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 2023
0
S. W. Durham Training Limited
| Contents of the Financial Statements | |||
|---|---|---|---|
| for the Year Ended 31 July 2023 | |||
| 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 2023
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
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 2022/23 was 14 (2021/22: 18).
Reserves policy
The Council of Management consider the charitable company requires reserves to:
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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;
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allow the Council to react quickly to the training needs of the manufacturing and service industries in our area;
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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 £840,748 (2022: £846,767), 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 23/24 and through 24/25 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 2023
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 2022/23 financial statements see the company move from a £109k loss to a £2k loss and improvement of £107k. A cautious approach has been taken to the preparation of the 2024/25 financial plan showing reduction in income streams that may be affected by the cost of living crisis, particularly 16-19 programme funding and commercial. The 2022/23 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 2023/24.
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 2023 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 2023
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.
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 2023
Trustees
Keith Ivory (Chair) Natalie Davison-Terranova Mark Henderson 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 2023
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 29, 2024 14:02 GMT)
Keith Ivory Chair
Date : 21[st] February 2024
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S. W. Durham Training Limited
Report of the Trustees for the Year Ended 31 July 2023
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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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:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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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 21[st] Feruary 2024 and signed on its behalf by:
KD Ivory KD Ivory (Feb 29, 2024 14:02 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 2023 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).
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In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 July 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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• 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:
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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.
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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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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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
29/02/2024
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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 2023
| 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 £ 1,200,754 - 1,200,754 1,076,259 124,495 1,457,584 1,582,079 |
Restricted funds £ - - - 126,603 (126,603) 1,468,870 1,342,267 |
2023 Total funds £ 1,200,754 - 1,200,754 1,202,862 (2,108) 2,926,454 2,924,345 |
2022 Total funds £ 1,187,630 80 1,187,710 1,296,687 (108,977) 3,035,431 2,926,454 |
|---|---|---|---|---|
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The notes form part of these financial statements
S. W. Durham Training Limited
Balance Sheet 31 July 2023
| 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 £ 741,330 271,789 1,098,340 1,370,129 (529,381) 840,748 1,582,078 1,582,078 |
Restricted funds £ 1,342,267 - - - - - 1,342,267 1,342,267 |
2023 Total funds £ 2,083,597 271,789 1,098,340 1,370,129 (529,381) 840,748 2,924,345 2,924,345 1,582,079 1,342,267 2,924,346 |
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 |
|---|---|---|---|---|
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 21[st] February 2024. and were signed on its behalf by:
KD Ivory KD Ivory (Feb 29, 2024 14:02 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 2023
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 £2,924,345 as at 31 July 2023 (decrease of £2,108 from 31 July 2022). 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 2023
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 2023
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 2023. 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 2023
2. INVESTMENT INCOME
| Unrestricted Restricted funds funds £ £ Bank interest INCOME FROM CHARITABLE ACTIVITIES Activity Apprentices & youth/adult training Income from activities and services Course fees Income from activities and services CHARITABLE ACTIVITIES COSTS Direct Costs £ Charitable expenditure 702,648 SUPPORT COSTS Management £ Charitable expenditure 479,793 Support costs, included in the above, are as follows: Management |
2023 Total funds £ - 2023 £ 1,168,726 32,028 1,200,754 Support costs (see note 5) £ 500,214 Governance costs £ 20,421 |
2022 Total funds £ 80 |
2022 Total funds £ 80 |
|---|---|---|---|
| 2022 £ 1,110,880 76,750 |
|||
| 1,187,710 Totals £ 1,202,862 |
|||
| Totals £ 500,214 |
|||
| 2023 Charitable expenditure £ Wages & salaries 13,373 Social security 1,561 Pensions 958 Advertising & publicity 2,779 General expenses 8,187 Irrecoverable VAT 23,707 Operating and maintenance costs 135,972 College recharges 190,000 Depreciation of tangible and heritage assets 103,256 479,793 |
2022 Total activities £ 14,837 1,746 1,377 1,475 8,480 27,764 104,258 200,000 105,736 |
||
| 465,673 |
3. INCOME FROM CHARITABLE ACTIVITIES
4. CHARITABLE ACTIVITIES COSTS
5. SUPPORT COSTS
| Management | ||
|---|---|---|
| 2023 | 2022 | |
| Charitable | Total | |
| expenditure | activities | |
| £ | £ | |
| Wages & salaries | 13,373 | 14,837 |
| Social security | 1,561 | 1,746 |
| Pensions | 958 | 1,377 |
| Advertising & publicity | 2,779 | 1,475 |
| General expenses | 8,187 | 8,480 |
| Irrecoverable VAT | 23,707 | 27,764 |
| Operating and maintenance costs | 135,972 | 104,258 |
| College recharges | 190,000 | 200,000 |
| Depreciation of tangible and heritage assets | 103,256 | 105,736 |
| 479,793 | 465,673 |
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continued...
S. W. Durham Training Limited
Notes to the Financial Statements - continued for the Year Ended 31 July 2023
5. SUPPORT COSTS - continued Governance costs
| SUPPORT COSTS - continued Governance costs |
||
|---|---|---|
| 2023 | 2022 | |
| Total | Total | |
| activities | activities | |
| £ | £ | |
| Auditors' remuneration | 14,400 | 11,760 |
| Accountancy and legal fees | 6,021 | 3,206 |
| 20,421 | 14,965 |
6. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| Auditors' remuneration Depreciation – owned assets Operating leases |
2023 £ 14,400 103,256 - 117,656 |
2022 £ 11,760 105,736 8,439 |
|---|---|---|
| 125,935 |
7. TRUSTEES' REMUNERATION AND BENEFITS
The trustees receive no emoluments for their services to the charitable company (2022: £Nil ).
Trustees' expenses
Trustees' expenses totalling £Nil were reimbursed during the year (2022: £Nil).
8. STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| Wages and salaries Social security costs Other pension costs |
2023 £ 448,734 38,355 52,340 539,429 |
2022 £ 534,344 44,636 58,838 |
| 637,818 |
The average monthly number of employees during the year was as follows:
| Training Administration |
2022 9 5 14 |
2021 13 5 |
|---|---|---|
| 18 |
Key management comprise the General Manager. Remuneration of key management during the year was £40,429 including £6,532 pension contributions (2022: £Nil including pension contributions of £Nil ).
Zero employees received emoluments in excess of £60,000 (2022: Nil).
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S. W. Durham Training Limited
Notes to the Financial Statements - continued for the Year Ended 31 July 2023
9. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Charitable activities Income from activities and services Investment income Total EXPENDITURE ON Charitable activities Charitable expenditure NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD TANGIBLE FIXED ASSETS Freehold land & buildings £ COST At 1 August 2022 4,804,380 Additions - At 31 July 23 4,804,380 DEPRECIATION At 1 August 2022 3,189,357 Charge for year 56,110 At 31 July 2023 3,245,467 NET BOOK VALUE At 31 July 2023 1,558,913 At 31 July 2022 1,615,023 |
Plant, machinery, fixtures & equipment £ 3,374,845 107,165 3,482,010 2,910,181 47,145 2,957,326 524,684 464,664 |
Unrestricted fund £ 1,187,630 80 1,187,710 1,170,084 17,626 1,439,958 1,457,584 Motor vehicles £ 42,984 - 42,984 42,984 - 42,984 - - |
Restricted funds £ - - - 126,603 (126,603) 1,595,473 1,468,870 Computer equipment £ 713,397 - 713,397 713,397 - 713,397 - - |
Total funds £ 1,187,630 80 1,187,710 1,296,687 (108,977) 3,035,431 2,926,454 Totals £ 8,935,606 107,165 9,042,771 6,855,919 103,255 6,959,174 2,083,597 2,079,687 |
|---|---|---|---|---|
10. TANGIBLE FIXED ASSETS
Included in cost or valuation of land and buildings is freehold land of £300,000 (2022: £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.
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S. W. Durham Training Limited
Notes to the Financial Statements - continued for the Year Ended 31 July 2023
11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Trade debtors | 9,444 | 5,326 | |
| Amounts owed by group undertakings | - | - | |
| Prepayments and accrued income | 262,343 | 117,599 | |
| 271,787 | 122,925 | ||
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Trade creditors | 61,608 | 23,505 | |
| Other creditors | 20,820 | 20,841 | |
| Amounts owed to group undertakings | 24,732 | 7,566 | |
| Social security and other taxes | 16,759 | 25,738 | |
| Deferred income | 299,402 | 74,563 | |
| Accruals | 106,060 | 52,011 | |
| 529,381 | 204,224 | ||
| Deferred Income | |||
| Balance at 1 August 2022 | (74,563) | ||
| Amount received and accrued in the year | 1,222,325 | ||
| Balance at 31 July 2023 | 96,134 | ||
| Amount released to incoming resources | 1,243,896 | ||
| 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:
| Within one year Between one and five years 14. MOVEMENT IN FUNDS Unrestricted funds General fund Restricted funds The Core TOTAL FUNDS |
At 01.08.22 £ 1,457,584 1,468,870 2,926,454 |
2023 £ - - - Net movement in funds £ 124,495 (126,603) (2,108) |
2022 £ 8,439 - 8,439 At 31.07.23 £ 1,582,079 1,342,267 2,924,346 |
|---|---|---|---|
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S. W. Durham Training Limited
Notes to the Financial Statements - continued for the Year Ended 31 July 2023
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 £ 1,200,754 - 1,200,754 At 01.08.21 £ 1,439,958 1,595,473 3,035,431 s follows: Incoming resources £ 1,187,710 - 1,187,710 |
Resources expended £ (1,076,259) (126,603) (1,202,862) Net movement in funds £ 17,626 (126,603) (108,977) Resources expended £ (1,170,084) (126,603) (1,296,687) |
Movement in funds £ 124,495 (126,603) (2,108) At 31.07.22 £ 1,457,584 1,468,870 2,926,454 Movement in funds £ 17,626 (126,603) (108,977) |
|---|---|---|---|
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S. W. Durham Training Limited
Notes to the Financial Statements - continued for the Year Ended 31 July 2023
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 01.08.21 £ 1,439,658 1,595,473 3,035,131 |
Net movement in funds £ 142,121 (253,206) (111,085) |
At 31.07.23 £ 1,582,079 1,342,267 2,924,346 |
|---|---|---|---|
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 £ 2,388,464 - 2,388,464 |
Resources expended £ (2,246,343) (253,206) (2,499,549) |
Movement in funds £ 142,121 (253,206) (111,085) |
|---|---|---|---|
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.
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S. W. Durham Training Limited
Notes to the Financial Statements continued
for the Year Ended 31 July 2023
16. CAPITAL COMMITMENTS
There were no capital commitments at 31 July 2023 or 2022.
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.
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S. W. Durham Training Limited
Detailed Statement of Financial Activities for the Year Ended 31 July 2023
| 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 |
2023 £ - 1,168,726 32,028 1,200,754 1,200,754 448,733 38,354 52,339 139,946 23,277 702,649 13,373 1,560 957 2,778 8,186 23,706 135,972 190,000 103,256 479,788 14,400 6,020 20,420 1,202,862 (2,108) |
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) |
|---|---|---|
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This page does not form part of the statutory financial statements