Reglstsr•d number: 00393477 Charity nwDb•r. 236434 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ? Bishop Flerning STEP ONE CHARITY (A COMPANY LlhlTED BY GUARANTEEI CONTENTS Page R•f•r•nG• and adrninlstrth• detalls of the company* its Trust•es and advlsers Trustees. r•port Independent audltorJ' report on the financlal statements Stat•ment of flnancial actlvitl•s 9-12 13 Balance sheol 14 Statement of cagh Ilo 15 Note5 to the flnanclal statements 16-36 STEP ONE CHARirf {A COMPANY UMITEO BY GUARANTEE) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Dlrectorn and Trustses Mr R Gofton Mr R William$ Mts S Sutherland. Chair Dr P Cawthron Mr D Hawes MrMLam Mr C Pallot (resigned 11 June 20241 Mrs K O'shaughnessy MrA Antony lappointed 12 DeceTrts 2023) Mr M {resYr￿d 12 Decern￿ 2023) Company reglst•red number fKJ393477 Charlty reglsterod number 235434 Rogisterèd offlce The X Centre Commercial Road Exeter Devon EX2 4AD Page 1 STEP ONE CHARITY (A COMPANY UMITED BY GUARANTEe) REFERENCE ANO ADIAINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Chl•f executlve offic•r Mr B Greaves Indepefid•nt audltors Flthnng LLP Chartered A¢￿untrnts 2nd FI￿1 Slralus Hlxffje Emperor Way Exeter Busmess Park Exeter EX1 3as Bankwts Natonal Westminster Bank Pk 59 Hhjh Street Exeter Devon EX4 3DP Page 2 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTE IF￿RoDUCTION The Trustees present their annual reP￿t 10gett*r with the audited f￿ancIal sLit¢>nents of the Company for the year 1 April 2023 to 31 March 2024. The Annual Report setves the purposes of bcrth a Tru$lees' Teport d a Directors. report urKler CCrfnp￿Y L*¥. The Trustees confirm that the Annual Report and financial statements of the charilatde company comply with the current statutory requirements, the requiremenls of the charitable company's governing dcrtument and the provi¥ion¥ of the Statement of Recommended Practice {SORPI applicable to ¢harities preparing thwr accounts in accordance wth the Financial Report#ig Skndard applicable in the UK and Repub￿ of Ireland (FRS1021 leffeclNe 1 January 20191. ObJocllv•s The principal obje¢lives of Ihe Charity are lo provKle sUpp￿t for people with physical. mental health. sensory and other disalililies, or those Wbth long-temi health coThJith?ns. in order lo improve their quality of life aTh degree of independence and prOv￿e the opportuntty to *hieve tlwr potential through personal d8velopmenl. training and employm￿1. The Board of Trustees has glven regard lo the legislative and ￿ulatOry requirements for (th"sclosing how ils charitable objeclives have provided benefit to publK and confimls it ha$ ¢ompliad with the duties as set out. This report oudines how our achievements dur￿9 the period have benefited the public. In setting objectNes and planning for activibes, the Trustees have given due ￿nsideratIon lo general guidance published by the Charity Crynmission relating to publc benefiL including the gu￿anCe 'Public benefit.. running a charity IPB21'. Strateglc report The following sections eortstrtute ihe strategic report for the purpose5 of the Ccffnpanies Act 2006. This strategic report forms part of the Report of the Board. Followin9 the $lralegr rewew whith was c￿np￿ted durirKJ the previous year, the Charity has Started to deliver the &Year pl￿ which, is based M.. Securing the core- enswing that exth'ry Tpervi￿ and protected aThJ deveh)ped as a cornerstone of delivering our charitable obJ"ectives: BuildiTrJ new buyness- provKlirvJ CYeratv)n￿ and financral resilience lo the business model.. and Dwersifying the client base- ensurirrfj that we ddp4er our SeN•￿ to as many people that nee(1 them as possible. In delivering these strategic obj'ectives. duriTrJ the yew Ihe tharity ha$.. secured ngw commissioned Contra￿$. diversified the propety estate. acquired a he&J office and ddwery space (The X Centrel,. rebranded.. and developed our fundraising ¢ap*lity. These achievements and an overvthv of devebynents in the business are covered in more detail below. 11 Cypress Hosprtal. Following a review of the W￿er bed str*egy in Devcm with The Provider Collaborative, Integrated Care Board IICBI and Devon Partnership Trust IDPT), Cypress Hospital changed its service provision during the year, from crisis lo intensive rehablrtation and recov&ry. and was commissioned to provide 8 beds from a total avadakn.lty on%te of 14. This was a smooth and Suc￿sful transition and since April 2024, Cypress is full against this commissth. The Cypress contract ended in Mar¢h 2024. with a 6-m(th extens￿* through to 30 September 2024 was agreed lo enable negobation5 for a new twtryear contrxt lo be finalised. As p2rt of this negolialion, we are seeking an infiats'onary uphft in income. Cypress received an unannoun¢ed aualty Care c(¥nMiss￿ Mentsl Health Act (MHAI monitoring visit in August 23. The visrting team identified no oM¢em$ regardiThJ the use of the MHA and compliance with the Codes of Practice and raised no act￿ as a result of the vtsiL Colleagues at Cypress continue to providè an outstanding level of WV1￿ and during the year. 33 people wilh complex menta healih needs recebved expert care. Page 3 STEP ONE CHARITY IA COMPANY UMrrED BY GUARAKfEE 21 Granvue. This propety which had w￿￿ded crises care h*1 been removed from the overall CypresslGwvue c¢Jnlracl in order to maximise the v*e of the conlracl for Step One Charity (SOC). Sin¢e then, Granvue has been commiss￿)ned separately into a 24hr supported INing property. As al the end of the financi￿ year. Granvue was underwng refU￿iShment a￿1 is scheduled to be operational in Q1 of the next finanrjal year. This is a new seThice for SOC arKJ whilst there 15 some uncertainty over the v￿bIl￿ of any new model. there is a high level of confidence that this will not only provide an invaluable seNice to the community and wider NHS provision in the area bul also genefale meaningful inconk that can be replicated elsewhere in the region. 31 Support Lmng and Communty SupF¢rL This service has continued to run effeciively and all properties have been close to f￿1 crtcuparLy the yeaf. The Beacon Lane extension was successfully completed during the year, increasing the number of separate bedrocvns to 6 and helping lo realise the projected income for this parti¢ular prcperty. 70 people were suppc*1ed through this service to thrive in the communty. 41 BeWell@SlepOne. Imiilst the ser¥rE has C<￿tInUed to do well with 550 people receiving mental he￿th support durng the year. progress on the development of this Se￿￿e has been slower than we planned due to changes in staffing. The (per*"r¥J model for the Se￿ICe. which balances the delivery of free servi¢e$ lo those in the community most in need. with commercial, fee-paying designed to ultimatety fund the seN1￿, 1$ in place, with delivery starting in the nexi financial year. 51 The Devon Mental Healih Alh'an¢e I'DMHA'I. SOC are the o)nlract hotsjws for thi5 partnership, and we have recently solidified what that means ￿ terms of Lwi role. This sees us in much more of a proactive leadershp role. being presenl al Corrtract R8viffw Meetings with our statutory partners as well a5 deliveiing the Recovery Praetrtioner service. The Alliance is currently wothing through a sei*s of 'blue sky thinking, events with the slalutory partners to see how we can best shape the Alliance foi the future and this indicates a positive desire for the AllianGe to ¢ontsnue inlo the short lo mediwn term al least. Whilst the Allian¢e is unlikely to generale sunificant irtt¥ne, rt does enable the Chafty lo build its influence and partnerships in support of the 5-Year Plan. i)rfer 3.0(Kl SessiC￿ were ddNwe(I by DMHA dumg the year. 6} Employment Services. This contract with the system and referred to as CF03 was due to end in August 2023 but was extended lo the 31 December 2023 to provide tThne to try and secure a new contract. We We￿ not able to do this, h)wever. as the contract (ywner essenliaty di%nvested fr¢yn the CF03 service PTOV15ion. During the tyght Ye￿ of ihis service. over 1.1X￿ people were SUFQOrted with release and integration inlD the community. 71 Fundraising. Follthving th& recruitmenl of a fundraisng manager a revised fundraising strategy has been approved by Trustees the team ts rw beginning the delivery phase of this. The development of the new BeWell@stepOne service is integral to this as rt presen1$ the most tangible and visible opportunity lo fundraise for and we can. Iherefore. expect lo see the impact of this in 2024. The new team has also been very proactive wi developing slrategK partrwshps arby we have already seen sile vists {wilh donations) lo The X Centre frcffi a number of large nat￿lnal and Mult￿natiOnal orgaThsats'ons. 8} Acquisition of a new head office. The purchase of The X Centre was sUc￿SSI￿11Y completed al the erKI of October 2023. We desp3ned a phased pattrrway to OcC￿at￿)n from initial to full operating capability, rea¢hiNJ the latter al the eTrJ of the finwcial year. Staff use The X Centre as a he￿ office arKI have the ability to Work in both hybri¢J and flexible ways and Il provides a Iruty outstanding location to work from on the Exeter quayside. The X Centre is also used as a ddivery space for BeWell@StepOne and other services and prowdes a wami welcome lo our serwce users arKI presence f¢y the Charrty in the city of Exeter. 9) Le•Jership. During the yew. there ha¥e been several personnel changes amongst the Senior Leadership Team {SLT). Mthilsl this has caused a perK#J of change and a I￿k of continuity. il has provided an opportunity lo design a more effective arKt leaner SLT strwture, hiring talent that can detsver the 5-Year Plan. Thi$ team 1$ Th)w in place. we are I￿)king fopward to a more settled period of leadership to drNe fonvard the W￿lon. 101 Our people. Our people are our most I￿p￿t￿lI asset and whitsl the broader market condib.ons make recruitment a￿1 retention challerwing. we have, and continue to, imiest in our peoe through a wide and deep lange ol people focused ￿rtIal￿es. The WO￿ our peop￿ do is I[￿rediblY challenging, and it is difficult lo renumerate our people as much as we would I￿e lo. We endeav￿r to offset that through other measures su¢h as, staff wellbeing initiatrves and by crealing an inclusive, supportive culture. P•Je 4 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) Futur• d•v•lopm•Thts The pmrities for the next year irKaude.' Finalising negth'ation5 for the Cypress contrxt,. Expanding services delivered trcth accommodated property through a ccffnbinatbn of the exi5tirvJ supported living models.. 24hr supported INing'. and1￿ a new concept in development known as P$y¢hologIcal￿ Infomed EnviroM)ents IPIE). The Charity is currenlty conducting analysis around the best options which balance the need lo meet our chanlable objectives to provide excellenl services to our beneficiaries with the service wh￿h offer5 the besl relum on investment. Development of CLNnrracial semces within BeWell@SlepOne, which win enable the charity lo buih its reputation, brand and partnershws which. in tum, thill enabbe income generation and the momentum required of the growth prcgramme. Oelivery of the new Fund¥aising Strategy, induding the Champ￿)nIng of various fvndraising evenl$ during the year. Flnanclal Review The financial sLit￿entS shchy a total inc(Yne f￿ the year of £3.(kn, a decrease of £O.&n from 2023. The prior year income irKlwJed L￿e off income of £0.6 from the sale of Beaufort House and therefore rf IIM'S were excluded, the income of the ¢hanty has onty decreased by £17k year cffi year. This overall fall in income is the result of the loss of the CF03 employment services contrxt a fall in income from the Charity's listed investments, offset by ￿ increase in support provided by the community team5. increased rentals from the supported kving a¢¢ommodab'on a￿1 the re¢eyl of a £7￿ legacy. Total expenditure for the year was £3.9m ccryared to £3.8m in 2023. This larg* fellects the impact of infialionary pressures on staffing costs and general areas of eyndrture. The nel expenditure before inveslments and Pen￿On5 are taken into account was a deficit of £1.Om compared to £0.2m defv"l in 2023. T￿"$ £0.7m decline, is largety due to Ihe £0.6m one off income from the sale of property in 2023. The investments of Ch*ity we held #i iwo separatety m*wed p￿￿￿105 Ihal are balanced ￿ order to maintain potenlpl for bnger term grtjwth in Ca￿ts￿ v￿￿e. bul which also allow for funds lo be withdrawn at short notice should the need a[￿e. The investment perfornance reflected mthet conditions and a gain of £0.1m on the investment valuation is recognised, c4Jmpared to a net loss of £0.3m in 2023. The annual update of the pension s¢heme vduath)n as at 31 March 2024 slKMied a decrease in the value of the scheme assets by £0.4m lo £22.Lkn) as the beneffts paid were mtre than the investment relurns and fees paid to advisors. The wesent value of the scheme Ihqbilities has also decreased by £1.Chn lo £17.Om as the benefit$ paid and a¢tuarial gain have exceeded the I￿reaSed costs. The Charity has an unreccgni$sd surplus of £4.5m in respect of its defined ￿nerrt pension scheme ¢ompared to a surplus of £4.4m in 2023. However, in line with accounting disdosures ¢(￿￿1ned withui the FRS 102 year*nd pension ￿pOrt, the recognised assets have been restrKled lo the value of the defined benefft obligation only, meaning this surplus is not recognised as a gain within Ihe consolidated statement of financial activities for 2024. No contribution$ have been made to Ihe defined benefft pensKffl scheme during the year12023.' nill. TakiTrJ all of ihe above into account re$￿ts in an overall net of fvnds of £0.8m with total funds ¢arried fopNard of£11.7m at the year end. Flnanclal Po8ltlon Financially. the Charity has Kerfomed in ￿ne to the fOr￿aSt approvgd by Trustees Ixrt remains in a defficit position. The key driveTS for this are a lack of inflationary upkfts to ojr commissioned service contracts. ¢oupled w¢th inflationary pressu￿ on the staff overhead costs. The 5-Year Plan addresses this deficit and is designed to bring the Chanty lo a brea(-even poinL Of note. the Trustee$ appl￿ additional scrutiny and challenge to the deficit position, convening an Extraordinary Board to do so. As a result. the S-YeaT Plan has been underpinned and evKJeneed by finan¢ial forecast scenaiio planning which the Board have been involved in and approved. Financial perfomiance can nfAY be trxked much more accurately and effectively, 8nabling relevant levers to be used at quarterty finar￿e c(¥nmrttee meetings and Boards according to perfornance. The financial plans also ensure that the Charity has aFvropriate fund5 avalable lo support the delNery of its objectives. Pagè S STEP ONE CHARITY (A COMPANY UIAITED BY GUARANTEE) As such, after making appropriate enquiries, the Trustees have a leasonab￿ expectation that the Company has adequate resources to continue in operath)nal existence for the foreseeable future. For this reason. they continue lo adopt the going corKem basis in prepanng the financial sLqtemenls. Furttrer details regarding the adoption of the gowu concem basis be found in the accounting polims. In Ihe Board's view, a min•num level of unrestrthd reserves shoukl b8 maints'ned to provide adèqual& finan¢ial stability and the meaDS for rt to meet rts tharit*Jle objectives for the foreseeable future. The Board reviews the anount of reserves requirèj at least on an annual basis and ￿CeiVeS financial repO￿.￿j on a regular basis lo alkJw them lo moimtor the l*ely movement on reserves in any gven year. The Board prlwoses to m￿ntaIn general unrestricted resernts at a level wh￿h is at least equivalent to six months, operational expenditure. plus redundancy provision. The target level of reserves for 2024 had been set at £2.2m and at the yearond this has been ￿h￿Ved wrth a level of reserves of £2.3m. At the year end there were £77.OW (2023: £135.0￿) of ￿$t￿Cted reseryes which relate to specific grants and funding. The Board is I￿113ed to designate funding to offsel penstcffi liabilities as assessed by the Foundation's actuary. The designaled reswve shoLthJ match the amounts held in Ihe escrow account that cover the pension schwne funding deficrt aThJ any afi￿￿nts due under the current s¢hedule of conlribulions. The escrow aecr￿n1 fund had a balance of £1.6m al year eTrJ making a total of £1.6m designated for pension abilities. The 8oard atso de*gnates fwKl$ to swp)rt other speufic purwses with separatety identffiable costs and a business case demonstrating clear benefft acros5 the organisation and support for the charttable objects. Further delails of these designations are provthjed in the notes to the account5. Risks and uncertalntles The organisalion has a strong framewcffk in pLace to M￿rtor and mitigate maicrf risks lo which it may be￿rne exposed. Risks are regularty revithved by the Board and ils sub-committees or Working Groups. Commercial and financial risks are considwed by the Fin￿Ce & Audit Committee using extemal athice where appropriate. There are robust systerp.s for quaty asSUrar￿￿ and compliance through the Qualty Assurance and Improvement Ccfflmittee that are used to infom a process of conts"nL￿S improvement and provide further assurance on identi￿￿On and rnanag￿￿I of risk. The principal business risks that have been identified as f￿4n9 the ch¥ity ¢)vw the next 12 months. including the key mitigaling action to redu￿ this it inthdes: a. Cashflow shorIf￿, arising from the deficit ￿sI￿on and failure to secure new Ir￿A￿l. The 5 Year Plan ￿￿0vide3 the basis lor the Charity to achieve a break-even position thrtyjgh developing new commissb)ned services and developiThJ m(*e commercial offerings. The Trustees have considered the financial plan developed to SUFPOrt the 5 Yw Plan are satisfied that the Charty has sufficient level of inveslmenls and reserves to SLPFQrt the cuffenl deficit position. b. Lack of new contract opptytunitie$ and the potentol loss of the Cypress contrxt. The SLT are continuir4J lo discuss opportunities with the various commissioning bodies in order lo secure and grow the charity's future IncC￿ne. Negotiations regarding the Cypress ccffltract remain ongoing at the year end but the Trustees are hopelul for the contract to be extet)ded through to March 2026 and for there to be an uplrft in contract Value. Ensuring there are adequate and skn.lled staff to delNer swyices aThl fulfil contr&tual obligalions. Recruitment and retention Mthin the healthcare sector continues lo be a challenge across the country and the Charity continues to review appropriate staffijvj levels. the mix of staff being used and ways lo recruit and retain staff. d. RedLKed avalabih'ty of fundraising income wising in part frc4n the ¢osl•of-living crises. A new fundraising strategy has been developed, to halp Ic￿$ ￿ xtivities of the fuThJraising lean and this has been 8UPPOrted by Ihe chantys rebranding in 202Y24 arKI programme of fundraising activitses developed for 2024f25. P•Je 6 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE) structuro. govemance and managomfrnt SOC is a company limited by guarantee and is regsterod as a charity with the Charity Commission (No. 2354341. The name was changed from Sl Loye's Foundation on 21 December 2016 to proV￿e a new trading name for the group foll¢)wing the acquiwtion of CrAnmunity Care TnJsl (South West) Limited as a subsidiary in 2015 and a periDJ of review a￿1 ¢￿su1t￿.￿. The Trustees constiluie the Board of Management of the charity and are also directors of the company th overall responsibility for governance. The Board meets to agree strategi¢ and operational plans and monilor progress against them. The Board delegales the day to day runniig of the charity to Senity Leadership Team, provKling advice and guidance as •propriale. Board mernbgrs may also serve on c￿nMrtteeS or orerat¥)nd gr ensure that the financial slatwnenls compty wrth the Companies Act 2006. They are also respons*¥le frar safeguarding the assets of the group and the company and hence for taking reascMwt4e sleps for the prevention and detection of fraud and other irregularrties. Dlsclosure of Inforniatlon to audlto¥• Each of the persons who are Trustegs at the time ¥then this Trustees, rep)rt 1$ appr¢)ved has confirmed that.. So far as that Twstee i8 ￿are. there is rK> relevant audit infom7atK￿ of which the ¢h*it*le groLV'S audrtors are unaware. and That Trustee has taken all the steps that 0￿h1 to have been taken as a Trustee in order to be awar& of any relevant aLhlit infom)atkM and to eslabltsh that ￿ charitable group's auditors are aware# of that informats'on. Audltors The auditors. Bi$hop Fleming LLP. have induted th￿r Willingr￿SS to continue in office. The designated Tnjstees will propose a motion reappointing the audbtors at a meeting of the Trustees. Approved by order of the members ofthe board ofTrLtstees on signed M thw'r behalf by.. Mrs S Sulh•rland Chair Step One Char 10 6eyeMI)er Page 8 STEP ONE CHARI IA COMPANY UMITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE GHARITY OPINION We have audrted the fin￿cial statemerfs of Step One Ch* (the 'chaiitable Companl) for the Y￿ erKled 31 March 2024 vthich conwrise the Statement of financial activsties. Ihe Balance sheet. the Statement of cash flow$ and the related notes. induding a summary of sigrifficant accounting policies. The financHI reporting framework thsl has been apP￿"od in their Prepar*1￿ is applicable law United Kingdom A¢￿Untsng Stand￿d$, including Fina￿101 Repth"ng Stsndard 102 'The Financial Reporting Starmlard applic*Jle in the UK and R&public of Ireland. (United Kingdom GeneralyAeeepted Accoynting Practice). In our opinion the finanual statements.. gNe a true and fair of the slat8 of the charilth companls affairs as at 31 March 2024 of its incoming resources and applical*)n of resources. irKluding ils income and expenditu￿ for the year Ih8n erKled: have been property prepared wilh Unrted Kin9*)m G￿e￿allY A￿pIed Accounting Practice.. and have been prepared in acttrfdance T*th requirements ofthe Cryanies Acl 2006. BASIS FOR OPINION We conducted our audrt in accordance wlh Internaticmaf standards on AUditi￿j IUKI IISAS IUK}l and applicable law. Our responsbilities under Ihose standards are further described in the Audi(ors' responsbilities for the audit of th8 financial ststwnpthts seth.on of our reptsrt. We we irKkpendent of the ehwitable company in xcordanee wsth the ethical fequirements that are reknnl lo wr a￿j11 of the financial slalements in the United Kingdom, including the Financial ReportirvJ Councls Ethical Standard, and we have fu￿lled our olheT ethical re$ponsibililies in accordance wilh these requYerr*nt5. We b81e¥e that the audit evide￿ we have ob¢ained is suffici8nl and appropriate lo provide a basis for ¢)ur ¢Jpinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing th8 finanoal statements. we have co￿ll¥j¢d that the Trustees. use of the going concem basis of accoursting in the preparation of the financd SLiteme￿S appioprkgte. Based on the work we have performed. we have not KIentrf￿d matenal uncertainties relth.ng to ev8nls or condrtions that. individually or collectively, may cast SKJnifiwit doubt on the tharrtab￿ ccrfnpanls abilrty to nlinue as a going concem for a peric INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE CHARITY {CONTINUED) OPINIOM ON OTHER ￿TrERs PRESCRIBED BY THE COMPANIES ACT 2008 In our opinion. based on Ihe wwk undert*en in ￿ cowse Of the aLvJit. thè inlomiatitin gNen in the Trustees, Report for the finwK?al year for the fina￿la1 statements are prepwed 15 consistent wtth the financial statements. the Trustees, Report has been prepared in ￿dance wilh appkablg legal requirements. mA￿ERs ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our krb)vAedge and underst*ing of the thariwle ccvnpany its environment obtained in thé course of th8 audit, we have rd identif*d n*ial Trysstat￿￿ts in Twstees, Rewl. We have r￿￿hIng lo rewt in respecl of the folkming m*lers in relatwjn to which Con)panies Act 2006 requires us lo report to Y￿ if, in our opinion.. adequate accounting reeords have not been kept. or retums ajequate for our audit have not been received from branches not vrsiled by us" ot the financial stslenEnts ao not in ￿reem￿ wilh the ar￿nting record$ and retums" or C8rta"n disdosures ol Trustees. remunerat￿ specrfEd by law ￿ not made. or we have not recwved all the infoThnation and explanatIc￿ we require for our RESPONSIBILITIES OF TRUSTEES As explained more fvlty in the Trustees. responsibllrt￿S statemanl. the Tr￿tee5 {who we also the directors of the harrtable company for the purpose5 of company are respcmsible for the preparation of the financial slalemenls and for ti*ng satisfied that they yNe a true arbd fair view. and for such inlemal control as the Trustees delemine is necessary to enable the preparat*M cl statwnents thal are f￿e from material misslalement, whether due lo fraud or error. In preparing the fin￿cial ststemenls. the Truslees a￿ re5pon5ible for assessing the charilable company's abifity to continue as a going concern. discI￿n9. as appI￿able. matters ￿lated to 90ing concem and u$¥ig the wing concem ba515 of accounting unless the Trustees erther intend to IKiuidate the d￿ritable ccthpany or to cease operations. or ha￿ no realistic atteinative l)ut to th so. Page 10 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE CHARITY ICONTINUEDI AUtMTORS' RESPONSIBiunES FOR THE AUW OF THE HNANCIAL STATEMENT8 Our Obl￿tiveS we to obtsn reas￿able assurlrte ab￿rt whether the financial statements as a whole are free from material misslatement, whether due to fraud or error. lo issue an Auditors. report that includes our opinion. Reasonable assurance is a hbJh level of assurance. bul is not a guarantee that an audit conducted in 8ccord8n¢e wrth ISAS IUK) wdl ak¥ays detect a matefial misstatement when * 8XiSts. Misstalemenls can arise from fraud or error and ￿ considered m*eiia rf. ThlNwJualy or in the aggregate. they could reasonably be expected lo infiuence the economic deci8K)ns of users taken ￿ the basi$ of these fvanC￿l State￿nIS. Irrog￿ar1tlS$. including fraud. * Instanc￿ of non Reconclllatlon of funds: Total funds brought fO￿ard Net movement in funds 12.317.9S7 (700.488) 135,016 158.1641 12A62.973 1758.6521 12.894,648 {441,6751 Total funds carrl•d lornvard 11.617A69 76.852 11.694.321 12.452.973 Page 13 STEP ONE CHARI IA COMPANY UMITED BY GUARAKfEE) REGISTERED NUMBER:00393477 BALANCE SHEET AS AT 31 PMRCH 2024 2023 Flxed assets Tangble assets Investments 13 14 3.604.531 6.206.222 2.735.185 7.666,164 9110.753 10.401.349 Current assets Debtor5 InV￿lmentS Cash at bank and in hand 15 16 21 441.811 1,S61.Sg9 512.112 1,412,295 1,815,185 3.205.221 3.739.592 Creditors." amounts falling due wthin o 17 (1,321.6531 11,687,9681 Net current assets 1.883.$68 2,051,624 Totsl assets current li•biliti¢s 11.694.321 12.4S2.973 Totsl n•1 ags•ts 11.694.321 12.4S2,973 Challty funds Reslricled frjnds Unrestricted funds 18 76.852 135,016 OesKJnaled funds General funds 18 18 9,325.738 1291.731 6.116.480 6.201.477 Total unrestricted funds 18 11.617.469 12,317,957 Total funds 11.694.321 12.452,973 The Trustees acknowledge thwr responsiblities f￿ comptying w*h the requirements of the A¢t w￿h respect lo accounting records and preparation of financial Stat￿*￿ts. The financial statements woved and auth￿ 15$￿ by thg Trustges and signed on their behalf by.. r,1 PArs S Sutherland (Chair of Trusleesl Date. as The ncrtes on pages 16 to 36 form part of these fin￿al stata7)&ts. Page 14 STEP ONE CHARITY (A COMPANY UMITED BY GUARANTEE) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Cash flows Irom opwatlng activlti•s Not cash used in q)erating actsvrties 11.182.757) {302.9621 Cash flows Irom Inv•5tlng actl¥iti•s Prwee(Is from the $alg of tangible r￿ed assets Purchase of investrnents Purchase of t￿g￿lIe fixed a55et5 Proceeds from sale of investrnents Interest rgceived 3.431,974 12,3931 {1,450,0001 (933.6551 1616,2421 1.500,01)0 SA31 Not u¥h provldod by Inv•¥tlng acllvill•s S69J83 1,365.732 Change in ¢ash and cash •qufval•nts In the year Cash and cash equivalents al the beginniw of Ihe y 16133741 1,062,770 1,815.185 752,415 Cash and cash equivalents at tho ¢nd of the year 21 1.201.811 1,815,185 The notes on pag85 16 10 36 form pwt ￿ these statements Page 15 STEP ONE CHARIT IA COMPANY UMITEO BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDeD 31 MARCH 2024 GENERAL INFORMATION The Charity is a wisiered wnpany limtsd by gU￿te¢ and wa¥ set up by a Memorandum of Association on 26 February 1945. Tr charities registered number is 235434 the regL8terèd office is The X Centre, Commercial Road. Exeter. EX2 4AD. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The fin￿claI statements have W prepared ￿ xcordance wth the Chanties SORP {FRS 1021- Attcmjnling and Rep)rting by Charities: Stslemenl of Reecrfmiended Pr*￿fr applicable to charities preparing their ￿CountS in accc*dance wth the Financial ReFrf)rtiny Standard appli¢*le in the UK and Republic of Ireland IFRS 1021 leffedive 1 January 2019}. the Finartcial Roporting Standard applicabte in the UK and Republ￿ of Ire￿d IFRS 102) and the Companies Act 2006. Slep One Charity meets the de￿11Th of a benefrt entity under FRS 102. AsS8ts and I￿l￿tieS are initialty recognised at historic￿ ost or value unle5S Otherwi58 Ststed in the relev￿1 accounting policy. 2.2 COhlPANY STATUS The company 15 a Cl￿panY ffimited by guranlee. The membeTS of the company are the Truste68 named on page 1. In the event of the ccrfnpany being *wnd LV. the Ikgbilty in respect of the guarantee is limited to £10 per member of company. 2.3 INCOME All income is rewJnised once the ¢￿￿13nY has entitlemenl to the intjjme, it is probable that the income WIN be ieeeived and the aThJunt of Incr￿ receNable can be measured reliably. The rec(vnit￿n of incc#ne from legaoes is dependent ¢)n establishing entillement, the prOba￿'lIty of r￿elpt and the atmlity lo estwnate th suff￿18nt accuracy the amount Teeeivable. Evidence of enlillement to a legacy exists when the has sufficient evidence that a gfft has been left lo them (through knTh￿dge of the existence of a v￿ld wil and the death of the benefactor) and thg executor is satisfied Ihal the pryrty in quest￿ wil not be* requiod 10 satisfy claims in the estate. Receipt of a legacy must be recognised il that il will oceived and the fail value of the amount receivable. whtth *il gewaly be the expected cash amount to be distributed to the ¢oMp￿y. can b? rdiably rreasur&J. Page 16 STEP ONE CHARITY IA COMPAMY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATeMEiirs FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES {¢oDtlnued 2.4 EXPENDITURE Expendlure is fecognised onc8 th8re is a or construct4v8 obligaion to transfer economic benefrt to a th*d party, rt is probable that a transfer of econom￿ benefits will be required in settlement and the amcmjnt ol the oblualK)n can be MeasU￿d relw. ExPendrt￿e is cla5srfied by actiwty. The costs of each adivty are made up of the totd of d¥ect costs shared costs. inclL*JirMJ support costs i)volved li undertaking each adwty. Direct costs attributable to a singl8 adNty are all￿ated directly to that activfiy. Shared costs wthich contribute to more than (me activity and support CO81$ which are not attr￿ulable to a single actmiy are apportior￿ between those activitie5 on a basis constStent with Ihe use of resources. Central staff eosls are ak*ated on the basi$ of time spent, aThJ depwiat￿)n ctharges alkxated on the Port￿ ￿ Ihe asset's use. Expendrture on raising funds inekKles al expenditure incurred by the company lo rnise funds for its charitable purposes ￿¢1￿￿9$ costs of all ￿ndra￿ing actNities 8venls and non-charitable trading. Expendrture on charftable activ11￿$ Is incvrRd on direth urKJertaking the xtiwtie5 wthich further the company's obj'edwes. as wel as any assctk*ed SL4)POrt eosls. 2.5 INTEREST RECEIVABLE Interest on lunds held on deposrt ts included vthen recervable and the amtyjnt ¢an be measured relobly by the company. this is r￿llY upon noirf￿n of th? inl8re$l paid or payable by the nslrtulK>n wth whom the funds are deFrfJ&ted. 2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION Tangible fixed assets are initdfy recognised al cost. After recognition, under the cost model. tangible fixed assets are measured at eosl less accumulated depre¢￿tIOn and any accumulated impaiment losses. All costs incurred to bring a tangible fixed asset into its intended wthing ￿nditIon should be included in the measurement of cost. Depreciati￿ Is Charged $0 as to alk¢* the cost of tangfole fixed asset$ bss their ￿sIdUal value over their estinaed Ltseful Ipms. the straKJht4n8 m8tlvJd. DepreciatIc￿ is provided on the folhmng ba5es.' Freeh(￿1 prnomic benefft will be required in settlement, and the amount ofth& settlement can be 8Stinaled rdthty. Liabl**s are recogntsed at the amount thal the ccKnpany anlicipatgs rt will pay to settle the debt or the amuni I has reC￿ved as adV￿￿ed PaJTiiwts forthe goods or seNice$ it musl provide. Prowst)ns are measured al the best estimate of the wnounts required to settle the obligation. Where the effect of the time value of money i8 material. the provision is based on the presenl value of those amounts. discounted at the p￿￿taX disctiunl rnle that reflects the risks specrfic lo the liab￿lty. The unwinding of the discount is reecgn¢ed in the Slatemenl of firwicial ￿t￿the$ as a finance ¢ost. 111 FINANCIAL INSTRUMENTS The company On￿ has finanpal assets ffinanc￿ Ik**tses of a kind Ihat qualfy as basie financial inslrumenls. Bawc financial instruments are inrtialty reeognised at transaCt￿n value and subsequently mea$ured al their seltlemenl value Twth the exc8Ptb)n of bank bans which are subseqyenlly rnea$￿ed at amrtised cost ￿n9 the effectNe ￿terest nwthcwj. 112 PENSIONS Dgfined ben￿ft xh The company operated a defined ben8frt scheme, whth required contributions lo be made lo separalety ￿MInistered furKI. This schwne was closed lo members with effect from 6 April 1998. and closed to future benefrt acc￿￿1 fr￿ 1 September 2001. For a defined benefit scheme the amounts ehw9ed to op8ratwig wofft are the cuffent Costs and any gains and losses on selllements and curtailments. They are I￿uded as p24t of staff costs. Past servi¢e costs are charged to operating Thmediat* rf Ihe benefrts have vested. If the benefrts have not vested immediatety. the costs are recognised by equal annual instslmenls over the ppritrJ until vesting occurs. The interest cost and the oxpeded retum on assets are induded as other financ￿1 ir*come. Acluarial gains and losses are recognised wnmedialety ¥1 the Statement of Financial Activit￿$. Defined benefit pensIC￿ s¢her￿S we funded in separate trus￿ ajministeied funds, wlh the as5els of the scheme held separatety fr￿ those of the FouTrJat￿n. Full actuarial valuations are obtained every three yeats and are updated al exh balance sheet dale. The results'ng defined benafil asset or liability is presenled separatety after other net assets on the face of the balance sheet Doflned tontrlbutloTh sclwme The company and rts subs"diary operat& de￿1 conlitJLth¥n pension schemes. Contribuiions ar8 charged to the Statement of Financial Act￿￿￿5 as they becoff* payabk in accordan￿ with the rules of the schemes and are set out in the notes lo Ihe accounts Page 18 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEe) NOTE5 TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IIARCH 2024 ACCOUNTING POLICIES {¢ontinued) 2.13 FUND ACCOUNTING Genefal funds are unrestnded fij1￿$ 7*hith are avaitable for use al the discretion of the Trustee8 in furtherance of the general ¢*JJ8¢lives of the company and have not been designatad for other purposes. DesrJnal•d fund5 corrpnse unreslrieled funds that ha￿ been set aside by the Trustees for particular purposes. The avn use of e¥h dwnated fund is set out in the notes to the financial State￿nIS. Restricted funds are funds whrh are lo be used ￿ accor(lance ￿th specific restrKtions imposed by donors or vthich have been raised by the conyany for partKular purposes. The costs of raising and ministering such funds are chaiged ag￿nSt the specbk fund. The aKn and use of each restrided fund is sel out in the Mtes to the financial statements. Inv8Stment I￿aMe. gains and k)sses ￿ akKaied to the approprth fiJrKI. Ptye 19 STEP ONE CHARITY (A COMPANY UMITED BY GUARAp¥fEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 C￿TICAL ACCOUNTING ESTIIAATES AND AREAS OF JUDGMeMT The company makes estsmates and assuiY¥XMs conceming the futu￿. The resulting accounting e5tinates and a￿uMp￿.0ns wll, by definition. seldom equal th8 related actual resutts. The eslimales and assumptions that have a synlfieant risk of causing a matenal a(ljuslment to the C￿Ing amounts of assets ar¥J l*)ilrties wittsn Ihg next fywicial yw we dtscussed beltr*. Crtkal xccthing estrmates and assumpth)ns' penS￿n Valu* Dep￿ciall0n Impaimient of property Eslimales and judgments are conknu* evthated arwj are based on hislori¢al experience and other factors, irKludiig expectations of future events t￿1 are believed to b8 raasonable under the cireumstanees. Pension va￿allon - this i8 updated annually by ￿ extemal actuary w*h assumptions assessed for reasonableness. Inyaim)enl of property - the Charity wis several pir4)erties and Ihe crycing value af ea¢h is assessed where Ihere is any concern regardry the fair value. STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INCOME FROM DONATIONS AND LEGACIES Unrtstricted funds 2024 Total funds 2024 T(rtal funds 2023 Donations Legacies 19.437 93,732 19.437 93,732 17.446 15,163 113.169 113.169 32.609 TOTAL 2023 32.609 32.609 INCOME FROM CHARITABLE ACTMTIES Total funds 2024 Total funds 2023 funds 2024 funds 2024 EMPkn￿ent and training servKes Health and s(Kial care 52 2.547.645 45,300 45,362 2.547.645 182,673 2,548.133 2,547,697 45,300 2.592.997 2.730.81 TOTAL 2023 2.664.834 65,972 2,730,8C6 IMVESTMENT INCOME Unrostricted lunds 2024 Total funds 2024 Tolal funds 2023 InVestn￿nI incom . Pmfil on Sale of Fixed Asset Inc(￿e from listed investments Interest 614.503 112,727 509 87,710 5,431 87.710 6A31 93,141 93.141 727,739 TOTAL 2023 727,739 727.739 Page21 STEP ONE CHARITY (A COMPANY LIMITED 8Y GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 OTHER INCOMING RESOURCES Unrestrict funds 2024 Total funds 2024 Total funds 2023 Rental inccffie 195.512 195.612 133,931 TOTAL 2023 133.931 133,931 ANALYSIS OF EXPENOITURE BY ACTMTIES undertaken directty 2024 SuP￿rt Total fund$ 2024 Totsl fund$ 2023 X124 Emplo￿nent and training services Heafth and social Other 4c￿).280 2,274.323 197.336 1.056.013 45.523 597.616 3.330.336 4S,$23 460.482 3,167.087 146.462 2.674.603 1.298.872 3.973.475 3.774,031 TOTAL 2023 2.614.245 1.159.786 3.774.031 ANALYSIS OF DIRECT COSTS EmthmBnl and Training Hèalth and Ser¥lces Soclal Care 2024 2024 Total funds 2024 Total funds 2023 Staff costs Direct costs 221.256 179.024 1.767.715 506.608 1,988,971 685.632 1.271.133 1,343.112 4¢J),280 2,274.323 2,674,603 2,614,245 TOTAL 2023 164.883 2,449.362 2,614,245 STEP OME CHARITY IA COMPANY LIMITED BY GUARAKfEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ANALYSIS OF EXPENDITURE BY ACTMTIES ICONTINVEDI ANALYSIS OF SUPPORT COSTS Emptoyment and Tralnlng Health and Servlces Soclal Care 2024 Total funds 2024 Total Jnds 2023 Ot￿r 2024 Staff costs Depreciatic Other Costs Premises costs Professional fee$ PensDn fee IT costs VAT 70.526 623.592 694.118 65.018 191.155 48,476 99.291 9,301 191.513 564.787 87.367 73,419 8.063 208.556 156,9431 145,387 129.150 83.147 108.LX18 48.413 10.877 9.301 191,513 43,6 44.814 197.336 1.056.013 45.523 1.298.872 1,159,786 TOTAL 2023 295,599 717.725 146.462 1.159,786 InChjd￿ within support Costs is £17.000 relabj to 5¥)V8mance costs (2023.. £17.5001. These relate to the audrtors remuneralKJn discb)sed in note 9. Govornance Costs 2024 2023 Fees payable to the auditor for the audrt ofth8 corry)anls annual accounts 17.ts)0 17,5 10. STAFF COSTS 2024 2023 Wages and s￿arte5 Social securKy costs Penwon 2.338,379 207.104 137.606 1.593, 169 194,868 131,681 2.683.089 1.919,718 Page 23 STEP ONE CHARITY IA COMPANY UMITED BY GUAAAMTeei NOTES TO THE FINANCIAL STATEMEKfS FOR THE YEAR ENDED 31 IAARCH 2024 10. STAFF COSTS IcopmNUED) The average nUft*￿ of persons by the ¢tyryany duriry the y8ar was a5 Ic4krws'. 2024 No. 2023 No. 101 101 Thè average he￿I￿Unt expressed as fu&time equNalents was". 2024 No. 2023 83 The number of emptoyees *tthe empw benefrts lex¢kKling employer pensicm costs) exceeded £60,000 was". 2024 No. 2023 In the band £70.001- £80.(1 In the band £80.001 - £90,( The total amount of employee benefits receiv&J by thè kty management personnel for their $erviGe$ was £275,905 {2023: £139.5391. The increase in costs during the year represents the change in leadership slru¢ture and expansion of Ihe number of roles who are Includ￿ as part of the senb)r leadership team. In addition lo these employe8 benefrts £31.51XI was paid lo an extemal cr￿Ulan1 acled as the Head of FinarKe on an inleiim ba$is12023.' nil). I I. TRUSTEES. REMUNERATION AND EXPENSES DurirvJ the year. no Trustees received any remunerat￿ or other beneffts12023. £NIL). During th8 year ended 31 IAarch 2024, expenses trAa&'ng £111 *ere rtymbursed or paid directly to 1 TTUStee (2023 - £269 to 1 Twslee). Page 24 STEP ONE CHARITY IA COMPANY UMITED BY GUARAiifEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. NET ILOSSESVGAIMS ON INVESThIEMTS The trxfrakdown of the gain rf £132.004 (2023: bss of £272,184) sh¢Mfn on the SOFA is br(*en down as folknvs.. 2024 FI>￿ asset inwstsrsrt r&qbAJc•) (nc* 141 117,2991 {171.578) Escrcvi acC￿tt garlltss) (rnxe 161 149,303 (1{K),6(￿) Cxeral ganllkryssl 1311X)4 1271184) 13. TANGIBLE FIXED ASSETS Freehold Flxturns and property equipmgnt Total COST OR VALUATION Al 1 Aprl 2023 Additicfis Disposals 1824.03S 869,101 530,204 3,354,239 933,655 (456,296) 1456,2961 At 31 ￿￿rch 2024 3,693.136 138,462 3,831.598 DEPRECIATION At 1 April 2023 Charge foi the year On di3posals 144.4114 43.380 474,6SO 9,836 (44S2021 619,054 53,215 {445,202) At 31 Marth 2024 187,784 39283 227.067 NET BOOK VALUE At 31 March 2024 3,505.352 99.179 3,604,531 At 31 Ma￿h 2023 2.679.631 SS,S54 2,735.185 The disposals in the ywr, largety re* to th? reww (rf the fixed asset register to remove assets wh were no longer in use aNI which fulty deprecmted. Paye 25 STEP ONE CHARITY (A COMPANY UMrrED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2024 14. FIXED ASSET INVESTMENTS Other Ilxed Ugted asset investm¢nts invoslm•nts Total COST OR VALUATION At 1 Apr￿ 2023 Disposals Rava￿atiOnS Interest and dmdends Investment markiger fees 7.66&S91 (1,500,000) 117.2991 87,710 129.780) 572 7.686,163 1572) 11.500.572) 117.299) 87.710 129,780) AT 31 MARCH 2024 6.206,222 6.206.222 NET 800K VALUE AT 31 TrIARCH 2024 6.206,T22 6.206,222 AT 31 MARCH 2023 7,665,591 sn 7.666,163 15. DEBTORS 2024 2023 DUE WITHIN ONE YEAR Trade debtors Oiher debtors Prepayments and ￿Ued income 198.699 62.$37 180.575 261.468 43.863 206,781 441.811 512.112 16. ESCROW ACCOUNT 2024 2023 Investments 1.S61,599 1.412.295 Thg Escrow account is established uTrJer a deed between the company and the Tru$tee5 of the St Loye's Foundation Pension & Assurance Scheme and is used to provth ¢ontiibution$ lo the Scheme under an agreed r8cov8ry plan. Assets from the account can be returned to the company when the &heme 1$ over.fvnded per the l￿dI￿ based actUaryva￿tion. Page 26 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. CREOITORS: AMOUXTS FALUNG DUE VMIN ONE YEAR 2024 2023 Trade creditors 181739 49.362 1.OB9,552 247.421 51.409 1,389.138 Other tsxalion and social securty Accruals and dèferred income 1.321,653 1,687.968 2024 2023 Dekned income at l Apnl 2023 Resources tjeferred durirKJ the Amounts rekned from pre￿u$ perKxls 1.362,997 602,256 1.042,597 1,362,997 {1,362,997) 1602.256) 1.042,597 1.362,997 The mam consliuent balance wilhin deferred re*s to thg AHiance Partnership. TIM"S is part of the cash balance thved to members of the aurance at yearerthj. Page 27 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 31 March 2024 Balanu at 1 Aprll 2023 Transfor* Inlout Galnsl (Losses) Income Expendlture LWRESTRICTED FUNOS tESIGNATED FUNDS Pension stheme escrow 1.412.295 149.303 1.$61,S98 Tangible r￿ed asset reseNe 2,73S.18S 140.578 (64.309) (19.515) 933.65S 3.604,531 121,063 Futu￿ sustainab￿ty Investment Volalilty Reserve Unrealsed Investment revaluat#)n 1.828.422 (29.780 (17.299) 1,781,343 2,257,203 2,257,203 6,116,480 113.6041 3.190,858 132.004 9.32S,738 GENERAL FUNDS General after pensw lthilty unrea￿Sed investment revaluation 4.382.263 2.949.519 13.769.056) (1.358,9951 88,¢￿0 2.291.731 1,819,214 (1.819.214) .201,477 2.949.519 13.769.056) (3.178.209) 88.IKIO 2,291,731 TOTAL UNRESTRICTED FUNDS 11317.9S7 1949,519 13,882,6601 12.649 220.OQ4 11.617,469 P•Je28 STEP OME CHARITY IA COMPANY UMITED BY GUARANTEEI )TES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 1& STATEMENT OF FUNDS IcopillNUED) Balance at 31 March 2024 Balance at 1 April 2023 Transfe inlout Gain (Loss￿) Inc¢)me Expendlture RESTRICTED FUNDS Bewell CF03 Soulh Devon Communty Hous￿9 Cyprass Be￿n L?￿e Buld Stepone 3,86S 13,865> 15,000 2.768 16,903) 56.747 75.501 (66.747) 11,OlXI} {10,000 112.6491 61.852 10.000 135,016 (90A151 (116491 76.852 TOTAL OF FUNDS 11452.973 1994.819 13.973.475> 220.004 11.694,321 Page 29 STEP ONE CHAWTY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINAMCIAL STATEMENTS FOR THE YeAR ENDED 31 MARCH 2024 18. STATeiRNT OF FUNDS {CONTINUEDI Deslgnaled Funds Pension Sch InVeSth￿nIS related lo Ihe defined benefft pensKJn stheme are held in an escrow account, managed by Legal & General on behalf of the Foundation. These investm￿19 are not realisable #i the short term and are lo be used to meet th8 pension scheme and an amount equal lo tha liabilrty is designated for these pury)oses. Tan ible Fixed Asset Res The tangible fixed asset reserve is maintained al ￿ amr￿nt equNalont lo net boc4¢ value of the assets ilh ￿ amount equivalent to the to be exp*thd Lxrt ofthe fund in the year. Futu￿ sustaina￿1. A fund wa5 sel aside to provwje lor costs assocmled *fjth organisational changes and devebpmenls i order to support sustainability in a chwyng fundiryJ environment. This provides for essential restructuring costs and investment n bwness deVek)[ffi￿ and ts crèatNM of revenue streams in line with the strategic plan. Inv8Stment V I lili A fund has been sel aside to help guwd 4ainst any future 74c4atity wi either investment valuations of movement in the pension furKI thf Unrealis8d In ReseNe This represents the cumulative revaluakn'on gawi$ w￿hITr our investment portfolio. Th9 balance fluctuates year on year in line with the perfornance of the porlfolio. When an investment is disposed of, any gain at that twne beeom¢s reali$ed and transfers into funds. Restrlcted Funds ewel Sle One A fund ¥d up lo support menla ￿￿alth arKI wellbw'ng to Il¥)se in the ccrnunty. F03 A fund set up to replace the Chwwe Maker fund. M 15 a vdunlary progr•nme funded by the Shaw Trust desig￿ lo help people withn the iuslice system prepare for when leave ¢u$lody and re-enter the communty. Where captsl items have been purchased out of reslricled funds. Ihe expendrture is shown on the Statement of Financaal Aetiviiies as a transfer TestrKaed lo unrestricted fund$. Health arKI Social Servic8 These are funds transfeired from CCT (s￿>5￿J￿Y charity) ￿ 31 March 2022. As the c*jects of CCT a rkirrower than those of Step One Charty. the unTestrI￿ed funds of CCT are treated as restricted fuThJ$ wilhin these consolidated financial state￿nts. South n c(￿mUn Housi This r8presents funds receiv&J from ScKth Oevw Corrmunity frh)using Soci8ty to pffmde support lo people aged over 16 in South D￿￿￿. These are made up of a Legxy rtteNed year ond March 2021. This has been used in the year for lunding for an ECG MaC￿ne. for an OT rocvn WKI for the employment of a psychologist. Pag8 30 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMEPITS FOR THE YEAR ENDED 31 MARCH 2024 18. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS- PRIOR YEAR Balance at 31 March 2023 Balarte al 1 Pgri12022 Inccxne Expendrture Transfers irnlout Gainsl (Losses) LINRESTRICTED FUNDS DESIGNATED FUNDS Pension scheme escrow 1.512.￿1 1100,6061 1.412.295 Tangible fixed asset reserve Future sustainabilty Pension Commitmènls Investment Vokti Reserve 5,023,777 140.S78 {87.36T) (2.201.225) 2,735,185 140,578 17.500 117,500) 2,OC(I.(M)O 1171,578) 1.828,422 8.694.756 (87.36n 12,218,725) {272,184) 6,116,480 GENERAL FUNDS Gener￿ after pens￿ liabilty Unre*ised investment revalualh)n 2.269.393 3.559.113 {3.207.5161 1,682,273 79,¢XIo 4,382,263 1.282.782 536.452 1,819,214 3.552.155 3.SS9.113 13.207.516) 2.218,725 79,OC 6,201.477 TOTAL UNRESTRICTED FUNDS 12.246.911 3.559.113 (3.294.883) (193.184) 12,317.957 Page 31 STEP ONE CHARITY {A COMPANY UNITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 18. STATEMENT OF FUNDS (CONTINUED) Balance at 31 March 2023 Balance at 1 Awil 2022 Transfers Gainsl (Losses) Incom8 Ex￿￿￿lture RESTRICTED FUNDS BeWel@Si8pOne CF03 Health Social SeNte$ South Dev Communty Hou51f¥J Cypress 1.315 13.808 45.950 10.000 (47,2651 121.0401 2,768 500.865 1500.865) $6.747 75.002 56.747 75.501 10.022 19.523) 647.737 65.972 1578.693) 135.016 TOTAL OF FUNDS 12.894.648 3.62S.08S {3.873,578) (193,184) 12,452,973 19. ANALYSIS OF NET ASSETS BETweEM FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS-CURREIIT PERIOD Unrestrlcted Restricted funds tund$ 2024 2024 Total funds 2024 Tangtsle fixed assets Fixed asset investments Current assets Creditors due within one year 3.604.531 6,206.222 3.128.369 (1.321,653) 3,604.531 6,208,222 3,20S.221 11.321,6531 76.852 TOTAL 11.617.469 76,852 11.694.321 Page 32 STEP ONE CHARITY (A COMPANY LIMITED BY GiIARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IURCH 2024 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS ICONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS . PRIOR PERIOO Unrestricted fvr¥l$ 2023 Restricted fijnds 2023 Total funds 2023 Tangible fixed assets Fixe(l asset investments Current awts Cr&*tors due wrthin ¢)ne year 2.735.185 7.666,164 3.604,576 (1.687,9681 2,735,185 7,666.164 3,739.592 11.687,968) 135.016 TOTAL 12,317,957 135.016 12.452,973 RECONCIUATIOI4 OF NET PIOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 20. 2024 2023 Net expenditure for the peri(*J las w Stst*nenl of Fnancwl Actr41￿$) 1846,6521 1520.675) ADJUSTMENTS FOR: Depreciation Lossesl (gains) investments Dividends, intere515 and rents frcffn investn￿ts Los51lprofrtl on the sale of r￿ed assets Decreasellincreasel in debtors Increagel{decieasel in credrti)rs Drffeienee between pens*￿ Charyg and cash contrbubons InvestnEnl fees 53.215 1132,004 190.1761 11,094 70,301 (366.3151 87,368 272.184 1112.728) 1614,507) 1183,457} 638,823 79,OLW) 51,030 NET CASH USED IN OPERATING ACTMTIES 11,182.757) (302,9621 21. ANALYSIS OF CASH AND CASH EQUIVALENTS 2024 2023 Cash in hand Alance partnefship ringferKed cash 295,114 906.697 629.115 1.186.070 TOTAL CASH AND CASH EQUNALEpirs 1.201,811 1,815,185 33 STEP ONE CHARITY IA COMPANY UNITED BY GUARANTEE> NOTES TO THE FINANCIAL STATEMEprrs FOR THE YEAR ENDED 31 MARCH 2024 ANALYSIS OF CHANGES IN NET FUNDS Changes In market valu• and •xchangg At 1 Awll rate At 31 Mar¢h 2023 Cash flows movements 2024 Cash al barkk and n harKI LiqLhd investments 1.815.185 1,412.295 1613,3741 1.201,811 1.561.599 149.304 3227.480 q613,3741 149.304 2,763,410 PENSION COMMITMENTS The ccffipany operates a defAwd btr)errt pensth sca)eme. Step One operates a pension scheme for all qualifying empk)yees. The assets of the Scheme ¥e hekl in a separate trustee administered fund. The scheme ck)sed to future accrual on 1 September 2001. A schadulg of contnbutb)ns is ag￿d between the F(￿rKIaknn and the Trustee after &ach comprehensive actuarHI Valuat￿n. T￿¢ most recentty c(xnpleled full *uana vaEuatitin took place as at 5 April 2020. Under the agreed sthedule of contribut￿15, Slep One paid contributions to the ￿tteme of £17,5(￿ per month until 31 March 2(Q2 and one•off payments of £442.698 In Aprl 2021. £1.595,762 in June 2021 and £459,000 before 31 •orch 2022. ￿ further contrbutions have been requwed since 31 M¥¢h 2023.. Piincipal actuarial a￿UmpIN￿8 at the BalarKe sheet 4J*e (expressed as weighted avera98s1.' At 31 March At 31 March 2024 2023 Discount rate Rate of prKe inftaticv)- RPI Rale of prw lnffatiC￿ - CPI Deferred pension irueases Inon-GMP) Pension increases in payment 4.70 4.65 3.45 2.65 3.55 5.00 At 31 March At 31 March 2024 2023 Years Years MORTALITY RATES (IN YEARS) - for a m* aged 65 now - al 65 for a male aged 45 n(y - for a female ajed 65 now - al 65 for a female aged 45 n( 2fj￿ 21.1119.9 22.1 21A 23.S 122.4 242 24.7 Page 34 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMEpirs FOR THE YEAR eNDED 31 MARCH 2024 23. PENSION COMMITMENTS (coimNUED) The compatys shwe of the assets in the scheff* was". At 31 March At 31 March 2024 2023 £0008 £OlJ)s Gills 10.690 3,820 1,315 2,561 3,576 11,009 3.786 1.888 2,380 3.321 Cash and other liqi*J assets Absolute retum l Diversif*d grtr•Ah fvnd5 Insured annu￿e$ TOTAL FAIR VALUE OF ASSETS 21,962 22.384 The actual retum on schm assets was £1.150,IXIQ (2023- £-3,179,000}. The amounts reccrfJnised in the Ststement of Firw)cial Acts47t￿S we as fol￿.. 2024 £OOOs 2023 £CKIOs Interest cost 1205} 11141 79 114 Adminislralive 8xpenses Impact of surplus ￿$trict10n TOTAL AMouKf RECOGNISED IN THE STATEPAENT OF FIP4ANCIAL AcnvrriES 79 lty+)vements in the pre￿1 vah* ofthe defmed benefit 0￿￿th.0n were as folknys." £OOOs Opening defH*d benefrt oblwJat Benefits paid Interest ￿$1 on defi￿d benefrt oblyatKx) Actuarial IgainyIoss 17.973 11,4841 802 (362) CLOSING OEFIXED BENEFIT OBUGATION 16,929 Page 35 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO TFE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 IblARCH 2024 23. PENSION COMMIThIENTS (CONTINUED) Movements in the fairvthe ofthe crynpan￿$ share ofscheme a55ets were as follows: 2024 £OOO$ Opening fa¥vahJe of scheme assets Intere51 Income Return less inter8St mcorm on schm assets Benefrts paid Admmislration Expenses 22.384 I.￿)7 143 1881 CLOSING FAIR VALUE OF SCHE￿ ASSETS 21.962 The company has an unrecognised surplus of £4.499.￿0 (2023 - £4.411,(N)01 in respe¢l of rts defined benefit pension scheme as it Ih)e$ not expect lo rec￿eT the Flan surplus either through reduced conlribulions in the fLAure or throLyh refurKls from the plan. OPERATING LEASE COMMITMENTS At 31 Marth 2024 thè coffpany Ik*l ccrfnmilmenls lo make future minimum lease payments under non- t￿Cella)le cperaling leases as folth¥s.' 2024 2023 Not later than 1 year Later than 1 year ar￿ not L8ter than S ye•5 78,181 154,442 80,152 6,152 232.623 86,304 25. RELATED PARTY TRANSACTIONS There were no relat￿ party transxkn duiHV the Per￿d.