R¢gl$tered numb•r. 00393477 Charlty number: 235434 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ? Bishop Fleming STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE CONTENTS Page R•f•r•nc• and Admlnlstratfv• D•lails of the Charlty. Its Tnrn1￿ and Advls•rn TNSteos' Rept)rt Indopendent Audltorts. RoPOrt on the Fln•nclal Slat•mMts 11-14 ststoment of Flnan¢lal A¢livities 15 Balance Sh••t 16 Statement of Cash Flow• 17 Notes to th• Flnancial Statsments 18-39 STEP ONE CHARITY {A COMPANY LIMrrED BY GUARATrtfEEI REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARIYY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 IAARCH 2025 Mrs S Sulherland, Chair to 1 April 2025. Interim Chair from 19 June 2025 lapponted 19 June 202S, re5vJned 31 March 20251 Dlr¢¢tors and Trust¢as Mr R WIl￿mS Dr P Cawthron Mr D H￿eS Mr M Lambert Mrs K OEhaughnessy Mr D Blackford lapponted 4 Awl 20251 Mr M P•kVKar lakwnted 24 February 20251 Mr R Stevens laFpointed 24 February 2025) Mr S Green lapponted 24 Febwary 2025) Mr S Lyons {appO￿ted 24 Febnjary 20251 Mr R Gofton IresKJned 10 De¢emb&r 2024} Mrs J Lytue. Chay trom 1 Apnl 2025 (appointed 24 February 2025, resigned 19 June 2025) Mr C Pamol (resigned 30 JU￿ 2024} Mr A Antony (term￿ated 11 Oclober 2024) Company r¢gbtsred number LYJ393477 Charlty reglslered number 235434 Reglster¢d offlco The X Centre Commercial Roal Exeter Devon EX2 4AD Chi•f Exeeutlve Offlcer MT B Greaves Indèpendent audltors Bishop FlenNng LLP Chartered Acetyjntsnts Brook House Winslade Park Manor Drive Clyst St Mary Exeter EX5 1GD Bankers National WeslThMnster Bank Pk 59 High Street Exeter Devon EX4 3DP Page 1 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present Iheir annual reF￿ together with the atvjited financial ststements of the Company for the year 1 April 2024 to 31 March 2025. The Annual Rept)rt seNes the purposes of both a Trustees, report and a Dire￿01$, ￿pOrt under ￿rnpanY law. The Trustees confim) that the Annual Report and financial statements of the charilatAe Company comply with the current statutory requirements, the requirements of the charrtable Company's goveming document, and the provisions of the Statement of Recommended Practice ISORP) appli¢abb to thariti8s preparing their accounts in accordance with the Financial Reporting Standard applicable Mi the UK and Republrc of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES step One Charity I'SOC.) provides support people wllh phys￿al, mental health. gensory and other disabilities. or those wrfih bng-term health conditions. in order to improve thew quality of life and degree of independence and provide the opportunty to xhieve their potential through personal deveh)pment, training and employment. Specificalty, the Oty'ects, as set out in the Articles of Association, aro.. a} To provKle lor the rehablilation by any means whatever of persons experien¢ing substsntial irryarment of their physul or mental health (fl￿ts7. b) To undertake the teaching arml prxtice of skills or vocations whith may assist in the rehabilitation of Clients to any persons whatever by any means whatsoever including the rnainlenance and operation of a school or establishment for suth teachin9 and for the training of $u¢h persons. ¢1 To train Clients for any form of em￿yrnent. to help them find empknyment and to provide support for sustained employment. d) To research into and advise urM)n methods of rehabilitatsn of Clients and to disseminate the useful results of such research. Wmion. A society that values mental heallh and v*lbeing and where every(M)e can thrive in their local comrnnity. Mtsslon. We support people lo buikl a pathway to independence. live a fujfilling life and reach their own potential through a rang8 of specialist health and Vbellbeing sgNices. STRATEGIC REPORT The following sections constitute the strategic report frjr the PUr￿58S of the Companies Act 2006. This strategic report fomis part of the Report ofthe Board. The S-year Strategic Plan, lavn¢hed in 2023-24. was designed to deliver meaningful out¢omes for our bener￿larieS. ensu￿ financial resilience. and deliver growth to secure the charity's k)ng-temi future. To achieve this. the plan is based on three Strateg￿ o*tsv85: a) SeGur• the Core. Prioritise the consolKlation and contin1￿u8 iwovement of existing services, safeguarding the foundalion of the charilabk mission. b) Build New Busines•. Strengthen finanaal and operational resilience by dNersifying revenue stréams and enhancin9 seryice eftiew. c) Diverslfy the Cllent Ba8•. Expand the reath arKI i￿￿S1¥1ty of seThice$, ensurirrfj a¢￿sibIlity to a broader spectrum of individuals in need. Page 2 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The Board of Trustees has gr4en regard to the legtslative and regulatory requirements for disclosing how its charitat4e objectives have provided benefft to Ihe publi¢ and ¢onfimis il has complied with the duties as set out. Thi$ report outlines h¢)w our achieven￿ts during the period have beneffted the public. In setting objectives and planning for actNities. the Trustees have given due consideration lo general guidance published by the Charity Commission relatmg lo public benefrt. including the guidance 'PUbl￿ benefit: running a chaiity (PB2)'. KEY ACHIEVEMENTS & BUSINESS DEVELOPMENTS The Charity remains corrffiilted to delivertng exceptional Ser¥￿e$ that positsvety impxt the communities il supports. SOC'S dedicated teams consistenty achleve outstanding outcomes. as evidenced by rigorou$ evaluations Conducted by internal and extemal bodi8s. This extemal assurance not only affirms the high quality of the seNices but also reinforces SOC'S reputatM)n for exceknce and commitment to continuous Improvement. Cypress Hospital. Folkmng a review during 202&24 with the ProvKler Collaborative. Integrated Care Board IICB), and Devon Partnership Trus( into the needs of the ¢ommunity and wider system. Cypress Hospital transitioned from crisis ¢are to intensive ￿habIlitatIon and recovery npatient care. offering 8 of its 14 beds under a new tsvo-year test of change nTr>Jel. This contract commenced in OGtob8r 2024. with 8 £0.2m increase in income per year. over the prewous rehabilitation contracL Over the last 12 monlhs. 19 individuals th complex mental health needs benefited from this service. averaging 166 days of stay. As part of this transition, SOC have introduced successful contract review n￿lIng$ with our statutory partners whith ha5 enabled development of an even stronger p*tnership. contributing lo robust govmnce and a strong working relationship. Support•d Living. This service provides a safe and supportr4e environment for people with mental health concerns andlor autism spectrum condttions to live Th)re indeFendenlly. During July 2024. the refurbishment of the exisling Granvue property as a 6 bed 24-houT SUPtKlrted INing property was completed with full occupalion achieved in December 2024. This is Ihe first serv￿￿ of this type provided by SOC and is proving to be an invaluable support for those Indiv￿UalS with more complex support needs. Combined with the existing 3 properties, over the last year. 27 indi%iduab were po$￿velY impacted through these services during the year. Communlty SupporL This is a one-lowone support service providing individualty lailored support to peop18 with mental health challenges, autism spectrum conditions, or leaming disabilrties, he￿)Ing them to live more independently in their communty. 54 indiwduals beneffted from these services during the year and the amount of support that can be provided continues to grow through the development of a self-funded offer. This is an invaluable Ser¥￿e for those indiwdual$ who requi￿ support but cannot get it publicly fundgd. B•W•ll Sléponè. 0¥8T the past year. 451 sessions have been provided and 647 individuals eNJaged with BeWell@StepOne. accessing mental health suptmjrt through online and face40-fa¢e workshops and peer support groups. To grow this capabl￿. in September 2024 s￿ welcomed a Business Oevetopment and Delivery Manager. They a￿ working closety wrth a new inhouse clinical psychology expert, to focus on developing the support offered, including community well-being and workplate ￿ntaI heatth improvements through Wellbeing Work. From October 2024. the addition of a Volunteer Coordinator has helped to expand the opportunities for volunteering with SOC and in particular supporting the BeWell@StepOne activities. Devon Mental Health Alllan¢e I'DMHAry. The DMHA ccrtfftact. w)itialty set for th￿¢ years lo January 2025. has been extended through io January 2027. As contfi%t IK>lders. SOC have taken on a proactive leadership role. enhancing partnership dynamics. The SOC Recovery Practitioners work across thè oastern and soulhem localities of Oevon to provide p5ychologica*y infornwd interventions to individuals that fall in Ihe gap, betsveen primary and secondary ser4ices. delNered over 3,300 support sessions to 392 indivKluals during the year. DMHA partners have deh'vered better processes and systems to engage with the wailing list and plan to wsiiion the service for continued delivery beyond the five-yeaT contract extension. Pago 3 STEP ONE CHARI (A COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Fundraising. The external fundraising landscape has presented significant challenges over the past 12 months. further intensified by key staff changes. In response. we have proactively strenglhened our approach by appointing a new combined role of Fundraising & conwnunlca￿nS Manager, bringing fresh leadership and vision to this critical area. During the year the team were successful wilh being awarded a £44k 9ranl award from The Walfson Foundats"on towards the cost of replacing and ￿pairing the roof at Cypre55. This ￿￿Tk is anned to take place in the $umw of 2025 (and the grant income received) and, along with generous donations from several other supporters. we wil be able to out the vrtal improvements which will promolo the longevty of the building. Fundraising activities a150 included an inaugural Every Step Counl campaign. whith was kindfy sponsored by John Lewis and encourages people to 9et adive while raising awareness of the importance of mentsl health supwt. Other actlvities included providing onsite support for the Great West Run. Make a Wll Week and for the more adventurous, a Skydive challenge. Our people. SOC colleague$ a￿ pa$$ionate al)out what they do. the work can be incredibly challenging. and the Trustees are grateful for the hard wort ofthe colleagues, volunteers and supporters. Every day the teams make a real diflerence to the lives of pwilg who come to SOC for support. FUTURE DEVELOPMENTS Reflecting the challenging environment in which SOC is operating. with a reduction in the availabilty of public funding, at the same lime as costs are w)crea$ing and the mental health needs of the people in Devon continu8 to grow. SOC is conduding a strategi¢ review of the 5-Year Strategic Plan to ensure it continues lo be fit for purpose and financial suslainable. Wth respect to the ongoing sevvices provided by SOC the future priorities include.. Cypress Hospltsl. The leam will be working lowalds completing a successful test of change contr and to secure further contracts to optimise capacity of the fa¢ility. Supported Living. A new propety VAS purcha$8d in June 2025 and after a short period of refurbishment will open as an additional 6 or 7 bed supp)rted IDMg property during summer 2025, with full occupancy F4anned by December 2025. Communlty Servlces. Continued gro¥*1h in the ayrnunt of community support that is being Provided. including further development of the self-funde(I support offering. Bewel Stepone. This free Se￿lee *ill continue to gr￿ and support those individuals who would benefft from online or face40-face V￿rkshopS and groups. W•llb•ing@Work. During May 2025. the V¥bl*eing Vlork Serv￿ was Off￿llY launched. This semce seeks to support organisalions to I)u￿ Inc￿$1¥8. mentally healthy workplaces where people Can thrive and can wowde a range of courses or work v￿th organisats'ons to develop ad-hoc tailored programm8s which meet their needs. Devon Mental Health Alllance. This partnership viill continue lo knus on reducing the list of individua15 who are waiting for support. whdsl piloting n8W SUPPOrt initiative$ and expanding communty engagement. Psythologlcaly Inlorn*d Environm8nL This concept for community and accommodation service$. will continue to be devek>ped in a580ciation with conNnissh?ning partners and OUT new inhouse clinical psychologist. Page 4 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 FINANCIAL REVIEW The fin￿cial statements show a total income for Ihe year of £3.3m, an increase of £0.3m from 2024. This overall increase in income reflects an uplift in contract income relating to the Cypress rehabilitation contract of £0.2m a year. with £0.1 m relIe￿ed in this ￿anC￿l year. and £0.2m of income Irom a new 24hr supported living accommodation which opened in Juty 2024. Total expenditure for tho year was £4.2m vthich was £0.2m h￿3h￿ than 2024. Included in the £4.2m 1$ £0.2m of exceptional costs related to the histori¢ deffined benefit pension scheme. If these were i9nored. the expenditu￿ for the year would be £4.1m which was £0.1m h￿hey than thg prior year. Thts largety reflects the benefft of cost saving measures put into place during the year, which have then been offset the impact of int1ation￿Y pressures on staffing costs and general areas of expenditure and £O.Im of costs relating to th& new property. The net expenditure before investrnent and pension r8valualions are taken into account. was a deficit of £1.Om compared to £1.Om deficit in 2024. Ifthe exceptional transaction costs were excluded the deficit would be £0.8m and the £0.2m rgdudiw in ttle def￿)1, is largety due to the addits'onal income oarnl during the year. The inveslmenl$ of SOC are held in separatety managed p￿010$ that aTr balanced in order to maintsin potential for longer leim gr0￿h in capital value. bui which also allow for funds to be withdrawn at short notice should the need arise. The investrnent performance Tetlected the tuibulent market conditions and a net gain of £0.1m on the investment valuation is recognised. In December 2024, regarding the defined benefft pension scheme. Trustees entered into a Buy In agreement with Legal & General and this wocess of tTan$ilb)ning to a Buy Out. which is expected to complete during 2026. Fees related to the pensicm scheme ￿re £0.2m 12024: £88kl. including £145,000 related to Ihe transaction. These exceptional costs have been separatefy disck)sed within SOC'$ expenditure for the year and a￿ then offset by release of some of the sthem8 surplus as part of the other recognised gains and 108ges for the year. The annual update of the pension scheme valuaiM)n as at 31 March 2025 shrywed a decrease in Ihe value of the sch8me assets by £4.4m to £17.6m. this large￿ represents a reduction i) investment values of £3.7m. The present value of the scheme ￿abIlrtieS has decreased by £1.9m to £15.1 m as there was an actuarial loss 01 £1.2m and pension benefits paKI exceeded the increased costs incurred by the scheme. The Charity has an unrecognised surplus of £2.4m in respect of its defined benefrt pension s¢heme compared to a surplus of £4.Sm in 2024. H¢)wever, in line with accounting disclosures wntained within the FRS 102 year4nd pènsion report, the recognised assets have been restncted to the value of the defined ￿neffit obligation only. meaning this surplus is not recognised as a gain within the consolmlated statement of financial activities for 2025. No contribulions have been made to the defined benefft pension scheme during the year12024.' £Nill and are not expected to be needed going f(￿Ward due to th8 Buy In agreemenl. Taking all of the above into account results in an overam net reduction of funds of £0.7m with totsl fvnds carried forward of £11.Om at the year4nd (2D24: £11.7rn). FINANCIAL POSITION Financially, SOC has perfom)ed ahead of the budget originalty appyoved by Trustees but remain5 in a deficit position. The key drivers for thrs are a lack of suffic￿1 inflationary uplifts to the commissioned seNi¢e ontracts, coupled with inflationary pressure on staff and ovethead costs. The 5-Year Strategic Plan addresses this deficit and is designed to bring SOC to a break-even pc4nl. Truslees continue to scrutinise and probe the financial plans through the Finance & Audit Committee and Board. Financial performance continues to be tracked, with quarterty financial refore¢asts. enabling relevant levers to ￿ used at quartety finance committee meetings Boards accordi￿ to perf0m￿nCe. The ffinancial plans also ensure that soc has appropriate funds available to supp)rt the delivery of its objective& Pwje S STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT IcoiifiNUED) FOR THE YEAR ENDED 31 MARCH 2025 As such, after making appropriate enquiries. the Trustees have a reasonable expecta￿n that the Charity has adequate re$ource$ to continue in operational e￿stenCe for the foreseeable future. For this reason. they contwiue to adopt the going concem basis in preparing the financial statements. Further details fegarding the adoption of the going concem basis can be found in the accounting pokies. In the Trustees, view, a minimum thl of unieslrthl reserves should be maintained to provide adequate financial stabilty and the means for it to meet its charitable objectives for the foreseeable lulure. The Board revigws the amount of reserves required at leasl cin an annu* basts and receives financial reporting on regular basis to alow them to monitor the1￿(elY movement ￿ resepies in any given year. The Trustees propose to maintain 98neral unreslrthd reserves at a lgvel whith is at least equivalent to six months. operational expendituré. The larget18vel of reseNes for 2024-25 had been set at £2.Om and al the year-end this had not been achieved with a level of reseNe$ of £1.4m. The Trustees are aware of this positson and have agreed this temporary positb)n wthile SOC is working towards elirninating the ongoing deficit and rdeasing some of Ihe designated reserves to support the level of undesynaled reserves. During June 2025, the pension escrow of £1.6m h85 been returned to the Charity and as a resutt this amount has transferred lo an undesignated reserve. At the year end there were £71.000 (2024. £77.000) of restricted reser¥es wh￿h relate to specific grants and funding. The Trustees are obliged to designate funding to offset pen￿on liab"k'ties as assessed by the Foundation's actuary. The designated resevve shoukl match the a￿Unts held in the escrow accounl that cover Ihe pensIC￿ scheme funding deficit and any anN)unts due under the cur￿n1 s¢hedule of contributions. The escrow account fund had a balance of £1.6m at year end making a total of £1.6m designated for pension liabilities. The Trustees also designate funds to SUPFKKt othgr sp81ific purrM)ses with separately identifiable costs and a business case ￿e￿￿)nstratIng clear benefit across the organisalKin and Supp￿ for the charitsble objects. Further deta￿S of these design*ions are provided in the note5 to the accounts. RISKS AND UNCERTAINTIES The Trustees have a strong frameV￿rk in place to monitor and mitigate major risks lo which it may become exposed. Risks are regularly remew￿d by the Board and its $ubCommtttees or Working Groups. Commercial and financial risks a￿ Conside￿d by the Financ8 & Audit Committee using external advice where appropriale. There are Tobust systems for quality assurance and complanc£ through the Quality Assuran¢e and Impiovement Committee that are used to inform a process of contsnuous improvement and provid? further assurance on idenlifiGation arNI management of fisk. The win¢ipal business risks that have boen identified as facing SOC over the noxl 12 ￿K)nths. including the key mitigating action to reduce this iisk. indudes: Cashll)w shortfall, arising from the defKil posit￿ and failure to seujre new income. Tho 5-Year Plan provided the basis for SOC to achieve a txeak*ven position through developing new commissioned seNi¢es, developirvJ Tr￿re commercial offerings and continual review of the cost base. The Board have considered the fmancial plan developed to support the 5 Year Plan and are satisfied that SOC has sufficient level of investrnwts and reserves to supp)rt the current deficit position. Lack of nwi contract opportunities and the Potential loss of currenl levels of public funding. The management team are continuing to discuss opportunities wilh the Var￿S commissioning bodies to secure and grow SOC'S future income. There is also an ongon9 review lo ensure greater operational $ilienc& through the review 010th￿ incorm opporlunilies. The laurth of Wellbeing@Work is onè of those opportunities. Page 6 STEP ONE CHARrrY (A COMPANY LIMtrED BY GUARANTEE) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Ensuring there are adequate and skilled staff to deliver services arKI fuffil contractual oblTrgations. RgGruilment and retention within the healthcare sector continues lo be a chalenge across the country and SOC continues to rewew appropriate staffing ￿Vels. the mix of stsff being used and ways lo recruit and retsin staff. Reduced availability of fvndraising income due to the challenging external environment. A new fundraising strategy has been dev8Wd. targeiiry grant acquisilion. enhanced regular giving initiatives and strategic corFrt)rate partnerships. STRUCTURE. GOVERNANCE AND MANAGEMENT step One Charity I'SOC'I 1$ a ¢ompany linmted by guarantee (No. 003934771 arld is registered as a charity wrth the Charity Commission (No. 235434) in EngL2nd and Wales. The name was changed from Sl Loye's Foundation on 21 December 2016 to provide a new trading name for the then Group folh)wing the acquisition of Communty Care Trust (South Wesl) Limited as a subsidiary in 2015. Conwnunity Care Trust (South Wesl) Limiled ("CCT"I wa$ a Charitable company limited by guarantee, registered company number 2420393 and registered tharity number 1007781. Following the merger with SOC on 31 March 2022, both charities have now been brought together under the single name of SOC and CCT is now a dormant company. The Trustees constitute the Board of Management of the Charity and are also directors of ihe charitable Company with overall responsibility foT governa1￿. The Board meets to agree strategic and operational plans and monitor progress against them. Board members may also seNe on Commrttees or operational groups. Sue Sutherland concluded her seven-year tenure as the Chair ol Trustee5 on 31 March 2025. Colleaguès and Trustees are very grateful for her dedicated seryice to the charity. combining her sharp strategic insight th a human touch. Jacqui Lyttle was appointed as the new Chair of Trustees from 1 April 2025. however due lo personal reasons, Jacqui resigned from the post on 19 Jun8 2025. As a result. Sue Sutherland kindly agreed to resume the chair role on an interim basis fffjm 19 June 2025. In addition. five other new Trustees have been appM)inted during February and March 2025. They have been selecled for their diverse ski115 and exPer￿nCe to enhance the Board's Strateg￿ ¢apacty. The Senior Leadership Team {'SLT) consists of Ihe Chief Exe¢ulive. DI￿¢10r of Finance and Business Services, Head of Operations and a Head of PSYd￿￿￿Cal Pr&tice & Developmgnt. The Board delegates the day to day running of the charity to Senior Leadership Team, provvjing advice and guidance as appropiiale. Page 7 STEP ONE CHARrrf {A COMPANY LIMITED BY GUARANTEE> TRUSTEES, REPORT (copillNUED} FOR THE YEAR ENDED 31 IAARCH 2025 The following Trustees served during the year (and subsequenlty).. Ms S Sutherland (Chair, reS￿ned 31 March 2025. appointed 19 June 2025 as Interim Chair) M5 J Lyttle lappointed 24 February 2025 and Chair from 1 April 202S, resigned 19 June 2025) Mr R Wllwns IVi¢frChairl. Mr D Blackford (apwinted 4 2025} Dr P Cawthron Mr S Green (appointed 24 February 2025) Mi D Hawes Mr M Lambert Mr S Lyons (appointed 24 February 2025) Mr M Mcvicar (appointed 24 February 2025) Ms K O'shaughnessy Mr R Stevens {appointed 24 February 2025) Mr R Gofton (resigned 10 December 2024) Mr A Antony (terminated 11 Oclober 2024) Mr C Pallot (resigned 30 June 2024) The management of the Charity is the respons￿"l1ty of the Trustee$ who are electod and co-DPted under the terms of the Memorandum and Articles ofAs$o¢￿t#?n. The Trustees have assessed the major risks lo v*thich the Charity are exposed. in partthlar those T8lated to the operats.ons and finances of the group and the company and are salisfied that Syslems and procedures ale in ￿*Ce to mitsgate exposure to the major risks. The Charity used a recruitment firyn during the year to help re¢rult suitable Trustees vtho can support and help to deliver the charity's miss*Jn and who complement the skills and experience of the existing Trustees. All ￿ndidateS were inter¥Ewed by a panel of existing Trustees and had the opportunty lo meet with the Senior Leadership Team. The Trustees on joining undergo an induct￿￿ programme to brief them of their legal obligations under company and charrty law, th8 content of the Memorandum and Artic18s of Association. the committee and decision-making processes. approval of the annual operating plans and budgéts and Teview of strategy and perlorman¢e. They are also encouraged to spend time meeting employees and Service users (where rt appropriate to do so) and visiting the Chwity's sites so they can see for theMse￿e$ how the Charty operates and to obtsin ffiist hand feedbac Page 8 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 21)25 STATEMENT OF TRUSTEE'S RESPONSIBILMES The Trustees (who are also the diredows of the company lor the purpjses of cornpany lawl are responsible for preparing the TTUStees' report including the strateg￿ rewt aThJ the financial statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Aeeounting Pra¢tice). Company law requires the Twustees to prepare financial statements for eath financial year. Under company law the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of their incoming resources and application of r950urces, includin9 their income and expenditure. for that period. In p￿parIng these financial statements. the Trustees are requi￿ to: Select suitable accounting poliws and then appty them ¢>)n$istently: Observe the meth(wJ$ and princples of Ihe ch￿illeS SORP (FRS 102); Make jud9ments aThJ accounting estlrotes thal are reasonable and Prudent.. State wh8ther applicab￿ UK AcwuntirwJ Slandards IFRS 102) have been followed, subject to any material departures disclosed arKI expkined in Ihe financial statements: and Prepare the financial ststemenls on the going concern basis unless it is inappropriate to presume that the group will ¢onlinue in business. The Trustees are responsl)le for keeping adequate ￿)Unling records that are suffKient to show and explain the group and the Charity's transactions and disch)se ¥￿th reasonable a￿uracY at any time the financial position of Charity and enable them to ensure that the financial statemen1$ comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and Ihe Charity and hence for taking reasonable steps for the preVent￿)n and deteiaion of fraud and other irregulariti88. DISCLOSURE OF INFORMATION TO AUD￿oR5 Ea¢h of the persons who a￿ Trustees at the time when this Trustees, rewl is approved has cOnfinY￿ that.. So far as that Trustee 15 aware. there is no relevant audit inforn￿tIOn of the charitable group's auditors are unaware" and That Trustee has tsken all the steps that owJht to have been tsken as a Trustee in order to be aware of any relevant audit infomiation and lo establish that the ¢haritablo group's auditors are aware of that informatson. Page 9 STEP ONE CHARITY (A COMPANY UMITED BY GUARANTEE) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 AUDITORS The auditors, Bishop Fleming LLP, have indicated their vdlth'ngness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. The Trustees. Rewt, incorporating a Strateg￿ report. was apwed by order ol the Board of Trustees. as the company dire￿Or$. and signed on rts behaw by.. Mrs S Suthorland (Interim Chair of Trustees Date.. 14 aoas P•38 10 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITORS. REPORT TO THE ￿E￿ERs OF STEP ONE CHARITY OPINION We have audited the financaal statements of Step One Charity {the 'chariV) for the year ended 31 March 2025 which comprise the Statement of Financ4al Activities. the Balance Sheet. the Statement of Cash Flows and the related notes, including a summary of significant xcounting polic*s. The financial reportr.ng framework that has been applied in their pyeparation is applKable and Unrted Kingdom Accounlmg Standards. includiNJ Financial Reporting StsThJard 102 The Financial Repo￿ng StsrKlard applicable in the UK and Republic of Ireland, (United Kingdom Generally A￿Pted Acc*)untry Prnctice). In our opinion the ffinancial statements". give a true and fair viLyw of the state of the chartsble cornpan￿s affairs as at 31 March 2025 and of its incoming resources and apK*ation of reX￿ree$. inckKling its ir￿orne and expendriure for the year then ended., have been Pftyety prepared in accordance United lQngdom Generalty Accepted Accounting practi￿., and have been prepared in ￿OrdanCe with the requinnents of the Co￿VanieS Act 2006. 8ASIS FOR OPWION Wg ¢(￿dUCted our a￿lIt in acc(x(lance with Intemational Standards on Auditing (UK) IISAS IUKI) and applicable law. Our responsits.l1l￿S under those standards are fvrther described in the Auditors, responsibilit￿S for the audit of the financial statements Secti￿ ol our reporL We are independent of the Charilable company in accordance with the ethical requirements that are relevant to our a￿rt of the financial statements in the United Kingdom. includin9 the Financial Reportin9 Council's Ethical Standard. and we have fuffilled oui other ethical re5ponsibil.ties ￿ accordance with these requirements. We believe thal the audit ewKlence we have obtained is SUffi￿ent and appropriate lo provide a basis for our opinKJn. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial slatemenls, we have conduded that the Trustees, use of the going concem basis of accounting in the preparatson of the finanoal stater￿nts is approwiate. Based on the work we have performed, we have not idenbfied any material uncertainties relating to events or condilions that, individually or collectivefy, may cast s￿n￿￿an1 doubl on the charitable company's ability to continue as a goirvJ concern for a peri¢)d of al ￿35t ￿￿Ve months from when the financial statements are authorised for issue. Our restM)nsIb￿rtieS aThJ the reswn￿b￿.lIeS of the Trustees with fespe¢t to going con¢em are described in the relevant sections of this rep)ri STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF STEP ONE CHARITY (CONTINUEDI OTHER INFORMATION The other information Comprises the infornBtion induded in Ihe Trustees. Report Financlal Statements other than the financial statements aThJ our AuditrKs' Report thereon. The Twstees are responsible for the other infornalion containad within the Trustees. Report and Financial Slatements. Our on the financial statements does not cover the other ￿lo￿natiOn and. except lo the extent othewse expliuuy slated in our report. we do not express any form of assuran￿ ttjnclusion there￿. Our respOnsi￿.11fy is to read the othèr Informati(￿ and. in doing so. consider vthether Ihe other inlorrnab.on is materially ir￿onsistenI with the ￿nanCIal statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstsled. If we identify such material inconsistencie5 or apparent material m￿statements. we are required to deternwne whether this gives rise lo a material misstatement in the financial statements themselves. If, based on the work we have performed. we condude that there is a matetial misstatement of this other information, wé are required to report that facL We have nothing to report in this regard. OPINION ON OTHER MATfERS PRESCRIBED BY THE COIIIPANIES ACT 2006 In our opinion, based on the wc*k undertaken in the course ol the audit.. the infoTmats'on given in the Trustee5' Report for Ihe financial year for *thich th8 fina￿la1 state￿nIS are prepa￿d is consistent with the fina￿la1 ststements. the Trustees, Report has been prepared n accorda1￿ with applicable legal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knothrfedge and understaThJing of the tharitabl8 company and its environment obl*ned in the COUTse of the audit, we have nol hlentif*d ffAterial ffthsstatwnents in tt18 Trustees. Report We have nothing to report in respect of the folltr•ring matters in relation to Companies Act 2006 ￿qUireS us to report to you rf, in our opinion.. adequate a¢¢ounts'ng records have not been kept. or relums adequate for our audit have not been eived from branches not visited by us: or the financial stslements are nol in ag￿e￿nI with the accounting records and ratums., or certain disclosuies of Trustees. reMuneralk￿ specified by are not made.. or we have not received all the infcffiwtion and explanations W￿ require for our audit. RESPONSIBILITIES OF TRUSTEES AS explair￿1 more fulty in the Trustees. ResponsibilitFes Ststemenc the Twslees Iwho are also the directors of the charitable company for the purposes of company law) a￿ responsible for the preparation of the fin￿CIal stalgments and for being satisfied that ttw gNe a true and fair vilw. and for such intemal control as the Trustees determine is necessary to enable the preparaliM of financial statements that are free from material misststement. whether due lo fraud or error. In prepamg the financial stalemenls, the Tfustees are ￿sponSible f¢Y assessing the charitable company's ability to continue as a goin9 concem, disclosing. as appliGabbe. matters related to going concem and using the going concern basis of accounting unless the Trustees either inteThJ to liqU￿￿ale chwIlab￿ Company or lo cease operations, or have realisknc altemative but to do 50. Page 12 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF STEP ONE CHARITY {CONThYUEDI AUDITORS. RESPONSIBILrtlES FOR THE AUD￿ OF THE FINANCIAL STATEIAENTS Our objectives are lo obtain reasonable assurance al￿ vthether the financial slatements as a whole are free from material misstatement. whether due to fra￿1 or error. and to issue an Auditors, Reptyt that includes our O￿niOn. Reasonable assurance is a high level of asyjrance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will a￿ayS detect a Materi￿ misstatemenl when it exists. Misstatements can arise from fraud or error and are considefed material if. indivhjually or in the 4gregale. they Could reasonabty be expected to influence the eCor￿M￿ deciswbs of users taken on the basis of these financial state￿￿￿ts. Irregularities. inC￿ding fraLMI. are instances of nonwcompliance wilh laws and regulations. We design procedures in line with our responsibilities. OLrtlined above. to dete¢l maleiial mis$tsten￿ntS in ￿SpeCt of iiregularities. including fraud. The extent to our proc£dures a￿ Capabte of detecling iTwulanties. including fraud is detailed below.. In Klentifying arKI assessing risks of material misstatement in respect of wwularities. including fraud and noncomplian￿ wilh laws and regulations, we ￿l$KIefed the folknwng: the nature of the charity sector. contrd environn*nt and charity perfompnce; results of our enquiries of management and the Trustee board. including the committees charged wtth governance over Ihe Charity's finance and control. about their own identification and 85sessmenl of the risks of irregularities., any matters we Klentthed havirwJ obtsined a￿1 re¥i&ved the Charitys documents1h￿ ol their policies and procedures relating to.. idenb"fying, evaluab.ng and ¢(￿P￿"n9 wrth lawrn arvj regulats.ons aTrJ whether they We￿ awa￿ of any instances of non 76.852 15.376) 11,694,321 (650.769> 12,452,973 (758.652) TOTAL FUNDS CARRED FORWARD 20 10,972,076 71N76 11.043,552 11.694,321 Page 15 STEP ONE CHARir IA COMPANY UMITED BY GUARANTEE> REGISTERED NUMBER:00393477 BALANCE SHEET AS AT 31 PaARCH 2025 2025 2024 FIXED ASSETS Intangible assets Tangible assets Investments 14 15 16 22.186 3,566,546 5.545,923 3,604.531 6.206.222 9,134.655 9,810,753 CURRENT ASSETS Debtors Investments Cash at bank and in hand 17 18 23 546,985 1.628,584 854.677 441.811 1.561.599 1,201,811 3,030,246 3,205.221 Creditors.. amounts falling due ￿thIn one yeai 19 11,121,349 {1,321.6531 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 1,908,897 1.883.568 11.043.552 11.694,321 TOTAL NET ASSETS 11,043,552 11.694.321 CHARITY FUNDS Restricted funds 20 71,476 76.852 Unreslricted funds Designated funds General funds 20 9.574.044 1,398.032 9,325,738 2.291.731 20 Tot￿ unrestricted fvnds 20 10,972,076 11,617,469 TOTAL FUNDS 11,043,552 11.694.321 The Tru5t8e5 xknowledge thw'r respons￿"&￿"es for comth.ry wth the requirements of the Act with respecl to accounting record5 and preparab'on of finanoal statemen The financial ststernents were approved and authonsed for issue by the TTUStees and signed on their behalf by.. Mrn S Sutherfand (Chair of Twsteesl Dale.. IS aco i The notes on pages 18 to 39 lom part of tt￿se finanual Staterr￿ts. Page 16 STEP ONE CHARir (A COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 CASH FLOWS FROM OPERATING ACTivmES Net cash used in operating actmt 22 11,064,418) (1.182.757) CASH FLOWS FROM INVESTING ACTMnES Purchase of investments Purchase of tangible fixed assets Proceeds from sale of investments Interest received Purchase of iitangible ffixed assets 12.3931 (2S,450I 1933,6551 750.000 1.500.000 15,595 5.431 (22,861 NET CASH PROVKIED BY INVESMNG ACTMTIES 717,284 569,383 CHANGE IN CA&1 AND CASH EQUIVALENTS IN ThE YEAR (347,1341 {613,3741 1,201,811 1.815,185 Cash and cash ewivalents at the Winning ofthe year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 23 854,677 1.201,811 The notes on pages 18 to 39 form part of these financ￿ statements Page 17 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEIIJENTS FOR THE YEAR ENDED 31 MARCH 2025 GENERAL INFORMATION Step One Charity is a registered charitable company h'mited by guarantee and was set up by a Memorandum of As¥Kiation on 26 Febiuary 1945. The Charity is a registered Company (Company number. 003934771 registere(I Charty (Charity number. 235434) in England and Wales. The regtste￿d office is The X Centre. Commercial Road, Exeter. Devon. EX2 4AD. ACCOUNTING POUCIES 11 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial slalements have been prepared in accordarte %wth the Charities SORP IFRS 102} - Aecounts'ng and Reporb'ng by Charities. Statement of Recommended Practice applicable lo charities preparing their accounts in aC￿rdance the Financial Reporting Stsndard applicable in the UK and Republ￿ of Irelat¥J (FRS 1021 leffe¢tsve 1 January 2019), the Finanual Reporbng Standard applicable in ￿ UK armj Republ￿ of IrelwKI IFRS 1021 and the Companies Act 2006. Step One Charity meets the deh7ilion of a publt benefft entsty under FRS 102. Assets and liabilities are wiitially recognised at historical cost or tranSaC￿n value ￿n￿S olheMi¥e stated in the relevant accountsng rKJlKy. 2.2 INCOME l income is recognised once the Chty has entillement lo Ihe irKome, rt is probable that the income will be received and the arTh)unl ol income receivabk Can be measured reliably. The recognition of intsJm8 from le9aoes is dyndenl on establishing entiljement. the probability of receipt and the ability to esbmale with sufficient ￿UrXY the amount receivable. Evidence of entitlement to a legacy exBts when the Charity has sufficient evidence that a grft has been left to them (through krbowledge of the eXiSte￿e of a valid and the dealh of the benefactor) and the executor is satisfied that the propety in question wll not be required to satisfy daim5 in the estate. Receipt of a legacy must be recognised when rt wobable that it will ￿ recerved and the fair value of the amount receivable. whKh wll generalty be the expected cash amount to be ￿￿tributed to the Charity, can be reliably measured. Income tax recoverable in relatb)n to inveslment ¥icon* is recognised al the time the ￿VeStMent income is receivatAe. Other income is recognised in the period in it ks receivable and to the extent the gwds have been provided or on completion of the seryte. Page 18 STEP ONE CHARITY {A COMPANY LIMITED 8Y GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDe0 31 MARCH 2025 ACCOUNTING POLICIES {continued) 13 EXpEND￿uRE Expendrture is recognised On￿ the￿ is a legal or Construc￿ obligath)n to transler economi¢ benefft to a third paty. it is probable that a tr￿sfer of econom￿ benefrts will be required in settlement and the amount of the obligation Can be ￿aSured reliably. Expenditure is classified by activity. The costs of each activity are made up of the tolal of direct costs and shared costs, including support costs invofved in undertaking ea¢h th'ity. Direct costs attnbutable to a single activity are allocated directly to that actiwty. Shared t￿1$ whth conth.bute to more than one activty and support costs which are not attntmjtable to a single actmty are apportioned behveen those activities on a basis ¢on$istent with the use of resources. Central staff costs are alkKated on the basts of tsme spent. and depreciation charges alocated on the portion of the asseys use. Expenditure on funds includes all expenditure incurred by the Charity to raise funds for its charrtable purposes arKI indudes costs of all fundrasiNJ actrvibe5 events and non NOTES TO THE FINANCIAL STATEIAENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES Icontinu•d) 2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION (CONTINUEDI Deprethation is d￿rged so as to alhxate the cost of tangible fixed assets less their osidual value over th*r estimated useful lives. Deprèciation is provided on the kllowing bases.. Freehold property Freehold land Fixtures arKI equipment 2% straight line - Nol deprecialed - 1(k33% straght line 17 INVESTMENTS Fixed asset irwestments are a fomi of finarKial InStru￿nI and a￿ inilialy recognised at their transaction cost and subsequenty ft￿Sured at fair value al the Balance Sheet date, unless the valuè cannot be measured relAbty in whth case it is measured al cost less impaimient. Investment gains and losses. whether realised or unTeali8ed. are Combined and presented as 'GainsllLossesl on investments. in the Slateff£nt of Financ1￿ A(*vitss. 2A DEBTORS Trade ar¥J olher debtors are re¢ognis¢d al Ihe setderytnt amount after any trade diswunt offered. Prepayments are valued at Ihe a￿K+Unt prepaid net of any trade discounts due. 2.9 CASH AT BANK ANO IN HAND Cash at bank arKI in hand indudes cash and ShOrt4e￿ hyhly liquid investrnents with a short maturity of three months or less frcm the date ol wuls￿.0￿ or opening of the deposit or similar account. 2.10 LIABIUTIES AND PROVISIONS Liabilitie5 are recogni5ed when there an obligation at the Balance Sheet date as a resuli of a past 8venl, it is probable that a transfer of economic benefrt will be ￿quired in seulement. and the amount of the settlement can be estimated relhqbly. abilities are rec￿n￿ed at Ihe amounl thal the Charity anitipates it wll pay lo settle the debt or the amount it has received as advanced payments for the goc¥J$ or services it musl provide. Provisions are measured at ihe best estimale of the amwnts required lo setue the obl￿ation. Where the effect of the time value of money 1$ material. the kyovision is based on the present value of those amounts. discounted al the prtrtsx discount rate that ￿ffleCts the risks spectfic to the Ikits"lty. The unwinding of the dis¢ount is re¢ogntsed in the Ststemenl of Financial Activities as a finance cosL 2.11 FINANCIAL INSTRUMENTS The Charity onty has fmancial assets and frn¢￿1 liabihtss of a kind that qualify as bas￿ financial instruments. Basi¢ financial instruments are initsaly recognised at transaction value and subsequentty measured at their settlenknt value with the exception of bank loans ￿1¢h are subsequenlty measured al amortised ￿$1 using the effeth.ve inleresl method. 2.12 OPERATING LEASES Rentals paid under operating leases are ￿￿[ged to the Statement of Financial Activitres on a straight-line basis over the lease term. Page 20 STEP ONE CHARITY (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES (contlnued 2.13 PENSIONS O•fln•d b•n•llt ￿h¥M0 The Charity operated a defined benefit scheme. whth required contributions to be made to a separately administered fvnd. This scherr£ was thsed to new members with effect trom 6 April 1998. and closed lo fvture benefit accrual from 1 September 2001. For a defined benefft scheme the arnounts charged to operab.ng profil are the current se￿￿e costs and any gains and los￿$ on settlements and curt&lments. They are induded as part of staff costs. Past service costs are charged operating profit immedialety if Ihe benefits have vested. If the benefits have not vested immgdiatety. the costs are rerJ(MJnised by equal annual instalments over the period until vesting occurs. The interest cost and the expected retum on assets a￿ included as other financial income. Actuanal gains and losses are recognised imffediately in the Statement of Financial Activits'es. Defined benefit penson schemes are furKled in separate tNStee administered funds, with the assets of the scheme held separalely fiom Ihose of the Foundahon. Full actuarial valuations are obtained every three years and are updated at each 8alan¢e Sheet date. The resulting defined benefit asset. from the lalesl valuatK)n. has noi been re¢ogn*ed arKI has been capped at the valué of the Ik9￿.11t1e5. Deflned contributlon Scheme The Charity operates a defined contribulion pe￿0￿ Sche￿￿. Contributions are charged to the Statement of Financial kbvilies as they become payable in accoidance with the Tules of the schemes and are set out in Ih8 notes to the accounts 2.14 FUND ACCOUNTING General funds are unrestricted fu￿15 whith are avalable for use at the discrelv)n of the Trustees in fUrtherar￿ of the general obpctrves of the Chanty and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Tnrslees for particular purposes. The aim and use of e￿￿ designated fvnd ts set out in the notes to the financial statemgnts. Restricted funds are funds whth are lo be used in a¢￿dance with specifK restittions imposed by donors or which have been raised by the Chanty for pathuLgr purposes. The costs of raising and administering such funds are charged against the SFeafic ful￿. The atm arthj use of each restricted bJnd is set out in the notes to the financial stalenEnts. Investrnent income. gains and h)sses are alk)cated to the appn)priate fvnd. Page 21 STEP ONE CHARITY IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 MARCH 2025 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGIAENT Estimates and judgments are continualty evaluated and are based on historTrcal experience and other clors. inchJdrvJ expectab.ons of future events that ￿e bdieved to be reasonable under the cirujmstances. Critical ￿Cc￿ntIVj eskn"mates and assumplM)ns: The Charity makes estimates and assumptions cnnceming the future. The resulting accounting ests'mates and assumptions wll. by definilK>n. seldom equal the related actual results. The eslirnates and assumptions that have a significant risk of causing a material aljusknenl to the &irryiro amounts of assets and liabilits'es wthn t1￿ nexl financial year are discussed bekryw. Crrtical areas of judgff£nt The valuation of the defined benefrt pension scheme i¥ a key area ofjudgernent for the Charity. The nsk of using a material adjustrnent to the carrwng arn￿nt of the stheme B reduced due io the use of an independent actuary, with the assumptDns a55855 for reasonableness. INCOME FROM DONATIONS AND LEGACIES Unrestricted lunds 2025 Toial funds 2025 Total funds 2024 Donations Legacies 13.368 68,119 13,368 68,119 19,437 93,732 81.487 81A87 113,169 TOTAL 2024 113.169 113,169 INCOME FROM CHARITABLE ACTivrnES Unrnstricted Restricted funds funds 2025 2025 Total funds 2025 Totsl fund5 2024 Employment and training sgMce5 Health and sccial care 233,304 2,567,105 233304 2.573,873 45.352 2,547.645 6.768 2.800,409 6,768 2,807.177 2,592.997 TOTAL 2024 2.547.697 45.300 2.592,997 Page 22 STEP ONE CHARir (A COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INVESTMENT INCOME Unr¢strl¢ted funds 2025 Total funds 2025 Total funds 2024 Income from listed invesknents Interest 77.004 4,613 n,004 4,613 87.710 5.431 81.617 81,617 93,141 TOTAL 2024 93.141 93.141 OTHER INCOMING RESOURCES Unrnstrf¢ted funds 2025 Total funds 2025 Total funds 2024 Rental income 284,138 284,138 195,512 TOTAL 2024 195.512 195.512 EXCEPTIONAL EXPENDITURE unr￿tr￿ted funds 202S Total funds 2025 Total funds 2024 Defined benefft pension sCheff￿ exit fees 144,952 144,952 Page 23 STEP ONE CHARIT IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ANALYSIS OF EXPENDITURE BY ACTMnES undertaken dlrectly 2025 Support Tolal fund8 2025 Total funds 2024 2025 Employment and training servKes Heatth and so¢ial ¢are 374.450 2.466,652 374,450 3.718,584 574,578 3,398.897 1,251.932 2,841.102 1.251.932 4,093,034 3,973.475 TOTAL 2024 2.674,603 1.298.872 3.973.475 ANALYSIS OF SUPPORT COSTS Total funds 2025 Total funds 2024 Staff c95ts Depreaalion Other support rnsts Pr8mise5 Costs IT costs Goveman* wsls 703,943 64,110 183.483 48N09 222,264 29.723 725,620 65.018 270,313 21.809 198,9 17,116 1,251.932 1,298,872 10. AUDITORS. REMUNERATION 2025 2024 Fees payable to the Charilys audiior for the audit of Ihe Charitls annual accounts 17,850 17,000 Page 24 STEP ONE CHARir (A COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 202S 11. STAFF COSTS 202S 2024 Wages and salaries Social security ￿$ts Pension 2.544,498 225,040 133.119 2.369,881 207,104 137,6C6 2.902.657 2,714,591 The average number of persons empw by the Chanty durin9 the year was as follows.. 2025 No. 2024 110 101 The avera9e headcount expressed as fvIHme equNalents was.. 2025 No. 2024 80 The number of emwoyees whose empw benefits {exduding employèr p8nsion costs) exceeded £60.0￿ was.. 2025 No. 2024 No. In the band £60,001-£70.000 In the band £70,CM11- £80,000 In the band £80.(hJ1- £90.000 The lolal amount of employee benefits received by the key management personnel for their services was £261.129 (2024.. £275.905>. 12. TRUSTEES. REMUNERATION AND EXPENSES During the year. no Trustees re￿Ived any remuneralion or other benefits (2024.. £Nill. During the year ended 31 March 2025. expenses tolalM)g £76 were ￿e￿bUr5ed or paKI directly to 1 Trustee12024- £111 to 1 Truslee). Page 25 STEP ONE CHARITY (A COMPANY UMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 13. NET (LOSSESY GAINS ON INVESThEPITS The b￿akdown of the gwn of £100.798 (2024.. gain of £132.LIMI shown on the Statement of Finanaal Actwitr'es is broken down as r￿k￿S.. 2025 2024 Fixed asset investment reValua￿n8 Escrow a¢¢ount revaluations 16 18 33.812 66,986 117,299) 149.303 100,798 132.004 14. INTANGIBLE ASSETS Computgr software COST Addilims 22,861 Al 31 March 2025 22,861 AMORTISATION Charge for th8 year 675 At 31 Maith 2025 675 NET BOOK VALUE At 31 March 2025 21186 At 31 March 2024 P&Je 26 STEP ONE CHARir (A COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEAIENTS FOR THE YEAR ENDED 31 MARCH 2025 15. TANGIBLE FIXED ASSETS Freehold Flxtur•s and property •qulpmènt Total COST OR VALUATION At 1 April 2024 AddrtJon5 3,693.136 24,090 138,462 1,360 3,831,598 25850 At 31 March 2025 3,717,226 139,822 3,857,048 DEPRECIATION At 1 Aprrf 2024 Charge for the year 187.784 49887 39,283 13,948 227.067 63,435 At 31 M￿h 202S 237.271 $3231 290.502 NEf BOOK VALUE At 31 March 2025 3N79.955 86,S91 3,566,$46 At 31 March 2024 3.505.352 99.179 3.604.531 16. FIXED ASSET INVESThIEKrs Usted Inv•stments COST OR VALUATION Al 1 April 2024 Disposals Revaluations Interest and dividends Investment man4er fe 6,206,222 1765.595) 61.850 48.695 (5,249) AT 31 MARCH 2025 5,545,923 NET BOOK VALUE AT 31 MARCH 2025 S,545,923 AT 31 MARCH 2024 6.206,222 P•3e 27 STEP ONE CHARITY {A COMPANY UMrrED BY GUARANTEE) NOTES TO ThE FINANCIAL STATEthIENTS FOR THE YEAR ENDED 31 MARCH 2025 17. DEBTORS 2025 2024 DUE ￿THIN ONE YEAR Trade debtors Other debtors Piepayments and accrued income 268,238 91,895 186.852 198,699 62.537 180.575 $46,985 441.811 ESCROW ACCOUNT 2025 2024 Investments 1,628,584 1,561,S99 The Escrow account is estsblished under a deed between the company and the Trustees of the St Loye's Foundation Pension & Assurance Scheme and is used to provide Contr["but￿n5 to the Scheme under an agreed recovery plan. Assets from the account can be retumed to the company when the Scheme is over-fu￿led per the funding based actuary vahjation. During June 2025. rt was agreed that due lo the funding wsition of the S¢heme. that the JTh)nies could be relumed to the Charity. These were received on 24 June 2025. Page 28 STEP ONE CHARIT IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOEO 31 MARCH 2025 19. CREDITORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR 2025 2024 Trade credrtors Other tsxalion and socil s￿rity Other creditors Accruals and deferred income 177,145 52.131 452 891,621 182,739 49.362 1,089.552 1,121.349 1,321.653 2025 2024 Deferred income at 1 April 2024 Resources deferred during the year Amounts released from previe￿$ penods 1,042,597 1.362,997 844,387 1,042,597 11.042,597) (1.362,9971 844.387 1.042,597 The main ¢￿$￿'tuent balance deferred ￿coMe relates to the Alliance Partnership. This ￿ part of the cash balar￿e owed to mentss of Ihe all*nce at year end. Page 29 STEP ONE CHARITY IA COMPANY LIMITED 8Y GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF FUNDS STATeMeNT OF FUNDS- CURRENT YEAR Balance at 31 March 2025 Balance at 1 Aprll 2024 Transfèrs inl{out) Gainsl ILossos) Income Expendlture UNRESTRICTED FUNDS DESIGNATED FUNDS Pension scheme Escrow Tangible fixed assel reserve 1,561.598 66,986 1,628,584 3.604,531 (63,4351 25.451 3,566,547 Intangible fixed asset ￿Serve Future sustainatrmlity Investment volatility reserve 1675) 22,861 22.186 121,063 121.063 1,781,343 46.158 33,812 1,861,313 Unrealised Investment revaluats'on 2,257203 117,148 2,374,351 9,32S.738 164,110) 211.618 100,798 9,574,044 GENERAL FUNDS General funds 2.291,731 3,247.651 (4,163,232) 1210.1181 232.000 1,398,032 TOTAL UNRESTRICTEO FUNDS I1￿17,46$ 3,247,651 (4,227,342) 1,500 332,798 10,972,076 RESTRICTED FUNDS 8eWdl@StepOne Cypres5 15,000 61,852 110,644) 4,356 67,120 6,768 76,852 6.768 110,644) I1￿00> 71,476 TOTAL OF FU14DS 11,694A21 3354N19 14237,986) 332,798 11,043.S52 Page 30 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 20. STATEMENT OF FUNDS ICONTr4UED> D•slgnated Fund8 Pension Scheme Escrow This relates lo lunds invested in related to ihe defined benefit pension xheme are held in an escrow account. managed by Lègal & Gerwal on behalf of Ihe Charity. These investn*nts are not realisable in the short temi and are to be used to meet the pension scheMe1￿billties and hence an amount equal to the liability is des¥Jnated for ihese pvrposes. Tan e Fixed As Reserve Thi5 rèlates to funds invested into tangible fixed assets and 1$ equivalent to the nel book value of tsngible I￿ed assets at the year end. Expenditure against the fund relates to deweciatMM. with transfers in being any capital addtrJns in the year. Intan *Jle Frxed Asset ReseNe This relates lo funds invested inio inlaryible fixed assets and equivalent lo the net book value of intangble fixed assets at the year end. EXPendrtU￿ awnst the fund relates to amortisation, with transfers in being any capita add￿"on5 in the year. Future Sustainabili Th￿ relates lo ftjnds sel aS￿e to provth for the costs as%)ciated wilh (Kganisational thanges and developments in ordei to supwt sustainability in a changing fundin9 environment. This provKles for essent￿1 restructuring costs and investment in busiDess development and the creation of new revenue streams n line wilh the strategic plan. Investment Volatil. Fund Th￿ relales to funds sel a￿de to help guard against any firture vdatility in either inveslment valuations of movement in the pensDn fund def¥>L Unrealtsed Investm nt Reserve This relates to fur￿5 equwalenl to the cumulalNe revaluatK)n gains 7Arythin our investment portfol￿. The balance fluctuate5 year on year in line wth the perf0mlan￿ of the pthlio. When an investmenl is disposed of, any gain at that tirrE becom￿ realised and ￿ transferred into general funds. Re¥triGted Fund$ 8eWell Thi5 relates lo fvnds set up to support rr￿tal heath and elbowing to those in the community. CF03 This relates to funds for use to set up to replace the Change Maker fund. It is a voluntsry programme funded by the Shaw Trust designed lo he4) peo* With￿ the jus11￿ system prepare for when they leave custody and re-enler the communty. Health and Soual Services This relates lo funds that were transferred from CCT {subsKliary Charity) on 31 March 2022. As the objects of CCT are namr than those of Step One Chanty. the UnreSts￿led funds of CCT have been treated as restncted funds withm the financial stalemits. The subsidiary remained dormant in the year. . South Devon Commun Housin This relates to funds ￿CeIVed from South Devon Communty HousirwJ Society to provide supm to people aged over 16 n Soulh Devon. ress This relates to funds receiied from a legacy in the year ending March 2021. Thrs has been used in the year for fundng for an ECG machi￿. for an OT room and for the employment of a psychologist ay Cypress. Wher8 capitsl ttems have been pU￿aSed c¥rf from resfrIC￿ fvnd4 th8 expenditure is shown on the Page 31 STEP ONE CHARITY {A COMPANY LIMITED BY GUARANTEE) NOTES TO TrIE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF FUNDS ICONTINUEDI Statemenl of Financial Adiwl*s and Statement of Funds note as a transfer out from resti7cted into the deS￿nated langible/intangth fixed asset fynd& STATEMENT OF FUNDS - PRIOR YEAR Balance at 31 March 2024 Balance at 1 April 2023 Tfansfers InI￿t Gainpj (Losses) Incomg ExpeThJrture UNRESTRICTED FUNDS DESIGNATED FUNDS Pension scheme Escrow Tangible fixed asset reserve 1.412.295 149,303 1,561.598 2.735.185 (64,309) 933,655 3.604.531 In￿gIble fixed asset reserve Investment volatKIty reserve 140,578 (19,515) 121.C63 1.828.422 (29.780) 117,2991 1,781,343 Unrealised Investment revaluation 2.257,203 2,257,203 6.116.480 1113.6041 3.190,858 132.004 9,325,738 GENERAL FUNDS General funds Unrealised investment revaluation 4.382.263 2.949.519 (3.769.056> 11.358,9951 88,000 2,291.731 1,819,214 11,819,214) 6.201.477 2.949.519 (3.769.056) 13,178,209) 88.000 2.291,731 TOTAL UNRESTRICTED FUNDS 12.317.957 2.949,519 (3.882,6601 12,649 220.004 11,617,469 32 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE) NOTES TO The FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF FUNDS (COllllNUED Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Gainsl (Losses) Income EX[￿KIl1Ure RESTRICTED FUNDS Bewell CF03 South Devon Communty Housing Cypress 8eaD)n Lane Build stepone 27,3(M) {16.165) (6,903) 3,865 13.865) 15.000 2,768 56,747 75,501 156.747) (1.000) 110,000) (12.649) 61,852 10.( 135.016 190.815) (12,649) 76,852 TOTAL OF FUNDS 12,452.973 2.994,819 13.973.475) 220,004 11,694,321 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BEnNEEN FUNDS - CURRENT YEAR Unre8trlcted Rostrl¢ted funds funds 2025 2025 Total funds 2025 Tangible fixed assets Intangible fixed assets Fixed asset investments 3.566.546 22.186 5,545.923 2.958.770 11.121,349> 3.566,546 22,186 5.545.923 3.030,246 Current assets 71.476 Creditors due within one yeai TOTAL 10.972.076 71.476 11.043,552 Page 33 STEP ONE CHARI (A COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEIAENTS FOR THE YEAR ENDED 31 MARCH 2025 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUE0> ANALYSIS OF NET ASSETS BETWEEN FUNDS- PRIOR YEAR Unrestricted nds 2024 Restricted funds 2024 Total funds 2024 TaNJible fixed assets Fixed asset investwenls Current assets Creditors due within one year 3.604.531 6,206.222 3,128,369 11.321.653) 3,604.531 8.2￿,222 3,205,221 {1,321,653} 76.852 TOTAL 11,617,469 76.852 11.694,321 RECONCILIATION OF NET PAOVEMEKf IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 22. 2025 2024 Net 8XP8ndrtur8 for the year las per Staterr￿t ol Fina￿la￿ AciiwtRs} 1882.7691 1846,6521 ADJUSTMENTS FOR: Depreciab'on charges Amortisalion charges Lossesl {gainsl on investments Dividends, interests arKI rents frtyn inVestn￿ts Loss on the sale of fixed assets Dec￿ase111ncrease} in debtors Decrease in Creditors Difference between pension charge and ￿sh contributions Investment fees 63,435 675 53.215 (100,798) {132,004) 177,004) 190,176) 11,094 70,301 (366,315) 88.000 29,780 (105,1741 (200,0321 232.000 5,249 NET CASH USED IN OPERATING ACTlVtnES (1,064,418> (1,182,757) Page 34 srEP ONE CHARITY (A COMPANY LIMITED BY GUARAKfEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 MARCH 2025 ANALYSIS OF CASH AND CASH EQUIVALENTS 2025 2024 Cash in hand 21JO.IM4 654.633 295.114 gC6,697 Alliance Partnership- nngfenced cash TOTAL CASH AND CASH EQUNALENTS 854.677 1.201.811 ANALYSIS OF CHANGES IN NET FUNDS Ch•nge¥ In mark•t value and exchange At 1 April rats At 31 March 2024 Cash flows movements 2025 Cash at bank and in hand 1.201.811 1,561,599 1347.1341 LiquKI invesknents 66,985 1.628,584 2.763.410 {347,134 66,985 2M83,261 25. PENSION COIAMIThIENTS Th& Charity operates a deffir*d benefft pension scheme. Slgp One operatés a pension SCherr￿ for all quality'ng empbyees. Thé assets of the Scheme are held in a 58parate trustee administered fvrKI. The scheme closed to future accrual on 1 September 2001. A schedule of contributions is agre8d beiweÉn thè Charity and the Trustee after each comprehensive actuarial valuab"on. The most recentty completed fvll actuarial valuatvJn took place as al 5 Apnl 2023. Under the agreed schedule of conthbutions from 5 April 2020. Step One paid contributions to the scheme of £17,500 per month untbl 31 March 2022 and one-off payments of £442,698 in April 2021. £1.595.762 in June 2021 and £459.000 before 31 March 2022. No fijrther contributions have been required since 31 March 2023. At the date of the triennial valuation. the FensM)n scheme was in a nel asset position of £3,768.000 or 119%. During December 2024. the pension Trustees entered into a Buy In agreement wrth L&G. The processes to com1￿ete the Buy Out transacth)n will continue through 2025-26 and is expected to conGlude duriThJ 2026-27. Page 35 STEP ONE CHARirf (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEIAENTS FOR THE YEAR ENDED 31 MARCH 2025 25. PENSION COMMITMENTS {CONTINUED) Principai actuarial aSSur￿c￿S at the Bal￿ Sheet date (expressed as weighted a¥erage$).' At 31 M•r¢h At 31 MaT¢h 2025 2024 Discwnt rate Rale of pn¢e inflatb)n - RPI Rate of price inflation- CPI Deferred pension inueases InofvGMP) Pension increases in payment At 31 March At 31 March 2025 2024 Year4 Years MORTALITY RATES (IN YEARS) - for a male aged 65 now - at 65 for a male aged 45 now - for a female aged 65 n(r - al 65 foi a female aged 45 ntr4V 20.5 21.5 23.1 21.5 24.2 The Chantys Sha￿ of the assets in the scheme was Al 31 ltsr¢h At 31 March 2025 2024 £0(￿$ £OOOs Uy4n ptsli¢y Gilts Corporate bonds Cash and olhef liquid as$els Absolute relum l DIVe￿fied gr￿*￿h funds Insured arsnurties 12N21 10.6 3.820 1,315 2.561 3.578 2,088 2,795 TOTAL FAIR VALUE OF ASSETS 17.S64 21.962 The actual retum on scheme assets was a teduclion of £2.738,IXJO12024. an increase of £1.150.000}. Page 36 STEP ONE CHARir (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 25. PENSION COMMITMENTS (CONTINUED) The amounts reL￿niSed in the SLqtement ol Finanaal A¢￿VIbeS are a$ follows: 2025 £OOOs 2024 £OOO$ Interest cost Administrative expenses Impact of surplus restriclron TOTAL AMOUNT RECOGNISED IN THE STATEMeNT OF FINANCIAL ACTMTIES 12371 232 237 {2051 88 205 232 Movements in the present V8lue of the defmed benefft (￿￿￿￿allOn were as folknws.. 2025 £OOOs Opening defined benefit obligation Benefits paid Interest wst on defined benefrt olAigation Actuarial {gain)ThJss 116,929 1,428 1762 1,187 CLOSING DEFINED 8ENEFrr OBUGATION 115,076) k*vemgnts in the fair value of the Charitys share of scheme assets were as follows: 202S £IX)Os Opening fair value of scheme assets Interest Income Return less interest income on scheme assets Benefits wd AdMIn￿tr3￿.0n Expenses 21,962 99> 13,737 11,428 1232 CLOSING FAIR VALUE OF SCHEME ASSETS 17,564 The Charity has an unrecognised suWus of £2.488.000 {2024'. £5.033.0(K)) in respect of tts dèfined benefit pension scheme as it does Mt expect to recover the plan surplus either through r8du¢ed contributs'ons in the fvture or through ftfunds from the pkn. Furthermore, as the pension Trustees have entered into an agreement to sell the schème, it is expected that any remaining surplus is returned to the Charty on corry>letion of the transaction. Given that this Is not expected to happen untsl later in 2026. the amount of any surplus at that point is not known with any certa.nty and therefore has not been recognised as an asset Page 37 STEP ONE CHARITY IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 opeRAmNG LEASE COMMrrMENTS At 31 March 2025 the Chanty had commilments to make future mininum lease payments under non- cancellable operats.ng leases as f￿{oW$.. 202S 2024 Not later than 1 year Later than 1 year and not later than 5 years 109.231 95,$07 78.181 154.442 204,738 232.623 Page 38 STEP ONE CHARITY (A COMPANY LIM￿ED BY GUARANTEe) NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2025 27. RELATED PARTY TrANSACTIONS The Charity has an outstsrKling balwKe of £425 for payments crf) behalf of Community Care Trust, a related paty to 4 of the Trustees at 31 March 2025. 28. POST BALANCE SHEET EVENTS The Charity has purchased a property to provrde supported Imng ￿0[r￿n0d31lOn. The cost of the propety was £575,000 and the purchase conwleted on 23 June 2025. 29. CONTrOLLING PARTY The Charity is contrc4led by the Trustees. P￿e 39