**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. - 1 - ## **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. - 2 - ## **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**| - 3 - ## **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** - To follow all government guidelines in regards to Covid restrictions. - To re-engage with churches and begin rebooking visits for the redeemed. - To look at costing and implementing a fundraising campaign for the refurbishment and expansion of Wilkerson House. ## **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. - 4 - ## **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 - 5 - ## **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: - 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - 2 the financial statements do not accord with those records; or - 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or - 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 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 - 6 - ## **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. - 7 - ## **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| |---|---|---| - 8 - ## **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** - 9 - ## **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| |---|---|---|---|---| - 10 - ## **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. - 11 - ## **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). - 12 - ## **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. - 13 - ## **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|-| - 14 - ## **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** - 15 - ## ## ||**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. - 17 - ## **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. - 18 - |**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| - 20 - ## **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| - 21 - ## **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: - £2,400 (2020 : £2,500) of rental income was received by the Exit Foundation. - £15,000 (2020 : £20,000) grant given to the Exit Foundation. - There were no balances outstanding at the year end (2020 : £NIL). ## **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)| - 22 -