REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Chairman's Report | 1 | to | 2 |
Report of the Trustees | 3 | to | 8 |
Report of the Independent Auditors | 9 | to | 11 |
Statement of Financial Activities | 12 |
Statement of Financial Position | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 | to | 26 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
CHAIRMAN'S REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
It's with great pleasure that we update you on another successful year here at The Children's Adventure Farm Trust (CAFT). A year in which, thanks to our supporters, volunteers, Trustees and staff we were able to provide unique, life-enriching experiences for the children who visited us this year. |
The services provided by CAFT are a haven for those families who have been struggling with the cost of living crisis as well as vulnerable families fighting to keep their heads above water. Throughout 2023 we witnessed parents asking for our help to try to ensure that their children are given the opportunity to enjoy the fun and freedom of childhood that should be taken for granted, but for whom such experiences are sadly out of reach. |
In summary we provided the following activities in 2023: |
Residential breaks - Staying in either our 17th Century Farmhouse or Respite Facility, children enjoyed a memorable holiday which would otherwise never be available to them. For many this was the first time they'd ever stayed away from home, and it was wonderful to see them increase in confidence and independence through a programme of fun, stimulating and accessible activities. |
Day visits - It's important not to underestimate the impact of a day visit to CAFT, we continue to see some incredible results as children reap the rewards of a day in the fresh air and tranquillity of the Cheshire countryside. Meeting our animals, exploring our 10 acre site, getting messy and creative in the Woodland and enjoying the freedom of our outdoor, creative spaces. |
All out Adventure, 'Forest School' - This amazing programme continues to go from strength to strength and has seen some great developments in the Woodland, including a new Firepit shelter, additional seating and many new activity areas such as water play and the fantastic Sensory Walkway. The children have loved being outdoors in all weathers, learning about their environment, and how they can enjoy, protect and conserve their natural surroundings. |
Easter-themed visits - Seasonal fun using our outdoor spaces, with each child following the fully accessible Easter Egg trail around CAFT, solving clues and taking home their reward of an Easter Egg, donated by our team of supporters. |
CAFTfest - Our annual family festival was well received by families who didn't hesitate to give their child this type of fun and exciting experience due to their physical, learning or social needs. Children visited the many entertainment zones at their own pace to suit their needs, with relaxed performances which ensured all could participate and benefit. |
Halloween-themed - This was a programme which saw children enjoying all the fun of the Farm, with a spooky twist. Crafts, music, storytelling, games and lots of marshmallow toasting around the campfire. |
Christmas parties - Festive fun in our Winter Wonderland for children whose physical, medical, learning/behavioural needs or social disadvantages make it far too challenging to engage in school/community Christmas activities. Including festive crafts & activities and a visit to Santa, with each child leaving with their arms full of presents and heads full of special memories to treasure. |
We have new projects planned with Partner Organisations, such as Halton Disabled Children's Services and Warrington Youth Zone in order to provide multi-week programmes for the children they support. With increased funding we are hoping to add a transport provision for families without access to a car, making CAFT accessible for families who are currently unable to attend sessions due to our remote countryside location. |
In the current economic climate, we anticipate that fundraising will also continue to be a challenge as we aim to continue to provide our services to families and groups from our region. Nurturing relationships with current funders will remain a priority - ensuring all feel valued and fully understand the importance of their support, is something we pride ourselves on at CAFT. |
We will continue to review our fundraising strategy, looking at new avenues of support and methods of securing funds. Our 2024 strategy covers all areas of fundraising, but with a particular focus on increasing the support we receive from corporate supporters and high net-worth individuals. This will include: |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
CHAIRMAN'S REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
- | Networking opportunities for established corporate supporters to maximise sponsorship and volunteering opportunities. |
- | Open Days at CAFT to secure new corporate supporters and high net-worth individuals. |
- | Focus on community organisations such as Women's Institute, Rotary, U3A and Freemasons to explore funding and awareness-raising opportunities using their established networks. |
We will also continue to run our programme of ticketed and challenge events which not only raise vital funds for the charity, but also expand our community of volunteers and ambassadors. |
The recent loss of our President and friend, Sir Bobby Charlton, will continue to be felt for many years - but with the help of our supporters we will continue the work the charity was set up to do back in 1992, to honour both Sir Bobby's memory and that of each and every person or organisation who has enabled us to still be helping children over 30 years later. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2023. The trustees have adopted the provisions of 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). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The Children’s Adventure Farm Trust Ltd (CAFT or the Farm) exists to provide free holidays and recreational facilities to disadvantaged children and, where necessary, their families, in the North West of England and bordering counties. These activities are largely carried out from the Charity’s site at Booth Bank Farm, near Altrincham, but also include day trips and events at other nearby places. The children who come have life limiting conditions, chronic sickness, and disabilities or will come from extremely impoverished backgrounds. This enables them to have amazing holidays and activity days at our wonderful premises. The Charity hopes that each child visitor will benefit by developing their own physical, mental and spiritual capabilities, as well as improve their overall condition of life. |
As in previous years, the Trust is financed by a combination of donations from other charitable trusts, grant making bodies, fundraising and sponsored events, corporate organisations, individuals and community groups. Our supporters are provided with a host of opportunities to support our cause through their preferred method, this could include; giving a personal donation, undertaking fundraising through their own activity, attending one of our flagship events or participating in a challenge event such as our overseas Tuk Tuk adventure in November 2023 to Sri Lanka which raised an amazing £80K. |
The Charity has continued to be successful in attracting companies to undertake team builds on the Farm. This has resulted in a large amount of maintenance and renewal work that has been completed at no cost to the Trust. |
Public benefit |
The Trustees have considered Charity Commission guidance on public benefit in Section 17 of the Charities Act 2011. By fulfilling its objectives to provide holidays and other recreational activities to children disadvantaged through illness, disability, poverty or other emotional needs, the Trustees consider the Charity is indeed providing a public benefit. |
STRATEGIC REPORT |
Achievement and performance |
Fundraising activities |
The Charity is committed to delivering a varied programme of successful fundraising including events and challenges that help raise vital funds needed to provide holidays, days trips and special events for disadvantaged children. Our team of fundraisers take pride in the relationships built with our committed supporter base, and ensure strong stewardship remains in place throughout. As members of the Fundraising Regulator, our team take all measures to increase public trust in the sector and ensure we remain transparent through all our work, following best practice as outlined in the Institute of Fundraising Code of Practice. Our Charity has also signed up to receiving suppressions under the Fundraising Preference Service and is delighted that to date no requests have been made. |
Our approach to fundraising is monitored by our Board of Trustees through effective reporting, which evaluates the success of different income sources, and identifies areas for review. CAFT is committed to strengthening the oversight and assurance of those fundraising on the Charity's behalf, to ensure information on best practice is readily available to our supporters, as well as identifying further potential to increase income generation. |
The Charity does not engage agencies or third parties to deliver face-to-face, telephone or other direct marketing campaigns, and is committed to protecting the information and data of everyone we come into contact with, and recognise that this needs to be kept safe. We never give or sell any data or information to other charities or companies, and pride ourselves on sharing timely, meaningful information with those who are happy to learn more from ourselves. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STRATEGIC REPORT |
Financial review |
Financial position |
The total incoming resources for the year were £1,251,819 (2022: £1,108,326) whilst expenditure amounted to £1,046,552 (2022: £1,045,948), producing a surplus of £205,267 (2022: £62,378) for the year. At the end of the year, the Trust had net assets of £1.89m (2022: £1.68m), of which £1,141,088 (2022: £888,706) was held in liquid funds, sufficient to meet the Trustees’ target of at least nine months' working capital and a sound base on which to continually grow our reach to deserving children throughout our region. |
Our income for the year was generated across the range of funding areas, Charitable Trusts continue to be the largest contributors. Events, sporting challenges, community, corporate and individual donations also provide significant revenue. |
Our events programme continues to be a major source of income and once again our two biggest fund raising events were our Annual Grand Ball and our Annual Ladies Lunch. We have continued to develop an active community programme including close relationships with a variety of community groups. We are pleased that we have been able to both work with some local schools to fundraise and also accommodate a number of pupils who have gained invaluable work experience. |
We continued to develop relationships with corporate sponsors via team building exercises, which provides much needed voluntary work, to holiday sponsorships for groups of children visiting the Farm. We also received many essential gifts in kind from our supporters ranging from breakfast cereals to soft toys. |
The results for the year are shown in the Statement of Financial Activities on page 12. |
Investment policy and objectives |
The Trust would only invest surplus funds (those available in excess of that required by on-going working capital requirements) in such investment vehicles as decided by the Board, or by one or more Trustees and the Chief Executive operating with the approval of the Board, in respect of these matters. |
Funds will only be invested in recognised vehicles, such as deposit accounts, bonds, Money Market accounts and so on operated by a major clearing bank, merchant bank or established investment company and at all times care will be taken to ensure that the return received by the Charity on such investment is the best possible available, taking into account the requirement to draw down such funds, at the time of the investment. Professional advice will be taken as required to ensure that this return is maximised. |
Reserves policy |
Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergency repairs and other expenditure. |
The Trustees have concluded that, at any one point in time, there should be sufficient free reserves to cover at least nine months’ worth of future anticipated expenditure. We are satisfied that for the year ended 31 December 2023, the Charity has operated in accordance with this policy. We will continue to monitor and control the level of free reserves whilst at the same time ensuring that the Charity acts in the best interests of its beneficiaries by growing and developing the services that we provide. |
The on-going plan indicates steady income flows each year, reflecting the continuous recruitment and training of a dedicated fundraising team. The Trustees review the reserves policy each year at the Annual General Meeting. In line with all Charities, the current economic climate continues to have an impact on activities at CAFT and, as a result, it is the Trustees’ intention to constantly review all reserves to ensure we have sufficient funds to operate normally. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STRATEGIC REPORT |
Future plans |
There is an ever increasing need for the services we offer and it remains a priority that we make a real and meaningful difference to every child and family who visit CAFT. |
During 2023 we have continued to implement many changes and improvements to existing facilities, an exciting programme of new activities and facilities, along with continuing to explore options for future developments, all of which will allow us to fulfil our three year strategy to increase the number of children able to access our services. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The Trust is a company limited by guarantee, governed by its memorandum and articles, with no share capital, and is a registered Charity. The Directors of the company are its only members and are also its Trustees for the purposes of Charity law. Details of the amounts guaranteed by members are given in note 1 to the accounts. |
Recruitment and appointment of new trustees |
New Directors may be appointed by the passing of an ordinary resolution of the Company’s members in general meeting. On appointment, any new Director would become a Trustee and member of the Company. |
The Directors may also invite applications for new members in such form as they decide but would only do so if they considered it would benefit the future activities of the Charity. |
Organisational structure |
The board of Trustees administers the Charity and meets at least quarterly. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charity. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the Trustees, for operational matters including finance, employment and operational activities. |
On 6 August 2024, the old board of trustees retired after many years of service to CAFT and we thank them all for their contribution to CAFT's success over nearly two decades. On the same day a new interim board was appointed with the immediate goals of establishing a larger, more diverse board of trustees and establishing a robust membership of the charity which is representative of the families and children that CAFT supports. |
Induction and training of new trustees |
New Trustees undergo an orientation day to brief them on: their legal obligations under Charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the Charity. During the induction day they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role. |
Key management remuneration |
The Trustees are actively involved in overseeing the Charity’s activities and meet on a regular basis throughout the year. |
None of the Trustees receive remuneration or other benefit from their work with the Charity. Any connection between a Trustee or senior manager of the Charity with a supplier of goods or services to the Trust must be disclosed to the full board of Trustees in the same way as any other contractual relationship with a related party. Bookkeeping, payroll and accounting services were provided to 31 August 2023 by MBL (Business and Tax Advisers) Limited in which one of the Trustees is a director. Fees for this work amounted to £3,396 in the period ended 31 December 2023 (2022: £5,172) (see note 10). |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Risk management |
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. |
The Trustees have a risk management strategy which comprises: |
- an annual review of the principal risks and uncertainties that the Charity faces; |
- the annual review; and the establishment of policies, systems and procedures to mitigate those risks |
identified in the Charity should those risks materialise. |
- the implementation of procedures designed to minimise or manage any potential impact on the Charity |
should those risks materialise |
This work has identified that financial sustainability is a financial risk for the Charity. The Trustees regularly review cashflow, forecast revenue and costs and liquidity. |
Attention is also focused on non-financial risks arising from fire, health and safety of visitors to CAFT as well as management of food hygiene. These risks are managed by ensuring accreditation is up to date, having robust policies and procedures in place, and regular awareness training for staff working in these operational areas. |
Our volunteers |
CAFT works closely in the community and also relies on voluntary help. We have a large number of volunteers who assist with jobs around our land and buildings, sorting and selling donated stock at our Charity shop in Knutsford, stewarding events and activities, enabling longer opening and lower staff costs than would otherwise be the case. We wish to thank all our volunteers for their loyal support and generosity. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
02561611 (England and Wales) |
Registered Charity number |
1003675 |
Registered office |
Booth Bank Farm |
Reddy Lane |
Millington |
Cheshire |
WA14 3RE |
Trustees |
Michael J Bulcock (resigned 4 August 2024) |
Jayne Worrall (resigned 5 August 2024) |
Alice F McGladrigan (resigned 31 July 2024) |
Peter A Collier (appointed 6 August 2024) |
Adrian Coverdale (appointed 23 August 2024) |
Nicola M Graham (appointed 20 August 2024) |
Catherine E Sandland (appointed 6 August 2024) |
Peter J H Scotson (appointed 6 August 2024) |
Auditors |
DJH Audit Limited |
Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
Senior management |
Ian Eccles - Chief Executive |
Bankers |
Natwest Bank plc |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of The Children's Adventure Farm Trust Ltd for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued |
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 those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
The auditors, DJH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
Opinion |
We have audited the financial statements of The Children's Adventure Farm Trust Ltd (the 'charitable company') for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. |
Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. |
Our responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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. |
As part of our planning process: |
- | We enquired of management the systems and controls the charity has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The charity did not inform us of any known, suspected or alleged fraud. |
- | We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant: Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, Charities Act 2022, and health and safety legislation. |
- | We considered the incentives and opportunities that exist in the charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- | Using our knowledge of the charity, together with the discussions held with the charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- | Identifying and testing journal entries, in particular those that were significant and unusual. |
- | Performing walkthrough tests of income and expenses to ensure that appropriate controls and segregation of duties are in place. |
- | Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- | Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation. |
- | Assessing the extent of compliance, or lack of, with the relevant laws and regulations. |
- | Testing key income lines for evidence of management bias. |
- | Obtaining third-party confirmation of material bank balances. |
- | Documenting and verifying all significant related party balances and transactions. |
- | Reviewing documentation such as the trustees minutes for discussions of irregularities including fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
Use of our report |
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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. |
for and on behalf of |
Accountants |
Statutory Auditors |
5 Bank Street |
Bury |
BL9 0DN |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
STATEMENT OF FINANCIAL ACTIVITIES |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 3 |
Other trading activities | 4 |
Investment income | 5 |
Total |
EXPENDITURE ON |
Raising funds | 6 |
Charitable activities | 7 |
Total |
NET INCOME/(EXPENDITURE) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 1,684,675 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD (REGISTERED NUMBER: 02561611) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
funds | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 18 |
Unrestricted funds | 1,617,760 |
Restricted funds | 66,915 |
TOTAL FUNDS | 1,684,675 |
The financial statements were approved by the Board of Trustees and authorised for issue on |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 262,300 | (5,568 | ) |
Net cash provided by/(used in) operating activities | 262,300 | (5,568 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (18,491 | ) | (28,868 | ) |
Interest received | 8,573 | 1,564 |
Net cash used in investing activities | (9,918 | ) | (27,304 | ) |
Change in cash and cash equivalents in the reporting period |
252,382 |
(32,872 |
) |
Cash and cash equivalents at the beginning of the reporting period |
888,706 |
921,578 |
Cash and cash equivalents at the end of the reporting period |
1,141,088 |
888,706 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2023 | 2022 |
£ | £ |
Net income for the reporting period (as per the Statement of Financial Activities) |
205,267 |
62,378 |
Adjustments for: |
Depreciation charges | 32,590 | 34,313 |
Interest received | (8,573 | ) | (1,564 | ) |
Increase in stocks | (13,235 | ) | (21,080 | ) |
Decrease/(increase) in debtors | 42,752 | (65,852 | ) |
Increase/(decrease) in creditors | 3,499 | (13,763 | ) |
Net cash provided by/(used in) operations | 262,300 | (5,568 | ) |
2. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 888,706 | 252,382 | 1,141,088 |
888,706 | 252,382 | 1,141,088 |
Total | 888,706 | 252,382 | 1,141,088 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
The Children's Adventure Farm Trust Ltd is a company, limited by guarantee and registered in England and Wales. The company does not have share capital. |
The guarantors at 31 December 2023 are the Trustees in office at that date and detailed in the Trustees Report on page 7. Their liability in respect of the guarantee as set out in the Memorandum of Association is limited to £10 per guarantor. |
The company's registered number is 02561611 and its registered charity number is 1003675. The company's registered office address is Booth Bank Farm, Reddy Lane, Millington, Cheshire, WA14 3RE. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The Children's Adventure Farm Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the accounting policy note. |
After considering the role of The Children's Adventure Farm Trust Ltd within the wider community (described on pages 1-8 of the annual report), investment performance & return and risk management, the trustees have a reasonable expectation that the charity has adequate resources and cash flows to meet the required spending commitments for the foreseeable future. As at 31 December 2023, the charity had net assets of £1,889,942 (2022: £1,684,675), with a surplus during the year of £205,267 (2022: £62,378). The trustees believe that the Charity is well placed to manage all relevant risks and therefore continue to adopt the going concern basis of accounting in preparing these financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
There are currently no significant judgements and estimates applied by the Trust which are considered key to the preparation of the financial statements. |
Income |
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. |
Donations and grants |
Income from donations and grants, including capital grants, is included in income when these are received, except as follows: |
- | When donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred to those periods. |
- | When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met. |
- | When donors specify that donations and grants are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Income |
Donated goods and services |
Donated goods and services are recognised as income when the charity has control over the item, any conditions associated with the donated item 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), volunteers' time is not recognised and the Trustees' report gives more information about their contribution. |
On receipt, donated services and donated goods 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. |
Legacies |
Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. |
Income from fundraising |
Income from events is accounted for when received, together with a proportion of donor pledges received at the major event held each year. Facility hire income is accounted for when invoiced. |
Commercial trading activities |
Clothing and other items donated for resale through the charity's shop are included as incoming resources within activities for generating funds when they are sold. |
Intangible income |
Intangible income, which comprises donated goods and services, is included in income at a valuation which is an estimate of the financial cost borne by the donor where such cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by the third party. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Expenditure is classified under the following activity headings: |
- | Costs of raising funds comprise the costs of events organised to raise funds for the charity, the payroll costs of the charity's staff and their associated support costs. |
- | Expenditure on charitable activities includes the costs of providing holidays and related activities by the charity's staff and their associated support costs. |
- | Other expenditure represents those items not falling into any other heading. |
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Expenditure |
Allocation of support costs |
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trust's activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. |
Tangible fixed assets |
Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows: |
Freehold buildings - 2% per annum |
Fixtures, fittings and equipment - 20% per annum |
Computer equipment - 33.33% per annum |
Plant, machinery and motor vehicles - 25% per annum |
The residual values, estimated useful lives and depreciation method of tangible fixed assets are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
Stocks |
Stock comprises donated goods which are held for resale via charity auctions and donated goods which are to be used in the furtherance of the charity's objectives. Where practicable, donated goods are measured at fair value which, in the case of goods for resale, is the expected proceeds from sale less the expected costs of sale. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
Leasing commitments |
Rentals paid under operating leases are charged to the Statement of Financial Activities as incurred. |
Financial instruments |
The Trust 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. |
Pension costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | DONATIONS AND LEGACIES |
2023 | 2022 |
£ | £ |
Donations |
Legacies |
Grants |
Grants received, included in the above, are as follows: |
2023 | 2022 |
£ | £ |
Other grants | 20,250 | 67,000 |
4. | OTHER TRADING ACTIVITIES |
2023 | 2022 |
£ | £ |
Event income |
Shop income |
5. | INVESTMENT INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest |
6. | RAISING FUNDS |
Raising donations and legacies |
2023 | 2022 |
£ | £ |
Staff costs |
Rates and water |
Light and heat |
Telephone |
Sundries |
Motor and travel expenses | 208 | 1,075 |
Events | 175,065 | 209,763 |
Accountancy | 2,490 | 2,586 |
396,177 | 392,729 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 8) | Totals |
£ | £ | £ |
Provision of holidays and related activities |
639,653 |
10,722 |
650,375 |
8. | SUPPORT COSTS |
Governance |
Finance | costs | Totals |
£ | £ | £ |
Provision of holidays and related activities | 3,522 | 7,200 | 10,722 |
9. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Auditors' remuneration | 7,200 | 6,600 |
Depreciation - owned assets |
Hire of plant and machinery | 1,896 | 2,243 |
10. | TRUSTEES' REMUNERATION AND BENEFITS |
None of the trustees received remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
Bookkeeping, payroll and accounting services are provided by MBL (Business and Tax Advisers) Limited in which one of the Trustees is a director. Fees for this work amounted to £3,396 in the year (2022: £5,172). Included in creditors at the year end is as a balance relating to MBL in the amount of £nil (2022: £nil). |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | STAFF COSTS |
2023 | 2022 |
£ | £ |
Wages and salaries | 462,980 | 434,358 |
Social security costs | 33,977 | 35,779 |
Pension contributions | 11,406 | 11,107 |
Healthcare costs | 5,959 | 5,137 |
514,322 | 486,381 |
The Trust considers its key management personnel to comprise the Trustees and the Chief Executive. The total employment benefits including employer pension contributions of the key management personnel were £71,453 (2022: £69,205). |
One employee received emoluments in excess of £60,000 (2022: 1). |
The average number of employees during the year was 32 (2022: 31). |
12. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
funds | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Other trading activities |
Investment income |
Total |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Total |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward | 1,558,425 | 63,872 |
TOTAL FUNDS CARRIED FORWARD | 1,617,760 | 66,915 | 1,684,675 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Freehold buildings includes land which is not depreciated. |
14. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors |
Income tax recoverable - Gift Aid | 25,494 | 2,483 |
Prepayments and accrued income |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
17. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | MOVEMENT IN FUNDS |
Net | Transfers |
movement | between | At |
At 1.1.23 | in funds | funds | 31.12.23 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 1,617,760 | (77,278 | ) | 32,927 | 1,573,409 |
Fund raising & publicity | - | 46,574 | (46,574 | ) | - |
Charity shop | - | (13,647 | ) | 13,647 | - |
(44,351 | ) |
Restricted funds |
Increase Service | 66,915 | (382 | ) | - | 66,533 |
Capital developments | - | 250,000 | - | 250,000 |
249,618 |
TOTAL FUNDS | 205,267 | 1,889,942 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 559,955 | (637,233 | ) | (77,278 | ) |
Fund raising & publicity | 393,721 | (347,147 | ) | 46,574 |
Charity shop | 27,893 | (41,540 | ) | (13,647 | ) |
( |
) | (44,351 | ) |
Restricted funds |
Increase Service | 20,250 | (20,632 | ) | (382 | ) |
Capital developments | 250,000 | - | 250,000 |
( |
) | 249,618 |
TOTAL FUNDS | ( |
) | 205,267 |
Comparatives for movement in funds |
Net | Transfers |
movement | between | At |
At 1.1.22 | in funds | funds | 31.12.22 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 1,558,425 | 15,679 | 43,656 | 1,617,760 |
Fund raising & publicity | - | 63,673 | (63,673 | ) | - |
Charity shop | - | (20,017 | ) | 20,017 | - |
1,558,425 | 59,335 | - | 1,617,760 |
Restricted funds |
Increase Service | 63,872 | 3,043 | - | 66,915 |
TOTAL FUNDS | 1,622,297 | 62,378 | - | 1,684,675 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 638,046 | (622,367 | ) | 15,679 |
Fund raising & publicity | 348,986 | (285,313 | ) | 63,673 |
Charity shop | 28,193 | (48,210 | ) | (20,017 | ) |
1,015,225 | (955,890 | ) | 59,335 |
Restricted funds |
Increase Service | 93,101 | (90,058 | ) | 3,043 |
TOTAL FUNDS | 1,108,326 | (1,045,948 | ) | 62,378 |
A current year 12 months and prior year 12 months combined position is as follows: |
Net | Transfers |
movement | between | At |
At 1.1.22 | in funds | funds | 31.12.23 |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 1,558,425 | (61,599 | ) | 76,583 | 1,573,409 |
Fund raising & publicity | - | 110,247 | (110,247 | ) | - |
Charity shop | - | (33,664 | ) | 33,664 | - |
1,558,425 | 14,984 | - | 1,573,409 |
Restricted funds |
Increase Service | 63,872 | 2,661 | - | 66,533 |
Capital developments | - | 250,000 | - | 250,000 |
63,872 | 252,661 | - | 316,533 |
TOTAL FUNDS | 1,622,297 | 267,645 | - | 1,889,942 |
THE CHILDREN'S ADVENTURE FARM TRUST LTD |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 1,198,001 | (1,259,600 | ) | (61,599 | ) |
Fund raising & publicity | 742,707 | (632,460 | ) | 110,247 |
Charity shop | 56,086 | (89,750 | ) | (33,664 | ) |
1,996,794 | (1,981,810 | ) | 14,984 |
Restricted funds |
Increase Service | 113,351 | (110,690 | ) | 2,661 |
Capital developments | 250,000 | - | 250,000 |
363,351 | (110,690 | ) | 252,661 |
TOTAL FUNDS | 2,360,145 | (2,092,500 | ) | 267,645 |
19. | RELATED PARTY DISCLOSURES |
There were no related party transactions for the year ended 31 December 2023 other than that as disclosed in note 10. |