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2021-03-31-accounts

First Step Trust

Annual Report and Financial Statements

31 March 2021

Company Limited by Guarantee Registration Number 03730562 (England and Wales)

Charity Registration Number 1077959

Contents

Reports
Legal and administrative information 1
Directors’ report 2
Independent auditor’s report 13
Financial statements
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Principal accounting policies 20
Notes to the financial statements 24

First Step Trust

Legal and administrative information

Chief Executive R Wilson
Company secretary J Sibley
Board of directors S Cader
C Furnivall
S Newcombe
A Okill
Registered office Unit 9 Kingside Business Park
Ruston Road
Woolwich
London
SE18 5BX
Telephone 020 8855 7386
Facsimile 020 8855 7386
Website www.firststeptrust.org.uk
E-mail fst@firststeptrust.org.uk
Company registration number 03730562 (England and Wales)
Charity registration number 1077959
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Unity Trust Bank plc
4 The Square
111 Broad Street
Birmingham
B15 1AR
Solicitors Mark Eisenthal & Co
44 Wellington Street
Covent Garden
London
WC2E 7BD

1

Directors’ report 31 March 2021

The directors present the statutory report and financial statements of First Step Trust (“FST”) for the year ended 31 March 2021.

The report, which constitutes a directors’ report for the purposes of company legislation, has been prepared in accordance with Part VIII of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 20 to 23 of the attached financial statements and comply with the charitable company’s memorandum and articles of association, applicable laws and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

FST was incorporated on 10 March 1999 (and commenced activities on 1 January 2000) as a company limited by guarantee and not having share capital (registration number 03730562). It has also been registered as a charity since 1994 (registration number 1077959) prior to its incorporation, and is permitted to exclude the word “limited” from its name under Section 60 of the Companies Act 2006.

Organisational structure

Overall responsibility for the company lies with the directors who meet on a regular basis to decide upon policy and strategy. The day to day running of the company is delegated to the Chief Executive and his Deputy.

Current policies and procedures are easily accessible and are kept updated on the Trust’s website.

Key management personnel

The board of directors, the Chief Executive, the Deputy Chief Executive and a further seven employees with management responsibilities for the company’s operations, finance, catering and garages, are considered to comprise the key management personnel in charge of directing and controlling, running and operating the charity on a day to day basis.

The directors give their time freely and no director received remuneration in the year.

The pay of the key management personnel is reviewed annually by the board of directors and are aligned with average earnings of similar charities.

First Step Trust 2

Directors’ report 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Directors

The directors of the charitable company constitute the trustees of the charity.

The following directors served during the year and up to the date of approval of this report:

Directors S Cader C Furnivall S Newcombe A Okill

No director received any remuneration for services as a director (2020 - £nil). No director was reimbursed travelling expenses (2020 – £nil)

Members’ liability

In the event of the company being wound up, members and those who cease to be members within one year, are required to contribute an amount not exceeding £1 per person.

Statement of directors’ responsibilities

The directors of First Step Trust are responsible for preparing the directors’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

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

First Step Trust 3

Directors’ report 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Statement of directors’ responsibilities (continued)

The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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.

Each of the directors confirms that:

The directors are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The directors’ report has been prepared in accordance with the special provisions of Part 16 of the Companies Act 2006 relating to small companies including the exemption from preparing a strategic report.

Directors’ induction process

As an organisation FST wants to make sure that the directors, in addition to understanding the full range of their responsibilities and obligations, understand the underpinning values and commitment to service users.

In order to achieve these objectives the induction process for new or potential directors includes a period of voluntary work and an invitation to attend two or three Board Meetings before a formal decision is made.

First Step Trust 4

Directors’ report 31 March 2021

OBJECTIVES AND ACTIVITIES

Principal aims and activities

FST aims to support or promote such charitable purposes as the directors may in their absolute discretion determine, but in particular to assist those in the community with mental health problems and other disabilities or disadvantages by the application of FST principles to the provision of services for such people.

Such activities include:

Public benefit statement

The directors confirm that they have complied with their duty under section 4 of the Charities Act 2011. They have considered the public benefit guidance published by the Charity Commission and believe that they have followed its guidance in this area. On pages 5 to 12, the annual report gives a detailed description of the activities undertaken by the charitable company during the year in furtherance of its charitable purposes, and the directors are satisfied that all such activities provide a public benefit.

First Step Trust 5

Directors’ report 31 March 2021

ACHIEVEMENTS AND PERFORMANCE

Management of Covid-19 and lockdown

This has been a difficult year for all with the Covid-19 pandemic impacting on much that could be achieved. For most of the year FST has either been in lockdown or working within a framework necessary to minimise spread of the virus. This was managed by a clear risk management strategy, monitored at Board level and reviewed as required by any shifts in Government policy and changes in the progress of the pandemic.

It is much sadness that we had to close down the Salford garage in October as it was no longer viable resulting in 2 redundancies and the early ending of an apprenticeship.

During the lockdown, despite challenges FST was successful in maintaining contact with workforce over the phone and zoom providing phones for those who didn’t have them. We also provided food packages where required.

Online training was provided and with tablets supplied for those without means of accessing the Internet. Support was also provided to those struggling with access to food and other essentials. Thank you Good Things Foundation for donating 10 tablets.

Once out of lockdown, FST’s projects (main office, Woolwich garage, Abbevilles, Lambeth gardening, Edenfield and Ashworth Hospital) remained available to workforce members. We sustained this for most of the year, albeit with small numbers attending in a controlled, socially distanced environment. This has allowed the administration to function at Main Office, some garage trading, grounds maintenance contracts and workforce training.

We are pleased to report that staff remained on full pay throughout the pandemic either working from home or furloughed.

The pandemic also provided a spur to some significant reorganisation that had been under consideration for some time but was brought forward either because of restrictions in capacity to bring in trading income or because of premises leasing issues. In addition to the closure of Salford garage, the lease for the Lambeth garage came to an end on 6th December 2020. We are still looking for new premises but it is proving quite difficult to secure suitable accommodation. In addition to the above closures we have had to review our operations at the Bexley garage following an increase in rent. We have however, managed to negotiate an early termination of the lease and we expect to be returning the premises to the landlord at the end of October 2021.

On a more positive note this year has also provided the opportunity to review Abbevilles and rebrand extending the menu to include fish and chips allowing us to reach out to new customers. The premises were refurbished with new equipment installed and the workforce retrained.

One further major change In November 2020, was the relocation of FST project in Merseyside from its long time base of Scott Clinic to the new Merseycare Trust flagship MSU at Rowan View, Maghul (Ashworth site). FST runs a café, a modern and busy catering

First Step Trust 6

Directors’ report 31 March 2021

venue that provides a freshly prepared menu to both the staff and service users on site. FST also runs an on-site shop, selling confectionary and toiletries

Development of SMaRT Pathways

Work has progressed well on this important development for FST. Using a range of technologies including Virtual Reality and video a virtual garage replicating FST’s Woolwich garage has been created, with embedded video instruction and ‘how to’ guides, featuring FST workforce members. This familiar environment creates confidence in the learner to engage with the activities. This is the first in a 10 part programme for motor vehicle maintenance and involves training people to remove/replace a tyre and then balance the wheel. Once completed the aim is to meet the requirements for Institute of Motor Industry (IMI) recognition.

Having Beta tested the programme with FST workforce members, funding has now been secured to beta test the programme across 5 medium secure units in London to assess whether the programme is suitable for use in secure settings. To carry this work forward, two trainers, have been recruited, both ex workforce members: an Automotive Skills Trainer (AST) and a Basic Skills Trainer.

Workforce achievements

Numbers attending are understandably lower than the previous year, but despite the demands of negotiating Covid-19 restrictions, FST was successful in delivering almost 2,000 work experience sessions for over 130 people, working in the Main office and finance department, garage, grounds maintenance and restaurant.

89% of these are people with mental health problems, and those with a history of offending from 43% of the total workforce. 56% of the workforce are people from Black and ethnic minorities.

It is worth noting that the FST workforce overall continues to represent a relatively young population of people with long term mental health problems with 33% aged under 35 and 61% aged under 45.

These are all people very far removed from the labour market with 30% never having worked at all. Of those who have been employed at some point, 86% have been unemployed for 6 years and more.

Welfare benefits received also indicate the majority of the workforce is not yet work ready, (56% on PIP or ESA).

Training

44 new training places were taken up during the year alongside 25 continuing from previous year. 20 in-house courses were completed. 14 accredited qualifications attained in a range of subjects: Food Hygiene, admin, motor vehicle practical, driving ambition and health & safety. 3 people were successful in gaining paid employment while 4 people continued actively seeking work.

First Step Trust 7

Directors’ report 31 March 2021

One workforce member is applying for her ADI (Advance Driving Instructor) trainee licence and continued studying for the theory element of the training while waiting for COVID-19 restrictions to be relaxed to proceed with course completion. We would like to thank the Milnes family for funding this piece of work and other elements of the Driving Ambition® programme.

Work contracts

Trading levels were inevitably reduced compared to the previous year but, nevertheless, FST’s social enterprises were successful in generating £226,000 by delivering:

First Step Trust 8

Directors’ report 31 March 2021

Funders, partners and other supporters during the year include, in alphabetical order:

Funders:

Bracton Centre

Greater Manchester West Mental Health NHS Foundation Trust

London Borough of Lambeth Mersey Care NHS Trust National Lottery NHS Lambeth CCG Oxleas NHS Foundation Trust Royal Borough of Greenwich South London Mental Health and Community Partnership (SLP) Shaftsbury Clinic – Springfield Hospital UFI VocTech Trust

Supporters:

Austella Ltd Beacon Group Limited Bexley Accessible Transport Scheme

Bridgestone BTD Electrical Canary Wharf Ltd Centaur Travel Good Things Foundation Halfords Auto Centres Institute of the Motor Industry Kam Kee Foods London Borough of Lambeth NHS England Parsley & Time Ltd

R&B Star Ltd Re-Ropes Royal Borough of Greenwich

First Step Trust 9

Directors’ report 31 March 2021

Small Business Saturday Social Enterprise UK South East London Chamber of Commerce Southern Motor Factors South London & Maudsley Stone & Ceramic Ltd Visit Greenwich

A special thank you to Andy and Alex of Bridgestone North Europe region for their assistance in helping us to devise and develop a new marketing strategy.

We appreciate the support from the Milnes family in sponsorship for driving ambition and Dr and Mrs Lelliott who also made a donation for our Driving Ambition © programme.

First Step Trust 10

Directors’ report 31 March 2021

FINANCIAL REVIEW

Financial report for the period

A summary of the results for the year can be found on page 17 of the attached financial statements.

Total income was £1,331,001 (2020 - £1,603,230) of which £1,019,034 (2020 - £1,518,648) was income generated from the various activities outlined on pages 6 to 8.

Total expenditure amounted to £1,477,136 (2020 - £1,628,055). Staff costs, including agency costs, of £866,076 continue to be the largest single item of expenditure and represent 65% of total income (2020 – staff costs were £966,043 and 60% of total income).

The deficit for the year amounted to £146,135 before actuarial losses of £110,431 on the defined benefit pension scheme (2020 - deficit of £24,825 before actuarial gains of £143,624) which generated a negative net movement on funds of £256,566 (2020 positive net movement in funds of £118,699).

Reserves policy

The board of directors have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, which are represented by the general fund, and those designated for specific purposes or otherwise committed.

The directors aim to hold general funds equal to approximately six months’ unrestricted fund expenditure (approximately £600,000) and the general fund balance at 31 March 2021 was set at £600,000, down from the £911,258 held in 2020.

It has been agreed by the board of directors that the charity should have sufficient general funds to enable the charity to meet statutory and moral obligations to funders, employees and people using the services of the FST in the event of losing grant funding. The “project support” designated fund balance has been retained at a level of £450,000 at 31 March 2021. The directors also recognise that there may be a call on reserves in future to purchase a building in Crayford or Lambeth and therefore the designated new building fund of £578,301 at 31 March 2020 has been increased to £756,668.

The directors have also considered applying surplus funds in to investments. However, after have taken advice and in view of the uncertainties around coronavirus and Brexit, it has been decided to delay any decision for the time being. This will be kept under review.

The directors have re-examined FST’s requirements for reserves in light of the possible impact of coronavirus on the charity in the foreseeable future. They consider that the current reserves policy protects FST and its longer term charitable objectives by providing sufficient reserves to adjust to changing financial circumstances: to cover any temporary shortfalls in income, provide adequate working capital to cover core expenditure and respond to unforeseen events until specific mitigating action can be implemented.

First Step Trust 11

Directors’ report 31 March 2021

FINANCIAL REVIEW (continued)

Financial position

The net current asset position at 31 March 2021 at £2.682m is consistent with the prior year of £2.755m and the charity continues to have a strong working capital base, with £2.8m being held in cash at 31 March 2021 (2020 - £2.8m).

The balance sheet shows total funds of £2,664,973 (2020 - £2,921,539) of which £93,645 is restricted funding (2020 - £45,912 ) and £2,571,328 is unrestricted which consists of £1,971,328 of designated funding for specific purposes as explained in the reserves policy above (2020 - £1,964,369), and a general fund reserve of £600,000 (£900,001). Included in general fund reserves is a defined benefit pension scheme liability of £931,427 (2020 - £770,487).

The designated funds include a fixed assets fund of £914,660 (being fixed assets not represented by restricted and general funds); a project support fund of £300,000 which has been set aside to ensure that FST is able to meet its obligations to its employees and funders in the event of a serious incident or long term absence; and a new building fund of £756,668, the aim of which is to reduce long term administrative costs through the purchase of its own premises.

General funds or free reserves of the charity at 31 March 2021 totalled £600,000. The directors are satisfied that the current level of free reserves is sufficient to meet the charity’s immediate operational needs and meets the desired target as noted in the reserves policy above.

Risk management

The directors have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity. The directors believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

POST BALANCE SHEET EVENTS

The impact of COVID-19 continued to present operational challenges in respect of Abbevilles. As a result of the restrictions on the hospitality industry the decision was made to provide a take-away service only during the first few months of the year.

Signed on behalf of the Board of Directors

Director

Approved by the board on:

First Step Trust 12

Independent auditor’s report 31 March 2021

Independent auditor’s report to the members of First Step Trust

Opinion

We have audited the financial statements of First Step Trust (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, statement of cash flows, the principal accounting policies and the notes to the financial statements. 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:

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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Independent auditor’s report 31 March 2021

Other information (continued)

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 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, the directors 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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Independent auditor’s report 31 March 2021

Responsibilities of directors (continued)

In preparing the financial statements, the directors are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate 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.

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:

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the charitable company and management.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Assessing the extent of compliance with relevant laws and regulations by reviewing correspondence with regulators and legal advisorsThere are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and

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Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 our 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.

Hugh Swainson, Senior Statutory Auditor for and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

First Step Trust 16

Statement of financial activities Year to 31 March 2021 (Including Income and Expenditure account)

Notes
Unrestricted
funds
£		 Notes
Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2020
£
Income from:
Donations and legacies
Charitable activities:
. Grant funding
1
. Trading activities
Interest receivable
Other
Total income
Expenditure on:
Charitable activities
2
Total expenditure
Net (expenditure)/income for the
year
3
Transfers
10
Other recognised gains/(losses):
Actuarial (loss) gain on defined
benefit pension scheme
16
Net movement in funds for the
year
Fund balances brought forward
at 1 April 2020
Fund balances carried forward
at 31 March 2021		 250
—
1,019,034
1,027
88,173		 3,000
219,517
—
—
—		 3,250
219,517
1,019,034
1,027
88,173		 1,477
—
1,518,648
7,500
2,480		 —
73,125
—
—
—		 1,477
73,125
1,518,648
7,500
2,480
1,108,484 222,517 1,331,001 1,530,105 73,125 1,603,230
1,309,852 167,284 1,477,136 1,600,842 27,213 1,628,055
1,309,852 167,284 1,477,136 1,600,842 27,213 1,628,055
(201,368)
7,500
(110,431)		 55,233
(7,500
—		 (146,135)
—
(110,431)		 (70,737)
—
143,524		 45,912
—
—		 (24,825)
—
143,524
(304,299)
2,875,627		 47,733
45,912		 (256,566)
2,921,539		 72,787
2,802,840		 45,912
—		 118,699
2,802,840
2,571,328 93,645 2,664,973 2,875,627 45,912 2,921,539

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised in the year.

First Step Trust 17

Balance sheet 31 March 2021

Notes
2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Tangible assets
6
Current assets
Debtors
7
Short term deposits

Cash at bank and in hand

Current liabilities
Creditors: amounts falling due
within one year
8
Net current assets
Total net assets excluding
pension liability
Defined benefit pension scheme
liability
16
Total net assets
The funds of the charity:
Restricted funds
10
Unrestricted funds
. Designated funds
11
. General funds
Total charity funds
12

79,923
1,875,716
936,490
914,660














2,681,740
 110,423
1,874,689
921,484		 936,068




2,755,958
2,892,129

(210,389)		 2,906,596
(150,638)





1,971,328
600,000


1,964,369
911,258
3,596,400

(931,427)
 3,692,026
(770,487)
2,664,973 2,921,539




93,645





2,571,328
 45,912


2,875,627



2,664,973 2,921,539

Approved by the directors and signed on its behalf by:

Director of First Step Trust Company registration number 03730562 (England and Wales)

Approved on:

First Step Trust 18

Statement of cash flows 31 March 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Investment income
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2020
B
Cash and cash equivalents at 31 March 2021
B

19,496		 126,381


1,027
**(4,490) **		 7,500
(16,571)
**(3,463) ** (9,071)

16,033


2,796,173
 117,310
2,678,863

2,812,206		 2,796,173

Notes to the statement of cash flows for the year to 31 March 2021.

A
B		 Reconciliation of net movement in funds to net cash provided by operating activities
2021
£
2020
£
Net movement in funds (as per the statement of financial activities)
(256,566)
118,699
Adjustments for:
Depreciation charge
25,898
27,041
Actuarial loss (gain) on defined benefit pension scheme
110,431
(143,524)
Difference between pension charge and cash contributions
31,393
87,251
Defined pension scheme finance cost
19,116
20,480
Interest receivable
(1,027)
(7,500)
Decrease in debtors
30,500
50,715
Increase in creditors
59,751
(26,781)
Net cashprovided by operating activities
19,496
126,381
Analysis of cash and cash equivalents
2021
£
2020
£
Cash at bank and in hand
936,490
921,484
Short term deposits
1,875,716
1,874,689
Total cash and cash equivalents
2,812,206
2,796,173		 Reconciliation of net movement in funds to net cash provided by operating activities
2021
£
2020
£
Net movement in funds (as per the statement of financial activities)
(256,566)
118,699
Adjustments for:
Depreciation charge
25,898
27,041
Actuarial loss (gain) on defined benefit pension scheme
110,431
(143,524)
Difference between pension charge and cash contributions
31,393
87,251
Defined pension scheme finance cost
19,116
20,480
Interest receivable
(1,027)
(7,500)
Decrease in debtors
30,500
50,715
Increase in creditors
59,751
(26,781)
Net cashprovided by operating activities
19,496
126,381
Analysis of cash and cash equivalents
2021
£
2020
£
Cash at bank and in hand
936,490
921,484
Short term deposits
1,875,716
1,874,689
Total cash and cash equivalents
2,812,206
2,796,173		 Reconciliation of net movement in funds to net cash provided by operating activities
2021
£
2020
£
Net movement in funds (as per the statement of financial activities)
(256,566)
118,699
Adjustments for:
Depreciation charge
25,898
27,041
Actuarial loss (gain) on defined benefit pension scheme
110,431
(143,524)
Difference between pension charge and cash contributions
31,393
87,251
Defined pension scheme finance cost
19,116
20,480
Interest receivable
(1,027)
(7,500)
Decrease in debtors
30,500
50,715
Increase in creditors
59,751
(26,781)
Net cashprovided by operating activities
19,496
126,381
Analysis of cash and cash equivalents
2021
£
2020
£
Cash at bank and in hand
936,490
921,484
Short term deposits
1,875,716
1,874,689
Total cash and cash equivalents
2,812,206
2,796,173
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Actuarial loss (gain) on defined benefit pension scheme
Difference between pension charge and cash contributions
Defined pension scheme finance cost
Interest receivable
Decrease in debtors
Increase in creditors
Net cashprovided by operating activities		 (256,566)
25,898
110,431
31,393
19,116
(1,027)
30,500
59,751
19,496
Analysis of cash and cash equivalents 2021
£
936,490
1,875,716
2,812,206		 2020
£
Cash at bank and in hand
Short term deposits
Total cash and cash equivalents		 921,484
1,874,689
2,796,173

First Step Trust 19

Principal accounting policies 31 March 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021.

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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared under the historical cost convention except for the modification to a fair value basis as specified in the accounting policies below.

The charity constitutes a public benefit entity as defined by FRS 102.

All financial information is presented in British Pounds Sterling (£), the charity’s functional currency, and has been rounded to the nearest pound (£).

Critical accounting estimates and judgements

The preparation of financial statements requires the use of certain critical accounting estimates and judgements. It also requires the directors’ to exercise judgement in the process of applying accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including an expectation of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the directors’ best knowledge of the amount, event or actions, actual results may differ from those estimates.

There are no areas requiring the use of estimates and critical judgements that may significantly impact on the charity’s financial activities and financial position.

Assessment of going concern

The directors have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The directors have made this assessment in respect to a period of one year from the date of approval of these accounts.

The directors have considered the continuing impact of the Covid-19 pandemic on the charity and have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern and that the charity will have sufficient resources to meet its liabilities as they fall due. The directors are of the opinion that it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

First Step Trust 20

Principal accounting policies 31 March 2021

Income

Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Grants from Government and other agencies have been included as income from charitable activities where these relate to delivering specific projects, but as voluntary income where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.

Income from trading activities represents the sale of goods and services and includes income receivable under service agreements with public health bodies. Income from goods is recognised when the risks and rewards of ownership have passed to the buyer. Income from services is recognised when the services are provided to the buyer.

Interest income from cash at bank is recognised 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.

Expenditure

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. It includes VAT which cannot be recovered.

Expenditure on charitable activities:

The costs of charitable activities comprises direct expenditure on the provision of the charity’s services, i.e. carrying out of projects consistent with the charity’s primary charitable objectives, and includes support costs and governance costs.

Support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include administration, personnel and governance costs and also include support in the form of personnel development, financial procedures, the provision of office services and equipment and a suitable working environment.

Governance costs are the costs associated with the governance of the charitable company and its assets. Included within this category are costs associated with the strategic, as opposed to the day to day, management of the charitable company’s activities.

First Step Trust 21

Principal accounting policies 31 March 2021

Tangible fixed assets

All tangible fixed assets are stated at cost less depreciation. All assets costing more than £500 and with an expected useful life exceeding one year are capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Freehold land is not depreciated.

Debtors

Trade and other debtors are initially recognised at their settlement amount and subsequently at amortised cost or their recoverable amount. Impairment provisions are recognised when there is objective evidence, such as significant financial difficulties on the part of the counterparty or default or a significant delay in payment, that the charity will be unable to collect all of the amounts due.

Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand represents cash that is available on demand or has a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year are disclosed as short term deposits.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be measured or estimated reliably.

Creditors and provisions are initially recognised at fair value, being the amount the charity anticipates it will pay to settle the debt, and subsequently at amortised cost.

First Step Trust 22

Principal accounting policies 31 March 2021

Financial instruments

The company only holds basic financial instruments as defined in FRS102. The financial assets and financial labilities of the company and their measurement basis is as follows:

Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 7. Prepayments are not financial instruments.

Cash and cash equivalents – is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, accruals and other creditors are financial instruments and are measured at amortised cost as detailed in note 8. Taxation and social security are not included in the financial instrument disclosure definition. Deferred income is not deemed to be a financial liability, as cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

Fund accounting

The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity at the discretion of the directors.

The designated funds are monies set aside out of general funds and designated for specific purposes by the directors.

The restricted funds were monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

Pension costs

The charity is a member of a defined benefit pension scheme. Pension scheme assets are measured at fair value at each balance sheet date. Liabilities are measured on an actuarial basis using the projected unit method. The net of these two figures is recognised as an asset or liability on the balance sheet.

Any change in the asset or liability between balance sheet dates is reflected on the statement of financial activities.

First Step Trust 23

Notes to the financial statements 31 March 2021

1 Grant funding for specific activities

Unrestricted
funds
£
—
—
—
—		 Restricted
funds
£
50,000
114,375
55,142
219,517		 Total
funds
2021
£
50,000
114,375
55,142
219,517
UK Government grants
UFI Technology
The National Lottery Community Fund
Covid furlough income
2020 Total funds
Unrestricted
funds
£
—
—
—		 Restricted
funds
£
20,000
53,125
73,125		 Total
funds
2020
£
20,000
53,125
73,125
UK Government grants
UFI Technology
The National Lottery Community Fund
2020 Total funds

2 Charitable activities

Charitable activities
Unrestricted
funds
£		 Restricted
funds
£
120,337
—
—
—
22,200
—
—
100
395
—
24,240
—
12
—
167,284
—
167,284		 Total
funds
2021
£
Staff costs (note 4)
Interest on defined benefit pension liability
Direct materials
Travel expenses
Premises costs
Printing, postage and stationery
Events and publicity
Telephone
Recruitment
Insurance
Consultancy, legal fees, subscriptions and bank charges
Depreciation
Training and development
Other expenses
Governance costs
2021 Total funds
Governance costs include:
Audit fees
Actuarial fees
2021 Totalgovernance costs		 745,739
19,116
161,694
19,338
274,311
2,098
494
9,863
798
16,928
19,158
25,898
1,235
182		 866,076
19,116
161,694
19,338
296,511
2,098
494
9,963
1,193
16,928
43,398
25,898
1,247
182
1,296,852
13,000		 1,464,136
13,000
1,309,852 1,477,136
13,000 — 13,000
13,000
13,000 —

First Step Trust 24

Notes to the financial statements 31 March 2021

2 Charitable activities (continued)

Comparative year

Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2020
£
Staff costs (note 4)
Agency costs (note 4)
Interest on defined benefit pension liability
Direct materials
Travel expenses
Premises costs
Printing, postage and stationery
Events and publicity
Telephone
Recruitment
Insurance
Consultancy, legal fees, subscriptions and bank charges
Depreciation
Training and development
Other expenses
Governance costs
2020 Total funds
Governance costs include:
Audit fees
Actuarial fees
2020 Totalgovernance costs		 936,580
5,986
20,480
302,449
38,513
192,425
2,297
1,130
10,435
1,451
28,190
13,000
27,041
2,426
5,180		 23,477
—
—
—
1,134
—
—
—
—
849
—
1,375
—
—
378		 960,057
5,986
20,480
302,449
39,647
192,425
2,297
1,130
10,435
2,300
28,190
14,375
27,041
2,426
5,558
1,587,583
13,259		 27,213
—		 1,614,796
13,259
1,600,842 27,213 1,628,055
13,000
259
13,259		 —
—		 13,000
259
13,259
—

3 Net expenditure for the year

This is stated after charging:

2021
£
866,076
13,000
—
25,898
108,262		 2020
£
966,043
13,000
1,300
27,041
111,076
Staff costs (note 4)
Auditor’s remuneration
. Statutory audit services
. Taxation services
Depreciation (note 6)
Operatingleases – land and buildings

First Step Trust 25

Notes to the financial statements 31 March 2021

4 Staff costs including key management personnel and directors’ remuneration and expenses

expenses
2021
£		 2020
£
Staff costs during the period were as follows:
Wages and salaries
Social security costs
Other pension costs
Agency staff costs		 723,082
65,648
77,346		 756,810
72,009
131,238
866,076
—		 960,057
5,986
866,076 966,043

Included in wages and salaries is £21,814 of statutory contractual redundancy payments made to three employees.

The number of employees who earned £60,000 per annum or more (including taxable benefits but excluding employer pension contributions) during the year was as follows:

2021
Number		 2020
Number
£80,001 - £90,000
£90,001 - £100,000		 1
1		 —
2
2 2

Both of the above employees had benefits accruing to them under the charitable company’s defined benefit pension scheme and employer contributions paid to the scheme during the year for the two employees totalled £31,627 (2020 - £27,866).

The average number of employees during the year involved in charitable activities was:

2021
Number		 2020
Number
Charitable activities 27 33

First Step Trust 26

Notes to the financial statements 31 March 2021

4 Staff costs including key management personnel and directors’ remuneration and expenses (continued)

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the charity and comprise the directors, the Chief Executive, the Deputy Chief Executive and six individuals with management responsibilities over key areas of the company’s operations.

The number of key management personnel was 8 (2020: 9). The total remuneration (including employers national insurance and pension contributions) paid to the key management personnel was £447,231 (2020 - £392,804).

The directors received no remuneration.

Directors’ expenses

No expenses were reimbursed to directors or incurred on their behalf during the year. (2020 – None).

5 Taxation

First Step Trust is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

6 Tangible fixed assets

Tangible fixed assets
Freehold
land and
buildings
£		 Long
leasehold
buildings
£		 Plant
machinery
and
equipment
£		 Motor
vehicles
£		 Total
£
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for period
On disposals
At 31 March 2021
Net book values
At 31 March 2021
At 31 March 2020		 698,325
—
—		 405,798
2,200
—		 13,695
2,290
(4,263)		 2,429
—
(800)		 1,120,247
4,490
(5,063)
698,325 407,998 11,723 1,629 1,119,675
152,170
14,071
—		 23,911
8,160
—		 6,484
3,261
(4,263)		 1,614
407
(800)		 184,1797
25,898
(5,063)
166,241 32,071 5,482 1,221 205,015
537,084 375,927 6,241 408 914,660
546,155 381,888 2,116 814 936,068

First Step Trust 27

Notes to the financial statements 31 March 2021

7 Debtors

Debtors
2021
£		 2020
£
Trade debtors
Prepayments
Sundry Debtors		 40,010
26,729
13,184		 64,030
46,393
-
79,923 110,423

8 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Trade creditors
Other creditors
Social security and other taxes
Accruals and deferred income		 22,023
7,046
60,107
121,213		 34,215
6,836
69,039
40,548
210,389 150,638

9 Financial instruments and financial risk management

The charity only holds basic financial instruments, all measured at amortised cost as follows:

2021
£		 2020
£
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost		 2,865,400
150,282		 2,860,203
57,635

The charity has exposure to one main area of risk, liquidity risk.

Liquidity risk

The objective of the charity in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The charity seeks to meet its financial obligations through cash flows from its charitable activities. In the event that the cash flows would not cover all the financial liabilities, the charity has sufficient cash reserves available to meet any shortfall.

First Step Trust 28

Notes to the financial statements 31 March 2021

10 Restricted funds

In the year 2020/21, restricted funds consisted of:

At
1 April
2020
£



Income
£		 Expenditure
£
Transfers
£		 At
31 March
2021
£
Ufi Charitable Trust
The National Lottery
The National Lottery
Covid furlough income
Driving Ambition Donations		 —
10,000
35,912
—
—
50,000

—



114,375
55,142
3,000		 (50,000)
(2,200)
(59,942)
(55,142)
—		 —
—
(7,500)
—
—		 —
7,800
82,845
—
3,000
45,912
222,517		 (167,284) (7,500) 93,645
At
1 April
2019
£		 Income
£		 Expenditure
£
At
31 March
2020
£
Ufi Charitable Trust
The National Lottery
The National Lottery		 —
—
—		 20,000
10,000
43,125		 (20,000)
—
(7,213)		 —
10,000
35,912
— 73,125 27,213 45,912

The specific purposes for which the funds are to be applied are as follows:

This fund was received to explore the feasibility of using digital technologies in the provision of adult learning

The funding was provided by the Community Fund to improve the delivery of Abbeville services to the local community by funding double glazing for the premises.

This represents funding received from the Community Fund for the SMaRT Pathways project to enable people with no formal educational qualifications and are long term unemployed to progress towards a career in the automotive industry. The total funding is £0.5m over a three year period.

This fund represented monies from received under the covid furlough scheme.

These funds represented donations received towards our Driving ambition programme,

First Step Trust 29

Notes to the financial statements 31 March 2021

11 Designated funds

The funds of the charity includes the following designated funds which have been set aside out of unrestricted funds by the directors for specific purposes:

At
1 April
2020
£		 New
designations
and
transfers		 Utilised/
realised
£		 At
31 March
2021
£
Fixed assets fund
New building fund
Project support fund		 936,068
578,301
450,000		 4,490
178,367
(150,000)		 (25,898)
—
—		 914,660
756,668
300,000
1,964,369 32,857 (25,898) 1,971,328

♦ Fixed asset fund

This fund represents the net book value of the charity’s fixed assets. The funds have been set aside to demonstrate the importance of those assets to the charity’s continuing work, and to highlight that the funds do not represent monies available for future operational expenditure.

♦ New building fund

The Trust is seeking opportunities to acquire new premises to support the development of its core activities. This fund has been set aside for the purchase of new properties.

♦ Project support fund

The fund has been set aside to ensure that the trust is able to meet its obligations to employees and funders in the event of a serious incident or long-term absence.

Comparatives

Comparatives
At
1 April
2019
£		 New
designations
and
transfers		 Utilised/
realised
£		 At
31 March
2020
£
Fixed assets fund
New building fund
Project support fund		 946,538
506,301
450,000		 16,571
72,000
—		 (27,041)
—
—		 936,068
578,301
450,000
1,902,839 88,571 (27,041) 1,964,369

First Step Trust 30

Notes to the financial statements 31 March 2021

12 Analysis of net assets between funds

General
fund
£		 Designated
funds
£		 Restricted
funds
£		 Total
2021
£
Fund balances at 31 March 2021
are represented by:
Tangible fixed assets
Current assets
Current liabilities
Total net assets before non-current
liabilities and pension liability
Pension liability
Total net assets		 —
1,741,816
(210,389)		 914,660
1,056,668
—		 —
93,645
—		 914,660
2,892,129
(210,389)
1,531,428
(931,427)		 1,963,827
—		 93,645
—		 3,596,400
(931,427)
600,000 1,971,328 93,645 2,664,973
Comparatives: General
fund
£		 Designated
funds
£		 Restricted
funds
£		 Total
2020
£
Fund balances at 31 March 2020
are represented by:
Tangible fixed assets
Current assets
Current liabilities
Total net assets before non-current
liabilities and pension liability
Pension liability
Total net assets		 —
1,832,383
(150,638)		 936,068
1,028,301
—		 —
45,912
—		 936,068
2,906,596
(150,638)
1,681,745
(770,487)		 1,964,369
—		 45,912
—		 3,692,026
(770,487)
911,258 1,964,369 45,912 2,921,539

13 Related party transactions

Carole Furnivall, a director of the charitable company, charged consultancy fees and expenses of £nil (2020: £3,640) in connection with welfare monitoring undertaken during the year.

14 Leasing commitment

Operating leases

At 31 March 2021 the charity’s future minimum payments under non-cancellable operating leases was as follows:

Land and **buildings **
2021
£		 2020
£
Within one year
In two to five years		 18,750
—		 85,375
159,167
18,750 244,542

First Step Trust 31

Notes to the financial statements 31 March 2021

15 Indemnity insurance

The charity has purchased insurance to protect the charity from loss arising from any wrongful or dishonest act of any director, officer of the charitable company, or employee and to indemnify any director, officer of the company, or employee against the consequence of any wrongful act on their part. The total cover provided by such insurance is £1,000,000 (2020 - £1,000,000) and the total premium paid in respect of such insurance was £442 (2020 - £476).

16 Pension scheme

First Step Trust is one of the employing bodies included within the London Borough of Greenwich Pension Fund.

The total employer contribution in respect of the funded defined benefit scheme for the year was £36,998 (2020 - £32,656). The best estimate of contributions to be paid by the employer for the year beginning 1 April 2020 is £37,000.

The assets of the scheme are held independently of the charity’s finances. Contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The pensions cost is assessed every three years in accordance with the advice of a qualified independent actuary. The next comprehensive actuarial valuation will be at 31 March 2022.

In order to assess the actuarial value of the charity’s assets and liabilities at 31 March 2021; the actuaries have rolled forward the actuarial value of the assets and liabilities at 31 March 2020. The major assumptions used by the actuary were (in nominal terms):

2021
% per
annum		 2020
% per
annum
RPI increases
CPI increases
Rate of increase in salaries
Rate of increase for pensions
Discount rate for liabilities		 3.35%
2.85%
3.85%
2.85%
1.95%		 2.95%
1.95%
2.95%
1.95%
2.35%

The mortality assumptions adopted at 31 March 2021 have been provided by the actuary and assume the following life expectancies:

First Step Trust 32

Notes to the financial statements 31 March 2021

16. Pension scheme (continued)

The estimated asset allocation of the whole fund as at 31 March 2021 is as follows:

31 March 2021
£’000
%
179
9%
324
17%
171
9%
24
1%
755
39%
481
25%
1,934
100%		 31 March 2021
£’000
%
179
9%
324
17%
171
9%
24
1%
755
39%
481
25%
1,934
100%		 31 March 2020
£’000
%
140
9%
289
19%
171
11%
25
2%
567
37%
333
22%
1,525
100%
UK equities
Other bonds
Property
Cash
Unitised insurance policies
UK and overseas unit trusts		 179
324
171
24
755
481		 9%
17%
9%
1%
39%
25%		 140
289
171
25
567
333
1,934 100% 1,525

The value of First Step Trust’s share in the pension scheme’s assets and liabilities at 31 March were:

Fair value of charity’s
estimated share of
scheme assets*
Present value of scheme
liabilities
Deficit in scheme		 31
March
2021
£’000
1,934

(2,865)		 31
March
2020
£’000
31
March
2019
£’000
1
1,525
1,710
(2,295)
(2,516)
(770)
(806)		 31
March
2020
£’000
31
March
2019
£’000
1
1,525
1,710
(2,295)
(2,516)
(770)
(806)		 31
March
2018
£’000

1,551

(2,282)



31
March
2017
£’000

1,490

(2,184)



31
March
2016
£’000
1,241
(1,797)
(931) (770) (806)
(731)
(694)		 (556)

The overall movement in First Step Trust’s share of the deficit during the year was as follows:

Year
ended
31 March
2021
£’000		 Year
ended
31 March
2020
£’000
Movement in deficit during the year
Deficit in scheme at 1 April
Movement in year:
. Current service cost
. Employer contributions
. Net finance charge
. Actuarial (loss) gain
Deficit in scheme at 31 March		 (770)
(68)
37
(19)
(111)		 (806)
(120)
33
(20)
143
(931) (770)

First Step Trust 33

Notes to the financial statements 31 March 2021

17 16 Pension scheme (continued)

Changes in First Step Trust’s share of the present value of the scheme liabilities are as follows:

Year
ended
31 March
2021
£’000		 Year
ended
31 March
2020
£’000
Scheme liabilities at start of period
Current service cost
Interest cost
Past service costs, including curtailments
Contributions by scheme participants
Estimated benefits paid
Change in actuarial assumptions
Scheme liabilities at end ofperiod		 2,295
68
54
—
19
(17)
446		 2,516
85
59
35
19
(16)
(403)
2,865 2,295

Changes in First Step Trust’s share in the fair value of the present value of the scheme assets are as follows:

Year
ended
31 March
2021
£’000		 Year
ended
31 March
2020
£’000
Fair value of scheme assets at start of period
Interest on assets
Return on assets less interest
Administration expenses
Estimated benefits paid
Contributions by employer
Contributions by scheme participants
Fair value of scheme assets at end ofperiod		 1,525
36
335
(1)
(17)
37
19		 1,710
41
(260)
(2)
(16)
33
19
1,934 1,525

First Step Trust 34

Notes to the financial statements 31 March 2021

16 Pension scheme (continued)

The pension charge for the year calculated under FRS 102 assumptions is reflected in the financial statements as follows:

2021
£’000		 2020
£’000
Analysis of the amount charged to the statement of financial
activities (SOFA)
Current service cost
Total operating charge
Analysis of other finance charge
Interest on pension liabilities
Administrative expenses
Net finance cost
Net revenue account cost
Amounts recognised as other gains and losses
Return on fund assets in excess of interest
Change in actuarial assumptions		 68 120
68 120
18
1		 18
2
19 20
87 140
336
(447)		 (260)
403
111 143

Analysis of the sensitivity to the principal assumptions of the value of the scheme liabilities

Approximate impact on
Assumption Change in assumption scheme liabilities
Discount rate Decrease/increase by 0.1% pa +£43,000/-£43,000
Rate of mortality 1 year increase/decrease in life +£137,000/-£137,000
expectancy

First Step Trust 35