ADVENTURES OFFSHORE Charity Number: 1035015 ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2022
ADVENTURES OFFSHORE CONTENTS FOR THE YEAR ENDED 31 OCTOBER 2022 Page Legal & Administrative Information Trustees, report Independent Examinerfs Report Statement of Financial Acts'vities Detailed Profit and Loss Account Balan Sheet 10 Notes to the financial statements
ADVENTURES OFFSHORE LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 OCTOBER 2022 Charfty number 1035015 Principle Address Tolken The Lane Wesl Mersea Colchester Essex C05 8NT Chalr Andrew Black (appointed 19 March 2022) Trust• Adrian Slim - Trustee {resigned 19 March 2022} Freddie Crane- Trustee Jacqui Victory- District Commissioner lappoinled 7 March 20221 (resigned 31 October 20221 Kevyn Connelly - Trustee Iresigned January 2022} Mark Gowers- Trustee Mark Rendle - Secretary Paula- Anne Deighton - Trustee Stephen Edwards - Treasurer lappointed 10 January 20221 Steven Roys- Trustee Stuart Gibson - Scout District Commissioner (resigned) Indopondent Examiner Community360 Winsley's House High Street Colchesler Essex, C01 1UG Bankers Barclays
ADVENTURES OFFSHORE TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 The trustees are pleased to present their report and accounts for the year ending 31st October 2022. Objectlves and activltles The purpose of Adventures Offshore is to provide young people an opportunity to obtain and develop transferrable life skills that will conlnbute to their personal development and enable them to thrive in society. Use sailing as a medium to enhance young people's sense of purpose and self-esteem, not just to teach Ihem to sail. Create opportunities for personal development in a safe bul physically challenging environment and to encourage initiative and leadership skills. Provide the basis for a communal experience on board ship in which teamwork and co-operation are at least as important as self-reliance and individual fortitude. Develop the values of Integrity, Respect. Care and CoopeTrtion amongst our beneficiaries and to encourage understanding and tolerance of BelfS and ideas that may not coincide direclly with their own. Adventures Offshore meets the Charity Commission's public benefrt criteria under both Ihe advancement of education and the advancemenl of Citizenship or community development headings. Achlevernènts and perfomian¢e Despite continued public caution to mixing in groups as government Covid-19 restrictions were lifted, Ihe Charity enabled young beneficiaries to spend 716 nights at sea (2020121.. 589>. The beneficiaries learned the value5 of teamwoik, tolerance and fortitude in a challenging environment. These are life skills that will help them integrats and make a greater contribution to society as a whole. Seven people successfully undertook expeditions for their DofE Awards (2020121-. 81. Other beneficiaries have joined our young sea staff training scheme, which will enable them to provide similar experiences to future beneficiaries. Flnanclal revlew Summary In the three years to 2018119, the organization achieved consecutive years of growth and improved financial performance, with income more than doubling from £66k to £135k. Then Covid-19 hit, with the outcome and sailing was halted as a result, which led to a deficit of £47k in 2019120. followed by a surplus of £53k in 2020121 due to the partial r6sumption of sailing and generous Covid-19 support grants from ASTO and the Government. The result for the latest 2021122 season was a deficFt of £22k. Government Covid-19 restrictions were fully lifted during the sailing season and the trustees focused on delivering as many voyages for young people as possible. However, this only resulted in a slight uplift in voyage income, as the public continued to be cautious about mixing in groups.
ADVENTURES OFFSHORE TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 The trustees continued to protect the Gharity as a going concern by minimising discretionary expenditure, but also ensuring that the boals were well maintained for the subsequent season. In the first half of 2021, the Trustees announced a single redundancy. which reduced the wage bill by £22k compared to the prior year. This prudent approach means that the organisation is in a good financial posltion given the current environmenL Income Total income in 2020121 of £66k was £89k worse than last year12020121: £155k) and also worse than pr&covid {2018119.' £138k). Covid-19 restrictions were fully lifted by Ihe slart of the sailing season and cruise fees increased to £52k {2020121.' £45k), although these were still much lower than pr&covid {2018119'. £69k). Grants and donations were significantly lower at £13k (2020121.. £69k). A further £5k of grants were reiVed for our Maritsme Pathways and Training Scheme {2020121.' £20k), of which none was held in deferred income on the balance sheet at 31 October 2022. The scheme was successfijlly delivered during the 2022123 season. A Hammond Innes Bursary of £5k {2020121.' £4k) was received from the Associabon of Sail Training Organisations. Government Covid-19 restrictions were lifted. so there was no hjrther support towards salaries from Ihe govemmenys Coronavirus Job Retention Scheme (2020121: £44k) nor business support grants from Colchestsr Borough Council12020121.' £21k). Expendlture Discretionary expenditure continued to be minimised as we emerged from the pandemic. Salaries wer8 £22k better than lasl year due lo a single redundan¢y. Equipment, repairs and maintenance were £3k better than last year thanks to favourable rates from Suppliers and cost control by the refit-team. Volunteer travel expenses were £7k lower than last year, due to fewer claims. Insurance costs were back to normal; the prior year figure was £5k lower than usual due to the reversal in that year of an over-ac¢rual made in 2019120. Balance Sheet The balance sheet remains strong. The organisation wholly owns the two boats and the long-term leasehold on the Offi space. whilst continuing to operate without any loans, mortgages, or other long-term liabilities. Cash and investment reserves decreased by £20k during the year (2020121.. £71 k increase) due to sailing and donations & gifts remaining at pre-covid levels. The balance of £136k is considèred enough for the organisation to meet its financial commitments over the next e1ve months. ReseNe Pollcy The trustees aim to ensure that the charity works within its means and maintains a prudent level of reserves, sufficient to allow il to withstand unforeseen operational issues or cash flow disruption. An updaled cash reserves policy was agreed by the trustees during 2018119.
ADVENTURES OFFSHORE TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 Restricted cash reserves exist to allow the organisalion to offer funding assistance lo beneficiaries without having lo guarantee that a donation or grant has been sècured in advance. As most of the organisats'on's funding arrangements are singEe year deals, the truslees consider it prudent to hold beeen 60°/0 and 80410 of a typical season's donation income in reserves. This ensures that commitments can be reduced in an orderly manner if donations materially reduce. Free cash reserves exist to allow the organisation to meet short-teTh and emergency funding needs. Free cash reserves are calculated as the totsl of cash and liquid inveslmenls, less restricted cash reserves. The charity owns high value fixed assets (the boats) and reserves are required to pay for unforeseen repairs. Single equipment items can cost over £20k to replace. Free reserves are also required to miligate the risk of a significant period of booking cancellations and lost income. This is most likely to be due to major unforeseen repairs which take time to carry out, but could also be due to extreme weather, government travel advi or an epidemic disease. Noling Ihe significant risk of simultaneously having to repair the boats and cancel bookings, the trustees consider it is appropriate to hold the full cost of winding up the charity (estimated at £30,000) plus 750/0 10 1000/0 of annual cruise fee income in reserve. The actual reserves of £116,226 al 31 October 2022 are higher than the upper limit and exceed Ihe full Cost of winding up the charity. The trustees actively monitor the reserves to ensure the organisation continues as a going concern. The table below compares Offshore's actual reseNes at 31 October 2021 to the range set out in the reseNes policy. Free cash reseNes Restricted cash reserves Upper Llmlt Lower Llmlt Actual Reserves 104.628 38.258 85,971 28,694 116,226 (2020121: 134,057) 50,09012020121.. 52.576) Overall. the trustees consider that the charity has sufficient available financial SOurCeS to support Operations for Ihe coming financial year. As such, the trustees believe that the Charity is a going conrn and have prepared the accounts on that basis. Investment pollcy Free Reserves The free reserves are held as cash in accounts wilh minimal notice periods for withdrawal. Although the retums availablè in such accounts are poor, the trustees have assessed the risks we face and believe that it is necessary to be able to make immediate calls on the whole reseNe fund. Bursary Fund Circa 50¥0 of the bursary fund is invested in the COIF Charrf(ies Ethical Investment fund, managed by CCLA Invéstrnent Management. This is a diversified fund, investing circa 500/0 in overseas equities, 20 % in U.K. equities. and the remainder distributed equally across other asset classes. The Trustees do not anticipate calls on this fund in the near tem. The remainirsg bursary funds are held as cash in an immediate access current account.
ADVENTURES OFFSHORE TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 Principal Rlsk$ The tnjstees have identffied the major risks to which they believe the organisation is exposed,. these have been reviewed and systems have been established to mits'gats against them. The main areas of concern that have been identified are.. Accident at sea.. Sea staff are fully qualified, there are regular training days and a comprehensive set of manuals and processes that are continuously reviewed and monitored to manage safety at sea. The organisation has a marine accident insurance policy with Navigators & General. Significant vessel breakdown.. The is an ongoing regime of continuous maintenance refit inspections and planned replacements and stock of common parts. Crew shortage.. The charity is dependent upon the goodwill of unpaid volunteers. There is an ongoing programme of training young people (Young Sea Staff Stheme). Older volunteers are continually recruited by word of moLrth. Interruption to voyage income.. Example causes include vessel breakdown, crew shortage, ststutory suspension due to pandemic, etc. Active financial management and the reseThes policy mitigate this risk for a substsntial period. Reduction in grant and bursary income.. The reserves policy enables temporary respite to a short-term dip. The organisation works closely wilh exists'ng and potential supporters to try to align our activities with their specific and targeted aims. where they fit with our own charitable objectives. Prlnclple sources of funds Principal sources of income in a normal year are voyage fees and grants and bursaries from external bodies. See the financial review above for the spe¢ifi¢ 2021122 year. Structurèi governance and management The governing doojment is the Scout Association Royal charter of 1914 as arnended in 1953, 1984 and 1999. Adventures Offshore is an unincorporated association registered as an educational charity (No. 1035015). The Trustees are appointed in accordance wbth the Policy, Organisation and Rules of The Scout Association. Trnstees complete'Essential Informats'on for Executive Committee, training within the first 5 months of being appointed. The organisational structure consists of a board of trustees, primarily resF)onsible for governance, that has delegated limitèd powers neSSary for the day-tO•day adivity to subject matter experts via Operations. Finance and TSE (Training, Safety & Ethics) committees.
ADVENTURES OFFSHORE TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 Although il has only adult members, the organisation is recognised as a "distriGt" as part of 'Essex County. within The Scout Association. By order of the board of trustees. Adrian Slim, Scout DistriGt Commissioner and Acting Chair Chairman Board of Trustees
ADVENTURES OFFSHORE INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 OCTOBER 2022 I report on the accounts of Adventures Offshore for the year ended 31 October 2022 which are set out on pages 8 to 15. Respective responsibilities of trustees and examiner The Charity's Trustees are responsible for the preparation of the accounts. The Charity's Trustees consider that an audit is not required for this year (under section 144 (2} of the Charities Act 2011 (The Act) but that an independent examination is needed. It is my responsibility to.. Examine the accounts under section 145 of the Charities Act, To follow the prOdureS laid down in the General Directions given by the Charity Commissioners (under section 145(5}(b) of the Charities Act, and To stale whether particular matters have come to my attention. Basis of independent examiner's Statement My examination was Carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes considerations of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the accounts. Independent examiner's Statement In the course of my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect.. the accounting records were not kept in accordance with section 130 of the Charities Act- or the accounts did not accord with the accounting records., or the accounts did not comply with the applicable requirements conceming the form and content of the accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fairf view which is not a matter considered as part of an independenl examination. I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. David Courtier FMA4T AAT Community360 Winsley's House, High Street, Colchester, Essex Bfor nd on behalf of: Date ' 8103/14-
ADVENTURES OFFSHORE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2022 Unieslri¢ted Restrlcted funds funds 2022 Totsl 2021 Totsl Notes Incoming re$ourees Donatsons and legacies Investment income Incoming resources from charttable activities Total incoming rosources 1,945 183 52,841 54,968 10,944 12,889 183 52,841 65,912 110,007 44,820 10,944 ReurceS expended Cost of generating funds Cost of generating donations and lega¢ies Charitable activities Sail training scheme expenditure Total rasourcos frxppnded 102 74,537 74,537 11.588 86,125 86,125 107,611 107,712 Net loirtgolngvincoming resources 119,5691 {6441 {20,213} 47,118 Gain on investments 11.8411 11,841) 5.972 Net movement in funds 19,569 2,485 22,054 53,090 Fund balan¢e$ at 1 November 2021 236,996 52.575 289,571 236,481 Fund balances at 31 October 2022 217.427 50,090 267 517 289.571 The notes on pages 10 - 14 fomi an integral part of these financial statements.
ADVENTURES OFFSHORE DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2022 2022 2021 Incorne Donations and gifts Cruise fees Sundry sales and courses Annual scheme dinner reip1S CJRS scheme Covid grants Inte$t receNable 12,889 51.741 225 875 69,110 44,820 20,274 20,622 183 65,912 154,831 Expendlturo Salaries Equipment, sails. repairs and maintenance Food, fuel and cruise expenses Travel expenses Insurance - boat and travel net Insuran¢e- general Rates, light and heal Administration Annual scheme dinne¥ expenditure Fundraising expenses Bank charges 22,128 20,692 13,997 124 6,294 41 428 4,758 700 44,074 23,458 8,578 7,251 1,705 295 1861 5,267 102 288 90,931 70 69,232 69,232 90,930 Net operdtional {d•flcltysurplus before deprèelatlon 13,321) 63,900 Depreciation Gainlloss on investments {16,893} 11.841} {16,7821 5,972 Surplusl{doficttl for the y•ar after depreciation 22,054 53.090 The notes on pages 10 - 14 fomi an Integral part of these financial statements.
ADVENTURES OFFSHORE BALANCE SHEET AS AT 31 OCTOBER 2022 2022 2021 Notos Flxed a88ets Tangible assets 11 108.308 124.647 Current ass•ts Debtors Investments Cash at bank and in hand 12 6,748 29.837 136,479 173,064 2,836 31,678 154,956 189,469 Credltors: amounts falllng duo wlthln ono year 13 113,8541 {24,S451 Not curr•nt assets 159.209 164,924 Total assets188$ Current liabillties 267,517 289,571 Not assets 267,517 289 571 Funds Reslricled funds Unrestricted funds 14 50.090 217,427 267,517 52,575 236,996 289,571 The account5 were approved by the trustees on 12th March 2024 Signed Dale 12th March 2024 A Slim - Scout District Commissionef and Acting Chaim)an Slgned Dale 12th Mah 2024 S Edwards - Treasurer The notes on pages 10 - 14 fomi an integral part of these financial Statements. 10
ADVENTURES OFFSHORE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 1 Accountlng poll¢le$ 1.1 Basis of accounting The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. ststement on Recommended Praclise applicable lo charities preparing their a¢¢ounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} (effective 1 January 20191- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The financial ststements do not include a cash flow statement because the charity, as a small reporting entity, is exempl from the requirement lo prepare such a statement under Financial Reporting Standard 1 "Cash flow Statements" 1.2 Incoming rosources Donabons. legacies and other forms of voluntary income are recognised as incoming $OUrceS when receivable, except insofar as they are incapable of financial measurement. Voluntary income also includes income tsx recoverable. The Charity receNes the benefit of work carried out by volunteers. and receives the use of facilities and equipment without ¢harge. No value is pla¢ed on these rtems. Revenue grants are credited lo the income and expenditure account as receNed unless related to a spe¢ifi¢ purpose, when they are placed in $tricted funds until used. 1.3 Resources expended Expenditure is included in the accounts on an accruals basis.VAT is recoverable by the oharity and is included with the expenditure to which it relates. Support costs which could not be attributed directty lo activitses are apportioned equally beeerS activities. 1.4 Tang5ble fixed as$ets and depreciatSon Tangible fixed assets are slated al cost less accumulated depreciation. Depreciation is provided at rates calculated to wnle off the $1 less estimated residual valLte of each asset over its expected useful life as follows.. Freehold land is not depreciated Freehold buildings Yacttts Offi¢e equipmenuother equipment 20k strauhl line 30A straight line 20% straight line 1.5 Taxatlon The organisation is a registered ¢h8rity and. as such is exempt from corporation tsx. 1.6 Investments Realised gains and losses are taken lo the Income and Expenditure Account. Investment inwme has been taken in to account on the basis of the due dale of payment. Short term investments shown within current assets are inve51ed in COIF Funds Accumulation Units and are included al market value al the year end. The dIffenCe from the value al the start of the rIOd is reflected in unrealised profit and loss during the year. 11
ADVENTURES OFFSHORE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 1.7 Forelgn cuiren¢y translatlon Transactions denominated in foreign currencies are recorded at the rale ruling at the dale of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into steding at the rates of exchange ruling at the balan sheet date. All differences are included in net outgoing resources. 1.8 Fund structur• Unrestricted income funds are general funds that are available fof use al the Trustee's discretion in furtheran of the objectives of the charity. Restricted income fvnds are those donated for use in a particular area or for specific purposes, the use of which is $trIcted to that area or purpose. 2 Donatlons and legacles Unr¢8trl¢ted Restricted Funds Funds 2022 Total 2021 Total Donations and gifts Grants CJRS Scheme 1.945 10,944 12,889 69,110 20,622 20,274 1,945 12,889 3 Investment incomo Unr•strlct•d Restricted Funds Funds 2022 Total 2021 Totsl Interest receNable 183 183 183 183 4 Incoming resources from charitable •ctlvttles Unrestricted Rostrlcted Funds Funds 2022 Totsl 2021 Total Cruise fees Sundry sales and courses Annual scheme dinner receipts 51,741 22S 875 52,841 51,741 225 875 44.820 52,841 44,820 S Total rosouT¢es expended Staff Depreclatlon Other Costs costs Grant Fundlng 2022 Total 2021 Total C¢)Sts of geTreratlng funds Costs of generating donations and legacies 102 Ch¥rltable actlvllles Sail training scheme- expenditure Activities undertaken directly 22,128 Grant fundin9 of activities 16.893 35,516 74,537 11,588 103,181 4,430 11,588 22.128 16,893 11,S88 86.125 107,712 12
ADVENTURES OFFSHORE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 6 Grants payable 2022 2021 Sail training scheme expenditure 11,438 11,438 4,430 4.430 7 Galn on Investmonts 2022 2021 COIF Investrnent fvnd - bursary 1,841 5,972 5,972 8 Trustees None of the trustees received any remuneration dunng the year, but some of the trustees were reimbursed a total of £812 for Iravelling, office and orltise expenses12021 £4,011). Trustee insurance was paid for in the year totalling £300 for the financial year12021 £2351. 9 Employees Number of employees The average monthly number of employees during the year was.. 2022 Number 2021 Numbor Full time employees Part time employees Total Employment Costs 2022 2021 Wages and salaries There were no employees whose annual remuneratson was £60,000 or more. 10 Key management pernonnel During the year, £6,126 was paid12021 £33,445} to key management personnel. The remunerati'on of key management personnel is de¢ided upon and aulhorised by the trustees. 22,128 44,074 13
ADVENTURES OFFSHORE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 11 Tangible flxed assets Land and building$ Yachts Office Othor equlpment equlpment Total Cost At 1 November 2021 Additions Disposal At 31 October 2022 50,000 478,624 524 554 7,117 536,265 554 50,000 478,624 1,078 7.117 536,819 Depreclatlon At 1 November 2021 Charge for the year Disposal At 31 October 2022 25,833 1,000 380,992 14,359 524 111 4,269 1,423 411,618 16.893 26,833 395,351 635 5.692 428,511 Net book v•lu¢ At 31 Octobor 2022 23,167 24,167 83.273 1.425 108,308 124,647 At 31 October 2021 97,632 2,848 The building 'Tolken' was last valued by the trustees as al 1 January 1996 at £50.000. 12 Debtors 2022 2021 Other debtors Prepayments and accrued income 5,595 1,153 6.748 1,661 1,175 2.836 13 Crgdttors: amounts falling due wlthln one year 2022 2021 Other creditors Deferred In¢ome Accruals 61 12,368 1,425 23,704 841 14 Restrlcted Funds The income funds of the chaiity include reslricled fvnds mprising the following unexpended balances of donations and grants held on Ifust for specific purposes. Movements in fvnds Balance at 1 Income ExpenditureGainsllosseg Balance at November on 31 O¢tober 2021 Investments 2022 Bursary fund Maritsme pathways & training Bursary fund total Young vol. training 38,829 10,947 49.775 2.800 5,470 5.473 10,944 111,4381 {1,841} 31,020 16,420 47,441 2,650 111,4381 11501 11,588 {1,841} 14
ADVENTURES OFFSHORE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 15 Related partl•s Dufing the year, there We no related parties. 16 Golng con¢ern The charity is operating on a going concem basis. 17 Previous Yeaf Ststement of Finan¢lal Actlvltle8 Unrestrictsd Restrlcted funds funds 2021 Total Incomlng resources Incoming resources from generatsng funds.. Donations and Legacies Investment Income Incoming resources from charrtable activities Total Incoming rosour¢es 94,631 15,376 110,007 44,820 139,454 44,820 154,831 15,376 Resourcos 0xnded Cost of generating funds Cost of generating Donations arKI Legacies Charitsble Act'vilies Sail Training Scheme Expenditure Total resources expended 102 102 103,181 103,282 4,430 107,611 107 712 Net outgolng resour¢es 36,172 10,946 47,118 Other recognised gains and losses Previous year adjustments Gains (Lossesl on investment assets Not movement in funds 5,972 16,918 5,972 53,090 36,172 Fund balances at 1 November 2020 200,824 35,657 236,481 Fund balances at 31 October 2021 236 996 289 571 This note shows you the stalement of financial activitses as il was in the accounting year 31 October 2021 for comparative pufposes. 18 Non4dlustln9 events after the reporting pgriod On or around the 3rd week of February, after being launched at the annual maintenance marina, both boats each suffered a separate flooding incident. The root causes We different, but the result was similar. The damage is currently being assessed and with the insurer. At this stage, we anticipate that neither boat will be available to fuKIl voyages during al least the first four to Six weeks of the sailing season, when bookings are historically 5i9ht due lo the colder and better weather. 1S