Charity registration number 1069777
Company registration number 03550328 (England and Wales)
TEEN CHALLENGE LONDON
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TEEN CHALLENGE LONDON
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Revd L Cheshire
Rev S Derbyshire
Rev. D Langton
Dr L Logan MBE
Rev Christopher Scott
Secretary
C Coughlan
Charity number
1069777
Company number
03550328
Principal addresses
Drayton Hall
Wilkerson House
Hall Lane
Uphall Road
Drayton
Ilford
Norwich
Essex
NR8 6DP
IG1 2JJ
Registered office
Essex House
8 The Shrubberies
George Lane
South Woodford
London
United Kingdom
E18 1BD
Independent examiner
Caton Fry & Co Ltd
Essex House
7 The Shrubberies
George Lane
South Woodford
London
E18 1BD
Bankers
Barclays Bank
180 High Road
Ilford
Essex
IG1 1LS
Solicitors
Red Kite Solicitiors
14-15 Spilman Street
Carmarthen
West Wales
SA31 1SR
Project manager
Javier Lesta-Candal
TEEN CHALLENGE LONDON
CONTENTS
Page
Trustees' report
1 - 7
Independent examiner's report
8
Statement of financial activities
9 - 10
Balance sheet
11 - 12
Statement of cash flows
13
Notes to the financial statements
14 - 28
TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The trustees present their report and financial statements for the year ended 31 March 2024 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objects as specified in the Memorandum and Articles of Association are:

 

a) To advance the Christian faith in accordance with the Statement of Beliefs appearing in the County of Greater London, the surrounding areas, and in such other parts of the United Kingdom or the world as the Trustees of the Charity may from time to time think fit.

 

b) To relieve persons who are in conditions of need or hardship or who are aged sick or who are homeless, including by means of helping and assisting individuals affected by alcohol, drug or other substance abuse or addiction and to relieve the distress caused thereby in the said locations and in such other parts of the United Kingdom or the World as the Trustees may from time to time think fit.

 

c) To promote and fulfil such other charitable purposes beneficial to the community in the said locations and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit.

 

The policies adopted in furtherance of these objects are:

 

1) Offering residential rehabilitation to members of the public who have shown an interest in finding help with their addiction problems.

 

2) Outreach work through different means such as street work, bus ministry, church events and presentations, and testimony evenings.

 

3) Providing vocational training to enhance employment opportunities helping them go back into society with recognised achievements and qualifications.

 

There has been no change in these during the year.

Reporting Public Benefit

 

The trustees have paid due regard to guidance issued by the Charity Commission on public benefit in deciding what activities the charity should undertake. As a small charity the report focuses on the main activities undertaken by the charity to further the charitable purposes for the public benefit.

TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

DRAYTON HALL

The financial year end for the activities at Drayton Hall have been both rewarding and challenging, the average occupancy rate was 17.0 for the year end, up 0.9 from the previous year of 16.1. Three staff members also live at Drayton Hall, and 4 bedrooms have been allocated for staff who travel from London to work. In September 2023 we had our Graduation service at City Gates Church with 6 men who graduated and one posthumously for Ashley Thorpe who passed away whilst at bible college. His wife Janice and their 3 children were present to receive the graduation award on his behalf.

 

In August we had an open day and we had over 250 people come to Drayton Hall, mostly from City Gates church, we had a time of worship and then food which was served by residents and staff to all who came, it was a great event. Many commented on the incredible facilities available. In October, we secured the lease to a small shop in the village of Drayton that was formerly an estate agent. We began work to refurbish the property. The purpose of the shop was to open a coffee shop to the local community that would provide work experience and employment opportunities to men who have completed the rehabilitation program at Drayton Hall. The Coffee shop was named “5:17 Coffee House” a reference to the biblical text 1 Corinthians 5:17, If anyone is in Christ he is a new creation the old has gone the new has come. The Coffee House opened on January 4th and has had a fantastic response from the local and wider community. The exposure to the wider work of Teen Challenge has been extremely positive with many people pleased about the coffee House and the work we do at Drayton Hall. The coffee House serves, coffee, teas and a variety of sweet and savoury food items. There is one full time and 2 x part time employees, all former Drayton Hall residents and volunteers by men currently on the program. This will provide work experience and confidence to the men coming through the program.

 

In December 2023, Rev Sam Mooney left his position as manager at Drayton Hall leaving a vacant managers role. As of year-end no replacement was found. We are confident that this will be resolved in the near future and staff morale at year end was good.

 

WILKERSON HOUSE

 

Renovation works at the property begun during the year to bring the building up to a satisfactory standard. We became registered as a HMO with Redbridge council with Hostel status a new requirement that was needed to comply with the local authority guidelines. This also required us to make several changes to some of the doors and rooms to pass the standard that was needed.

 

Our planning application was approved for a further 6 bedrooms with showers, one kitchen and 2 x toilets

 

 

 

 

TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

OUTREACH PROJECT

 

In this annual report we wish to provide an update from TC’s Outreach from the period between April 2023- March 2024. This will include short overviews from the new outreach initiative ‘The Joshua Project’ in which TC have been active in 4 different locations, to other outreach events and church presentations. I’m sure as you view this report you will encouraged by engagement within the communities we reached into and our increasing influence in a variety of locations.

 

The Joshua Project (JP)

TCL’s new outreach approach. In this period, we have been active in 4 different locations including; Harlow, Gillingham, East Ham, and Wood Green. Each have had differing successes and after each project there has been a time for reflection and improvement in order to be more effective.

Harlow May-July 2023

This outreach was consistently held over 12 weeks. Working in connection with Heart for Harlow (local churches together) our main contact was with Harlow Elim and Streets2Homes, a local homeless charity providing support for those to find housing. This is where the bulk of relationships were built with two clients filling out application forms for TCL. Through evangelism equipping/ training, over both Saturdays we saw 65 people in attendance.

Gillingham September-November 2023

This outreach was consistently held over 12 weeks, as per previous. Following on from our outreach in Chatham the previous year we returned to the Medway town of Gillingham. This outreach proved to be the toughest yet, we believe due to the level of poverty in the area. However, we continued to press in and made connections with 4 local churches encouraging them to reach out and engage those in addiction in the area. On two Saturday’s we offered evangelism training and over both we saw a number of 24 people attend. We attended local coffee mornings which gave us opportunity to speak with those who came and also continued to build our relationship with a local homeless charity Caring hands in the community through which in this time we saw an application form for the program filled out.

East Ham January-March 2024

This outreach was consistently held over 12 weeks, as per previous. TC was working with 4 local churches and 2 local homeless drop in services. During this outreach we were mostly engaging people on the streets in the community due to the lack of drop in services in the area. However, we made contact with a local homeless charity called the New Way Project. We were given the opportunity to engage those who came to use their service which proved to be helpful as a place of contact during this time. We initiated a bus ministry serving teas and coffees on the Thursday evenings whilst in the area for this period. This proved fruitful on each evening serving between 30-40 people. Two people received physical healings through prayer and an application form for the program was filled out. Over two Saturdays we offered evangelism training for the local church (held at East Ham Elim) over both we saw around 50 people in attendance. East Ham Elim have incorporated this evangelism day into their monthly program. Also, TC gave training to Barking Elim (partner church of East Ham) for their local homeless soup kitchen Bless Barking in which we saw 30 people in attendance.

Wood Green May- March 2024

This outreach was consistently held over 12 weeks, as per previous. TC was working in connection with 2 local churches during this outreach. We served in a local food bank which helped us engage with the local community. During this outreach we were mostly engaging people on the streets in the community due to the lack of drop in services in the area. We initiated a bus ministry on the Thursday nights so to be a place of contact for those we meet during the day and continue the conversations and for relationships to be grown. Each Thursday evening, we were serving between 50-60 hot drinks. For the local church to be involved we gave drug & addiction awareness training in which 8 people attended. Grace Baptist church will be continuing this outreach service in their community. Again, over 2 Saturdays we gave evangelism training in which we saw 15 people attend over both days.

TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

Joshua Project summary in numbers;

Applications filled out

5

Interview from Applications

2

Volunteers Attending Training/ Equipping

192

Churches / Organisations Actively involved

19

Applicants Entered Program

2

 

 

(These numbers are specific to JP and do not include the numbers from other outreaches during this period.)

Please know there have been some incredible testimonies of Jesus bringing salvation and healings both emotional and physical but for space I’m unable to share here and in detail.

Other outreach opportunities/ notable updates

Church presentations

Church presentations have been booked and given weekly. With the occasional exception.

From the period July ’23- March ‘24 TC London held a total of 34 church presentations.

This number does not include other presentations that have been held outside of Sunday services.

Education & Training Centre Drayton Hall

 

Below is a list of the courses completed by residents at Drayton Hall during the financial year, all courses are City & Guilds recognised.

 

 

TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

Accredited by City and Guilds

 

 

 

Level 1 Functional Skills English

4

Level 2 Functional Skills English

1

Level 1 Effective Communication

14

Level 1 Effective Skills and Qualities and Attitudes 

7

Level 1 Managing Personal Finance 

16

Level 1 Equality and Diversity

7

Level 1 Employability Personal Development Award 

9

Level 1 ICT 

5

 Level 1 Introduction to Customer Services

 13

TOTAL

76

Accredited by Highfield Online Learning 

 

Level 2 Food Safety 

4

Managing Conflict 

Warehousing and Storage 

 

Fire Safety Level 2

 

 

TOTAL

7

Trainer Courses 

 

Health and Safety 

18 

 

 

Health and Safety 

 

Inhouse Health and Safety 

29

 

 

EXTRAS

 

Level 3 Counselling Skills Counselling

 

 

TOTAL OF ALL COURSES

136

TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -

Future Developments

It is our intention to continue to renovate Wilkerson House and raise enough funds to begin the extension of the extra bedrooms on the second floor for which we were granted planning permission. We plan to expand Drayton Hall The expansion of Drayton Hall for residents from 20 beds to 25 beds for those on the rehabilitation program. This will require finding a house to rent to move the live in staff out of Drayton Hall to free up bedrooms at the Hall. We have plans to purchase a 8/9 seater minivan to help cope with the anticipated increase in residents.

Financial review

 

Incoming resources for the year stood at £979,374 (2023 - £1,333,506). The large decrease in incoming resources being the donation of Drayton Hall by the Lind Trust in the previous year. The net incoming resources amounted to £140,069 (2023 - £616,421). Voluntary income amounted to £295,907 (2023 - £941,716) and represented 30.2% (2023 - 70.6%) of the charity’s total income. This decrease in income has meant that the charity doesn't require an audit but this will be assessed on an annual basis.

 

The majority of ongoing resources have been utilised on charitable activities related to supporting residents at the centre for those with addictions: staff costs for services and support, expenses directly relating to the residents, and the ongoing costs of the premises themselves.

 

The net assets shown in the balance sheet amounted to £1,879,736 (2023 - £1,739,667). Included in the above figure are freehold properties shown at cost of £2,008,882 (2023 - £2,008,882).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to be 6 months' expenditure. This amounts to approximately £355,000. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. At the year end the level of reserves, excluding the freehold land and buildings, improvements to property and related loan amounted to £446,199 (2023 : £315,665).

 

Investment strategy

The reserves are held on cash deposits, and although consideration has been given to alternative forms of investment, the Trustees decided to retain the cash deposits.

Risks

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee and was incorporated on 22 April 1998. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Revd L Cheshire
Rev S Derbyshire
Rev. D Langton
Dr L Logan MBE
Rev Christopher Scott
TEEN CHALLENGE LONDON
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -

The existing Trustees appoint any new Trustees following the provisions laid out in the Charity's governing instrument.

 

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

The Board of Trustees are responsible for the strategic direction and policy of the charity. A scheme of delegation is in place, and day to day responsibility for the provision of services rests with the Project Manager. The Trustees, who are also Directors of the charitable company, meet together regularly, at least four times per year, to pray, review progress and make decisions on future developments.

New trustees are provided with a comprehensive information pack informing them of their potential roles as Trustees.

All staff are paid in line with their job role.

Teen Challenge London works closely with Teen Challenge UK and other Teen Challenge Groups throughout the country, but is legally independent of them.

 

Small company exemptions

This report has been prepared and delivered in accordance with the provisions in Part 15 of Companies Act 2006 applicable to companies subject to the small companies' regime.

The trustees' report was approved by the Board of Trustees.

Rev S Derbyshire
Trustee
16 October 2024
TEEN CHALLENGE LONDON
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF TEEN CHALLENGE LONDON
- 8 -

I report to the trustees on my examination of the financial statements of Teen Challenge London (the charity) for the year ended 31 March 2024.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2

the financial statements do not accord with those records; or

3

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

J E Caton FCA FCCA
Caton Fry & Co Limited
Essex House
7 The Shrubberies
George Lane
South Woodford
London E18 1BD
Dated: 16 October 2024
TEEN CHALLENGE LONDON
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
Restated
Restated
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Income and endowments from:
Donations and legacies
3
295,907
-
295,907
304,051
637,665
941,716

Trading activities

4
580,358
-
580,358
301,104
-
301,104

Investment income

5
103,109
-
103,109
75,237
-
75,237
Other income
6
-
-
-
15,449
-
15,449
Total income
979,374
-
979,374
695,841
637,665
1,333,506
Expenditure on:

Raising funds

7
2,786
-
2,786
2,562
-
2,562
Charitable activities
8
836,519
-
836,519
713,807
716
714,523
Total resources expended
839,305
-
839,305
716,369
716
717,085
TEEN CHALLENGE LONDON
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
Restated
Restated
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£
Net incoming resources before transfers
140,069
-
140,069
(20,528)
636,949
616,421
Gross transfers between funds
47,665
(47,665)
-
89,284
(89,284)
-
Net income/(expenditure) for the year/
Net movement in funds
187,734
(47,665)
140,069
68,756
547,665
616,421
Fund balances at 1 April 2023
As originally reported
1,221,002
547,665
1,768,667
1,159,246
-
1,159,246
Prior year adjustment
(29,000)
-
(29,000)
(36,000)
-
(36,000)
Fund balances at 1 April 2023 as restated
1,192,002
547,665
1,739,667
1,123,246
-
1,123,246
Fund balances at 31 March 2024
1,379,736
500,000
1,879,736
1,192,002
547,665
1,739,667

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

 

 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
TEEN CHALLENGE LONDON
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
15
2,242,581
2,215,380
Investments
16
2
-
2,242,583
2,215,380
Current assets
Debtors
17
24,036
144,534
Cash at bank and in hand
262,372
110,142
286,408
254,676
Creditors: amounts falling due within one year
18
(133,151)
(157,085)
Net current assets
153,257
97,591
Total assets less current liabilities
2,395,840
2,312,971
Creditors: amounts falling due after more than one year
19
(516,104)
(573,304)
Net assets
1,879,736
1,739,667
Income funds
Restricted funds
21
500,000
547,665
Unrestricted funds
1,379,736
1,192,002
1,879,736
1,739,667
TEEN CHALLENGE LONDON
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
2024
2023
as restated
Notes
£
£
£
£
- 12 -

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2024.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 16 October 2024
Rev S Derbyshire
Trustee
Company Registration No. 03550328
TEEN CHALLENGE LONDON
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
216,780
536,895
Investing activities
Purchase of tangible fixed assets
(112,746)
(702,290)
Disposal of tangible fixed assets
2,288
-
Purchase of  investments
(2)
-
Investment income
103,109
75,237
Net cash used in investing activities
(7,351)
(627,053)
Financing activities
Repayment of bank loans
(57,199)
(61,694)
Net cash used in financing activities
(57,199)
(61,694)
Net increase/(decrease) in cash and cash equivalents
152,230
(151,852)
Cash and cash equivalents at beginning of year
110,142
261,994
Cash and cash equivalents at end of year
262,372
110,142
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Charity information

Teen Challenge London is a private company limited by guarantee incorporated in England and Wales. The registered office is Essex House, 8 The Shrubberies, George Lane, South Woodford, London, E18 1BD, United Kingdom.

 

The activities of the charity, as described in the Trustees report, are carried out at Wilkerson House in Ilford or Drayton Hall in Norfolk.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention other than the donation of Drayton Hall which has been reflected at market value. The principal accounting policies adopted are set out below.

1.2
Prior period adjustment

The Trustees reviewed the basis of the recognition of gift aid income and considered that it was more appropriate to reflect gift aid income on the received rather than the receivable basis. As a result of this a prior year adjustment has been made to the accounts. The impact of this adjustment is as follows:-

1.3
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.5
Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised on the cash basis.

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

Donated services and assets are recognised when the charity has control over the item, and conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably.

Income from trading activities are reflected on a receivable basis.

 

Income from investments and interest are included when receivable.

 

Rental income is recognised on the cash basis.

1.6
Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to that category. Where costs cannot be directly attributed to particular headings they have allocated to activities on a basis consistent with the use of resources.

Charitable activities comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities, and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independence examination and professional fees linked to the strategic management of the charity.

Support costs are allocated on a basis consistent with the use of resources, as indicated in the notes to the financial statements.

1.7
Tangible fixed assets

Tangible fixed assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
See below
Improvements to property
10% on cost
Fixtures and fittings
25% on cost
Computers
33% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Since in the opinion of the Trustees, the freehold properties are maintained in a state of repair such that their estimated residual value is no less than their cost, the annual charge for depreciation of freehold properties is nil.

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discounts offered.  Prepayments are valued at the amount prepaid net of any trade discounts due.
1.11
Creditors and provisions
Creditors and provisions are reognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligatin can be measured or estimated reliably.  Creditors and provision are normally recognised at their settlement amount after allowing for any trade discounts due.
1.12
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.14
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16

Volunteer services

The value of services provided by volunteers is not incorporated into these financial statements.

1.17

Taxation

The charitable company is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

 

Irrecoverable VAT is charged against the category of resources expanded for which it was incurred.

2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
3
Donations and legacies
Unrestricted
Unrestricted
Restricted
Total
funds
funds
funds
restated
restated
2024
2023
2023
2023
£
£
£
£
Donations and gifts
290,907
304,051
137,665
441,716
Donated goods and services
5,000
-
500,000
500,000
Grants included in donations and gifts
Coronovirus Job Retention Scheme
-
24,532
-
24,532
City Gate Church
-
25,000
-
25,000
Magnify Foundation
-
47,665
-
47,665
TCL Re-Use Centre
-
90,000
-
90,000
-
187,197
-
187,197

The Charity also benefits greatly from improvements and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with accounting standards, the economic contribution of general volunteers is not measured in the accounts.

4
Income from charitable activities
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£

Students' housing benefits

513,383
238,487

Students' DWP benefits

66,975
59,560

Tuck shop sales

-
3,057
580,358
301,104
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
5
Income from investments
Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Rental income
101,620
75,156
Interest receivable
1,489
81
103,109
75,237
6
Other income
Total
Unrestricted
funds
2024
2023
£
£
Insurance claim
-
15,449
7

Raising funds

Unrestricted
Unrestricted
funds
funds
2024
2023
£
£
Raising donations and legacies
Staff costs
2,786
2,562
2,786
2,562
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Charitable activities

Rehab- ilitation

Outreach ministry

Egangs

Total
2024

Rehab- ilitation

Outreach ministry

Egangs

Total
2023
2024
2024
2024
2023
2023
2023
£
£
£
£
£
£
£
£
Staff costs
199,899
82,671
-
282,570
286,106
33,223
-
319,329

Costs of residence & catering

56,088
-
-
56,088
46,684
-
-
46,684

Travel

20,113
16,995
-
37,108
15,267
6,106
-
21,373

Donations

2,152
1,827
15,000
18,979
7,140
4,845
15,000
26,985

Training centre

1,123
-
-
1,123
751
-
-
751

Bank loan interest

49,684
-
-
49,684
34,835
-
-
34,835

Profit on disposal of assets

-
1,637
-
1,637
-
-
-
-
329,059
103,130
15,000
447,189
390,783
44,174
15,000
449,957
Share of support costs (see note 9)
344,549
19,467
-
364,016
196,939
13,228
-
210,167
Share of governance costs (see note 9)
25,314
-
-
25,314
54,399
-
-
54,399
698,922
122,597
15,000
836,519
642,121
57,402
15,000
714,523
Analysis by fund
Unrestricted funds
698,922
122,597
15,000
836,519
641,405
57,402
15,000
713,807
Restricted funds
-
-
-
-
716
-
-
716
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
9
Support costs
Support costs
Governance costs
2024
Support costs
Governance costs
2023
£
£
£
£
£
£
Depreciation
83,258
-
83,258
52,768
-
52,768

Rent, rates & water

30,351
-
30,351
26,268
-
26,268

Light and heat

136,002
-
136,002
41,715
-
41,715

Repairs & renewals

94,428
-
94,428
71,630
-
71,630

Office

18,487
-
18,487
16,165
-
16,165

Finance

1,490
-
1,490
1,621
-
1,621
Indepedent Examination / Audit fees
-
3,984
3,984
-
6,324
6,324
Accountancy
-
5,580
5,580
-
5,316
5,316
Legal and professional
-
15,750
15,750
-
42,759
42,759
364,016
25,314
389,330
210,167
54,399
264,566
Analysed between
Charitable activities
364,016
25,314
389,330
210,167
54,399
264,566

Support costs are allocated to activities based on staff time.

 

10
Net movement in funds
2024
2023
£
£
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets
83,258
52,768
(Profit)/Loss on disposal of fixed assets
(1,637)
-
Independent examination
3,320
-
Bank loan interest
49,684
(18,589)
Operating lease charges
1,248
1,248
11
Trustees

None of the trustees (or any persons connected with them) received any remuneration, reimbursement of expenses or benefits from the charity during the year.

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
12
Employees

The average monthly number of employees during the year was:

2024
2023
Number
Number
Managers
2
2
Support
10
11
Administration
1
1
Total
13
14
Employment costs
2024
2023
£
£
Wages and salaries
263,388
298,206
Social security costs
16,838
18,933
Other pension costs
5,130
4,752
285,356
321,891
There were no employees whose annual remuneration was more than £60,000.
Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024
2023
£
£
Aggregate compensation
50,058
46,125
13
Pension commitments

The charity runs a Stakeholder Pension with Legal & General and a workplace pension with NEST. The assets of the scheme are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £5,130 (2023 : £4,752).

 

At 31st March 2024 contributions amounting to £2,225 (2023 : £1,964) were payable to the fund and are included in creditors.

14
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
15
Tangible fixed assets
Freehold land and buildings
Improvements to property
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
2,008,882
477,233
276,565
6,906
40,015
2,809,601
Additions
-
29,135
26,535
1,672
55,404
112,746
Disposals
-
-
-
-
(2,495)
(2,495)
At 31 March 2024
2,008,882
506,368
303,100
8,578
92,924
2,919,852
Depreciation and impairment
At 1 April 2023
-
410,203
146,348
6,572
31,098
594,221
Depreciation charged in the year
-
10,502
52,176
724
19,856
83,258
Eliminated in respect of disposals
-
-
-
-
(208)
(208)
At 31 March 2024
-
420,705
198,524
7,296
50,746
677,271
Carrying amount
At 31 March 2024
2,008,882
85,663
104,576
1,282
42,178
2,242,581
At 31 March 2023
2,008,882
67,030
130,217
334
8,917
2,215,380
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Tangible fixed assets
(Continued)
- 24 -

 

16
Fixed asset investments

 

£
Cost or valuation
At 1 April 2023
-
Additions
2
At 31 March 2024
2
Carrying amount
At 31 March 2024
2
At 31 March 2023
-
2024
2023
Other investments comprise:
Notes
£
£
Investments in subsidiaries
25
2
-
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
20,680
73,355
Prepayments and accrued income
3,356
71,179
24,036
144,534
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
20
59,241
59,241
Other taxation and social security
5,956
4,860
Trade creditors
49,320
18,060
Other creditors
6,101
4,389
Accruals and deferred income
12,533
70,535
133,151
157,085
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
20
516,104
573,304
20
Loans and overdrafts
2024
2023
£
£
Bank loans
575,345
632,545
Payable within one year
59,241
59,241
Payable after one year
516,104
573,304
Amounts included above which fall due after five years:
Payable by instalments
189,396
248,637

A term loan from Barclays of £950,000 was drawn in August 2015. The long is secured by legal charges on Wilkerson House, the property at the rear of Wilkerson House and Unit 1 at Wilkerson House, together with a debenture dated 4 April 2007.

Interest is repayable at a rate equal to the aggregate of the LIBOR (London Inter-Bank Offered rate) and the bank's margin of 3.110% per annum. Repayments of the loan capital are payable over 112 monthly instalments following. Capital repayment of the loan commenced during the year ended 31 March 2017. The loan is fully repayable in 2030.

21
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 April 2023
Incoming resources
Resources expended
Transfers
At 31 March 2024
£
£
£
£
£
Drayton Hall - Donated property
500,000
-
-
-
500,000
Ministry Bus
47,665
-
-
(47,665)
-
547,665
-
-
(47,665)
500,000
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Restricted funds
(Continued)
- 26 -
Previous year:
At 1 April 2022
Incoming resources
Resources expended
Transfers
At 31 March 2023
£
£
£
£
£
Drayton Hall - Donated property
-
500,000
-
-
500,000
Drayton Hall - Refurbishment / Equipment
-
90,000
(716)
(89,284)
-
Ministry Bus
-
47,665
-
-
47,665
-
637,665
(716)
(89,284)
547,665

In the previous year The Lind Trust donated Drayton Hall to the Charity. As Teen Challenge needs permission from The Lind Trust to dispose of the property, the property has been left in the restricted fund as there is a continuing restriction to use on the property.

 

In the previous year The Magnify Foundation gave a grant of £47,665 towards the purchase of a new Ministry minibus. The bus was purchased in April 2023 and so the balance of the funds has been transferred to unrestricted funds.

22
Analysis of net assets between funds
Unrestricted
Restricted
Total
funds
funds
2024
2024
2024
£
£
£
At 31 March 2024:
Tangible assets
1,742,581
500,000
2,242,581
Investments
2
-
2
Current assets/(liabilities)
153,257
-
153,257
Long term liabilities
(516,104)
-
(516,104)
1,379,736
500,000
1,879,736
Per balance sheet
1,379,736
500,000
1,879,734
Balance to allocate
-
-
(2)
Unrestricted
Restricted
Total
funds
funds
2023
2023
2023
£
£
£
At 31 March 2023:
Tangible assets
1,715,379
500,000
2,215,380
Current assets/(liabilities)
49,927
47,665
97,591
Long term liabilities
(573,304)
-
(573,304)
1,192,002
547,665
1,739,667
TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
23
Operating lease commitments
Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
312
1,248
Between two and five years
-
312
312
1,560

 

24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024
2023
£
£
Total key management personnel remuneration
50,058
46,125
Transactions with related parties

The Project Manager is a Trustee of the Exit Foundation Charity. During the year the charity entered into the following transactions with related parties:

 

 

During the year some of the church organisations that the Trustees are involved with gave donations totalling £56,030 (2023 : £161,921).

TEEN CHALLENGE LONDON
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
25
Subsidiaries

 

Details of the charity's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
TC Landscapes And Group Maintenance Ltd
United Kingdom
Landscaping & Ground Maintenance
Ordinary Shares
2.00

TC Landscapes and Group Maintenance Ltd was dormant during the current and previous financial year.

26
Cash generated from operations
2024
2023
£
£
Surplus for the year
140,069
616,421
Adjustments for:
Investment income recognised in statement of financial activities
(103,109)
(75,237)
Depreciation and impairment of tangible fixed assets
83,258
52,768
Movements in working capital:
Decrease/(increase) in debtors
120,496
(112,926)
(Decrease)/increase in creditors
(23,934)
55,869
Cash generated from operations
216,780
536,895
27
Analysis of changes in net (debt)/funds
At 1 April 2023
Cash flows
At 31 March 2024
£
£
£
Cash at bank and in hand
110,142
152,230
262,372
Loans falling due within one year
(59,241)
-
(59,241)
Loans falling due after more than one year
(573,304)
57,200
(516,104)
(522,403)
209,430
(312,973)
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