LUMOS20 Every Child Deserves a Family 20 Years of Making it Happen Trustees, Annual Report & Financial Statements Lumos Foundatio 24 (A Charitable Company Limited For the year ended 31" Dec ,Gu-arantee):* ber 2024 Table of Contents Legal and Admlnlstratlve Informatlon Trustees, Annual Report and Strateglc Report Vision, Mission &Values Activities undertaken throughout 2024 Looking Ahead.. Our Vision for 2025 Principal Risks Financial Review 14 Structure, Governance and Management Statement of Trustees, Responsibllltles 20 Independent Audltor's Report 21 Consolidated Statement of Flnancial Activltles 25 Consolldated Balance Sheet 26 Charlty Balance Sheet 27 Consolidated Statement of Cash Flows 28 Notes to the Financial Statements 30 Lumos Foundation | Trustees, Annual Report & Financial Statements for the year ended December 312024 Legal and Administrative Information Founder and Life President J.K. Rowling Trustees, Lumos Foundation {UKI Carol Copland, Chair of Trustees {resigned 19 January 2025) Kenneth Towle, Chair ofTrustees (appointed 19 January 2025) Nitin Pasricha, Treasurer Billy dimichele (resigned 21 January 2025) Jimmy Paul Iresigned 17 July 20241 Neena Gill, CBE Dr. Doreen Mulenga Usman Ali Neal Gandhi Rosanna Burcheri (appointed 11 February 2025} Elizabeth Lule (appointed 11 February 20251 Sophie Bridge (appointed 17 July 20251 Keith Schilling (appointed 26 June 20251 Zahed Kamathia (appointed on 5 September 20251 Chief Executive Officer, Lumos Foundation (UK) P. McDermott (resigned 12 November 2024} Howard Taylor (appointed 30 October 2024) Company Secretary, Lumos Foundatlon (UK) Chris Rossiter (resigned 22 February 2024) Jessica Walsh lappointed 22 September 20251 Registered Office and Principal Address: Lumos Foundation, 3-7 Temple Avenue, London, EC4Y ODA Auditor (UK) Saffery LLP, 71 Queen Victoria Street, London EC4V 4BE, UK Bankers (UK) HSBC Bank plc, The Peak, 333 Vauxhall Bridge Road, Victoria, London SWIV 1 EJ, UK Sollcltors IUKI Farrer & Co LLP, 66 Lincoln's Inn Fields, London WC2A 3LH, UK Website More information about the foundation can be found at www.wearelumos.org. Lumos Foundation | Trustees, Aiinual Report & Financial Statements for the year ended December 312024 Trustees'Annual Report and Strategic Report Vision, Misslon &Values Lumos exists to light a path to a brighter future for children. We're committed to ending the institutionalisation of children, so every child can enjoy the right to grow up in a safe and loving family where they can thrive. Named after the light-giving spell in Harry Potter, Lumos was founded by author J.K. Rowling in 2005. Lumos works to transform the lives of disadvantaged children by facilitating the end of institutional care for good. It does this in two ways: at a policy level to accelerate and improve the quality of reform in health, education and social protection services and at a practical level working with providers of children's services to demonstrate the value of family-based care, Vision: All children grow up in safe and loving families within supported communities. Mission:To realise every child's right to a family by transforming caie systems around the world. Values; Collaboration, excellence, respect, care and passionate. In 2024, Lumos made a significant impact on the lives of children in institutions and those at risk. All the targets in its programmatic work were exceeded. Lumos was highly successful in implementing all the projects we undertook. By the end of the year, all projects were on track. Each of our country programmes is at a very different stage in the journey to end the institutionalisation of children and the prevention of family separation, We are tailoring our contribution in each country demonstrating the huge repertoire of our expertise ranging for example, from the model of transformation of individual institutional care providers in Colombia, to the establishment of Early Child hood Intervention Units for children with disabil ities in Moldova, to the comprehensive models of regional childcare reform in Kenya and responding to the context of conflict in Ukraine. 2024 marked the beginning of the 2024-2027 strategy. The strategy has given us a very clear focu5 and ambition for the next fouryears. Our individual country, advocacyand thematic strategies are all aligned to our common goals. We also drafted ourTheory of Change for childcare and child protection reforms forchildren to thrive in families. 2024 was a year of significant change and consolidation for Lumos. It was a challenging period. The organisation emerged from 2024 with a structure that better reflects the central role that programmes and advocacy hold, as seen in the relative balance of resource tiSting towards our country programmes. Lumos also ended the period better prepared to adjust to and absorb external shocks such as the dramatic cuts in international development funding occurring in early 2025. Our in-country programmes have small core teams with the agility to grow to implement funded projects, and the two more consolidated programmes.. Moldova and Ukraine, obtain most oftheir funding from restricted funding. Liimos FoLindalion | Trustees, Ai)nual Report & Financial Statements for the year ended Deceinber 312024 In 2024, programming continued to focus on strengthening national care reform systems and enhancing child and youth participation and advocacy.Working on keythematic areas ofviolence against children, disability and inclusive education have expanded the reach of the care reform movement beyond the limits of sector-specific silos and created 3 foothold for our work in these related sectors in 2025. Collaborating closely with local public authorities, partner NGOS. and other networks, has enabled us again to suypass our planned targets and achieve significant results. Strateglc objectlves for Strategy 2024-2027: l . To prevent separation and facilitate the reintegration of children into families or family-ba5ed alternative care 2. To strengthen national child protection and child welfare systems 3. To increase commitments and action to accelerate global and national care reform 4. To amplify and strengthen agency and engagement of impacted children, young people and parents-care takerslthose with lived experience 5. To create a thriving organisation 6. To be a financially sustainable organisation Activlties undertaken throughout 2024 towards our strategic objectives: Colombla Building Stronger Faniilies, Protecting Children s Futures In 2024, Lumos continued its critical mission to transform child protection systems in Colombia, focusing on keeping families together and ensuring children grow up in loving, supportive families. Our work has been driven by a simple yet powerful belief.. every child deserves a family. In August, we renewed our partnership with ICBF (Colombian Institute of Family Welfare), marking a significant milestone in our collaborative efforts to reform care for cliildren. This agreement underscores a shared coinmitment to developing family-based care solutions that prioritise children's well-being and keep families united. Our family reintegration programmes made remarkable strides in 2024, directly supporting.. 114 children 89 families 2 key provider organisations in Bogota and Medellin By providing professional guidance and comprehensive psychosocial support, we've helped families: Develop conflict management skills Regulate emotions Access critical social services Create stable, nurturing home environments Our approach doesn't just prevent children from re-entering institutional care it rebuilds family strength a nd resilience. Liimos Foundation | Trustees, Annual Report & Financial Statements for the year ended Docember 312024 Amplifying Children's Voices Lum05 believes that the most powerful advocates for change are those directly affected. Our Youth Advisory Board IYABI has been instrumental in driving policy discussions and have: Addressed the Bogota City Council on family preservation Participated in high-level international conferences shared personal experiences to inform childcare reform Demonstrated the incredible leadership of young people in shaping theirown futures Expanding Support, Multiplying Impact Ou r partnership wlth Fundacion Casa La Chinca in Medellin represents a crltlcal expansion of our work. By providing technical support for their safe reintegration program, we're.. Scaling successful intervention models Sharing best practices Creating sustainable transformation in another key Colombian region Global Advocacy for Child Protection At the First Global I nter-ministerial Conference to Prevent Violence Against Children (EVAC 20241, Lumos.. Led discussions on family strengthening Highlighted the connectlons between in5titutionalisation and violence against children Advocated for incl u5ive, family-based care solutions At the conference, 12 remarkable young advocates from the Lumos Colombia Youth Advisory Board IYABI proved that age is no barrier to creating meaningful social change and made an extraord inary impact with their presentations. Sara and Julian, two young members of ouryouth Advisory Board shared their personal experiences and asked for systemic change. Their aim was to shed light on the challenges faced by children in care and Institutional Settings, and to advocate for a more compa55ionate, supportive system, During EVAC 2024, these young leaders: Engaged d i rectly with high-level government officials Led d Iscussions with the Colombia Vice Minister of Education and Minister of Health H ighlighted critical issues such as.. school Safety, access to higher educatioii for youth in residential care and healthcare barriers for children in institutional settings. The YAB demonstrated that when children are given a genuine platform, they become powerful agents of change.Their advocacy goes beyond personal experiences-it's about creating systemic transformation that can hel p countless Other children. At Lumos, we believe that the most powerful solutions come from those most affected by the challenges. By supporting these young leaders, we're not just listening we're ampl ifying voices that have been historically si lenced. L(Imos Foundation | Trustees, Annual Report & Finaincial Statements for the year endecl December 312024 Kenya Changing Live5, County by County In 2024, Lumos took a giant leap forward in transforming child welfare across Kenya. What started as a pilot in 15 counties has now expanded to 47 countie5-a massive milestone in our mission to ensure every child grows up in a safe and loving family. Our approach is simple but powerful.. work closely with government agencies, train professionals, and put children's needs at the heart of every decision. This year, we.. Collaborated with the National Council for Children Services Trained 139 professionals across national, county, and institutional levels Launched a nationwide care reform implementation strategy In Embu County, our holistic approach made a remarkable difference, as we.. Assessed 179 child ren {39Vo of those in carel Supported 80 families Helped 75 children116%1 transition to family and community-based care Giving Children a Voice We believe child ren are the experts of their own lives. This year, we.. Engaged with 395 children and young people Held 28 parent and child engagement sessions I ncreased u nderstand ing of tho harmful effects of institutionalisation A Continental Conversation Our work went beyond Kenya's borders. A landmark visit with the African Union's Committee of Experts on the Rights and Welfare of the Child paved the way for.. Continent-wide discussions on family-based care Potential policy changes across Africa A comprehensive guide of promising practices to be shared with AU member countries We're not just changing systems-we're rebuilding futures. By supporting families, training professionals, and amplifying children's voices, we're creating a Kenya where every child has the opportunity to thrive. Lumos Foundèlion | Trustees, Annual Report & Financial Statement5 for the yea r ended December 312024 Moldova Early Childhood Development and Intervention We expanded our successful model for early childhood services to four more regions across Moldova, helping prevent family separation and support children at risk- those with disabilities, and refugees. Key Achievements for ECD-ECI Medicor Project.. Improved Service Quality: Developed standardised procedures across all Early Childhood Intervention IECII Centres and worked with the Ministry of Health on new financing criteria Expanded Reach: Established a new Early Childliood Development community office, bringing our total to 18 offices nationwide Direct Support to Children.. 0 199 children under five received specialised i ntervention services 0 2,217 children received assistance through community offices 0 574 cliildren were visited at home by multidisciplinary teams Professional Development.. Trained 450 healthcare, social protection, and education professionals Family Support: Helped 147 parents through formal training programs, while 1,940 received assistance at community offices UNICEF Partnership Project Throu9hout this important project, our key achievements have been that we: Created 2 new Early Childhood Intervention Centres11 already operationall Established l O Early Child hood Development Offices Trained 260 professionals Supported 1,703 children through development offices Provided specialised intervention programs to 41 children Helped 1,446 parents and caregivers ProTAC15 Project This 8-month project focused on reducing discri mination against vulnera ble children and our successes included that we,. Partnered with 6 schools Engaged 200 university students, 80 teachers, 80 parents, and 201 school students Conducted 30 workshops and one summer school Distributed 450 copies of our "Book of Stories Featured two former Lumos self-advocates as workshop co-facilitators Liimos Foundation | Trustees, Annual Report & Financial Statements for the year ended December 312024 Refugee Response We participated in national-level working groups on social protection, education, child protection, and accommodation for refugees. Our capacity-build ing activities for frontline professionals included.. 8 training events16 seminars, 2 workshops) 250 professionals trained174¥0 from social services, 26 % from education) Focus areas included child protection, communication with adolescents, inclusion of children with special needs, online safety, family support, and data confidentiality All activities were organised with direct involvement from professionals across four districts and key sta keholders managing the U krainian refugee crisis. Ukralne In Ukraine, Lumos works closely with the government to improve the care of children and we're helping test new family care reforms in the Zhytomyr region. Working with Ukraine's Education Ministry, we created online training about i nclusive education that all teachers across the country can access. We've helped keep families together by., Providing food and hygiene supplies Creating nine learning centres in three regions that offer education and protection for children These learning centres, established last year, continue to be vital resources for vulnerable children and families throughout UkTaine. Supporting Children Through Safe Learning, an OCHA-supportedproject By the end of 2024, we reached 28,531 children with safe learning support115,047 girls and 13,484 boys) across Kharkiv, Sumy, and Zhytomyr regions. Nearly 27 % of tliese children have d isabilities or special ed ucational needs. Through our nine Temporary Learning Centres, we provided,. Safe, inclusive learning environments Mental health support Specialised education services to help children catch up on missed learning We distributed educational kits to 1,131 children with disabilities and special needs, helping identify ch ildren with severe needs who were previously isolated from their peers. This support has strengthened the resilience of war-affected children and their caregivers. Liimos Foundation | Trustees, Ai)nual Report & Financial Statements fo¥ tl)e year ended December 312024 Emergency Response Highlights Iln 2024, our humanitarian aid reached 3,912 children 30¥0 more than our initial target helping prevent family separation during crisis. We've strengthened our leadership role in Ukraine's care reform forchildren by.. Partnering with the Coordination Centre for Family Upbringing and Child Care Development Joining a powerful coalition alongside UNICEF, SOS Children's Villages, Hope and Home for Children, and Save the Children Building a foundation for transformative changes in 2025 Advancing Inclusive Education Our experts helped develop U kraine's National Strategy for the Development of Inclusive Education until 2029. Working with the Ministry of Education, we created five webinars for specialists at inclusive resou rce centres, already viewed by 4,590 professionals. In Zhytomyr region, we're implementing improved care reforms in five communities and developing nine universal social services, with a special focus on children with disabil ities and special needs. Empowering Young Voices The Coalition of NGOS In the Interests of Children" in Zhytomyr has grown to 16 organisations, strengthening local chi Id protection advocacy. Our newyouth Advisory Council brings together 18 young people-including I I with disabilities and 5 with experience of i nstitutionalisation-who are actively promoting i nclusive policies. This approach ensures young people's voices shape the decisions that affect their lives. As one participant shared during our"Meeting of Like-minded People" event. For the first time, we have a platform where our views are truly recognised and valued." Global Impact: Advocatlng for Children Worldwlde GlobalAdvocacyAchievements In 2024, £3.6 million was committed for care reform because of global advocacy efforts. We embraced new opportunities through observer status at the African Committee of Experts on the Rights and Welfare of the Child IACERWCI and partnered with the UK Foreign, Commonwealth and Development Office on their global care reform campaign. Ending Violence Against Children We led international collaboration linking violence prevention and care reform, highlighting this connection at the Global Ministerial Conference through a high-level side event. Our advocacy resulted in strong commitments from Colombia and Kenya to improve care for vulnerable children. LLimos Foundation | Trustees, Annual Report & Fin31)cial Statements for the year ended December 312024 Building African Partnerships We strengthened our Tole as a leading partner to the ACERWC by: Supporting a study visit to Kenya Gaining observer status at committee meetings Providing expert guidance on continental care reform approaches Influencing Globol Policy Our partnership with the UK Foreign Off ice on their care reform campaign posltioned u5 to help ensure the campaign emphasises the participation of children and young people with lived experience.we then went on to deliver a consultation with children and young people at FCDO'S request. Connecting Education and Care At the Annual Day on the Rights of the Child {ADRC), we presented groundbreaking research on how education and institutional isation intersect. These connections help ensure care reform extends beyond child protection to include education systems. Youth Voices Leading Change Our commitment to youth participation brought powerful results in 2024: Care leavers spoke at the Ending Violence Against Ch ildren satellite event, wlth one participant declaring. We don't want to leave paper on your desks we want policies that last so children can live safely, free of vlolence," Young people with care experience addressed the UN Human Rights Council, A young person from Moldova may have been the first child currently in care to address the Council, urging members to "remember the most vulnerable children." Ouryouth Advisory Board developed their own pledge as equal participants In the MoreThan A Number campaign, positioning young people a5 partners rather than beneficiaries, More Than A Number Campaign This campaign completed its successful pilot phase with impressive results. We.. Created a compelling brand identity with campaign materials tested directly with our target audience Launched the campaign Pledge and Roadmap to Change Produced three podcast episode5 featuring our Youth Advisory Board Developed partnerships with new oyganisations across the child rights sector Hosted a powerful roundtable where young people shared their experience5 Wlth decision-makers As one young participant explained.. 'In5titutions are not able to offer the support that a family can Liimos FoLindation | Trustees, Aiinu¢il Report & Financial Statements for tlie year ended Deceinber 312024 People with Lived Experience We strengthened youth participation across Colombia, Ukraine, and Moldova by: Establishing new Youth Advisory Boards Includ ing young people in international events and consultations Implementing the ProTACIS project in Moldova with former SelfAdvocates as facilitators Embedding participation activities in all four Country Plans for 2025 Increasing collaboration between our fundraising, advocacy, and people with lived experience teams This approach ensures that children's voices directly shape the policies that affect their lives. Liimos Fou ndation | Trustees, Annucil Report & Financial Statonieiits for the year ended Deceinber 312024 10 Looking Ahead: Our Vision for 2025 As we continue implementing our 2024-2027 strategy, Lumos remains cornmitted to transforming care systems and ensuring every child can thrive in a safe and loving family. Our Goals for 2025 We aim to enable at least 18,000 children to thrive in families instead of institutions through our reintegration programs and by helping governments adopt our family care models, Our prevention work in Ukraine, Kenya, Moldova, and Colombia aims to protect 50,000 vulnerable children from bei ng separated from their families. Global Advocacy Focus In 2025, we'll spotlight the critical connections between care reform and Ending violence against children Disability We'll build on momentum from the Interministerial Conference on Violence Against Children (Bogota, December 20241 a nd the Global Disability Summit (Berlin, April 20251 to secure government commitments to care reform. Country-speclflc Plans Ukraine We're expanding humanitarian assistance to Sumy, Kharkiv, Dynpro, and Zaporizhzhia regions, supporting families displaced bywar with.. Essential education materials Winter supplies Transition Learning Centres for children with disabilities Implementation support for child care reforms in Zhytomyr Colombia We'll develop models to prevent family separation in Narino Department and continue transforming care institutions into community support centres in Bogota and Antioquia. Keiiya We'll complete our comprehensive reform plan for Embu County, aiming to reunite 500/0 of institutionalised children with their families or place them in foster care. Similar plans will extend acros5 Eastern Province. Moldova Working with the government, we'll expand our Early Childhood Intervention model to reach 30 % of the countiy and develop two new Inclusive Education Units. LLimos Foundation | Trustees, Annual Report & Financial Statements for the year ended December 312024 11 Strengthening Our Organlsation We'll enhance our: Grant making and management systems Governance and advisory structures Youth participation mechanisms Safety, security, and safeguarding policies Through these efforts, we'll continue building a world where every child grows up in a safe and loving family. Luinos Foundation | Trustees, Annual Report & Financial 5tatement5 for the year ended December 312024 12 Principal risks Statement of rlsks and uncertalntles Lu mos maintains a corporate risk register, prepared in accordance with Charity Commission Guidance. This register is reviewed and updated quarterly by the Executive Leadership Team; it is then shared quarterly with the Finance and Risk Committee and the Board. There is dedicated risk session with the Board once a year. Additional risk sessions are included in Board meetings where appropriate. Lumos Corporate Risk Register ICRR) includes risks across four categories: strategic and reputational, operational, compliance, fi nancial and governance. As well as the corporate risk register, the Finance and Risk Committee receives quarterly updates on wider risk management activity and explores individual risk areas. The Committee also reviews the charity's overall risk management arrangements on an annual basis. Lumos will continue to assess and update its internal risk management policy to better reflect the inherent risks associated with working in areas of conflict and civil unrest. The charity has identified the following key risk and uncertainties: 1) Poor fundralslng performance and a lack of Income dlverslty Mitigations.. Build fundraising team and develop and implement fundraising strategy Wlth nearterm and medium-term objectives. Financial planning and analysis includ ing quarterly reforecasts and cash flow forecasting to allow for close scrutiny of performance and to support the fundraising strategy. Income stream diversification to i nclude institutional, corporate and major donors. Effective monitoring across all income streams, i.e. monthly reporting against KPIS and variance against budget forecast. 2) Reputatlonal risks and negatlve medla Interest In the charlty Mitigations.. Stakeholder management and communications. Partner, founder and contractor due diligence with associated compliance, monitoring and reporting processes, crisis response protocols. Increase Lumos's profile as an independent charity/NGO and report on impact and development. 3) Security rlsks of personnel operating In high rlsk countrles Mitigations: Regular ongoing security assessments enable rapid analysis of changing circumstances and adaptation of programming, includi ng cessation of activities when appropriate. Regular disbursement of smaller amount5 of funds to partners to tighten financial controls. Security Contingency plans regularly updated. 4) Safeguarding rlsks: the risk of harm to children and adults Mitigations: Additional capacity piovided to safeguarding team and improvements made to safeguarding due diligence guida nce and protocols. Review and i mplementation of the global safeguarding policy and related reporting protocols with associated programme staff and refresher training. Strengthening of integration of safeguarding into programme design and reporting. Lumos Foundatioi) | Trustees, Annual Report & Financial Statements for the year ended December 312024 13 Financlal Review A summary of the year's results can be found on page 25 of the financial statements. 2024 £'ooo 2023 £'ooo Total Income 5,748 7,888 Total expendlture Other Ilossesl I galns 16,4711 14,9641 19 11601 Net Funds movement 17041 2,764 Reserves (arrled forward 5,609 6,313 Unrestricted 4,813 4,224 Restricted 796 2,089 During 2024 Lumos completed its organisational restructure which included the closure of the Bulgaria branch office and the US entity Friends of Lumos USA Ltd. which was dormant during both years. The US charitable entity, Lumos Foundation USA Inc. still operates on a reduced headcount. The UK office also now operates on a reduced headcount witli the aim of maintaining a sustainable platform for future operations. The negative net restricted funds movement during the year is largely due to high operational spend thanks to the receipt of a restricted grant received in late 2023 which was expended in 2024. The positive net unrestricted funds movement during the year is tl)anks to a substantial unrestricted donation received in 2024 intended to cover costs in 2025 and 2026. Investment pollcy and performance In April 2024, the investment portfolio was liqu idated, and the cash is currently held on deposit with Lumos's bank, HSBC plc, Fundraising pollcy Lumos ensures compliance with regulations on the protection of donor i nformation and use of personal data.The protection of children at the heart of our mission extendsto oursupporters and the public, to ensure all individual preferences of donors are upheld, and no one is unduly pressured to donate to Lumos. We are registered with the Fu ndraising Regulator and adhere to their Code of Fundraising Practice for all fund ra isi ng event5, activities and interactions with donors. In 2024, theie were no fundraising complaints. OLsr income is affected by external factors such as the ongoing war in Ukraine, fluctuations in the economy, royalty payments donated by our Founder, changing donor priorities and public trust in charities, all of which we mon itor closely and respond to through our in-year plans. Lumos Foui)dation | Trustees, Annual Repoyt & Financial Statements for the year ended December 312024 14 Reserves policy and golng concern TheTrustees balance a prudent reserves policy, which ensures that Lumos has sufficient funds to complete ongoing activities in the event of a significant fall in income and strengthening and increasing the impact of the organisation. The target level of free reserves is equivalent to approximately 3 to 6 months operating expenses. The charity holds sufficient unrestricted funds for the following purposes: To mltlgate the prlnclpal flnanclal rlsks faclng Lumos In terms of income, this includes the risk that income does not match organisational expenditure growth. To enable Lumos to provide emergency response services There a re situations that can arise throughout the year where an immediate response is required before income is received from fundraising activities, To support worklng capltal funding requlrements In several Lumos programmes expenditure is made prior to claiming the expense from the donor, usually on a quarterly basis. Lumos also receives a sizable amount of royalties, income in the second half of the year wliich has an impact on the casli flows of the charity. To help to protect Lum05 work beyond the current year To protect Lumos's long-term impact, especially in the face of a sustained decline in income, the organisation will need time and flexibility to make responsible adjustments. In countrieswhere Lumos has an established presence, this means carefully managing clianges to core pro9rammes to minimise disruption to children. In countries where Lumos does not havea long-term footprint, it may involve responsibly closing out existing partnerships and programmes to preserve resources and uphold commitments. Funds Restricted funds £0.8m12023: £2.1 ml Restricted funds are funds with specific restrictions imposed by donors. These restrictions often relate to a particular geographic region or area of technical expertise and sometimes include a deadline by which time the funds must be spent. Unrestricted funds £4.8m12023.' £4.2m} U nrestricted fu nds include tang ible and intangible fixed assets of £0. I m12023.. £0.I ml and designated funds of £2m12023: £1.6ml where the designated funds have been allocated by the Board for the purposes of non-programmatic support and discretionary strategic programmes not supported by restricted f unding. The readily reali5able free reserves balance is £2.7m12023.. £2.5ml. Our target base level of free reserves is equivalent to approximately 3 to 6 months operating expenses, which is £1.6m to £3.2m. Lumos Foundation l Trustees, Annual Report & Financial Statement5 for the year ended December 312024 15 Concluslon Given the level of reserves and the prudent steps undertaken between 2022 to 2024 to align our operations and resources to our programmatic and financial strategy, together with forecasts, budgets and a reorganisation of the charity in 2024, the Trustees are satisfied that the charity will remain a going concern in the foreseeable future. LLimos Foundation | Trustees, Annual Report & Financial Statements for the year ended Oecember 312024 16 Structurei governance and management Governlng document and objects Lumos was incorporated as a charitable company limited by 9uarantee with no share capital on 3 November 2005 and is based in London. It is registered in England under company number 05611912 and is registered with the Charity Commission under charity number 1112575. Lumos is governed by its Articles of Association dated 3 November 2005 as reviewed and amended from time to time most recently in December 2021. Lumos's objects as stated in its Memorandum and Articles of Association are as follows: The relief of poverty and sickness,. the promotion of education,. the promotion of child health and development; and the prevention of cruelty to or maltreatment of children in any part of the world. Such other exclusively charitable objects as the Trustees in their absolute discretion determine. As part of the organisational review completed during 2020, the updated mission and vision statements of the Charity weie updated as follows.. li} vision.. All children grow up in safe and loving families within supported communities.,. lill mission: To realise every child's right to a family by transforming care systems around the world. Related organ15atlons Lumos Foundation Operations Limited was incorporated as a private company limited by shares on 18 December 2019 (England and Wales). Its sole member and thus itsparent company is Lumos Foundation. Lumos Foundation Operations Limited operates as a trading entity for Lumos Foundation and donates its distributable profits to Lumos Foundation. Lumos Foundation USA Inc. was incorporated in New York, USA, on 6 November 2015, and obtained 501 Ic13 non-profit status on 27 March 2015. Lumos Foundation USA Inc. is included in the consolidated accounts on the basis that Lumos Foundation exercises influence and control over Lumos Foundation USA Inc. in accordance with Financial Reporting Standard l 02. Friends of Lumos USA Ltd was incorporated as a charitable company limited by shares on 20 March 2015 and was dormant until 31 March 2016.The sole member ofthe company, and thus its parent entity, IS Lumos Foundation USA Inc. During the year, Friends of Lumos USA Ltd was effectively dormant and was dissolved and struck off the Register of Companie5 on 18 June 2024. The Lumos Foundation USA I nc. statement of fi nancial activities results for 2024 are a surplus of £203k 12023.. deficit of £1,254kl and £nil grants were made to the UK parent charity during 202412023.. 2,082k). LLimos Foundation | Trustees, Annual Report & Financiol Statements for the year ended December 31 2024 17 Trustees The Board of Trustees of Lumos Foundation administers the charitable company.The Board meets at least four times a year and provides strategic direction to the work of Lumos.The Trustees make decisions by a majority vote. Trustees give their time freely, receiving no remuneration or other financial benefit. A Trustee is a member of the Board ofTrustees of Lumos and a director for the purposes of the Companies Act 2006. The Trustees who held office during the year are listed at page l. All Trustees must be members of the charitable company. The maximum number ofTrustees is ten. Following the Governance Review theTrustee recruitment process was strengthened including ensuring external advertising for future appoi ntments. At the year end Lumos had eight Trustees, selected to provide a m ix of skills necessary to Lumos. All Trustees are given an induction programme and are offered opportunities for appropriate training. During 2024, in addition to Board meetings, Lumos Trustees undertook considerable work through the following Committees.. Finance & Risk Committee People Committee Programmes and Safeguarding Committee Fundraising Committee Since QI 2025, considerable work has also been undertaken as part of a wider governance refresh, which is ongoing, including reviewing the purpose and scope of Committees and updating theirTerms of Reference. A periodic Board skills audit is carried out to determine the range of skills and experience which would be required to fill existing gaps.The last such audit was in Q4 2020. Organi5atlon The Chief Executive Officer and Executive Team provide the Board with advice on the strategic direction of the cliarity and manages operations oli belialf of the Board and with the Board's guidance. The Chief ExecLltive Officer is responsible for monitoring all aspects of Lum05's work and regularly reporti ng progress to the Board. Related parties and cooperation with other organisatlons None of the Trustees receive remuneration or other benefits from their work witli the charity. Any connection between a Trustee or senior manager of the charity with any related party Is disclosed to the ful l Board of Trustee5. Related party disclosures take place annually as pa rt of the external audit process and any conflicts of interest are declared at each Board meeting. Luinos Foundation | Trustees, Annual Report & Financial Statements for the year ended December 312024 18 Grant-making pollcy Whilst Lumos is not primarily a grant-making organisation, the charity does issue grants occasionally to further its charitable objects. These grants tend to be ir) countries where Lumos does not have a permanent base, or a sub-grant of a grant received by Lumos. Grants are issued only where an opportunity has been identified, where funding exists and when due diligence has been carried out on the ability of the grantee to deliver aga inst the gra nt. All grants follow Lumos's standard internal procedures, opportunities are assessed by the Executive Team and approved by the Chief Executive Officer andlor the Trustees in l ine with Lumos's procedures. Investment powers and restrlctlons Under its Articles of Association, Lumos has the power to invest in ways that the Trustees see fit. In April 2024, the investment portfolio was1 iquidated, and the cash is currently held on deposit with lumos's bank, HSBC plc. Pay pollcy for senlor staff The Trustees consider that the Board of Directors {who are the charity's Trustees), together with the Executive team, comprise the key management personnel of the charity in charge of directing and controll ing, running and operating the charity on a day-to-day basis. All Trustees give their time freely and no Trustee received remu neration in the yea r. Details of Trustees, expenses and related party transactions are disclosed in the notes to the accounts, notes 9 and19 respectively. Publlc beneflt The main activities undertaken by the charity to further its objects for the public benefit are described further in this Report. Trustees confirm that they have complied with the duty in the Chaiities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. 2024 restructure To ensu re its financial sustainability, Lumos underwent a restructure duri ng April and May 2024. This included rationalising central administrative functions within a streamlined Corporate Services model, whilst redeploying resources to the Country Programme teams enabling better efficiencies and effectiveness locally. Lliinos Foundation | Trustees, Annual Report & Financial Statements for the year ended Deceimber 312024 19 Statement of Trustees, responsibilities TheTrustees (who are also directors of the Lumos Foundation for the purposes of company lawl are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Piactice (United Kingdom Accounting Standardsl. Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income a nd expenditLJre, of the charitable group for that period. I n preparing these financial statements, the Trustees are required to.. Select suitable accounting policies and then apply them consistently Observe the methods and principle5 in the Charities SORP IFRS1021 Make judgements and estimates that are reasonable and prudent State whether applicable UK accounting standards have been followed, subject to any material depa rtures disclosed and explained in the financial statements Prepare the financial statements on the going concern 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 explai n the charitable compa ny's transactions, disclose with reasonable accu racy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Compan ies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguard ing the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Dlsclosure of Informatlon to audltors To ensure it5 financial sustainability, Lumos underwent a restructure during April and May 2024. This included rationalisi ng central administrative functions within a streamlined Corporate Services model, whilst redeployi ng resources to the Country Programme teams enabling better efficiencies and effectiveness locally. Insofar as each of the Trustees of the charity at the date of approval of th is report is aware, there is no relevant audit i nformation (information needed by the cha rity's auditor in connection with preparing the audit reportl of which the charity's auditor is unaware. Each Trustee has taken all of the steps that he/she should have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The Trustees are responsible for the mai ntenance and integrity of the corporate and financial information included in the company's website. Legislation in the United Kingdom governi ng the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. TheTrustees' Report, including the Strategic Report, was approved by order ofthe Board ofTrustees. Kenneth Towle Chair of Trustees Lumos Foundation Date.. Lumos Foundation | Trustee5' Annual Report & Financial Statements for the year ended December 312024 20 Independent auditor's report to the members of Lumos Foundation Oplnlon We have audited the financial statements of Lumos Foundation (the'parent charitable company'l and its subsidiaries Ithe'group'l for the year ended 31 December 2024 which comprise the consolidated statement of financial activities, consolidated and charity balance sheets, consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied i n their prepa ration is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102,the Financial Reporting Standard applicable i n the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements,. Give a true and fair view of the state of the affa irs of the group and the parent charitable company as at 31 December 2024 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended,. Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and Have been prepared in accordance with the requirements of the Companies Act 2006. Ba515 for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsi bilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company 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 req uirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concern In auditing the financial statements, we have concl uded that the Trustees, use of the going concein basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group orthe parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the f inancial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Luinos Foundation | Trustees, Annual Report & Financial Statements for tl)e year ended Deceimber 312024 21 Other information The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the fi nancial statements does not cover the other information and, except to tlie extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material mi55tatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of thi5 Other information,. we are required to report that fact. We have nothing to report in this regard, Other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course ofthe audit.. The information given in the Trustees, Annual Report which includes the Directors, Report a nd the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements,. and The Trustees, Annual Report which includes the Directors, Report and the Strategic Report has been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptlon In light of the knowledge and understanding of the group and the parent charitable company and their environ ment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Annual Report and Strategic Report. We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion.. Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branche5 not visited by us., or The parent charitable company financial statements are not in agreernent with the accounting records and returns,. or Certain disclosures of Trustees, remuneration specified by law are not made,. or We have not received all the information and explanations we require for our audit. Responsibilities of Trustees As explained more fully in the Statement of Trustees, Responsibilities set out on page 20, the Trustees Iwho are also the directors of the parent charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satlsfied that they give a true and fa ir view, and for such internal control as the Trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. LLimos Foundation | Trustees, Annual Report & Financial Statement5 for the year ended December 312024 22 In preparing the financial statements, the Trustees are responsible for assessi ng the group and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Audltor's responslbllitles for the audit of the financlal Statements We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act. Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a h igh level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a mateiial misstatement when it exists. Misstatements can arise from fraud oi error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. liregularities, including fr3ud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting i rregularities, including fraud are detailed below. Identifying and assessing risks related to irregularities.. We assessed the susceptibility of the group and parent charitable compa ny's financial statements to material misstatement and how fraud might occur, including through discussions with the Trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements.we identified lawsand regulations that are of significance in tl)e context of the group and parent charitable company by d iscussions with Trustees, communication with component auditors and updating our understanding ofthe sectors in which Ihe group and parent charitable company operate. Laws and regulations of direct significance in the context of the group and parent charitable company includeThe Companies Act 2006 and guidance issued by the Charity Commission for England and Wales. Audit response to risks identified.. We considered the extent of compliance with these laws and regulations as part ofour audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent cliaritable company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We d iscussed the parent charitable company's policies and procedures for coinpliance witli laws and regulations with members of manageinent responsible forcompliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which migl)t involve non-compliance with laws and regulations or fraud.we enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness ofjournal entries and identifying any significant transactions that were unusual or outside the normal course of busine5S. LLimos Foundation | Trustees, Annual Report & Financial Statements for the year ended December 312024 23 We assessed whetherjudgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications with component auditors included a request to identify instances of non-compliance with laws and regulations a nd fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment. There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transactions ref lected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material m isstatement due to fraud is higher than the risk of not detecti ng one resulting from error, as fraud may involve deliberate concealment by, for exa mple, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. ditor re onsibilities. This description forms part of ou r auditor's report. Use of our report This report is made solely to the parent charitable company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company's members those matters we are required to state to them in an auditor's repoit and for no other puipose. To the fullest extent permitted by law, we do not accept or assume responsibility to a nyone other than the parent charitable company and the parent charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Gareth Norris FCA (Senior Statutory Auditorl for and on behalf of Saffery LLP Statutory Auditors 71 Queen Victoria Street London EC4V4BE Date.. Saffery LLP is eli9ible to act as an auditor in terms of section 1212 ofthe Companies Act 2006 LLimos Foundation | Trustees, Annual Report & Financial Statements for the year ended December 312024 24 Consolidated statement of flnanclal actlvltles Ilncluding Income and expenditure account) for the year ended 31 December 2024 Notes 2024 UnieslTlCted funds 2024 Resiiicied funds £'ooo 2024 Tot31 funds 2023 Total funds E'OOO Income from: Royalties 1,485 1,485 1,009 Donations and Gift Aid 2,790 46 2,842 3,701 Charltable actlvltles Grant income 19 1,311 1,330 3,030 Investment income 55 55 72 Income froni Trading activities 22 22 63 Other Incon)e 14 14 Total Income 4,391 1,357 5.748 7,888 Expenditure on.. Raising funds.. Raising donations and grant income. donDr coniniunicalion c0515 958 958 1,573 Investment manogenienl costs Ch¢irilable activities 2,777 2,736 S,513 3,386 Total expendlture 3,735 2,736 6,471 4,964 Net In