Teen Challenge UK Annual Report and Accounts For the year to 31 March 2025
Contents Referen(Y al AdminVe tktails Report of ihe Trustees Inde1 Auditor's Report 10- 12 Statement of Financial Activities 13 Balance Sheet 14 Ststemeni of Ch Flows Is Notes to the Accounts 16.27
Teen Cha]lenge UK- Annual Reimmt for tF* Yearto 31 March 2025 Referenee vand Administrative Detsils Charity Name: Teen Challenge UK Registered Numbers: Charity Numi%r: OSCR Number.. 29891K) SC039475 Principal Office: Willoughby House Ststion Road Upper Broughton Lei¢esiershir¢ LE14 3BH Website addre." Trvw.teenchalleng¢.or&uk Trustees., P A Hills TM Mccurry (Resigned l 011112025) G McKim (Resigned 1411112025) S Reilly D Williams K Wood Chief Executive.. Phil Hills Registered Audit(r5,' Ashmole& Co Chartered Certified Acc4)untants & R¢8i51ered Audi18 FI FI I Si John's Court Upper Fforest Way Enterprise Park Swansea SA6 8(5) Bank¢rs: Barclays Bank PIC 16 Vaughan Strea Llanelli SA15 3UE
Teen Challeng¢ UK- Azlllljal RePrt for the Year to 31 March 2025 Report of th¢ trustees For the Year to 31 Mareb 2025 The inee$ PJEsent their retth with the fi1] statanents of the charity forthe ye4r ended 31 March 2025. The trustees have adopled the provisioTL4 of the Ststemeni of Recommended Pr&tice (SORP) 'Ac¢ounting and Reporting by Charities.: Statemey)l of Recommended Practice applicable to clHrities preparing their accounts in a¢¢ordance with the Financial Reporting Sthndard applicable in th¢ UK and Republic of Ireland (FRS102) (effective 1st January 2019). Struetsre, Governance and Management Governlng d(>tument Teen Chailenge UK is an unin¢orprated trst ¢onstitthed under a In deed dated i Mar¢h 1988. which was varied on 26th August 2(K)3. and is a regislered charity number 298900. Re(ltment and appolntrnent oftbe Coun¢ll of Management The charity is govemed by a Board of Directors &$ the charitys tnjstees wkn rtspjnsible to give dirxlion and oversight to 411 &spe¢ls of its artivitie5. New direclors 8re appointed by the Bc4rd of DireLlors io serve until they wish to retire or are disqualified from continuing as a director in accordance with th¢ Tru51 Deed. The Trn Deed provides for a mtnimum of three to a m&ximum of seven directots. Inductlon and tralnlng of Tstes New Trustees &nd Dir¢¢tors undergo an inducti{ day to Erief them on their legal obli8alions w)der charity law, Ihe content of lh¢ Trust Deed and the committee and dxision-making pnxess. They will meet key employees and other dire¢lors. Directors are encoura8ed to atteThl ¢xrnal trainin¥ events where these will be of b¢r]I io their role. Organl$8tlonil stru¢¢ure Deci.8ions affecting aspects of th¢ Work that have a naiiotlll impact are by the Board of Directots. Rev. PA Hills, has been seconded from The Elim Penlecostsl Church to the rol¢ of Chief Executive, responsible for overs¢ein¥ the Charitys work on a day lo day b45]5. at¥J look the ruessary action io implement Board decisions. R¢v. Hills also holds the position of Vice PresidenL Teen Challenge Global. The Board of Dirertors, ordinarily rn¢ four times in each calendar year. Remunerntion of the key mawement personnel is approved by the thtstegs 8Th1 is reviewed annudly and nomially in¢rea5ed in accordance with avernge earniw. The benchmark the key management Fwsonnel pay against pay levels in other charities of a similar size and activity. The followin8 trustees Ild property in Ik name of the charity: P A Hills TM Mccurry
Teen Cknllenge UK_Amiual RerM)rt for the Year lo 31 March 2025 Objectives and Activities The charity trths believe they hav¢ Complied wth their duty in Section 17(5) of the Charities Act 2011 lo have due regard to Public Benefit guidae by the Charity Commi&sion and ha5 tsken acco1 of il in planning future actTviti¢s. The Objectives ar¢ contsined in the trust deed aThJ are as follows: l. The advancement of the Christian Religion FBrticularly among young people. 2. The relief of suffering among young people r¢lwin8 io mental or physical Falth or Sla7 or economic circumstall¢es or drug or alcohol or chemical d]erKy. 3. Th¢ relief of poverty or homelessness among any persons WI are the beneficiaries of the objects in l and 2 above. 4. The provision of oc¢upationa] r¢Trkqbilitslion lo any pusons who are the beneficiarits of the objects in l and 2 above. 5. The provision of coun5elling Servic for the giving of individ1 or group counselling and practical advi¢¢. 6. The provisi(m of resideniial centres for the relwbilitalion of rtrscms suffering from drng or akohol or chemical dependency or abuse. 7. The provision of residential ISle1$. 8. By the establishmeffl of caursts and centres for the training of evangelists, 5tr¢et workers supm aff in the ministry of the Charity. 9, By the prowsion of yallOnal trainin8 and for ihose under8oin8 occupaiional rehabiliiation. 10. By the payment of trainin8 grants or fees io any Company wholly owned by the chtY for the purpose or fulfilling the objects reled to vocatiorMI training and o¢cuNionai rehabilitation. I l. By the offering of &dvi¢¢ and training to the beneficiaries of the Charity's obje¢ls in Connection with employment including a system for Ihe wrilln8 of Cv's and the provision of job search f7]EtIes. How our activiti deliver publ1¢ benefit In the year under wiew, the activitie5 of Teen Chal]eng¢ UK continue to focus on 8 specifio idcntif]able secli<m of the public. The primary beneficiaries are those individuals who experiencing life-conirolling issues c&u5ed by sub5tsnce misuse disorder or who are in danger of engaging with su¢h activities. Other beneficiaries include families of addicted individual& Communities in which ihe charity works and th¢ general public who reap the benefit of our work through there b¢ing few¢T addicts on the streets than there might otherwise have becn: Ihe saving5 to Local and National Governments from a ¢onscquential lessening of drug related ¢rime and savin8S arising from a lesser de[nal on heahh %rwces amon8St other societal benefits. The local service3 of Teen Challenge UK are open io all people experi]ng life controlling issues re8ardle5s of colourtr gender, a¥e or r¢li8ion. The CO of resideniial help is high and applican14 who are able. are encouraged to make a contribution to the cosi of th¢ir supwrt. However. ntrone is ever refused admi&8ion on financiai grounds. It is genernlly recognised thai one of the major problenLS in the UK affecting young people 15 drug misuse. Th¢ consequences of ihis for society are many" antisocial behaviour. street ¢rim¢ drug related health problem5, increased policin& costs, drug related crime, incre&sed prison populations. escalating insurance claims and premium4 social costs in traumas suffered by those are burgle4t Lssaulied or otherwise subjected to the ¢onsequentia] effects of crimina] ljehaviour. Teen Chall¢nge UK works with Feople of 811 ages in its prevention and inten/ention tiVities and in its residenlial reh&bili1ation facilities. In the year under Teview, th¢ arage length of addiction residents errtering a residential Tehabililation programme was opwoximately ten years and alcohol alld ¢o¢ain¢ the m05t common 5ubstance5 ca]ng addiclion. The gcope of activities that Teen Challenge UK is able to in to fulfil its objectives is obviously lirnit¢d by its available resources. However, it is clear that there is &mM)uS public benefit in the chaTity c8y7ng out its activities to achieve ils ststed objectives.
Te¢D Challenge UK_ Annual Report for the Year tr) 31 March J)25 Achievements and Performance Ensuring our work achkves our •im$ Our aims, obje¢tives aThJ activities are reviewed at our r¢8ular m¢¢tin8s of the Board of Directors. These reviews cover significant aspects of ihe charity's work including outwh centres and Projec residential centre4 FKrsonnel. fi[r. achievements and outcomes. The reviews alx> help us ensure our aims, objectives and activiti¢s remain rused on our staled purposes. The Board of Dtrectors Continue to Yely uponthe guidance contained in the Charity Commission's genernl guidance on public benefit when reviewing our aim5 and objectives atbj in planning our future &ctivities. In parti¢ular. the DiTectOTS cO$1der how planned a¢tivilie5 will cL)nknlyuie to th¢ aims and objeclives Contained in the Trust Deed. The objectives of the ch8rity are achieved through Outr WOTL residential Tehabililati¢)n centr Tl)e Teen Challenge Leadership Academy in rrther aptffopriate ways. Outreach work In tern]s of outreach worL Teen Challenge UK has a network of volunteers who make themselves available io p¢opl¢, of all ages. who may need help, adviee or guidance ai Iwations in Swtiand. England. Wales and Northern Ireland each week. During the peri outrexh teams operated throughout the United Kingdom. These centres are govemed by Sieering Committees consisting of resrKJnsibl¢ local people. The Committees are governed by The Teen Challenge UK Trust Dced and there is a¢unbIIIlY lor their activities lo the National Bo8Td of Direciors through ihe ChiefExeClVeeeUIIve Chair. In addition to these voluJ#¢er& The Board has sei a fvll-time team of outreach workers to work sy5t¢matically through the most deprived tOWTAS and cilies of ihe UK where we do not currently have volunleer teams.'Ihis team rents accommodation and liv¢8 in an area for approxin)ately six months working amon8 ihose wth life controlling problems. The Team Leader is apwinted by the Board and is ac¢ountable to the Chief ExecutivxecUtive Chair. Last year this tcam has completed it5 IgnMents in Salford, MheSter and is preparing to Commence its work in t1 Co1&] towns ofNorih Wale& The Board 8r¢ Ple¢d with the progress of this initiative. Outreach WO in London is carried out by Teen Challenge iA)ndon which is an affiliated work. Residentil Rthabllltalloll There are currently six TCUK residential rehabilitation centres opernting in Engld, Wales and Scotland. Th¢y offer accommodation to rn¢n aTrJ women who an)ly lo the chariry for help to overcome their addiction problems. There are currently a tota] p)ssible (uPan of arouTrJ 140 behveen our services. During th¢ y¢4r lo 31 st March 2025 each residential centre operated at an ac¢eOable level of bed (upanCY Turnover of residents remained at a generally acc¢ptabl¢ low level. Turnover of s¢&ff was also noted as very low. Taken tO8ether this contributed to 5tsble and wsitive environments in the residemial centres. The residential rehabilimion centres offer a structured daily programme thai is designed help each resident deal with the i5sue5 that ci)ntributed to their addictions and to learn how to fu$ on their present challenges and tUre goais. This is achieved through a combination of group activities. One-tne sessions with a Key Worker &8 well as practical vocational trdining to equip an individual with the nxe55ary life 5kill5 f(r employment. Tbe Lexdtrsblp Academy The organisation's trdining obj¢¢live is fulfilled primarily. through tk one or twYeAr Sidential training cours¢ offered by ihe Leadership Academy. The urse is deSie0 to train the participants in the basic r4uirements of leadetship and particularly applied to working in 2 sityation wheTE outreath 15 the main emphasis.
Teen Challenge UK-AnllU Report for the Year to 31 March J)25 Performance Mea8ures Teen Challenge UK residential rehabilrtation progrn are sucsSful in helping individuals suffering from substance Tllisuse disorder in n)any significant an4 iThknd. lif¢ changing ways. We measure this by assessing key perforn)an¢e indicators (KPts} that our TE5idethial centres colkcL analys< and repvrt. We believe that key perf$)rn Indicato Can help Teen Challenge UK pmmote care to stud¢nts. To do this the TneeS consider some of the following MuTeS in or&r to develop an approach to measurin8 perforn)ance of TCUK'S delivery of caye to students. The relevant me&8ur¢s vary from time to tim¢ d¢p¢nding on a number of factor3. Struc¢Mrol Meas4rtr. Structurdl quality measures refer to the featur¢s of TCUK that deterniine its capacity to provide care. such as the existence of an electronic records system or the ratio of supixjrt stsff7care providers to students. Process MeofUhYS.. Process measures are used to assess how well care is provided lo a student ai TCUK residenlial centre, in line with r¢¢0mMendJ0nS for clinical praciice. These recommendations are based on r¢seanh evidenc¢ or consens$ (i.e.. the views of experts when the research evidence 15 lacking or irtconclusive) regarding the probability that providing services will achieve the dired owcome& Generally> Process measur&4 are expressed as rates, with the denominator defining a population that is of interest trcause of its demOaphIC and clinical condition, and the numcrator definin8 the SuOuP re¢eivin8 specific services. ProL%ss measures are particularly imw)nani in the development of perforniae measures because they can be used lo ideTJlify SP]fiC are of care thai may need impTovemenl. For example. if clients aTe not entering a sIdential course aftcr an iniliai service, additional outreach efforts could be moumed lo increase clients in resid¢nli41 programs. Moreover. the data to calculalc pr(ess measures often obthined L8 part of an administrdtive d gyJt¢m thai includes inforniation on clients. dales aThl types of treatment servic¢5. Ouicome MeqsAre&' These measuT¢S generally are used io evu1t the slat¢ of a srudem's heahh resulting 6bm the health car¢ servi¢es prowded and interyentiors received whilst on a TCUK residential program. In general, outcomes are consid¢r¢d both in tern of student fun¢tioning and Intern of categoriesof symplom severity relaled lo the swdeni's clinical probl¢m. For substance misuse disorder4 health outcome5 can be expanded to include four areas: sustained reductions in subsw)ce use, improvements in Frtrsonai he&liK 5U5tairKd improvernenls in functioning (e.g.> employmenv family life and Tejationship rOn¢111&11On). and Sustsined red1195 in Ihrnats to public hea]Ih and safety. Attributing improved Mudent outcomes to TCUK'S S¢ifiC actions ¢an sometimes be diffi¢uli baUse outcom¢ me&sures of quality fffl¢ct the cumulative impad of muliiple fathoT5 such as the timelirw of seNc¢s and the appTopriatene&s of th¢ or number of seryices for a persort'5 substance misuse or dependence problem. Outcome5 also aTe infiuenced by factors thai ded on th¢ students themselves and are outsid¢ Ihe health Care system, such the choices th¢ students make (e.g.. to remain in tream)eM for the full eour5e of tEcommended tviGe5)' their livin8 Situatiow income. and employmeni. or whether th¢ students have (thr medical conditions. Access Hf¢Gsuru.' Acce55 measures the extent to which a person who ne•ls care and services is able to receive them. Sthdenl Experience.. Thes¢ measures are 888regat from students. rewts a)ut their Observatio of and participation in residential centres.
Teen Challenge UK_ Annual Repw)rt for th¢ Y¢8r lo 31 Mah X125 Key perfonnance IndiOr dats will diff¢r betwe Tesidential and outreachcentre& Genernily, however, they tnay in¢le some of the following: Referral numbers from outrea¢h w0jt$. Occupancy rates al residential centres" Number of witlKtrawYls fn)m a TCUK pro8 Length of time b¢tween the referral dale and the sffvice provider's first aFoointment with the student. Succe&sful ¢ompl¢tion of program. Graduatio Percentage of students returned to wo[further sw after program completi Cosi of providing carc. KPJ dats is collethed, amlysed, and evaluated on an ongoing b&sis to ensLfC TCUK idcntifies trcnds and the cfftL# of service. Parameier changes on outcornes are identified in a tirnely m8nn¢r. RertS are rnMunicated nOMllY quarterly to I'ntses. Board meeting4 to Centre Mar4er's znd to other key person] vi8 impact reports. KPJ'S will continue to serve as aquality UTSnce tool for T¢¢n Ch&llenge UK. The infornmtion they provide helps us promote care ihat is xcessible. service4lriveo c4)st.effectI evidence•bas¢d. 8nd Ksults.focwed. During the year und¢r ffview. the Truses are Satisfied with the reported Te5uIts in each of the wfornianc¢ indicators which they identify as key. For the year lo 2025 Teen Chllen8e UK has seen a total of 57 Udents grnduate, 43 students adUated fmm it8 residential programmes and 14 sludcnts grnd*d from its Lukrship Academy. Clty OulreAch Team The Ciry (treach team spent six months in Salford, mar and thcn scopin8 Out the coast8] towns of North Wale5 in prep8ration for their work in Teachin8 out lo trakwed in addiction with the gospel message of hope. This work commenced in May 2025. 'rhey Contin lo walk through ihe streets. knock on doors. link with local f(KyJbanks, community chaplain and local churches runnin8 droFin facilities 8nd setting up the Outreach van outside homeless hostels and several housing estales in order lo reach out lo people needing help. Students allending ihe le#ikrshAp academy have been able to gain exptrience with the team in outreach work in WellinBborough working with (w t¢am of volunteer5 there once 8 week. The team Tegul&rly Trisits wl¢ individua]ly on the streds or outside where they live for a chaL prayer, refreshments and share the Word of God which we also prirn out and on many ctta5ion5 T5 being stuck up on their walls. It 15 $0 important to work alongside Church CluT&s1n& SUprtI arnl helping each other as the body of Christ so we thank you for all you do.
Teen Challenge UK_ Annual Rert for the Year to 31 Mah 2025 Financial Reviejv R¢swlts for the year In financial tern)s, Ihe deficii for the year amounted to £47,913 (2024: £274.209). The unrestriaed fund balances Tied forward ar the year-end were £4,409.989 (2024: £4,012,346}. Restricted funds carried frThard At th¢ y¢ar- end amount¢d to £9.170 (2024.. £454.726). Like many other ¢harities in the UK, TCUK cOnlin to rAperiee finarKial challenges which appear lo be exacerbalcd by the continuing globa] economic downwrn and consequential arity mwures. We c4)ntinue lo work with the challenges aThJ pwsue of intaInIng conlact with donors aryl inrn5ing our engagement with potential Spo0rs. RerVeS pollcy ThetneeS have considered the chariry's requirements for raserves in lighi of the rnain risks to which it is exposed. The clwity maintains suffi¢ienl r¢seTves and quickly saleable aet8 lo enable the residential centres to cover th¢ir overheads for ai le&8t six months (approx. £1.90m) to ensure that existing residents do not suffer any di5riiption during the resulting wind down period should funding ceas¢. PrlRelp81 fundlng sources The Teen Challenge UK Trust Deed difftrentiates between Local Works and National Works. The f(Kmer are 80vcrned by Steering Cornmittees and Ial trUe¢S and are resw)n$ibl¢ for the raising of their own finance& The primary sour¢es are local donAlions. ¥ifts from I(] churches and I1 Gran¢ Making Trusts. Nalional wurk5 refer primarily to re5id¢ntio1 facilities and ihe provision of fIng is the re5wnsibility of the National Board of DirecloT5. There are lour primary sources of funding- Housing B¢nef?l. ¢ontTibuEions made by residents from Stste Benefits. onethorr donalions received from the general public And churches and monthly donations received by StaThJing Orders fmm the genernl public. Applications are also made to Gpdnt Makin8 Trusts to h¢lp with the financin¥ of major new projexts ¢.8. purthase of new facilitie4 equipmenl etr. Investmcnl wvtrs Thc Truses seek to take IndenI advice on the rnost approErith forn? of inveskneni of the charity's funds. Rlsk mn*gtment The trustees have assessed the maj(r risks to which the charity is exp)sed in particular thosc related to Ihe operations ond finances of ihe charty and are satisfied that systems are in place to mitigate our exFx)5ure to ihe major risks. Financial rep(rts are preFored each month for the trthstees which compare actual r¢sulls against targets sel for the current month and year to de. Analysis of non-financial ha72rds arising from the undertaking of work of Teen Challenge UK is done at a local level in line with Teen Challen8c UKS h¢alth and safety policy. Such assessment. and ihe Control me&8ures resulting from it. 15 monitored through annll ex¢wnal heahh and safety Consultant audit and intemal iPection and sutmision arrangements.
Teen Cball¢ng¢ UK- Annu ReFL)rt for the Year 31 March 2025 Plans for Future Periods We are pleased with wEMt bas aL%lpI]Shed by adedicatsj staff team aryl the outre¥h workers andvoluTrteers that work sacrificia]ly io bring hop¢ io those in addiction. It is gcM)d to have ihe continued support of donors and of LA)cal Auihoriiies with ihe provision of fitwhcial Sup& to our residents. The receipi in 2024. of the first increase in housing beneftt in twelve years will allow to inc the iInpaci of our activiti&s. The Gharitsble income h&8 heavily subsidised the residenti rehabilitation and the irKrease in h)using benefft dreaS¢S the level of subsidy needed and operts the d)r lo other opportunitits. In July 2024 we employed an outreach worker io Scottish prisc*)s and we look forwdrd to ¢valualing this work with the consideration of doing the same in thher geographical areas. We have submitted appIltion lo OFSTED to registered to nm children's homes. There is rm) deditrd residential rehabilitation available in Ihe UK for under 18's though the need for such is Obvio to those working in the field. We have identified two pmISeS ihal we will dedicate to boys un(kr 18 and to girly und¢T 18 and we continue to pursue our application with OFSTED. We are Iwking for appropriate premises in Northern IT¢land w open a resideniial rehabilitstion centre and ¢0 date have viewed quite a number of properties have not yet found one that is suitable. We will continue to pursu¢ this. The provision of a centre within Northern Ireland will eose the pressure on bed spaces and waiting tim¢s because of the volume of applicants from that are In January 2025 our B(Mrd mad¢ the decision to appoint a Church Liaison Officer. to support local churches to work wilh family and friends affected by addiction and where p)55ible, to work with twple in addi¢¢ion. We are pursujng this apwintment &8 part of our future straie8y. W¢ arc considerin8 ways of developing vo10 training so thai it is fvlfilling for residents during iheirtime with u¥ with the prospect that li may enhAnce the ¢mployability of residents when they move on. One of our most significant ¢hailen8es is Ihe provisim of affordable, movevon accomm¢)dation where residents a in employrneni. Sotne ruidents will necewily return to 1r home area and family resr<Jnsibility. Others do nol want io rclurn home bul we want to help them find employment 8$ sp¢nding lime, unoccupied. is not a recipe for ongoin8 success in their abstinence from dru8 use. Many organilOn5 will help with the Provision of accommodation for those on b¢nefiL8 bui finding affordable accommodation for graduates on low income 15 difft¢ult. We are exploring ways and p8rtn¢rships we wtll hopefully be able to make this happen.
T£¥n CThallcng¢ UK- Annual R¢p)ri for ihe Year lo 31 March 2025 Slatement Is to dlselos#re of InforntIOtt to #lldlton In so fir ns tIK trn$trtS aT¢ 9W•. thcrc 18 no rcl¢vBnl Budil infom)ation ofwhich the ch1($ auditW5 arc unpw¥rc' ond Ihe truslees Ve taken all epS that ihey ought io have laken to IMk¢ thenwlves aw4re of any r¢l¢vonl audit inforn)Trtion und lo &blish ihai ihe auditors ay¢ aw8r¢ of Ihat infornmtion. Statement of Irustees. rttponslbllltlei The Inlee5 ue respOnsi]e for pwriiig the R¢wi of th¢ TNses wl the finnncial aalemaus iii ¥CordWe wilh #N)li¢Able law ond Unii¢d KIn8th A¢UnI1ng Siw)dwds (Unilpj Kingthm G¢nernlly Ac¢cp¢ed A¢¢ouniiiig PTac¢s¢e). Th¢ low applicabie lo ch4rilie5 ill Engl1 aThl W8le4 ihe Clwilies A¢1 2011. athrity IAccounis aiKI Reports) ReMuliiiorkS 2008 and the provisiims of thc trusi dccd requircs thc truMec8 kn pr¢parc finon¢i•l SiOI¢t$ for ¢ach rinancial Jrar which gi a ITUC pnd fair i'lew L)r Ihe s¢etc ofaffairs ¢h¥ri¢y and of lh¢ Inc18 resources
IMI &1¢*tIon of r¢sOu¢S. iKludin8ih¢ in¢onK ftnd ¢xp¥xthiure. ofik chrity for tknt period. In prerIng ihose
rinancial slalcmenl& ihc Intee$ arc required 10: lect $uitbl¢ #¢¢ountln8 poli¢i¢J #nd apply ihem ¢oMi8ntly. obsme Ilie ntlKxls and prin¢iples in I1 Chlriiy SORP. ITJake judg¢m¢n15 and ¢$linwics Ihol aw r¢Jw)n)blc and w1¢1. prepjre the fiN811¢iai alements on ihe ¥oin8 conccm basi5 llTb5 li li in•wJryiate lo we¥unK i1 the hgrity will conliiiue in OTrIlOn. Tr tru¥tees are responsible fpr keepin8 acc<wting TCQ)nls which diKkn¢ wilh rt8sonabl¢ ¢wxey Il any lime the financial posiiion of the charity and IL) enable ihem io eTr8ure iht Ihe fInCIal 5tAlenienl¥ lwiiply wilh ilie C.harilios Aci 2011. Ihc ClioritylAccoun¢8 and Rcports) Re8ulalions 2(K)8 thc provi$ions of th¢ In deed. They nr¢ a160 r¢$fvwnsibl¢ for sof¢8uardin8 Ihc 4ucls of ihc churity and hence f(ff l¥kin¥ r¢j$?1bk st¢P5 for the Yvenlioh #nd ¢¢110 of fr•wl and h¢[ I¢8111#. Audlton A ffsolulion pn)posing Ihot AShnle & C'o be reapw)ind as audit(¥s of ihe chATity will be the Annuil G¢n¢ril M¢dins. On behalf of ihe bo4rd Phll Hllls Date: 24ih mOh 2026
Teen Challenge UK- Annual ReF for the Year to 31 Mar¢h 2025 Independent Auditor's Report To the Irustees of TeeD Challenge UK For the Year to 31 March 2025 OpiDlon We have audiled the finarjaI statements ofTeen ChaIlenge UK for the year end¢d 31 Mar¢h 2025 which comprise the Statement of financial Activitios, the Balan¢e SheeL the Cash Flow Staiement athl notes to the financial $l&tements. including a suttllw of significant accounling lIcIes. Thc financial renIng framework that h89 been applied in their prepardtion is aFvlicable law and Unitoj Kingdom Accounting Siandards, itKluding Financial Reporting SthndaTd 102 FinarKial Rwrting Stsndard Applicablc in the UK and R¢publi¢ of Ireland (United Kingdom Generally Accepted Accounting Prn¢iic¢). In our opinion financial stalements: give a true and fair view of the state orth¢ ¢harity's affairs as ai 31 March 2025 thl of the ¢harity's incoming rwwces and application of resources. including its income and expenditure, for the year then ended. have b¢en properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in ac¢ordarKe with the requirements of the Charities Aa 2011, the Charitles and Trustee Investment {Scotland) Act 21X)5 and regulation 8 of the Charities Accounts (Scthland) Regulalions 2006 (&8 amended). Basls for oplnion We ¢onducied our uudil in accordance with In1ernational Sthndards on Auditing (UK) (ISAS (UK)) and applicable 18w. Our responsibilities der those standards are lurther described in the Audilors SponSIbl1111es for the audit of the firancial statements section of our T¢pon. We are Indepejen1 of the charity in accordance wiLh the ethi¢al r¢quir¢menLs thai are relevani lo our audit of th¢ fin8nciAI Sthlements in the UK, including the FRC'S Ethica] Siandard. and we have fulfilled OLtr herethiCal rtswjrtsibiliiies in accordae with these requirements. We believe that ihe audit evidence we hav¢ obtained is sutTicieni and appropriate lo provide a basi$ for our opinion. ConcluOn$ relatlng to 8olttR ¢on¢ern We have nothing to report in resp1 of Ihe following matrets irt relation to which ISAS (UK) require us to report io you where: the trustees, use of th¢ going wncern b8sis of accounting in the preparntion of the financial statements is not ppmpriatr. or the trustees have not disclosed in the financial $tstemenls any identified material unceTlainties ihai may cast significant doubt about the charithble company's ability to conlinue io adopt the going ci)ncern basis of accounting for a peri(NJ of at le twelve months from the date when the financial staments Hre authorised for issue. Other Informatlon The trustees are responsible for the other inforniation. The other inforniation comprists the inforniation included in the annuui r¢wTL oth¢r than the fmancial ststernents and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other infornation and excem to the extent otherwise explicitly stated in our reporL we do n(rt exwe&8 any form of &ssurance CorKI8]l thereon. In conne10n with our audit of ihe financial ststem¢rt% our Trspon5ibility is to read the other infOrntion an(t in doing 50, roTrsider whether the other inforn)ation is mal¢rially inconsi51ent with the financial statements or our knowl¢dg¢ obtained in the audit or otherwise apr8TS to be merilY mi551aied. If we identify such material inconsistencies or apparent material Misslatemen we are required to detern)ine whher there is a materia] misstalement in the fllwicial ststem¢nts or a materiai misstatement of the other infornwtiorn If. based on the work we have performd we conclude that there is a material missi8tement of this other inforn)ation. we are require&l to report thai fact. We have nothing to retth in this Ycg8rd. 10
Teen Challenge UK- Annual RetA)rt for the Yearto 31 March 2025 Independent Auditor's Report To the trustees of Teen Challenge UK For the Year lo 31 March 2025 (continued) Matters om whl¢h we are requlrtyj to report by exception We have nothing to report in res of the following tDatters where the Charities Act 2011 requtres us to report io you if. in our opinion: the infor1ttiOn given in the Rep(fft of the Trte¢S is in¢oThststeni in any material Tespe¢t wilh these finla1 statements . or the charity has not kepi adequale aOUntIng T. or the financial staiements are not in agrLYment with the accounting re¢ords 8ThJ rewrns. or we have receiv all the infomwtion and explanatio we Tcquir¢ r(Y our audit. Responslbilities of trustees As explained more fully in the Ststemeni of TnL8lees Responsibilities. the trustees are responsible for the preparation of th¢ financial siatements and for being satisfied that they giv¢ a true and fair view. and for such internal control a5 the mLsi¢¢s delerniine is necessary enable the pParatiOn of finan¢ial stsiemenls that are free from mal¢rial MIlatemen( wheiher io fra or ern)r. In preparing the fina18] stslemern& the trusiees are responsible for a55e5sing the ¢hari¢y's ability lo continue as a going concern. disclosing. Is applicable. mallers related to going conceTn and SIng ihe going concem basis of accounting unless the trustees eItr intend to liquidaie the ¢h8riiy or to cease opuatiorLS, or have no re41istic alfrrnative but lo do so. Our responsibililits for the 4¥dll of the Iloanclal itatemtttts We have ken appoinied as auditors under S144 of the Charities Act 2011 and rel in accordance with th¢ A and relevant re8ulations made or having ¢ffeA thunder. Our objeclives are lo obiain reasonable &8surnnce about whctkn the financial slalements as a whole are free from Materi misstai¢m¢nL wh&herdue to frnud or error, and to issue a Report ofth¢ Independent Audiiors ihat includes our opinion. Reasonable assurancc is a high level of assurnnce, but is nol a guarantee that an alit conducted in accordance with ISAS (UK) will always 4 material misstatement when it exists. Misslalements can arise from fraud or error and aye con$id¢Tcd material if. individua]ly or in the 888re8ate, they could r¢asonably be expected to influence the econornic decisions of us¢rs tsken on the basis of these financial statements. The extent to wblcb the audh wy eoDsldered ble of dete¢llthg Irrryularitle4 llleludlng frlyd ItTegul&rities are instsnccs of nonrycompliance with laws aTrJ gulatIons. The objectiveg of our audit are to obtain suffi¢i¢nl appropriole audit evidence regarding complianc¢ with laws #Thl regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to rforn) audit pr(K¢dures lo help identify instanc¢s of non-¢ompliance with other laws aThJ regulations that may have a material effeci on the fllmncial stslemenl and to resrx)nd approprialy to identified ur sUspted non-compliance with laws and regula1105 identified during the audit. Jn relation to fraud. the objeiveS of our audit are to identify and assess the risk of material mi55tsfrment of the financial ststements due lo fraud, lo obtsin sufficient appropriate evidenc¢ re8arding the asse55¢d risks of material misststemeni due to frnud throu d¢5igning and ImplentIng aFVroate Tespcases 8nd to re5poTrJ appropriately to fraud or susp¢ded fraud identified ditring the a11.
Teen Challenge UK- Annual ReE for th¢ Year to 31 March 2025 Independent Auditor's Report To the trustees of Teen Challenge UK For the Year to 31 March 2025 (continued) The extent to wbl¢h ¢he audh was conshlertd t#pMble of dete¢titig trreguknrw tncluding fraud (contlnued) However, it is the primary responsibility of nwtagemeni with oveT5ight of those clwged with governance. to ensure that the entity's operntions are condwted in accordatKe with the provisions of laws and regulati(ms and for the prevention and detection of fraud. In idenlifying and assessing risks of matsria] misststem¢nl in resp#t of irregul8ritie4 including fraud, the audit engagement team: - Obtained an understsnding of the nature of the industry and sedor. Iluding the legal aT]d regulatory framework that the charity op¢ralcs in and how the charity is complying with the legal regulatory framework. - inquired of managemenL and those charged with governa[. about their own identificaiion and assessments of the risks of irregularities, including any known aciual. suspected or alleged instan¢¢s of fraud: discussed matters alx)ut norrfompliance with laws and regulations and how fraud might occur includin8 assessment of how and wher¢ the financial siatements may Susceptible frnud. As a result of these procedures we consid¢r the most Si8nificant laws and regulations that have a direct impacl on the fin¢?&1 statements are FRS 102, and the Charitles Aci 2011. We perfornied audit PredureS lo del non- mpliance which may have A maierial impact on ihe fin181 statements which Includ reviewing financial 5tst¢menl disclosures. The audit engagement 1¢8m idenlified the risk of management override of controls &s the area wher¢ th¢ finarKial statements were most $LLs¢eplible to material mi5ststemenl due lo fraud. Audit procedures rfOrmed included b were not limited to testing manuai journal entries and other adj5}entS evaluatin8 the business raiion&le in ret8tiOll io any si¥mific8nl, w]usual trartsathions and transactio entered irdo outside the nornial course of businevj. A further description of our respO81b]litlc5 for the a11 of the financial statements 15 located on the Financiai Reporting Council's website at Www,frc.UklddItOlwI*M5lb1lItscS. This dri10n forn part of ow Report of the Independent Auditor5. Use of our report This rew)rt is made solely lo the ChIty'S truthe4 as a IK#Jy, in accordan with Section 144 and 154 of th¢ Charities Arf 201 I Section 4411) (Q of the Charity and TTUSt¢¢ Investh)ent (Scrtland) Act 2005 Act. Our audit work h&5 been und¢rtak¢n so that we might %taie to the charities truste¢s those matters we are required to stsle to thern in an audilors, report and for no other Purpose. To the fullest extent pern)itted by law. we do not accept or assume responsibility lo anyone other than the charity and the charities tnteeS Is a b(, for our aj11 worL for this rep)rL or for the opinions we have fonned. OSThrnG.ie + C.0 Ashmole & Co Statutory Auditors Chartered Certified Accouniarts Eligible to act as an auditor in lenns of Section 1212 of the Companies Act 2 FiTSt Floor. I St John's Cour¢ UpFtr Fforest Way, EnleTprise ParK Swans¢a SA6 8 2£10312oL6 Date.. 12
Teen Challenge UK- Annual ReFKKt for the Year to 31 March J)25 Slatement of Financial Activities For the Year Ended 31 March 2025 Unreytricted Re&¢ri¢t¢d ds fund$ Totsl 2025 Total 2024 Notes Income from: Don8don$ and legAtleJ 955.777 3212 958.989 1.048.943 Chritbl¢ g¢¢lvttles 2,621480 1622,480 1.800J94 Inv¢slments 104.933 104.933 107,074 Other 43,104 43,104 42,785 Tot1 Income 3.726,294 3.212 3.729.506 2,999,196 Expendlture on: Raisi Funds 69.043 69.043 71.683 Chfjritable ¢tlvitieJ 3,71M.788 3.588 3.708.376 3201.722 TotAI Expendlture 3,773,831 3,588 3.777,419 3,273.405 Net (expendltureylneom¢ befort trnnslers (47,537) (376) (47.913) (274,209) Transfer bctw¢¢n funds 17 445,180 (445.180) Net (expenditureyin¢ome b¢fore revaluation$ 397.643 (445,556) {47.913) {274.2Cg> Net movement In funds 397.643 (445,556) (47.913) (274,209) Reconcillattom of Funds Totsl fuNls brought forward 4,012,346 454.726 4,467,072 4,741281 Totsl funds earrted forwlrd 4.4,989 9.170 4.419.159 4,467,072 Th¢re are no recognised gal8 or los$ in either the current OT previous year other than tho3¢ included in the Ststem¢nt of Finan¢ial Artiviti¢5. All activities rela to continuing operations. Tbe Doles on pages 16 to 27 form p•rt of these fillncil stat¢meo¢ 13
(IMllcng¢ UK- Annwl Rcp)rf for the Ycar to 31 Mah 2025 Blanee Sheet at 31 Mrch 2025 2025 2024 Flxed TgIble assets 12 13 3.1,073 525.1 3,174.3S9 s25,17 Tot*1 Ilxed ¢1$ 3.703,073 3.699,359 CMrr¢•t •J8eti Debtors CaRIi Ai bank and in hand 14 217.177 634.417 137J46 7119.269 851.594 926.615 Cr¢dilor8'. AiTh)unts follin8 th within on¢ yrnr Is 1135J081 (138.9021 Nel eurrent AJietJ 716,(A6 767.713 Tol•l iistti lem ¢urr¢nl Il•bMIt 4.419, ly) 4,467.072 Nei #Mets 4.419,159 4,467,072 Repruehled bv: Unr¢siri¢led RcJlriJ¢d fiindi 16 17 4.409,989 9.170 4,012,346 454,726 4,419,159 4.467.072 Thcse finaiicial sialwncnt5 wtt¢ aN>roYcd and auihofised for itsue by the Ik)orf and siwKd on Ikir bcknifby.. PH1115 Tiuslcc D•te: 24th Mah 2026 14
T¢en Challenge UK_ Am1 Rer forthe Year kn 31 March 2025 ststemeDt of Cash Flows for the Year Ended 31 March 2025 2025 2024 Csh flow$ from operadng ¢¢fvlties Net (exp¢nditur¢yincome for finarKial year Adjustments for: tkpreciation of tangible assets Inlere5t paid Lossllprofit) on diswsal of tangible assets Interest rtteived (47,913) (274.2Cg) 86219 78.859 3.OlX) 553 2.330 (5.928) (79.831) (23.394) (7,662) (67.080) 9.770 (InCreaseYdecre in trade and other delknr5 Increase in trade and other credito Cash (tovfrom opertlollJ (68,517) (256.169) Cayh flows from investlng 4¢¢fvl¢k Proceeds from sale of tsngible assets Purchase of thngible assets Intere5l r¢ceived 170 1,120 (66,138) 7.662 (92.433) 5.928 Net eijh from l•v¢g¢lng A¢¢fvl¢ks (86,335) (57,356) Csb llowj from flD#n¢lDg dfvltles Interest paid (3,600) Net cash used In finillcltsi aetlvitl {3.600) Net iTr¢reaJel(decruse) ia cJb and ¢qulv•lents (154.852) (317.125) Cash and cash equivalents at stsrt of y¢ar 789,269 1.106J94 Cash and $h equivltmts at th¢ end of ¢h¢ year 634.417 789.269 "Cath and ¢&sh equivalents" Consist entIlY of fash at at¥J in hand". 15
Teen Challenge UK_ Artnu81 ReF for the Y¢ar lo 31 Mwch 2025 Notes to tbe Accounts for the year eDded 31 March 2025 Compny Infornitlon Teen Challenge UK is an wilOrporated trSt Constit under a tru deed and 15 a regist¢Ted charity numbeT 2989(K). The prin¢ipai office is Willoughby House. Station Roa& Upper BiOught0 Leicestershire LE14 3BH. Basls of pr¢par*¢lon oTfinancl81 statements The fiTMncial stat¢m¢nts have Ixen prepwed in accordance with Ac¢ounting and Reptirting by Charities.. Statement of Recommended Practice applicable to charities prep their ac¢ount5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (¢ff¢dive I. January 2019)- (Charities SORP (FRS102)). Teen Challenge UK meets the definitton of a public benefrt entity und¢r FRS102. Assets and liabilities are initiatly recognised at historical or transaction value unless otherwise staled in the relevant accounting policy note. Th¢ Irustees continue ty pursue a strategy of maintainin8 contact with donors and incteasin8 their engagement with Foieniial sn5()rS and these ac¢ourtts have betn preparoj on 8 Going Concern ba5iS. Th¢ financial 5tstements are PTe&[¢d in sterlin8 (4. aTrJ round to the nearest pound. Income All incoming resowees are Included in the swemenl of fi131 aclivitie5 when the charity is entitled to the income and the amounl quantified wilh reasonable accurncy. The followin8 specific wlicies are applied io rtIcular categories of income: Voluntary iTKome is received by way of grants. dOnlon$ a1 gills and is irKluded in full in the statement of financial activities when receivable. Grants where entitlemeni is not condilional on th¢ delivery of a specific p¢rforn)ance by the charity. are T01J charity becomes ur0ndItionlY ¢ntitl to the granl. Donated services and faciliti&s are included ai the value to th¢ ¢hHTity where this can be quantified. The value of services provided by volunieers has noi been iDcluded. Gifts donated for resate are included as incomin8 resources within activitiu for genernling fund5 when they are sokl. Inwme from inveslments is incIled in the year in which it is e1Vable. 16
Teen Challenge UK- Annual ReF for Year 31 March 2025 Notes to the Accounts for the year ended 31 March 2025 IJ Expendlturt ExFthditure is recognised on an accrual bASts as a liabilty is incwyed. ExpeTrJiture includes any VAT which cannot be fvlly recovered. and is re[rted as part of the expenditure to which it relates. Costs of generating fund5 comprise the costs aslated with attrnQing voluntsry income and the cosis of trading for fundrdising purN)5es including the charitys shop. Charilabl¢ ¢xpenditure comprists those costs in¢uffed by the charity in Ik delivery of its aclivities and services for its trneficiaries. It includes both costs thal can be allLKated directly to sh activities and those costs of an indirect naturc necessary to supp(xt them. Fundraising costs are those incurred in seeking voluntwy contributions and do not irKlud¢ Ihe costs of disseminating infonnation in support of the charitable a¢tivitie& Support costs are those $ts incwred dirertly in supm of expenditure on the objects of the charity aThJ include project manag¢menl. Governance cS are the Costs associated with ihe govern arrangements of the Charity as opposed to the direct managemem funclions inherenl in 8enLYating funds or ¢harilable activity. Jncluded within ihis legory are cosis a&sociated with th¢ strategic as OFvosed to day-lo4ay mana8emerti of the Charity's athivitie5. Fund COUntI8 The charity maintairs various rypes of fimds as follows: General uMre.flriciedfwdf represent iome which can be used in accordan with the charitable obJts at the di5crelion of the tr$1¢¢& Re$trici¢dfunds represent income lo be Ltsed in acc(dance with specifi¢ restrictions imposed by donors or whi¢h has been raised by the charity for w(icular pwposes. Flxed •Jsets and deprt¢iatloD Tangible fixed &ssets ar¢ stsd at ca%t less auMUlated depre¢i4tion. Depreciation is prowded at rates ¢al¢ulaled to write off the Cosi residual value of each et over its cxpeckd useful life. 45 follows: Land and buildings Fixtures. fittings aThJ equIpthl Motor vehicl¢s Straighi line over firty years 15Vo 5traigbt line 21k250/o straight IitiB The Trustres have ¢onsidered the depreLXtion wlicy of land and buildings. land is not depreciated as its useful economic life is infinite therefore deprelxtion is considered necessary. Buildings have b¢¢n depreciated in ordanCe with the accounting lIcY note aknve. Assets under the value of £l,(KKI are not capitslisJ. Inveslments Investments held as fixed assets are revalKd at mid-market Val ai the ip1ae sheet de and the gatn or loss tsken the Statement of Fina1 Activities. 17
Tc¢n Challenge UK- Annual ReFrtKt forthe Yearto 31 March 2025 Notes to the Accounts for the yegr tnded 31 March 2025 P¢Dslo# costs The pension costs charyed in the fironci Stsments repr¢8ent the contributton payable by the ¢harity during the year. Hire purchase agreements Assets held under hir¢ purchase agreements are capitslised aThl disclosed w)der tangible fixed a5sds. Tl asset 15 in the balance sheet as a tangible fixed asset and is depr¢¢i)d over the effective terni of the hire purchase agreement. Future instslments payable are apportioned between the finance elemen( which is charged to th¢ Sthtemem of FirAncial A¢tivitie& and the (zpital C1ent which redu(%5 t outstanding obligation for lUre instslrnents. 1.1 l Operatlng 1¢48¢ aireements Rentals applicableio operating le¢ awents where substsmially all the terIts and risks of ownership remain with the le550r are charged 88ain wofit on a straight-line tsis over the period of the le. 1.12 Non-derivtlve flnalldal Instruments Non-derivative fwwicial instnments eompris¢ trade and other debtors, and cash equivalents and trade and other ereditOTS. l.A4 Debtorj and ¢redlton re¢eivable I p•yble wiehln ont yur Debtors and creditors with no slated intrre Tate and receivabl¢ (r payable wiihin on¢ year are recorded at transa¢iion price. Any losses arisin8 from impairnienl are recognised in the statement of finala1 activities. 1.15 C4$h 4nd eqvlv*leDts Cash And eash equivalents in the hlaTK¢ shee¢ wmprise c&8h at bank aTrJ tn hand. For the purp)se of th¢ Ash flow stat¢menL cash and cash equivalents are of bank overdrafts which are payable ort demand. 18
Teen Challenge UK- Annual Reixfft forthe YeaT to 31 March Xi25 Notey to the Aeeoumts for ¢he year ended 31 Mareb 2025 Net in¢omel{expeDditure) 2025 2024 The net income/(¢XFnditure) for year is stsied after chargin Audit Fee 9.720 9.000 Depreciation and other amounts written off tsngible fixed assets: Owned A&sets ProfiV(loss) on Dispos81 of Fixed Ass&s 86,219 {2.330) 78.859 (553) Staff Pemion Cos 69,312 60.207 Donatlon$ le8•d UDrestrleted funds Restrlcted fuDds Total 2025 TotAI 2024 R¢sidential rehabili¢aiion Outreach (xntres CORRA Foundation 677.730 115.479 162,568 3,212 680.942 115,479 162.568 746.221 150,631 152,091 955.777 3,212 958,989 1.048,943 Included in "Residential RehabiliiatiL" Iome are le8acies of £nil (2024.. £94.844). llcome from cb8rltsbl¢ *rtfvltles Unrtstrlcied Unmtrlcted Total To¢AI 2025 2024 Residentia] rehAbilits¢ion & Training School 2,622,480 I.8.394 2.622.479 1,800.394 Includd in lh¢ above inCle are Holl¥in8 Benefit rxeipts of £1,837,636 (2024: £1,191.565). 19
Teen Challenge UK- Am)ua] ReFX)rt for the Year to 31 March 2025 Notes to the A¢¢ouDts for tbe year ended 31 Mr¢h 2025 lllcome from iDvestm¢Trts Uirestrleted Unrestricted Totsl Total 2025 2024 Bank interest receivable Rentsi income 5.928 99,(M)5 7,662 99,412 104,933 107.074 Ralslng funds UnreJtrk¢ed Unrestrieted Total Tot1 2025 2024 Costs of generuling voluntary income Investment prop¢ty managemem Lx 62.158 fi885 56,626 15,057 69,043 71,683 Cosl of chirhable ACtfvltles- by type Unrestricted funds Res¢rS¢ted f¥nds Tot#1 2025 To¢*1 2024 Residential rehabilitation Outreach ¢¢ntres 3.621,726 76J05 3.588 3,625,314 83.062 3,068,465 133.257 3.704.788 3,588 3,708J76 3201,722 20
Teen Challenge UK- Atmual Rep for the Yearto 31 March 2025 Notu to the Accounts for the year ettded 31 Marth 2025 Cost of cbaritabk acllvtttts- by activity Aetivitie4 MJHlertake dire¢¢ty Smpport costs 2025 Total 2024 Tothl Resideniial rehabilitstion Outreach centres 2,713J19 83.062 911.9)5 3.625.314 83,062 3.068.465 133257 2,796.381 911.9)5 3,708.376 3.201.722 Anatysli of Jwpport costs ReJideDtl•l Rehabilitatio Tolal 2025 Tolal 2024 Stsff cc6ts Other costs 271.681 640.314 271,681 640.314 270,649 499,566 911.995 911,995 770,215 Support costs have been tIal¢d on the tosis of Sup1 staff living in centres. io Trustees emolumthts 2025 2024 Remunerntion and benefits Pension contributions 23.670 550 20,048 414 24,220 20.462 Mrs Lynn Hills is the wife of Phil Hills. a trustee of the clthrity. Durin8 the year she reLeived Temuneration of £23,670 (2024: £20.048). Pension contribthions made on Mrs Lynn Hills, behalf totalled £550 (2024.. £414). The appointment and remuneration of Mrs Lynn Hills w&$ by the trustees and the level of remuneration is considered to be at marker levels. 21
Teen Challenge UK- Annual ReF for the YeaT to 31 M4Tch 2025 otu to th¢ Aeeounts for th¢ year ended 31 March 2025 Staff llurnbers and ¢0 2025 2024 The avernge number of staff employed during the year was 65 (2024: 64). The average number of full tirn¢ equivalent staff employed by the cEwity during the year, antiysed by category. includin8 support sthff was &% follows: Number Number Residential care Managernent & Administration 55 52 57 Wages and salaries Social security costs Pension costs Benefiis in kind Redundaney 1.474290 123,851 69,312 709 1,290.797 100,867 60.648 4.180 17,0(X) 1,668,162 ,473,492 No employee received emoluments of morc than £60.( (2024: £nil). TnL8tees rxcived reimbursement of eXlL$eS dwin8 the year of £nil (2024: £nil). The lothl number of trsteeS who were paid expen8¢s nil (2024: nil). The totsl employmeni benefits. including employer pension contrilxrtions, of th¢ key management personnel of the charity were £33,273 (2024: £46215). The key management p¢rsonnel do IKlt include ihe Chief Executive who is not An employee of the dwity (see note 20). 22
Teen chlenge UK- Annual Re]y)rt for the Yrarlo 31 March 2025 Notes to tbe Accounts for the yr tnded 31 March 21J25 12 Txllglble flxed Assets iADd ¥JDd Ftxtures buildings fitting5 and freehold ¢quipmtllt Motor vehkl Total Co$altiOn At l April 2024 Additions Disposals 3.845,C137 417,056 33.516 150.227 58.917 (27.812) 4,412,320 92.433 (27.812) At 31 Mar¢h 2025 3,845,037 450.572 181.332 4,476.941 Deprecltloll At l April 2024 Charge for the year On disp(Isals 761.360 55.248 355,574 16,951 121.027 14.020 (25.312) ,237,961 86,219 (25,312) At 31 March 2025 816.608 372,525 109.735 1.298,370 N¢t book v•lues Al 31 March 2025 J,028.429 78,047 71.597 3,178,073 Al 31 March 2024 3.083.677 61,842 29.2iX) 3.174,359 The trustees consider that the market value of the land and buildings at 3 11¢ March 2025 is approximately £4,311,605 (2024: £4J I I.(5). No PTofessional v4luwion was Lwried out. 13 Flxed Asstt lv¢stm¢nt Properties 2025 2024 ValuAtlon At l April 2024 TrnThsfers Revaluations 525.(KK) 525,000 At 31 March 2025 525,IXIO 525.000 Higtoric co at 31 March 2025 318,513 318.513 All fixed asset investments we held wiihin the United Kin8dom. Invesbnent proEYrties have been valued at market value by the trustees of the charity. No valuatton h&% been carried out by an independent expert. 23
Teen Challenge UK- Am)ual ReFrt for the Year to 31 March 2025 Notes to the Accounts for th¢ year ended 31 March 2025 14 Debtors 2025 2024 Other debr5 Prepayments and accnRd income 208,214 8.963 128.111 9.235 217,177 137.346 Included in Other tkbioys is an amowrt of £62,936 {2024: £3Q144) which relates to HO8]ng Benefit. 15 CredltorL' Amounts falling due wlthitt one ye•r 2025 2024 Trade crrAJitors Other iaxes and swiai Srity Other creditors Accruals and deferred in¢(rfne 20.776 24.052 72.569 42,097 21,399 74,863 20.543 135.508 158,902 16 Unrestricted funds Gemeral FuDd 2025 Gener*1 Fund 2024 Balance at 111 April 2024 Incom¢ Expenditure Transfers from restrxcted fund8 Investment gainsl(losses) 4,012.346 3.726.294 (3.773.831) 445,180 4.184.530 2.995,804 (3.167.988) Bal&nce * 31" March 2025 4.409,989 4,012,346 24
Teen Challenge UK- AArnl ReFMIrt for the Yw 31 March 2025 otes to the Accounts for the year ended 31 Mar¢h 2025 17 Rotrlcted IDf¢ at l Aprll 2024 Income ExpeDdltsre Transfers 31 March 202S Lighthouse project Swaziland NatioT]al Ass¢rnbly for Wales Swansea Evangelism Moneyash Farni 9.546 9),680 3,212 (3.588) 9.170 {99.680) {8,000) {337,51XI) 337.5(M) 454.726 3212 (3.588) (445,180) 9,170 The Llghthouse Projed SwAzilDd - Oranrs io Teen Challenge Swaziland io build homes for orphaned childrcn ai Hawan¢ Fann. This fund repTesents an appeal to provide ongoing supwrt fLY these children. The Na¢k)nal Assembly for Wles- A grant towards the costs of the unit that has been bvilt at the vocational centre in Ammanford This unit had tten built and the fUJS r¢leased to unrestricted funds. Sjvansea Ev4n%eliJm - Th¢ Swamea work of Teen Chall¢n8e was closed (k)wn in the previous financia] year and fiwds have Eeen s¢1 aside for funwe evangelism in the are& These fund5 hav¢ now been ulilised in the s¢tling up of the Outreach work in the coastsl towns of Nrnh Wales and 1¢5¢d to unrestricted furKIs. moneYb F$rnTr- A gift receiv¢d to fuTrJ the purch&se of land adjacent lo Willoughby House. The purchase of this land is Complete and the funds Telewd to unrestricted funds. 18 Anatysls of ne¢ Mcts between tsnds Unrejtrleted rund$ Res¢ri¢ted T(tyt•l tsnds runds 2023 Total funds 2024 Tangible red ets Inv&stment assets Current assets Current li*biliiies 3.178.073 525.0(Kl 842.424 (135,508) 3.178,073 525.OCKI 851,594 (135.508) 3.174,359 525,0(X) 926,615 (158,902) 9.170 4,4(FJ,989 9.170 4.419,159 4.467,072 25
Tcen Challenge UK- Annual Report for the Year to 31 March %)25 otes to the A¢counts for tbe yr ended 31 Mrch 2025 19 Taxation As a charity, Teen Challenge UK is exempt from tsx on income and 88ins falling within sectton 505 of the Taxes Act 1988 or se(#ion 256 of ihe Tation of Chargeable Gains Act 1992 to the extent these are 8pplied to its charitable objea& No tsx charges have arisen in tk charity. 20 Rel4¢ed Prty TraDSaCtions Phil Hills is a trLLStee of TCUK and a Minsler of the Elim Pente¢os¢al Church. Sherw(K)d Church is p8rt of the Elim Pent¢sta} Church (regiskred cbari¢y number 251549). During the year payments totailing £58.728 (2024: £58.728) were made to SherW(d Church. These payments were a harge for the COTrtractua] a8reement which sub Ctracts Phil Hills to the role of Chief Executive of TCUK and Vice President of Te¢n Challenge Global. TCUK Scotland Ltd is a wivale limiioj cornpany (company regTStr8tion number SC707832) and is a rel8ted party as Michael Mccurry and Phil Hills are trusiees of TCUK and diTeclors of TCUK Scotland Ltd and Michael Mccw owns I CK)f/• of the shares in TCUK kotland Ltd. DuTing the year th¢ company mttde granis to TCUK totatling £162.568 (2024., £152.(f)l). These ants were unthr th¢ CORRA Fundin¥. Further, during the year Panents tothlling £nil {2024: £20.0) were made to TCUK which were a recharge for the contractual agreement which sub contracts Mr Michael Mccurry lo the role of Execulive ChAir of TCUK. These weTe fLrth¢ pcriod April 2024 to Mar¢h 2025. There wett noamounts outstanding atthe year- c2 (2024.. £nil). MossrArk Baptisl Church in Glasgow is a rcl8t¢d party as Mithael Mccurry is a tnjstee of TCUK and he is also a senior p&sr at the church. During Ihe year payments lotallin8 £60,(MX) (2024.. £35,0> We made lo TCUK which were a recharge for ihe contra1 a8reemeni which sub wntrts Mr Michael Mccurry lo the role of Executive Chair of TCUK. There were no amout)ts outstanding at the y¢ar-end (2024.. £nil). Freedom Challenge Trust is a charity registered in Scotland (reBisrercd chllrity number SC033414) and 18 a relaied party as Gordon Cnwjen is a trLLsiee of Fr¢¢dom Challen8e Tru and an ¢mployee of TCUK. During the year TCUK paid rent of £64250 (2IX24.' £64.250) toth¢ Charity. At the year eTrJ the amouni due by TCUK to the charity was £38.047 (2024: £40.896). Gordon Cruden r¢tireO as an employee of TCUK on 29 Novemb¢r 2024. 21 ControlllDI P•rtles tn the opinlon of the COU11 of Management ihert is M single ultimate controlling party of the charity. 26
Teen Challenge UK- Annual ReFK)rt for the Year to 31 Match 2025 Notss to the Accovnts for the year ellded 31 March 2025 22 Sttem¢Dt of FIDAneW Adivitses (Ine]g ioeome expenditsrt ceount) for the yer endyj 31 March 2024 Unreslri¢ted Res¢ri¢ted fllnds funds Total 2024 Income from: Don¢long #Dd legaci 1,045.551 3.392 1.048,943 Charitable Activitles I,8.394 I.8.394 Investments 107.074 107,074 Other 42.785 42.785 To¢411o¢ome 2,995,804 3J92 2.999.196 Expendlture on: Rlslng F¥nd$ 71.683 71,683 Charitsble •¢ilvld 3,096.305 105,417 3201.722 Totsl Expendlture 3.167.988 105,417 3,273.405 Net (¢xpendlture) before tr4nJf¢rs (172.184) (102.025) (274209) Transfer tetween Net (expendlture) before rev4lutioTrs (172.184) (102,025) (274,209) Net gainl(losses) on valuatiOn of investments Nel movement in fwmds (172.184) (102.025) (274.209) Recon¢lllAtlon of Fund8 Total funds Wt forward 4.184.530 556.751 4.741.281 Total fundj rrIed forn*rd 4.011346 454,726 4,467,072 27