OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Training 2000 Limited

2024-07-31-accounts

Tra n1ng 2 d

University of Central Lancashire Training 2000

Training 2000 Limited

Annual report & financial statements

Year Ended 3P[1 ] July 2024

Company Number 02380675

Registered Charity Number 701770

Annual report & financial statements

Contents

==> picture [451 x 176] intentionally omitted <==

----- Start of picture text -----
||| |---|---| |Legal & Administrative Details ........................................................................................................... - 1 -| |Report of the Trustees (incorporating Strategic Report) .................................................................... -|2 -| |Independent Auditor's Report .......................................................................................................... - 11 -| |Statement of Financial Activities ...................................................................................................... - 15 -| |Statement of Financial Position ........................................................................................................ - 16 -| |Cashflow Statement ......................................................................................................................... - 17 -| |Notes to the Financial Statements ................................................................................................... - 18 -|

----- End of picture text -----

Tra1n1ng 2000 L rn1ted

Legal & Administrative Details

Trustees: M Tynan (Chair - resigned 25 October 2023)
D Taylor (Chair- from 25 October 2023)
E Adia (resigned 13 September 2023)
O Mccann
T Webber
M Fernando (from 15 September 2023)
B Jones (from 15 September 2023)
Chief Executive Officer: C Stott
Secretary: I Fisher
Registered Office: Harris Building
Corporation Street
Preston
PR12HE
Principal Office: Furthergate Business Park
Harwood Street
Blackburn
Lancashire
BB1 3BD
Company Number: 02380675
Registered Charity Number: 701770
Main Bankers: Lloyds Bank PLC
PO Box 1000
Fishergate
Preston
BX1 1 LT
Solicitors: DAC Beachcroft LLP
3 Hardman Street
Manchester
M3 3HF
Auditors: KPMG
1 St Peters Square
Manchester
M2 3AE

Report of the Trustees (incorporating Strategic Report)

The trustees present their report and the audited financial statements for the year ended 31 July 2024 and confirm they comply with the requirements of the Companies Act 2006, the Charities Act 2011, the trust deed and 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).

Our Aims

Our vision is to be Lancashire's primary training provider and our mission is to deliver excellence in learning and develop outstanding talent for UK employers. Our aim is to promote and deliver a wide range of learning provision of outstanding quality with excellent progression opportunities for learners of all ages and backgrounds. We aspire, through public and private partnerships, to provide employer led provision in an excellent learning environment, delivered by highly qualified and experienced staff and high levels of support.

The objects of the Company as set out in its Memorandum of Association are to promote and advance high-quality training of persons employed or intending to be employed in industry and commerce, and to extend such training to members of the public generally.

Training 2000 was established nearly 60 years ago as a charity set up by a consortium of Lancashire businesses. On the 28th July 2017 the Charity became part of the University of Central Lancashire (UCLan) group. The organisation remains an independent charity and its Memorandum of Association and aims remain the same with the University as its sole member company.

We have built a large portfolio of clients throughout the UK by creating and delivering high quality training solutions. We deliver training programmes which address existing and emerging needs both on our own premises and at client sites. Working as a business partner we design bespoke training programmes which assist our learners to succeed in their chosen field. Our work-based learning solutions provide an effective and flexible approach which lessens the impact on resources and allows businesses to concentrate on their day-to-day challenges.

Our ethos is to admit learners from all backgrounds; an individual's economic status, age, gender, ethnicity, race, religion or disability do not form part of our assessment processes. Our organisation is committed to equality of opportunity, safeguarding and promoting the welfare of our learners.

Our Objectives

The trustees are working to a three-year business plan that sets out ambitious targets for growth, focusing on professional and technical training with clear progression pathways to higher education designed to bridge local and national skills gaps. The business plan is underpinned with a strategy to cut costs and drive efficiencies. Our position within the UCLan group gives the Charity the opportunity to align current programmes with degree level programmes and thereby provide greater value for employers and learners, and further work continues in these areas.

Whilst our strategic vision remains unchanged, the business plan is reviewed and refreshed annually to reflect the changing environment in which we operate. The trustees recognise that setting a high­ performance culture is critical to success and this is achieved through having a shared vision, values and goals. Annual Corporate Objectives linked to the business plan are agreed each year and all staff ae involved in action planning to meet these objectives.

In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance.

T n1ng 2000 Limited

Report of the Trustees (incorporating Strategic Report) continued

Strategic Report

Review of Activities and Achievements

The charity had demonstrated resilience during the COVID Pandemic, performing better than many in the sector. As the restrictions eased, the nationally recognised challenge of learners who had been delayed due to lack of access to training and assessment generated a significant impact on income. This legacy backlog is continuing to affect the business, particularly on longer programmes such as Engineering. The situation was exacerbated by an increase in staff turnover during 2022 - 2023 as a result of national the cost-of-living crisis and local skills shortages. While this picture has improved, there are areas of the business that continue to experience above average levels of staff turnover. Notably, there has been no generic uplift in apprenticeship funding values since the inception of the Apprenticeship Levy in 2017, while staff, materials and utilities have all seen marked increases in costs over the same period.

Despite the challenges highlighted, some good progress has been made. This is particularly evident through the impact of additional resource assigned to address delayed learners which has driven a 58% increase in income from learner completions. This work has also considerably reduced the historic backlog and furthermore, the trajectory indicates that a business-as-usual state will be achieved in 24/25. The Charity remains firmly focused on consolidating improvements and maintaining growth.

The charity has made demonstrable progress in addressing improvements identified within the Ofsted inspection of March 2020 whereby it was judged to be a 'GOOD' provider. The Executive and the Board are focusing on retaining this status and are implementing actions designed to improve the connectivity between operational areas, improving the learners experience and ensuring a consistent approach to teaching and learning across the organisation.

The charity's senior management team have continued to drive cost out of the business through the reduction of waste, continual review of supplier contracts and increased efficiencies. A strong focus on integration with our parent organisation UCLan has improved the finance processes and resulted in a reduction in staffing resources within our finance team. Entering into jointly procured contracts has reduced costs in a number of areas including HR, Finance and the charity's Management Information System (MIS). The structure of the business has been revised to create a leaner and more effective management team that offers greater transparency and accountability across all business activities. The structure of the organisation remains under constant review to ensure suitability and value.

We continue to be successful in benchmarking our QHSE management systems with the recognised standards of ISO9001, ISO14001 and ISO45001. Our recertification to the quality standard ISO9001 and ISO14001 is now assured until 2024 and Training 2000 has now successfully migrated its H&S standard OHSAS18001 to the new ISO45001 standard - this is the result of 18 months' work where the organisation has embedded the required changes in the Health and Safety systems in order to achieve this migration. Moving forward we are confident that the three standards described are an appropriate measure of Training 2000's commitment to strong Quality, Health, Safety and Environment Management across the company. The Charity's internal management training programme has also received national recognition winning a Princess Royal Award.

The charity's Business Development Strategy reflects the changes in funding and the requirement to have closer client relationships. As such, the charity has restructured in order to replace its existing Sales Team with Account Managers who are charged with maintaining an ongoing communication with both new and existing clients. This approach served the business well and Training 2000 has continued to grow its portfolio of large employers with organisations including Vision Express, Royal Mail, BAE, Boots, Marks and Spencer, Chubb, the NHS and Rolls Royce accessing both commercial training and Apprenticeship provision. A number of major local businesses have also returned to Training 2000 for their apprentices after a lengthy hiatus.

A key measure of performance is learner achievement rates. The legacy of recent unprecedented events is learners who have been delayed in completing their programmes and, as such, the current achievement rate across all of our Apprenticeship programmes is currently 61.3% for the

Report of the Trustees (incorporating Strategic Report) continued

2022/23 contract year. National data was not available for 2023/24 at the time of signing; however, national achievement rates were 55.3% in 2022/23.

The quality of our provision and successes of our apprentices continue to be recognised in various awards including winning The Princess Royal Award for our Management Training Programme and, once again, we have been represented by our learners and staff at World Skills events.

Financial Review

The Charity has continued to focus on delivering apprenticeships and traineeships and a streamlining staff management structure and emphasis on costs has led to a considerable reduction in overheads.

There have continued to be significant operational cost savings driven through continuous review of resources and close scrutiny of expenditure and further facilitated by the centralising and harmonisation of certain functions with our parent entity UCLan. A further donation from the latter of £1,350,000 (2023: £843,084) has provided financial security as we implement our sustainability strategy.

Overall, the Charity returned a deficit of £208,234 (2023: surplus £147,568) before actuarial gains on the pension scheme of £159,000 (2023: £499,000) and losses on disposal of fixed assets of £11,168 (2023: £60,994) resulting in a net deficit of £60,403 (2023: surplus £585,574).

Going Concern

Net assets as at 31 July 2024 were £2,224,537 excluding the pension scheme deficit of £454,120. The position of the Charity within the UCLan group provides financial security and sustainability for the future and facilitates the delivery of the Charity's long-term strategy of delivering higher level skills within the newly reformed Apprenticeship regime. The Charity has obtained a parental guarantee from UCLan to provide financial support for a period of at least 12 months from the approval of the financial statements. As such the trustees believe that the going concern basis of preparation remains appropriate. The Charity has put a strong focus on working with UCLan to maximise mutually beneficial cost savings and growth opportunities going forward.

Reserves Policy

As at the July 2024 year end, the Charity's total reserves (net of the pension scheme liability of £454,120) were £1,770,417 of which £282,968 were designated. Designated funds relate to capital grants which are released in line with the depreciation of the related assets. Other funds of £1,876,266 were represented primarily by property fixed assets.

The trustees have sought to develop a working capital policy which seeks to optimise reserves to place the Charity in a position to be able to absorb future changes in government funding in the training arena without threatening its financial stability and its ability to deliver its charitable objectives. Due to the high level of uncertainty year on year around learner numbers and therefore income generation, as well as challenges with the reliance on government policy on further education funding, the trustees have determined that the Charity will maintain total reserves equivalent to at least 90 days' revenue (based on the latest reported total in audited financial statements). This is intended to enable the Charity to continue to operate in the event that no funding was available for at least 90 days.

Total reserves held at 31 July 2024 were 28% of total revenue (2023: 33%}. This is equivalent to 105 days (2023: 119 days) and so the Charity was within policy. The Charity's position within the UCLan group also provides the Charity with financial security and enhances the Charity's ability to offer higher level apprenticeships in line with the new standards in the future and the trustees continue to aspire to build the reserves of the Charity.

T 2000 L1m1ted 1ng

Report of the Trustees (incorporating Strategic Report) continued

Pension funds

The Board has reviewed its obligations arising from employee pension funds and is satisfied that its liabilities are properly identified, planned and accounted for. The Training 2000 Retirement and Death Benefit Scheme, a defined benefit pension scheme, was closed on 1 November 2006 to new employees and future benefit accrual. The Pension Trustees have secured the agreement of the Charity Board to fund a package of measures to extinguish the pension deficit (note 21[) ] and during a prior year a buy-in transaction was completed with Partnership Life in respect of current pensioners in the scheme. Other measures will be considered in the future to further mitigate the risks associated with the deficit. The Charity also operates and contributes to a defined contribution scheme. With the introduction of Auto­ Enrolment in February 2014, all new employees are auto-enrolled into the scheme and have the option to increase their own and the Charity's contributions upon successful completion of their probationary period.

The Future

The trustees recognise the importance of delivering against the 3 year business plan and the ob[j] ectives set out therein to reach a position of self-sufficiency and future sustainability with its own investment in infrastructure and resources needed to deliver the higher level skills required by employers now and in the future. The legacy of the global pandemic and the well documented national skills crisis have set this plan back; however, the strategies within the plan remain relevant. The focus for the coming year is to maximise income through educational delivery excellence, customer retention, a fantastic learner experience and investment in business development while continuing to reduce operational costs through ongoing review and integration with UCLan where appropriate. The move to remote delivery for some of our programmes, in response to the COVID-19 pandemic, has proved to have long term benefits for some learners and the business and will therefore continue post pandemic.

Becoming part of the UCLan group has provided stability and investment for the future. Our focus continues to be to deliver high quality, high value training programmes and services that enhance our clients' ability to succeed. As part of the university structure, we have the breadth of programmes from Level 2 through to Level 6/7 that will enhance the skills and education of our learners and meet the shifting needs of employers. The group will be able to provide a focused service for high level skills for employers and provide a diverse range of academic and vocational programmes for our learners.

The core focus remains to continue to "Build a Sustainable Business". The government's Apprenticeship Reform agenda continues to present significant challenges and opportunities regarding programme and associated cashflow management but will also present significant opportunities for us to help our employers in growing their Apprenticeship programmes in line with government and local priorities. The relationship with UCLan will see the development of new income streams and a broader product range. This strategy has manifested itself in new provision including Management, Social Prescribing and Optical Assistant all of which offer clear progression routes to UCLan degree programmes and therefore added value to the group. While the programmes are in their infancy, 80% of Healthcare Apprentices have progressed to UCLan and we now have our first progressions from the Optical programme.

Principal Risks and Uncertainties

The trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial or otherwise. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reassurance that:

Report of the Trustees (incorporating Strategic Report) continued

The Company has a committee of the Board - the Governance and Audit Committee - which reviews financial reporting, internal controls, risk management, fraud, internal and external audit, safeguarding and health and safety issues. There is a Risk Register which has an action plan to deal with the strategic risks to which the Company is exposed, including operational and financial risks. There is also an effective intelligence and communication structure and continuous monitoring of the plan. On completion of the previous actuarial valuation at 31[st ] July 2020 the Pension Trustees secured the agreement of the Charity Board to fund a package of measures to extinguish the pension deficit (note 21 ), including increased annual funding contributions of £155,277 plus 3% annual inflation (applied 1 August each year) from 1 October 2021 to 31 July 2031. The Pension Trustees will continue to consider other measures to further mitigate the risks associated with the deficit. ensure that action can be taken swiftly if changes need to be made to delivery and development plans.

During the year the trustees, through the offices of the Governance and Audit Committee, have received reports from the SMT relating to risk and control. The reports have enabled the trustees to satisfy themselves that the Charity's risk, fraud, safeguarding and health and safety policies are being implemented, that significant weaknesses of control identified are being promptly addressed and on the overall adequacy and effectiveness of the Charity's system of internal control at the year-end.

The Board of trustees considers the principal risks and uncertainties facing the Charity to be as follows:

Reliance on government funding for income

As in previous years the Charity is heavily reliant on government funding through the DfE. In recent years funding has been reduced on a per learner basis and changes in the education system such as Raising the Participation Age (RPA) have put additional pressure on maintaining the numbers of learners seeking apprenticeships at 16-18 years old. With the introduction of the Employer Levy and the new tendering process for non-levy paying employers, this does present opportunities for the future in terms of growing apprenticeships and making them more affordable to deliver.

Defined Benefit Pension Scheme Liability

The Training 2000 Retirement and Death Benefit Scheme deficit is valued at £0.45m under FRS102 at 31[st ] July 2024, a decrease of £0.27m in the year.

Tra1n1ng ? 00 L1m1ted

Report of the Trustees (incorporating Strategic Report) continued

Structure Governance and Management

Governing Document

Training 2000 Limited is a company limited by guarantee, registered in England and Wales. Its governing document is its Articles of Association.

Appointment of Trustees

As set out in the Articles of Association the trustees are appointed by the Company from the sole member. The Trustees comprise the Chair and Vice Chair, who are elected every third year, and up to twelve others. All trustees give of their time freely and no remuneration or expenses was paid to them in the year.

Induction and Training of Trustees

The Company has an induction pack for new trustees with specific emphasis on Company Law and Charity Commission responsibilities. The induction checklist is reviewed regularly and updated as appropriate. Trustees are required to disclose all relevant interests and register them with the Company Secretary and in accordance with the Charity's policy they must withdraw from decisions where a conflict of interest arises.

Organisation

The Trustees administer the Charity. The Board meets at least three times per annum and there are committees for Remuneration and Governance & Audit. A Chief Executive is appointed by the trustees to manage the day-to-day operations of the Charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Board, for operational matters including finance and employment. The Chief Executive is responsible for the leadership and management of the Senior Management Team (SMT) and it is their duty to discharge the day to day operations. They meet on a weekly basis.

Related Parties

On 28 July 2017 Training 2000 Limited became part of the larger University of Central Lancashire Group Structure. The University is also a Charity and some of the Company's activities and operations are carried out through the now subsidiary Company Training 2000 Limited.

Trustees Liability Insurance

During the year the Charity provided third party liability insurance for its trustees.

Report of the Trustees (incorporating Strategic Report) continued

Attendance at Board Meetings

Trustees' and secretary's attendance at Board and Committee meetings, in relation to the number of meetings held, that they were eligible to attend during the year ended 31 July 2024 is set out below:

Board Meetings Governance & Board Members and AGM Audit Committee D Taylor 0 Brvan Jones 3/3 3/3 Michael Fernando 3/3 0/0 T Webber 3/3 N/A O McCann 3/3 3/3 I Fisher (Co Sec) 3/3 3/3 E Adia 0/3 0/3 ~~==~~ MTynan 0/3 0/3 The Environment and Corporate Social Responsibility The Charity recognises the need to develop its business in a sustainable manner. We strive to develop the business to meet the demands of the present without compromising the needs of future generations. The Charity has developed a Corporate Social Responsibility (CSR) report which outlines and documents the environmental, social and economic activities we undertake to ensure that we operate in a safe and sustainable manner. The Charity has maintained the environmental standard ISO14001 since 2008, In March 2024 the business gained re-accreditation for ISO14001, ISO9001 and ISO45001. The feedback we received from the auditors has confirmed that not only have we have we maintained the three ISO certifications that we hold, but that we have also demonstrated our capacity to continually improve This, along with our CSR underlines our commitment to managing our environmental impact. 3/3

Employment and Equality and Diversity

The Charity considers that employee involvement is essential to its continuing success and we use a variety of methods to inform, consult and involve employees. We use a range of communication tools which includes bi-monthly all employee briefings, weekly all employee communications, staff newsletters, intranet, employee forum, informal team meetings with the CEO, regular one to ones and team briefings.

During the year (Aug 23 - July 24) the actual number of people employed by the Charity was on average 142 (2023: 152.42). The annual labour turnover percentage as at the end of July 2024 for the Charity including fixed term contracts and TUPE transfers is 23% (includes 33 employees).

The Charity is committed to achieving equality through diversity and our policies and strategies recognise that all people have the right to their own distinctive and diverse identity. Promoting equal opportunities applies to both our own staff and our learners. The Charity recognises its responsibilities towards disabled persons and does not discriminate against them either in terms of job offers or career prospects.

All new staff members undertake both a departmental and company induction programme where all the Charity policies and procedures are explained. The induction also includes where employees are able to obtain support for their health and wellbeing including highlighting the Employee Assistance Programme which all employees are able to access for a wide range of support including mental health. The employee engagement activities and wellbeing of staff is part of the People Plan to improve the employee experience which includes health and wellbeing. Key members of staff engage with the

Tra1n1ng 2000 Lim ted

Report of the Trustees (incorporating Strategic Report) continued

induction programme for new staff members which includes detailed presentations, introductions to other staff members, site familiarisation and the quality and safety procedures.

Pay and Remuneration of Key Management Personnel

Remuneration of the Chief Executive Officer is agreed by the Board, SMT remuneration is agreed by the CEO.

Health, Safety and Environment

The Board ensures its legal responsibilities for Health, Safety and Environment are met. They require the CEO and senior management team to keep them regularly appraised on the status of all HSE matters.

The Board and CEO, along with the Senior Management Team on site are committed to a strong HSE management system that delivers continual improvement.

During the past year the charity has reviewed and updated its HSE policies and ensured staff are trained on all relevant HSE matters enabling them to operate the business with the objective of providing a healthy, safe and sustainable workplace for all staff and learners.

In addition to regular governance reports from the company HSE Manager throughout the year, the Board, CEO and Senior Management team receive the Annual Health Safety and Environment Management review detailing HSE performance, accident/ incident analysis and legal compliance.

The charity has a zero RID DOR target and seeks to minimise the incidence of minor accidents. Through strong Health and Safety management the Charity has seen a steady reduction in minor accidents since 2013. RIDDOR accidents have reduced to a point where the operational areas of the business have sustained just one RIDDOR incident over the last six years.

The Charity benchmarks HSE to 2 international standards:

The charity certified to the new international standard in Health and Safety management, ISO45001 in 2021 following a successful transition from the now withdrawn British Standard in Health and Safety, BSOHSAS18001, previously held since 2015.

Since 2009 the charity has continually improved its Environmental performance validating this through certification to the environmental standard ISO14001.

Benchmarking the charity against these standards with annual external auditing ensures the company HSE management systems are robust and continually improving.

Statement of Disclosure to Auditors

So far as the trustees are aware, there is no relevant audit information of which the charitable company's auditor is unaware. Additionally, the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Report of the Trustees (incorporating Strategic Report) continued

Statement of Trustees' Responsibilities in respect of the Trustees' Annual Report and the financial statements

The Trustees are responsible tor the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements tor each financial year. Under that law they are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of income over expenditure tor that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible tor keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible tor such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility tor taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

The Trustees are responsible tor the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Report of the Trustees was approved on 5 December 2024

D Taylor Chair of the Trustees

Tra1n1ng 2000 L1m1ted

Independent Auditor's Report to the Members and Trustees of Training 2000 Limited

Opinion

We have audited the financial statements of Training 2000 Limited ("the charitable company") for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Cash Flow Statement, and related notes, including the accounting policies in note 1.

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 are described below. We have fulfilled our ethical responsibilities under and are independent of the charitable company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the charitable company or to cease its operations, and as they have concluded that the charitable company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period").

In our evaluation of the trustees' conclusions, we considered the inherent risks to the charitable company's business model and analysed how those risks might affect the charitable company's financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charitable company will continue in operation.

Fraud and breaches of laws and regulations - ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

Independent Auditor's Report to the Members and Trustees of Training 2000 Limited (continued)

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not rebut the significant risk of fraudulent revenue recognition due to the historic performance of the entity potentially creating an incentive to misstate revenue.

We did not identify any additional fraud risks.

We performed procedures including:

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the trustees (as required by auditing standards) and discussed with the trustees the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities and companies legislation). We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Whilst the charitable company is subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non­ compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws.

T 1n1ng 2000 Limited

Independent Auditor's Report to the Members and Trustees of Training 2000 Limited (continued)

Other Information

The trustees are responsible tor the other information, which comprises the Report of the Trustees (incorporating Strategic Report). Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report to you if, in our opinion:

Trustees' responsibilities

As explained more fully in their statement set out on page 10, 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 tor being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC's website at www.frc.orq.uk/auditorsresponsibilities.

Independent Auditor's Report to the Members and Trustees of Training 2000 Limited (continued)

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy Cutler (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 St Peter's Square Manchester M2 3AE

18 December 2024

Traininq 200

Statement of Financial Activities Year Ended 31[s][t ] July 2024

Unrestricted Restricted Total Un restricted Restricted Total
Funds Funds Funds Funds Funds Funds
2024 2023
Notes £ £ £ £ £ £
Income:
Donations and legacies 3 1,350,000 1,350,000 843,084 843,084
Charitable activities 4 4,987,264 4,987,264 5,929,338 5,929,338
Other trading activities 5 138,469 132,367 270,836 91,620 91,620
Total Income 6,475,733 132,367 6,608,100 6,864,042 6,864,042
Expenditure on Charitable Activities:
Provision of training 6 (3,563,309) (67,064) (3,630,373) (3,691,328) (3,691,328)
Other Charitable Expenditure 6 (3,075,648) - (3,075,648)
-		 (2,918,445)
-		 -- (2,918,445)
-
Other Expenditure 6 (110,313) - (110,313) (106,701) (106,701)
Total Resources Expended 6,7 (6,749,270) (67,064) (6,816,334) (6,716,474) (6,716,474)
Net income/(expenditure) for the year (273,538) 65,303 (208,234) 147,568 147,568
Profit/(loss) on sale of tangible fixed assets 12 (11,168) - (11,168) (60,994) (60,994)
Actuarial gain on pension scheme 21 159,000 159,000
499,000
-
-		 499,000
Net Movement of Funds in Year (125,706) 65,303 (60,403) 585,574 585,574
Reconciliation of funds:
Total funds brought forward 1,830,819 - 1,830,819 1,245,245 1,245,245
Total Funds Carried Forward 1,705,113 65,303 1,770,417 1,830,819 1,830,819

The statement of financial activities includes all gains and losses recognised in the year. The accompanying notes form an integral part of these financial statements.

Statement of Financial Position Year Ended 3p[t ] July 2024

2024 2023
£ £
Fixed Assets
Tangible assets 12 2,215,662 2,496,773
Total Fixed Assets 2,215,662 2,496,773
Current Assets
Debtors 13 789,732 1,120,980
Cash at bank & in hand 14 272,363 73,017
1,062,094 1,193,997
Creditors
Amounts falling due within one year 15 (1,053,219) (1,131,498)
Net Current (Liabilities)/Assets 8,875 62,499
Total Assets Less Current Liabilities 2,224,537 2,559,272
Creditors: Amounts falling due after more than one year
Net Assets before Pension Scheme Liability 2,224,537 2,559,272
Pension Scheme Liability 22 (454,120) (728,453)
Net Assets after Pension Scheme Liability 1,770,417 1,830,819
The Reserves of the Charity
Unrestricted funds:
Designated 20 282,968 384,028
Other 19 1,876,266 2,175,244
Unrestricted Funds excluding Pension Liability 2,159,234 2,559,272
Pension Scheme Liability 21 (454,120) (728,453)
Total Unrestricted Funds 1,705,113 1,830,819
Restricted funds 65,303
Total Reserves 1,770,417 1,830,819

The accompanying notes form an integral part of these financial statements.

Approved by the Board and authorised for issue on 5 December 2024.

□ C ~~Company Registration Nu~~ mber: 02380675

T 2000 L1m1ted ng

Cashflow Statement For the Year Ended 31[st ] July 2024

2024 2023
£ £
Cash used in operating activities
Net expenditure for the year (208,234) 147,568
Adjustments for:
(lncrease)/decrease in debtors 331,248 (298,192)
lncrease/(decrease) in creditors (78,279) (88,053)
Depreciation 156,943 224,332
Difference between pension contributions and current service cost (115,333) (108,546)
Interest payable 13,324 11,707
Net cash (used in)/from operating activities 99,669 (111,184)
Cash flows from investing activities
Purchase of fixed assets
Sale of fixed assets 113,000 2,250
Net cash from/(used in) investing activities 113,000 2,250
Cash flows used in financing activities
Interest paid (13,324) (11,707)
Net cash used in financing activities (13,324) (11,707)
lncrease/(decrease) in cash and cash equivalents in the year 199,345 (120,641)
Cash and cash equivalents at the beginning of the year 73,017 193,658
Total cash and cash equivalents at the end of the year 272,363 73,017
Cash and cash equivalents
Cash in hand 272,363 73,017
Bank overdraft
272,363 73,017

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements For the Year Ended 31[st ] July 2024

1. Accounting Policies

The principle accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a. General Information

Training 2000 Limited is a company incorporated in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company's operations and its principal activities is the delivery of a range of training programmes. The company is a private company limited by guarantee.

b. Basis of Accounting

The financial statements have been prepared in accordance with 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 the Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Companies Act 2006.

Training 2000 Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. At 31 July 2024 the Charity's total net assets (excluding the pension scheme deficit of £454,120) were £2,224,537. Net current assets were £8,875.

The trustees have prepared cash flow forecasts for a period of 18 months from the date of approval of these financial statements which indicate that, taking account of severe but plausible downsides, the company will have sufficient funds, through funding from its ultimate parent, the University of Central Lancashire, to meet its liabilities as they fall due for that period.

The University of Central Lancashire has indicated its intention to continue to make available such funds as are needed by the company for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the trustees acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

Consequently, the trustees are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Further details relating to going concern have been included in the trustees report.

The financial statements are prepared in sterling, which is the functional currency of the entity.

c. Incoming Resources

Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from charitable activities, which includes income received under contract where entitlement to grant funding is subject to specific performance conditions, is recognised as earned as the related services are provided and it is probable that the income will be received and the amount can be

raIn1ng 200 1ted

Notes (continued)

measured reliably and is not deferred. Income from training represents the provision of services excluding VAT, arising solely in the UK. Income is recognised on a receivable basis.

Income received in advance of activities or provision of other specified service it is deferred until the criteria for income recognition are met.

d. Interest Receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.

e. Fund Accounting

Restricted funds are set up to account for situations where the provider has stated that the income must be used for a specific purpose.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Unrestricted funds are the balance of funds and are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity.

f. Resources Expended

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other payments are recognised when a constructive obligation arises that results in the payment being unavoidable.

Charitable activities include expenditure associated with the provision of training and include both the direct and support costs relating to these activities.

Support costs comprise the costs incurred by the company which are not direct costs of providing training but are incurred by the company in order to fulfil its charitable activities and have been allocated to activity cost categories on a basis that reflects levels of activity and usage. The bases on which support costs have been allocated are set out in note 6.

g. Fixed Assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation is provided at rates calculated to write off the cost of Tangible Fixed Assets over their estimated useful lives. The rates used on a straight line method are:

Leasehold Property 2% per annum
Property Improvements 10% per annum
Temporary Buildings 10 - 20% per annum
Plant & Machinery 10 - 33% per annum
Advanced Plant & Machinery 5% per annum
Motor Vehicles 25% per annum
Fixtures & Fittings 10 - 20% per annum
Computer Equipment 20 - 100% per annum

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable.

h. Government Grants

Furlough and Provider Relief Grants are recognised as income as received. Grants received towards the purchase of fixed assets are credited to the Statement of Financial Activities in full in the year of receipt as restricted funds. When the grant is spent it is transferred to designated funds and it is then transferred to unrestricted funds over the estimated useful life of the asset concerned. Whilst

-[19 -]

Notes (continued)

this treatment is not in accordance with FRS 102 Charity SORP, the Charity Commission has advised that this treatment is the most appropriate for charities.

i. Assets held for sale

Assets held for sale are measured at the lower of the carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale and gains or losses on subsequent re-measurements are included in the statement of financial activities.

j. Stock

Stock is valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items.

k. Pension Costs

Contributions payable to the Charity defined benefit pension scheme are assessed in accordance with actuarial advice and based on the most recent valuation of the scheme. These costs are accounted for in accordance with FRS102 Charity SORP.

Contributions payable to the Charity defined contribution pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

I. Operating Lease Rentals

The costs of operating leases are charged to the Statement of Financial Activities as they accrue.

m. Irrecoverable VAT

The majority of the Charity's turnover is exempt from VAT. However, some activities are subject to VAT and give rise to a small amount of VAT recovery. Any irrecoverable VAT is written off in the Statement of Financial Activities.

n. Financial Instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

All financial assets that are individually significant are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

2. Critical estimates and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

?000 L1 a1n1ng

Notes (continued)

Significant judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

3. Donations and Legacies

3. Donations and Legacies
2024 2023
£ £
Donation from UCLan 1,350,000 843,084
Other Donations
1,350,000 843,084
4. Incoming Resources from Charitable Activities
2024 2023
£ £
Engineering and Automotive Training 2,974,776 3,910,301
Professional, Health & Construction Services 1,650,137 1,615,535
Traineeships 362,175 407,740
Other 175 (4,238)
4,987,264 5,929,338

4. Incoming Resources from Charitable Activities

Notes (continued)

5. Other Trading Activities

5. Other Trading Activities
2024 2023
£ £
Catering Income 60,662 60,805
Other 210,174 30,815
270,836 91,620
6. Charitable Activities - Resources Expended
2024 2023
£ £
Employment Costs 2,911,510 3,001,325
Depreciation 101,681 146,111
Course Costs 770,225 901,165
Establishment Costs 234,858 194,976
General Overheads 36,561 26,773
Sundry 370,679 203,086
Direct costs 4,425,515 4,473,436
Ops & Central Recruitment 328,378 274,742
Human Resources 136,267 141,589
Health & Safety 44,040 40,304
Information Technology 128,828 178,824
Facilities & Security 359,331 328,007
Finance 215,642 122,162
Marketing 440,668 412,125
Business Assurance 478,897 481,381
Support Services 258,768 263,904
Support costs 2,390,819 2,243,038
Total Direct & Support Costs 6,816,334 6,716,474

6. Charitable Activities - Resources Expended

Included within Support Costs are depreciation charges of £55,262 (2023: £78,221)

7. Net lncome/(Expenditure) for the Year

Net income/(expenditure) is stated after charging:

Net income/(expenditure) is stated after charging:
2024 2023
£ £
Depreciation 156,943 224,332
Auditors Remuneration
- for the audit of the Charity's annual accounts 35,100 33,500

2000 Limited a,n g

Notes (continued)

8. Staff Costs

The average number of persons employed by the Charity during the period was as follows:

2024 2023
Number Number
Charitable Activities 92 99
Support 50 53
142 152
Direct Support
Staff costs comprise: Employees Employees 2024 2023
£ £ £ £
Wages & Salaries 2,529,673 1,506,830 4,036,503 4,065,107
Social Security Costs 235,534 136,316 371,848 379,844
Other Pension Costs 110,090 74,780 184,870 186,096
Agency Staff Costs 36,214 36,214 33,101
Redundancy Costs 10,849
2,911,511 1,717,924 4,629,435 4,674,997
Benefits in Kind 8,617 8,301 16,918 14,642
2,920,128 1,726,225 4,646,353 4,689,639

The number of employees whose emoluments exceeded the rate of £60,000 per annum was as follows:

£80,001 - £90,000

These employees are members of the company's group personal pension scheme. Total contributions in the year in respect of these employees were £11,500 (2023: £10,952).

The key management personnel of the Charity comprise the trustees and the Chief Executive Officer. The total employee remuneration and benefits of the key management personnel was £110,947 (2023: £106,100).

9. Interest and Other Finance Costs

2024 2023
£ £
Bank Interest & Charges 13,324 11,707
Mortgage Interest
Net Charge on Pension Scheme 49,000 51,000
62,324 62,707

Notes (continued)

10. Taxation

As the Company is a registered charity, no provision has been made for taxation on the net income for the period.

11. Transfers Between Funds

During the current year £101,060 (2023: £303,108) was transferred from designated funds to other unrestricted funds in respect of the amortisation of capital grants

12. Tangible Assets

==> picture [698 x 234] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |New| |Plant|&|Motor|Fixtures|&|Land|&| |Technology|Total| |Machinery|Vehicles|Fittings|Buildings| |Equipment| |£|£|£|£|£|£| |Cost at 1 August 2023|1,414,063|15,000|225,270|223,203|6,771,460|8,648,996| |Additions|0|0|0|0|0|0| |Disposals|(285,170)|0|0|0|0|(285,170|[) ]| |1,128,892|15,000|225,270|223,203|6,771,460|8,363,826| |Cost at 31 July 2024| |Depreciation at 1 August 2023|862,368|14,340|220,344|215,022|4,840,149|6,152,223| |Depreciation charge|45,625|660|1,937|8,182|100,539|156,943| |Disposals|(161,002)|0|0|0|0|(161,002)| |Depreciation at 31 July 2024|746,991|15,000|222,281|223,203|4,940,688|6,148,164| |Net Book value - 31 July 2024|381,901|0|2,988|0|1,830,772|2,215,662| |a| |Net Book value - 31 July 2023|551,695|660|4,926|8,181|1,931,311|2,496,773|

----- End of picture text -----

Net Book Value of Freehold Property as at 31 Jul[y ] 2024

Net Book Value of Long Leasehold Pro[p] erty as at 31 July 2024

1,830,772

1,830,772 Net Book Value of Property as at 31 July 2024

raining 2000 Limited

Notes (continued)

13. Debtors
2024 2023
£ £
Debtors from Training Fees 765,100 1,094,863
Less: Reserve for Doubtful Debts (242,165) (108,076)
522,935 986,787
Prepayments & Accrued Income 107,311 106,878
Other Debtors 113,682 4,687
Group Debtors 45,804 22,628
789,732 1,120,980
14. Cash at Bank & in Hand
2024 2023
£ £
Bank Deposit Accounts 270,896 72,412
Cash in Hand 1,467 605
272,363 73,017
15. Creditors: Amounts falling due within one year
2024 2023
£ £
Trade Creditors 93,200 68,646
Other Taxes & Social Security 159,642 128,147
Deferred Income 99,840 178,627
Accruals 225,787 269,869
Other Creditors 200,272 196,555
Group Creditors 181,980 170,093
Annual Leave Accrual 92,497 119,561
1,053,219 1,131,498

Notes (continued)

16. Deferred income

Deferred income comprises funding received for activities which straddle the year end.

2024 2023
£ £
Balance as at 1 August 178,627 168,501
Amount released to incoming resources (193,333) (220,125)
Amount deferred in year 114,546 230,251
Balance as at 31 July 99,840 178,627

17. Agency Arrangements

The Charity distributes bursary funds to learners as an agent for the Education and Skills Funding Agency (DfE). In the current financial year the Charity received £26,354 (2023: £25,664) and disbursed £17,270 (2023: £20,802) from the funds. An amount of £115,959 (2023: £106,875) is included in other creditors relating to undistributed funds potentially repayable to the DfE.

18. Financial Instruments

18. Financial Instruments
2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost:
Cash at Bank and in Hand 272,363 73,017
Trade Debtors (less provision) 522,935 986,787
Total Financial Assets 795,297 1,059,804
Financial liabilities that are debt instruments measured at amortised cost
Trade Creditors (93,200) (68,646)
Accruals (225,787) (269,869)
Total Financial Liabilities (318,987) (338,515)

ra1 2000 L1m1ted g

Notes (continued)

19. Reserves

19. Reserves
Designated Unrestricted Restricted
Funds Funds Funds
£ £ £
At 1st August 2022 687,136 1,894,109
Net incoming resources before transfers 86,574
Actuarial gain on pension 499,000
Less pension adjustments (607,547)
Transfer in respect of grant amortisation (note 20) (303,108) 303,108
At 31st July 2023 384,028 2,175,244
Net incoming resources before transfers (284,706) 65,303
Actuarial gain on pension 159,000
Less pension adjustments (274,334)
Transfer in respect of grant amortisation (note 20) (101,060) 101,060
At 31st July 2024 282,968 1,876,267 65,303

Grants towards the purchase of fixed assets are transferred to designated funds when the asset is purchased. The grants are released in line with depreciation of the assets. From 1 August 2019 bursary funding received from the Education and Skills Funding Agency has been accounted for under an agency arrangement - see note 17 for further details

Other restricted funds represent funds that the company may use for any purpose so long as it meets the aims and objectives of the company as outlined in the governing document.

20. Designated Funds

20. Designated Funds
2024 2023
£
~~-~~		 £
~~-~~
~~-~~ ~~-~~
At 1st August 384,028 687,136
Transfer in respect of grant amortisation on previous capital grants (101,060) (303,108)
At 31st July 282,968 384,028

Grants towards the purchase of fixed assets are transferred to designated funds when the asset is purchased. The grants are released in line with the depreciation of the assets.

1r

Notes (continued)

21. Pension Arrangements

The Charity currently operates the following pension schemes:

The Training 2000 Limited Retirement and Death Benefit Scheme ("the Main Scheme") - a defined benefit scheme which has been closed to new members and continuing contributions.

A Group Personal Pension Plan which is a defined contribution scheme.

The Training 2000 Limited Retirement and Death Benefit Scheme

The following calculations as at 31 July 2024 have been provided by the actuaries, First Actuarial LLP, using the projected unit actuarial cost method.

Principal actuarial assumptions used by the actuary were as follows:

2024 2024 2023 2023
% %
Rate of inflation 3.1 3.1
Rate of increase in pensions 3.1 3.1
Discount rate 5.0 5.1
Mortality rates for current and future pensioners 115%
of
CM/ Model 2023		 S3PA
CM/ Model 2023		 115%
CM/ Model 2022		 115%
of
CM/ Model 2022		 S3PA
CM/ Model 2022
with a long-term with a long-term with a long-term with a long-term
improvement rate improvement rate
of 1.25%pa of 1.25%pa
The amounts recognised in the balance sheet are as follows:
2024 2024 2023 2023
£ £
Present value of funded obligations (5,270,000) (5,302,000)
Fair value of plan assets 4,816,000 4,574,000
Net pension deficit (454,000) (728,000)

The amounts recognised in the balance sheet are as follows:

Analysis of amounts charged to the Statement of Financial Activities

Other finance costs:

Other finance costs:
Expected return on pension scheme assets (230,000) (173,000)
Interest on pension scheme liabilities 263,000 216,000
Net cost 33,000 43,000
Total charge to resources expended in Statement of Financial Activities 33,000 43,000

Tra1n1ng 2000 L nit d

Notes (continued)

21. Pension Arrangements continued

Analysis of the actuarial gains and losses shown in the Statement of Financial Activities:

2024 2023
£ £
Actuarial gains/(losses) on assets 145,000 (641,000)
Actuarial gains on liabilities 14,000 1,140,000
Actuarial gain recognised 159,000 499,000
Changes in the fair value of the defined benefit obligation are as follows:
Opening defined benefit obligation 5,302,000 6,475,000
Interest on pension scheme liabilities 263,000 216,000
Actuarial losses/(gains) (14,000) (1,140,000)
Benefits/transfers paid (281,000) (249,000)
Closing defined benefit obligation 5,270,000 5,302,000
Changes in the fair value of plan assets are as follows:
Opening fair value of plan assets 4,574,000 5,139,000
Interest income on plan assets 230,000 173,000
Actuarial gains/(losses) 145,000 (641,000)
Employer contributions 164,000 160,000
Expenses Paid (16,000) (8,000)
Benefits/transfers paid (281,000) (249,000)
Closing fair value of plan assets 4,816,000 4,574,000

Notes (continued)

21. Pension Arrangements continued

The split of assets between investment categories is as follows:

The split of assets between investment categories is as
follows:		 The split of assets between investment categories is as The split of assets between investment categories is as
2024 2024 2023 2023
£ % £ %
Equities and other assets 2,659,000 55.2 2,339,000 51.1
Cash / Liquidity 206,000 4.3 156,000 3.4
Annuities/ annuity policies 1,951,000 40.5 2,079,000 45.5
4,816,000 100 4,574,000 100
Amounts for current and previous years:
2024 2023 2022 2021 2020
£ £ £ £ £
Defined benefit obligation (5,270,000) (5,302,000) (6,475,000) (8,234,000) (8,437,000)
Plan assets 4,816,000 4,574,000 5,139,000 6,019,000 5,687,000
(454,000) (728,000) (1,336,000) (2,215,000) (2,750,000)

The cumulative amount of actuarial losses recognised since 1 August 2005 are £832,000.

Scheme assets as at 31 July 2024 have been valued at bid price.

Following the closure of the scheme on 1 November 2006 the only future contributions are recovery plan payments made by the employer towards past service costs. Following the conclusion of the scheme actuarial valuation as at 31 July 2021 the trustees agreed to increase deficit funding contributions going forward, with contributions set at £164,733 for the year ended 31 July 2024 and increasing at 3% per annum thereafter (2023: £159,935).

In June 2023, the High Court handed down a decision in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others relating to the validity of certain historical pension changes due to the lack of actuarial confirmation required by law. In July 2024, the Court of Appeal dismissed the appeal brought by Virgin Media Ltd against aspects of the June 2023 decision. The conclusions reached by the court in this case may have implications for other UK defined benefit plans. The Company and pension trustees are currently considering the implications of the case for the Training 2000 Limited Retirement and Death Benefit Scheme. The defined benefit obligation has been calculated on the basis of the pension benefits currently being administered, and at this stage the directors do not consider it necessary to make any adjustments as a result of the Virgin Media case.

The Group Personal Pension Plan

In addition to the above the Charity contributes to a Group Personal Pension Plan on behalf of employees. The total pension cost for the Charity in respect of this plan was £184,870 (2023: £186,096). Included in other creditors as at 31 July 2024 is an amount of £29,711 (2023: £83,770) in relation to the pension payments for July 2024.

ra1 ir 2000 g L1rr 1ted

Notes (continued)

22. Analysis of Net Assets Between Funds

Other
Designated Unrestricted Restricted
Funds Funds Funds
£ £ £
Funds at 31 July 2024 are represented as
follows:
Tangible assets 282,968 1,867,391 65,303
Debtors 789,732
Cash at bank and in hand 272,363
Creditors falling due within one year (1,053,219)
Pension Scheme Liability (454,120)
282,968 1,422,145 65,303
Other
Designated Unrestricted Restricted
Funds Funds Funds
£ £ £
Funds at 31 July 2023 were represented as
follows:
Tangible assets 384,028 2,112,745
Debtors 1,120,980
Cash at bank and in hand 73,017
Creditors falling due within one year (1,131,498)
Pension Scheme Liability (728,453)
384,028 1,446,791

23. Financial Commitments

The Charity had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

Payments due 2024 2023
£ £
Less than one year 96,524 109,541
Between two and five years 221,215 312,784
Over five years 4,072,398 4,419,788
4,390,138 4,842,113

Notes (continued)

24. Analysis of Changes in Net Debt

24. Analysis of Changes in Net Debt
At 1 Aug At 31
2023 Cash flow July 2024
£ £ £
Cash at bank and in hand 73,017 199,345 272,363
Total 73,017 199,345 272,363

25. Related Party Transactions

In accordance with section 33.1 a of FRS102, "Related Party Disclosures", the Company is exempt from disclosing details of arrangements with other companies in the University of Central Lancashire group.

Due to the nature of the Company's operations and the composition of the Board, being drawn frorn local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the Board may have an interest. Any transactions involving organisations in which a member of the Board may have an interest are conducted at arms-length. No transactions were identified which were required to be disclosed.

No Board member has received any remuneration/waived payments/expense payments from the company during the year in their capacity as a Board member.[(] 2023[- ] none[)] .

26. Ultimate parent company and parent undertaking of larger group of which the company is a member

With effect from 28 July 2017 the company has been a subsidiary undertaking of the University of Central Lancashire Higher Education Corporation incorporated in England and Wales. The ultimate parent company is the University of Central Lancashire Higher Education Corporation, incorporated in England and Wales.

The largest and smallest group in which the results of the company are consolidated is that headed by the University of Central Lancashire Higher Education Corporation. The consolidated accounts of this company may be obtained from:

University Chief Finance Officer University of Central Lancashire Harris Building Preston PR12HE

The University of Central Lancashire Higher Education Corporation is an exempt charity under the terms of the Charities Act 20 11.