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2021-03-31-accounts

Charity Registration No. 1069777

Company Registration No. 03550328 (England and Wales)

TEEN CHALLENGE LONDON

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

TEEN CHALLENGE LONDON

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Revd L Cheshire
Rev S Derbyshire
Rev. D Langton
Dr L Logan MBE
Rev Christopher Scott
Charity number 1069777
Company number 03550328
Principal address Wilkerson House
Uphall Road
Ilford
Essex
IG1 2JJ
Registered office Essex House
8 The Shrubberies
George Lane
South Woodford
London
United Kingdom
E18 1BD
Independent examiner Caton Fry & Co Ltd
Essex House
7 The Shrubberies
George Lane
South Woodford
London
E18 1BD
Bankers Barclays Bank
180 High Road
Ilford
Essex
IG1 1LS
Solicitors red kite Solicitiors
14-15 Spilman Street
Carmarthen
West Wales
SA31 1SR
Project manager Javier Lesta-Candal

TEEN CHALLENGE LONDON

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8 - 9
Statement of cash flows 10
Notes to the financial statements 11 - 22

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

The trustees present their report and financial statements for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

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 Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objects as specified in the Memorandum and Articles of Association are:

a) to advance the Christian faith in accordance with the Statement of Beliefs appearing in the County of Greater London, the surrounding areas, and in such other parts of the United Kingdom or the world as the Trustees of the Charity may from time to time think fit.

b) to relieve persons who are in conditions of need or hardship or who are aged sick or who are homeless, including by means of helping and assisting individuals affected by alcohol, drug or other substance abuse or addiction and to relieve the distress caused thereby in the said locations and in such other parts of the United Kingdom or the World as the Trustees may from time to time think fit.

c) to promote and fulfil such other charitable purposes beneficial to the community in the said locations and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit.

The policies adopted in furtherance of these objects are:

1) Offering residential rehabilitation to members of the public who have shown an interest in finding help with their addiction problems.

2) Outreach work through different means such as street work, bus ministry, church events and presentations, and testimony evenings.

3) Providing vocational training to enhance employment opportunities helping them go back into society with recognised achievements and qualifications.

There has been no change in these during the year.

Reporting Public Benefit

The trustees have paid due regard to guidance issued by the Charity Commission on public benefit in deciding what activities the charity should undertake. As a small charity below the Charities Act's audit threshold, the report focuses on the main activities undertaken by the charity to further the charitable purposes for the public benefit.

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

TCL REUSE CENTRE

The National lockdown due to the Covid 19 pandemic saw the reuse centre closed from April until 6th July 2020 just after the lockdown was lifted. During this period the reuse charity purchased and installed a new mezzanine floor in the building adding a further 2500 square feet of usable space to the property, the downstairs of the building underwent a major refurbishment including a major electrical rewiring overhaul. The Reuse centre saw a greatly increased footfall once the Lockdown was lifted, however, the reuse centre was completely closed on 11th December 2020 due to a Covid outbreak amongst the staff. The centre then remained closed beyond the close of the financial year. Rent received from the Reuse centre to Teen Challenge increased from £3,000 to £4,000 per calendar month to fall in line with the appropriate rental value after the increase in floor space. The reuse centre is on a full repairing and insuring occupancy whilst in the building.

Wilkerson House

The occupancy level for Wilkerson House was 15.9 This was a decrease of 1.2 over the year compared to 2018/19 which was 17.1.

With the National lockdown due to Covid 19 pandemic we implement and adhered to all government guidelines and restricted all access to Wilkerson house. Strict guidelines were followed however in December there was an outbreak of the virus amongst the staff and residents. Most staff had to remain at home and only several live in staff remained on duty. The house was in complete lockdown with no access allowed. Thankfully the house recovered and the guidelines continued to be observed, a number of staff were furloughed during this period and up to and beyond the end of the financial year.

The new minibus was purchased in September for £26,520 of which £13,260 was donated by the Lind trust. The full amount was raised by Rev Stephen Derbyshire chair of the board of Trustees.

Outreach Report

Due to the Covid 19 pandemic and the Lockdown all outreach work and church presentations ceased during this financial year.

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Centre for Excellence List of Achievements

CITY AND GUILDS ACHIEVEMENTS NUMBER ACHIEVED
Functional Skills English Level 1 1
Functional Skills English Level 2 3
Functional Skills English Maths 2 1
Effective Communication Level 1 13
Effective Skills, Qualities and Attitudes for Learning and Work 4
Equality and Diversity 8
Managing Personal Finances 5
Functional Skills ICT 2
Personal Development 4
TOTAL 41
HIGHFIELD TRAINING ACHIEVEMENTS NUMBER ACHIEVED
First Aid 9
Food Safety Level 2 8
Health and Safety Level 2 8
Managing Conflict 12
Teamwork 4
Level 2 Customer Service 6
Manual Handling 5
Fire Safety Level 2 7
Warehousing and Storage 1
TOTAL 60
ENERGY SAVING TRUST NUMBER ACHIEVED
Introduction to Energy Awareness 11
TOTAL 11
TOTAL OF ALL 112

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

Incoming resources for the year stood at £683,376 (2020 - £619,504). The net incoming resources amounted to £201,080 (2020 - £53,818). Voluntary income amounted to £375,191 (2020 - £336,310) and represented 54.9% (2020 - 54.3%) of the charity’s total income.

The majority of ongoing resources have been utilised on charitable activities related to supporting residents at the centre for those with addictions: staff costs for services and support, expenses directly relating to the residents, and the ongoing costs of the premises themselves.

The net assets shown in the balance sheet amounted to £1,012,226 (2020 - £811,145). Included in the above figure are freehold properties shown at cost of £1,508,882 (2020 - £1,508,882).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to be approximately 10 months' expenditure which amounts to approximately £420,000. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. At the year end the level of reserves, excluding the freehold land and buildings, improvements to property and related loan amounted to £256,367. This level of reserves has been maintained throughout the year.

Investment strategy

The reserves are held on cash deposits, and although consideration has been given to alternative forms of investment, the Trustees decided to retain the cash deposits.

Risks

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Future Developments

Structure, governance and management

The charity is a company limited by guarantee and was incorporated on 22 April 1998. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

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:

Revd L Cheshire Rev S Derbyshire Rev. D Langton Dr L Logan MBE Rev Christopher Scott

The existing Trustees appoint any new Trustees following the provisions laid out in the Charity's governing instrument.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

The Board of Trustees are responsible for the strategic direction and policy of the charity. A scheme of delegation is in place, and day to day responsibility for the provision of services rests with the Project Manager. The Trustees, who are also Directors of the charitable company, meet together regularly, at least four times per year, to pray, review progress and make decisions on future developments.

New trustees are provided with a comprehensive information pack informing them of their potential roles as Trustees.

All staff are paid in line with their job role.

Teen Challenge London works closely with Teen Challenge UK and other Teen Challenge Groups throughout the country, but is legally independent of them.

Small company exemptions

This report has been prepared and delivered in accordance with the provisions in Part 15 of Companies Act 2006 applicable to companies subject to the small companies' regime.

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

Rev S Derbyshire

Trustee Dated: 24 November 2021

TEEN CHALLENGE LONDON

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF TEEN CHALLENGE LONDON

I report to the trustees on my examination of the financial statements of Teen Challenge London (the charity) for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and 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 financial statements to be reached.

J E Caton FCA FCCA Caton Fry & Co Limited Essex House 7 The Shrubberies George Lane South Woodford London E18 1BD

Dated: 24 November 2021

TEEN CHALLENGE LONDON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Unrestricted
funds funds
2021 2020
Notes £ £
Income from:
Donations and legacies 3 375,191 336,310
Trading activities 4 259,502 227,393
Investments 5 48,683 55,801
Total income 683,376 619,504
Expenditure on:
Raising funds 6 2,563 2,559
Charitable activities 7 479,733 563,127
Total resources expended 482,296 565,686
Net income for the year/
Net movement in funds 201,080 53,818
Fund balances at 1 April 2020 811,146 757,327
Fund balances at 31 March 2021 1,012,226 811,145

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

As all funds in the prior year were unrestricted a comparative SOFA has not been prepared.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

TEEN CHALLENGE LONDON

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Unrestricted funds
Designated funds
18
General unrestricted funds		 2021
£
£
1,535,517
73,291
185,773
259,064
(94,340)
164,724
1,700,241
(688,015)
1,012,226
65,000
947,226
1,012,226
1,012,226		 2020
£
£
1,509,603
52,307
34,405
86,712
(88,702)
(1,990)
1,507,613
(696,468)
811,145
-
811,145
811,145
811,145

TEEN CHALLENGE LONDON

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2021

2021 2020
Notes £ £ £ £

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 24 November 2021

Rev S Derbyshire

Trustee

Company Registration No. 03550328

TEEN CHALLENGE LONDON

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
21
Investing activities
Purchase of tangible fixed assets
Investment income
Net cash generated from investing
activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(35,488)
48,683
(9,991)		 £
148,164
13,195
(9,991)
151,368
34,405
185,773		 2020
£
-
55,801
(55,839)		 £
(5,406)
55,801
(55,839)
(5,444)
39,849
34,405

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Teen Challenge London is a private company limited by guarantee incorporated in England and Wales. The registered office is Essex House, 8 The Shrubberies, George Lane, South Woodford, London, E18 1BD, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). 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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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. The Trustees have assessed the impact of COVID-19 on the charity and are aware that donations are likely to reduce in the forthcoming year. A six monthly mortgage payment holiday has also been approved. 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.

Restricted funds are subject to specific conditions by donors 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.

1.4 Incoming resources

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.

Donated services and assets are recognised when the charity has control over the item, and conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably.

Government Grants are recognised when received or when there is reasonable assurance that the grant conditions will be met and the grants will be received.

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to that category. Where costs cannot be directly attributed to particular headings they have allocated to activities on a basis consistent with the use of resources.

Charitable activities comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities, and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independence examination and professional fees linked to the strategic management of the charity.

Support costs are allocated on a basis consistent with the use of resources, as indicated in the notes to the financial statements.

1.6 Tangible fixed assets

Tangible fixed assets 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 See below
Improvements to property 10% on cost
Fixtures and fittings 25% on cost
Computers 33% on cost
Motor vehicles 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Since in the opinion of the Trustees, the freehold properties are maintained in a state of repair such that their estimated residual value is no less than their cost, the annual charge for depreciation of freehold properties is nil.

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).

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.8 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 Creditors and provisions

Creditors and provisions are reognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligatin can be measured or estimated reliably. Creditors and provision are normally recognised at their settlement amount after allowing for any trade discounts due.

1.10 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.

1.11 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.

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.

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

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 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Volunteer services

The value of services provided by volunteers is not incorporated into these financial statements.

1.15 Taxation

The charitable company is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Irrecoverable VAT is charged against the category of resources expanded for which it was incurred.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 375,191 336,310
Grants included in donations and gifts
Coronovirus Job Retention Scheme 32,654 -
City Gate Church 57,980 -
The Lind Trust 13,260 -
103,894 -

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

(Continued)

The Charity benefits greatly from improvements and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with accounting standards, the economic contribution of general volunteers is not measured in the accounts.

4 Trading activities

Students' housing benefits
Students' DWP benefits
Tuck shop sales		 2021
£
221,096
35,282
3,124
259,502		 2020
£
185,888
37,863
3,642
227,393

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Rental income 48,635 55,722
Interest receivable 48 79
48,683 55,801
Raising funds
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Raising donations and legacies
Staff costs 2,563 2,559
2,563 2,559

6 Raising funds

Total 2020 £ 264,739 70,910 57,910 31,105 11,586 32,274 468,524 80,274 14,329 563,127
TCL Re-Use Centre 2020 £ - - - 5 - - 5 - - 5
Egangs 2020 £ - - - 20,075 - - 20,075 43 - 20,118
Outreach ministry 2020 £ 2,559 277 46,172 10,595 - - 59,603 4,730 - 64,333
Rehab- ilitation 2020 £ 262,180 70,633 11,738 430 11,586 32,274 388,841 75,501 14,329 478,671
Total 2021 £ 277,003 51,392 18,788 20,310 1,883 22,220 391,596 71,727 16,410 479,733
Egangs 2021 £ - - - 15,075 - - 15,075 - - 15,075
Outreach ministry 2021 £ 2,563 - 9,363 500 - - 12,426 4,407 - 16,833
Rehab- ilitation 2021 £ 274,440 51,392 9,425 4,735 1,883 22,220 364,095 67,320 16,410 447,825
Charitable activities Staff costs Costs of residence & catering Travel Donations Training centre Bank loan interest Share of support costs (see note 8) Share of governance costs (see note 8)
7

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

8
Support costs
Support
costs
Governance
costs
£
£
Depreciation
9,574
-
Rent, rates & water
22,840
-
Light and heat
16,173
-
Repairs & renewals
13,192
-
Office
8,337
-
Finance
1,611
-
Legal and professional
-
12,966
Independent
examination
-
3,444
71,727
16,410
Analysed between
Charitable activities
71,727
16,410		 2021
Support
costs
Governance
costs
£
£
£
9,574
6,553
-
22,840
29,237
-
16,173
15,267
-
13,192
17,185
-
8,337
10,261
-
1,611
1,771
-
12,966
-
11,086
3,444
-
3,243
88,137
80,274
14,329
88,137
80,274
14,329		 2020
£
6,553
29,237
15,267
17,185
10,261
1,771
11,086
3,243
94,603
94,603

Support costs are allocated to activities based on staff time.

9 Net movement in funds 2021 2020
£ £
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets 9,574 6,553
(Profit)/Loss on disposal of fixed assets - (1,400)
Independent examination 3,243 3,150
Bank loan interest 32,274 33,020
Operating lease charges 1,168 926

10 Trustees

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

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

11 Employees

The average monthly number of employees during the year was:

Managers
Support
Administration
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
3
6
1
9
2021
£
258,511
16,833
4,222
279,566		 2020
Number
3
9
1
13
2020
£
247,242
16,317
3,739
267,298

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

12 Pension commitments

The charity runs a Stakeholder Pension with Legal & General and a workplace pension with NEST. The assets of the scheme are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £4,222 (2020 : £3,793).

At 31st March 2021 contributions amounting to £1,384 (2020 : £1,208) were payable to the fund and are included in creditors.

Total £ 2,105,718 35,488 2,141,206 596,115 9,574 605,689 1,535,517 1,509,603
Computers Motor vehicles £
£		 6,407
94,679		 -
26,520		 6,407
121,199		 6,363
94,679		 44
6,630		 6,407
101,309		 -
19,890		 44
-
Fixtures and fittings £ 94,402 8,968 103,370 93,855 2,770 96,625 6,745 547
Improvements to property £ 401,348 - 401,348 401,218 130 401,348 - 130
Freehold land and buildings £ 1,508,882 - 1,508,882 - - - 1,508,882 1,508,882

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

13
Tangible fixed assets
14
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
15
Creditors: amounts falling due within one year
Notes
Bank loans
17
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Bank loans
17
17
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 (Continued) (Continued)
2021
£
(1)
63,649
9,643
73,291
2021
£
65,008
5,490
2,922
9,327
11,593
94,340
2021
£
688,015
2021
£
753,023
65,008
688,015
363,139		 2020
£
-
48,871
3,436
52,307
2020
£
66,547
4,612
3,558
3,933
10,052
88,702
2020
£
696,468
2020
£
763,015
66,547
696,468
380,832

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

17 Loans and overdrafts

(Continued)

A term loan from Barclays of £950,000 was drawn in August 2015. The long is secured by legal charges on Wilkerson House, the property at the rear of Wilkerson House and Unit 1 at Wilkerson House, together with a debenture dated 4 April 2007.

Interest is repayable at a rate equal to the aggregate of the LIBOR (London Inter-Bank Offered rate) and the bank's margin of 3.110% per annum. Repayments of the loan capital are payable over 168 monthly instalments following. Capital repayment of the loan commenced during the year ended 31 March 2017. The loan is fully repayable in 2030.

18 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement Movement
in funds in funds
Incoming Balance at Incoming
Balance at
resources 1 April 2020 resources 31 March 2021
£ £ £ £
Refurbishment of rooms - - 65,000 65,000
- - 65,000 65,000

19 Operating lease commitments

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

Within one year
Between two and five years		 2021
£
1,248
2,808
4,056		 2020
£
1,248
4,056
5,304

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

20 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Total key management personnel remuneration 45,075 45,000

Transactions with related parties

The Project Manager is a Trustee of the Exit Foundation Charity. During the year the charity entered into the following transactions with related parties:

21 Cash generated from operations
21 Cash generated from operations 2021 2020
£ £
Surplus for the year 201,080 53,818
Adjustments for:
Investment income recognised in statement of financial activities (48,683) (55,801)
Depreciation and impairment of tangible fixed assets 9,574 6,553
Movements in working capital:
(Increase) in debtors (20,984) (8,852)
Increase/(decrease) in creditors 7,177 (1,124)
Cash generated from/(absorbed by) operations 148,164 (5,406)
22 Analysis of changes in net (debt)/funds
At 1 April 2020 Cash flowsAt 31 March 2021
£ £ £
Cash at bank and in hand 34,406 151,367 185,773
Loans falling due within one year (66,547) 1,539 (65,008)
Loans falling due after more than one year (696,468) 8,453 (688,015)
(728,609) 161,359 (567,250)