ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
,
LANTERN ARTS CENTRE
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDING 31 AUGUST 2022
A Company Limited by Guarantee
Company No. 04556232
Charity No. 1098680
ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
CONTENTS es semonnete
ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
1. INTRODUCTION
Report of the Trustees for the Year Ending 31%* August 2022
The Trustees of the Lantern Arts Centre (LAC) are pleased to present our annual report for the Year Ending 31* August 2022, including consolidated financial statements for the Charity. It meets the Companies Act requirements for a director’s report and financial accounts.
The financial statements comply with the Charity’s Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and the Statement of Recommended Practice — Accounting and Reporting by Charities (SORP 2015).
About the Lantern Arts Centre
Founded over twenty-five years ago, the Lantern Arts Centre is an established and well-resourced community arts centre run year-round by permanent staff and volunteers.
As a faith-based charity the Lantern welcomes everyone in Raynes Park and beyond to its wide-ranging activities. These include affordably ticketed regular community productions, a thriving youth theatre and children’s theatre club, dance, acting and singing classes, a community choir, film clubs, activities for toddlers and much more.
Our Supporters
We are very grateful to all those who support the Lantern Arts Centre.
Our financial supporters in this year were:
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e Lantern Angels — our regular givers
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e Lantern Arts Centre Community — one off donations
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® Merton Giving Renewal Fund - Grant
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e National Lottery Community Fund — Grant
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e Home Instead Charities
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
2. CHAIRMAN’S STATEMENT
Chairman’s Statement — Martin Welsh
The period from September 2021 to August 2022 has seen life return to a “new normal” following the COVID pandemic, and at the LAC we have been delighted to be able to offer a full range of activities once again to our local community. We couldn’t have done that without our fantastic, dedicated team of staff and volunteers, and all the hard work and hours of effort that they give us on a daily basis. Huge thanks go to LAC Artistic Director, Amy Phillips, and our Operations Manager, Steve Rees, who have both led us so effectively over the year.
We have seen some changes in our team this year. In March we welcomed Alice Hudson Sheaf to the newly created role of Marketing and Arts Centre Assistant, and it’s been wonderful to see her quickly settle in so well. Over the course of the year, we have seen three of our Trustees step down — Malcolm Mason, Dave King, and Stefanie Kha, who was also our treasurer. Our heartfelt thanks go to each of them for all their wisdom, hard work, and loyal support over many years. Two new Trustees were appointed, with William Ostrom and Steve Humphrys joining us, Steve taking on the role of Treasurer. | would like to thank all the Trustees once again for their help and support given so freely throughout the year.
| want to thank all those who support us financially. The loyal support of our regular givers, our Angels, continues to be a real blessing, especially with the cost of living so high at the moment. Special thanks go to those organisations that have given us grant funding in the year, and to all those involved in the application process. Everyone who has visited the LAC this year and given a one-off donation, all those who have bought a ticket or subscribed to one of our many activities, anyone who tapped the machine on the way home — your support is so important to us, and it is very gratefully received. By supporting us in this way you allow us to keep on offering what we do.
| also want to thank everybody who has committed their time to the LAC this year, in whatever role. Our amazing volunteers are a huge part of what makes this place so special. Thank you all so much for being part of our community — part of our Company.
We can look ahead with optimism and confidence to a full programme of activities and productions planned for the coming year. We hope to be able to reach out to an even wider group, and welcome in new folk to share with us the joy of creative expression in the Arts, something that is so important for our mental health.
We continue to be excited by the developing plans for the Lantern Centre Project where we are working closely in collaboration with our dear friends and colleagues at the Lantern Methodist Church.
Thank you for helping us to keep the Lantern shining!
Martin Welsh Chair of Trustees — Lantern Arts Centre
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
3. OPERATIONAL & ARTISTIC REPORTS
Operational Report — Stephen Rees
By the end of August 2022, we had seen a significant shift back towards the higher activity levels we would expect at the Lantern Arts Centre. in particularthe attendance in person of events and classes.
Whilst the restrictions surrounding the pandemic had eased, we still maintained many of the control measures and processes that had been introduced in light of Covid19. These included increased cleaning regimes, movement control around the building, room booking schedules allowing clear ‘space’ to avoid crowding during change overs, sanitising stations and the use of face masks. Some measures have become simply good practice that we will look to keep moving forwards.
Assisted by a grant from Merton Giving Recovery fund in association with The National Lottery, we were able to put ona large Christmas production in 2021 reaching just under 1000 audience members across 6 performances. Indeed, across all activities and events we sawa significant increase in attendance; around a 70% increase on the previous year. Whilst we were confident in our ability to resume a normal level of trade after the pandemic restrictions were lifted, this increase was a good indication of the resilience of the charity and the demand for the activities it offers the community.
Our donations reduced to a more typical level in 2021-2022, but continue to be significant. Without the financial grants and generous support we receive, delivering our extensive programme of events and activities would be far more challenging. We are extremely grateful to all those involved in supporting our work and helping us through such a difficult period and beyond.
As we returned to a more ‘normal’ operation, the need for focussed marketing and communications became very clear. Having lost our administrator role, which became redundant during the pandemic, we needed to recruit a new staff member in March 2022. Evolving and adapting to how people receive and process information from service providers and activity centres has become key, with our digital presence growing and the regularity and reach of our marketing improving.
We are mindful to learn lessons from the recent past and to use some of the processes and activities into the future. Necessity is the mother of invention and there are a range of measures that we took during the pandemic that are equally valid as we move forward. Keeping the people who use our centre safe is always the number one priority; managing movement, improving building signage, controlling access to the building, clearing communal areas to reduce overcrowding, are all areas that have been improved.
Recent upgrades to our AV equipment have had a great impact on what we can deliver both at the Arts Centre and in joint projects with the church. Our projector and large screen have benefitted the free screenings for our older/retired community and also the Lantern Methodist Church services. We are now looking to raise funds to upgrade our sound desk and equipment which is approximately 30 years old.
Looking ahead, financially the Lantern Arts Centre is in a good position. The collaboration with the Lantern Methodist Church is very strong with various joint projects now up and running. We are focussed particularly on the Lantern Building Project, which would involve working alongside the Lantern Methodist Church in the ~ development of the Raynes Park church building. This would cement a home for the Lantern Arts Centre in a building that is prepared for the future in terms of its infrastructure, layout and facilities.
It is still an exciting time for the creative contribution the Lantern Arts Centre makes to the community it serves.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
Artistic Report— Amy Phillips
In September 2021, 40 actors (plus an amazing backstage crew and band) came tumbling into the LAC with joy and gusto as we reopened our rehearsal space for the first Main House community show post pandemic - Treasure Island the Pantomime written by Ben Crocker. Before Treasure Island opened for a 6-show run in December, in November, we also enjoyed our full day Christmas Celebration in collaboration with the Lantern Methodist Church, where we showcased all our regular creative groups like Children’s Theatre Club and the Lantern Arts Choir.
After Treasure Island (a great success and well attended with several shows selling out), we produced a staged candle-lit reading of Christmas Carol by Charles Dickens, with music from the Lantern Arts Choir.
In February, in the Studio Theatre, we had a beautiful and moving evening called: Hope Smiles, a devised performance by a Lantern group (Let's Get Creative) that had formed online during the pandemic, again music was provided by the Lantern Arts Choir. It was also a very affordable show for our local community at £6 a ticket.
In the new year, we ran a term of First Act, our 10-week acting course for adults, while others joined the cast and crew for Ladies Day by Amanda Whittington, a funny and moving female-led comedy. After Ladies Day opened in April, our talented Lantern Youth Theatre performed an adaptation of the novel Les Miserables in our Main Auditorium. An incredible opportunity for our young company.
In May of 2022 we produced our most ambitious line-up yet for our Dessert Lounge fundraiser with a wealth of fantastic musicians performing in the main house, while our sold-out audience enjoyed delicious patisserie from top chef Martin Powell. A week later, LAC Patron and comedian Tim Vine brought his brilliant Night of Nonsense for two sold-out nights into the Studio Theatre.
Next up, we hosted the London premiere of You Choose based on the book by Nick Sharratt and Pippa Goodheart, produced by Nonsense Room productions to sell-out audiences.
After the Lantern Project Update Breakfast and Sumedha Shrivastava's (delightful and very well attended) Watercolour Exhibition and Workshop, we opened Noel Coward’s Hay Fever, a summer comedy with a cast and crew of 20. The show was very well received with some tremendous performances.
All our wonderful creative groups, also called ‘Lantern Lights’, managed to return after the pandemic (The Lantern Costume Store Silver Screen, Children’s Theatre Club and Youth Theatre, Lantern Bells, First Act, Lantern Arts Choir, Swing Dance, Once Upona Storytime and new this year in collaboration with the Lantern Methodist Church, the Lantern Play zone).
Overall, a busy and exciting year and a feeling of great joy to be back in person as we came out of the pandemic.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
4. PURPOSES & ACTIVITIES
As set out in the LAC Articles of Association updated in July 2013, the purposes of the Charity are to promote the advancement of the arts and culture for the benefit of the public, particularly but not exclusively within the Raynes Park community of Southwest London. Having a strong Christian ethos and working in a mutually beneficial partnership with the Lantern Methodist Church (formerly Raynes Park Methodist Church), the Charity seeks to include members of the local community of all ages and abilities. They participate as cast, crew and audience members in theatre, music, film, dance, exhibitions and other forms of artistic expression.
To achieve these objectives, the Charity’s activities include the following:
For Children & Young People
Children love stories and ‘Once Upona Storytime’ has becomea firm favourite for local children and their parents. Led by our Artistic Director Amy Phillips, up to twenty young children are welcomed each week in term time and participate in captivating stories beautifully read.
The Lantern Children’s Theatre Club has six age-tiered groups of around 100 participants for ages three to 19 years old. Usually meeting weekly during term time, classes are designed for all children to feel safe, get involved, have fun, grow in confidence and develop independence and life skills whilst tackling key topics. Each group works towards an end of term performance for friends and family, and school holiday projects are a regular activity.
The children proved very adept at moving online during the pandemic, enthusiastically taking part ina wide range of stimulating projects. A previous reduction in the number of participants proved temporary such that by September 2021 most of the classes were close to full. There is a focus needed on the youngest groups which have dropped in number in recent times.
A production highlight was their performance of an adaption of the novel Les Miserables which was staged in the Main Auditorium in April 2022. Performing to packed audiences, this was very memorable for both the cast and their families.
The Lantern Arts Centre’s fully inclusive policy means children with SEND and physical needs, or who are learning English, can take part. Families can also take advantage of the offer of bursaries, and this was especially welcomed due to the impact of Covid restrictions.
We also hosted the London premiere of You Choose based on the book by Nick Sharratt and Pippa Goodheart, produced by Nonsense Room productions to sell-out audiences.
We are currently planning to start a Youth Choir for children aged 13 to 16. These are planned to be vibrant and fun Saturday morning sessions covering a range of genres from favourite musicals to pop, rock and classical. Providing opportunities to perform at Lantern events, develop vocal technique and make new friends.
The outlook for the club in the year ahead is very promising with a diverse programme of activities planned. And as always, new participants will be welcomed to join by our enthusiastic and supportive team aided by community volunteers.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
For Lovers of Drama
The Lantern Arts Centre’s main house productions and studio performances are keenly anticipated by the local community. The audience for the year reported, including virtual and offline events increased significantly. Main House productions included Treasure Island, Ladies’ Day and Hay Fever.
In addition, we produced a staged candle-lit reading of Christmas Carol by Charles Dickens, with music from the Lantern Arts Choir. Then in the Studio Theatre, we had a beautiful and moving evening called: Hope Smiles, a devised performance by a Lantern group (Let's Get Creative) that had formed online during the pandemic, again music was provided by the Lantern Arts Choir. First Act, the weekly acting class for adults resumed in 2022 with a 10-week acting course.
The Free Film Club, Silver Screen, was one of the few activities able to be conducted at the Lantern Arts Centre during the pandemic. With restriction lifting during 2021-22 the group has grown to around 40 people per screening. This popular and much needed activity has grown in numbers through word of mouth and connectivity as our marketing has increased. Attendees continue to express their appreciation for the Club.
Our own long-standing Costume Store is run by a dedicated team of volunteers for main house productions and external hire. Usually relied on by many local primary and secondary schools, parents, local amateur and professional theatre groups and individuals, it reopened on a more restricted basis during the pandemic. Offering carefully curated items from a keenly priced collection of more than ten thousand pieces, the team offers expert advice and guidance and looks forward to fully reopening.
For Lovers of Music
The Lantern Community Choir, our own in-house choir, usually rehearses on a weekly basis and aims to give several performances each year. The choir has increased in numbers and has welcomed the return to singing in person — online was fun, but challenging! The choir is now establishing itself further with concerts being scheduled in once a term to ever increasing audiences.
The Lantern Handbell Group formed in 2017, is much loved by the players and audiences alike. This year has seen a return to rehearsing together, though initially distanced from each other. They performed in the Christmas Carol Concert with the Lantern Choir and were able to play in Guildford Cathedral in June 2022 along with other handbell groups.
We are currently planning to start a Lantern Youth Choir for children aged 13 to 16. These are planned to be vibrant and fun Saturday morning sessions covering a range of genres from favourite musicals to pop, rock and classical. Providing opportunities to perform at Lantern events, develop vocal technique and make new friends.
Music continues to grow and flourish at the Arts Centre. For example, Dessert Lounge showcases diverse musical ability. A Joy of Singing course ran in the autumn term with great feedback. This is in addition to our regular four-piece house band which played for Treasure Island. Moving forward it is intended to use this group to enhance musical performances such as choir concerts.
Use of acapella singing in some of the CTC productions again showcases our younger members' musical talents, and we look forward to seeing them taking part in future productions at the Arts Centre.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No, 04556232 Charity No. 1098680
For Lovers of Visual Art
Using the modest first floor foyer space, the LAC usually has an established programme of shows by local artists each lasting about two months. Exhibitions have included a range of artists using varying styles and media. Through this, the LAC provides an opportunity to exhibit work either as a solo or joint show. No upfront charge is made but the LAC takes a modest percentage of any sales. As well as providing artists with an affordable venue to exhibit, it also enriches the overall life of the LAC by celebrating the visual arts alongside performance arts with which the LAC is usually associated.
For Lovers of Dance
Swing Dance is a weekly dance class for adults hosted by two very experienced dancers teaching the fundamentals of the lively partnered dance which originated in 1920s in New York’s Harlem. Classes of up to 10 people learn authentic steps of Lindy Hop and Charleston.
For Visiting Groups using the Lantern Arts Centre
The Lantern Arts Centre has two studios normally in regular use by many groups. These include theatre companies, dance troupes, orchestras, rehearsing for shows based both in London and around the UK. In addition, regular classes are held including ballet, street dance, swing dance, flamenco, yoga, zumba and pilates. These bring a considerable number of people to the Lantern Arts Centre who then become involved in our other events and activities.
Our Volunteers
The heart of the Lantern Arts Centre is the community it serves. It is from the community that so many people come to support what we do.
Today, more than fifty volunteers from across Southwest London are making an irreplaceable difference. They generously commit their time and skills to help run our busy community arts centre, and clearly relish the challenges. Many are involved in our theatre productions on stage, or by supporting the choreography and direction, or for musical production. Then there’s their contribution to technical delivery, including stage management, set construction, costuming, props, lighting, and sound. While behind the scenes our volunteers provide essential day in, day out support for building maintenance, marketing, fund raising and disability access.
The Trustees and staff are immensely grateful to everyone who is part of what we do and each year welcome new volunteers to join us as we grow. They are an essential part of making the Lantern Arts Centre what it is today and for its future development.
Feedback from our Community
“The Lantern Arts Centre has earned a special place in the community. Lovely to have a local theatre with a variety of entertainment.”
“It's a family-friendly environment. Everyone is made to feel welcome.”
“I'm extremely glad | heard of the activities.”
“It's local, enterprising and a definite asset to the community.”
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31**August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
“The Lantern Arts Centre is one of my favourite places.”
“It is friendly and accessible. Price is affordable. Films feel like a community thing.”
“Although personally I’ve only been involved by attending performances, | know the effect it has had on friends and on children/youth - particularly your inclusivity.”
“It has provided a safe and fun place for my daughter to explore her acting talents and has always encouraged her to take part in events.”
“The Lantern Arts Centre is original in South London and an exception. It has the potential to do amazing things for people and expand the experience of all for their whole mind, body and spirit.”
“The Lantern Arts Centre is more than just a building. It is full of kind, enthusiastic and supportive people working together.”
“The Lantern Arts Centre is a very special place.”
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
5. STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trustees are responsible for governance, compliance, strategy, risk management and setting headline objectives. To this end, Trustees receive regular updates, including full reports on activities and financial information and monthly management accounts. Business planning and strategic plans are discussed and agreed by the Trustees at Board meetings. The Trustees convene at least 6 times per year.
The Management Reference Group is a supporting committee for the Board, consisting of four Trustees, that meets annually at least three times. The purpose of the Management Reference Group is to ensure the adequate management of staff on behalf of the Board, including monitoring performance, and to oversee Trustee recruitment. To this end the Management Reference Group acts as the line management function for employed staff.
All Trustees give their time voluntarily and receive no benefits from the Charity.
Trustees are appointed by members of the Charity on an annual basis. There is no maximum length of time that a Trustee can serve, subject to an annual rotation of Trustees. On appointment Trustees sign a register of interests, which is renewed annually.
When a Trustee retires from the Board a full recruitment process is overseen by the Management Reference Group, with appointments decided by the Board. Recruitment is undertaken on a skills basis, with skills gaps amongst existing Trustees identified and sought out within new Trustees. Trustees’ induction and ongoing involvement includes visits to the activities delivered by the Charity, engagement with company members, meetings with staff and volunteers and undertaking fundraising activities for the Charity.
To facilitate effective operations, the Trustees employ an Artistic Director and the services of an Operations Manager to whom they have delegated authority for the operational matters ofthe Charity. During the financial year ending 31 August, the Charity also employed an Office Administrator, a post made redundant in October 2020. Working together, the Artistic Director and Operations Manager have responsibility for the management of all other employees, contractors and volunteers to ensure that the Charity’s activities are delivered and upheld against the plans and priorities of the Board.
The Trustees retain and exercise their responsibility for setting pay for all employed posts and for the services of the Operations Manager. Pay is reviewed on an annual basis.
There are a number of risks and uncertainties that can impact on the performance of the Charity, some of which are beyond the control of Trustees.
The Trustees retain and exercise their responsibility to assess the major risks to which the Charity is exposed, in particular those related to its finances and operations and are satisfied that systems are in place to mitigate exposure to major risks.
Funds are raised principally through the Charity’s own classes, productions and lettings as well individual donors, known as Friends, and local business support. The Charity is indebted to its supporters and in particular its Angels (regular givers) for the financial stability they offer. The Charity is committed to acting with honesty, integrity, respect and transparency with its donors. Its policy is not to use the services of professional fundraisers nor solicit funds directly from the public. No complaints were received in the year in relation to our fundraising activities.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No, 04556232 Charity No. 1098680
Trustees / Members
Changes to the Board of Trustees that took place within the reporting period are identified below.
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|---|---|---|---|---|---|---|---|---|
|Martin|Welsh|(Chair)|appointed|as Trustee|14/05/2014|- Chairman|since|2019|
|Michael|Fuller (Secretary)|appointed|as Trustee|24/06/2009|- Secretary|since|2010|
|Alan|Brown|appointed|as Trustee 09/01/2008|
|Patricia|Rutter|appointed|as Trustee|18/02/2009|
|Kay Wingate|appointed|as Trustee 09/03/2013|
|Andrew|McBride|appointed|as Trustee|01/03/2018|
|Deacon|Dawn|Canham|appointed|as Trustee|01/03/2019|
|Gwen|Elliot|appointed|as Trustee|11/09/2019|
|Nina|Van|Gessel|appointed|as Trustee|11/09/2019|
|James|Hebbourn|appointed|as Trustee|11/09/2019|
|William|Ostrom|appointed|as Trustee|29/03/2022 — new appointment|
|David|King|appointed|as Trustee 01/10/2017|-|resigned|31/03/2022|
|Malcolm|Mason|appointed|as Trustee|11/09/2019|-|resigned|30/09/2021|
|Stefanie|Kha|appointed|as Trustee|11/10/2018|-|resigned|31/12/2021|
----- End of picture text -----
Patrons of the Lantern Arts Centre during the period were:
Fiona Castle, Tim Vine, Steve Price, Stephen Hammond, Michael Arthur MBE, Tim Boniface (Pastoral! Patron), John Davis (Honorary Patron)
Company Registration Number 4556232
Registered Charity Number
1098680
Registered Office
Tolverne Road, Raynes Park London, SW20 8RA
Secretary
Michael Fuller
Treasurer:
Stefanie Kha / Steve Humphrys
Bankers
Co-Operative Bank plc PO Box 101 1 Balloon Street Manchester M60 4EP
Accountants since 01/09/2022
Matthew Hunt
Digivolve Accountants Delta House Bridge Road Haywards Heath RH16 1UA
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
Public Benefit
Asa registered charity, the Lantern Arts Centre Trustees give close regard to their obligations to report the public benefit of its charitable purposes as defined by the Charities Act 2011. Our public benefit determines what it means for the LAC to be a charity, providing focus for the Charity’s objectives.
How the LAC serves the community is summarised throughout the report. Measuring the difference (impact) that the Charity makes is a focus for the future. In summary of the Charity’s purpose, the LAC:
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e Carefully consider accessibility options for those on low incomes whether attending classes, events or productions
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e Provide a wide range of opportunities for all age ranges to take part in arts activities and to explore their creative powers
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e Develop young people in direction, creative and performance skills to foster their ambitions to progress to further education or employment
Related Parties
Since its inception the LAC has had a close relationship with the Lantern Methodist Church (previously Raynes Park Methodist Church) from which it was founded. The church views the Arts Centre as an integral part of its outreach to the local community and at present three of the LAC Trustees are members of this church with two others in regular attendance.
The premises that the LAC occupies, form part of the Lantern Centre (owned by the Lantern Methodist Church). The parties occupying the Lantern Centre are the Lantern Methodist Church (LMC), Lantern Coffee House (LCH), Lantern Arts Centre (LAC) and Lantern Costume Store (LCS).
The LAC occupies its principal space under license to the church with the facility to use the main church area for large productions three times a year.
Internal Controls and Risk Management
The Trustees have responsibility for ensuring that the Charity has in place an appropriate system of controls, financial or otherwise, to provide reasonable assurance that the Charity is operating effectively and in line with Charity Commission guidelines.
The systems of financial control were continually reviewed and improved where necessary during the year to provide reasonable assurance against material misstatement or loss.
An annual planning and budgeting process is in place and the Charity is developing a risk management plan, which will be regularly reviewed throughout the year. This identifies the most significant risks to the Charity, orders them by likelihood of occurrence and their impact, and indicates what action is in hand or is necessary to manage the risk. These include key areas such as Safeguarding, Health and Safety, Fire Safety and Data Protection.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
6. OBJECTIVES
The Trustees have agreed the following objectives.
Objective 1:
Maintain a high-quality programme by providing a community performance venue for the purposes of local artistic expression and skill development. This objective will be met by:
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¢ Providing opportunities for the local community to take part in, in order to explore their own creativity and develop, learn and enhance skills related to all forms of art.
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e Actively seeking out professional artists to perform or exhibit their work.
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e Presenting and performing work which explores culturally relevant issues alongside family-friendly activities, events, and performances.
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e Diversifying and increasing the breadth of our offer across the artistic spectrum with a focus on literature, art, music, dance, and comedy. This also includes expanding our digital and online offer.
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e Nurturing talent within our local community by offering opportunities to amateur performers and also a range of local artists.
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¢ Widening our team of directors and technical crew in order to become more sustainable, increase our income and enhance our ability to support more regular programming across a diverse range of culturally expressive performance and for income revenue.
Objective 2:
Deliver a programme of accessible events and activities which reduce isolation and improve wellbeing in young people and adults in Raynes Park and the surrounding community. This objective will be met by:
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e A programme which provides hands on, workshop-based opportunities for people at all skill levels to explore their own creativity in a safe environment.
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e Offering an inclusive programme which pays particular attention to, and addresses the needs of, minority and disempowered groups.
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e Supporting, and working in partnership with, grass roots community initiatives which aim to improve the lives of people in the local area.
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e Developing and promoting our approach to inclusion, to ensure that all of our events and activities are accessible to people with a range of needs.
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e Using arts engagement to improve the quality of life through arts engagement for those who would not normally be able to access the arts. This involves planning ahead in order to secure funding in time to offer subsidised places.
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e Increasing our offer to young people by ensuring that activities are targeted and relevant.
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e Ensuring financial accessibility across all of our programme so that access to the arts is not prohibited due to an individual’s financial status.
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e Strengthening our long-term partnership with the Lantern Methodist Church through active collaboration in order to provide holistic pastoral support and to celebrate our rich Christian heritage.
Objective 3:
Safeguard the Lantern Arts Centre so that the Charity can continue to serve the local community and meets its obligations of public benefit into the future. This objective will be met by:
- e Developing a 3 to 5-year strategy, alongside a robust risk register, in order to mitigate as far as possible against risks which will impact on the sustainability of the LAC.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
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e Diversifying our income through increasing our regular donors, our lettings provision and targeting applications for grant funding in line with the Charities objectives.
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e Building up and maintaining the Charity's reserves at a robust level and investing in our technical and office infrastructure
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e Securing a leasehold tenure from the Lantern Methodist Church on the core premises required by the LAC to undertake its regular activities.
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e Developing our online and marketing strategy in order to increase our income.
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e Building our volunteer base, seekingto draw in skills particularly in the areas of marketing and technical expertise.
7. FINANCIAL REVIEW
Overview
The Charity's income for the year was £134,700 (2021: £106,167) against expenditure of £125,036 (2021: £86,636) leading to a surplus of £9,664 (2021: £19,531).
In a typical year, the LAC generates the majority of its income through donations and charitable activities, such as its productions and classes. However, the LAC gratefully received additional income from the Merton Giving Recovery Fund, National Lottery Community Fund, Home Instead Charities and generous donations from its regular givers (Angels) and supporters.
Expenditure increased by £38,400 compared to the previous year in line with increased activity, as the centre started to reopen more fully.
The Trustees continue to closely monitor the performance of the Charity's activities. The Trustees proactively seek to develop a programme of activities that ensures the LAC continues to be accessible to wide audiences on a range of mediums throughout these difficult times.
Reserves Policy
The Trustees are committed to further stabilise the financial future of the LAC, particularly in these uncertain times. The purpose of the reserves policy is to mitigate against any risk to ongoing activities, which may be caused by an unforeseen increase in expenditure, incoming funds falling short of expectations or a temporary cash shortage due to the periodical nature of the LAC's activities.
The Trustees undertake an annual risk assessment to determine the level of reserves that need to be maintained. Reserves include restricted and unrestricted funds. Only the unrestricted funds can be used at the discretion of the Trustees, i.e. to address the above risks. The restricted funds may only be used for their specific purpose. Total fund balances carried forward are £63,871, made up of £0 of restricted funds and £63,871 of unrestricted funds.
It is the policy of the Trustees to maintain at least 3 months operating costs as unrestricted reserves to meet immediate commitments and to enable a timely reaction to any downturn in activities. The Trustees consider the level of reserves held at Year End to be reasonable.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
8. STATEMENT OF TRUSTEES' RESPONSIBILITIES
Company law requires the Trustees to prepare financial statements for each financial year. The financial statements are required by law to give a true and fair view of the state of affairs of the Charity at the end of the financial year and of its surplus or deficit for that period. In preparing the financial statements the trustees are required to:
-
Select suitable accounting policies and then apply them consistently
-
© Observe methods and principles in the Charities SORP ¢ Make sound judgement and estimates that are reasonable and prudent
-
e State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
-
e Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity wiil continue in operation
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. These financial statements have been prepared in accordance with current statutory requirements and requirements of the Charities Commission Statement of Recommended Practice (SORP 2015).
Audit
As noted on the Trustees’ statement on the Balance Sheet, the trustees have taken advantage of the exemption from audit applicable to the Charity and these accounts have not been audited. The Trustees' Report has been prepared in accordance with the special provision of Part 1S of the Companies Act 2006 relating to small entities.
Approved by the Trustees following the meeting on 11/05/2023 and signed on their behalf by:
Ma {7 A CU “Martin Welsh Chair of Trustees Lantern Arts Centre
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
9. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31" AUGUST 2022
|st‘WT
~CdéC(C~CdsUnrestricted [Restricted [2022 [2021 |
ote
funds |Funds |Total__| Total|
|---|
|[IncomingResources
|
|
IncomingResourcesfromgeneratedfunds |
|
|
|||
|Voluntaryincome:
| |
Grantsand donations
/3.|19,069
26,574 |42,177
}Otherincome
|
Services toLanternCentre
Ppjo
Incoming
Resources
from_
charitable|
|activities
_
Operation oftheatreand artscentre
108,117
(0~—sX|: 108,117|63,963
[Investmentincome
|
|
|
Bankinterest
ee |
es
|
eee
TotalIncomingResources
_ 127,195
7,505
134,700 |106,167
Resources Expended
a
| ee
|| ee
eee
Costsofgeneratingfunds:
a
eee
ee
ee ee
Fundraising costsofgrantsanddonations
3,141
‘Oo ~—F———S4S+'23,4. | 3,109
Charitable activities
a a
ee
ee
ee
Operation oftheatreand artscentre
111,745
10,150
121,895 | 83,527
TotalResourcesExpended
| | 114,886
10,150
125,036 |86,636
TransferBetween Funds
Po
NetMovementInFunds
a
es |
ee
ee ee
NetIncoming/(Outgoing) Resources
|__| 12,309
|(2,645)| 9,664
| 19,531
Totalfunds broughtforwardat1September| | 51,562
54,207
34,676
2021
|Restatementofreserves
|
Total funds carried forward at 31 August|
|2022
63,871
63,871|54,207|
The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
BALANCE SHEET AT 31°" AUGUST 2022
==> picture [457 x 202] intentionally omitted <==
----- Start of picture text -----
Other debtors ae a re |
Cash at bank and in hand |__| 63,264] = 52,865 |
Liabilities a a ee ee
Creditors falling due within one year 8 |165 | [1627 | ~~ |
Net Current Assets | |sid 63,871 | 54,207
Total Assets Less Current Liabilities nm 63,871 || 54,207
Accumulated Funds SS ee ee ee
UnrestrictedRestricted funds Eea ee
funds 63,871| (51562 | |
Total charity funds req | 63,871 | 54,207
----- End of picture text -----
Audit Exemption
For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.
No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
Approved by the Trustees following the meeting on 11/05/2023 and signed on their behalf by:
==> picture [105 x 57] intentionally omitted <==
----- Start of picture text -----
VA
{if
f 4 F
ALIA :
----- End of picture text -----
M Welsh Chairman of Trustees
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
NOTES TO THE ACCOUNTS FOR YEAR ENDED 31st AUGUST 2022
- Accounting Policies
{a) Accounting basis and standards
The financial statements are prepared under the historical cost convention and 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 (FRS102)-Charities (SORP 2015) and the Companies Act 2006. The principal accounting policies adopted in the preparation of the financial statements are set out below.
(b) Going Concern
The Trustees consider that the charity has adequate resources to continue in operational existence for the foreseeable future. The level of reserves held at year end is sufficient to maintain basic office expenditures for a period of 6 —9 months. Ongoing and continuous contingency planning and risk management mean the LAC is well prepared to deal with adversities. The LAC receives a strong level of support from its "Angels" who donate ona regular basis as well as from its wider company who volunteer much of their time to support the activities. In addition, the Trustees have formed a new Fundraising subcommittee to work on further diversifying the LAC's income base. Accordingly, the financial statements have been prepared on a going concern basis.
(c) Incoming Resources
Voluntary income including donations, gifts and legacies and grants that provide core funding are of a general nature and are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Such income is only deferred when:
The donor specifies that the grant or donation must only be used in future accounting periods; or the donor has imposed conditions which must be met before the charity has unconditional entitlement.
Income from commercial trading activities is recognised as earned (as the related goods and services are provided). Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned (as the related goods or services are provided).
Grant income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Income is deferred when; Admission fees or performance related grants are received in advance of the performances or events to which they relate.
(d) Resources expended
Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied. Other grant payments are recognised when a constructive obligation arises that result in the payment being unavoidable.
Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable activities include expenditure associated with the staging of
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
concerts, stage production, art exhibitions and educational programmes and include both the direct costs and support costs relating to these activities.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
(e) Irrecoverable VAT
All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
(f) Fund accounting
Funds held by the charity are either: -
Unrestricted General Funds - This can be used in accordance with the charitable objects at the discretion of the trustees.
Restricted Funds- which may only be used for particular restricted purposes within the objects of the charity.
Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
(g) Debtors
Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
(h) Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments.
(i) Creditors
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount can be measured or estimated reliably.
2. Constitution
The company is limited by guarantee and does not have a share capital. Every member of the company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member, for the payment of the debts and liabilities contracted before he or she ceased to be a member, such amount as may be required, not exceeding E10
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
3. Voluntary Income
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----- Start of picture text -----
|||||||
|---|---|---|---|---|---|
|||Unrestricted|||Restricted|
|7,505|11,107|
|15,467|OC|15,467|
|Gift Aid|OO|
|Fundraising|Activities|[OO|
|Prior Year Comparative|(2021)|
|(si|Unvestricted|———=||Restricted|
||Grants|||15,531|16315|||21,846|
|20,331|Ce|
|io|
|Gift Aid|fo|io|~*d|
----- End of picture text -----
4. Incoming resources from charitable activities
==> picture [363 x 106] intentionally omitted <==
----- Start of picture text -----
||||||
|---|---|---|---|---|
|ee|
|44,272|[OCS «84,|272|
|33,492|oC|333,492|
|Lettings|21,673|Oo|21,673|
|Other|||8,680|oC|8,680|
----- End of picture text -----
Prior Year Comparative (2021)
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----- Start of picture text -----
|||||
|---|---|---|---|
|Unrestricted|
|[Restricted|Ss Total~SCS|
|||
|eS|Fundsee ——SSSd|| SeFunds,||—S—=di02eee|
|34,432|jo|[F«]|[84,4322]|
|12,971|foSS~i,|VA|
|«3,219|Oo|
|Other|13,341|Oo_~+| sis13,3441|
----- End of picture text -----
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No, 04556232 Charity No. 1098680
5. Analysis of expenditure on costs of generating funds
| The charityallocates 5% ofsupport costs to generatefunds | funds in linewith actualtime spentonthis activity. | funds in linewith actualtime spentonthis activity. |
|---|---|---|
| ActivityorProgramme | Activities | Support Costs |
| Undertaken | 2022 | |
| Directly | ||
| [Fundraising = |
O | 81 |
| PriorYearComparative (2021) | ||
| ActivityorProgramme | Activities | Support Costs |
| Undertaken | 2021 | |
| Directl | ||
| - a Fe 0 [Fundraising = |
O Cd3,209 3,109 |
6. Analysis of expenditure on charitable activities
The charity allocates its support costs between the three activities undertaken as shown in the table below. Support costs are allocated on a basis consistent with the use of resources.
|ActivityorProgramme| Activities|SupportCosts|Total|
|---|---|---|
|Undertaken||2022|
|Directly|||
|[Classes
=| 18,378
|Productions
|25,530
Lettings
17,043
other
SS~«*di,286
[Total =
02,212||17,631
24,492
16,350
1,210
59,683|36,009
50,022
33,393
2,471
(121895|
|PriorYearComparative (2021)|||
|ActivityorProgramme| Activities|Support Costs|Total|
|Undertaken||2021|
|Directly|||
|14,105|34,061|48,166|
|3,828|9,244|13,072|
|Lettings
5,670
Other
S77
24,460|13,692
2,070
59,067|19,363
2,927
835270|
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31**August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
7. Analysis of Support Costs
| __—t—~—SdotaS”~<“—~~~~~sdrTC SSSC‘“‘“S~~*™ |
|---|
| 18,515 15,375 Salaries SSSS~«d 24505 SSSS=«diCSD Advertising &Promotions S87 |
| Office Costs 8,284 12,078 |
| Printing, Postage&Stationery |
| AccountancyFees 1,464 |
| Professional Fees a + Bank Charges 2,507 2,110 |
| fInsurance isd CentreCosts 2,773 (2663 sd SundayExpenses OO |
| ps2824 62,176 |
During the year, no Trustee received remuneration for their services as Trustee (2021-£Nil) However, A. McBride was paid £Nil for Tech Services provided to the Lantern Arts Centre to support its activities (2021- £830). During the year, no Trustees received any benefits in kind (2021-£Nil). During the year, no Trustees received any expenses. (2021-£Nil).
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----- Start of picture text -----
8. Creditors
tote
tote
Trade Creditors Oo 455
Accruals
9. Support Staff Staff
ota
—~— otss st—~—~S™Y
Wages and Salaries 23,764 22,057
|PensionCostsSocial Security AMOa6BS
The average monthly number of employees during the year was:
----- End of picture text -----
- Support Staff Staff
During the year, no employee was paid a salary above £60,000 in 2022 (2021-ENil). Key management personnel comprise of the Trustees. No remuneration was paid to the Trustees.
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ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
10. Related Parties
No related party transactions have taken place during the year.
11. Analysis of Charitable Funds
| Analysis ofunrestricted fund movements | Analysis ofunrestricted fund movements | Analysis ofunrestricted fund movements | Analysis ofunrestricted fund movements | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Balance | at | Incoming | Resources | (to)/from | Fund | at | |||
| September | resources | expended | Reserves | August | |||||
| 2021 | funds | 2022 | |||||||
| GeneralFund | 51,562 | 127,195 | 114,886 | 0 | 63,871 | ||||
| Analysis of restricted fund movements | |||||||||
| Balance | at | Incoming | Resources | (to)/from | Fund | at | |||
| September | resources | expended | Reserves | August | |||||
| a Performance |
2021 (Saeedfe 2,375 |
funds - 2022 c-Fes |
2,375 |
||||||
| Grant | |||||||||
| 2,645 | 7,505 7,505 |
7,775 10,150 |
loFCfC CS a |
Restricted funds represent grants or donations given to perform or support the expenditure in specific productions or work in the theatrical field.
22|Page
x
ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDING 31*'August 2022 Company Limited by Guarantee Company No. 04556232 Charity No. 1098680
10. INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES OF THE LANTERN ARTS CENTRE
| report on the accounts of the company for the year ended 31 August 2022, which are set out on pages 15 to 22.
Respective responsibilities of trustees and examiner
The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 145 of the Charities Act 2011 (the 2011Act} and that an independent examination is needed.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:
examine the accounts under section 145 of the 2011 Act; to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) ofthe 2011 Act; and to state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view' and the report is limited to those matters set out in the statement below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
- which gives me reasonable cause to believe that in any material respect the requirements: e to keep accounting records in accordance with section 386 of the Companies Act 2006, and e to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities
have not been met; or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
==> picture [34 x 15] intentionally omitted <==
----- Start of picture text -----
VIN
----- End of picture text -----
Matthew Hunt (AAT) Digivolve Accountants Delta House Haywards Heath West Sussex RH16 1UA
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