Charity registration number 528635 Company registration number 00926888 (England and Wales) NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Tru$tees E Sims l R8eside A Sirns Mr J Bailey (Appointed 24 April 20241 Secr•tsry P Smith Charity numbèr 528635 Company number 00926888 Registsrad offl¢e Hanley Technical Institute 151-153 Marsh Street North Hanley Stoke-on-Trent Staffordshire ST15HR Auditor Geen5 Limited Graphic house 124 City Road Stoke on Trent ST4 2PH Bankers National Weslminsler Bank plc 1 Upper Market Square Hanley Sloke-on-Trent ST1 1NS Sollclto Freeth Cartwright LLP Federation House Station Road Stoke on Trent ST4 2SA NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED CONTENTS Page Trustees. report statement of trustees, responsibilities Independent audilorfs report 10-12 Stslemenl of finanaal a¢tivities 13 Balanea shÈet 14-15 Statement of cash flows 16 Notes lo the finanaal ststements 17-27 NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES. REPORT {INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 AUGUST 2024 The trustees present their report and the financial stalèmen15 and business plan for the year ended 31 August 2024. The trustees, who are also directors for the purposes of company law and who servéd during the year and up to the date of this report are set out in the Reference and Adminislralive Information. The financial statements have been prepared in accordance with the accounting poliaes sét out in note 1 to the financial statements and comply with the charitable companys governing document. the Companies Act 2006 and "Accounting and Reporting by Chaiities". Statement of Recomrnended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021" leffe¢tive 1 January 20191. Objectives and activities To promote, organize and arrange the prowsion of training for persons empbyed or looking for ernployment in the enginèÉring industry. To provide support lo employers through apprenticeship programs. To offer advice and guidance to schools l young persons on engirieering careers. To offer local employers a range of engineering focused based training support servi¢Ès. To upskill and link unemployed people with local engineering employment opportunities. Offer health and safely sUPPOrt adwce and guidance to local engineering companies. This has been achieved from tha followlng a¢￿VIlle$ Apprenti¢eship progr8ms. The group has facilitated and deliveTed apprenticeship programs in all types of engineering activities. These delivered from its base in Hanley and also within the work place of members and clients. The group has 50 - 60 apprentices on progiam at any one lirne. The group has invested heavily in its delivery with Mo studios developed a few years ago to offer continual training on line and acces5 to the recorded training programs are offered fieely 2417 and 365 days a year to both thè student and employer. The group rarry out regular skill gap analysis for the groLJP'S mernbers and clients these have taken place and training arranged. The group offers an advisory sewice to discuss training and training programs free to engineering sector companies. It offers a free reoruitrrent and testing service to enable smaller Companies to receive direct support. It has applied on behalf of the members and has given advice enabling them to re￿1ve assisted financial support. The group has continued to work dosely with the local job ￿ntre plus in srtes pla￿d around the city, wsiting regLJlarly one or two limes a week to prornote and educate those looking for employment and discussing those opportunities available to thern from the local engineering sector following the groups engineering upskilling training. Our upskilling training is developed and completed in areas requested through continued consultation with local engineering employers. The group run two separate steering groups throughout the year with both employers and appientices. This upskilling of the unernployed and the group's apprenti￿Ship offer means thè demographic for the group continues to be very diverse supporting both older and the younger people in the area. WÉ are also supportive to those with learning disabilities, low educational level attainment and registered disabled, all who benefit from the groups academy and its hands on approach. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 The group attends and supports local career events and Job shops. The group participate in school career activities to offer advice on career paths and apprentI￿shipS at all levels. We give taster sessions to school pupils on engineering actiwties using special equipment and our new for this year educational Mobile activity van purchased lo hèlp them understand engineering and the different ioles better,. NSEG now leach out to the people of Sloke-on- Trent with laslers of engineering activities and employment skills. The van fully modernized has disability access and designed to promote social inlegr8lion and community engagement., it continues to reach out to those that would not nomially be able to get access to thi5 information or activity. This Èngagés individuals 2nd crÈales training opportunities, particulady for those that face barriers to erllploymenl andlor live in deprived areas. The knock on affe¢l will benefit employers in industries with known skills shortages such as engineering. The van and its activities are designed to give an appreciation of Engineering skills and allow people to try out their ability using enjoyable but sale equipment whilst receiving high qu81ily irnpartial IAG. NSEGTA staff continue to engage with and attend at least 20 local social groups, careersljob fairs, schools 15 per quarterl of which 20.14 will be fiorn underrepresented groups. These invèstments, in the services and support we offer to the local community gives the group the ability to give free advice guidance lo all, the sector we support and the local people of Stoke on Trent, and surrounding areas. Our Education and Skills Funding expertise continues to ensure th81 there is fair and equal access to funding for training employees to the group's members and associates. Governmenl incentive information as and wher) it becomes available is serit out via e-mails telephone calls and marketing material. Our team of training officers briefed regularly on in￿ntiVe payments also pass on relevant information lo employers. We continue to offer education, apprenticeship and training Information In all forms to ensure we reach all areas ol our demographic in the fomi of media releases information given with leaflets, e-mail bulletins and special arranged zoom meetings, giving group piesentations and face to face support wa our new studios. The group links wilh the local employers, IOCAI colleges, and Staffordshire training network. Our past and future investments have been, and will continue lo be so that the group can offer training, upskilling, and support lo enhance, develop and read) out to increasing numbers of people. The equipment purchased was chosen to ensure that any tiaining taking place 15 Carried out on industrial Standard equipment used by employers results in work ready skills and smooth transition into employment by NSEGTA learneT3. Health and safety support to members and other companies to meet obligations In legislative requirernen15 in he8￿h and safety ¢ontinues. Subsidized by surplus the group Make, this Servi￿ continues to improve, with equipment purchased lo support local tompanies in testing coolant and assessing atmospheric pollutants. Membership costs have remained static again bLrt we have offered evèn more levels of SLJPPQrt, and our memb8rship numbers stay consistent. We have referred to the guidance contained in the Charity Comrnission's general guidance on public benefit when reviewing our aims and objeetives and in planning our investments, which influence future activities and believe we have accomplished this. We have made surplus monies over a number of years, which have supported our continual investments designed to improve the chances for local people and support the needs of lo¢al engineering companies in line with our public benefft objectives. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Achievemènts and performance This year has again seen the group making signilicant differences in the engineering sedor. from up skilling ernployees to arranging and oversèeing apprenticeship programmes and our training to the unemployed. a recent customer satisfaction survey has concluded that 100°/o of employers would recommend NSEGTA to other èmployeis. A comprehensNe breakdown ofthe group's perfOr[nan￿ is seen below. thievernents and rm Au 24. 202&24- Final Recorded success Rates and 2023-24 contractual laigets record ets EB ntr Contract allocation of £655k was ex￿eded by £2.5k. 187 Ace Academy PMO Starts1129 L1158 L21 Target= 160 137 Employability Starts Target= 90 79 Functional Skills Starts Target- 60 92 EOS Starts Target- 1001.81 19 Workplace NVQ S18rts Target= 301_111 tion A hi 2023124 Oveiall AEB (Induding Ace l FS I NVQSI = 95°A - Ace Academy- 96°A N81 Av 84.2'A Progréssion rates into FE l employment= 790/ - Workplace L2 NVQs= Functional Skills - 920/0 2024125 ASF contract has commenced, the contract Value and targets remain the same as 2023124. Relationships with JCPS are extremely good and we currently have a waiting list of 33 unemployed indwiduals lo start in the aG3demy which takes us up lo the November course. ESFA funding rules have also been relaxed which will allow all indiwduals lo progress from the level 1 course to the level 2 course (prior to Ihis il they were aged 1&23 they had to already hold a L2 qualification). renticeshi U date 2023r24". 24 x L2 Apprenticeship starts (plus induding 3 x 6 week leavers and 2 early leavers) 8 x L3 Apprenticeship starts Stoke on Trent College Total = 32 ApprentI￿ShIp starts against a target on 45 Starts lunderperforrnance 0113 Starts) ualific3tion Achiev ntRa Overall Apprenticeships- 800 Mal Av 54.6O/, 12 Lean ManufaGluringAchievements~ 10 Pass (83%) /2 Distinelion (17%). We will be rewewing the feedbad( from the EPA'S to better understand why leamers are only achiewng a pass. Review and update the curriculum l training if necessary. En 15 Engineering Operative Achievements- 4 Pass127¢AI 111 Distinclion173°/01. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES, REPORT {INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Overall End oint assessmen results= 14 Pass- 52 /0 113 Distinc Apprenticeships- 804 (National Average 53.4•/01 Ace Academy- 99UA (National Average 86.20/01 740/0 Piogressed in Employmenl l Further Education Functional Skills- 100°A (National Average 86.2°Al Workplace NVQs- 95¢/o (National Average 88.2Oknl on-4 Retention Rates- 80% Retention Rates- 99% Retention R3te5- 100Q Retention Rates- 95° The results of our annual •mployers and Leamers survey seèn balow. A good response rate from both employers and learners. Employers 44 employer surveys were emailed out with 30 Employer Tesponses re￿iVed 68°A response rate. 100% of employers would reeommend NSEG to other employers. 674h of Èmployèrs agree that their apprenli¢es arè acquiring the knowledge, skills and behawours they need lo support them in their job and ohosen next steps. 27°A strongly agree and 6°/0 neithèr agrèe noT disagree. 53°A ol employèrs strongly ag￿e that NSEG communitr31es well with Iheir organisation to plan the pprenticeship training and 47¢A agree. 60°/ts of wmpanies would like PPE to be donated. 37°/0 of cornpanies do not have a dear understanding of NSEG'S charitable aims and objectives and a further 10.10 would like to know more. 17°A of companies would like to know more aboLJI the benefits of becorning 8 member F.Ball, Don-Bur. Merfin, SPE & Coorstek. 3°A of companies would like more information OT) becorning a Trustee IF.Balll and 17°/o would consider it in the future Pets at Home, Alpha Engineering, Grenville, Parkhouse & Coorsték. 93th/o of cotllpanies do not require further support wlh their Health & Safety, 3.5°A do ISPEI and 3°A maybe (Alpha Engineeiing). What NSEG does well.. Good l Excellènt ¢ommunic21ic>n, communication from NSEG is far beitei than any other apprenticeship services we have worked wilh Good l Excellent Feedback session5 on rnonthty visits and apprentice fully understands Apprenticeships are well structures and apprentI￿S are kept on track Understand5 the employers needs and structures the trainin9 foi the employer Good. qu2lity candidates providèd lo be apprentieés Vthat NSEG could do better: Deliver level 3 apprenticeships and level 3 qualifi¢ations17°/1 More skills based tr8ining I practical training120°/,1 More CNC training around G Code13°Al Tailor the training to the workplaGe13Y No improvements required, very good 167¢AI Learners 46 le3mer surveys weie emailed out with only 38 leamer responses received 83ts/o response rate. 100 Its of leamers would recommend NSEG to their friends. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 61QA of learners agree their appienliceship prograrnrne rneets their training needs and are aequiring the knowledge, skills and behaviours to do their job. 37°/0 Strongly agree and 2°A neither agree nor disagree. 68°/0 ol learners strongly agree they receive the support from their Training Officer l Tutor. 29¢1ts agree and 3QA disagree11 learner). 84QA of le3meis strongly agree their Training Officer l Tutor treats Ihern fairty and with respect and 16% agree. 71°/o of leamers strongw agree their Training Officer l Tutor gives them regular fe&dba¢k on their progress and sets them challenging largets, 26°/o agree and 3°/0 neither agree nor disagree. What NSEG does well from the survey.. Monthly progress meeting to make sure l am on target. Good communication. Good 2nd frequent feedback on work and setting targets. Targets are sel clearly. Provides help I support and well planned lessons. Staff are triendly and comrnunicate information dearfy in an easy to understand way. Enable me to learn in a sale environment by checking in regulady and listening 10 any ¢ollcerns. What NSEG could do better from the survey= CoMmuni￿tion(l2°￿I More regular visits checking progress and near to the end ol apprenticeship lo prepare you15°/01 Send out off the job records before the review13°Al More practical training with NSEG18°/ol Online lessons could be improved. a little more entertaining l interactive {19°kl Access lo resources130￿} Scheduling13°Al Nothing to thange I happy wth how things are147°Al The group remain the leading provider for local engineering companies for their apprenticeships. In February 2021. the group became a prime training provider. It received its first independent ofsled monitoring visit inspection in 2022. followed up by a full inspection December 2024 where the group re￿IVed a good grade auoss all areas, the full report Can be seen al. hlt ."Ilr ov.ukl 12 The group have suc￿SsfUllY retained the matrix standard this year for advice and guidance. It aM)lied for 8nd suc￿SsfUllY met the education & skills funding agency standards and rernained on the register of UK training providers submitted at the beginning ol the year. It successfully gained 2 years in 2023 for adult education funding for Its provision in engineering training and up skilling. having now completed the first year the group achieved its largets and will be applying for an additional 2 years funding for at the end of 2025. The adult educAtion dèlivèry Ifor those over the age of 191 at nse9la completed with excellent rewlts as seen in the performance review. The nurnbers passing through the training academy program topped over 180 lo￿1 unemployed people, beating last years resutts ', these were made up of men, women, low academic achiwemenl and special needs, including previous offenders. The group conlinue to offer a no barriers approach to those we support. 27 work experience I trial progr3rns and support h3ve been accomplished with a special program off&ing companies the opportunity to give taster se55ion5 In partnership with the local colleges,. these have resulted in those on the program gailling an apprenticeship with those companies involved. Accredit81ion with the Instrtule of Mechanical Engineers, the British Safety Council, the Institute of Occupational Safety and Health, the M3lrix standard for advice and guid3nce, Ihe awarding bodies for EAL, and the AOFA regulated health gnd safety national standard, cyber secure. the Information cornmissioner's office and Direct daims status with EAL awarding body all rnaintained. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 The heatth and safety service conlinues lo itnprove. The group now recognised 85 a leading health and safety consultant for local engineering companies by thè health and safety executive and following a number ol inspections. They continue lo approach us to support alld offei advice on dwell b'mes lor machining, almospheri¢ conlaminales and coolant safe handling. We will continue to invest in this area to meet the demands of the illdustry and offer support., there is planned significant investment in this area for 2025. Financial review To ensure that monies surplus are channelled to enhan￿ the groups not for profit services NSEGTAhas decided lo have 3 areas which are now designated from surplus and its current assets.. £612,846 Fixed Assets l¢apital inveslment building and èquipment} 4 £131,000 Staff Corilingencies Iredundancy payments el¢.) £500,000 Strategic Developrnenl Fund These areas will be shown on the balance sheet and constitute a commitment to develop 115 ch8rilable activities. The trustees have reviewed the resèrves of the charity. Cash rèsèrvès are reqLJired to fund new service opportunities for members and cover the cost of potential repairs on the group's capital investment. The cash reserves of approximately £1,019,000 laftei deducting certain fund designations) meet these requirements. Invèstment powers, policy and perfomiance The trustees h8ve considered the most appropriate policy for investing funds surplus to immediate needs. They have decided that this should be lo maximize the return whilst minimizing the risk ol loss of funds. Accordingly. funds invested in bank deposit accounts and building soaety accounts. Highèi risk investments not pemitled. Flnancial performance A surplus made this year, some invested in non-risk bonds and some reinvested in the group's assets throughout the year. The designation has been tailored in-line with any surplus made. to ensuré maximum investrnent goes back into the group to help it meet and improve its services and charitable objectives. The trustees have assessèd the major risks to whi¢h the charitable company is exposed and are satisfied that systerns are in place lo mitigate exposure to those rnajor risks. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2024 Plans for future periods Senior management changes for 2024 12025 will result in the group's CEO changing. From Seplernber 2024 Sarah Stanway will be taking on the position as joint CEO with Paul Wlliams and from January 2025 when she will lake on the role with sole responsibility. The Iruslees h8ve considered the impact on the group and asked that the current CEO to support the transition, 3s joint CEO from September to December 2024 then taking the position of company piesidenl for an ijndelermined period from Jan 2025. A business plan presented to the b08rd in June 2024 was unanimously approved. The plans objè¢tive 15 to continue the groups desi￿ lo maintain sleady growth and stability. The areas. we have focused on have been tradrtional group 8Ctivilies. growth in these areas will result in a slight re-posrtioning back to a more traditional offering for members. This should reduce OLJr susceptibility made possible by an almost certain ohanging political landscape and any possible impact to govemment funding. NSEGTA is facing new and sustained Challenges, prirne contracts for AEB and apprentI￿ShIp funding means that meeting auditing and quality requiremen15 is now a full time and costly iequirement. Loss of skills through a number of employee departures has also irnpacled on the group's ability to attack bollle necks. The investments rnade in multi skilling employee5 over time has resulted in them becoming more attractive to other organisalions, which is slightly conceming but unavoidable. We know no other way lo get the skills required and will need lo continue lo invest in ernployee development. We will also need to employ additional staff. We have taken into a¢count the planned management changes taking place, which means that there a￿ arèas for the group to wnsolidate for a smooth transition. Current delivery lor the Ace academy must be maintained al the current levels, the income is strong in thi5 area and a cautious approach is required to ensure that both contract values and audit requirements are mel. which will support another bid. Vve have identified however, other areas we feel are ready for inveslment for growth and improved Servi￿$. Throughout our discussions, consideration has been given to the group's heritage. ils membership ?￿d charitable objectives as well as tradition81 services. It iernains wlally irnportant thal the group relain ils strong financial position.. investments planned from the approved busine55 plan will allow the group lo work with its members to identity and implement important heatth 2nd safety training and the general up skiS1ing of employees and apprentices in the new heatth and safety hub planned for 2025. Our contract with the AEB budget runs out by July 2025, thè next 12 months is cruaal that we meet and if possible exceed the target ol spend that the group has been allocated. We will need to apply for funding again sometime around springtime In 2025. Following successful tenders, it is dear that the delivery providers have been ciously culled over the last few years and the ESFA wanted to decrease the number of allotted training providers. Support from members will make it a stronger bid with an employment drive for those cornpleling Iraning at the Ace academy would piove very useful. This will increase our progression rates into employment, which is a contractual requirement. NSEGTA procured and was awarded £446k for its first AEB contract in 2021122, but only 88 providers were successful la reduction from 208 pioviders the previous yearl. In 2022123. NSEGTA procured again lor an AEB contract, with an increasÈd allocation of £655k. on￿ 55 providers were successful la further redu¢tion from 88 providers the previous yearl, with only 15 providers, being 3warded the full allocation, NSEGTA being one of them. A further adult eduralion procurement is a very important lo the group's plans and will form part of a Concentrated effort to secuie this during 2025 when we believe fresh procurement bids will be released. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT} {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Strncturè. governance and management Governing document North Stafford5hire Engineering Group Training Association Limited INSEGTAI is a company limited by guarantee, and is a registered charity governed by its Memorandum and Articles of Assoaation which were last amended in November 2001. The IIu51ees. who ale also the directors for the purpose of company law, and who served during the year and L)p lo the dale of signature of the finanrial slalements were". E Sims P Smith l Raeside A Sims Mr J Bailey (Resigned 19 July 2024) (Appointed 24 April 20241 A board of tiustees administer5 the charity. It éndeavours to meèt b￿monthlY and at other times vthen required. 11 has power to appoint sub-commillees oonsisling of not less than Iwo trustees for the purposes of making inquiry into or supervising or performing any function or duty which in the opinion of the trustees would be rnore conveniently Ljndertaken or carried out by a sU￿COMMittee provided that all acts and proceedings of any such sui>committees shall be fully and promptly reported to the trustees. A chief executive is appointed by the Iruslees to manage the day to day operalions of the charity. The pay s¢ales of senior staff are sét by the trustees and are benchrnaiked against similar ￿Zed organisations operaling in the area. Pay of Individual members are reviewed annually and this rewew takes into aeeount perfomance and any other additional responsibilities undertaken. Auditor In accordance with the company's articles, 3 rèsolution proposing that Geens Limited bè rèappointéd as auditor of the company will be put at a General Meeting. The IrLJStees' rèport was approved by the Board of Trustees. l Raeside Trustee Date.. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2024 The trustees, who are also the directors of North Slaffordshire Engineering Group Training Assoaation Limited for the purpose of COTnpany law. are responsible for preparing the Trustees. Report and the accounts in *cordance with applic3ble law and United Kingdom Accounting Standards (United Kingdom Generally A￿pted Accounting Practi￿1. Company law requires the trustees lo prepare accounts for eath financial year which give a true and fair view of the state of affairs of the charitable company and of the incorning resources and application of resources. in¢Juding the income and expenditure, of the charitable company for that year. In preparing these accounts, the trustees are required to.. selèct suitsble accounting policies and then apply them consislently., observe the methods and principles in the Charities SORP., make judgements and estimates that ale reasonable and prudent.. slate whether applicable UK Accounting Standards have been followed, subject to any material dep8rtures disdosed and explained in the accounts,. and prepare the accounts on the going concem basis unless il is inappiopriale lo presume that the charitable company will continue in operation. The Iruslees are responsible lor keeping adequate accounting records that disclosè with reasonable accuracy al any time the linanaal position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen￿ for taknng reasonablè steps for the prevention and detedion of fraud and other irregularrties. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED Opinion We have audited the financial staternents of North Staffordshire Engineering Group Training Association Limited Ilhe 'charrtable cornpany'l lor the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable 13W and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Tl)e FinanGial R8POrting Standard applicable in Ihe UK and R8publiG of Ireland (United Kingdorll Genera51y Accepted Accounting Practice). In our opinion, the fin8nci81 slalement5". give a true and fair wew of the state of the charitable company's affairs as at 31 August 2024 arKI of its incoming resources and application of resource5. for the year then ended". have been properfy prepared in a¢¢ordance with United Kingdom Generally Accepted Ac¢ounling Practi￿". and have been prepared in a￿rdancE with the requ1￿mentS of the Companies A¢t 2(MJ6. Basis for opinion We conducted c)ur audit in accordance with International Standards on Auditing (UK) IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs ￿SponSibl11t1eS for the audit ol th8 fjnaneial statem8nls sedion of our rÈport. We are independent of the charitable company in accordance with the ethical requirements that are relevaril to our audit of the financial statements In the UK, Including the FRC'S Ethical standard, ar)d 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 concem In auditing the financial slalemenls. we have conduded that the Injslees, use of the going cOn￿M basis ol accounting in the preparalion of the finan￿al statements is appiopriale. Based on the work we have performed, we have not identified any material unc£rtainties relating to events or conditions that. indi￿lduallY or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of al least twelve months from when the financial slalements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are desuibed in the relevant se¢lions ol this report. Other informatlon The other information comprises the information inoauded in the annual report other than the finarrial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial st3tetMents does not cover the other information and we do not express any form of assuran￿ conclusion thereon. Our responsibility Is to read the other information and, in doing so. consider whether the other information is materially inconsistenl wilh the financial 51atemenls or our knowledge oblained in the course of the audit, or otheNise appears lo be m31erially misstated. If we Identify such rnaterial 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 perfomed, we conclude that ihèré is a material misstalemenl of this other information, we are required to report that fact. We have nothing to report in this regard. 10 NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED atters on which we are required to ￿port by exception We have nothing to report in respect of the following tnatters in relation to whith the Charities IAcc<)unts and Reports) Regulations 2008 require us to report to you il, in our opinion.. the inforTnalion given in the financial statements is incL)T)sislent in any material respect with the trusteès, report., or sufficient accounting records have not been kept., or the financi31 statements are not in agreement with the ae£ounling records., or we havè not Feceived all the information and explanations we require for our audit. Responsibilities of trustees A5 explained more fully in the statement of trustees, responsibilities, the trustees, who are also the directors of the charitable company for the purpose ol company law, are responsible lor the preparation ol the financial slalernenls and for being satisfied that they give a true and fair wew, 2nd for such internal control as the trustees determine is necessary to enable the preparation of finan¢ial statements that are Iree from material rnisstatement, whether due to fraud or error. In preparing the financial slalernenls, the Iruslees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going toncein and using the going concern basis of accounting unless the trustees either intend to liquidate the Chairtable company or to cease operations, or have no realistic alternative but to do so. AudIt0￿5 responsibllities for the audit of the finan¢ial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Ad and relevant regulations made or having effect thereunder. Our objedives are to obtain reasonable assurance about whether the finanryal statemen15 as 8 whole are free from m8teiial tllisslalemenl. whether due lo fraud or eiror, and lo issue an audilorfs report that indudes our opinion. Re3son8ble assuran￿ is a high level of assurance bul is not a guarantee that an audit conducted in accordancè with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise frorn fraud OT error and are considered material il, indwidually or in the aggregate, they could reasonably be expected to influence the economic deasions of users taken on the basis of these financial slaleTnenls. Irregularities, includir)g fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delect material misstatements in respect of irregularities. including fraud. The e£Lenl lo which our procedures are capable of detecting irregularities, including fraud, is detailed below. As part of our planning process.. we enquired of management the systems and controls the charity has in place, the areas of the financial statements that a￿ most susceptible to the risk of irregularities and fraud. whelhei there was any known, SLJspected or alleged fraud. the oharity did not infom us of any known. suspected ar alleged fraud. We obtained an understanding of the legal and regulatory frameworks applicable lo the charity. We determined that the following were most relevant.. the Charity SORP. FRS 102, Charities Act 2011. Companies Act 2006. We considered the incentives and opportunities that exist in the charity, including the extent of management bias. which present a potential lor irregularities and fraud to be perpetuated, and tailored our risk asse5srnenl accordingly, Using our knowledge of the Qharity. together with the di￿us$10llS held with the charity at the planning Stage, we formed a conclusion the risk of misslatemenl due to irregularits'es induding fraud and tailored our procedures according lo this risk assessrnent. NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED The key procedures we undertook to detect iiregularilies including fraud during the course of the audit included.. Identifying and testing joumal entries and the overall 8wounling records, in particular those that were significant and unusual. Rewewino the financial slalernenl disclosures and determining whether aLLounting policies have be appropriately applied. Reviewing and challenging the assumption5 and judgements used by management in their significant accounting e51imales. Assessing the extent of oornpliance. or lack of, with relevant laws and regulations. Assessing the validity of the cla5sifieAlion of income, expenditure, assets and liabilities between unrestricted and restricted funds. Obtaining third party confirmation of material bank balan￿5. Documenting and verifying all significant related party balances and transactions. Reviewing docurnentalion such as charity board minutes lor discussions of irregularities including fraud. Because of the inherent lirnilalions of an audil, there is a risk that we will not delecl all iriegularities, including those leading lo a malerial misslalemenl in the financial statements or non