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2023-10-31-accounts

ADVENTURES OFFSHORE Charity Number: 1035015

ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023

ADVENTURES OFFSHORE

CONTENTS FOR THE YEAR ENDED 31 OCTOBER 2023

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Page
Legal & Administrative Information 1
Trustees' report 2 - 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Detailed Profit and Loss Account 9
Balance Sheet 10
Notes to the financial statements 11 - 14
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ADVENTURES OFFSHORE

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 OCTOBER 2023

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Charity number 1035015
Principle Address Tolken
The Lane
West Mersea
Colchester
Essex
CO5 8NT
Chair Andrew Black (resigned 16 August 2023)
Adrian Slim - Trustee (appointed 1 October 2023)
Trustees
Freddie Crane - Trustee
Mark Gowers - Trustee
Mark Rendle - Secretary
Paula- Anne Deighton - Trustee
Stephen Edwards - Treasurer
Steven Roys - Trustee (resigned 4 September 2023)
Independent Examiner Community360
Winsley's House
High Street
Colchester
Essex, CO1 1UG
Bankers Barclays
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1

ADVENTURES OFFSHORE

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2023

The trustees are pleased to present their report and accounts for the year ending 31st October 2023.

Objectives and activities

The purpose of Adventures Offshore is to provide young people an opportunity to obtain and develop transferrable life skills that will contribute 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 them to sail.

Create opportunities for personal development in a safe but 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 Cooperation amongst our beneficiaries and to encourage understanding and tolerance of Beliefs and ideas that may not coincide directly with their own.

Adventures Offshore meets the Charity Commission's public benefit criteria under both the advancement of education and the advancement of citizenship or community development headings.

Achievements and performance

"The charity enabled young beneficiaries to spend 937 nights at sea (2021/22: 716). The beneficiaries learned the values of teamwork, tolerance and fortitude in a challenging environment. These are life skills that will help them integrate and make a greater contribution to society as a whole.17 people successfully undertook expeditions for their DofE Awards (2021/22: 7). Other beneficiaries have joined our Young Sea Staff training scheme, which will enable them to provide similar experiences to future beneficiaries."

Financial review

Summary

In the three years to 2018/19, the organisation achieved consecutive years of growth and improved financial performance, with income more than doubling from £66k to £135k. Then Covid-19 hit, and government restrictions caused sailing to be halted, which led to a deficit of £47k in 2019/20, followed by a surplus of £53k in 2020/21 due to the partial resumption of sailing and generous Covid-19 support grants from ASTO and the Government, but then a deficit of £22k in 2021/22 during which Government Covid-19 restrictions were fully lifted and these support grants stopped.

The result for the latest 2022/23 season was a deficit of £20k. This slight improvement on last year was driven by an increase in cruise fees, which was partially reduced by the effects of high levels of cost inflation and a provision for a potential over-claim of input VAT.

The trustees continued to protect the charity as a going concern by minimising discretionary expenditure, but also ensuring that the boats were well maintained for the subsequent season.

This prudent approach means that the organisation is in a good financial position given the current environment.

2

ADVENTURES OFFSHORE

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2023

Income

Total income in 2022/23 of £80k was £14k better than last year (2021/22: £66k) but also worse than precovid (2018/19: £138k).

Covid-19 restrictions were fully lifted by the start of the previous sailing season and cruise fees continued to slowly improve to £73k (2021/22: £52k).

Grants and donations were broadly static at £12k (2021/22: £13k). Bursaries and grants were received from the Association of Sail Training Organisations, the Stelios Philanthropic Foundation, Thomas Miller and the Worshipful Company of Shipwrights.

Expenditure

Discretionary expenditure continued to be minimised. Equipment, repairs and maintenance were £4k better than last year thanks to favourable rates from suppliers and cost control by the refit-team. Food, fuel and cruise expenses were £4k higher due to high inflation on food and increased volumes of sailing. Training schemes were £2k higher than last year, due to delivery of the Maritime Pathways and Training Scheme (MPaTS). Administration costs were £14k worse than last year due to a provision for the potential repayment to HMRC of input VAT which may have been overclaimed.

Balance Sheet

The balance sheet remains strong. The organisation wholly owns the two boats and the long-term leasehold on the office space, whilst continuing to operate without any loans, mortgages, or other long-term liabilities.

Cash and investment reserves remained unchanged during the year (2021/22: £20k decrease) as income was sufficient to cover costs excluding depreciation. The balance of £136k is considered enough for the organisation to meet its financial commitments over the next twelve months.

Reserve Policy

The trustees aim to ensure that the charity works within its means and maintains a prudent level of reserves, sufficient to allow it to withstand unforeseen operational issues or cash flow disruption.

An updated cash reserves policy was agreed by the trustees during 2018/19.

3

ADVENTURES OFFSHORE

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2023

Restricted cash reserves exist to allow the organisation to offer funding assistance to beneficiaries without having to guarantee that a donation or grant has been secured in advance. As most of the organisation’s funding arrangements are single year deals, the trustees consider it prudent to hold between 60% and 80% 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-term and emergency funding needs. Free cash reserves are calculated as the total of cash and liquid investments, less restricted cash reserves. The charity owns two 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 mitigate 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 advice or an epidemic disease. Noting the 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 75% to 100% of annual cruise fee income in reserve. The actual reserves of £136,565 at 31 October 2023 are higher than the upper limit and exceed the 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 reserves at 31 October 2023 to the range set out in the reserves policy.

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|||| |---|---|---| |Free cash reserves|Restricted cash reserves| |£|£| |Upper Limit|104.628|38,258| |Lower Limit|85,971|28,694| |Actual Reserves|136,565 (2021/22: 116,226)|29,697 (2021/22: 50,090)|

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Overall, the trustees consider that the charity has sufficient available financial resources to support operations for the coming financial year. As such, the trustees believe that the charity is a going concern and have prepared the accounts on that basis.

Investment policy

Free Reserves

The free reserves are held as cash in accounts with minimal notice periods for withdrawal. Although the returns available 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 reserve fund.

Bursary Fund

Circa 50% of the bursary fund is invested in the COIF Charities Ethical Investment fund, managed by CCLA Investment Management. This is a diversified fund, investing circa 50% in overseas equities, 50% 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 term. The remaining bursary funds are held as cash in an immediate access current account.

4

ADVENTURES OFFSHORE

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2023

Principal Risks

The trustees have identified the major risks to which they believe the organisation is exposed; these have been reviewed and systems have been established to mitigate 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: There 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 Scheme). Older volunteers are continually recruited by word of mouth.

Interruption to voyage income: Example causes include vessel breakdown, crew shortage, statutory suspension due to pandemic, etc. Active financial management and the reserves policy mitigate this risk for a substantial period.

Reduction in grant and bursary income: The reserves policy enables temporary respite to a short-term dip. The organisation works closely with existing and potential supporters to try to align our activities with their specific and targeted aims, where they fit with our own charitable objectives.

Principle 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 specific 2022/23 year.

Structure, governance and management

The governing document is the Scout Association Royal charter of 1914 as amended in 1953, 1984 and 1999.

Adventures Offshore is an unincorporated association registered as an educational charity (No. 1035015).

The Trustees are appointed in accordance with the Policy, Organisation and Rules of The Scout Association.

Trustees complete 'Essential Information for Executive Committee' training within the first 5 months of being appointed.

The organisational structure consists of a board of trustees, primarily responsible for governance, that has delegated limited powers necessary for the day-to-day activity to subject matter experts via Operations, Finance and TSE (Training, Safety & Ethics) committees.

5

ADVENTURES OFFSHORE

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2023

Although it has only adult members, the organisation is recognised as a “district” as part of “Essex County” within The Scout Association.

By order of the board of trustees.

A Slim - Scout District Commissioner Chairman Board of Trustees

6

ADVENTURES OFFSHORE

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 OCTOBER 2023

I report on the accounts of Adventures Offshore for the year ended 31 October 2023 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:

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:

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 FMAAT AATQB for and on behalf of: Community360 Winsley’s House, High Street, Colchester, Essex Date 31/01/2025

7

ADVENTURES OFFSHORE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2023

Notes
Incoming resources
Donations and legacies
2
Investment income
3
Incoming resources from charitable activities
4
Total incoming resources
Resources expended
Charitable activities
Sail training scheme expenditure
5
Total resources expended
Net (outgoing)/incoming resources
Gain on investments
7
Net movement in funds
Fund balances at 1 November 2022
Fund balances at 31 October 2023		 Unrestricted
funds
£
2,950
1,204
73,980
78,135
77,628
77,628
507
-
507
217,427
217,934		 Restricted
funds
£
9,516
-
-
9,516
30,370
30,370
(20,854)
461
(20,394)
50,090
29,696		 2023
Total
£
12,466
1,204
73,980
87,651
107,998
107,998
(20,347)
461
(19,887)
267,517
247,630		 2022
Total
£
12,889
183
52,841
65,912
86,125
86,125
(20,214)
(1,841)
(22,055)
289,571
267,516

The notes on pages 11-14 form an integral part of these financial statements.

8

ADVENTURES OFFSHORE

DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 OCTOBER 2023

Income
Donations and gifts
Cruise fees
Sundry sales and courses
Annual scheme dinner receipts
CJRS scheme
Covid grants
Interest receivable
Expenditure
Salaries
Equipment, sails, repairs and maintenance
Food, fuel and cruise expenses
Training courses
Travel expenses
Insurance - boat and travel net
Insurance - general
Rates, light and heat
Administration
Annual scheme dinner expenditure
Donations paid
Bank charges
Net operational (deficit)/surplus before
depreciation
Depreciation
Gain/(loss) on investments
Surplus/(deficit) for the year after depreciation		 £
£
£
£
12,466
12,889
72,642
51,741
360
225
978
875
-
-
-
-
1,204
183
87,651
65,912
25,048
22,128
16,464
20,692
18,502
13,997
3,273
477
124
6,519
6,294
-
41
588
428
19,061
4,758
1,068
700
105
-
-
70
,
91,104
69,232
(91,104)
(69,232)
(3,453)
(3,321)
(16,893)
(16,893)
461
(1,841)
(19,887)
(22,054)
2023
2022

The notes on pages 11-14 form an integral part of these financial statements.

9

ADVENTURES OFFSHORE

BALANCE SHEET AS AT 31 OCTOBER 2023

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Investments
Cash at bank and in hand
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Net assets
Funds
Restricted funds
14
Unrestricted funds		 £
£
91,415
2,905
30,298
135,963
169,165
(12,951)
156,215
247,630
247,630
29,696
217,934
247,630
2023		 £
£
108,308
6,748
29,837
136,479
173,063
(13,854)
159,209
267,517
267,517
50,090
217,427
267,517
2022

The accounts were approved by the trustees on 24th January 2025

Signed
Signed		 Date
A Slim - Scout District Commissioner
Date
S Edwards - Treasurer		 29/01/2025
29/01/2025

The notes on pages 11 - 14 form an integral part of these financial statements.

10

ADVENTURES OFFSHORE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

1 Accounting policies

1.1 Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement on Recommended Practise 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.

The financial statements do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1 "Cash flow statements".

1.2 Incoming resources

Donations, legacies and other forms of voluntary income are recognised as incoming resources when receivable, except insofar as they are incapable of financial measurement. Voluntary income also includes income tax recoverable.

The charity receives the benefit of work carried out by volunteers, and receives the use of facilities and equipment without charge. No value is placed on these items.

Revenue grants are credited to the income and expenditure account as received unless related to a specific purpose, when they are placed in restricted funds until used.

1.3 Resources expended

Expenditure is included in the accounts on an accruals basis.VAT is recoverable by the charity and is included with the expenditure to which it relates.

Support costs which could not be attributed directly to activities are apportioned equally between activities.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life as follows:

Freehold land is not depreciated Freehold buildings 2% straight line Yachts 3% straight line Office equipment/Other equipment 20% straight line

1.5 Taxation

The organisation is a registered charity and, as such is exempt from corporation tax.

1.6 Investments

Realised gains and losses are taken to the Income and Expenditure Account. Investment income has been taken in to account on the basis of the due date of payment.

Short term investments shown within current assets are invested in COIF Funds Accumulation Units and are included at market value at the year end. The difference from the value at the start of the period is reflected in unrealised profit and loss during the year.

11

ADVENTURES OFFSHORE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

1.7 Foreign currency translation

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

1.8 Fund structure

Unrestricted income funds are general funds that are available for use at the Trustee's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

2
Donations and legacies
Donations and gifts
3
Investment income
Interest receivable
4
Incoming resources from charitable activities
Cruise fees
Sundry sales and courses
Annual scheme dinner receipts
5
Total resources expended
Staff
Depreciation
costs
£
£
Support costs
Sail training scheme -
expenditure
Activities undertaken directly
25,048
16,893
Grant funding of activities
-
-
25,048
16,893
6
Grants payable
MPaTS
Sail training scheme expenditure		 Unrestricted
Funds
£
2,950
2,950
Unrestricted
Funds
£
1,204
1,204
Unrestricted
Funds
£
72,642
360
978
73,980
Other
costs
£
35,687
-
35,687		 Restricted
Funds
£
9,516
9,516
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
-
-
Grant
Funding
£
-
30,370
30,370		 2023
Total
£
12,466
12,466
2023
Total
£
1,204
1,204
2023
Total
£
72,642
360
978
73,980
2023
Total
£
77,628
30,370
107,998
2023
£
20,420
9,950
30,370		 2022
Total
£
12,889
12,890
2022
Total
£
183
183
2022
Total
£
51,741
225
875
52,841
2022
Total
£
74,537
11,588
86,125
2022
£
-
11,438
11,438

12

ADVENTURES OFFSHORE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

7 Gain on investments

Gain on investments
COIF Investment fund - bursary		 2023
£
461
461		 2022
£
(1,841)
(1,841)

8 Trustees

None of the trustees received any remuneration during the year, but some of the trustees were reimbursed a total of £897 for travelling, office and cruise expenses (2022 £812).

9 Employees

Number of employees

The average monthly number of employees during the year was:

Full time employees
Part time employees
Total
Employment costs
Wages and salaries		 2023
Number
-
2
2
2023
£
25,048		 2022
Number
-
2
2
2022
£
22,128

There were no employees whose annual remuneration was £60,000 or more.

10 Key management personnel

During the year, no remuneration was paid to key management personnel (2022: £6,126), as the only person in a key management role left during 2022. The remuneration of key management personnel is decided upon and authorised by the trustees.

11 Tangible fixed assets

Tangible fixed assets
Land and
Yachts
Office
Other
Total
buildings
equipment
equipment
£
£
£
£
£
Cost
At 1 November 2022
50,000
478,624
1,078
7,117
536,819
Additions
-
-
-
-
-
Disposal
-
-
-
-
-
At 31 October 2023
50,000
478,624
1,078
7,117
536,819
Depreciation
At 1 November 2022
26,833
395,351
635
5,692
428,511
Charge for the year
1,000
14,359
443
1,091
16,893
Disposal
-
-
-
-
-
At 31 October 2023
27,833
409,710
1,078
6,783
445,404
Net book value
At 31 October 2023
22,167
68,914
-
334
91,415
At 31 October 2022
23,167
83,273
443
1,425
108,308
The building 'Tolken' was last valued by the trustees as at 1 January 1996 at £50,000.

13

ADVENTURES OFFSHORE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023

12 Debtors
Other debtors
Prepayments and accrued income
13 Creditors: amounts falling due within one year
Other creditors
Deferred income
Accruals		 2023
£
1,324
1,581
2,905
2023
£
6,280
3,324
3,347
12,951		 2022
£
5,595
1,153
6,748
2022
£
61
12,368
1,425
13,854

14 Restricted Funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes.

Bursary fund
Maritime pathways & training
Bursary fund total
Young vol. training
Engine replacement fund		 Balance at 1
November
2022
£
31,020
16,420
47,440
2,650
-
50,089		 Income
ExpenditureGains/losses
on
investments
£
£
£
4,016
(8,774)
461
4,000
(20,420)
-
8,016
(29,194)
461
-
(1,176)
-
1,500
-
-
9,516
(30,370)
461
Movements in funds		 Balance at
31 October
2023
£
26,722
-
26,722
1,474
1,500
29,696

15 Related parties

During the year, there were no related parties.

16 Going concern

The charity is operating on a going concern basis.

14