Charity registration number 528635
Company registration number 00926888 (England and Wales)
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
E Sims
I Raeside
A Sims
Mr J Bailey
(Appointed 24 April 2024)
Secretary
P Smith
Charity number
528635
Company number
00926888
Registered office
Hanley Technical Institute
151-153 Marsh Street North
Hanley
Stoke-on-Trent
Staffordshire
ST1 5HR
Auditor
Geens Limited
Graphic house
124 City Road
Stoke on Trent
ST4 2PH
Bankers
National Westminster Bank plc
1 Upper Market Square
Hanley
Stoke-on-Trent
ST1 1NS
Solicitors
Freeth Cartwright LLP
Federation House
Station Road
Stoke on Trent
ST4 2SA
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
CONTENTS
Page
Trustees' report
1 - 8
Statement of trustees' responsibilities
9
Independent auditor's report
10 - 12
Statement of financial activities
13
Balance sheet
14 - 15
Statement of cash flows
16
Notes to the financial statements
17 - 27
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT)
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The trustees present their report and the financial statements and business plan for the year ended 31 August 2024. The trustees, who are also directors for the purposes of company law and who served during the year and up to the date of this report are set out in the Reference and Administrative Information.

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 governing document, 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).

Objectives and activities

 

 

 

This has been achieved from the following activities

 

Apprenticeship programs. The group has facilitated and delivered apprenticeship programs in all types of engineering activities. These delivered from its base in Hanley and also within the work place of members and clients. The group has 50 - 60 apprentices on program at any one time. The group has invested heavily in its delivery with two studios developed a few years ago to offer continual training on line and access to the recorded training programs are offered freely 24/7 and 365 days a year to both the student and employer.

The group carry out regular skill gap analysis for the group’s members and clients these have taken place and training arranged. The group offers an advisory service to discuss training and training programs free to engineering sector companies. It offers a free recruitment and testing service to enable smaller companies to receive direct support. It has applied on behalf of the members and has given advice enabling them to receive assisted financial support.

 

The group has continued to work closely with the local job centre plus in sites placed around the city, visiting regularly one or two times a week to promote and educate those looking for employment and discussing those opportunities available to them from the local engineering sector following the groups engineering upskilling training. Our upskilling training is developed and completed in areas requested through continued consultation with local engineering employers. The group run two separate steering groups throughout the year with both employers and apprentices. This upskilling of the unemployed and the group’s apprenticeship offer means the demographic for the group continues to be very diverse supporting both older and the younger people in the area. We are also supportive to those with learning disabilities, low educational level attainment and registered disabled, all who benefit from the groups academy and its hands on approach.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The group attends and supports local career events and Job shops. The group participate in school career activities to offer advice on career paths and apprenticeships at all levels. We give taster sessions to school pupils on engineering activities using special equipment and our new for this year educational mobile activity van purchased to help them understand engineering and the different roles better; NSEG now reach out to the people of Stoke-on-Trent with tasters of engineering activities and employment skills. The van fully modernized has disability access and designed to promote social integration and community engagement; it continues to reach out to those that would not normally be able to get access to this information or activity. This engages individuals and creates training opportunities, particularly for those that face barriers to employment and/or live in deprived areas. The knock on affect will benefit employers in industries with known skills shortages such as engineering. The van and its activities are designed to give an appreciation of Engineering skills and allow people to try out their ability using enjoyable but safe equipment whilst receiving high quality impartial IAG. NSEGTA staff continue to engage with and attend at least 20 local social groups, careers/job fairs, schools (5 per quarter) of which 20% will be from underrepresented groups. These investments, in the services and support we offer to the local community gives the group the ability to give free advice guidance to all, the sector we support and the local people of Stoke on Trent, and surrounding areas.

 

Our Education and Skills Funding expertise continues to ensure that there is fair and equal access to funding for training employees to the group's members and associates. Government incentive information as and when it becomes available is sent out via e-mails telephone calls and marketing material. Our team of training officers briefed regularly on incentive payments also pass on relevant information to employers.

We continue to offer education, apprenticeship and training information in all forms to ensure we reach all areas of our demographic in the form of media releases information given with leaflets, e-mail bulletins and special arranged zoom meetings, giving group presentations and face to face support via our new studios.

 

The group links with the local employers, local colleges, and Staffordshire training network.

Our past and future investments have been, and will continue to be so that the group can offer training, upskilling, and support to enhance, develop and reach out to increasing numbers of people.

The equipment purchased was chosen to ensure that any training taking place is carried out on industrial standard equipment used by employers results in work ready skills and smooth transition into employment by NSEGTA learners.

Health and safety support to members and other companies to meet obligations in legislative requirements in health and safety continues. Subsidized by surplus the group make, this service continues to improve, with equipment purchased to support local companies in testing coolant and assessing atmospheric pollutants.

Membership costs have remained static again but we have offered even more levels of support, and our membership numbers stay consistent.

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our investments, which influence future activities and believe we have accomplished this. We have made surplus monies over a number of years, which have supported our continual investments designed to improve the chances for local people and support the needs of local engineering companies in line with our public benefit objectives.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
Achievements and performance

This year has again seen the group making significant differences in the engineering sector, from up skilling employees to arranging and overseeing apprenticeship programmes and our training to the unemployed, a recent customer satisfaction survey has concluded that 100% of employers would recommend NSEGTA to other employers.

A comprehensive breakdown of the group’s performance is seen below.

Achievements and performance figures for the year ending Aug 24.

2023-24 - Final Recorded success Rates and 2023-24 contractual targets record

 

2023/24 Contractual Targets

AEB Contract: Contract allocation of £655k was exceeded by £2.5k.

 

Qualification Achievement Rates – 2023/24

- Overall AEB (including Ace / FS / NVQS) = 95%

- Ace Academy = 96% Nat Av 84.2%    Progression rates into FE / employment = 79%

- Workplace L2 NVQs = 79%

- Functional Skills = 92%

 

 

Apprenticeship Update 2023/24:

 

Qualification Achievement Rates – 2023/24 Contract Update

- Overall Apprenticeships = 80%     Nat Av 54.6%            

Lean Manufacturing Qualification Achievement Rate = 93%

12 Lean Manufacturing Achievements - 10 Pass (83%) / 2 Distinction (17%).

 

We will be reviewing the feedback from the EPA’s to better understand why learners are only achieving a pass. Review and update the curriculum / training if necessary.

 

Engineering Operative Qualification Achievement Rate = 73%

 

15 Engineering Operative Achievements - 4 Pass (27%) / 11 Distinction (73%).

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

Overall End point assessment results = 14 Pass – 52% / 13 Distinction – 48%

 

The results of our annual employers and Learners survey seen below.

Employer / Learner Surveys 2023/24 – Feedback

 

A good response rate from both employers and learners.

 

Employers

44 employer surveys were emailed out with 30 Employer responses received

68% response rate.

 

 

What NSEG does well:

 

What NSEG could do better:

 

 

Learners

46 learner surveys were emailed out with only 38 learner responses received

83% response rate.

 

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -

 

 

What NSEG does well from the survey:

 

 

What NSEG could do better from the survey:

 

The group remain the leading provider for local engineering companies for their apprenticeships. In February 2021, the group became a prime training provider. It received its first independent ofsted monitoring visit inspection in 2022, followed up by a full inspection December 2024 where the group received a good grade across all areas, the full report can be seen at. https://reports.ofsted.gov.uk/provider/33/2654230

The group have successfully retained the matrix standard this year for advice and guidance. It applied for and successfully met the education & skills funding agency standards and remained on the register of UK training providers submitted at the beginning of the year. It successfully gained 2 years in 2023 for adult education funding for its provision in engineering training and up skilling, having now completed the first year the group achieved its targets and will be applying for an additional 2 years funding for at the end of 2025.

The adult education delivery (for those over the age of 19) at nsegta completed with excellent results as seen in the performance review. The numbers passing through the training academy program topped over 180 locally unemployed people, beating last years results ; these were made up of men, women, low academic achievement and special needs, including previous offenders. The group continue to offer a no barriers approach to those we support.

27 work experience / trial programs and support have been accomplished with a special program offering companies the opportunity to give taster sessions in partnership with the local colleges; these have resulted in those on the program gaining an apprenticeship with those companies involved.

Accreditation with the Institute of Mechanical Engineers, the British Safety Council, the Institute of Occupational Safety and Health, the Matrix standard for advice and guidance, the awarding bodies for EAL, and the AoFA regulated health and safety national standard, cyber secure, the information commissioner’s office and Direct claims status with EAL awarding body all maintained.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -

The health and safety service continues to improve. The group now recognised as a leading health and safety consultant for local engineering companies by the health and safety executive and following a number of inspections. They continue to approach us to support and offer advice on dwell times for machining, atmospheric contaminates and coolant safe handling. We will continue to invest in this area to meet the demands of the industry and offer support; there is planned significant investment in this area for 2025.

Financial review

 

To ensure that monies surplus are channelled to enhance the groups not for profit services NSEGTA has decided to have 3 areas which are now designated from surplus and its current assets.,

 

• £612,846 Fixed Assets (capital investment building and equipment)

• £131,000 Staff Contingencies (redundancy payments etc.)

• £500,000 Strategic Development Fund

 

These areas will be shown on the balance sheet and constitute a commitment to develop its charitable activities.

 

The trustees have reviewed the reserves of the charity. Cash reserves are required to fund new service opportunities for members and cover the cost of potential repairs on the group's capital investment. The cash reserves of approximately £1,019,000 (after deducting certain fund designations) meet these requirements.

 

 

Investment powers, policy and performance

The trustees have considered the most appropriate policy for investing funds surplus to immediate needs. They have decided that this should be to maximize the return whilst minimizing the risk of loss of funds. Accordingly, funds invested in bank deposit accounts and building society accounts. Higher risk investments not permitted.

Financial performance

A surplus made this year, some invested in non-risk bonds and some reinvested in the group’s assets throughout the year. The designation has been tailored in-line with any surplus made, to ensure maximum investment goes back into the group to help it meet and improve its services and charitable objectives.

 

The trustees have assessed the major risks to which the charitable company is exposed and are satisfied that systems are in place to mitigate exposure to those major risks.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
Plans for future periods

 

Senior management changes for 2024 /2025 will result in the group’s CEO changing. From September 2024 Sarah Stanway will be taking on the position as joint CEO with Paul Williams and from January 2025 when she will take on the role with sole responsibility.

The trustees have considered the impact on the group and asked that the current CEO to support the transition, as joint CEO from September to December 2024 then taking the position of company president for an undetermined period from Jan 2025.

A business plan presented to the board in June 2024 was unanimously approved.

The plans objective is to continue the groups desire to maintain steady growth and stability. The areas, we have focused on have been traditional group activities, growth in these areas will result in a slight re-positioning back to a more traditional offering for members. This should reduce our susceptibility made possible by an almost certain changing political landscape and any possible impact to government funding.

NSEGTA is facing new and sustained challenges, prime contracts for AEB and apprenticeship funding means that meeting auditing and quality requirements is now a full time and costly requirement.

Loss of skills through a number of employee departures has also impacted on the group’s ability to attack bottle necks. The investments made in multi skilling employees over time has resulted in them becoming more attractive to other organisations, which is slightly concerning but unavoidable. We know no other way to get the skills required and will need to continue to invest in employee development. We will also need to employ additional staff.

We have taken into account the planned management changes taking place, which means that there are areas for the group to consolidate for a smooth transition. Current delivery for the Ace academy must be maintained at the current levels, the income is strong in this area and a cautious approach is required to ensure that both contract values and audit requirements are met, which will support another bid.

We have identified however, other areas we feel are ready for investment for growth and improved services.

Throughout our discussions, consideration has been given to the group’s heritage, its membership and charitable objectives as well as traditional services.

It remains vitally important that the group retain its strong financial position; investments planned from the approved business plan will allow the group to work with its members to identify and implement important health and safety training and the general up skilling of employees and apprentices in the new health and safety hub planned for 2025.

Our contract with the AEB budget runs out by July 2025, the next 12 months is crucial that we meet and if possible exceed the target of spend that the group has been allocated. We will need to apply for funding again sometime around springtime in 2025. Following two successful tenders, it is clear that the delivery providers have been viciously culled over the last few years and the ESFA wanted to decrease the number of allotted training providers.

Support from members will make it a stronger bid with an employment drive for those completing training at the Ace academy would prove very useful. This will increase our progression rates into employment, which is a contractual requirement.

NSEGTA procured and was awarded £446k for its first AEB contract in 2021/22, but only 88 providers were successful (a reduction from 208 providers the previous year).

In 2022/23, NSEGTA procured again for an AEB contract, with an increased allocation of £655k. Only 55 providers were successful (a further reduction from 88 providers the previous year), with only 15 providers, being awarded the full allocation, NSEGTA being one of them.

 

A further adult education procurement is a very important to the group’s plans and will form part of a concentrated effort to secure this during 2025 when we believe fresh procurement bids will be released.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Structure, governance and management

Governing document

 

North Staffordshire Engineering Group Training Association Limited (NSEGTA) is a company limited by guarantee, and is a registered charity governed by its Memorandum and Articles of Association which were last amended in November 2001.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

E Sims
P Smith
(Resigned 19 July 2024)
I Raeside
A Sims
Mr J Bailey
(Appointed 24 April 2024)

A board of trustees administers the charity. It endeavours to meet bi-monthly and at other times when required. It has power to appoint sub-committees consisting of not less than two trustees for the purposes of making inquiry into or supervising or performing any function or duty which in the opinion of the trustees would be more conveniently undertaken or carried out by a sub-committee provided that all acts and proceedings of any such sub-committees shall be fully and promptly reported to the trustees. A chief executive is appointed by the trustees to manage the day to day operations of the charity. The pay scales of senior staff are set by the trustees and are benchmarked against similar sized organisations operating in the area. Pay of individual members are reviewed annually and this review takes into account performance and any other additional responsibilities undertaken.

Auditor

In accordance with the company's articles, a resolution proposing that Geens Limited be reappointed as auditor of the company will be put at a General Meeting.

The trustees' report was approved by the Board of Trustees.

I Raeside
Trustee
17 October 2024
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
STATEMENT OF TRUSTEES' RESPONSIBILITIES  
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -

The trustees, who are also the directors of North Staffordshire Engineering Group Training Association Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

 

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

 

In preparing these accounts, 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 accounts; and

 

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company 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 accounts 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.

 

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
- 10 -

Opinion

We have audited the financial statements of North Staffordshire Engineering Group Training Association Limited (the ‘charitable company’) for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable 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:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, for the year then ended;

-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-

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 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 we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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 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.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
- 11 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

-

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

-

sufficient accounting records have not been kept; or

-

the financial statements are not in agreement with the accounting records; or

-

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the 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.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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

As part of our planning process:

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
- 12 -

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

An audit of the financial statements was performed for the year ended 31 August 2022. The comparative figures are unaudited.

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Geens Limited
18 October 2024
Chartered Accountants
Statutory Auditor
Graphic House
124 City Road
Stoke on Trent
ST4 2PH

Geens Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Unaudited
Unaudited
Unaudited
Unrestricted funds
Unrestricted funds
Total
Unrestricted funds
Unrestricted funds
Total
general
designated
general
designated
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Charitable activities
3
1,167,973
-
1,167,973
960,152
-
960,152
Investments
4
50,439
-
50,439
20,332
-
20,332
Other income
5
2,945
-
2,945
6,453
-
6,453
Total income
1,221,357
-
1,221,357
986,937
-
986,937
Expenditure on:
Charitable activities
6
778,291
52,710
831,001
742,875
48,647
791,522
Total expenditure
778,291
52,710
831,001
742,875
48,647
791,522
Net income/(expenditure)
443,066
(52,710)
390,356
244,062
(48,647)
195,415
Transfers between funds
(13,630)
13,630
-
(82,292)
82,292
-
Net movement in funds
7
429,436
(39,080)
390,356
161,770
33,645
195,415
Reconciliation of funds:
Fund balances at 1 September 2023
633,279
1,282,926
1,916,205
471,509
1,249,281
1,720,790
Fund balances at 31 August 2024
1,062,715
1,243,846
2,306,561
633,279
1,282,926
1,916,205

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 14 -
Unaudited
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
612,846
651,926
Current assets
Debtors
13
84,376
99,793
Cash at bank and in hand
1,650,396
1,193,307
1,734,772
1,293,100
Creditors: amounts falling due within one year
14
(24,081)
(10,433)
Net current assets
1,710,691
1,282,667
Total assets less current liabilities
2,323,537
1,934,593
Creditors: amounts falling due after more than one year
15
(16,976)
(18,388)
Net assets
2,306,561
1,916,205
The funds of the charitable company
Unrestricted funds - general
1,062,715
633,279
Unrestricted funds - designated
18
1,243,846
1,282,926
2,306,561
1,916,205

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2024, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2024
31 August 2024
- 15 -
The financial statements were approved by the trustees on 17 October 2024
I Raeside
Trustee
Company registration number 00926888 (England and Wales)
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
Unaudited
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
418,745
189,758
Investing activities
Purchase of tangible fixed assets
(17,427)
(93,840)
Proceeds from disposal of tangible fixed assets
6,744
18,000
Investment income received
50,439
20,332
Net cash generated from/(used in) investing activities
39,756
(55,508)
Financing activities
Payment of finance leases obligations
(1,412)
19,962
Net cash (used in)/generated from financing activities
(1,412)
19,962
Net increase in cash and cash equivalents
457,089
154,212
Cash and cash equivalents at beginning of year
1,193,307
1,039,095
Cash and cash equivalents at end of year
1,650,396
1,193,307
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
1
Accounting policies
Charity information

North Staffordshire Engineering Group Training Association Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Hanley Technical Institute, 151-153 Marsh Street North, Hanley, Stoke-on-Trent, Staffordshire, ST1 5HR.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charitable company's governing document, 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 charitable company 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 accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Charitable funds
1.4
Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.

1.5
Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred.
1.6
Tangible fixed assets

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:

Land and buildings
2% p.a.
Fixtures, fittings & equipment
10% p.a. to 25% p.a. straight line
Motor vehicles
25% reducing balance
1.7
Impairment of fixed assets

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).

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

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.

 

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.10
Employee benefits

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.13
Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

 

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

 

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 accounts.

2
Critical accounting estimates and judgements

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.

Key sources of estimation uncertainty
Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets, See note 8 for the carrying amount of fixed assets, and note 1.6 for the useful economic lives for each class of assets.

 

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
3
Income from charitable activities
Training and education
Training and education
2024
2023
£
£

Membership fees

35,751
31,219

Services to managing agents

31,203
41,155

Courses

89,209
115,819

Safety services

14,493
12,622

ESFA Funding

973,611
753,979

Enhanced apprenticeships

23,706
800

Ace Academy

-
4,558
1,167,973
960,152
Analysis by fund
Unrestricted funds - general
1,167,973
960,152
4
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Interest receivable
50,439
20,332
5
Other income
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Net gain on disposal of tangible fixed assets
2,945
6,453
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
6
Expenditure on charitable activities
Training and education
Training and education
2024
2023
£
£
Direct costs
Staff costs
534,970
507,390
Depreciation and impairment
52,710
48,647

Course expenses (inc NSEG costs)

59,781
74,786

Rent, rates and insurance

16,085
10,961

Heat, light and water

12,903
8,400

Minor equipment, maintenance and premises expenses

25,617
23,228

Printing, stationery and telephone

11,956
9,281

Publicity (including website)

11,525
13,479

Motor and travelling expenses

13,356
13,643

Auditors' remuneration/ Independent examiner's fees

4,500
2,030

Sundry expenses

11,968
12,736

EAL charges

25,367
21,570

Subscriptions and donations

5,344
4,498

Irrecoverable VAT

13,236
11,017
Other charitable expenditure
31,683
29,856
831,001
791,522
Analysis by fund
Unrestricted funds - general
778,291
742,875
Unrestricted funds - designated
52,710
48,647
831,001
791,522
7
Net movement in funds
2024
2023
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable to the charity's auditor:
- for the audit of the charity's financial statements
4,500
-
- for other financial services
-
2,000
Depreciation of owned tangible fixed assets
52,710
48,647
Profit on disposal of tangible fixed assets
(2,945)
(6,453)
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
8
Auditor's remuneration
Fees payable to the charity's auditor and associates:
2024
2023
£
£
For audit services
Audit of the financial statements of the charity
4,500
-
For other services
All other non-audit services
-
2,000
9
Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year, and none of them were reimbursed any expenses (2023- none).
10
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
17
15
Employment costs
2024
2023
£
£
Wages and salaries
465,351
442,000
Social security costs
39,073
39,607
Other pension costs
30,546
25,783
534,970
507,390

The total amount of employee benefits paid to its key management personnel, including the trustees, amounted to £76,276 (2023: £69,621)

The number of employees whose annual remuneration was more than £60,000 is as follows:
2024
2023
Number
Number
£60,001 to £70,000
1
-
NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
12
Tangible fixed assets
Land and buildings
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
523,394
203,143
94,506
821,043
Additions
-
17,427
-
17,427
Disposals
-
-
(19,392)
(19,392)
At 31 August 2024
523,394
220,570
75,114
819,078
Depreciation and impairment
At 1 September 2023
54,616
90,647
23,852
169,115
Depreciation charged in the year
7,540
28,316
16,854
52,710
Eliminated in respect of disposals
-
-
(15,593)
(15,593)
At 31 August 2024
62,156
118,963
25,113
206,232
Carrying amount
At 31 August 2024
461,238
101,607
50,001
612,846
At 31 August 2023
468,778
112,495
70,653
651,926
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,686
9,854
Other debtors
518
1,065
Prepayments and accrued income
75,172
88,874
84,376
99,793
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
1,574
1,574
Other taxation and social security
9,534
-
Trade creditors
8,473
6,859
Accruals and deferred income
4,500
2,000
24,081
10,433

Details of the obligation under finance lease are provided in note 16.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
16,976
18,388
16
Finance lease obligations
Future minimum lease payments due under finance leases:
2024
2023
£
£
Within one year
1,574
1,574
Within two and five years
16,976
18,388
18,550
19,962

The obligation under finance lease is secured over the relevant asset included within motor vehicles.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,546
25,783

The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
18
Unrestricted funds - designated

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

At 1 September 2023
Resources expended
Transfers
At 31 August 2024
£
£
£
£
Fixed Assets
651,926
(52,710)
13,630
612,846
Staff Contingencies
131,000
-
-
131,000
Strategic Development Fund
500,000
-
-
500,000
1,282,926
(52,710)
13,630
1,243,846
Previous year:
At 1 September 2022
Resources expended
Transfers
At 31 August 2023
£
£
£
£
Fixed Assets
618,281
(48,647)
82,292
651,926
Staff Contingencies
131,000
-
-
131,000
Strategic Development Fund
500,000
-
-
500,000
1,249,281
(48,647)
82,292
1,282,926

Fixed Assets. This fund represents the net book value of the fixed assets held by the charity.

 

Staff Contingencies. This fund is to provide resources should the services of the charity be affected by sickness or other absence of staff or should the charity have to make staff redundant.

 

Strategic Development Fund. This is a fund set aside to ensure the charities sustainability giving it the ability to implement any possible rapid capital investment due to any proposed changes in delivery or apprenticeship developments / requirements, or loss of ESFA short term contract.  This would have  significant impact on the charity.  The charity will rely on its ability to react quickly to those changes required to deliver training, fund new equipment and any other resources required.  This will be a significant cost to the charity and must be accounted for and designated as required and reviewed yearly.

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
19
Analysis of net assets between funds
Unrestricted funds
Designated funds
Total
Unrestricted funds
Designated funds
Total
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
Fund balances at 31 August 2024 are represented by:
Tangible assets
-
612,846
612,846
-
651,926
651,926
Current assets/(liabilities)
1,079,691
631,000
1,710,691
651,667
631,000
1,282,667
Long term liabilities
(16,976)
-
(16,976)
(18,388)
-
(18,388)
1,062,715
1,243,846
2,306,561
633,279
1,282,926
1,916,205
20
Operating lease commitments
Lessee

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:

2024
2023
£
£
Within one year
1,088
1,088
Between two and five years
848
1,936
1,936
3,024
21
Related party transactions

There were no disclosable related party transactions during the year (2023 - none).

NORTH STAFFORDSHIRE ENGINEERING GROUP TRAINING ASSOCIATION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
22
Cash generated from operations
2024
2023
£
£
Surplus for the year
390,356
195,415
Adjustments for:
Investment income recognised in statement of financial activities
(50,439)
(20,332)
Gain on disposal of tangible fixed assets
(2,945)
(6,453)
Depreciation and impairment of tangible fixed assets
52,710
48,647
Movements in working capital:
Decrease/(increase) in debtors
15,417
(26,584)
Increase/(decrease) in creditors
13,646
(935)
Cash generated from operations
418,745
189,758
23
Analysis of changes in net funds
At 1 September 2023
Cash flows
At 31 August 2024
£
£
£
Cash at bank and in hand
1,193,307
457,089
1,650,396
Obligations under finance leases
(19,962)
1,412
(18,550)
1,173,345
458,501
1,631,846
2024-08-312023-09-01falseCCH SoftwareiXBRL Review & Tag 2022.2009268882023-09-012024-08-3100926888bus:Director12023-09-012024-08-3100926888bus:Director32023-09-012024-08-3100926888bus:Director42023-09-012024-08-3100926888bus:Director52023-09-012024-08-3100926888bus:CompanySecretary12023-09-012024-08-3100926888bus:Director22023-09-012024-08-31009268882024-08-31009268882023-08-31009268882022-09-012023-08-3100926888bus:FRS1022023-09-012024-08-3100926888bus:Audited2023-09-012024-08-3100926888bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP