The trustees present their annual report and financial statements for the year ended 31 July 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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) (effective 1 January 2019)".
The company is a charity and exists to maintain a training centre and to provide and support courses of study and training for students, with a view to securing appointments or promotion and obtaining other professional qualifications. To achieve this, the charitable company operates a variety of training projects.
Our mission is:
To benefit the public by maintaining a training centre and to provide and support courses and training for learners, with a view to them securing appointments or promotion and obtaining vocational qualifications.
It is also to deliver a high-quality curriculum to all our learners by offering them learning that is inclusive, innovative and inspiring, which allows them to develop their skills and confidence now and for their future. We work with our employers and communities to ensure our offer brings economic and social value to Rochdale and beyond.
For the period of the plan, which covers the period to 31st July, 2023, our strategic objectives were:
To increase apprenticeships from 279 to 324.
To source other funding streams e.g. Princes Trust, GMCA - Skills Bootcamp, AEB.
To maintain commercial training and income directly from employers by offering a more holistic service, in order to reduce dependency on government funding.
To maximise participation, retention, success and timeliness and progression rates and increase the number of distinctions.
To raise the standards of the key learner experiences and further improve teaching and learning i.e. 95% of staff observations meeting the required standard.
To achieve Outstanding Ofsted inspection grades.
To improve our service and reputation within industry.
To broaden our market base.
To continue to build on the public services market and our relationship with the Local Authority.
To maintain long term financial viability and aim for an income of £2.6m and a £69k surplus.
To raise the standing of Technical Education and Skills.
To grow Traineeships and pre-employed (especially English and maths).
To continue to promote apprenticeships and other learning opportunities to under-represented groups.
To improve our building and resources for learners and staff, including classroom and office space, ILT and web-based learning resources.
To deliver more Apprenticeships Standard subjects.
Our apprenticeship starts are 246 for 2022/23, below expectation, and we will work to achieve 300 in 2023/24.
In 2022/23 we grew traineeships achieving £150k, +£25k on budget and £34k up on last year.
Our tenders to source other funding streams have gone well i.e. Acorn achieved £169k, Skills Bootcamp £205k. Our own AEB subcontract value for 2022/23 was £213k. This contract has now finished. However, in 2023/24 we have won a direct contract from GMCA for devolved AEB Level 2 and 3 for approximately £896k, so this will increase our financial performance this year.
The commercial courses have increased this year to £218k +£48k on budget +£38k on last year. This may be difficult to achieve in 2023/24 as we have to deliver some courses free due to GMCA's Social Value Policy, a criteria of the AEB bids.
In addition, we plan to build on our active involvement in partnerships e.g. The Rochdale Network, GMLPN and our strong links with the local authority.
We will also strive to increase participation, timely success rates, progressions and the number of distinctions and further increase the quality of our provision, in order to achieve outstanding OFSTED grades.
The beneficial area of charitable expenditure is the United Kingdom, with preference for the Rochdale area. The trustees have reviewed the outcomes and achievements of the activities for the year to ensure that they remain focused on the charitable aims and continue to deliver benefits to the public. We have complied with the duty under the Charities Act to have due regard to the public benefit guidance published by the commission.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
This has been a challenging year for RTA financially as apprenticeship starts have not grown as expected. However, we reported a small surplus helped by diversifying into Skills Bootcamps and the Acorn Contract.
In April 2022, we were inspected by Ofsted and achieved a Good for overall effectiveness, Quality of Education, Behaviour & Attitudes, Personal Development, Leadership & Management, Education for Young People and Apprenticeships and we continue to work towards achieving an outstanding grade at the next Ofsted Inspection.
Our success rate on apprenticeships was 67% compared with the national average of 53% and on the adult workplace learning programmes it was 86%.
The Apprenticeship Standards are going well, with a 98% EPA pass rate in 2022/23 and 31% of Apprentices achieving a distinction and 12% a merit.
We have refurbished the toilets in the engineering workshop and in 2023/24 will continue to update our building and IT equipment.
We will continue to endeavour to grow the range of commercial services offered to companies and increase our membership.
The investments have performed according to our expectations.
The investment policy and objective is to minimise the risk of holding all monies in one financial institution and they are reviewed annually. We ensure to the best of our knowledge that investments are placed in ethical organisations e.g. the Co-Operative Bank.
The net incoming resources for the year amounted to £19,791 (2022 - £2,901) and details are shown in the statement of financial activities on page 13. Direct charitable expenditure accounted for 64% (2022 – 65%) of total expenditure.
Reserves policy
The Council of Management has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets (‘the free reserves’) held by the charity should be approximately 3-6 months of the resources expended, which equates to £612,156 - £1,224,313 in general funds. At present the free reserves, which net of designated and restricted funds amount to £2,111,405, can continue to support this policy for the immediate future. Some of the ‘free reserves’ will be used to improve the premises and equipment. Also rising energy costs and other economic pressures mean it is important that we continue to hold the ‘free reserves’ to mitigate against the risk of this uncertain landscape.
Principle funding sources
The principle funding sources for the charitable company are:
- Levy-paying employers
- Non-levy paying employers via AS system
- Traineeships
Other sundry sources of income include:
- Remploy / Maximus
- Acorn Training
- Princes Trust
- Rental income for room hire
- Corporate training sessions
- Investment income.
Principle risk and uncertainties
The Council of Management has conducted its own review of the major risks to which the charity is exposed and are attempting to develop systems to mitigate those risks. They are aware that significant external risks to funding require a strategic plan which will allow for the diversification of funding and activities.
The main risk in 2023/24 is not increasing Apprenticeship starts. We intend to deliver more adult courses e.g. AEB employed and unemployed programmes and Skills Bootcamp to make up for any shortfall in Apprenticeships.
Another risk is not achieving the required grades / standards set by Ofsted. Ofsted introduced a new Inspection Framework in September 2019. We had an inspection in April 2022 and maintained our Grade 2 - good - provision for overall effectiveness and for all the other judgements. We have a Quality Team and Quality Improvement Plan in place to ensure we continuously improve our provision in line with Ofsted's Education Inspection Framework.
Another risk is having funds clawed back due to an unsuccessful ESFA Audit. We were audited in July 2017 and the error rate was 0.66%. Funds are clawed back if the error rate is over 5%; therefore, our outcome was very good. We had a very small audit in July 2021 of Traineeships & AEB programmes and were deemed satisfactory. There is a Quality Compliance Manager and an Audit Schedule in place to maintain these standards and mitigate against any risk.
As we have won new contracts e.g. the AEB Level 2 and 3, another risk is not having a successful audit, as we have not experienced a GMCA audit before. However, the contract manager and compliance manager are well versed in the AEB funding rules and this will be added to our audit schedule to lessen the risk.
Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.
Financial risk management objectives and policies
The charitable company finances its operations through retained funds. The management's objectives are to retain sufficient liquid funds to enable the company to meet its day to day obligations as they fall due.
The charitable company makes little use of financial instruments other than an operational sterling bank account and longer term sterling deposits and bonds, so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and net incoming/outgoing resources.
Plans for future periods
The charitable company plans to continue its training activities for the foreseeable future, subject to satisfactory funding arrangements.
The plans described in Objectives and Activities above, continue to apply for the following 3 years.
We shall continue to develop our “one-stop shop” approach and continue broadening our market base. Although apprenticeship starts have not yet returned to pre-pandemic levels, growth is still a clear long term aim and to that end we shall maintain focus on both company needs and local and national government priorities.
The charitable company was incorporated on 31st January, 1967 and is governed by its Memorandum and Articles of Association, which established its objects and powers.
The directors of the charitable company are its trustees for the purpose of charity Law and throughout the report are collectively referred to as the trustees.
The trustees of the charitable company who served during the year and up to the date of signature of the financial statements were:
Appointment of Trustees
Trustees, drawn from member companies of our wider networks (see below), are elected at the Annual General Meeting (AGM) to form a management committee of between 5 and 11. A third of the trustees retire each year and are eligible for re-election. All members are circulated with invitations to nominate trustees prior to the AGM, advising them of the retiring trustees and requesting nominations for the AGM. The trustees have the power to co-opt members to the committee when appropriate particularly with regard to the need for any specialist skills. The management committee elects the Chairman.
None of the trustees has any beneficial interest in the charitable company. All of the trustees are members of the charitable company and guarantee to contribute £1 in the event of a winding up.
Market value of land and buildings
The trustees consider that the market value of land and buildings is in excess of their book value, but no professional valuation has been undertaken to quantify this.
Organisation
The Council of Management, the trustees detailed above, meet quarterly and at any other times to consider special issues or to enable future planning to be satisfactorily carried out.
The Chief Executive, Jill Nagy, 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 trustees, for operational matters including finance, employment and performance related activity.
Pay Policy for Senior Staff
This is reviewed annually in November, after accounts are finalised and be paid from November.
There are four elements to the process.
1. Cost of Living
Increases in line with cost of living will be discussed and reviewed at the Board meeting in September and will be confirmed in November, following the accounts being finalised. They will be granted if they are sustainable for the business i.e. if the financial performance of the Association during the immediately preceding 24 month period justifies the increase.
2. Merit Payment based on Performance
This will be assessed on performance against objectives agreed at appraisal at the start of the year. Judgement against each objective will be based on the descriptors of:
Unsatisfactory - not achieved, no progress
Satisfactory - met targets
Good - exceeded targets by 10%
Outstanding - exceeded targets by 20%
There is a fifth judgement of changed circumstances which would make the objective inappropriate. Senior staff will carry out a self-assessment and the Chief Executive shall also assess their performance. This will create the basis for discussion. The appraisal shall look at the balance of performance against the individual objectives, weighted in favour of the key objective, to arrive at an initial overall judgement. This should be balanced against initiative, team contribution, commitment, professionalism, developing Rochdale Training in order to arrive at final grading.
Unsatisfactory or satisfactory performance - no increase
Good performance - up to 3% increase
Outstanding performance - up to 6% increase
3. Bonus Payment
One-off bonus payments for one-off specific successes in moving RTA forward. This is payable at the Chief Executive's discretion up to £1,000.
4. Mid-year Adjustments
Structural job changes or increases based on defensive commercial decision shall be at the discretion of the Chief Executive.
5. Company Wide Bonus
Following an extremely successful year the Board may decide to award an across the board team bonus. This is at their discretion. If a member of staff is under Disciplinary or Performance Management procedure they are not entitled to the Company wide bonus.
Wider Networks
Rochdale Training Association Limited (RTA) are members of Greater Manchester Chamber of Commerce, The Association of Learning Providers and Greater Manchester Learning Provider Network.
In accordance with the charitable company's articles, a resolution proposing that Ashworth Moulds be reappointed as auditor of the charitable company will be put at a General Meeting.
This report was been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Rochdale Training Association Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that 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 also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Opinion
We have audited the financial statements of Rochdale Training Association Limited (the "charitable company") for the year ended 31 July 2023 which comprise the statement of financial activities including income and expenditure account, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and the provisions available for small entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the trustees' report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report, included within the trustees' report, has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Our 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations, was as follows:
We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
|
We addressed detecting material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, as follows:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
assessed whether judgements and assumptions made in determining the allocation of funds to the appropriate categories of Unrestricted, Designated and Restricted funds were indicative of potential bias.
reviewed the controls relating to completeness of income including sample testing of income transactions to determine appropriate allocation to the correct accounting period, entitlement and categorisation; and
investigated the rationale behind significant or unusual transactions.
agreeing financial statement disclosures to underlying supporting documentation
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Investment income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Rochdale Training Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Fishwick Street, Rochdale, Lancashire, OL16 5NA.
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity has adequate cash reserves and available unrestricted funds. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Donations and legacies income includes membership fees and levies for training from member companies for the year.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 support services are provided. Grant income included in this category provides funding to educational activities and is recognised where there is entitlement, probability of receipt and amounts can be measured with sufficient reliability. Income is deferred when performance related grants are received in advance of the education programme to which they relate.
Investment income is recognised on a receivable basis.
Expenditure is recognised on an accruals basis when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that results in the payment being unavoidable.
- costs of raising funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
- charitable activities include expenditure incurred when undertaking educational programmes and include both the direct costs and support costs relating to these activities.
- support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. staff costs by the time spent and other costs by their usage.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
All fixed asset additions are capitalised at cost.
Investments held as fixed assets are revalued at mid-market value at the value at the balance sheet date and the gain or loss taken to the statement of financial activities. The net cumulative gain or loss is reflected in the designated fund.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are valued at the lower of cost and net realisable value after making due allowance for absolete and slow moving items.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition of opening of the deposit or similar account.
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
A financial instrument is a contract giving rise to a financial asset (such as trade and other debtors, cash and bank balances) or a financial liability (such as trade and other creditors, bank and other loans, hire purchase and lease creditors).
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
All the charitable company financial instruments are basic financial instruments and are recognised at amortised cost using the effective interest method.
Amortised cost: the original transaction value, less amounts settled, less any adjustment for impairment.
Effective interest method: where a financial instrument falls due more than 12 months after the balance sheet date and is subject to a rate of interest which is below a market rate, the original transaction value is discounted using a market rate of interest to give the net present value of future cash flows.
Financial assets cease to be recognised only when the contractural rights to the cash flows expire, or when substantially all the risks and rewards of ownership are transferred to another entity.
Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled.
The company is a registered charity and is entitled to exemption from tax to the extent that income received falls within Part 11 of the Corporation Taxes Act 2010 and is applied to charitable purposes only.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Pensions
Contributions in respect of the charitable company's personal pension scheme are charged to the income and expenditure account for the year in which they are payable to the scheme.
In the application of the charitable company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Membership training fees
All of these were unrestricted monies.
Unrestricted funds
Unrestricted funds
Restricted funds
Training course fees and consultancy
Skills Funding Agency and similar funding
Rental income and hire of assets
Other
Investment income
Dividends receivable
All of these were unrestricted monies.
Raising funds
Direct training
Support costs
Raising funds
Direct training
Support costs
Lecturers and course costs
Motor and travelling costs
Telephone and communications
Printing, postage and stationery
Bank charges
Health and safety
Repairs and renewals
Insurance
Subscriptions
Audit and accountancy
Legal and professional fees
Rent, rates, heat and light
General expenses
Raising funds
Direct training
Support costs
Raising funds
Direct training
Support costs
The restricted expenditure in 2023 relates to:-
RTA restructuring grant fund - depreciation (£10,667)
GMCA capital grant fund - depreciation (£4,014), printing, postage and stationery (£5,337)
The restricted fund expenditure in 2022 related to:-
RTA restructuring grant fund - depreciation (£10,667)
GMCA capital grant fund - depreciation (£4,093), printing, postage and stationery (£5,337)
Reducing Barriers to Apprenticeships (RBA) - Administration - staff costs (£390)
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year.
The average monthly number of employees during the year was:
The trustees neither received nor waived any remuneration during the year, nor received any reimbursement for any expenses incurred (2022: £NIL).
The key management personnel comprise the charity trustees, the Chief Executive Officer, the Finance Manager, the Business Department Manager, the Engineer Manager, the Commercial Manager, the Contracts Manager, the Marketing Manager, the Head of Teaching, Learning and Curriculum and the Quality Manager. The total employee benefits of the key management personnel of Rochdale Training Association Limited was £399,675 (2022: £378,148).
Freehold land and buildings includes the Plumbing Centre.
The amounts held in fixed term deposit accounts and business bond accounts have varying notice periods.
Deferred income is included in the financial statements as follows:
The income funds of the charitable company include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
Transfers
Transfers
The RTA Restructuring Grant fund relates to grant income receivable in relation to capital expenditure on land and buildings.
Depreciation is released over the life of the assets purchased.
The GMCA Capital Grant fund relates to grant income receivable to assist with the capital costs associated with adhering to the latest government guidance for the wider reopening of educational establishments.
Depreciation is released over the life of the assets purchased.
The RBA - Engineering fund relates to grant income receivable to be used towards funding the delivery of an engineering pre-apprenticeship programme which is targeted at BAME young people.
The RBA - Administration fund relates to grant income receivable to be used towards funding the delivery of a "teaching assistant" pre-apprenticeship programme which is targeted at single parents.
These are unrestricted funds which are material to the charitable company's activities made up as follows:
Income including gains & losses
Resources expended
Transfers
Income including gains & losses
Resources expended
Transfers
The income funds of the charitable company include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
The revaluation fund is required by the Companies Act 2006 and represents the amount by which investments exceed their historical cost.
Restricted funds
Unrestricted general funds
Unrestricted designated funds
Restricted funds
Unrestricted general funds
Unrestricted designated funds
There are no contingent liabilities of a material amount for which provision has not been made in the financial statements.
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
At 31 July 2023 the charity had capital commitments as follows:
The charitable company contributes to a personal pension scheme on behalf of the employees. The pension cost charge represents contributions payable by the charitable company to the scheme and amounted to £66,554 (2022: £62,721). There were £8,686 (2022: £16,782) outstanding contributions payable to the scheme at 31st July, 2023.
During the year ended 31st July, 2023 the charitable company has acted as custodian to the funds of Radama, a training provider group, which is chaired by Jill Nagy (Chief Executive).
During the year ended 31st July, 2023 the charitable company paid expenditure of £14,079 on behalf of Radama and received repayments of £33,249 from Radama. At 31st July, 2023 there was an amount of £1,079 (2022: £20,249) owing to Rochdale Training Association Limited. The balance of £1,079 is shown as "Other Debtors" as at 31st July, 2023.
Andrew Nagy is the husband of Jill Nagy (Chief Executive). During the year ended 31st July, 2023 Rochdale Training Association Limited incurred expenditure totalling £3,900 (2022: £4,260) on tutor services provided by Andrew Nagy. There was a balance outstanding as at 31st July, 2023 of £nil (2022: £4,260).
Rachel Yates, Engineer Manager, is a member of the key management personnel. During the year ended 31st July, 2023 she received loans totalling £690 from Rochdale Training Association Limited. She repaid this amount in full and so as at 31st July, 2023 there was a balance outstanding of £nil (2022: £nil). The loans were interest free.
The charity had no debt during the year.