2021-03-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

POSITIVE STEPS OLDHAM - CHARITY ACCOUNTS

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

POSITIVE STEPS OLDHAM (trading as POSITIVE STEPS) (A company limited by guarantee and not having share capital) Company number: 2563094. Registered Charity Number: 1017247

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

3-19 Report of the Trustees/Directors including Strategic Report 20-23 Independent Auditors Report 24 Statement of Financial Activities 25 Balance Sheet 26 Cashflow Statement 27-48 Notes to the Financial Statements

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

REPORT OF THE TRUSTEES/DIRECTORS

The trustees/directors of Positive Steps Oldham (referred to as Positive Steps [PS] (the trading name), for the remainder of this report) present their twenty seventh Annual Report together with the financial statements. Included within the trustees’ report is the directors’ report as required by company law.

The directors or members of the board of the charitable company (the charity) are its trustees for the purpose of charity law. Throughout this report they are collectively referred to as the ‘trustees’ .

Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services	Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services	Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services	Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services	Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services	Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services	Charity number: 1017247 Company number: 2563094 Chief Executive: Stephanie A Bolshaw Registered office: Medtia Place, 80 Union Street, Oldham, Lancashire, OL1 1DJ Auditors: Wrigley Partington, Sterling House, 501 Middleton Road, Chadderton, Oldham, Lancashire, OL9 9LY Bankers: Barclays Bank plc. 25 High Street, Oldham, Lancashire, OL1 3AZ Solicitors: Key management personnel: Stephanie Bolshaw Paul Axon Rina Dabhi Clifford Shields Napthens, Greenbank Court, Challenge Way, Greenbank Business Park, Blackburn, BB1 5QB Chief Executive Office Director of Young People’s Services Director of Families and Communities Director of Corporate Services

T r	u s t e e s		e	p	r e s e n t	i n g
Miss Joanne Marie Taylor Independent
Cllr Garth Harkness Oldham Council Resigned 7thMay 2021
Mr Muzahid Khan Independent
Ms Julie Anne Edmondson (Chair) Independent
Ms Hannah Jane Roberts Independent
Cllr Abdul Malik Oldham Council
Cllr Graham Shuttleworth		Oldham Council

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Cllr Fazlul Haque Oldham Council Resigned 7th May 2021	Cllr Fazlul Haque Oldham Council Resigned 7th May 2021	Cllr Fazlul Haque Oldham Council Resigned 7th May 2021
Mrs Nicola Jane Robinson Independent
Cllr Rosalynne Katya Birch Oldham Council Appointed 27thJuly 2021
Cllr Diane Williamson	Oldham Council	Appointed 27thJuly 2021

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Positive Steps Oldham is a company limited by guarantee governed by its Memorandum and Articles of Association which were redrafted and adopted by special resolution on 27[th] September 2016 having previously been amended August 2005 and November 2006. It is registered as a charity with the Charity Commission. Members are drawn from Oldham's public sector, private business sector, education and training sector, and voluntary sector communities, each of whom agree to contribute £1 in the event of the charity winding up.

Appointment of trustees

The Memorandum and Articles of Association state that the Board of Trustees should total up to twelve members: four elected members of Oldham Council: and eight from statutory partners – (e.g. education, health, crime and disorder) and/or “community” representatives from private business, training, the voluntary sector and/or who are independent with an interest in furthering the objects of the Charity.

Trustees’ induction and training

A formal induction process for trustees is in place and informal seminars, held as part of Board meetings covering key activities, delivered by service managers supplement this. Guidance Notes are issued to all trustees informing them of their rights and responsibilities.

Organisation

The board delegates day-to-day operations of the company to the Chief Executive. Who is assisted by Directors and a number of senior managers with responsibility for operational delivery. It should be noted that these post holders are not Board members.

Remuneration of key management personnel

The goal of our pay policy is to offer fair pay to attract and keep appropriately qualified staff to lead, manage, support and deliver the charity’s aims. Trustees are ultimately responsible for setting remuneration levels for the key management personnel. Pay for other staff is determined by a Job Evaluation Scheme with a cost-ofliving award agreed by the Trustees annually. Positive Steps is a Real Living Wage accredited body and this will override the Job Evaluation grades, where applicable.

Related parties

Close working relationships exist between the Charity and local authorities and a range of other local public, private and third sector organisations, which have proved invaluable to the charity in establishing improved links within the community and identifying relevant policy developments and prospective funding.

Subsidiaries

During the 2020-21 financial year, PS had a subsidiary company:

PSO Trading Limited was incorporated on 2nd June 2005 and commenced trading on 31 October 2005. The company is a wholly-owned subsidiary of the charity and was formed to provide a range of trading activities from the offices of the charity. These include training: property hire: ICT services and projects; work experience; cycle repair/resale and DBS services for smaller voluntary sector organisations. Any surplus or profit from these trading activities is transferred to PS under a gift-aid arrangement.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

OBJECTIVES AND ACTIVITIES

As an independent sector organisation, PS is unique in England in the way it provides a range of integrated and targeted support services for young people. The trustees are mindful of the Charity Commission Guidance on public benefit. Its charitable objects are:

To advance the education and training of young people in order to prepare them for working and adult life.
To promote the industry/education partnerships with particular reference to young people in their last years of formal education.
The relief of unemployment for the public benefit in such ways as may be thought fit, including assistance to find employment.
The provision of educational and recreational facilities for young people in the interests of social welfare.
The promotion of public safety.
The prevention of crime and the rehabilitation of young offenders.
Such other ancillary or incidental training or educational activities and other associated activities for the benefit of the community

During the year, the biggest contract continues to be with Oldham MBC who contract with us to deliver a range of integrated and targeted services for young people, adults and families mainly in the Borough of Oldham. We have continued to deliver Career Guidance services in both Rochdale and Tameside. Our work has been supported by a range of other local, regional and national funding, resulting in the following delivery model:

Young People’s Services

The work of this directorate focuses on two services – Careers Guidance and Support and Youth Justice and Prevention.

Careers Guidance and Support

Each local authority (Oldham, Rochdale and Tameside) funds information, advice and guidance (IAG) with young people who are at risk of becoming NEET and those in target groups, such as those in the care of the local authority, those involved with the criminal justice system, those with special educational needs or disabilities and teenage parents. Allied to that, we have contracts with over 50 schools and colleges to provide IAG for non-targeted students.

Youth Justice and Prevention

This work focuses on clients with the most complex needs including young people who are missing from home and at risk of child sexual exploitation and young people at risk of or involved in offending behaviour. The services are delivered in partnership with other statutory and voluntary sector organisations in Oldham. Positive Steps is actively involved in both strategic work and in the operational delivery of services for these clients. The services are provided in a holistic way with support offered to whole families in order to assess and support around systemic issues that may be influencing problematic behaviours. Positive Steps is unique as a third sector organisation delivering the statutory Youth Justice Service in Oldham.

Families, Health and Wellbeing

The largest element of this Directorate is Early Intervention and Prevention (EIP). EIP is an Oldhamwide strategy to support individuals and families of all ages to stay in control of their lives by effectively managing issues that may be affecting them and preventing escalation to crisis services. The Positive Steps service consists of staff and many more volunteers who support families in their own homes and within District Hubs. Assessment and support can be offered for issues such as emotional wellbeing, financial difficulties, housing, relationship difficulties and behaviour management. The Early Help

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

service works closely in partnership with Oldham Council alongside other voluntary sector partners to deliver a holistic offer.

The Directorate delivers the Young Carers Service which provides support for young people who have a caring responsibility at home – identifying and engaging these vulnerable young people and their families to help them to develop social confidence increasing opportunities for them to engage fully with peers and their community.

Up until 31[st] December 2020 and 31[st] March 2021, the Directorate delivered the Health Improvement Service and Integrated Health Services for Oldham Council respectively. Unfortunately, following an unsuccessful tendering exercise these were transferred to new providers.

Corporate Services

The Directorate has two key roles within the business, to provide corporate support and to develop the trading company, PSO Trading Ltd.

Corporate Support

This is delivered by two specialist teams each with a service lead and appropriately skilled and experience staff. The two teams are:

Professional & Facilities Support – Finance; Human Resources; Compliance and Facilities

Management & Systems Support – ICT; Management Information; Marketing and Administration

The “Front of House” and Volunteers service are delivered by an operational manager who also manages part of the trading activities. Volunteers are integral to Positive Steps as a whole. Over the past 18 months we have successfully developed roles for volunteers and have recruited and trained volunteers to work in all areas of the business. We strive to offer high quality and meaningful volunteering opportunities and offer an excellent training package and a range of opportunities including paid work.

PSO Trading Ltd

PSO Trading Ltd is a wholly-owned subsidiary of Positive Steps and any trading surpluses are covenanted into the Positive Steps charitable trust. Non-charitable activity undertaken includes the sales of IT products and service, cycle repair and sale, Car Park hire, DBS service, room hire and a range of training and consultancy services.

We support schools through traded services that organise work experience placements, mock interviews and employer encounters, we have developed a Positive Futures programme, a mentor based supportive work experience offer (Year 9 upwards) working across all employment sectors.

We have also developed an in-house bicycle project – Positive Cycles – which works with young people and adults to develop skills around bicycle maintenance and renovation.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

ACHIEVEMENTS AND PERFORMANCE

----- Start of picture text -----
Positive Steps has a long history of hitting and exceeding targets and the past
year has proved no exception. During the April 2019 to March 2020 period, we
delivered a comprehensive, integrated range of services which helped young
people, adults and families reach their full potential. Our approach throughout
has been to understand and break down the barriers individuals face in
reaching their goals.
----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

EARLY HELP SERVICES

During 2020/21 1461 Early Help Positive Steps cases delivered the 286 brief interventions medium and carried out – 254 low intensity progressing to full Early levels of the Help Assessment Early Help Service in Oldham. This 69 Health checks included and Health MOTs We carried out 400 brief interventions and 153 health check carried out people went on to receive Early Help Support and stop smoking 859 Stop Smoking support, plus clients worked with the two year leading to a quit rate of old offer

1461 Early Help cases 286 brief interventions carried out – 254 progressing to full Early Help Assessment

859 Stop Smoking clients worked with leading to a quit rate of 46.50%

761 families were engaged with the two year old offer

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

INTEGRATED SEXUAL HEALTH & SUBSTANCE MISUSE SERVICES

Positive Steps had led the way in integrated young people’s services with a long history of seamless service provision.

The integrated health service demonstrated the benefits of this model of working. Young people could access sexual health advice and substance misuse provision in the same intervention, reducing their need to retell their stories and tackle the, often interlinked, issues that create problems for young people.

245 young people accessed the substance misuse service for the first time

225 sexual health clinics were delivered

100% of sexual health patients were seen within 48 hours

A partnership had been successfully developed between Positive Steps and Brook

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Volunteers contributed 4,056 hours of support to the people accessing our service areas

201 volunteers have passed their AQA level 1 Child, Vulnerable Adults Protection, Safeguarding and Security and Information Level 1

22 volunteers have passed their AQA level 2 in peer mentoring 1

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

CAREERS INFORMATION, ADVICE & GUIDANCE

We pride ourselves on being able to offer “more than a careers service” and we deliver what we call “blended guidance” which is built upon career guidance theory and models of delivery with NLP techniques and strategies.

We deliver contracts in Rochdale, Tameside and Oldham, and work in selected schools in Bury and Manchester

We continued to keep 16-18 NEET figures low, while reducing the number of young people with whom we had lost touch

We achieved participation rates of Oldham 95.6% Rochdale 96.7% Tameside 96.4%

The number of looked after children who left school and remained in education/learning were Oldham 85.7% Rochdale 93.0% Tameside 89.6%

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

YOUTH JUSTICE

Positive Steps delivers the statutory Youth Justice Service in Oldham.

We supervise children and young people aged 10 to 18. Some are serving court sentences; others have not been charged for their offending behaviour and are being dealt with outside the court system.

The rate of re-offending in Oldham of 27.30% was better than the figures for Greater Manchester, the North West, England and our YJS family comparators

Our custody rate per 1,000 of the age 10-17 population of 0.04 is lower than all our comparators

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

VOLUNTEERING

Volunteers are integral to Positive Steps as a whole.

We strive to offer high quality and meaningful volunteering opportunities and offer an excellent training package and a range of opportunities including paid work.

Volunteers contributed 4,056 hours of support to the people accessing our service areas

YOUNG CARERS SERVICE

We deliver the Young Carers service in Oldham. It provides young people with a break from their caring duties and an opportunity to socialise and develop life skills

We had 601 young carers registered as at 31[st] March 2021. 90.6% progressed into learning on leaving school

MISSING FROM HOME SERVICE

We deliver the Missing from home interview service in Oldham

During 2020/21 there were 1,186 reported cases, of which 87.7% were interviewed within 72 hours

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

STRATEGIC REPORT INCLUDING FINANCIAL REVIEW

The Positive Steps Oldham Charity accounts for 2020-21 show overall income decreasing from £6,690,550 in 2019-20 to £ 6197,570, this year, a decrease of 7.4%. This was almost entirely attributable to funding cuts within the Career Guidance & Support Services directorate and restructuring costs.

The accounts show, initially, an operating loss of £103,518. However, FRS102 Pension Scheme adjustments of £426,000 and restructuring costs of £281,660 resulted in an operating deficit for the year of £811,188.

The figures presented in the GM Pension Fund’s actuarial report are prepared only for the purposes of FRS102 and have no validity in other circumstances. “In particular, they are not relevant for calculations undertaken for funding purposes. The methodology of the Accounting Standard, in conjunction with the Fund’s investment strategy, means that the surplus or deficit identified in the report can vary significantly over short periods of time.” It is important to realise that the actual cost of the pension fund (i.e. how much money it will ultimately have to pay out to its members in the form of benefits) is unknown. This cost will not be known with certainty until the last benefit is paid to the last pensioner. The purpose of this valuation is to estimate what this cost will be, so that the Fund can then develop a funding strategy to meet it.

The pension asset and liability has featured in financial reports and statements since 2005, and has, following re-assessment by the Greater Manchester Pension Scheme’s independent actuary, worsened from a deficit of £6,217,000 on 31[st] March 2020 to a deficit of £13,201,00 on 31[st] March 2021. The FRS102 (FRS 17) calculations continue to oscillate year on year with the following surpluses and deficits noted since the FRS102 (FRS 17) requirements were introduced in 2004-2005:

----- Start of picture text -----
FRS102 (FRS 17) calculations
£2,000,000
£0
(£2,000,000)
(£4,000,000)
(£6,000,000)
(£8,000,000)
(£10,000,000)
(£12,000,000)
(£14,000,000)
2005 2021
----- End of picture text -----

Further disclosures relating to the pension fund are given on note 27 to the accounts.

On reviewing the Balance Sheet, the net assets, excluding pension reserve, have decreased from £2,451,203 to £2,066,015.

Investment Powers and Policy

Under the Memorandum and Articles of Association, the Company has the power to invest in any way the trustees wish.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

The trustees, having regard to the liquidity requirements of operating the business of the Company and the Reserves Policy, have, where possible, kept available cash funds in an interest bearing deposit account and seek to achieve a rate of interest which matches or exceeds inflation measured by the retail price index.

Reserves Policy

In June 2019, the trustees approved the following Reserves Policy:

Reserves should be regarded as realisable “cash assets” namely: funds in the bank; and the difference between moneys owed to creditors and moneys owed by debtors.

Fixed assets would not be included.

A Building and Capital Asset Reserve intended to provide a ready source of funds for repair or acquisition of buildings, leaseholds, furniture, fixtures, and equipment necessary for the effective operation of the organisation and programs.

An Opportunity Reserve intended as a source of internal funds for organisational capacity building such as staff development, research and development, or investment in infrastructure that will build long-term capacity.

An Operating Reserve intended to provide an internal source of funds for situations such as a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss in funding, or uninsured losses. The Operating Reserve is not intended to replace a permanent loss of funds or eliminate an ongoing budget gap.

A Pensions Liability Reserve intended to allow for future potential pension liabilities as a result of retirement on ill health grounds.

The set aside values for these reserves as at 31st March 2021 were:

Building and Capital Asset Reserve	£750,000
Opportunity Reserve	£200,000
Operating Reserve	£250,000
Pensions Liability Reserve	£650,000
	£1,850,000

Cash assets as defined above as at 31 March 2021 were £1,112,053.

Plans for Future Periods

Contracting/Funding Activity

The Oldham Integrated Support Services for Oldham Young People’s contract is secured until March 2022, with an optional additional year, for Lots 2 (The Prevention and Reduction of Youth Offending) and 3 (Support for Vulnerable Young People).

The Rochdale Young People’s Support and Guidance Services has been extended through to March 2022 when we will be tendering to secure the new contact

The Tameside Careers Guidance and Support Service contract was secured until December 2022, with the possibility of two single year further extensions.

We were successful in securing the All Age Early Intervention and Prevention contract for Oldham until March 26, with the possibility of an optional two years.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

During 2021/22 we will be looking to expand our range of commissioned services into existing and new geographical areas.

Furthermore, we will continue to bid for specific funding opportunities from the Home Office; Children in Need; Community Safety and other funders.

Our trading arm, Positive Steps Trading, will be focussing on developing its range of services and expanding its existing customer base.

Future Ways of Working

We have moved to a hybrid model of working, in line with locality working and the impact of the covid-19 pandemic

All staff can work remotely and have been equipped with chromebooks, mobile phones and peripherals.

Reviews of working practices are ongoing, both to meet the demands of hybrid working and to realise efficiency savings. Further reduction of paper-based processes and the development of a ICT based processes are key projects planned for 2021/22.

Our “state of the art” Oldham HQ offices are attracting partners to co-locate with us and it is planned that this will developed to further enhance the integrated offer.

Environmental Responsibility

Positive Steps takes its environmental responsibility seriously with existing schemes for the recycling of waste, unwanted furniture and redundant ICT equipment and for ethical procurement.

In April 2020 we adopted an Environmental Policy that contains 12 objectives that will focus our commitment to environmental sustainability.

Principal Risks and Uncertainties

The trustees and senior managers remained mindful of the major risks, both internal and external, facing the organisation and where appropriate, systems or procedures have been established to mitigate those risks.

External risks to funding have led to the development of a strategy to continue to diversify activities and seek to diversify business within the sub-region.

Internal control risks were minimised by the implementation of procedures for authorisation of all financial transactions. Contract negotiation with funding bodies is supported by external legal advice. Detailed procedures and protocols existed which supported grievance and disciplinary processes, which were again underpinned by specialist external legal advice.

In particular robust HR systems and processes have minimised employee relations risk and helped to create a more flexible and generic employee base which has minimised economic dismissals through enabling movement into other posts which have been created as a result of new project demands. Staff turnover and sickness absence, during the year, were below industry norms. Although the loss of the Health Improvement and Integrated Health contracts led to a number of staff transferring to the new provider, under TUPE regulations, and will necessitate a corporate restructure in early 2021/22 that will result in a number of redundancies.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

The Company continued to operate a ‘safe recruitment’ policy in line with Local Safeguarding Children Board standards. All posts, undertaking regulated activity for the organisation, were subject to an Enhanced DBS disclosure at the point of recruitment and reviewed every three years.

Other procedures ensured compliance with health and safety regulations for staff, volunteers, clients and visitors and full insurance cover was maintained in relation to public and employer liability.

The company recognises two trade unions: Unison and GMB. Any proposed changes to terms and conditions of employment or other workplace issues were subject to full consultation.

All procedures relating to finance, human resources, IT and professional practice were kept under constant review in the light of changes in legal requirements and improvements in professional standards.

Trustees' responsibilities in relation to the financial statements

The charity’s trustees are responsible for preparing the annual report and financial statements in accordance with applicable law and 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 charity’s and group’s incoming resources and applications of resources during the year and of its state of affairs at the end of the 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;
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 business.

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

Statement as to disclosure to our auditors

In so far as the Trustees are aware at the time of approving this report:

There is no relevant audit information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware, and
The trustees, having made enquiries of fellow directors and the auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

Compliance with accounting standards

The trustees confirm that the financial statements comply with current statutory requirements, the requirements of the company’s memorandum and articles of association and the requirements of the Charities SORP (FRS 102).

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Auditors

The auditors, Third Sector Accountancy Ltd, will be proposed for re-appointment in accordance with Section 487 (2) of the Companies Act 2006.

This report was approved by the board on 11[th] January 2022 and signed on its behalf by:

J A Edmondson, Trustee

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Independent auditor’s report to the members of Positive Steps Oldham

Opinion

We have audited the financial statements of Positive Steps Oldham (the ‘parent charitable company’) and its subsidiary (‘the group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ 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 group’s or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Independent auditor’s report to the members of Positive Steps Oldham

misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require ~~s~~ us to report to you if, in our opinion:

adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Independent auditor’s report to the members of Positive Steps Oldham

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

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the group and environment in which it operates, we identified the principal risks of non-compliance with laws and regulations related to pension legislation, tax legislation, employment legislation, health and safety legislation, and other legislation specific to the industry in which the group operates, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the reporting requirements under the Charities SORP and FRS102, and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to:

Posting manual journal entries to manipulate financial performance, including the treatment of deferred income being inconsistent with FRS102 SORP income recognition and the treatment of the redundancy costs incurred in the year; and
Management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Compliance with laws and regulations:

Discussions with management including consideration of known or suspected instances of non-compliance with relevant laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit;
Review minutes of meetings for issues relating to non-compliance;
Reviewing both the design and implementation of key policies, including safeguarding.
Review of correspondence with the regulators and with legal advisors;

Material Fraud in the financial statements:

Making enquiries of management and those charged with governance on whether they had any knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud;
Addressing the risks of fraud through management override of controls by performing journal entry testing; and
Challenging assumptions and judgments made by management, including reviewing management’s recognition of income in line with FRS102 SORP, use of depreciation policies, treatment of restructuring costs in the year and the defined benefit pension liability and associated disclosures;

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Independent auditor’s report to the members of Positive Steps Oldham

There are inherent limitations in the audit 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 detecting 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 for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charitable company and, the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Patrick Morrello (Senior Statutory Auditor) For and on behalf of Third Sector Accountancy Limited, Statutory Auditor Holyoake House Hanover Street Manchester M60 0AS

25 / 01 / 2022

Date

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Consolidated Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 March 2021

----- Start of picture text -----
As re-stated
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds funds 2021 funds funds 2020
Note £ £ £ £ £ £
Income from:
Donations and legacies 3 197,954 - 197,954 60,285 - 60,285
Charitable activities 4 5,733,791 120,466 5,854,257 6,188,604 51,224 6,239,828
Other trading activities 5 138,504 - 138,504 311,769 5,343 317,112
Investments 6 6,855 - 6,855 73,325 - 73,325
Total income 6,077,104 120,466 6,197,570 6,633,983 56,567 6,690,550
Expenditure on:
Raising funds 7 252,379 - 252,379 320,725 5,343 326,068
Charitable activities 8 6,474,719 33,225 6,474,719 6,866,705 35,573 6,902,278
Other expenditure 10 281,660 - 281,660 - - -
Total expenditure 7,008,758 33,225 7,008,758 7,187,430 40,916 7,228,346
Net income/(expenditure) (931,654) 87,241 (811,188) (553,447) 15,651 (537,796)
Remeasurement gain/(loss) on defined benefit
pension plan 27 (6,558,000) - (6,558,000) 5,079,000 - 5,079,000
Net movement in funds 11 (7,489,654) 87,241 (7,369,188) 4,525,553 15,651 4,541,204
Reconciliation of funds
Total funds brought forward (3,781,448) 15,651 (3,765,797) (8,307,001) - (8,307,001)
Total funds carried forward (11,271,102) 102,892 (11,134,985) (3,781,448) 15,651 (3,765,797)
----- End of picture text -----

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

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham Company number 2563094

Balance Sheets

as at 31 March 2021

----- Start of picture text -----
The group The Charity
As re-stated As re-stated
Note 2021 2020 2021 2020
£ £ £ £
Fixed assets
Tangible assets 16 953,962 226,190 952,843 224,374
Investments 17 - - 1 1
Total fixed assets 953,962 226,190 952,844 224,375
Current assets
Stock 3,906 - - -
Debtors 20 341,477 450,273 424,043 446,027
Cash at bank and in hand 1,855,999 2,380,648 1,770,395 2,319,697
Total current assets 2,201,382 2,830,921 2,194,438 2,765,724
Liabilities
Creditors: amounts falling
due in less than one year 21 (1,089,329) (605,908) (1,048,422) (588,810)
Net current assets 1,112,053 2,225,013 1,146,016 2,176,914
Total assets less current liabilities 2,066,015 2,451,203 2,098,860 2,401,289
Net assets excluding pension liability 2,066,015 2,451,203 2,098,860 2,401,289
Defined benefit pension scheme
liability 27 (13,201,000) (6,217,000) (13,201,000) (6,217,000)
Net liabilities (11,134,985) (3,765,797) (11,102,140) (3,815,711)
Funds of the charity:
Restricted income funds 22 102,892 15,651 102,892 15,651
Unrestricted income funds:
General 23 1,963,123 2,435,552 1,995,968 2,385,638
Pension reserve (13,201,000) (6,217,000) (13,201,000) (6,217,000)
Total charity funds (11,134,985) (3,765,797) (11,102,140) (3,815,711)
----- End of picture text -----

These accounts are 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 members of the company.

The notes on pages 27 to 50 form part of these accounts.

Approved by the trustees on 11 January 2022 and signed on their behalf by:

J A Edmondson (Trustee)

Joanne Taylor (Trustee)

Cliff Shields (Secretary)

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Consolidated Statement of Cash Flows

for the year ending 31 March 2021

----- Start of picture text -----
Note 2021 2020
£ £
Cash provided by/(used in) operating
activities 26 377,560 58,642
Cash flows from investing activities:
Dividends, interest, and rents from investments 6,855 73,325
Purchase of tangible fixed assets (909,064) (50,043)
Cash provided by/(used in) investing activities (902,209) 23,282
Increase/(decrease) in cash and cash
equivalents in the year (524,649) 81,924
Cash and cash equivalents at the beginning of the year 2,380,648 2,298,724
Total cash equivalents at the end of the year 1,855,999 2,380,648
----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021

1 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The financial statements have been prepared in accordance with 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) issued in October 2019 - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Positive Steps Oldham meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b Group financial statements

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary PSO Trading Limited on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure account are not presented for the charity itself following exemtions afforded by section 408 of the Companies Act 2006.

c Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

d Key judgments and estimates Defined benefit pension scheme

The present value of Positive Steps Oldham' defined benefit pension scheme liabilities is calculated every three years by an appointed actuary. For the purpose of reporting the actuarial present value of promised retirement benefits, this liability value is updated annually in intervening years by the Actuary. The methodology used is in line with accepted guidelines and in accordance with FRS102. Assumptions underpinning the valuations are agreed with the Actuary. This estimate is subject to significant variances based on change to the underlying assumptions. See note 27 for summary of assumptions used and sensitivity analysis performed.

It is difficult to assess the accuracy of the rolled-forward obligations shown in the accounts without conducting a full valuation using updated individual membership data. Such a valuation is generally not practical in the time available to meet the Employer's reporting requirements. The estimated rolledforward obligations as at the accounting date will therefore not reflect differences in demographic experience from that assumed (e.g. member longevity), the impact of differences between aggregate changes in salaries or changes for specific individuals (e.g. individual members transfers in/out of an Employer).

In addition, whilst the obligations calculated under FRS102 include an allowance for some premature retirements on grounds of ill-health, there is no allowance for early retirements on grounds of redundancy or efficiency.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

1 Accounting policies (continued)

Defined benefit pension scheme (continued)

There are risks and uncertainties associated with whatever assumptions are adopted. FRS102 requires the assumptions to be determined on a best estimate basis. However the assumptions are in effect projections of future investment returns and demographic experience many years into the future and there is inevitably a great deal of uncertainty in what constitutes best estimate for such projections.

It should also be noted that the actuary’s estimation will likely be less accurate in the second and third years following the last triennial valuation, as greater estimation uncertainty is involved. See note 27 for full disclosure of the pension scheme estimates, including uncertainties. There are no other key judgments or estimates relevant to the financial statements.

e Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.

f Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer is not recognised; refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

1 Accounting policies (continued)

Notes to the accounts for the year ended 31 March 2021 (continued)

h Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

i Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds comprise the costs of commercial trading in the subsidiary company and associated support costs.
Expenditure on charitable activities includes the costs undertaken to further the purposes of the charity and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 9.

k Operating leases

Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

l Tangible fixed assets

Individual fixed assets are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Leasehold improvements The remaining term of the lease Office fixtures and equipment 3 to 10 years

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

1 Accounting policies (continued)

m Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q Pensions

Defined contribution scheme

Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 12. There were no outstanding contributions at the year end. The costs of the defined contribution scheme are included within support and governance costs and allocated to the funds of the charity using the methodology set out in note 9.

Defined benefit scheme

2 Legal status of the charity

The charity is a company limited by guarantee registered in England and Wales 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 office address is disclosed on page 1.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

----- Start of picture text -----
3 Income from donations and legacies
Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £
Refurbishment contribution from landlord 144,684 - 144,684 60,285 - 60,285
In kind donation: Property Lease 27,250 - 27,250 - - -
HMRC schemes 26,020 - 26,020 - - -
197,954 - 197,954 60,285 - 60,285
4 Income from charitable activities As re-stated
Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £
Young Peoples Services 3,362,293 100,000 3,462,293 3,497,277 21,273 3,518,550
Families Health and Wellbeing 2,371,498 20,466 2,391,964 2,691,327 29,951 2,721,278
5,733,791 120,466 5,854,257 6,188,604 51,224 6,239,828
5 Income from other trading activities
Unrestricted Restricted 2021 Unrestricted Restricted 2020
£ £ £ £ £ £
Work experience 63,638 - 63,638 147,376 - 147,376
Room hire 8,450 - 8,450 8,562 - 8,562
Projects 66,104 - 66,104 127,556 5,343 132,899
Training materials and sundry sales 312 312 28,275 - 28,275
138,504 - 138,504 311,769 5,343 317,112
----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

----- Start of picture text -----
6 Investment income
Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £
Income from bank deposits 2,043 - 2,043 14,726 - 14,726
Rent receivable 4,812 - 4,812 58,599 - 58,599
6,855 - 6,855 73,325 - 73,325
7 Cost of raising funds
Unrestricted Restricted 2021 Unrestricted Restricted 2020
£ £ £ £ £ £
Activity costs - PSO Trading Limited 104,390 - 104,390 320,725 5,343 326,068
Staff costs - PSO Trading Limited 109,726 - 109,726 - - -
Pension scheme adjustments 9,644 - 9,644 - - -
Support costs (see note 9) 27,718 - 27,718 - - -
Governance costs (see note 9) 901 - 901 - - -
252,379 - 252,379 320,725 5,343 326,068
----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

8 Analysis of expenditure on charitable activities

taff costs raining and employee costs roject costs ravel, subsistence and transport ent and property costs rinting and promotions tationery and administration elephone and data communications omputer maintenance and software epreciation rofessional services ension scheme adjustments: overnance costs (see note 9) upport costs (see note 9) Current service costs less employer contribution Net interest on the defined benefit pension liability	Young Peoples Services £ 2,598,145 10,542 41,493 7,738 154,644 - 8,847 21,179 125,233 103,937 14,467 150,099 78,266 656,319 21,334 3,992,243	Family, Health, and wellbeing £ 1,342,469 2,825 389,783 3,265 132,080 - 5,371 15,201 57,003 53,705 12,632 77,557 40,440 339,122 11,023 2,482,476	Total 2021 £ 3,940,614 13,367 431,276 11,003 286,724 - 14,218 36,380 182,236 157,642 27,099 227,656 118,706 995,441 32,357 6,474,719	Young Peoples Services £ 2,452,632 - 55,627 26,509 133,406 678 15,474 22,312 147,065 37,717 - 333,600 161,400 546,145 18,731 3,951,296	Family, Health, and wellbeing £ 1,550,415 - 468,265 14,842 111,371 397 8,886 13,060 86,080 22,078 - 222,400 107,600 334,128 11,460 2,950,982 *As re-stated*	Total 2020 £ 4,003,047 - 523,892 41,351 244,777 1,075 24,360 35,372 233,145 59,795 - 556,000 269,000 880,273 30,191 6,902,278

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

9 Analysis of governance and support costs

taff costs ension scheme adjustments raining and employee costs elephone and data communication omputer maintenance and software tationery and administration ent and property costs epreciation udit and accountancy rofessional services l l o c a t e d a s f o l l o w s : Cost of raising funds Young Peoples Services Family, Health, and Wellbeing	Support £ 776,321 68,235 6,714 3,261 42,924 5,540 78,722 31,056 - 10,386 1,023,159 27,718 656,319 339,122 1,023,159	Governance £ 20,000 1,758 - - - - - - 11,500 - 33,258 901 21,334 11,023 33,258	Total 2021 £ 796,321 69,993 6,714 3,261 42,924 5,540 78,722 31,056 11,500 10,386 1,056,417 28,619 677,653 350,145 1,056,417	Support £ 665,009 - 33,658 - - - 122,389 29,896 - 29,321 880,273 - 546,145 334,128 880,273	Governance £ 19,191 - - - - - - - 11,000 - 30,191 - 18,731 11,460 30,191	Total 2020 £ 684,200 - 33,658 - - - 122,389 29,896 11,000 29,321 910,464 - 564,876 345,588 910,464

Support costs have been apportioned using numbers of people per area of activity, or on a basis which is considered consistent with the use of the resources.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

----- Start of picture text -----
10 Other expenditure
2021 2020
£ £
Early Help Restructuring
Redundancy costs 59,530 -
Pension strain costs 13,923 -
73,453 -
Corporate Restructuring
-
Redundancy costs 82,630
Pension strain costs 125,577 -
208,207 -
Total Restructuring Costs 281,660 -
----- End of picture text -----

Early help restructuring costs relates to the fact the required redundancies due to the loss of the Early Help contract. 5 employees were made redundant during the period, with all members of staff leaving Positive Steps in the current financial year.

Corporate restructuring costs relates to significant internal reorganisation required due to the above mentioned loss of contracts and the impact of fixed price long-term commissions. As part of the restructuring plan, 7 employees were made redundant, all with a final working date in July 2021.

The liability for the corporate restructuring costs have been accrued in the year ending 31st March 2021 due to the fact that it is deemed to have met the three criteria for recognition of a liability under FRS102. As at the year end, It is an obligation that exists as a result of a past event (obligation), it is more likely than not that a transfer of economic benefits will be required in settlement (probable) and the amount of the obligation can be measured or estimated reliably (measurement).

In addition, Under FRS102 Section 28 Employment Benefits, an entity is required to recognise redundancy costs in profit or loss immediately once the entity is demonstrably committed to terminate employment or make payment due to an offer made to encourage redundancy.

Positive Steps were deemed demonstrably committed due to the fact that as at the year end they had:

-prepared and approved a detailed formal plan to terminate employment; and

-raised a valid expectation in those affected by redundancies that it will carry out the restructuring by announcing it's main features to those affected by it.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

----- Start of picture text -----
11 Net income/(expenditure) for the year 2021 2020
£ £
This is stated after charging/(crediting):
Depreciation 165,809 92,557
Loss on disposal of fixed assets 23,585 -
Defined benefit pension costs:
Current year service costs 830,000 1,078,000
Past service cost - 3,000
Net interest 146,000 269,000
Restructuring costs (as note 10 above) 281,660 -
Operating lease rentals:
Land and buildings 264,684 276,684
Auditor's remuneration - audit fees 9,000 11,000
Auditor's remuneration - accountancy fees 3,400 -
12 Staff costs
Staff costs during the year were as follows: As re-stated
2021 2020
£ £
Wages and salaries 3,888,142 3,929,520
Social security costs 336,613 347,674
Pension costs 590,706 570,059
Redundancy costs 281,660 -
Other staff costs 31,200 -
5,128,321 4,847,253
----- End of picture text -----

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

haritable activities aising funds	150 5 155	153 8 161

The number of employees whose emoluments (gross salary plus employer pension contribution) amounted to over £60,000 in the year were as follows:

£60,001 - £70,000	1	1
£70,001 - £80,000	1	1
£80,001 - £90,000	1	-
£90,001 - £100,000	-	1
£100,001 - £110,000	1	-

The key management personnel of the charity comprise the trustees and the Senior Management Team. The total employee benefits of the key management personnel of the charity were £327,176.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

13 Trustee remuneration and expenses, and related party transactions

Neither the trustees nor any persons connected with them received any remuneration or reimbursed expenses during the year (2020: Nil).

In line with the definition of a related party per FRS102, any entity that is a post-employment benefit plan for the benefit of employees of the reporting entity is a related party and hence is to be disclosed. Under this basis, Greater Manchester Pension Fund are a related party. For more details of associated transactions please see note 27.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

Stephanie Bolshaw, the CEO, is a trustee of Mahdlo (Oldham Youth Zone), charity number 1134427. During the year, the group supplied services and equipment to Mahdlo for £18,961.

Four trustees are also Oldham Metropolitan Borough Councillors. During the year, the charity was paid £3,854,121 by the council for services. The charity also paid £10,083 for charges made by the council.

The charity is the sole member of its subsidiary company PSO Trading Limited. The charity is a director of PSO Trading Limited, as are two members of the charity's senior management team. During the year the charity had the following transactions with the subsidiary:

	£
Payroll costs re-charged to the subsidiary	109,726
Other costs recharged to the subsidiary	49,389
Charges by subsidiary to parent charity	(14,034)
Payment of donation from subsidiary to parent	51,778

As at 31 March 2021 the subsidiary owed the parent charity £127,938.

Apart from the above, no trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2020: nil).

14 Government grants

The government grants recognised in the accounts were as follows:

HM Revenue and Customs hildren in Need Ministry of Justice	2021 £ 26,020 20,466 30,596 77,082	2020 £ - 29,951 - 29,951

There were no unfulfilled conditions and contingencies attaching to the grants.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

15 Corporation tax

The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. The charity's trading subsidiary PSO Trading Limited gift aids available profits to the parent charity. Its charge to corporation tax in the year was:

----- Start of picture text -----
2021 2020
£ £
UK corporation tax at 19% (2020: 19%) - -
16 Fixed assets: tangible assets
The group
Leasehold Office
improvements equipment Total
£ £ £
Cost
At 1 April 2020 308,089 374,218 682,307
Additions 636,814 272,250 909,064
Disposals (112,201) (143,940) (256,141)
At 31 March 2021 832,702 502,528 1,335,230
Depreciation
At 1 April 2020 192,509 263,608 456,117
Charge for the year 80,686 85,124 165,810
Disposals (93,186) (147,473) (240,659)
At 31 March 2021 180,009 201,259 381,268
Net book value
At 31 March 2021 652,693 301,269 953,962
At 31 March 2020 115,580 110,610 226,190
----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

16 Fixed assets: tangible assets (continued)

The charity

----- Start of picture text -----
Leasehold Office
improvements equipment Total
£ £ £
Cost
At 1 April 2020 308,089 368,125 676,214
Additions 636,814 272,250 909,064
Disposals (112,201) (141,097) (253,298)
At 31 March 2021 832,702 499,278 1,331,980
Depreciation
At 1 April 2020 192,509 259,331 451,840
Charge for the year 80,684 84,429 165,113
Disposals (93,186) (144,630) (237,816)
At 31 March 2021 180,007 199,130 379,137
Net book value
At 31 March 2021 652,695 300,148 952,843
At 31 March 2020 115,580 108,794 224,374
17 Investments
The group The charity
2021 2020 2021 2020
£ £ £ £
Investment in group undertakings - - 1 1
----- End of picture text -----

The charity owns one share in PSO Trading Limited which represents 100% of the issued share capital of that company.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

18 Subsidiary undertaking

The Charitable company owns the whole of the issued ordinary share capital of PSO Trading Limited, a company registered in England. The subsidiary is used for non-primary purpose trading activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

----- Start of picture text -----
|||| |---|---|---| |Profit and loss account|2021|2020| |£|£| |Turnover|143,317|375,711| |Administration costs|(214,116)|(326,068)| |Other operating income|30,918|-| |Net (loss)/profit|£ (39,881)|£ 49,643| |Balance sheet|2021|2020| |£|£| |Fixed assets|1,120|1,815| |Current assets|134,882|48,100| |Creditors due in less than one year|(168,845)|-| |(£32,843)|£49,915| |Called up share capital|1|1| |Profit and loss account|18,934|49,914| |Gift aid payment to parent|(51,778)|-| |(£32,843)|£49,915|

----- End of picture text -----

19 Parent charity

The parent charity's gross income and the results for the year are disclosed as follow:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Gross income|6,175,939|6,055,131| |Net surplus/(deficit)|(687,726)|(724,230)| |Actuarial (losses)/gains on defined benefit pension sche|(6,598,707)|5,079,000| |Net movement in funds|(7,286,433)|4,354,770|

----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

20 Debtors

----- Start of picture text -----
The group The charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 273,538 240,365 230,690 195,856
Amounts owed by subsidiary
undertaking - - 127,939 46,685
Prepayments 45,823 46,064 43,298 43,892
Accrued income 22,116 4,250 22,116 -
Other debtors - 159,594 - 159,594
341,477 450,273 424,043 446,027
21 Creditors: amounts falling due within one year
The group The charity
As re-stated As re-stated
2021 2020 2021 2020
£ £ £ £
Trade creditors 280,217 131,621 270,805 129,680
Amounts owed to subsidiary
undertaking - - - 7,730
Accruals 391,139 164,214 376,820 157,271
Deferred income 186,753 111,507 171,345 100,479
Taxation and social security costs 231,220 198,566 229,452 193,650
1,089,329 605,908 1,048,422 588,810
----- End of picture text -----

Deferred income is service contract income where amounts have been received or billed in advance of the performance of the services.

Included within accruals is a balance of £133k (2020: £66k) in respect of a holiday pay accrual. The accrual has increased significantly in the year due to the fact that as part of Covid-19 and related government guidelines, employees were allowed to carry forward up to 15 days (PY: 5 days) into the following holiday year. As such, this combined with the fact that holiday uptake was down during the year due to Covid-19, the holiday pay accrual balance has increased significantly year on year. This balance is expected to decrease back to standard in the following years.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

22 Analysis of movements in restricted funds

----- Start of picture text -----
Current reporting period
Balance at 1 Balance at 31
April 2020 Income Expenditure Transfers March 2021
£ £ £ £ £
Barclays Covid - 100,000 (14,033) - 85,967
Children in Need 15,651 20,466 (19,192) - 16,925
Total 15,651 120,466 (33,225) - 102,892
Previous reporting period
Balance at 1 Balance at 1
April 2019 Income Expenditure Transfers April 2020
£ £ £ £ £
Co-op Foundation - 7,616 (7,616) - -
Children in Need - 29,951 (14,300) - 15,651
Home Office - 19,000 (19,000) - -
Total - 56,567 (40,916) - 15,651
Name of
restricted fund Description, nature and purposes of the fund
Co-op Foundation Building Connections Fund Youth Strand
Children in Need Health and wellbeing project for young carers
Home Office Provision of knife crime community fund
Barclays Covid Provision of free bicycles and tablets to people during the pandemic
Analysis of movement in unrestricted fundsnalysis of movement in unrestricted fundsalysis of movement in unrestricted fundslysis of movement in unrestricted fundsysis of movement in unrestricted fundssis of movement in unrestricted fundsis of movement in unrestricted fundss of movement in unrestricted funds of movement in unrestricted fundsf movement in unrestricted funds movement in unrestricted fundsovement in unrestricted fundsvement in unrestricted fundsement in unrestricted fundsment in unrestricted fundsent in unrestricted fundsnt in unrestricted fundst in unrestricted funds in unrestricted fundsn unrestricted funds unrestricted fundsnrestricted fundsrestricted fundsestricted fundsstricted fundstricted fundsricted fundsicted fundscted fundsted fundsed fundsd funds fundsundsndsdss
Current period
Balance at 1 As at 31
April 2020 Income Expenditure Transfers March 2021
£ £ £ £ £
General fund 2,435,552 6,077,104 (6,549,533) - 1,963,123
Pension reserve (6,217,000) - (426,000) (6,558,000) (13,201,000)
(3,781,448) 6,077,104 (6,975,533) (6,558,000) (11,237,877)
----- End of picture text -----

23 Analysis of movement in unrestricted fundsnalysis of movement in unrestricted fundsalysis of movement in unrestricted fundslysis of movement in unrestricted fundsysis of movement in unrestricted fundssis of movement in unrestricted fundsis of movement in unrestricted fundss of movement in unrestricted funds of movement in unrestricted fundsf movement in unrestricted funds movement in unrestricted fundsovement in unrestricted fundsvement in unrestricted fundsement in unrestricted fundsment in unrestricted fundsent in unrestricted fundsnt in unrestricted fundst in unrestricted funds in unrestricted fundsn unrestricted funds unrestricted fundsnrestricted fundsrestricted fundsestricted fundsstricted fundstricted fundsricted fundsicted fundscted fundsted fundsed fundsd funds fundsundsndsdss

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

Previous reporting period

----- Start of picture text -----
Balance at 1 As at 1 April
April 2019 Income Expenditure Transfers 2020
£ £ £ £ £
General fund 2,163,999 6,633,983 (6,362,430) - 2,435,552
Pension reserve (10,471,000) - (825,000) 5,079,000 (6,217,000)
(8,307,001) 6,633,983 (7,187,430) 5,079,000 (3,781,448)
----- End of picture text -----

Name of Description, nature and purposes of the fund General fund The free reserves after allowing for all designated funds Pension reserve Reserves allocated to the defined benefit pension fund liability

24 Analysis of group net assets between funds

Current reporting period

ngible fixed assets t current assets/(liabilities) ovision for pension liability tal e v i o u s r e p o r t i n g p e r i o d ngible fixed assets t current assets/(liabilities) ovision for pension liability tal	General fund £ 953,962 1,009,161 - 1,963,123 General fund £ 226,190 2,225,013 - 2,451,203	Designated funds £ - - (13,201,000) (13,201,000) Designated funds £ - - (6,217,000) 6,217,000	Restricted funds £ - 102,892 - 102,892 Restricted funds £ - - - -	Total £ 953,962 1,112,053 (13,201,000) (11,134,985) Total £ 226,190 2,225,013 (6,217,000) (3,765,797)

25 Operating lease commitments

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

n d a n d b u i l d i n g s : ss than one year e to five years er five years	2021 2020 £ £ 120,000 264,684 480,000 1,058,736 420,000 1,213,135 1,020,000 2,536,555 The group	2021 2020 £ £ 120,000 264,684 480,000 1,058,736 420,000 1,213,135 1,020,000 2,536,555 The charity

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

25 Operating lease commitments (Continued)

The 2021 figures for future minimum lease payments are stated net of the refurbishment contribution agreed with the landlord. In the accounts, the refurbishment contribution is included income. The annual rent before refurbishment contribution is £264,700. The lease expires on 22 October 2029.

26 Reconciliation of net movement in funds to net cash flow from operating activities

----- Start of picture text -----
2021 2020
£ £
Net income/(expenditure) for the year (811,188) (537,796)
Adjustments for:
Depreciation charge and disposals 181,292 92,591
Dividends, interest and rents from investments (6,855) (73,325)
Decrease/(increase) in stock (3,906) -
Decrease/(increase) in debtors 108,796 34,444
Increase/(decrease) in creditors 483,422 (282,272)
Pension scheme adjustments 425,999 825,000
Net cash provided by/(used in) operating activities 377,560 58,642
----- End of picture text -----

27 Retirement benefit scheme

Defined benefit scheme

Qualifying employees of Positive Steps participate in the Greater Manchester Pension Fund (‘the Fund’) administered by Tameside Metropolitan Borough Council, under the regulations governing the Local Government Pension Scheme (LGPS). The scheme is a defined benefit scheme. The fund was valued using the projected unit method. The purpose of the valuation was to determine the financial position of the fund and to recommend the contribution rate to be paid by TfGM and the other participating employers.

The market value of the Fund's assets at 31 March 2019 amounted to £23,844 million. The funding level of the Fund as measured using the actuarial method of valuation was 102% as at 31 March 2019.

A full actuarial valuation was carried out at 31 March 2019 by a qualified independent actuary. The principal long term assumptions used by the actuary at that date were:

Discount rate	3.6 % per annum
Inflation assumption	2.3 % per annum
Expected rate of salary increases	3.1 % per annum

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

27 Retirement benefit scheme (continued)

Basis for estimating assets and liabilities

Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels, rates of inflation and discount rates. The Local Government Pension Scheme liability has been estimated by Hymans Robertson LLP, an independent firm of actuaries. Positive Steps Oldham's share of pension fund assets is rolled forward, by the actuary, from the latest formal valuation date (31 March 2019). The roll forward amount is then adjusted for investment returns, the effective contributions paid into and estimated benefits paid from the fund by Positive Steps and its employees. As such this estimate may differ significantly from the actual assets held by the Pension Fund at 31 March 2021. The significant assumptions used by the actuary have been as below.

Key assumptions

											2021	2020
											%pa	%pa
Discount rate											2.1	2.3
Expected rate of			increase of		pensions in		payment				2.8	1.8
Expected rate of			salary increases								3.6	2.6
M o r t a l i t y a s s u m p t i o n s
											2021	2020
											years	years
A s s u m e d l i f e		e x p e c t a t i o n s		o n		r e t i r e m e n t		a t	a g e d	6 5 :
	Retiring today:
	- Males										20.5	20.5
	- Females										23.3	23.1
	Retiring in 20		years
	- Males										21.9	22
	- Females										25.3	25

Commutation

An allowance is included for future retirements to elect to take 55% of the maximum additional tax-free cash up to HMRC limits for pre-April 2008 service and 60% of the maximum tax-free cash for post-April 2008 service.

Sensitivity analysis

The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period and assumes for each change that the assumption analysed changes while all the other assumptions remain constant. The assumptions in longevity, for example, assume that life expectancy increases or decreases for men and women. In practice, this is unlikely to occur, and changes in some of the assumptions may be interrelated. The estimations in the sensitivity analysis have followed the accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The methods and types of assumptions used in preparing the sensitivity analysis below did not change from those used in the previous period.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

27 Retirement benefit scheme (continued)

Sensitivity analysis (continued)

----- Start of picture text -----
2020/ 21 2019/20
Approximate
Approximate % Approximate % increase to Approximate
increase to monetary Defined monetary
Defined Benefit amount Benefit amount
Changes in assumptions Obligation (£000) Obligation (£000)
0.5% decrease in real discount rate 13% 5,987,000 12% 4,173,000
0.5% increase in the salary increase
1% 636,000 1% 468,000
rate
0.5% increase in the pension
11% 5,224,000 11% 3,668,000
increase rate (cpi)
The principal demographic assumption is the longevity assumption (i.e. member life expectancy). For
sensitivity purposes, we estimate that a one year increase in life expectancy would approximately increase
the Employer’s Defined Benefit Obligation by around 3-5% (2020: 3-5%). In practice the actual cost of a
one year increase in life expectancy will depend on the structure of the revised assumption (i.e. if
improvements to survival rates predominantly apply at younger or older ages).
Impact on the accounts
2021 2020
£ £
The amounts charged or (credited) in the Statement of
Financial Activities are as follows:
Current service cost 830,000 1,078,000
Net interest on defined benefit liability 146,000 269,000
Past service cost - 3,000
976,000 1,350,000
Other recognised (gains) or losses:
Actuarial return on scheme assets (5,231,000) 4,706,000
Less: calculated interest element - -
(5,231,000) 4,706,000
Actuarial changes relating to obligations 11,789,000 (9,785,000)
Total cost/(income) 6,558,000 (5,079,000)
----- End of picture text -----

The principal demographic assumption is the longevity assumption (i.e. member life expectancy). For sensitivity purposes, we estimate that a one year increase in life expectancy would approximately increase the Employer’s Defined Benefit Obligation by around 3-5% (2020: 3-5%). In practice the actual cost of a one year increase in life expectancy will depend on the structure of the revised assumption (i.e. if improvements to survival rates predominantly apply at younger or older ages).

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Present value of funded retirement benefit obligatio 46,618,000 33,528,000 Fair value of plan assets (33,417,000) (27,311,000) Deficit in scheme 13,201,000 6,217,000

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

27 Retirement benefit scheme (continued)

Impact on the accounts (continued)

The increase in pension liabilities is included in the SOFA as follows:

	Other recognised losses/gains								(6,558,000)	5,079,000
	Current service cost								(830,000)	(1,078,000)
	Contributions paid by employer								550,000	519,000
	Net interest on defined benefit liability								(146,000)	(269,000)
	Past service cost								-	3,000
	(Increase)/decrease in liability								(6,984,000)	4,254,000
M o v e m e n t s i n t h e p r e s e n t v a l u e o f			d e f i n e d			b e n e f i t	o b l i g a t i o n s
	Liabilities brought forward								33,528,000	41,498,000
	Current service cost								830,000	1,078,000
	Past service cost								-	3,000
	Benefits paid								(466,000)	(484,000)
	Contributions from scheme members								160,000	169,000
	Remeasurements:
	Changes in financial	assumptions							11,921,000	(3,311,000)
	Changes in demographic assumptions								205,000	(991,000)
	Other experience								(337,000)	(5,483,000)
	Interest cost on defined benefit obligations								777,000	1,049,000
	Liabilities carried forward								46,618,000	33,528,000
The defined benefit obligations arising					from	the plan		are funded as follows:
	Wholly unfunded obligations								-	-
	Wholly funded obligations								46,618,000	33,528,000
									46,618,000	33,528,000
R e t i r e m e n t b e n e f i t s c h e m e ( c o n t i n u e d )
M o v e m e n t i n t h e f a i r v a l u e o f p l a n			a s s e t s
	Opening fair value of the scheme			assets					27,311,000	31,027,000
	Interest income on plan assets								631,000	780,000
	Contributions by employer								550,000	525,000
	Contributions by members								160,000	169,000
	Benefits paid								(466,000)	(484,000)

27 Retirement benefit scheme (continued)

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

Return on assets excluding amounts included in net nterest	5,231,000 33,417,000	(4,706,000) 27,311,000

The major categories of plan assets as a percentage of total plan assets are as follows:

Equities	% % 72 69
Bonds	12 15
Property	7 7
Cash	9 9

The analysis of the scheme assets at the reporting date was as follows:

Equities Bonds Property Cash	£ 24,060,240 4,010,040 2,339,190 3,007,530 33,417,000	£ 18,844,590 4,096,650 1,911,770 2,457,990 27,311,000

Review of the 2021 results

Assets

In the year ending 31 March 2021, investment returns have been significantly greater than expected (compared to last year's accounting discount rate assumption). As such, this has resulted in a £5,231,000 increase in the fair value of the scheme assets.

Obligations

The remeasurements in the obligations rollforward are split into three separate parts to differentiate between 'changes in financial assumptions', 'changes in demographic assumptions' and 'other experience'.

Changes in financial assumptions

As at 31st March 2021, the real discount rate has fallen compared to 31st March 2020. This is due to the combination of a lower discount rate assumption and a significantly higher CPI assumption. This has resulted in an increase to the liabilities of £11,921,000 .

27 Retirement benefit scheme (continued) Review of the 2021 results- Obligations (continued)

Changes in demographic assumptions

Changes in other experience

Using a more up-to-date longevity assumption as at 31st March 2021 has resulted in an increase of the liability of £205,000.

The 'other experience' item captures the positive impact of applying the actual Pensions Increases Order for April 2021 of 0.5%, as it is lower than the pension increase rate assumption built

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

Impact of Covid-19

The main impacts of the Covid-19 pandemic, and subsequent lockdowns, on the FRS102 accounting figures can be summarised as follows:

Asset returns and values have followed market movements prompted by the pandemic and lockdowns, among other factors, which has therefore impacted the asset share value;
Bond yields and inflation expectations have also followed market movements, which will therefore affect the obligations value;
Life expectancy assumptions have not been updated as the data is not yet available to make an evidence based assessment on the pandemic's impact on longer term expectations.

Future impact

The projected charge to the SOFA for the year ending 31 March 2022 is likely to significantly increase compared to the charge for this year, as a result of the significantly lower real discount rate as at 31st March 2021.

The objectives of the scheme are to keep employers’ contributions at as constant a rate as possible. TfGM has agreed a strategy with the scheme’s actuary to achieve a funding level of 100%. Funding levels are monitored on an annual basis. As at 31 March 2019 it was determined that Positive Steps were to pay 22.4% contributions per annum for the foreseeable future, a marked increase on the previous contribution. The next triennial valuation is due to be completed as at 31 March 2022.

Positive Steps anticipates paying £548,000 in expected employer's contributions to the scheme in 2021/22.

Key differences between funding and accounting valuations

The purpose of the formal funding valuation, which is carried out every three years, is to assess the ongoing financial position of the fund and to determine the cash contribution rates at which the employing bodies participating in the fund should contribute in the future. The aim of the funding valuation is to ensure that the existing assets alongside future expected investment returns and contributions will be sufficient to meet future benefit payments from the fund.

In terms of the above cash contributions that need to be paid into the fund, an employer's accounting valuation position has no effect. Under FRS102, the purpose is to facilitate consistent comparison of pension positions between employers.

Importantly, as the method and assumptions underlying the funding and accounting calculations are different, the accounting calculations can produce significantly different results from the formal funding valuation calculations.

28 Prior period adjustment

----- Start of picture text -----
Restricted
Unrestricted funds funds Total
£ £ £
Funds brought forward as previously stated 2,308,199 - 2,308,199
FRS102 (SORP) income recognition
----- End of picture text -----

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

Positive Steps Oldham

Notes to the accounts for the year ended 31 March 2021 (continued)

Early Help: Income previously incorrectly deferred Subcontractor costs - missing accrual Children in Need - deferred income correction C o r r e c t i o n s t o a c c r u a l s Holiday pay accrual Funds carried forward as restated	250,270 (67,869) - (55,048) 2,435,552	- - 15,651 - 15,651	250,270 (67,869) 15,651 (55,048) 2,451,203

FRS102 (SORP) income recognition

Prior period errors were noted in relation to the Early Help and Children in Need income from charitable activities. Errors resulted due to incorrect application of the FRS102 (SORP) income recognition policy.

Corrections to accruals

Prior period error noted in respect of accruals due to the lack of a holiday pay accrual as at 31st March 2020 of £55,048 which has been deemed a material error and hence a prior period adjustment posted.

Doc ID: 3523c9f6519c0013331a0296e801447a35a0b488

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

CONTENTS

REPORT OF THE TRUSTEES/DIRECTORS

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Appointment of trustees

Trustees’ induction and training

Organisation

Remuneration of key management personnel

Related parties

Subsidiaries

OBJECTIVES AND ACTIVITIES

Young People’s Services

Careers Guidance and Support

Youth Justice and Prevention

Families, Health and Wellbeing

Corporate Services

Corporate Support

PSO Trading Ltd

ACHIEVEMENTS AND PERFORMANCE

EARLY HELP SERVICES

INTEGRATED SEXUAL HEALTH & SUBSTANCE MISUSE SERVICES

CAREERS INFORMATION, ADVICE & GUIDANCE

YOUTH JUSTICE

VOLUNTEERING

YOUNG CARERS SERVICE

MISSING FROM HOME SERVICE

STRATEGIC REPORT INCLUDING FINANCIAL REVIEW

Reserves Policy

Environmental Responsibility

Principal Risks and Uncertainties

Trustees' responsibilities in relation to the financial statements

Statement as to disclosure to our auditors

Compliance with accounting standards

Auditors

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Independent auditor’s report to the members of Positive Steps Oldham

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

Capability of the audit in detecting irregularities, including fraud

Independent auditor’s report to the members of Positive Steps Oldham

Use of the audit report

Positive Steps Oldham

Positive Steps Oldham Company number 2563094

Balance Sheets

as at 31 March 2021

Consolidated Statement of Cash Flows

for the year ending 31 March 2021

Notes to the accounts for the year ended 31 March 2021

1 Accounting policies

a Basis of preparation

b Group financial statements

c Preparation of the accounts on a going concern basis

d Key judgments and estimates Defined benefit pension scheme

Notes to the accounts for the year ended 31 March 2021 (continued)

1 Accounting policies (continued)

Defined benefit pension scheme (continued)

e Income

f Donated services and facilities

g Interest receivable

i Expenditure and irrecoverable VAT

j Allocation of support costs

k Operating leases

l Tangible fixed assets

1 Accounting policies (continued)

m Debtors

n Cash at bank and in hand

o Creditors and provisions

p Financial instruments

q Pensions

Defined contribution scheme

Defined benefit scheme

2 Legal status of the charity

Positive Steps Oldham