Stepping Stone Projects
Annual Report
2024-25
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Stepping Stone Projects
Table of Contents
03.
Information
07.
08.
09.
Vision & Mission
Reflecting on 40 Years of Progress
Our Purpose and Public Benefit
10.
2024125: A Year of Achievement
A Year of Expansion
12.
13.
14.
Customer Stories
Driving Change Beyond Service Delivery
Financial Review
17.
Looking Ahead
18.
Statement of Trustees Responsibilities
19.
Independent Auditors Report
22.
Statement of Financial Activities
23.
Balance Sheet
24.
Statement of Cash Flows
25.
Notes to the Financial Statements

Stepping Stone Projects
Information
Chair
Company Secretary
Mr Christopher Tait
Ms Susan 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 Elizabeth Lilley
Ms Michaela Orr
Mr Martin Davies
Chief Executive Officer
Mr David Smith
Company Number
02647645
Registered Charity Number
1004375
Registered 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
Solicitors
Wrigley Claydon, 29133 Union Street, Oldham, OL1 1 HH
Annual report 2024-25

Stepping Stone Projects
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 2025.
The financial statements have been prepared in accordance with the accounting policies
set out in note 1 to the financial statements and comply with the charity's governing
document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard
applicable in the UK and Republic of Ireland" and the Charities SORP "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)"
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
Mrs Janet Hardwick
Mr David Berry
Mr Nicholas Cox
Mr Alexander Lyons
Ms Kelly Webb
Mr Steven Grycuk
Mr Colin Royle
Ms Elizabeth Lilley
Ms Michaela Orr
Mr Martin Davies
Annual report 2024-25

Stepping Stone Projects
Ms Kelly Webb resigned on 27 November 2024. Trustees thank Kelly for her commitment
and contribution to the organisation.
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 between
strategy and compliance l assurance activities. In addition each trustee serves on one of
our two sub- committees (Finance and Remuneration. Risk and Compliance) both of
which meet quarterly.
Recruitment of Trustees to the Board of Trustees
The Board of Trustees tries to ensure that the needs of this group are fully reflected in the
diversity of skills and experience of the Trustee body. The Charity has through selective
advertising and open networking sought to recruit suitably qualified individuals to use
their skills and expertise to assist the Company.
Traditional business skills are well represented on the Board of Trustees. In an effort to
maintain this broad skill base members are requested to provide a comprehensive list of
their skills, which is updated annually.
Following the resignation at the 2023124 AGM, a fresh recruitment process was
undertaken and following initial interviews one candidate was approved as a potential
trustee and attended the January board meeting as an observer.
The appointment of Mr Martin Davies was unanimously formally approved by trustees at
th
the 19 of February board meeting. We were delighted to welcome Martin as a trustee,
given his extensive experience working in Social Housing for 36 years most recently as
Director of Development at a leading North West housing provider.
None of the trustees has any beneficial interest in the company. All of the trustees are
members of the company and guarantee to contribute £1 in the event of a winding up.
Annual report 2024-25

Stepping Stone Projects
Management
Day-to-day responsibility for the provision of services 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
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
All 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 accounts.
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.
Annual report 2024-25

Stepping Stone Projects
Vision & Mission
Vision
Together we can end homelessness by 2034
Mission
01 Prevent Homelessness
11.,.
02 Support Independence
03T
ransform Lives
Our Corporate Strategic Plan
20
1034
VISION
MISSION
Togetkier we can
end homelessness
by 2034
Prevent homelessnes5
Support independence
Transform lives
Stepping
Stone
Projects
EST FO
VALUES
Customers
Colleagues
Partners
Business
PRIDE
Proressional
Respectful
Inclusive
Dynamic
Excellent
Annual report 2024-25

Stepping Stone Projects
Reflecting on 40
Years of Progress
In 2024125, Stepping Stone Projects (SSP) proudly celebrated 40 years of supporting
people experiencing homelessness. We marked this important milestone with a year-long
programme of inclusive events for our customers, colleagues, commissioners, and
partners.
Each month, we hosted a major event that brought people together and raised
awareness of homelessness in the North West. Highlights included:
A launch campaign across press and social media
Customer and Partner Roadshows in Rochdale, Burnley, Blackburn, and Manchester
A 40-mile sponsored colleague relay in aid of Andy's Man Club
Volunteer activities with local schools, including mock interviews and industry
workshops
Planting 40 trees to create a lasting legacy
A Gala & Christmas Lunch hosted by Terry Christian, attended by over 200 guests
40 home move-on packs provided to customers, funded by partners
Colleague Sports Day- football & netball tournaments
From humble beginnings in 1984 with just two properties for rough sleepers in Rochdale,
SSP now manages over 850 homes, delivers 45 services across 25 boroughs, supports
more than 1,000 individuals at any given time, employs around 195 colleagues, and
maintains a turnover of approximately £15 million.
We remain steadfast in our mission to prevent homelessness, support independence,
and transform lives, and we continue to strive toward our vision:
Together, we can end homelessness by 2034.
•49*"8J .:1 ! ¥
Stepping
Stone
Annual report 2024-25

Stepping Stone Projects
Our Purpose and
Public Benefit
Our governing documents define our mission to support people who are
homeless, at risk of homelessness, or otherwise vulnerable, by:
Providing advice and person-centred support Offering temporary and
longer-term accommodation
Delivering housing-related support and intensive management services
We uphold the belief that everyone has a right to safe, quality
accommodation and services that help them achieve independence. We
act in accordance with Charity Commission guidance to ensure we deliver
public benefit in all we do.
Our Trustees have paid due regard to guidance issued by the Charity
Commission in deciding what activities the charity should undertake.
Annual report 2024-25

Stepping Stone Projects
2024125: A Year of
Achievement
Despite national challenges, from economic uncertainty and a shifting
political landscape to the ongoing housing crisis, SSP has remained
focused on delivering impact.
We are proud to report that in 2024125, we:
Retained all 2023124 contracts, including key re-tendered
UASC services in Lancashire and Manchester
Added 109 new homes and launched 7 new services
Expanded into 7 new local authorities across North and
West Lancashire
oofl
Sustained and improved customer satisfaction
Invested in digital transformation, launching the SSP
Connect customer portal and introducing Docusign
technology
Secured Ofsted registration for both of our young
people's services
Deepened investment in colleagues, development, well-
being, and added social value across our operations
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Annual rewl 2024-25

Stepping Stone Projects
A Year of Expansion:
Young Peoples Services
We made significant progress in 2024125 in expanding support for young people:
Gained Ofsted registration under new regulations
Successfully delivered our first Ofsted inspection
Expanded our North-west Care Leavers programme
Secured a new contract to provide dispersed housing in North and West Lancashire,
adding 38 homes
Retained our East Lancashire service, converting additional properties into long-term
supported accommodation
Continued to grow UASC services, with new sites in Tameside, Trafford, and
Stockport
Other New Services
Launched a new service in Trafford providing 10 homes for homeless families
Opened a renovated 5-bed HMO in Wigan in partnership with Jigsaw Housing
These developments show how we continue to respond flexibly to local needs across the
North West.
Annual report 2024-25

Stepping Stone Projects
Customer Stories
Dillon
Dillon first came into contact with Stepping Stone Projects in
Rochdale before a period in custody resulted in a move to Bury.
Following his release, he was supported in our temporary
accommodation, and after a second recall to custody, he was
assessed for CAS3 support on both occasions. During his second
CAS3 placement, we worked in close partnership with Bury Council,
who agreed to 'flip' one of our RSAP properties to become Dillon's
longer-term home. This allowed us to extend our support for up to
three years, providing the stability and consistency he needed. That
continuity has been transformative. Dillon is now preparing to move
into his own social housing tenancy, supported by a Tenancy
Support Officer from Bury Council.
His journey highlights how collaborative, flexible partnership working
can lead to meaningful and lasting outcomes for individuals
rebuilding their lives after homelessness and custody.
Louise
Louise's journey through the A Bed Every Night project
demonstrates the powerful impact of targeted support.
After experiencing homelessness at just 19, she received
essential help through the
Rough Sleeping
Accommodation Programme, enabling her to secure a
stable tenancy and create a home of her own. With her
housing situation settled, Louise expressed a desire to
move into employment and will soon begin a new role as
a support worker for adults with learning disabilities. To
help her take this next step, Stepping Stone Projects
provided financial support for her DBS checks.
Louise's experience reflects the life-changing outcomes
our services can achieve and aligns with our recent
customer survey, which reported a 99 % satisfaction rate.
Her story is a testament to resilience and the
effectiveness of coordinated, person-centred support.
12
Annual report 2024-25

Stepping Stone Projects
Driving Change Beyond
Service Delivery
SSP continues to campaign alongside partners to:
Raise awareness of homelessness
Advocate for funding and policy change
Promote solutions that prevent homelessness and support recovery
We know that the key to future success lies in staying agile, innovative, and
focused on value-for-money services while minimising internal bureaucracy
and maximising the use of technology.
At SSP, we know that delivering high-quality housing and support services is
only part of the solution to ending homelessness. Driving meaningful, long-
term change also requires us to challenge the systems and policies that allow
homelessness to persist. That's why campaigning is a core part of our work,
raising awareness, influencing decision-makers, and pushing for reforms in
housing, welfare, and support provision.
By working in partnership with like-minded organisations, we aim to amplify
the voices of those with lived experience and ensure that their needs shape
the services and policies that affect them. Our campaigning efforts help
position SSP not just as a service provider, but as a trusted advocate for
social justice and systemic change.
13
Annual report 2024-25

Stepping Stone Projects
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
Borough Council, Blackburn with Darwen Borough Council, Burnley Borough Council,
Manchester City Council and Lancashire County Council.
Rental incomefrom tenants and housing benefitpaid on behalf of tenants.
Spot purchase of accommodation and housing-related support, for young people
leaving care, by social service departments 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 2025 were £14,458,467 (2024
£11,904,998). This is an increase of 21.50/0 which is mainly due to the growth of existing
services including Care Leavers, Rochdale ABEN and Unaccompanied Asylum Seeking
Children.
There was also an increase in rental income across all services as a result of additional
homes in management, annual inflationary increases in rent levels together with a
number of other smaller specific variances relating to operational performance.
Investment income has increased to £9,159 (2024 £5,426). 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 2040/0 to £49,340 (2024 - £16,210).
In the year to 31 March 2025 the Charity made a net surplus (after including investment
income) of £358,228 (2023 - £141,182 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.
Saxonside which incurred additional costs due to significant staffing absences and
Manchester RSAP which made a deficit of £54,662 as the service is being
decommissioned.
14
Annual report 2024-25

Stepping Stone Projects
Financial Review continued
The budget for 2025126 reflects the continuing growth in services with further increases in
turnover and another surplus of approximately £275k.
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 on governance costs to the previous financial year.
Direct charitable expenditure accounted for 99.79 % (2024 - 99.76'/0) and governan
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 0.21 % (2024 - 0.240/0) 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 decreased to £915,951 from £979,212 in the previous
year. The decrease is due to depreciation charges exceeding the amount of additions in
all categories. 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 £439,704 (2024 - £449,560).
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 previous financial year when Trustees decided that
the reserves policy should provide sufficient reserves to deal with the loss of the charity's
short-term contracts in an orderly manner and enable current activities to be continued
whilst alternative contracts are secured.
15
Annual report 2024-25

Stepping Stone Projects
Financial Review continued
The most significant change to the policy was to create a new designated reserve
commensurate 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 identified that there were three main types of expenditure within the charity:
Propety 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 a
combination of rental and contractual income.
Thus, the 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 reserve is adequate
provision against dilapidations claims.
The reserves policy requires free reserves of £1.92m at 31 March 2025 compared with
the actual amount of £2,268,384 leaving £348k free to expand the services that we offer
to customers. This is in addition to the designated reserves of £915,951 covering fixed
assets and £585,524 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.
16
Annual report 2024-25

Stepping Stone Projects
Looking Ahead
2024125 was a year of continued consolidation, growth, and innovation.
Thanks to strategic decisions by our Board and the commitment of our entire team, we
closed the year with an improved financial surplus of £358k, and strong reserves of
£3,770k.
We are grateful for the dedication of our colleagues, the leadership of our Senior and
Leadership Teams, and the support of our commissioners and partners. Together, we are
making a difference, and we will do even more in 2025126.
Together, we can, and will, end homelessness.
17
Annual report 2024-25

Stepping Stone Projects
Statement of Trustees
Responsibilities
The trustees, who are also the directors of Stepping Stone Projects for the purpose of
company law, are responsible for preparing the Trustees Report and the financial
statements in accordance with applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year
which give a true and fair view of the state of affairs of the charity and of the incoming
resources and application of resources, including the income and expenditure, of the
charitable company for that year.
In preparing these financial statements, the trustees are required to..
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate
to presume that the charity will continue inoperation.
The trustees are responsible for keeping adequate accounting records that disclose with
reasonable accuracy at any time the financial position of the charity and enable them to
ensure that the financial statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the charity and hence for tsking reasonable
steps for the prevention and detection of fraud and other irregularities.
Auditor
In accordance with the company's articles, a resolution proposing that BK Plus Audit
Limited be reappointed as auditor of the company will be put at a General Meeting.
The trustees report was approved by the Board of Trustees.
Ms Susan Ashby
Trustee
Date: ...
2GlI!..I Is
18
Annual report 2024-25

INDEPENDENT AUDITOR'S REPORT
TO THE TRUSTEES OF STEPPING STONE PROJECTS
Opinion
We have audited the financial statements of Stepping Stone Projects (the 'charity') for the year ended 31 March 2025
which comprise the statement of financial activities. the balance sheet, the statement of cash flows and notes to the
financial statements. including significant accounting policies. The financial reporting framework that has been applied
in their preparation is applicable law and Uniled Kingdom Accounting Standards, including Financial Reporting
Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom
Generally Accepted Accounting Practice).
In our opinion, the financial statemenls..
give a true and fair view of the state of Ihe charitable company's affairs as at 31 March 2025 and of its
incoming resources and application of resources, for the year then ended.,
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,.
and
have been prepared in accordance with the requirements of the Companies Ad2006.
Basls for oplnion
We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS {UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditorfs ￿spOnSibl11t1eS for the audit of the
Inancial statements section of our report. We are independent of Ihe charity in a￿OrdanCe with the ethical
requirements Ihal are relevant to our audit of the financial stalements in the UK. including the FRC'S Ethical Standard,
and we have fvlfilled 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 ouropinion.
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 charity's ability to continue as a going
con￿rn for a period of at least ￿e1ve months from when the financial statements are authorised for issu8.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant
sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and
our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon. Our responsibility is to read the other infomation and, in doing so, consider whether
the other infomiation is malerially inconsistent with the financial statements or our knowledge obtained in the course
of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed. we conclude that Ihere is a material misslatement
of this other informalion, we are required to report that fact.
We have nothing lo report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (ArKounts and
Reports) Regulations 2008 requires us to report to you if, in our opinion..
the infomiation given in the finanoal statements is inconsistent in any material respect with the truslees
report., or
sufficient accounting records have not been kept., or
the financial statemenls are not in agreement with the accounting records.. or
we have not re￿iVed all the information and explanations we require for our audit.
Annual report 2024-25
19

INDEPENDENT AUDITOR'S REPORT {CONTINUED)
TO THE TRUSTEES OF STEPPING STONE PROJECTS
Responsibilities of trustees
As explained more fully in the statemenl of Irustees responsibilities, the trustees, who are also the directors of Ihe
charity for the purpose of company law, are ￿sponSible for the preparation of the financial statemenls 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 charity'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.
Auditorfs rosponslbllltles for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the
Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error. and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAS (UK} will always detect a malerial 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 expeded to influence the
economic decisions of users taken on the basis of these financial statements.
The extent to which our prO￿dureS are capable of detecting irregularities, including fraud, is detailed below.
Obtaining an understanding of the legal and regulatory frameworks that the Charity operates in. focusing on
those laws and regulations that have had a direct effect on the financial slatemenls. The key laws and
regulations we considered in this context include the Charities Ad. In addition we consider Complian￿ with
employee legislation. as fundamental lo the Charity's operations..
Discussions with management, including consideration of known or suspected instances of non-compliance
with laws and regulations and fraud.,
Enquiry of management and those charged with governance around actual and potential litigation and claims-
Performing audit work over the risk of management override of controls, including testing of journal entries
and other adjuslmenls or appropriateness, evaluating the business rationale of significant transactions
oulside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance., and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with
laws and regulations is from the events and transactions reflected in the financial statements. the less likely we would
become aware of it. Also, the risk of not detecling a material misslatement due lo fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or though collusion.
A further description of our responsibilities is available on the Financial Reporting Council's websile at.. https'.11
www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report.
Annual report 2024-25
20

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE TRUSTEES OF STEPPING STONE PROJECTS
Based on our understanding of the charitable company, we identified that the principal risks of non-compliance related to
those laws and regulations that have a direct impact on the financial statements such as the Companies Acl 2006 and the
Charities SORP (FRS 102). We evaluated management's in￿ntiveS and opportunilies for fraudulent manipulation of the
financial statements {in¢luding the risk of override of controls), and determined Ihat the principal risks were related to posling
inappropriate journal entries to manipulate financial results and management bias in accounting estimales. Appropriate
audil procedures were performed to address those risks including testing journal entries and challenging assumptions and
judgements made by management in their significant accounling eslimates. There are inherent limitations in the audil
procedures described above and the further removed non-compliance with laws and regulations is from the events and
transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not delecting
a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is availablè on the Financial Reporting Council's website at.. https'.11
www.frc.org.uklauditorsresponsibililies. This description forms part of our auditof s report.
Use of our report
This report is made solely to the charity's trustees. as a body, in accordance with Part 4 of the Charities (Accounts and
Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those
matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the charity and the ¢harity's trustees as a body, for our
dit work, for this report. or for the opinions we have formed.
Dominic Huxley ACA (Senior Ststutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor Chartered
Certified Accountants
Sterling House
501 Middleton Road
Chadderton Oldham
Lancashire OL9 9LY
Dale:
BK Plus Audit Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor
of a company under section 1212 ofthe Companies Act 2006.
Annual report 2024-25
21

STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025
Unrestricted
funds
2025
Unrestricted
funds
2024
Notes
Income and endowments from:
Charitable activities
Investments
Other income
14,399,968
9,159
49.34Q
11,883,362
5,426
16.210
Totsl income
14,458,467
11,904,998
Expendlture on:
Charitable actiwties
14,100,239
11,763,816
Total expendlture
14,100,239
11,763,816
Net Incomo and movoment In funds
358,228
141,182
Reconciliation of funds:
Fund balances at 1 April 2024
3,411,631
3,270.449
Fund balances at 31 March 2025
3,769.859
3,411.631
The stalement of financial activilies includes all gains and losses recognised in the year. All income and expenditure
derive from continuin9 activities.
Annual report 2024-25
22

BALANCE SHEET
AS A T31 MARCH 2025
2025
2024
Notss
Fixed assets
Tangible assets
12
915,951
979,212
Current assets
Debtors
Cash at bank and in hand
13
2,390,914
1,189,042
1,696,864
1,244,462
3,579,956
2,941,326
Creditors: amounts falling due withln
one year
14
{726,048)
(508,907)
Net current assets
2,853,908
2,432,419
Total assets less current liabilities
3.769.859
3,411,631
The funds of the charity
Unrestricted funds
18
3.769,859
3,411,631
3.769,859
3.411,631
The company is entilled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006.
for the year ended 31 March 2025.
The directors acknowledge their responsibilities for complying wilh the requirements of the Companies Act 2006 with
respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements under the requirements of the
Companies Act 2006, for the year in question in accordance with seclion476.
These financial statements have been prepared in accordance with the provisions applicable to companies Subje￿ lo the
small Companies regime.
These accounts have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006
relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation
to the members ofthe company.
The accompanying notes are an integral part of these financial statements.
261.11.l. z_
The financial statements were approved by the trustees on ..
SUSA￿ ,4Srfs"/
Trustse
Company registration number 02647645 (England and Wales)
Annual report 2024-25
23

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
2025
2024
Notss
Cash flows from operating activities
Cash generated from operations
20
65,480
175,809
Investing a¢tivities
Purchase of tangible fixed assets
Investment income received
(130.059)
9,159
(207.227)
5,426
Net cash used in Investing activities
{120,900)
(201,801)
Net ¢ash generated from financing activities
Net decrease In cash and cash equivalents
(55,420)
(25,992)
Cash and cash equivalents al beginning ofyear
1,244,462
1,270,454
Cash and cash equivalents at end of year
1,189.042
1,244,462
Annual report 2024-25
24

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Accounting policies
The principal accounling policies adopted, judgements and key sources of estimation uncertainty in the
preparation of the financial statements are as follows..
Charity inforniation
Stepping Stone Proje¢ts is a private company limited by guarantee incorporated in England and Wales. The registered
office is The Quadrant, Green Lane, Heywood, Rochdale. OL10 1 NG. In the event ofthe charity being wound up, the
liability in respect of the guarantee is limited to £1 per member of the charity.
1.1 Accounting conventlon
The financial statements have been prepared in accordance with the charity's governing document, the Companies
Act 2006. FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities
SORP"Accounling and Reporting by Charilies.. Statement of Recommended Practice applicableto charities preparing
their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS
102)" The charity is a Public Benefit Entity as defined by FRS 102.
Stepping Stone Projects meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially
recognised al historical cost or transaction value unless othe￿iSe stated in the relevant accounting policy note.
The financial statements are prepared in sterling. which is the functional currency of Ihe charity. Monetary amounts
in these financial stalements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal a¢¢ounling policies
adopted are set out below.
1.2 Golng concern
At the time of approving the financial statements. the trustees have a reasonable expectation that the charity has
adequate reSoUr￿S to continue in operational existence for the foreseeable future. Thus the trustees continue to
adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use al the
discretion of the trusteesldirectors in furtherance of the general objectives of the Charity and that have not been
designated for other purposes.
Designated funds comprise unreslri¢ted funds that have been put aside at the discretion of the trusteesl directors for
particular purposes.
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.
1.4 Income
Income from charitable activities including income received under contract or where entitlement to grant funding is
subject to specific performance conditions is recognised as eamed (as the related services are provided).
Grant income included in this category provides funding lo support activities and is recognised where there is
enlitlement, Gertainty of receipt and Ihe amount can be measured with sufficient reliability.
Deferred income refers to the payments received by in advance for ServI￿S thal have not been delivered to the end
user as at the year end.
Annual report 2024-25
25

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Accounting policies
{Continued)
Rent is recognised on a receivable basis.
Investment income is recognised on a receivable basis.
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third
paty, il is probable that a transfer of economic beneffts will be required in settlement, and the amount of the
obligation can be measured reliably.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its seNices for its
beneficiaries. It includes both those costs thal can be allocated directly to such activities and those of an indirect
nature necessary lo support them.
Expenditure is allocated between the restricted and unrestricted projectslfunds in accordance with
contractual obligations or as the Board of Trustees considers appropriate.
Governan￿ costs include those costs associated with meeting the conslitutional and statutory requirements
of the charity and indude the audil fees and costs linked to the strategic management of the charity.
Support costs include central functions and have been allocated to charitsble adivities on a basis consistenl
with the use of resources eg. Staff costs by time spent.
1.6 Tangible fixed assets
Tangible fixed assels are initially measured at cost and subsequently measured al cost or valuation, net of
depreciation and any impairment losses.
Depreaation is recognised so as to write off the cost or valuation of assets less Iheir residual values over their
useful lives on the following bases..
Leasehold land and buildings
Rented propety improvements
offi￿ furniture and equipment
Fixtures and fittings
Computers
50 years
4 or 5 years
2 years
2 years
3 years
The gain or loss arising on Ihe disposal of an asset is determined as the differen￿ between the sale proc&eds
and the carying value of the asset. and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the Gharity reviews the carrying amounts of its tangible assets to detemiine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (rf any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, Other short-term liquid
investmenls with original maturrties of three months or less, and bank overdrafts. Bank overdrafts are shown
within borrowings in current liabilities.
Annual report 2024-25
26

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Accounting policies
(Continued)
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12
'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the
contractual provisions of the instrument.
Financial assets and liabilities are offset. with the net amounts presented in Ihe financial statements. when
there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net
basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
The charity has financial assels and liabilities of a kind Ihat qualify as basic financial instruments. Basic financial
instruments are initially recognised at transaction value and subsequently measured at amortised cosl.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless
the a￿angement constitutes a financing transaction. where the debt instrument is measured at the present
value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable
within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade credilors are obligations to pay for goods or services that have been acquired in the ordinary course of
operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one
year or less. If not. they are presented as non-current liabilities. Trade creditors are recognised initially at
transaction price and subsequently measured at amortised ￿st using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or
cancelled.
1.10 Taxation
The company is a registered charity and as such is entitled to exemption from tax to the extent that its income
falls within section 505 ICTA 1988 and section 256 CGTA 1992 and is applicable to tharitable purposes only.
1.11 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are
received.
Temiination benefits are recognised immediately as an expense when the charity is demonstrably committed
to terminate the employment of an employee or to provide termination benefits.
1.12 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13 Op8ratlng Leases
Rentals payable under operating leases, including any lease incentives received, are charged as an expense
on a straight line basis over the temi of the relevant lease.
Annual report 2024-25
27

NOTES TO THE FINANCIAL STA TEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Accountlng policies
(Continued)
1.14 Pensions
Contributions in respect of the company's defined contribution pension schemes are charged in the year in
which they are payable to the scheme.
Critical accounting estimates and judgements
In the application of the charity's accounting policies, the trustees are required to make judgements,
estimates and assumptions about the carrying amount of assets and liabilities that are nol readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised where the revision affects only that
period, or in the period of the revision and future periods where the revision affects both current and future
periods.
Income from charitable activities
Unrestrlctsd Unrestrlcted
funds
funds
2025
2024
Accommodatlon and support
Grants received regarding accomodation and support
Rent re￿1vable
6.085,420
8,314.548
7,164,051
4.719.311
14,399,968
11,883,362
Income from investments
Unrestricted Unrestricted
funds 2025 funds 2024
Bank deposit inlerest
9,159
5,426
other Income
Unrestricted Unrestricted
funds 2025 funds 2024
Other income and donations
49,340
16,210
Annual report 2024-25
28

NOTES TO THE FINANCIAL STA TEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Expenditure on charitable activities
Accommodation Accommodation
and support
and support
2025
2024
Direct costs
Staff costs
Depreciation and impaimient
Housing costs
Housing management services
Travel and training
offi￿ costs
Recruitment
4.135,411
70,346
2,631,741
5,262,515
120,815
25,652
51,767
3,551.952
43.336
1.867,944
4.366.791
117,861
27,392
34.199
12,298,247
10,009,475
Share of support and governance costs (see note 7)
Support
Governance
1,771,114
30,878
1,725,836
28,505
14,100,239
11,763,816
Analysis by fund
Unrestricted funds
14.100,239
11,763,816
Support costs allocated to activities
2025
2024
Staff costs
Depreciation
Office Costs
Legal & professional
Bank charges & interest
Governan￿ costs
1.191.371
122,797
428.209
19,608
9,129
30.878
1,180,407
119,340
389,121
31,572
5,396
28,505
1,801,992
1,754.341
Analysed between:
Accommodation and support
1,801,992
1,754,341
Annual report 2024-25
29

NOTES TO THE FINANCIAL STA TEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Support costs allocated to activities
{Continuedl
2025
2024
Governance costs comprise:
Staff costs
Depreciation
Audit fees
Legal and professional
Office costs
Bank charges & interest
21,244
177
8.500
28
899
30
19,144
198
8,000
52
1,081
30
30.878
28,505
Net movement in funds
2025
2024
The net movement in funds is stated after chargingl{creditingl'.
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
Operating lease charges
8,500
193,320
3,465,587
8,000
162,874
2,828,287
Trusteos
None of Ihe trust&es (or any persons connected with them) received any remuneration or benefits from the
charity during the year.
10
Employees
The average monthly number of employees during the year was.. 171
2025
Number
2024
Number
Charitable activities
Governan¢e
166
143
Total
171
148
Employment Costs
2025
2024
Wages and salaries
Social security costs
Other pension costs
4,692,402
430,773
224,851
4,181,91Q
374.38S
195,204
5,348,026
4.751,503
Annual report 2024-25
30

NOTES TO THE FINANCIAL STA TEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
10 Employees
(Continued)
The number of employees whose annual remuneration was more than £60,000
is as follows:
2025
Number
2024
Number
£60,001-£70,000
£70,001-£80,000
£90.001-£100.000
Rèmuneratlon of key management pèrsonnel
The remuneration of key management personnel was as follows..
Thé key management personnel ofthe charity comprise the trustees and the Senior Management Team. The
total employee benefits of the key management personnel of the charity were £495,394 (2024 = £316,511)
11 Taxation
The charity is exempl from taxation on its a￿1VitieS because all ils income is applied for charitable purposes.
12 Tangible fixed assets
Leasehold
Rented
Offlco Flxtur•s and
land and
property furnlturn and
flttlngs
bulldlngs Improvomants
•qulpmont
Computors
Totsl
Cost
At 1 April 2024
Additions
707,081
328.184
36,504
201,862
4,301
588.108
19,305
608.342 2,433,577
69,949
130,059
At 31 March 2025
707,081
364.688
206,163
607.413
678.291 2.563.636
Depreciation and
impairnient
At 1 April 2024
Depreciation charged in the
year
85,385
178.730
189,347
554.169
446.734 1,454.365
9.856
40,703
12,402
23.161
107.198
193.320
At 31 March 2025
95,241
219,433
201,749
577,330
553,932 1,647,685
Carrylng amount
At 31 March 2025
611,840
145,255
4,414
30,083
124,359
915,951
At 31 March 2024
621,696
149.454
12,515
33,939
161,608
979,212
Annual report 2024-25
31

N07ES TO 7HEHNANaAL STA7EMENTS (CON71NUED)
FOR 7HE YEAR ENDED 31 MARCH 2025
12 Tangible fixed assets
(Continued)
Leasehold property comprises 4 terraced properties purchased from Pendle Borough Council in 2011 for use
by the Careleavers Project.
The properties were acquired subject to the following restrictive covenants:
1)
to use the properties solely for the purpose of supported residential housing for a period of 10years',
2)
not to dispose of any of the properties without the written permission of Pendle Borough Council.
In addition to the above a property known as St Clare's House in Rochdale was purchased in May 2019. and
is operaled by Ihe charity as a House of Mulliple Occupation {HMOI.
13 Debtor8
2025
2024
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
1,499,726
482.358
408,830
261,868
614,113
820,883
2,390,914
1,696,864
14 Credltors: amounts falling due within one year
2025
2024
Notss
Other taxation and social security
Deferred income
Trade creditors
Other creditors
Accruals
111,447
143,152
356,626
28.848
85,975
98.539
11,907
312,058
18,961
67,442
16
726.048
508,907
15 Operating lease commltments
The charitable company rents its head office accommodation at a cost of £34,500 (2024 .' £34.500) per
annum, under a lease for a term of ten years expiring 31.08.32.
The charitsble company also has commitm&nts under management agreements of up to three years
duration with Housing Associations and private landlords for the use of properties. Most agreements with
private landlords are for periods of six months. The annual commitment for management and occupancy
costs as at 31st March 2025 was £4,673,648 {2024 . £3,942,832).
16
Deferred income
2025
2024
Other deferred income
143,152
11,￿￿7
Deferred income is included in the financial statements as follows..
Annual report 2024-25
32

NOTES TO THE FINANCIAL STA TEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
16 Deferred income
(Continued)
2025
2024
Deferred income is included within..
Current liabilities
143,152
11,907
Movemènts in the year..
Deferred income at 1 April 2024
Released from previous periods
Resources deferred in the year
11.907
{11.907)
143,152
71,143
(71,143}
11,907
Deferred income at 31 March 2025
143,152
11,907
Contractual income has been deferred as it was received in advance of services being provided.
17 Retirement beneflt schemes
2025
2024
Defined Contrlbutlon schemes
Charge to profit or loss in respect of defined contribution schemes
224.851
195.204
The charity operates a defined contribution pension scheme for all qualrfying employees. The assets of the
schemes are held separately from those of the company in independently administered funds. The annual
commitment under this scheme is for contributions of £224.851 (2024 £195.2041.
18 Unrestrlcted funds
Designated funds are rent and seNice charge receipts set aside for future refurbishment of the housing
properties ulilised by the charity. The Trustees are ol ihe opinion that the amount set aside as at 31 March
2025 is sufficient to cover requirements in the short term.
At 1 April
2024
Incoming
resources
Resources
expended
Transfers
At 31 Ma￿h
2025
Dilapidations
Fixed assets
General fvnds
349,585
979.212
2,082,834
754,606
(407,455)
(111,212)
(63,261)
174,473
585,524
915,951
2,268,384
13,703,861 (13,692,784)
3,411,631
14,458,467 (14,100,239)
3,769,859
Annual report 2024-25
33

NOTES TO THE FINANCIAL STA TEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
18 Unrestricted funds
(Continued)
Previous year:
At 1 April
2023
Incoming
resources
Resources
expended
Transfers At 31 March
2024
Dilapidations
Fixed assets
General funds
341.843
564,487
(401,691)
(155,054)
979,212
{824.1581
349,585
979,212
2,082,834
2,928,606
11,340,511 (11.362.125)
3.270.449
11,904.998 (11.763.816)
3,411,631
Designated funds consist of..
1. Dilapidations Fund is made of rent and setvice charge receipts sel aside for future refurbishmenl of the
housing properties utilised by Ihe charity. The Trustees are of the opinion that the amount set aside as at 31
March 2025 is sufficient to cover requirements in the short term.
2. Fixed Assets Fund represents the properties and other fixed assets such as office fumiture, computer
equipment and furniture provided in our properties
19 Related party transactions
There We￿ no disclosable related party transaclions during the year {2024 - none).
No trustee or other person related to the charity had any personal interest in any contract or Iransaction entered
into by the charity during this or the previous financial year.
In the opinion of the trustees there is no ultimate controlling party.
20 Cash generated from operatlons
2025
2024
Surplus for the year
358.228
141,182
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impaimient of tangible fixed assets
19,159)
193.320
(5,426)
162,874
Movements in working capitsl:
(Increase) in debtors
Increase in creditors
Increasel(decrease) in deferred income
(694,050)
85.896
131,245
(93,750)
30,165
(59,236)
Cash generated from operations
65,480
175.809
21 Analysis of ¢hange$ in net funds
The charity had no material debt during the year.
Annual report 2024-25
34

Annual Report 2024-25
Celebrating 40 Years with
Purpose and Vision
Thank You
Stepping Stone Projects
2 The Quadrant, Green Lane, Heywood, OL10 1 NG
L 01706 353000
www.stepping-stone.org.uk