The trustees present their annual report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Companies Act 2006 and "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)" (effective 1 January 2019).
Stepping Stones North Edinburgh strives to facilitate positive change in the lives of young parent families referred to us by a range of agencies and professionals. We hope that with support, parents will be empowered to reach their full potential, helping to ensure their children have the best start in life.
The company's objectives are to promote, benefit and advance the education and social development of the inhabitants of North Edinburgh and its environs and in particular parents and their children therein.
Stepping Stones (North Edinburgh) is a voluntary organisation that provides support services to young parent families and pregnant women living in the North of Edinburgh and it's environs. Stepping Stones aims to promote and support the social development and education of families with young children. Support can be accessed through self-referral or by professional referral.
The parents are encourages to take part in the decision-making of the Project through regular Project Meetings and Parent Forums. Parents elect their peers as representatives on the "Parents Forum". This body represents views of the parents and liaises with management and the Board of Trustees on issues raised.
Stepping Stones (North Edinburgh) provides a wide range of flexible services that families can tap into when appropriate to their individual circumstances.
We have continued to reflect on our service provision and adapt the support we offer based on the voices of those we support. As part of on-going developments, our group work provision has increased from 7 groups per week to 9 groups, providing a range of early learning opportunities for families to enjoy together and adult education courses for parents looking to re-engage in learning.
Family Wellbeing
The Family Wellbeing team continue to offer a wide variety of support to children and their parents. This work spans from the early years through to work with primary aged children. One to one support focuses on supporting families with their mental and emotional wellbeing, building resilience, trauma recovery, building parenting capacity and safeguarding. Complex issues such as homelessness, domestic abuse, poverty and poor mental health continue to disproportionately impact the families within our community.
BWell Together has continued to be a vital part of our family Wellbeing team, offering mental health and wellbeing support to children aged 5 plus. This year our two BWell Together Practitioners have supported 41 children across 22 schools in the North West Locality of Edinburgh.
Our Sparrow project, in collaboration with Circle and City of Edinburgh Council’s Family Group Decision making team, has also continued into 23/24. Sparrow offers intensive support to parents to have had a child permanently removed from their care. Learning from the project highlighted how complex trauma impacts the parents and that many Sparrow parents have shared experiences. This lead to a successful implementation of a Sparrow group, offering a safe and supportive space.
Early Learning
The Early Learning team have continued to lead on several parent and child groups which focus on supporting children’s healthy development. This year the team have been delivering an 8-week baby Steps course which includes inputs on sleep, baby massage, sensory play, first aid and weaning. 46 parents and children benefited from Baby Steps during 23/24. Additionally, 92 children and parents attended Steps Grow, which is an outdoor group promoting safe outdoor play experiences.
Bump Start
Bump Start continues to provide support to pregnant women and their families from conception through to the early postnatal months. One to one support and group work are provided to support the holistic wellbeing of the family during pregnancy and to enable women to have better experiences in pregnancy and early parenthood. As part of the support provided, we continue to offer weekly pregnancy and baby cafes where women can connect with peers. During 23/24 Bump Start supported 75 families and ran 86 pregnancy and baby café sessions.
Education and Life Skill Based Group Work
Our group work programme has continued to be shaped by the voices and aspirations of the parents we support. Working alongside the parents we were able to deliver a programme throughout the year that supported their personal goals, creating a challenging yet fun range of courses. This year, our activities have included everything from arts and crafts and cooking to SQA courses, comedy writing, and employability focused workshops. Through these groups, we strive to empower parents, providing them with transferable skills and the opportunity to think about their aspirations for the future.
We are happy that we are in an overall surplus position with funds at 31 March 24, although there was a deficit for the year ended 31 March 2024 of £56,576. This is due to a decrease in income from £513,885 to £478,152 (7%), which was expected due to the timing of the receipt of restricted funds, which we received in y/e 31/03/23 and was reflected in the surplus, and a number of funding arrangements coming to an end. Expenses also increased from £485,648 to £534,728 (10%) primarily due to staff costs
Stepping Stones (NE) continues to diversify its funding streams receiving funds from sources such as, KPE4 Charitable Trust, City of Edinburgh Council and Inspiring Scotland Perinatal Infant Mental Health (PIMH) fund.
For 2024/25 Stepping Stones (NE) is budgeted to receive income of £568,997, resulting in a projected deficit of £47,108. As the financial year has progressed, we are confident that we will end up in a surplus position due to additional funding achieved.
The budget will be closely monitored by the board throughout the year to ensure the actual results follow the budget and will take appropriate action to cover any further unexpected deficit.
Stepping Stones (North Edinburgh) has secured funding from various sources into 2024/25. We are cautiously optimistic that we will continue to attract the generous support of funders, given the much admired and valuable services we provide to the local community. However, the Trustees are conscious of the need to hold some funds in reserve and to that end we continue to maintain a minimum of 3 months running costs in reserve to afford security against future curtailment of funding.
The total unrestricted funds retained as at 31 March 2024 were £134,177 (2023: £149,421) and total restricted funds retained as at 31 March 2024 were £193,665 (2023: £234,997).
If there are any material changes in the project's financial position, the Board will make the necessary adjustments to service provision and staff recruitment.
Stepping Stones (North Edinburgh) retains funds in reserve each year. These funds remain in bank current accounts.
The organisation maintains a risk register that is regularly reviewed by the Trustees and the Chief Executive. This register addresses key areas such as governance, finance, operational delivery, legal compliance, and external factors. Recent possible risks that have been examined in detail include governance and premises.
In terms of governance, members of the governance subgroup, along with the Chief Executive, participated in a series of three SCVO workshops focused on best practice. Additionally, the board completed a governance health check to identify potential areas for improvement.
Our premises at Inchgarvie Court provide an ideal location at the heart of the community; however, the size presents certain limitations. The Board of Trustees and the Chief Executive are actively exploring possible solutions to ensure staff wellbeing and maintain service delivery levels.
All procedures related to risk are regularly reviewed to ensure they continue to meet the project's needs.
To continue to make connections with employability supports which enable us to link parents into further support.
To develop the work of the Sparrow project with our partners.
To work collaboratively across networks and forums to ensure that we can develop strategic partnerships which support our service development.
To retain our employees and their skills by ensuring we offer a competitive package.
The organisation is a charitable company limited by guarantee, incorporated on 20 March 2005 and registered as a charity in 1993. It has continued registration from the incorporation date and retains the same charity number.
The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under it's Articles of Association. This Memorandum of Association and it's Articles of Association were updated to comply with the Companies Act 2006 and were approved at the Board meeting of 17th of July 2009. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.
The trustees who served during the year are deemed to be the key management personnel.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
A Preston
S Cumming
A J Duncan (Chair)
Rev I A Moir
J R Bradley
P A Haikney (Secretary)
R M Craig (Treasurer)
J E Gorrie
P McPherson
Company Secretary P Haikney
Chief Executive Morag Wilson
Registered Charity Name Stepping Stones (North Edinburgh)
Charity Registration Number SC021775
Company Registration Number SC281866
Principal office and registered office
G3 Inchgarvie Court
Ferry Road Drive
Edinburgh
EH4 4DA
Independent Examiners
Thomson Cooper Accountants
3 Castle Court
Carnegie Campus
Dunfermline
KY11 8PB
Bankers
Bank of Scotland
43 Comely Bank
Edinburgh
EH4 1AF
Solicitors
Lindsays WS
Caledonian Exchange
19A Canning Street
Edinburgh
EH3 8HE
The Directors of the company are also charity Trustees for the purposes of charity law. The practice of the company is for all Directors to retire annually at the Annual General Meeting (AGM) and to offer themselves for re-election. New Directors/Trustees can be appointed at any time and are elected at the next AGM. The Trustees actively seek candidates for appointment to the Board who have skills relevant to the running of the charity. Some knowledge of the charity and the local area is helpful.
Initially a copy of the Annual Review is sent to the applicant. Then an informal interview is arranged for them to meet with the Chief Executive and a Board member at the charity. An application form is given asking for name, address, date of birth and a short CV. This has to be approved at the next Board meeting. The Trustees will have met the applicant informally prior to the meeting. Companies House will be notified of any new appointment.
A new Trustee must sign a Trustee Declaration to ensure they are eligible to act as a Trustee. They must also become members of the Company.
The policy of the charity has also been to encourage suitable users and ex-users to be in management. Potential Trustees are identified within the charity structures and are given training and supervision.
Stepping Stones (North Edinburgh) has a Board of Directors. The Directors meet approximately every two months when the Chief Executive is in attendance to submit a report. Other meetings of Directors only are held as required.
There were nine Directors during the year as listed above, and they are considered the key management personnel of the charitable company.
Senior staff member is Chief Executive Morag Wilson.
The Chief Executive is responsible for the day to day operational management decisions of the Project:-
1. For ensuring that the Project delivers the services so that the objectives of the charity are met;
2. For individual supervision of the staff team and ensuring that the team continue to develop their skills and working practices in line with good practice;
3. For day to day financial transactions;
4. And for reporting back to the Directors.
All other decisions are referred to the Directors.
On appointment Trustees are given an induction which includes a more in-depth look at the Roles and Responsibilities of a Trustee and the Memorandum and Articles of the Company, a copy of which is given to all new Trustees. Financial statements are made available and also an information pack. A tour of the Project is arranged which includes meeting the staff to get to know them and to learn about their work. The Chief Executive and the Secretary of the Board have responsibility for this.
Training
Ongoing training is offered to all Trustees as required. This may be as a group or individually. Use is made of the valuable free training and seminars available in our area. Active involvement with OSCR is undertaken to keep Trustees well informed.
The trustees, who are also the directors of Stepping Stones (North Edinburgh) for the purpose of company law, are responsible for preparing the Trustees' Report and the 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the Charity for the year ended 31 March 2024, which are set out on pages 9 to 23.
The Charity’s trustees, who are also the directors of Stepping Stones (North Edinburgh) for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Stepping Stones (North Edinburgh) is a private company limited by guarantee incorporated in Scotland. The registered office is G3 Inchgarvie Court, Ferry Road Drive, Edinburgh, EH4 4DA.
The financial statements have been prepared in accordance with the Charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
The capitalisation policy of the charity is to capitalise any assets over £100.
At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Support costs are allocated on a direct basis.
The average monthly number of employees during the year was:
The key management personnel of the charity comprise the trustees.
The total amount of employee benefits received by key management personnel is Nil (2023 - Nil)
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Deferred income is included in the financial statements as follows:
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
CEC Contract – to support the associated delivery costs of early learning and family support for those families who have a child under 5.
CEC Communities and Families Grant – to support the associated delivery costs of early learning and outreach support for young parents.
CEC Third Party Grant - Provided to support the associated delivery costs of early learning and outreach support for young parents, offering holistic whole family support and group work opportunities.
CEC Community Mental Health – Funding the BWell Together project across the North West Locality, supporting the mental health and wellbeing of children aged 5 plus.
CEC Summer Trips – (this should be called CEC Community Grants Fund) – Supporting a summer outing to East Links Park.
Community Mental Health and Wellbeing – Funding towards associated delivery costs of Bump Start
CEC supporting birth parents and Corra Foundation – are the same fund and should be sitting in one pot titled CEC Supporting Birth Parents – Funding supports the work of the Sparrow project across Edinburgh and associated delivery costs.
National Lottery – Improving Lives – Contributing to the delivery costs of Family Wellbeing, offering support to primary school children and their families by providing individual and group support.
KPE4 Charitable Trust - Contributing to the delivery costs of Family Wellbeing, offering support to primary school children and their families by providing individual and group support.
NHS Lothian Health Improvement Fund – Contributing towards the associated delivery costs of Bump Start which supports pregnant women and their families.
Inspiring Scotland PIMH – Contributing towards the associated delivery costs of Bump Start to support women and families affected, or at risk of, perinatal and infant mental health issues.
Investing in Communities – Supporting the delivery of the Link up Leith Project, providing supporting to families on health eating, preparing for parenthood, welfare benefits and energy efficiency.
Young Start - To support the continued delivery of the Stepping Stones group work programme to young parents living in North Edinburgh. Supporting young parents to build confidence, develop new skills and reduce isolation.
Robertson Trust – Contribution towards the costs of the Stepping Stones Group worker role in delivering group work opportunities for parents living in North Edinburgh.
St James Place – Supporting associated group work delivery costs such as group work materials, salaries and tutor costs.
Gannochy Trust – To support the associated costs with our education ad life skills group work programme for young parents.
Trusthouse – To support 27% of the running costs over 3 years for the Education and Life skills group work programme for young parents.
Capital City Partnership Parental Employment Support Fund – supporting targeted support for parents living in North Edinburgh to access opportunities which remove common barriers to employment.
Pump House Trust – A contribution towards the associated costs of delivering the education and life skills based group work programme.
Mazars – Funding to support the provision of food and fuel vouchers to families in crisis.
Mercers – A grant towards supporting the work of the family wellbeing team.
Capital City Partnership – No One Left Behind Fund – Funding to support parents to access driving lessons.
Ryvoan – To contribute towards the salary costs for group work delivery.
Stellar Quines – To support the associated costs with the Stellar Quines project within our group work programme.
Children’s Holiday Fund – To fund the associated costs with trips and outings with families living in North Edinburgh.
STV Children’s Appeal Winter Support Fund – to support families in need with fuel costs and winter clothing.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).