Charity registration number 1057920 Company regSslratlon numljer 03211438 (England and Wale51 CHALLENGE ADVENTURE CHARITIES ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CHALLENGE ADVENTURE CHARITIES LEGAL AND ADMINISTRATIVE INFORMATION Trusto0s Mr S G Mason-Elliott Mr T E Mason-Elliolt Charity number 1057920 Company number 03211438 R•glstered offl Millbank Wharf Millbank Street Soulhamplon Hampshlre S014 SAG Indèpondont ¢xamln•r Fiander Tovell Limited Stag Gates House 63164 Th& Avenue Soulhampton Hampshire S0171XS CHALLENGE ADVENTURE CHARITIES CONTENTS Page Trustees. Ipport Ind8p8ndent exatnlner's report Stslemenl of financial activlties Balance sheet Noles lo the flnan¢lal 81al8m8nl8 CHALLENGE ADVENTURE CHARITIES TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 Th8 Irust88s pr8sent Ih8ir annual report and financial statements lor Iha y8ar end8d 31 March 2024. The fin8nei81 ststemeni$ have been prepared in 8c¢ord8n¢e with the 8¢¢0unb"ng poli¢ies set out in note I to the fin8nci81 slatetnenls and cotnply wilh the Cotnpanies Act 2006 and 'Accounling and Reporting by Charities." Slaternenl ol Recorntnended Practicp applicable to charitie5 preparinq Iheir accounts in accofdance with the Finanelal Reporting Standard applicable In th8 UK ar(1 Republic of Ireland IFRS 1021. leffectbve 1 January 20191. Oblg¢tlve$ and a¢llvStl&s The principal a¢tivily of Ihe company throughout the year was lo raise charity funds through org8nisaiion of cycling events. A¢h19V9monts ancl porfomian¢g The trustee5 were delighled that the charity able lo hold a SUC￿Ssful event in the financial year, The Vosge5 Ghallenge Vlas o well supported event Ihot rgsed o signifi¢anl amount of money for ¢hority. Flnan¢lal rovlew The dgficil ol Ihg company for th$ ygar was £10,84712023 surplus of £3.4581. The trusteps are pleesed to announce that 011 monies raised by individuol porii¢ipgnts by way of sponsorship will continue to be dislribulpd to charity. The invesfvenl policy of the company is lo distribute $pon$orship incorne al the eartiesl opportunity ond therefore il dges not invest funds on a long lerm bosi9. Fund$ Iiorn sponsorship èccwe bank inlg19s1 until they are donalgd lo th* respects've chan￿'e$. The reserves fund repre5en15 the unrestricted fund5 ari51ng from past operating results. 11 also represents the free cash r9s8ni8s of th8 charity, as th8r8 ar• no fix8d ass•ls. 11 is th8 policy of lh8 charity to di5tribul8 all moni8s raised by par￿cipant8 by way ol sponsorshlp Incom8 and do so at th• 8arti8st opportunlty, such that Ih8s8 funds aré not r8s8rwèd. Resarv8s al 31 March 2024 of £26,766 rèprèsent the èxeèss ol eorporate èvènl sponsorshlp, Èntry lè•$ from participants and bank intarèst comparèd to Ovèfhaads. The Iiustgas hava èxaminad tha rèquirèm8nt lo maintain Iraa rès8rvès and concludad Ihal it is appropriat8 to build resarves and concluded Ihal il is appropriate to build reseTr8S UP to 8 level that miligales reliance on corporate sponsorship, Slru¢lur•i goveman¢• and man8gomgnt The Charity Is controlled by Ils gov8rnlng document, a degd of Irusl, and ¢on81iluies a Ilmitgd company, Ilmlled by guaranleo, as defined by th8 Cornpanies Act 2006. The trustoès, who are also IhÈ dirÈetors for the purpose of wmpan>' law, and who served during thè year and up lo the dale of signaluia ol the financial 5tal8m8nls wer8.. S G Mason-Ellioti hlr T E Mason-Ellioll org8nls8tlonal structuro The company Is made up of a board ol two dlreclorg who act a8 the Iru81888,' 811 declsions are made by un8nlmous agreemeni ol the trustees. CHALLENGE ADVENTURE CHARITIES TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Irusle&$' raport was approved by the Board of Tru818es. fvlr T E Mason-Elliolt Trustee 24 M8rch 2025 CHALLENGE ADVENTURE CHARITIES INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CHALLENGE ADVENTURE CHARITIES I report lo the tru5lee5 on rny 8xaminalion of lh8 financial stalem8nt5 01 Cha118nge Adventure Charities Ithe charilyl lor the year ended 31 March 2024. Ro$pon$lbllltl&$ and b¥sl$ of roport As Ihe trustoes ol tho charity land also its directors for the purposes of company lawl you aro responsibla for the pr8paration ol the financial statements in accordanc8 with the r8quirom8nt5 01 the Companies Act 2006 Ilhe 2006 Act). Having satisfied myselllhal Ihe financial slalemenls of the charily a￿ not required Ir> be 8udiled undèr Part 16 rf the 2006 Ad and are eligible lor independent exarninalion, I report in respect of my examination of the charity's linanoal statements carried out under section 145 01 Charities Act 2011 Ilhe 2011 A¢tl. In carrying out my examination I have followed all the applicabl& 01r￿￿.￿n$ gDi¢n by Ihg Charity Commission undor Sec￿0n 1451511bl of Ihg 2011 Act. Ind•p•nd•nt •xamln•r's stat•m•nt I have completed my 8xarnlnalion. I conllrm that no rnallgrs have corn8 lo my atlentlon In conn8cllon wllh th8 8xamlnallon giving me cause lo beliave that In any material r8SP8cI'. accounting records were not kept in respect ol the charity as required by section 386 01 the 2006 Act; or the financial statements do not ac¢ord with those records., or the fir)anclal stal8ments do not comply with thè acixjuntlng r8qulr8ments of section 396 of th8 2006 Act othèr than any requirernenl that the aceounts give 8 true and lair wew which is not a mailer considered as part 013n independent examination., or the financial stalernent5 have nol been prepared in accordance with the methods and principle5 01 Ihe Stalernent of Recommende¢ Practlce for a¢￿VntIng and reportln9 by charSbes appllcable 10 ¢harllSes preparlng Ihelr a¢¢ounls ¥¢wrdance wilh the Fin¥n¢ial Rgportino Standard applicable In Ihg UK and Rgpubli¢ ol Ireland IFRS 1021. I have no concerns and have come across no other matters in conneC￿.0n wilh the examination lo which attention Should be drawn in thi$ report in ord¢r to gneb19 a propor understanding of thg financial slalgments to bo rga¢hod. Flandgr Tov•ll Llmltod Stag Gates House 63164 The Avenue Soulhamplon Hatnp5hir S017 1x8 Dated., 24 M3r¢h 2025 CHALLENGE ADVENTURE CHARITIES STATEMENT OF FINANCIAL ACTtVlTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestri¢t•d funds 2024 Unr•8tri¢ted fundg 2023 Notes Incom• from= Charitable activitie5 Particip8nl sponsorship Event sponsorship Entry lees from cyclists 91,312 138.268 46,475 95,625 Total Income 137,787 241,393 Exp•ndllur• on: Charitable 8etivilieg General event ¢osts SubseriplSons Sank charges Charitabl• th>nalon5 58,687 87 548 g1,312 98,889 225 138,267 Total charltabl• •xp•ndliur• 148,634 237,935 Total •xpondltur• 148,634 237.935 Net incomellexpendilurel and movement in lund5 110,8471 R•conclllatlon of funds.. Fund balances al 1 April 2023 37,613 34,155 Fund balanres at 31 March 2024 26,766 37.613 The statement of financial aclivilie5 includes all gains and losses recognised in the year. All income expenditure derive from eontlnuing actlvltiès. CHALLENGE ADVENTURE CHARITIES BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Not9¥ Curront assots Debtors Cash at bank and in hand 10.597 20,471 13,560 32,083 31,OG Cr•dltors: amounts falllng dug wlthln one year 14.3021 18,0301 Net current assets 26,766 37.613 Tho fvnds of tho ¢harfty Unrestricted funds 26,766 37,613 2e,766 37,613 The company Is enlttled to thè 8xemption from Ihe audll requlremenl eontaineiri¥ril¥ rour)d¥d tu Ili# Iitldf&?*l £. The linon¢io1 Stolements ho'le been prepored under the historical ¢osl ¢onvents'on. The prin¢ipo1 ac¢ounling policies adoplgd are $91 oul below, 1.2 Golng coiic•ni Al the tirne of approving the financial slalernenls, the Iruslees have a reasonable expeclats'on that the charity has adequate resour¢es lo continue in operational exislonc¢ for the foreseeable future. Thus the trustees Conbnue to adopt the going ¢oncgrn basis ol accounting in preparing th? fin8ncK91 slalgmenls, 1.3 Charltable fund¥ Unr851ricled funds are avallable for use at the discretion ol the Irusletrs In furthor8nca of Ihelr charitable oblecllveg. R8$lrl¢tod funds are subled to 8pe¢rfle ¢ondillons by donors Qr grantors as to how they may be us•d. The purptssa8 and uyeg ol th& rastricted funds 8re sel out in th8 nolas lo th8 lin8na81 s18t8rnenls. 1.4 Incorng Incorn8 is recognlstrd when Ihe Gharily 1$ legally enliiled lo It aft#r any performance condltlDng have been mel, the arnounls can be measured reliably, and il 15 probable that incorne will be received, Part'cipanl sponsorship is the arnounl raised by individual participators in respect ol Sponsorship donations. Evfrnl spon8orsNp Is Ihg arnounl r85sod for Ihg ¢y¢lfr evonl as o wholtr bv corpofO1& sponsors. Entry fees from cyclists gre the cosls of the cycling event that are passe4 onto the individual participators. 1.5 Expenditure Expenditure Is recognised once there is a legal orconstructive obligation to transfereconomic benefit to a third party, It is probable that a transfer ol economic benefr'ts will be required in seluemenl, and the amount of the oblig8tiDn ¢an be measured reliably. Expenditure is ¢la8sill&d by activity. Th* costs of each a¢livKy ar8 rnade up of the 10181 of dlra¢l costs 8nd ghared costs, induding supporf costs involved in undertaking each aclivity. Direct costs allributable lo a sing19 activity ale allocated directly lo Ihal activity. Shared costs which Contribute to more th8n one aclivily and 5UPPOrt Costs which are nol allrfbutsblg lo a $lngl8 adlvlly are apporuoned bgtwgon those 8dlvillos on a basis conslslgnl wllh the use ol re$our¢os. Central staff costs are allocaled ON the basis of time spent, and depreciation charges are allocated on the portion of the assei's use. CHALLENGE ADVENTURE CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 A¢¢ounting policies Icontinutdl 1.6 et$h and ￿tsh oquivalontj Cash and cash equivalents include cash in hand. deposits hdd at call wilh banks. other short-term liquid investments with original maluritios of three months or1os$, and bank overdrafts. Bank overdrafts are shown wlhin bc>rrowings in urrenl liabilities. 1.7 Flnanclal Instruments The charity has elected lo apply the provi5ion5 of Section 11 'Basic Financial Instrurnents, and Section 12'0ther Financial Instrurnenls Issues, of FRS 102 10 811 of its financial instrument5, Flnanclal Instruments are recognised In thè chadl> s balance sheet when the charfts. becomes party to the contractual provislons ol the instrument Finan¢181 assets and liabillties are offset, with thè net 8moLJnts presented in the fin8nclal statements, when there 1$ 8 legally enforceabl8 rlght to set off recognlsed amounts and there15 an intention lo settle on a n8t basis or lo realis8 th8 ass81 and $81118 the Ilablity slmullan80usIy. Basic financial as88t BasSc flnanclal a$sg1$, whl¢h Include deblors ond ¢a$h and bonk balancos. aro inltl$lly mogsurgd al Iransa¢llon prl¢e induding Iransaclion cos15 are subsequently carrigd al aTnorts'sed wst using the effective inleresl rnelhod unless the arrangement constitutes 8 financing transaction, where the transaction is rneasured at the present value of the future rè¢91pts dlKounlgd 01 a markol ratg of in¢¥r?sl. Fln8nck41 $s8&18 ¢la$S￿e￿ a$ rgcelvablo wthln ong year org nol aMOrti￿￿. Basic financial liabilities Bas1¢ fln8n¢i81 liabilities. including credilors and bank 108ns are Ini118lly recognised 81 transadion price unless the arrangement constilules a financing transaction, ￿here the debt instrument is measured al the present value ol the future payments discounted at 3 market rate ol interest. Financ131 liabilities classified as payable within one year are not amortlsed. Débt Instruments are subwuéntly eariièd al arnartlS8d cost, using thè Èffèctivé Inlarèst ratè method. Trade creditors are ubligalions lo pay for goods or services that havtr been acquired in the ordinary course ol opèrations from suppliars. Amounts payable are ¢Lasslliod as current liabllille$11 payment is dLJe within onè yèar or18ss. If not, they are piesenled 8$ non-currenl liabilities, Trade ei8dilois are recognised initially at transaction piic6 and subsequently measured at amortised Cost using tfri8 effective inl8rÈst rnelhod. D•r•¢ognbtlon ¢f flnan¢141 Ilablllil•ts Financial liabilities grè deretognised whon the oharity's contra¢tiial oblioations expire or nre dis¢harued or oancelled 1.8 Employee bengflts The cost of any unused holiday enlitlemenl 18 recognised in the period in which Ihg employee's 88rvices are received. Ttrrmlnallon benefits are recognlsed Immedlalgly as an expanse when the charity is demonstrably wmmllled lo terrninate the employment of an employee or to provide l8rminalion benefits. CHALLENGE ADVENTURE CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Crltlcal accounung estlmates and Sudgements In the 8pplie8bon of the ch8rity'$ 8e¢ounting polioes, the trustees are required tts make judgen*nts. e$b"mgte$ and assumptions about carrying atnounl of assets and liabilities that ale not readily apparenl from other sources. Th8 estirnates and associated assumption5 are based on hi5torlcal expèrfence and other lactors that are consldered to be relevant. Actual iesulls may differ from these esllmates. Thp p.*limAIp* And ijndprfying A88iJmptinnq Arg. rp.vipwpd nn An nnonino hAqi¢ Rp.vi*inn* In Aernijnlino p.8lim2ip.8 Arp recogn159d in the perlod in which the estimate is rev158d where the revlsvjn affects only that perlod, or In the period ol the revision and Tutur8 periths where the revision aff8cls both current and future periods. Tru8to•s None ol Ihe Injstees lor any persons connected with theml received any remuneration or benefits frorn the charity durfn9 Ihg ygor. Employ￿8 The average monthly number ol employees during the year ￿eS.. 2024 Numbgr 2023 Numbor There wore no gmploy8e8 whoso annual rtsmuneralicsn was more than £60,000, Taxallon Th8 eharily is éxempt from taxation on activities b8caus8 all its incorn8 is applied lor eharilabl8 purposes. Debtors 2024 2023 Amounts f8lllng du• wlthln ono y•8r'. Other debtors 10.597 Loan$ and overdrafts 2024 2023 Bank overdrafts 1,355 Payable wilhin one year 1,355 CHALLENGE ADVENTURE CHARITIES NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Credllors.. amounts falllng due wlthSn one year 2024 2023 Notè3 Bank ov8rdraft5 Other creditors Accruals and deferred income 1.355 4,302 4.875 4.302 8,030 Unr•otrictsd fund8 The unrestricted funds of the charity comprise the unexpend8d balance5 01 donations and grants which are not Subl￿t to specific conditions by donors and grantors as to how they may be used. These irKlude desi9naled funds which have beon s¥¢ asi¢Jg out of unreslricled funds by Ihtr Iru$lg$s for spo¢ili¢ purpos¢s. At 1 Aprll 2023 Incomliig resources R•90UYC•g expended At 31 March 2024 Ggnoral lundg 37.613 137,787 1148,6341 26,766 Prttviouts yttar.. At 1 April 2022 Incoming resourcos Re$ourcè8 axpand•d At 31 March 2Q23 Geiieral fund5 34,155 241.393 1237.9351 37.613 10 R•lat•d party transactlons I h8r8 wère no d*closable rélated party Iransactlons during tha y8ar12U2J- non81. This document was delivered using electronic communications and authenticated in accordance with the registrar's rules relating to electronic fonn, authentication and manner of delivery under section 1072 of the Companies Act 2006.