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2023-07-31-accounts

REGISTERED COMPANY NUMBER: 02262730 (England and Wales)

REGISTERED CHARITY NUMBER: 700763

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

DERWENT TRAINING ASSOCIATION

DERWENT TRAINING ASSOCIATION

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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Page
Report of the Trustees 1 to 6
Report of the Independent Auditors i To Y
Statement of Financial Activities 10
Balance Sheet 1]
Cash Flow Statement 12
Notes to the Cash How Statement 13
Notes to the Financial Statements 14 to 20
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DERWENT TRAINING ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 July 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The purpose of the charity is to provide education and skills training for employers and their employees. Standalone training is also available for individuals who wish to update their skills.

The objectives of the charity are to:

Public benefit

The charity Trustees have had regard to the charity commissions’ guidance on public benefit and feel that this can be demonstrated by the aims and objectives listed above and the significant achievements explained in detail later in the report.

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DERWENT TRAINING ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Derwent Training Association (Derwent Training) has successfully delivered on it's charitable objectives during the year, whilst returning a profit which will enable future investment in it's facilities.

Derwent Training was graded ‘good! in its last Ofsted inspection (March 2022). it maintained the Matrix quality standard as well as maintaining direct claim status from the awarding organisations, EAL & Pearson, and obtained Cyber Essentials accreditation. Derwent Training subcontracted from Maritime and Engineering College who also received 'good' in their last Ofsted inspection. This contract has ended.

Apprenticeships are offered at levels 3 and 4. New enrolments surpassed the target set in 2022-23. Eighty employers placed apprentices with Derwent Training. Commercial courses were also delivered with the income target surpassed for the year in this income stream.

Derwent Training provides information, advice and guidance to employers and their employees on the best route forward in terms of training. There is a delicate balance to be had in being honest with employers about what Derwent Training can deliver in a set timeframe and signposting employers to other providers for aspects outside of the scope of Derwent Training. Integrity remains important in working with employers.

Derwent Training continues to review the staffing levels and skills needed to deliver the prescribed programmes. New staff have joined the company whilst others have taken up new opportunities elsewhere.

FINANCIAL REVIEW

Financial position

The Trustees consider that Derwent Training has had a successful year. It has met the demand for training during the period whilst carefully controlling the resources required to meet that demand. The resulting modest surplus has strengthened the balance sheet, which improves the entity's long term prospects.

Principal funding sources

Income was generated through a direct contract with the Education and Skills Funding Agency (ESFA) and a subcontracting arangement with Maritime and Engineering College. The latter has ended and has no discernible impact on income. A loss of the ESFA contract would be a risk to the business, however this is adjudged to be low risk given the performance of the Charity.

Reserves policy

Trustees have examined the charity's requirements for reserves in light of the main risk to the organisation. The Charity holds reserves to ensure

Reserves can cover possible emergency repairs to the centre and other expenditure including salaries. The Charity's financial working capital consists of core business funded activity and other funds through projects which vary year on year.

Trustees report the level of free reserves, (that is those funds that are freely available), bridge any gaps between spending on training and money received through full cost courses and grants that provide funding. Short tem reserves would be needed to meet the working capital requirements of the charity; approximately £175,000 would cover three months salaries and general running costs. The Trustees have taken steps to maintain monies and reserves exist that safeguard the organisation. The policy is being met.

At 31 July 2023, the charity held reserves of £894,407 (2022: £815,830), all of which was unrestricted. The level of free reserves, that is unrestricted funds less those held in tangible fixed assets, was £164,903 (2022: £71,693).

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DERWENT TRAINING ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

FINANCIAL REVIEW

Going concern

Derwent Training is a well-run Charity with a strong management team let by a competent CEO. The executive team is supported by an appropriately skilled and engaged non-executive Board who provide regular oversight. The organisation has significant cash reserves.

The principal risks to the charity are changes to the source of funding due to changes in Government policy and economic change resulting in a significant reduction in the number of Apprenticeships being offered by local businesses leading to a reduction in the training requirements in the area.

Because Apprenticeships are undertaken over a four-year period, changes to Government Policy would only occur after significant notice, and because the entity has significant cash reserves, the Directors cannot foresee circumstances that would change the Charity's Going Concern basis within the next twelve months.

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DERWENT TRAINING ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

FUTURE PLANS

The regional environment:

The North Yorkshire County Council Plan 2020-2024 identifies as a priority the need for increasing skill levels and ensuring that the workforce meets the needs of North Yorkshire, ensuring that that there is a clear pathway for young people from education to training and employment, and other actions to support the development of a workforce that meets the social and economic needs of the county. Additionally, the LEP states that there is a clear link between investment in higher level skills and a business’ competitive advantage. Businesses need to train their staff to keep pace with technology and ensure increased productivity. Derwent Training now offers not only Apprenticeships in engineering but also in leadership and management as well as full cost courses and online training that is a simple yet effective approach to employee development to ensure teams are upskilled.

The York, North Yorkshire, East Riding and Hull Area Review (2019) identified that the lack of large employers within the region is a challenge and there is limited take up of Apprenticeships by micro-business. New Apprenticeship starts nationally decreased pre-pandemic and did not pick up as the pandemic continued. Numbers began to increase during 2021-22 and there has been a steady increase since. Some providers have struggled to provide a viable offer therefore it is essential to ensure that Apprenticeship delivery structures are financially sustainable and allow progression to and from traditional full-time technical and vocational curriculum and higher education. The lack of higher level Apprenticeships standards in the Local Enterprise Partnership (LEP) priority areas, such as engineering, remains a significant challenge to developing the local economy. Derwent Training is resolved to supporting the development of higher level skills either alone or in partnership with other institutions. It will also work to embed Low Carbon skills and knowledge with its delivery where applicable. There remains a lack of investment in leadership training in North Yorkshire and Derwent Training has committed to expanding its delivery in both the engineering as well as the leadership and management curriculum area.

Strategic plan:

The Trustees believe Derwent Training is positioned to address the challenges identified regionally and create opportunities through working in partnership with other providers and employers.

Derwent Training will work towards securing continued funding for Apprenticeship delivery through new partnership arrangements wherever possible.

The charity recognises the impact of the limited agreed trade deals following the withdrawal from the European Union on employers in the sector and the region, with many still holding off in recruiting new employees or going out of business. Additionally, the COVID-19 pandemic caused a further contraction in recruitment for some employers which is yet to fully recover.

The charity has identified the leadership and management cuniculum as an area for development and has recruited a delivery team and is marketing the curriculum to all sectors of industry in the region.

Consequently, the charity has set a realistic budget, with tight management maintained around expenditure, that is focused on supporting learner achievement within truthful income figures. Derwent Training continues to enrol all year round rather than just in September to support employers’ growth plans as they occur.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Derwent Training Association is a company limited by guarantee and not having share capital. It is governed by its Memorandum and Articles of Association dated 27 May 1988 (amended February 2015). If is registered as a charity with the Charity Commission. The number of members which the company proposes to be registered is Unlimited.

Derwent Training cooperates with the EFSA and Department of Education (Df) in its pursuit of the charitable objectives. It fulfils all requirements of the DfE in order to continue to deliver Apprenticeships.

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DERWENT TRAINING ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT Recruitment and appointment of new trustees As set out in the Articles of Association, the chair of the Trustees is nominated by the members of the charitable company. At the Annual General Meeting, one third or nearest number to one third shall retire from office. Directors who have been longest in office since their last election shall retire. Retiring trustees can choose to stand again as a trustee at the AGM and are elected by the Board at that meeting. New potential trustees are approached by the Chair when there is an opportunity to replace a retiring trustee or when a skills gap is identified on the Board. The Chair interviews applicants and the Board votes to elect a candidate to the Board.

Organisational structure

The Board of Trustees, which usually has from 6 up to no more than 10 members, oversees the strategic business planning. A Chief Executive Officer is appointed by the Trustees to manage the day to day operations of the charity. To facilitate effective operations, the Chief Executive Officer has delegated authority, within terms of delegation approved by the Trustees, for strategic and operational matters including finance, employment, and other related activities.

Induction and training of new trustees

New Trustees are invited to a Board meeting and given a copy of the Memorandum and Articles of Association, Self-Assessment Report and ESFA contract performance figures and a copy of the latest budget figures. All Trustees must complete statutory training on Safeguarding and Prevent Duty.

Key management remuneration The Trustees consider that the Board along with the Senior Leadership Team comprise the key management personnel of the charity and are in charge of directing, controlling, and operating the Trust on a day to day basis. All the Trustees give their time freely and none are remunerated. Details of expenses reimbursed during the year are shown in the notes to the accounts.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the Trustees benchmark against pay levels in other similar organisations in the North of England to ensure that the remuneration is fair and not out of line with that generally paid for similar roles.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 02262730 (England and Wales)

Registered Charity number

700763

Registered office Hertford Way York Road Industrial Park Malton North Yorkshire YO17 6YG

Trustees

Mr R A Shaw Managing Director Mr D MacFarlane Company Director Mr AB G Pickering (resigned 17.10.22) Ms A Watson Director

Ms S Edwards Director Ms LA Thompson Hr Director

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DERWENT TRAINING ASSOCIATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023

REFERENCE AND ADMINISTRATIVE DETAILS Auditors Fortus Audit LLP Equinox House Clifton Park, Shipton Road York Yorkshire YO30 5PA

Bankers

Santander UK Bridle Road Bootle Merseyside L30 4GB

Chief Executive Officer C E Gavaghan

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also the directors of Derwent Training Association for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking[ reasonable][ steps][ for][ the][prevention] and[ detection][of][ fraud] and[other] irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 17 April 2024 and signed on its behalf by:

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF DERWENT TRAINING ASSOCIATION

Opinion

We have audited the financial statements of Derwent Training Association (the ‘charitable company’) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF DERWENT TRAINING ASSOCIATION

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities 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 purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from maternal misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understating of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2016) and the relevant tax compliance regulations in the UK.

We understood how the charitable company is complying with those frameworks by making enquires through review of board minutes and discussions with those charged with governance.

We assessed the susceptibility of the charitable company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered thee was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understandings, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF DERWENT TRAINING ASSOCIATION ite ee es

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Howouck. #

Frances Howard FCA (Senior Statutory Auditor) for and on behalf of Fortus Audit LLP

Equinox House

Clifton Park, Shipton Road York Yorkshire YO30 5PA

Date: 17 April 2024

ps

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DERWENT TRAINING ASSOCIATION

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Unrestricted Restricted Total Total
fund funds funds funds
Notes £ £ £ €
INCOME AND ENDOWMENTS FROM
Charitable activities 3
Education and training 935,690 - 935,690 758,822
Investment income 2 9,121 - 9,121 1,053
Total 944,811 - 944,811 759,875
EXPENDITURE ON
Charitable activities 4
Education and training 866,234 - 866,234 685,064
NETINCOME 78,577 - 78,577 74,811
RECONCILIATION OF FUNDS
Total funds brought forward 815,830 - 815,830 741,019
TOTALFUNDSCARRIEDFORWARD 894,407 - 894,407 815,830

The notes form part of these financial statements

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DERWENT TRAINING ASSOCIATION

BALANCE SHEET

31 JULY 2023

2023 2022
Notes £ £
FIXED ASSETS
Tangible assets 11 729,504 744,137
CURRENTASSETS
Debtors 12 99,696 81,270
Cash at bank and in hand 391,232 319,971
490,928 401,241
CREDITORS
Amounts falling duewithin oneyear 13 (99,846) (67,464)
NETCURRENTASSETS 391,082 SSSi777.
TOTAL ASSETS LESSCURRENT LIABILITIES 1,120,586 1,077,914
CREDITORS
Amounts falling due after more than one
year 14 (226,179) (262,084)
NETASSETS 894,407 815,830
FUNDS
Unrestricted funds 894,407 815,830
TOTALFUNDS 894,407 815,830

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 17 April 2024 and were signed on its behalf by:

The notes form part of these financial statements

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DERWENT TRAINING ASSOCIATION

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations ] 118,297 154,757
Interest paid (27,515) (18,988)
Net cash provided by operating activities 90,782 135,769
Cash flowsfrom investing activities
Purchase of tangible fixed assets (15,892) (38,463)
Interest received 9121 1,053
Net cash used in investing activities (6,771) (37,410)
Cash flowsfrom financing activities
Loan repayments in year (12,750) (61,180)
Netcash used in financing activities (12,750) (61,180)
Change in cash and cash equivalents in
the reporting period 71,261 37,179
Cash and cash equivalents atthe
beginning of the reporting period 319/971 282,792
Cash and cash equivalents atthe end of
thereportingperiod 391,232 319,971

The notes form part of these financial statements

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DERWENT TRAINING ASSOCIATION

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2023

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Is|RECONCILIATION|OF|NET|INCOME|TO|NET CASH|FLOW|FROM|OPERATING|ACTIVITIES| |2023|2022| |£|Fs| |Net income|for the|reporting|period|(as|per|the|Statement|of| |Financial|Activities)|78,577|74,811| |Adjustments|for:| |Depreciation|charges|30,525|35,468| |Interest|received|(9,121)|(1,053)| |Interest|paid|27.515|18,988| |Decrease|in|debtors|(18,426)|7,632| |Increase|in|creditors|9,227|18,911| |Net|cash|provided|by|operations|118,297|154,757| |2.|ANALYSIS|OF CHANGES|IN|NET|FUNDS|

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|||||||||| |---|---|---|---|---|---|---|---|---| |At|1.8.22|Cash|flow|At|31.7.23| |£|£|3| |Net|cash| |Cash|at|bank|and|in|hand|SI9971|71,261|391,232| |319,971|71,261|391,232| |Debt| |Debts|falling|due within|1|year|(13,961)|(23,154)|(37,115)| |Debts|falling|due|after|1|year|(262,084)|35,905|(226,179)| |(276,045)|12,751|(263,294)| |Total|43,926|138,544|182,470|

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Total

The notes form part of these financial statements

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DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’, the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. There are no judgements made that have a significant effect on the amounts recognised in the financial statements

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities.

These costs have been allocated to expenditure on charitable activities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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||||||||| |---|---|---|---|---|---|---|---| |Freehold|property|-|2%oncost| |Plant|and|machinery|-|15% on|reducing|balance| |Fixtures|and|fittings|-|15%|on|reducing|balance| |Computer equipment|-|33%|on|cost|

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Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

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DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2023

ifn ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising are recognised in the statement of financial activities.

Interest-bearing loans

Interest-bearing loans are measured initially at fair value less attributable transaction costs. Subsequently to initial recognition, loans are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of financial activities, together with any interest and fees payable, using the effective interest method.

Cash at bank and in hand

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Staff costs

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

3.

INVESTMENT INCOME

INVESTMENT INCOME
2023 2022
£ £
Deposit account interest 9,121 1,053
INCOME FROM CHARITABLE ACTIVITIES
2023 2022
Activity £ £
Training fees Education and training 927,726 746,277
Employer contributions Education and training 7,789 1252
Miscellaneous income Education and training 175 57293
935,690 758,822

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DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2023

4. CHARITABLE ACTIVITIES COSTS
Direct Support
Costs (see costs (see
note 5) note 6) Totals
£ z =
Education and training 745,535 120,699 866,234
5. DIRECT COSTS OF CHARITABLE ACTIVITIES
2023 2022
£ £
Staff costs 464,364 404,920
Water rates 448 339
Insurance 9,939 8,994
Light and heat 14,000 8,838
Telephone 5993 5373
Stationery, printing and postage 7,696 7,420
Sundries 5,745 9,743
Workshop tools, consumables and training materials 33,318 24,127
Registration fees 69,683 62,128
Equipment leasing 6,321 6,854
Motor vehicle leasing 5,159 2,236
Repairs and renewals 27,525 7,369
Computer expenses 51,864 19,538
Staff training 9,074 11,886
Staff recruitment 20,369 608
Licences and subscriptions 6,010 4,772
Clothing costs 13035 605
Cleaning expenses 6,992 2,565
745,535 588,315
6. SUPPORT COSTS
Governance
Management Other costs Totals
a £ £ £
Education and training 81,764 30,525 8,410 120,699
Support costs, included in the above, are as follows:
2023 2022
Education
and Total
training activities
£ =
Travelling expenses 5,324 5,075
Advertising
Bookkeeping		 19,031
6,790		 15,759
6,231
Professional fees 23,104 8,422
Interest payable and similarcharges 27,515 18,988
Depreciation of tangible fixed assets 30,525 35,468
Auditors’ remuneration 6,870 5,640
Auditors’ remuneration for non-audit work 1,540 1,166
120,699 96,749

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DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2023

ye NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

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|||||||| |---|---|---|---|---|---|---| |2023|2022| |£|z| |Auditors'|remuneration|6,870|5,640| |Auditors’|remuneration|for non|audit|work|1,540|1,166| |Depreciation|- owned|assets|30,525|35,468|

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  1. TRUSTEES’ REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 July 2023 nor for the year ended 31 July 2022.

Trustees’ expenses

There were no trustees’ expenses paid for the year ended 31 July 2023 nor for the year ended 31 July 2022.

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|||||| |---|---|---|---|---| |2023|2022| |£|€| |Wages|and|salaries|357,006|312,298| |Social|security|costs|32;597|27,340| |Sub-contractors|65,190|56,303| |Other pension|costs|9,57)|8,979| |464,364|404,920|

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Termination benefits of £12,400 were paid during the year (2022: £Nil).

The average monthly number of employees during the year was as follows:

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2023|2022| |Charitable|activities|11|1]| |The|number|of|employees|whose|employee|benefits|(including|employer|national|insurance| |contributions,|but excluding|employer|pension|costs)|exceeded|£60,000|was:| |2023|2022| |£60,001|-|£70,000|]|-|

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The cost of key management personnel for the year was £146,820 (2022 - £136,084).

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  1. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2023

Unrestricted Restricted Total
fund funds funds
£ £ Fs
INCOME AND ENDOWMENTS FROM
Charitable activities
Education and training 758,822 - 758,822
Investment income 1,053 - 1,053
Total 759,875 - 759,875
EXPENDITURE ON
Charitable activities
Education and training 685,064 - 685,064
NETINCOME 74,811 - 74,811
RECONCILIATION OF FUNDS
Total funds brought forward 741,019 - 741,019
TOTAL FUNDS CARRIED FORWARD 815,830 - 815,830
VWs TANGIBLE FIXED ASSETS
Fixtures
Freehold Plantand and Computer
property machinery fittings equipment Totals
£ £ £ 5 a
COST
At 1 August 2022 745,000 455,961 135;253 192,185 1,528,399
Additions - . 8,989 6,903 15,892
At 31 July 2023 745,000 455,961 144,242 199,088 1,544,291
DEPRECIATION
At
1 August 2022		 89,400 392,188 112,752 189,922 784,262
Charge foryear 14,900 9,566 3,528 2,531 30,525
At 31 July 2023 104,300 401,754 116,280 192,453 814,787
NET BOOK VALUE
At 31 July 2023 640,700 54,207 27,962 6,635 729,504
At31July2022 655,600 63,773 22,501 2,263 744,137

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DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2023

12, DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

12, DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade debtors 65,412 51,684
Prepayments 34,284 29,586
99,696 81,270
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
2 £
Bank loans (see note 15) 37,115 13,961
Trade creditors 38,324 32,184
Social security and other taxes 8,129 8,615
Othercreditors 2,425 2,480
Accruals and deferred income 13,853 10,224
99,846 67,464
14. CREDITORS: AMOUNTS FALLING DUE AFTERMORETHAN ONE YEAR
2023 2022
Bank loans (see note 15) -s
226,179		 £
262,084
15. LOANS
An analysis of the maturity of loans is given below:
2023 2022
£ a
Amounts falling due within one yearon demand:
Bank loan 87,115 13,961
Amounts falling between one and two years:
Bank loan SZ11S 14,538
Amounts falling due between two and five years:
Bank loan 91,251 397271
Amounts falling due in more than five years:
Repayable by instalments:
Bankloan 97,813 208,275

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DERWENT TRAINING ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JULY 2023

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023 2022
£ £
Within one year 10,826 6,802
Between one and five years 14,748 13,183
25,574 19,985

U7 SECURED DEBTS The following secured debts are included within creditors:

2023 2022
£ £
Bank loans 263,294 276,045

The bank facilities are secured by a legal charge on the company’s land and buildings.

18. EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined contribution scheme for the benefit of certain employees, the assets of the scheme are held separately from those of the company, being invested with insurance companies.

The charge for the year represents all contributions made by the company of £9,571 (2022 £8,979).

19: RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 July 2023.

20. COMPANY STATUS

The charity is a private company limited by guarantee. The members of the company are the trustees named on page one and in the event of the charity being wound up the liability of the guarantee is limited to £5 per member.

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