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2025-12-31-accounts

Company registration number 02561611 (England and Wales)

Charity registration number 1003675 (England and Wales)

THE CHILDREN’S ADVENTURE FARM TRUST LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

THE CHILDREN’S ADVENTURE FARM TRUST LTD

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees P A Collier
A Coverdale
N M Graham
C E Sandland
P J H Scotson
P J Gowing
N A Fitton
R Brooks
P Cohen
Senior management I Eccles Chief Executive
Country of incorporation United Kingdom 02561611
(England and Wales)
Charity registration England and Wales 1003675
Registered office Booth Bank Farm
Reddy Lane
Millington
Cheshire
WA14 3RE
Auditor Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU

THE CHILDREN’S ADVENTURE FARM TRUST LTD

CONTENTS

Page
Chair's Statement 1
Trustees' report 2 - 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 25

THE CHILDREN’S ADVENTURE FARM TRUST LTD

CHAIR'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2025

2025 was a year of significant progress for The Children's Adventure Farm Trust. We welcomed 22,655 children to the Farm, a 35% increase on the previous year and our highest ever, with every visit provided entirely free of charge. More than 75% of those visiting were identified as having Special Educational Needs and Disabilities, with many also living in areas of social deprivation.

Our residential programme ran at capacity throughout the year. Seasonal and specialist programmes continued to grow, reflecting both increasing demand and our ability to respond to it. The dedication of our staff, and the 1,393 volunteers who gave 16,957 hours of their time, made this possible.

The financial statements set out in this report reflect an organisation in good health. This year we invested deliberately in our facilities and programme capacity, reflecting our confidence in the direction of travel and our commitment to being ready for the growth ahead.

Looking ahead, our five-year strategy sets out our ambition to welcome 150,000 children to the Farm by 2030. The foundations are in place. We are grateful to everyone whose generosity and commitment makes this work possible.

..............................

C E Sandland

Chair

21/05/2026 Date: .........................

THE CHILDREN’S ADVENTURE FARM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2025

The trustees present their annual report and financial statements for the year ended 31 December 2025.

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 Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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)".

Objectives and activities

Objectives and aims

The Children's Adventure Farm Trust is a charity creating free, joyful experiences – primarily day visits, residential breaks and seasonal programmes - for children from the North West of England and North Wales whose lives are shaped by life-limiting conditions, serious illness, disability, caring roles or social disadvantage.

Based on a welcoming farm in Cheshire, CAFT gives children vital time to play, belong and just be children in an accessible, inclusive environment. All activities are delivered from our site at Booth Bank Farm near Altrincham.

Adventure is central to everything we do. For every child who visits, adventure takes a different form — and this is encouraged, nurtured and celebrated.

The charity is financed entirely through voluntary income — donations from individuals, charitable trusts and grant-making bodies, corporate partnerships, fundraising events, challenges and our charity shop in Knutsford. We receive no statutory funding.

The trustees are satisfied that the charity's activities deliver clear public benefit, in line with the Charity Commission's guidance under Section 17 of the Charities Act 2011.

Public benefit

The Trustees have considered the 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.

Achievements and performance

Significant activities and achievements against objectives

Fundraising activities

In 2025, CAFT provided 22,655 visits for children and families — a 35% increase on 2024 and our highest ever. Over 75% of children visiting were identified as having Special Educational Needs and Disabilities (SEND), with many also living in areas of social deprivation.

Our residential programme ran at capacity throughout the year, with 1,152 children enjoying a three-day residential break. Seasonal programmes welcomed 3,240 children at Easter, 1,767 at CAFTfest, 2,258 at Halloween and 3,741 at Christmas. A further 9,817 children visited for Fun Days, and 680 attended our Forest School programme.

Every visit was free of charge.

Like many organisations, we absorbed the impact of increased employer National Insurance contributions and Living Wage this year. This is reflected in our staffing costs but was managed within our overall financial position, and our commitment to our staff team remains absolute.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Fundraising

Our fundraising programme continued to develop across several income streams. Events and challenges were our largest source of income in 2025, driven in particular by the success of our Great Tuk Tuk Adventure, alongside the Grand Ball, Ladies Lunch, cycle rides and treks.

Charitable trusts are ordinarily our largest single funding stream and remain a vital and consistent source of support, enabling us to plan with confidence.

Corporate partnerships grew through team-building activities, holiday sponsorships and volunteering days that provide both meaningful experiences for corporate teams and essential practical support for our maintenance and facilities programme.

Individual giving and in-kind donations continue to reflect the depth of support within our community.

We are members of the Fundraising Regulator and follow the Institute of Fundraising Code of Practice in all our activity. We do not use agencies or third parties for face-to-face or telephone fundraising campaigns. We never sell or share supporter data with third parties.

Financial review

Financial position

The total incoming resources for the year were £1,188,487 (2024: £1,037,542) whilst expenditure amounted to £1,189,266 (2024: £1,157,843), producing a net deficit of £779 (2024: deficit of £120,301) for the year. At the end of 2025 the Trust maintained net assets of £1,768,862 (2024: £1,769,641), with £1,036,423 (2024: £1,141,523) held in liquid funds.

The Trustees are satisfied with the charity's financial health.

Our financial position remains strong. This year we chose to invest in our facilities and programme capacity, a deliberate decision that reflects the board's confidence in our strategy and our future.

Diverse Income Streams

Our fundraising approach reflects the depth and breadth of our community connections:

Charitable Trusts remain our largest contributors, providing substantial funding that enables us to plan with confidence.

Events and Challenges continue as a vibrant cornerstone of our fundraising success, with the Annual Grand Ball and Ladies Lunch creating memorable occasions while generating significant income, and our challenge events including successful Tuk Tuk trips providing both great fundraising and relationship building with our supporters.

Community Initiatives have flourished, with local schools partnering with us not only for fundraising but also through valuable work experience opportunities for pupils—embodying our Belonging value by creating meaningful connections.

Corporate Partnerships have grown through innovative approaches, from team-building activities that provide essential voluntary support to holiday sponsorships for visiting children.

Individual Giving continues to demonstrate the heartfelt commitment of our supporters, alongside in-kind donations ranging from everyday essentials to special treats that enhance every child's CAFT experience.

The results for the year are shown in the Statement of Financial Activities.

Reserves policy

The board maintains free reserves equivalent to at least six months of anticipated expenditure. This provides essential security against unexpected costs or income shortfall and enables the charity to plan and invest with confidence. This position was maintained throughout 2025, and the trustees consider it appropriate given the charity's income profile and strategic ambitions.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Investment policy

Surplus funds are invested only in board-approved vehicles with established financial institutions, prioritising security and appropriate returns. Professional advice is sought as required.

Plans for future periods

In 2025 we published Our Way Forward, our five-year strategy to 2030. Our ambition is to welcome 150,000 children to the Farm by 2030. The strategy is built around five priorities: enhancing our Facilities, growing our Capacity, raising our Profile, developing our Income, and building our Membership community.

Progress in 2025 — including the launch of our membership scheme, a full board of nine trustees, and significant growth in visits — gives us confidence that we are well placed to deliver on that ambition.

Structure, governance and management

CAFT is a company limited by guarantee with no share capital, governed by its Memorandum and Articles of Association. The directors of the company serve as its trustees for the purposes of charity law.

Following the establishment of our membership scheme in September 2025, the charity now has a wider membership community in addition to its directors, reflecting our commitment to building a broad and representative base of support for CAFT's future.

The board meets at least quarterly. The Chief Executive is appointed by the trustees to manage day-to-day operations, with delegated authority for operational matters including finance, employment and programme delivery.

A full board of nine trustees was in place throughout the year, providing strong strategic leadership and support to the CEO and team, publishing Our Way Forward — our five-year strategy to 2030 — and overseeing the successful launch of our membership scheme in September 2025.

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:

P A Collier

A Coverdale

N M Graham C E Sandland

P J H Scotson

P J Gowing

N A Fitton R Brooks P Cohen

Recruitment and appointment of trustees

New trustees are appointed by ordinary resolution of the company's members. All new trustees undertake an induction covering their legal responsibilities, the charity's governing documents, its strategy and recent financial performance, and the work of the organisation in practice.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

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 finances, employment and operational activities.

On 6 August 2024, a new board was appointed with two transformative priorities that directly support our "Our Way Forward" strategy:

  1. Expanding our Membership Foundation : Establishing a larger, more diverse board of trustees to bring fresh perspectives and broader expertise to guide CAFT's future

  2. Building our Membership Community : Creating a robust membership structure for the charity that authentically represents the families and children CAFT supports, strengthening both our governance and our impact

These governance developments directly advance our fifth Foundation Five commitment—Building our Membership— creating a community of passionate advocates who'll help shape CAFT's future while ensuring our decision-making remains closely connected to the needs of those we serve.

Induction and training of 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 of 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.

Remuneration policy

No trustee receives remuneration or other financial benefit from their work with the charity. Trustee expenses and related party transactions are disclosed in notes 11 and 22 to the financial statements.

Other matters

Risk management

The trustees maintain a risk register which is reviewed at each board meeting. Principal risks identified include financial sustainability, given our reliance on voluntary income; safeguarding, which is addressed through robust policies, regular training and DBS checks for all staff and volunteers working with children; and health, safety and food hygiene, maintained through current accreditations and staff training.

The trustees are satisfied that appropriate controls are in place to manage these risks to an acceptable level.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Our volunteers

CAFT runs because of people. Our dedicated, talented and hardworking staff team are at the heart of everything we deliver — their skill, warmth and commitment shape every child's experience at the Farm, and we are enormously grateful for everything they bring to this organisation.

In 2025, 1,393 volunteers gave 16,957 hours of their time — the equivalent of around 12.5 full-time posts and an estimated saving to the charity of £370,000.

Volunteers contribute across every area of our work: programme delivery, grounds and facilities maintenance, the Knutsford charity shop, fundraising events and administration. We are deeply grateful to each of them.

We also thank our president, patrons, and ambassadors for their support, profile, and belief in our mission, which help us reach further and tell our story more widely. CAFT would not be what it is without the whole community of people who choose to give their time, energy and voice to it.

Statement of trustees' responsibilities

The trustees, who are also the directors of The Children’s Adventure Farm Trust Ltd 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:

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 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.

Auditor

In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the company will be put at the Annual General Meeting.

The trustees' report was approved by the Board of Trustees.

.............................. P A Collier Trustee 21/05/2026 Date: .............................................

THE CHILDREN’S ADVENTURE FARM TRUST LTD

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE CHILDREN’S ADVENTURE FARM TRUST LTD

Opinion

We have audited the financial statements of The Children’s Adventure Farm Trust Ltd (the ‘charity’) for the year ended 31 December 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 financial statements section of our report. We are independent of the charity 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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE CHILDREN’S ADVENTURE FARM TRUST LTD

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

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

THE CHILDREN’S ADVENTURE FARM TRUST LTD

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE CHILDREN’S ADVENTURE FARM TRUST LTD

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the following area: the timing of the recognition of revenue. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local taxation legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included Data Protection Regulations.

As a result of performing the above, we identified the timing of the recognition of revenue as the key audit matter related to the potential risk of fraud.

In addition to the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// 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 charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Lucas (Senior Statutory Auditor)

For and on behalf of Mitchell Charlesworth (Audit) Limited, Statutory Auditor

Accountants 24 Nicholas Street Chester CH1 2AU 21/05/2026 Date: .........................

Mitchell Charlesworth (Audit) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted
funds
2025
Notes
£
Income and endowments from:
Donations and legacies
3
624,042
Other trading activities
4
528,411
Investments
5
26,984
Other income
6
200
Total income
1,179,637
Expenditure on:
Raising funds
7
482,504
Charitable activities
8
697,912
Total expenditure
1,180,416
Net expenditure
(779)
Transfers between funds
16,000
Net movement in funds
10
15,221
Reconciliation of funds:
Fund balances at 1 January 2025
1,437,108
Fund balances at 31 December
2025
1,452,329		 Restricted
funds
2025
£
8,850
-
-
-
8,850
-
8,850
8,850
-
(16,000)
(16,000)
332,533
316,533		 Total
Unrestricted
funds
2025
2024
£
£
632,892
623,072
528,411
372,767
26,984
13,591
200
-
1,188,487
1,009,430
482,504
428,291
706,762
727,352
1,189,266
1,155,643
(779)
(146,213)
-
9,912
(779)
(136,301)
1,769,641
1,573,409
1,768,862
1,437,108		 Restricted
funds
2024
£
28,112
-
-
-
28,112
-
2,200
2,200
25,912
(9,912)
16,000
316,533
332,533		 Total
2024
£
651,184
372,767
13,591
-
1,037,542
428,291
729,552
1,157,843
(120,301)
-
(120,301)
1,889,942
1,769,641

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

BALANCE SHEET

AS AT 31 DECEMBER 2025

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
The funds of the charity
Restricted income funds
17
Unrestricted funds
18		 2025
£
18,062
2,780
1,036,423
1,057,265
(48,347)		 £
759,944
1,008,918
1,768,862
316,533
1,452,329
1,768,862		 2024
£
11,140
4,427
1,141,523
1,157,090
(66,333)		 £
678,884
1,090,757
1,769,641
332,533
1,437,108
1,769,641

21/05/2026

The financial statements were approved by the trustees on .........................

.............................. P A Collier Trustee

THE CHILDREN’S ADVENTURE FARM TRUST LTD

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

Notes
Cash flows from operating activities
Cash absorbed by operations
23
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed assets
Investment income received
Net cash (used in)/generated from investing activities
Net cash generated from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
£
(118,526)
200
26,984		 £
(13,758)
(91,342)
-
(105,100)
1,141,523
1,036,423		 2024
£
-
-
13,591		 £
(13,070)
13,591
-
521
1,141,088
1,141,523

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

Charity information

The Children’s Adventure Farm Trust Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Booth Bank Farm, Reddy Lane, Millington, Cheshire, WA14 3RE. The company does not have share capital.

The guarantors at 31 December 2025 are the trustees in office at that date and detailed in the trustees report. Their liability in respect of the guarantee as set out in the Memorandum of Association is limited to £10 per guarantor.

1.1 Accounting convention

Basis of preparation

The financial statements have been prepared under the historical cost convention, in accordance with the Companies Act 2006, 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 £.

1.2 Going concern

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.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

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.

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.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

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 (FRS102), 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.

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.

Income from fundraising

Income from events are 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.

1.5 Expenditure

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 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:

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

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.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets costing £1,000 or more 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:

Freehold land and buildings 2% straight line Plant, machinery and motor vehicles 25% reducing balance Fixtures, fittings and equipment 20% reducing balance

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 statement of financial activities when the change arises.

1.7 Impairment of fixed assets

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).

1.8 Stocks

Stock comprises of donated goods to be used as Christmas presents for the children. This stock is valued at an estimate of its cost which is arrived at by referencing to retail sales of other similar items.

The Charity also operates a shop, however donated goods received for sale in the shop are not valued as it is impractical to do so.

1.9 Cash and cash equivalents

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.

1.10 Financial instruments

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

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.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

Basic financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.12 Employee benefits

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.

1.13 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.

2 Critical accounting estimates and judgements

There are currently no significant judgements and estimates applied by the trust which are considered key to the preparation of the financial statements.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Donations and gifts
622,149
8,850
Other
1,893
-
624,042
8,850		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
630,999
623,072
28,112
1,893
-
-
632,892
623,072
28,112		 Total
2024
£
651,184
-
651,184

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

4 Income from other trading activities

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Event income 448,483 313,158
Shop income 79,928 59,609
Other trading activities 528,411 372,767
5 Income from investments
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Interest receivable 26,984 13,591
6 Other income
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Net gain on disposal of tangible fixed assets 200 -
7 Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2025 2024
£ £
Fundraising and publicity
Rates and water 23,788 18,247
Telephone 4,219 3,937
Motor and travel expenses - 169
Events 208,924 211,942
Staff costs 245,573 193,996
482,504 428,291

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

8 Expenditure on charitable activities

Provision of Provision of
holidays and holidays and
related related
activities activities
2025 2024
£ £
Direct costs
Staff costs 398,133 386,321
Depreciation and impairment 37,466 31,845
Hire of Plant and Machinery 1,229 1,226
Rates and Water 16,122 18,753
Light and Heat 27,357 29,088
Postage and Stationery 18,335 17,732
Advertising 3,328 1,286
Holiday Costs 74,636 98,236
Christmas Parties 20,215 9,368
Maintenance and Refurbishment 80,273 100,431
Motor and Travel Expenses 10,100 8,518
Legal and Professional 4,059 11,941
Accountancy 5,372 4,880
696,625 719,625
Share of support and governance costs (see note 9)
Support 10,137 9,927
706,762 729,552
Analysis by fund
Unrestricted funds 697,912 727,352
Restricted funds 8,850 2,200
706,762 729,552
9 Support costs allocated to activities
2025 2024
£ £
Bank charges 2,137 2,927
Governance costs 8,000 7,000
10,137 9,927
Analysed between:
Provision of holidays and related activities 10,137 9,927

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

10 Net movement in funds 2025 2024
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 8,000 7,000
Depreciation of owned tangible fixed assets 37,466 31,759
Profit on disposal of tangible fixed assets (200) -

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

Trustees' expenses

In the year, expenses totalling £19 for maintenance costs were reimbursed to one trustee. There were no trustees' expenses paid for the year ended 31 December 2025.

12 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
The number of employees whose annual remuneration was more than £60,000 is as
follows:
£70,000 - £80,000		 2025
Number
40
2025
£
643,706
2025
Number
1		 2024
Number
38
2024
£
580,317
2024
Number
-

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

12 Employees

(Continued)

Remuneration of key management personnel

The Trust considers its key management personnel to comprise of the Trustees and the Chief Executive. The total employee benefits including employer pension contributions of the key management personnel was as follows:

2025
£
Aggregate compensation
75,231
Tangible fixed assets
Freehold land
and buildings
Assets under
construction
Plant, machinery
and motor
vehicles
Fixtures, fittings
and equipment
£
£
£
£
Cost
At 1 January 2025
1,396,053
150,462
193,545
511,136
Additions
-
-
4,920
113,606
Disposals
-
-
(7,170)
(10,424)
At 31 December 2025
1,396,053
150,462
191,295
614,318
Depreciation and impairment
At 1 January 2025
876,263
-
186,878
509,171
Depreciation charged in the year
26,093
-
2,589
8,784
Eliminated in respect of disposals
-
-
(7,170)
(10,424)
At 31 December 2025
902,356
-
182,297
507,531
Carrying amount
At 31 December 2025
493,697
150,462
8,998
106,787
At 31 December 2024
519,790
150,462
6,667
1,965
Freehold buildings includes land which is not depreciated.
Stocks
2025
£
Finished goods and goods for resale
18,062		 2024
£
60,370
Total
£
2,251,196
118,526
(17,594)
2,352,128
1,572,312
37,466
(17,594)
1,592,184
759,944
678,884
2024
£
11,140

13 Tangible fixed assets

14 Stocks

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

15 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2025
£
101
2,679
2,780		 2024
£
1,801
2,626
4,427

16 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2025
£
12,931
7,324
12,539
15,553
48,347		 2024
£
11,744
29,237
17,471
7,881
66,333

17 Restricted funds

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.

At 1 January Incoming Resources Transfers At 31 December Transfers At 31 December
2025 resources expended 2025
£ £ £ £ £
Increase Service 66,533 - - - 66,533
Capital Developments 250,000 - - - 250,000
POM Charitable Trust - 8,850 (8,850) - -
Pond Project 16,000 - - (16,000) -
332,533 8,850 (8,850) (16,000) 316,533

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

17
Restricted funds
Previous year:
At 1 January
2024
£
Increase Service
66,533
Capital Developments
250,000
Pom Charitable Trust
-
Pond Project
-
Festive Visit
-
316,533		 Incoming
resources
£
-
-
9,912
16,000
2,200
28,112		 Resources
expended
£
-
-
-
-
(2,200)
(2,200)		 (Continued)
Transfers At 31 December
2024
£
£
-
66,533
-
250,000
(9,912)
-
-
16,000
-
-
(9,912)
332,533		 (Continued)
Transfers At 31 December
2024
£
£
-
66,533
-
250,000
(9,912)
-
-
16,000
-
-
(9,912)
332,533
332,533

1. Increase Service

This fund comprises monies received to increase service provision for children with life limiting conditions.

2. Capital Developments

This fund comprises monies received to fund a proposed new development. If this development is not progressed, then there is provision for the monies to be used on other projects.

3. Pom Charitable Trust

This fund comprises monies received for residential visits. Expenditure took place out of unrestricted funds during the year. The amount received has therefore been transferred out of the restricted fund and into unrestricted funds at the year end.

4. Pond Project

This fund comprises monies received for the refurbishment of the existing pond within the sensory garden. This fund should be classified as Unrestricted, therefore has been transferred to unrestricted funds.

5. Festive Visit

This fund comprises monies received for a festive visit for a number of children.

18 Unrestricted funds

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.

At 1 January
2025
£
Sports Hall Roof works
-
General funds
1,437,108
1,437,108		 Incoming
resources
Resources
expended
£
£
-
-
1,179,637
(1,180,416)
1,179,637
(1,180,416)		 Transfers At 31
£
91,000
(75,000)
16,000		 December
2025
£
91,000
1,361,329
1,452,329

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

18 Unrestricted funds (Continued)
Previous year: At 1 January Incoming Resources Transfers At 31 December
2024 resources expended 2024
£ £ £ £ £
General funds 1,573,409 1,009,430 (1,155,643) 9,912 1,437,108

Designated funds

An amount has been designated from unrestricted funds for Sports Hall Repair Works.

19 Analysis of net assets between funds

Unrestricted
funds
2025
£
At 31 December 2025:
Tangible assets
759,944
Current assets/(liabilities)
692,385
1,452,329
Unrestricted
funds
2024
£
At 31 December 2024:
Tangible assets
678,884
Current assets/(liabilities)
758,224
1,437,108		 Restricted
funds
2025
£
-
316,533
316,533
Restricted
funds
2024
£
-
332,533
332,533		 Total
2025
£
759,944
1,008,918
1,768,862
Total
2024
£
678,884
1,090,757
1,769,641

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

20 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2025
£
10,140
4,560
14,700		 2024
£
14,430
12,000
26,430

21 Events after the reporting date

There are no events after the reporting date to disclose.

22 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Peter Scotson, trustee, owns a business called Kids Disco Parties, which was paid £6,950 (2024: £7,280) for entertainment services. At the year end £5,900 was within the balance of accrued expenses.

Nicola Graham, trustee, is director of Saferchildren Ltd and £1,100 (2024: nil) was paid in respect of staff training services.

Paula Cohen, trustee, is director of Taylory Ltd and £125 (2024: nil) was paid in respect of staff training services.

Ian Eccles, CEO was paid expenses of £272 (2024: nil) for visits costs, and Richard Sandland, husband of a trustee, and a volunteer, was paid £25 (2024: nil) for Maintenance costs.

THE CHILDREN’S ADVENTURE FARM TRUST LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

23
Cash absorbed by operations
Deficit for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in stocks
Decrease in debtors
(Decrease)/increase in creditors
Cash absorbed by operations		 2025
2024
£
£
(779)
(120,301)
(26,984)
(13,591)
(200)
-
37,466
31,759
(6,922)
34,175
1,647
24,892
(17,986)
29,910
(13,758)
(13,156)

24 Analysis of changes in net funds

The charity had no material debt during the year.

REPORT TO THE TRUSTEES ON THE MATTERS ARISING FROM THE AUDIT OF:

The Children’s Adventure Farm Trust Ltd FOR THE YEAR ENDED 31 DECEMBER 2025

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Introduction

In accordance with International Standards on Auditing (UK), we are pleased to present our Audit Summary Memorandum arising from the audit of the financial statements of The Children’s Adventure Farm Trust Ltd for the year ended 31 December 2025.

The purpose of this report is to highlight any key audit and accounting issues which have come to our attention during the audit. It is also prepared to assist the Trustees in their consideration of the financial statements and to share our recommendations for areas of improvement. It also covers any future issues for the Trustees’ consideration.

Scope of work

The financial statements were reviewed to ensure they 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) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

This report includes information which has been provided by, or is based upon discussions with management and staff, in addition to the independent findings of our work.

Conclusion

We are pleased to report that subject to the discussion of the matters raised in this report, and the completion of our post balance sheet events review, it is our intention to issue an unqualified report on the accounts.

Adjustments to the financial statements

A schedule of the adjustments is on Appendix 1A.

Misstatements not adjusted

A schedule of unadjusted misstatements is on Appendix 1B. You have confirmed that having regard to the size and qualitative nature of these misstatements that they should not be adjusted.

Significant deficiencies in the accounting and internal control systems

As you are aware from our letter of engagement, our audit procedures are designed towards testing the accounting and internal control systems in operation upon which we have based our assessment of the risk of material misstatement within the accounts.

Our recommendations are on Appendix 2.

The Children’s Adventure Farm Trust Limited

Audit Summary Memorandum Year ended 31 December 2025

Letter of Representation

During the audit, various representations were made to us by management and the Trustees and we ask you for written confirmation of these in a letter of representation.

Qualitative aspects of the entity’s accounting and financial reporting practice

The records required adjustments which would ordinarily be made throughout the year or during the year-end process.

Independence

Our audit was performed in accordance with our Audit Planning Strategy, International Standards on Auditing (UK) and Ethical Standards.

In accordance with those requirements, we are required to consider any threats to our independence arising from the provision of non-audit services, our long-term association with you or other threats.

In our opinion, there are adequate safeguards in place that deal with any potential threats to our independence in the conduct of the audit. There are no changes in circumstances that have arisen since the issue of our Audit Strategy Memorandum.

Other matters

We take this opportunity of expressing our thanks to your staff for their assistance during our work.

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Please note that this report has been prepared for the sole use of The Children’s Adventure Farm Trust Limited. It must not be disclosed to third parties, quoted or referred to wholly or in part without our prior written consent. No responsibility is assumed by us to any other person.

If you have any queries please contact either Andrew Hague or Emerald Thomas in the first instance.

Mitchell Charlesworth (Audit) Limited

24 Nicholas Street Chester CH1 2AU

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Appendix 1A: Schedule of Adjusted misstatements – The Children’s Adventure Farm Trust Ltd

SOFA Balance Sheet Effect on
(Deficit)/Surplus
DR CR DR CR
Deficit per draft accounts (105,551)
1 CCTV system donated by RedDam
Donations 20,000 20,000
Fixtures & Fittings additions 20,000
Depreciation on donated asset (SOFA) 4,000 (4,000)
Depreciation charge in year 4,000
2 Asset disposals agreed with management
Cost of disposal 17,594
Gain/loss on disposal 17,594 17,594 -
Depreciation eliminated on disposal 17,594
3 Gifts in kind
F&F additions 2,500
Various revenue expenditure accounts 74,449 (74,449)
Gifts in kind 76,949 76,949
4 Clear VAT debtor
VAT control account 920
Expenditure 920 (920)
The Children’s Adventure Farm Trust Limited The Children’s Adventure Farm Trust Limited
Audit Summary Memorandum
Year ended 31 December 2025
SOFA Balance Sheet Effect on
(Deficit)/Surplus
DR CR DR CR
5 Capitalise ‘Projects’ costs, and depreciation charged
F&F additions 88,616
Expenditure 88,616 88,616
Depreciation 2,954 (2,954)
Depreciation charged in year 2,954
6 Correction of depreciation rates maintained in Xero
Depreciation 1,543 (1,543)
Depreciation charged in year 1,543
7 Clear historic Other Debtor
Other Debtors 343
Expenditure 343 343
8 Clear historic PAYE difference
PAYE control account 2,731
Wages costs 2,731 2,731
101,460 206,233 131,784 27,011 (104,773)
Deficit per Financial Statements (779)

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Appendix 1B: Schedule of unadjusted misstatements – The Children’s Adventure Farm Trust Ltd

SOFA Balance Sheet Effect on
(Deficit)/Surplus
DR CR DR CR
Deficit per Financial Statements (779)
1 Correct bank balance
Bank 493
Expenditure 493 (493)
2 Collections related to Christmas appeals
Income 2,245 2,245
Accrued income 2,245
3 Forest School – credit for Autumn dated 12/01/2026
Income 900 (900)
Debtors 900
Potential surplus per Financial Statements 73

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Appendix 2: Recommendations

Matters arising Risk and potential impact Recommendation Management response

Prepayments and accruals are Agreed that this is not necessary Revenue values may be under or Prepayments and accruals are not posted to Xero calculated and posted to Xero at with the small amount to accrue and overstated least at quarterly intervals prepay. During our purchases testing we noted that for Verification of expense details is purchases evidenced by receipts rather than difficult, and although individual Scan all receipts into Xero at the Noted to consider capacity for invoices do not always have the receipt attached. amounts are trivial, in time of spend. incorporating into the process accumulation, the value of items without receipt attached has the potentially to be significant. During our income testing we noted that Potential misallocation of income Retain a copy of an email or other Email threads and remittances are documentation is not routinely attached to entries in Xero and inability to trace bank document which shows donor retained on our server, however in Xero and evidence of amount and donor/source receipts to the source. confirmation of the amount being there is occasionally no summary of are not clearly seen or available in some cases. given. details on one piece of documentation. Noted to action. During our audit testing of payroll, we noted that for Potential disputes/litigation due to The Trust should ensure that all some employees, the contract or other evidence of lack of documented terms and contracts and contract changes are Noted to action salary/pay rate was not available on the personnel conditions. This could also lead to formally documented and retained file. Non-compliance with internal on file. policies and regulatory requirements.

The Children’s Adventure Farm Trust Limited
Audit Summary Memorandum
Year ended 31 December 2025
Appendix 3: Recommendations (Continued)
Matters arising Risk and potential impact Recommendation Management
response
The movement on the restricted Agreed this wasn’t
funds is incorrectly stated in the The ‘tracking’ function on Xero is used so that necessary with
Restricted funds are not indicated in Xero accounts; unauthorised any expenditure out of restricted funds is the current small value
expenditure takes place out of the correctly monitored. and number of restricted
restricted funds transactions.
No proper control over fixed assets Fixed asset register is maintained – with Agreed that the final
No fixed asset register is maintained – no proper information going to
the Trustee board in relation to		 additions properly identified. It is the legal
responsibility of the Trustees to safeguard the		 register will be
maintained going
fixed assets assets. The final register generated based on a forward.
Xero report will be provided to management.
The audit adjustments made in the prior year audit
had not been posted on to the accounting system.		 Discrepancies exist between
managements accounting records
and the signed financial		 Any adjustments resulting from the audit are
posted on to Xero in a timely fashion.		 Agreed MC to post these
in Xero
from current audit
statements.
A formal reconciliation of the bank current account
is not taking place.		 The bank feeds into Xero, however
transactions can be posted by
journal into the bank codes in
Xero. Reconciliation would ensure		 Management to reconcile bank accounts
monthly, to present the reconciliation, Trial
Balance and copy bank statements to the
Board for Trustee approval with the		 Noted to action
identification of any such entries. management accounts.
Directors appointed in December 2024 have been
updated on the Charities Commission website, but
not Companies House.		 Breach of statutory duties, and
non-compliance with the
Companies Act 2006. Companies
House verification of officers’		 Appoint the directors at Companies House
immediately and ensure that all officer
changes noted in board meetings are actions
to be completed by the following meeting or		 Directors have been
appointed.
identities cannot take place. sooner.

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Appendix 4: Upcoming changes to FRS 102

On 27 March 2024, the FRC issued amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The effective date for most amendments is for periods beginning on or after 1 January 2026. The amendments in relation to supplier finance arrangements will be effective from 1 January 2025. The amendments may be early adopted. These amendments seek to provide greater consistency and alignment to internation accounting standards including:

Revenue: The amendments to Section 23 are based on the principles of IFRS 15 and introduce a single five-step model for revenue recognition and measurement for all contracts with customers.

The new revenue model does not necessarily result in different accounting outcomes – for many contracts, the amount and timing of revenue recognition may be the same as under the extant standard.

Step 1 – Identify the contracts

Step 2 - Identify the performance obligations Step 3 - Determine the transaction price Step 4 - Allocate the transaction price to the promises in the contract Step 5 – Recognise revenue when the entity satisfies a promise

The amendments include simplifications compared to IFRS 15 such as an accounting policy choice on accounting for costs of obtaining a contract, providing a choice on whether to adjust revenue for the time value of money when consideration is received in advance, and allowing for more judgement over allocation of discounts or variable consideration to performance obligations. In addition, the FRC has aligned the disclosure requirements to IFRS for SMEs.

Transition requirements allow existing FRS 102 reporters to apply the changes either fully retrospectively or retrospectively but with the cumulative effect of initial application presented as an adjustment to equity at the date of initial application.

Leases: The amendments to Section 20 are based on the principles of IFRS 16 and introduce the on-balance sheet accounting treatment for operating leases, as a rightof-use (RoU) asset and lease liability.

For lessees, the amendments result in the distinction between operating leases and finance leases being removed and leases are instead recognised on the balance sheet as a right-of-use assets with a corresponding lease liability.

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

In the profit and loss account operating lease expenses are replaced with depreciation of the right-of-use asset and interest on the lease liability, leading to front-loaded expense profiles and higher Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) throughout the lease. Cash flow statements will also be impacted, with fixed lease payments now being split between an interest portion and repayment of the principal outstanding on the lease liability classified as a financing cash flow.

Short-term leases of less than 12 months, and low value leases will be exempted.

The amendments simplify the IFRS 16 requirements related to discounting of lease liabilities by permitting the use of the obtainable borrowing rate instead of the incremental borrowing rate. Other simplifications include a simpler approach to recognising gains and losses on sale and leaseback transaction and reduces the number of situations in which lease modification required a revised discount rate.

Lessor accounting remains relatively unaffected.

Transition provisions require the adjustments at the date of initial application. Comparatives should not be restated; instead, any cumulative effect of applying the amendments is recognised as an adjustment to the opening balance of retained earnings.

Other changes to FRS 102:

Concepts and pervasive principles – The amendments to Section 2 introduce a revised definition of assets and liabilities shifting the focus onto rights and obligations rather than the flow of expected economic benefit and introduces a greater focus on control including guidance on how to determine whether control exists.

Supplier finance arrangements – The amendments to Section 7 describe the characteristics of supplier financing arrangements and set out the qualitative and quantitative information that an entity would need to disclose for these arrangements. The amendments are effective for annual reporting periods beginning on or after 1 January 2025, with early adoption permitted. At the initial application of the revised disclosure, it is not required to disclose the related comparative information for the preceding reporting period.

Fair value measurements – FRC has moved the requirements for fair value measurements from an Appendix to Section 2 into a new Section 2A. The new Section 2A provides a new definition of fair value, under which liabilities are measured on the basis of the value at which they could be transferred rather than settled. Transition provisions require existing FRS 102 reporters to apply Section 2A from the date of initial application.

The Children’s Adventure Farm Trust Limited Audit Summary Memorandum Year ended 31 December 2025

Financial instruments – The amendments to Section 11 and Section 12 introduce additional disclosure requirements about amounts arising from expected losses for those entities that have made an accounting policy choice to apply the recognition and measurement provisions of IFRS 9 and restrict the ability to newly-adopt the accounting policy choice to apply the recognition and measurement provisions of IAS 39.

Business combinations and goodwill – The amendments to Section 19 include additional guidance on identifying the acquirer in a business combination and on determining whether payments to former owners or employees are contingent consideration or payment for future services, and additional disclosure requirements in order to provide relevant information to users. Transition provisions do not require existing FRS 102 reporters to re-assess the accounting of any business combination which took place prior to the date of initial application unless the initial accounting for the business combination is not complete at that date.

Share based payments – The amendments clarify that instruments issued in a business combination in exchange for control of the acquiree are not within the scope of Section 2, and that equity instruments granted to employees of the acquiree in their capacity as employees are in scope of Section 26. It also clarifies that cancellation, replacements and modifications of the share-based payments arrangements as result of a business combination are accounted for following the requirements of Section 26, and requirements for measuring the fair value of liabilities arising from a cash-settled share-based payment transaction and for settlement of an equity-settled share-based payment transaction by the entity transferring cash or other assets have been added.

Income tax – The amendments to Section 29 explain how to account for uncertainty in accounting for income taxes. Transition provisions allow the entity to apply the new requirements either fully retrospectively or retrospectively with the cumulative effect recognised in equity at the date of initial application.

Specialised activities – The amendments to Section 34 include clearer description of when resources from non-exchange transactions should be recognised and how they should be measured, and additional guidance on how to determine whether an asset meets the definition of a heritage asset, on what amounts should be included in the cost of a biological asset for agricultural activities, and on the accounting of service concession arrangements.

Mitchell Charlesworth (Audit) Limited 24 Nicholas Street Chester CH1 2AU

21/05/2026

Dear Sirs

This letter is provided in connection with your audit of the accounts of The Children’s Adventure Farm Trust for the year ended 31 December 2025 for the purpose of expressing an opinion as to whether the accounts give a true and fair view of the results and financial position of the company and have been prepared in accordance with the Companies Act 2006 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

We confirm that the following representations are made to the best of our knowledge and belief, having made such inquiries of management and staff as we considered necessary to satisfy ourselves that each of the following representations can properly be made.

General

We have fulfilled our responsibilities as directors, as set out in the terms of your engagement letter dated 28 February 2025 under the Companies Act 2006, for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you.

All accounting records and relevant information have been made available to you for the purpose of your audit and all transactions undertaken by the company have been properly recorded in the accounting records and are reflected in the accounts.

All other records and related information, including minutes of all management and shareholders meetings, have been made available to you. We have provided unrestricted access to persons within the entity from whom you have deemed it necessary to request information.

We confirm that the accounts are free of material misstatements, including omissions.

We believe that the unadjusted misstatements identified during the audit and shown in the Audit Summary Memorandum are immaterial both individually and in aggregate to the accounts as a whole.

Internal Control and Fraud

We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud. We have disclosed to you our assessment of the risk that the accounts may be materially misstated as a result of fraud.

We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of affecting the entity involving management or employees who have a significant role in internal control or others where fraud could have a material effect on the accounts.

We have also disclosed to you all information in relation to allegations of fraud, or suspected fraud affecting the entity’s accounts communicated by current or former employees, analysts, regulators or others.

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Laws and Regulations

We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the company conducts its business and which could affect the accounts.

The company has complied with all aspects of its contractual agreements that could have a material effect on the accounts in the event of non-compliance.

Accounting Estimates

Significant assumptions used by ourselves in making accounting estimates, including those measured at fair value, are reasonable.

Assets and Liabilities

The company has satisfactory title to all assets, and there are no liens or encumbrances on the company’s assets except as disclosed in the accounts.

We have recorded or disclosed, as appropriate, all liabilities both actual and contingent, and have disclosed in the notes to the accounts all guarantees given to third parties.

The carrying value and where relevant the fair value measurements and classification of assets and liabilities are properly reflected in the accounts and there are no plans or intentions that may materially alter this.

Loans and Arrangements

The company has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilities (including loans, quasi loans or credit transactions) to us, nor to guarantee or provide security for such matters.

Legal Claims

We have disclosed all known actual or possible litigation and claims that have been, or are expected to be received and such matters, as appropriate, have been properly accounted for and disclosed in the accounts.

Related Parties

Related party relationships and transactions have been appropriately accounted for and disclosed in the accounts. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters that require disclosure in order to comply with the requirements of company law or accounting standards.

Subsequent Events

All events since the balance sheet date which require disclosure or which would materially affect the amounts in the accounts have been adjusted or included in the accounts.

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Going Concern

We believe that the company’s accounts should be prepared on a going concern basis on the grounds that the current and future sources of funding or support will be more than adequate for the company’s needs. We have considered a period of twelve months from the date of approval of the accounts.

We confirm that the disclosures in the accounting policies are an accurate reflection of the reasons for our consideration that the accounts should be drawn up on a going concern basis.

We acknowledge our legal responsibility regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware.

We have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that you are aware of that information.

Yours faithfully

Peter Collier Chair of Trustees