Teen Challenge UK Annual Report and Accounts For the year to 31 March 2025 Contents Referen(Y al￿ Admin￿Ve tktails Report of ihe Trustees Inde￿1 Auditor's Report 10- 12 Statement of Financial Activities 13 Balance Sheet 14 Ststemeni of C￿h 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 Audi￿18 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 ReP￿rt for the Year to 31 March 2025 Report of th¢ trustees For the Year to 31 Mareb 2025 The in￿ee$ PJEsent their retth with the fi￿￿1￿] 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 tr￿st ¢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 T￿ste*s 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 ¢x*rnal 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 I￿ld 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 guida￿e by the Charity Commi&sion and ha5 tsken acco￿1 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 F*alth or S￿la7 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 individ￿1 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 I￿Sle1$. 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 y￿allOnal trainin8 and for ihose under8oin8 occupaiional rehabiliiation. 10. By the payment of trainin8 grants or fees io any Company wholly owned by the ch￿tY for the purpose or fulfilling the objects rel￿ed 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 f￿7]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 help us ensure our aims, objectives and activiti¢s remain r￿used 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¢￿un￿bIIIlY lor their activities lo the National Bo8Td of Direciors through ihe ChiefExeC￿lVe￿eeUIIve 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 Executiv￿xecUtive Chair. Last year this tcam has completed it5 ￿IgnMents in Salford, M￿￿heSter and is preparing to Commence its work in t1￿ Co￿1&] 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. Residenti*l Rthabllltalloll There are currently six TCUK residential rehabilitation centres opernting in Engl￿d, 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 f￿u$ on their present challenges and ￿tUre goais. This is achieved through a combination of group activities. One-t￿ne 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 tw￿YeAr ￿Sidential training cours¢ offered by ihe Leadership Academy. The ￿urse is deSi￿e0 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 suc￿sSful 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$)rn￿￿ Indicato￿ Can help Teen Challenge UK pmmote care to stud¢nts. To do this the Tn￿eeS consider some of the following M￿uTeS in or&r to develop an approach to measurin8 perforn)ance of TCUK'S delivery of caye to students. The relevant me&8ur¢s vary from time to tim¢ d¢p¢nding on a number of factor3. Struc¢Mrol Meas4rtr. Structurdl quality measures refer to the featur¢s of TCUK that deterniine its capacity to provide care. such as the existence of an electronic records system or the ratio of supixjrt stsff7care providers to students. Process MeofUhYS.. Process measures are used to assess how well care is provided lo a student ai TCUK residenlial centre, in line with r¢¢0mMend￿J0nS for clinical praciice. These recommendations are based on r¢seanh evidenc¢ or consens￿$ (i.e.. the views of experts when the research evidence 15 lacking or irtconclusive) regarding the probability that providing services will achieve the d￿ired owcome& Generally> Process measur&4 are expressed as rates, with the denominator defining a population that is of interest tr*cause of its demO￿aphIC and clinical condition, and the numcrator definin8 the Su￿OuP re¢eivin8 specific services. ProL%ss measures are particularly imw)nani in the development of perfornia￿e 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 ev￿u￿1t 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 r￿On¢111&11On). and Sustsined red￿119￿5 in Ihrnats to public hea]Ih and safety. Attributing improved Mudent outcomes to TCUK'S S￿¢ifiC actions ¢an sometimes be diffi¢uli b￿aUse 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 de￿d 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 Ma￿h X125 Key perfonnance Indi￿Or dats will diff¢r betwe￿ Tesidential and outreachcentre& Genernily, however, they tnay in¢l￿e some of the following: Referral numbers from outrea¢h w0j￿t$. 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. Re￿rtS are ￿rnMunicated nOM￿llY quarterly to I'nts*es. ￿ 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 Trus*es 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, ma￿￿r 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 $0 important to work alongside Church￿ C￿luT&s1n& SUp￿rtI￿ arnl helping each other as the body of Christ so we thank you for all you do. Teen Challenge UK_ Annual Re￿rt for the Year to 31 Ma￿h 2025 Financial Reviejv R¢swlts for the year In financial tern)s, Ihe deficii for the year amounted to £47,913 (2024: £274.209). The unrestriaed fund balances Tied forward ar the year-end were £4,409.989 (2024: £4,012,346}. Restricted funds carried frThard At th¢ y¢ar- end amount¢d to £9.170 (2024.. £454.726). Like many other ¢harities in the UK, TCUK cOnlin￿ to rAperie￿e finarKial challenges which appear lo be exacerbalcd by the continuing globa] economic downwrn and consequential a￿rity mwures. We c4)ntinue lo work with the challenges aThJ pwsue of ￿intaInIng conlact with donors aryl inrn5ing our engagement with potential Spo￿￿0rs. R￿erVeS pollcy Thetn￿eeS have considered the chariry's requirements for raserves in lighi of the rnain risks to which it is exposed. The clwity maintains suffi¢ienl r¢seTves and quickly saleable a￿et8 lo enable the residential centres to cover th¢ir overheads for ai le&8t six months (approx. £1.90m) to ensure that existing residents do not suffer any di5riiption during the resulting wind down period should funding ceas¢. PrlRelp81 fundlng sources The Teen Challenge UK Trust Deed difftrentiates between Local Works and National Works. The f(Kmer are 80vcrned by Steering Cornmittees and I￿al trU￿e¢S and are resw)n$ibl¢ for the raising of their own finance& The primary sour¢es are local donAlions. ¥ifts from I(￿] churches and I￿1 Gran¢ Making Trusts. Nalional wurk5 refer primarily to re5id¢ntio1 facilities and ihe provision of f￿￿Ing 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 Trus*es seek to take Inde￿nI advice on the rnost approErith forn? of inveskneni of the charity's funds. Rlsk m*n*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 d￿e. 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 i￿Pection 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 d￿reaS¢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 appIl￿tion lo OFSTED to registered to nm children's homes. There is rm) dedi￿trd 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 p￿mISeS 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 vo￿1￿0￿￿ 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 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 gal￿8 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 fill*nci*l stat¢meo¢ 13 (IMllcng¢ UK- Annwl Rcp)rf for the Ycar to 31 Ma￿h 2025 B*lanee Sheet at 31 M*rch 2025 2025 2024 Flxed T￿gIble assets 12 13 3.1￿,073 525.1 3,174.3S9 s25,1￿7 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 Ma￿h 2026 14 T¢en Challenge UK_ Am￿￿1 Rer forthe Year kn 31 March 2025 ststemeDt of Cash Flows for the Year Ended 31 March 2025 2025 2024 C*sh 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 oper*tlollJ (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) C*sb llowj from flD#n¢lDg *dfvltles Interest paid (3,600) Net cash used In finillcltsi aetlvitl {3.600) Net iTr¢reaJel(decruse) ia c*Jb and ¢qulv•lents (154.852) (317.125) Cash and cash equivalents at stsrt of y¢ar 789,269 1.106J94 Cash and ￿$h equiv*ltmts at th¢ end of ¢h¢ year 634.417 789.269 "Cath and ¢&sh equivalents" Consist entI￿lY of fash at at¥J in hand". 15 Teen Challenge UK_ Artnu81 ReF for the Y¢ar lo 31 Mwch 2025 Notes to tbe Accounts for the year eDded 31 March 2025 Comp*ny Inforni*tlon Teen Challenge UK is an wil￿Orporated tr￿St Constit￿ under a tru￿ deed and 15 a regist¢Ted charity numbeT 2989(K). The prin¢ipai office is Willoughby House. Station Roa& Upper BiOught0￿ Leicestershire LE14 3BH. Basls of pr¢par*¢lon oTfinancl81 statements The fiTMncial stat¢m¢nts have Ixen prepwed in accordance with Ac¢ounting and Reptirting by Charities.. Statement of Recommended Practice applicable to charities prep￿ their ac¢ount5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (¢ff¢dive I. January 2019)- (Charities SORP (FRS102)). Teen Challenge UK meets the definitton of a public benefrt entity und¢r FRS102. Assets and liabilities are initiatly recognised at historical or transaction value unless otherwise staled in the relevant accounting policy note. Th¢ Irustees continue ty pursue a strategy of maintainin8 contact with donors and incteasin8 their engagement with Foieniial s￿n5()rS and these ac¢ourtts have betn preparoj on 8 Going Concern ba5iS. Th¢ financial 5tstements are PTe&￿[¢d in sterlin8 (4. aTrJ round￿ to the nearest pound. Income All incoming resowees are Included in the swemenl of fi￿￿131 aclivitie5 when the charity is entitled to the income and the amounl quantified wilh reasonable accurncy. The followin8 specific wlicies are applied io ￿rtIcular categories of income: Voluntary iTKome is received by way of grants. dOn￿lon$ a￿1 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 T￿0￿1￿J charity becomes ur￿0ndItion￿lY ¢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 incI￿led 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 as￿￿lated 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 tr*neficiaries. It includes both costs thal can be allLKated directly to s￿h 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 c￿S 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 ￿COUntI￿8 The charity maintairs various rypes of fimds as follows: General uMre.flriciedfwdf represent i￿ome which can be used in accordan￿ with the charitable obJ￿ts 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¢ sts*d at ca%t less a￿uMUlated 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 equIp￿thl 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 capitslis*J. Inveslments Investments held as fixed assets are revalKd at mid-market Val￿ ai the ip1a￿e sheet d￿e and the gatn or loss tsken ￿ the Statement of Fina￿1￿ 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￿ Sts*ments 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 C1￿￿ent 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 t￿erIts and risks of ownership remain with the le550r are charged 88ain* wofit on a straight-line t*sis over the period of the le￿. 1.12 Non-deriv*tlve 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•y*ble 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 fina￿la1 activities. 1.15 C4$h 4nd eqvlv*leDts Cash And eash equivalents in the hlaTK¢ shee¢ wmprise c&8h at bank aTrJ tn hand. For the purp)se of th¢ Ash flow stat¢menL cash and cash equivalents are of bank overdrafts which are payable ort demand. 18 Teen Challenge UK- Annual Reixfft forthe YeaT to 31 March Xi25 Notey to the Aeeoumts for ¢he year ended 31 Mareb 2025 Net in¢omel{expeDditure) 2025 2024 The net income/(¢XF*nditure) for year is stsied after chargin Audit Fee 9.720 9.000 Depreciation and other amounts written off tsngible fixed assets: Owned A&sets ProfiV(loss) on Dispos81 of Fixed Ass&s 86,219 {2.330) 78.859 (553) Staff Pemion Co*s 69,312 60.207 Donatlon$ 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￿" I￿ome 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 inC￿le 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 M*r¢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 Tot*1 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 ￿tI￿al¢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 eX￿lL$eS dwin8 the year of £nil (2024: £nil). The lothl number of tr￿steeS who were paid expen8¢s nil (2024: nil). The totsl employmeni benefits. including employer pension contrilxrtions, of th¢ key management personnel of the charity were £33,273 (2024: £46215). The key management p¢rsonnel do IKlt include ihe Chief Executive who is not An employee of the dwity (see note 20). 22 Teen ch￿lenge UK- Annual Re]y)rt for the Yrarlo 31 March 2025 Notes to tbe Accounts for the y￿r tnded 31 March 21J25 12 Txllglble flxed Assets iADd ¥JDd Ftxtures buildings fitting5 and freehold ¢quipmtllt Motor vehkl Total Co$￿al￿￿tiOn 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 Deprecl*tloll 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 l*v¢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 ReF￿rt for the Year to 31 March 2025 Notes to the Accounts for th¢ year ended 31 March 2025 14 Debtors 2025 2024 Other deb￿r5 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 HO￿8]ng Benefit. 15 CredltorL' Amounts falling due wlthitt one ye•r 2025 2024 Trade crrAJitors Other iaxes and swiai S￿￿rity 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- AArn￿l ReFMIrt for the Yw ￿ 31 March 2025 otes to the Accounts for the year ended 31 Mar¢h 2025 17 Rotrlcted I*Df¢ 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 SwAzil*Dd - 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 W*les- 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 fU￿JS 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. moneY￿b 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 r￿ed ￿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 y￿r ended 31 M*rch 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 T￿ation 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 P*rty 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 C￿tracts 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 Pa￿nents 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- c￿2 (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&s￿r at the church. During Ihe year payments lotallin8 £60,(MX) (2024.. £35,￿0> We￿ made lo TCUK which were a recharge for ihe contra￿￿1 a8reemeni which sub wntr*ts 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 COU￿11 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 St*tem¢Dt of FIDAneW Adivitses (Ine￿￿]￿g ioeome expenditsrt *ceount) for the ye*r 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: R*lslng 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 rev4lu*tioTrs (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