!:.ilJ,;-"jN..4.- Stepping Stone IIuii¢'m ANNUAL REPORT 2023124 Stepping Stone Projects Email.. central@stepping-stone.org.uk Tel.. 01706 353000 Stepping Stone Projects
v. TABLE OF CONTENTS ' Infonnatlon......................,........,.... j.pt,.% How is SSP governed and managed.............. . Striving to be the best- Sue Ashby ..................... .. . . What IS the purpose of SSP?................................. l Human Impact- Customer Stories -.... . J Chief Executive and trustees summary of 2023-24 At a glance our.SSP 2023124., .10 Our new Blackburn Projects ;....... .11 Other new projects............ . . .12 Our new strategic plan and vision.. .13 ' Campaigns to prevent and combat homelessness and change policies.. .14 Concluslon ...................... .. .15 ,r-¥'.i Financial review....... .16 , Trustees responslbilities.......... .18 Independent Auditors. report................................................ ..... . 19 Statement of financial activities.. year ended 31 March 2024.................................. .21 Balance sheet: as at 31 March 2024 .. .22 Statement of cash flows . year ended 31 March 2024 ......... 23 Notes to the accounts . 24 14¥ ¥,:;1.:1'
INFORMATION Chair Company Secretary Mr Christopher Tait Ms S Ashby Charity Trustees Ms Susan Ashby Mrs Janet Hardwick Mr David Berry Mr Nicholas Cox Mr Alexander Lyons Mr Steven Grycuk Mr Colin Royle Ms Kelly Webb Ms Elizabeth Lilley Ms Michaela Orr (appointed 28.02.2024) Chief Executive Officer Mr Dave Smith Company Number 2647645 Registered Charity Number 1004375 Reglstered Office 2 The Quadrant. Green Lane, Heywood OL10 1NG Auditors BK Plus Audit Limited, Sterling House, 501 Middleton Road, Chadderton, Oldham, OL9 9LY Bankers Bank of Scotland, Ground Floor, Teviot House, 41 South Gyle Crescent, Edinburgh,EH12 9DR SoliGitors Wrigley Claydon, 29133 Union Street, Oldham, OL1 1 HH
HOW IS SSP GOVERNED AND MANAGED The Trustees, who are also directors for the purposes of the Companies Act, present their report and audited financial statements for the year ended 31 March 2024. Structure stepping Stone Projects is a company limited by guarantee, its governing document being its Memorandum and Articles of Association. The company was incorporated on 20 September 1991 (company number 2647645) and is a registered charity (number 1004375). The directors of the company are its Trustees for the purposes of charity law and under its Memorandum and Articles of Association are collectively referred to throughout this report as The Board of Trustees. The Charity's principal objectives are to relieve persons who are homeless or in necessitous circumstances. Governance Stepping Stone Projects has a Board of Trustees of up to fourteen members, who are responsible for strategic direction and policy. At present the Charity has ten members from a variety of professional backgrounds relevant to the work of the organisation. The Trustees during the year were: Ms Susan Ashby MrAlexand8rs Lyon Mr David Berry Ms Janet Hardwick Mr Nicholas Cox Ms Kelly Webb Mr Colin Royle Ms Elisab8th Lilley Mr Steven Grycuk Ms Michaela Orr Under the requirements of the Charity's Memorandum and Articles of Association the Chair is elected annually. Other members of the Board of Trustees are elected for a period of three years, after which they must be re- elected at the next Annual General Meeting. The Board of Trustees meets every six weeks with the agenda focus alternating beeen strategy and compliance l assurance activities. In addition each trustee serves on one of our sub- committees (Finance and Remuneration; Risk and Compliance) both of which meet quarterly. A fresh recruitment process was undertaken in earfy 2024. following interview 14s Michaela Orr was approved as a trustee and attended the January 2024 meeting as an observer. The appointment was unanimously formally approved by trustees at the 28th . February 2024 Board meeting. We are delighted to welcome Michaela as a new trustee and as our first ever former customer on our Board.
Management Day-to-day responsibility for the provision of seniices is delegated to the Senior Leadership Team consisting of a Chief Executive, Director of Operations, 2 x Assistant Director of Operations, a Director of Resources and temporarily our Digital Transformation Specialist, none of whom is a director as defined by company law. Systems of internal controls are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include: A strategic plan, annual delivery plans and budget approved by the Trustees. Regular consideration by the Trustees of operational service delivery and financial results. variance from budgets, non-financial performance indicators and benchmarking reviews" Delegation of authority and segregation of duties., Identification and management of risks. The Trustees have introduced a formal risk management process to assess business risks and implement risk management strategies. The risk strategy policy comprises.. An annual review of the risks the Charity may face., The establishment of systems and procedures to mitigate those risks identified in the plan., The implementation of procedures designed to minimise any potential impact on the Charity should any of those risks materialise. An element in the management of financial risk is our reserves policy and its annual review by the Trustees. Training Any new Trustees are invited and encouraged to attend a series of short induction sessions to familiarise themselves with the Charity and its workings. The Chair and the Chief Executive of the Charity jointly lead these sessions which include details of: The fiduciary responsibilities of the Board of Trustees under charity and company law., The operational framework of the Charity and its decision-making process., The contents of its Memorandum and Articles of Association. The Business Plan which sets out its future plans and objectives" and The latest set of statutory account5. Use is also made of various Charity Commission publications, in particular "The Essential Trustee" guide, which is included in the information pack sent to all new and potential Trustees. New Trustees are encouraged to feed back to the Chair on the induction process.
LIFE BEGINS AT 40- STRIVING TO BE THE BEST Chair ofthe Board ofTrustees, Sue Ashby This year we are celebrating the 40th anniversary since the formation of Stepping Stone Projects. During this time we have grown from providing just 2 properties for rough sleepers irb 1984 to now havirsg nearly 800 properties in our management, supporting c1.500 customers per annum, with c185 employees and a turnover of c£12m. Having now been a trustee of Stepping Stone Projects for the last 26 years and Chair for the last 25 years, l am extremely proud of what we have delivered and achieved but also that we have stayed true to our purpose, mission and vision. As a charity we remain fully independent and totally focused on preventing and combatting homelessness. By doing this we are now in a position to help so many more people to support them to live independently, thrive and to transform their lives. 2023IZ4 wasi yet again, another memorable and on the whole successful yearfor SSP. We believe we have made great strides forward over this and the previous few year5. This year we have continued to grow (more than we planned as we took over 2 larye services in Blackburn), we have improved further on overall customer and colleague satisfaction levels to now be 98010 and 870/0 respectively and we have invested more into digital transformation, Improving our homes and seNices, colleagues development and health and well-being and into adding more social, value to everything we do, Despite challenges from the national housing crisis and economic pressures, SSP is dedicated to ending homelessness by 2034 with the support of its community, partners, and stakeholders.
WHAT IS THE PURPOSE OF SSP? Objectives and activities for the public benefit The Memorandum and Articles of Association were reviewed and some minor amendments were agreed and ratified by Trustees in June 2021. Following consent from the Charity Commission to the minor changes to the objects of the charity, the new documents were registered with Companies House and the Charity Commission. The Charity's principal objectives as set out in its Memorandum of Association are to relieve persons who are homeless, threatened with homelessness. vulnerable or in necessitous circumstances by: a) Providing an advice and counselling service in matters relating to housing and associated social and economic problems., and b) Providing temporary and permanent accommodation or assistance in the provision of permanent accommodation and housing-related support and intensive management services for such persons. Our mission is to prevent homelessness. support independence, and transform lives. We achieve this by providing readily accessible support services to assist customers in securing and maintaining their own independent accommodation as soon as they are able. We believe that everyone has a right to quality accommodation and services which help them to achieve their optimum level of independence. We believe that in providing homes and services we are complying with our duty under the Charities Act and acting in accordance with Charity Commission guidance on public benefit. Moving into one of our A Bed Every Night properties helped Joanne to develop., her independence and secure long-term accommodation with the support she needs. She's now applying for &,.è: suitable homes weeklyi and is producing artwork and .. poetryi which has been *: t: shown at local events.
OUR NEW STRATEGIC PLAN AND VISION Our previous 5-year strategic plan, devised in 2020 and due to be completed by 2025, has now largely been delivered. Therefore our strategic plan was reviewed by our Board in 2023 in close consultation with our colleagues. The Board have agreed to simplify our mission statement based, on colleague feedback, to now be.. It is SSP'5 mission to Prevent homelessness Support independen Transform lives The Board also agreed that our new 10-year vision from 2024 to 2034 needs to be more ambitious and externally focused to meet the wider needs of our homeless or at risk of homeless customers and the needs of our commissioners and comrnunities in the North-west. The Board have now agreed our new vision to be: Together we can end homelessness by 2034. Our Corporate Strategic Plan 2024- 2034 VISION ,K41SSION Tooetlier we can eiid lioinelessiiess by 2034 DYe',.'eri r I"ii);"nc IEbiiiesS .u'rrJr>i't j71)dricF Tra n.')ti)ri'ii Iivg.¢ Stepping Stone Prolecis BEST FOR VALUES CLlSt.omei"s LLilleagLies Pai'tners B&'sines PRIDE Pi'r'rLascional Respectful Di( I-13mic E&CC.Ileni
HUMAN IMPACT- Customer Stories A stable home after 10 years After 10 years of short stays in temporary accommodation, Steven (name changed for anonymity) came to Cherry Bridge Lodge. one of our Grouped Supported Accommodation Projects in Blackburn. Our colleagues helped him to secure a deposit through Blackburn and Darwen Borough Council's Housing Benefit Team (a Discretionary Housing Payment), and supported him to move inlo his own property in an Independent Living Scheme. steven was also able to access money from the SSP hardship fund, IA pot of funding to help the customers disproportionately affected by the cost of living crisis), to buy a sofa, a fridge-freezer and a £200 shopping voucher. Support to gain experience Liam moved into our Stap Forward Hyndburn Grouped Accommodalion Project in May 2023 after periods of living in hoslels and sleeping in a tent through the winter. Our Employment Support Advisor. worked with him to identify his goals and aspirations and then, supported him to enrol in a Level 2 Railway Engine8ring course via Changing Lives. Upon completing the course he was offered a full time paid position at McGinley Support Services to hone his skills further. Liam thrived working on the tracks and his college commended his 'exceptional performance and rapid progression, as 'testaments to his hard work,. Thanks lo the combined support from our Employment, Education, Training service and supported housing teams at SSP, he was able to gain experience working in his dream field and has achieved his goal of securing a permanent job working for Network Rail. SSP Apprenticeships At 18, Hannah became homeless after her foster parents were no longer legally responsible for her and her biological mother had passed away. Despite these challenges she maintained hef ambitions and enrolled at university in Leeds, which also provided temporary housing. After graduation, she was no longer eligible for the university accommodation she had been living in and so became homeless again. The prospect of being homeless Significantly impacting her mental health. Hannah sought help from the housing options support services team in Leeds but was turned away due lo having no local connection. Later, she secured accommodation with YMCA Pendle dispersod housing and received support from Stepping Stone Projects and our dedicated Employment Support Advisor. After significant support from the organisalion, Hannah was offered an apprenticeship with SSP, increasing her income so she could afford her own self-contained and independent, long term property. The apprenticeship with SSP provided stability and structure. It also provided the opportunity for Hannah to thrive, have purpose and work towards a future of her own choosing. After 12 months, Hannah achieved a distinction and secured a full-time job role with SSP, allowing her to maintain her independence.
CHIEF EXECUTIVE AND TRUSTEES SUMMARY OF 2023124 Despite challenges from the national housing crisis and economic pressures, SSP is dedicated to ending homelessness by 2034 with the support of its community, partners, and stakeholders. As well as celebrating our 40th anniversary, everyone at Stepping Stone Projects are also delighted to celebrate our long standing Chair, Sue Ashby, recently announced award of an MBE after 26 years. service to SSP, homelessness and charity work. This honour is so well deserved and a testament to a51 that Sue has achieved and helped lead SSP to deliver over such a long period of time. SSP, fellow trustees and our colleagues are all so proud to have Sue as our Chair. Thank you Sue, and congratulations for all you have done and continue to do for us. Following 4 years of substantial growth SSP have concentrated our efforts on continuing to deliver our vision to be the best, by achieving our 2023124 delivery plan priorities of delivering.. More homes and service capacity to help more people in need, Digital transformation and other service improvements, Increased customer and colleague satisfaction, Continued sustainable business growth, More investment into colleague development and health and well-being, and Increased added social value for our customers and communities, SSP have continued to be successful in delivering against all of these objectives, whilst adapting to our continually more difficult operating environment, the ever-growing need and demand for our homes and services and the increasing uncertainty we are all facing.
AT A GLANCE OUR SSP 2023124 Providing New Homes and Services Sustainably Growing Our Business 203 homes brought into our management 9 new services set up 14 new build homes on site 63 other new homes in development Increased turnover: c£10m to c£12m Now employing c185 FTE'S (incl., agency and temporary posts) Further Surplus of £141k delivered Reserves increased to £S.4m Ofsted registration achieved June 2024 Improving Services Developing Our Colleagues Customer Satisfaction increased to 98/ Colleague Satisfaction increased to 87/ Partner Satisf action at 90Y Satisf action with homes over New Ofsted accredited training courses in progress for young people services Acorn traininé completed by 81 frontline support workers IHASCO on line training for colleagu&s Coroners Court and other compliance training completed by managers Enhanced Health & Well-Being Programme Digital Transformation Adding Social Value New customer Home2Home free Shop set up with Dunelm donations helped 94 customers set up home Customer Clothing store with Sports Direct and BooHoo donations provided essential clothing to 42 customers SSP £50k Hardship Fund spent supporting 158 customers with cash grants 600 free SIM cards provided for customer8 to use Employment and training advice provided to 120 customers 5 apprentices and 1 graduate trainee in post 4 apprenticeships completed and now permanently employed by SSP 5 volunteer8 engaged in Home2Home CDP IT system upgraded & new HOAMS integrated housing management system introduced BoardEffect and Togetherly IT system implemented Prodo Customer Portal procured and in development Handheld tablet technology and docusign being piloted Wif i for customers introduced at all of grouped schemes
OUR NEW BLACKBURN PROJECTS Among our many successes. early in 2023124 we entered into negotiations with Auckland Home Solutions (AHS) and Blackburn with Darwen Council to take-over the management and support services for two failing projects. These are the 2 largest individual grouped schemes we have ever managed (by a considerable margin), conslsting of 64 and 40 bedroomed HMO'S where meals were also provided to customers. This was potentially a big risk for SSP but our Board of Trustees felt we had all the skills and experience needed, to try to ensure this accommodation remained available to homeless people needing support and that transformational property and service improvements were quickly delivered, Beiore Working closely with the AHS and the Council we successfully completed the takeover in June 2023 and immediately set about improving both the accommodation and the services for customers and providing them with customer kitchens to help them better prepare for independent living. After a lot of hard work from the new management and frontline teams, closely supported by our business support teams, along with AHS and the Council, we have now transformed these projects. This includes both property conditions, their facilities and the support and management services, into what are considered to be good quality and very well run projects. They are now nearly always fully occupied (or close to it) and provide 104 badly needed supported homes for some of the most vulnerable people in the region.
OTHER NEW PROJECTS In other notable new business successes we have worked with Rochdale Council and MSV to convert our old offices into 4 high quality flats for rough sleepers, with Elemel to open a 19 bed unit for young people at Saxonside, with RBC, Cornerstone Place and RBH to start to build 14 new homes at Whitworth Road and extended our ABEN provision in Rochdale by a further 23 homes with provision to families as well as single people. We worked with MSV and Manchester Council to set up Chatsworth Grove as an assessment centre for Unaccompanied Asylum Seeking Children and won a new contract to provide a further 40 dispersed units in the city for UASC. We also worked with Ashton Pioneer Homes, Tameside Council and a private sector landlord to set up a new women-only HMO for homeless people at Minto Street. RBH ALL TOGETHER IllJlll¥lltJ' A S H T O N ROCHDALE OAOUGH COUP4CIL Llll&iiJ#.Ull&j.q PJONEER HOMES MANCHESTER S CITY COUNCIL Tameside Metropolitan Borough This continued success, increasing capacity and financial strength means that we continue to be in a very strong position and confident in our ability to meet the future challenges coming our way, to continue to grow and invest further into growing our asset base, improving services and colleague and customer experiences as we strive to deliver our purpose, mission and vision "to be the best"
CAMPAIGNS TO PREVENT AND COMBAT HOMELESSNESS AND CHANGE POLICIES We have already started working with our partners to campaign on homelessness issues, to combat and prevent the causes of homelessness and to seek policy changes. We launched our first ever campaigii in Greater Manchester with Shelter, The Booth Centre and Mustard Tree in October 2023 to End the Private Renting Emergency and outlined 4 key asks to immediately implement the Renlers Reform Act in full, to increase LHA levels, to cap private sector rents and to end discrimination of young people in the welfare system. This campaign successfully gained a lot of attention of the local, regional and national press and media. We also joined other national campaigns with CentrePoint and a wide range of other young persons homelessness charities. We plan to do more of this over the coming years. Mustard Treè .Booth Centre SHELTER CENTRE POINT ENDING YOUTH HOMELESSNESS The Key to Future Success We are committed to being the best. Continuing to be innovativei proactivei agile and dynamEc has been the key to our success overthe last 4 years. Continuing wlth thls approath whilst keeping intemal bureaucracy to a minimum, ensuring our overheads and support Servi costs are minimised and better utilising new technology will be crucial to our contlnued success in the future. We are not resting on our laurels and we will do nKJre to prevent and end homelessness by 2034 We want to continue to extend our reach to support more vulnerdble people at risk of homelessness In an increasing number of boroughs (that need us). We will do this by becoming the best by continuing to.. raise our profile as the trusted not for profit oryanisation provider of choice. [-, deliver on our promises. provide high-quality value for money serviw. employ and develop the best people; deliver flexibly to meet the n*ls of commissioners. . work in genuine partnershipsi &¥ '_ campaign with like-mlnded organlsatlons to raise awarene55 and deliverthe changes in policies, funding and prioriti requlred to prevent and combat homelessness, support :. independence and transform lives.
CONCLUSION 2023124 has still been another excellent year of achievement for SSP, consolidating and improving further on the gains we have already made. Although we have faced some financial challenges in 2023124 we still posted a surplus at the end of the year of £141 k. adding to our already healthy reserves. This success can only be delivered with the full support, commitment and co-operation of the whole organisation working together. From the Board having to take urgent strategic, business-critical and at times difficult decisions, to SLT and LT leading the drive to be the best and deliver excellence in everything we do, to colleagues fully buying into this and continuing to provide dedicated. caring, flexible and excellent services. We thank everyone at SSP, our partners and our commissioners for playing their part in making this another successful year and for helping provide the quality affordable homes and wrap around support service our customers and so many other vulnerable people at risk of homelessness need. Together we can and will deliver more next year and in the foreseeable future. !¢1 Stepping Slonc
FINANCIAL REVIEW Principal funding sources The principal funding sources for the Charity during the year were: Housing-related support contract income from Rochdale MBC, Bury MBC, Hyndburn 8orough Council, Blackburn with Darwen Borough Council, Burnley Borough Council, Manchest@r City Council and Lancashire County Council. Rental income from tenants and housing benefit paid on behalf of tenants. Spot purchase of accommodation and housing-related support, for young people leaving care, by social service departmenls across the North-west via the North-west Care Leavers Framework. Investment income. Other sundry sources of income include corporate and individual donations received. Overview Total incoming resources in the year to March 2024 were £11,904,998 {2023 - £9,861,057). This is an increase of 21 % which is mainly due to the new services including Skye Crescent Lodge, Cherry Tree Lodge, Saxonside and Minto Street. There was also an increase in rental income across all services as a result of annual inflationary increases in rent levels together with a number of other smaller specific variances relating to operational perf0rrnan and other factors including reduced income from Huntley House following the service being decommissioned in August 2023. Investment income has increased to £5,426 (2023 £10) as rising base rates have meant that banks have recommenced paying interest on deposits. Investment income is used to finance internally funded charitable support to customers and customer participationldevelopment activities. Additional charitable funds from reserves were utilised to make up for the comparatively low level of investment income and enable us to maintain support for customer activities. Other income has increased by 890/0 to £16,210 {2023 - £8,573). In the year to 31 March 2024 the Charity made a net surplus (after including investment income) of £141,182 {2023 - £702.562 surplus). From a financial perspective. this has been a challenging but ultimately successful year. All services made a positive contribution to central costs apart from two services,. St Chad's House which came into management in March 2024 and Huntley House which made a deficit of £52,436 before the service was decommissioned. The budget for 2024125 reflects the continuing growth in services with further increases in turnover and another surplus of approximately £428k. Despite the ongoing challenging financial circumstances resulting from continuing pressures on Local Authority spending, the charity continued to maximise the proportion of total expenditure on charitable activities maintaining a very similar amount and reduced proportion of expenditure to the previous financial year.
Direct charitable expenditure accounted for 99.76 % (2023 99,70% ) and governance costs, including those costs associated with meeting the constitutional and statutory requirements of the charity such as the audit fees and costs linked to the Strategic Management of the charity, accounted for 0.24°/0 (2023 0.30 /0) of total expenditure. Trustees decided that the basis for allocating costs that was adopted in the financial year ending 31 March 2014 was still the most appropriate method by which to fairly reflect actual expenditure. Balance Sheet The net book value of fixed assets increased to £979,212 from £934,859 in the previous year. The increase is mainly due to furniture in new properties. The main fixed assets are the four Care Leavers properties in Pendle which had a net book value of £172,136 in both years plus St. Clare's House which had a net book value of £449,560 (2023 - £459,416). Reserves Policy Trustees recognise that whilst the building of reserves is essential to give the Charity sufficient flexibility to cover temporary interruptions in income flow and provide an adequate level of working capital, particularly due to the ongoing levels of uncertainty surrounding Local Authority spending targets following reductions in funding from Central Government, this should not be detrimental to charitable activities and the provision of quality services to customers. The Board of Trustees has an annual review of its policy on minimum reserve levels, which are the free reserves of the Charity. earned from previous operations. The current reserves policy was adopted in the current financial yearwhen Trustees decided that the reserves policy should provide sufficient reserves to deal with the loss of the charity's short-temi contracts in an orderly manner. The most significant change to the policy was to create a new designated reserve Gommensurate with the amount of reserves tied up in fixed assets and thus not freely available. Trustees discussed the risk factors and concluded that the likelihood of losing all services at once is still remote and that the essence of the previous reserves policy remains appropriate having considered the corporate risk register and other pertinent factors. Trustees recognise that there were three main types of expenditure within the charity: Property costs (property rental, maintenance. utility charges etc.) are basically funded via rental income., Support costs (mainly staffing but also costs such as offices, stationery etc.) are basically funded via contractual income. Central costs (again mainly staffing but also ICT, office costs etc.) are funded via combination of rental and contractual income. Thus, the new reserves policy requires an amount equivalent to three months of all non-property costs, except for those on services with more than a 12-month contract or where SSP owns the building, plus amounts to cover dilapidations and a redundancy provision as outlined above. It is considered that the existing designated reseNe is adequate provision against dilapidations claims. The reserves polic requires free reserves of £1.75m at 31 March 2024 compared with the actual amount of £2,082,134 leaving £332.8k free to expand the services that we offer to customers. This is in addition to the designated reserves of £979,212 covering fixed assets and £349.585 which is to provide for renewal of furnishings and any potential dilapidations claims arising if properties are handed back to landlords. Financial risk management objectives and policies The company makes little use of financial instruments other than operational bank accounts and fixed term deposits with reputable banks, so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities. financial position and net movement of funds of the company.
TRUSTEES, RESPONSIBILITIES Under company law the Trustees have the same legal responsibilities as company directors and the title is interchangeable. Company law require5 the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing those financial statements, the directors 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 accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements, and; Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in operation. The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the directors are aware.. there is no relevant audit inforrnation 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. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditors BK Plus Audit Limited have expressed their willingness to continue in office and, being eligible. offer themselves for re- appointment. By order of the Board of Trustees P4rS715hby p. &x Its<chaIr 27 November 2024
STEPPING STONE PROJECTS INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEPPING STONE PROJECTS inion We have audited the financial statements of Stepping Stone Projects for the year ended 31 March 2024 which comprise the Statement of Finaricial Activitl8S, the Balance Sheet, Statement of Cash Flows and related notes including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 Yhe Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accountlng Practicel. In our opinion the financial stalemenls= give a true and fair view of the slate of the charitable company's affairs as at 31 March 2024 and of ils incorning resources and application of resources. including ils income and expenditure, ftsr the year then ended: - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with th8 requirements of the Companies Act 2006. Basis for o inion We Conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS IUKII 8nd applicable law. Our responsibilities under those standards are further (Jescribecs in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant lo our audit of the financial slalements 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. Concluslons relatln to oln ¢oncgrn We have nothing to report in respect of the following matters in relation lo which the ISAS IUKI require us lo report lo you where.. the trustees. use of the going concern basis of accounting in the preparation of the financial statements is not appropriate., or the Iruslees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubl about the company's ability to continue lo adopt the going concern basis of accounting for a period of al least twelve months from the date when the financial slalemenls are authorised for issue. other inform tlon The other information comprises the information included In the TrusleeslDirectors report, other than the financial slalemenls and our auditor's report Ihereon. The trustees are responsible for the other information and our opinion on the financial slalemenls does not cover the other information, except lo the extent otherwise explicitly slated in our report. we do not express any form of assurance conclusion thereon. In connection with our audit of the financial slatemenls. our responsibility 15 to read the other information and, in doing so. consider whether the other information 15 materially inconsistent with the financial slalemenls or our knowledge obtained in the audit or otherwise appears to be materially misslaled. If we identify such malarial inconsistencies or apparent misstatements, we are required lo delerrnine whether there is a material misstatement in the financial slaternents or a material misslalement of the other inforrnalion. If, based on the work we have performed. we conclude that there is a material misstatement ot this other information, we are required lo report that fact. We have nothing lo report in this regard. inion on other matter res¢ribgd b the Com anies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees, report for the financial year for which the financial slalemenls are prepared is consistent wtth the financial stalernenls.. and - the trustees, report has been prepared in accordance with applicable legal requirements.
STEPPING STONE PROJECTS INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEPPING STONE PROJECTS ¢ontlnued atter$ on which we are re uired to re ort b exre tion In the light of the knowledge and underslanding of the cornpany and its environment obtained in the course of the audit. we have nol identified material rnisstat8rn8nt5 in the ttuslees'ldirectors. report. We have nothing to report in respect of the following matters where Ihe Companie5 Act 2006 requires us lo report to you il, in our opinion.. adequate accounting records have not been kept by the charitable cornpany, or returns adequate for our audit have not been r8celved from branches not visbted by us,. or the charitable company's financial statements are not in agreement with the accounting records and returns,. or cartain dlsclosures of trustees, remuneration specifigd by law ar8 not mada., or we have not received all the information and explanations we rèqulr& for our audil.. or th8 trustees were not entitled lo prapare the financial statern8nts in accordance with thè small companies gIrne and taka advantage of the small companies exemptions in preparing th6 trustees, report and take advanlage of the Small companies exemption from the rÈ4uiromant to Ppare a strategic report. Rès onslbllltles of trustees As explained more lully in thè trustees, responsibilities statement. the trustees are responsible for the preparation ol the rinancial statements and for being sat15fied that they give a Irue and lair view, and for such internal control as the trustees determine is nèc8SSary to enable the preparation of financial staternents that are free from material misstaternent, whether dLJe to fraud or error. In preparing the financial statamants. the trL&Stees are responsible for 8sse55ing th8 company's ability to continue as a going concern, disclosing, as applicable. matters relating to going concèrn and using the going concern basis of aceounting unless the trustees either iriltrnd to liquidate the company or lo cease operations. or have no realistic alternative bul to do so. Audltorfs res onsibilitl85 for tho audit of the flnanclal statsments Our obj8CtIV8s arè to obtain reasonable assurance about wh8therth8 financial statements as a whole are fr88 from mat8rial misstatèment, whether due to fraud or error, and lo issue an audilofs report that includes our opinion. Reasonable assurance is a high 1gV81 of 855uranc8. bLrt is not a guarantee that an audil Conducted in accordance wlth ISAS IUKI will always detect a mat8rial rnisstatament when it exists. Misstatemenls can aris8 from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic d8cision5 of users taken on the basls ol these financial statements. Irregularitles, including fraud. are instanc¢s of non-compliance with laws and regulations. We d85ign procedures in Ilne with our responsibilities. outlined abov8, lo d8tect material misstatements in respect of irregularities, including fraud. The extgnt to which our proeadures are capable of olelecling irregu13riti85, including fraud Is detailed below., Based on our understanding of the charitable company. we identified that the PTincip81 risks of non-cumplianco related lo those laws and regulations that hav8 a dir8Ct irnpact on Ihe financial slalements such as th8 Cornparniès Act 2006 and the Charilies SORP IFRS 1021. We 8valuat8d managemenvs incentiwes and opportunities far fraudulent manipulation ol the rinancial statemen15 (including the risk ol override of contro151, and deterrnined Ihal the principal risks were related to P05ting inappropriate journal entries lo manipulate financial results and management bia5 in gccounling 8Stimates. Appropriate audit procedures were performed lo address those risks including testing journal entries and challenging assumptions and judgements made by managernent in theirsignificanl accounting estimates. There ale inherent limitations in the audit procedures described above and Ihe further removed non-compliance with law5 and regulations is from the events and tran5action5 reflected in the financial slalements. the 18ss likely wg would become aware of it. Also, the risk of not detecting a material misstatement due to IraLJd 15 higher than the risk ol not delecling one resulting Irorn 8rror, a5 fraLLd tHay involve deliberate concealment by, for 8xample, forgery or intentional misrepresentation5, or through collusion. A further description of our responsibilities for the audit ol the financial statements 15 located on the Financial Reporting Council's websit8 at www.frc.org.ukjaudllorsresponsibilities. This d8SCriPtion forms pari of our auditofs report. Use of our re ort Thi5 report is rnade solely to thè charitable company's mernbers, as a body, in accordance with Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work has been undertaken 50 that we might slate to the charitable cornpany'5 mernbe15 those matter5 we are required to stat8 to Ih8m in an auditors, report and for no other purp058. To the fullest extent permitted by law, we do not accept or assurne responsibility to anyone other than the charitable Company and the charitable ompany's members as a body. for our audit work. for this report, or lor the opinions we have forrned. Dominic Huxleylsenior Statu Forand on behalf ol ory Audltor) BK Plug Audlt Limltod Chartered Cortifiod Accountant5 and Statutory Auditor Steding House 501 Midd18tDn Road Oldham OL9 9LY Date '. J0211
STEPPING STONE PROJECTS STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) . YEAR ENDED 31 MARCH 2024 Unrestricted Restricted Funds Funds 2024 2024 Total Fund5 2024 Unrestricted Restricted Funds Funds 2023 2023 Total Funds 2023 Note INCOME Donations and other income 16.210 16,210 8,573 8,573 In¢ome from investrnents 5,426 21.636 5,426 21,636 10 8.583 10 8.583 Ineome from charitablè a¢tlvlU8S.' Grants and contracts Rents recewablg 7.164,051 4,719,311 7,164,051 4.719.311 6,852,829 2,999,645 6.652,829 2,999,645 Total income 11,904.998 11.904,998 9,861,057 9,861,057 EXPENDuRE Charitable activities 11.763,816 11,763,816 9.158,495 9,158,495 Total expendituro 11,763.816 11,763.816 9.158,495 9.1S8.495 Net Incomallexpenditurel for tho yéar 141,182 141.182 702.562 702.562 Net movement In fund 1,182 14 702,562 Reconciliation of funds Total funds brought forward 3,270.449 3,270.449 2,567,887 2.567.887 Total funds carried fonvard 17 3,411,631 3,411,631 3.270.449 3,270,449 The resutts for thÉ yèar arise from continuing activities. The accompanying notes are an integral part of this ststamenl of financial aclNilies. All recognised gains and losses are inrluded in the statement of financial activities.
STEPPING STONE PROJECTS BALANCE SHEET .' AS AT 31 MARCH 2024 Note 2024 2023 FIXED ASSETS Tangible assets 11 979,212 934,859 Total fixed assets 979212 934 859 CURRENT ASSETS Debtors 12 1,696,864 1.603,114 Cash at bank and in hand 1,244.462 1.270,454 Total current assets 2 941326 2 873 568 CREDITORS: Amounls falling due within one year 13 508,907 537,978 NET CURRENT ASSETS 2432 419 2 335 590 TOTALASSETS LESS CURRENT LIABILITIES 3,411,631 3.270.449 NET ASSETS 18 3 411631 3 270 449 THE FUNDS OF THE CHARI Restricted income funds 17 Unrestricted income funds.. Designated 17 1,328,797 341.843 General 17 2,082,834 2,928.606 TOTAL CHARIry FUNDS 17 3411 631 3270449 These accounts have been prepared in accordance with the spècial provisions of part 15 of the Companies Act 2006 relating to small companie5 and constitute the annual accounts required by thé Companies Act 2006 and are for circulation to the members of the company. The accompanying noles 8re an integral part of these financial statements. The financial statements were approved by the Board of Trustees and authorised for issue on and signed on t ir behalf TrusteelDirector . TrusteelDirector R8gistratlon n ber 02647645
STEPPING STONE PROJECTS STATEMENT OF CASH FLOWS . YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows from operating activities Net incomellexpendilure) for the year 141.182 702,562 Adjustments for.. Depreciation of tangible assets Income from investing activities Decreasellincrease) in debtors Increaselldecrease) in credilors 162,874 105,564 15.426) 110) (93.7501 {599,5551 129.0711 5,644 Cash generated from operations 175,809 214,205 Net cash provided by (used inl operating activities 175,BOg 214,205 Cash flows from investlng activities Interest received Purchase oftangible assets 5,426 10 1207,227) 1291,115) N81 cash used in inv8Sting activities (201,8011 1291,1051 Net Increase I Idecreasel in cash and cash equivalents 125.992) 176,900) Cash and cash equivalents at th8 beglnning of the yéar 1,270,454 1.347,354 Cash and cash equlvalents at the end of the year 1,244,462 1.270,454
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 1 Accountin olicies Th8 principal accounting policies adopted, judgéments and key sources of estimation uncertainty in the preparation of the financial statements are as follows.. a} Basis of preparation The fsnancial staternenls have been prepared on an accruals basis under the historical c05t convention. and the Accounting and Reporting by Charities-. Slatement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191 (Charities SORP IFRS 102)). the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and th8 Compani8s Act 2006. Stepping Stone Projects meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless olherwise stated in the relevant accounting policy note. b) Company status The charity is a company limited by guarantee (registered number 026476451 incorporated in the UK and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered address is 2 The Quadrant, Green Lane, Heywood OL10 ING. c) Golng concern The accounts have beon prepared on a going concern basis. The trus1é8s have reasonable expectation that the charity has adequate resources to continue ils activities for the foreseeable future and that there are no material uncertainties over the charity's financial viability. dl Income Income from charitable activities including income received under contract or where entitlement lo grant funding is subject to specific performance conditions is recognised as earned las the related services are provided). Grant income included in this category provid85 funding to support activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficienl reliability. Rent is recognised on a receivable basis. Investment income is recognised on a receivable basis. e) Expenditure All expenditure is accounled for on an accruals basis and is allocated as follows.. Charitable expenditure comprises those costs incurred by the charity in the delivery of ils services for its beneficiaries. It includes both those costs Ihat can be allocated directly to such activities and those of an indirect nature necessary to support them. Expendilure is allocated beeen the restricted and unreslricled projectslfunds in accordance with contractual obligations or as the Board of Trustees considers appropriate. Governance cosls include those costs associated with me81ing the conslilutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Support costs include central functions and have been allocated to charitable aclivities on a basis consi51ent with Ihe use of resources eg. Staff cosls by time spent.
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 Accountin olicies contlnued Taxatlon The company is a registered charity and as such is entitled lo exemption from tax to the extent that its income falls within section 505 ICTA 1988 and section 256 CGTA 1992 and is applicable to charitable purposes only. g) Operating leases Rentals applicable to operating leases are charged lo the SOFA over the period in which the cost is incurred. h) Tangible fixed assets and depreciatlon Tangible fixed assets are included al cost less provision for depreciation. Depreciation has been provided on all tangible fixed assets al rates calculated to write off the cost of each asset less the estimated residual value over its expected useful life as follows Leasehold property - 50 years Computer equiprnent - 3 years Fixtures. fittings and sundry equipment - 2 y8ars Rented propety improvements -4or5years Office furniture and equipment 2 years Where assets have been wrillen down lo their estimated residual value no further depreciation is char9ed. S) Fund accounting Unrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the Irusteesldirectors in furtherance of the general objectivés of the Charity and that have not been designated for other purposes. Restricted funds can only be used for particular restricted purposes within the objects of the charily. Restrictions arise wh8n specified by the donor or when funds are raised for particular restricted purposes. Designated funds comprise unrestricted fund5 that have been pul aside al th8 discretion of the trusteesldireclors for particular purposes. j) Pensions Contributions in respect of the company's defined contribution pension Schemes are charged in the year in which Ihey are payable to the scheme. k} Financial instruments The charity has financial assels and liabilities of a kind that qualify as basic financial instruments. Basic financial instrurnenls are initially recognised at transaction value and subsequently measur8d at amortised cost. l) Changes In presentation Where changes in presentation hav8 been made the comparative figures have been adjusted accordingly.
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 Unr8stricted Re$lri¢ted Total 2024 Total 2023 2024 2024 2 Income from fund raisin activities Thé charity does not carry out any fund raising activities or receive incom8 from commercial trading operations. 3 Other income Other income and donations 16,210 16,210 8,573 ,210 16.210 8.573 4 Income from investments Bank deposit inlerest 5,426 5,426 5,426 5 Income from charltable actlvlties Grants received regarding accommodation and support Rent receivable 7.164,051 4,719,311 7,164,051 4,719,311 6,852,829 2,999,645 11,883,362 11,8B3,362 9,852.474
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 6Ex enditure haritable activities unrestricted Basis of Accommodation Governance allocation and support Total Total 2024 2023 Costs directl allocated to actlvlties Housing costs Housing management services Travel and training Office costs Recruitrnent Audit Direct Direct Oirecl Dir8cI Direct Direct 5,463.232 4,366,791 117,861 27.392 34,199 5.463.232 4,258,900 4,366,791 3.402,814 117,861 107,149 27,392 17.804 34,199 26,701 8,000 8,000 8,000 10,009.475 8,000 10,017,475 7.821,368 ort costs Staff costs OffiTr costs Legal and professional Bank charges and interest Depreciation Stsff Ilme Staff lime Staff lime Staff lime Staff lime 1,180.407 389.121 31.572 5,396 119,340 19,144 1,081 52 30 198 1,199.551 390,202 31,624 5.426 119,528 948,381 299,058 24.628 60 65,DOO 1.725,836 20,505 1,746,331 1,337.127 Total oxpendlture 11,735,311 28,505 11,763.816 9.158,495
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 Total 2024 Total 2023 7 Staff costs Total staff emoluments for the year were as follows.. Wages and salaries National Insurance Pension, health and life assurance costs 4,181,910 3,201,354 374,389 299,036 195,204 151,253 4,751,503 3,651,643 8 Staff numbers The average headcountfor the year.. Number Number Charitable aclivit18S Governance 143 117 148 122 The number of employees whose emoluments {gross salary and employer pension contribulionl. amounted to over £60,000 in the year were as follows.. Nurnber Number £60,001- £70,000 £70,001- £80.000 £80,001- £90.000 £90,001- £100,000 The key management personnel of the charity comprise the Iru51ees and the Senior Management Team. The total employee benefils of the key management personnel of the charity were £316.511 12023 '. £233.7821. 9 Net movement in funds Net movement in fvnds is arrived at after charging Ilcrediting).. Depreciation of tangible fixed assets Auditors. remuneration.. audit of charitable company Operating lease rentals - land and buildings 162.874 105,564 8,000 8,000 2,828.287 2,296.759 10 Taxatlon The company is a registered charity and no provision is considered necessary for taxation.
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 11 Tan Ible fixed 558ts Offl¢e furniture Furnitur•, fittinys and sundry equipmont Rented Property Improvement5 Leasehold Proporty Computer equlpment Equipment Total Cost Al 1 Aprd 2023 Addllions Dlsposals Transfer5 At 31 March 2024 7D7,081 235.114 93,OTO 198,372 3.490 555.499 32.609 530.284 78,058 2.226.350 207.227 707,081 88.108 2,433,57 rg¢iati¢n At 1 April 2023 Charge for the period Disposals At 31 March 2024 75.529 9.856 154,771 23.959 167.294 22,053 542,689 11.480 351,208 95.526 1.291.491 162.874 446, ook Value At 31 March 2024 621,696 149.454 12.515 33,939 161.608 979,212 At 31 MarGh 2023 631,552 80.343 31.078 12,810 179.076 934,859 L8asehold propety comprises 4 terra¢ed properbes purchased trom Pendle Borough Council in 2011 for use by the CO18a¥&r$ Proi8Ct. Th8 propertie5 were 8¢4uired subject lo the following striCtlY8 covenants.. 11 to use the properties solety for the piirpose of supported resldential housing for a period of 10 years., Zl not to d15P05e of any rf the properties wilhout the written permission of PBndle Borough Council. In arIdilion to the above a property known as Sl Clarg's House n Rochdale was pur¢hased in May 2019. and is operated by Ih? charity as House ol Multiple Occupabon IHMOI.
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 12 Debtors 2024 2023 Trade debtors Rents receivable Prepayments and accrued income Other debtors 261,868 542,287 820.883 71.826 711,448 166,582 699.627 25,457 1,696,864 1,603.114 13 Credltors amounts fallln due within one ear 2024 2023 Trade creditors Taxation and Social security Accruals Deferred income Other creditors 312.058 98,539 67,442 11,907 18,961 272,673 79,867 94,795 71.143 19,500 508,907 537,978 Movements on deferred income account: Broughtfomard Released Income deferred in the current year 71.143 257,228 171.1431 1257,2281 11,907 71,143 11,907 71.143 Contractual income has been deferred as it was received in advance of services being provided. 14 0 eratln lease commltments The charitable company rents ils head office accommodation at a cost of £34,50012023 £34,500} per annum, under a lease for a term of ten years expiring 31.08.32. The charitabl8 company also has commitments under managem8nt agreements of up to three years duration with Housing Associations and private landlords for the use of properties. Most agreemènts with private landlords are for periods of six months. The annual commitment for management and occupancy costs as at 31st March 2024 was £ 3.942,832 {2023 . £2.843,8311. 15 Pension commitments The company operates defined contribution pension schemes on behalf of certain employees. The assets of the schemes are held separately frorn those of the company in independently administered funds. The annual cornmilment under this scheme is for contributions of £195,20412023 £151.2531.
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 16 Share ca ital The company has no share capital and the liability of members is limited by guarantee lo £1 per member. 17 Anal sis of charitable funds Analysis of fund movem8nts: Al 1 April 2023 Incoming resources Resources exponded Transfers At 31 March 2024 R8slrlcted Funds Unrestricted Funds Designated Funds Dilapidations Fixed Assets Total Designated Funds General Funds 341,843 564,487 1401,691) 1155,0541 349,585 979,212 979.212 341.843 564.487 1401,691) 824,158 1,328.797 2.928,606 11.340,511 111,362,125) 1824,1581 2.082.834 Total 3.270,449 11.904,998 11,763,816 3,411.631 Designated funds consist of= 1. Dilapidations Fund is made of rent and service charge receipts sel aside for future refurbishment of the housin9 properties ulilised by the charity. The Truste8s are of the opinion that the amount sèt aside as at 31 March 2024 is sufficienl to cover requirements in the short term. 2. Fixed Assets Fund represents the properties and other fixed assets such as office furniture. computer equipment and furniture provided in our properties. 18 Anal sis of net assets between funds Unrestricted Funds Designated Funds Restricted Funds Total Funds 2024 Tangible fixed assets Current assets Current liabilities Net asset5 31 March 2023 979,212 349.585 979,212 2,941,326 508 907 3,411,631 2.591,741 508 907 2.082,834 1,328.797 2023 Tangible fixed assets Current assets Current liabilities Net assets 31 March 2023 934,859 2,543.283 549 536 2,928,606 934,859 2,885,126 549 536 3,270.449 341.843 341.843
STEPPING STONE PROJECTS NOTES TO THE FINANCIAL STATEMENTS . YEAR ENDED 31 MARCH 2024 19 Related transactions None of the directors (board of Irusleesl received any remuneration from the charity in the year 12023 . £Nill, and were ff imbursed mileage expenses of £ Nil12023 . £3111. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during this or the previous financial year. In the opinion of the trustees there is no ultimate controlling paty-