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2024-03-31-accounts

First Step Trust

Annual Report and Financial Statements

31 March 2024

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 9
Financial statements
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Principal accounting policies 17
Notes to the financial statements 20

First Step Trust

Legal and administrative information

Chief Executive
Company secretary
Board of directors
Registered office
Telephone
Facsimile
Website
E-mail
Company registration number
Charity registration number
Auditor
Bankers
Solicitors		 R Wilson
Position currently vacant
R Barringer
C E Jelf
J G J Hryniewicz
M M Khan
A P Milnes
Unit 9 Kingside Business Park
Ruston Road
Woolwich
London
SE18 5BX
020 8855 7386
020 8855 7386
www.firststeptrust.org.uk
fst@firststeptrust.org.uk
03730562 (England and Wales)
1077959
Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Unity Trust Bank plc
4 The Square
111 Broad Street
Birmingham
B15 1AR
Burley Law Ltd
Universities Centre
Faraday Wharf
Holt Street
Birmingham
B7 4BB

First Step Trust 1

Directors’ report 31 March 2024

The directors present the statutory report and financial statements of First Step Trust (“FST”) for the year ended 31 March 2024.

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 17 to 20 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 2024

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
P Holbrook Appointed 2 October 2023, resigned 2 September 2024
R Barringer
S Cader Resigned 25 November 2024
C Furnivall Resigned 25 January 2024
M M Khan
C E Jelf Appointed 18 October 2024
J G J Hryniewicz Appointed 18 October 2024
A P Milnes Appointed 21 October 2024
S Newcombe Resigned 14 June 2024
A Okill Resigned 4 October 2023
S M Price Resigned 2 September 2024

No director received any remuneration for services as a director (2023 - £nil). No director was reimbursed travelling expenses (2023 – £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 2024

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.

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:

First Step Trust 4

Directors’ report 31 March 2024

OBJECTIVES AND ACTIVITIES (continued)

Principal aims and activities (continued)

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 9, 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.

ACHIEVEMENTS AND PERFORMANCE

Achievements in the year

During the time since our last report we have continued to restructure the organisation as we move closer to expanding the delivery of our range of programmes nationally. During the year, board members left: Carole Furnivall (Chair), Sally Newcombe (Health & Safety) and Amanda Okill left. These were long term members of the board, helping develop FST from its beginnings and their contribution has been much valued.

Carole was replaced as Chair by Peter Holbrook OBE. Unfortunately, following a major accident, Peter stepped down, resulting in Mohammed Khan taking up the position of acting chair. We are thankful to Mohammed Khan for taking this on temporarily until we recruit a new chair.

We would like to take this opportunity to thank Carole, Sally, Amanda for their long term commitment to FST and for staggering their departure to enable us to begin recruiting the new board. We would also like to thank Steve and Peter for their contribution to the long term plan for FST and for their commitment to the organisation’s growth during their time with us.

Given FST’s continuing development in the area of training and technology we recognise the need to bring new skills to the board. We therefore continue to recruit new Trustees and are pleased to confirm the appointment of Andrew Milnes, Clive Jelf and Jan Hryniewicz to the board.

Andy is a retried BP executive with experience of supporting small business development in the private and VCS sectors. Clive also has extensive experience of supporting small businesses and charities to thrive across London over many years. Jan joined FST in 2003 when he was referred to us by his mental health support worker. Since then, Jan became our first ever salaried Employment Development Worker and stayed with us until 2005. Jan has kept in touch with FST over the years and is now ready to support the organisation as a Trustee with a specific remit of ensuring that the core values and philosophy remain our focus as the organisation moves on to a new stage of development.

First Step Trust 5

Directors’ report 31 March 2024

ACHIEVEMENTS AND PERFORMANCE (continued)

Achievements in the year (continued)

Work has continued to increase the range of courses available to our own workforce and other disadvantaged learners. The garage programme is being extended to include a new Electric Vehicle Awareness programme aimed at people who work in all aspects of the motor industry who may have contact with electric vehicles in the course of their working day e.g., vehicle technicians, sales staff, customer service staff.

The programme is being developed through the support of Andy Palmer (Palmer Foundation) Steve Nash (CEO at the Institute of the Motor Industry) and Andy Turbefield (Head of Quality at Halfords). Other programmes under consideration include a basic electrical skills course aimed at helping the people we support gain the skills and knowledge required to undertake basic tasks e.g., battery change safely.

The 10 Module garage training programme is now fully registered as an IMI approved programme and we have now registered the VR (virtual reality) tyre changing programme as a 2 part programme. Part A allows trainees to learn how to safely remove and replace a damaged tyre then rebalance it before putting it back onto the vehicle. Part B is about applying the same skills, knowledge, and competences in a real world garage. Both parts of the programme are backed up by the Our Virtual Garage® workbook which provides access to the underpinning knowledge required to achieve IMI certification. FST is the first organisation to develop an IMI Approved garage training programme offering access to an award that recognises VR competence.

We’re excited to announce the development of a brand new Pre CSCS (Construction Skills Certification Scheme) aimed at helping the people we support overcome some of the barriers to learning involved in gaining a ‘Green Card’. This is essential for working on a construction site. This programme will be an interactive programme that feeds into our VR excavator programme which may be extended to include a wider range of construction vehicles e.g., forklift, dumper truck etc.

The relationship with Halfords, the IMI and the Palmer Foundation is also going well. To date we have now placed 6 FST ‘graduates’ with Halfords, 5 young black men and 1 white woman. We have also supported another 3 young black men to apply for a college place to study for a Level 2 Motor Vehicle Technician or equivalent. Another 3 young men are working towards joining Halfords at a future date.

Developing the accessible training programmes has also enabled us up to open up new training opportunities for the FST workforce and local people. For example we now employ 8 people as trainers delivering our programmes across London. 5 are people with lived experience of mental health problems or other disadvantages.

This includes Laura (workforce member discussed in last year’s report) who is now employed by FST as our Automotive Training and Support Worker following her successful completion of the Level 2 Motor Vehicle Technician. Laura will be providing training for other FST workforce members using our 10 Module programme.

Work is also continuing to develop VR training opportunities in the secure services projects in the North West.

First Step Trust 6

Directors’ report 31 March 2024

ACHIEVEMENTS AND PERFORMANCE (continued)

Achievements in the year (continued)

Across all the projects, we engaged with 454 people during the year, primarily people with mental health problems or other disabilities, with 54% referred through forensic services. 26% being women.

These formed a diverse population with 68% of black or ethnic minority origins. The age distribution indicates that the FST workforce overall continues to represent a relatively young population of people with long term mental health problems with 50% aged 26 to 45. Through our short courses we continue to succeed in engaging more young people with 24% of those attending aged 25 and under.

FST continues to work with those furthest from the labour market: 100% of the total workforce have been unemployed for at least 12 months before joining FST, while 67% have not been employed for over five years including 44% who have never worked at all. A significant number of these are educationally disadvantaged with half of them leaving school without any qualifications. Despite their disadvantage, people are keen to progress towards improving their employability, looking to gain skills, qualifications, and employment opportunities.

Of the 95 workforce members in the projects (45 of whom are in secure units), 48 have a Personal Development Plan with an employment aim, 5 are actively job seeking with 4 submitting job applications. 2 have gained interviews and were successful in obtaining full time paid employment outside of FST. Another has obtained p/time paid employment at FST.

We continue to support 3 people who have left FST and are currently in full time employment and 8 FST employees recruited from the shop floor. In addition, 3 leavers have left to attend college and we are supporting 4 people at college while still attending FST part time.

Total courses attended: 660 of which 438 completed, 89 are currently in progress and 133 were discontinued.

Of these, 116 were formal qualification courses. 100 passes were achieved and 12 are currently in progress.

Areas in which training was undertaken included VR Garage, Catering (incorporating Food Hygiene Level 2 and 3) and Construction, practical motor mechanics, Driving Ambition, Customer Service and Health & Safety.

Thanks to

First Step Trust 7

Directors’ report 31 March 2024

FINANCIAL REVIEW

Financial report for the period

A summary of the results for the year can be found on page 14 of the attached financial statements.

Total income was £1,407,878 (2023 - £1,577,678) of which £1,121,514 (2023 - £1,395,751) was income generated from the various activities outlined in “achievements and performance”.

Total expenditure amounted to £1,278,337 (2023 - £1,224,755). Staff costs, including agency costs, of £746,570 continue to be the largest single item of expenditure and represent 53% of total income (2023 – staff costs were £723,631 and 46% of total income).

The surplus for the year amounted to £129,541 before actuarial gains of £87,961 on the defined benefit pension scheme (2023 - surplus of £352,923 before actuarial gains of £746,268) which generated a positive net movement on funds of £217,502 (2023 positive net movement in funds of £1,099,191).

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 2024 was retained at the level £600,000.

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 £300,000 at 31 March 2024. 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 £2,455,681 at 31 March 2023 has been increased to £2,651,707.

The directors have also considered applying surplus funds in to investments. However, after having taken advice and in view of the continuing uncertainties around market volatility, 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 charity’s sustainability 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 8

Directors’ report 31 March 2024

FINANCIAL REVIEW (continued)

Financial position

The net current asset position at 31 March 2024 of £3.65m is an improvement on the prior year of £3.5m and the charity continues to have a strong working capital base, with £3.5m being held in cash at 31 March 2024 (2023 - £3.6m).

The balance sheet shows total funds of £4,484,346 (2023 - £4,266,844) of which £54,198 is restricted funding (2023 - £23,546) and £4,430,148 is unrestricted which consists of £3,830,148 of designated funding for specific purposes as explained in the reserves policy above (2023 - £3,643,298), and a general fund reserve of £600,000 (unchanged from 2023 of £600,000). Included in general fund reserves is a defined benefit pension scheme liability of £44,732 (2023 - £115,811).

The designated funds include a fixed assets fund of £878,438 (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 £2,651,709, 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 2024 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.

Signed on behalf of the Board of Directors

………………………………………………..

Director: Mohammad Mohtashim Khan

Approved by the board on:

18 December 2024

First Step Trust 9

Independent auditor’s report 31 March 2024

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 2024 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.

First Step Trust 10

Independent auditor’s report 31 March 2024

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.

First Step Trust 11

Independent auditor’s report 31 March 2024

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:

First Step Trust 12

Independent auditor’s report 31 March 2024

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

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

20 December 2024

First Step Trust 13

Statement of financial activities Year to 31 March 2024 (Including Income and Expenditure account)

Notes
Unrestricted
funds
£		 Notes
Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2024
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2023
£
Income from:
Donations and legacies
368
Charitable activities:
. Grant funding
1
—
. Trading activities
1,121,514
Interest receivable
50,193
Other
10,369
Total income
1,182,444
Expenditure on:
Charitable activities
21,083,555
Total expenditure
1,083,555
Net income (expenditure) for the
year
3
98,889
Other recognised gains/(losses):
Actuarial gain on defined benefit
pension scheme
15
87,961
Net movement in funds for the
year
186,850
Fund balances brought forward
at 1 April 2023
4,243,298
Fund balances carried forward
at 31 March 2024
4,430,148		 6,000
219,434
—
—
—		 6,368
219,434
1,121,514
50,193
10,369		 5,312
—
1,395,751
19,416
1,941		 3,000
152,258
—
—
—		 8,312
152,258
1,395,751
19,416
1,941
1,182,444 225,434 1,407,878 1,422,420 155,258 1,577,678
194,782 1,278,337 945,763 278,992 1,224,755
1,083,555 194,782 1,278,337 945,763 278,992 1,224,755
30,652
—		 129,541
87,961		 476,657
746,268		 (123,734)
—		 352,923
746,268
186,850
4,243,298		 30,652
23,546		 217,502
4,266,844		 1,222,925
3,020,373		 (123,734)
147,280		 1,099,191
3,167,653
4,430,148 54,198 4,484,346 4,243,298 23,546 4,266,844

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 14

Balance sheet 31 March 2024

2024 2024 2023 2023
Notes £ £ £ £
Fixed assets
Tangible assets 6 878,438 887,617
Current assets
Debtors 7 325,672 28,594
Short term deposits 1,946,458 1,896,266
Cash at bank and in hand 1,545,229 1,741,397
3,817,359 3,666,257
Current liabilities
Creditors: amounts falling due
within one year 8 8
(166,719)		 (171,219)
Net current assets 3,650,640 3,495,038
Total net assets excluding
pension liability 4,529,078 4,382,655
Defined benefit pension scheme
liability 15 (44,732) (115,811)
Total net assets 4,484,346 4,266,844
The funds of the charity:
Restricted funds 10 54,198 23,546
Unrestricted funds
. Designated funds 11 3,830,148 3,643,298
. General funds 600,000 600,000
4,430,148 4,243,298
Total charity funds 12 4,484,346 4,266,844

Approved by the directors and signed on its behalf by:

Mohammad Mohtashim Khan

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

Approved on: 18 December 2024

First Step Trust 15

Statement of cash flows 31 March 2024

Notes
2024
£		 2023
£
Cash flows from operating activities:
Net cash (used in) / provided by operating activities
A
Cash flows from investing activities:
Investment income
Purchase of tangible fixed assets
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2023
B
Cash and cash equivalents at 31 March 2024
B

**(171,242) **		 412,264


50,193
**(24,927) **		 19,416
(15,940)
25,266 3,476


(145,976)


3,637,663
 415,740
3,221,922

3,491,687		 3,637,663

Notes to the statement of cash flows for the year to 31 March 2024.

A
B		 Reconciliation of net movement in funds to net cash provided by operating activities
2024
£
2023
£
Net movement in funds (as per the statement of financial activities)
217,502
1,099,191
Adjustments for:
Depreciation charge
34,106
32,427
Actuarial (gain) loss on defined benefit pension scheme
(87,961)
(746,268)
Difference between pension charge and cash contributions
10,551
37,137
Defined pension scheme finance cost
6,335
21,793
Interest receivable
(50,193)
(19,416)
(Increase) decrease in debtors
(297,077)
(1,290)
Increase (decrease) in creditors
(4,500)
(11,310)
Net cash(used in) /provided by operating activities
(171,242)
412,264
Analysis of cash and cash equivalents

2024
£
2023
£
Cash at bank and in hand
1,545,229
1,741,397
Short term deposits
1,946,458
1,896,266
Total cash and cash equivalents
3,491,687
3,637,663		 Reconciliation of net movement in funds to net cash provided by operating activities
2024
£
2023
£
Net movement in funds (as per the statement of financial activities)
217,502
1,099,191
Adjustments for:
Depreciation charge
34,106
32,427
Actuarial (gain) loss on defined benefit pension scheme
(87,961)
(746,268)
Difference between pension charge and cash contributions
10,551
37,137
Defined pension scheme finance cost
6,335
21,793
Interest receivable
(50,193)
(19,416)
(Increase) decrease in debtors
(297,077)
(1,290)
Increase (decrease) in creditors
(4,500)
(11,310)
Net cash(used in) /provided by operating activities
(171,242)
412,264
Analysis of cash and cash equivalents

2024
£
2023
£
Cash at bank and in hand
1,545,229
1,741,397
Short term deposits
1,946,458
1,896,266
Total cash and cash equivalents
3,491,687
3,637,663		 Reconciliation of net movement in funds to net cash provided by operating activities
2024
£
2023
£
Net movement in funds (as per the statement of financial activities)
217,502
1,099,191
Adjustments for:
Depreciation charge
34,106
32,427
Actuarial (gain) loss on defined benefit pension scheme
(87,961)
(746,268)
Difference between pension charge and cash contributions
10,551
37,137
Defined pension scheme finance cost
6,335
21,793
Interest receivable
(50,193)
(19,416)
(Increase) decrease in debtors
(297,077)
(1,290)
Increase (decrease) in creditors
(4,500)
(11,310)
Net cash(used in) /provided by operating activities
(171,242)
412,264
Analysis of cash and cash equivalents

2024
£
2023
£
Cash at bank and in hand
1,545,229
1,741,397
Short term deposits
1,946,458
1,896,266
Total cash and cash equivalents
3,491,687
3,637,663
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Actuarial (gain) loss on defined benefit pension scheme
Difference between pension charge and cash contributions
Defined pension scheme finance cost
Interest receivable
(Increase) decrease in debtors
Increase (decrease) in creditors
Net cash(used in) /provided by operating activities		 217,502
34,106
(87,961)
10,551
6,335
(50,193)
(297,077)
**(4,500) **		 1,099,191
32,427
(746,268)
37,137
21,793
(19,416)
(1,290)
(11,310)
**(171,242) ** 412,264
Analysis of cash and cash equivalents
 2024
£		 2023
£
Cash at bank and in hand
Short term deposits
Total cash and cash equivalents		 1,545,229
1,946,458		 1,741,397
1,896,266
3,491,687 3,637,663

First Step Trust 16

Principal accounting policies 31 March 2024

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 2024.

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. The significant estimates and judgments are:

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 depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. The directors estimates of these factors determine the net pension obligation in the balance sheet and the directors obtain professional valuations from qualified actuaries to provide assumptions that reflect historical experience and current trends. For details of assumptions adopted, see note 15.

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 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 17

Principal accounting policies 31 March 2024

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.

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:

First Step Trust 18

Principal accounting policies 31 March 2024

Tangible fixed assets (continued)

25% on cost

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.

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. 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. 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.

First Step Trust 19

Principal accounting policies 31 March 2024

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

Pension costs

Defined benefit pension scheme

The charity operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of the plan assets at the reporting date.

The defined benefit obligation is calculated using the projected unit credit method. Annually the charity engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of the future payments (‘discount rate’).

The fair value of plan assets is measured in accordance with the SORP FRS 102 fair value hierarchy. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as ‘remeasurement of net defined benefit liability’.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises: • the increase in pension benefit liability arising from employee service during the period; and • the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as ‘finance expense’.

Defined contribution pension plans

The charity operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds.

First Step Trust 20

Notes to the financial statements 31 March 2024

1 Grant funding for specific activities

Unrestricted
funds
£
—
—
—		 Restricted
funds
£
144,434
75,000
219,434		 Total
funds
2024
£
144,434
75,000
219,434
UK Government grants
The National Lottery Community Fund
UFi VocTech Trust
2024 Total funds
Unrestricted
funds
£
—
—
—
—		 Restricted
funds
£
57,258
85,000
10,000
152,258		 Total
funds
2023
£
57,258
85,000
10,000
152,258
UK Government grants
The National Lottery Community Fund
UFi VocTech Trust
The National Lottery Community Fund
2023 Total funds

2 Charitable activities

Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2024
£
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 including bad debt recoveries
Governance costs
2024 Total funds
Governance costs include:
Audit fees
2024 Totalgovernance costs		 593,486
6,335
153,310
38,247
24,718
2,556
10,446
6,290
6,762
14,896
147,267
34,106
23,963
3,672		 153,084
—
7,195
2,281
25,425
—
—
—
1,089
—
—
—
8,708
—		 746,570
6,335
160,505
40,528
50,143
2,556
10,446
6,290
7,851
14,896
147,267
34,106
32,671
3,672
1,066,055
14,500		 197,782
—		 1,263,837
14,500
1,080,555 197,782 1,278,337
14,500 14,500 14,500
14,500 14,500 14,500

First Step Trust 21

Notes to the financial statements 31 March 2024

2 Charitable activities (continued)

Comparative year

Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2023
£
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
f
i
l f
Depreciation
Training and development
Other expenses including bad debt recoveries
Governance costs
2023 Total funds
Governance costs include:
Audit fees
2023 Totalgovernance costs		 535,009
21,793
86,581
25,494
25,695
3,506
3,898
4,636
7,613
10,836
162,719
32,427
11,246
1,311		 188,622
—
59,780
649
24,639
—
—
—
3,392
—
—
—
1,910
—		 723,631
21,793
146,361
26,143
50,334
3,506
3,898
4,636
11,005
10,836
162,719
32,427
13,156
1,311
932,763
13,000		 278,992
—		 1,211,755
13,000
945,763 278,992 1,224,755
13,000 — 13,000
13,000 — 13,000

3. Net income for the year

This is stated after charging:

2024
£
746,570
14,500
34,106
21,748
-
1,507		 2023
£
723,631
13,000
32,427
24,200
108,262
1 38
Staff costs (note 4)
Auditor’s remuneration
. Statutory audit services
Depreciation (note 6)
Operating leases – land and buildings
Operatingleases –plant and equipment

First Step Trust 22

Notes to the financial statements 31 March 2024

4. Staff costs including key management personnel and directors’ remuneration and expenses
2024
£
2023
£
Staff costs during the period were as follows:
Wages and salaries
638,651
589,885
Social security costs
56,249
56,196
Other pension costs
51,490
77,550
746,570
723,631		 Staff costs including key management personnel and directors’ remuneration and expenses
2024
£
2023
£
Staff costs during the period were as follows:
Wages and salaries
638,651
589,885
Social security costs
56,249
56,196
Other pension costs
51,490
77,550
746,570
723,631		 Staff costs including key management personnel and directors’ remuneration and expenses
2024
£
2023
£
Staff costs during the period were as follows:
Wages and salaries
638,651
589,885
Social security costs
56,249
56,196
Other pension costs
51,490
77,550
746,570
723,631
Staff costs during the period were as follows:
Wages and salaries
Social security costs
Other pension costs		 638,651
56,249
51,490		 589,885
56,196
77,550
746,570 723,631

Included in wages and salaries is £14,820 of statutory contractual redundancy payment made to one employee (2023 – two employee of £19,716).

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:

2024
Number		 2023
Number
£80,001 - £90,000
£90,001 - £100,000		 1
1		 1
1
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 £33,191 (2023 - £33,468).

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

2024
Number		 2023
Number
Charitable activities 21 21

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 directors received no remuneration.

The number of key management personnel receiving remuneration was 7 (2023: 7). The total remuneration (including employers national insurance and pension contributions) paid to the key management personnel was £421,872 (2023 -£383,485).

Directors’ expenses

No expenses were reimbursed to directors or incurred on their behalf during the year. (2023 – None).

First Step Trust 23

Notes to the financial statements 31 March 2024

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 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for period
On disposals
At 31 March 2024
Net book values
At 31 March 2024
At 31 March 2023		 708,122
13,232
—
407,998

—

—
10,910

11,695

(5,717)		 13,826
—
—		 1,140,856
24,927
(5,717)
721,354
407,998
16,888		 13,826 1,160,066
194,232
14,531
—
48,391

8,160

—
3,702

7,959

(5,717)		 6,914
3,456
—		 253,239
34,106
(5,717)
208,763
56,551
5,944		 10,370 281,628
512,591
351,447
10,944		 3,456 878,438
513,890
359,607
7,208		 6,912 887,617

7. Debtors

2024
£
312,534
13,138
325,672		 2023
£
14,409
14,185
28,594
Trade debtors
Prepayments

8. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2024
£
10,895
8,453
80,817
66,554
166,719		 2023
£
11,649
9,695
84,274
65,601
171,219
Trade creditors
Other creditors
Social security and other taxes
Accruals and deferred income

Included in creditors is £Nil of deferred income relating to funding for services to be delivered in 2024/25 (2023 - £30,000).

First Step Trust 24

Notes to the financial statements 31 March 2024

9. Financial instruments and financial risk management

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

2024
£		 2023
£
3,652,072
56,945
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost		 3,804,221
55,902

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.

10. Restricted funds

In the year 2023/24, restricted funds consisted of:

At
1 April
2023
£		 Income
£		 Expenditure
£
Transfers
£
At
31 March
2024
£
The National Lottery (i)
The National Lottery (ii)
Walcott Foundation
Driving Ambition Donations
The National Lottery (iii)
UFi VocTech Fund
Andy Palmer Foundation		 7,800
50,293
13,750
2,703
5,425
(59,425)
3,000		 —
144,434
—
6,000
-
75,000
—		 —
(165,079)
—
(8,703)
(5,425)
(15,575)
—		 —

—
—
—
—
—
—		 7,800
29,648
13,750
—
—
—
3,000
23,546 225,434 (194,782) — 54,198
At
1 April
2022
£		 Income
£		 Expenditure
£
Transfers
£		 At
31 March
2023
£
The National Lottery (i)
The National Lottery (ii)
Walcott Foundation
Driving Ambition Donations
The National Lottery (iii)
UFi VocTech Fund
Andy Palmer Foundation		 7,800
122,027
13,750
3,703
—
—
—		 —
57,258
—
—
10,000
85,000
3,000		 —
(128,992)
—
(1,000)
(4,575)
(144,425)
—		 —

—
—
—
—
—
—		 7,800
50,293
13,750
2,703
5,425
(59,425)
3,000
147,280 155,258 (278,992) — 23,546

The charity had spent in excess of the income received for the Ufi VocTech project at 31 March 2023. The project was funded in arrears and was conditional on milestones being achieved before funding was released and recognised as income. The charity received funding post year end to cover the deficit of £59,425 and no transfer from general reserves was required

First Step Trust 25

Notes to the financial statements 31 March 2024

10 Restricted funds (continued)

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

Three separate funds are hold for the following projects:

iii) Funding received to assist with cost of living crisis, specifically utility bills.

¨ Walcott Foundation

Funding was provided for residents of Lambeth who are employed by the charity.

These funds represented donations received towards our Driving ambition programme.

This fund was received to develop a garage training programme utilising digital technologies in the provision of adult learning

Funding was for one workforce member to undertake their Motor Vehicle Technician Level 2 college course in September 2023.

First Step Trust 26

Notes to the financial statements 31 March 2024

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
2023
£		 New
designations
and
transfers		 Utilised/
realised
£		 At
31 March
2024
£
Fixed assets fund
New building fund
Project support fund		 887,617
2,455,681
300,000		 24,929
196,026
—		 (34,106)
—
—		 878,440
2,651,707
300,000
3,643,298 220,955 (34,106) 3,830,147

¨ 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 At
1 April
2022
£		 New
designations
and
transfers		 Utilised/
realised
£		 At
31 March
2023
£
Fixed assets fund
New building fund
Project support fund		 904,104
1,216,269
300,000		 15,940
1,239,412
—		 (32,427)
—
—		 887,617
2,455,681
300,000
2,420,373 1,255,352 (32,427) 3,643,298

First Step Trust 27

Notes to the financial statements 31 March 2024

12. Analysis of net assets between funds General
fund
£
 Designated
funds
£
 Restricted
funds
£		 Total
2024
£
Fund balances at 31 March 2024
are represented by:
Tangible fixed assets
Current assets
Current liabilities
Total net assets before non-current
liabilities and pension liabilities
Pension liability
Total net assets		 —
811,451
(166,719)		 878,438
2,951,710
—		 —
54,198
-		 878,438
3,817,359
(166,719)
644,732
(44,732)		 3,830,148

—		 54,198
—		 4,529,078
(44,732)
600,000 3,830,148 54,198 4,484,346
Comparatives: General
fund
£
 Designated
funds
£
 Restricted
funds
£		 Total
2023
£
Fund balances at 31 March 2023
are represented by:
Tangible fixed assets
Current assets
Current liabilities
Total net assets before non-current
liabilities and pension liabilities
Pension liability
Total net assets		 —
887,030
(171,219)		 887,617
2,755,681
—		 —
23,546
—		 887,617
3,666,257
(171,219)
715,811
(115,811)		 3,643,298

—		 23,546
—		 4,382,655
(115,811)
600,000 3,643,298 23,546 4,266,844

13. Related party transactions

There were no related party transactions undertaken during the year (2023: £nil).

14. 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 £5,000,000 (2023 - £5,000,000) and the total premium paid in respect of such insurance was £963 (2023 - £660).

First Step Trust 28

Notes to the financial statements 31 March 2024

15. 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 £33,191 (2023 - £33,468). The best estimate of contributions to be paid by the employer for the year beginning 1 April 2024 is £33,191

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 last comprehensive actuarial valuation was at 31 March 2022.

In order to assess the actuarial value of the charity’s assets and liabilities at 31 March 2024; the actuaries have rolled forward the actuarial value of the assets and liabilities at 31 March 2022. The major assumptions used by the actuary were (in nominal terms):

2024
% per
annum

2023
% per
annum
2.95%
3.95%
2.95%
4.80%
CPI increases
Rate of increase in salaries
Rate of increase for pensions
Discount rate for liabilities		 3.00%
4.00%
3.00%
4.85%

The mortality assumptions adopted at 31 March 2023 have been provided by the actuary and assume the following life expectancies:

First Step Trust 29

Notes to the financial statements 31 March 2024

15 Pension scheme (continued)

The estimated asset allocation of the whole fund as at 31 March 2024 is as follows:

31 March 2024

£’000
%
1,151
54%
491
23%
207
10%
45
2%
253
12%
2,147
100%		 31 March 2024

£’000
%
1,151
54%
491
23%
207
10%
45
2%
253
12%
2,147
100%		 31 March 2023

£’000
%

1,047
53%

449
23%

197
10%

34
2%

247
12%

1,974
100%
UK equities
Other bonds
Property
Cash
UK and overseas unit trusts		 54%
23%
10%
2%
12%
1,047

449

197

34

247
100%
1,974

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

Fair value of scheme
assets
Present value of scheme
liabilities
Deficit in scheme		 31
March
2024
£’000

2,146
(2,191)		 31
March
2023
£’000

1,974
(2,090)
31
March
2022
£’000

2,113
(2,916)		 31
March
2021
£’000

1,934
(2,865)



31
March
2020
£’000

1,525
(2,295)



31
March
2019
£’000

1,710

(2,516)
(45)
(116)
(803)		 (931) (770) (806)

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

Year
ended
31 March
2024
£’000
Year
ended
31 March
2023
£’000
(803)
(71)
34
(22)
746
(116)
Movement in deficit during the year
Deficit in scheme at 1 April
Movement in year:
. Current service cost
. Employer contributions
. Net finance charge and administration costs
. Actuarial gain
Deficit in scheme at 31 March
(116)

(44)
33
(6)
88
**(45) **

First Step Trust 30

Notes to the financial statements 31 March 2024

15 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
2024
£’000		 Year
ended
31 March
2023
£’000
Scheme liabilities at start of period
Current service cost
Interest cost
Contributions by scheme participants
Estimated benefits paid
Change in actuarial assumptions
Scheme liabilities at end ofperiod		 2,090
44
100
18
(29)
(32)		 2,915
71
75
18
(89)
(900)
2,191 2,090

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
2024
£’000		 Year
ended
31
March
2023
£’000
2,112
54
(110)
(44)
1
(89)
34
16
1,974
Fair value of scheme assets at start of period
Interest on assets
Return on assets less interest
Other actuarial (losses)
Administration expenses
Estimated benefits paid
Contributions by employer
Contributions by scheme participants
Fair value of scheme assets at end ofperiod		 1,974
95
58
—
(2)
(29)
33
18
2,147

First Step Trust 31

Notes to the financial statements 31 March 2024

15 Pension scheme (continued)

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

2024
£’000		 2023
£’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		 44 71
44 71
5
2		 21
1
7 22
51 93
58
30		 (110)
856
88 746

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 +£44,000/-£42,000
Salaries Decrease/increase by 0.1% pa +£43,000/-£43,000
Pension Decrease/increase by 0.1% pa +£44,000/-£42,000
Rate of mortality 1year increase/decrease in life expectancy+£45,000/-£42,000

First Step Trust 32