performance conditions attached to the orants 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 deposTt is rncluded when receTvable and the amount can be measured reliably by the charitable company. thi5 is normally upon notification of the interest paid or payable by the Bank. Rental income is recognised a straight line basis over the term of the lease. Debtors Trade and other debtors are reco8ni5ed at the settlement amount due after any discounts offered. Prepayments are valued at the amounts prepaid net of any discounts due. Page 15 ontinued...
Herefcrd5hire and Worcestersh7re Grou Traininu Asse=iation Liniited ouapanteej Note5 to the Financial Statements - continued for the Year Ended 31 Jul 2024 ACCOUNTING POLICIE5 - continued Expenditure Liabilities arè reco8nised as expenditure as soon as there is a legal or constructive oblT£ation committing the char?ty to that expenditure, it is probable that a transfer of economic benef its wrill be required in settlement and the amount of the obligation can be measured reliably. Expend,'ture is acco'anted for on an accruals basis nd has been clas5'-fied under headinos that auLTreu3te all cost related to the category. Vlhere costs cannot be directly attributed to particular headinis t..eY hake beei allocated to actii'ities on a basis consistent with the use of resources. Creditors and provlslons Creditors and provi5ion5 are recogni5ed here the charits, has a present obl',RatiJn resulting fron a past event that probably result in the transfer of fL•nds to a third party and the arp.ount due to settle the obli£ation can be measured or estimated reliably. Creditors and provisions are normally reco2ni5ed at their settlement amount after allowin£ for any discounts due. Tangible fixed assets The Association state5 property interests at fair value. The Association enoaoed independent valuation specialists to determine fair value at 31 AugJ5t 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 assats costins £5,CXXI or more are capitalised at cost and are depreciated over their estimated useful economic lives as follows: Property Improvements Fixtures & Fittinss Plant & Machinery Hardware & Software rr & Infrastructure Strai2ht Line over 70 years Straight Line over 4 years Straight LTne over 10 years Straight Line over 3 years 100% Straight line in year 1 A55et5 under Construction are not deprec7ated until bTouuht Tnto use. Investment property Investment property is initially measured at cost and subsequently at fair value at the reporting date. Elzar House £845.(kn) 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 Gain5 Act 1992 to the extent that these are applied to its charitable objects. Fund accountlng 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. Penslon costs and other post-retlrement beneflts The charitable company operates a defined contributirffl pensi¢)n scheme. ContribJtions payable to the charitable cornpany'5 pension Scheme are charged to the Statement of Financial Activities in the period to which they relate, Page 16 continued...
Herefordshirè and Vlorcestershire Grou Trainincs sOciation Lirnited Ibj_ ouaranteel Note5 to the Financial Statements - continued for the Year Ended 31 Jul 2024 ACCOUNTING POLICIES - contlnued Financial instrument5 The charitable company only has financial assets and financial liabilities of a k7nd that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently Fneasuree at their settlement value with the exception of bank loans which are subsequently rneasured 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 hiEhly liquid investments with a short maturity of three months or less from the date of acquisition or openirw of the deposit or similar account. INVESTMENT INCOME 31.7.24 Total funds 31.7.23 Total fund5 Unrestricted funds Restricted funds Rents received Investment income 38,830 22.543 38,830 22.543 84,883 14,556 61,373 61,373 99,439 INCOME FROM CHARITABLE ACTIVITIES 31.7.24 31.7.23 Activity Provision of trainin8 Government funds Employers contributions and other course income Room hire Other income J,003.613 2,759,945 Provision of training Provision of traininE Provision of training 957,714 7,073 2,958 625,951 2,548 3,971,358 3,388.444 INVESTMENT MANAGEMENT COSTS 31.7.24 Total funds 31.7.23 Total funds Unrestricted funds Restricted funds Interest payable and similar char2es 12.591 12,591 8,877 Page 17 continued...
Hereford5hire aid Worcestershire Grou Trainin - LAssociation Limited Lbiiuarantee lotes to the Financial Statements . continued for the Year Ended 31 Jul 2024 CHARITABLE ACTIVITIES COSTS Charitable actiwt7es costs relate to the provision of training and are all direct Costs. INCOMEIIEXPENDITURE) Net incomellexpenditurel 15 Stated after charginglicreditTng): 31.7.24 31.7.23 Depreciation owned a55ets Surplus on disposal of fixed assets Auditors, fees - statutory audit Operating lease payments 74,046 11,2501 8,416 33,483 70,091 6,924 25,731 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees. remuneration or other benefits for the year ended 31 J&ily 2024 nor for the year ended 31 July 2023. STAFF COSTS 31.7.24 31.7.23 Wages and salaries Social security costs Other pension costs 1,995,002 201,892 94,476 1,904,934 194,035 80,558 2.291,370 2,179,527 Due to the government change in legislation for contractors and followin2 IR35 rules, staff salarie5 this year include associate costs vthich would previously been included in trainin2 and course expenditure. Included within Staff salaries for 2023124 is £Nil [2022123: £11,747) relatTno to a termination payment paid as ompen5ation for termlnation of employment. The averagè monthly numl)er of employees durin2 the year was as follows." 31.7.24 31.7.23 Key management Trainini Administration Associates 37 13 37 11 58 58 The number of employees whose employee benefits (excluding employer pension costs) exceèded £60,000 was: 31.7.24 31.7.23 £70,001 E80,OC The key mana£ement 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 £294,951 (2023: £295,884). Page 18 continued...
Herefordshire and Vlorcestershire Grou Traininu Association Limited uarantee Notes to the Financial Statements - continued for the Year Ended 31 Jul 2024 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIE5 Unrestricted fund Desienated fund Restricted fund Total funds INCOME AND ENDOWMENTS FROM Charltable actlvltles Provision of trainino 3.388.444 3,388,444 Investment income 99,439 99,439 Total 3,487,883 3,487,883 EXPENDITURE ON Raising funds Investment rnanagement costs 8,877 8,877 8.877 8,877 Charitable activities ProvTsion of trainin2 3.621,512 3,621,512 Total 3,630,389 3,630,389 NEf INCOME/(EXPENDITURE) 1142.5061 142,5061 RECONCILIATION OF FUNDS Total funds brou8ht forward 3,862,914 3,862,914 TOTAL FUNDS CARRIED FORWARD 3,720,408 3,720,408 The de57inated fund is held for future dilapidation costs. Pale 19 continued...
V.ereford5hire and Worcestershire Grou Trainino Association Limited uarantee Ncte5 to the Financial Statement5 - continued 10. TANGIBLE FIXED ASSErs Improvements to property Freehold property Plant and machinery COST At 1 Au2USt 2023 Additions 3,740,656 326,821 447,044 At 31 July 2024 3,740,656 326,821 447,044 DEPRECIATION At 1 August 2023 Charge for year 226,164 32,682 324,162 30,213 At 31 July 2024 258,846 354,375 NET BOOK VALUE At 31 July 2024 3,740,656 67,975 92,669 At 31 July 2023 3.740.656 100,657 122,882 Fixtures and fittings Hardware & Software IT& Infrastructure Totals COST At 1 August 2023 Additi¢)ns 34,001 85,616 11,880 33,766 4,667,904 11,880 At 31 JLily 2024 34,001 97,496 33,766 4,679,784 DEPRECIATION At 1 August 2023 Charge for year 34,CrfJ1 76,035 11,151 33,766 694,128 74,046 At 31 July 2024 34,001 87,186 33.766 768,174 BOOK VALUE At 31 July 2024 10,310 3,911,610 At 31 July 2023 9,581 3.973,776 Pale 20 continued...
Herefordshire and Worcestershire Grou Traininu SOcIation Limited uarantee Notes to the Financial Statements - continued for the Year Ended 31 JUL 2024 INVESTMENT PROPERTY FAIR VALUE At 1 August 2023 and 31 July 2024 845,000 BOOK VALUE At 31 July 2024 845,000 At 31 July 2023 845,000 During the year ended 31 AuEUSt 2016 the investment and freehold properties were revalued by an independent valuer. The fair value was detem17ned by u5inE market value as defined in the RICS Appraisal and Valuation Standards. The combined cost brcuoht fOard was £1,700,000. The fair value was calculated to be £845,CQO for the investment property and £940:000 for the freehold property, a combined value of £1,785,OCQ 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 faTr 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 31.7.24 31.7.23 Trade and other debtors Prepayments and accrued income 397,627 97,556 455,591 53,545 495,183 509,136 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.7.24 31.7.23 Bank loans and overdrafts Isee note 151 Trade and other cred7tors Soci31 security and other taxes Accruals and deferred income 120,153 92,178 58,871 7,459 134,960 153.474 61,322 26,302 278,661 376.058 2024 2023 Deferred Income at 1 August 2023 Released from previous years Resources deferred in the year 16,235 (16,2351 3,763 13,763) 16,235 Deferred Income at 31 July 2024 16,235 At the balance sheet date the Association was holdin8 funds received in advance in relation to rental income. Page 21 continued...
.erefordshire and Worcestershire Grou Traininc Asco=iation Limited LbJiuarantee 14otes to the Financial Statements - continued for the Year Ended 31 Jul 2024 14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 31.7.24 31.7.23 Bank loan5 (see note 15 1,958,370 2,042,184 LOANS An analysis of the rnatur',-ty of loans is given below: 31.7.24 31.7.23 Amounts fallinz due within one year on demand: Bank loans Coronavinjs Business Interruption Loan 93,070 27,083 95,377 39,583 120,153 134,960 Amounts falling between one and two years: Bank loans - 1-2 year5 Coronawrus Business InterruptTCn Loan 93,070 27,083 95,377 39,583 120,153 134,960 Amounts falling due between two and five years: Bank loans . 2-5 years Coronavirus Business Internjption Loan 279,211 54,167 286,131 79,167 333,378 365,298 Amounts fallinq due in more than five years: Repayable by instalments: Bank loans more 5 yr by instal 1.504,839 1,541,926 16. LEASING AGREEMENTS At 31 July 2024 the tot3l future minimum lease payTIntS under non.cancellable operating leases were: Other operatinR leases 31.7.24 31.7.23 Expirini: Within one year Between one and five years 35,156 24,159 At 31 July 2024 the total future minimum lease receipts under non-cancellable operating leases were: Land arKI Buildings 31.7.24 31.7.23 ExpTring: Within one year Between one and five years 38,795 84,883 Page 22 continued..
Herefordshire and Vlorcestershire Grou Trainino Association Limited Notes to the Financial Statements . continued for the Year Ended 31 Jul 2024 17. SECURED DEBTS The followinq secured debts are Tncluded within creditors: 31.7.24 31.7.23 Bank loans 2.078,523 2,177,144 The secured bank loans are secured at 31 July 2024 on freehold and investment property. The terms of the security provide for the lender to claim immediate repa5qnent of the loan In the event of a default. 18. MOVEMENT IN FUNDS Net movernent in funds At 31.7.24 At 1.8.23 Unrestrlcted funds General fund 3,720,408 145,849 3,866,257 TOTAL FUNDS 3,720.408 145,849 3,866,257 Net movement in funds. included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 4,033,981 (3,888,132) 145,849 TOTAL FUNDS 4,033.981 3,888,1321 145,849 Comparatives for mOvemLt in funds Net movement in funds At 31.7.23 At 1.8.22 Unrestrlcted funds General fund 3,862,914 (142,5061 3,720,408 TOTAL FUNDS 3,862,914 (142,5061 3,720,408 Page 23 continued...
Herefordshire and Worcestershlre Grou TraininLAssociaticn Lirnited (buuarantee Notes to the Financial Statements - continued for the Year Ended 31 Jul 2024 18. MOVEMENT IN FUNDS - continued Comparative net movement in funds, included in the above are as follows: Incomino resources Resources expended Movement in funds Unrestricted funds General fur,d 3,487,883 (3.630,3891 1142,506) TOTAL FUNDS 3,487.883 13,630,389) 1142,5061 A current year 12 months and prior year 12 months combined position is as follows: Net movement in funds At 31.7.24 At 1.8.22 Unrestrlcted funds General fund 3,862,914 3,343 3,866,257 TOTAL FUNDS 3,862,914 3,343 3,866,257 A current year 12 months and prior year 12 months cornbined net movement in fu4ds, included in the above are as follows: Incoming resources Resources expended Movement in fund5 UnrestrTCted funds General fund 7,521,864 17.518,521} 3,343 TOTAL FUNDS 7,521,864 (7,518,521) 3,343 19. EMPLOYEE BENEFIT OBLIGATIONS During the period the charitable company incurred penslt)n costs of £83,405 (2023: £80,558). There was an amount of £12,316 outstandini at the year end12023: £12,232). Page 24 continued...
Herefordshire and Worcestershire Grou Trainino Association Limited uarantee Notes to the Financial Statements - continued for the Year Ended 31 Jul 2024 20. RELATED PARTY DISCLOSURES The trustees are all associated with companie5 that are customers of the Association. All tran5actii)ns With these companies are carried out at normal commercial rates. 21. POST BALANCE SHEEf EVENTS It remains a strategic aim of the Association to relate the Hereford Training centre to a new purpose-built facility, with a location in the counties main ernployment zone, Skylon Park: being identified as the preferred option. Potential options to realise the project are in progress Vth a decision on the project expected during the 2024-25 financial year. 22. ULTIMATE CONTROLLING PARTY The trustees are deemed to be the ult7mate controllin% party of the chantable company. Pase 25
.'ere!ordshire and Wgrcestershire Grou Trainin . Association Linit jbx LSuaranteel Deta'-,led staterp.ent of Financial Activities for the Year Ended 31 Jul , 2024 31.7.24 31.7.23 INCOME AND ENDOWMENTS Investment income Rents received Investment income 38,830 22,543 84,883 14,556 61,373 99,439 Charltable actlvltie5 Government funds Employers contribution5 and other course income Roorn hire Other income 3,Crf)3,613 2,759,945 957,714 7,073 2,958 625,951 2,548 3,971,358 3,388,444 Other income Gain on sale of tangible fixed assets 1,250 Total Incomlng resources 4,033,981 3,487,883 EXPENDFTURE Investment management costs Bank loan interest 12,591 8,877 Charitable activltles Staff salaries Social securTty Pens70ns Training and courses Development and acqLtisition expenditure Premises costs Office Costs Depreciation of tangible fixed assets Bank loan interest 1.995,002 201,892 94,476 821.592 31,703 211,990 318,913 74,045 125,928 1.904,934 194,035 80.558 642.851 16,692 321,772 296.501 70,091 94,078 3,875,541 3,621,512 Total resources expended 3,888,132 3,630,389 Net incomel{expendlture) 145,849 {142,5C61 This page does not form part of the statutory financial statements Page 26