Registered number: 02190605 Charity number: 519889 HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) CONTENTS Page Reference and Administrative Details of the Charitable company, Its Trustees and Advisers Trustees. Report Independent Auditors, Report on the Flnancial Statements Statement of Financial Activities 8-11 12 Balance Sheet 13-14 Statement of Cash Flows 15 Notes to the Financial Statements 16-28
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees M. Ranson, Survitec N. Mccracken (Chair), formerly B.P. M. Gibbons, Siemens Energy Industrial Turbomachinery Ltd A. Rhodes, Exolum Immingham Ltd V. Jackson, Kingston Recruitment Ltd l. Coates, Specialist Marine Consultants Ltd C. Jenkinson, Centrica Storage Ltd J. Doyle (appointed 18 October 2023) Company registered number 02190605 Charity registered number 519889 Registered office Malmo Road Sutton Fields Industrial Estate Hull East Yorkshire HU7 OYF Company secretary K. L. Shepherd Chief executlve officer K. L. Shepherd Independent auditors streets Audit LLP Halifax House George Street Hull HU13AJ Bankers Natwest Bank plc Hull City Centre 34 Kind Edward Street Hull HU13SS Solicitors Rollits LLP Citadel House 58 High Street Hull HU1 1QE Page 1
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report together with the audited financial statements of Ihe charitable company for the year 1 January 2023 to 31 December 2023. The Annual Report serves the purposes of both a Trustees, report and a directors, report under company law. The Trustees confirm that the Annual Report and financial statements of the charilable company comply with the Current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS1021. Since the Charitable charitable company qualifies as small under section 382 of the Companies Act 2006, the strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been omitted. Objectives and activities a. Policies and objectives The objects for which the Association is established are-.- {A) To promote and advance the theoretical and practical training and education of persons engaged in the Industries including but not limited to health and safety, emergency rescuelresponse, medical and first aid, fire-fighting, accidenuincident investigationlprevention and survival. (B) Subject to the foregoing objects. to extend such provisions or assistance to the training and education of members of the public and employeeslvolunleers of other voluntary or smalllmedium enterprises generally. HOTA has always followed the policy of using any surplus funds generated to fulfil its charitable objectives. HOTA continues to provide RQF Approved First Aid training courses. Qualsafe and IOSH approved Health & Safety training courses and a range of Electrical Courses approved by City & Guilds and JTL to an increasing number of land based local organisalions. Page 2
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION {A Company Limited by Guarantee) TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance a. Main achievements of the charitable company With financial support from Natwest, HOTA started the construction of the internal Working at Heights in early 2023. Approval was gained from GWO for Working at Heights and Advanced Rescue Training and respective refresher training in May 2023. GWO Enhanced First Aid approval was also gained in April 2023. The addition of these courses meant that HOTA is the only Training Provider in the area that can conduct all the basic GWO Courses on one site and in any weather conditions. Income started being generated in a21Q3 from the Working at Height courses with a total for 2023 of £39,097. Late 2022, saw the completion of the Confined Space Training Module. this allowed the company to offer the full range of Confined Space training including Low, Medium, High and Rescue. These courses generated £44,950 of sales in 2023. HOTA'S continuous presence in all industries including Offshore, Maritime, Renewables and Onshore had been paramount throughout 2023. The company has still been able to accommodate the demands of the various industries enabling skilled workers to carry on training to help support the UK'S Critical National Infrastructure. HOTA achieved a grade 5 food hygiene rating in 2023 from the local council. b. Key performance indicators Health & Safety Target 1 Risk Assessment reviews- 75Yo Within target month, 1000/0 Within 6 months of Target. All Risk Assessment reviews were completed within the timescales (target met). Target 2 Complete 3 Emergency Drills per quarter. During the year 12 Emergency Drills have been completed including MER Exercise Training Pool, MER Exercise Albert Dock, HUET Diver Training. Fire Evacuation and Fireground (target met). Staff Target 3 Minimum 20 hrs learnlng and development time per staff member per year. All staff have been enrolled in this process and are undertaking appropriate courses including Lifeguard training, Confined Space, Health and Safety, Manual Handling, Risk Assessment, Equipment Servicing. Working at Heights. CPD and First Aid etc {target met). Finan¢lal Target 4 Average debtors. days at 45 days or less. In 2023 the average debtors. days UP to the end of December was on average 46 (target not met by 1). Quality Target 5 Set up 40 new customerslaccounts per quarter. For 2023, a total of 105 new accounts were set up (target not met). Target 6 98./0 Customer Satisfaction measured by no more than 20/0 fomial customerlstakeholder complaints. In 2023, 980/0 Customer satisfaction was achieved with no fomial customerlstakeholder complaints (target met) Page 3
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance (continued) Key Perfomiance Indicators, Metrics and Key Activities 2023 In 2023, HOTA'S Key Performance Indicators were based around Health & Safety, Staff, Financial and Quality. Along with the Key Performance Indicators the Chief Executive and Trustees normally set a number of spe¢ifi¢ metrics and key activities for enhan¢ed improvements across a range of areas. The main focus for these in 2023 was the installation of the Working at Height Tower in order to increase HOTA'S course portfolio for GWO Courses. The Association successfully maintained its ISO9001-.2015 accreditation and is looking to gaining approval for IS045001 Health & Safety and IS014001 Environment in late 2024 early 2025. 8 external audits were conducted by the relevant governing bodies including MCA, Compex Certification, City & Guilds and Qvalsafe in 2023 and all were satisfactory. c. Review of activlties Financial Revlew Before depreciation, the charity made a deficit of £83,878 (2022: deficit £46,021) this is mainly due to high utilities costs and increase in repairs and maintenance costs. After depreciation, the charity reported a deficit for the year of £151,191 {2022'. deficit £100.837). At the balance sheet date, the Association had net assets of £227,628 (2022: £378,819) including £134,107 of net current assets (2022= £97,159). Revenue 202312024 In 2023, the company only saw an increase of 0.820/0 on income compared to 2022. The company is currently seeing a high demand for courses in all areas of HOTA'S training streams. A forecast has been undertaken for 2024 and currently shows the company will report a surplus of £80k for the year ended 31sI December 2024 before depreciation. Public Benefit Confimiatlon The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 with regard to public benefit guidance published by the Commission. Throughout 2023 HOTA offered discountedlfree courses to local companies and delegates as follows.. Delegates attending both the BOSIET and MIST course are given a discount on the course fees. These discounts amount to over £17,000 in 2023. 9 students attended the 'A Day Personal SuNival Techniques from Leeds University at a reduced for a fee of £50 per head saving the university £450. Page 4
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance (continued} 1 delegate from Comtec attended the GWO Manual Handling and GWO Fire Aware Courses free of charge saving them a total of £209. 1 delegate attended the Safety Representatives free of charge saving a total of £850. 7 members from Beverley Barracudas attended the Emergency First Aid Course for a per head fee of £16 this saved the club over £343. 7 Teaching Assistants from Molescroft Primary School attended the 1 Day Paediatrics Emergency First Aid course at a reduced fee of £100 per head with a total savings of £350. 12 delegates from GEV attended the Defib Course at a reduced fee of £430 saving the company £315. 4 delegates from Merseyside Fire Brigade attended the capsize Course at a reduced fee of £150 per person saving the company £400. 10 volunteers from Hornsea Onshore Rescue attended the capsize course at a reduced fee of £25 per person saving the Charity £1,250. Financial review a. Going concern Whilst sales in 2023 were good, the company incurred a deficit. this was mainly due to the high utility Costs and repairs and maintenance Costs. However, due to heaY investment for the future, the company should now start to see an increase in both demand and income from the offshore wind energy sector. Careful cashflow management should also see the company being able to replenish and increase the reserves to ensure it will continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going oncern basis of accounting in preparing the financial statements. b. Reserves policy HOTA has set a tsrget for cash reserves of £300k which will sustain HOTA for a period of up to 3 months without trading. The figure would cover salaries, lease payments, rent and redundancies. As at the Balance Sheet date. the charity was holding £110k {2022- £110k) in a separate deposit account against this target amount. 2025 should be very busy for the company with current seafarers undertaking Iheir 5 yearly STCW10 Update courses, generating an increase within the Maritime income stream. Together with the enhanced presence of the company within the Renewable Industry from the investment of the Working at Height Tower and Enhanced First Aid Training should see the sales increased helping to replenish the reserve account. Page 5
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION {A Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 structure, governance and management Constitution Humberside Offshore Training Association is registered as a charitable company limtted by guarantee and was set up by a Trust deed. b. Methods of appointment or election of Trustees The management of the charitable company is the responsibility of the Trustees who are elected and co-opted under the terms of Ihe Trust deed. Plans for future periods HOTA has never stopped expanding and diversifying since its inception in 1989 and continues to investigate the feasibility of new training areas and further expansion. Further development is expected to take place late 202412025 with a complete redevelopment of the one of the company's existing firegrounds. This will enable HOTA to extend their Firefighting Provision and include additional courses such as Helicopter Firefighting, Team Member and Team Leader Firefighting. Statement of Trust8es' responsibilitles The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Tnjstees, Report 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a Irue and fair view of the state of affairs of the charitab5e company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to-. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP {FRS 102}', make judgments and accountin9 estimates that are reasonable and prudent.. state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements.. 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 adequate accounting records that are Sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable Company and enable them to ensure that the financial statements comply with the Companies Acl 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. Page 6
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION IA Company Limited by Guarantee) TRUSTEES, REPORT (CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2023 Disclosure of Information to auditors Each of the persons who are Trustees at the time when this Trustees, Report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charrtable companvs auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Truslee in order to be aware of any relevant audit information and to establish that the charty's auditors are aware of that infonnation. Approved by order of the members of the board of Trustees and signed on their behalf by.. N. Mccra¢ en (Chair of Trustees} Date". Jk¥tK £oofovNI) QDI Page 7
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF HUMBERSIDE OFFSHORE TRAINING ASSOCIATION Opinion We have audited the financial statements of Humbèrside Offshore Training Association Ilhe 'charitable company'} for the year ended 31 December 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 Slandards. 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 December 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice-, and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) {ISAs {UK)} and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitsble 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 perfomied. we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charitable companls ability to continue as a going concern for a period of at least twelve months from when the financial statements are authori5ed for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 8
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (CONTINUED) Other infom7ation The other information comprises the information included in the Annual Report other than the financial statements and our Auditors, 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 Companles Act 2006 In our opinion. based on the work undertaken in the course of the audit.. the information given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent with the financial slatements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exceptlon In the light of our knOedge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misststements in the Trustees, 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., or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Page 9
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF HUMBERSIDE OFFSHORE TRAINING ASSOCIATION {CONTINUED) R8sponsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statemenls that are free from material misstalement, whether due to fraud or error. In preparing the financial ststements, the Trustees a responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related lo 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. Auditors, responslbillties for the audit of the flnanclal $tstem8nts 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 Auditors, 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= the engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the charitable company through discussions with directors and other management, and from our commercial knowledge and experience of the charity and sector in which it operates., we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or Ihe operations of the charitable company, including the Companies Act 2006. latest Charities SORP, taxation legislation. data protection, anti-bribery, employment, environmental and health and safety legislation., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charitable companys financial statements to material misstatement, including obtaining an understanding of how fraud might occur. by.. making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud- and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. Page 10
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (CONTINUED To address the risk of fraud through management bias and override of controls, we- performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias- investigated the rationale behind significant or unusual transactions,. and reviewed Trustee meeting minutes for evidence of appropriate de¢ision-making and management controls. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, bul were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with governance., enquiring of management as to actual and potential litigation and claims., and reviewing correspondence with HMRC, relevant regulators and the chaitable company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely rt is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required lo identrfy non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Coun¢il's website at.. ww.frc.or .uklauditorsres onsibilities. This description forms part of our Auditors, Report. 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 stale to the charitable company's members those matter5 we are required to state to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Robert Anderson FCA (Senior Statutory Auditor) for and on behalf of Streets Audit LLP Halifax House George Street Hull HU13AJ Date.. 25 September 2024 Page11
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Charitable activities Other income 15,431 2,110,834 2,098 15,431 2,110,834 2,098 t6,045 2, 094,382 556 Total income 2,128.363 2,128,363 2, 110,983 Expendlture on: Charitable activities 2,279,564 2,279,554 2,211,820 Total expenditure 2,279,554 2,279,554 2,211,820 Net movement in funds {151,1911 {151,191) (100,837) Reconciliation of funds: Total funds brought forward Net movement in funds 378,819 1151,191} 378,819 1151,191) 479, 656 (100,837) Total funds carried forward 227,628 227,628 378,819 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 16 to 28 form part of these financial statements. Page 12
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) REGISTERED NUMBER." 02190605 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Fixed assets Tangible assets 365,768 281,660 365,768 281,660 Current assets Debtors Cash at bank and in hand 12 343,142 157,028 364,495 128,987 500,170 493,482 Creditors- amounts falling due within one year 13 (366,063) (396,323) Net current assets 134,107 97, 159 Total assets less current liabiltties 499,875 378,819 Creditors: amounts falling due after more than one year 14 (272,247) Net assets excluding pension asset 227,628 378,819 Total net assets 227,628 378,819 Page 13
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) REGISTERED NUMBER: 02190605 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023 2023 2022 Note Charity funds Unrestricted funds 227,628 378,819 Total funds 227,628 378,819 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to enlities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. N. Mccrac (Chair of Trustees) Date.. 202 The notes on pages 16 to 28 form part of these financial statements. Page 14
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operating activltles Net cash used in operating activities {104,057) (144, 840) Cash flows from investing activities Purchase of tangible fixed assets Bank interest received {151,425) 2,098 (7, 764J 556 Net cash used in investing activitles {149,327) {7,2081 Cash flows from financlng activities Cash inflows from new borrowing Repayments of borrowing 285,000 (3,575) Net cash provided by financing activities 281,425 Change In cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 28,041 (152,048) 281, 035 128,987 Cash and cash equivalents at the end of the year 157,028 128,987 The notes on pages 16 to 28 form part of these financial statements Page 15
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General infomiation Humberside Offshore Training Association is a company limited by guarantee incorporated in England, number 02190605. The registered office is Malmo Road, Sutton Fields Industrial Estate, Hull, HU7 OYF. Accounting policies 2.1 Basls of preparation of financial statements The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 and the Companies Act 2006. Humberside Offshore Training Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The Charity's financial statements are presented in Sterling and all values are rounded to the nearest pound. 2.2 Going concern Whilst sales in 2023 were good. the company incurred a deficit, this was mainly due to the high utility costs and the energy crisis. However, due to heavy investment for the future. the company should see an increase in both demand and income from the offshore wind energy sector. Careful cashflow management should see the company being able to replenish and increase the reserves to ensure it will continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going ¢on¢ern basis of accounting in preparing the financial statements. 2.3 Income Ail income 15 recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income from Charitable Activities represents the amount receivable by the charity, exclusive of VAT, for the provision of training to outside delegates. Income is recognised based upon the date the training takes place. Grants awarded to the Charity are credited as income as soon as any conditions attached to their receipt have been fulfilled. To the extent that there remain on-going conditions after receipt, the grant is treated as restricted income. accounted for separately and relevant expenditure similarly extracted. Donated assets are valued at their estimated market value at the time of receipt plus any associated relocation costs. Page 16
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support Costs involved in undertaking each activity. Employees are categorised as either directly involved in training or administration and related costs apportioned accordingly, sub-divided between training activities where appropriate. Staff time spent delivering projects which are subject to restricted funding is recharged from unrestricted funds at agreed hourly rates. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Support costs are apportioned according to the amount of direct cost associated with each class of activity. Governance costs reflect the strategic and compliance costs of the charity and are appportioned in the ratio of direct costs. Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Taxation As the company has charitable status there is no liability to taxation, apart from that arising through its VAT registration. 2.6 Tangible flxed assets and depreciatlon Tangible fixed assets are initially recognised at cost. After recognition. under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful live5, using the straight-line method. Depreciation is provided on the following bases.. Freehold Buildings 4 % p.a. on cost Leasehold Property over the period of the lease Motor Vehicles 25 % p.a. on cost Fixtures, Fittings and Equipment- 10_50 % p.a. on cost Page 17
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting policies (continued) 2.7 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.8 Cash at bank and in hand Cash at bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.9 Liabilities and provislons Liabilities are recognised when there is an obligation at the Balance Sheet date as a resum of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.10 Finan¢lal instruments The association only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recorded at transaction value and subsequently measured at their settlement value. 2.11 Finance leases and hlre purchase Leasing agreenents which transfer to the company substantially all the benefits and risks of ownership of an asset are included in fixed assets and the capital element of the leasing commitment is shown as hire purchase obligations. The lease rentals are treated as consisting of capital and interest elements. The capital element is applied to the reducing capital element OLrtstanding. Costs in respect of operating leases are charged on a straight line basis over the period of the lease. 2.12 Pensions The charitable company operates a defined contribution pension scheme. Contributions are charged to the income and expenditure account as they become payable in accordance with the rules of the schemes. The company provides no other post-retirement benefits to its employees. 2.13 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes. Page 18
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Crltlcal accounting estimates and areas of Judgment Estimates and judgments 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 will, by definition, seldom equal the related actual results. The 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 judgment-. The useful economic lives of tangible fixed assets is the only key area of estimation uncertainty. Income from donations and legacles Unrestricted funds 2023 Total funds 2023 Total funds 2022 Grants receivable Other income 4, 692 11,353 15.431 15,431 Total 2023 15,431 15,431 16,045 Total 2022 16,045 16,045 Page 19
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION IA Company Limited by Guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from charitable activltles Unrestricted funds 2023 Total funds 2023 Total fijnds 2022 Offshore and Standby Vessel Training (OPITO approved) STCW (Maritime) COMPEX and Electrical Emergency Response ManageMentechnical and Specialist First Aid & Medical Courses Other Survival and Firefighting Miscellaneous Renewables Confined Space Courses Consultancy UK & Overseas 692,517 290,820 255,963 354,470 49,887 51,905 58,503 28,072 283,747 44,950 692.517 290,820 255,963 354,470 49,887 51,905 58,S03 28.072 283,747 44,950 628, 708 313, 120 364,217 415,491 39,209 45,353 50,850 32, 151 177,435 21,680 6, 168 Total 2023 2,110,834 2,110,834 2, 094, 382 Total 2022 2, 094,382 2, 094, 382 Other incomlng resources Unrestricted funds 2023 Total funds 2023 Total funds 2022 Bank interest receivable 2,098 2,098 556 Total 2022 556 556 Page 20
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Analysis of expenditure by activities Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Total funds 2022 Offshore and Standby Vessel Training (OPITO approved) STCW (Maritime) COMPEX and Electrical Emergency Response ManageMenteChnICal and Specialist First Aid & Medical Courses Other SuNival and Firefighting Miscellaneous Renewables Confined Space 656,970 275,874 242,824 336,275 47.326 49.241 55.499 26,650 269,183 42,643 90,901 38,171 33,598 46,528 6,547 6,813 7,679 3.687 37.245 5,900 747,871 314,045 276,422 382,803 53,873 56,054 63,178 30,337 306.428 48,543 663,965 330, 678 384, 640 438, 788 41,406 47,896 53,701 40,467 187,384 22, 895 Total 2023 2,002,485 277,069 2,279,554 2,211,820 Total 2022 1,940, 440 271,380 2,211,820 Governance costs 2023 2022 Auditors remuneration Consultancy and professional fees Legal charges 5,600 3,349 8,173 5. 600 1, 708 4, 599 17,122 11,907 Page 21
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Staff costs 2023 2022 Wages and salaries Social security costs Contribution to defined contribution pension schemes 995,150 89,579 40,051 954,008 87,229 39,817 1,124,780 1,081,054 The average number of persons employed by the charitable company during the year was as follows.. 2023 No. 2022 Sutvival Training Staff Office 33 30 41 38 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 2023 2022 No. In the band £60,001- £70,000 The key management personnel of the charity are considered to be the Trustees. the Chief Executive, Company Accountant, Facilities Manager, Operations Manager and Business Operations and HR Manager. whose employee benefits totalled £228.224 (2022.. £221,378). 10. Trustees, remuneration and expenses During the year, no Trustees received any remuneration or other benefits (2022 - £NIL). During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL). Page 22
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION {A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. Tangible fixed assets Freehold Land and Buildings Fixtures, Motor Fittings and Vehicles Equipment Leasehold Property Total Cost or valuation At 1 January 2023 Additions Disposals 1,433.451 948,919 8,697 1,509,818 151,425 (1,291) 3,900,885 151,425 11,291) At 31 December 2023 1,433,451 948,919 8,697 1,659,952 4,051,019 Depreclatlon At 1 January 2023 Charge for the year On disposals 1,218.578 22,028 941,995 1,029 8,695 1,449,957 44,256 (1,287) 3,619,225 67,313 (1,287) At 31 December 2023 1,240.606 943,024 8,695 1,492,926 3,685,251 Net book value At 31 December 2023 192,845 5,895 167,026 365.768 At 31 December 2022 214,873 6,924 59,861 281.660 12. Debtors 2023 2022 Due within one year Trade debtors Prepayments and accrued income 254,036 89.106 284,910 79, 585 343,142 364, 495 Page 23
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 13. Creditors: Amounts falling due within one year 2023 2022 Bank loans Trade ¢dItorS other taxation and social security Accruals and deferred income 9,178 196,298 100.278 60,309 214,946 102, 737 78, 640 366,063 396,323 Deferred income relates to funding received in advance of performance. 14. Credltors: Amounts falling due after more than one year 2023 2022 Bank loans 272,247 Page 24
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. Statement of funds Statement of funds - current year Balance at 31 December 2023 Balance at 1 January 2023 Income Expenditure Unrestricted funds General Funds 378,819 2,128,363 (2,279,554) 227,628 Statement of funds - prior year Balance al 31 December 2022 Balance a 1 January 2022 Inc(Y77e Expenditu Unrestricted funds General Funds 479, 656 2,110,983 (2,211,820) 378,819 Page 25
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Summary of funds Summary of funds - current year Balance at 31 December 2023 Balance at 1 January 2023 Income Expenditure General funds 378,819 2,128.363 (2,279,554) 227,628 Summary of funds- prior year Balance at 31 December 2022 Balance at 1 January 2022 Income Expenditure General funds 479, 656 2, 110,983 (2,211,820) 378.819 17. Analysls of net assets between funds Analysis of net assets between funds - current year Unrestricted funds 2023 Total funds 2023 Tangible fixed assels Current assets Creditors due within one year 365,768 365.768 500.170 500,170 (638.310) (638,310) Total 227,628 227,628 Page 26
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. Analysis of net assets between funds {continued) Analysis of net assets between funds - prior year Unrostricted funds 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within one year 281,660 493, 482 (396,323) 281, 660 493,482 (396,323) Total 378,819 378,819 18. Reconciliation of net movement in funds to net cash flow from operating actlvitles 2023 2022 Net expenditure for the year (as per Statement of Financial Activities} 1151,191) (100, 837) Adjustments for: Depreciation charges Loss on the sale of fixed assets Decrease in debtors Decrease in creditors Investment income 67,313 54,817 21,353 139.438) {2,098} 2,840 (101, 104) (556) Net cash used in operating activities (104,057} (144.840) 19. Analysis of cash and cash equivalents 2023 2022 Cash in hand 157,028 128,987 Total cash and cash equivalents 157,028 128,987 Page 27
HUMBERSIDE OFFSHORE TRAINING ASSOCIATION (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 20. Analysis of changes in net debt At1 January 2023 Cash flows At31 December 2023 Cash at bank and in hand Debt due within 1 year Debt due after 1 year 128,987 28,041 157,028 (9,178) (9,178) (272,247) (272,247) 128,987 (253,384) (124,397) 21. Penslon contributions The company operates defined contribution pension schemes. The assets of the schemes are held seperately from those of the charitable company in an independantly administered fund. The pension cost charge represents contributions paid by the charitable company to the funds and amounted to £40.051 {2022.. £39,817). 22. Operatlng lease commitments At 31 December 2023 the charitable company had commitrnents to make future minimum lease payments under non-cancellable operating leases as follows-. 2023 2022 Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years 167,673 654,108 10,306 34, 250 168, 395 832,087 202, 645 Leases are negotiated over various terms to suit the requirements at that time. Break clauses are included wherever appropriate and the above liabilities have been calculated from the balance sheet date to either the end of the lease or the next break clause, whichever is the earlier. 23. Related party transactions As detailed in the Director's Report, some Board Members are nominees of user companies for whom the charitable company provides training courses. Their respective interest5 in these organisations are not considered to be so material as to necessitate the seperate disclosure of the level of trade with each one. Page 28