2021-03-31-accounts - Step By Step Partnership Limited

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

For the year ended 31 March 2021

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

CONTENTS
	Page
Legal and administrative information	1
Directors' report	3
Independent auditor’s report	14
Statement of financial activities	19
Balance sheet	20
Statement of cash flows	21
Notes to the financial statements	22

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 March 2021

Directors

Mr K Gathergood, Chairman Mr S Mylvaganam, Treasurer Mr R James Mr J Devlin Mr A Auteri Mrs C Thomas Sir J Portal Mrs C Skerry – appointed 04.02.20. Mr J Mowat Mr A Mitchell Mrs L Barnes – appointed 18.06.20.

Company Registration Number

2431825

Charity Registration Number

900308

Address & Registered Office

36 Crimea Road, Aldershot, Hampshire, GU11 1UD

Company Secretary

Mr A Chapman – resigned 18.07.20. Mrs L Barnes – appointed 18.07.20.

Chief Executive

Mrs D Moreton – appointed 01.07.20.

Head of Programme Management

Mr B Harman – appointed 01.07.20, resigned 28.02.21.

Head of Fundraising

Mrs A Chiu

Head of Income Generation

Mrs N Goom – appointed 1.10.20

HR Manager

Mrs R Palmer – Appointed 01.09.20.

Head of Finance

Mrs M Bareham

Supported Lodgings Manager

Ms K Headen – appointed 01.06.20.

Regional Foyer Manager & Safeguarding Lead

Miss M Partridge – appointed 01.06.20.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 March 2021

Auditor

Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

Bankers

CAF Bank Limited, 25 Kings Hill Avenue, West Malling, Kent, ME19 4TA

Solicitors

Moore Barlow, Concord House, 165 Church St East, Woking GU21 6HJ

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

The Directors of the Company for the purposes of the Companies Act, who are also Trustees of the Charity for the purposes of the Charities Act, submit their annual report and the financial statements for Step by Step Partnership Limited (the Charity) for the year ended 31 March 2021.The Directors confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity's governing documents and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities”.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The Charity was incorporated under the Companies Act 1985 on 12 October 1989 and is limited by guarantee. It has been registered as a charity since 25 January 1990. As a charitable company limited by guarantee, operations are governed by the Charity's Memorandum and Articles of Association.

Directors and Method of Appointment

The Directors of the Charity, who are also its Trustees, are elected at an AGM (or may be appointed during the year by the Board with election at the next AGM). The candidature of people with skills, experience and/or interests relevant to the Charity's activities is encouraged through advertising publicly, employing specialist recruitment agencies and soliciting local organisations. They may serve for up to three years before re-election.

Organisation and Decision Making

The Governance structure is made up of a Board and two types of subcommittees which are known as a Board Executive Committee (BEC) and Board Subcommittees (BS). The BEC is based on delegated decision-making powers handed down from the main Board whilst BS’s are based on advice and recommendations being requested by and submitted to the Board.

Board members are appointed to fulfil the terms of reference of specific roles that the Board wishes to add to its Board team through a process managed by a Board Appointments Subcommittee. The Chief Executive is not a director but a permanent non-voting member of the Board with the right to attend all Board Meetings unless a conflict of interest exists. The Board meets every quarter. An induction procedure is used for all new members of the Board and includes learning about the history, ethos and day-to-day operation of the Charity as well as outlining their responsibilities, conduct at meetings and relations with staff. The induction is usually carried out by the Chairman supported by other Directors and the Chief Executive. During the pandemic, no Director presence on the Charity’s premises has been possible and hence limited some aspects of the induction process. Directors are encouraged to attend training events relevant to their roles or assigned interests within the Charity. The Charity operates in a consistent way by following the policies set out and agreed by the Board, supported and implemented by the Chief Executive, Leadership Team and staff.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

Day-to-day operational responsibility rests with the Chief Executive, who is responsible for all staff, Supported Lodging Host families and volunteers who provide valuable support to young people.

Remuneration Policy

To secure the standards of its work and to provide young people with excellent services Step by Step (SbS) needs to attract and retain high quality employees. A number of its services benefit from very qualified and competent staff and from a continuity of care that demands a continuity of service. Consequently, SbS’s salary policy is to reward its talented people fairly, equitably, and consistently in accordance with their value to the organisation and in order to ensure their motivation and engagement.

The Charity employs pay scales to administer its salary programme in a consistent and transparent manner. However, it also accesses relevant salary survey data to confirm that all the staff at SbS are compensated equitably and fairly with regard to both their pay and benefits. The Board of SbS therefore requires that a salary and benefits survey be conducted at least every three years and, where wage inflation or other business reasons require, more regularly. The organisations and jobs to be surveyed are agreed by the Audit and Remuneration Sub Committee (ARSC), prior to the commencement of the survey. It is the general principle of the Charity that the salaries and benefits, on average, be positioned competitively in the local marketplace at a level to be determined by the ARSC.

As length of service increases it is anticipated that staff will move through their salary scale until they reach the maximum level of their individual scale. It is fundamental to the salary and benefits programme of the Charity that an increase will only be permitted if the individual has achieved a satisfactory level of performance, following the annual appraisal and development process.

Key personnel remuneration policy is decided by the ARSC and approved by the Board. With regard to the CEO’s salary and benefits review, the Chairperson conducts an annual appraisal, utilising feedback from the Board members. The ARSC will then use this appraisal to develop a salary and benefits recommendation in line with the overall salary programme of the Charity, which is put to the Board for approval. In the light of current best practice, it is not anticipated that the CEO’s salary will be more than five times greater than the lowest paid full time employee of the Charity.

Risks

The Charity operates a Risk Management process that meets the requirements of the Charity Commission. The significant risks to which the Charity could be exposed are:

a. Disruption through responding to the global COVID-19 pandemic.
b. The welfare and safety of the young people accessing our services, particularly where they may be engaging in risk taking behaviours.
c. Loss of income due to an inability to deliver fundraising income, contract losses or the impact of welfare reform.
Priority is given to managing and mitigating these potential risks effectively. Key mitigating actions to manage these risks have been implemented in the year. These include:
a. COVID-19 – we established a COVID-19 Response Steering Group and worked with the Local Authorities in the areas we operate to minimise the impact on the young people we support. We have also been delighted with the response to our

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

COVID-19 Emergency Funding Appeal. No member of staff has needed to be furloughed.

b. Safeguarding – we reviewed our safeguarding practice and governance during the last 12 months, including an independent safeguarding audit that reported favourably on our approach and from which we could make several further improvements.
c. Loss of income – the long-term outlook naturally has a degree of uncertainty due to the economic impact of COVID-19 however we have recently been successful in retendering for key services, started new Supported Lodgings services in Swindon and Wiltshire, and exceeded our fundraising income targets in 2020-2021.

Relationships with Other Organisations

The Charity works with many organisations including local authorities, voluntary sector organisations, Children’s Services, Youth Support Services, the National Health Service (NHS) the Police and the Probation Service and Offender Management Service, all of whom refer young people to the Charity and with whom we seek to further their interests. The Charity works in partnership with Vivid Housing Association, Sovereign Housing Association and London & Quadrant Housing Association to accommodate vulnerable young people.

Funders are another group of stakeholders who have a continuing interest in the Charity's performance and its use of resources. Major funders include Local Authorities, charitable trusts, corporate funders and foundations and other charities. We are also supported by voluntary donations - mainly from individuals, local churches, schools, and organisations such as Rotary, Round Table and Lions. To all of them, the Trustees give their thanks on behalf of the most important stakeholders, the young people and their families that we serve.

OBJECTIVES AND ACTIVITIES

Objectives

As stated in the Memorandum of Association, the Charity's objective is to relieve the need of the young homeless, unemployed and other people by reason of their condition of hardship or distress, by the provision of supported housing, education, training and support.

Mission

The mission of the Charity is empowering young people and preventing homelessness. This is achieved by providing accommodation and support services. These offer a number of different programmes all designed to progress people towards independence. At the present time young people supported by the Charity are aged between 10 and 26 years and mainly fall into the 16-21 age group.

By providing a range of services, including accommodation and early intervention and prevention services, our services are tailored to the needs of the young people accessing them. We work with young people to overcome their barriers and achieve their aspirations. Our services include Foyer accommodation, supported lodgings accommodation, counselling services, advice and guidance services.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

Public Benefit

The Trustees confirm that they have complied with the guidance of the Charities Act 2011 to have due regard to the public benefit guidance in determining the activities undertaken by the Charity.

The Charity Commission, in its “Charities and Public Benefit” Guidance, states that there are two key principles to be met in order to show that an organisation’s aims are for the public benefit: firstly, there must be an identifiable benefit and, secondly, that the benefit must be to the public or a section of the public.

The Trustees are satisfied that both these key principles are met by the operation and achievements of the Charity which during the year under review has worked directly with 1,452 young people and family members which is an increase over the 2019/20 year of 243 young people and has educated a further 222 young people via school and community talks, a total beneficiary number of 1,674. Several of our key achievements during 2020/21 are detailed on page 7 under ‘Achievements and Performance’.

In the year to 31 March 2021, 42.8% of young people were male, 56.8% female and 0.4% identified as non-binary; 81% of young people were teenagers. Residential Foyer accommodation for 46 homeless young people aged 16-21 (or to 25 under certain circumstances) was available at any one time at the end of the year (86 young people resident during the year). In addition, Supported Lodgings accommodation, with carefully vetted local families, was available to another 221 young people at any one time at the end of the year (302 young people resident during the year).

It may be surprising that homelessness is a problem in prosperous counties like Hampshire, Surrey, West Berkshire, and Dorset but demand for places consistently remains high. A noticeable shift in the year is that young people are tending to favour Supported Lodgings accommodation rather than Residential Foyer accommodation. However, the primary criteria is what best suits the needs of the young person. Most young people are in a downward spiral when they arrive with 59% unemployed but 95% of young people positively progressed or stabilised their circumstances. The key point about the 1125 age group is that they are young enough and still adaptable enough to be helped. When they do succeed, the benefit to both them and the local community is enormous.

The Charity’s aim is to help young people accept and deal with their problems, turn their lives around and become independent and successful members of the community who are able to realise their aspirations. This is done by a combination of individual advice and motivation, insistence on clear standards of acceptable behaviour and the provision of a range of training schemes covering:

basic skills to ensure that young people can look after themselves properly - cooking, hygiene, laundry etc.
health and fitness - registration with the NHS, physical and emotional health, teenage pregnancy and sexual health, drug and alcohol misuse, motivation.
understanding finance - dealing with debts and gambling and learning to budget and to successfully maintain independence on a low income.
education and employment - getting into work or training is very important part of gaining independence.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

community contribution - controlling anger, ceasing offending, and taking part in volunteering schemes organised by the Charity to encourage community involvement.
mental health and wellbeing - Positive mental health and wellbeing help to create a foundation for growth and development. It is important we recognise and address any barriers such as mental health and ensure young people can access the support they need.

The Charity provides a unique combination of services, to support young people to reach their goals. The Trustees believe that this, together with the achievements outlined above, provide considerable evidence of the significant public benefit the Charity achieves.

ACHIEVEMENTS AND PERFORMANCE

COVID 19 Pandemic

The Charity has stayed open and fully operational through the 2020/21 year including throughout the three lockdown periods. The Charity’s employees, Host families and volunteers have shown amazing dedication, commitment, and flexibility during the period. Inevitably many services have had to be re-engineered to be able to operate remotely through online services rather than face-to-face. This is naturally less than ideal but means we have been able to sustain the objectives of our mission and look forward to safely progressing back to more normal operation in the 21/22 year.

Accommodation Services: At the end of the financial year (March 2021) the Charity was providing up to 267 accommodation beds for young people at any one time, up from 256 at March 2020.

The Charity provides Stage 1 accommodation support to those who meet the referral criteria of the accommodation. This includes 16+ looked after young People with High Intensive Support needs and is based in Aldershot, Basingstoke, and Havant.

Supported Independence Flats are based within the Aldershot Foyer and provide accommodation for young people, who are not otherwise entitled to financial support with housing. Within these flats young people are able to live more independently alongside other young people and are supported in step sessions working on their tailored support plans with a dedicated support worker. Supported Independence Flats are currently funded by Children in Need's Inspiring Futures programme.

Referrals are from several agencies with whom the Charity has a relationship, as well as from young people themselves. This year the Charity accommodated 41% of all referrals made to its accommodation services, receiving 121 referrals and making 50 admissions. During the course of the year 86 young people were accommodated, with up to 46 in residence in our accommodation services at any one time (year-end position). Positive progression or stabilisation was achieved by 95% of young people in the accommodation services overall.

We commissioned the Supported Independence Flats in December 2020 and so far, have had ten young people stay with a progression rate of 100%, currently seven young people remain in the flats and three young people have positively moved on.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

In addition, the charity provides Supported Lodgings family placements for 221 young people at any one time across five counties (year-end position) with 302 residents during the year, and 95% of young people achieving positive progress or stabilisation.

Training Services: Our training programmes are now delivered by our accommodation teams rather than by a separate team. The accommodation team provide a range of sessions targeted at enhancing the key life skills of young people and supporting them into employment and educational opportunities.

Young people have accessed education, employment, or training (EET) that were not previously engaged in any of these. Due to the success, we have had engaging young people in EET we secured two funding pots for EET progressions and EET Materials from End Youth Homelessness in December 2020 and had already achieved target, 12 young people accessing EET, by February 2021 and are now seeking further funding.

Youth AIMS: Youth AIMS is a drop-in advice and guidance service operating in Aldershot supporting young people across North Hampshire. The service also administers a rent deposit fund on behalf of Rushmoor Borough Council. The service delivered advice, guidance, information and advocacy to 96 young people in the year. Youth AIMS incorporates Step Chat which is a real-time messaging system on our web site through which young people in particular can communicate with our staff online. Our Youth AIMS team conducted 427 chat sessions in the year, an increase of 234 since the previous year.

Counselling: As a specialist provider of youth counselling for young people aged 11 – 24, and against a backdrop of rising youth mental ill health we were pleased to be able to support 593 young people in the year who attended counselling sessions.

Fundraising: The Charity is aware of the Charities (Protection and Social Investment) Act 2016 and the Trustees support the aims of this legislation. The majority of the Charity's income comes from other charitable bodies and local authorities. The Charity undertakes very little direct fundraising activity involving individual donors. Examples include our online giving page, Open Doors appeal and events which are promoted generally through communications, rather than targeting specific individuals. The Charity considers the origin of unsolicited donations and legacies. The Charity does not share or purchase any donor data with or from third parties. During the year ended 31 March 2021, the charity did engage with an independent professional fundraiser who went on to become an employee covering the Head of Fundraising’s Maternity Leave. During the year ended 31 March 2021 the Charity did not receive any complaints in relation to fundraising or raise any matter with regulators.

Public Relations: The Charity has continued to receive regular positive media coverage including on local radio and in the press. No negative publicity has been received.

Young People’s Initiatives/Participation: The Charity has worked to maximise young people’s involvement in all aspects of service provision and the ethos of the Charity places emphasis on ensuring the young peoples’ interests are at the heart of service delivery. The organisation takes an asset-based approach to working with young people, meaning very simply, that the focus is on their strengths and their talents, optimising these qualities in order to support young people to realise their potential and fulfil their aspirations. This

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

approach encourages responsibility and accountability, and young people are able to plan and implement community-based projects, to support delivery of training sessions, and mentor their peers via the Young Persons Advisory Group (YPAG).

Volunteers: The Charity has again been successful in increasing the number of volunteers providing valuable support to the services. Volunteers contribute to areas such as premises maintenance and development, community fundraising, finance and administration, support of a database and recording system, as well as helping to deliver training sessions and the Charity’s drop in advice and guidance service. Their various and significant contributions are greatly appreciated, and the Charity aims to increase the number of volunteers supporting our staff team further in the coming year.

Outcomes Monitoring: The Outcomes Star system, which is a nationally recognised formal outcome monitoring system, has been used with continuing positive results. Credible outcome information is critical in assessing the effectiveness of our services to progress our young people and we continue to maintain accurate and comprehensive data records through the Inform young people record management system.

Governance: An annual self- assessment process to review Board performance is a wellestablished practice and provides a productive vehicle for continuous governance improvement. Following the restructuring and refocusing of the charity in 2017/18 a key activity has been the refreshing of the Board to guide the next stage of its development. Over the last two years seven new Trustee Director appointments have been made; the Board currently has 11 Trustee/Directors. Each Trustee/Director has been recruited to a specific role and a competency table is maintained to reflect the overall capability and skill set of the Board and scored to highlight any exposures.

The Company Secretary tracks changes in both Company Law and Charity Commission regulations and advises the Board accordingly. Necessary and appropriate policies and associated procedures are in place separated into two lists. List A being those that require Board approval and List B being those that do not and are solely within the remit of the CEO and their Leadership Team. A clear statement is maintained on the powers the Board has delegated into the organisation with clear limits on those powers and who is empowered to execute them.

Standard items of report to every Board meeting includes – Declaration of Conflicts of Interest, CEO report, Treasurer’s report, Serious Incidents report, Safeguarding report, Health & Safety report, Property Maintenance report, and GDPR report. Every other Board meeting considers the Risk Register.

Key Achievements: The Charity is proud that despite a challenging environment for UK charities we have remained focused on our mission and the numbers of young people supported has been maintained. Some of our key achievements in 2020/21 include:

A total of 1,674 young people were supported by Step by Step in 2020/21.
1,452 young people were directly supported in services across Hampshire, Surrey, West Berkshire, Dorset, West Sussex Wiltshire, and Swindon.
Total bed spaces available grew by 4.3% between March 2020 and March 2021.
The number of counselling sessions delivered to young people grew by 15.3% to 2,199 sessions in the year.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

We established a new Supported Lodgings Service in Wiltshire and secured the Swindon Supported Lodgings contract for a further 3 years.
Our Supported Lodgings service continued to grow, and a total of 302 young people accessed this service compared with 277 the previous year.
Our counselling service continued to grow, and a total of 593 young people accessed this service compared to 512 the previous year.
We exceeded our Fundraising income targets for the year and had a great response to our COVID-19 emergency funding appeal.

FINANCIAL REVIEW FOR THE YEAR

The Statement of Financial Activities is set out on page 19 and shows the net movement in funds for the year.

During the year a surplus of £424,967 was recorded.

We continue to review our income and expenditure on a monthly basis. We seek new contracts and utilise our fundraising resources to increase income. We also continuously review our cost base to ensure that our resources are applied efficiently and effectively to meet our objectives.

Reserves Policy

The Charity's policy is to establish and maintain a level of reserves which ensures there are adequate funds to meet all current and known liabilities as well as committed development expenditure. In practice the Directors regularly review reserves to ensure that they are sufficient to cover a minimum of:

➢ Six to nine months cover of committed income less budgeted expenditure for the next 12 months. Committed income for the next 12 months is £2.823m; budgeted expenditure against the income streams is £3.547m. Six to nine months’ cover is therefore between £362k and £543k
➢ Proposed development and committed capital expenditure for at least the next 12 months of £567k.

Total Reserves as at 31[st] March 2021 were £1,298,066 comprising of: Designated funds of £567,240 and unrestricted funds of £730,826.

After allowing for restricted and designated funds, the free reserves were £730,826 at the year end. Free reserves are funds that have not been restricted by the funder or designated by the Charity for a specific service or investment. Free reserves are above the reserves requirement as stated in the Reserves Policy agreed by the Trustees, which the Trustees feel is appropriate at the current time.

Going Concern

In determining that the Charity continues to be a going concern for the purposes of preparing these financial statements, the Trustees have considered the following:

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

The financial performance of the Charity since the 31 March 2021 and current balance sheet position
2021/22 Budgets and forecasts of performance of the charity to 31st July 2022, including cash flow
That major contracts will be either re-tendered or extended in the year to 31 March 2022, and we have considered the consequences of renewing or extending those contracts at a different rate, or not renewing the contracts

Through this review, the Trustees have assessed that the Charity continues to be a going concern and that there are no material uncertainties in relation to being a going concern.

Investment Policy

All investment decisions are taken in the best interests of the Charity achieving its charitable purpose and follow the Charity Commission’s guidance on investment matters as stated in their publication “Charities and Investment Matters: a guide for Trustees”.

Financial Investment

The purpose of financial investment is to yield the best financial return within the level of risk considered to be acceptable. All such investments by the Charity are subject to risk assessment as part of the formulation of financial investment cases. These may vary from very low risk investments e.g. cash reserves investment to support the Reserves Policy invested under FSCS guarantees, through to relatively high risk assessments e.g. funding new services with the objective of creating new income streams and surplus to support the charitable purpose.

PLANS FOR THE YEAR AHEAD

Over the last 2 years (2019/20 & 2020/21), since the restructuring in the 2018/19 year, the Charity has focused on building foundations from which in can grow and develop in a sustainable way. This, in addition to achieving our Mission and generating excellent outcomes for young people, has now been established.

Due to the uncertain times that are created by the COVID 19 pandemic the Charity will be cautiously expanding its range of services and geographic coverage in the 21/22 year. This strategy started towards the end of the 20/21 year with the introduction of the Supported Independence Flats. Plans are also at an advanced stage to offer a new form of social enterprise-based accommodation and support service and expansion to our counselling services. The current intention is that these will be launched in quarter one of the 21/22 year.

Recognising the increased levels of need and trauma that young people are facing today, The Charity plans to broaden our offering of Wellbeing services. We intend to broaden the reach of our Youth AIM Service, introduce Wellbeing Workers in Aldershot and Basingstoke, and create the post of Recovery Worker to support those with substance misuse issues.

Investment in improving the efficiency and productivity of the Charity’s operation will continue and be increased in the 21/22 year. This includes following through to full implementation of a new HR system, upgrading our financial management system to Sage 200, and upgrading our fund-raising support system to a new CRM system. Each such

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

investment is subject to business and investment planning to make sure the improvement in operational efficiency and cost savings can be achieved.

The Charity is mindful that the balance between contract income for services commissioned by Councils and Public Authorities and those that need to be supported by other income streams will continue to change. The former continues to reduce under the government’s austerity initiatives and demands that the Charity steps up its efforts to generate other income. The role of Head of Income Generation has been created to focus on addressing this change in balance. The 20/21 year generated the largest fund-raised income in the history of the Charity. The Charity’s ability to generate and sustain the financing of non-public sector contract income is critical to sustaining the Mission of the charity. For example, sustaining the provision of Supported Independence Flats has such a dependency. The Charity is fortunate in that it has a Leadership Team and Board that is not short of ideas and enthusiasm to rise to this challenge. The re-establishment of the Charity onto sound foundations over the last 2 years supports the achievement of this strategy.

The Board is mindful that the continuing pandemic can cause strategic plans to be reviewed and changed at short notice. All decisions made by the Board are subject to the test that they need to be taken in the best interests of the vulnerable and disadvantaged young people we seek to help and support; providing they are financially sustainable. Through such an approach the Board remains committed to delivering its Mission and staying financially sustainable.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also Directors of Step by Step Partnership Limited for the purposes of company law) are responsible for preparing the Directors' Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements, for each financial year, which give a true and fair view of the state of affairs of the 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 these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently.
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent.
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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 adequate accounting records that disclose, with reasonable accuracy, at any time, the financial position of the Charitable Company and

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

DIRECTORS' REPORT For the year ended 31 March 2021

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

there is no relevant audit information of which the Charitable Company's Auditor is unaware; and
the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Auditor is aware of that information.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

APPROVAL

This report was approved by the Board on 30 July 2021 and signed on its behalf by

Keith Gathergood Chair

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT to the members of Step By Step Partnership Ltd

Opinion

We have audited the financial statements of Step by Step Partnership Limited (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Give a true and fair view of the state of the charitable company’s affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
Have been prepared in accordance with the requirements of the Companies Act 2006

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT to the members of Step By Step Partnership Ltd

Other Information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The trustees’ annual report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to 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 visited 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 information and explanations we require for our audit; or
The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT to the members of Step By Step Partnership Ltd

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We enquired of management and the audit and risk committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT to the members of Step By Step Partnership Ltd

We inspected the minutes of meetings of those charged with governance.
We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
We reviewed any reports made to regulators.
We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose.

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT to the members of Step By Step Partnership Ltd

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor) 19 August 2021 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Step By Step Partnership Ltd | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 2431825 | Charity No. 900308

Step by Step Partnership Ltd

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

General Designated £ £ 353,208 - 2,616,490 - 175,155 - - - 54 - 3,144,907 - 198,014 - 2,268,399 - 224,526 - 17,473 9,094 2,708,412 9,094 436,495 (9,094) (104,528) 120,864 331,967 111,770 331,967 111,770 398,859 455,470 730,826 567,240 Unrestricted	General Designated £ £ 353,208 - 2,616,490 - 175,155 - - - 54 - 3,144,907 - 198,014 - 2,268,399 - 224,526 - 17,473 9,094 2,708,412 9,094 436,495 (9,094) (104,528) 120,864 331,967 111,770 331,967 111,770 398,859 455,470 730,826 567,240 Unrestricted	Restricted £ - 102,015 37,552 29,020 -	General Designated £ £ 246,242 - - 2,787,128 - 265,130 - - - 712 - 3,299,212 - 152,841 - 2,360,455 52,674 257,451 - 28,480 5,928 2,799,227 58,602 499,985 (58,602) (380,283) 380,283 119,702 321,681 119,702 321,681 279,157 133,789 398,859 455,470 Unrestricted	General Designated £ £ 246,242 - - 2,787,128 - 265,130 - - - 712 - 3,299,212 - 152,841 - 2,360,455 52,674 257,451 - 28,480 5,928 2,799,227 58,602 499,985 (58,602) (380,283) 380,283 119,702 321,681 119,702 321,681 279,157 133,789 398,859 455,470 Unrestricted
3,144,907	-	168,587	3,299,212	-
198,014 2,268,399 224,526 17,473	- - - 9,094	- 122,583 39,774 8,664	152,841 2,360,455 257,451 28,480	- 52,674 - 5,928
2,708,412	9,094	171,021	2,799,227	58,602
436,495 (104,528)	(9,094) 120,864	(2,434) (16,336)	499,985 (380,283)	(58,602) 380,283
331,967	111,770	(18,770)	119,702	321,681
331,967 398,859	111,770 455,470	(18,770) 18,770	119,702 279,157	321,681 133,789
730,826	567,240	-	398,859	455,470

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18a to the financial statements.

Step by Step Partnership Ltd

Company no. 2431825

Balance sheet

As at 31 March 2021

Note Fixed assets: 11 Current assets: 12 Liabilities: 13 18 Total unrestricted funds Restricted income funds Unrestricted income funds: Designated funds The funds of the charity: Total net assets Debtors Creditors: amounts falling due within one year Net current assets Cash at bank and in hand Tangible assets General funds Total charity funds	£ 165,447 1,676,168	2021 £ £ 51,240 51,240 297,462 972,952 1,270,414 (441,168) 1,246,826 1,298,066 - 455,470 398,859 1,298,066 1,298,066	2020 £ 43,853
			43,853 829,246
	1,841,615 (594,789)
	567,240 730,826
			873,099
			18,770 854,329

			873,099

Approved by the trustees on 30 July 2021 and signed on their behalf by

S Mylvaganam K Gathergood Treasurer Director Chair

Step by Step Partnership Ltd

Statement of cash flows

For the year ended 31 March 2021

Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Dividends, interest and rent from investments
(Profit)/loss on the disposal of fixed assets
(Increase)/decrease in debtors
Increase / (Decrease) in creditors
Net cash provided by operating activities
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash (used in) investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets

£
£
£
£
424,967
448,378
21,913
14,297
(54)
(712)
1,691
-
132,015
(52,455)
153,621
90,110
734,153
499,618
54
712
(30,991)
(44,580)
(30,937)
(43,868)
703,216
455,750
972,952
517,202
1,676,168
972,952
2021
2020

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Statutory information

Step by Step Partnership Ltd is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is 36 Crimea Road, Aldershot, Hampshire, GU11 1UD.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

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

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

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

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)
g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds relate to the costs incurred by the charity in seeking voluntary contributions, as well as the cost of any activities with a fundraising purpose
Expenditure on charitable activities includes the costs of delivering accommodation and support services, welfare, guidance and counselling actvities undertaken to further the purposes of the charity and their associated support costs
Other expenditure represents those items not falling into any other heading

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

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on the amount of support utilised by each service.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

	Supported Accommodation	59%
	Counselling & Support	21%
	Cost of raising funds	10%
	Growth & Development	8%
	Governance costs	2%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

IT and computer equipment
Fixtures and fittings
20% straight line 33% straight line

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

m) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
p) Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

r) Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the Scheme in respect of the year.

2 Income from donations and legacies

Churches Secular organisations Individuals Legacies Events Other	Unrestricted £ 9,890 200,805 118,503 - 23,880 130	£ - - - - - - Restricted	2021 Total £ 9,890 200,805 118,503 - 23,880 130	Unrestricted £ 11,981 121,221 70,157 15,274 24,461 3,148	2020 Total £ £ - 11,981 5,531 126,752 - 70,157 - 15,274 - 24,461 - 3,148 5,531 251,773 Restricted
	353,208	-	353,208	246,242

3 Income from charitable activities

Accommodation Counselling & support Total Development Projects	Unrestricted £ 2,616,490 175,155 -	£ 102,015 37,552 29,020 Restricted	2021 Total £ 2,718,505 212,707 29,020	Unrestricted £ 2,787,128 265,130 -	2020 Total £ £ 16,387 2,803,515 68,426 333,556 - - 84,813 3,137,071 Restricted
	2,791,645	168,587	2,960,232	3,052,258

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

4 Income from charitable activites by funder

Unrestricted £ 47,473 -	£ 168,587 - Restricted	2021 Total £ 216,060 -	Unrestricted £ 44,992 29,538
47,473 2,661,353 82,819 -	168,587 - - -	216,060 2,661,353 82,819 -	74,530 2,869,217 106,219 2,292
2,744,172	-	2,744,172	2,977,728
2,791,645	168,587	2,960,232	3,052,258

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

5a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 7) Direct Costs Support - Other staff costs Support - Administrative running costs Support - Building maintenance costs Support - Marketing costs Support - Legal & Professional Fees Support - Misc Support costs Governance costs Total expenditure 2021	Raising funds £ 108,044 37,386 - - - - - -	Accommodation £ 913,297 1,167,897 - - - - - -	Counselling & Support £ 97,065 54,906 - - - - - -	Growth & Development £ - - - - - - - -	Governance costs £ 46,799 13,289 - - - - - -	Support costs £ 349,524 - 12,903 34,878 5,434 1,429 42,230 3,446	2021 Total 2020 Total £ £ 1,514,729 1,536,498 1,273,478 1,252,412 12,903 49,510 34,878 30,706 5,434 5,283 1,429 2,745 42,230 63,919 3,446 105 2,888,527 2,941,178 - - - - 2,888,527
	145,430 46,097 6,487	2,081,194 263,759 46,029	151,971 95,771 16,558	- 35,231 -	60,088 8,986 (69,074)	449,844 (449,844) -
	198,014	2,390,982	264,300	35,231	-	-

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

5b Analysis of expenditure (prior year)

Charitable activities

Staff costs (Note 7) Direct Costs Other staff costs Administrative running costs Building maintenance costs Marketing costs Legal & Professional Fees Misc Support costs Governance costs Total expenditure 2020	Raising funds £ 95,606 30,595 - - - - - -	Accomodation £ 937,486 1,138,717 - - - - - -	Counselling & support £ 145,146 71,940 - - - - - -	Growth & development £ - - - - - - - -	Governance costs £ 46,863 11,160 - - - - - -	Support costs 2020 Total £ £ 311,397 1,536,498 - 1,252,412 49,510 49,510 30,706 30,706 5,283 5,283 2,745 2,745 63,919 63,919 105 105 463,665 2,941,178 (463,665) - - - - 2,941,178
	126,201 21,122 5,518	2,076,203 312,864 45,950	217,086 84,789 13,757	- 37,688 -	58,023 7,202 (65,225)
	152,841	2,435,017	315,632	37,688	-

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

6 Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
	2021	2020
	£	£
Depreciation	21,913	14,297
Loss on disposal of fixed assets	1,691	-
Operating lease rentals payable:
Property	30,766	30,766
Other	1,536	1,536
Auditor's remuneration (excluding VAT):
Audit	11,075	9,300

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Salaries and wages Redundancy and termination costs Social security costs Employer’s contribution to defined contribution pension schemes	2021 2020 £ £ 1,330,266 1,380,220 38,342 4,725 108,329 110,585 37,792 40,968 1,514,729 1,536,498

The redundancy and termination costs were settled and paid at the balance sheet date.

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

		2021	2020
		No.	No.
£60,000	- £69,999	-	1
£70,000	- £79,999	1	-

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £407,094 (2020: £292,416).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £252 (2020: £42) incurred by 1 (2020: 2) members relating to attendance at meetings of the trustees.

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 65 (2020: 81).

Staff are split across the activities of the charity as follows (full time equivalent basis):

Governance, Management and Admin Accommodation and other service staff Fundraising	2021 2020 No. No. 7.2 7.3 4.9 4.8 35.5 39.1 47.6 51.2

9 Related party transactions

During the year no Directors received benefits in kind (2020: Nil).

During the year no Directors received consultancy fees (2020: Nil).

During the year one Director received reimbursements for expenses of £252 (2020: £42).

During the year four Directors donated £805 to the charity (2020: £1,710).

There were no further related party transactions during the year (2020: Nil).

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

11 Tangible fixed assets

Tangible fixed assets
Cost At the start of the year Additions in year Disposals in year Net book value At the end of the year At the end of the year At the start of the year At the start of the year Charge for the year Depreciation Eliminated on disposal At the end of the year	Furniture, fittings & IT equipment £ 209,165 30,991 (53,373)	Total £ 209,165 30,991 (53,373)
	186,783	186,783
	165,312 21,913 (51,682)	165,312 21,913 (51,682)
	135,543	135,543
	51,240	51,240
	43,853	43,853

All of the above assets are used for charitable purposes.

12 Debtors

Prepayments Trade debtors Other debtors	2021 2020 £ £ 118,496 212,434 9,103 37,213 37,848 47,815 165,447 297,462

13 Creditors: amounts falling due within one year

Taxation and social security Accruals Deferred income (note 14) Trade creditors Other creditors	2021 2020 £ £ 145,769 139,350 27,259 29,081 11,832 7,605 36,457 72,306 373,472 192,826 594,789 441,168

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

14 Deferred income

Deferred income comprises of multi-year grant funding and contract income received in advance.

Balance at the beginning of the year Amount released to income in the year Amount deferred in the year Balance at the end of the year	2021 2020 £ £ 192,826 107,289 (192,826) (107,289) 373,472 192,826 373,472 192,826

15 Pension scheme

The charity operates a Defined Contribution Scheme. Amounts paid into the scheme were £37,792 (2020: £40,968). Amounts outstanding at the end of the year were £8,115 (2020 £4,091).

16 Financial instruments

Financial Assets measured at amortised cost (a) Financial liabilities measured at amortised cost (b) Cash at bank	2021 2020 £ £ 1,676,168 972,952 127,599 249,648 (583,866) (412,087) 1,219,901 810,513

a) Financial assets measured at amortised cost include: trade debtors, other debtors and accrued income. Impairment losses charged to financial assets measured as amortised cost in the year amounted to £7,531 (2020: £9,999)
b) Financial liabilities measured at amortised cost include: trade creditors, other creditors, accruals and deferred income.

17a Analysis of net assets between funds (current year)

Net current assets Creditors due within one year Net assets at 31 March 2021 Tangible fixed assets	General unrestricted £ - 1,325,615 (594,789)	Designated £ 51,241 515,999 -	Restricted Total funds £ £ - 51,241 - 1,841,614 - (594,789) - 1,298,066
	730,826	567,240

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

17b Analysis of net assets between funds (prior year)

At 1 April 2020 £ 4,426 8,294 6,050 - -	General unrestricted £ - 796,174 (441,168)	Designated £ 43,853 455,470 -	Restricted £ - 18,770 -	Total funds £ 43,853 1,270,414 (441,168)
	355,006	499,323	18,770	873,099
	Income & gains £ 81,614 31,479 10,094 20,400 25,000	Expenditure & losses £ (86,040) (39,773) (16,144) (20,400) (8,664)	Transfers £ - - - - (16,336)	At 31 March 2021 £ - - - - -
18,770	168,587	(171,021)	(16,336)	-
61,617 350,000 43,853	- - -	- (9,094) -	3,383 110,094 7,387	65,000 451,000 51,240
455,470	-	(9,094)	120,864	567,240
398,859	3,144,907	(2,708,412)	(104,528)	730,826
854,329	3,144,907	(2,717,506)	16,336	1,298,066
873,099	3,313,494	(2,888,527)	-	1,298,066

The narrative to explain the purpose of each fund is given at the foot of the note below.

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

18b Movements in funds (prior year)

At 1 April 2019 £ - 6,676 5,099 - -	Income & gains £ 19,638 - 54,526 12,900 3,280	Expenditure & losses £ (15,212) (6,676) (51,331) (6,850) (3,280)	Transfers £ - - - - -	At 31 March 2020 £ 4,426 - 8,294 6,050 -
11,775	90,344	(83,349)	-	18,770
67,545 52,674 - 13,570	- - - -	(5,928) (52,674) - -	- - 350,000 30,283	61,617 - 350,000 43,853
133,789	-	(58,602)	380,283	455,470
- - 279,157	- - 3,299,212	- - (2,799,227)	- - (380,283)	- - 398,859
412,946	3,299,212	(2,857,829)	-	854,329
424,721	3,389,556	(2,941,178)	-	873,099

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

Purposes of restricted funds

Supported Accommodation

This fund is restricted funding to be used within the supported accommodation services. This includes; specialist staff training and enhanced one to one support with young people at our foyer accommodation, support workers for Supported Independence Flats and funding for pilot supported lodgings scheme for young people aged 18 and over.

Family Mediation

This fund is to provide specialist mediation support for young people and their families and specialist mediation training for Step by Step staff.

Counselling & Support Services

This fund provides specialist one to one counselling services and a drop-in service providing information, guidance and support to young people and their families.

Young people Training and Activities

This fund supports a number of services, which offer a combination of support, skills training, activities and constructive occupation of time.

Covid 19 Emergency Funds

This fund supported exceptional costs incurred due to the pandemic. This included activities, equipment and support for young people, PPE for staff and hosts, H&S equipment and agency staff.

IT Upgrade

This fund paid for the replacement of the server, associated set-up costs and licences. The remaining balance has been transferred to the designated fixed asset fund.

Purposes of designated funds

Capital and Maintenance Fund

This has been designated for the necessary replacement of equipment, property dilapidations and non-routine property maintenance and repairs.

Remuneration Review Fund

This fund had been designated to provide for costs of staff salary uplifts following the results of a bench-marking review. These salary uplifts were implemented during 2019-20.

Development Capital Fund

This fund had been designated to provide funding for investments in development projects to further diversify and grow and support the services we provide to young people.

Fixed Asset Fund

This fund has been designated to match the net book value of the Charity's fixed assets.

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2021

19 Operating lease commitments payable as a lessee

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

of the following periods
Less than one year One to five years Over five years	2021 2020 £ £ 30,766 30,766 123,064 123,034 312,788 343,554 466,618 497,354 Property		2021 2020 £ £ 1,536 1,536 1,152 2,688 - - 2,688 4,224 Equipment
	466,618	497,354

20 Legal status of the charity

Step by Step Partnership Limited is a charitable company limited by guarantee and has no share capital. Each member is liable to contribute a sum, not exceeding £1, in the event of the Charity being wound up.