OpenCharities

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

2025-03-31-accounts

COMPANY REGISTRATION NUMBER: 3286672 CHARITY REGISTRATION NUMBER: 1065423

Progress to Change

Company Limited by Guarantee

Financial Statements

For the year ended 31 March 2025

Progress to Change

Company Limited by Guarantee

Financial Statements

Year ended 31 March 2025

Page
Trustees' annual report (incorporating the director's report) 11
Independent auditor's report to the members 89
Statement of financial activities (including income and expenditure account) 1010
Statement of financial position 1111
Statement of cash flows 1212
Notes to the financial statements 1313

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report)

Year ended 31 March 2025

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2025.

Reference and administrative details
Registered charity name Progress to Change
Charity registration number 1065423
Company registration number 3286672
Principal office and registered 63 Clarendon Road
office Leeds
LS2 9NZ
The trustees Mrs D Favre
Mrs J Dilks
Prof O Matthias
Mrs C Cochrane
Prof A W M Hay
Mrs S Mondon
Mr R Brook
Key management personnel Chief Executive - Mrs C Maguire
Finance Manager – Mrs R Kyle
Ripon House Hostel Manager – Miss Liz Sunley
Cardigan House Hostel Manager - Mr B Spink
Training and Project Manager - Mrs E Falk (resigned 18 March 2025)
Company secretary Mrs T Gradys
Auditor Gibson Booth
Chartered Accountants & Statutory Auditors
New Court
Abbey Road North
Shepley
Huddersfield
HD8 8BJ
Bankers National Westminster Bank plc
Leeds City Office Branch
8 Park Row
Leeds
LS1 5HD
Solicitors Wrigleys Solicitors LLP
19 Cookridge Street
Leeds
LS2 3AG
Investment managers CCLA
Senator House
85 Queen Victoria Street
London
EC4V 4ET

- 1 -

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2025

Structure, governance and management Chairman's report

This has been a year of consolidation for Progress to Change with news of the award of a new contract for 5 years from April 2026 and the opportunity for the charity’s management team to ‘bed’ in.

When I reported last year our new CEO, Clare McGuire, had only been in post for a few months and the (then) new manager of Ripon House Elizabeth Sunley had only recently been appointed. Barely into her role, Clare was faced with the enormous task of preparing the charity’s bid to the Ministry of Justice (MoJ) for a contract to keep both Ripon and Cardigan functioning as Independent Approved Premises (IAPs) for 5 years. In June of this year, we learned that the bid had been successful, and with it secure funding for the period the bid covered. The charity owes a debt of gratitude to Clare for the work she put into the bid, which has helped secure the employment of nearly 40 people until the early 2030’s.

Others also contributed to the bid and amongst these we must acknowledge our finance manager Rachel Kyle for all the costings which enabled our bid to be well below the MoJ’s threshold of £ 70K per bed (a figure which some other IAPs struggled to meet) but which will allow PtC to develop and provide the experience for residents that we want to offer. Our two managers, Elizabeth Sunley and Ben Spink, provided much detail about Ripon and Cardigan houses to allow Clare to complete contract requirements about the actual premises. To these three stalwarts, and the trustees who helped with editorial requests on the contract text, I wish to say, ‘Thank you!’ on behalf of all the trustees.

The one significant departure in the last year was Emma Falk who acted as an events manager having previously managed Ripon House. Emma was a loss to the charity as she knew it so well, was respected, and liked for how she approached her role, part of which was enabling both our premises to achieve the ‘Enabling Environment (EE) awards from the Royal College of Psychiatrists. The EE status is now something the MoJ look for when considering contracts and Emma left us well placed for our contract bid. We wish Emma well in her new job.

I have had the privilege of chairing the trustees for almost 3 years, having been a trustee for eight, and the longer I am associated with PtC the more proud I am of the work it does to instil, and reinforce, the charity’s ethos which is about housing residents on release from prison, ensuring their accommodation is welcoming and supportive, that significant effort is made to help with their rehabilitation, and that premises also function to ensure protection of both residents and wider public. This is no small task, and all our staff manage this work with rigour, and a great deal of compassion, and trustees are grateful for all their work.

The charity’s work provides a vital public function in helping ex-offenders prepare for living in the wider community again. The many letters of thanks we receive from previous residents attests to how well they feel they were treated and the preparation they received for moving on. However, given the history of some residents it is not at all easy to broadcast what we do but over the last year we have been able to ‘showcase’ our activities in very successful ways. Last year we were the first AP to be inspected, on a trial basis, by the team preparing the criteria to be used for formal MoJ inspection of approved premises, a system which is now operational across the country. We scored very highly in that trial inspection, just two points off an ‘Excellent’ grade. Given that the inspection team had never previously even given a ‘Good’ grade for prisons and other establishments inspected, we were pleased with the outcome, but some of our staff felt the inspectors were a trifle miserly in their grading.

This year we also hosted a visit to Ripon House by the Lord Mayor of Leeds Abigail Marshall Katung, and a previous city Lord Mayor Jane Dowson, both of whom were extremely complimentary about our work and have offered to help in whatever way they can. In September we will welcome the current Lord Mayor as well as the Lord Lieutenant of West Yorkshire. We also held a very successful Open Day attended by some 60 visitors and plans are in place for another in September.

The year has witnessed some difficulties for staff not least the untimely death of one of our case managers Angela Marker. Angela’s death prompted the charity to look at some of our support systems and we have now implemented a ‘Death in Service’ insurance scheme for all staff, a welcome outcome, and an indirect tribute to Angela and her memory.

I want to conclude this report with the wonderful news that our former chair of trustees, current chair of the National Approved Premises Association as well as a current trustee, Jill Dilks, was awarded the Order of the British Empire (OBE) for services to approved premises, in the recent King’s Birthday Honours. This is a richly deserved accolade for Jill, and for her work over so many years, and all trustees wish to congratulate her on this recognition.

Prof A W M Hay Chairman

- 2 -

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2025

Governing Document

Progress to Change (formerly known as the Ripon and Leeds Diocesan Council for Social Concern) is a Company Limited by Guarantee and incorporates the work of the two Approved Premises - Ripon House and Cardigan House - and their related assets and liabilities. Our registered charity number is 1065423. The charity has its office at 63 Clarendon Road, Leeds, LS2 9NZ.

Social Concern was incorporated on 3 December 1996. Following a special resolution, the company was incorporated under the revised name of Ripon & Leeds Diocesan Council for Social Concern with effect from 27 December 2000.

As a result of the creation of the Diocese of Leeds in 2014, and following a special resolution, the company was incorporated under the revised name of Progress to Change with effect from 15 August 2015.

During 2015, the Trustees further reviewed and updated the Articles of Association of the Company. These were amended by a special resolution dated 22 September 2015.

Recruitment and appointment of Trustees

The Trustees of Progress to Change and the Board members are the same people. Under the requirements of the Articles of Association Trustees are appointed for a period of four years, after which they can be re-appointed for one further term of four years. Five are appointed by the Bishop of Leeds and four are appointed by the Board of Trustees.

Members have a wide range of backgrounds and skills, bringing expertise in business, finance, education, the legal system, social work and the Church.

To ensure a broad skills mix, Trustees are asked to provide a CV and list of skills on their application form. A skills inventory is maintained and, in the event of particular skills being lost due to retirement, efforts are made to recruit individuals with a similar skills base. Progress to Change this year has created an application pack for interested parties.

Organisational structure

The Board of Trustees, of up to nine members, has overall responsibility for the management, strategic direction, and policy of the Charity and meet nine times a year. Most meetings of the Board, including some sub-group meetings, are held via the Zoom platform to accommodate the needs of trustees. However, two meeting per year are held on a face-to-face basis at Ripon House. APs inspection visits are undertaken in person by a Trustee.

Day-to-day management of the two Approved Premises (AP's) is delegated to the Chief Executive Officer and Operational Managers. The Managers have responsibility for operational management of the AP's, individual supervision of staff and ensuring that the staff teams continue to develop skills and working practices in line with best practice.

Trustee induction and training

New Board members are provided with a newly produced induction pack. Additionally, gaps in knowledge are identified by individual members and visits and training are organized to enable members to have sufficient information about the work of the charity to contribute effectively.

Remuneration Policy

Introduction: Progress to Change is committed to paying its employees fairly so that the best people for the job are attracted and retained.

Employee Salaries: The pay and benefits of all employees are reviewed on a regular basis and, where appropriate, are benchmarked against the salary scales used within the Probation Service for equivalent roles.

Payments to Trustees: All trustees give their time freely and do not receive any pay or recompense other than for reasonable out of pocket expenses.

Finance Committee: The Finance Committee reviews the remuneration of all employees and makes recommendations to the Board of Trustees for implementation.

The Finance Committee comprises of three Trustees, one of whom acts as Chair.

The Finance Committee makes salary recommendations to the Board for all employees taking into consideration:

Affordability

Any proposals (supported by relevant information) for changes in remuneration for specific posts put forward by the Chief Executive.

Recommendations of the Remuneration Committee must be ratified by the Board of Trustees.

- 3 -

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2025

Grant making policy

In the recent past the charity has made the occasional small grant to local organisations in furtherance of the charity's objectives.

Progress to Change is now encouraging any individual, or small community-based group, to apply for a small grant in supporting a planned activity, in accordance with our charitable aims, which will enhance the quality of life of those taking part. Applications from individuals can be submitted for grants of up to £1,000, and community groups or organisations up to £2,000.

Individuals and groups applying must be able to show that the activity will improve the life opportunities for those who have been affected by crime.

Organisations may only apply for a grant once in any financial year.

Risk management

The Trustees maintain a Risk Register of the potential risks which the Charity is exposed to and has put in place steps to mitigate these risks. The risks are grouped under three main headings - a) Governance Risks, b) Financial Risks, c) Operational Risks. For each risk existing control procedures have been identified along with proposed improvements in controls. On an ongoing basis as new risks are identified or the nature or significance of perceived risks change the Risk Register has been updated. The last update was in May 2024. This involved the identification of any changes to the potential risks and progress on the implementation of identified actions to mitigate risks. A further review will be undertaken in 2025.

As explained under 'Objectives and activities', the principal activity of the two Approved Premises is to provide enhanced supervision in a residential setting, including rehabilitation, risk management, and monitoring. The majority of offenders are on license following release from custodial sentences. There are particular risks associated with this work. The Charity has a team of appropriately qualified key management personnel who undertake regular training as well as working closely with the Ministry of Justice and the Probation Service.

Robust Risk Management procedures are in place in all aspects of the Charity's day-to-day activities in this regard. Policies and procedures are in place to ensure compliance with health and safety regulations, food hygiene regulations and fire regulations.

The risk management systems and procedures are continually reviewed by the key management team. All the identified risks are managed by regular training and awareness for staff working on day-to-day operations and by ensuring accreditation is up to date and having robust policies and procedures in place.

Related parties

In so far as it is complementary to the Charity's objects, the Charity is guided by local and national policies. The AP's work in association with the regional Probation Service, Community Rehabilitation Companies, local GP practices, local housing organisations, alcohol and drugs services, and other third sector organisations.

Nationally, the AP's work collaboratively with their funders, the Ministry of Justice, and Her Majesty's Prison & Probation Service. We are also a member of the National Approved Premises Association (NAPA), ensuring that national standards are constantly attained.

The Trustees thank all of our partner agencies for their commitment to and assistance with our work.

Objectives and activities

The charity's purposes, as set out in the objects contained in the company's Articles of Association, are:

to maintain the premises known as Ripon House and Cardigan House as Approved Premises within the meaning of the Offender Management Act 2007;

to support and further all or any charitable activities carried out in connection with the Church of England in the Diocese of Leeds and in particular;

the rehabilitation of offenders and in particular those addicted to drugs or alcohol or otherwise in need of help; the relief of distress or suffering arising from offending behaviour.

These objects were last reviewed and updated in 2024. The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

The focus of our work

Progress to Change continue to provide enhanced supervision for people on Probation, who are on post custody Licence. Both premises work with those that present a high risk of harm to the public. Ripon House continues to also take women who present a medium risk of harm to the public but present with a complex problems/need. The work undertaken at both premises is both needs and risk led and pivotal to the risk management plan over seen by the Probation Practitioner. Individuals are subject, to key work sessions, curfews, and additional monitoring, including, for some the requirement to wear a tag, these may monitor an individual’s precise whereabouts or alcohol consumption. Exact and tailored Licence conditions are drawn up by the Probation Practitioner, with some input from the Approved Premises, in terms of requesting specific requirements linked to their stay at the

- 4 -

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2025

AP.

Achievements and performance

Performance remains a key driver of contract delivery. Both Ripon House and Cardigan House successfully met all contractual performance targets in 2024/25 and continue to perform strongly into 2025/26.

Purposeful activity and resident engagement continue to be a central feature of our work. Engagement levels remain high with our residents participating in a wide range of activities run by both external facilitators and our own in-house sessions. These include, physical, emotional and wellbeing sessions, creative workshops such as music and art as well as rehabilitation and thinking skills, money management, drug and alcohol interventions.

Contract with the MOJ

I am proud to confirm that following a competitive tender process, Progress to Change has been awarded the contract to continue running both our Independent Approved Premises until March 2030, with the potential for a one-year extension to March 2031. This significant achievement is testament to the strength of our bid, the hard work of our team, and the positive impact our services have.

This long-term commitment from the Ministry of Justice provides vital stability to the organisation and allows us to focus on further developing our services, staff, and partnerships over the coming years.

Enabling Environments

Both Approved Premises continue to hold full Enabling Environments (EE). Cardigan House will submit an interim report in October 26. And Ripon House has a full assessment to complete by January 2026. As well as being part of our MOJ contract obligations, the awards recognise our commitment to providing psychologically informed and relationally safe environments.

Partnerships

As an AP, working with other local partners remains very high on the agenda and is key to providing residents with a positive impactful stay. The incoming CEO, C Maguire, is beginning to make links with local community organisations including faith groups and education providers, to support both residents and our staff team. One such partnership is the DWP Social Justice Team who provide drop-in sessions at the APs to support residents who are both vulnerable with multiple barriers. They offer support with benefit advice and job centre liaison. Progress to Change has also joined the Mindful Employer Network to provide additional support to all staff around emotional wellbeing.

Staffing

Our staffing has remained strong and stable this year, with new team members bringing fresh energy and skills. Across Support, Case Management, Administration, and Relief roles, our teams continue to deliver consistent, high-quality support, and we are grateful for the dedication and flexibility that make this possible.

Financial review

Our Ministry of Justice contract has been extended until March 2026 after which a new contract over a 4-year, possibly 5- year, period will be in place from 1 April 2026. We had to submit a bid for this new contract and our new CEO spent a considerable amount of time preparing the bid. The outcome of bids was announced in June 2025; we were successful. Income for the period from April 2024 - March 2025 was based on the income for 2024 plus an increase for CPI.

An annual finance budget for each AP is submitted to the Board of Trustees in March. Budget reviews take place six times a year at Management Board meetings. Both AP’s have continued to manage their finances in a prudent and resourceful way.

Income for the year including investment income increased from £2,484,550 in 2024 to £2,537,670 in 2025. Further information is provided in notes 5, 6 and 7.

Expenditure during the year decreased from £2,288,156 in 2024 to £2,281,354 in 2025. Further information is provided in notes 8 and 9.

The Charity's investment portfolio increased in value during the year to £2,548,436 (2024: £2,309,276).

The net losses on investments during the year were £60,839 (2024: gains of £241,728).

As set out in note 19 'Pensions and other post-retirement benefits' following an actuarial review a loss of £155,000 (2024: £810,000) has been reflected in this year's Statement of Financial Activities.

The net movement in funds for 2025 was a surplus of £924,073 (2024: deficit of £371,878).

a) Principal Funding Sources

The Ministry of Justice is the principal funder of both Cardigan House and Ripon House. Detailed information on this and the Charity's finances are set out in the Financial Accounts at the end of this Report. The Charity does not undertake any additional fundraising activities.

- 5 -

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2025

b) Reserves Policy

In considering this the Trustees have had regard to the current situation in the UK; the high level of inflation, the high level of interest rates and our contract with the Ministry of Justice.

There remain uncertainties regarding the Charity’s funding by the MoJ. It is for the above reasons and the level of uncertainty that the charity has again considered it both prudent and necessary to maintain Designated Reserves as set out in the Designated Reserves note.

The Trustees have established a policy whereby the funds of the Approved Premises not committed or invested in tangible fixed assets (“the free reserves”) are maintained at a level which the Board considers sufficient to maintain the continuing activities of the Charity on the basis of the funding arrangements with the Ministry of Justice.

Why reserves are needed

As part of its Risk Assessment, the Board has established that the Charity needs to maintain short-term and long-term reserves to reduce the impact of risks from both internal and external factors.

As owner of the two properties Cardigan House and Ripon House, the Board needs to hold sufficient reserves to cover major building works which are not funded by the MoJ.

The two Approved Premises need to hold short-term reserves to meet costs of unplanned events and planned internal maintenance of the buildings.

The Board also has overall responsibility for the staff employed and, should income be disrupted the Charity need to hold sufficient reserves to meet ongoing costs and commitments until further funding is secured.

Reserves are also required to meet the WYPF defined benefit liabilities given that there is no guarantee that the Ministry of Justice will continue to provide funding.

Level of Reserves

Given the stated background as to why reserves are needed, the trustees are of the view that the level of unrestricted income reserves of £2,709,816 are at an appropriate level to enable the charity to meet its objectives and continue as a Going Concern.

Investment of reserves

The reserves of the Charity are held in the freehold property, investments managed by CCLA, and short-term bank accounts.

With regard to risk, as the balance of the Central Reserves Fund alters, investment advice will be sought by the Trustees when necessary.

c) Investment Policy

The investment policy's objectives are:

Effective management of the Charity's assets that are not required for imminent use.

To protect the reserves of the Charity and maximise investment income.

The Investment Objectives are:

Produce the best financial return within an acceptable level of risk.

Produce a total return of at least RPI plus 3% over the long term.

The policy has regard to areas of Risk, Liquidity, Time Horizon, the charity's Ethical Policy, Management, Reporting and Monitoring.

The policy is approved by the Trustees and is reviewed annually.

Investment of reserves

The Charity continues to monitor its reserves. As the charity is solely responsible for the pension funds of previous and existing staff on the WYPF, and for those with the People's Pension, it may have to look to its reserves to meet all payments. Some small projects that will benefit the residents of both Approved Premises may also be considered.

The Charity's contract with the MoJ continues until March 2026. After that the charity starts a new 4(+1) year contract with the MOJ from April 2026.

The Charity will continue to operate at the highest level in carrying out its activities for the benefit of its residents.

The Charity continues to investigate future outreach work with residents once they have left the Approved Premises.

Plans for future periods

The future of the organisation is very positive. The aim was to win a contract which provides the organisation and its staff with stability for a further 5 years post 2026. This is now guaranteed by the new contract arising from the tender submission. Staff training is high on the agenda for the coming 12 months, exploring options to provide a more formal qualification for those who join at entry level roles. Plans are also taking shape in terms of working towards having a net zero ambition for both APs in the coming years.

- 6 -

Progress to Change

Company Limited by Guarantee

Trustees' Annual Report (Incorporating the Director's Report) (continued)

Year ended 31 March 2025

Post balance sheet events

A good deal of time was spent by the CEO, senior management, and trustees preparing a bid for a contract for 4 (+1) years of funding from April 2026; a bid which was submitted to the Ministry of Justice in August 2024 and awarded in June 2025.

Trustees' responsibilities statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

A resolution to reappoint Gibson Booth as auditors for the ensuing year will be proposed at the forthcoming annual general meeting.

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:

Prof A W M Hay Trustee

- 7 -

Progress to Change

Company Limited by Guarantee

Independent Auditor's Report to the Members of Progress to Change

Year ended 31 March 2025

Opinion

We have audited the financial statements of Progress to Change (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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 charity’s affairs as at 31 March 2025, and of its incoming resources and application

of resources, including its income and expenditure, for the year then ended;

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

have been prepared in accordance with the requirements of the Charities Act 2011.

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or

the charity has not kept adequate accounting records; or

the financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

- 8 -

Progress to Change

Company Limited by Guarantee

Independent Auditor's Report to the Members of Progress to Change (continued)

Year ended 31 March 2025

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a 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.

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.

Based on our understanding of the charity and the charity sector, we identified that the principal risks of non-compliance with law and regulations related to the Charities Act 2011, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and the audit procedures performed included:

discussions with management including consideration of known or suspected instances of non-compliance with laws, regulation and fraud;

challenging assumptions and judgements made by management in their significant accounting estimates; testing of non-purchase and sales ledger bank transactions; testing of journals;

testing of purchase invoice authorisations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 the auditor's report.

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Gibson Booth Chartered Accountants & Statutory Auditors New Court Abbey Road North Shepley Huddersfield HD8 8BJ

Gibson Booth is eligible to act as auditor in terms of Section 1212 of the companies Act 2006.

- 9 -

Progress to Change

Company Limited by Guarantee

Statement of Financial Activities (including income and expenditure account)

Year ended 31 March 2025

2025 2024 2024
Unrestricted
funds
Total funds
Total funds
Note £ £ £
Income and endowments
Donations and legacies 5 250
Charitable activities 6 2,528,626 2,528,626 2,475,434
Investment income 7 9,044 9,044 8,866
----------------------------------
----------------------------------
----------------------------------
Total income 2,537,670 2,537,670 2,484,550
========================
========================
========================
========== ========== ==========
Expenditure
Expenditure on charitable activities 8,9 (2,281,354) (2,281,354) (2,288,156)
----------------------------------
----------------------------------
----------------------------------
Total expenditure (2,281,354) (2,281,354) (2,288,156)
========================
========================
========================
========== ========== ==========
Net (losses)/gains on investments 11 (60,839) (60,839) 241,728
----------------------------------
----------------------------------
----------------------------------
Net income 195,477 195,477 438,122
========================
========================
========================
========== ========== ==========
Other recognised gains and losses
Gains from revaluation of fixed assets 883,596 883,596
Actuarial losses on defined benefit pension schemes (155,000) (155,000) (810,000)
----------------------------------
----------------------------------
----------------------------------
Net movement in funds 924,073 924,073 (371,878)
Reconciliation of funds
Total funds brought forward 4,613,904 4,613,904 4,985,782
----------------------------------
----------------------------------
----------------------------------
Total funds carried forward 5,537,977 5,537,977 4,613,904
========================
========================
========================
========== ========== ==========

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

The notes on page1323132313 form part of these financial statements.

- 10 -

Progress to Change

Company Limited by Guarantee

Statement of Financial Position

31 March 2025

2025 2024
Note £ £
Fixed assets
Tangible fixed assets 15 2,828,161 1,955,540
Investments 16 2,548,436 2,309,276
----------------------------------
----------------------------------
5,376,597 4,264,816
Current assets
Debtors 17 80,212 87,933
Cash at bank and in hand 252,513 414,954
-------------------------- --------------------------
332,725 502,887
Creditors: amounts falling due within one year 18 (171,345) (153,799)
-------------------------- --------------------------
Net current assets 161,380 349,088
----------------------------------
----------------------------------
Total assets less current liabilities 5,537,977 4,613,904
----------------------------------
----------------------------------
Net assets 5,537,977 4,613,904
========================
========================
========== ==========
Funds of the charity
Unrestricted funds:
Revaluation reserve 2,699,709 1,816,113
Other unrestricted income funds 2,838,268 2,797,791
----------------------------------
----------------------------------
Total unrestricted funds 5,537,977 4,613,904
----------------------------------
----------------------------------
Total charity funds 20 5,537,977 4,613,904
========================
========================
========== ==========

For the year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies but as this company is a charity, it is subject to audit under the Charities Act 2011.

Trustees' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:

Prof A W M Hay Trustee

The notes on page1323132313 form part of these financial statements.

- 11 -

Progress to Change

Company Limited by Guarantee

Statement of Cash Flows

Year ended 31 March 2025

2025 2024
£ £
Cash flows from operating activities
Net income 195,477 438,122
Adjustments for:
Depreciation of tangible fixed assets 35,106 40,342
Net (gains)/losses on investments 60,839 (241,728)
Dividends, interest and rents from investments (9,044) (8,866)
Other interest receivable and similar income (6,000) (49,000)
Defined benefit pension plan employer contributions (201,000) (233,000)
Accrued (income)/expenses (19,347) 23,505
Service cost of defined benefit pension scheme 52,000 73,000
Changes in:
Trade and other debtors 7,721 (13,700)
Trade and other creditors 36,895 67,085
-------------------------- --------------------------
Cash generated from operations 152,647 95,760
-------------------------- ----------------------
Net cash from operating activities 152,647 95,760
========================
==
======================
Cash flows from investing activities
Dividends, interest and rents from investments 9,044 8,866
Purchase of tangible assets (24,132) (9,998)
Purchases of other investments (300,000)
-------------------------- ----------------------
Net cash used in investing activities (315,088) (1,132)
========================
==
======================
Net (decrease)/increase in cash and cash equivalents (162,441) 94,628
Cash and cash equivalents at beginning of year 414,954 320,326
-------------------------- --------------------------
Cash and cash equivalents at end of year 252,513 414,954
========================
========================
== ==

The notes on page1323132313 form part of these financial statements.

- 12 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements

Year ended 31 March 2025

1. General information

The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 63 Clarendon Road, Leeds, LS2 9NZ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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 issued in October 2019 (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006, Charities Act 2011 and UK Generally Accepted Accounting Practice.

3. Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, except for investments which are included at fair value and the revaluation of certain fixed assets. The financial statements are rounded to the nearest £ and prepared in sterling, which is the functional currency of the entity. The significant accounting policies consistently applied in the preparation of these financial statements are set out below.

Going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Depreciation has not been charged on freehold buildings as it is the charity's policy to maintain the properties in a continual state of sound repair. Due consideration has been given to any necessary requirement to impair these assets.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Allocation of overheads and support costs by activity

The charity allocates its expenditure and overheads to either direct costs or support costs. Costs incurred which are in line with the charity's objective's are allocated to direct costs. Costs incurred for the administration of the charity are allocated to support costs.

Property revaluation

The properties within land and buildings are valued under the revaluation model and are held at market value. The valuation is re-assessed annually, and where the trustees judge that the property valuations have not materially changed, no subsequent revaluation is obtained. The valuation is amended when necessary to reflect current estimates.

- 13 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

3. Accounting policies (continued)

Defined benefit pension scheme

The charity has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation are determined using actuarial valuations which make assumptions about a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. These factors are estimated in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 19 for the disclosures relating to the defined benefit pension scheme.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates. See note 15 for the carrying amount of the tangible assets, and the tangible fixed assets policy below for the depreciation rates used for each class of assets.

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on the general fund and designated funds. They are available for use at the discretion of the directors in the furtherance of the company's general charitable objectives.

Restricted funds are created when grants and donations are made for a particular purpose, the use of which is restricted to that purpose.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Income from donations is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes, but not expended during the period, is shown in the relevant funds in the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Ministry of justice grants are recognised in full in the year which they are receivable and any unspent amount is reflected as a balance in the unrestricted general fund. Capital grants are recognised when receivable and are deferred over the life of the asset on which they are expended.

Resources expended

Allocation of overhead and support costs

Overhead and support costs have been allocated between charitable activity and governance based on the time spent by employees working in the two areas concerned and the actual cost incurred.

Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees plus an apportionment of wages, overheads and support costs.

Irrecoverable VAT

All expenditure is stated inclusive of irrecoverable VAT.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

- 14 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

3. Accounting policies (continued)

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Freehold buildings are not depreciated. It is the charity's policy to maintain the properties in a continual state of sound repair. Accordingly, the trustees consider that the life of the properties is so long and the residual value, based on prices prevailing at the time of acquisition, is so high that any depreciation would be insignificant.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures and fittings - 25% straight line
Computer equipment - 25% straight line

Investments

Listed investments are measured at fair value with changes in fair value being recognised in the Statement of Financial Activity.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Where investments in shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.

4. Company limited by guarantee

The charitable company has nine members. If the charity is dissolved, each member promises to remain a member or within twelve months afterwards, to pay up to £10 towards the cost of dissolution and the liabilities of the charity while the contributor was a member.

5. Donations and legacies

Unrestricted Total Funds Total Funds Unrestricted Unrestricted Total Funds Total Funds
Funds 2025 Funds 2024
£ £ £ £
Donations 250 250
=========== =========== =========== ===========
6. Charitable activities
Unrestricted Total Funds Unrestricted Total Funds
Funds 2025 Funds 2024
£ £ £ £
Ministry of Justice grants 2,470,245 2,470,245 2,375,235 2,375,235
Income from residents 52,014 52,014 50,934 50,934
Other income 6,367 6,367 49,265 49,265
---------------------------------- ---------------------------------- ---------------------------------- ----------------------------------
2,528,626 2,528,626 2,475,434 2,475,434
======================== ======================== ======================== ========================
========== ========== ========== ==========

- 15 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

7. Investment income

Unrestricted
Total Funds
Unrestricted
Total Funds
Unrestricted
Total Funds
Unrestricted
Total Funds
Unrestricted
Total Funds
Unrestricted
Total Funds
Unrestricted
Total Funds
Unrestricted
Total Funds
Funds 2025 Funds 2024
£ £ £ £
Investment income 9,044 9,044 8,866 8,866
===================
===================
===================
===================
8. Expenditure on charitable activities by fund type
Unrestricted
Total Funds
Unrestricted
Total Funds
Funds 2025 Funds 2024
£ £ £ £
Staff costs 1,708,195 1,708,195 1,704,094 1,704,094
Premises costs 266,728 266,728 300,888 300,888
Supplies and services costs 120,276 120,276 97,096 97,096
Establishment costs 173,624 173,624 173,272 173,272
Grants payable 1,500 1,500
Support costs 12,531 12,531 11,306 11,306
----------------------------------
----------------------------------
----------------------------------
----------------------------------
2,281,354 2,281,354 2,288,156 2,288,156
========================
========================
========================
========================
========== ========== ========== ==========

9. Expenditure on charitable activities by activity type

Activities
undertaken Total funds Total fund
directly Support costs 2025 2024
£ £ £ £
Staff costs 1,708,195 1,708,195 1,704,094
Premises costs 266,728 266,728 300,888
Supplies and services costs 120,276 120,276 97,096
Establishment costs 173,624 173,624 173,272
Grants payable 1,500
Governance costs 12,531 12,531 11,306
---------------------------------- ---------------------- ---------------------------------- ----------------------------------
2,268,823 12,531 2,281,354 2,288,156
======================== ======================== ========================
========== ====================== ========== ==========
10. Analysis of support costs
Governance
costs Total 2025 Total 2024
£ £ £
Staff costs 12,531 12,531 11,306
====================== ====================== ======================
11. Net (losses)/gains on investments
Unrestricted Total Funds Unrestricted Total Funds
Funds 2025 Funds 2024
£ £ £ £
Net (losses)/gains on investments (60,839) (60,839) 241,728 241,728
======================== ========================
====================== ====================== == ==
12. Net income
Net income is stated after charging:
2025 2024
£ £
Depreciation of tangible fixed assets 35,106 40,342
Fees payable for the audit of the financial statements 6,156 5,300
====================== ======================

- 16 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

13. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2025 2024
£ £
Wages and salaries 1,459,086 1,453,125
Social security costs 129,999 127,666
Employer contributions to pension plans 79,641 60,609
Other employee benefits 52,000 74,000
----------------------------------
----------------------------------
1,720,725 1,715,400
========================
========================
========== ==========

The average head count of employees during the year was 89 (2024: 86). The average number of full-time equivalent employees during the year is analysed as follows:

employees during the year is analysed as follows:
2025 2024
No. No.
Cardigan House approved premises 21 22
Ripon House approved premises 16 16
Secretary 1 1
----------- -----------
38 39
=========== ===========
The number of employees whose remuneration for the year fell within the following bands, were:
2025 2024
No. No.
£60,000 to £69,999 1
=========== ===========

The number of employees whose remuneration for the year fell within the following bands, were:

The key management personnel of the charity comprise the trustees together with the individuals listed on page 1. The total employee benefits of the key management personnel were £286,954 (2024: £340,728).

14. Trustee remuneration and expenses

No trustees received any remuneration (2024: none).

The amount paid to trustees in respect of travelling costs was £200 (2024: £122). This was in respect of two trustees (2024: one).

15. Tangible fixed assets

Land and Fixtures and Fixtures and Computer
buildings fittings equipment Total
£ £ £ £
Cost
At 1 April 2024 1,900,000 498,335 20,494 2,418,829
Additions 16,404 7,728 24,132
Disposals (2,588) (2,588)
Revaluations 883,596 883,596
---------------------------------- -------------------------- ---------------------- ----------------------------------
At 31 March 2025 2,800,000 506,063 17,906 3,323,969
======================== ======================== ========================
========== == ====================== ==========
Depreciation
At 1 April 2024 448,411 14,878 463,289
Charge for the year 32,133 2,973 35,106
Disposals (2,587) (2,587)
---------------------------------- -------------------------- ---------------------- ----------------------------------
At 31 March 2025 480,544 15,264 495,808
======================== ======================== ========================
========== == ====================== ==========
Carrying amount
At 31 March 2025 2,800,000 25,519 2,642 2,828,161
======================== ======================== ========================
========== == ====================== ==========
At 31 March 2024 1,900,000 49,924 5,616 1,955,540
======================== ======================== ========================
========== == ====================== ==========

- 17 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

15. Tangible fixed assets (continued)

All fixed assets are used for direct charitable purposes, namely that of approved premises. Land and buildings were revalued on 7 April 2025 on an existing use basis by Dove Haigh Phillips LLP, Chartered Surveyors and valuers.

The historic cost of the land and buildings is £100,291 (2024: £83,887).

16. Investments

Listed
investments
£
Cost or valuation
At 1 April 2024 2,309,276
Additions 300,000
Other movements (60,840)
----------------------------------
At 31 March 2025 2,548,436
========================
==========
Impairment
At 1 April 2024 and 31 March 2025 ========================
==========
Carrying amount
At 31 March 2025 2,548,436
========================
==========
At 31 March 2024 2,309,276
========================
==========

All investments shown above are held at valuation.

Financial assets held at fair value

Investments of £2,548,436 (2024: £2,309,276) represent UK quoted investments held in Central Board of Finance of the Church of England.

The historic cost of investments is £1,342,879 (2024: £1,042,879).

17. Debtors

2025 2024
£ £
Trade debtors 968 735
Prepayments and accrued income 78,160 80,813
Other debtors 1,084 6,385
---------------------- ----------------------
80,212 87,933
======================
======================

18. Creditors: amounts falling due within one year

2025 2024
£ £
Trade creditors 54,379 3,832
Accruals and deferred income 52,323 71,670
Social security and other taxes 32,729
Other creditors 31,914 78,297
-------------------------- --------------------------
171,345 153,799
========================
========================
== ==

- 18 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

19. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £79,641 (2024: £60,609).

Defined benefit plans

The disclosures below relate to the funded liabilities within the West Yorkshire Pension Fund ("the Fund") which is part of the Local Government Pension Scheme ("LGPS"). The funded nature of the LGPS requires the charitable company and its employees to pay contributions into the Fund, calculated at a level intended to balance the pensions liabilities with investment assets.

The employer's regular contributions to the Fund for the year ending 31 March 2026 are estimated to be £208,000.

Additional contributions may also become due in respect of any employer discretions to enhance member benefits in the Fund over the next accounting period.

The scheme was closed to new members with effect from 30 September 2014.

The latest actuarial valuation of the charitable company's liabilities took place as at 31 March 2022. Liabilities have been estimated by the independent qualified actuary on an actuarial basis using the projected unit credit method. The principal assumptions used by the actuary in updating the latest valuation of the Fund for FRS 102 purposes were:

Principal Actuarial Assumptions
Ripon House
2025 2024 2023
Discount rate 5.8% 4.8% 4.7%
CPI inflation 2.5% 2.6% 2.7%
Rate of increase to pensions in payment 2.5% 2.6% 2.7%
Rate of increase to deferred pensions 2.5% 2.6% 2.7%
Rate of general increase in salaries 3.75% 3.85% 3.95%
Cardigan House
2025 2024 2023
Discount rate 5.8% 4.8% 4.7%
CPI inflation 2.5% 2.6% 2.7%
Rate of increase to pensions in payment 2.5% 2.6% 2.7%
Rate of increase to deferred pensions 2.5% 2.6% 2.7%
Rate of general increase in salaries 3.75% 3.85% 3.95%

All other assumptions below are the same for Ripon House and Cardigan House.

The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements. The assumed life expectations on retirement age 65 are:

2025 2024 2023
Retiring today:
Males 21 21 22
Females 24 24 25
Retiring in twenty years:
Males 22 22 23
Females 25 25 26

- 19 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

19. Pensions and other post retirement benefits (continued)

The approximate split of assets for the Fund as a whole (based on data supplied by the Fund Administering Authority) is shown in the table below.

2025 2024 2023
Equities 79.3% 79.4% 80.8%
Property 2.8% 2.8% 3.3%
Government bonds 9.0% 8.5% 6.9%
Corporate bonds 4.0% 4.2% 4.6%
Cash 2.6% 1.8% 2.3%
Other 2.3% 3.3% 2.1%
----------- ----------- -----------
Total 100.0% 100.0% 100.0%
=========== =========== ===========

The actual return on the scheme assets was £236,000 (2024: £346,000).

Sensitivity analysis on defined benefit obligations are:

Sensitivity analysis on defined benefit obligations are:
2025 2024 2023
£ £ £
Discount rate + 0.1% 3,372,000 3,959,000 4,051,000
Discount rate - 0.1% 3,466,000 4,081,000 4,177,000
Mortality assumption + 1 year increase 3,344,000 3,919,000 4,007,000
Mortality assumption - 1 year decrease 3,494,000 4,125,000 4,221,000
Salary rate + 0.1% 3,425,000 4,026,000 4,121,000
Salary rate - 0.1% 3,413,000 4,014,000 4,107,000

The statement of financial position net defined benefit asset is determined as follows:

2025 2024
£ £
Present value of defined benefit obligations (3,419,000) (4,020,000)
Fair value of plan assets 5,740,000 5,525,000
------------------------------------- -------------------------------------
2,321,000 1,505,000
Asset restriction (2,321,000) (1,505,000)
------------------------------------- -------------------------------------
======================== ========================
============= =============

In accordance with paragraph 28.22 of FRS 102, the surplus has not been recognised as the recovery of the surplus cannot be reliably measured.

Changes in the present value of the defined benefit obligations are as follows:

Changes in the present value of the defined benefit obligations are as follows:
2025
£
At 1 April 2024 4,020,000
Current service cost 52,000
Interest expense 188,000
Benefits paid (238,000)
Contributions by plan participants 16,000
Remeasurements:
Actuarial gains and losses (619,000)
----------------------------------
At 31 March 2025 3,419,000
========================
==========
Changes in the fair value of plan assets are as follows:
2025
£
At 1 April 2024 5,525,000
Interest income 263,000
Benefits paid (238,000)
Contributions by employer 201,000
Contributions by plan participants 16,000
Remeasurements:
Actuarial gains and losses (27,000)
----------------------------------
At 31 March 2025 5,740,000

Changes in the fair value of plan assets are as follows:

- 20 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

19. Pensions and other post retirement benefits (continued)

Pensions and other post retirement benefits (continued)
========================
==========
The total costs for the year in relation to defined benefit plans are as follows:
2025 2024
£ £
Recognised in income or expenditure:
Current service cost 52,000 74,000
Past service credit - (1,000)
Net interest income (6,000) (49,000)
---------------------- --------------------------
46,000 24,000
========================
====================== ==
Recognised in other recognised gains and losses:
Asset restriction (816,000) (1,134,000)
Remeasurement of the liability:
Actuarial gains and losses 661,000 324,000
---------------------------------- ----------------------------------
(155,000) (810,000)
========================= =========================
========= =========

20. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
Gains and
At 1 Apr 2024 Income Expenditure Transfers losses At 31 Mar 2025
£ £ £ £ £ £
Unrestricted Funds 1,227,791 2,537,670 (2,436,354) (60,839) 1,268,268
Revaluation reserve 1,816,113 883,596 2,699,709
Pension 155,000 (155,000)
Designated funds
Cessation fund 150,000 150,000
Redundancy fund 210,000 210,000
Building fund 650,000 650,000
Pension fund 560,000 560,000
----------------------------------
----------------------------------
---------------------------------- ----------- -------------------------- ----------------------------------
4,613,904 2,537,670 (2,281,354) 598,757 5,537,977
======================
======================
====================== ====================== ======================
============
============
============ =========== ==== ============
Gains and
At 1 Apr 2023 Income Expenditure Transfers losses At 31 Mar 2024
£ £ £ £ £ £
Unrestricted Funds 1,804,669 2,484,550 (2,497,156) (806,000) 241,728 1,227,791
Revaluation reserve 1,816,113 1,816,113
Pension 601,000 209,000 (810,000)
Designated funds
Cessation fund 90,000 60,000 150,000
Redundancy fund 124,000 86,000 210,000
Building fund 220,000 430,000 650,000
Pension fund 330,000 230,000 560,000
----------------------------------
----------------------------------
---------------------------------- -------------------------- -------------------------- ----------------------------------
4,985,782 2,484,550 (2,288,156) (568,272) 4,613,904
======================
======================
====================== ====================== ====================== ======================
============
============
============ ==== ==== ============

The description of the designated funds are as follows:

Cessation fund - The anticipated costs that are likely to be incurred in the event of cessation of the MOJ contract which runs until 31 March 2026.

Redundancy fund - The calculated redundancy for all employees.

Building fund - The estimate for potential major works to Ripon House and Cardigan House.

Pension fund - The annual lump sum pension contributions for the next 3 years arising out of the 2019 Triennial Review

- 21 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

19. Pensions and other post retirement benefits (continued) of the charity's funds within the West Yorkshire Pension Fund.

- 22 -

Progress to Change

Company Limited by Guarantee

Notes to the Financial Statements (continued)

Year ended 31 March 2025

21. Analysis of net assets between funds

Unrestricted Total Funds Total Funds
Funds 2025
£ £
Tangible fixed assets 2,828,161 2,842,083
Investments 2,548,436 2,548,436
Current assets 332,725 332,725
Creditors less than 1 year (171,345) (171,345)
---------------------------------- ----------------------------------
Net assets 5,537,977 5,551,899
======================== ========================
========== ==========
Unrestricted Total Funds
Funds 2024
£ £
Tangible fixed assets 1,955,540 1,955,540
Investments 2,309,276 2,309,276
Current assets 502,887 502,887
Creditors less than 1 year (153,799) (153,799)
---------------------------------- ----------------------------------
Net assets 4,613,904 4,613,904
======================== ========================
========== ==========
Analysis of changes in net debt
At 1 Apr 2024 Cash flows At 31 Mar 2025
£ £ £
Cash at bank and in hand 414,954 (162,441) 252,513
======================== ======================== ========================
== == ==
Operating lease commitments
The total future minimum lease payments under non-cancellable operating leases are as follows:
2025 2024
£ £
Not later than 1 year 1,489 3,214
Later than 1 year and not later than 5 years 1,389
=================== ===================

22. Analysis of changes in net debt

23. Operating lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows:

24. Related parties

No related party transactions took place in the period of account, other than certain trustees' remuneration and expenses already disclosed in note 14.

- 23 -