**REGISTERED COMPANY NUMBER: 00918178 REGISTERED CHARITY NUMBER: 518211**
**S. W. Durham Training Limited**
**Report of the Trustees and**
**Financial Statements**
**for the Year Ended 31 July 2022**
## **S. W. Durham Training Limited**
**Contents of the Financial Statements for the Year Ended 31 July 2022**
||**Page**|
|---|---|
|**Report of the Trustees**|2 to 7|
|**Report of the Independent Auditors**|8 to 12|
|**Statement of Financial Activities**|13|
|**Balance Sheet**|14|
|**Notes to the Financial Statements**|15 to 24|
|**Detailed Statement of Financial Activities**|25|
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## **S. W. Durham Training Limited**
## **Report of the Trustees for the Year Ended 31 July 2022**
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 2022. 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 Charitable objectives**
It is the objective of S W Durham Training Limited to provide a high quality training service and promote a lifetime of learning culture to meet the ongoing needs of individuals and the business community, to maximise potential, to secure jobs and create wealth for the region.
## **ACHIEVEMENT AND PERFORMANCE**
The charitable company continues to develop and deliver full time training for young people and adults in the engineering sector, apprentice frameworks and bespoke/commercial training programmes to local and regional organisations, providing lifelong learning opportunities within manufacturing, engineering and commercial sectors.
## **FINANCIAL REVIEW**
## **Personnel**
The average number of employees throughout the period 2021/22 was 18 (2020/21: 19).
## **Reserves policy**
The Council of Management consider the charitable company requires reserves to:
- ensure that the current activities of the charitable company would be able to continue in the event of a change or significant drop in the level of funding;
- allow the Council to react quickly to the training needs of the manufacturing and service industries in our area;
- enable the charitable company to continue to invest in fixed assets and maintain the freehold property in a high state of repair.
In order to be prepared for these eventualities target reserves equating to 6 months of cash expenditure, excluding Group recharges, are deemed appropriate; £500k. The Reserves Policy will be reviewed and approved annually by the Council.
The Council has reviewed the level of free reserves held, which currently stand at £846,767 (2021: £872,415), and considers this is adequate to ensure the continued operation of the charitable company. South West Durham Training is forecast to return to a surplus position in the current year 22/23 and through 23/24 continuing to grow reserves.
Monthly management accounts are prepared to enable the Council to monitor the level of reserves on a timely basis.
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## **S. W. Durham Training Limited**
## **Report of the Trustees for the Year Ended 31 July 2022**
## **FINANCIAL REVIEW Going concern**
It is considered appropriate to adopt the going concern basis of accounting in preparing these financial statements, on the basis that the company has the ability to continue to operate for a significantly longer period than the statutory twelve months from the date of approval.
The 2021/22 financial statements see the company remain in a loss position where the budget prepared in May-2021 projected a £45k surplus. A cautious approach has been taken to the preparation of the 2022/23 financial plan showing reduction in income streams that may be affected by the cost of living crisis, particularly 16-19 programme funding and commercial income. The value of 'carry in' funding (funding for apprentices already in learning) for the company is calculated at £664k. A cautious approach has been taken to predicting the number of new apprenticeship enrolments in 2022/23, taking into account the current employer base that the SWDT work with. To date SWDT has already reached the 2022/23 budget providing all learners remain on program. There has been careful planning of staffing with a change in the management structure and additional investment in staffing and non pay budget. The 2021/22 final outturn position shows SWDT to be in a deficit position, work will continue to reduce the deficit position and bring the organisation back to a break even or surplus position for the year 2022/23.
Detailed cash flow forecasts have been prepared which show that SWDT is expected to have a positive cash position for at least 24 months from the date of signing these financial statements
## **Financial Year**
The company finished the year in a deficit position; this was a decline against the approved budget.
The Council of Management are proposing for approval at the annual general meeting that the fee structure for the training period commencing 1 August 2022 be as follows:
(a) that a company sending a learner to the centre and having that learner with S W Durham Training Limited will, providing the learner is eligible for full funding, not be charged whilst full funding is still available for that learner and they are aged 16-18 at the start of their framework. If the learner is not eligible for full funding, the sponsoring company will pay the difference between full funding and that received;
(b) that companies will pay fees for their learner to attend work based learning and further education subsequent to completion of apprenticeships framework.
## **COUNCIL OF MANAGEMENT**
No fees have been paid to any Member of the Council of Management nor does any such member have any beneficial interest
## **Governing document**
S W Durham Training Limited is a company limited by guarantee, incorporated in the United Kingdom and a registered charity. The charitable company is governed by its Memorandum and Articles of Association, as amended at the extraordinary general meeting of 17 October 2014.
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## **S. W. Durham Training Limited**
## **Report of the Trustees for the Year Ended 31 July 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Recruitment and appointment of new council members**
Council members, who are also trustees and directors of the charitable company, can appoint any nominated member to act until the next Annual General Meeting at which time they are eligible for re-election.
## **Organisational structure**
The council members can meet as many times as they see fit, but generally they meet every three months. Decisions will be made by a majority vote with the Chairperson having the casting vote. Day to day management of the charitable company is delegated to the General Manager. The Chief Executive resigned on the 31[st] July 21 and a temporary structure was in place with the then operations manager taking some additional responsibilities whiles reporting to the Bishop Auckland College Principal. The structure was further enhanced by seconding the head of apprenticeship and business Services to S.W. Durham Training to support the operations manager is improving quality of apprenticeship provision. A recruitment process for a general manager with an engineering background was unsuccessful. The board chose to reflect on the existing temporary structure and agreed that this was a stung structure that could remain in place for a further 12 months after which point the board would review. The current senior structure includes the general manager who reports to the Bishop Auckland College Principal and the operations manager who report to the general manager.
## **Induction and training of new council members**
New council members are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, recent financial performance and future plans. They are introduced to key employees and other council members. Council members are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
## **Key management remuneration**
Details of key management remuneration, which is set by the council having regard to the recommendations of the remuneration committee of the parent Bishop Auckland College, are set out in note 8 to the financial statements.
## **Investment powers**
The council members may invest any monies in any manner authorised by law for the investment of such funds.
## **Restrictions imposed**
No paid employee or person in receipt of fees or any other remuneration from the charitable company may be a council member. However, any council member engaged by the charitable company in any profession will be entitled to be paid for any work done for the charitable company.
## **Public benefit**
The charitable company's aims and achievements are set out within this report. The activities set out in this report have been undertaken to further the charitable company's charitable purposes for the public benefit. The council members have complied with the duty under Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission and the trustees have paid due regard to this guidance in deciding what activities the Trust should undertake.
The charitable company's activities in providing training for young people benefit the learners themselves as well as employers and the wider community, providing opportunities to learners and contributing to the creation of jobs and wealth for the North East.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number**
00918178
## **Registered Charity number**
518211
## **Registered office**
Durham Way South Aycliffe Business Park NEWTON AYCLIFFE Co Durham, DL5 6AT
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## **S. W. Durham Training Limited**
## **Report of the Trustees for the Year Ended 31 July 2022**
## **Trustees**
Keith Ivory (Chair) Natalie Davison-Terranova Mark Henderson Paul Aither (left 18[th] October 2022) James Robson David Bell Bobby Taylor
The trustees, who constitute the Council of Management, are also the directors of the company for the purposes of the Companies Act 2006.
## **Chief Executive Officer**
None
**General Manager** Jonathan Hall
**Company Secretary** Lynn Heighton
## **Auditors**
Armstrong Watson Suite 15 & 17 11 Waterloo Street Newcastle upon Tyne NE1 4DP
## **Solicitors**
Muckle LLP Time Central 32 Gallowgate NEWCASTLE UPON TYNE NE1 4BF
## **Bankers**
Barclays Bank Plc PO Box 378 71 Grey Street NEWCASTLE UPON TYNE NE99 1JP
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## **S. W. Durham Training Limited**
**Report of the Trustees for the Year Ended 31 July 2022**
## **CHAIRMAN'S STATEMENT**
On behalf of the Council of Management, may I take this opportunity to thank all members of staff of S W Durham Training Limited for their continued support and dedication to the success of the charitable company. I would also like to take this opportunity to thank all our Member Companies for their high level of support during the year. This has been a challenging year for S W Durham Training dealing with the lasting impact of the global pandemic and cost of living crisis; despite the challenges we have seen apprenticeship numbers continue to grow.
Apprenticeship numbers are very encouraging and are bucking the current trend seen across other parts of the country. New and existing employers are increasing their investment in training and have selected SWDT as their provider of choice. 16-19 Study Programmes have declined and this is again is the impact of the cost of living crisis where many young learner are choosing to get paid work rather than stay in full time education.
## KD Ivory
KD Ivory (Feb 14, 2023 11:33 GMT)
Keith Ivory Chair
17[th] February 2023
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## **S. W. Durham Training Limited**
## **Report of the Trustees for the Year Ended 31 July 2022**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of S. W. Durham Training Limited 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 SORP;
- 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, Armstrong Watson, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of trustees on 17[th] February 2023 and signed on its behalf by:
KD Ivory KD Ivory (Feb 14, 2023 11:33 GMT) ........................................................................ Keith Ivory – Trustee
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## **Report of the Independent Auditors to the Members of S. W. Durham Training Limited**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF S. W. DURHAM TRAINING LIMITED**
## **Opinion**
We have audited the financial statements of S. W. Durham Training Limited (the 'charitable company') for the year ended 31 July 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
- 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 2022 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; 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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion 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 Trustees' report including the Strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' report and the Strategic report have been prepared in accordance with applicable legal requirements.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF S. W. DURHAM TRAINING LIMITED (Continued)**
## **Matters on which we are required to report by exception**
In the light of our 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 Trustees' report including the Strategic report.
We have nothing to report in respect of the following matters in relation to which 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.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF S. W. DURHAM TRAINING LIMITED (Continued)**
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees on page 21 (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.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF S. W. DURHAM TRAINING LIMITED (Continued)**
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
• We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
• We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
• The risk of fraud and non compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls.
• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
• We enquired of the directors and third party advisors about actual and potential litigation and claims.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
Due 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, as with any audit, there remained a higher risk of non detection of irregularities, as these may involve collusion, forgery, internal omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non compliance with laws and regulations and cannot be expected to detect all fraud and non compliance with 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 Auditor's report.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF S. W. DURHAM TRAINING LIMITED (Continued)**
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Simon Turner (Senior statutory auditor) for and on behalf of Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors
> Date: 14/02/2023
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## **S. W. Durham Training Limited**
**Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 31 July 2022**
|Notes
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Income from activities and services
3
Investment income
2
**Total**
**EXPENDITURE ON**
**Charitable activities**
Charitable expenditure
4
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
fund
£
1,187,630
80
1,187,710
1,170,084
17,626
1,439,958
1,457,584|Restricted
funds
£
-
-
-
126,603
(126,603)
1,595,473
1,468,870|2022
Total
funds
£
1,187,630
80
1,187,710
1,296,687
(108,977)
3,035,431
2,926,454|2021
Total
funds
£
1,355,324
3
1,355,327
1,449,690
(94,363)
3,129,794
3,035,431|
|---|---|---|---|---|
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The notes form part of these financial statements
## **S. W. Durham Training Limited**
## **Balance Sheet 31 July 2022**
|Notes
**FIXED ASSETS**
Tangible assets
10
**CURRENT ASSETS**
Debtors
11
Cash at bank
**CREDITORS**
Amounts falling due within one year
12
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**NET ASSETS**
**FUNDS**
14
Unrestricted funds
Restricted funds
**TOTAL FUNDS**|Unrestricted
fund
£
610,817
122,925
928,066
1,050,991
(204,224)
846,767
1,457,584
1,457,584|Restricted
funds
£
1,468,870
-
-
-
-
-
1,468,870
1,468,870|2022
Total
funds
£
2,079,687
122,925
928,066
1,050,991
(204,224)
846,767
2,926,454
2,926,454
1,457,584
1,468,870
2,926,454|2021
Total
funds
£
2,163,015
331,271
696,558
1,027,828
(155,413)
872,415
3,035,431
3,035,431
1,439,958
1,595,473
3,035,431|
|---|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 17[th] February 2023. and were signed on its behalf by:
KD Ivory KD Ivory (Feb 14, 2023 11:33 GMT) ............................................. Keith Ivory – Chair
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The notes form part of these financial statements
## **S. W. Durham Training Limited**
## **Notes to the Financial Statements for the Year Ended 31 July 2022**
## **1. 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.
The charitable company has availed itself of Paragraph 3(3) of Schedule 4 of the Companies Act and adapted the Companies Act formats to reflect the special nature of the charitable company's activities.
The financial statements are prepared in sterling (£).
## **Going Concern**
The financial statements are prepared on the going concern basis which assumes that the charitable company will continue to operate. If the company is unable to continue to operate, adjustments would be required to reduce the value of assets to their recoverable amounts, to provide for any further liabilities that might arise and to analyse both fixed assets and long term liabilities as current assets and liabilities.
The charity had total funds of £2,926,454 as at 31 July 2022 (decrease of £108,977 from 31 July 2021). Budgets and cash flow forecasts have been updated to factor in the expected reduction in income and a worst case scenario has been used to confirm that the charity has sufficient cash for the organisation to continue for at least 12 months from the date these financial statements are signed. At the time of approving the financial statements, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **Financial reporting standard 102 - reduced disclosure exemptions**
The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **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 costs 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.
## **Allocation and apportionment of costs**
Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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continued...
## **S. W. Durham Training Limited**
**Notes to the Financial Statements - Continued for the Year Ended 31 July 2022**
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold land & buildings - 4% on cost and 2% on cost Plant, machinery, fixtures & equipment - 20% on cost, 16.67% on cost, 10% on cost and 4% on cost Motor vehicles - 25% on reducing balance Computer equipment - 50% on cost and 33%-50%on cost
## **Related party exemption**
The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions group entities.
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continued...
## **S. W. Durham Training Limited**
**Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
## **1. ACCOUNTING POLICIES - continued**
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **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.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
## **Pension costs and other post-retirement benefits**
The charitable company operates a funded group pension plan arrangement, whereby it makes contributions directly to each individual employees' pension plan. Contributions paid are included in the period to which they relate.
## **Irrecoverable vat**
The charity was partially exempt for VAT purposes for the period ended 31 July 2022. Irrecoverable VAT has been included in the Statement of Financial Activities during the period within support costs.
## **Investments**
Listed investments are included in the financial statements at market value at the balance sheet date.
## **Financial Instruments**
The charitable company 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.
## **Critical accounting estimates and areas of judgement**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Critical accounting estimates and assumptions:**
The charitable company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
## **Critical areas of judgement**
Depreciation - Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the economic life of that asset. An estimate of the useful life of assets is detailed in the depreciation policy.
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continued...
## **S. W. Durham Training Limited**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
## **2. INVESTMENT INCOME**
|Unrestricted
Restricted
funds
funds
£
£
Bank interest
**3.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Apprentices & youth/adult
training
Income from activities and services
Course fees
Income from activities and services
**4.**
**CHARITABLE ACTIVITIES COSTS**|2022
Total
funds
£
80
2022
£
1,110,880
76,750
1,187,630|2021
Total
funds
£
3
2021
£
1,258,636
96,688
1,355,324|
|---|---|---|
|Charitable expenditure
**5.**
**SUPPORT COSTS**
Charitable expenditure
Support costs, included in the above, are as follows:
**Management**
Wages & salaries
Social security
Pensions
Advertising & publicity
General expenses
Irrecoverable VAT
Operating and maintenance costs
College recharges
Depreciation of tangible and heritage assets|Direct
Costs
£
816,048
Management
£
465,673|Support
costs (see
note 5)
£
480,639
Governance
costs
£
14,966
2022
Charitable
expenditure
£
14,837
1,746
1,377
1,475
8,480
27,764
104,258
200,000
105,736
465,673|Totals
£
1,296,687
Totals
£
480,639
2021
Total
activities
£
16,444
1,921
1,192
2,843
7,152
25,765
100,217
200,000
169,834
525,368|
|---|---|---|---|
|||||
**18** | P a g e
continued...
## **S. W. Durham Training Limited**
**Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
## **5. SUPPORT COSTS - continued Governance costs**
|**5.**
**SUPPORT COSTS - continued**
**Governance costs**|||
|---|---|---|
|Auditors' remuneration
Accountancy and legal fees
**6.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
**7.**
**TRUSTEES' REMUNERATION AND BENEFITS**|2022
Total
activities
£
11,760
3,206
14,966
2022
£
11,760
105,736|2021
Total
activities
£
10,680
4,596
15,276
2021
£
10,680
169,836|
||||
The trustees receive no emoluments for their services to the charitable company (2021: £Nil).
## **Trustees' expenses**
Trustees' expenses totalling £Nil were reimbursed during the year (2021: £Nil).
## **8. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Training
Administration||2022
£
534,344
44,636
58,838
637,818
2022
13
5
18||2021
£
556,878
49,134
81,081|
|---|---|---|---|---|
|||||687,093|
|||||2021
14
5
19|
Key management comprise the Chief Executive. Remuneration of key management during the year was £Nil including £Nil pension contributions (2021: £63,854 including pension contributions of £4,522).
Zero employees received emoluments in excess of £60,000 (2021: Nil).
**19** | P a g e
continued...
## **S. W. Durham Training Limited**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
|**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Income from activities and services
1,355,324
Investment income
3
**Total**
1,355,327
**EXPENDITURE ON**
**Charitable activities**
Charitable expenditure
1,323,087
**NET INCOME/(EXPENDITURE)**
32,240
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
1,407,718
**TOTAL FUNDS CARRIED FORWARD**
1,439,958
**10.**
**TANGIBLE FIXED ASSETS**
Plant,
Freehold
machinery,
land &
fixtures
Motor
buildings
& equipment
vehicles
£
£
£
**COST**
At 1 August 2021
4,804,380
3,352,439
42,984
Additions
-
22,406
-
At 31 July 22
4,804,380
3,374,845
42,984
**DEPRECIATION**
At 1 August 2021
3,133,247
2,860,559
42,984
Charge for year
56,110
49,622
-
At 31 July 2022
3,189,357
2,910,181
42,984
**NET BOOK VALUE**
At 31 July 2022
1,615,023
464,664
-
At 31 July 2021
1,671,133
491,880
-|**9.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Income from activities and services
1,355,324
Investment income
3
**Total**
1,355,327
**EXPENDITURE ON**
**Charitable activities**
Charitable expenditure
1,323,087
**NET INCOME/(EXPENDITURE)**
32,240
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
1,407,718
**TOTAL FUNDS CARRIED FORWARD**
1,439,958
**10.**
**TANGIBLE FIXED ASSETS**
Plant,
Freehold
machinery,
land &
fixtures
Motor
buildings
& equipment
vehicles
£
£
£
**COST**
At 1 August 2021
4,804,380
3,352,439
42,984
Additions
-
22,406
-
At 31 July 22
4,804,380
3,374,845
42,984
**DEPRECIATION**
At 1 August 2021
3,133,247
2,860,559
42,984
Charge for year
56,110
49,622
-
At 31 July 2022
3,189,357
2,910,181
42,984
**NET BOOK VALUE**
At 31 July 2022
1,615,023
464,664
-
At 31 July 2021
1,671,133
491,880
-|
Restricted
funds
£
-
-
-
126,603
(126,603)
1,722,076
1,595,473
Computer
equipment
£
713,397
-
713,397
713,397
-
713,397
-
-||Total
funds
£
1,355,324
3
1,355,327
1,449,690
(94,363)
3,129,794
3,035,431
Totals
£
8,913,200
22,406|
|---|---|---|---|---|
|||||8,935,606|
|||||6,750,187
105,732
6,855,919
2,079,687
2,163,013|
||||||
||||||
||||||
Included in cost or valuation of land and buildings is freehold land of £300,000 (2021: £300,000) which is not depreciated.
Freehold land was revalued as at 31 July 2014 by the trustees supported by an independent valuation. On transition to FRS102 the freehold land is held at deemed cost.
**20** | P a g e
continued...
## **S. W. Durham Training Limited**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
|**11.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2022
£
Trade debtors
5,326
Amounts owed by group undertakings
-
Prepayments and accrued income
117,599
122,925
**12.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
2022
£
Trade creditors
23,505
Other creditors
20,841
Amounts owed to group undertakings
7,566
Social security and other taxes
25,738
Deferred income
74,563
Accruals
52,011
204,224
**Deferred Income**
Balance at 1 August 2021
Amount received and accrued in the year
Balance at 31 July 2022
Amount released to incoming resources
Deferred income relates to 16-19 programme funding income received and not earned.
This funding will be subject to clawback.
**13.**
**LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
2022
£
Within one year
-
Between one and five years
-
-
**14.**
**MOVEMENT IN FUNDS**
Net
movement
At 01.08.21
in funds
£
£
**Unrestricted funds**
General fund
1,439,958
17,626
**Restricted funds**
The Core
1,595,473
(126,603)
**TOTAL FUNDS**
3,035,431
(108,977)|2021
£
5,327
168,581
157,362
331,271
2021
£
11,834
-
-
28,401
51,995
63,183
155,413
(51,995)
1,601,152
(74,563)
934,594
2021
£
8,439
-
8,439
At 31.07.22
£
1,457,584
1,468,870
2,926,454|
|---|---|
**21** | P a g e
continued...
## **S. W. Durham Training Limited**
## **Notes to the Financial Statements - continued**
## **for the Year Ended 31 July 2022**
## **14. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
The Core
**TOTAL FUNDS**
**Comparatives for movement in funds**
**Unrestricted funds**
General fund
**Restricted funds**
The Core
**TOTAL FUNDS**
Comparative net movement in funds, included in the above are a
**Unrestricted funds**
General fund
**Restricted funds**
The Core
**TOTAL FUNDS**|Incoming
resources
£
1,187,710
-
1,187,710
At 01.08.20
£
1,407,718
1,722,076
3,129,794
s follows:
Incoming
resources
£
1,355,327
-
1,355,327|Resources
expended
£
(1,170,084)
(126,603)
(1,296,687)
Net
movement
in funds
£
32,240
(126,603)
(94,363)
Resources
expended
£
(1,323,087)
(126,603)
(1,449,690)|Movement
in funds
£
17,626
(126,603)
(108,977)
At
31.07.21
£
1,439,958
1,595,473
3,035,431
Movement
in funds
£
32,240
(126,603)
(94,363)|
|---|---|---|---|
**22** | P a g e
continued...
## **S. W. Durham Training Limited**
## **Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
## **14. MOVEMENT IN FUNDS - continued**
A current year 12 months and prior year 12 months combined position is as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
The Core
**TOTAL FUNDS**|At 01.08.20
£
1,407,718
1,722,076
3,129,794|Net
movement
in funds
£
49,866
(253,206)
(203,340)|At 31.07.22
£
1,457,584
1,468,870
2,926,454|
|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
|**Unrestricted funds**
General fund
**Restricted funds**
The Core
**TOTAL FUNDS**|Incoming
resources
£
2,543,037
-
2,543,037|Resources
expended
£
(2,493,171)
(253,206)
(2,746,377)|Movement
in funds
£
49,866
(253,206)
(203,340)|
|---|---|---|---|
Unrestricted funds: These funds represent unrestricted resources available for the general work of the charitable company.
## The Core:
This is funds from Durham County Council for the creation of the advanced manufacturing facility known as The Core (Creating Opportunities, Realising Excellence).
## **15. ULTIMATE PARENT COMPANY**
The ultimate parent company is Bishop Auckland College, a college of further education incorporated in the United Kingdom, which is the sole member of the charity. The consolidated accounts can be obtained from the college at Woodhouse Lane, Bishop Auckland, County Durham, DL14 6JZ.
**23** | P a g e
continued...
## **S. W. Durham Training Limited**
**Notes to the Financial Statements - continued for the Year Ended 31 July 2022**
## **16. CAPITAL COMMITMENTS**
There were no capital commitments at 31 July 2022 or 2021.
## **17. RELATED PARTY DISCLOSURES**
The charitable company has taken advantage of the exemption under FRS102 not to disclose transactions with UK parent company.
## **18. MEMBERS**
The liability of the members of the charitable company is limited by guarantee and such liability does not exceed £10 per member.
**24** | P a g e
## **S. W. Durham Training Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 July 2022**
|**INCOME AND ENDOWMENTS**
**Investment income**
Bank interest
**Charitable activities**
Apprentices & youth/adult training
Course fees
**Total incoming resources**
**EXPENDITURE**
**Charitable activities**
Wages and salaries
Social security
Pensions
Course & workshop expenses
Administration & monitoring
**Support costs**
**Management**
Wages & salaries
Social security
Pensions
Advertising & publicity
General expenses
Irrecoverable VAT
Operating and maintenance costs
College recharges
Depreciation of tangible and heritage assets
**Governance costs**
Auditors' remuneration
Accountancy and legal fees
Total resources expended
**Net expenditure**|2022
£
80
1,110,880
76,750
1,187,630
1,187,710
519,507
42,890
57,461
159,754
36,436
816,048
14,837
1,746
1,377
1,475
8,480
27,764
104,258
200,000
105,736
465,673
11,760
3,206
14,966
1,296,687
(108,977)|2021
£
3
1,258,636
96,688
1,355,324
1,355,327
540,434
47,213
79,889
204,185
37,325
909,046
16,444
1,921
1,192
2,843
7,152
25,765
100,217
200,000
169,834
525,368
10,680
4,596
15,276
1,449,690
(94,363)|
|---|---|---|
**25** | P a g e
This page does not form part of the statutory financial statements
2023-02-14
Final Audit Report
## SWDT Final Accounts
Created: 2023-02-10 By: Rachael Tillston (rachael.tillston@armstrongwatson.co.uk) Status: Signed Transaction ID: CBJCHBCAABAA2YY-oYgILJ6DZ7qImsBVUpyD1u-dOhQL
## "SWDT Final Accounts" History
Document created by Rachael Tillston (rachael.tillston@armstrongwatson.co.uk)
2023-02-10 - 09:22:07 GMT- IP address: 2.219.204.57
## Document emailed to keith@transitionalhr.co.uk for signature
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## Email viewed by keith@transitionalhr.co.uk
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- Signer keith@transitionalhr.co.uk entered name at signing as KD Ivory
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## Document e-signed by KD Ivory (keith@transitionalhr.co.uk)
Signature Date: 2023-02-14 - 11:33:27 GMT - Time Source: server- IP address: 93.115.8.85
Document emailed to Simon Turner (simon.turner@armstrongwatson.co.uk) for signature 2023-02-14 - 11:33:29 GMT
## Email viewed by Simon Turner (simon.turner@armstrongwatson.co.uk)
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Document e-signed by Simon Turner (simon.turner@armstrongwatson.co.uk)
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## Agreement completed.
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