2022-03-31-accounts

Teen Challenge UK

Annual Report and Accounts

For the year to 31 March 2022

Contents

Reference and Administrative Details	1
Report ofthe Trustees	2-10
Independent Auditor’s Report	11-13
Statement ofFinancial Activities	14
Balance Sheet	15
Statement ofCash Flows	16
NotestotheAccounts	17-28

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Reference and Administrative Details

CharityName:	TeenChallengeUK	UK
RegisteredNumbers:	CharityNumber:		298900
	OSCRNumber:		$C039475
Principal Office:	WilloughbyHouse
	Station Road
	UpperBroughton
	Leicestershire
	LE14 3BH
Website address:	www.teenchallenge.org.uk
Trustees:	PA Hills
	GMcKim
	J Wellavise
	TMMcCurry	(Chairman)
	S Reilly
	D Williams
ChiefExecutive:	Phil Hills
Registered Auditors:	Ashmole& Co
	Chartered Certified Accountants& Registered Auditors
	First Floor
	1 St John’s Court
	UpperFforestWay
	Enterprise Park
	Swansea
	SA6 8QQ
Bankers:	Barclays BankPle
	16Vaughan Street
	Llanelli
	SAI15 3UE
Solicitors	DuttonGregory
	48/50 Parkstone	Road
	Poole
	BH152PG

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Report of the trustees For the Year to 31 March 2022

The trustees present their report with the financial statements of the charity for the year ended 3] March 2022. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) '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 Jreland (FRS102) (effective Ist January 2019).

Structure, Governance and Management

Governing document

Teen Challenge UK is an unincorporated trust constituted under a trust deed dated 1st March 1988, which was varied on 26th August 2003, and is a registered charity number 298900.

Recruitment and appointment of the Council of Management

The charity is governed by a Board of Directors as the charity's trustees who are responsible to give direction and oversight to all aspects of its activities.

New directors are appointed by the Board of Directors and continue to serve until they wish to retire or are disqualified from continuing as a director in accordance with the Trust Deed. The Trust Deed provides for a minimum of three to a maximum of seven directors.

Induction and training of Trustees

New Trustees and Directors undergo an induction day to brief them on their legal obligations under charity law, the content of the Trust Deed and the committee and decision-making process. They will meet key employees . and other directors. Directors are encouraged to attend external training events where these will be of benefit to their role.

Organisational structure

Decisions affecting aspects of the work that have a national impact are made by the Board of Directors. Rev. PA Hills, has been seconded from Sherwood Church, Nottingham to the role of Chief Executive, responsible for overseeing the Charity's work on a day to day basis, and took the necessary action to implement Board decisions. Rev. Hills also holds the position of Vice President, Teen Challenge Global. The Board of Directors, ordinarily, meet four times in each calendar year.

Remuneration of the key management personnel is approved by the trustees and is reviewed annually and normally increased in accordance with average earnings. The trustees benchmark the key management personnel pay against pay levels in other charities of a similar size and activity to ensure that the remuncration set is fair and appropriate.

The following trustees hold property in the name of the charity:

J Fallon

P A Hills

TM McCurry

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Objectives and Activities

The charity trustees believe they have complied with their duty in Section 17(5) of the Charities Act 2011 to have due regard to Public Benefit guidance by the Charity Commission and has taken account of it in planning future activities.

The Objectives are contained in the trust deed and are as follows:

1. The advancement of the Christian Religion particularly among young people.

2. The relief of suffering among young people relating to mental or physical health or social or economic circumstances or drug or alcohol or chemical dependency.

3. The relief of poverty or homelessness among any persons who are the beneficiaries of the objects in 1 and 2 above.

4. The provision of occupational rehabilitation to any persons who are the beneficiaries of the objects in 1 and 2 above.

5. The provision of counselling services for the giving of individual or group counselling and practical advice. 6. The provision of residential centres for the rehabilitation of persons suffering from drug or alcohol or chemical dependency or abuse.

6. The provision of residential hostels.

7. By the establishment of courses and centres for the training of evangelists, street workers and support staff in the ministry of the Charity.

8. By the provision of vocational training and for those undergoing occupational rehabilitation. 10. By the payment of training grants or fees to any Company wholly owned by the charity for the purpose of fulfilling the objects related to vocational training and occupational rehabilitation.

9. By the offering of advice and training to the beneficiaries of the Charity's objects in connection with employment including a system for the writing of CV's and the provision ofjob search facilities.

How our activities deliver public benefit

In the year under review, the activities of Teen Challenge UK continue to focus on a specific, identifiable section of the public. The primary beneficiaries are those individuals who are experiencing life-controlling issues caused by substance misuse disorder or who are in danger of engaging with such activities. Other beneficiaries include families of addicted individuals, communities in which the charity works and the general public who reap the benefit of our work through there being fewer addicts on the streets than there might otherwise have been; the savings to Local and National Governments from a consequential lessening of drug related crime and savings arising from a lesser demand on health services amongst other societal benefits.

The local services of Teen Challenge UK are open to all people experiencing life controlling issues regardless of colour, gender, age or religion. The cost of residential help is high and applicants, who are able, are encouraged to make a contribution to the cost of their support. However, no-one is ever refused admission on financial grounds.

It is generally recognised that one of the major problems in the UK affecting young people is drug misuse. The consequences of this for society are many; antisocial behaviour, street crime, drug related health problems, increased policing costs, drug related crime, increased prison populations, escalating insurance claims and premiums, social costs in traumas suffered by those who are burgled, assaulted or otherwise subjected to the consequential effects of criminal behaviour.

Teen Challenge UK works with people of all ages in its prevention and intervention activities and in its residential rehabilitation facilities. In the year under review, the average length of addiction residents entering a residential rehabilitation programme was approximately ten years and heroin is the most commonly used drug.

The scope of activities that Teen Challenge UK is able to engage in to fulfil its objectives is obviously limited by its available resources. However, it is clear that there is enormous public benefit in the charity carrying out its activities to achieve its stated objectives.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Achievements and Performance

Ensuring our work achieves our aims

Our aims, objectives and activities are reviewed at our regular meetings of the Board of Directors. These reviews cover every aspect of the charity's work including outreach centres and projects, local and residential centres, personnel, finance, achievements and outcomes. The reviews also help us ensure our aims, objectives and activities remain focused on our stated purposes.

The Board of Directors continue to rely upon the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Directors consider how planned activities will contribute to the aims and objectives contained in the Trust Deed.

The objectives of the charity are achieved through outreach work, residential rehabilitation centres, The Teen Challenge Leadership Academy and in other appropriate ways.

Outreach work

In terms of outreach work, Teen Challenge UK has a network of volunteers who make themselves available to people, of all ages, who may need help, advice or guidance at locations in Scotland, England, Wales and Northern Ireland each week. During the period outreach teams operated throughout the United Kingdom. These centres are governed by Steering Committees consisting of responsible local people. The Committees are governed by The Teen Challenge UK Trust Deed and there is accountability for their activities to the National Board of Directors through the Chief Executive.

In addition to these volunteers, The Board has set up a full-time team of outreach workers to work systematically through the most deprived towns and cities of the UK where we do not currently have volunteer teams. This team rents accommodation and lives in an area for approximately six months working among those with life controlling problems. The Team Leader is appointed by the Board and is accountable to the Chief Executive. Last year this team has completed its assignments in Bristol and has commenced its work in Mansfield, England. The Board are pleased with the progress of this initiative.

Outreach work in Glasgow and London is carried out by Teen Challenge Strathclyde and Teen Challenge London which are affiliated works.

Residential Rehabilitation

There are currently six residential units operating in England, Wales and Scotland. They offer accommodation to men and women who apply to the charity for help to overcome their addiction problems. There are currently around 140 beds spread between our services.

During the year to 3ist March 2021 each residential centre operated at an acceptably high level of bed occupancy Turnover of residents remained at a generally acceptable low level. Turnover of staff was also noted as very low. Taken together this contributed to stable and positive environments in the residential centres.

The residential rehabilitation centres offer a structured daily programme that is designed to help each resident deal with the issues that contributed to their addictions and also to learn how to focus on their present challenges and future goals. This is achieved through a combination of group activities, one-to-one sessions with a Senior Support Worker as well as practical vocational training to equip an individual with the necessary life skills for employment.

National Training School

The organisation’s training objective is fulfilled primarily, through the one or two-year residential training course offered by the Leadership Academy. The course is designed to train the participants in the basic requirements of leadership and particularly applied to working in a situation where outreach is the main emphasis.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Achievements and performance (continued)

Performance Measures

Teen Challenge UK residential rehabilitation programs are successful in helping individuals suffering from substance misuse disorder in many significant and, indeed, life changing ways. We measure this by assessing key performance indicators (KPIs) that our residential centres collect, analyse, and report.

Performance indicators help Teen Challenge UK promote care to students.

In order to do this the Trustees regularly consider the following measures in order to develop an approach to measuring performance of TCUK’s delivery of care to students;

Structural Measures: Structural quality measures refer to the features of TCUK that determine its capacity to provide care, such as the existence of an electronic records system or the ratio of support staff/care providers to students.

Process Measures: Process measures are used to assess how well care is provided to a student at TCUK residential centre, in line with recommendations for clinical practice. These recommendations are based on research evidence or consensus (i.e., the views of experts when the research evidence is lacking or inconclusive) regarding the probability that providing particular services will achieve the desired outcomes. Generally, process measures are expressed as rates, with the denominator defining a population that is of interest because of its demographic and clinical condition, and the numerator defining the subgroup receiving specific services.

Process measures are particularly important in the development of performance measures because they can be used to identify specific areas of care that may need improvement. For example, if clients are not entering a residential course after an initial service, additional outreach efforts could be mounted in an effort to increase clients in residential programs. Moreover, the data to calculate process measures often can be obtained as part of an administrative data system that includes information on clients’ dates and types of treatment services.

Outcome Measures: These measures gencrally are used to evaluate the state of a student’s health resulting from the health care services provided and interventions received whilst on a TCUK residential program. In general, outcomes are considered both in terms of student functioning and in terms of categories of symptom severity related to the student’s clinical problem. For substance misuse disorders, health outcomes can be expanded to include four areas: sustained reductions in substance use, improvements in personal health, sustained improvements in functioning (e.g., employment/ family life and relationship reconciliation), and sustained reductions in threats to public health and safety.

Attributing improved student outcomes to TCUK’s specific actions can sometimes be difficult because outcome measures of quality reflect the cumulative impact of multiple factors such as the timeliness of services and the appropriateness of the type or amount of services for a person’s substance misuse or dependence problem. Outcomes also are influenced by factors that depend on the students themselves and are outside the health care system, such as the choices the students make (e.g., to remain in treatment for the full course of recommended services); their living situation, income, and employment; or whether the students have other medical conditions.

Access Measures: Access measures assess the extent to which a person who needs care and services is able to receive them.

Student Experience: These measures are aggregated from students’ reports about their observations of and participation in residential centres.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Achievements and performance (continued)

While KPI data may differ between residential, and indeed outreach centres, they generally include the following:

• e Referral numbers from outreach projects;

• e Occupancy rates at residential centre;

• © Number of withdrawals from program;

• e Length of time between the referral date and the service provider’s first appointment with the student;

• e Successful completion of program; Graduation;

• e Percentage of students returned to work/further study after program completion; e Cost of providing care per bed.

KPI data is collected, analysed, and evaluated on an ongoing basis to ensure TCUK identifies trends and the effect of service. Parameter changes on outcomes are identified in a timely manner. Reports are communicated quarterly to all Trustees, at Board meetings, to Centre manager’s and to other key personnel.

KPI’s will continue to serve as a quality assurance tool for Teen Challenge UK. The information they provide helps us promote care that is accessible, service-driven, cost-effective, evidence-based, and results-focused.

During the year under review, the Trustees are satisfied with the reported results in each of the performance indicators which they identify as key.

For the two years to 2022 Teen Challenge UK has seen 57 students graduate from its residential programmes and 24 students graduate from its Leadership Academy. We have been reviewing the Leadership Academy to try and ensure that it is an effective part of our ministry. Our review showed us of the 75 students who have completed since Autumn 2016 — 30 are serving in nine different Christian ministries and a further 7 are currently enrolled in Bible College.

It is amazing how long the restrictions of this pandemic were in place and how you adapt to an abnormal way of life. In Teen Challenge we are grateful for the flexibility of our staff and volunteers who made it possible for us to continue to bring hope and transformation into the lives of men and women, in spite, of all the additional challenges. We are grateful too, for your continued prayerful support and giving that is essential to this ministry.

However, there are dangers in adapting to the abnormal. God has built very intentional rhythms into life so that we can thrive, be refreshed, and not grow weary. He ordered the seasons that allow all of nature to flourish. There is a very specific purpose, to dormant seeds, hibernation, migration, falling leaves and the like. There is intended to be changing rhythms in our lives that are observed in different seasons so that we do not grow weary but stay fresh and strong.

Adapting to the abnormal is emotionally demanding, sapping energy and a life of lockdown may well stop us from observing some of the changing seasons and rhythms that God intended for our good. Summer is for many, a time when they would take opportunity to rest and recharge so that they have strength to continue. It would be easy to assume, however, that because restrictions on normal activity and engagement that we are rested. Our guess is that managing through this pandemic has made a great many weary and we need to take time to rest. We also encourage you, like one of old to say, “God earnestly I seek you; my soul thirsts for you, my body longs for you, in a dry and weary land where there is no water.” Ps 63:1.

On Ist April 2021 Hope House celebrated its 25th anniversary, albeit in-house due to covid restrictions. Staff both past and present, along with residents and graduates met virtually to celebrate the amazing work that God has done over the last 25 years We, as a Board, would like to give recognition and congratulate Alicia Ward on 20 years of faithful service in Hope House.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Achievements and performance (continued)

Teen Challenge North East Scotland were delighted to be able to recognise and celebrate with the 2021 graduates from both Sunnybrae and Benaiah with a virtual graduation. Paul Beaton said; “We can’t clap and applaud in person like usual but we certainly cheer on the graduates who have left their life of addiction and completed the one year programme and are now setting out into their new lives, refreshed with a new hope and excitement and expectation for the future.”

It has been a great privilege to be able to watch our students blossom in their faith through TCLA. Most recently two of our students have finished their year and are now flourishing in roles within the TC family; Sandy Leiper in Wilkerson House and Mark Green in Willoughby House. Currently students are on the course, being “rooted and built up in Him, strengthened in the faith as [they are] taught...” (Col 2:7).

Barry writes; I’m from Glasgow and after struggling with drug addiction for 20 years I went to The Haven in Scotland in January 2020. I met with the Lord there and my life was totally transformed. The next step of my journey was to go to TCLA to strengthen my relationship with God and to learn and grow in my faith. I’ve been in TCLA since January and I am now in my 2nd term. I have learned so much, the variety of teachings are excellent and the leaders are amazing and have really supported and encouraged me. I’ ve also had the opportunity to be involved in outreach which I have a passion for. Since being here, I have seen family relationships strengthened daily, to which I’m so grateful.

Daniel writes; My story is not one of addiction, yet that did not disqualify me from this course. TCLA is not about where you have come from, but about where you are going. It focuses on leading yourself and being a servant to others, as well as training you in your calling as a leader in the ministry that God has called you into. | came to TCLA at the age of 20 from a Christian family who is active in the church. It has been amazing to live with people from different walks of life. I have grown so much in my time here. I have had the amazing opportunities to simply step out into my independence and grow practically in so many areas. The classes are brilliant, and I have been richly blessed by the teachers and topics they have covered inc The Holy Spirt along with getting involved in outreach and so much more.

CITY OUTREACH TEAM

Our time in Mansfield came to an end but thankfully God’s work isn’t! During lockdown we have been able to continue reaching out but doing things differently. We regularly visit people individually on the streets or outside where they live for a chat, prayer, refreshments and share the Word of God which we also print out and on many occasions is being stuck up on their walls.

We praise and thank God that He sees behind closed doors and it has been such a joy to bring the Gospel message of Hope to these doors. He knows and has compassion and makes a way to reach out to those suffering in addiction, despair, sickness and/or fear. We are now just about to set up once again in the middle of Oaktree estate as lock-down restrictions ease. Praise God this will continue when we leave at the end of this month as local pastors, Teen Challenge Leadership Academy and a few others who have a heart for the estate take over.!

We were delighted by the turnout to our evangelism training night set up to encourage those in Mansfield who desire to take the Gospel out on their streets. We linked with Mansfield Baptist Church to set up a Christian Recovery Support Group for those struggling in addiction.

God is moving in people’s lives as we study His Word and grow in Him. This will also continue thanks to the pastor of the church, Mark, who continues to reach out in the area. It is so important to work alongside churches, encouraging, supporting, and helping each other as the body of Christ so we thank you for all you do. We are also thankful for the Mansfield prayer group who faithfully lift the town up in prayer.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Achievements and performance (continued)

As we move to our next city, Newcastle, we pray that God leads us to those that are trapped in addiction, crying out and to those He is calling at this time. We will once again walk the streets, knock doors, visit drug dens and connect with local churches and organisations. People are broken, people are trapped, alone and fearful. People need Hope and we know that Hope is Jesus who came to seek & to save the lost & set the captives free! Thank you to everyone involved once again for your continued support.

Financial Review

Results for the year

In financial terms, the deficit for the year amounted to £25,133 (2021: £119,451). The unrestricted fund balances carried forward at the year-end were £4,286,749 (2021: £4,315,478). Restricted funds carried forward at the yearend amounted to £451,058 (2021: £447,462).

The charity, like many other charities in the UK, continues to experience financial challenges which appear to be exacerbated by the continuing global economic downturn and consequential austerity measures. We continue to work with the challenges and pursue strategy of maintaining contact with donors and increasing our engagement with potential sponsors.

Reserves policy

The trustees have considered the charity’s requirements for reserves in light of the main risks to which it is exposed. The charity maintains sufficient reserves and quickly saleable assets to enable the residential centres to cover their overheads for at least six months (approx. £1.35m) to ensure that existing residents do not suffer any disruption during the resulting wind down period should funding cease. At the year end the free reserves amounted to £943,708 (2021: £910,856) and the trustees continue to pursue strategies to increase the level of free reserves, as outlined in “Plans for Future Periods”.

Principal funding sources

The Teen Challenge UK Trust Deed differentiates between Local Works and National Works. The former are governed by Steering Committees and local trustees and are responsible for the raising of their own finances. The primary sources are local donations, gifts from local churches and local Grant Making Trusts.

National works refer primarily to residential facilities and the provision of funding is the responsibility of the National Board of Directors. There are four primary sources of funding - Housing Benefit, contributions made by residents from State Benefits, one-off donations received from the general public and churches and monthly donations received by Standing Orders from the general public. Applications are also made to Grant Making Trusts to help with the financing of major new projects e.g. purchase of new facilities, equipment etc.

Investment powers

The Trustees seek to take independent advice on the most appropriate form of investment of the charities funds.

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate our exposure to the major risks. Financial reports are prepared each month for the trustees which compare actual results against targets set for the current month and year to date. Analysis of non-financial hazards arising from the undertaking of the work of Teen Challenge UK is done at a local level in line with Teen Challenge UKs health and safety policy. Such assessment, and the control measures resulting from it, is monitored through annual external health and safety consultant audit and internal inspection and supervision arrangements.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Plans for Future Periods

2022 has once again been a challenging year but as always it has been fantastic to see lives transformed from the slavery of addiction into the freedom and fullness that God intended people to enjoy.

The year under review has obviously been a very challenging and difficult year for many people, particularly in having to deal with the consequences of a pandemic, and Teen Challenge has not been immune from this.

We are extremely grateful for the sacrificial service of all our staff who have given themselves continuously in the face of all these challenges.

We appreciate our outreach workers who have continued to seek out the broken, offering all sorts of practical help as well as bringing hope for a better future.

In Matthew's gospel our attention is explicitly drawn to the prophecy of Isaiah announcing the coming of Jesus and we are reminded "In His name, the nations will put their hope". The year to March 2022 should act as a reminder to all of us that this truth is utterly central to our lives. Our hope and dependence must be in Christ, not just in time of international crisis but in the day-to-day detail of our lives.

We trust that whatever you have faced this year, you are facing the coming days with your hearts filled with a hope that only Jesus can give.

We are grateful for all who partner with us in seeking to reach out to those who are losing hope and we are thrilled at the progress and commitment of our City Outreach Team. To see the full circle of those reached, set free and discipled now serving full time to reach others is brilliant. Added to that are all those who are rebuilding meaningful lives and families with which we are greatly encouraged to be involved.

Covid-19 may have forced the country into lockdown but when doors were closed, God made a way to reach behind those closed doors!

The Trustees continue to seek to balance our geographic presence in the United Kingdom and, at the same time, afford TCUK the opportunity to meet identifiable needs and fill gaps in the provision of care.

Furthermore, following the implementation of a "street team" to be mobilised in the ten most problematic geographic cities or towns in the United Kingdom, it has already been evidenced that this initiative/strategy provides front line, acute, support (including local church support), care and referrals to residential centres.

We are always looking for opportunities to expand our outreach ministry and are grateful to see the continued development of an outreach work in Merthyr and also in the Forth Valley.

There are many towns and cities in our nation that need help and we are looking for workers and partnerships so that we can offer hope to others. We are grateful to all who continue to partner with us both financially and in prayer and realise what a vital role you play in this ministry.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Statement as to disclosure of information to auditors

In so far as the trustees are aware:

• there is no relevant audit information ofwhich the charity's auditors are unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a truce and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charity SORP;

• make judgements and estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them fo ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

A resolution proposing that Ashmole & Co be reappointed as auditors of the charity will be put to the Annual General Meeting.

On behalf of the board

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TM McCurry

Trustee

Date: 19 January 2023

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Independent Auditor’s Report To the trustees of Teen Challenge UK For the Year to 31 March 2022

Opinion

We have audited the financial statements of Teen Challenge UK for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of the charity’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Independent Auditor’s Report To the trustees of Teen Challenge UK For the Year to 31 March 2022 (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

• : the information given in the Report of the Trustees is inconsistent in any material respect with thee financial statements ; or

• : the charity has not kept adequate accounting records; or : the financial statements are not in agreement with the accounting records and returns; or : we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilitics, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under $144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report ofthe Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statement, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

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Teen Challenge UK — Annual Report for the Year to 31 March 2022

Independent Auditor’s Report To the trustees of Teen Challenge UK For the Year to 31 March 2021 (continued)

The extent to which the audit was considered capable of detecting irregularities, including fraud

(continued)

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the charity operates in and how the charity is complying with the legal and regulatory framework; - inquired of management, and those charged with governance, about their own identification and assessments of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, and the Charities Act 2011. We performed audit procedures to detect noncompliance which may have a material impact on the financial statements which included reviewing financial statement disclosures.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Section 144 and 154 of the Charities Act 2011 Section 44(1) (C) of the Charity and Trustee Investment (Scotland) Act 2005 Act. Our audit work has been undertaken so that we might state to the charities trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charities trustees as a body, for our audit work, for this report, or for the opinions we have formed.

S Keer

Ashmole & Co Statutory Auditors Chartered Certified Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 First Floor, 1 St John’s Court, Upper Fforest Way, Enterprise Park, Swansea SA6 8QQ

Pate? 20/0) / 2ZOZ3

13

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Statement of Financial Activities For the Year Ended 31 March 2022

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total|Total| |Notes|funds|funds|2022|2021| |£|£|£|£| |Income|from:| |Donations and|legacies|3|1,003,956|19,529|1,023,485|884,578| |Charitable activities|4|1,605,449|-|1,605,449|=|1,552,864| |Other|trading|activities| |Charity|Shops|=|-|a|=| |Investments|5|84,544|-|84,544|85,486| |Other|26,308|-|26,308|26,580| |Total Income|2,720,257|19,529|2,739,786|2,549,508| |Expenditure|on:| |Raising Funds|6|41,569|-|41,569|45,532| |Charitable|activities|7|2,707,417|15,933|2,723,350|2,623,427| |Total|Expenditure|2,748,986|15,933|2,764,919|2,668,959| |Net|(expenditure)/income| |before transfers|(28,729)|3,596|(25,133)|(119,451)| |Transfer between funds|17|-|-|-|-| |Net|(expenditure)/income| |before|revaluations|(28,729)|3,596|(25,133)|(119,451)| |Net gain|on investments|-|-|-|-| |Net|movement|in|funds|(28,729)|3,596|(25,133)|(119,451)| |Reconciliation|of Funds| |Total|funds|brought|forward|4,315,478|447,462|4,762,940|4,882,391| |Tota!|funds carried|forward|4,286,749|451,058|4,737,807|4,762,940|

----- End of picture text -----

There are no recognised gains or losses in either the current or previous year other than those included in the Statement of Financial Activities. All activities relate to continuing operations.

The notes on pages 17 to 28 form part of these financial statements.

14

Teen Challenge UK — Annual Report for the Year to 31 March 2022

	Balance Sheet	Balance Sheet	Balance Sheet
	at	31 March	2022
			2022		2021
	Notes	£	£	£	£
Fixed assets
Tangible assets	12		3,229,326		3,290,908
Investments	13		525,000		525,000
Total fixed assets			3,754,326		3,815,908
Current assets
Debtors	14	107,817		55,735
Cash atbank and in hand		1,020,132		1,009,402
		1,127,949		1,065,137
Creditors: Amounts falling due
withinoneyear	15	(144,468)		(118,105)
Netcurrent assets			983,481		947,032
Total assets less current liabilities			4,737,807		4,762,940
Netassets			4,737,807		4,762,940
Represented by:
Unrestricted funds	16		4,286,749		4,315,478
Restricted funds	17		451,058		447,462
			4,737,807		4,762,940

These financial statements were approved and authorised for issue by the Board and signed on their behalf by:

----- Start of picture text -----
iil f AA f _
il "f
T M McCurry
Trustee
----- End of picture text -----

Date: 19 January 2023

15

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Statement of Cash Flows for the Year Ended 31 March 2022

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |2022|2021| |ra|£| |Cash|flows|from|operating|activities| |Net (expenditure)/income|for the|financial|year|(25,133)|(119,451)| |Adjustments|for:| |Depreciation|of tangible|assets|72,372|73,817| |Interest paid|3,600|3,600| |(Profit)/Loss|on|disposal|of|tangible|assets|(666)|9:155| |Interest|received|(79)|(1,326)| |Cash received|from rent|on|investment properties|(5,250)|(9,925)| |Decrease/(Increase)|in trade|and|other debtors|(52,082)|225,906| |(Decrease)/increase|in trade|and|other creditors|26,094|(4,474)| |Cash|(to)/from|operations|18,856|177,302| |Cash|flows|from|investing|activities| |Proceeds|from|sale|of tangible|assets|666|653,816| |Purchase|of tangible|assets|(10,790)|(18,495)| |Interest|received|79|1,326| |Cash|received|from|rent on|investment properties|5,250|9,925| |Net cash|from|investing|activities|(4,795)|646,572| |Cash|flows|from|financing|activities| |(Decrease)/increase|in bank|loan|and|other|loans|269|(123,454)| |Interest paid|(3,600)|(3,600)| |Net cash|gained/(used)|in|financing|activities|(3,331)|(127,054)| |Net|increase/(decrease)|in|cash and|cash|equivalents|10,730|696,820| |Cash and cash|equivalents|at|start|of year|1,009,402|312,582| |Cash|and|cash|equivalents|at the|end|of the|year|1,020,132|1,009,402|

----- End of picture text -----

“Cash and cash equivalents” consist entirely of “Cash at bank and in hand”.

16

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

1. Company information

Teen Challenge UK is an unincorporated trust constituted under a trust deed and is a registered charity number 298900. The principal office is Willoughby House, Station Road, Upper Broughton, Leicestershire LE14 3BH.

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with 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 (FRS102) (effective 1* January 2019) — (Charities SORP (FRS102)).

Teen Challenge UK meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The trustees continue to pursue a strategy of maintaining contact with donors and increasing their engagement with potential sponsors and hence these accounts have been prepared on a Going Concern basis.

The financial statements are prepared in sterling (£), and rounded to the nearest pound.

• 1.2 Income

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.

Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.

Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold.

Income from investments is included in the year in which it is receivable.

17

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

1.3 Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop.

Charitable expenditure comprises those 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.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management.

Governance costs are the costs associated with the governance arrangements of the Charity as opposed to the direct management functions inherent in generating funds or charitable activity. Included within this category are costs associated with the strategic as opposed to day-to-day management of the Charity's activities.

1.4 Fund accounting

The charity maintains various types of funds as follows:

General unrestrictedfunds represent income which can be used in accordance with the charitable objects at the discretion ofthe trustees.

Restrictedfunds represent income to be used in accordance with specific restrictions imposed by donors or which has been raised by the charity for particular purposes.

1.5 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 residual value of each asset over its expected useful life, as follows:

Land and buildings - Straight line over fifty years Fixtures, fittings and equipment - 15% straight line Motor vehicles - 20-25% straight line

The Trustees have considered the deprecation policy of land and buildings. Land is not depreciated as its useful economic life is infinite therefore no deprecation is considered necessary. Buildings have been depreciated in accordance with the accounting policy note above.

Assets under the value of £1,000 are not capitalised.

1.6 Investments

Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities.

18

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

1.7 Pension costs

The pension costs charged in the financial statements represent the contribution payable by the charity during the year.

1.8 Hire purchase agreements

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated over the effective term of the hire purchase agreement. Future instalments payable are apportioned between the finance element, which is charged to the Statement of Financial Activities, and the capital element which reduces the outstanding obligation for future instalments.

1.11 Operating lease agreements

Rentals applicable to operating lease agreements where substantially all the benefits and risks of ownership remain with the lessor are charged against profit on a straight line basis over the period of the lease.

1.12 Non-derivative financial instruments

Non-derivative financial instruments comprise trade and other debtors, cash and cash equivalents and trade and other creditors.

1.14 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of financial activities.

1.15 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand. For the purpose of the cash flow statement, cash and cash equivalents are net of bank overdrafts which are payable on demand.

19

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

2 Net income/(expenditure)

2	Net income/(expenditure)
			2022		2021
			£		£
	Thenet income/(expenditure) foryear is	stated after
	charging:
	Audit Fee		7,800		7,140
	Depreciation and otheramounts written offtangible
	fixed assets:
	Owned Assets		72,372		73,817
	Profit/(loss) onDisposalofFixedAssets		666		(9,155)
	StaffPension Costs		63,918		62,388
3	Donations and legacies
	Unrestricted		Restricted	Total	Total
		funds	funds	2022	2021
		£	£	£	£
	Residential rehabilitation	807,655	3,596	811,251	769,748
	Outreach centres	195,696	-	195,696	76,867
	National training school	605	-	605	1,065
		1,003,956	3,596	1,007,552	847,680
	Government Grants:
	Coronavirusjob retention scheme	-	15,933	15,933	36,898
		1,003,956	19,529	1,023,485	884,578

4 Income from charitable activities

	Unrestricted	Unrestricted
	Total	Total
	2022	2021
	£	£
Residential rehabilitation	1,585,172	1,535,436
National training school	20,277	17,428
	1,605,449	1,552,864

Included in "Residential Rehabilitation" income are Housing Benefit receipts of £1,095,758 (2021: £1,058,795).

20

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

§ Income from investments

		Unrestricted	Unrestricted
		Total	Total
		2022	2021
		£	£
	Income fromUK investment properties	5,250	9,925
	Bank interest receivable	79	1,326
	Rentalincome	79,215	74,235
		84,544	85,486
6	Raising funds
		Unrestricted	Unrestricted
		Total	Total
		2022	2021
		£	£
	Costs ofgenerating voluntary income	39,470	43,519
	Investment propertymanagement costs	2,099	2,013
		41,569	45,532

uf Cost of charitable activities — by fund type

	Unrestricted	Restricted	Total	Total
	funds	funds	2022	2021
	£	£	£	£
Residential rehabilitation	2,511,571	15,933	2,587,504	2,475,310
National trainingschool	64,278	-	64,278	56,623
Outreach centres	71,568	-	71,568	91,494
	2,707,417	15,933	2,723,350	2,623,427

21

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

8 Cost of charitable activities — by activity

		Activities
		undertaken directly	Support costs	2022 Total	2021 Total
		£	£	£	£
	Residential rehabilitation	1,937,796	649,708	2,587,504	2,475,310
	National training school	56,710	7,568	64,278	56,623
	Outreach centres	71,568	-	71,568	91,494
		2,066,074	657,276	2,723,350	2,623,427
9	Analysis ofsupport costs
		Residential Rehabilitation	Training School	Total 2022	Total 2021
		£	£	£	£
	Staffcosts	265,173	-	265,173	265,199
	Othercosts	384,535	7,568	392,103	337,870
		649,708	7,568	657,276	603,069

Support costs have been allocated on the basis of support staff living in centres.

10 Trustees emoluments

	2022	2021
	£	£
Remuneration andbenefits	20,000	20,000
Pension contributions	1,101	1,100
	21,101	21,100

Mrs Lynn Hills is the wife of Phil Hills, a trustee of the charity. During the year she received remuneration of £20,000 (2021: £20,000). Pension contributions made on Mrs Lynn Hills’ behalf totalled £1,101 (2021: £1,100). The appointment and remuneration of Mrs Lynn Hills was agreed by the trustees and the level of remuneration is considered to be at market levels.

;

22

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

11 Staff numbers and cost

	2022	2021
The averagenumberofstaffemployed during
theyearwas 63 (2021: 65).
Theaveragenumberoffulltime equivalent staff	Number	Number
employed by the charity during the year, analysed
by category, including support staffwas as follows:
Residential care	51	52
Management& Administration	5	5
Charity Shops	-	1
	56	58
	£	£
Wages and salaries	1,184,507	1,201,128
Social security costs	89,178	89,968
Pension costs	63,918	62,388
Benefits in kind	3,720	3,720
	1,341,323	1,357,204

No employee received emoluments of more than £60,000 (2021: nil).

Trustees received reimbursement of expenses during the year of £nil (2021: £nil). The total number of trustees who were paid expenses was £nil (2021: £nil).

The total employment benefits, including employer pension contributions, of the key management personnel of the charity were £39,622 (2021: £39,622). The key management personnel do not include the Chief Executive who is not an employee of the charity (see note 20).

23

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

12 Tangible fixed assets

Tangible fixed assets
	Land and	Fixtures
	buildings _ fittingsand		Motor
	freehold	equipment	vehicles	Total
	£	£	£	£
Cost/Valuation
At 1 April2021	3,845,037	345,490	133,374	4,323,901
Additions Disposals	- ~	7,194 -	3,596 (9,210)	10,790 (9,210)
At 31 March 2022	3,845,037	352,684	127,760	4,325,481
Depreciation
At 1 April 2021	595,616	314,061	123,316	1,032,993
Chargefortheyear	55,248	11,914	5,210	72,372
On disposals	-	-	(9,210)	(9,210)
At31 March 2022	650,864	325,975	119,316	1,096,155
Net book values
At 31 March2022	3,194,173	26,709	8,444	3,229,326
At31March2021	3,249,421	31,429	10,058	3,290,908

The trustees consider that the market value of the land and buildings at 31“ March 2022 is approximately £4,311,605 (2021: £4,311,605). No professional valuation was carried out.

13 Fixed Asset Investment Properties

		2022	2021
		£	£
Valuation
At 1 April2021		525,000	$25,000
Transfers		-	-
Revaluations		ss	e
At31 March2022		525,000	525,000
Historiccostat	31March2022	318,513	318,513

All fixed asset investments are held within the United Kingdom. Investment properties have been valued at market value by the trustees of the charity. No valuation has been carried out by an independent expert.

24

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

14 Debtors

	2022	2021
	£	£
Otherdebtors	99,434	49,273
Prepayments and accrued income	8,383	6,462
	107,817	55,735

Included in Other Debtors is an amount of £22,458 (2021: £25,306) which relates to Housing Benefit.

15 Creditors: Amounts falling due within one year

	2022	2021
	£	£
Bank overdraft	4,123	3,854
Trade creditors	25.555	26,706
Othertaxes and social security	40,763	21,310
Other creditors	60,676	54,735
Accruals and deferred income	13,353	11,500
	144,468	118,105

16 Unrestricted funds

	General	General
	Fund	Fund
	2022	2021
	£	£
Balance at 1* April 2021	4,315,478	4,434,913
Income	2,720,257	2,508,626
Expenditure	(2,748,986)	(2,628,061)
Investment gains/(losses)	-	-
Balanceat315'March2022	4,286,749	4,315,478

25

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

17 __— Restricted funds

Restricted funds
	Balance at				Balance at
1	April2021_	Income	Expenditure	Transfers	31 March2022
	£	£	£	£	£
Lighthouse project Swaziland	2,282	3,596	-	-	5,878
NationalAssembly forWales	99,680	-	-	-	99,680
Swansea Evangelism	8,000	-	-	-	8,000
Moneyash Farm	337,500	-	-	-	337,500
CoronavirusJobRetention Scheme	-	15,933	(15,933)	-	-
	447,462	19,529	(15,933)	-	451,058

The Lighthouse Project Swaziland - Grants to Teen Challenge Swaziland to build homes for orphaned children at Hawane Farm. This fund represents an appeal to provide ongoing support for these children.

The National Assembly for Wales — A grant towards the costs of the new unit that has been built at the vocational centre in Ammanford.

Swansea Evangelism - The Swansea work of Teen Challenge was closed down in the previous financial year and funds have been set aside for future evangelism in the area.

Moneyash Farm - A gift received to fund the purchase of land adjacent to Willoughby House.

Coronavirus Job Retention Scheme — a grant to cover the salary costs of furloughed staff.

18 _Analysis of net assets between funds

_AnalysisAnalysis of net assets betweennet assets betweenassets betweenbetween	funds
	Unrestricted	Restricted	Totalfunds	Totalfunds
	funds	funds	2022	2021
	£	£	£	£
Tangible fixedassets	2,818,041	411,285	3,229,326	3,290,908
Investment assets	$25,000	-	525,000	525,000
Current assets	1,088,176	39,773	1,127,949	1,065,137
Current liabilities	(144,468)	-	(144,468)	(118,105)
	4,286,749	451,058	4,737,807	4,762,940

26

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

19 Taxation

As a charity, Teen Challenge UK is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

20 Transactions with trustees

Phil Hills is a trustee of TCUK and a Minster and trustee of Sherwood Church. Sherwood Church is part of the Elim Pentecostal Church (registered charity number 251549).

During the year payments totalling £58,728 (2021: £58,728) were made to Sherwood Church. These payments were a recharge for the contractual agreement which sub contracts Phil Hills to the role of Chief Executive of TCUK and Vice President of Teen Challenge Global.

During the year the charity purchased one vehicle from Phil Hills for £3,596 (2021: £nil for no vehicle). This transaction was considered to be at arm’s length.

21 Controlling parties

In the opinion of the Council of Management there is no single ultimate controlling party of the charity.

27

Teen Challenge UK — Annual Report for the Year to 31 March 2022

Notes to the Accounts for the year ended 31 March 2022

22 Statement of Financial Activities (including income and expenditure account) for the year ended 31 March 2021

	Unrestricted	Restricted	Total
	funds	funds	2021
	£	£	£
Income from:
Donations and legacies	843,696	40,882	884,578
Charitable activities	1,552,864	-	1,552,864
Other trading activities
Charity Shops	-	-	-
Investments	85,486	-	85,486
Other	26,580	-	26,580
Total Income	2,508,626	40,882	2,549,508
Expenditure on:
RaisingFunds	45,532	-	45,532
Charitable activities	2,582,529	40,898	2,623,427
Total Expenditure	2,628,061	40,898	2,668,959
Net (expenditure)
before transfers	(119,435)	(16)	(119,451)
Transferbetween funds	-	-	-
Net (expenditure)	(119,435)	(16)	(119,451)
before revaluations
Net gain/(losses) on revaluation
ofinvestments	-	-	-
Netmovement in funds	(119,435)	(16)	(119,451)
Reconciliation ofFunds
Totalfundsbrought forward	4,434,913	447,478	4,882,391
Totalfundscarriedforward	4,315,478	447,462	4,762,940

28