National Electrotechnical Training Org - Charities report - 18.1

REGISTERED COMPANY NUMBER: 03389705 (England and Wales)

REGISTERED CHARITY NUMBER: 1068863

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR

ENDED 31 MARCH 2018

FOR

NATIONAL ELECTROTECHNICAL

TRAINING

ORGANISATION

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

CONTENTS OF THE FINANCIAL STATEMENTS

for the year ended 31 March 2018

Page

Reference and administrative details

1

Report of the trustees

2 to 4

Report of the independent auditors

5 to 6

Statement of financial activities

7

Balance sheet

8

Cash flow statement

9

Notes to the cash flow statement

10

Notes to the financial statements

11 to 17

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 MARCH 2018

TRUSTEES

R J Clarke

F Harper

A J Smith

B McAulay

A Meikle

F S Clayton (Director) (appointed 28.2.18)

S E Martin (Director) (appointed 28.2.18)

COMPANY SECRETARY

Ms C Mason

REGISTERED OFFICE

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

REGISTERED COMPANY NUMBER

03389705 (England and Wales)

REGISTERED CHARITY NUMBER

1068863

AUDITORS

F W Berringer & Co

Chartered Accountants

and Statutory Auditors

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

REPORT OF THE TRUSTEES

for the year ended 31 March 2018

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 March 2018. 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 2015).

OBJECTIVES AND ACTIVITIES

Objectives and policies

The National Electrotechnical Training Organisation (NET) is a company limited by guarantee and has charitable status.

Presently, NET's primary objective is to develop and maintain assessments of occupational competence and to ensure sufficient

licensed centres to meet demand for the assessments. At present there are 38 centres and the market is such that a number in the

region of 35-40 will provide sufficient capacity for the next three to five years.

Public benefit

Following the Government's implementation of the Charities Act 2011, the Trustees are cognisant of their responsibilities in

demonstrating public benefit as set out in guidance provided by the Charity Commission. The Charity has and continues to

demonstrate a number of areas of public benefit including and not limited to developing and maintaining the assessments of

occupational competence required by the UK electrical and engineering industry, and supporting initiatives, such as SkillElectric in

partnership with World Skills UK, which positively promote careers, best practice and skills.

ACHIEVEMENT AND PERFORMANCE

Review of the year

During the year NET generated income of £729,877 (2017: £425,170), paid out £362,580 (2017: £416,243) in costs and has total

reserves carried forward of £668,852 (2017: £301,555). NET also received a restricted grant totalling £11,397 towards the delivery

and management of Electrical Installation skills and associated accommodation costs.

The profile of assessments of occupational competence is improving, with an increase in recognition of the value of the assessment

both as the end-point assessment component of an apprenticeship or vocational qualification and as a standalone demonstration of

competence to industry recognised standards.

The comprehensive review of the AM2 assessment carried out in 2010 is ongoing, with regular reviews to ensure its continued

value to the industry. A further update to the systems supporting the assessment is under way, ensuring continued compliance with

evolving standards.

AM2/FICA Skills Test intellectual copyright

AM2 and FICA are the industry approved assessments of occupational competence (AoC) undertaken by advanced apprentices and

others throughout the UK when qualifying as installation electricians to industry recognised standards.

NET owns the copyright and the assets that are AM2 in their entirety and annually licenses the network of approved centres.

FINANCIAL REVIEW

Investment policy

Cash at bank above £25,000 is held on deposit. No other investments are envisaged.

Reserves policy

It is anticipated that the level of NET's activity in support of the licensed centre network and other initiatives will rise in the near

future; NET has devoted resources to ensure this activity is properly supported and undertaken promotion and support activities,

such as a Centre Conference, together with additional work on apprentice exchanges and other initiatives, as necessary.

FUTURE PLANS

The network of licensed centres will be subject to review and, if necessary, development under NET's stewardship. Opportunities

for the development of other relevant assessments of competence will be evaluated.

Work will be undertaken to evaluate how the Charity can best utilise its available resources in support of its objectives.

NET continues to review both the structure and content of its assessments and the support and services it provides to the licensed

centre network, such as product development, marketing, PR and the development of web services.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

NET is a Company Limited by Guarantee and not having share capital. The parties signed the relevant Memorandum and Articles

of Association on 13 June 1997.

Trustee recruitment and induction

Board meetings are held three times a year, subject to regular review.

The respective stakeholders nominate trustees to an agreed ratio. They are not required to submit to re-nomination. The position of

Chairman changes at intervals.

Related parties

The three stakeholders in NET (UNITE, ECA and SELECT) have restated their commitment to the future of the organisation and

their belief that its work is of importance to the industry.

AM2 and FICA remain the preferred, and only, assessments of occupational competence (AoC) recognised by employers and union

alike. This is reflected in the prominent part they play in the grading process of the Joint Industry Board (JIB) and the Scottish Joint

Industry Board (SJIB) and the Electrotechnical Certification Scheme (ECS).

STATEMENT OF TRUSTEES RESPONSIBILITIES

Directors' responsibilities for the financial statements

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the

financial activities of the charitable company during the period and of their financial position at the end of the period. In preparing

those financial statements, the directors should follow best practice and:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable accounting standards and statements of recommended practice 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 charity will continue in

operation.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position

of the charitable company and which enable them to ascertain their financial position and 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 for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the directors is aware at the time the report is approved:

- there is no relevant audit information of which the company's auditors are unaware, and

- the directors 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, F W Berringer & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 29 June 2018 and signed on its behalf by:

A J Smith - Trustee

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

Opinion

We have audited the financial statements of National Electrotechnical Training Organisation (the 'charitable company') for the year ended 31 March 2018 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).

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.

In our opinion the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 March 2018 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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.

Opinion 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.

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; or

-

the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic report or in preparing the Report of the trustees.

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.

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.

John Cardnell BSc FCA (Senior Statutory Auditor)

for and on behalf of F W Berringer & Co

Chartered Accountants

and Statutory Auditors

Lygon House

50 London Road

Bromley

Kent

BR1 3RA

29 June 2018

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

for the year ended 31 March 2018

2018

2017

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

-

11,397

11,397

-

Charitable activities

4

Direct charitable activities

729,746

-

729,746

424,893

Investment income

3

131

-

131

277

Total

729,877

11,397

741,274

425,170

EXPENDITURE ON

Charitable activities

5

Direct charitable activities

362,580

11,397

373,977

416,243

NET INCOME

367,297

-

367,297

8,927

RECONCILIATION OF FUNDS

Total funds brought forward

301,555

-

301,555

292,628

TOTAL FUNDS CARRIED FORWARD

668,852

-

668,852

301,555

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

BALANCE SHEET

At 31 March 2018

2018

2017

Unrestricted fund

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Intangible assets

12

13,790

-

13,790

20,685

Tangible assets

13

15,038

-

15,038

21,887

28,828

-

28,828

42,572

CURRENT ASSETS

Debtors

14

104,174

-

104,174

58,560

Cash at bank

582,749

-

582,749

234,446

686,923

-

686,923

293,006

CREDITORS

Amounts falling due within one year

15

(46,899

)

-

(46,899

)

(34,023

)

NET CURRENT ASSETS

640,024

-

640,024

258,983

TOTAL ASSETS LESS CURRENT LIABILITIES

668,852

-

668,852

301,555

NET ASSETS

668,852

-

668,852

301,555

FUNDS

17

Unrestricted funds

668,852

301,555

Restricted funds

-

-

TOTAL FUNDS

668,852

301,555

These financial statements have been prepared in accordance with the

special provisions of Part 15 of the Companies Act 2006 relating to

charitable small companies.

The financial statements were approved by the Board of Trustees on 29 June 2018 and were signed on its behalf by:

A J Smith -Trustee

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

CASH FLOW STATEMENT

for the year ended 31 March 2018

2018

2017

Notes

£

£

Cash flows from operating activities:

Cash generated from operations

1

348,961

24,906

Net cash provided by (used in) operating activities

348,961

24,906

Cash flows from investing activities:

Purchase of tangible fixed assets

(658

)

-

Net cash provided by (used in) investing activities

(658

)

-

Cash flows from financing activities:

Loan repayments in year

-

(133,200

)

Net cash provided by (used in) financing activities

-

(133,200

)

Change in cash and cash equivalents in the reporting period

348,303

(108,294

)

Cash and cash equivalents at the beginning of the reporting period

234,446

342,740

Cash and cash equivalents at the end of the reporting period

582,749

234,446

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

NOTES TO THE CASH FLOW STATEMENT

for the year ended 31 March 2018

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2018

2017

£

£

Net income for the reporting period (as per the statement of financial activities)

367,297

8,927

Adjustments for:

Depreciation charges

14,402

17,822

(Increase)/decrease in debtors

(45,614

)

5,439

Increase/(decrease) in creditors

12,876

(7,282

)

Net cash provided by (used in) operating activities

348,961

24,906

NATIONAL ELECTROTECHNICAL TRAINING

ORGANISATION

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 March 2018

1.	ACCOUNTING POLICIES

Basis of preparation

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 2015)', 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.

The financial statements follow the recommendations in the Statement of Recommended Practice: Accounting and

Reporting by Charities (Charities SORP 2005). They have been prepared under the historical cost convention.

The principal accounting policies are set out below.

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.

Intangible fixed assets

The intellectual copyright associated with the AM2 program is being amortised over ten years. An impairment review was

carried out during the year by the trustees and no impairment was deemed necessary.

Tangible fixed assets

Assets are written off on a reducing balance basis at a rate of 33% per annum. An impairment review was carried out during

the year by the trustees and no impairment was deemed necessary.

Fund accounting

The following definitions are based on SORP.

Unrestricted funds - are donations and other incoming resources received or generated for expenditure on the general

objectives of the charity.

Designated funds- are unrestricted funds which have been designated for specific purposes by the directors. No designated

funds are held.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable

company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	DONATIONS AND LEGACIES

2018

2017

£

£

Grants

11,397

-

Grants received, included in the above, are as follows:

2018

2017

£

£

Find a Future

11,397

-

Grants consists of monies received from Find a Future, a charitable organisation, towards the delivery and management of

Electrical Installation skills and associated accommodation costs. The grants received were fully utilised prior to the end of

the financial year.

3.	INVESTMENT INCOME

2018

2017

£

£

Investment income

131

277

4.	INCOME FROM CHARITABLE ACTIVITIES

2018

2017

Activity

£

£

Licence Fees Received

Direct charitable activities

240,844

187,010

Marking

Direct charitable activities

484,076

233,010

Other income

Direct charitable activities

500

2,433

Replacement Certificates & monitoring

Direct charitable activities

4,326

2,440

729,746

424,893

5.	CHARITABLE ACTIVITIES COSTS

Direct costs

Support costs

Totals

(See note 6)

£

£

£

Direct charitable activities

370,133

3,844

373,977

Projects relates to Skill Electric and includes sponsorship and grants received and expenditure thereon.

6.	SUPPORT COSTS

Finance

Governance costs

Totals

£

£

£

Direct charitable activities

209

3,635

3,844

7.	NET INCOME/(EXPENDITURE)

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

2018

2017

£

£

Auditors' remuneration

3,635

3,565

Depreciation - owned assets

7,507

10,927

Intellect Property Rights Cost amortisation

6,895

6,895

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2018 nor for the year ended

31 March 2017.

Trustees' expenses

During the year £934 (2017:£759) was repaid to trustees as reimbursement for expenses incurred on the charity's behalf.

9.	STAFF COSTS

2018

2017

£

£

Wages and salaries

32,371

30,871

Other pension costs

4,634

3,859

37,005

34,730

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

2018

2017

Average number of employees

1

1

No employees received emoluments in excess of £60,000.

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

£

INCOME AND ENDOWMENTS FROM

Charitable activities

Direct charitable activities

424,893

Investment income

277

Total

425,170

EXPENDITURE ON

Charitable activities

Direct charitable activities

416,243

Total

416,243

NET INCOME

8,927

RECONCILIATION OF FUNDS

Total funds brought forward

292,628

TOTAL FUNDS CARRIED FORWARD

301,555

11.	COMMITMENTS AND CONTINGENCIES

National Electrotechnical Training Organisation had no capital commitments at 31 March 2018 nor 31 March 2017. There

were no contingent liabilities at either date.

12.	INTANGIBLE FIXED ASSETS

Intellect Property Rights Cost

£

COST

At 1 April 2017

68,949

AMORTISATION

At 1 April 2017

48,264

Charge for year

6,895

At 31 March 2018

55,159

NET BOOK VALUE

At 31 March 2018

13,790

At 31 March 2017

20,685

13.	TANGIBLE FIXED ASSETS

Equipment

Computer software

Totals

£

£

£

COST

At 1 April 2017

70,456

331,283

401,739

Additions

658

-

658

At 31 March 2018

71,114

331,283

402,397

DEPRECIATION

At 1 April 2017

69,420

310,432

379,852

Charge for year

564

6,943

7,507

At 31 March 2018

69,984

317,375

387,359

NET BOOK VALUE

At 31 March 2018

1,130

13,908

15,038

At 31 March 2017

1,036

20,851

21,887

14.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

41,161

16,226

Other debtors

14,533

4,433

VAT

3,980

4,271

Prepayments and accrued income

44,500

33,630

104,174

58,560

15.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

20,957

3,572

Other creditors

10,216

10,309

Accrued expenses

15,726

20,142

46,899

34,023