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2023-03-31-accounts

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2023

Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

CONTENTS

CONTENTS
Page
Legal and administrative information 1
Directors' report 2
Auditors' report 12
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20

Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

LEGAL AND ADMINISTRATIVE INFORMATION For the year ended 31 March 2023

Directors

Mr K Gathergood, Chairman Mr S Mylvaganam, Treasurer Mr A Mitchell, Deputy Chairman Mr J Devlin Sir J Portal Mrs C Skerry Mr J Mowat Mrs L Barnes Mr S Brearley - Appointed November 2022 Mrs C Gallagher - Appointed November 2022 Mr R James – Resigned October 2022 Mr A Auteri - Resigned October 2022 Mrs C Thomas - Resigned October 2022

Company Registration Number

02431825

Charity Registration Number 900308

Address & Registered Office

36 Crimea Road, Aldershot, Hampshire, GU11 1UD

Company Secretary

Mrs L Barnes

Chief Executive Officer

Mrs D Moreton

Head of Fundraising

Mrs A Chiu

Head of HR

Mrs R Palmer

Head of Finance

Mrs A Thurlow

Head of Fostering & Supported Lodgings

Mrs K Headen

Head of Foyers & Wellbeing

Miss M Partridge

Auditors

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

Bankers

Lloyds Bank Plc, 25 Gresham Street, London, EC2V 7HN

Solicitors

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

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

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 2023.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.

The Charity’s wholly owned subsidiary, Step by Step Fostering Limited, was incorporated under the Companies Act 2006 on 11 October 2021 and is limited by shares. Its operations are also governed by its 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.

Step by Step Fostering Limited has a separate Board of Directors. Two of the Directors are also Directors of the Charity, Andrew Mitchell and James Mowat. The Chief Executive Officer of the Charity, Debra Moreton, is also a director of the subsidiary, along with two additional independent directors who have been chosen for their knowledge and experience in their specialist areas.

Organisation and Decision Making

The Governance structure for the Charity 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 BSs 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 Officer is not a director of the Charity 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 Officer. 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 Officer, Leadership Team and staff.

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

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

Day-to-day operational responsibility for the subsidiary rests with the Responsible Individual and Registered Manager, both of whom have applied for registration with Ofsted. Separate Board Meetings for the subsidiary are held every quarter and it holds its own delegated powers register.

Remuneration Policy

To secure the standards of its work and to provide young people with excellent services, Step by Step (SbS) strives to attract and retain high quality employees. A number of its services significantly benefit from appropriately qualified and competent staff that provide a continuity of care and high level of continuity of service. Consequently, SbS’s salary policy is to reward its talented people fairly, equitably, and consistently in accordance with market values and to encourage their motivation and engagement.

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 recommended to the Audit and Remuneration Board Sub Committee (ARSC) by the Chief Executive Officer (CEO) and Head of HR.

Leadership Team salary and benefits, excluding the CEO, is proposed to the ARSC by the CEO and if supported by the ARSC recommended to the Board for approval. With regard to the CEO’s salary and benefits review, the Chairperson conducts a six monthly and annual appraisal, utilising feedback from the Board members. Any proposed change to CEO remuneration and benefits is made by the Chairperson to the ARSC, including appraisal and local market remuneration data, and if supported recommended 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:

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)

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

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 and London & Quadrant Housing Association to accommodate vulnerable young people.

Funders are a 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 the 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 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.

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 1345 young people and family members and has educated a further 4750 young people via school and community talks, a total beneficiary number of 6095. Several of our key achievements during 2022/23 are detailed under ‘Achievements and Performance’.

In the year to 31 March 2023, 45.4% of young people supported were male, 52.5% female and 1.9% identified as non-binary; 78% of young people were teenagers. In our Foyer accommodation there were 47 placements available for homeless young people aged 16-21 (or 25 under certain circumstances) and a total of 97 young people in total were accommodated over the year. In Supported Lodgings there were 234 placements available for homeless young

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

people and a total of 313 young people were accommodated during the year.

Our placements across Hampshire, Surrey, West Berkshire, Wiltshire and Dorset offer either Supported Lodgings accommodation or Foyer accommodation. Young people are in a downward spiral when they arrive with 50% unemployed but 73% of young people positively progressed or stabilised their circumstances. The key point about the 11-25 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:

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

Opening of the New Forest Foyer Accommodation

We successfully tendered and won the New Forest Tender with Hampshire County Council to provide a home for 4/6 young people within the New Forest area. This provision started to run in November 2022 and is successfully housing 4 young people at any one time.

Accommodation Services: At the end of the financial year, 31[st] March 2023, the Charity was providing up to 281 accommodation beds for young people at any one time, up from 253 at the end of March 2022.

Stage 1 accommodation offers support to those who meet the referral criteria for this accommodation. This includes 16+ looked after children and young people with High Intensive Support needs and is based in Aldershot, Basingstoke, New Forest 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 with step sessions with a dedicated support worker.

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

Supported Accommodation Beds are also available within the Aldershot Foyer for young people that need our support but that do not have the funding for the support that they require. This support is funded from our fund-raising activity,

Referrals are from several agencies with whom the Charity has a relationship with, as well as young people being able to refer themselves. This year the Charity accommodated 52% of all referrals made to its accommodation services, receiving 491 referrals and making 257 admissions. During the course of the year 410 young people were accommodated, with up to 281 in residence in our accommodation services at any one time. Positive progression was achieved by 73% of young people in the accommodation services overall.

We commissioned the Supported Independence Flats in December 2020 and have had 35 young people stay with a progression rate of 52%.

Supported Lodgings placements for 234 young people were available at any one time across five counties, with 313 young people being supported during the year, and 77% achieving positive progress. New 18+ and UASC Supported Lodgings services have been successfully piloted in 2022-23, supporting more young people and generating additional income for the charity. Both new Supported Lodgings services will be continuing next year.

Fostering: The subsidiary company has been preparing for its upcoming Ofsted inspection and accreditation. Foster families cannot be sought, and placements cannot be made, until this accreditation has been given. However, the company has made very good progress towards the goal in being able provide quality supportive foster placements for young people aged 1118, including those with multiple and complex needs.

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

Launch: Launch is a remodelling and rebranding of our Youth Aims service and went live in Feb 2022. Launch provides information and guidance on a range of issues, including housing and homelessness, applying for benefits, sexual health, signposting, relationships, and getting into education or employment.

Young people can access Launch in person, via live chat, email, text message and phone. Over the last year, 229 chat sessions were delivered to young people using live chat.

The Launch team includes a Recovery Support Worker and an Emotional Wellbeing Support Worker to allow new expertise to be offered to young people requiring specialist support. Launch is free and available for young people aged 11-25 living in one of the six counties Step by Step operates in.

Counselling: As a provider of youth counselling for young people aged 11 – 25, and against a backdrop of rising youth mental ill health, we were pleased to be able to support 491 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

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

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 2023, 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 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: This year we have been successful in recruiting a Volunteer Co-Ordinator. The Volunteer Coordinator provides support to all volunteers across the organisation coordinating training and HR needs. This year we have both retained our volunteers and successfully increased the number of volunteers providing valuable support to the services. Currently we have 19 volunteers working and supporting across the charity.

Volunteers contribute to areas such as premises maintenance and development, community fundraising, finance and administration, support of a database and recording system, management and collection of food and clothing donations. Their varied and significant contributions are greatly appreciated, and the Charity aims to further 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. We are moving from the Triangle Homelessness Outcome Star to the Triangle Young Persons Star during 2023 so we can better focus support on the needs of young people.

Governance: A bi-annual self-assessment process to review Board performance is a wellestablished practice and provides a productive vehicle for continuous governance improvement. The Board currently has 10 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, scored to highlight any exposures. The Board is satisfied that the current mix of skills and competence is well suited to the governance of the charity. The 10 Directors service range is 1 – 16 years with an average of six years.

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 the Leadership Team. A clear statement is maintained, through a Delegated Powers

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

Register, 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. 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 2022/23 include:

FINANCIAL REVIEW FOR THE YEAR

The Statement of Financial Activities is set out on page 17 and shows the net movement in funds for the year.

During the year a surplus of £192,612 was recorded for the Group, A surplus of £246,463 for Step by Step Partnership Ltd and a deficit of £53,851 for its wholly owned subsidiary, Step by Step Fostering Limited.

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

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

expenditure. In practice the Directors regularly review reserves to ensure that they are sufficient to cover a minimum of:

Total Reserves as of 31[st] March 2023 are £1,944,258 comprising of designated funds of £1,117,863 and unrestricted funds of £826,395.

After allowing for restricted and designated funds, the free reserves were £826,395 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 within 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:

Through this review, the Trustees have assessed that the charity continues to be 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 YEAR AHEAD

The 22/23 year was the third year of a strategic plan to establish sound and sustainable foundations to enable the charity to take the next chapter in its development. The successful delivery of that plan has enabled the Board to agree a new and exciting 3-year strategic plan

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

for years 23/24 to 25/26. This plan confirms that the charity will stay focused on its mission and focus on both the growth of existing services and adding to them. Regrettably, in this day and age demand for the charity’s services from vulnerable and disadvantaged young people continues to grow and diversify which presents both a challenge and opportunity for the charity to help meet that demand.

In the 23/24 year we seek to be successful in obtaining Ofsted accreditation for Step by Step Fostering Limited enabling it to proceed to completing the setup of the service and commence trading. Also, Step by Step Partnership Ltd is planning to submit an application for Ofsted accreditation of its 16+ services. Expansion of all the services referenced in this annual report is part of the 23/24 year plan and we are also seeking to generate alternatives for providing 18+ move on accommodation. The lack of move on accommodation, and the lack of funding to support it, creates a cliff edge for young people in their journey to independent living and it is essential that options are found to address this issue.

The plan assumes that the economic environment will continue to be turbulent, and that further pressure will exist on public authorities to cut social funding budgets. Over the years Step by Step has shown that it is creative and innovative in dealing with such funding cuts and its fundraising activities evidence our success. Creativity and innovation are now part of the culture of Step by Step in everything it does. Financial sustainability is at the heart of this culture. All we do has to be affordable and financially sustainable. In the last year the Financial Team has been refreshed and we have comprehensive monthly management accounts reviewed every month by the Treasurer and a selection of directors. The annual creation of a positive surplus and associated positive cash generation underpins this financial sustainability.

The key assets of Step by Step are its staff, volunteers and Supporting Lodgings Hosts. We hope to add Foster Carers to that asset base during 2023-2004. The training, development, support and well-being of all these wonderful assets is of great importance to the delivery of the new 3 year strategic plan. Individual personal development plans support this process plus the use of a combination of in house and external training, mentoring and support services. The CEO has now built a Leadership Team capable of delivering the charity’s plans, with attention also being paid to succession planning and leadership training.

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:

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

DIRECTORS’ REPORT For the year ended 31 March 2023

The Trustees are responsible for keeping proper accounting records that disclose, with reasonable accuracy, at any time, the financial position of the Charitable Company and 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:

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

AUDITOR

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The directors’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

APPROVAL

This report was approved on the 28 July 2023 by the Board and signed on its behalf, by:

Keith Gathergood Chair

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT To the members of the Step by Step Partnership Ltd For the year ended 31 March 2023

Opinion

We have audited the financial statements of Step by Step Partnership Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of 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:

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 group financial statements section of our report. We are independent of the group and parent 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.

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT To the members of the Step by Step Partnership Ltd For the year ended 31 March 2023

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

Other Information

The other information comprises the information included in the trustees’ annual report, other than the group 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 group 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 group 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 group 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their 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 and Charities Act 2011 requires us to report to you if, in our opinion:

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT To the members of the Step by Step Partnership Ltd For the year ended 31 March 2023

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 parent 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 group’s and the parent 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 group or the parent 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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.

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Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT To the members of the Step by Step Partnership Ltd For the year ended 31 March 2023

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:

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.

15

Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

INDEPENDENT AUDITOR’S REPORT To the members of the Step by Step Partnership Ltd For the year ended 31 March 2023

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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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. 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)

1 September 2023

for and on behalf of Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

16

Step By Step Partnership Limited | Registered Office: 36 Crimea Road, Aldershot, Hampshire GU11 1UD | Company No. 02431825 | Charity No. 900308

Step by Step Partnership Ltd

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2023

For theyear ended 31 March 2023
Note
Income from:
2
3
3
3
5
5
5
5
6
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Transfers between funds
Net income / (expenditure) before other
recognised gains and losses
Net movement in funds
Raising funds
Net income / (expenditure) for the year
Total expenditure
Charitable activities
Accommodation
Counselling & support
Development projects
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Accommodation
Counselling & support
Development projects		 Unrestricted

£
233,874
2,877,250
350,439
-
2,086		 Designated
£
-
-
-
-
-		 Restricted
£
-
174,683
204,579
23,000
-		 2023
Total
£
233,874
3,051,933
555,018
23,000
2,086		 Unrestricted
£
286,484
2,544,725
293,365
-
25		 Designated
£
-
-
-
-
-		 Restricted
£
150,000
175,652
96,082
11,000
-		 2022
Total
£
436,484
2,720,377
389,447
11,000
25
3,463,649 - 402,262 3,865,911 3,124,599 - 432,734 3,557,333
211,169
2,522,608
405,913
131,347		 -
-
-
-		 -
174,683
204,579
23,000		 211,169
2,697,291
610,492
154,347		 209,279
2,273,769
302,982
34,989		 -
-
-
-		 -
169,945
101,789
11,000		 209,279
2,443,714
404,771
45,989
3,271,037 - 402,262 3,673,299 2,821,019 - 282,734 3,103,753
192,612
80,434		 -
69,566		 -
(150,000)		 192,612
-		 303,580
(481,057)		 -
481,057		 150,000
-		 453,580
-
273,046 69,566 (150,000) 192,612 (177,477) 481,057 150,000 453,580
273,046
553,349		 69,566
1,048,297		 (150,000)
150,000		 192,612
1,751,646		 (177,477)
730,826		 481,057
567,240		 150,000
-		 453,580
1,298,066
826,395 1,117,863 - 1,944,258 553,349 1,048,297 150,000 1,751,646

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 19a to the financial statements.

17

Step by Step Partnership Ltd

Company no. 2431825

Balance sheets

As at 31 March 2023

As at 31 March 2023
Balance sheets		 Company no. 2431825 Company no. 2431825
Note
Fixed assets:
11
12
Current assets:
14
Liabilities:
15
19
Total unrestricted funds
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investments
Cash at bank and in hand
Tangible assets
Total funds		 2023
2022
£
£
613,463
37,297
-
-
613,463
37,297
525,594
303,419
1,437,211
2,067,469
1,962,805
2,370,888
(632,010)
(656,539)
1,330,795
1,714,349
1,944,258
1,751,646
-
150,000
1,117,863
1,048,297
826,395
553,349
1,944,258
1,601,646
1,944,258
1,751,646
The group		 2023
2022
£
£
613,161
37,297
1
-
613,162
37,297
614,261
303,419
1,402,646
2,067,469
2,016,907
2,370,888
(631,960)
(656,539)
1,384,947
1,714,349
1,998,109
1,751,646
-
150,000
1,117,863
1,048,297
880,246
553,349
1,998,109
1,601,646
1,998,109
1,751,646
The charity
613,463
525,594
1,437,211		 37,297
303,419
2,067,469		 613,162
614,261
1,402,646		 37,297
303,419
2,067,469
1,962,805
(632,010)		 2,370,888
(656,539)		 2,016,907
(631,960)		 2,370,888
(656,539)
1,330,795 1,714,349 1,384,947 1,714,349
1,944,258 1,751,646 1,998,109 1,751,646
-
1,117,863
826,395		 150,000
1,048,297
553,349		 -
1,117,863
880,246		 150,000
1,048,297
553,349
1,944,258 1,601,646 1,998,109 1,601,646
1,944,258 1,751,646 1,998,109 1,751,646

Approved by the trustees on 28 July 2023 and signed on their behalf by

S Mylvaganam Treasurer / Director

K Gathergood Chair / Director

18

Step by Step Partnership Ltd

Consolidated statement of cash flows

For the year ended 31 March 2023

For the year ended 31 March 2023 For the year ended 31 March 2023 For the year ended 31 March 2023
Note
£
£
Net income / (expenditure) for the reporting period
192,612
(as per the statement of financial activities)
Depreciation charges
28,552
Dividends, interest and rent from investments
(2,086)
(Profit)/loss on the disposal of fixed assets
-
(Increase)/decrease in debtors
(222,175)
Increase/(decrease) in creditors
(24,529)
Net cash provided by / (used in) operating activities
(27,626)
2,086
-
(604,718)
(602,632)
(630,258)
2,067,469
-
a
1,437,211
Analysis of cash and cash equivalents and of net debt
At 1 April
2022
Cash flows
£
£
Cash at bank and in hand
2,067,469
(630,258)
Overdraft facility repayable on demand
-
-
a
Total cash and cash equivalents
2,067,469
(630,258)
Loans falling due within one year
-
-
Loans falling due after more than one year
-
-
Finance lease obligations
-
-
Total
2,067,469
(630,258)
Cash flows from operating activities
Net cash provided by / (used in) investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from the sale of fixed assets
Purchase of fixed assets
2023
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to
exchange rate movements		 £
£
453,580
24,755
(25)
350
(137,972)
61,750
402,438
25
-
(11,162)
(11,137)
391,301
1,676,168
-
2,067,469
Other non-
cash
changes
At 31 March
2023
£
£
-
1,437,211
-
-
1,437,211
-
-
-
-
-
-
-
1,437,211
2022
(27,626)
(602,632)		 402,438
(11,137)
At 1 April
2022
£
2,067,469
-		 Other non-
cash
changes
£
-
(630,258)
2,067,469
-		 391,301
1,676,168
-
1,437,211 2,067,469
Cash flows
£
(630,258)
-		 At 31 March
2023
£
1,437,211
-
2,067,469 (630,258) - 1,437,211
-
-
-		 -
-
-		 -
-
-		 -
-
-
2,067,469 (630,258) - 1,437,211

19

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

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.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary Step by Step Fostering Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006, A summary of the result for the year is disclosed in the notes to the accounts. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

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.

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.

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.

20

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

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 staff time, of the amount attributable to each activity.

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 47%
Counselling & Support 21%
Cost of raising funds 9%
Growth & Development 20%
Governance costs 3%

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.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

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:

2% straight line 33% straight line 10% - 20% straight line

21

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

1 Accounting policies (continued)

m) Investments in subsidiaries Investments in subsidiaries are at cost.

n) 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.

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.

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.

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
£
6,571
145,366
67,765
-
14,172
-		 £
-
-
-
-
-
-
Restricted		 2023
Total
£
6,571
145,366
67,765
-
14,172
-		 Unrestricted
£
7,820
100,363
159,042
12,438
6,811
10		 £
-
-
150,000
-
-
-
Restricted		 2022
Total
£
7,820
100,363
309,042
12,438
6,811
10
233,874 - 233,874 286,484 150,000 436,484

22

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

Income from charitable activities
Accommodation
Counselling & Support
Development projects
Total
Income from charitable activites by
Sub-total
Sub-total
Local Authority Contracts
Sundry Income
Grants and contracts
Trust income
Local Authority Grants
Total income from charitable
activities
Housing & Supported Lodgings
related incomes
Rent and Personal Charges		 Unrestricted
£
2,877,250
350,439
-		 £
174,683
204,579
23,000
Restricted		 2023
Total
£
3,051,933
555,018
23,000		 Unrestricted
£
2,544,725
293,365
-		 £
175,652
96,082
11,000
Restricted		 2022
Total
£
2,720,377
389,447
11,000
3,227,689 402,262 3,629,951 2,838,090 282,734 3,120,824
funder
Unrestricted
£
142,323
-		 £
402,262
-
Restricted		 2023
Total
£
544,585
-		 Unrestricted
£
107,760
-		 £
282,734
-
Restricted		 2022
Total
£
390,494
-
142,323
2,955,553
129,753
60		 402,262
-
-
-		 544,585
2,955,553
129,753
60		 107,760
2,628,574
101,644
112		 282,734
-
-
-		 390,494
2,628,574
101,644
112
3,085,366 - 3,085,366 2,730,330 - 2,730,330
3,227,689 402,262 3,629,951 2,838,090 282,734 3,120,824

23

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

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 2023
Total expenditure 2022		 Raising
funds
£
131,671
31,149
-
-
-
-
-
-
162,820
42,710
5,639
211,169
209,279		 Accommodation
£
1,084,520
1,359,913
-
-
-
-
-
-
2,444,433
207,537
45,321
2,697,291
2,443,714		 Counselling
& Support
£
337,241
162,572
-
-
-
-
-
-
499,813
95,224
15,455
610,492
404,771		 Growth &
Development
£
40,468
5,028
-
-
-
-
-
-
45,496
108,851
-
154,347
45,989		 Governance
costs
£
50,258
16,157
-
-
-
-
-
-
66,415
-
(66,415)
-
-		 Support
costs
£
369,774
-
27,181
18,993
2,703
6,290
29,381
-
454,322
(454,322)
-
-
-		 2023 Total
£
2,013,932
1,574,819
27,181
18,993
2,703
6,290
29,381
-
3,673,299
-
-
3,673,299		 2022
Total
£
1,633,085
1,358,403
32,491
53,499
2,514
3,368
20,393
-
3,103,753
-
-
3,103,753

24

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

5b Analysis of expenditure (prior 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 2022		 Raising
funds
£
109,565
53,015
-
-
-
-
-
-
162,580
42,960
3,739
209,279		 Accommodation
£
954,489
1,200,320
-
-
-
-
-
-
2,154,809
257,689
31,216
2,443,714		 Counselling
& Support
£
200,180
101,451
-
-
-
-
-
-
301,631
92,659
10,481
404,771		 Growth &
Development
£
58,512
(12,523)
-
-
-
-
-
-
45,989
-
-
45,989		 Governance
costs
£
29,296
16,140
-
-
-
-
-
-
45,436
-
(45,436)
-		 Support
costs
£
281,043
-
32,491
53,499
2,514
3,368
20,393
-
393,308
(393,308)
-
-		 2022 Total
£
1,633,085
1,358,403
32,491
53,499
2,514
3,368
20,393
-
3,103,753
-
-
3,103,753

25

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2023 2022
£ £
Depreciation 28,552 24,755
Loss or profit on disposal of fixed assets - 350
Operating lease rentals:
Property 30,766 30,766
Other 1,339 1,536
Auditor's remuneration (excluding VAT):
Audit 12,750 11,600
Other services 1,080 -

Staff costs were as follows:

Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes
Social security costs
Salaries and wages
Redundancy and termination costs		 2023
£
1,799,159
13,535
150,595
50,643		 2022
£
1,474,362
-
117,321
41,402
2,013,932 1,633,085

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:

2023 2022
No. No.
£60,000 - £69,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £395,977 (2022: £353,517).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2022: £nil) incurred by no (2022: nil) members relating to attendance at meetings of the trustees.

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 78 (2022: 73).

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

Staff are split across the activities of the charity as follows (full time equivalent basis):
Fundraising
Governance, Management and Admin
Accommodation and other service staff		 2023
No.
8.6
5.0
44.1		 2022
No.
7.6
5.0
40.1
57.7 52.7

26

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

9 Related party transactions

There are no related party transactions to disclose for 2023 (2022: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

10 Taxation

The charity is exempt from corporation tax because all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary, Step by Step Fostering Limited, distributes under Gift Aid available profits to the parent charity.

11 Tangible fixed assets

Tangible fixed assets

profits to the parent charity.
Cost or valuation
Depreciation
The group
Disposals in year
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
Charge for the year
Net book value
At the end of the year
At the start of the year
At the start of the year
Additions in year		 Freehold
property
£
-
577,368
-		 Computer
equipment
£
85,097
20,879
-		 Furniture &
fittings
£
263
6,471
-		 Total
£
85,360
604,718
-
577,368 105,976 6,734 690,078
-
4,208
-		 47,835
23,483
-		 228
861
-		 48,063
28,552
-
4,208 71,318 1,089 76,615
573,160 34,658 5,645 613,463
- 37,262 35 37,297

All of the above assets are used for charitable purposes.

At the start of the year
Disposals in year
The charity
At the start of the year
Additions in year
Cost or valuation
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the end of the year		 Freehold
property
£
-
577,368
-		 Computer
equipment
£
85,097
20,879
(1,545)		 Fixtures and
fittings
£
263
6,471
-		 Total
£
85,360
604,718
(1,545)
577,368 104,431 6,734 688,533
-
4,208
-		 47,835
23,483
(1,243)		 228
861
-		 48,063
28,552
(1,243)
4,208 70,075 1,089 75,372
573,160 34,356 5,645 613,161
- 37,262 35 37,297

All of the above assets are used for charitable purposes.

27

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

12 Subsidiary undertaking

The charity owns the whole of the issued ordinary share capital of Step by Step Fostering Limited, a company registered in England. The company number is 13672670. The registered office address is 36 Crimea Road, Aldershot, Hampshire, GU11 1UD.

The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distrbuted under Gift Aid to the parent charity.

The trustees Andrew Mitchell and James Mowat, together with the Chief Executive, Debra Moreton, are also directors of the subsidiary.

A summary of the results of the subsidiary is shown below:


of the subsidiary.
A summary of the results of the subsidiary is shown below:
The aggregate of the assets, liabilities and reserves was:
Retained earnings
Distribution under Gift Aid to parent charity
Total retained earnings carried forward
Assets
Liabilities
Reserves
Profit / (loss) on ordinary activities before taxation
Profit/(loss) on ordinary activities before interest and taxation
Interest receivable and similar income
Interest payable and similar charges
Turnover
Cost of sales
Gross profit/(loss)
Administrative expenses
Profit / (loss) for the financial year
Taxation on profit on ordinary activities
Other operating income
Total retained earnings brought forward
Profit / (loss) for the financial year		 2023
£
-
-		 2022
£
-
-
-
(108,851)
55,000		 -
-
-
(53,851)
-
-		 -
-
-
(53,851)
-		 -
-
(53,851) -
-
(53,851)
-		 -
-
-
(53,851) -
39,190
(93,040)		 -
-
(53,850) -

Amounts owed to the parent undertaking are shown in note 14.

28

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

13 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

14
15
Prepayments
Trade creditors
Other creditors
Accruals
Deferred income (note 16)
Amounts due from group undertakings
Amounts due to group undertakings
Taxation and social security
Accrued income
Creditors: amounts falling due within one year
Gross income
Result for the year
Debtors
Trade debtors
Other debtors		 2023
2022
£
£
399,507
155,005
1,486
31,992
-
-
65,867
58,547
58,734
57,875
525,594
303,419
2023
2022
£
£
163,427
193,460
34,399
30,651
11,328
16,377
-
-
34,374
91,857
388,482
324,194
632,010
656,539
The group
The group		 2023
2022
£
£
399,507
155,005
1,486
31,992
-
-
65,867
58,547
58,734
57,875
525,594
303,419
2023
2022
£
£
163,427
193,460
34,399
30,651
11,328
16,377
-
-
34,374
91,857
388,482
324,194
632,010
656,539
The group
The group		 2023
£
3,865,911
246,463		 2022
£
3,557,333
453,580
632,010 656,539 631,960 656,539

29

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

16 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		 2023
2022
£
£
324,194
373,472
(324,194)
(373,472)
388,482
324,194
388,482
324,194
The group		 2023
2022
£
£
324,194
373,472
(324,194)
(373,472)
388,482
324,194
388,482
324,194
The group		 2023
2022
£
£
324,194
373,472
(324,194)
(373,472)
388,482
324,194
388,482
324,194
The charity		 2023
2022
£
£
324,194
373,472
(324,194)
(373,472)
388,482
324,194
388,482
324,194
The charity
388,482 324,194 388,482 324,194

17 Pension scheme

The charity operates a Defined Contribution Scheme. Amounts paid into the scheme were £49,011 (2022: £41,402). Amounts outstanding at the end of the year were £10,055 (2022: £8,535).

18a Analysis of group net assets between funds (current year)

Analysis of group net assets between funds (current year) year)
General
unrestricted
£
-
1,458,405
(632,010)
826,395
General
unrestricted
£
-
1,359,888
(806,539)
553,349
Tangible fixed assets
Creditors due within one year
Net current assets
Analysis of group net assets between funds (prior year)
Net assets at 31 March 2023
Net assets at 31 March 2022
Tangible fixed assets
Net current assets
Creditors due within one year		 General
unrestricted
£
-
1,458,405
(632,010)		 £
613,463
504,400
-
Designated
funds		 Restricted
funds
£
-
-
-		 Total funds
£
613,463
1,962,805
(632,010)
826,395 1,117,863 - 1,944,258
£
37,297
1,011,000
-
Designated
funds		 Restricted
funds
£
-
150,000
-		 Total funds
£
37,297
2,520,888
(806,539)
553,349 1,048,297 150,000 1,751,646

18b Analysis of group net assets between funds (prior year)

30

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

19a Movements in funds (current year)

Movements in funds (current year)
Total restricted funds
Total designated funds
General funds
Restricted funds:
Supported Accommodation
Covid 19 Emergency Funds
Development Projects
Young people Training and Activities
Designated funds:
Unrestricted funds:
Counselling & Support Services
Purchase of Property
Capital & Maintenance Fund
Development Capital Fund
Fixed Asset Fund
Total unrestricted funds
Total funds		 £
-
-
150,000
-
-
-
At 1 April
2022		 £
174,683
204,579
-
-
-
23,000
Income &
gains		 £
(174,683)
(204,579)
-
-
-
(23,000)
Expenditure
& losses		 £
-
-
(150,000)
-
-
-
Transfers		 £
-
-
-
-
-
-
At 31 March
2023
150,000 402,262 (402,262) (150,000) -
65,000
946,000
37,297		 -
-
-		 -
-
-		 -
(506,600)
576,166		 65,000
439,400
613,463
1,048,297 - - 69,566 1,117,863
553,349 3,865,911 (3,673,299) 80,434 826,395
1,601,646 3,865,911 (3,673,299) - 1,944,258
1,751,646 4,268,173 (4,075,561) - 1,944,258

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

The transfers out of Restricted funds and the Development Capital Fund relate to the purchase of our Freehold Property during the year, all restriction removed at the point the Property was purchased.

31

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

For the year ended 31 March 2023
19b
Total restricted funds
Total designated funds
General funds
Development Projects
Covid 19 Emergency Funds
Unrestricted funds:
Designated funds:
Capital & Maintenance Fund
Development Capital Fund
Fixed Asset Fund
Total unrestricted funds
Supported Accommodation
Counselling & Support Services
Purchase of Property
Young people Training and Activities
Restricted funds:
Total funds
Movements in funds (prior year)		 £
-
-
-
-
-
-
At 1 April
2021		 £
169,945
101,789
150,000
-
-
11,000
Income &
gains		 £
(169,945)
(101,789)
-
-
-
(11,000)
Expenditure
& losses		 £
-
-
-
-
-
-
Transfers		 £
-
-
150,000
-
-
-
At 31 March
2022
- 432,734 (282,734) - 150,000
65,000
451,000
51,240		 -
-
-		 -
-
-		 -
495,000
(13,943)		 65,000
946,000
37,297
567,240 - - 481,057 1,048,297
730,826 3,124,599 (2,821,019) (481,057) 553,349
1,298,066 3,124,599 (2,821,019) - 1,601,646
1,298,066 3,557,333 (3,103,753) - 1,751,646

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.

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.

Purchase of Property

This fund represents donations by individuals restricted to the purchase of property only.

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.

Development Projects

This fund is to support projects to develop the services provided to young people.

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.

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.

32

Step by Step Partnership Ltd

Notes to the financial statements

For the year ended 31 March 2023

20 Operating lease commitments payable as a lessee

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


the following periods:
One to five years
Over five years
Less than one year		 2023
2022
£
£
30,766
30,766
123,064
123,064
251,256
282,022
405,086
435,852
Property		 2023
2022
£
£
749
1,152
562
-
-
-
1,311
1,152
Equipment
405,086 435,852 1,311 1,152

21 Post balance sheet events

There are no post balance sheet events which need to disclosed.

22 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.

33