Charity Registration No. 526144 Company Registration No. 00897078 IEngland and Wales) Chartered Accountants E8iat>lishe¢ Nineteen Iwenly Six ROCHDALE TRAINING ASSOCIATION LIMITED (COMPANY LIMITED BY GUARANTEE) COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION Tru$ts9S N A Bradley R Beelham M McGrath A Wilding L Nalale H Ellison Secretary JANagy Charity number 526144 Company number 00897078 IEngland and Wales) Principal address Fishwick Street Rochdale Lancashire OL16 SNA Registered office Fishwick Street Rochdale Lancashire OL16 SNA Auditor Ashworth Moulds 11 Nicholas Street Burnley Lsncashire BB11 2AL Bankers The Co-operative Bank plc 110 Yorkshire Street Rochdale Lancashire OL16 1JY Solicitors Molesworths Bright Clegg Octagon House 25127 Yorkshire Street Rochdale Lancashire OL16 1RH ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE CONTENTS Page Trustees. report Independent auditorfs report 8-11 Stslemenl of financial activities 12 Balance sheet 13 Stslemenl of cash flows 14 Notes to the financial statements 15-30 The following pages do not fomi part of the SlalutoryAccounts".- Detsiled income and expenditure account Appendix ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT FOR THE YEAR ENDED 31 JULY2024 The trustees present their annual report and financial statements for the year ended 31 July 2024. The financial slalemènts have been prepared In accordance with the accounting policies set out in note 1 to the financial slalements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and Accounting and Reporting by Charities." Slalement of Recommended Practice applicable lo charities preparing their accounts in a￿ordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191" ObJectlves and actlvltles The Company is a charity and exists to maintain a training centre and lo provide and support courses of study and training for students, with a view lo securing appointments or promotion and obtaining other professional qualifications. To achieve this, the charitable company operates a variety of training projects. Our mission is.. To benefit the public by maintaining a training centre and lo provide and support courses and training for learners, with a view lo them securing appointments or promotion and obtaining vocational qualifications. 11 is also to deliver a high-qualily curriculum lo all our learners by offering them learning that is inclusive, innovative and inspiring, which allows them lo develop their skills and confidence now and for their future. We work with our employers and communities to ensure our offer brings economic and social value to Rochdale and beyond. For the period of the plan, which covers the period to 31st July, 2024, our strategic objectives were.. To increase apprenticeships from 246 10 300. To source other funding streams e.g. GMCA- Skills Boolcamp, Acorn. To maintain commercial training and income directly from employers by offering a more holistic service, in order to reduce dependency on government funding. To maximise participation, retention. success and timeliness and progression rates and increase the number of distinctions. To raise the standards of the key leamer experiences and further improve leaching and leaming i.e. 95D/o of staff observations meeting the required standard. To achieve Outstsnding Ofsted inspection grades. To improve our service and reputation wthin industry. To broaden our market base. To continue lo build on the public services market and our relationship with the Local Aulhorily. To maintain long term financial viability and aim for an In￿Me of £2.8m and a £62k surplus. To raise the standing of Technical Education and Skills. To grow Study Programmes and pre-employed lespecially English and malhsl. To continue lo promote apprenticeships and other learning opportunities to under-represented groups. To improve our building and resources for learners and staff, including classroom and office space, ILT and wet based learning resources. To deliver more Apprenticeships Standard subjects. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED FOR THE YEAR ENDED 31 JULY2024 Our apprenticeship starts are 277 for 2023124, below tsrgel by 23, and we will work to achieve 300 in 2024125. In 2023124 we began to deliver study programmes for NEET young people achieving £82k, +£22k on budget. Our tenders to source other funding streams have gone well i.e. Acorn achieved £39k, Skills Bootcamp £360k. In 2023124 we Won a direct contract from GMCA for devolved AEB Level 2 and 3, so has increased our fIn￿CIal performance this year taking £527k (last years subcontracted AEB contract from Remploy achieved £213kl. The commercial courses have increased this year to £242k +£72k on budget and +£24k on last year. In addition, we plan to build on our active involvement in partnerships e.g. The Rochdale Network, GMLPN and our strong links with the local aulhorily. We will also strive to increase participation, success rates, progressions and the number of distinctions and further increase the quality of our provision, in order to achieve outstanding OFSTED grades. The beneficial area of charitsble expenditure is the United Kingdom, with preference for the Rochdale area. The ttuslees have reviewed the outcomes and achievements of the activities for the year lo ensure that they remain focused on the charitable aims and continue to deliver benefits lo the public. We have complied with the duty under the Charities Act to have due regard to the public benefit guidance published by the commission. The trustees have paid due regard lo guidance issued by the Charity Commission in deciding what activities the charity should undertake. Achievements and perfomiance This has been a good year for RTA financially as the AEB and Skills Boolcamp conlra¢ts did well, *hieving growth. In April 2022, we were inspected by Ofsled and achieved a Good for overall effectiveness, Quality of Education, Behaviour & Attitudes, Personal Development, Leadership & Management, Education for Young People and Apprenticeship5 and we continue lo work towards achieving an oulstsnding grade al the next Of5ted Inspection. There are many changes afoot in Otsled, currently a new education inspection framework will be published in September 2025. Our success rate on apprenticeships was 71% 4°/0 up on last year and compared with the national average of 54°A and on the adult workplace learning programmes it was 90%, an increase on last year and + 3°A on national average. The Apprenticeship Standard5 are going well, wlh a 990A EPA pass rate in 2023124 and 330k of Apprentices achieving a dislinclion1+2OA on last yearl and 130/0 a meiil1+1 on18st yearl. We have developed a large tutor Offi￿ in an unused area lo enable us to increase dassroom spaces and in 2024125 will continue to update our building and IT equipment. We will continue lo endeavour to grow the range of commeraal services offered to companies and increase our membership, with our reviewed membership package. The investments have perfomied according to our expectations. The investment policy and objective is lo minimise the risk of holding all monies in one financial institution and they are reviewed annually. Vve ensure to the best of our knowledge that investments are placed in ethical organisations e.g. the C¢>Operalive Bank. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED FOR THE YEAR ENDED 31 JULY2024 Flnanclal revlew The net incoming resources for the year amounted to £174,46512023 £19,791) and details are shown in the statement Df financial activities on page 12. Direct charitable expendf(ure accounted for 63Q/o 12023 _ 64D/ol of total expendrture. ReseNes policy The Council of Management has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets I'lhe free reserves'l held by the charity should be approximately 3-6 months of the resources expended, which equates to £732,999 - £1,465,998 In gèneral funds. Al present the free reserves, which nel of designated and reslricled funds amount lo £1,904,991, Can continue lo support this policy for the immediate future. Some of the 'free reserves, will be used lo improve the premises and equipment. Also rising energy costs and other economic pressures mean it is important that we continue to hold the 'free resetves, lo mitigate against the risk of this uncertain landscape. Prlnclple fundlng sources The principle ftjnding sources for the charitsble company are. Levy-paying employers Non-levy paying employers via AS system -AdU￿ Education Budget Skills 8001 camp Other sundry sources of income include.. study Programmes -Acorn Training Princes Trust Rental income for room hire Corporate training sessions Investment income. Principle risk and uncertainties The Council of Management has conducted rts own review of the major risks lo which the charity is exposed and are attempting lo develop systems to mitigate those risks. They are aware that significant external risks to funding require a strategic plan which will allow for the diversification of funding and aclivilies. The main risk in 2024125 is not increasing Apprenticeship stsrts. We intend lo deliver more adult courses e.g. AEB employed and unemployed programmes and Skills Bootcamp lo make up for any shortfall in Apprenticeships. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED FOR THE YEAR ENDED 31 JULY2024 Another risk is not achieving the required grades I standards sel by Otsled. We had an inspection in April 2022 and maintained out Grade 2 good - provision for overall effectiveness and for all the other judgements. The Education Inspection Framework is changing in September 2025. We have a Quality Team and Quality Improvement Plan in place to ensure we continLJously improve our provision in line with Ofsted's requirement. Another risk is having funds clawed back due to an unsu￿Ssful ESFAAudil. We were audited in July 2017 and the error rale was 0.66°h. Funds are clawed back if the error rale is over 50/0., therefore, our outcome was very good. We had a very small audit In July 2021 of Traineeships & AEB programmes and were deemed 5atisfaclory. There is a Quality complian￿ Manager and an Audit Schedule in place lo maintain these 5tandard5 and mitigate against any risk. We have also taken on another audit due to the increase in different programmes. As we have won new contracts e.g. the AEB Level 2. another risk is not having a successful audit, as we have not experienced a GMCA audit before. However, the contract manager and compliance manager, and ne￿Y appointed auditor are well versed in the AEB funding rules has been added to our audit schedule to lessen the risk. Internal risks are minimised by the implementation of procedures for aulhorisation of all transath.ons and projects and lo ensure consislenl quality of delivery for all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the charity. Financial risk management objectives and policies The charitable company finances ils operations through retained funds. The management's objectives are to relain sufficient liquid funds lo enable the company to meet ils day lo day obligations as they fall due. The charitable company makes little use of financial instruments other than an operational sterlirg bank account and longer term sterling deposits and bonds, so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and net incomingloutgoing resources. Plans for future periods The charitable company plans to continue ils training activities for the foreseeable future, subject lo satisfactory funding arrangements. The plans descrikd in Objectives and Activities above, continue to apply for the followng 3 years. We shall continue lo develop our "one-stop shop" approach and continue broadening our market base. Although apprenticeship starts have not yel relumed to pre-pandemic levels, groth is still a dear long term aim and lo that end we shall maintain focus on both company needs and local and national government priorities. Structure. governance and management The charitable company was incorporated on 31st January, 1967 and is governed by ils Memorandum and Articles of Association, which established ils objects and powers. Trustees The directors of the charitable company are ils trustees for the purpose of Charity Law and throughout the report are collectively referred lo as the trustees. The Iruslees of the charitable company who served during the year and up lo the date of signature of the financial statements were.. N A Bradley R Beelham M McGralh A Imlding P Simkiss L Nalale H Ellison (Resigned 29 September 20231 ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED FOR THE YEAR ENDED 31 JULY2024 Appolntment of Trustees Trustees, drawn from member companies of our wider networks Isee belowl, are elected al the Annual General Meeting IAGMI lo form a management Committee of between 5 and 11. A third of the Iruslees retire each year and are eligible for re-election. All members are circulated with invitations to nominate trustees prior to the AGM, advising them of the retiring trustees and requesting nominations for the AGM. The truslees have the power to co-opt members lo the committee when appropriate patkn'cularly Mth regard lo the need for any speciaist skills. The management committee elects the Chairman. None of the trustees has any beneficial interest in the charitsble company. All of the Iruslees are members of the charitable company and guarantee lo contribute £1 in the event of a winding up. Trustees meetings and staff meetings Ibolh formal and informall provide a satisfactory forum lo ensure that all ttuslees are familiar wlh the charitable company's poliaes and procedu￿$. All trustees are provided with the Charity Commission's 'Responsibilily of Trustees Market value of land and buildings The trustees consider that the market value of land and buildings is in excess of their book value, but no professional valuation has been undertaken lo quantify this. Oryanlsatlon The Council of Management, the Iruslees detailed above, meet quarterly and at any other times lo consider special issues or to enable future planning lo be sakn'sfactorily carried out. The Chief Executive, Jill Nagy, is appointed by the trustees lo manage the day lo day operations of the charity. To fa¢ilitsle effective operations, the Chief Executive has delegated aulhorily, within terms of delegation approved by the Iruslees, for operational matters including finance, employment and perfomiance related aclivily. Pay Poll¢y for Senlor Stsff This is reviewed annually in November, after accounts are finalised and be paid from November. There are four elements to the prO￿ss. 1. Cost of Living Increases in line with cost of living wll be discussed and reviewed al the Board meeting in September and will be confimed in November, followng the accounts being finalised. They wll be granted if they arè sustainable for the business i.e. if the financial performance of the Association during the immediately preceding 24 month period justifies the increase. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED FOR THE YEAR ENDED 31 JULY2024 2. MerTrt Payment based on Perfomiance This wll be assessed on performance against objectives agreed al appraisal al the start of the year. Judgement against each objective will be based on the descriptors of.. Unsatisfactory- not achieved, no progress Salisfaclory met largels Good exceeded targets by 10% Outstanding exceeded largels by 200A There is a fifth judgement of changed circumstances which would make the objective inappropriate. Senior staff will carry out a self-assessment and the Chief Executive shall also assess their performance. This wll create the basis for discussion. The appraisal shall look al the balance of performance against the individual objectives, weighted in favour of the key objective, to arrive at an initial overall judgement. This should be balanced against initiative, team contribution, commitment, professionalism, developing Rochdale Training in order to arrive at final grading. Unsatisfactory or salisfaclory perf0rrnan￿- no increase Good performance up lo 30A increase Outstanding perfomiance up lo 80/0 increase 3. Bonus Payment One-off bonus payments for one-off specific successes in moving RTA forward. This is payable at the Chief Executive's discretion up to £1,000. 4. Mid-year Adjustments Structural job changes or Increases based on defensive commercial decision shall be at the discrets.on of the Chief Executive. 6. Company Wlde Bonus Following an extremely SUC￿$sful year the Board may decide to award an across the board team bonus. This is at their discretion. If a member of staff is under Disciplinary or Performance Management procedure they are not entitled to the Company wide bonus. Wider Networks Rochdale Training Association Limited IRTAI are members of Greater Manchester Chamber of Commerce, The Associatlon of Learning Providers and Greater Manchester Learning Provider Network. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUED FOR THE YEAR ENDED 31 JULY2024 ststement of trustees. responslbllltles The trustees, who are also the directors of Rochdale Training Association Limited for the purpose of company law, are responsible for preparing the Trustees. Report and the financial statements in accordan￿ with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Practi￿1. Company Law requires the trustees lo prepare financial slalements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure. of the charV(able company for that year. In preparing these financial ststements, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and eslimales that are reasonable and prudent., and prepare the financial slalements on the going concern basis unless il is inappropriate lo presunE that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any lime the financial position of the charitable company and enable them lo ensure that the financial staleTNenls comply with the Companies Act 2006. They are also responsible foi safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor In accordance ¥Mth the charitable company's articles, a resolution proposing that Ashworth Moulds be reappointed as auditor of the charitable company will be pul al a General Meeting. Small company provlslons This report was been prepared in accordan￿ with the special provisions for small companies under Part 15 of the Companies Act 2006. Disclosure of infomiation to auditor Each of the trustèes has confirmed that there is no information of which they are aware which is relevant to the audit, bul of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and lo establish that the auditor is aware of such information. The trustees. report was approved by the Board of Trustees. A Wlldlng Trustee Dated.. 26 November 2024 ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ROCHDALE TRAINING ASSOCIATION LIMITED Oplnlon We have audited the financial statements of Rochdale Training Association Limited Ithe "charitsble company") for the year ended 31 July 2024 which comprise the statement of finanaal activities including income and expenditure account, the balan￿ sheet, the statement of cash flows and the notes lo the financial stalemenls, induding summary of significant accounting policies. The finanual reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Stsndard 102 The Financial Reporting Sland&rd spplicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial slatemenls". give a true and fair view of the state of the charitable company's affairs as at 31 July 2024 and of ils incoming resources and application of resources, for the year then ended.. have been properly prepared in accordance with United Kingdom Generally AC￿pIed Aecounling Praclit*,' and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted Dur audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described In the Audilorts ￿SpOnsibl1rt1es for the audit of the financial slalements section of our report. We are independent of the charitable company in accordan￿ wth the ethical requirements that are relevant lo our audit of the financial slalemenls in the UK, including the FRC'S Ethical Stsndard, and the provisions available for small entities, and we have fulfilled our other ethic41 responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficiert and appropriate lo 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 concem 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 lo events or conditions that, Individually or collectively, may cast significant doubl on the charity's ability lo continue as s going concern for a period of at least twelve months from when the financial slalements a￿ authorised for issue. Our responsibilities and the responsibilities of the trustees ¥Arith respect lo going concern are described in the relevant sections of this report. Other Infomiatlon The other information comprises the information induded in the annual report other than the fina￿131 statements and our auditorfs report Ihereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial slalements does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other infomiation and, in doing so, consider whether the other information is materially inconsislenl wth the financial slalements or our knowledge obtsined in the Course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslalemenls, 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 condude that there is a material missiatement of this other information, we are required to report that fact. We have nothing lo report In this regard. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROCHDALE TRAINING ASSOCIATION LIMITED Oplnlons on other matters prescrlbed by the Companles Act 2006 In OLJr opinion. based on the work undertaken in the course of our audit.. the information given In the Iruslees, report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial ststemenls are prepared is consislenl with the financial slalemenls", and the directors, report, included wthin the Iruslees, report, has been prepared in a￿OrdanCe with applicable legal requirements. Mattgrs on whlch we arg requlred to report by exceptlon In the light of the knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misslatemenls in the directors, report included wthin the ttuslees, report. We have nothing lo report in respect of the following matters in relation lo which the Companies Act 200S requires us to report lo you if, in our opinion. adequate accounting records have not been kept, or returns adequate for our audit have not been re￿iVed from branches not visited by us,. or the financial slalements are not in agreement with the accounting records and returns., or rtain disdosures of Iruslees, remuneration specified by law are not made., or we have not re￿iVed all the information and explanations we require for our audit., or the Iruslees were not entitled lo prepare the financial slalements in accordance with the small companies regime and lake advantsge of the small companies, exemptions in preparing the trustees, ￿port and from the requirement lo prepare a strategic report. Responslbllltles of trustees As explained more fully in the statement of trustees. responsibilities, the trustees, who are also the directors of the charitable company for the purpose 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 lo enable the preparation of financial statements that are free from material misslatemenl, whether due to fraud or etror. In preparing the financial stslements, the trustees are responsible for assessing the charitsble company's ability lo 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 altemative but to do so. Audltorf$ rgspon$lbllltlg$ for the audlt of the flnan¢lal Statements Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misslatemenl, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is 8 high level of assurance bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misslalement when it exists. Misslatemenls can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slatemenls. The e*(ent lo which our procedures are capable of detecting irregularities, including fraud, is detsiled below. ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROCHDALE TRAINING ASSOCIATION LIMITED Extent to whlch the audlt was consldered capable of detectlng Irregularltles, Includlng Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations, was as follows.. we identified the laws and regulations applicable lo the charitable Company through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector, we focused on specific laws and regulations which we Considered may have a direct material effect on the financial statements or the operations of the charitable company, including the Finanaal Reporting Standard IFRS 1021, the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006, the Charities Act 2011, taxatlon legislation, health and safety legislation and all legislation related to educational establishments and apprenti￿ship providers., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, and the engagement partner ensured that the engagement team collectively had the appropriate competen￿. capabilib'es and skills to identify or recognise non-complian￿ with applicable laws and regulations., We assessed the susceptibility of the charitable company's financial slalements lo material misstatement, including obtaining an understanding of how fraud might occur, by". • making enquiries of the trustees and management as to where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls In place lo miligale risks of fraud and non-compliance with laws and regulations Audit response to risks identified We addressed detecting material misslalement in respect of irregularities, including fraud and n0￿Compliance with laws and regulations, as follows.. Risks identified Audit response Risk of fraud through management bias and override of controls 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 were indicative of potential bias., assessed whether judgements and assumptions made in determining the allocation of funds lo the appropriate categories of Unrestricted, Designated and Restricted funds wère indicative of potential bias. reviewed the Controls relating to completeness of income including sample lesling of in¢ome transactions to detemiine appropriate allocation to the correct a￿OUntIng period, enliuement and calegorisation,. and * investigated the rationale behind significant or unusual transactions. 10- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ROCHDALE TRAINING ASSOCIATION LIMITED Rl$ks Identlflgd Audlt rospon$g Risk of iiregularilies and non-compliance with laws and regulations agreeing finanaal slalement disdosu￿s to undedying supporting documentation making enquiries of management whether there have been any incidents or identified non ¢ompliance with health and safety. educational and apprenti￿ShiP legislation. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely il is that we would become aware of noTrcompliance. Auditing standards also limit the audit procedures required lo identify non-compliance with laws and regulations lo 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 Council's website at https'.1h￿w.frC.org.UklaudilorsrespanSIb1Il1Ies. This description forms part of our auditor's report. Use of our report This report is made solely lo the charitable company's members, as a body, in accordan￿ wth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitatle company's members those matter5 we are required lo slate lo them In an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than thè ¢harilable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Mark Holmo$ BA FCA Isgnlor Slatulory Audltor) forand on behalf ofAshworth Moulds 26 November 2024 Chartered Accountants ststutory Audltor 11 Nicholas Street Bumley Lancashire BB11 2AL ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY2024 Unrestrlcted Restrlcted funds funds 2024 2024 Total Unrestrfcted Restrlcted funds funds 2023 2023 Total 2024 2023 Notes ncome from. Donations and legacies Charitable activities Investment income 3,665 3,038,356 33,371 30,163 33,828 3.038,356 33,371 4,033 2,444,S45 19,796 4,033 2,444,645 19,796 Total income 3,075,392 30,163 3,105,555 2,468,474 2,468,474 Ex enditure Charitable activities 2,891,395 40,602 2,931,997 2,428,608 20,018 2,448,626 Net gainslllossesl on investments 907 907 1571 1571 Net incomellexpenditurel for the year 184,904 {10,4391 174,465 39,809 120.018} 19,791 Gross transfers between funds 13,8091 3,809 Net movement in funds 184,904 {10,4391 174,465 36,000 116,209} 19,791 Reconciliation of funds: Fund balances al 1 August 2023 2,977,674 180,122 3,157,796 2,941,674 196.331 3,138,005 Fund balances at 31 July 2024 3,162,578 169,683 3,332,261 2,977,674 180.122 3,157,798 The notes on pages 15- 30 form an integral part of these financial statements. The ststemenl of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing aclivilies. The statement of financial aetivilies also complies with the reqU1￿mentS for an income and expenditure ac¢ounl under the Companies Act 2006. 12- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE BALANCE SHEET AS AT 31 JULY2024 2024 2023 Notss Flxgd assets Tangible assets Investments 10 11 1,418,769 2,687 1,037,317 1,780 1,421,456 1,039,097 Current assets Stocks Debtors Investments Cash at bank and in hand 13 14 3,500 545.130 619,483 1,129,019 3,500 451,064 603,0 1,212,139 2,297,132 2,269,739 Creditors: amounts falling due within one year 16 1386,3271 {151,0401 Net current assets 1,910,805 2,118,899 Totsl assets less current Ilabllltles 3,332,261 3,157,796 Income funds Restricted funds 18 169,683 180,122 nr Designated funds General unrestricted funds 20 19 2,687 3,159,891 1,780 2,975,894 3,162,578 2,977,674 3,332,261 3,157,796 These financial slalements have been prepared in accordan￿ with the provisions applicable to companies subject to the small companies regime. The notes on pages 15- 30 form an integral part of these financial statements. The financial statements were approved by the Trustees on 26 November 2024 R Beelham Trustee A Vlfilding Trustee Company Registration No. 00897078 13- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY2024 2024 2023 Notss Cash flows from opgratlng actlvltlgs Cash generated fromllabsorbed by) operations 27 395,177 113,3101 Investing activities Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Purchase on disposal of investments Investment income received 1495,2791 165,8771 58 116,4471 33,371 110,5441 19,796 Net cash used in investing activities 1478,2971 156,6251 Net cash used in financing activities Net decrease in cash and cash equivalents 183,1201 169,935} Cash and cash equivalents at beginning of year 1,212,139 1,282,074 Cash and cash 9qulvalents al end of year 1,129,019 1.212.139 14- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY2024 Accountlng pollcles Charity infomiation Rochdale Training Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Fishwick Street. Rochdale. Lancashire, OL16 SNA. 1.1 Accountlng conventlon The financial statements have been prepared in accordance wth the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charits"es.' Slalemenl of Recommended Practice applicable lo charities preparing their accounts In accordance with the Financral Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191" The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the fundional currency of the char(table company. Monetary amounts in these financial stslemenls are rounded to the nearest £. The financial $18temenls have been prepared under the historical cost convention. The principal accounting policies adopted are sel out below. 1.2 Going concern Al the lime of approving the financial slalements. the Iruslees have a reasonable expectation that the Charity has adequate reSoUr￿S to continue in operational existence for the foreseeable future. The charity has adequate cash reserves and available unrestricted funds. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial slatemenls. 1.3 Charitable funds Unreslri¢led funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Unrestricted funds indude designated ftjnds where the trustees, at their discretion, have created a fund for a specific purpose. Reslricled funds are subject lo specific conditions by donors as to how they may be used. The putpK)ses and uses of the restricted funds are sel out in the notes lo the financial slatemenls. 1.4 Incoming resources Income is recognised when the charf(able company is legally entitled to il after any performance conditions have been mel, the amounts can be measured reliably, and il is probable that income will be received. Donations and legacies income includes memb&rship fees and levies for training from member companies for the year. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless perforrnan￿ conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the lime of the donation. Income from charitable activities, which includes income received under contract where enlillement to grant funding is subje¢l to specific perfomiance conditions, is recognised as earned as the related support services are provided. Grant income inclLJded in this category provides funding to educational activities and is recognised where there is entitlement. probability ol re￿Ipt and amounts Can be measured with sufficient reliability. Income is deferred when perf0mlan￿ related grants are received in advance of the education programme to which they relate. Investment income is recognised on a receivable basis. 15- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 A¢¢ounllng poll¢lg$ Icontlnugdl 1.$ Resources expendad Expenditure is recognised on an accruals basis when a liability is incurred. Contractual arrangements and perfomiance related grants are recognised as goods or services are supplièd. Other grant payments are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arisès that resutts in the payment being unavoidable. costs of raising funds are those costs incurred in attracting voluntary income, and those incU￿ed in trading adivities that raise funds. charitable activities indude expenditure incurred when undertaking educational programmes and indude both the direct costs and support costs relating lo these activities. support costs include central functions and have been allocated to activity cost Categories on a basis consistent with the use of resources, e.g. staff costs by the time spent and other costs by their usage. 1.8 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured al cost or valuation, nel of depreciation and any Impaitment losses. Depreciation is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildin Freehold land and buildings Plumbing Centre Plant and machine Plant and machinery Fixtures and fittings Computers Motor vehicles Office equipment 40kn straight line basis 16 213Q￿ straight line basis 150h reducing balan￿ basis 7 112°/o reducing balance basis 33 1130/0 slraighl line basis 25OA reducing balan￿ basis 250A reducing balan￿ basls The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the stslemenl of financial activities. Al fixed asset additions are capitalised at cost. 1.7 Fixed a55et investments Investments held as fixed assets are revalued at mid-markel value al the value at the balance sheet dale and the gain or loss taken to the statement of financial activities. The net cumulative gain or loss is reflected in the designated fund. 1.8 Impairment of fixed assets Al each reporting end date. the ¢harilable company reviews the carrying amounts of f(s tangible assets lo determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists. the recoverable amount of the asset is estimated in order lo deterrnine the extent of the impaimient loss lif anyl. 16- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 A¢¢ounllng poll¢lg$ Icontlnugdl 1.9 Stocks Stocks are valued al the lower of cost and net realisable value after making due allowance for ab￿lete and slow moving items. Nel realisable value is the eslimaled selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 1.10 Cash and cash equivalents Cash al bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the dale of acquisition of opening of the deposit or similar account. 1.11 Financial instruments The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. A financial instrument is a contract giving rise lo a finanaal asset (such as trade and other deLtors, cash and bank balances) or a financial liability (such as trade and other creditor5, bank and other loan5, hire purchase antj lease credilorsl. Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party lo the contractual provisions of the inslrumenl. Ai the charitable company financial instruments are basic finanaal instruments and are recognised at amortised cost using the effective interest method. Amortised cost.. the original transaction value, less amoun15 settled, less any adjustment for Impairment. Effectlve Interest metho(I: where a financial instrument falls due more than 12 months after the balance sheet dale and is subject lo a rale of interest which is below a market rate. the original transaction value is discounted using a market rale of interest to give the net present value of future cash flows. Derecognition of financial instrurnents Financial assets Cease lo be recognised only when the contractural rights to the cash flows expire, or when substantially all the risks and rewards of o¥Nnership are transferred to another entity. Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled. 1.12 Taxation The company is a registered charity and is èntitled lo exemption from lax lo the extent that income received falls within Part 11 of the Corporation TaxesAcl 2010 and is applied lo charitable purposes only. 1.13 Employee benefits The cost of any unused holiday entiuemenl is recognised in the period in which the employee's services are received. The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required lo be recognised as part of the cost of stock or fixed assets. 1.14 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they f811 due. 17- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 A¢¢ounllng poll¢lg$ Icontlnugdl 1.15 P9nsion$ Contributions in respect of the charitable company's personal pension scherne are charged lo the income and expenditure account for the year In which they are payablè lo the scheme. Critical accounting estimates and judgements In the application of the charitable company's accounting policies, the trustees are required lo make judgements, estimates and assumptions about the carying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from thèse estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are re¢ognised in the period in which the estimate is revised where the revision affects cnly that period, or in the period of the revision and future periods where the revision affeds both current and future periods. Donatlons and legacle$ Unrestrlcted ReStrI￿ed funds funds general 2024 Totsl Unrestricted funds general 2023 2024 2024 GMCA Multiply Scheme grant Membership training fees 30,163 30,163 3,665 3,665 4,033 Charltable actlvltles Unrestricted Unrestricted funds funds 2024 2023 Training course fees and consultancy Skills Funding Agency and similar funding Rental income and hire of assets Other 241,909 218,168 2,780,490 2,218,541 2,301 2,640 13,656 5,296 3,038,356 2,444,645 All of these were unrestricted monies. 18- ROCHDALE TRAINING ASSOCIATION LIMITED COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 Investment Income Unrestricted Unrestricted funds ftjnds general general 2024 2023 Dividends receivable Interest receivable 92 33,279 83 19,713 33,371 19,796 All of these were unrestricted monies. 19- WJ (0 ¢D N (N ¢D CO rtS)ON(D(TJ rD N (O (TJ o ¢0 O rOGJ O)Or Lr> a>￿0 ryiuj n t TJ O>0* tr>- ry Ln* * No>0 ¢D CO (f> ¢D in ￿ ¢D J CN CD ( o(0 Lr) ¢0 csj 0￿(0 ¢0 z> (o ¢0￿0 (o ry) 7J UJ c¥