2023-08-31-accounts - Step By Step School Limited

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REGISTERED COMPANY NUMBER: 04305048 (England and Wales) REGISTERED CHARITY NUMBER: 1091258

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

FOR

STEP BY STEP SCHOOL LIMITED

WBD Accountants Limited Statutory Auditor Marlbridge House Enterprise Way Edenbridge Kent TN8 6HF

STEP BY STEP SCHOOL LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 AUGUST 2023

	Page
Report of the Trustees	1 to 5
Statement of Trustees' Responsibilities	6
Report of the Independent Auditors	7 to 10
Statement of Financial Activities	11
Balance Sheet	12
Cash Flow Statement	13
Notes to the Cash Flow Statement	14
Notes to the Financial Statements	15 to 25

STEP BY STEP SCHOOL LIMITED (REGISTERED NUMBER: 04305048)

REPORT OF THE TRUSTEES for the Year Ended 31 AUGUST 2023

The Trustees of the charity who are also Directors are pleased to present their annual report together with the financial statements of the charity for the year ending 31 August 2023, which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102, effective 1 January 2015).

OBJECTIVES AND ACTIVITIES Objectives and aims

The primary activity of the charity is to run Step by Step School, an independent special day school. The School aims to offer an exceptional provision for pupils with autistic spectrum conditions, ranging in age from 4-19, through the delivery of individually tailored teaching programs. All the children have Education, Health and Care Plans (EHCPs).

The School has developed a high degree of expertise in teaching children and young people with autism. The public benefit of the charity is to provide specialist education in the region for children who are moderately to severely affected by autism. The School also provides advice to parents (pupils and non-pupils) to help them overcome the challenges of having a child or young person at home with autism.

The mission of the charity is to maximise the potential of pupils with Autistic Spectrum Conditions (ASCs) through evidence based, individually tailored, outstanding teaching to enable them to thrive and live happy, confident lives.

The overall goals of the charity are as follows:-

To develop in each pupil the skills they need to achieve as high a standard of independence as possible.
To enable pupils to express choice, exercise control over themselves and their environment and achieve their full potential.
To provide a highly modified curriculum differentiated to meet the individual needs of each pupil through an appropriately broad and balanced programme of education.
To ensure the acquisition of appropriate communication skills for active participation in day-to-day experiences and to enhance pupils' social and emotional growth.
To monitor and record progress regularly and consistently, ensuring that pupils are appropriately challenged in order to maximise personal development and enhance quality of life.
To nurture and encourage the development of positive, caring relationships between pupils, their peers and the staff.
To create a secure environment within which the pupils develop a sense of confidence and self-esteem.
To build working partnerships with parents/carers in order to promote confidence and develop mutual support and consistency between home and School.
To co-operate positively with other professionals and specialist services so all of the pupils' needs are addressed.
To encourage interaction between School and the local community to promote inclusive opportunities.
To provide training and support to our staff, to ensure that they are competent and confident in their roles and to promote their professional development.
To maintain our position at the forefront of knowledge in the education of children with autism.

Step by Step School is committed to safeguarding and promoting the welfare of children and young people, and expects all staff and volunteers to share this commitment.

Page 1

STEP BY STEP SCHOOL LIMITED (REGISTERED NUMBER: 04305048)

REPORT OF THE TRUSTEES for the Year Ended 31 AUGUST 2023

STRATEGIC REPORT Achievement and performance

Charitable activities

The Trustees consider that the School has continued to develop in line with the objectives of the charity during 2022-2023, and would like to highlight the following developments:-

The school received and 'outstanding' Ofsted judgement in all areas in October 2022
The School has a rigorous and robust pupil progress data system that is shared with Governors. During the 2022-2023 academic year, 97% of pupils made good or outstanding progress. The School uses a basket of measures to track progress and these are reported to Governors termly, alongside a more detailed progress report annually.
The School continued to work with a School Improvement Partner (SIP), who provides independent scrutiny of the School across the areas in the OFSTED framework and in meeting the Independent School Standards. The SIP reports directly to the Board of Trustees following each visit. There are 3 visits a year.
Demand for places at Step by Step School continued to be strong. We had 33 pupils on roll at the end of the academic year 2022/23 and received over 50 consultation papers from Local Authorities for placement.
At the end of the academic year 2022/23 we had 70 members of staff including 5 Qualified Teachers, 5 Board Certified Behaviour Analysts, 2 Occupational Therapists and 2 Speech and Language Therapists. Middle leader training was undertaken to prepare staff for promotions.
A role and training needs analysis was completed for Phase 1 of our work on organisational behaviour management
During the academic year, the School funded 1 member of staff in undertaking a PhD, 2 with their ABA masters. The school has a rolling programme of training and development for all staff. Continuing professional development is a key priority for the School.
The Head Teacher supported 4 other schools as a School Improvement Partner, all of which received either a good or outstanding Ofsted judgment
The School has 2 members of staff that are trained to deliver the positive behaviour strategy, 'Team Teach'.
The School operates a robust staff appraisal system. Staff join the appraisal cycle following successful completion of their probation. There were 131 targets set across 52 staff during the year, of which 112 were achieved, 13 were partially achieved, 6 not achieved.
A new electronic platform, Bluesky was introduced to align staff appraisal within the quality assurance framework for teaching and Learning
The School opened a new library facility during the Autumn Term of 2022, using fund-raised money to provide the resources for this
A priority in teaching and learning throughout the year was embedding frequent practice of targets so our pupils are able to maximise their learning opportunities
Three deep dives were presented to the Teaching and Learning committee on Physical Development, Paired Group work and Communication Passports.
A new sensory shelter was opened in the summer of 2023 as well as improving play facilities for the primary pupils with a replacement swing chair
The school hosted a successful numeracy conference and purchased new equipment to assist pupils with their understanding of numeracy
Core academic subject trackers in literacy, numeracy and PSHE were devised

Page 2

STEP BY STEP SCHOOL LIMITED (REGISTERED NUMBER: 04305048)

REPORT OF THE TRUSTEES for the Year Ended 31 AUGUST 2023

The school now offers an Arts Award accreditation, following the successful training of a member of staff as the lead
Behaviour plans for all pupils were evaluated leading to a new format ensuring consistency and inclusion of pupil's risk assessments
Every pupil now has a communication passport to enhance communication both within and beyond school
The school worked with an external agency, Triangle Services for children to develop pupils and staff understanding of safeguarding measures

Financial review

Principal funding sources

The principal source of income for the School is fees paid by Local Authorities. The Trustees are aware that offering good value for money is paramount when operating in the current economic climate and are committed to continuing to provide that. We apply as much fee income as possible to the benefit of the pupils attending the School.

We had significant success with fundraising during 2022/23 and raised a total of £13,130 of unrestricted funds and £4,990 of restricted funds.

The Trustees would like to thank all the charities, companies, clubs, organisations and individuals who supported us during 2022/23 both financially and otherwise, and in particular, would like to thank the following donors:-

East Grinstead Rugby Football Club - Sunshine Sevens
Peddu family
Woodman family
South East Water
Greenstede Lodge
Sussex Masonic Charities
NHS Retirement Fellowship
Pupils, Parents, Staff and Governors of our school for various fundraising efforts

Reserves policy

The Trustees have a policy (last updated on 24th November 2014) that the Free Reserves held by the charity should equal at least three months of projected Total Resources Expended. The Trustees define Free Reserves as unrestricted funds not invested in tangible fixed assets, not yet committed or designated for a specific purpose, and excluding liabilities falling due after more than one year (eg non-current portion of debt). At this level of Free Reserves, the Trustees consider that the charity would be able to continue operating in the event of a significant drop in incoming resources.

At the end of August 2023, the Free Reserves amounted to £836,376 equal to 4 months of projected Total Resources Expended for 2023/24, a level which is considered acceptable by the Trustees.

Financial and risk management objectives and policies Key Indicators of Financial Performance

School fee income in 2022/23 decreased by 3% vs prior year. Total resources expended increased by 3%. vs prior year.

The charity has a fixed rate loan from NatWest to fund part of the capital expenditure for the Susan James Wing and at end of August 2023 had a loan outstanding of £216,816.

Risk Management

The Trustees regularly review the risks to which the charity is exposed to ensure appropriate controls are in place and to provide reasonable assurance against fraud and error. The risks associated with running Step by Step School are both operational and strategic. Operational risks are managed on a day to day basis by the Head Teacher and the staff, whilst the strategic risks, being mainly legal and financial, are managed by the Board on a periodic basis through Board meetings, where budget monitoring is a standing item. The charity holds the appropriate level of insurance against fire and perils, liability and professional indemnity.

Page 3

STEP BY STEP SCHOOL LIMITED (REGISTERED NUMBER: 04305048)

REPORT OF THE TRUSTEES for the Year Ended 31 AUGUST 2023

STRATEGIC REPORT

Future plans

The School is registered for 40 pupils following a Department for Education Ofsted Material Change Inspection in July 2021. The Trustees intend to expand the School gradually, whilst maintaining the quality of the provision at a very high level.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing documents, a deed of trust, and constitutes a limited company limited by guarantee, as defined by the Companies Act 1985.

Recruitment and appointment of new trustees

There are two types of Trustees: Parent and Independent. The authorised number of Trustees is nine made up of two Parent Trustees and seven Independent Trustees. The Parent Trustees are decided by a vote amongst the current parents and the Independent Trustees are recruited through personal recommendations and through on-line platforms such as Inspiring Governance.

Organisational structure

All Directors of the company are also Trustees of the charity and there are no other Trustees. The Trustees serving are noted below. Each Trustee is also a School Governor.

Decision making

The Governors meet as a full Board and as two Board committees: Teaching & Learning and HR & Finance. All key decisions require approval at the full Board. Individual Governors take on preparatory work in advance of a Board meeting, for example reviewing certain school policies assigned to them. Governors visit the School during the day 2-3 times a year to monitor progress within a focused area of the School Improvement Plan as part of a Quality Assurance cycle. A professional Clerk supports the work of the Governors.

The Governing Board also includes the Head Teacher and a Staff Governor voted by staff. The Head Teacher and the Staff Governor are not Trustees nor Company Directors.

Day to day management of the School is delegated to the Head Teacher, who reports to the Chair of the Board. The distinction between the operational and strategic roles is clear and is reinforced through Trustee induction and ongoing training.

Induction and training of new trustees

All Trustees are subject to an enhanced DBS check and are required to undertake training in Safeguarding/Child Protection and the role of a School Governor. All Trustees also receive induction training (including gaining an appreciation of all policies and procedures of the School) from the Head Teacher and the Chair of the Board. After induction, Trustees are provided with both ongoing individual and group training sessions, delivered on-line and by outside trainers.

Each Trustee is formally appointed for a four year term at the Annual General Meeting of the Members of the charity which usually takes place during the first quarter of each calendar year. Should a vacancy arise during the year, the Board has the power to co-opt a new Trustee for an interim period until the next AGM.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

04305048 (England and Wales)

Registered Charity number

1091258

Page 4

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STEP BY STEP SCHOOL LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

for the Year Ended 31 AUGUST 2023

The trustees (who are also the directors of Step By Step School Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF STEP BY STEP SCHOOL LIMITED

Opinion

We have audited the financial statements of Step By Step School Limited (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF STEP BY STEP SCHOOL LIMITED

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 Report of the Trustees.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

Responsibilities of trustees

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

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

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF STEP BY STEP SCHOOL LIMITED

Our 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the compliance with the education, health and safety and various legislation governing safeguarding children and we considered the extent to which non compliance might have a material effect on the financial statements of the company.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Companies Act 2006.

In addition, we considered provisions of other laws and regulations that do not have a direct impact on financial statements but compliance with which may be fundamental to the company's ability to operate or avoid a material penalty. These include data protection and employment.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls and determined that the principal risks were related to revenue recognition, posting inappropriate journal entries and management bias in accounting estimates and judgement areas of the financial statements such as accruals and carrying value of fixed assets.

Audit procedures performed by the engagement team included:

Discussions with management and review of third party reports, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Understanding of the management's internal controls designed to prevent and detect irregularities
Reviewing relevant meeting minutes.
System walk-trough tests used to develop an in depth understanding of the entity's control environment, however minimal reliance is placed on control within the audit approach. Substantive test of detail carried out, with a broad scope, in order to explore all aspects of revenue recognition.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher that the risk of not detecting one resulting from error as fraud may involve deliberate concealment, by for example, forgery or international misrepresentation or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 9

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STEP BY STEP SCHOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 AUGUST 2023

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 5 School running Other trading activities 3 Investment income 4 Total EXPENDITURE ON Raising funds 6 Charitable activities 7 School running Support costs Total NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted Funds £ 14,808 2,200,779 19,074 25,454 2,260,115 4,841 2,146,218 26,505 2,177,564 82,551 1,806,734 1,889,285	Restricted Funds £ 4,990 - - - 4,990 - 21,965 - 21,965 (16,975) 188,664 171,689	31.8.23 Total funds £ 19,798 2,200,779 19,074 25,454 2,265,105 4,841 2,168,183 26,505 2,199,529 65,576 1,995,398 2,060,974	31.8.22 Total funds £ 51,994 2,267,011 5,859 7,803 2,332,667 3,323 2,107,151 28,656 2,139,130 193,537 1,801,861 1,995,398

The notes form part of these financial statements

Page 11

SI'EP B Y STb.P.%CIIOOL LI.NIII'F.D IRF'.GI.%'I'Tr-.R Tr-.I) N LiMBb'R: 0440i048) BAliglNC.b. SIIEET -1 l ¥lL.GLST 21b2.1 -11.8.27 Total 31.8.?2 Toial Lnicill'iclcd Rcsiricied FIIED ASSTr;"I'S 'I'angible asseis 1,219,756 170,682 ,3C)0,438 I,i07,N95 CURRF'.NI- AS8Tr-.'I"S StoLks DLbtur5 Cdsh at baiik and in hand 184 184 35,7n9 920.6x3 4.)4 ?7,41 () 766,770 919,675 1,008 955.568 1,008 956.576 7Y4.()40 CREDITORS -Iniou2its fallittLJ due lI]lln onc ycai. 16 193.6921 193,69?) 189,8) I I NF.I' C'LRII&'N'I' A.SSF'.TS 8CIl,876 1,008 S62,8X4 704,789 I'()'I'AI. .45%Tr:'I'S I.I,'.S,S C.'U RRENI. 2.0¥1.632 171,690 ? ?53,32? ??1?,384 C.RF'.DI-I'()R Aiii()iintN fJlliTig due after Tllul-e than one year {192.3481 119?.3481 1216,986) NET ASSF.I'S 1889,284 171,690 2,0C)0,974 1,99£ 398 FITS 'iii-i%li-Itted fund Re%iricted fund 1,889,?84 171,690 1,806,734 188,664 TOI'.41. TrLNDS ? 1160,974 I C)95 39, I'hi linancial statcmcnis w¢re appynvcd hy ihc Eli)ard of -I'iu8tecs and auilioi.lsed f()I' issue on 27 February 20?4 and ¥'crc iigncd i)ii its l)ehall' by.. C Jaiiits 'I'i'ustee Tl)e niJtc% loiiii part ol-lliesc finaiiLial staienieiits ljagc 12

STEP BY STEP SCHOOL LIMITED

CASH FLOW STATEMENT for the Year Ended 31 AUGUST 2023

Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Interest received Net cash used in investing activities Cash flows from financing activities Loan repayments in year Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	31.8.23 £ 178,842 178,842 (26,773) 25,454 (1,319) (23,610) (23,610) 153,913 766,770 920,683	31.8.22 £ 289,621 289,621 (64,450) 7,803 (56,647) (29,573) (29,573) 203,401 563,369 766,770

The notes form part of these financial statements

Page 13

STEP BY STEP SCHOOL LIMITED

NOTES TO THE CASH FLOW STATEMENT for the Year Ended 31 AUGUST 2023

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM	OPERATING ACTIVITIES	OPERATING ACTIVITIES
	31.8.23	31.8.22
	£	£
Net income for the reporting period (as per the Statement of Financial
Activities)	65,576	193,537
Adjustments for:
Depreciation charges	143,761	146,258
Loss on disposal of fixed assets	169	128
Interest received	(25,454)	(7,803)
Decrease in stocks	270	447
Increase in debtors	(8,293)	(4,725)
Increase/(decrease) in creditors	2,813	(38,221)
Net cash provided by operations	178,842	289,621

2. ANALYSIS OF CHANGES IN NET FUNDS

	At 1.9.22	Cash flow	At 31.8.23
	£	£	£
Net cash
Cash at bank and in hand	766,770	153,913	920,683
	766,770	153,913	920,683
Debt
Debts falling due within 1 year	(23,440)	(1,028)	(24,468)
Debts falling due after 1 year	(216,986)	24,638	(192,348)
	(240,426)	23,610	(216,816)
Total	526,344	177,523	703,867

The notes form part of these financial statements

Page 14

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 AUGUST 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

Depreciation is provided on the following basis:

Improvements to property - in accordance with the property Fixtures and fittings - 33%, 25%, 20% and 12.5% on cost Motor vehicles - 25% on cost

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement..

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 15

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STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

1. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Government grants

Government grants are recognised under the accrual model.

Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Government grants include Coronavirus (COVID-19) National Testing Programme and Teachers' Pension Employer Contribution Grant

2. DONATIONS AND LEGACIES

2.	DONATIONS AND LEGACIES
		31.8.23	31.8.22
		£	£
	Donations	18,120	22,927
	Grants	1,678	29,067
		19,798	51,994
	Grants received, included in the above, are as follows:
		31.8.23	31.8.22
		£	£
	COVID grant	1,678	29,067
3.	OTHER TRADING ACTIVITIES
		31.8.23	31.8.22
		£	£
	School uniform sales	278	683
	Other income	18,796	5,176
		19,074	5,859
4.	INVESTMENT INCOME
		31.8.23	31.8.22
		£	£
	Deposit account interest	25,454	7,803

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STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

5. INCOME FROM CHARITABLE ACTIVITIES

Activity School fees School running 6. RAISING FUNDS Raising donations and legacies Marketing Fundraising fees Other trading activities Opening stock Purchases Closing stock Aggregate amounts 7. CHARITABLE ACTIVITIES COSTS School running Support costs	Direct Costs £ 2,168,183 - 2,168,183	31.8.23 £ 2,200,779 31.8.23 £ 4,301 270 4,571 31.8.23 £ 454 - (184) 270 4,841 Support costs (see note 8) £ - 26,505 26,505	31.8.22 £ 2,267,011 31.8.22 £ 2,672 - 2,672 31.8.22 £ 901 204 (454) 651 3,323 Totals £ 2,168,183 26,505 2,194,688

continued...

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STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

8. SUPPORT COSTS

SUPPORT COSTS
		Governance
		costs
		£
Support costs		26,505
	31.8.23	31.8.22
Governance costs	£	£
Auditors' remuneration	6,703	6,600
Auditors' remuneration for non audit work	4,044	3,390
Legal and professional fees	13,781	16,256
Clerk to the Governors	1,219	1,877
Governor training	383	432
Governor meeting cost	375	101
	26,505	28,656

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration Other non-audit services Depreciation - owned assets Other operating leases Deficit on disposal of fixed assets	31.8.23 £ 6,703 4,044 143,761 71,474 169	31.8.22 £ 6,600 3,390 146,258 89,434 128

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2023 nor for the year ended 31 August 2022.

Trustees' expenses

Trustees' expenses totalling £375 was paid for the year ended 31 August 2023 and £121 for the year ended 31 August 2022.

continued...

Page 18

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

11. STAFF COSTS

11.	STAFF COSTS
			31.8.23		31.8.22
			£		£
	Wages and salaries		1,488,081		1,431,039
	Social security costs		116,206		106,860
	Other pension costs		91,589		84,707
			1,695,876		1,622,606
	The average monthly number of employees during the year was as follows:
			31.8.23		31.8.22
	Teaching and SALT staff		61		64
	Administration staff		4		4
	Driver		1		1
			66		69
	The number of employees whose employee benefits (excluding employer pension costs) exceeded				£60,000 was:
			31.8.23		31.8.22
	£70,001 - £80,000		-		1
	£80,001 - £90,000		1		-
			1		1
12.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
		Unrestricted	Restricted		Total
		Funds	Funds		funds
		£	£		£
	INCOME AND ENDOWMENTS FROM
	Donations and legacies	50,970	1,024		51,994
	Charitable activities
	School running	2,267,011		-	2,267,011
	Other trading activities	5,859		-	5,859
	Investment income	7,803		-	7,803
	Total	2,331,643	1,024		2,332,667
	EXPENDITURE ON
	Raising funds	3,323		-	3,323
	Charitable activities
	School running	2,086,367	20,784		2,107,151
	Support costs	28,656		-	28,656
	Total	2,118,346	20,784		2,139,130
	NET INCOME/(EXPENDITURE)	213,297	(19,760)		193,537

continued...

Page 19

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Funds £ RECONCILIATION OF FUNDS Total funds brought forward 1,593,438 TOTAL FUNDS CARRIED FORWARD 1,806,735 13. TANGIBLE FIXED ASSETS Improvements Fixtures to and property fittings £ £ COST At 1 September 2022 1,922,941 568,591 Additions 8,393 18,380 Disposals - (23,846) At 31 August 2023 1,931,334 563,125 DEPRECIATION At 1 September 2022 527,814 456,564 Charge for year 96,270 47,050 Eliminated on disposal - (23,677) At 31 August 2023 624,084 479,937 NET BOOK VALUE At 31 August 2023 1,307,250 83,188 At 31 August 2022 1,395,127 112,027 14. STOCKS Stocks 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income	12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Funds £ RECONCILIATION OF FUNDS Total funds brought forward 1,593,438 TOTAL FUNDS CARRIED FORWARD 1,806,735 13. TANGIBLE FIXED ASSETS Improvements Fixtures to and property fittings £ £ COST At 1 September 2022 1,922,941 568,591 Additions 8,393 18,380 Disposals - (23,846) At 31 August 2023 1,931,334 563,125 DEPRECIATION At 1 September 2022 527,814 456,564 Charge for year 96,270 47,050 Eliminated on disposal - (23,677) At 31 August 2023 624,084 479,937 NET BOOK VALUE At 31 August 2023 1,307,250 83,188 At 31 August 2022 1,395,127 112,027 14. STOCKS Stocks 15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income	- continued Restricted Funds £ 208,423 188,663 Motor vehicles £ 80,899 - - 80,899 80,458 441 - 80,899 - 441 31.8.23 £ 184 31.8.23 £ 125 6,955 28,629 35,709		Total funds £ 1,801,861 1,995,398 Totals £ 2,572,431 26,773 (23,846) 2,575,358 1,064,836 143,761 (23,677) 1,184,920 1,390,438 1,507,595 31.8.22 £ 454 31.8.22 £ - 866 26,550 27,416

continued...

Page 20

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.23
£
Bank loans and overdrafts (see note 18)
24,468
Trade creditors
13,674
Social security and other taxes
21,375
Other creditors
7,679
Accruals and deferred income
26,496
93,692
17.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.8.23
£
Bank loans (see note 18)
192,348
18.
LOANS
An analysis of the maturity of loans is given below:
31.8.23
£
Amounts falling due within one year on demand:
Bank loans
24,468
Amounts falling between one and two years:
Bank loans - 1-2 years
25,493
Amounts falling due between two and five years:
Bank loans - 2-5 years
83,410
Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
83,445
19.
LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
31.8.23
£
Within one year
68,958
Between one and five years
233,926
In more than five years
133,782
436,666

31.8.22
£
23,440
3,996
23,523
7,480
31,412
89,851
31.8.22
£
216,986
31.8.22
£
23,440
24,409
79,862
112,715
31.8.22
£
69,113
248,937
189,577
507,627

continued...

Page 21

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

20. SECURED DEBTS

The following secured debts are included within creditors:

	31.8.23	31.8.22
	£	£
Bank loans	216,816	240,426

The charity has a pensions guarantee of £18,000 and a NatWest cash security for credit cards of £7,500.

There is a charge over cash deposit with no security limited by Natwest Bank plc and a debenture over all the assets of the company also held by NatWest Bank plc.

21. MOVEMENT IN FUNDS

Unrestricted funds General fund Site Development Restricted funds DET Outdoor learning areas Susan James Wing Yurt and forest area Forest seating area Pupils resources Forest School Sensory Shelter TOTAL FUNDS	At 1.9.22 £ 1,684,303 122,431 1,806,734 27,981 155,386 3,500 700 468 629 - 188,664 1,995,398	Net movement in funds £ 95,668 (13,118) 82,550 (12,216) (6,611) (1,200) (240) - (405) 3,698 (16,974) 65,576	At 31.8.23 £ 1,779,971 109,313 1,889,284 15,765 148,775 2,300 460 468 224 3,698 171,690 2,060,974

continued...

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STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

21. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds General fund Site Development Restricted funds Other Equipment DET Outdoor learning areas Susan James Wing Yurt and forest area Forest seating area Forest School Sensory Shelter TOTAL FUNDS	Incoming resources £ 2,260,115 - 2,260,115 720 (1) - - - - 4,271 4,990 2,265,105	Resources expended £ (2,164,447) (13,118) (2,177,565) (720) (12,215) (6,611) (1,200) (240) (405) (573) (21,964) (2,199,529)	Movement in funds £ 95,668 (13,118) 82,550 - (12,216) (6,611) (1,200) (240) (405) 3,698 (16,974) 65,576

Comparatives for movement in funds

Unrestricted funds General fund Site Development Restricted funds Other Equipment Musical Instruments Wooden Spoon outside classroom DET Outdoor learning areas Susan James Wing Yurt and forest area Forest seating area Pupils resources Forest School TOTAL FUNDS	At 1.9.21 £ 1,457,889 135,549 1,593,438 23 25 833 39,241 162,074 4,700 940 587 - 208,423 1,801,861	Net movement in funds £ 226,414 (13,118) 213,296 (23) (25) (833) (11,260) (6,688) (1,200) (240) (119) 629 (19,759) 193,537	At 31.8.22 £ 1,684,303 122,431 1,806,734 - - - 27,981 155,386 3,500 700 468 629 188,664 1,995,398

continued...

Page 23

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

21. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund Site Development Restricted funds Other Equipment Musical Instruments Wooden Spoon outside classroom DET Outdoor learning areas Susan James Wing Yurt and forest area Forest seating area Pupils resources Forest School TOTAL FUNDS	Incoming resources £ 2,331,643 - 2,331,643 - - - 1 - - - 289 734 1,024 2,332,667	Resources expended £ (2,105,229) (13,118) (2,118,347) (23) (25) (833) (11,261) (6,688) (1,200) (240) (408) (105) (20,783) (2,139,130)	Movement in funds £ 226,414 (13,118) 213,296 (23) (25) (833) (11,260) (6,688) (1,200) (240) (119) 629 (19,759) 193,537

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds General fund Site Development Restricted funds Other Equipment Musical Instruments Wooden Spoon outside classroom DET Outdoor learning areas Susan James Wing Yurt and forest area Forest seating area Pupils resources Forest School Sensory Shelter TOTAL FUNDS	At 1.9.21 £ 1,457,889 135,549 1,593,438 23 25 833 39,241 162,074 4,700 940 587 - - 208,423 1,801,861	Net movement in funds £ 322,082 (26,236) 295,846 (23) (25) (833) (23,476) (13,299) (2,400) (480) (119) 224 3,698 (36,733) 259,113	At 31.8.23 £ 1,779,971 109,313 1,889,284 - - - 15,765 148,775 2,300 460 468 224 3,698 171,690 2,060,974

continued...

Page 24

STEP BY STEP SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 AUGUST 2023

21. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds General fund Site Development Restricted funds Other Equipment Musical Instruments Wooden Spoon outside classroom DET Outdoor learning areas Susan James Wing Yurt and forest area Forest seating area Pupils resources Forest School Sensory Shelter TOTAL FUNDS	Incoming resources £ 4,591,758 - 4,591,758 720 - - - - - - 289 734 4,271 6,014 4,597,772	Resources expended £ (4,269,676) (26,236) (4,295,912) (743) (25) (833) (23,476) (13,299) (2,400) (480) (408) (510) (573) (42,747) (4,338,659)	Movement in funds £ 322,082 (26,236) 295,846 (23) (25) (833) (23,476) (13,299) (2,400) (480) (119) 224 3,698 (36,733) 259,113

22. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2023.

Page 25