Registered number: 00393477 Charity numb8r: 235434 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 1111 •A8F4ULYW' 22110r2022 COMPANIES HOUSE A10 20 ishop Fleming STEP ONE CHARITY IA COMPANY LIPIITED BY GUARANTEE) CONTENTS Page Reference and administrativ• detsils oftho Company. Its Tntstees and advise Trustees. report Independent auditots. report on the financial s&*m Consolidated statement of financial adivities 3-12 13-16 17 Consolldated balance sheet 18-19 Company balance sh8et 20-21 Con$olidated statement of cash flo . Notes to the financial statem¢nts 23-44 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEEI REFERENCE AND ADMINISTRATfrfE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Dlrectors and Truslees Mrs O Bassett Ir8sMJned 1 Septenknr 20211 Mr R Gofton Mr E Probert {re$wJned 7 April 2021) Mr M Taylor Mr l Berder Ir8sb3ned 22 March 2022) Mr R Williams Mr5 S SLrtherland. Char Mr P Cawthron Mrs S Brennan Iresigned 29 Octobef 2021) Mr D Hawes {apwnted 21 September 20271 Mr M Lambert (appointed 14 December 20211 Mr C Pallot (appointed 14 December 20211 Company registered number 00393477 Charity r¢gist•red Dumber 235434 Registered oifico Beaufort House 51 North Road Exeter EX4 4EP Page 1 STEP ONE CHARITY IA COPJIPANY LIMITED BY GUARANTEEI REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS ICONTINUED} FOR THE YEAR ENDED 31 MARCH 2022 Chief ex•Gutive offi¢or E Rainsf(wd (untsl 18 Juty 2022) Patron Her Majesty The Queen Independent auditors Bishw Flemi"ng LLP Chartered Accountants 2nd Floor Stratus House Emperty Way Exeter Business Park Exeter EX1 3QS 8•nkers NatN?nal Westminster 8ank PIC 59 High Street Exet EX4 30P Solicitors Fcd Anstey Senate Court Southemhay Gardens Exeter EX1 1NT Page 2 STEP ONE CHARir( (A COMPANY UMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 PIARCH 2022 The Trustees present their annua report tcgelher wth the audrted financial slalernents of the company for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees, report and a directors. report under company law. The Trustees confirm that the Annual report and financial slalemen15 01 the charitable company comply ¥wth the current statutory requirements, the requirements of the charitable company'5 governing document and the provisKJns of the Statement of Recommended Practice ISORPI applicable lo charrties preparing their account5 in accordance wrth the Finanaaj Reporting Standard appl￿ble in the UK and Republic of Ireland {FRS102) leffectNe 1 January 2019). Obieclives and actlvllles . Policies and ¢)biKtives The principal oty'ects of the charty are to prowde support for people physical, mental health, sensory and other disabilrties. or those wlh long4erm heamh conditions, in order to improve Iheir quality of life and degree of independence and provkle the opportunty to a¢h￿ve their potentsl through personal development. training and employment. The Board of Trustees has gNen regard to the legislalwe regulalory requirements for disclosing hw ils charitable objeclives have provided benefil lo the publ￿ and confim)s it has complied wrth dutses as Set OLrt. This report outlines how our achievements during the period have beneffiled Ihe publi¢. Throughout Ihts year we have Completed a thorough review of cwr Strategy with a fo¢u$ed commrtmenl to further drive our reputation for high quality provision and investrment in our staffing resource. We continue to plan to grow our core servus whilst developing our fundraising polential whKh will help us diversify our Inu)me souKes and enable us lo support more peopk through new servw. Step One activrtie5 during 2021-22 were agan centred I￿ EMplO￿ent Service5. Health and Sock?1 Care, with Heallh and Social Care services delivered through the CCT Sub￿lary. In selting obJ'ecti¥es and planning for activities. the Truslees have gNen due consideration lo general guidance publishe(I by the Charity Commission ￿￿Ing to Publ￿ benefrt. including the gUmdan￿ 'Public benefit.. running charity IPB2)'. b. Strategic report The following sectK)ns conslrtule the strategic report for the purposes of the Compan￿5 Act 20(E. Thi$ strategic report forms part of the Report ofthe Board. A¢hievements and perfornian¢e a. Introduction Entering a new financial year invariabty requi￿$ rellectic￿ on our prevh)us yearfs xhievemenls and challenges. As the year stsrted it was appa￿nt that the COVIO-19 pandern￿ would continue to have a 5ignifi¢ant effect rhot only uwn individuals but also organisatb)ns induding ourselves. As a charty affected by the pandemlc, we Continual￿ adapted the way we delNered our seThi¢es whilst at the same lime adhering to all the Govemment's requirements for dTrslanung during the natsonal k¢kdown. Throughout a very challenging year for Slep One, we have been able to demonstrate ¢￿￿derable ￿lI￿nCe and forward thmking whilst delivering our core 5ervies during the pandemic. During the year. our back office and central funth.ons adapted to intense dwnands in addition to continuing to adopt remote working as they supported our client services. Servtis coped with uncertainty and confusion wrth exceptional skill and professionalism. As an organisation we tcok brave and erealivè decisK)ns across every aspect of Ihe chantys worf(, and this wll be buitt upon over the next twelve months and beyond. We again acknowledge hthv hard everyone worked in what has been an intertse￿ challenging time. All services Page 3 STEP ONE CHARIT IA COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Achievements and performance {CONTINUED) have been able to ¢￿tinue to deliver provisN)n this is commended. Managers, staff and those Èehind the scenes had a very demanding year. Despile this. everyone has pulled together and gone the extra rnile. and this is recognised and applauded. b. Main a¢hie¥ements of the charlty Over the past year. Step One worked with over 800 pwle across our w*le range of $pe¢iali$t provision in Devon which included prowding 30.(M)O hours of communty support care and 5,000 bed nights for ils commissioned aeute eare al Cypress ar￿ Granvue. Cypress Hospital and Granvue Crisis House During the year the priority for this seivice has been lo continue to delivei high Standards of support and ongoing provision of hospital beds and this has been ach*ved. As a result of COV1[￿19 and in Grder to safeguard adequate and consistent staffing for this service. it was ￿reed with commissioners that al the beginning of the year that we would operate bel(r•V our nomal capacity. From July, Cypress gradualty opened the designated isolation beds as planned lo agaln funth.on as 8 144￿1 serwce. However due to continual stafl shortages used by COVID this meant having lo dose to admissins on occash)n. In April we linke4¥ our own. approach started in 2017 is now developing a steady pipeline of newty qualif*d RMNS through intemal sponscAsfip. (ill Support Lmng and Communjty Support This service ContinL￿d to delw supp)rt during the year desprte the thkdown thr￿gh either f8ce-to-fa support or telephone, according to indivKlual client preference. Communty services has however struggled al times during the year to achieve activty targets to due 10 staff shortages caused by COVID and staff vacancies where recruilmenl remains a challenge to this servKe. Our new HR Manager has been working closely wth this team alongside our wnmuni¢ations staff and recrurtment srtes lo improve our advertising approach. In September a new salary banding was intrLxJuced lo the support worker ro￿ where il was hoped this would also help address cr*Kal wruitment chaI￿ngeS. During the year and in antic￿oI10n of Ihe need lo salary. the team have been working through more than 100 individual contracts wrth Devon County Council to align each to our current ceiliro hourly rate. To this end, our Manager for Community serVi￿S. has worked ext￿fflety hard to get comrnissioners to ag￿e to uplift all 120 clients to the required hourty rate. A business case to invest up to a maxirThJm of £1 million for the purchase of an additional supported living house was approved by the Board in December. Folbwing vlewings. an offer has been accepted for a large 6 bedroorned property in Exeter. The property is *Jeal to seM¢e requirernenls with axisting HMO status, detached on a large pkjt. parking arKI vrilhin a short distan￿ to our other house on Monks Road. This offer was subject lo the usual purch85ing condilKy￿ and specifically a requirement for an unoccupied property at exchange. With all these conditions having been met we were ab￿ to exchange contracts in June 2022. With an existing warting ILSt for acc(Mnmodation support. our Manajer for CO￿nunIty Services and her team remain confident in achieving full occupancy of Ihe property in 2023. Page 4 STEP ONE CHARITY IA COMPANY LIMITED 8Y GUARANTEEI TRUSTEES. REPORT {CONTiNUEDI FOR THE YEAR ENDED 31 MARCH 2022 Achievom•nts and perfomiance ICONnNUED) {iii) CF03 The team has coped with personnel change5 during the year, and they have worked very hard lo bring enrolmenl tsrgets back on track after the prison knkdown due to COVID. Quartevly Courses have been faciliiated al Beaufort House to improve Education Whilst On Prcgramme (EWOP) targets. HM Prisons and Probation Service also agreed to rwrofile Cont￿￿Cl targets for all prime provKlers followng impact of COVID on ability to deliver during lockdowns. This re-profiliThJ has been cascaded to subJni5ed surplus of £4.296m in resped of rts defined benefft pension scheme compared to a deficit of £1.161m in 2021. However, in line wth ¥¢ounling disclosures ¢ontsined within the FRS 102 year*nd pension report, the recognised as5els have been restn¢ted to the vJue of the deflned benefft obligat￿n onty. meaning Ihis surplus is not recognised as a gain within the c￿so11d0ted statement of finanoal xtivié￿s for 2021-22. In temis of the year-end aecounls there is a r￿atNe penS￿n movement of £2.165m that takes into account the In￿aSed employer pension contributson paJTnent 01 £2.707m that was m* lo the pension fund. Taking all of the above into account resLth in an overall nel reduction of funds for the group of £921k, wilh total funds ¢arrie(I forward of £12.895m at the year end. Of this. a total of £8.695m is designaled for specific wrposes. and general unreslllcted funds including the unrealised investment revaluation, sland at £3.552m. The impact of the Covpj 19 virus pandemic continL￿d as a business entieal risk last year and presented the charity with an enormous range of issues lo ¢onskler as il continued lo deliver services. Towards the end of last year, rt also became apparent that challenging operating conditions woukj continue particularly regarding the inflationary impxl on procuring goc¥Js and services. The budget approved for next year has planned an operating defficil of £232k but contained proposaLs to reduce the deficrt in future years and lo move towards a break even position. Several actions have therefore atready commerbced wth the intention of reducing the ongoing deficrt a5 follows'.- Made an offer which has b￿n accepted for an addrt*)nal supported fiving house Successfully marketed Beaufort House for sale to an interested buyer Revwed current bed cost for acute services and cc*nmenced contract conversation with commissione livl DelNered savings for Step One in respect of b￿"n9 part of the communty rnental healthcare (Alliance) framework Paye 7 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 d. Risks The ofganisation has a strong framework in plxe to mnrtor and mitigate maicrf risks lo which rt may becomg exposed. Risks are ￿gUlarlY reviewed by the Boafd and its sub-C¢Jnmittees Of Working Groups. Commercial and financial risks are considered by the Finance & A￿rt Committee using extemal advice where appropriate. There are robust syslems for quality assurance and compliance through the Quality Assurance and Improvement C¢Jnmittee that are used to inforrn a pioces5 of continuou5 irnprovemenl and provide fvrther assurance on identification and management of risk. The key business risks that have been identrfied.. - Lack ol new contract opportunities going forward {iil Ongoing Fncrease in medical insurance cover wlh limrted pmwder5 liiil Ensuring there are adequate and skille¢l stsff to delTrver services and fuffil contractual obligations livl Fundraising and legacy income largets are not &hwed {vl Current impa¢t of infialion upon prrxuring good5 ar¥1 ser¥￿e5 and recrurting staff Structure. govefnance and management a. Constltutlon Step One Charity I'step One") is a company limited by guarantee and is registered as a eharity with the Charity Commission (No. 235434}. The name was changed frp Ind￿JUa1 w¢teSSbonal seNc& mth1ds . E4UiP ¥VL¥ktsrcgwrfh Sknlls fr>rewdence baseo . Copatythty cofflpl*xnged$ Pèthwayof SP•￿￿1151 ¢4noition P￿￿61￿n . Outhmés ano Impact Fundra151ng inipact Cèreerde*iopmènt opportynities H￿h High Irwt Emdenced based, Speciabst . Crta*Mty #nd tD . Oernon$tra* knpxt throvgh raty oulcornem￿SUr*s iniagrfty Page 10 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Plans for future pefi¢)ds {COPmNUED) Our strategy on a page frty*•*¢tyt k*•P r0E4￿ •rtknVAE6th* Summary points . OpportUn￿eS io grow dev¥tr)p L7uwess K we position our chwty Ihe Trjht Way . Gr¢)wth must be underpinned by strong elhos of profe5S*•nal pra¢tre and dii for eXcel￿n¢￿ - We neetl to de¥ek)p and modemise our approach to delNw Ihrough prot•¢t•d clinical support, busw)ess dgvekjpmeni and te¢hnobgy We need to take an ongom9 commitment to investing in a credibla. prOfeS￿n81 and sustainable workforce to rp.?￿￿ our ambiiK*n Oellverlng Hlgh Quallty. Hlgh ImpK¢ Evldgnc8db*s•d. S￿￿￿*11$8 M•ntal Health servi￿$ p￿ell STEP ONE CHARITY (A COMPANY UMITEO BY GUARANTEE TRUSTEES. REPORT ICONMNVED) FOR THE YEAR ENDED 31 MARCH 2022 STATEMENT OF TRUSTEES. RESPONSI8IUTIES The Trustees {who are also the directots of the company for the purposes of company Liwl are responsible for p￿parIng the Trustees, report and the finan￿al ststemenls in accordance wrth applicable law and United Kingdom Accounting StsndaTd5 (Unrted KingdcKn Generally Accepted Accounting Practice). Company law requires the Trustees lo prepare financ￿1 statefflents for each financial year. Under company law. the Tiuslees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the Group and the company and of their incoming resources and application of resources, including their income and expendrture, for that period. In preparing these financial slalements. the Trustees are required lo.. seled suitable accounting kN)licies and then app￿ them consistentky". observe the methods and principles of the Charities SORP {FRS 102): make judgments and accounting estimates that are reasonable and prudent: stsle whether applicable UK Ace¢JJnts"ng Standards IFRS 1021 have been foloweil, subj'ect lo any material departures disclosed and explained in the financial stster*nts". prepare the financial statements on the gotng ¢oncem basis unless it is inappropriate to presume that the Group will continue in busine55. The Tfustees a￿ responsit)le for keeping adequate accounting records that are sufficr¢nt to show and explain the Group and the Gcmpan￿$ transactions and disclose wrth reasonabk ¥¢ura¢y at any time the financial position of the Group and the company and enable them to ensure that the financ￿1 statements comply with the Companies Act 2006. They are also responsib￿ for safeguarding the assets of the Group and the ¢ompany and hence lor taking reasonable 51eps for the preventN)n arKI detection of frwd and other irwularities. DI￿lOsUre of lTrfomMllon to audltoys Each of the persons who are Trustees at the INne when this Trustees. report 15 approved has confirmed that.. so far as that Trustee is aware. th&e 15 no relevant audrt inf0m1*￿n of which the charil&le group's audrtors are unaware. and that Trustee has taken all the steps Ihal ought to have been taken as a Trustee in order lo be aware crf any rekvanl audrt infomiation and lo e5tablth that the charitable group's auditors are aware of that information. Audito The auditors, Bishop Fleming LLP, have irmlicated their willingness to continue in office. The designated Trustees 11 prcwse a motion reappointing the audi(ors at a meeting of the Trustees. Approved by order of the merthr$ of the Lw)ard of Trustees and sKJned on th￿r behair ty. Mys S Sutherland Date: i • . P*Je 12 STEP ONE CHARITY {A COMPANY LIMITED BY GuARA1￿EEl INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE CHARITY Opinion We have audited th8 finarKial statemnts ￿ Step One Charty (the 'parent charitable compan¥) and its subsidiaries {the 'group'l for the year ended 31 March 2022 which wmpri$& the Consclidaled statement of financial activrties, the Consolidaled b￿ance sheet. the Comparry balance sheel. lh8 Consolidated slalement of cash flows and the related notes. induding a summary of signrfKanl Xcounling policies. The financial reporting framework that has been applEd in their preparatK)n is appltable law and Unrted Kingdom Accounting Stsndards, including Financial Reporting Standard 102 'The Financial Reporting Slandard applicable in the UK and Republ￿ of IrelarHI' (United Kingdom Genera￿ Accepted Accounting Praclice). In our opinion the finan¢id slatements" give a true and fair view of the sLite of the Group's and of the parent chantable company's affairs as at 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended", have been propedy Prepa￿ in aCcOrdar￿e wilh United Kingdcffi Generaly Accepted Accounting Practice.. and have been prepargd in accordance wth the reqUire￿￿nIS ofthe Companies Act 2c￿. Basi$ for opinion We corKlu¢led our audit in accordan￿ wrth Internat￿nal Standards on Audrting (UK) IISAS IUKI} and applicable law. Our responsibilities under those standards are further described in the Audrtors, re5ponsibililies for the audit of the financial ststements section of our report. We are independent of the Group in accordance with the ethical requirements th* are relevant to our audit of the financial statements in the United Kingdom, irtcluding the Financial Reporting Council's Eth￿1 Standard. and we have fulfilled OUT other ethical responsibilitses in accordance with these requirements. We believe that the audrt evidence we have obtained is Suff￿1$nt and apprOpr￿le lo prov*Je a basis for our (Pin￿n. Conclusions relating to going concem In auditing the financial ststen￿n¢$. have corKluded that the Truslee5' Use of the going corKem basis of accounting in the preparath)n of the fina￿101 st*emenls is appropriate. Based on the work we have performed. we have not ￿enttffied any material uncertainties relating to events or condf(ions that. Indiv￿U01ty or collectivety, may cast signfftant doubl on the Group's or the parent charitable company's ability to continue as a going concem a penod of at least tsvefve months from when the financial statements are aulhorised for issue. Our responsibilities and the respons*ilitw of the Trustees *ryth re* to going concem are described in the relevant sections of this report. Other Infomation The other informat￿ comprises Ihe Inf￿matIOn included in the Annual report other Ihan the financial statements and our Auditors, ￿port the￿on. The Trustees are responsible for the other infomalion contained wrthin the Annual report. Our Opin￿ on Ihe financial ststements does not cover the other infonnalion and. except lo the extent otherwise expIrt￿ staled in our rewl, we do rjot express any form ol assurance conclusion thereon. Our respon5ibilrty is lo read the other infomalion and, in doing so. consider whether the other infomation is materially inconsi51enl wrth the financial slalements or our knth￿edge ctltained in the course of the audit. or otherwise appear5 to be malerialty mi5$1aled. If we Klenlfy such mater￿5 inconsistencies of apparent material misstalemenls. we are required to deternine vthether thi5 gives rsse to a material misstatement in the financial ststements themselves. If, based on the work we have perfoimed. we conclude that there is a material misslatement of Ihis other inf0M￿￿on, are required to report that fact. We have nothing to report in thi5 regard. Page 13 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE> INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE CHARITY ICONTINUEDI Opinion on other mattets pftscribed by the Cornpanies Act 2006 In our opinion, based on the wC￿k undertaken in the course of the audil.. the inf0m￿tion gNen in the Trustees, Report for the ffinanck41 year for which the financial statements are prepared 1$ consistent with the financol statemerts. the Trustees. Report has been prepared in accordance with wlicable legal requirements. Mattern on wh•ch we are required to report by exceptlon In Ihe I￿h1 of our knowledge and undetstsnding of the chantable company and its environment obtained in the urse of the audil. we have not identified Material rnisststemenls in the Trustees. Report. We have nothing to report in respect of the folw'ng matters in relats.on lo which Companies A¢t 2006 requires us lo report to you if. in our opinim.. the parent charitable company has not kept adequate arKI $ufft*nt ￿¢0￿ling ￿e0rds, or returns adequate for OUT audit have not been received from branches not visited by us. or Ihe parent charitable company financial statements are not in agreement wrth the xcounting record5 and returns.. or ertain disclosures of Trustees. remuner*ion specffied by law are not made.. or we have not received all the infomwion and explanations we require for our audrt. Responsibilities of trustees As explained more fulty in the Trustees. responsibl1rt￿ statement. the Tw$tees (who a￿ also the directors of the charitable Company for the purposes of cc¥npany IJW) are responsible for the preparatK)n of the financial statements and for being satisfied that they give a true and fair view. and for such intem81 control as the Truslees determine 1$ r￿eSSary to enable the preparation of financial statements that arg free from material mis5tatemenl, whether due to fraud or error. In P￿ paring the financial ststements, the Trustees are responsible for assessing the Group's and the parent charitable company's abilty lo ¢onth"nue as a going concem, disclosing, as applicab￿, matters related lo going concem and using the going concem basis of xcounling unless the Trustees erther intend lo Iiqukdate the Group or the parent ch￿rtab￿ company or lo cease Operat￿S. or have no reaITrst￿ allemalive but to do $0. Pa9e 14 STEP ONE CHARITY IA COMPANY UMITED BY GLIARANTEE} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE CHARITh ICOTrfflNUEDI Auditorn. rasponsibililies for the audit of Ihe financial Statements Our objectives are to obtain reag)nable assurance about whether the financial statements as a %thole are freg from material mi$statement. whether due lo fraud or error. and to issue an Audilors. repc¥t that includes our opinion. Reasonable assurance is a hryh level of assurance, but is not a guarantee that an audil conducted in ordance wlh ISAS IUK} will afvlays delect a material misslate￿￿nI when rt exists. Mi5slalements can arise from fraud or error and are considered material if. indiv¢dualty or in the aggregate. they could reasonably be expected lo influence the econcffnic decisions of users taken on the basis of these fInar￿la1 Stateff￿nts. Irregulanties. induding fraud, are instances ol noTrCoMplwn￿ with laws and regukations. We design procedures in line wrth our responsibilities. outlined above. lo deled material misstatements in respect of irregularrties, includiro fraud. The extent lo which our pr￿edureS are capable of dele¢ts'ng irregularities, includin9 fraud is detailed below.. In idenlty'ng and assessir¥J risks of m*erial mtsstaten*nt in respect of irregularities. including fraud and noncompliance wrth laws and regulations. we consklered the fOlkn￿n9". the nature of the charity sector. contrd environment and charity performance,. results of our enquilles of management and the Trustee board. including the committees char9ed with govemance over the Group's fina￿e and control. about their own Ident￿￿a￿"on and assessment of the risks of irregularit*s', any matters we identrfEd hawng obtained and reviewed the Group's docurrEntalion of their policie5 and procedures relating lo." *Jenlfy"ng, evalualing and compl￿"n9 wrth laws and regulations and whether they weiè aware of any Instances of non-compliance., detecting and responding lo the nsks of fraud and whether they have knowledge of any adual. suspected or alleged fraud.. the internal controls established lo mrtigale risks of fraud or rkon¢omplkgnce with laws and regulations.. how the Group ensured it met its oblMJations arising from it being financed by and subject lo the governance requirements, including around ensuring there is no material unauthorised use of funds and expendilure. As a result of these procedures, we consNlered opw)rtunilw and in￿nINeS that may exist wrthin the organisation for fraud. which included incorrect recognition of revenue. management override of controls using manual journal entries. purchase ledger arKI payroll, and identffied the grealesl polenlial ft)r fraLKI as incorrect ognition of revenue and management override using manLral joumal entrEs. In common wrth all audits Ltnder ISAS (UK}. we are also required to perfomi specrfic procedures lo respond to the risk of management override. We also oblained an understanding of the legal and regulatory frameworks that the Charily opefates in, focusing on provisions of those Laws and regulations that had a direct eflecl on the determination of material amounts and disclosures in the financral statemen15. The key L8ws and wulatifms we considered in this context included the UK Companies Act. The Challlies Act and lax *i￿allon. In addit￿n, we conshlered provisKJns of other laws and reguLat¢ons that do not have 8 direct effect on the financial statements but compliance wth which may be fundamental to the Chartys abilty lo operate or lo avoid a m*erial penalty. These induded Care Qualty Cc¥nmissÈon Reguklion. Health and Social Care Act. data proleclion regulations, cse a¢ti¥iti'es on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the of the asset's use. EXpendrtu￿ on raising fvnds indudes all expendrture wKurred by the Group to raise funds for tts Charitable purpxes includes costs of all fiuKlfaising a¢tivities events nonrycharrtable ITadin9. Expendrture on chafrtable activities is irKurred on directty undertaking the ￿tt￿tieS whKh further the Group's obJeclNes, as wel as any a$S(￿lated support Costs. 2.5 INTEREST RECEIVABLE Interest on funds he￿3 on deposit 1$ included when receNable and the amount can be measured reliably by the Group,. this is rKsrmally upon nokn"fKalwJn of the inteTe$l paid oi payable by Ihe institutitsn wrth whc*n the lunds are deposrted. 16 TANGIBLE FIXED ASSETS AND DEPRECIATION Tangible fixed assets are inrtialty recognised al cost. After recognition. under the cost model. tsngible fixed assets are measured al cost less accumulated depfecralH)n and any accumulated impairment k)sses. All costs incurred to bring a tsngible fixed asset into its intended working condrtion should be included in the measurement of cost. Deprecial*Jn is charged so as to alkK*e the wst of tsngibk fixed assets less residual value over their esbmaled usefrjl lives. . Depreei8tb)n is prov*Yed the folkming bases." Freehold property Fixtu￿ and equipment 1￿ - 33% Stra￿h1 line 2.7 INVESTMENTS Fixed asset investrnents are a fomi of f￿a￿la1 instrwnent and are initolly recognised al their Iransaction Cost and subsequentty measured al fair value al the Balance sheet date. unless the value cannot be measured ￿liablY in wh¢h case It is measured al cost ￿sS impaimient. Investment gains and losses, whether realised or unrealised. are combined and presented as 'Gainsl{Lossesl on investments, in the Consol*Jated statement of ffinancial a¢tNitses. Investments hekl as fixed assets are Sh[￿ al cosi less provision for impaimient. 2.8 DEBTORS Tr&Ye and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the arrw)unt p￿p￿d nel of any trade discounts due. P4e 24 STEP ONE CHARITY (A COMPANY UMITEO BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies (continued) 19 CASH AT BANK AND IN HAND Cash al bank and in hand includes cash arKI 5hc¥t-lerm INJubJ investments with a short malurrty of three months Of less fr(%n the date of acquisition or opening of the deposrt or simikir account. 2.10 UABIUTIES Liabilities and provisions are reccgnised when there is an oblvJation at the Balance sheet dale as a result of a past event, it is probable th* a transfer of economic benefft wll be required in settlement, and the amount of the settlement can be esbmaled reliabty. L￿bilItieS are recognised at the amount that the corrwny anticipates it will pay to settle the debt or the amount it has recebved as advanced paywls for the g(K*Js or seivices Il must provide. Provisions are measured at the best e5tirnate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision 15 based on the present value of Ih05e amounts. discounted at the pre4ax discount rate that reflects the risks specrfic lo the liability. The unwirKling of the discount is recognised in the Consolidated statement of financial xtivrtte5 a5 a finance cost. 2.11 FINANCIAL INSTRUMENTS Th8 Group onty has ffinancial assets and financial liabiltiEs of a kind that qualfy as basic financial instruments. Basic financial inslnjments are inilialty recognised al transaction value and subsequently measu￿￿ al their settlement value wrth the exCept￿n of bank h)an$ whith are subsequently measured at amrb.sed cost using the effectNe interest method. 2.12 PENSIONS Defined benofit scherne The company operated a defir￿￿ benefrt schem8. wh￿h required rnntribution$ to be made lo a sepai¥leW administered fund. This scheme was C￿Sed lo new members wrth effect from 6 April 1998, and dosed to lulure benefit ac¢rual from 1 September 2001.For a defined benefft ￿hem8 the amounts charged to operating profit are the current se￿iCe costs and any gains and losses on sdllements and curtailments. They are included as part of staff costs. Past serV￿e c051s are charged to operating profil immediatety rf th8 beneffts have vested. 11 the benefits have not vested inmedialdy, the c05t5 are recognised by equal annual inslalments over the period until vesting occurs. The interest cost and the expected retum on assets are Included as other financial ir¢come. Actuarial gains and losses are recc¥Jnised immediately in the Statement of Financial Activrties. Defined benefit pension sch8me$ are funded in separate trustee administered funds, wrth the assets of the scheme held separatety from those of the Foun¢Jalion. Full actuarial valualigns are obtained every three years and are upd*ed al each balance sheet dale. The resuRing defined benefit asset or liabilty is Pfesenled separatety after other net assets on the face of the balance sheet. The group also has a number of employees who are members of a murti*mployer defined benefit scheme in the UK. It 1$ nol possible to obtain sufficient infomialion to account for the scheme as a defined benefrt scheme. Therefore it accounls for the ￿heme as a defined conlribulion scheme with the contributions bw'ng charged lo the income and expendilufe account when payable. Defined contribution scheme The company and its subsKliary operate deffined contribution pension schemes. Conlribut*)ns are charged to the Ststement of Financial Activities as they become paya)le in xcordance with the rules of the schemes are set ¢xrt in Ihe notes to the aC￿nts Page 25 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 MARCH 2022 counting policies Icontinued 2.13 FUND ACCOUNTING General funds *e unre5trKled funds whith we available for use at the discretion of the Trustees in furtheran￿ of the general (￿jectiveS of the Group and have not l*en designated for other purposes. Designated funds comprise unrestricted funds thal have been sel a$￿e by the Trustees for particular purposes. The aim and use of each designated lund is set out in the notes lo the financial statements. Restricted lunds are funds whth are to be used in accordan¢8 ¥rith specific restrictions imposed by donors or which have been raised by the Group for particukr purposes. The costs of raising and Iminislering such funds are charged against the 5pecifK fund. The aim and use of each reslTiCted fund is set out in the note5 to Ihe financial statements. Inveslmenl irKome. gains and losses *e alocated to the appropriate fund. CRITICAL ACCOUNTING ESTIPAATES AND AREAS OF JUDGMENT The company makes estimates and assuftN>tions conceming the future. The resulting accounting eslimales and assumptions will. by definition. seldom equ81 the related actual resuks. The estimates and assumptions that have a signthcant risk of causing a material adjustment to the carrwng amounts of assets and Irabilities wilhin the nexl financial year are discussed behjw. Critical accounting estimales and assumptions.. - Investment propety valuatw)n Pension valualion - Depreciation Estimates and judgments are eontinualty evaluated and are based on hislorttl expellence and other factors, incI￿￿1ng expects1￿5 ol firture events that are b81wed to be reasonable under the rcumstances. Incorne from donations and legacies Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Totsl funds 2021 Donations Legacies 11,9 168.375 74 12.070 169.340 11,620 111,050 180.371 1,039 181.410 122,670 TOTAL 2021 2S,312 97,358 122,670 Page 26 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 In¢ome from charitable activities Unrestricted Restricted lunds funds 2022 2022 Total funds 2022 Totsl fund8 2021 Empbyment and training seNces Health and social care 731.492 27,701 1.890.705 7Sg,193 1.890,705 284,461 2.507,957 731,492 1,918.4( 2.649,898 2.792,418 TOTAL 2021 148.367 2.644.051 2,792,418 Investment Income Unrestrlct•d funds 2022 Total funds 2022 Total funds 2021 Income fnxn liste(l investrY*nts Interest 108.865 108.865 106,336 108,931 108.931 106,336 TOTAL 2021 1C6.336 106.336 Other Incoming resources Unrnstrlctod funds 2022 Total funds 2022 Totsl funds 2021 Rental income 313,340 313.340 293,396 TOTAL 2021 293,396 293.396 Pa9e 27 STEP ONE CHARITY IA COMPANY LIVATED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Analysis of upendlture by a¢tlvitie5 Activities undertaken directly 2022 Support Costs 2022 Total fund5 2022 Totsl funds 2021 Employnenl al￿ training sermces Heatth and social care Other (292.488) 1.721.819 680,123 578.853 341.923 387.635 2,300.672 341.923 859,988 2.319,637 368,574 1.429.331 1.61YJ.899 3,030.230 3,548,199 TOTAL 2021 2.134.909 1,413.290 3.548,199 Analysis of dir•¢t ¢¢)sts Employment and Tralning Health and Services Social Care 2022 2022 Totsl fvnds 2022 Total funds 2021 Staff cos¢s Dired costs (359.138) 1.585.425 66.650 136.395 1,226,287 203.045 1,913,115 221.794 1292.488} 1,721.820 1.429.332 2,134.909 TOTAL 2021 476.447 1,658.462 2.134,909 PwJe 28 STEP ONE CHARITY (A COMPANY UPaTED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Anatysis of expenditure by activities {continued) Anatysis of support costs Efflployment and Training Health and Services Social Care 2022 2022 Total funds 2022 Total funds 2021 Other 2022 staff costs Depreci*ion Other Costs Premises costs Administralion costs Professional fees Pension fee IT costs VAT 103.705 258.271 361.976 93.836 494.094 291.451 87.977 199.445 14.976 4.189 52,955 344,371 95,371 174.486 281.720 270,196 117,694 60,868 3,817 64,767 93,836 321.792 154.302 76.846 19.289 172.302 137.149 11.131 180,156 14,976 4.189 52.955 680.123 578,853 341,923 1.600,899 1,413,290 TOTAL 2021 383.541 &$1.175 368.574 1,413,290 Audilors. femuneration 2022 2021 Fees payable to the compan￿$ auditor for Ihe audrt of the oYnpan￿$ annual accounts 9,150 8,475 Fees payable lo the coMpan￿S auditor in respect ot. The audrt of the annual aceounts ofthe chantys subspaiary undetskrys 5,200 4,800 PwJ8 29 STEP ONE CHARir {A COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Staff costs Group 2022 Group Company 2021 2022 Company 2021 Wages a￿1 salaries Social securty c05tS Pension 1040.432 165.603 1557.719 1,978.889 153,536 138.360 591.322 54.369 1582.799 584,539 46.663 102,405 1.648.316 2,270.785 62,892 733,607 In addith)n to the above an expense of £108.671 has been ￿rUed in respect of Ihe expecled liability in settlement of the Communty Care TrLtst (South Westl Linrted defined benefft pension ￿heMe. Redundancy pa￿ents of£nil (2021.. £3.OLIO) were payabbe wthin th8 year. The average nUrnb￿ of pe￿OnS employed by the ccrfnpany during the year was as folkJK.' Group 2022 No. Group 2021 Company 2022 Company 2021 No. 103 22 The average headcount exp￿Ssed as fulHime eqUi￿dIents was: Group 2022 Group 2021 No. Company 2022 No. Ccmpany 2021 No. 83 22 21 The number of empl￿eS whose Mipby8e benefits lexdudin9 empWT pension coslsl excèeded £60.000 was.. Group 2022 No. Group 2021 No. In the band £80,001- £90.OLKI 11. Trust8es' rgmuneration and expenses During the year. no Trustees receNed any remwr*ion or other beneffts {2021- £NIL). During the year ended 31 March 2022. expenses tolallw £4.008 We￿ reimbursed or papa directty to S Truslee12021 - £1.796 to 5 Trustees). Page 30 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 12. Tangible fixed assets GROUP AND COMPANY Freehold Fixtures and property equipment Total COST OR VALUATION At 1 April 2021 Additions 2,900.519 699,729 23,163 3.600.248 23.163 At 31 March 2022 2,900,519 722,892 3.623,411 DEPRECIATION Al 1 April 2021 Charge for the year 201.428 49,838 584,098 43,998 785,526 93.836 Al 31 March 2022 251,266 628,096 879.362 NET BOOK VALUE At 31 March 2022 2,649.253 94.796 2.744,049 At 31 March 2021 2,699,092 115.631 2.814,723 There is a legal charge over the freehold property incfuded wthin Tangible Fixed Assets and Investment Property - see note 19 for further details. 13. Investment property GROUP AND COMPANY Freehold Investment property VALUATION At 1 Awil 2021 Surplus on revaluation 1,784,133 495,593 At 31 March 2022 2,279,726 The revaluation is based on offers receNed for the sale of Ihe propety. apportioned based on Ihe mixed use of the Pro￿rtY. Page 31 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. Fixed as$et investments Other fixed Listed asset investments Investments Total GROUP AND COMPANY COST OR VALUATION At 1 April 2021 Disposals Revaluations Interest and dividends received and reinvested Fees 7.909,581 (2,050.000 419.290 108,865 162,032) 340 7,909,921 12,050,000) 419,290 108,86S (62,032) At 31 March 2022 6,325,704 6,326,044 NET BOOK VALUE At 31 March 2022 6,325.704 6.326.044 AT 31 MARCH 2021 7.909.581 7.909,921 15. Debtors GfOUP 2022 Group 2021 Company 2022 Company 2021 DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income 123,279 61,402 143.975 162,509 55,862 136,283 123,279 61,402 143,975 91,213 55,882 119,856 328,656 354.654 328.656 266,931 16. Escrow account Group 2022 Group 2021 CompaDy 2022 Company 2021 Investments 1,512,901 2.434.376 1.512.901 2.434,376 The Escrow account is established under a deed between the company and the Trustees of the St Loye's Foundation Pension & Assurance Scheme and is used to provide contributions to the Scheme under an agreed recovery plan. Assets from the account can be reiumed io the company when the Scheme is over-funded per the funding based actuary valuation. Page 32 STEP ONE CHARITY (A COMPANY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 17. Credilorn: Amounts falling due within one year Group 2022 Group 2021 Company 2022 Company 2021 Trade creditors Amounts owed to grrA4) undertakings Other taxation security Other creditors Accruals and deferred i￿N￿e 213.271 200.095 213.271 147,043 989,995 15,750 40.323 71 795A80 41.770 5.105 179.505 40.384 10 795A80 128,265 1.049.145 426.475 1.049.145 1,281,053 Page 33 STEP ONE CHARITY IA COMPANY UMrrED BY GUARAp¥fEE) NOTES TO THE F114ANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 18. Statement of fund$ Statemenl of fvnds- currgnl year Balancè at 31 March 2022 Balance at 1 April 2021 Transfèrs inlout Gainsl {Lo$$es) Income Expenditur• UNRESTRICTED FUNDS DESIGNATED FUNDS Pension scheme escrow 2.434,376 1.400.000 11,097.462} 11,400.000) 175,987 1.512.901 Beaufort House Tangible fixed asset reseThe 4.598.856 213.591 193.836 23.163 {73.013) 495.593 5,023,776 140,578 Future suststnability Pension Commitments Investment Volalilty Reserve 227.$00 1210.000) 17.500 2.lJOO.000 2.000,000 10.874.323 (93.8361 12.757,312) 671,580 8,694.755 GEMERAL FUNDS General after pen5•?n liabilty Unrealised investrnent revaluation 646.226 1,931,134 {1,376.988I 1814.732 {1.745.710} 2.269.394 1.340.182 1597.0001 597.000 157,4201 1,282,762 1.986.408 1.334.134 {T19.9881 2,757,312 11.745.710) 3.5S2,156 TOTAL UNRESTRICTED FUNDS 12.860,731 1.334.134 (073,824) 11.074.130) 12.246.911 RESTRICTED FUNDS Change Maker BeWell@StepOne CF03 Health and Social SeNices 12.922 112,922) 1.315 13.808 1,315 13.808 788.047 1.903.356 12.190.538) 500,865 Page 34 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 18. Ststgment of funds {¢ontinuedl Statement of lunds- current year (continued> Balance at 31 March 2022 Balance at 1 April 2021 Transfers inlout Gainsl ILossg$ Income Expenditure South Devon Communty h)using C￿resS Legacy 56.747 97.200 56,747 75.002 (23,1631 954.916 1,919.444 (2.226.623) 647,737 TOTAL OF FUNOS 13,815.647 3,253.$78 (3.100Mn (1.074,1301 12.894,648 Page 35 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 18. Statement of funds {continu8dl Designated Fund$ Pension ScheffE Escrcov Investments related to the defined benefit pens￿ scheme are held in an escrcNrf account. managed by Legal & General on behalf of the Foundation. These investments a￿ not re￿iSable in the short term and are lo be used lo meet the pension scheme habilrties and hence an ￿OUnt equal lo the liability is designated fty these Pufposes. eaufort A sum of £1.4m was transferred lo the Escrrmf account w) reL811￿ to the purchase of Beaufort House, under agreemenl wrth the pension scheme trust*s wlK¢ hokl a charge over the Property. The pension scheme is no longer in defi¢it foll¢yMng repawnents made by the Trust and the Trustees are not expecting to use the procee(Is from Beaufort House to fund the pension, therefore this ba￿nce has been released. Tan Fixed A Re The tangl￿e fixed asset reserve is maintained at an amount equNalent to net book value of the assets with an amount equivalent lo the depreuats.on lo te expended out of the fund in the year. ture Sustainabili A fund was set asmje lo provth for cosls assockiled organisational changes and developments in order to support sustainability in a Changing funding envtrronmenl_ This provides for essential restructuring costs and investment in business devel¢j￿ent and the creation of new revenue streams in line wi(h the strategic plan. mmi nls Funds have been designated to cover the additional contributions to the defined benefrt pen5ton scheme of £17.$00 per month until 31 March 2022 (see note 24 for details). Investment Volatilty Fund A fund has been set aside to he¥> guwd against any fvIU￿ therse volatilty in erther investment vduations or fnovemenl ￿ the pens*)n fund def*it Restrlcted Funds. Cha e Maker A fund to enable a su¢¢essful transitic￿ of dients from train￿9 into emffjnent by covering the costs of necessary licenses and eqUip￿￿nt. ewell A fund Set up to support menta he81th aThJ well￿"n9 to those in the communty. CF03 A fund set ￿ to Teplace the Change Maker lund. It is a volunlary pro9Tamme lunded by the Shaw Trust designed lo he￿ pe￿Ie wrthin the justs.ce system prepare foi when they leave custody and re-enter the communty. Where capital items have been purehased ovl of restricted fvnds, the expendrture is sh¢)wn on the Statement of Financial Actwities as a transler from restricted to unrestricted fvnds. Heahh and Social Se These are fijnds transferred from CCT IsubsKlkiry chantyl on 31 March 2022. As the obje¢ts of CCT are narrower than those of Step One Chanty, the unrestricted hjnds of CCT are treated as a ￿$tr￿ted lund within these consolidated financk41 statements. South De mmun Hou This represents fvnds received from South Devcffj CoMm￿ty Housing Soc*ty to provide support to Page 36 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2022 18. Ststqment of funds (Continued) People aged over 16 in South Devon. ress L For funding of nursin9 and patient care * Cypress Hospital. Stsl•m•nt of funds- prior year Balance at 31 March 2021 Balan￿ at 1 April 2020 Transfers inloyt Gaingj {Losses) In￿ne Expendrtu UNRESTRICTED FUNDS. DESIGNATED FUNDS Pension scheme escrow 2,OW.726 1,41XI.000 433,650 2.434,376 1.4CK),OC4) Beaufort House Tangible fixed asset reserve Future sustsinabilty Penston CoMmitn￿nts Investment Volatilty Reserve 4.690.916 195,371) 3,311 4,598.856 244.568 130.977) 213.591 437,SLX) (210.￿0} 227,500 2.000.CK)O 2,1X)O,000 8,773.710 {95,3711 1.762,334 433,650 10,874,323 GENERAL FUNDS General after pension Irabilty Unrealised investment revaluation 121.254 709.584 11.456.052) 11,762.334) 3.033,774 646,226 1.340,182 1,340,182 1.461,436 709.584 (1,4&8.052) {1,762.334) 3.033,774 1.986,408 TOTAL UNRESTRICTED FUNOS 10.235.146 709.584 11.551,423) 3,467,424 12,860.731 RESTRICTED FUNDS Change Maker 15,922 13.0001 12.922 Page 37 STEP ONE CHARITY {A COMPANY LIMITED BY GUARAKfEE NOTES TO THE FINANCIAL STATEAIENTS FOR THE YEAR ENDED 31 MARCH 2022 18. Statement of funds Icontinuedl Statement of funds- prior year (continued) Balance al 31 Mareh 2021 Balan￿ at 1 April 2020 Transfers inloirt Gainsl Losses) Income Expenditure Heakh arKI Socid se￿ICe$ 377.949 2.605,236 {2.041,1911 941,994 393.871 2,605,236 {2.044,191} 9S4,916 TOTAL OF FUNDS 10.629.017 3.314.820 13,595.614} 3.467,424 13.815,647 19. Analysis of net assets belween funds Analysls of net assets betlveen funds- cuffent year Unrestricted Restricted funds funds 2022 2022 Totsl funds 2022 Tangible fixed assets Fixed asset investments Investment propety CurTenl assets C￿ditOrS due within one year 2.744.050 6.326,044 2.279,726 1.746.243 (849.152) 2,744,OSO 6.326,044 2.279,726 847.730 2.593,973 1199.9931 {1,049.1451 TOTAL 12.246.911 647.737 12,894,648 Page 38 STEP ONE CHA￿Ty IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 19. Analysls of net assets belween funds Icontinued) Analysis of net assets between funds- prior year Unrestiicted hjnds 2021 Restl￿tell funds 2021 Total funds 2021 Tangible fixed assets Fixe¢J asset investments Invgslment property Current assets 2.814.723 7.909.920 1.784.133 1.782.513 1291,0581 11,139.5001 2,814.723 7,909,920 1.784.133 1.111,842 2.894.355 {135.417} 1426,4751 121,5091 {1,161,0091 Creditors due within one year Provisions for I￿bil￿1eS and charges TOTAL 12.860.731 954,916 13,815.647 Reconciliation of net movement In funds to n•t cash flow from operating activities Group 2022 Group 2021 Net in¢ome for the year las per Statement of Financial Actmlies) 748,409 1,698,630 ADJUSTMENTS FOR: DepreciatHJn charges Lossesl (gains) on investrnents Dividends, interests and rents from in¥estnwts Decrease in debtors Increase in ¢￿ditorS Drfleience beN¥een pen￿On charge and cash ¢￿trIbUt￿lS Investment fees 93,836 95.371 1595,2771 11,979,424} 1108,8651 1106,336} 25.998 37,512 622.630 101,9SO 1178,5091 {130,544} 62,032 54,904 NET CASH PROVIDED 8YI{USED IN) OPERATING ACnVrnES 670,254 1227,937) Page 39 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 21. Analysis of cash and ￿$h equivalents Group 2022 Group 2021 Cash in harKI 752,415 105,325 TOTAL CASH AND CASH EQUIVALENTS 752.416 105,325 22. Analysis of Changes in net debt Changes in market value and •xchange rat• At 31 March 2021 Cash Ilows movements 2022 Cash at bank and in harKI Liquhl investments 105.325 2.434.376 647.090 752N15 {921.475I 1.512.901 2.539.701 647.090 1921,4751 2.265.316 Pension eommitments Defined Contribution schemes A defined conlributK>ll gr(￿p Fersonal pension scheme is prwded to CCT ￿phYeeS, operated by Scottish Widows. Cost of the contributions in the year was £40.877 {2021". £36.5871. Some employees have membership of the NHS pension scheme. a mUlt￿eMploYer ¢Jefined benefrt scheme whKh is accounted for as a defined contribution scheme as there is rnsufficient information to account for il as a defined benefit Scheme. Cost of the contribLrtKJns in the year VAS £3,619 (2021.. £3.8861. There is no 'abilty to the scheme olher than for these contributions. The Group operates a defined benefil pension stheme. Step One operates a pension scheme for all qualfyng efnployees. The assets of the Scheme are held in s8parate trustee administered fvnd. The scheme closed to flrture acuual on 1 September 2001. A schedule of contributions is agreed beknn the Foynd*ion and the T￿￿tee after each comprehensive actuarial valuath)n. The most recenliy completed full actuarial valuation t(M)k place as at 5 April 2020. Under the agreed schedule of ￿ntrIbutIOns, Slep One shall pay witributions to the scheme of £17,500 per month until 31 March 2022 and onelloff pa￿Tr￿S of £442,698 in April 2021, £1,595.762 in June 2021 aTrJ £459,000 on or before 31 March 2022. Paye 40 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 23. Pension commitments I￿ntinued) Principal actU8nal asswW"ons at the Balance sheet date (expressed as weighted averages).. At 31 Mirch At 31 March 2022 2021 Discount rate Rate of price inflaticffi- RPI Rate of prtce inllall￿- CPI Defer￿ pension in¢￿se$ IMn￿MPl Pension increases in pa￿ent 2.65 5.50 4.70 4.70 s.00 1.90 3.65 2.85 2.85 5.00 At 31 March At 31 March 2022 2021 Years Years Mortalty rates {in yea￿} - for a male aged 65 now - al 65 for a male aged 45 now - for a female aged 65 nc - at 65 for a femoje aged 45 21.1 119. 22.0 21.0 22.0 23.4 24.6 23.5 122.3 The Group's share of the assets in the scheme was: At 31 March Al 31 March 2022 2021 £OOO$ £OOOs Equibes Gilts 2.599 2.662 4.574 3.645 457 8.815 4.291 2,473 2,854 4.945 2,983 125 6,768 5,731 co￿orate bond$ Propety Cash and other liqu￿ assets Absolute relum l Diversir￿d grrywth fvThJ$ Insured annuities TOTAL FAIR VALUE OF ASSErs 27.043 25,879 The actual ￿luM on scheme assets was £8.00012021- £1.529,￿o). 41 STEP ONE CHARITY (A COMPANY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 23. Pension commitments (continued) The amounts recogntsed in the Consoklated Stslemenl of Financi81 ActNitses a￿ as follow5.' 2022 2021 Past service cost Interest cost Administrative expenses TOTAL AMOUNT RECOGNISED IN THE CONSOUDATED STATEMENT OF FINANCIAL ACTIVITIES (6931 (4) 100 25 (5971 The PenS￿n Scheme hokls a number of insured annu￿e$ ￿￿[e￿ •) the Tru$tees' name. These pensions have been receNing increases of 6% per annum in respect of pensionable service prior lo 6 April 1997. Upon legal advice. the Trustees and Slep One agreed to change the increases frcxn 1 August 202110 reflect the scheme rules. As a result, the future cost of these pens￿nS will be less than previously expected. The ￿s￿lIant ￿dU￿.On in obl￿al￿)n of £693.000 (see above) has been deatt wth in these accounts as a negatwe past sefvte cost. Movements in the present value of the defined benefit obj￿01￿ were as follows: 2022 £OOOs Openin9 defir￿d benefft oblNJatK)n Benefrts paid Intere51 cost on defined benefft Obl￿at￿)n Past sermce costs Actualrial {gain)noss 27.018 11,4511 soo 16931 12.627) CLOSING DEFINED BENEFIT OBUGATION 22,747 Movements in the fair Va￿ of the Group's share of scheme asset$ were as lollows.. 2022 £OOOs Opening fair vahje of scheme assets Interest Income Return less interest inccxne on scheme assets contribut￿n$ by the empwr Benefts pa￿1 Administration Exws 25,879 {4961 2.707 11.4511 1100) CLOSING FAIR VALUE OF SCHEME ASSETS 27.043 The Group h8s an unrecognI￿ S￿￿k1$ of £4.296,lY)0 {2021 - £ -) in respect of ils defined benefit pension scheme as il does not expect lo recover the plan surplus either through reduced contributions in Ihe future or through refunds from the plan. In addit￿ to the above. a liabilty of £108k has been accrued in ￿Pect of the settlement of the Page 42 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 MARCH 2022 Pension commitsnents l¢oThlinuedl Community Care Trust (South West) Linited Pension Scheme. 24. Operatlng lthwe commilrnents Al 31 Mareh 2022 the Gr￿Jp arKI the cOrn￿Y hwj commthients lo make luture minimum lease payments under non4anCel￿b1e operntirg leases as folbws." Group 2022 Group 2021 Company 2022 Company 2021 Not later than 1 y Later than 1 year a￿[ not l*er than S years 19.471 20.676 37.139 17,C68 19A71 20.676 2,975 248 40,147 54.207 40.147 3,223 25. Related party transactlons step One charged a rental fee of £100.CO) 12(r21.' £90,0001 to Communty Care Trust Isoulh Wesl} Limited. a subsidkary charity of Step One. At the year end. a balance of £nil12021.' £971.9971 was owed to CCT by Step One. There were no other related paty t￿￿7clI0nS during Ihe period. 26. Net Share of joint venture pn>frt Steps to Employment Limrted. registered company number 09282877. is a company Ibmited by shares and estsblished under a joint venture agreement belween St Loye's FoundatKJn, Enham Twst Iregislered company number 00173199 and regISte￿d chaiity number 2112351 and Portland College (registered Company number 00408340 and ￿gistered charty number 2143391. Step One Charity holds 33% of the shares of Steps lo Employinent knmited. wh￿h commenced trading on 1 September 2015. It provides speualist training and ￿habilita1￿jn for disabled people lo help them relum to sustainable empk)yment and may subconlrad work lo the shareholders and other parties. 27. Post balance sheet 8vents Following the year end, ￿ offer has accepted on the sale of Beaufort House al a price of £3,550.Crf)O. The investment protM)rtion of this propety held by Step One Charty has been revalued in the year to reflect its sale value. Following the year end, Step One charity exchanged contracls on the purchase of Beacon Lane. a prcpety in Exeter. The purchase has been agreed * a cost of £580.000. P￿e 43 STEP ONE CHARITY {A COMPANY UMITEO BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 MARCH 2022 Community Care Tntst {South Westl Limt•d Slep One Chanty controls 75% ofthe voting right5 of Community ca￿ Trust (South We5tl Ltd. which was acquired on 1 April 2015. Community Care Trust (South Wesll Ltd is a chantable company limited by guarantee. ￿lstered company number 2420393 and ￿lStered charity number 1007781. 11 provides range of seNi¢es to SUPFty>l recovery from mentsl heallh FXCt*lems and fulfils a nwnber of commissioned contracts from NHS organisations. On 31 March 2022. the total value of assets and Ikabilties were transferred ftcwn Community Care Trust lo Slep One Charity Resutts from Communty Cwe Trust (South West) a￿ rerAgnised within the Consolidated Financial ststements and Summ￿Sed belcNI. Stat f Financial rend 1 March 2022 2021 Income from: Donations and legacies Chaiilable activities Total 1.039 1.903,283 1.904.322 97,279 2,507,957 2.605,236 Expenditure on: Charitable activities Transfer of net assets Net movement in funds 2.229.499 616,821 (941.998) 2.041,187 564,049 P4e 44