2024-07-31-accounts

REGISTERED COMPANY NUMBER: 02] 71777 (England and Wales) REGISTERED CHAIUTY NUMBER: 800614 REPORT OF THE TRusfEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31sr JULY 2024 FOR FIRsf RUNG LIMITED Sproull & Co. Chartered Accotsnlants Statutory Auditors First Floor, Jebsen House 534 l High Street Ruislip Middlesex HA4 7BD

FIRST RUNG LIMITED CONTENTS OF THE FINANCIAL STATEMEIYTS FOR THE YEAR ENDED 31ST JULY 2024 Page Reference and Administrative Details Report of the Trustees Statement of Trustees, Responsibilities Report of the Independent Auditors 7 to 9 Statement of Financial Activities io Statement of Financial Position Statement of Casb Flows 12 Iyotes to the Statement of Cash Flows 13 Notes to the Financial Statements 14 to 22 Detailed Statement of Financial Activities 23

FIRST RUNG LIMITED REFERENCE AND ADMtNISTRATIVE DETAILS FOR THE YEAR ENDED 31ST JULY 2024 TRUSTEES O Ahmed HAIi J R Eifion-Jones (Treasurer) E J Jones (Chair) I J Laivrence M Mahajan CSPike S Riley COMPANY SECRETARY H J Wap•vick RECISTERED OFFICE 197-205 High Street Ponders End Enfield Middlesex EN3 4DZ RECISTFRED COMPANY NUMBER 02171777 (England and Wales) REGISTERED CHARITY NUMBER 800614 AUDITORS Sproull & Co. Chartcred Accollntants ststutory Auditors First Floor, Jebsen House 53-61 I ligh Street Ruislip Middlesex HA4 7BD BANKERS HSBC Bank plc l The Town Enfield EN2 6LD Barclays Bank plc 54 High Street Ruislip Middlesex HA4 7AT Page I

FIRST RUNG LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2024 The trustees who are also directors of the charity for the purposes of the Companles Act 2006, present their report with the fmancial statements of the charity for the year ended 31 st July 2024. The trusiees have adopted the provisions of Accounting and Reporting by Charities: Statement of Reconunended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l Janvary 2019). OBJECTIVES AND ACTIVITIES Objectives and aims To advance education for the public benefi¢ particularly but not exclusively, by the provision of vocational training. The relief of unemployment foi the public benefiL particularly, but not exclusively. by the provision of training, retraining and periods of work experience through the progtwnmes of the Education and Skills Funding Agency (ESFA), or similar programrnes ftmded by local and central Govertllnent, COTpofdte partners and the European Social Fund. To deliver training and development to young people $0 that their employment prospects are significantly improved. This can be through classroom or digÉtal delivery,. To provide learning, tratning, and work experience Oppor￿nItIeS for young people to prepare them for the world of work. This is tailored to the individual needs of the young person and is supported by a comprehensive pastoral care programme. Public benefil Trustee5 of a charity have a duty to rq)ort on their charitys public benefiL The Trustees of First Rung Limited have considered the guidance issued by the Charity Commission. The Trustees have Concluded that'.- The aims and activities of the organisation continue to be charitsble- The aims and the work dolle give identifiable benefits in the charitable sector and both directly and indirectly to young people in need. The benefits are for the public, are not unreasonably restrictive in any way and certainly not by ability to pay" There is no detriment or hann arising from the aims and activities. The trustees can confirnl that they are complying with the Charity Comrni&sion's guidance on public benefit. First Rung is a registered charity. its only activity is the provision of learning, training and preparing young people for work. Prior to joining us ￿￿]Y of our learners stru￿0 le to identify the next stage in their education or work. The charity. by providiiig tailor made courses combined with excellent pastoral care, nurtures the young people, enabling them to make the next step in their journey for the benefit of society. local employers and the economy. Activities Stud PTO ramme First Rung continues to deliver the 16-18 years old Study progratntne, which offers bespoke learning and employability provisioTh to young people based on their needs and Prior attainment. The aim is to provide young people with the skills and qualifications to progress to an apprenticeship, employment or further education. Learners have the opportunity to achieve a level I vocational qualification in either Accountancy, Business Administration. Customer Service or Health and s￿lat Care. They develop their skills in Englis￿ Mathematics and ICT by uiidertaking the Functional Skills qualification at the appropriate level. First Rung continues to offer GCSE English and Mathematics provision to leamers who did not previously achieve at least a grade 3 in these subjects. All learners on the programme attend preparation for life and WO￿ sessions to support them to develop the necessary skills and attributes to sustain employmenl and be a good citizen. All learners are also expected to undertake a work placement as part of the programtne. Page 2

FIRST RUNG LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2024 OBJECTIVES AND ACTIVITIES renticeshi Apprenticeships offer employers the opporttmity both to recruit neiv staff who wtll be trained to industy standard while tliey work, and to up-skill exlsting staff. Companies ivith an annual pay bill of more than £3 million have to pay an apprenticeship levy at a rate of 0.50/0 of iheir wmual pay bill. They can use this fvnd lo provide apprenticeship trdining to their staff. The fuiids are accessed through the Digital Apprenliceship Service (DAS) syslein. Apprenticeship standards provide a structure of industry relevant to both on and off the job iraining. Off the job training is delivered by Fitst Rung eiiher in centre or on-line. On the job Irdintng is delivered in work by the employer. Apprcntice5hips are both level 2 and 3 and are delivered in a ranue of vocational areas. Smaller employers who are not required io pay the apprentlCe5hip levy can also einploy and trdin apprentices. Funding for thc training delivered by First Runtr is drawn doivn from the Digital Apprenliceship Service. Due to a cliange in govenunent policy. these apprenticeships are now fully fill]ded. the employer no longer h&s lo contribute. During thc year ended 31 July 2024 First Rung delivered apprenticeships in the areas of Early Ye8r4 Teaching AssislanL Accountancy, Business Adn]inistration and Customer Service. Back on Track Tar eted NEli."I' Greater London Authori This NEET (Not in Employment. Education or Training} programme launched in April 2024. M'as designed lo focus on young Londoners who are furthest frovn the labour maTket and experiencing multiple fornis of disadvantage anivor have sionificant additional support needs including: Looked after children or care leavers. Those iyho are homeles5 or at risk of homelessness. Those involved in substancc misusc andlor criminal activity. Young carers. -I"hose with SEND (Special Educational Needs and Disabilities). The GLA divided the progtzmme into 4 arcas of London. Firsi Rung was award¢d a grant for thc Ponders End site iii the North & East London area. All participants are supported on a one-l(H)ne basis by an advisor. Jobs aiid Skills for Londoners Greater l.ondon Authori FirsL Rung launched Healih and Social Care prog￿nmeS through a project called "Skills and Jobs for Londoiiets" for leaTners aged 19 and over sttldy qualifications at levels 2 and 3. h Needs Su First Rung has become a specialist provider of support to learner5 aged 16-25 who have additional needs identified in an Education, Health and Care Plan (EFICP). First Rung supported 20 learners during the year, funded jointly througj the ESFA and Iwal authorities. UK Shared Pros eri Fund UKSPF- Multi me Towards the end of the year, First Rung secured funding as a subcontra¢tor to Harrow. Uxbridge and Richmond College to deliver numeracy training to young people aged 16-25. Page 3

FIRST RUNG LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2024 ACHIEVEMENT IiND PERFORMANCE Achievements Delive of Learnin First Rung supported 249 Study Programme and 50 apprentices l&qmers during the year. uali of Provision The Charity's aim is continuously to improve the quality of the learning that it provides. To achieve this aim. each year a critical self-assessment is undertaken, the findings from which are used to produce a Quality Improvement Plan {QlP) which identifies the areas requiring attention. the person tasked with the work and the deadline of completion. Ofsled The Apprenticeship. Study Programme and High Needs provision is subject to inspection by Ofsted. First Rung was inspected by Ofsted in December 2022 and grnded "Good" overall. This included a "Good" judgement in the new area5 of Apprenticeships and High Need5 SUPPOrt. Fundraising activitRes During thi5 financial year. the Trustees decided that the environment and circumstances were still Thot conducive to active fundraising. In ihe future, we will return to active fimdraising when the time is right and opportunities arise. 40th Anniversary Celebration First Rung marked its 40th anniversary in November 2023 with a celebration event at ttLe Crown Hotel, Cricklewood. The event was attended by learners. employers. paithers. trustees and the staff team and included an awards ceremony. FJNANCIAL REVIEW Results for the Financial Year and Long Term Slrategy The financial health of the organisation has continued to improve resulting in a surplus of £179,466 for the year ended 31 July 2024. During the year the organisation continued to invest ID Stair developmenL including teacher training and purchased IT hardware for staff and learners. Risks attached to achievement of objectives First Rung faces risks from changes in Government priorities in employment and skills provision. to mitigate this risk the Charity is proactively looking to diversify into al*rnative incorne Streams, so that there is less dependence on the ESFA contract which at present constitutes the majority of our income. There has been some success in this area with the securing of UKSPF Fund and First RuJ]g was awarded a Greater L4)ndon Authority contract in 2022-23, followed by another in 2023-24. The safety of our learners, many of whom are vulnerable, is of paramount importanc¢ to First Rung. To mitigate the risks, all staff and trustees are DBS (Disclosure and Barring Service) checked and have regular training in Safeguarding, 'Prevent' and bullying awareness. Safeguarding is included as a topic for discussion at every Board meeting. Investment policy and objectives It is the policy of the Trustees to invest surplus in short tem] Cash deposits. From time to time the Trustees, via the Finance & Premise5 Committee, look at the overall resources of the OTgani5ation and its future needs in order to establish whether there is scope for extending the range of investments. The organisation's improving financial position now allows for over half of our reserves to be held in short tenn deposits. Reserves policy The Trustees have agreed that, in the short terni, free reserves (net current assets) should be maintained at a minimum level of tlyee months of operating costs. in order to provide cover in the evenl of any interruption of income and to enable opportunities to invest in the organisation as they arise. The free reserves at 31 July 2024 were £471,710 (£292.244 &s at 31 July 2023) and now just exceed the Trustees, target of 3 monihs, operating costs. This strategy includes a commithient to move to a free reserves level that consistently exceeds three months. Continuing to operate at a surplus this year supports this policy. Page 4

FIRST RUNG LIMITED REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charit), is controlled by its governing documenL a deed of trust, and constilutes a limiled company, limiied by guarantee. as defined by the Companies Act 2006. Day to day decisions regarding the charity are made by the senior management team, led by the CEO. There are Iwo Board sub-committees covering Finance & Premises and Quallty, Personnel and Renumerdtion.. Board of Trustees The follom'ing list includes all Twstees and key management who served during the financial year. Chair Elizabeth Joan Jones Treasurer Alan Warner Jonathan Richard Etfion-jones Resigned 14.12.2023 Appoinled 13.9.2023 Other Trnstees Sonal liiley Omar Ahmcd Juliet Szabv-merridew Mohit Mahajan lain Jamcs tAivrence Calvin Sidney Pike Har￿a Ali Enunamuella Emovon Resigned l 0.1.2024 Appointed 13.9.2023 Appointed 18.1.24 Resigned 1.10.24 Cotnparly Secretary Hannah Julie Wanyick Senior Staff Chief Executive Steve Woolcock Deputy CEOIOperations Manager Denis Dillon Head of Centres and Inclusion Francesca Murnlori Finance and performance manager Drnvi Attygalle STATEMENT AS TO DISCLOSURF OF INFORMATTON TO AUDITOR.S So faT as the trustees are aware. there is no relevanl infomiation (as def￿ed by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaivare, and each trnst¢e has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit inforn)ation and to establish that the charitable company's auditors are aivare of that inforniation. AUDITORS Under section 487(2) of the Companies Acl 2006. SpTouII & Co.. Chartered Accountants and Statutory Auditors. are deemed to be reappointed as auditors. Approved by order of the board of trustees on ..... 0 &S.... and signed on its behalf by: EJJone ee Page 5

FIRST RUNG LIMITED STATEMENT OF TRUSTEES, RESPONSIBIL￿lEs FOR THE YEAR ENDED 31ST JULY 2024 The trustees (who are also the directors of First Rung Limited for the putposes of company law) are responsible for preparing the Report of the Trns(ees and the fll)ancial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Gene)7lly Accepted Accounting Prdctice). Company law requires thc trustccs to PTcparc fiDancial statements for eacb fmancial year which give a true and faiT view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure. of the charitable company for that period. In preparing those fu￿nCIal statements, the trustees are required to select suitable accounting policies and then apply them consistently" observe the methods and principles in the Charity SORP. make judgements aT]d estimates that are reasonable and prudent" prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting r¢eords which disclose with reasonable accuracy at any time the financial position of the charitable cotnpany and to enable them to ensure that the financial statements cotnply with the Companies Act 2006. They are also responsible for safeguarding the &ssets of the charitable company and hence for taking reasonable steps for th¢ prevention and detection of frdud and other irregularitics. Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FIRST RUNG LIMITED Opinion We have audited ihe financial slatements of First Rung Limited (the 'charitable cornpan￿) for the year ended 31 st July 2024 ivhich comprise the Statement of Financial Activities, the Ststement of Financial Posilion. the Statement of Cash Flows and notes to the f￿anCIal slalements. including a sumw of significant accounting policies. The fmancial reporting framework that has been applied in their preparntion is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a trne aiid fair view of the state of the charitable CoMpan￿S affairs as at 3 1st July 2024 and of its incoming resources and applicalion of resources. includiiig its income and expendityre, for the year then ended; have been prnperly prepared in accordance with United Kingdom Generally Accepted Accoullting Practice" and have been Prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance ivith International Standards on Audiling (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our repo￿ We are independent of the clwiiable company in accordance wilh the ethical requiremenls ihat are relevant to our audit of the financial statetnents in the UK, including the FRC'S F.ithiral Standard, and we have fulfilled our other ethical responsibilities in accordance iyith these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing thc financial stdtewnents, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the fmancial statenients is appropiiate. Based on thc ivork we have perfornied, we have not identified any Tnaterial uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charitable company's ability to continue as a going conceni for a period of at leasl twelvc months Irom when the f￿ancial sialemcnts are auihoriscd lor issuc. Our responsibilities and the responsibilities of the trustees with respect to going coJ)cern are described in the relevant sections of this report. Other information The trustees are responsible for the other infornmtion. The other infonnation comprises the inforn)alion included in the Annual RcporL other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements d(Ks not cover the other infoTmation and, except to the extent otherwise explicitly stated in our report, we do not express any fonn of assurance conclusion thereon. In connection with our audit of the financial statements, our Tesponsibility is to read the oiher infornialion and. in doiiig so, consider whether the other infonnation is materially inconsistent with the flnancial statements or our knowledge obtained in the audit or otherwise appcars to bc materially misstatcd. If ive identify such material inconsisteiicies or apparent mat¢Tial misstatements. Ive are required to detem)ine whether this gives rise to a material iiiisstatement in the financial statements themselves. If, bas¢d on thc work we have perfornicd, Ive conclude that there is a material missiatement of thi5 Other inforn]atioJJ. we are required to report that facL We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audi(: the infonnation given in the Report of the Trnstees for the financial year for which the f￿ancial statements are prepared is consistent with the f￿anCIal statements- and the Report of the Trustees has been prepared in accordance iyith applicable legal requiremenls. Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FIRST RUNG LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the charilable company and its environment obtained in the course of the audit, we have not identified material tnisstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion: adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not Vj51ted by us- or the financial statements are not in agreement with the accounting records and returns" or certain disclosures of trustees, remuneration specified by law are not made. or we have not received all the infomiation and explanations we require for our audit- or the trustee5 were not entitled to take advanlage of the small companics exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Responsibilities of trustees As explained more fully in the Statement of Tn￿tees, Responsibilities, the tr￿teeS (who are also the directors of the charitable company for the purposes of company law) are responsible for the prepardtion of the financial statements and for being satisfied that they give a true and fair view, and for such internal control &s the trustees detemiine is necessary to enable the preparation of fmancial statements that are free from material misstatemenl whether due to fraud or error. In prepaTiDg the financial statements, the t￿￿teeS are responsible for assessing the charitable company's ability to ontinue as a going concern. disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statem¢nt5 as a whole are free from material misstatement. whether due to fraud or error, and to issue a Report of the IndependeTht Auditors that includes our opinion. Reasonable assurance is a high level of assurdnce. but is not a guardnlee that an audit conducted in accordance with ISA5 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these f￿ancial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and the sector in which it opcratcs. wc idcntificd thc principle risk5 of non-compliance with laws and regulations related to charitable companies and the application of charitable funds. We also considered those laws and regulations which have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Cbarities SORP IFRS 102). Through enquiry of management we gained aD understanding of their relevant laws and regulations. the entitys policies and procedures regarding compliance; and how they identify, evaluate and account for litigation claims. We understand that the company cornplies with the framework through having in place robust procedures and policie5 and by outsourcing and taking external professional legal, tax and accounting advice on relevant specialist functions and areas. The senior statutory auditor led a discussion with all members of the engagement team regarding the susceptibility of the company's f￿anCIal statements to material misstatemen¢ includtng how frdud might occur. The areas identified in this discussion were: Manipulation or error in the classification of income leading to the under or overstatement of unrestricted or restricted funds. Manipulation or error in the use of fund5 leading to expenditure which is not in accordance with the charitable cornpanY5 objectives. Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FIRST RUNG LIMITED The procedures we carried out to gain sufficienl appropriate audit evidence in the above areas included: Identify and assess ihe risks of material misstalement of the financial statements, whether due to fraud or e￿Or, design and perform audit procedures responsive to those risks. and obtsin audit evidence (hat is SU￿1Clent and appropriate to provide a basis for our opinion. The risk of not detecting a material misstateinent resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal conlrol relevant to the audit in order to design audit procedures that are appropriate in ihe circumstances, but nol for the purpose of expressing an opinion of the effectiveness of the charitable con)panYs internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the diTe¢tors. Identifying and testing journal entries. Evaluate the overall presentation. structure and content of the financial statements. including the disclosures, and Ivhether the fmancial slatements represent the underlying transactions aiid events in a manner that achieves fair presentation. A further description of our responsibilities for the audil of the financial statements is located on the Financial Reporting Council's ivebsite at www.frc.org.uk/audAtorsresponsibilitie5. This description forn]5 part of our Keport of the Independent Auditors. Use of our report This report is made solely to the charitable compally's members. &s a b￿. in accordance with Chapter 3 of Pan 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable cotnpany's menibers tliose malters we arc required to state to theffl in an audttors, report and for no other purpose. To the fullest cxtenl pennitted by law. we do not accept or assume responsibility to anyone other than thc charilablc company and the haritable coiiipany's mcmbers as a body, for our audit work, for this report, or for the opinions we have fonned. Michelle Wickwar A.CA.. F.C.C.A. (Senior Statutory Auditor) for and on behalf of Sproull & Co. Chartercd Accountants Statutory Auditors First Floor, Jeb5en House 53-61 High Street Ruislip Middlesex HA4 7BD Page 9

FIRST RUNG LJMITED STATEMENT OF FINANCIAL AcfiviTtES FOR THE YEAR ENDED 31ST JULY 2024 2024 Total funds 2023 Total funds Unrestricted fund Restricted fund Notes INCOME AND ENDOWMENfs FROM Charitable activities Main charitable activities 2,004,710 2,004,710 1,712,652 Investment income 2,879 2,879 491 Total 2,007,589 2,007,589 1,713,14i EXPENDITURE ON Charitable activities Main charitable activities Support costs l J36S64 491299 l J36,564 491,299 1,205,399 434,751 Total 1,827,863 1,827,863 1.640,150 NET INCOME 179.726 179,726 72,993 RECONCILIATION OF FUNDS Total fimds brought forward 292244 292,244 219,251 TOTAL FUNDS CARRIED FORWARD 471,970 471,970 292.244 CONTINUING OPERATIONS All income and expenditure has arisen from continuing activities. The statement of flnancial activities includes all gains and losses recognised in the year. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The notes forni part of these f￿anCIal statements Page 10

FIRsf RUNG LIMITED STATEMENT OF FINANCJAL POSITION 31ST JULY 2024 2024 2023 Noles FIXED ASSETS Tangible assels 12 70,496 83,297 CURRENT ASSETS Debtors Cash at bank and in hand 13 382J80 342,745 248,594 215,433 725,125 464.027 CREDITORS Amounts falling due wiihin one year 14 (323,651) (255.080) NET CURRENT ASSETS 401,474 208,947 TOTAL ASSETS LESS CURRENT LIABILITIES 471,970 292,244 NET ASSETS 471,970 292,244 FUNDS Unrestricted funds 17 471,970 292,244 TOTAL FUNDS 471,970 292,244 Thesc financial Statements have been prepared in accordance ivith the provisions applicable to charitable companies subject to the small companics rcgime. The financial statements were approvcd by the Board of Truslees and authorised for issue .5 1../...1>3..J...&a.L.S... and were signed on its behalf by. on ones - tee The notes forni part of these fmancial stalements Pagell

FIRST RUNG LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 139,944 29,001 Net cash provided by operdting activities 139.944 29,001 Cash flows from investing activiti£s Purchase of tangible fixed assets Interest received (15.511) 2,879 (938) 491 Net cash used in investing activities (12,632) {447) Change in eash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period 127J12 28.554 215,433 186,879 Cash and cash equivalents at the end of the reporting period 342,745 215.4J3 The notes forni part of these financial statements Page 12

FIRST RUNG LIMITED NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST JULY 2024 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING A￿1VITIEs 2024 2023 Net income for the reporting period (as per the S¢aÉement of Financial Activities) Adjustments for: Depreciation charges Interest received (Increase)Ide¢rease in debtors Increase/(decTease) in creditors 179,726 72,993 28J12 (2.879) (133.786) 68571 30,295 (491) 28,449 (102.245) Net cash provided by operations 139,944 29,001 ANAL YSIS OF CHANGES IN NET FUNDS At 1.8.23 Cash flow At 3J.7.24 Net cash Cash at bank and in hand 215.433 127J12 342,745 215.433 127.312 342,745 Total 215,433 127J12 342,745 The notes fornTr part of these fmancial statements Page 13

FIRST RUNG LIMITED IYOTES TO THE FINANCIAL sTATEME￿rs FOR THE YEAR ENDED 31ST JULY 2024 GENERAL INFORMATION First Rung Limited is a private company limited by guarantee incorp)rated in England and Wales. The regisiered office is 197 - 205 High StreeL Ponders End. Enfield. EN3 4DZ. Fi￿1 Rung Limited is also a registered charity in England and Wales. Charity number is 800614. ACCOUNTING POLICIES Basis of preparing the financial statements The fLnancial statements of the charitable company. which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportin(T Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019)., Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The fmancial statements have been prepared under the historical cost convention. Critical accounting judgements and key sources of estimation Uncertainty In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the catrying amount of assets and liabilities that a￿ not readily apparent from other sources. The estimates and &8sociated assumplions are b&sed on historical experience and other factors that are considered to be relevant. Actual results may differ from these estitnates. The estimates and underlying &ssumptions are reviewed on an ongoing basis. Revisions to accounting estirnates are recognised in the period tn which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both cu￿ent and future periods. There were no critical accounling estimates and judgements made in preparing these fMancial statements. Going concern At the time of approving the fmancial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operntional existence for the foieseeable future. This view I￿S been reinforced by First Rung'5 ability to maintain a positive c&sh balance. without recourse to borrowing. Thi5 Posltion is strengthened by the continuation of our existing ESFA funding contract until July 2024 and recent confirniation that the following year's contract until July 2025 wTrll show sigmificant growth. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is PTobable that the income will be received and the amount can be measured reliably. Expenditure Liabilities are recognised &s expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amounr of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Government grants The company reco￿lS¢S income arising from government grants using the perforn]ance model. Tangible fixed assets and impairment of fixed assets Tangible fixed assets are initially measured at cost and subsequently rne￿ured at Cost, net of depreciation and any impainnent losses. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases: Page 14

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST JULY 2024 ACCOUNTING POLICIES- continued Tangibl¢ fixed assets and impairment of fixed assets Leasehold improvements Plant and machinery Fixtures, fittings and equipment Over the terni of the I￿e 33.3J /0 Straight line 2(W/o Straight line The gain or loss arising on the disposal of an asset Is detern]ined as the difference between the sale proceeds and carrying value of the asset. and is recogni£ed in net incomel(expenditure) for the year. At each reporting end date, the charity reviews the caTryino aniounts of its tangible assets to detem]ine whether there is any indicalion that those assets have suffered an impainnent loss. If any such indication exists. the recoverablc amount ofthc asset is estin)ated in order to delcrniine the cxtenl ofthe impairn)ent loss (if any). Taxation The charity is exempt from corporation tax on its charitable activities. Fuud accounting Unrestricted fi￿dS can be used in accordance with the charitable objectives at ihe discretion of the trustees. Restricted funds can only be used for particul￿ restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are rdised for particular reslricted purposes. Pension costs and other post-retirement benefits 'rhe charitable covnpany operates a defmed contribution pension scheme. Contributions payable to the charilable company's pension scheme are charged io the Siateiiient of Financial Aclivilies in the period to which they relate. Payments in respect of other post-retirement benefits are charged to the Statement of liinancial Activitics in the period to which they relate. Employee benefits The cost of any unused holiday cntiilcmcnl is recognised in the period in which the employee's services are recei￿d. Termination benefits are recognised iminediately as an expense when ihe charity is demonstrably committed lo tenninate the employfflent of an employee or to provide terwnination benefjts. Financial instrllments The charity has elected to apply the provisions of Section I I 'Basic Financial Jv55truments' and Section 12 '0ther Financial Instruments Jssues. of FRS 102 to all of its f￿anCIal iDstrumeDts. Financial instruments are recognised in the charity's balance sheel ivhen the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts preseDl¢d in the financial statenients. when there is a legally enforceable right to set off the recognised amounts and there is an intentiOT] to settle on a nel basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic fmancial assets. which include debtors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using ihe effective interest method unless the arrangement constitutes a fmancing tralisaclion. where the transaction is nieasured ai the Present value of the future receipts discounted at a market rd* of interest. Financial assets classified as receivable within one year are not amortised. Page 15

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATETrIENTS - continued FOR THE YEAR ENDED 31ST JUL Y 2024 ACCOUNTING POLICIES- continued Finaneial instruments Basic financial liabilities Basic financial liabiljties, including creditors are initially recognized al transaction price unless the arrangement constitutes a f￿anCIng transactio￿ where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Flnallcial liabilities classified as payable within one year are not amortised. Debt instruments are subsequentty catyied at amortised cosL using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified &s current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognized initia]ly at trdll5action price and subsequently measured at amortised cost using the effective interest method. INVESTMENT INCOME 2024 2023 Interest receivable 2,879 491 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activity ESFA Study programme and traineeships Apprenticeships Other Main charitable activlties Main charitable activities Main charitable activities 1224,046 291,082 489.582 974,765 191,190 546,697 2,004.710 1,712,652 CHARITABLE ACTIvrrtES COSTS Direct Costs {see note 6) Support costs (see note 7) Tot21s Matn charitable activities Support C05t5 lJ36,564 1,336,564 491,299 491299 I a36￿64 491299 1,827,863 Page 16

FIRST RUNC LIMrrED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST JULY 2024 DIRECT COSTS OF CHARITABLE ACTIvrriES 2024 2023 Staff costs Leamer support costs Training costs and materials Registration fees 1,234,426 5,555 24,676 71,907 1,128,704 4,057 9,295 63,343 1,336,564 1,205,399 SUPPORT COSTS Governance costs Management Tota15 Support costs 479.887 11,412 491,299 Support costs. included in the above. are as follows: 2024 Support costs 2023 activities Sundries Premises costs otrice costs Legal and professional Bank charges Staff expenses Depreciation of tangible and heritage ￿ets Auditors, rcinuneration Auditors, remuneration for non audit work 19 289,811 52,630 6205 464 44,827 30,295 10,500 336,755 63,197 9202 336 42,085 28J12 10,500 912 491399 434.751 NET INCOMEI(F,XPF.NDITURE) Net incomel(exp¢nditure) is stated after chargingl(crediting): 2024 2023 Audilors, remuneration Audilors. remuneration for non audit ivork Depreciation - owned assets 10,500 912 28J12 10,500 30,295 Page 17

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2024 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the ended 31 st July 2024 nor for the year ended 31 st July 2023. Trustees, expenses There were no trustees, expenses paid for the year ended 31 st July 2024 nor for the year ended 3 1st July 2023. io. STAFF COSTS 2024 2023 Wages and salaries Social security costs Other pension costs 1,131,739 80,246 22,441 1,022,359 83,476 22,869 1234,426 1,128,704 The average monthly number of ctnployees during the year was as follows: 2024 30 2023 32 Direct charitable services The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 £60,001- £70.000 £80,001- £90,000 Of the employees whose emoluments exceed £60,000. Two (2023: one) have retirenlent benefits accruing under defLned benefit scheme £529 (2023: £354). Pension contributions relating to those staff earning over £60,000 totalled £6,196 in the Current year (2023: £4,250). The senior management team (consisting of Senior Staff Chief Executive, Deputy CEO and Operational Manager and Head of Centres and Inclusion) received total remuneration of £200,770 (2023: £193,000). Page 18

FIRST RUNG LIMITED NOTES TO THF. FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST JULY 2024 ii. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unreslricted fund Restricted fund Total funds INCOME AND ENDOWMENTS FROM Charitable activities Main charitable activities ,712.652 ,712,652 Investment income 491 491 Total .713,143 ,713,143 EXPENDITURE ON Charitable acttvities Main charitable activities Support costs 1,205.399 434.751 1,205.399 434.751 Total 1.640.150 1.640.150 NET INCOME 72.993 72,993 RECONCILIATION OF FUNDS Total fijnds brougbt forward 219.251 219.251 TOTAL FUNDS CARRIED FORWARD 292,244 292,244 12. TANGIBLE FIXED ASSETS FiJtures and rvtting5 asehold improvements PlaDt and machinery Tota15 COST At 1st August 2023 Additions 236,190 179,056 13223 39,940 2,288 455,186 15,511 At 31st July 2024 236.190 192,279 42228 470.697 DEPRECIATION At I st August 2023 Charge for year 154,035 24,887 178.544 2,455 39JlO 970 371,889 28,312 At J 1st July 2024 178J22 180,999 40280 400,201 NET BOOK VALUE At 3 1st July 2024 57268 11.280 1,948 70,496 At 3 1st July 2023 82,155 512 630 83,297 Page 19

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST JULY 2024 13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trdde debtors Other debtors Prepayments and accNed income 21,030 258,377 102,973 26,656 72,759 149,179 382J80 248,594 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors Social security aThd other taxes Other creditors Accrued expenses 42,129 24,039 180,982 76,501 28,176 22,021 163,935 40,948 323,651 255,080 15. LEASING AGREEMENTS Minimum lease payments under non-cancellable operating leases fall due as follows: 2024 2023 Within one year Between one and five years 137,645 220286 38,874 36,500 357,931 75,374 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2024 Total funds 2023 Total funds Unrestricted fund R￿trIcted fund Fixed assets Current assets Current liabilities 70,496 725,125 (323,651) 70.496 725,125 (323,651) 83,297 464,027 (255,080) 471,970 471,970 292,244 Page 20

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENTS- ¢onlinued FOR THE YEAR ENDED JIST JULY 2024 17. MOVEMENT IN FUNDS Net movement in funds At 1.8.23 At 31.7.24 Unrestricted funds General fvnd 292,244 179,726 471,970 TOTAL FUNDS 292,244 179,726 471,970 Nel movement in funds. included in the above are a5 follows: IncoAning resource5 Resources expended Movement in funds Unrestricted funds General fund 2,007,589 (1.827,863) 179,726 TOTAL FUNDS 2.007.589 (1.827,863) 179,726 Comparatives for movement in funds Net movement in funds At 1.&22 At 31.7.23 Unrestricted funds General fund 219,251 72.993 292.244 TOTAL FUNDS 219.251 72,993 292.244 Comparative net movement in fimd4 included in the aFM>ve are as follows- Incoming resources Resources expended Movement in funds Unrestricted funds General fund .713,143 (1,640,150) 72,993 TOTAL FUNDS ,713,143 (1,640.150) 72.993 Page21

FIRST RUNG LIMITED NOTES TO THE FINANCIAL STATEMENIS- continued FOR THE YEAR ENDED 31ST JULY 2024 18. RELATED PARTY DISCLOSURES There were no related paty transactions for the year ended 3 1st July 2024. Page 22

FtRST RUNG LIMITED DETAILFD STATF.MENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2024 2024 2023 INCOME AND ENDOWMENTS Investmenl Income Interest receivable 2,879 491 Charitable a¢tivAties ESFA Study progranllne and irdineeships ApprentlLeships Other 1.224.046 291,082 489,582 974,765 191,190 546,697 2,004,710 1.712,652 Total incoming resources 2,OlJ7,589 1,713,143 EXPENDITURE Charitable activilies Wages Social security Pensions Learner support costs "I raining costs and n]aterials Registration fecs 1,131,739 80,246 22.441 5,555 24.676 71,907 1,022,359 83.476 22.869 4,057 9.295 63,343 lJ36,564 1,205,399 Support Costs Management Sundries PreLiiises costs o￿lCe costs Legal and prolessional Bank charges Staifcxpeiws Depn of leasehold improvements Planl and machlncry Fixtures and fittings )9 289,811 52,630 6,205 464 44.827 24,886 3,444 1.965 336,755 63.197 9.202 336 42,085 24.887 2,455 970 479,887 424251 Governance costs Auditors. remuneration Auditors, remuneration for non audit work 10.500 912 10.500 11,412 10.500 Total resources expended 1.827.863 1.640.150 Net in¢ome 179,726 72,993 This page does not fonn part of the statutory fll)ancial statemeiits Page 23