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2021-03-31-accounts

THE LANTERN COMMUNITY COMPANY NUMBER: 3773749

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

INTRODUCTION

The Trustees present their report and the audited financial statements for the year ended 31 March 2021. This includes the Directors’ Report and Strategic Report as required by Company Law.

The legal and administrative information set out below forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association 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 (FRS102) (effective 1 January 2015) published on 16 July 2014.

REFERENCE AND ADMINISTRATIVE DETAILS

The organisation is a charitable company limited by guarantee, incorporated on 20 May 1999 and registered as a charity on 4 June 1999. The charity changed its name on 5 December 2012 from The Lantern Retreat to The Lantern Community.

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.

REGISTERED COMPANY NUMBER: 3773749 REGISTERED CHARITY NUMBER: 1075845

PRINCIPAL ADDRESS AND REGISTERED OFFICE

The Lantern Centre, Folly Farm Lane, Ashley, Ringwood, Hampshire BH24 2NN

TRUSTEES/DIRECTORS

during the year and to date: Liz Bord Michael Bradshaw Luigi Carnelli- (reappointed by rotation on 26 September 2020) Heidi Harrison -(appointed on 22 July 2020, reappointed on 26 September 2020) Alan Hollands - (reappointed by rotation on 26 September 2020) Ian Humphries Mark Loveys – appointed on 24 May 2021 Loraine Morgan (reappointed by rotation on 26 September 2020) Louise Tonkin - Chair until 2[nd] October 2021

Maria Verhoeven

All trustees are elected by the charity’s membership or appointed by the trustees to fill any interim vacancies, in accordance with the Charity’s Articles of Association. In such ‑ cases those trustees are required to offer themselves for re election at the next following AGM. One such appointment has been made since the last AGM.

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

KEY MANAGEMENT PERSONNEL:

Senior managers

B.Bilge Hunt Carol Cheeseman Emma Borbely-Bartis - left 26 July 2021 Robert van Turenhout Richard Pestell Burga Liddiard Ann Stevens Vell Cattaree

General Manager / Nominated Individual Operations Manager Day Services Manager Finance Manager Estate and Maintenance Manager Registered Manager Four Meadows Registered Manager Phoenix Retail Services Manager

LEGAL ADVISORS:

Pitmans

46 The Avenue, Southampton SO17 1AX

BANKERS:

National Westminster Bank plc 11 High Street, Ringwood, Hampshire BH24 1BA

AUDITORS:

PKF Francis Clark Towngate House, 2-8 Parkstone Road, Poole Dorset BH15 2PW

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

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. This document was amended by special resolutions on 30 April 2007, 19 November 2012, 29 August 2014 and 28 September 2019.

Appointment and training of the Trustees

‑ There must be at least five trustees at any time and no more than two may be co workers. Trustees shall be proposed for appointment by the existing trustees. The Board seeks to have Trustees with a range of competencies and backgrounds, to allow it to effectively fulfil its role. An induction pack is provided for all Trustees and specialist training is carried out on topics such as governance from time to time as required.

Members

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 122 (2020: 120).

Governance of the Charity

The Trustees recognise their ultimate responsibility for directing the affairs of The Lantern Community and for ensuring that it is solvent, well-run, and delivering the charitable outcomes for the benefit of the public for which it has been set up.

The Trustees meet together at least quarterly to review reports from management and to discuss matters such as the strategic direction of The Lantern Community, governance issues and certain financial matters. A number of Committees and Working Groups have been established to ensure that these matters can be properly addressed. These ‑ committees are seen as part of the on going structure of the community and membership consists of Trustees and members of the Lantern Management Group. A pattern of at least three meetings each year has been established, although the coronavirus pandemic prohibited many of these meetings in the year under review, with the dates for these three meetings being fixed well in advance to enable reports to be considered by a Trustee Board meeting within a few weeks. The Strategy Committee recommended the establishment of a ‘Changing Needs’ Working Group. Since the outbreak of the Coronavirus, Full Trustee Board meetings have been held remotely and this will continue for the foreseeable future.

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES AND ACTIVITIES

Charitable Objects

Under the Memorandum and Articles of Association adopted on 29 August 2014, the objects of the charity are as follows:

To relieve sickness, promote good health, provide care to and advance the education and training of people with a disability (whether mental or physical), the young, the old, or people otherwise in need, in accordance with the principles of Dr Rudolf Steiner, particularly (without limitation) by the establishment and maintenance of intentional communities in the form of villages, residential houses, day centres, kindergartens, schools, colleges or other types of social and / or educational community in which beneficiaries live and / or ‑ work and / or to which they otherwise resort, in community with persons providing support (known as “Co workers”).

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future objectives. In particular the trustees consider how planned activities will contribute to the aims and objectives they have set.

Activities

  1. The provision of housing for its beneficiaries who choose to live within a social and therapeutic community. The Lantern Community consists of eleven houses for beneficiaries, all with easy access to the town of Ringwood in Hampshire. The Lantern Community continues to include the tenants of Tawa (which belongs to the Oliver Trust) within its full life and provides care and support to them in their own home. There is a residential population of seventy-four people in the Lantern Community in Ringwood (including Tawa). Fifty one are adults with learning disabilities who hold their own tenancies, eighteen are short term volunteer workers and five are long term Co ‑ workers.

  2. The provision of personal care services to meet the care needs of beneficiaries. The Lantern Community offers Personal Care services to people who live in or near the Lantern Community Estate or who use the Day Services on the estate. The Lantern Community has a certificate of registration with the Care Quality Commission (CQC) for the regulated activity ‘personal care’. The Lantern Community as a service provider has two (formerly three) registered locations. In the beginning of 2020, The Lantern Community applied for a change of registration regarding closing the Field Maple Tree Location after an internal review and consequent restructuring of the management of the support and care across the community.

  3. The provision of support services to assist in developing the beneficiaries’ independence and enabling them to maintain their tenancy. The Lantern Community works closely with East Boro Housing Trust and they continue to provide expertise in managing tenancies and related matters. Another link to external expertise is maintained with Ellis Whittam providing advice on employment law, HR and health and safety in an unlimited support agreement covering these important areas.

  4. The provision of Day Services which create opportunities for work experience, lifelong learning, artistic and educational development. The work and training facilities are: Estate Work, Pottery, Art Studios, Weaving, Seasonal Crafts, Home Making Skills, Café, Bakery, Gift Shop and Horticultural Nursery, many of these selling products to the general public.

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

`

OBJECTIVES AND ACTIVITIES - continued

Objectives

ACHIEVEMENTS AND PERFORMANCE

Our 2020-21 financial year was one of the most challenging periods the community has ever experienced as was probably the case for many other care and support providers both in the UK and worldwide. Due to the coronavirus pandemic our year began, and also ended in, a national lockdown. We have had several ups and downs, easing the measures when appropriate in our risk management and then reviewing and strengthening them again when circumstances changed for the worse. However, amidst this chaos, we were able to continue to provide a safe environment for our companions and this was due to the resilience, selflessness and determination of our hard working and committed staff.

Nearly one and a half months before the start of the financial year we lost a long standing community member. Even though he was deteriorating quite considerably over the years, as well as being under the care of palliative care specialists, his passing away was still a shock for all of us. Unfortunately in October 2020, we lost another beneficiary. This was a sudden unexpected death and not related in any way to Covid 19. Both companions had lived with us in the Lantern for many years and before then they were part of the Sheiling School.

These two losses reduced the number of beneficiaries to 50 and we were not able to admit anyone to fill these vacancies until much later in the year due to the pandemic and our risk management. With the arrival of a new companion we ended the year, and currently have, 51 beneficiaries who live on site and we still have two vacancies which we intend to fill in the coming months.

At the beginning of pandemic, due to the uncertainties and the sudden lockdown, 10 of our co-workers chose to leave their volunteering posts with us earlier than their committed time. We also had employees who self-isolated due to signs of having contracted Covid-19 or were shielding because of underlying health conditions. This daily changing staff turnover and covering duty rotas were very difficult to manage. Our employees and remaining co-workers have been incredibly committed and supportive offering extra hours and flexibility in those rather drastic times. We are grateful as a community for their selfless devotion and hard work which they have shown throughout the year and to date.

We thankfully didn’t have a confirmed COVID-19 outbreak in the community during our financial year 2020-21 and this was mainly due to the stringent measures put in place regarding where staff worked, staff illnesses and self-isolation procedures. In addition changes were made to our property portfolio by our Estate and Maintenance team to make our properties Covid safe. To achieve all of this considerable costs were incurred, mainly in the form of overtime to cover the gaps caused by staff on leave or self-isolating. We also minimised the number of houses staff worked in to minimise the potential impact of someone catching the virus. In the financial year we received local authority grants totalling £147,938 which we used to affray the additional pandemic related costs. Had we not received these grants we would have ended the year with an increased loss of £157,823 instead of the published loss figure of £9,885

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENTS AND PERFORMANCE - continued

‑ As at 31 March 2021, we had approximately seventeen short term co workers supporting the community. Covid-19 has made the recruitment of staff in general much more difficult and also, as a result of Brexit, we have seen a sharp drop in demand from EU based volunteers due to substantial additional costs. Despite these two factors we have still been able to meet the needs of the community by recruiting suitably qualified and competent staff. Although we have worked hard in terms of our Human Resources and on retaining our staff, our staff turnover was higher this year than in previous years, mainly due to a very competitive employment market.

Despite the effects of the pandemic we have continued to increase pay and we believe we offer a competitive wage. We wish to make the Lantern Community a long term vocation for staff. We have also continued with the employee benefits initiated in previous years.

In the face of the threat posed by the pandemic examples of infection control measures we put into place include

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

ACHIEVEMENTS AND PERFORMANCE - continued

Our Estate and Maintenance team helped to meet our COVID- related needs and so most of the building projects planned for 2020-21 had to be postponed. These projects included

Building projects which were completed include

The Estate and Maintenance manager and team also ensured we had sufficient stocks of good quality PPE, testing equipment, sanitising products, signage and more. This was after the start of the pandemic when the sourcing of these products was very difficult not just for us but for all care and support providers. However this came with a cost to the charity because of the increased prices in PPE at the beginning of the pandemic.

As an intentional community, the Covid-19 pandemic and Brexit have hit us maybe more than other UK based support and care provider. Two of the main values of the community are based on the importance of encounter and creating community together. Celebrations are also of great importance to us bringing people together and welcoming them to our community. Celebrating festivals, birthdays, are essential parts of who we are; it is part of our identity. It was challenging to maintain these core values while managing the risk of Covid but we believe we maintained a sense of our cultural identity. Since the restrictions have been somewhat relaxed, and using the new pergolas outside, we have been able to meet with each other again.

Plans for the coming year

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Medium Term Plans

Create new workshops. Meet the changing needs of some beneficiaries who may wish to have a slower pace of life in their old age.

Enable as many individuals as possible, both beneficiaries and day placements, the chance to be involved in meaningful day opportunities and skills training in craft and service workshops.

Invest in training and improving our Health and Safety procedures.

Pay policy for senior staff

The Senior Managers are all on an approved pay scale based on the NJC (National Joint Council) Pay Scales. All these posts cover a range of 3 - 6 spinal points on the NJC Scale. The individual managers have been appointed to a point within the range commensurate with their qualifications and experience. For the General Manager progression within the range is automatic but for the other senior managers there is a "bar" at the mid-point and progression above the "bar" is dependent on performance and qualification. Future senior staff appointments will be made in a similar way. In normal circumstances pay rises will be in line with those agreed as part of the NJC Pay Scale agreement. Consideration will be given on an annual basis to the appropriateness of the NJC Pay Scales and whether any changes in the structure of community require reconsideration of the pay scale approved by the Board of The Lantern Community.

STRATEGIC REPORT

Risk management

The Trustees have established a process for reviewing the key risks facing the charity and for ensuring that actions are taken to manage those risks. A detailed Risk Register is maintained. Individual risks are reviewed by the appropriate committee the results of this exercise are reported to the Board of Trustees. The Trustees have given consideration to the major risks to which the charity is exposed and are satisfied that systems and procedures are in place to manage those risks or that action is being taken to establish such systems and procedures.

The three principal risk areas are:

Operational Risk

Craft Centre: During the last financial year, a number of issues were identified in one of the craft centre buildings (pottery and art) which included water ingress in the basement, cracks in the floor of the Art Studio, rainwater entering the building through the roof, problems with the roof. This is currently being investigated and a claim has been made through our insurance company, which may be contested by the lead contractor and could result in legal action being taken. The dispute regarding the liability for the water ingress continues. In the future remedial works will require the Art/Pottery workshop building to be closed for three months and an alternative venue will be sought. Included in these accounts is a provision of £286,644 to cover the cost of repairing the building.

Another operational risk that The Lantern Community needs to take into account in the coming years is the impact of Brexit on the recruitment of volunteers, in particular on the numbers of Co-workers. The Lantern community, in common with most Camphill Communities is very reliant on residential volunteers for cultural enrichment/life sharing. A ‑ reduction in voluntary co workers, because of difficulties in obtaining visas, would mean losing a very important aspect of community life. The Lantern Community is intending ‑ ‑ working with other communities in creating an awareness and lobbying about the importance of having co workers in Camphill communities for life sharing. Thankfully our recent application to the UK Home Office to increase the annual number of visas we can issue from 10 to 30 was recently approved.

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

STRATEGIC REPORT - Operational Risk continued

Covid -19

The Trustees are closely monitoring the impact that COVID-19 is having on the charity’s contract income and on its wellbeing overall. As most of our contract income is paid for by the UK local government sector we are in the relatively fortunate position of not experiencing a decline in our contract revenues. The Trustees are also closely monitoring the COVID-19 related increases in our costs and they believe the short to medium term impact on liquidity will not affect the ability of the charity to fulfil its aims and commitments.

The Trustees have considered the financial position of the charity and the potential impact of COVID-19. The business plan predicts that although the pandemic is likely to result to higher costs, as our income stream is robust and as we have significant free reserves amounting to £1,919,758 or 8.0 months of cover, they are confident the charity is able to continue fulfilling its objective for at least the short and medium term.

Even though as a community, we have been blessed with a relatively high level of reserves fund and continuous public funding, challenges dealing with after Covid-19 pandemic may cause financial problems in the long term.

Finance Risk

The Finance Manager has the relevant qualifications and experience to maintain the professional approach in finances. The Lantern Community invested in a good computerised finance system, Advanced Exchequer, which is kept up to date. Quarterly management accounts are produced for management and the Trustee Board.

A major instrument for the control of operations in The Lantern Community is the annual production of a three year business plan, the first year being the budget. The plan contains the major assumptions for all elements of the organisation, including capital expenditure projects, beneficiary and staff numbers. The plan has income and expenditure, balance sheet and cashflow forecasts, allowing a clear framework for future direction. The plans are set prudently and the experience has been that actual results exceed the plan.

Financial Performance

Total incoming resources on charitable activities for the year totalled £2,844,677. Of this amount £2,016,638 or 70.9% related to care fees from local authorities. In particular, Dorset County Council contributed £1,346,947 or 47.3% of total income from charitable activities. In addition, housing benefit of £428,670 (or 15.1% of our total income from charitable activities) was received from East Dorset District Council on behalf of our companions and long term volunteers. It can be seen that a significant proportion of income comes from local government and that changes in government policy could have a notable effect on The Lantern Community’s financial situation. Relations with both Dorset County Council and East Dorset District Council remain positive.

Performance Criteria

The Board of Trustees of The Lantern Community continues to measure actual financial performance against budgets at every meeting of the Board.

The Board and the Lantern Management Group have been considering more formal means of measuring performance and are working on a number of areas on which they will report in the future. Arriving at suitable performance indicators and developing the systems for capturing the data is a significant task. The areas that such indicators will be focused on include:

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THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021 Performance Criteria - continued

Beneficiaries

Staff

External Quality Measures

We have not been inspected in 2020-2021 budget year by Social Services or CQC due to ongoing infection control measures in place in care and support provisions. It has Health & Safety audits by Ellis Whittam and fire risk assessments by East Boro Housing Trust. The Lantern Community considers these external reports and assessments to be helpful and is responsive to proposals or comments made.

RESERVES POLICY

The Trustees have continued to review the level of reserves held by the charity in line with the guidance set out by the Charity Commission. Sufficient reserves need to be available to cover unforeseeable fluctuations in income and cash flow. The Trustees consider that the aim should be to be able to cover at least three months expenditure and in the longer term for the charity to have free reserves equal to approximately six months expenditure.

As at 31 March 2021 General Reserves stood at £2,029,867 (2020: £2,029,526). Of this reserve balance £110,109 (2020: £110,411) represents non land and buildings tangible fixed assets, this leaves free reserves of £1,919,758 (2020: £1,919,115), equivalent to 8.0 months of continuing operations expenditure (2020: 8.1 months). See note 16.

The purpose, movements and balances of all the designated funds are set out in Note 14. The Property Capital Fund can only be realised on disposal of the property and settlement of the related loans.

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Statement of Directors' Responsibilities

The trustees (who are also the directors of The Lantern Community for the purposes of company law) are responsible for preparing the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of Compliance

The trustees believe they have complied with all currently prevailing laws and regulations that apply to the charity and its operations.

Auditors

So far as the trustees are aware, there is no relevant audit information (information needed by the company’s auditors in connection with preparing their report) of which the company’s auditors are unaware. Each trustee has taken all the steps that he ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

The provision of auditing services was subjected to open competition in 2021. A resolution to appoint Knight Goodhead, who were selected to succeed PKF Francis Clarke as the Lantern Community's auditors, will be proposed at the 2021 Annual General Meeting which is due to take place on October 2[nd] 2021.

This report has been prepared in accordance with the Companies Act 2006, and complies with the charity’s governing document 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 (FRS102) (effective 1 January 2020).

The Strategic Report is also hereby approved.

Approved by the trustees and signed on their behalf by Louise Tonkin (Trustee)

Date: September 17[th ] 2021

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY

Opinion

We have audited the financial statements of The Lantern Community (the ‘charity’) for the year ended 31 March 2021, which comprise the Statement of Financial Activities, Balance Sheet and Statement of the Cash Flows, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

This report is made solely to the charitable company’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the financial statements.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of responsibilities of trustees set out on page 12, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charitable company. We gained an understanding of the Charitable company and the sector in which the Charitable company operates as part of this assessment to identify the key laws and regulations affecting the Charitable company. As part of this, we reviewed the Charitable company’s website for an indication of any regulations in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity legislation, health and safety regulations, the Care Act 2014 and breaches of The General Data Protection Regulation (“GDPR”). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Charities SORP - FRS 102.

We discussed with management and trustees how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charitable company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charitable company’s ability to continue trading and the risk of material misstatement to the accounts.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Johns FCCA FCA (Senior Statutory Auditor) For and on behalf of PKF Francis Clark, Chartered Accountants and Statutory Auditor

Towngate House 2-8 Parkstone Road

Poole Dorset BH15 2PW Date:.............................

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

(including Income and Expenditure Account)

Notes
Income from:
Donations and legacies
2
Charitable activities
2
Investments
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
3
Total expenditure
Net income
2
Net movement in funds
14/15
Reconciliation of funds:
Total funds brought forward
14/15
Total funds carried forward
14/15		 Unrestricted
Restricted
2021
Funds
Funds
Total
£
£
£
23,934
23,422
47,356
2,844,677
-
2,844,677
5,190
-
5,190
2,873,801
23,422
2,897,223
187
-
187
2,872,957
33,964
2,906,921
2,873,144
33,964
2,907,108
657
(10,542)
(9,885)
657
(10,542)
(9,885)
8,534,946
1,215,261
9,750,207
8,535,603
1,204,719
9,740,322		 2020
Total
£
542,929
3,069,008
16,687
3,628,624
965
2,930,654
2,931,619
697,005
-
697,005
9,053,202
9,750,207

All income and expenditure derives from continuing activities.

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital)

BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
8
Current assets
Stocks
9
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one year
11
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
13
Net assets
Charity Funds
Restricted Funds
14
General funds
15
Designated funds
15
Total charity funds
16		 2021
£
£
7,087,688
18,940
187,045
3,738,463
3,944,448
(666,968)
3,277,480
10,365,168
(624,846)
9,740,322
1,204,719
2,029,867
6,505,736
9,740,322		 2020
£
£
7,021,588
4,500
210,450
3,742,101
3,957,051
(516,069)
3,440,983
10,462,570
(712,363)
9,750,207
1,215,261
2,029,526
6,505,420
9,750,207

The financial statements were approved and authorised for issue by the Board on September 6[th] 2021.

Signed on behalf of the Board of Trustees by Louise Tonkin (Trustee)

The notes on pages 20 to 33 form part of these financial statements.

Date: September 17[th ] 2021

Company registration number: 03773749

Page 18

THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flow from operating activities
21
Net cash flow from operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
8
Receipts from sales of tangible fixed assets
Interest received
2
Net cash flow from investing activities
Cash flow from financing activities
Repayment of long term loans
13
Interest paid
Net cash flow from financing activities
Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2020
Cash and cash equivalents at 31 March 2021
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2021		 2021
£
189,400
189,400
(95,328)
-
5,190
(90,138)
(85,228)
(17,672)
(102,900)
(3,639)
3,742,101
3,738,463
3,738,463
3,738,463		 2020
£
819,455
819,455
(96,738)
928,149
16,687
848,098
(81,811)
(22,190)
(104,001)
1,563,552
2,178,549
3,742,101
3,742,101
3,742,101

Page 19

THE LANTERN COMMUNITY

(Company limited by guarantee and not having a share capital)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

1 Summary of significant accounting policies

(a) General information and basis of preparation

The Lantern Community is an incorporated charity in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 2 of these financial statements. The nature of the charity’s operations and principal activities are providing housing, care and support within a social and therapeutic community.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2020.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the Statement of Recommended Practice (FRS 102).

Page 20

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from trading activities is generated by supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The charity receives fees from local government in respect of services and facilities provided. Income from government and other grants and fees are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as deposits. It includes interest income which is recognised as the charity’s right to receive payment is established.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management. Where support costs cannot be directly attributed to particular headings they have been allocated to the cost of raising funds and expenditure on charitable activities on a basis consistent with the use of the resources. Premises overheads have been allocated based on the location where possible or based on area and other overheads have been allocated on an activity level basis.

The analysis of these costs is included in note 3.

(e) Government grant income

A grant that becomes receivable as compensation for expenses already incurred will be recognised in profit or loss in the same period in which the related expense is incurred.

Page 21

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

(f) Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land Nil– see below Freehold buildings Nil– see below Furniture and Equipment 20% reducing balance Computer Equipment 33% reducing balance Motor vehicles 25% reducing balance

Freehold land is not depreciated in general but the cost of paths is written off over 10 years on a straight line basis. In addition the pergolas, which were constructed in the year under review and have a carrying value of £9,652, are being depreciated over 2 years on a straight line basis. The other Freehold buildings are not depreciated because the trustees consider the high level of ongoing maintenance extends the life of these assets for an indefinite period, the trustees consider the carrying value not to be less than their residual value. The trustees consider whether any impairment has occurred on an annual basis and are not aware of any events or matters (such as damage or exceptional deterioration) that would require a write down against the carrying value of any particular building.

(g) Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete, slow-moving or otherwise impaired stock where appropriate.

(h) Debtors and creditors receivable / payable within one year

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

(i) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

(j) Concessionary loans

Concessionary loans include those received from third parties which are interest free or below market interest rates and are made to advance charitable purposes. Loans repayable on demand within one year are measured at cost, less impairment. Concessionary loans repayable in over one year are measured at cost as no interest is chargeable.

Page 22

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

(k) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount.

(l) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(m) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

(n) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(o) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. As explained in the trustees report on page10, the trustees have considered the uncertainty relating to the coronavirus pandemic, which began just before the start of the financial year, and the impact on the charity’s operations and finances in the short to medium term. In the opinion of the trustees, with its robust income stream as well as 8.0 months or £1,919,758 of free reserves and the constant monitoring and control of costs, the charity has sufficient working capital to continue to meet its financial obligations and pay its liabilities as they fall due for the foreseeable future and therefore the financial statements have been prepared on a going concern basis. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves held for the charity to be able to continue as a going concern.

(p) Judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

That the market value of properties is not expected to fall.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

The amounts set aside for designated funds to cover future costs.

Page 23

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

2 INCOME

DONATIONS AND LEGACIES
Donations, legacies and similar incoming resources
CHARITABLE ACTIVITIES
Fees and contributions – local authorities / other sources
Rent and service charges
Ineligible and mobility
Shop / café / bakery & other workshops sales
Guest House income
Other income
Total incoming resources from charitable activities
INVESTMENTS
Investment income
Total investment income
TOTAL INCOME
TOTAL EXPENDITURE (see note 3)
NET INCOME FOR THE YEAR		 Residential
Workshops
Total
(Ringwood)
(Ringwood)
Internal sales
eliminated
2021
£
£
£
£
37,156
10,200
-
47,356
1,593,988
442,570
(19,920)
2,016,638
400,009
-
-
400,009
200,244
-
-
200,244
-
155,164
(92,874)
62,290
-
-
-
-
130,049
35,448
-
165,497
2,324,289
633,182
(112,794)
2,844,677
4,743
447
-
5,190
4,743
447
-
5,190
2,366,188
643,829
(112,794)
2,897,223
(1,942,098)
(1,077,804)
112,794
(2,907,108)
424,090
(433,975)
-
(9,885)		 Total
2020
£
542,929
2,129,212
416,400
203,581
253,571
39,320
26,924
3,069,008
16,687
16,687
3,628,624
(2,931,619)
697,005

‑ Income from donations and legacies was £47,356 (2020 - £542,929) of which £23,422 (2020 - £533,874) was attributable to restricted (Note 14) and £23,934 (2020 £9,054) was attributable to unrestricted funds (note 15).

Page 24

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

3 EXPENDITURE

RAISING FUNDS
Fundraising and publicity
CHARITABLE ACTIVITIES
Employed staff costs
Co-worker costs
Premises costs
Depreciation – owned assets
Office and administration
Medical costs
Garden and estate
Food, household and cleaning
Cost of sales
Hotel recreational costs
Motor and travel expenses
Legal and professional fees
Bank charges
Loan interest
(Profit) / Loss on sale of fixed assets
Sundry expenses
Audit and accountancy
Trustee Board costs
Total resources expended on charitable activities
TOTAL EXPENDITURE FOR THE YEAR		 Residential
Workshops
Total
(Ringwood)
(Ringwood)
Internal
purchases
eliminated
2021
£
£
£
£
1,937
(250)
(1,500)
187
1,272,339
562,828
(21,010)
1,814,158
75,497
7,500
(9,291)
73,706
185,593
346,338
(2)
531,929
22,824
6,404
-
29,228
64,265
12,361
-
76,626
22,481
-
(35)
22,446
16,696
-
(10,930)
5,766
204,529
1,066
(68,703)
136,892
-
121,633
(1,313)
120,320
-
-
-
-
28,720
48
-
28,768
12,500
4,583
-
17,083
2,869
-
-
2,869
17,376
-
-
17,376
-
-
-
-
3,098
12,852
(10)
15,940
7,405
2,440
-
9,845
3,970
-
-
3,970
1,940,161
1,078,054
(111,294)
2,906,921
1,942,098
1,077,804
(112,794)
2,907,108		 Total
2020
£
965
1,947,091
82,449
281,124
31,382
75,479
3,619
26,471
191,364
196,430
669
35,990
16,704
2,715
21,907
(11,215)
13,653
10,488
4,335
2,930,654
2,931,619

£33,964 (2020 - £21,103) of the above costs were attributable to restricted funds (Note 13). £2,873,144 (2020 - £2,910,516) of the above costs were attributable to unrestricted funds (Note 15).

Page 25

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

4 DEFERRED INCOME

During the year payments in advance of £64,299 (2020: £44,685) were received and have been treated as deferred income as they relate to the next financial year, and are included within other creditors.

5 EMPLOYED STAFF COSTS AND NUMBERS

During the year, nine trustees were reimbursed expenses totalling £NIL (2020: eight trustees, £NIL). No trustee received any remuneration in the current year or prior year other than disclosed in note 18 to the accounts.

During the year indemnity insurance of £850 (2020: £773) was paid to cover the trustees in the event of any misrepresentation of the organisation.

Employed staff costs were as follows:
Salaries and wages
Social security costs
Pension costs
No employee earned more than £60,000 per annum
during this year or the prior year.
The average weekly number of employees during the year was as follows:
Lantern Residential and Workshops (Ringwood)
Lantern Seahorses (Isle of Wight) - discontinued operation		 2021
£
1,679,975
127,085
41,805
1,848,864
2021
No.
97
-
97		 2020
£
1,754,566
121,160
43,337
1,919,062
2020
No.
106
2
108

The employee benefits of key management personnel for the year ended 31 March 2021 was £323,940 (2020: £324,226). A list of key management personnel may be found on page 3 of this document.

6 TAXATION

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

Page 26

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 7 AUDITORS REMUNERATION

7 AUDITORS REMUNERATION
2021 2020
£ £
Fees payable to the charity’s auditor for the audit of the charity’s annual accounts 9,845 10,295
Fees payable to the charity’s auditor for other services:
VAT consultancy services provided by the charity’s auditor
VAT consultancy costs are included in legal and professional fees in note 3.		 90 2,255

8 TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 April 2020
Additions in the year
Transfers
Disposals in the year
At 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
Disposals in the year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Freehold land
& buildings
Assets under
construction
Paths
Furniture &
equipment
Computer
equipment
Motor
vehicles
Total
£
£
£
£
£
£
£
6,779,508
131,669
31,686
113,837
20,924
133,837
7,211,461
9,652
57,205
-
9,412
-
19,059
95,328
58,577
(58,577)
-
-
-
-
-
-
-
-
-
-
-
-
6,847,737
130,297
31,686
123,249
20,924
152,896
7,306,789
-
-
16,733
58,617
16,506
98,017
189,873
455
-
3,168
11,845
1,464
12,296
29,228
-
-
-
-
-
-
-
455.00
-
19,901
70,462
17,970
110,313
219,101
6,847,282
130,297
11,785
52,787
2,954
42,583
7,087,688
6,779,508
131,669
14,953
55,220
4,418
35,820
7,021,588

The charity’s land and buildings were valued at open market value by Primmer Olds LLP, Chartered Surveyors in March 2013 prior to devolution from The Sheiling Trust. This has been adopted as the deemed cost at the transition date. Subsequent additions are at cost.

The closing balance of £130,297 in Assets under Construction includes costs incurred for the new hall of £98,858 and costs incurred for the gym project of £31,440. Please see associated restricted and unrestricted funds in notes 14 and 15 respectiveley.

Page 27

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

9 STOCK

As at 31 March 2021 stock was valued at £18,940 (2020: £4,500) and related to goods for resale in the shop on the Ringwood estate.

10 DEBTORS

Trade debtors
Other debtors
Prepayments and accrued income
11 CREDITORS: amounts falling due within one year
Unsecured concessionary loans for indefinite terms (see note 13)
Bank loans (see note 13)
Trade creditors
Other creditors
Other taxation and social security
Accruals
Deferred income		 2021
£
44,126
13,725
129,194
187,045
2021
£
-
87,649
47,747
32,820
44,064
390,389
64,299
666,968		 2020
£
73,077
15,493
121,880
210,450
2020
£
100,000
85,359
88,078
43,283
40,375
114,288
44,685
516,069

An unsecured concessionary loan which had been advanced to The Lantern Community by the family trust of a beneficiary was fully repaid on September 18th 2020. The loan had been for an indefinite term, but was repayable in certain events such as the beneficiary leaving the charity. In some circumstances it could have been repayable on demand. As the repayment date for this loan was unspecified it was shown has been treated as falling due within one year.

12 CONTINGENT ASSET

Included within the above accruals figure of £390,389 in note 11: Creditors due within one year is a provision of £286,644 which is the estimated cost of repairing defects in one of our workshop buildings which was constructed approximately 8 years ago. Of the £286,644 cost we expect to recover approximately £106,187 from our insurers and we have also issued a Preliminary Notice of Claim against the construction company we believe to be responsible for the remaining balance of approximately £180,457. As we are not virtually certain of receiving these amounts, in accordance with FRS 102 they have not been recognised in these accounts as assets.

13 CREDITORS: amounts falling due after more than one year

Unsecured concessionary loan
Bank loans		 2021
£
100,000
524,846
624,846		 2020
£
100,000
612,363
712,363

Page 28

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

An unsecured concessionary loan has been advanced to The Lantern Community by the family trust of a beneficiary. This loan is for an indefinite term, but can become repayable in certain events such as the beneficiary leaving the charity. In some circumstances it can become repayable on demand. A side agreement was signed in the year ending 31 August 2014, in which it stated that the family trust would not require repayment of this loan before 1 September 2020. A subsequent side agreement has been signed in May 2020, in which it stated that the family trust would not require payment of this loan before 1 September 2025.

In 2017 two bank loans of £450,000 each were negotiated, secured on Willow End Cottage, Silver Birches and Badger Cottage. One loan is fixed rate at 3.22% for a ten year term and the second is variable rate at 2% above the Bank of England base rate for a ten year term.

The bank loans are repayable by instalments as follows
Within 1 year
Between 1 and 2 years
Between 2 and 5 years
Between 5 and 10 years
Total bank loans
14 RESTRICTED FUNDS
Woodwork workshop
Lantern Hall
Hillcrest activities
Field Maple activities
Replacement tractor and mower fund
In memory of Jose Palau
For the Art Workshop
To help with COVID related costs
For Cydonia
New pergolas
New building behind Barn Cottage
Total restricted funds		 2021
2020
£
£
87,649
85,359
90,005
87,651
284,826
277,360
150,015
247,352
524,846
612,363
612,495
697,723
At
1 April 2020
Incoming
Resources
Outgoing
resources
Transfers
At 31 March
2021
£
£
£
£
£
1,020
-
-
-
1,020
1,146,727
-
-
-
1,146,727
297
-
(57)
-
240
54,439
-
-
-
54,439
10,833
-
(10,833)
-
-
1,945
-
-
-
1,945
200
(200)
-
-
1,122
(1,122)
-
-
100
(100)
-
-
10,000
(9,652)
-
348
12,000
(12,000)
-
-
1,215,261
23,422
(33,964)
-
1,204,719

Page 29

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Woodwork Workshop

Donations were received and fundraising was undertaken for the purpose of contributing to the costs of a canopy for the woodwork workshop. These funds have not yet been spent.

Lantern Hall

A large number of donations have been received and allocated to the project for a new hall at The Lantern Community in Ringwood.

Hillcrest activities

A number of donations have been received with the instruction that they be used for activities in Hillcrest, one of the houses in the community.

Field Maple activities

Donations of £15,000 and £100,000 were received in March 2016 and July 2017 respectively for Field Maple activities. The donor received a list of proposed projects with associated costings, which formed the basis for the donations. Some tasks were undertaken in the year ended 31 March 2017 and some more in the year ended 31 March 2019. The balance brought forward at 1 April 2020 is for the gym project which commenced in our 2019/20 financial year and, for reasons relating to the pandemic, was not completed as at 31st March 2021. As at the year end an amount of £31,440 had been spent (Note 8)

In memory of Jose Palau

A day services client named Jose Palau passed away during the year under review and donations were subsequently received. The intention is a physical memorial will be procured to preserve the memory of Jose Palau

Replacement tractor fund

In August 2019 our tractor and ride on mower were stolen. We received the above donations during the year and these will be used to offset the costs of the replacement machinery which was purchased in the year under review

New Pergolas

New pergolas were constructed in the year under review and the T.H. Russell Charitable Trust very generously donated £10,000 towards their cost.

Page 30

THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

15 UNRESTRICTED FUNDS

DESIGNATED FUNDS:
Cash backed designated funds:
Co-worker retirement
Co-worker social fund
Bakery project
Lantern Hall
Long term maintenance
Future Projects
Lantern Centre office refurbishment
Lantern Centre shop refurbishment
Property capital fund
Total designated funds
General funds
Total unrestricted funds
Purposes of designated funds		 At
1 April 2020
Incoming
Resources
Outgoing
resources
Transfers
At 31 March
2021
£
£
£
£
£
23,404
-
-
-
23,404
53,670
-
(10,000)
8,000
51,670
2,543
-
-
-
2,543
121,567
-
(3,600)
-
117,967
40,000
-
-
10,000
50,000
18,631
23,934
-
-
42,565
160,062
-
-
(28,018)
132,044
143,215
-
-
-
143,215
563,092
23,934
(13,600)
(10,018)
563,408
5,942,328
-
-
-
5,942,328
6,505,420
23,934
(13,600)
(10,018)
6,505,736
2,029,526
2,849,867
(2,859,544)
10,018
2,029,867
8,534,946
2,873,801
(2,873,144)
-
8,535,603

Co-worker retirement fund

This is a fund created to contribute towards meeting the retirement needs of the co-workers.

Co-worker social fund

The co ‑ worker social fund has been created to finance anticipated future expenditure relating to financial assistance to co-workers, e.g. when they leave The Lantern Community. Payments of £5,000 each were paid to two retired co-workers

Bakery project fund

Up until June 2016 donations from the second hand books scheme were allocated to a fund to contribute to the costs of the planned Bakery project. This project includes major external and internal works and improved access.

Lantern Hall

See also note 14 above for Lantern Hall under restricted funds. Some donations have been received without restrictions and have been designated to the fund for this major project. Other general donations have been allocated to this fund up until June 2019.

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Long term maintenance

A provision of £10,000 per annum is being made. Amounts in this fund will be released when a major maintenance task is undertaken.

Future Projects fund

This fund was created in July 2018. The rationale is to allow donations to be gathered in a general pot and then projects to be proposed for trustee approval, to ensure donated monies are used effectively and expeditiously.

Property capital fund

This fund has been created to reflect the carrying value of land & buildings held by the charity, net of bank loans and property related loans outstanding at the balance sheet date.

16 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Net current assets
Long term liabilities
NET ASSETS		 Restricted
funds
Designated
funds
General
Total funds
funds
£
£
£
-
6,977,579
110,109
7,087,688
1,204,719
153,003
1,919,758
3,277,480
-
(624,846)
-
(624,846)
1,204,719
6,505,736
2,029,867
9,740,322

17 AMOUNTS HELD FOR BENEFICIARIES

The charity holds £11,018 (2020: £8,294) on behalf of beneficiaries. These funds are in a separate bank account and are not included in these financial statements.

18 RELATED PARTIES

The following transactions and relationships with related parties are of note:

‑ ‑ Two of the children of M Verhoeven, trustee, are employed by The Lantern Community as house co ordinator and workshop co ordinator and are remunerated accordingly. The wife of M Bradshaw is employed by The Lantern Community as Human Resources Assistant.

During the year purchases with a value of £1,955.11 were made from a company called Concert Networks Ltd which the son of Alan Hollands, a Trustee, is the sole director and shareholder. All transactions were at arms length and there was no amount due or from the company as at 31st March 2021.

Liz Bord, trustee, is also The Lantern Community’s nominated trustee of The Camphill Benevolent Fund (CBF), which makes disbursements to retired co ‑ workers.

Donations by trustees to The Lantern Community in the year ended 31 March 2021 amounted to £2,025 (2020: £5,000).

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THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

19 DONATED SERVICES AND ASSETS

In the year ended 31 March 2021 there was no income from donated services and assets (2020: £NIL).

20 DEFINED CONTRIBUTION PENSION SCHEME

The company operates a defined contribution pension scheme on behalf of its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension commitment for the year under this scheme was £41,805 (2019/20: £43,337).

21 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2021
£
Net income for year
(9,885)
Interest receivable
(5,190)
Interest payable
17,376
Depreciation and impairment of tangible fixed assets
29,228
(Profit) / loss on disposal of tangible fixed assets
-
(Increase) / decrease in stock
(14,440)
(Increase) / decrease in debtors
23,405
Increase / (decrease) in creditors
148,906
Net cash flow from operating activities
189,400
22 OPERATING LEASES
2021
£
Not later than one year
-
Later than one year and not later than five years
-
Future minimum lease payments under non-cancellable operating leases as at 31 March 2021		 2020
£
697,005
(16,687)
21,907
31,382
(11,215)
43,298
21,852
31,914
819,455
2020
£
5,907
-

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