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 sOUc￿oRs Lanyon &)wdler 12 The Business Quarter Eco Park Road Ludlow Shropshire SY8 1FD BANKERS Uoyds Bank PLC 8 High Town Heref￿d 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 s￿h 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 h*et 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 se￿iCe l*kiintaln 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 meML￿5, Customers and local people Influence extemal agencie5 on the training and skills needs of members and custo￿￿r5 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 B￿t£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 V￿re 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 ContrI￿te 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 manage￿Ent prograrrwnes being consistent thr￿g￿￿t the year. A priorlty for the A550dation is to irKrease participation of under represented grow, s￿h 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. HW￿A 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 £d￿atiOn and Skills Funding Age￿, used to provlde apprenti￿ training and assesswent in accordance with the F￿dIng Rules. Increased englneerin8 co￿rts 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 AS￿latIOn 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 l￿dget. The 2024-2025 year has started with a yxcessiye record intake on the engineering programmes, 5UPPOrted by commerce and management programme5 ahead of Ix*t. 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 Associa￿On 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 eXp￿lture, we are workfng towards operating cash reserves being maintalned at a minimum of £550k. TrÈ level of Reserve5 rnay ￿ i￿reased up to a max1w￿rn 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 Operat￿￿al factors at each Board meeting. Reserves V￿11 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 A55￿1at￿jrt Llmited of the TnLSt&s for the Year Ended 31 2(r24 ASs￿latiOn piarts to tontlwe the work kn lkne with the wncyai artivitse5 of the c0ryX￿. The 2023.26 strate8lc ' Sustalnablllty . & EngageTh*nt - l)Jality & Improvement . Provlsion . Pets￿e & F￿litIeS Govffnlng document The charity is controlled by Its goYernk4