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2022-05-31-accounts

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

Charity Registration No. 1150651

Company Registration No. 08353635 (England and Wales)

SMALL STEPS SFP

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2022

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Samuelson
T Theobalds
J Brotherstone MBE
M Kelly
T Halfhide
A Tufano
R Sarson
D Challinor
E Chadd
C Lort-Philips (Appointed 27 January 2022)
Charity number 1150651
Company number 08353635
Registered office and principal office 17-19 Worple Way
Richmond
TW10 6DG
Auditor Citroen Wells
Chartered Accountants
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
ME19 4JQ

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

CONTENTS

Page
Trustees' report 1 - 7
Statement of Trustees' responsibilities 8
Independent auditor's report 9 - 11
Statement of financial activities 12
Statement of financial position 13
Statement of cash flows 14
Notes to the financial statements 15 - 25

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MAY 2022

The Trustees present their annual report and financial statements for the year ended 31 May 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's articles of association, the Companies Act 2006 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 2019)".

Key Points:

This has been a much better year for Small Steps, though not without its challenges. The year started with a reduced presence in the building with most staff still on part time furlough, and ended with leader/supporter partnerships re-established and increased group capacity back to our previous levels. There is an excellent ‘allhands on deck’ positive morale with the ethos of Conductive Education remaining a core value to our group work. We have coped with the disruption of a number of staff changes plus the refurbishment of the Lower Ground Floor (LGF), which has extended the beautifully fit-for-purpose building from two to three floors, unified by a second atrium. We also negotiated the Omicron variant and Small Steps has now successfully completed its first full year in its Worple Way home and is looking forward to an exciting year ahead. We are lucky to have had the consistency and dedication of leadership and as our inspirational Head of Small Steps commented “The light, bright, vibrant environment, with a great staff team, putting families first and staying positively orange is joyful.”.

Objectives and activities

The charity has only one category of charitable activity as defined by its objective: the relief of need and advancement of education of children who have cerebral palsy or other motor and sensory impairment, and their families, through the provision of classes, activities and advice in a supportive environment. The charity operates from 17-19 Worple Way, Richmond, TW10 6DG (Worple Way).

Traditionally, children are invited to a regular session throughout the academic year, accompanied by a parent or carer, thereby enabling parents/carers to acquire new skills. These can be repeated to assist each child at home, thus increasing the benefits of every session through repetition. All sessions would operate for 2-3 hours on a group basis and include a maximum of 5 children for most groups.

The year started out with various COVID-19 guidelines still in place, including social distancing with zoned spaces and reduced footfall. However, by the end of the year, usual practice had been wholly reinstated. Numbers were back up, as was demand, with the catchment extending further west to include Slough and Farnham. Assessments were once again conducted in the building and face-to-face Parent Evenings resumed.

On 31 May 2021 there were 75 children on roll with a further 18 families waiting. On 31 May 2022 there were 83 children on roll and 20 waiting. Average attendance in the building has remained at 43 families per week (% attendance in groups has varied from 37% to 77% but averages 61%). There are 20 groups a week, only 1 of which is on zoom after it was decided to focus on face-to-face activity in order to get families back.

This year Small Steps marked its 24th birthday and entered its 25th year. Then, as is the complexity of some of – the children that access Small Steps, another of our recent graduates died a most gorgeous little boy full of smiles. The family asked for donations to Small Steps by way of tribute to his memory.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

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SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Achievements and performance

The COVID-19 pandemic brought many challenges: ever-evolving COVID-19 contingencies, policies & practices; mask wearing, enhanced cleaning, testing, reduced capacity, essential visitors only, various absences. The whole ‘open door, all in it together’ ethos of Small Steps was impacted. Simultaneously however the flexing, juggling, resourcefulness, finding solutions, creativity, ‘orange’ positivity and putting families first stood Small Steps in good stead. Now, all are ‘learning to live with it.’ The charity has survived and is in a good place, with lots of potential.

Staffing/Training

There were staff changes during the period that included resignations and new appointments. At year-end, staff consisted of five full-time personnel (2021: five) and six part-time (2021: five). The balance has shifted towards more part time working.

Small Steps continued to utilise furlough where necessary until the scheme closed in September 2021.The longestablished Marketing and Communications Manager left during the year though continued to support Small Steps on a freelance basis. She has returned to a revised part time role in the coming year. Two new session supporters were employed - the first time that the charity has recruited to such a role.

Small Steps hosted two physiotherapy students on placement, one from Coventry University and one from St. Mary’s. Coincidentally the sister of this second student was one of the first Small Steppers back in 1998.

Small Steps also hosted a pro-bono fellow from Sidley Austin LLP during the autumn term. During his fellowship he completed a complementary legal audit of governance, policies and procedures as well as stepping in to be Santa at the children’s Christmas party. He also initiated the first draft of a Building Manual.

Training during the period included First Aid and Safeguarding. Two sessions were also facilitated by Trustee Deborah - ‘Working Together’ and ‘Next Steps and Priorities.’

The week of 23 - 27 May just prior to year-end, was set aside as Assessment week in order to address the long waiting list. Subsequent to this, 19 new families joined sessions in the second half of the summer term. Well done the Team for making it happen.

Well done too to Andrea Samuelson, Chair of Trustees. Andrea won ‘Trustee of the Year’ in Richmond Council’s Annual Community Heroes Award – duly recognised for her dedication to Small Steps - going above and beyond the regular call of duty to deliver the highest level of support and assistance within the community. Thank you Andrea.

Parent Support & Holiday Clubs

There was no Summer Club in 2021 nor any Easter Club in 2022.

The Children’s Christmas Party was on 10 December 2021 – planned in three tranches and over two floors it was more socially distanced than in previous years, though still very heartfelt and jolly.

Graduate mum and Educational Psychologist Karen Schumacher delivered a ‘Coping & Resilience’ parent workshop in the autumn term. Attendance was small but those present found it rewarding.

Just after year end, on 7 July 2022, Small Steps hosted parent drinks in the hub which saw an increase in attendance – it was a successful and enjoyable evening.

Visitors

The traditional Small Steps ‘open-door policy’ began to re-emerge during the period. Small Steps facilitated one week of work experience and hosted DoE students from the local community. There were also several visits by graduate parents coming to see the new building. A long-time friend from ‘Very Special Children’ in Staffordshire came, as did the CEO of Move’n’Walk Conductive Centre in Sweden. We were also delighted to welcome Sarah Olney MP, Nancy Baldwin Local Councillor and Nick Rogers GLA (Greater London Assembly) Member and many others.

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SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Premises

Works on refurbing the Lower Ground Floor began on 1 June 2021, with the same Principal Designer and Contractors as before. The generous donor of the building bore all costs once again. The summer term ended one week early to accommodate the creation of the second atrium. Works were completed such that at the start of the new academic year in September 2021 the whole three-storey building was completed, and Conductive Practice operated across all floors.

Planning Permission for the whole building was submitted to Richmond Council in the spring too. Subsequently after year-end, the Council granted personal permission to the charity to remain at Worple Way across all three floors into perpetuity.

Throughout the period, the challenges and requirements of running a building have been evident. A Building Manual has been created which details information across all areas and is accessible to all. There have been various unanticipated issues across the year including pigeon guano in the lift shaft and sensitive sensors setting off the alarm out of hours. These, along with necessary scheduled maintenance of the building distract core personnel from their essential roles. A comprehensive record of all incidents/requirements is being maintained and at year-end, a Facilities Manager position was being advertised locally.

Fundraising

Small Steps has never had a secured funding stream and relies totally on charitable grants, events and voluntary donations. It costs in excess of £400,000 to run Small Steps for a year. The COVID-19 pandemic affected much of the core community fundraising on which Small Steps relies and there was much uncertainty around when this might resume. Though, resume it eventually did with several previously postponed events taking place and many new endeavours created and completed. Good and longstanding friends and supporters stepped up. This included a parental introduction to Thomas’ School Kensington, who chose Small Steps to be their partner charity of the year. This partnership amassed an incredible £115,000 in donations. Some of this money was used to equip the third floor. As last year, the many online platforms facilitated getting funds into the charity from a whole host of various activities, too numerous to list. The year culminated with The Ball.

So many people (friends, relatives, parents, work associates, incredible supporters) who not only help us to provide Small Steps as a free service, but this year, have helped Small Steps to survive. We are so grateful to all who have made donations, including those parents and individuals who continue to make regular donations online as well as to those others who have made significant contributions. Whether small or large, this support is so vital to us.

A special mention must be made of Mia. A graduate of Small Steps herself, Mia has volunteered at the charity once a week this entire year, spoke so eloquently in a video for Thomas’ School, was involved in selling cakes at Kew Fete and so much more. She is a credit to herself and to her family.

Financial review

By comparison to last year, this has been a good year with a resulting increase in unrestricted funds (our general - reserves) though these are still lower than they were in 2019. Despite the general economic climate and in the context of post-pandemic reduced community events and no grant from Children in Need, there has been a huge increase in voluntary donations. The new link with Thomas’ School for this year is of particular significance. The amount of donations received via on-line giving has continued to rise and now represents 28% of voluntary donations.

Expenditure has been well managed, with staff costs kept under control and the works to refurbish the LGF actioned and completed with the generous donation (restricted) to cover the costs thus spent. Total expenditure is then more than total income as it includes these refurbishment works.

Total reserves are £3,884,042 (last year £3,642,716) but the majority of this consists of the property (and the related maintenance grant) and so is not available to meet ongoing funding requirements. As discussed above, additional work was performed on the property during the year, resulting in a decrease in cash and in an increase in fixed assets. The cash expended was held as restricted funds so has no impact on the general reserve.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Unrestricted funds are up to £313,102 (2021: £257,759) which represent 106% (2021: 77%) of staff costs. This improvement over the prior year is due to both an increase in unrestricted funds as well as a slight reduction in staff costs for this year. We note, however, that staff and other operating costs going forward are expected to rise next year as the charity aims to meet the needs of more families in its enlarged space.

Despite a good year, the charity, as usual, has no secure funding stream and remains entirely reliant on voluntary donations apart from the property grant. It will have to work harder than ever not to rest on laurels but to raise the profile and access more and varied funding streams.

Risk Management

The Board reverted to its pre-pandemic practice of meeting at least twice each academic term to discuss service delivery, review financial performance against budget and determine the strategic direction of the charity. The Board has established good governance practice that includes effective sub-committees for Finance, Fundraising, Personnel, Premises, Effective Provision and a Salary Review Working Group. The COVID Working Group has been disbanded. The Senior Leadership Team meet weekly.

The Trustees have always been proactive in their response to all risks and have established policies and procedures that are designed to provide reasonable, but not absolute, assurance against them. As good – - governance dictates, they take advice including legal and are constantly reviewing all areas of risk management including Health and Safety and Safeguarding.

Historically, the Trustees have always identified three main risks faced by the charity. Now that the charity has its own permanent home, premises is no longer a risk, though the running of a building does present its own challenges.

The two remaining greatest risks are:

Funding will continue to remain a significant risk. The charity has never had an ongoing funding stream, being reliant on ad hoc grants, donations and fundraising. A key focus of the Trustees is to have adequate funding to safeguard its mainstream daily activities and to meet its commitments to the children, parents and its staff. The charity has grown, expenses have increased, there has been a pandemic and the charity does not have a dedicated fundraiser.

This year the Trustees agreed to revise the Reserves Policy from ‘sufficient cash reserves to enable the charity’s operation to run until at least the end of the next school year’ to 6 months: “ Small Steps will have sufficient cash reserves to enable the charity’s operation to run for the next six months. This should be calculated each month as available cash reserves divided by last 6 months running costs and noted in the monthly accounts. If Small Steps has insufficient cash reserves then a meeting of Trustees should be convened within a month to discuss what actions can be taken to ensure the long-term sustainability of the charity.” This clarifies the previously variable target whereby reserves required to fund to the end of an academic year reduce as the year progresses.

The risk around personnel is always present, particularly retaining and recruiting sufficient levels of skilled staff. This year two full time Conductors resigned from the charity. Career development opportunities for Conductors are limited by tradition, an issue that affects all CE settings. This matter is very much on the radar of the CEUK (Conductive Education UK Consortium). During the pandemic, the Consortium quite naturally shifted its focus to operations, though now has reverted to consider strategy – with raising the profile of the CE and the Conductor profession very much a priority. NICE (National Institute of Conductive Education) has worked hard to establish excellent training programmes for Conductors/would be Conductors but is reliant on the take-up of said opportunities and of settings in promoting them.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

This year in order to fully staff sessions, for the first time in its history Small Steps recruited to a discrete Session Supporter role. Two people took the position – both p/t – one a graduate mum and one a mature student taking a year out before embarking on a physiotherapy degree course. Small Steps is now looking more seriously at employing individuals to train in house, using the skills of the CE Mentor (CE Lead) and looking anew at opportunities for other personnel. The intention is to train up another Conductor to be a CE Mentor and also to recruit additional Session Supporters and for them to complete the Conductor Assistant training at NICE before continuing to attain full Conductor status.

In addition to recruitment, Small Steps is facing issues around succession planning, particularly for those in pivotal roles who have been involved with the charity for many years.

Future Developments

The ongoing vision of the charity is always to maintain its core focus activity; that of delivering structured sessional groups for young disabled children and their parents in a positive and supportive environment with a can-do attitude. Small Steps is in a good position to be able to continue delivering on this.

In the coming year, Small Steps will seek to do the following:

Structure, governance and management

The charity is a company limited by guarantee from the members and therefore does not have share capital. The liability of the members is limited to £1.

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SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signing the accounts were:

A Samuelson T Theobalds J Brotherstone MBE G Ross-Sampson (Resigned 14 October 2021) M Kelly T Halfhide A Tufano R Sarson D Challinor E Chadd C Lort-Philips (Appointed 27 January 2022)

The Trustees have the power to appoint new Trustees. They may also be appointed by ordinary resolution at a General Meeting. Either means of appointment is acceptable.

In addition to their responsibilities as directors, Tim Theobalds, Joanna Brotherstone MBE, Tim Halfhide and Becca Sarson are Members of the Company. Anita Coppola MBE is also a member. All the above Trustees also comprise the Management Committee of the charity. The Board delegates the day-to-day management of Small Steps to Anita Coppola MBE, Head of Small Steps.

The Board of Trustees governs Small Steps. Four of the Board are parents of Small Steps children, including Charlie Lort-Phillips. The number of parent users on the Board remains at four (2021: four). This year the Trustees have continued to meet on zoom on the whole.

In addition to the Trustees and staff, Small Steps is truly fortunate to benefit from the hard work of many volunteers who support the charity and its activities. Too numerous to mention, Small Steps would not be the place that it is without them.

Related Parties

Small Steps is an independent charity.

No remuneration was paid to, or expenses reimbursed to any of the Trustees or people connected to them. No transactions were made with Trustees or connected persons other than voluntary unconditional donations to the charity.

The Board of Trustees approved the Trustees’ report.

Fundraising statement

The charity's fundraising activities are listed above under Activities and Performance. The charity does not engage in fundraising behaviour proscribed by the Charities Act 2011, section 162A, subsection (2), as amended by the Charities (Protection and Social Investment) Act 2016, namely such activities that are: (a) an unreasonable intrusion on a person's privacy; (b) unreasonably persistent approaches for the purpose of soliciting or otherwise procuring money or other property on behalf of the charity; or (c) place undue pressure on a person to give money or other property.

No complaints were received in relation to the charity's fundraising activities.

Auditor

Citroen Wells was re-appointed as auditor to the charity during the period under review.

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SMALL STEPS SFP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The Trustees' report was approved by the Board of Trustees.

..............................

A Samuelson

Trustee 21/10/2022 Dated: .........................

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SMALL STEPS SFP

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MAY 2022

The Trustees, who are also the directors of Small Steps SFP for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SMALL STEPS SFP

Opinion

We have audited the financial statements of Small Steps SFP (the ‘charity’) for the year ended 31 May 2022 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SMALL STEPS SFP

Matters on which we are required to report by exception

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

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the 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

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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 entity and management.

Our approach was as follows:

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SMALL STEPS SFP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SMALL STEPS SFP

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

24/10/2022 Citroen Wells ......................... Chartered Accountants Statutory Auditor Devonshire House 1 Devonshire Street London W1W 5DR

Citroen Wells is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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SMALL STEPS SFP

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MAY 2022

Unrestricted Restricted **Total ** Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
Notes £ £ £ £ £ £
Income and endowments from:
Donations and legacies 2 390,800 288,790 679,590 316,280 585,736 902,016
Fundraising events 3 43,802 - 43,802 5,992 - 5,992
Investments - bank
interest 4 981 - 981 1,021 - 1,021
Other income 5 - 7,358 7,358 - 87,920 87,920
Total income 435,583 296,148 731,731 323,293 673,656 996,949
Expenditure on:
Raising funds 6 56,214 - 56,214 37,168 - 37,168
Charitable activities 7 324,026 110,165 434,191 284,177 172,423 456,600
Total expenditure 380,240 110,165 490,405 321,345 172,423 493,768
Net income for the year/
Net movement in funds 55,343 185,983 241,326 1,948 501,233 503,181
Fund balances at 1 June 2021 257,759 3,384,957 3,642,716 255,811 2,883,724 3,139,535
Fund balances at 31 May
2022 313,102 3,570,940 3,884,042 257,759 3,384,957 3,642,716

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

STATEMENT OF FINANCIAL POSITION

AS AT 31 MAY 2022

2022 2021
Notes £ £ £ £
Fixed assets
Property, plant and equipment 11 3,307,400 2,706,667
Current assets
Current debtors 12 55,388 31,273
Cash at bank and in hand 541,907 916,703
597,295 947,976
Current liabilities 13 (20,653) (11,927)
Net current assets 576,642 936,049
Total assets less current liabilities 3,884,042 3,642,716
Income funds
Restricted funds 15 3,570,940 3,384,957
Unrestricted funds 313,102 257,759
3,884,042 3,642,716

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 May 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

21/10/2022

The financial statements were approved by the Trustees on .........................

..............................

A Samuelson

Trustee

Company Registration No. 08353635

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2022

2022
Notes
£
£
Cash flows from operating activities
Cash generated from operations
18
270,050
Investing activities
Purchase of property, plant and equipment
(645,827)
Proceeds on disposal of investments
-
Interest received
981
Net cash (used in)/generated from
investing activities
(644,846)
Net (decrease)/increase in cash and cash
equivalents
(374,796)
Cash and cash equivalents at beginning of year
916,703
Cash and cash equivalents at end of year
541,907		 2021
£
-
84,371
1,021		 £
521,018
85,392
606,410
310,293
916,703

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

Charity information

Small Steps SFP is a private company limited by guarantee incorporated in England and Wales. The registered office is at 17-19 Worple Way, Richmond, TW10 6DG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's articles of association, the Companies Act 2006 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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

As noted in more detail in the Trustees’ Report, the unrestricted funds of the charity, which are used for dayto-day charitable activities, are in surplus this year. The Charity’s management are monitoring the situation to ensure that the charity can continue to meet its liabilities as they fall due. The Trustees are satisfied that the charity has sufficient cash reserves at the balance sheet date to sustain the expected levels of spending for more than 12 months from the date of approval of the accounts. As a result, the accounts have been prepared on the going concern basis.

1.3 Charitable funds

Unrestricted funds are available to use to further any purpose of the charitable undertaking.

Restricted funds are donated for particular areas of the charity work or to cover particular expenses.

1.4 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably. Income is measured at the fair value of the good or services received and is classified under the following headings:

Donations and gifts

Donations include all income received by the charity that is, in substance, a gift made to it on a voluntary basis. A donation may be used to meet any expense of the charity (unrestricted funds) or may be donated to meet a particular expense of the charity (restricted funds). Donations include:

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

Donated facilities and services

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

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

In accordance with the Charities SORP FRS 102, time and services provided by general volunteers are not recognised; refer to the Trustees’ Report for more information about their contribution.

Grants

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

Fundraising events

Income from other trading activities includes ticket sales and other income from events organised by or on behalf of the charity.

Investment income

All of the charity’s investment income arises from money held in interest bearing bank deposit accounts. The interest income is included when receivable and the amount can be measured reliably by the charity.

1.5 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. Expenditure is classified under the following activity headings:

Costs of raising funds

Costs of raising funds comprise the costs of encouraging and facilitating the payment of voluntary donations and grants and the costs of organising fund raising events.

Expenditure on charitable activities

Expenditure on charitable activities includes the direct and support costs of delivering the charity's sole category of charitable activity: the relief of need and advancement of education of children who have cerebral palsy or other motor and sensory impairments, and their families, through the provision of classes, activities and advice in a supportive environment.

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

Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activity. Support costs include office administration costs and governance costs which support the charity's activity.

These costs have been allocated between cost of raising funds and expenditure on charitable activities. Support costs have been allocated to cost categories based on the estimated usage of supporting resources and an estimate of staff time spent on each category.

Governance costs comprise primarily the costs of compliance with constitutional and statutory requirements.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

1.6 Property, plant and equipment

Purchased tangible fixed assets are initially recorded at cost and donated tangible assets are recorded at fair value. All tangible fixed assets apart from freehold land are depreciated over their estimated economic life.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land Not depreciated Freehold buildings 50 years straight line Fixtures and fittings 20 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of non-current assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

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

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets with fixed or determinable payments and fixed maturity dates that the charity has the positive intent and ability to hold to maturity are classified as held to maturity investments. Held to maturity investments are measured at amortised cost using the effective interest method less any impairment, with revenue recognised on an effective yield basis.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including trade and other payables are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

As a charity, the company is exempt from tax on income and gains falling within tax legislation to the extent that these are applied to its charitable objects. No tax charges have arisen on the company in the year.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Pension costs includes payments made directly to individual defined contribution schemes held by members of staff.

1.13 Government grants

Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) results in cash payments from the Government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on temporary leave of absence from working for the employer).

The CJRS grant is recognised under the performance method, and is recognised as income on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate. As such the income from the grant is recognised on a straight line basis over the furlough period for each relevant employee.

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

2 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
359,400
4,790
Grants
-
284,000
Donated facilities and services
31,400
-
390,800
288,790
For the year ended 31 May 2021
316,280
585,736		 Total
2022
£
364,190
284,000
31,400
679,590		 Total
2021
£
150,018
678,656
73,342
902,016
902,016

Donated facilities and services

Donated services in the current and prior years include legal services. The charity is grateful to Sidley Austin LLP for their generous provision of pro bono legal services.

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

3 Fundraising events

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fundraising events 43,802 5,992
4 Investments - bank interest
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Interest receivable 981 1,021
5 Other income
Restricted Restricted
funds funds
2022 2021
£ £
Government grants 7,358 87,920

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

6 Raising funds

Fundraising and publicity
Costs of generating donations and grants
Costs of organising fund-raising events
Staff costs		 2022
£
16,831
12,387
26,996
56,214		 2021
£
2,431
232
34,505
37,168

7 Charitable activities

Staff costs
Depreciation and impairment
Premises costs
Other direct charitable expenditure
Support costs (see note 8)
Governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 2022
£
238,486
45,094
48,767
19,499
351,846
64,527
17,818
434,191
324,026
110,165
434,191		 2021
£
266,166
32,500
28,755
4,151
331,572
98,570
26,458
456,600
284,177
172,423
456,600

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

8 Support & governance costs

Staff costs
Office
and
other
administration costs
Legal
and
professional fees
Audit fees		 Support
costs
Governance
costs
£
£
25,875
5,253
18,112
6,565
20,540
-
-
6,000
64,527
17,818		 2022
£
31,128
24,677
20,540
6,000
82,345		 Support
costs
Governance
costs
£
£
30,340
5,055
9,520
15,103
58,710
-
-
6,300
98,570
26,458		 2021
£
35,395
24,623
58,710
6,300
125,028

All support and governance costs have been allocated to the charity's sole charitable activity.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

Full time
Part time
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
5
6
11
2022
£
264,339
21,058
11,213
296,610		 2021
Number
8
2
10
2021
£
298,131
24,655
13,280
336,066

The average monthly full-time equivalent employees during the year was 8 (2021: 9)

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

10 Employees

(Continued)

The number of employees whose annual remuneration was more than £60,000 is as follows:

2022 2021
Number Number
£60,000 - £69,999 - 1
£70,000 - £79,999 1 -

11 Property, plant and equipment

Freehold land
& buildings
Fixtures and
fittings
£
£
Cost
At 1 June 2021
2,500,000
250,000
Additions
516,662
129,165
At 31 May 2022
3,016,662
379,165
Depreciation
At 1 June 2021
26,667
16,666
Depreciation charged in the year
27,750
17,344
At 31 May 2022
54,417
34,010
Carrying amount
At 31 May 2022
2,962,245
345,155
At 31 May 2021
2,473,333
233,334		 Total
£
2,750,000
645,827
3,395,827
43,333
45,094
88,427
3,307,400
2,706,667

The prior year balances for fixtures and fittings cost and accumulated depreciation have been restated to more accurately reflect an asset disposal that occurred in the prior year. The cost and accumulated depreciation of the asset were overstated by £3,661 and at 31 May 2021. This restatement did not effect the net book value of fixed assets.

12 Current debtors

Current debtors
Other receivables
Prepayments and accrued income		 2022
£
44,775
10,613
55,388		 2021
£
17,331
13,942
31,273

DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

13
Current liabilities
Other taxation and social security
Accruals and deferred income		 2022
£
4,428
16,225
20,653		 2021
£
4,494
7,433
11,927

14 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

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DocuSign Envelope ID: EB4683E5-92E4-4A50-BF7F-FE49ADD78139

SMALL STEPS SFP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

16 Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 May 2022 are represented by:
Property, plant and equipment - 3,307,400 3,307,400
Net current assets 313,102 263,540 576,642
313,102 3,570,940 3,884,042
17
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022 2021
£ £
Aggregate compensation 70,022 65,668
Unrestricted donations of £6,965 (2021: £2,120) were made by related parties to the charity during the year.
18 Cash generated from operations 2022 2021
£ £
Surplus for the year 241,326 503,181
Adjustments for:
Investment income recognised in statement of financial activities (981) (1,021)
Depreciation and impairment of property, plant and equipment 45,094 32,500
Movements in working capital:
(Increase) in trade and other receivables (24,115) (4,191)
Increase/(decrease) in trade and other payables 8,726 (9,451)
Cash generated from operations 270,050 521,018
19
Analysis of changes in net funds
The charity had no debt during the year.