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REGISTERED COMPANY NUMBER: 00971293 (England and Wales)
REGISTERED CHARITY NUMBER: 307299












REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

FOR

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS
SETA

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024










Page

Report of the Trustees 1 to 7

Report of the Independent Auditors 8 to 10

Statement of Financial Activities 11

Balance Sheet 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15 to 25

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024



The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES
Objectives and aims
Our aim is to be the first choice for local employers requiring training services for the development of their engineering staff. By offering a combination of workshop training and teaching facilities, matching the requirements of local industry together with excellent customer service we have established a loyal customer base and a high level of repeat orders. Referrals by satisfied customers frequently introduce new customers and, consequently, income is not dependant on a large expenditure on sales and marketing.

SETA is positioned to provide specialist training services to the engineering, building services and construction industry sectors and strives to offer a comprehensive technical training service. New courses are continually introduced and existing courses revised in response to employer requests and market trends.

SETA is committed to delivering high quality, value for money apprenticeships and supporting young people to enter engineering. Vacancies are advertised on behalf of employers and applications are regularly oversubscribed by a factor of 4. Career information, advice and guidance is provided to candidates who have applied for vacancies and continually throughout their training programmes. SETA work closely with Professional Engineering Institutions (PEI's) and local Universities enabling seamless and continual professional development for apprentices who complete and progress through their career pathways.

The legal requirement to maintain safeguarding, safety and wellbeing arrangements for all learners and our staff is paramount and particularly important and is under constant review through rigorous internal self-assessment. We aim to provide a supportive working environment where the contribution of our employees is valued, creativity encouraged, equity, diversity and inclusion is respected and the equality of opportunity is promoted.

Public benefit
The objectives and activities undertaken by the charity are confirmed to be for public benefit and the Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

During the academic year 2023/24: 269 (2022/23: 260) apprentices were in learning and, of these, 30 (2022/23:80) completed. Overall, 26 (2022/23: 44) candidates successfully completed their apprenticeships giving an overall success rate of 52% (2022/23: 55%). Our achievement rates for 2024 were predictably lower than in 2023 due to the impact of the coronavirus pandemic and continuous delays with end point assessment. Achievement rates remain broadly in line with national trends.

Of the 92 (2022/23: 94) new enrolments in the year 55 (2022/23: 35) were aged between 16 and 18, 37 (2022/23: 59) were aged 19+.

STRATEGIC REPORT
Achievement and performance
Fundraising activities
The charity has not participated in any direct or funded fundraising to date. However, donations from employers and suppliers of plant and equipment have been received.


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024


STRATEGIC REPORT
Financial review
Principal funding sources
The principal source of funding arises from apprenticeships funded by the Education and Skills Funding Agency (ESFA) representing 49% (2023: 45%) of income. The remaining 51% (2023: 55%) of income arises from commercial course delivery and consultancy

Reserves policy
The current level of unrestricted reserves (excluding the fair value reserve) is valued at £217,251 (2023: £214,692) which represents 7% (2023: 8%) of annual costs; the objective set by the board is for this to be increased to £1,000,000 representing 33% of annual costs.

The Board of Trustees has considered the adequacy of total reserves held by the company and is of the opinion that they are adequate for the furtherance of the charity's objectives.

The reserves policy is to:

- Protect the charity from the risk of insolvency or serious disruption to its charitable work.
- Provide sufficient funds to invest in equipment and services for the benefit of young people and adults
undertaking training.

Performance
The results for the year and the financial position of the association are shown in the annexed accounts. These show a deficit for the financial year which the Trustees recommend be deducted from the reserve.

In accordance with the requirements of the Charity Commission a revaluation was carried out on the leasehold premises used as an apprentice training centre in 2016. The building was erected in 1969 and has a floor area of 1950 sq m. It is occupied under an 83 year lease which expires 28/03/2054 leaving an unexpired term of 30 years. The estimated fair value of the lease is still included at a valuation of £335,000, less depreciation. The fair value reserve of £84,646 (2023: £87,514) can only be released by disposal of the apprentice training centre.

Overall sales revenues increased by £255,901 (8%) compared with the previous year. This is due to increased commercial sales, more apprentices on programme and the introduction of Skills Bootcamp training programmes.

Safeguarding and mental health support continues to rise year on year. In 2022 we introduced Student Welfare & Development as part of our pastoral services team which enables learners to receive dedicated learning support as we find more and more with complex learning needs.

Our 2024 our 'first year off the job' training programme was revamped. We introduced a SETA Foundation Certificate rather than the traditional PEO award meaning we could ensure the training offered met the skills, knowledge & behaviours (SKBs) of each Apprenticeship Standard.

We ensured that learners whose academic qualifications did not meet the required standard to start their technical qualification in Year 1 were not penalised and introduced a full functional skills programme to allow them to get up to speed. They will start their technical qualification in Year 2 enabling them to achieve without compromise.

Fixed assets
The principal fixed asset is the long lease for the premises at 1st Avenue and the market value was re-assessed in 2016.


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024


STRATEGIC REPORT
Principal risks and uncertainties
In the Autumn Statement 2023, the Department of Education (DFE) announced a new two year £50m apprenticeship growth sector pilot which launched from April 2024.

The pilot aim was to boost funding for eligible providers delivering 13 high-value advanced manufacturing and engineering, green and life sciences apprenticeship standards. The DFE would support providers with £3,000 per apprentice start, to make capital investment that will unlock their ability to grow and deliver training in the standards in scope of the pilot i.e. by purchasing fixed assets such as course specific equipment, tools and machinery. Providers would be able to claim funding once they delivered a minimum of 15 starts per standard (and once each learner had achieved a minimum of 42 days of learning).

In August 2024, the Growth Pilot funding rules were released, and even though SETA delivered two of the relevant apprenticeship standards, they were standards with low enrolments so this precluded us from meeting the rules from the outset. Statistics showed that out of the 45 independent training providers, only 15 would be eligible to meet the funding rules.

Apprenticeship funding bands were set in 2017, inflation has increased by 27.90% (2023: 27.71%) and there has been no inflation related rise in apprenticeship funding to keep up with this increase. The eagerly awaited growth pilot was expected to go some way towards meeting this shortfall, enabling providers to make capital investment. The constant increases in utility and energy bills, materials and consumables puts pressure on the budgets. We continue to work with all suppliers and contractors to secure the best rates possible.

The 2023-24 year has been particularly difficult resulting in a restructure and three redundancies; the Chief Operations Officer (COO), Head of Strategy and Apprenticeship Recruitment consultant. A wage freeze was announced which caused concerns amongst staff resulting in several leavers. While teaching staff had to be replaced, it allowed for changes to be introduced. The negative impact was the need to use recruitment agencies who attract high costs for their services.

The overdraft facility has been retained with the bank as a contingency.

The 'cost of living crisis' saw a huge increase in utility and energy bills and unprecedented increases in costs of materials and consumables. Wage increases to keep up with the cost of living have pushed operational costs to an all-time high all of which has had a negative impact. Procurement is continually under review and we continue to work with all suppliers and our contractors to secure the best possible outcomes.

Procedures and systems have been put in place to ensure that critical IT data is backed-up and stored to facilitate reinstatement including Cyber Essentials Plus certification. These procedures are compliant with the General Data Protection Requirements (GDPR) legislation and the system for recording student details is audited by the Provider Financial Assurance Team operating on behalf of the Education and Skills Funding Agency (ESFA).

Further risks include:
Our eligibility to remain on the Apprenticeship, Training & Assessment Register (ATAR) - subject to the following:
- Management of funds received via ESFA.
- Financial stability of our organisation (financial health assessment).
- Meeting the requirements of the new Financial Handbook for Independent Training Providers, effective from
August 2024.
- The ability to develop, maintain and grow the apprenticeship scheme in line with Sector requirements.
- HMI (OFSTED) Grade 3 (or above)
- Maintaining other associated kite marks akin to an educational establishment.

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024


STRATEGIC REPORT
- Satisfactory safeguarding, safety and welfare arrangements.
- Completion of an apprenticeship is achieved by successful assessment of competency by an approved
independent End Point Assessment Organisation (EPAO). Delays in completion of apprenticeships negatively
impact financial performance and success figures; both are measured via HM Inspectorate and can ultimately
impact ATAR placement
- Commercial courses represent 52% of the total income and are vital to supporting the apprenticeship
programmes which are typically 3 or 4 years in duration and income is 'drip fed' on a monthly basis by the
Education and Skills Funding Agency (ESFA) with 20% being retained until apprentices reach Gateway.

Future plans
SETA has a well-established reputation for delivering high quality, value for money engineering apprenticeships and commercial training courses. The creation of apprenticeship service teams encompassing recruitment, technical, funding, pastoral and end assessment are fundamental to help employers understand the changes to funding rules annually and extract maximum value from their Levy investment. SETA has established a package providing a competitive edge against competitors and will continue to help secure apprenticeship contracts with employers far and wide.

SETA is the largest provider of engineering training services in the South; we must continue to review funding viability on schemes and ensure apprenticeship training is sustainable to deliver whilst ensuring employers see a return on their levy investment. Nearly all new apprenticeships are provided at Level 3 or 4 and attract the highest funding band available; very few apprenticeships are provided at Level 2 which are not sustainable or popular with employers and offer candidates limited progression opportunities. We must continue engagement services with local Schools, FE Colleges and Partners, Award Organisations, Stakeholders and the local community to promote career opportunities within our Sector as this will ensure a sustainable feeder system of potential new apprenticeship applicants. Forging links with Universities and Professional Engineering Institutions will be crucial to facilitate progression pathways and higher retention levels of the skilled employee workforce.

We run a schedule of Taster days, Jobs Fairs and other open events to encourage young people into the Centre to see what encompasses an engineering apprenticeship.

SETA has a commercial facility which provides end point assessment services for electro-technical qualifications and a wide range of electrical, mechanical health & safety and hazardous area training courses. The income earned from these services represents 52% (2023: 50%) of our income and is crucial to funding the apprenticeship training services we provide. We must continue to add to our portfolio to enable this provision to grow to meet any future apprenticeship reforms.

SETA has been delivering apprenticeships at the centre in First Avenue since 1969, and the building is becoming increasingly difficult to maintain and meet the requirements of new, sustainability aspirations. The commercial delivery and assessment is delivered from a smaller building in Second Avenue which can cause operational challenges. The long-term objective is to move to a larger, modern facility to encompass operations in one place.

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

The governing document is the Memorandum and Articles of Association, dated 28th January 1970. This document was reviewed and updated in 2021 in line with changes to the charity operating procedures.

Recruitment and appointment to the Council of Trustees
Invitations are extended to the user members of the charity to nominate one person as a member and Director of the charity. The charity, having no share capital, is run by the Council of Trustees and no individual is able to exercise control of the charity.


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024


STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
Day to day management of the charity is under control of the CEO, Julie Gough, who acts in accordance with the instructions of the Council of Trustees / Board of Directors.

There are thee principal areas of operation:

1)Delivery of Engineering Apprenticeships
2)Commercial training
3)Competency assessment

All activities including support services, finance, personnel, IT, marketing, compliance, health & safety and membership are managed through the key management team. Consultants are retained on annual contracts to provide specialist support in the areas of IT and Personnel Management.

Remuneration for key management personnel is governed by limits set by the Trustees. Performance is assessed by the Trustees.

The charity operates a defined contribution pension scheme open to all staff. The charity contributes 10% of gross salary to the scheme for each staff member employed prior to August 2021, and a minimum of 3% for staff recruited after this date. Staff will contribute a minimum of 5% to reach the 8% Government requirement.

Induction and training of new trustees
Potential trustees are invited to apply to become involved with the charity and learn more about the contribution they can make. A formal application must be made to the Directors for their approval. A formal explanation of responsibilities is provided before an appointment is confirmed.

REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
00971293 (England and Wales)

Registered Charity number
307299

Registered office
First Avenue
Millbrook
Southampton
Hampshire
SO15 0LJ

Trustees
Ms J E Freemantle Resigned 20 May 2024
G E Mason
T J Millard
C J Savage
Ms A Lancashire
Mr K Brett Appointed 28 May 2024

Company Secretary
R W Heighington


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024


REFERENCE AND ADMINISTRATIVE DETAILS
Auditors
Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR

Key Management:
M D Driscoll COO until 30 April 2024
Mrs J D Gough CEO

Bankers
National Westminster Bank plc
12 High Street
Southampton
Hampshire
SO14 2NX

GOING CONCERN
The association operates on a daily basis using a combination of bank facilities, credit card borrowing and credit from suppliers.

The trustees have a reasonable expectation that the charity has adequate reserves to continue in operation for the foreseeable future and continue to adopt the going concern basis of accounting in preparing the annual financial statements.

STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Southampton Engineering Training Association Limited (The) for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

-select suitable accounting policies and then apply them consistently;
-observe the methods and principles in the Charity SORP;
-make judgements and estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 31 AUGUST 2024


STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
In so far as the trustees are aware:

-there is no relevant audit information of which the charitable company's auditors are unaware; and
-the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS
The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 31 January 2025 and signed on the board's behalf by:





R W Heighington - Secretary

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)


Opinion
We have audited the financial statements of Southampton Engineering Training Association Limited (The) (the 'charitable company') for the year ended 31 August 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

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

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- 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
- certain disclosures of trustees' remuneration specified by law are not made; 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 purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Principles and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs, correspondence and a review of board minutes.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)


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




Michaela Johns FCCA (Senior Statutory Auditor)
for and on behalf of Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR

31 January 2025

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Unrestricted
funds Total funds
Notes £ £
INCOME AND ENDOWMENTS FROM
Donations and legacies 2 22,429 13,181

Charitable activities 4
Courses and training 3,030,581 2,786,636

Investment income 3 1,333 579
Total 3,054,343 2,800,396

EXPENDITURE ON
Raising funds 5 648 648

Charitable activities 6
Courses and training 488,115 439,167
Staff costs 2,086,486 1,966,038
Establishment 199,173 174,981
Plant material and equipment 55,353 59,819
General expenses 222,009 194,803
Total 3,051,784 2,835,456

NET INCOME/(EXPENDITURE) 2,559 (35,060 )


RECONCILIATION OF FUNDS
Total funds brought forward 302,206 337,266

TOTAL FUNDS CARRIED FORWARD 304,765 302,206

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE) (REGISTERED NUMBER: 00971293)
TRADING AS SETA

BALANCE SHEET
31 AUGUST 2024

2024 2023
Unrestricted
funds Total funds
Notes £ £
FIXED ASSETS
Tangible assets 12 355,974 360,912

CURRENT ASSETS
Debtors 13 281,415 284,171
Cash at bank and in hand 37,203 40,931
318,618 325,102

CREDITORS
Amounts falling due within one year 14 (362,637 ) (346,472 )

NET CURRENT ASSETS (44,019 ) (21,370 )

TOTAL ASSETS LESS CURRENT
LIABILITIES

311,955

339,542

CREDITORS
Amounts falling due after more than one year 15 (7,190 ) (37,336 )

NET ASSETS 304,765 302,206
FUNDS 18
Unrestricted funds 304,765 302,206
TOTAL FUNDS 304,765 302,206


The financial statements were approved by the Board of Trustees and authorised for issue on 31 January 2025 and were signed on its behalf by:





T J Millard - Trustee

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

2024 2023
Notes £ £

Cash flows from operating activities
Cash generated from operations 1 34,560 42,552
Interest paid (648 ) (648 )
Net cash provided by operating activities 33,912 41,904

Cash flows from investing activities
Purchase of tangible fixed assets (28,973 ) (33,331 )
Interest received 1,333 579
Net cash used in investing activities (27,640 ) (32,752 )

Cash flows from financing activities
Loan repayments in year (10,000 ) (10,000 )
Net cash used in financing activities (10,000 ) (10,000 )

Change in cash and cash equivalents in
the reporting period

(3,728

)

(848

)
Cash and cash equivalents at the
beginning of the reporting period

40,931

41,779
Cash and cash equivalents at the end of
the reporting period

37,203

40,931

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024


1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM
OPERATING ACTIVITIES
2024 2023
£ £
Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)

2,559

(35,060

)
Adjustments for:
Depreciation charges 33,911 36,792
Interest received (1,333 ) (579 )
Interest paid 648 648
Decrease/(increase) in debtors 2,756 (53,411 )
(Decrease)/increase in creditors (3,981 ) 94,162
Net cash provided by operations 34,560 42,552


2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£ £ £
Net cash
Cash at bank and in hand 40,931 (3,728 ) 37,203
40,931 (3,728 ) 37,203

Debt
Debts falling due within 1 year (10,056 ) (254 ) (10,310 )
Debts falling due after 1 year (17,444 ) 10,254 (7,190 )
(27,500 ) 10,000 (17,500 )
Total 13,431 6,272 19,703

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024


1. ACCOUNTING POLICIES

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

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

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

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



Leasehold premises (1st Avenue - building)Over the remaining period of the 83 year lease
Short leasehold premises (2nd Avenue - land)Over 10 years straight line
Plant and equipment20% - 33.33% reducing balance

Taxation
The charity is exempt from corporation tax on its charitable activities.

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

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits
The association continues to contribute to three defined contribution schemes. Contributions are charged to the income and expenditure account as they become payable.

Government grants
The following government grants were received in the prior year:


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


1. ACCOUNTING POLICIES - continued

Government grants
Business Interruption Payment (BIP) under the Bounce Back Loan scheme: The BIP is payable in respect of the loan interest for the first 12 months, together with any related fees. The accrual model has been used to recognise the income on a systematic basis over the periods in which the related finance costs are incurred. The company has also benefited from the UK government's provision of security for 100% of the loan.

Leased assets
Amounts paid under operating leases are charged to the income and expenditure account as incurred.

Grants
Grants receivable in respect of fixed assets are treated as deferred income which are credited to the income and expenditure account over the estimated economic lives of the related assets.

2. DONATIONS AND LEGACIES
2024 2023
£ £
Donations 22,429 13,181

3. INVESTMENT INCOME
2024 2023
£ £
Deposit account interest 1,333 579

4. INCOME FROM CHARITABLE ACTIVITIES
2024 2023
Courses and Total
training activities
£ £
Employer contributions 54,175 40,753
Training 132,798 195,047
Welding courses 57,780 46,018
ESFA funding 1,488,878 1,273,864
Miscellaneous income 12,481 1,116
Canteen sales and sundry 993 1,686
Commercial courses 959,179 927,487
AM2 testing 300,914 292,989
Travel recovered 23,383 7,676
3,030,581 2,786,636


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


5. RAISING FUNDS

Other trading activities
2024 2023
£ £
Interest payable and similar charges 648 648

6. CHARITABLE ACTIVITIES COSTS
Support
Direct costs (see
Costs note 7) Totals
£ £ £
Courses and training 488,115 - 488,115
Staff costs 2,086,486 - 2,086,486
Establishment 199,173 - 199,173
Plant material and equipment 55,353 - 55,353
General expenses 208,039 13,970 222,009
3,037,166 13,970 3,051,136

7. SUPPORT COSTS
Governance
Management costs Totals
£ £ £
General expenses 3,295 10,675 13,970

8. NET INCOME/(EXPENDITURE)

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

2024 2023
£ £
Auditors' remuneration 6,835 6,510
Auditors' remuneration for non audit work 3,840 3,940
Depreciation - owned assets 33,911 36,793
Other operating leases 92,941 94,527


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


9. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2024 nor for the year ended 31 August 2023.


Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2024 nor for the year ended 31 August 2023.

10. STAFF COSTS
2024 2023
£ £
Wages and salaries 1,753,850 1,641,846
Social security costs 181,377 172,641
Other pension costs 140,313 144,924
2,075,540 1,959,411

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

2024 2023
Employees 48 47

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2024 2023
£60,001 - £70,000 1 1
£70,001 - £80,000 2 2
3 3

Contributions were made into the Pension Schemes for the higher paid employees of £19,298 (2023: £19,320).

The total key management remuneration including pension and benefits as noted above is £166,279 (2023: £174,393)

During the year, two employees were paid a total of £18,459 (2023: £nil) as a result of redundancy.


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 13,181

Charitable activities
Courses and training 2,786,636

Investment income 579
Total 2,800,396

EXPENDITURE ON
Raising funds 648

Charitable activities
Courses and training 439,167
Staff costs 1,966,038
Establishment 174,981
Plant material and equipment 59,819
General expenses 194,803
Total 2,835,456

NET INCOME/(EXPENDITURE) (35,060 )


RECONCILIATION OF FUNDS
Total funds brought forward 337,266

TOTAL FUNDS CARRIED FORWARD 302,206


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


12. TANGIBLE FIXED ASSETS
Short Long Plant and
leasehold leasehold machinery Totals
£ £ £ £
COST
At 1 September 2023 74,370 335,000 892,199 1,301,569
Additions - - 28,973 28,973
At 31 August 2024 74,370 335,000 921,172 1,330,542
DEPRECIATION
At 1 September 2023 74,370 62,414 803,873 940,657
Charge for year - 8,916 24,995 33,911
At 31 August 2024 74,370 71,330 828,868 974,568
NET BOOK VALUE
At 31 August 2024 - 263,670 92,304 355,974
At 31 August 2023 - 272,586 88,326 360,912

The long term leasehold premises were re-valued to £335,000 on 9 November 2016 by Hughes Ellard Limited.

If the buildings had not been included at valuation, they would have been included under the historical cost convention as follows:

20242023
£   £   
Cost383,307383,307
Accumulated depreciation(204,179)(197,781)
179,128185,526

There were no capital commitments outstanding at 31 August 2024 (2023: £nil).

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 115,614 152,531
Prepayments 165,801 131,640
281,415 284,171


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Bank loans and overdrafts (see note 16) 10,310 10,056
Trade creditors 39,844 46,347
Social security and other taxes 154,741 99,192
VAT 43,192 41,397
Other creditors 1,713 872
Accruals and deferred income 84,386 102,573
Income in advance 28,451 46,035
362,637 346,472

The bank overdraft is secured on all the assets of the company.

Deferred income relates to course deposits and fees, which have been invoiced, but not performed by the year end. Deferred income is included in other creditors above.




The amount of this income is as follows:
20242023
£   £   
Deferred at 31 August 202346,03552,684
Release during the year(46,035)(52,684)
Deferred during the year28,45146,035
Deferred at 31 August 202428,45146,035

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£ £
Bank loans (see note 16) 7,190 17,444
Social security and other taxes - 19,892
7,190 37,336


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


16. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year on demand:
Bank loans 10,310 10,056
Amounts falling between one and two years:
Bank loans - 1-2 years 7,190 10,331
Amounts falling due between two and five years:
Bank loans - 2-5 years - 7,113

17. LEASING AGREEMENTS

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

2024 2023
£ £
Within one year 58,828 61,387
Between one and five years 202,450 221,491
In more than five years 983,600 1,023,600
1,244,878 1,306,478

18. MOVEMENT IN FUNDS
Net Transfers
movement between
At 1.9.23 in funds funds At 31.8.24
£ £ £ £
Unrestricted funds
General fund 214,692 2,559 2,868 220,119
Fair value reserve 87,514 - (2,868 ) 84,646
302,206 2,559 - 304,765
TOTAL FUNDS 302,206 2,559 - 304,765

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


18. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 3,054,343 (3,051,784 ) 2,559

TOTAL FUNDS 3,054,343 (3,051,784 ) 2,559


Comparatives for movement in funds

Net Transfers
movement between
At 1.9.22 in funds funds At 31.8.23
£ £ £ £
Unrestricted funds
General fund 246,892 (35,060 ) 2,860 214,692
Fair value reserve 90,374 - (2,860 ) 87,514
337,266 (35,060 ) - 302,206
TOTAL FUNDS 337,266 (35,060 ) - 302,206

Comparative net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 2,800,396 (2,835,456 ) (35,060 )

TOTAL FUNDS 2,800,396 (2,835,456 ) (35,060 )

SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


18. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Net Transfers
movement between
At 1.9.22 in funds funds At 31.8.24
£ £ £ £
Unrestricted funds
General fund 246,892 (32,501 ) 5,728 220,119
Fair value reserve 90,374 - (5,728 ) 84,646
337,266 (32,501 ) - 304,765
TOTAL FUNDS 337,266 (32,501 ) - 304,765

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 5,854,739 (5,887,240 ) (32,501 )

TOTAL FUNDS 5,854,739 (5,887,240 ) (32,501 )

19. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2024 nor for the year ended 31 August 2023.

20. COMPANY STATUS

The Association is limited by guarantee of the members, each of whom is due to contribute a maximum of £10 whilst a member or, within one year of ceasing to be member. The number of members, who are the trustees, in 2024 was 5 (2023: 5).


SOUTHAMPTON ENGINEERING TRAINING
ASSOCIATION LIMITED (THE)
TRADING AS SETA

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024


21. TAXATION

The association has charitable status and exemption from taxation has been granted under the Corporation Taxes Act 2010.