Tydfil Training Consortium Ltd Limited by guarantee
Annual Report and
Financial Statements for the year ended
31 July 2022
Tydfil Training Consortium Ltd Company Registration No: 02472331
Annual Report and Financial Statements for the year ended 31 July 2022
| Legal and Administrative Information | 3 |
|---|---|
| Directors’ Report | 4 - 7 |
| Statement of Directors’ responsibilities | 8 |
| Independent Auditor’s report to the members of Tydfil Training Consortium Limited | 9 - 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Cash flow Statement | 15 |
| Notes to the Accounts | 16 - 21 |
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Legal and administrative Information
Status
The company was incorporated on 20 February 1990 as a company limited by guarantee (company number 02472331) and is registered as a charity (charity number 702622).
The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the board of directors are elected at the Annual General Meeting (AGM) to serve a period of three years, subject to ratification at each AGM. The directors of the company are its trustees for the purpose of charity law.
Directors and Trustees
The existing directors and those who held office during the year and up to the date of signing the annual report and financial statements are given below:
Mrs K N Burns (Chair) Mr A R Whitcombe Ms C J Thomas (Resigned 10 May 2022) Mrs J A Bellamy (Appointed 1 August 2022) Ms K S Fowler Ms L M Thomas Mr P Gray (Chief Executive Officer)
No payments have been made to or on behalf of the above except for Mr P Gray (Chief Executive Officer) whose remuneration is included in Note 3.
Company Secretary
Dr G E Taylor (nee Jones) (Resigned 31 December 2021)
Mrs L C FitzGerald (Appointed 6 January 2022)
Registered Office & Headquarters
William Street Building, High Street, Merthyr Tydfil, CF47 8AP
Independent Auditors
KPMG LLP, 66 Queen Square, Bristol, BS1 4BE
Solicitors
JNP Legal, 1 High Street, Nelson, Merthyr Tydfil, CF46 6EU
Bankers
Barclays Bank plc, 47 High Street, Merthyr Tydfil, CF47 8DL
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Directors’ report for the year ended 31 July 2022
The directors present their report and the audited financial statements of Tydfil Training Consortium Ltd, (known as ‘the Company’) for the year ended 31 July 2022. The financial statements have been prepared to comply with the Companies Act 2006 and the ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounting in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (SORP)’ and in accordance with applicable accounting standards.
Principal activities
The charitable objects of Tydfil Training Consortium, Ltd are to support individuals and the community to achieve success in their educational, employability and enterprise goals in the South Wales area.
The directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Tydfil Training Consortium Ltd (TTC) is a wholly owned subsidiary of The College Merthyr Tydfil, part of the University of South Wales Group and the principal activities are the provision of Work Based Learning and Employability opportunities as part of the QSA (Cardiff & Vale College) Apprenticeship group and ACT JGW+ Consortium. Additionally, Enterprise Support is delivered jointly under a service level agreement to Merthyr Tydfil County Borough Council and includes, from January 22 Community Regeneration Funding Grant and Wales Council for Voluntary Action (WCVA) Active Inclusion Fund for the Merthyr Tydfil Enterprise Centre (MTEC), operated by TTC. Additionally, we deliver the Restart Programme, for Serco, contracting for The Department for Work & Pensions (DWP).
Business review and future developments
During the year, the Board agreed an updated five-year strategic plan which articulates how Tydfil Training Consortium Ltd will develop. The 2021/22 financial year was Tydfil Training Consortium’s fourth year of operation as a wholly owned subsidiary of the College Merthyr Tydfil. Tydfil Training Consortium’s strategic priorities have been aligned to those of the college and are:
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To become the highest performing training provider in Wales
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To become known by employers for our innovation and responsiveness, with an offer that facilitates progression into apprenticeships, or for employers to enhance their skills.
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Learners and staff will enjoy a safe, supportive and inclusive environment.
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Support collaborative partnerships of local and regional stakeholders, leading to enhanced opportunity and progressions for all.
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Have effective HR, financial and support strategies that facilitate growth, development and investment to provided inspirational, enthusiastic and passionate training and assessment.
Results
The company’s surplus for the year ended 31 July 2022 was £246,066 (2021: surplus £188,019).
The Companies cash and liquidity positions remained strong throughout the year, with year-end cash balances exceeding target with a healthy current ratio (current assets to current liabilities).
Going Concern
The financial statements have been prepared on a going concern basis which the trustees consider to be appropriate for the following reasons. The charity reported a cash inflow of £552,755 during the period. Forecasts for 2022/23 currently show an expected surplus of £41,000. This represents a conservative estimate which has been made based on the continuing effects of the pandemic and changes to Welsh Government contracts during the year of which the impact of this is unknown . The trustees have prepared a medium-term financial plan, including cashflow forecasts for the going concern period, being at least 12 months from the date of approval of these financial statements, which indicate that, taking account of severe but plausible downsides, including changes arising from the Covid-19 pandemic, the company will have sufficient funds to meet its liabilities as they fall due for that period.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Directors’ report for the year ended 31 July 2022 (continued)
The trustees are of a view that their actions to improve the surpluses within the company and being part of the University of South Wales group, the future of the charity is secured and therefore on that basis is a going concern.
Key Performance Indicators
The following two key performance indicators (KPIs) are relevant when assessing performance for the year. The KPI’s are derived from the five-year Strategic plan and evaluated and reported against national comparators:
i) Surplus: £246,066 (2021: surplus £188,019)
iii) Current ratio: 3.3 (2021: 10.9)
Participant Engagement: Learner number in JGW+, Adult, Apprenticeship and Mtec Enterprise registration routes remains strong.
Quality: Learner outcomes remained strong when viewed against the circumstances and influence of post pandemic. Enterprise outcomes have been independently evaluated by Wavehill Consultancy.
Health & Safety: Tydfil Training Consortium, as part of its Work Based learning consortium received a grade of excellent. In addition to supporting internal arrangements, we have also grown the commercial training arm in respect to Health & Safety during the year.
Principal risks and uncertainties
Outlined below are the principal risks facing Tydfil Training Consortium. Not all the factors are wholly within our control. Other factors besides those listed below may also adversely affect the business and are included in our overarching risk register.
Post Covid-19 Pandemic
The impact of the coronavirus pandemic has created significant uncertainty and disruption in the economy and especially to the Worked Based Learning Sector (WBL). It brought many financial and operational challenges which we overcame. We aimed to mitigate risk through a focus on fundamentals of financial management ensuring sound cost management, whilst maintaining exceptional customer service.
Government funding
Tydfil Training Consortium relies considerably on continued Government funding. Our Apprenticeship contract renewed in August 2021, still with Cardiff & Vale College as the lead. Our new Traineeship provision now called JGW+ rolled out in April 2022. Recruitment and progression are monitored closely under the new contract requirements, once again with our partners at ACT . We continue to deliver the DWP Restart Programme for Serco. We were successful in our bid to deliver funding under Community Regeneration Fund commencing January 2022 supporting Mtec and Enterprise.
Financial risk management
Tydfil Training Consortium is committed to exhibiting best practice in all areas of financial risk management and corporate governance, fully adhering to the principles and policies set out in the Governance Code of Practice and General Principles.
Tydfil Training Consortium’s Board of Directors is responsible for the system of internal control and for the financial risks. The register is regularly reviewed by senior management and the Board. The risk register identifies the key risks, the likelihood of those risks occurring, their potential impact on the organisation and the actions being taken to reduce and mitigate the risks. Risks are prioritised using a scoring system that is consistent within the group Tydfil Training Consortium’s risk management process is consolidated into the College Merthyr Tydfil (parent entity) whose internal control guidance adheres to the combined code as amended by the British Universities Finance Directors Group. As part of their induction new Directors are provided with an understanding of the charities policies and procedures and are offered ongoing training to ensure that their knowledge remains current.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Directors’ report for the year ended 31 July 2022 (continued)
Reserve Policy
Tydfil Training Consortium Ltd is aware of the need to secure its viability beyond the immediate future. As such, we recognise the importance of reserves in the financial stability of any organisation and ensure that there are adequate reserves to support its core activities and to invest for the future needs of our customers. The reserves which we retain can be categorised as follows:
Capital Reserves – To provide funds to meet the current and future capital spend requirements.
Strategic Reserve – To meet the cost requirements of strategic initiatives and growth as per our strategic plan.
It is our intention to continue to generate reserves through annual operating surpluses.
The Board of Directors met four times during the reporting period. In terms of audit arrangements, whilst a separate Tydfil Training Consortium Audit Committee has not been established, all audit reports and reviews and other information relating to the company are formally received by the University of South Wales’ Audit Committee which meets four times per year.
Based on the strategic plan, Tydfil Training Consortium Board undertakes a comprehensive review of the risks to which the College is exposed. Systems and procedures are reviewed and investigated, including specific preventative actions which should mitigate any potential impact on the Company. The internal controls are then implemented, and the subsequent year’s appraisal will review effectiveness and progress against risk mitigation actions. In addition to the annual review, the leadership team will also consider any risks which may arises as a result of a new area of work being undertaken by Tydfil Training Consortium.
Tydfil Training Consortium will continue to explore alternative sources of income both in collaboration with partners and in its own right. This risk is mitigated in a number of ways:
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Funding derived though a number of direct contractual arrangements;
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By ensuring that Tydfil Training Consortium is rigorous in delivering high quality training and skills;
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Considerable focus and investment are placed on maintaining and managing key relationships with the various funding bodies and potential prime contractors; and
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Ensuring Tydfil Training Consortium is focused on those priority sectors which will continue to benefit from public funding.
Dividends
The company is limited by guarantee. The directors do not recommend the payment of a dividend in respect of the year ended 31 July 2022 (2021 – £nil).
Summary of the Structure of Corporate Governance
Tydfil Training Consortium’s Board of Directors comprises of members appointed in accordance with the Articles of Government. The Chair of the Board is separated from the role of the Chief Executive. Those matters specifically reserved to the Board for decision are set out in the Articles of Government. The Board holds to itself the responsibilities for the ongoing strategic direction, the effective and efficient use of resources and the approval of major developments and receives regular reports from senior management.
The Board meets four times a year and is represented on The College Merthyr Tydfil’s Board of Directors and in the College’s Executive Meetings. The College is represented at the University of South Wales Group Committees (Finance and Resources, Human Resources and Audit).
Tydfil Training Consortium is committed to exhibiting best practice in all aspects of corporate governance. This summary describes the manner in which the organisation has applied the principles set out in the UK Corporate Governance Code issued by the Financial Reporting Council in June 2010. Its purpose is to help the reader of the annual report and financial statements understand how the principles have been applied. In the opinion of the Board, the organisation complies with all of the provisions of the Code, in so far as they apply to the sectors, and it has complied throughout the year ended 31 July 2022 and up to the date of signing the annual report and financial statements.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Directors’ report for the year ended 31 July 2022 (continued)
Employees
Applications for employment by disabled persons are always fully considered, taking into account the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming
disabled, every effort is made to ensure that their employment with the company continues, and the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not
suffer from a disability. To this end, Tydfil Training Consortium has attained the DWP “Disability Confident” accreditation at Level 2.
Consultation with employees or their representatives has been undertaken, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Statement of Directors' responsibilities 31 July 2022
The directors are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for 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 directors 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 for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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assess the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
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use 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.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for 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 for 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.
Directors’ indemnities
The company purchased and maintained throughout the financial year directors’ and officers’ liability insurance.
This was also in force at the date of approval of the annual report and financial statements.
Provision of information to auditors
In the case of each director in office at the date the directors’ report is approved, the following applies:
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(a) so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and
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(b) he/she has taken all the steps that ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
Independent Auditors
KPMG LLP have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.
By order of the board
Company secretary Mrs L C FitzGerald
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Independent auditor’s report to the members of Tydfil Training Consortium Limited
Opinion
We have audited the financial statements of the Tydfil Training Consortium Limited (“the charitable company”) for the year ended 31 July 2022 which comprise the Statement of Financial Activities, the Reconciliation of Funds, the Balance Sheet, the Cash Flow Statement and related notes, including the accounting policies in note 1.
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company’s affairs as at 31 July 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities 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 directors 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 directors’ 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:
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we consider that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
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we have not identified, and concur with the directors’ assessment that there is not, a material uncertainty related 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 the going concern period.
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:
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Enquiring of the directors as to the company’s high-level policies and procedures to prevent and detect fraud and the company’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud.
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Reading Board minutes.
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Using analytical procedures to identify any unusual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Independent auditor’s report to the members of Tydfil Training Consortium Limited (continued)
As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that revenue is recorded in the wrong financial period and the risk that management may be in a position to make inappropriate accounting entries.
We did not identify any additional fraud risks.
In determining the audit procedures, we took into account the results of our evaluation and testing of the operating effectiveness of the company wide fraud risk management controls
We also performed procedures including:
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Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included journals made to unrelated accounts, those made to unusual or seldom-used accounts, entries containing particular words in the description and postings made by individuals who do not typically make journal entries.
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Inspecting cash receipts in the period prior to and following 31 July 2022 to verify revenue had been recognised in the correct accounting period.
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 directors (as required by auditing standards), from inspection of the company’s regulatory and legal correspondence and discussed with the directors 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.
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), charities legislation, distributable profits legislation, taxation legislation and pensions legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Whilst the 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 noncompliance 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 noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
Other information
The directors are responsible for the other information, which comprises the Trustees' Annual 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:
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Independent auditor’s report to the members of Tydfil Training Consortium Limited (continued)
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we have not identified material misstatements in the other information;
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in our opinion the information given in the Trustees' Annual Report, which constitutes the directors’ report for the financial year, is consistent with the financial statements; and
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in our opinion that report has been prepared in accordance with the Companies Act 2006.
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:
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the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
We have nothing to report in these respects.
Directors’ responsibilities
As explained more fully in their statement set out on page 8, 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; 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.org.uk/auditorsresponsibilities.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Independent auditor’s report to the members of Tydfil Training Consortium 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.
Rees Batley (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
3 Assembly Square Britannia Quay Cardiff CF10 4AX
20 January 2023
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Statement of Financial Activities for the year ended 31 July 2022 incorporating the income and expenditure account
| Note | 2022 | 2021 |
|
|---|---|---|---|
| £ | £ |
||
| Income | |||
| from: | |||
| Charitable activities | 2 | 2,085,607 | 1,391,224 |
| Total Income | 6 | 2,085,607 | 1,391.224 |
| Expenditure on: | |||
| Charitable activities | 5 | (1,839,541) | (1,203,205) |
| Net Income for the period | 246,066 | 188,019 |
No tax was payable on the activities of the charity
The funds relate to unrestricted funds and there has been no movement in the restricted funds.
Reconciliation of Funds
| Unrestricted | Restricted | 2022 | 2021 |
|
|---|---|---|---|---|
| Funds | Funds | |||
| £ | £ | £ | £ |
|
| Total funds brought forward | 991,290 | 1,600 | 992,890 | 804,871 |
| Net movement of funds | 246,066 | - | 246,066 | 188,019 |
| At 31 July | 1,237,356 | 1,600 | 1,238,956 | 992,890 |
The profit for the financial year, £246,066 (2021: £188,019) is dealt with in the statement of financial activities of Tydfil Training Consortium Ltd.
The restricted fund is made up of a donation received for scholarships paid from the Joe Jonathan Memorial.
The notes on pages 16 to 21 form part of these Accounts.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Balance Sheet as at 31 July 2022
| 2022 | 2021 |
||
|---|---|---|---|
| £ | £ |
||
| Note | |||
| Property, plant and equipment | 7 | 415,249 | 398,919 |
| 415,249 | 398,919 |
||
| Current assets | |||
| Debtors | 8 | 201,441 | 168,101 |
| Cash at bank and in hand | 1,144,916 | 592,161 |
|
| 1,346,357 | 760,262 |
||
| Creditors | |||
| Amounts falling due within one year | 9 | (406,011) | (69,371) |
| Net current assets | 940,346 | 690,891 |
|
| Creditors | |||
| Amounts falling due after one year | 10 | (116,639) | (96,920) |
| Net Assets | 1,238,956 | 992,890 |
|
| Funds | |||
| Restricted Funds | 1,600 | 1,600 |
|
| Unrestricted Funds | 1,237,356 | 991,290 |
|
| Total funds | 1,238,956 | 992,890 |
and were signed on its behalf on that date by:
Mrs K N Burns Chairman
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Cash flow statement for the year ended 31 July 2022
| 2022 | 2021 |
||
|---|---|---|---|
| Note | £ | £ |
|
| Cash flow from operating activities | |||
| Surplus for the financial year | 246,066 | 188,019 |
|
| Operating surplus | 246,066 | 188,019 |
|
| Adjustment for non-cash items | |||
| Depreciation | 7 | 26,278 | 18,660 |
| Deferred capital grant release | (12,424) | - |
|
| Increase in Debtors | 8 | (33,340) | (10,699) |
| Increase/(Decrease) in Creditors | 9,10 | 326,175 | (55,691) |
| Net cash inflow from operating activities | 552,755 | 140,289 |
|
| Cash flow from investing activities | |||
| Capital grant receipts | 42,608 | - |
|
| Payments made to acquire fixed assets | 13 | (42,608) | - |
| Net cash inflow from investing activities | - | - | |
| Increase in cash and cash equivalents in the year | 552,755 | 140,289 |
|
| Cash and cash equivalents at beginning of the year | 592,161 | 451,872 |
|
| Total cash and cash equivalents at end of year | 1,144,916 | 592,161 |
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Notes to the Accounts for the year ended 31 July 2022
1. Statement of Accounting policies
Basis of preparation
The financial statements of the charitable company, which is a public benefit entity are prepared in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom, including the Charities SORP 2019 and FRS102: The Financial Standard applicable in the UK and Republic of Ireland. By exception, capital grants are accounted for under the Further and Higher Education SORP 2019, using the accruals model. This follows the accounting treatment adopted by the company’s parent undertaking, Merthyr Tydfil College Limited. The principal accounting policies, which have been applied consistently throughout the year, are set out below.
Going concern
The financial statements have been prepared on a going concern basis which the trustees consider to be appropriate for the following reasons. The charity reported a cash inflow of £552,755 during the period. Forecasts for 2022/23 currently show an expected surplus of £41,000. This represents a conservative estimate which has been made based on the continuing effects of the pandemic and changes to Welsh Government contracts during the year of which the impact of this is unknown . The trustees have prepared a medium-term financial plan, including cashflow forecasts for the going concern period, being at least 12 months from the date of approval of these financial statements, which indicate that, taking account of severe but plausible downsides, including changes arising from the Covid-19 pandemic, the company will have sufficient funds to meet its liabilities as they fall due for that period.
The trustees are of a view that their actions to improve the surpluses within the company and being part of the University of South Wales group, the future of the charity is secured and therefore on that basis is a going concern.
Income from charitable activities
Income from charitable activities, which excludes value added tax, represents the invoiced value of services provided during the year together with income from various Government grants. Income is recognised on an accruals basis and included to the extent of the completion of the contract or service concerned; any payments received in advance of such performance are recognised in deferred income within the balance sheet as liabilities.
Government grants
Government grants in respect of income are credited to income from charitable activities in the period to which they relate. Capital grants are credited to a deferred capital grant account and are then released to the statement of financial activities over the useful lives of the assets to which they relate.
Foreign Currency
All monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the statement of financial position date unless there is a contracted exchange rate. Exchange differences are taken into account in arriving at the operating profit.
Property, Plant and Equipment
Property, plant and equipment is stated at historic purchase cost less accumulated depreciation. The cost of property, plant and equipment is the purchase cost, together with any incidental costs of acquisition. Depreciation is calculated to write off the cost of property, plant and equipment, less their estimated residual values, on a straight-line basis over the expected useful economic life of the assets concerned.
The principal rates used for this purpose are: Leasehold Property Length of the Lease Freehold Property 2% straight line basis Equipment 33% straight line basis Vehicles 25% reducing balance
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Notes to the Accounts for the year ended 31 July 2022 (continued)
Statement of Accounting Policies (continued)
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount paid after taking account of any discounts due.
Cash and cash equivalents
Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.
Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of a change in value.
Creditors and Provisions
Creditors and Provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discount due.
Pensions
The company operates a defined contribution pension scheme in accordance with the auto enrolment guidelines. This is in addition to the contributions to stakeholder pensions on behalf of certain employees.
Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.
Leasing and hire purchase commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the charity, are capitalised in the balance sheet, and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability.
The interest element of the rental obligation is charged to the Statement of Financial Activities over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Rentals paid under operating leases are charged as expenditure on a straight-line basis over the lease term.
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Notes to the Accounts for the year ended 31 July 2022 (continued)
| 2. Income resources from activities | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Provision of vocational and Work Based learning | 1,774,111 | 1,358,074 |
| Other Income | 14,785 | 33,150 |
| Government Grants | 296,711 | - |
| Total | 2,085,607 | 1,391,224 |
| 3. Staff Costs | ||
| 2022 | 2021 | |
| £ | £ | |
| Salaries | 750,487 | 653,091 |
| Social security costs | 60,448 | 51,197 |
| Other Pension costs | 20,687 | 18,580 |
| Total | 831,622 | 722,868 |
| Average staff numbers analysed by function | ||
| 2022 | 2021 | |
| Number | Number | |
| Management | 5 | 5 |
| Delivery & Administration | 28 | 27 |
| Total | 33 | 32 |
Key Management Personnel
Key Management personnel are those persons having authority and responsibility for planning, directing and controlling the activities. Staff costs includes remuneration paid to key management personnel.
| 2022 | 2021 | ||
|---|---|---|---|
| £ | £ | ||
| Key | Management Personnel remuneration | 148,321 | 133,110 |
No payments have been made to or on behalf of the trustees except for Mr P Gray (Chief Executive Officer) whose remuneration in included in this Note.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Notes to the Accounts for the year ended 31 July 2022 (continued)
4. Analysis of expenditure
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Trainee costs | ||
| • Allowances & Expenses |
55,670 | 113,664 |
| • Training & Tuition Fees |
279,826 | 135,720 |
| • Travelling Expenses |
1,878 | 956 |
| Agency costs | 232,102 | - |
| Grant related expenditure | 149,083 | - |
| Management Fees | 50,000 | 50,000 |
| Repairs & maintenance | 32,170 | 20,840 |
| Professional fees & subscriptions | 26,136 | 27,600 |
| Utilities, Rent & Rates | 61,795 | 56,048 |
| Telephones | 10,755 | 9,616 |
| Insurance | 3,835 | 3,286 |
| Advertising | 5,435 | 5,439 |
| Printing & Stationery | 9,012 | 8,033 |
| Travel | 12,646 | 3,616 |
| Depreciation | 26,278 | 18,660 |
| Miscellaneous expenses | 51,298 | 26,859 |
| Total | 1,007,919 | 480,337 |
| 5. Cost of Sales |
||
| 2022 | 2021 | |
| £ | £ | |
| Staff Costs | 831,622 | 722,868 |
| Other Expenditure | 1,007,919 | 480,337 |
| Total | 1,839,541 | 1,203,205 |
| 6. Profit on ordinary activities before taxation | ||
| Profit on ordinary activities before taxation is stated after charging: | 2022 | 2021 |
| £ | £ | |
| External auditor’s remuneration in respect of audit services | 3,730 | 3,552 |
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Notes to the Accounts for the year ended 31 July 2022 (continued)
7. Property, plant, and equipment:
| Leasehold | Freehold | General |
Vehicles | Total | |
|---|---|---|---|---|---|
| Property | Property |
Equipment |
|||
| £ | £ | £ | £ | ||
| Cost or valuation | |||||
| At 1 August 2021 | 136,220 | 660,213 | 204,600 |
14,663 | 1,015,696 |
| Additions | - | - | 42,608 | - | 42,608 |
| At 31 July 2022 | 136,220 | 660,213 | 247,208 |
14,663 | 1,058,304 |
| Accumulated depreciation | |||||
| At 1 August 2021 | 41,117 | 358,407 | 204,600 |
12,653 | 616,777 |
| Charge for the year | 2,771 | 15,218 | 7,786 |
503 | 26,278 |
| At 31 July 2022 | 43,888 | 373,625 | 212,386 |
13,156 | 643,055 |
| Net book value at 31 July 2022 | 92,332 |
286,588 | 34,822 |
1,507 | 415,249 |
| Net book value at 31 July 2021 | 95,103 | 301,806 | - |
2,010 | 398,919 |
| 8. Debtors |
|||||
| 2022 | 2021 | ||||
| £ |
£ | ||||
| Trade debtors | 136,775 | 137,130 | |||
| Amounts owed by group undertakings | 56,151 | 20,009 | |||
| Other debtors | 1,250 | 2,750 | |||
| Prepayments and accrued income | 7,265 | 6,987 | |||
| VAT | - | 1,225 | |||
| Total | 201,441 | 168,101 |
Amounts owing by group undertakings are unsecured, interest free and repayable on demand. It is expected that these amounts will be received within the next 12 months.
9. Creditors: Amounts falling due within one year
| 2022 | 2021 |
|
|---|---|---|
| £ | £ | |
| Trade creditors | 8,781 | 3,015 |
| Amounts owed to group undertakings | 86,012 | 10,935 |
| Deferred capital grants | 18,495 | 4,292 |
| Accruals and deferred income | 273,986 | 47,113 |
| Other taxes and social security | - | 4,016 |
| VAT | 18,737 | - |
| Total | 406,011 | 69,371 |
Amounts owing to group undertakings are unsecured, interest free and repayable on demand.
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Tydfil Training Consortium Ltd Company Registration No: 02472331
Notes to the Accounts for the year ended 31 July 2022 (continued)
10. Creditors: Amounts falling due after one year
| 2022 | 2021 |
|||
|---|---|---|---|---|
| £ | £ | |||
| Deferred capital grants | 116,639 | 96,920 | ||
| Total | 116,639 | 96,920 | ||
| 11. | Amounts payable under operating lease obligations | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Lease | obligations payable | |||
| Payable during the year | 5,647 | 5,063 | ||
| Within | two to five years | 8,748 | 8,748 | |
| Total | 14,395 | 13,811 |
12. Commitments and contingencies
There were no material contingencies or capital commitments at 31 July 2022 or 31 July 2021.
13. Related Parties
Tydfil Training Consortium is a wholly owned subsidiary of Merthyr College Limited and is included in the consolidated financial statements of the University of South Wales, which are publicly available from University of South Wales, Pontypridd, Rhondda Cynon Taff, CF329 1DL. The company is exempt under the terms of FRS 102 from disclosing related party transactions with entities that are part of the University of South Wales. There have been no other related party transactions that have not formed part of the University of South Wales Group Financial Statements.
All transactions involving organisations in which a member of the Board may have an interest, are conducted in accordance with the Company’s financial regulations and normal procurement procedures. The University of South Wales maintains a Register of Interests for members of the Board.
14. Ultimate parent undertaking
The immediate parent undertaking is Merthyr Tydfil College Limited, a Further Education Corporation. Merthyr Tydfil College Ltd control the charity by virtue that they can appoint trustees to the board. The results of the company have been incorporated in the University of South Wales’ consolidated financial statements, which forms the largest and smallest group for which the company’s financial statements are consolidated and is the ultimate controlling party. Copies of the University’s financial statements are available from the following address:
University of South Wales Pontypridd Rhondda Cynon Taff CF37 1DL
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