THE LANTERN COMMUNITY COMPANY NUMBER: 03773749 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Page I
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 INTRODUCTION The Trustees present their repM)rt and the audited financial statements for the year ended 31 March 2025. This indudes the Directors, Report and Strategic Report as required by Company Law. The legal and administrative Infomiation set out below fomis part of this reporL The financial statements comply with cuent statutory requlrements, 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 Financ1 Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2022). REFERENCE AND ADMINISTRATIVE DETAILS The organisation is a charitable company limtted by guarantee, incorporated on 20 May 1999 and registered as a chaiity on 4 June 1999. The charity changed its name on 5 December 2012 from The Lantem Retreat to The Lantem Communty. The company was established under a Memorandum of Assoctation. which established the objects and powers of the charitable company and is govemed under rts Articles of Association. REGISTERED COMPANY NUMBER: REGISTERED CHARITY NUMBER: PRINCIPAL ADDRESS AND REGISTERED OFFICE The Lantern Centre, Folly Farni Lane, Ashley. Ringwood, Hampshire BH24 2NN 3773749 1075845 TRUSTEESIDIRECTORS during the year and to date: Liz Bord Michael Bradshaw Luigi Camelll - Chair from Autumn 2025 Alan Hollands - resigned 30 September 2024 Neil Hollands lan Humphries Loraine Morgan Immanuel Verhoeven- appointed 21 October 2024 Maria Verhoeven David Walker Chair until Autumn 2025 All Trustees ar8 elected by the charivs membershlp or appointed by the Trustees to fill any interim vacancies. in accordance with the Charitls Artides of Association. In such cases those Trustees are required to offer themselves for re-eleclion at the next follothqng AGM. One (2024: One) such appointment has been made since the last AGM. Page 2
THE LANTERN COMMUNITY (Company Ilmited by guarantee and not having a share capltal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 KEY MANAGEMENT PERSONNEL: S•nior managers B.Bilge Hunt Carol Cheeseman Jason Gonsalves Vell Cattaree Burga Liddiard Damian Zibur- appointed 1 April 2024 Robert van Turenhout Claudiu Deliu - Chief Executive Officer l Nominated Indimdual - Operations Manager - Estate and Maintenance Manager - Day Sepllces and Workshops Manager - Registered Manager Four Meadows - Resourcing and Development Manager Finance Manager - Registered Manager Phoenix LEGAL ADVISORS: Broadfield 46 The Av8nue, Southampton S017 1AX BANKERS: National Westminster Bank plc 11 High Street, Ringwood. Hampshire BH24 1 BA AUDITORS: Knlght Goodhead Ltd 7 Boumemouth Rd, Chandlerfs Ford Eastlelgh S053 3DA Page 3
THE LANTERN COMMUNITY (Company limited by guarante6 and not having a share capital) TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 STRUCTURE. GOVERNANCE AND MANAGEMENT GOVERNING DOCUMENT The company was establishad under a memorandum of associatlon vthlth establlshed the objects and powers of the charitable o)mpany and is govemed under Its artlcles of association. This document was amanded by special r8solutions 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 c(Fvnrkers. Trustees shall be proposed for appointment by the existir@ Trustees. The Board seeks to have Trustees with a range of competenaes and backgrounds. to allow it to effectively fuffil its role. An induction pack is provided for all Trustees and speciali8t 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 tha event of winding up. The total number of such guarantees at 31 March 2025 was 130 (2024: 131). GOVERNANCE OF THE CHARITY The Trustees recognise their ultimate responsibility for directing the affairs of The Lantern Communty and for ensuring that tt 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 Lantem Community, govemance issues and certain financial matters. A number of Committees and Working Groups have been established to ensure that these matters can be prop8rly 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 four meetings each year has been estsblished. The dates for these four meetings are fixed well in advance 50 that reports Can be considered by Trustees prior to Trustee Board meetings. Page 4
THE LANTERN COMMUNITY (Company limited by guarantee and not havlng a share capltal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 OBJECTIVES AND ACTIVITIES Charitable Ob. Under the Memorandum and Artides of Association adopted on 29 August 2014. th8 objects of the tharity ar8 as follows: To r81i8ve sickness, promote good health, provide care to and advance the education and training of people with a disabilty (whether mental or physicall, the young, the old. or people otherwise in need. in accordance with the principles of Dr Rudolf Sleiner, particularly (without limitation) by the establishment and maintenance of intentional communities in the fom of wllages. residential houses. day centres. kindergartens, schools. colleges or other types of social and l or educational communty in which beneficiaries live and l or work and l or to whlch they othervrise resort. in community with persons providing support (known as °Ctrworkers°). We have referred to th8 guidance wntained in the Charity Commission's general guidance on public benefft when revi8vng our aims and objectives and in planning our future objectives. In particular the Trustees consider how planned activities will contribute to the aims and objectiv8s they have set. Activities The provision of housing for its beneficiaries who choose to live vAthin a social and therapeutic community. The Lantem Community consists of eleven houses for beneficiaries. all with easy access to the town of Ringwood in Hampshire. We ended the year with a residential population of sixty-four people in the Lantem Community in Ringwood. Fifty-one are adults wtth leaming disabilities who hold their tenancies. seven are short terni volunteer workers. three are long tenn CwOrk8rS and three are retired long term Co-workers. The provision of personal care serlices to meet the care needs of beneficiaries. The Lantern Community offers Personal Care servtces to people vtho live in or near the Lantern Community Estate or vtho use the Day Services on the estate. The Lantem Community has a certificate of registration with the Care Qualty Commission (CQC) for the regulated activity 'personal care,. The Lantem Communty as a service provider has two registered locations. The provision of support services to assist in developing the beneficiaries. independence and enabling them to maintain their tenancy. The Lantern Community worked closely WSth East Boro Housing Trust who continue to provide expertise in managing tenancies and related matters. Another link to extemal expertise is maintained with Worknest (fonnerly known as Ellis Whittam) providing advice on employment law. HR and health and safety in an unlimited support agreement covering these important ar8as. The provision of Day Services which create opportunities for work experien, lrfelong leaming. artistic and educational developmenL The work and training facilities are Estate Work, Pottery. Art Studios, Weaving. Seasonal Crafts. Home Making Skills, Café. Bakery. Gift Shop, a Spinnery and Horticultural Nursery. many of these selling products to the general public. Page 5
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capltal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 OBJECTIVES AND ACTIVITIES - conlinued Ob'ectives To provide a range of accommodation. workshops and social settings, staffed by highly mottvated employees and volunteers able to support adults vtho have leaming disabilities. To provide opportunities for adults with leaming disabilities to meet and interact with a wide range of people within the security of The Lantem Community and to develop the skills to engage with th8 wider community. To support people to build relationships and develop their confidence so that they tske a full and active role in society. To extend and develop the range and qualty of the services offered in direct SpOnSe to the needs of those adults wtth a leaming disabilty. Companions During the year. the number of companlons reached 51 as we bid farewell to iwo of our companions to whom we wish every success in their future Joumeys, and we were dellghted to welcome a new companion who joined our community in July 2024. In the Yrkshops. more day placements have been findized shortly after the end of the fiscal year and the totsl number has reached 20 as at the beginning of July 2025. Assured Tenancies The Trustee Board, in collaboration with th8 management group. extended offers of assured tenancies to all companions who had b88n in plac8 for over 12 months. These tenancies offer the highest level of security, refiecting the charitys deep c(#nmitment to the long-temi wellbeing and stability of tts beneficiaries. Volunteer Vlsa Challenges and Contingency Planning A significant challenge durirvJ the year was related to our co-workers (volunteers). who are ntral to our lrfe-sharing ethos in the house communttses. Historically, this model has been integral to our charivs identity. However, we began experiencing increased vlsa reiecbons for these vital volunteers. In response, we sought support frorn stakeholders to lobby against the UK Home Office's decisions. We extend our heartfelt thanks to a]1 who SUppd us in this matter. To mitigate the impact, W8 developed a Thr8e-Year Business Plan (xrtlining how to restructure support in the houses without voiunt88r assistance. Some rooms previously allocated to co-workers were reassigned to prospective companions. aligniNJ wtth our approach to making the best use of our assets. We are pleased to report that the visa crisis has now eased. While the number of incoming volunteer5 remains reduced. we are once again welcoming them into the community. This period prompted a comprehensiv8 review of C(Worker roles and their contributions. vthich is ongoing. Page 6
THE LANTERN COMMUNITY (Company limlted by guarantee and not havlng a share capftal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 OBJECTIVES AND ACTIVITIES - continued Night Cover Enhancem8nts Responding to the evolving needs of our companions, the communty has revtewed night cover aTTangements across all sites. We are implementing a waking night cover provision for all on-site companions. wtth the exc8ption of Tawa and Willow End, which are slightly off-site. This change is being implemented with the support of our main funder. Dorset County Council (DCC), and aims to create a more robusL proactiV8. and future-prwf srn of night supwrL Flnancial Update Finances presented another area of concern due to prolonged uncertainty surrounding our hourly rate negotiations with DCC. Fortunately. by August 2024, an agreement was reached. resulting in an increase in our hourly rate. This allowed us to implement a mid-year 5.oyo pay rise for dl staff working in the residential team-a token of our appreciatlon and a measure to remain competitive in a tight recruitinent markeL Addrtionally. the Trustee Board introduced an Investments Policy to optimis8 the chaiiiys financia] resources. Invesknents in gilts and bonds were made with the assistance of a reputed Financial Adviser to protect our reserves from inflation and to strengthen long-temi financial sustainabilty. Building and Infrastructure Projects Our community has been active with several significant building projects. including: Installation of new pdyiunnels for the land workshop and overall refurbishment of the area involved so to create a more suitable and safer working environment for our companions Total refurt)ishment of the temporary pottery building and art workshop Creation of a new land workshop shed Refurbishment of various office spaces In line with our Enmronmentsl Policy and commitinent to sustainabilty, also installed solar panels on the roof of one of our houses. demonstrating our ongoing efforts to improve energy efficiency. An environmental review was undertaken to update the maintenance plan, which will irffluence fuknre budgets. It was ad(novledged that health and safety must remain a central focus while managing expeGtations effectively. Craft Centre and New Workshop Spaces Our Craft Centre (Pottery and Art building) remains out of use. with no resolution yet reached with the relevant parties. Despite thls. all our VrkShopS are operating as before although in temporary acCommodatics. Y C Chan Centre The Trustee Board and management have reviewed and revised the plans for the new building proiecL We are moving forward with a more streamlined design that will include two larger workshop rooms and a communal social space. This new facility will be named the YC Chan Centre. in recognition of our donors. contributions. Each workshop will feature dedicatsd outdoor space, and the building design will refiect the aesthetic and values of the communrty. We are now in the final stage of the relevant Planning Authorisation process Page 7
THE LANTERN COMMUNITY (Company limtted by guarantee and not having a share capital) TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 ACHIEVEMENTS AND PERFORMANCE - continued Community Life and Celebrations Our social and cultural calendar remained full and vibrant. Highlights induded the Winter FayTe. which vrds combined wtth the Martinmas Festival-a magical occasion shared with families and friends in November 2024 while an opening cereMY of the new Land Workshop area was held on the 5th of July on the Parents Forum 2025. Cyber Security Enhancements To strengthen our cyber security, we have invested in new laptops and compuiers to ensure compliance with C>ber Essentiais. We are in the pn)cess of implementing multi-factor authentication for all system access. Once complete, we will aptAy f(Y official Cyber Essentials certification. HR and Tralnlng Staff recruitment and retention continued to be key challenges throughout the year. However. through the Skilled Worker Sponsorship r(xrte. we were able to SUCC&8sfully employ slx indivlduals from overseas. We are closely monitoring recent and ongoing developments in the Health and Social Care Workers Visa Route to ensure complianc8 and continued access to this recruitrnent pathvrfay. As part of our commitment to inclusive employment practices. we have signed up to the Disabilty Confident Stheme, demonstrating our dedication to supporting individuals with disabilities across a variety of roles within the communty. We have continued to delrver both mandatory and specialised training to our staff, ensuring they are equipped with the necessary skills. knovledge, and competencies to perfomi their roles effectively and confidently. To enhance operational efficiency, we have also invested in several softwar8 Systems to improv8 proc8SS8s lated to payroll, absence management. and staff training. These tools are helping us streamline administrative functions and support a rnore responsive and data4nformed HR function. This year has brought both challenges and growth, and we are proud of the resilience and unity shown by our communty. The steps taken ensure we are well-positioned to continue deliverfng on our mission in the years ahead. Page 8
THE LANTERN COMMUNITY (Company Ilmited by guarantee and not havlng a share capltal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 Plans forthe comlng year Ensure our care provision maintains a CQC rating of 'Good' as a minimum. We will continue with the current strategy of integrating the ageing companions and retired c(Fworkers in the communty. We will strive to meet the needs of our changing population. We will aim to meet the changing needs of people with dlverse ablllttes wl)o approach us. To do thls we will adapt some of our workshops for thos8 who may wish to hav8 a slower pace of life in their old age or ty something dIffent. We will fill the vacancies in residential and reach full capacity. We will continue to make sure all of our benefioaries live in accommodation that is fft for purpose and in good condition. We will endeavour to r8ach a resolution regarding the dispute aboLrt the Art and Pottery building. We aim to stsrt building a new creative art centre in the budget year 202&26 and complete it by the end of our 2026-27 budget spar. Folloving the completion of the creative art centre. we will complete the essential upgrading of the other premises as well as landscaping around the new building. Ensure staff are equipped to care for Companions with dementia. Improve staff and volunteer recruitment and retention. Invest in technology to improve our effectiveness and efficiency. Pursue qrovrth in income. bv increasinq: Donations. fundraising and legacies. Number of workshops and day placements. MEDIUM TERM PLANS We will persevere to yrt{ with our organisation values to maintain the ethos and Ihe fabric of an intentional community. . Develop a long-temi staff and volunteer recwitment and retention strategy and plan. to indude: Apprenticeships. Number and roles of Volunteers. Staff training and development. Develop a long-tenn plan for making our buildings and accommodation for the future.. to indude- Modemise Companion accommodation. Pottery and New Building. including space for increasing wDrkshops. Evaluate the potential for future acquisitDns. PAY POLICY Due to a national scarctty of Ca staff, and exp8Ctations of a significant incr8ase in the Thqte of inflation, and also as a sign of appreciation for their commitment and resilience during the difficult times, all our staff were awarded a significant pay increase of 10.0%, effective from April 1st 2024, and an additional 5.2 /0 effective from 1 st December 2024. PaEe 9
THE LANTERN COMMUNrrY {Company Ilmlled by guarantee and not having a sharo capital) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 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 Regisler is maintained. Indivtdual risks are reviewed by the appropriate committee and the results 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 suth systems and procedures. The two principal risk areas are: erational Risk Craft Centre.. As previously reported a number of building and design faults have been identified in one of the craft centre buildings (pottery and art). We are in a pre-action protocol with the architect, who also acted as the project administrator. as well as the company which carrted out the construction wrkS. We have appointed lawyers to represent us and have also appointed court approved Expert Witnesses to darify the problems wilh the building (Please sea not8s 12 and 13 in the not8S to these accounts). Another operational risk thal The Lantern Community needs to take into account in the coming years is the continuing negative impact of Brexit on the recruitment of volunteers. in particular on the numbers of ctrworkers. The Lantem cornmunity. in common with most Camphill Communities is very reliant on residential volunteers for cultural enrichmenulife sharing. A reduction in voluntary c(kVKIrf(ers. because of dtfficulties in obtsining vlsas. would mean losing a very important aspect of communty life. The Lantern Community is worklng with other communibes in creating an awar8n8ss and lobbying about the importanc8 of having co-workers in Camphill communities. Finance Risk The Finance Manager has the relevant qualifications and experience to maintain the professional approach in finans. The Lantem Communty investsd in a good compuierised finance system. Advanced Exchequer, which is kept up to date. Quarterly management accounts are produced for management and the Trustee Board. Page 10
THE LANTERN COMMUNrrY (Company limited by guarantee and not havlng a share capital) TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 FINANCIAL PERFORMANCE Total incoming resources on charitable actsvibes for the sear totalled £4,020.766 (2024: £3.725.873). Of this amount £2.929.841 (2024: £2.715,661), or 72.9% (2024.. 72.9Y.). related to care fees mostly paid for by local authorities. In parlicular, Dorset County Council contributed £1.931.818 (2024.. £1.919.753). or 48.0¥0 (2024: 51.50A). of total income from charitable activities. In addition, housing benefit of £653.611 {2024: £557,256). or 16.30/0 (2024: 15.0°A). of our total income from charitable activtties was received from East Dorset District Council on behalf of our companions and long term volunteers. It can seen that a signtficant proportion of incom8 comes from local govemment and that changes in government policy Could have a notsble effect on The Lantern Communitys financial situation. Relalions with both Dorset County Council and East Dorset District Council remain positive. The Board of Trustees of The Lantem Community continues to measure actual financial perfomiance against budgets at every meeting of the Board. PERFORMANCE CRITERIA- ExfERNAL QUALITY MEASURES There were Health & Safety audits by Worknest (fomierty knothn as Ellis Whittam) and fire risk assessments by Dorset Fire Protection. Th8 Lantem Community considers these external r8POrts and assessments to be helpful and is responsive to proposals or comments made. RESERVES POLICY The Trustees have contlnued to review the level of reserves held by th8 charity in line with the guidance set out by the Charity Commission. Sufficient reserves need to be available to cover unfores88able fluctuations in income and cash flow. The Trustees consider that the should be cover for at least approximately six months of expenditure. As at 31 March 2025 General Reserves stood at £2.487.313 (2024: £2,280.107). Of this £119,789 (2024." £80,483) represents non land and buildings tangible frxed assets. leaving free reserves of £2.367.524 (2024: £2.199,624). equivalent to 6.2 months of continuing operational expenditure (2024: 7.0 months). Please also see note 16. The purpose, movements and balances of all the restricted and designated funds are set out in Notes 15 and 16 respectively. The Propety Capttal Fund can only be realised on disposal of the property and settlement of the related loans. In the coming year the trustee5 may designate fijnds for short- and longer-tem propety maintenance and alterations. Page 11
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capltal) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2025 STATEMENT OF DIRECTORS. RESPONSIBILrriES The Trustees (who are also th8 directors of The Lantem Community for the purposes of company law) are responsible for preparing the financial staternents In accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires tha 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 stste of affairs of the charitable company and of its incoming resources and application of resources. including ts income and expenditure. for that period. In preparing these financial statements. Ihe Twstees are required to: - select suitable accounting policies and apply them consistenty, - observe the methods and principles in the Charities SORP: - make judgements and estimates that are reasonable and prudent. - state whether applicable UK Accounting Standards have been followed. subject to ary material departures disdosed and explained in the financial statements; and - prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable companys transactions and disclos8 with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statsments comply wtth the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT OF COMPLIANCE The Trustees believe they have complied wtth all currently prevailing la and regulations that apply to the charity and ts operations. AUDITORS So far as the Trustees are aware. there is no rdevant audtt irrfomiation (information needed by the CoMpanS auditors in connection with preparing their pOrt) of which the companls auditors are unaware. Each trustee has tsken all Ihe steps that ought to be taken as a trustee in order to make themselves aware of any relevant audit infonnation and to establish that the companWs auditors are avRre of that infonnats'on. The provision of auditing s8rvices was subjected lo open compekn'tion in 2021. A resolution to appoint Knlgm Goodhead, were select8d to succeed PKF Francis Clarke as the Lantem Communitys auditors. was approved by the charitys members in their Annual General Meeting which was held on October 2nd 2021. This report has been prepared in accordance wtth the Companies Act 2006, and complies with the chariws governIng0Curnent 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) {effectiV8 1 January 2024). The Strategic Report is also hereby approved. Approved by the Trustees and signed on their behalf by lan Humphries (Twstee).... 2z se•FWE4L Page 12
INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY OPINION We have audited the financlal statements of The Lantam Cornmunty (the 'charits1) for the year ended 31 March 2025, vthich comprise the Statement of Flnancial Activities, Balance Sheet and Statement of the Cash Flow3, induding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Stsndards, 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 Practtce). In our opinion the financial ststements: give a true and fair view of the state of the charitable compan5 affairs as at 31 March 2025 and of ts results for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accunting Practice: and have been prepared In accordance the requirements of the Companies Act 2006. This report is made solely to the charitable companls Trust8es, as a body. in accordance with Chapter 3 of Part 16 of th8 Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitys Trustees those matters we are requir8d to state to them in an auditorfs report and for no other purpose. To the fullest extent pemiitted 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 reporL or for the opinions we have formed. BASIS FOR OPINION We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibiifoes under those standards are further described in the Auditorfs responsibilitses for the audit of the financial statements section of our reporL 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 requirem8nts. 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, V have conduded that the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforned, we have not identified any materlal uncertainties relating to events or conditions tha( individually or collectively. may cast signfficant doubt on the Charity's ability to continu8 as a golng concem for a period of at least t¥velve months from when th8 original financial statements were authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concem are described in the relevant sections of this reporL Page 13
INDEPENDENT AUDtroRS' REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY Other information The Trustees are responsible ft)r the other infomiation. The other infomiation comprises the infonnation inctuded in the Trustees, annual report, other than the financial statements and our auditorf5 report thereon. Our opinion on the financial statements does not cover the other infonnation and. except to the extent otherwtse explicitEy stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements. our responsibility is to read the other infomation and. in doing so. consider whether the other information is materially inconsistent with the financial statements or our knoedge obtained in the audit or otherwise appears to be materially misstated. If we identify such matertal 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, Y conclude that there Is a material misststement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. OPINION ON OTHER MAThERS PRESCRIBED BY THE COMPANIESACT 2006 In our opinion. based on the work undertaken in the course of the audiL' the infomiation given in the Trustees. annual report for the financial year for which the financial statements are prepared is consistent with the financial statements: and The Trustees, annual report has been prepared in accordance with applicable legal requirements. MArrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knoedge and understanding of the company and ts environment obtsined in the course of the audit. we have not identifièd material misststements in the financial statements. We have nothing to report in respecl of the following matters where Ihe Companies Act 2006 requires us to report to you rf. in our opinion: adequate accounting records have not been kept or retums adequate for our audtt have not been 1Ved frorn branches not visited by us. or the financial statements are not in agreement wtth the accounting records and retums. or certain disclosures of Trustees, remuneration specffied by law are not made: or we have rt received all the information and explanations we require for our audlt. As explained more fvlly in the Statement of responsibiliti8s of Trustees set out on page 11. 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 intemal control as the Trustees detennine is necessary to enable the preparation of financiat 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 charitys abilty to continue as a going concem, disdosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Trustees etther intend to liquidate the chartty or to cease operations, or have no realistic altemative but to do so. We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder. Page 14
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE LANTERN COMMUNrrY RESPONSIBILITIES OF TRUSTEES As explained more fully in the report of the executive committee, the trustees are r8snSl le for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as they detemine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financAI ststements, the trustees are responsible for assessing the chaiitable companys abilty to continue as a going concem, dlsdosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the trustees either intend to liquidate the charilable company or to cease operations, or have no realislic alternative but to do so. AUDITOR'S RESPONSIBILrriES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assuran about whether the financial statements as a vthole are free from material misstatemenc whether due to fraud or eOr, and to issue an auditorfs 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 rf. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users tsken on the basis of these financial statements. TegularitIeS. including fraud, are instances of non-compliance wtth laws and regulations. We design proureS in line with our responsibilities. oullined above, to detect material mi5Statements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting iTregulartties. including fraud is detailed below. The engagement partner ensured Ihat the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non- compliance with applicable laws and regulations. We identified the laws and r8gulations applicable to the charitable company through discussions with trustees and other managernent and we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence. We assessed the susceptibilty of the charitable CoMpanS financial statements to material misstatement, induding obtaining an understanding of how fraud might occur. by making enquiries of management as to where they considered there vS susceptibility to fraud. their knowledge of actual. suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls. we perfomied anatyli(31 procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions and investigated the rationale behind significant or unusuai transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which induded. but were not limited to: Agreeing financial statement disclosures to underlying supporbng docUmentsti(,. Reading the minutes of meetings of those charged wtth govemance. and Enquiring of management as to actual and potential litigation and dairns. There are inh8rent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit Pr{dureS required to identfy non¢(p11ance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence. rf any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they May involve deliberate concealment or collusion. Page 15
INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE LANTERN COMMUNITY A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: httpsJlwww.frc.org.uklaudttorsresponsibilities. This description fomis part of our auditorfs reporL Knight Goodhead Limited is eligible for appoirrtment as auditor of the charitable company by virtue of its eligibility for appointment as audttor of a company under section 1212 of the Companies Act 2006. USE OF OUR REPORT This report is made solely to the charitable companys 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 charitys Trustees those matters we are required to state to them in an auditofs reFX)rt 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 tts Trustees as a body, for our audit work, for thls report, or for the opinions we have formed. Christopher Goodhead FCA (Senior Statutory Audttor) For and on behalf of Knight Goodhead Ltd, Chartered Accountants and Ststutory Auditor Knlght Goodhead Ltd 7 Boumemouth Rd, Chandlerfs Ford Eastleigh S053 3DA I O QCTt9f&> Date: 4*2025 Page 16
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025 (including Incorne and Expenditure Account) Unrestricted Restricted Funds Funds 2025 Total 2024 Total Notes Income from" Charitable actiNllties Investments Total income 4.020.766 98.317 4,119,083 4,020,766 147,360 4,168,126 3,725,873 124,822 3.869.489 49.043 49,043 Expenditure on: Raising funds Charitable activities Total expendlture 6.420 3.908.869 3.915.289 6,420 3,939,132 3,945.552 1,935 3.465,215 3.467,150 30.263 30.263 Net income before donation and legacy income Donations and legacies Net income after donation and legacy income Revaluation of properties Net movement in funds Reconciliatlon of funds: Revaluation reserve brought forward Transfer of funds Total funds brought forward Total funds carried fOard 203.794 439.884 643,678 48,275 691,953 18.780 222,574 439.884 662.458 48,275 710.733 402,339 18,794 421.133 (172,638) 229.701 15 17 18,780 18,780 17 15 18 2.755.143 164.272 8.942.442 12,553,810 2.755,143 2,927,781 {164.272) 1.743.627 10,686.069 1,598,135 14.151.945 10,283,730 13.441,212 18 All Income and expenditure derives from continuing activities. Page 17
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) BALANCE SHEET AS AT 31 MARCH 2025 Nole 2025 2024 Fixed assets Tangible assets Intangible assets 10.021.052 34.725 9,421,363 32,848 Current assets Stocks Debtors Cash at bank and in hand Investments 10 12 28,001 318,476 1.619.566 2.853.424 4.819,467 {646,559) 26,960 322,957 4.378,372 11 4.728.289 {515.289) Creditors: amounts falllng due wlthln one year Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year Net assets 13 4.172.908 14.228.685 (76.740) 14,151.945 4,213,000 13,667,209 225.997 13,441.212 14 Charity Funds Restricted Funds General funds Designated funds Revaluation reserve Total charity funds 15 16 16 17 18 1,598,135 2.487.314 7.263,078 2,803.418 14,151.945 1.743.627 2.280.107 6.662,335 2,755,143 13,441,212 The financial statements were approved and authorised for issue by the Board on atylr£8 Signed on behalf of the Board of Trustees by lan Humphries (frustee) The notes on pages 22 to 43 form part of these financial statements. Company registration number. 03T13749 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 2025 2025 2024 Note Cash flow from operatlng actfvities Net cash flow from operating activities 284,600 284.600 349.077 349,077 Cash flow from investing activities Payments to acquire tangible fixed assets Payments to acquire Flnancial investments Payments to acquire intangible fixed assets Receipts from sales of tangible fixed assets Interest received Net cash flow from investlng actlvltles (235.785) (2,804.000) (5.837) (103.095) 11 15,000 97,872 9,777 54,877 (2,990,745) Cash flow from financlng actlvltles Repayment of long tem loans Interest paid Net cash flow from flnanclng activities 14 (47.697) {4,964) (52.661) {263,209) (13.932) (277.141) Net Increase l (decrease) In cash and cash equivalents Cash and cash equivalents at 1 April 2024 Cash and cash equivalents at 31 March 2025 (2.758.806) 4.378,372 1,619,566 81,713 4,296.659 4.378,372 Cash and cash equivalents consists of: Cash at bank and in hand Cash and cash equivalents at 31 March 2025 1,619,566 1.619.566 4.378.372 4,378,372 Page 19
THE LANTERN COMMUNITY (Company limited by guarantee and not havlng a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (A) GENERAL INFORMATION AND BASIS OF PREPARATION The Lant8rn Communty is an incorporated charity in the United Kingdom. In the event of the chartty being wound up, the liabilty in respect of the guarantee is limit8d to £1 per member of the charty. The address of the registered office is given in the Gharity information on page 2 of these financial statements. The nature of the tharitys operations and principal activities are providing housing, care and support within a social and therapeutic community. The charlty constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accountlng and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance Yth the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014. the Financial Reporting Standard applFcable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Praclice as it applies from 1 January 2024. The financial statements are prepared on a going concem basis under the historical cost convention, modffied to indude certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rourKled 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 furtheran of the general objectives of the chaiity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purFoses. 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 impsed 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 financia] statem8nts. (C} INCOME RECOGNrrioN All incoming resources are included in the Statement of Financial Actsvities (SOFA) when the charity is legally entitled to the income after any perfonnance condÈtions have been met, the amount can be measured reliably and it is probable that the income viill be received. For donations to be recognised the charity will have been notified of the amounts aThJ the setuement date in writing. If there a condttions attached to the donation and this requires a level of perf0nr1an before entitlement can be obtained then inccKne is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the char5tv and it is probable that they wll be fulfilled. No amount is included in the financial ststements for volunteer time in line 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 2025 IC) INCOME RECOGNITION - continued 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 nottfied 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 SeICeS 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 provÉded. Income from govemment 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 VAII be recelved and the amount can be measured reliably. If entitlement Is not met then these amounts are deferred. Investment income is eamed through holding assets for investrnent purposes such as deposiks. It includes interest income which is recognised as the charitys right to recetve payment is established. (D) EXPENDITURE RECOGNITION All expenditure is accounted for on an accruals basis and has been classffied under headings that aggregate all costs related to the categ)ry. 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: Costs of raising funds includes publicity and adv8rtising costs incurred in seeking votuntary contributions. They do not include the costs of disseminating infonnation in support of the charitable activities; Expendtture on charitab18 activibes includes th8 costs of operations directed towards fulfilling the charitable objective: and Other expenditure represents those items not falling into the categories above. Irrecov8rable VAT is charged as an expense against the acbvity for thIch expendibJr8 arose. Support costs are those that assist the work of the chaiity but do not diredy represent charitable aclivities and include office costs. govemance costs, and administrative payroll costs. They are inCued direclly in support of expenditure on the objects of the chaiity 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 expendtiure on charitable activitias on a basis consistent with the use of the resources. Premises overheads have been allocated based on the localion where possible or based on area and other ovthads have been alICated on an activity level basis. The analysis of these costs are included in note 3. IE) GOVERNMENT GRANT INCOME A grant that becomes receivable as compensation for expenses already incurred will be reccMJnised in profit or loss in the same period in which the related expense És incurr8d. (F) TANGIBLE FIXED Assrrs Tangible fvAed assets. expt for land and buildings, are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impaimient losses. Cost includes costs direcdy attributable to making the asset capable of operating as intended. Land and buildings are stated at market value less accumulated impairment losses. 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 2025 (F) TANGIBLE FIXED ASSEt5- continued Depreciation is provided on all tangible fixed assets. except for land and buildings. at rates calculated to write off the cost. less estimated residual value, of each asset on a systematic basis over its expected usefvl lrfe as follows: Freehold land Nik see below Freehold buildings Nik see below Furnitur8 and Equipment 20% reducing balance Computer Equipment 33QA reducing balanc8 Motor vehicles 25¢A4 reducing bance The Lantern Community changed its accounting policy in connection with Land and buildings in its financial year 2022123. In previous financial statements an historical cost less depreciatlon model had been adopted. The effective date of the revaluation in these accounts was on April 1st 2022. A finn of Chartered Surveyors, authorised by the Royal Institution of Chartered Surveyors {RICS), valued the charstys properties located at our Flngwood campus on July 4th 2022. July 5th 2022 and August 17th 2024 and the fair values recorded on those dates were used in our 2022123 finanoal ststements. For subsequent yEars adjustrnents have been made to reflect property indices published by the Office of National Statistics. Our property on the Isle of Wight was not valued by a RICS approved surveyor however its fair value has been detenIned by using a combination of indi$ from HM Land Registy as well as cornparisons to actual sales of similar local properties. The Lantern Community will appoint RICS approved surveyors to carry out fomial valuations every five years vrith the next valuation expected to occur in our 2027128 financial year. In beeen these 5 yearfy fomal valuations we will adjust carrying values using property price indices available from HM Land Registry. (G) STOCK5 Stocks are stated at the lower of cost and estimated sdling price less costs to complete and sell. Cost indudes 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 fomiula. Provision is made for damaged, obsolete. slow-moving or otherwise imDaired stock where aDDfoDriate. (H) DEBTORS AND CREDITORS RECEIVABLE I PAYABLE WITHIN ONE YEAR Debtors and creditors with no stated interest rate and r1Vable or payable within one year are recorded at transaction price. Any losses arising from impainnent are recognised in expenditure. (11 LOANS AND BORROWINGS Loans and borrowing5 are inrlially recognised at the transaction price induding transaction costs. Subsequenty, they are measured at amortised cost using the effeclive interest rate mothod, less impaimient. If an arrangement constitutes a finance transaction li is rneasured at present value. (J) CONCESSIONARY LOANS Concessionary loans include those received from third parties which are interest free or below market interest rates and a 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 al cost as no interest is chargeable. (K) IMPAIRMENT Assats nol 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 carying 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 oufflow of economic benefits will be reqUId in settlement and the amount can be reliably estimated. Page 22
THE LANTERN COMMUNITY (Cornpany limited by guarantee and not having a share capital) (Company limited by guarantee and not hawng a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 (M) EMPLOYEE BENEFITS When employees have rendered service to the charity, short-tem employee beneffts to which the employees are enliued a 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. Contrb] utions are expensed as they become payable. (N) TAX The charity is an exempt charity wlthin the meaning of schedule 3 of the Charities Act 2011 and is c(Idered to pass the tests Set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore It meats the definition of a charitable company for UK corporation tax purposes. (O) GOING CONCERN The financial statsments have been prepared on a going concem basis as the Trustees believe that no material uncertainties exist. The Twstees have considered the18V81 of funds held and the expected level of income and expendilure for 12 months from authorising these financial statements. The budget8d income and axpenditure is sufficient wth the level of reserves for the charity to be able to continue as a going concem. 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 our 20221 financial sear, and the impact on the charis operations and finances in the short to medium temi. In the opinion of the TnL8tees, with its robust income stream as V11 as 6.2 months or £2.367.524 of free reserves and the constant monÈtoring and control of costs. the charity has sufflcient 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 concem basis. The Trustees have consid8r8d 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 SLrfficient with Ihe level of reserves held for the chaiity to be able to continue as a going concern. (P) INTANGIBLE ASSErs Intangible fixed assets are stated at cost less accumulated depreciation and accumulated impairnient losses. The estimated useful life is 10 years and amortisation is charged to the profit and loss account on a straight line basis. (Q) JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAIKrY The following judgements (apart from those involving estimates) have been made in the process of applytng the above accounting policies that have had th8 most significant effect on amounts recognised in the financial statements: The key assumptions conceming the fvture and other key sources of estimation UnrtaInty at the reporting date that have a signfftant risk of causing a material adjustment to the carryinq amounts of assets and liabilities rythin the nexi financial VEar include: The amounts set aside for designated funds to cover fuiure costs. (R) FINANCIAL INSTRUMENTS Current asset investments are investments which the charity holds for resale or perKling their sale and cash or cash equivalents with a maturity date of less than one year. Current asset investment are InallY measured at cost and subsequent changes in fair value are recognised through the Statement of Financial ActNity. Page 23
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capilal) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 2 INCOME Total 2024 Resldentlal Workshops Intomal saJ•s ellmlnated DONATIONS AND LEGACIES Donations, legacies and similar Incomlng resources CHARITABLE ACTIVITIES Fees and contributions- local authorities l other sources Rent and service charges Ineligible and mobility Shop l Café I bakery & otherworkshops sales Other income 439.884 439.884 18.794 2.343.758 607.097 328,020 586.083 2,929,841 607,097 328.020 142.818 12.990 4,020,766 2,715,881 514.726 308,001 147.989 39.496 3,725.873 220.968 1.560 808.611 178,150) (9,000) (87.150) 20.430 3.299,305 Totsl incomlng resources from charitable activities Reinvested Investment income (see nt)te 11) Realised and unrealised gains on investrnents (see note 11) Bank interest received 38.631 33.477 20.370 5,649 59,496 72.108 20,370 54,882 147,360 49,233 87.864 124,822 124,822 Total investment income TOTAL INCOME 3.827,053 868.107 87.150 4,608,010 3,869,489 TOTAL EXPENDITURE {see note 3) NET INCOME FOR THE YEAR (2.989.638) 837,415 (1,043,064) 174,957 87,150 (3,945,552) 662,458 (3.467,150) 402,339 Income from donations and legacies was £439,885 {2024 - £18,794) of which £337.230 (2024- £3.333) was attributsble to restrtcted funds (Note 15) and £102,655 (2024 - £15.460) was attributable to unrestricted funds (note 16). Page 24
THE LANTERN COMMUNrrY {Company limtted by guarantee and not having a share capttal) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 3 EXPENDITURE Residential Workshops Intomal salos eliminated Total 2025 Total 2024 RAISING FUNDS Fundralslng and pUblity CHARrrABLE ACTMTIES Employed staff costs CcFwork8r costs Premises costs Depreciation- owned assets- note 8 Amortisation of intangible assets- note 9 Office and administration Medical costs 7.901 19 (1,500) 6,420 1,935 2.089.161 632,050 7.500 190.288 5.762 652 16,904 2,721,211 2.265.788 105.370 435.152 21.688 3.667 137,680 3,778 13.597 213.719 153,363 38,274 34,164 2,922 (7.500) 267.9 19,918 3.307 111.273 4.439 11,370 282,077 458,197 25,680 3.959 128.177 4,439 11,370 217.057 158.352 42.557 17,724 2,774 Garden and estste Food. household and deaning Cost of sales Motor and travel expenses Legal and professional fees Bank charges Investment managerfs charges (see note 11) Loan interest Realised and unrealised losses on investrnents (see note 11) Sundry expenses Audit and accountsncy Trustee Board costs 8,527 162,955 {73,547) (4,603) 42.503 13.268 2,780 3.639 4.864 30.962 5,406 8,222 3.597 2,981,738 (6) 6,133 4.864 36.669 5,406 10.284 3.597 3.939.132 12,995 5.707 6.505 11,925 4.628 3,465,215 2,062 Tolal ro$our¢es expended on charltable actlvlties 1,043,044 (85,650) TOTAL EXPENDrruRE FOR THE YEAR Ise¢ note 2) 2,989,639 1.043.063 87.150 3.945.552 3,467,150 £30.263 (2024 - £30.000) of the above costs were attributable to restricted funds (Note 15). £3,915.289 (2024 - £3.437.150) of the above costs vftre attributable to unrestricted funds (Note 16). 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 2025 4 DEFERRED INCOME During the year paymants in advance of £71,543 (2024: £74,819) were received and have been treated as deferred incorne as they relate to the next financial year, and are included within other creditors. 5 EMPLOYED STAFF COSTS AND NUMBERS During the yoar, no Trustees were reimbursed expenses totslling £NIL (2024". Twstees, £NIL). No trustee recetved any remuneration in the current year or prior year. During the year Indemnlty insurance of £1,064 {2024: £1,064) VRS paid to cover the Trustees in the event of any misrepresentation of the organlsation. Employed staff costs were as follows." 2025 2024 Salaries and wages Social securty costs Pension costs 2.369.771 217.238 56.660 2.643.669 2,007,173 169.066 51.620 2,227,859 No employees earned mor8 than £60,000 p8r annum during the year under review (2024: Nil). The average weekly number of employees during the year was as follows: 2025 2024 No. Lantem Residential and Workshops 107 98 The employee benefits of key management personnel for the year ended 31 March 2025 was £404,285 (2024: £345,820). A list of key management personnel may be found on page 3 of this documenL 6 TAXATION The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 7 AUDITORS REMUNERATION 2025 2024 Fees payable to the charivs auditor for the audit of the charitys annual accounts 10,110 11.055 Fees payable to the charivs auditor for other services: 174 869 VAT consultancy services provided by the charitys auditor VAT consultancy costs are included in legal and professional fees in note 3. PaEe 26
THE LANTERN COMMUNITY {Company limtted by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 8 TANGIBLE FIXED ASSETS Freehold land & Assets under buildings construction Furniture & equipment Computer equipment Motor vehicles Total COST OR VALUATION At 1 April 2024 Additions in the year Revaluation to market value (see note 17) Disposals in the year At 31 March 2025 9,331,488 341.527 54.584 9,391 164,272 153,950 39.982 33,633 25.004 135,086 9,663,548 570,785 54,584 9.727,599 173,663 193,932 58,637 135,086 10,288.917 DEPRECIATION At 1 April 2024 Charge for the year Disposals in the y8ar At 31 March 2025 103.962 12,249 24,475 113,748 5,567 242,185 25,680 116.211 32,339 119,315 267,865 NET BOOK VALUE At 31 March 2025 9,727.599 173,663 77.721 26,298 15,771 10,021,052 At 31 March 2024 9.331.488 9.391 49.988 9.158 21.338 9,421,363 If land and buildings were measured at their historical cost the carrying amounts in these ac(x)unts would have been £7.411.312 (2024 - £7,069.785), being cost £7,411.312 (2024 - £7.069.785) and accumulated depreciation £NIL (2024- £NIL). The dosing balance of £173.663 in Assets under Construction relat8s entir8ly to costs incurred for the new YC Chan Creative Arts Centre. Please see associated restricted and unrestricted funds in notes 15 and 16 respectively. 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 2025 9 INTANGIBLE ASSETS 2025 2024 COST OR VALUATION At 1 April 2024 Additions in the year Revaluation to market value Disposals in the year At 31 March 2025 36,675 5,837 36.675 42,512 36,675 DEPRECIATION At 1 April 2024 Charge for the year Disposals in the year At 31 March 2025 3,828 3,959 161 3,667 7,787 3,828 NET BOOK VALUE At 31 March 2025 ¥725 The intangible asset relates to services purchased to configure and install a Cyber Essentials Certif Local Area Network. 10 STOCK As at 31 March 2025 stock was valued at £28,001 (2024: £26,960) and related to go(MJs for resale in the shop on the Ringwood estate. 11 INVESTMENTS TOTAL RESTRICTED UNRESTRICTED Amount invested Fund managerfs charges Re-invested Income Unrealised gain l (loss) Loss in disposal of investrnents Fair value as at 31 March 2025 2.804.000 (6.384) 72.108 (9.292) (7.007) 2,853,425 1.550,389 (4.250) 38.631 20.370 (5.707) 1.599.433 1,253.611 (2,134) 33.477 (29.682) {1,300) 1.253,992 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 2025 12 DEBTORS 2025 2024 Trade debt(Ys Other debtors Prepayments and accrued income 126,216 62.377 129.883 318.476 101.239 44,283 177.435 322,957 13 CREDrroRS: amounts falling due within one year 2025 2024 Bank loans (see note 14) Unsecured concessionary loan - see note 14 Trade creditors Other creditors Other taxation and social securty Accruals Deferred income 49.326 100.000 149.264 57,032 61,696 157.698 71.543 646.559 47,767 127,173 71.182 54.854 139.494 74,819 515,289 14 CREDITORS: amounts falling due after more than one year 2025 2024 Unsecured concessionary loan - see note 13 Bank loans too.000 125.997 225.997 76,740 76,740 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 2025 14 CREDITORS: amounts falling due after more than one year ¢onfd. An unsecured concessionary loan has been advanced to The Lantern Communty by the family trust of a beneficiary. This loan is for an indefinite temi, but can become repayable in certain events such as the beneficiary leaving the charity. In some arcumstances it can become repardble 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 2019, in which it stated that the family trust vrfould not require payment of this loan before 1 September 2025. In 2017 two bank loans of £450.000 each were negotiated. secured on Wilbw End Cottage, Silver Birches and Badger Cottage. One loan is fixed rate at 3.220/0 for a ten year term and the second had a variable rate of 2Yo above the Bank of England base rate for a ten year tenn. The chanty repaid to the bank the entire amount outstanding on the variable rate loan in the year to 31 March 2024. The bank loans are repayable by instalments as follows: 2025 2024 Within 1 year, 49.326 47.767 Beeen 1 and 2 years: Between 2 and 5 years,. Between 5 and 10 years. 50.938 25.802 49,329 76.668 76,740 125,997 Total bank loans 126,066 173,764 15 RESTRICTED FUNDS At 1 April 2024 Incomlng Resources Outgolng At 31 March 2025 Transfers Woodwork workshop YC Chan Craft Centre Support with gym running costs Hillcrest activities In memory of Jose Palau New pergolas For a new vehide Fundraising by a companion For a sensory garden Ukraine war Total reslricted funds 1.020 1.646.727 90,000 240 1.020 1,531,498 60,000 240 1,945 85 2.000 714 620 13 49,043 (164,272) {30.000) (263) 2.000 714 620 13 1,743,627 49,043 (30,263) {164.272) 1,598.135 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 2025 15 RESTRICTED FUNDS cont'd Woodwork Workshop Donations were received and fundraising was undertaken for the purpose of contributing to the costs of a canopy for the woodwork vK>rkshop. These fund5 have not yet been spenL YC Chan Craft Centre (fom7erty Lantern Hall) A large number of donations have been received and allocated to the project for a YC Chan Craft Centre at The Lantem Community in Rinwod. Support witr) gym running costs A donation was received to offset some of the operating costs of the new gym for a period of five years. Hillcrest activities A number of donations have been received with the instructton that they be used for aCtsbes in Hillcrest, one of the houses in the communty. In memory ofJose Palau A day services client named Jose Palau passed avray during the year under review and donations were subsequentty received. The intention is a physical memorial will be procured to preserve the memory of Jose Palau. New Pergolas New pergolas were constructed in the previous financial year and this was supported by a generous £10,000 donation from the T.H. Russell Charitable TrusL Ukraine war Donations were collected by a companion to help the cikn'zens of Ukraine. For a new v8hic19 This fund will be used to help the charity purchase new vehicles to replace old, expensive to maintain, vehicles. Fundraising by a companion A companion raised funds for a project which is personal to them. The charity is holding these funds on behalf of the companion. For a sensory garden The Charity intends to develop a sensory garden for the benefft of tts beneficiaries, ts employees and other stakeholders. Ukraine war Donations were collected by a companion to help the cÉtizens of Ukraine. Page 31
THE LANTERN COMMUN ITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 16 UNRESTRICTED FUNDS At 1 April 2024 Incoming Resources Outgolng Trdnsfers At 31 March 2025 DESIGNATED FUNDS: Motor Vehicle Sinking Fund Co-worker retirement Co-worker SOCAal fund YC Chan Craft Centre Long term maintenance Future Projects 12.981 12.981 23.404 27.956 117.967 90,000 118.996 391.304 6.871.774 7,263,078 23.404 32,956 117,967 80,000 96,036 350,363 6,311.971 6,662,334 5.000 (10,(K)O) 10.000 104.884 132,865 (81.924) (81.924) 559,803 477.879 (10,000) Propety capital fund Total designated funds 132.865 (10,000) General funds Total unrestricted funds Purposes of deslgnated funds Co-workerretirement fund This is a fund created to contribute towards meeting the retirement needs of the c(Fworkers. Co-worker social fund The co-worker social fund has been created to finance anticipated future experKlilure relating lo financial asSiStsn to cTrworkers. e.g. when they leave The Lant8m Community. 2.280,107 8,942,441 4.426,102 4,558,967 (3,905,289) 3,915,289 (313,606) 164,273.00 2.487.314 9,750,392 Bakeryproject fund Up until June 2016 donations frorn the second hand books scheme were allated to a fund to ¢trIbute to the costs of the planned Bakery project. This project includes major external and intemal works and improved access. YC Chan Craff Centre See also note 15 above for the YC Chan Craft Centre under restricted funds. Some donations have been received wthout restrtctN)ns and have been designated to fund this major project. Other general donations were allocated to this fund up until June 2019. Page 32
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 16 UNRESTRICTED FUNDS cont'd Long temi maintenance A prowsion 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 effectivdy and expeditiousty. Property capital fvnd Thls fund has been crealed to reflect the CaIng value of land & buildings held by the chanty. net of bank loans and property related loans outstanding at the balance sheet date. Motor Vehicle Sinking Fund This fund ha5 been created to enable the chaiity to purchase a motor vehide for approximately £40,000 every three years. 17 REVALUATION RESERVE 2025 2.755.143 54.582 (6,307) 2,803.418 2024 2,927.781 (204,262) 31,624 2 755 143 At 1 April 2024 Revaluation to market value - see note 8 Transferred to Statement of Financial Activibes for the year- Gurrenl year At 31 March 2025 18 ANALYSIS OF NET ASSETS BETWEEN FUNDS AS AT 31 MARCH 2025 Deslgnated funds Restrlcted funds General Total funds funds Tangible fixed assets Intangible fixed asset5 Net current assets Long temi liabilities NET ASSETS AS AT 31 MARCH 2025 9.901.262 119.790 10,021.052 34,725 34,725 2,332.799 4.172.908 (76.740) 2.487.314 14.151.945 1.598.135 241,974 (76.740) 10.066.496 1,598,135 Page 33
THE LANTERN COMMUNITY (Companv limited bv auarantee and not havina a share caDital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 18 ANALYSIS OF NET ASSETS BETWEEN FUNDS- continued AS AT 31 MARCH 2024 Designated funds Restricted funds General Total funds funds Tangible fixed a55ets Intangible fixed assets Net current assets Long temi liabilities NET ASSEfs AS AT 31 MARCH 2024 9,340,880 80.483 32.846 2.166.778 9.421,363 32.846 4.213.000 (225,997) 2,280.107 13,441.212 1.743,627 302,595 (225.997) 9.417.478 1,743,627 19 RELATED PARTIES The following transactlons and relationshlps with related parties are of nots: Three family members of M Verhoeven and I Veroeven, who are both Trustees. are eMploj by The Lantern Community and are remunerated at the sarne rate as all other employees who are employed in similar roles. LFZ Bord, trustee, is also The Lantem Communitys nominated trustee of The Camphill Benevolent Fund (CBF), Nthich makes disbursements to retired C0-vrkerS. Donations by Trustees to The Lantem Community in the year ended 31 March 2025 amounted to £993 (2024: £NIL). 20 DONATED SERVICES AND ASSETS In the year ended 31 Maroh 2025 there vS no income from donated services and a&8ets (2024: £NIL). 21 DEFINED CONTRIBUTION PENSION SCHEME The company operates a defined contribution pension scheme on behalf of Tts employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension commitrnent for th8 year under this scheme was £56.660 (2024: £51,588). Page 34
THE LANTERN COMMUNITY (Company limited by guarantee and not having a share capital) NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025 22 RECONCILIATION OF NEf INCOME TO NEf CASH FLOW FROM OPERATING ACTivrriES 2025 2024 Net income for year - note 2 Interest receivable Interest payable Depreciation and impairment of tangible fixed assets Above impairnient offset by reduction in Revaluation Reserve Impaimient of buildings in progress Gift of a tangible asset (Profit) I loss on disposal of langible fixed assets Gain on inveslments (Increase) I decrease in stock (Increase) I decreas8 in debtors Increase l (decrease) in creditors Net cash flow from operating activities 662.458 402.339 (54.882) 4.864 (24.942) 48,275 (124,822) 12,995 229.617 (172.638) 6,382 (335,000) (9,985) {49.424) (1,041) 4,481 29,811 284,600 (7,947) 27.020 {13,884) 349.077 23 OPERATING LEASES Future minimum lease payments per annum under nonoancellable operating leases as at 31 March 2025 2025 2024 Not later than one year Later than one year and not later than five years Greater than fwe years 15,755 62.851 6.703 85.310 9.012 40.568 49.580 Page 35