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2024-03-31-accounts

Teen Challenge UK

Annual Report and Accounts For the year to 31 March 2024

Contents

Reference and Administrative Details 1
Report of the Trustees 2 - 9
Independent Auditor’s Report 10 – 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Accounts 16 - 27

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Reference and Administrative Details

Charity Name: Teen Challenge UK Registered Numbers: Charity Number: 298900 OSCR Number: SC039475 Principal Office: Willoughby House Station Road Upper Broughton Leicestershire LE14 3BH Website address: www.teenchallenge.org.uk Trustees: P A Hills G McKim J Wellavise TM McCurry (Chairman) S Reilly D Williams Chief Executive: Phil Hills Registered Auditors: Ashmole & Co Chartered Certified Accountants & Registered Auditors First Floor 1 St John’s Court Upper Fforest Way Enterprise Park Swansea SA6 8QQ Bankers: Barclays Bank Plc 16 Vaughan Street Llanelli SA15 3UE Solicitors Dutton Gregory 48/50 Parkstone Road Poole BH15 2PG

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

Report of the trustees For the Year to 31 March 2024

The trustees present their report with the financial statements of the charity for the year ended 31 March 2024. 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 Ireland (FRS102) (effective 1st 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 remuneration set is fair and appropriate.

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

P A Hills TM McCurry

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

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.

  7. The provision of residential hostels.

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

  9. 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.

  11. 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 of job 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 2024

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 significant aspects of the charity's work including outreach centres and projects, 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/Executive Chair.

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/Executive Chair. Last year this team has completed its assignments in Doncaster and has commenced its work in Salford, Manchester, England. The Board are pleased with the progress of this initiative.

Outreach work in London is carried out by Teen Challenge London which is an affiliated work.

Residential Rehabilitation

There are currently six TCUK residential rehabilitation centres 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 a total possible occupancy of around 140 beds between our services.

During the year to 31st March 2024 each residential centre operated at an acceptable 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 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 Key Worker as well as practical vocational training to equip an individual with the necessary life skills for employment.

The Leadership Academy

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 2024

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.

We believe that key performance indicators can help Teen Challenge UK promote care to students.

To do this the Trustees consider some of the following measures in order to develop an approach to measuring performance of TCUK’s delivery of care to students. The relevant measures vary from time to time depending on a number of factors.

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 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 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 generally 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 number 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 2024

Key performance indicator data will differ between residential and outreach centres. Generally, however, they may include some of the following:

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 normally quarterly to Trustees, at Board meetings, to Centre Manager’s and to other key personnel via impact reports.

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 year to 2024 Teen Challenge UK has seen a total of 57 students graduate, 43 students graduated from its residential programmes and 14 students graduated from its Leadership Academy.

City Outreach Team

After completing a season in Doncaster the TCUK Outreach team moved into Salford, Manchester, England for around six months reaching out to those trapped in addiction with the gospel message of hope.

They continue to walk through the streets, knock on doors, link with local foodbanks, community chaplain and local churches running drop-in facilities and setting up the Outreach van outside homeless hostels and several housing estates in order to reach out to people needing help.

Students attending the leadership academy have been able to gain experience with the team once a week whilst in Doncaster and now gain experience in outreach work in Wellingborough working with our team of volunteers there.

The team regularly visits 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. 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.

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

Financial Review

Results for the year

In financial terms, the deficit for the year amounted to £274,209 (2023: £3,474 surplus). The unrestricted fund balances carried forward at the year-end were £4,012,346 (2023: £4,184,530). Restricted funds carried forward at the year-end amounted to £454,726 (2023: £556,751).

Like many other charities in the UK, TCUK 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. £1.60m) 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 £724,272 (2023: £882,062) 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 charity’s 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 2024

Plans for Future Periods

2024 has once again been a challenging year but as always it has been a great encouragement to see lives transformed from the despair of addiction into the freedom and fullness of life that we believe 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 global economic unrest and Teen Challenge has not been immune from this.

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

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

We believe that 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". This should act as a reminder to all of us who believe that this truth is utterly central to our lives. Our hope and dependence must be in Christ, not just in times of unrest, uncertainty, or crisis but in the day-to-day detail of our lives.

We are grateful for all who partner with us, whether in prayer or financially, in seeking to reach out to those in despair who are losing hope and we are thrilled at the progress and commitment of our staff and volunteers alike. To see the full circle of those reached, set free and discipled now serving full time to reach others is a reminder to the success of or residential rehabilitation programme which we offer to all. Added to that are all those who are rebuilding meaningful lives and families with which we are greatly encouraged to be involved.

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. We are delighted to have the continued support of the Local Authorities with the provision of financial support to our residents.

Furthermore, we are initiating our applications to open specific age-appropriate residential centres for those under the age of eighteen, (separately for males and females), throughout the United Kingdom, as it has already been evidenced that this is a much needed and vital initiative/strategy that is currently lacking. These age-appropriate facilities will be registered with Ofsted.

As always, there are many towns and cities in our nation that need our help and we continue to look 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 2024

Statement as to disclosure of information to auditors

In so far as the trustees are aware:

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 true 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:

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 to 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

T M McCurry Trustee

Date: 28th January 2025

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

Independent Auditor’s Report To the trustees of Teen Challenge UK For the Year to 31 March 2024

Opinion

We have audited the financial statements of Teen Challenge UK for the year ended 31 March 2024 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:

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:

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 2024

Independent Auditor’s Report To the trustees of Teen Challenge UK For the Year to 31 March 2024 (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:

Responsibilities of trustees

As explained more fully in the Statement of Trustees Responsibilities, 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 concern, 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 S144 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 of the 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 2024

Independent Auditor’s Report To the trustees of Teen Challenge UK For the Year to 31 March 2024 (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:

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.

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

29/01/2025 Date:

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

Statement of Financial Activities For the Year Ended 31 March 2024

Unrestricted Restricted
Notes
funds
funds
£
£
Income from:
Donations and legacies
3
1,045,551
3,392
Charitable activities
4
1,800,394
-
Investments
5
107,074
-
Other
42,785
-

Total Income
2,995,804
3,392

Expenditure on:
Raising Funds
6
71,683
-
Charitable activities
7
3,096,305
105,417

Total Expenditure
3,167,988
105,417

Net (expenditure)/income
before transfers
(172,184)
(102,025)
Transfer between funds
17
-
-

Net (expenditure)/income
before revaluations
(172,184)
(102,025)
Net gain on investments
13
-
-

Net movement in funds
(172,184)
(102,025)
Reconciliation of Funds
Total funds brought forward
4,184,530
556,751

Total funds carried forward
4,012,346
454,726		 Total
2024
£
1,048,943
1,800,394
107,074
42,785
2,999,196
71,683
3,201,722
3,273,405
(274,209)
-
(274,209)
-
(274,209)
4,741,281
4,467,072		 Total
2023
£
1,301,953
1,624,987
102,642
28,329
3,057,911

47,111
3,007,326
3,054,437
3,474
-
3,474
-
3,474
4,737,807
4,741,281

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 16 to 27 form part of these financial statements.

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

Balance Sheet at 31 March 2024

Notes
Fixed assets
Tangible assets
12
Investments
13
Total fixed assets
Current assets
Debtors
14
Cash at bank and in hand

Creditors: Amounts falling due
within one year
15
Net current assets
Total assets less current liabilities
Net assets
Represented by:
Unrestricted funds
16
Restricted funds
17		 2024
2023
£
£
£
£
3,174,359
3,188,753
525,000
525,000

3,699,359
3,713,753
137,346
70,266
789,269
1,106,394


926,615
1,176,660
(158,902)
(149,132)


767,713
1,027,528

4,467,072
4,741,281

4,467,072
4,741,281

4,012,346
4,184,530
454,726
556,751

4,467,072
4,741,281		 2024
2023
£
£
£
£
3,174,359
3,188,753
525,000
525,000

3,699,359
3,713,753
137,346
70,266
789,269
1,106,394


926,615
1,176,660
(158,902)
(149,132)


767,713
1,027,528

4,467,072
4,741,281

4,467,072
4,741,281

4,012,346
4,184,530
454,726
556,751

4,467,072
4,741,281
3,713,753
1,027,528
4,741,281
4,741,281
4,184,530
556,751
4,741,281

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

T M McCurry Trustee

Date: 28th January 2025

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Teen Challenge UK – Annual Report for the Year to 31 March 2024

Statement of Cash Flows for the Year Ended 31 March 2024

Cash flows from operating activities
Net (expenditure)/income for the financial year
Adjustments for:
Depreciation of tangible assets
Interest paid
Loss/(profit) on disposal of tangible assets
Interest received
Cash received from rent on investment properties
(Increase)/decrease in trade and other debtors
Increase in trade and other creditors
Cash (to)/from operations
Cash flows from investing activities
Proceeds from sale of tangible assets
Purchase of tangible assets
Interest received
Cash received from rent on investment properties
Net cash from investing activities
Cash flows from financing activities
Decrease in bank loan and other loans
Interest paid
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at start of year

Cash and cash equivalents at the end of the year
 2024
£
(274,209)
78,859
3,600
553
(7,662)
-
(67,080)
9,770
(256,169)
1,120
(66,138)
7,662
-
(57,356)
-
(3,600)
(3,600)
(317,125)
1,106,394
789,269
 2023
£
3,474
76,408
3,600
(4,715)
(1,660)
(1,550)
37,551
8,787
121,895
7,412
(38,532)
1,660
1,550
(27,910)
(4,123)
(3,600)
(7,723)
86,262
1,020,132
1,106,394

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

15

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

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[st] 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.

16

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

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 unrestricted funds represent income which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds 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.

17

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

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.

18

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

2 Net income/(expenditure)

Net income/(expenditure)
2024 2023
£ £
The net income/(expenditure) for year is stated after
charging:
Audit Fee 9,000 8,580
Depreciation and other amounts written off tangible
fixed assets:
Owned Assets 78,859 76,408
Profit/(loss) on Disposal of Fixed Assets (553) 4,715
Staff Pension Costs 60,207 66,466

3 Donations and legacies

Unrestricted
funds
£
Residential rehabilitation
742,094
Outreach centres
150,631
National training school
735
CORRA Foundation
152,091
1,045,551		 Restricted
funds
£
3,392
-
-
-

3,392		 Total
2024
£
745,486
150,631
735
152,091

1,048,943		 Total
2023
£
1,015,779
110,011
1,065
175,098

1,301,953

Included in “Residential Rehabilitation” income are legacies of £94,844 (2023: £329,254).

4 Income from charitable activities

Unrestricted Unrestricted
Total Total
2024 2023
£ £
Residential rehabilitation 1,783,141 1,612,257
National training school 17,253 12,730
1,800,394 1,624,987

Included in "Residential Rehabilitation" income are Housing Benefit receipts of £1,191,565 (2023: £1,057,248).

19

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

5 Income from investments

Unrestricted Unrestricted
Total Total
2024 2023
£ £
Income from UK investment properties - 1,550
Bank interest receivable 7,662 1,660
Rental income 99,412 99,432
107,074 102,642
Raising funds
Unrestricted Unrestricted
Total Total
2024 2023
£ £
Costs of generating voluntary income 56,626 41,405
Investment property management costs 15,057 5,706
71,683
 47,111

6 Raising funds

7 Cost of charitable activities – by fund type

Unrestricted
funds
£
Residential rehabilitation
2,899,444
National training school
63,604
Outreach centres
133,257
3,096,305		 Restricted
funds
£
105,417
-
-

105,417		 Total
2024
£
3,004,861
63,604
133,257

3,201,722		 Total
2023
£
2,747,792
64,248
195,286

3,007,326

20

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

8 Cost of charitable activities – by activity

Activities
undertaken
directly
£
Residential rehabilitation
2,242,097
National training school
56,153
Outreach centres
133,257
2,431,507


Analysis of support costs
Residential
Rehabilitation
£
Staff costs
270,649
Other costs
492,115
762,764		 Support
costs
£
762,764
7,451
-

770,215


Training
School
£
-
7,451

7,451		 2024
Total
£
3,004,861
63,604
133,257

3,201,722

Total
2024
£
270,649
499,566

770,215		 2023
Total
£
2,747,792
64,248
195,286

3,007,326

Total
2023
£
280,167
432,709

712,876

9 Analysis of support costs

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

10 Trustees emoluments

Remuneration and benefits
Pension contributions		 2024
£
20,048
414
20,462		 2023
£
20,000
1,101
21,101

Mrs Lynn Hills is the wife of Phil Hills, a trustee of the charity. During the year she received remuneration of £20,048 (2023: £20,000). Pension contributions made on Mrs Lynn Hills’ behalf totalled £414 (2023: £1,101). 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.

21

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

11 Staff numbers and cost

The average number of staff employed during
the year was 64 (2023: 62).
The average number of full time equivalent staff
employed by the charity during the year, analysed
by category, including support staff was as follows:
Residential care
Management & Administration
Wages and salaries
Social security costs
Pension costs
Benefits in kind
Redundancy		 2024
Number
52
5

57

£
1,290,797
100,867
60,648
4,180
17,000

1,473,492		 2023
Number
50
5
55
£
1,240,748
99,856
66,466
5,575
-
1,412,645

No employee received emoluments of more than £60,000 (2023: £nil).

Trustees received reimbursement of expenses during the year of £nil (2023: £nil). The total number of trustees who were paid expenses was nil (2023: nil).

The total employment benefits, including employer pension contributions, of the key management personnel of the charity were £46,215 (2023: £42,796). The key management personnel do not include the Chief Executive who is not an employee of the charity (see note 20).

22

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

12 Tangible fixed assets

Cost/Valuation
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
On disposals
At 31 March 2024
Net book values
At 31 March 2024
At 31 March 2023		 Land and
Fixtures
buildings
fittings and
freehold
equipment
£
£
3,845,037
386,126
-
30,930
-
-

3,845,037
417,056

706,112
342,861
55,248
12,713
-
-

761,360
355,574

3,083,677
61,842

3,138,925
43,265		 Motor
vehicles
£
128,254
35,208
(13,235)

150,227

121,691
10,898
(11,562)

121,027

29,200

6,563		 Total
£
4,359,417
66,138
(13,235)
4,412,320
1,170,664
78,859
(11,562)
1,237,961
3,174,359
3,188,753

The trustees consider that the market value of the land and buildings at 31[st] March 2024 is approximately £4,311,605 (2023: £4,311,605). No professional valuation was carried out.

13 Fixed Asset Investment Properties

Valuation
At 1 April 2023
Transfers
Revaluations
At 31 March 2024
Historic cost at 31 March 2024		 2024
£
525,000
-
-
525,000
318,513		 2023
£
525,000
-
-
525,000
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.

23

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

14 Debtors

Other debtors
Prepayments and accrued income		 2024
£
128,111
9,235
137,346		 2023
£
62,543
7,723
70,266

Included in Other Debtors is an amount of £36,144 (2023: £24,156) which relates to Housing Benefit.

15 Creditors: Amounts falling due within one year

2024 2023
£ £
Trade creditors 42,097 30,179
Other taxes and social security 21,399 20,941
Other creditors 74,863 77,781
Accruals and deferred income 20,543 20,231
158,902 149,132
Unrestricted funds
General General
Fund Fund
2024 2023
£ £
Balance at 1stApril 2023 4,184,530 4,286,749
Income 2,995,804 2,756,015
Expenditure (3,167,988) (2,858,234)
Investment gains/(losses) - -
Balance at 31stMarch 2024 4,012,346 4,184,530

16 Unrestricted funds

24

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

17 Restricted funds

Balance at
1 April 2023
£
Lighthouse project Swaziland
9,354
National Assembly for Wales
99,680
Swansea Evangelism
8,000
Moneyash Farm
337,500
Wales Legacy
102,217
556,751		 Balance at
Income
Expenditure
Transfers
31 March 2024
£
£
£
£
3,392
(3,200)
-
9,546
-
-
-
99,680
-
-
-
8,000
-
-
-
337,500
-
(102,217)
-
-



3,392
(105,417)
-
454,726

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.

Wales Legacy – Legacy income received towards the Teen Challenge UK ministry in Wales.

18 Analysis of net assets between funds

Unrestricted Restricted Total funds Total funds
funds funds 2024 2023
£ £ £ £
Tangible fixed assets 2,763,074 411,285 3,174,359 3,188,753
Investment assets 525,000 - 525,000 525,000
Current assets 883,174 43,441 926,615 1,176,660
Current liabilities (158,902) - (158,902) (149,132)
4,012,346
454,726		 4,467,072 4,741,281

25

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

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 Related Party Transactions

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 (2023: £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.

TCUK Scotland Ltd is a private limited company (company registration number SC707832) and is a related party as Mike McCurry and Phil Hills are trustees of TCUK and directors of TCUK Scotland Ltd and Mike McCurry owns 100% of the shares in TCUK Scotland Ltd. During the year the company made grants to TCUK totalling £152,091 (2023: £175,098). These grants were under the CORRA Funding. Further, during the year payments totalling £20,000 were made to TCUK which were a recharge for the contractual agreement which sub contracts Mr TM McCurry to the role of Executive Chair of TCUK. There were for the period December 2023 to March 2024. There were no amounts outstanding at the yearend (2023: £nil).

Moss Park Baptist Church in Glasgow is a related party as Mike McCurry is a trustee of TCUK and he is also a senior pastor at the church. During the year payments totalling £35,000 (2023: £nil) were made to TCUK which were a recharge for the contractual agreement which sub contracts Mr TM McCurry to the role of Executive Chair of TCUK. These were for the period May 2023 to November 2023. There were no amounts outstanding at the year-end (2023: £nil).

Freedom Challenge Trust is a charity registered in Scotland (registered charity number SCO33414) and is a related party as Gordon Cruden is a trustee of Freedom Challenge Trust and an employee of TCUK. During the year TCUK paid rent of £64,250 (2023: £64,250) to the charity. At the year end the amount due by TCUK to the charity was £46,896 (2023: £53,276).

During the year the charity purchased no vehicles from Phil Hills for £nil (2023: £5,090 for two vehicles). 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.

26

Teen Challenge UK – Annual Report for the Year to 31 March 2024

Notes to the Accounts for the year ended 31 March 2024

22 Statement of Financial Activities (including income and expenditure account) for the year ended 31 March 2023

Unrestricted Restricted
funds
funds
£
£
Income from:
Donations and legacies
1,000,057
301,896
Charitable activities
1,624,987
-
Investments
102,642
-
Other
28,329
-

Total Income
2,756,015
301,896

Expenditure on:
Raising Funds

47,111
-
Charitable activities
2,811,123
196,203

Total Expenditure
2,858,234
196,203

Net (expenditure)
before transfers
(102,219)
105,693
Transfer between funds
-
-

Net (expenditure)
(102,219)
105,693
before revaluations

Net gain/(losses) on revaluation
of investments
-
-

Net movement in funds
(102,219)
105,693
Reconciliation of Funds
Total funds brought forward
4,286,749
451,058

Total funds carried forward
4,184,530
556,751		 Total
2023
£
1,301,953
1,624,987
102,642
28,329
3,057,911
47,111
3,007,326
3,054,437
3,474
-
3,474
-
3,474
4,737,807
4,741,281

27