# **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
# **FOR**
## **LIGHTHOUSE CENTRAL**
**Registered charity in England & Wales with registration no: 1169839**
Registered charity in England & Wales. No: 1169839 Lighthouse Central, Bridge House, Station Approach, Great Missenden, HP16 9AZ
## **LIGHTHOUSE CENTRAL**
## **CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 December 2020**
||Page|
|---|---|
|Report of the Trustees|3 to 8|
|Section 1: Structure, Governance &||
|Management||
|Section 2: Objectives & Activities||
|Section 3: Achievements & Performance||
|Section 4: Financial Review||
|Section 5: Declaration||
|Independent Examiner's Report|9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Notes to the Financial Statements|12 to 13|
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## **LIGHTHOUSE CENTRAL REPORT OF THE TRUSTEES**
## **for the year ended 31 December 2020**
The trustees present their report together with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
## **ADMINISTRATIVE DETAILS**
**Registered Charity number** 1169839
## **Registered address:**
Lighthouse Central Bridge House Station Approach Great Missenden HP16 9AZ
## **Trustees:**
Charles Vernon - Chair (Resigned 21 November 2020) Graeme Slocombe - Chair (Appointed Trustee 4 October, Appointed Chair 21 November 2020) Kent Anderson Ian Branch Peter Collins (Resigned 29 August 2020) Colin Hingston (Resigned 29 August 2020) Jane Knight Cathy Rayner Ben Sharp David Knights (Appointed 11 December 2020)
## **Director:**
Patricia Reading
## **Patron:**
Gary Grant
## **Independent examiner:**
Mr Paul Nye Sandford House Lucas Road High Wycombe Buckinghamshire HP13 6QG
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## **Section 1: Structure, Governance & Management**
## **Governing document**
Lighthouse Central is a Charitable Incorporated Organisation (CIO) governed by its Constitution dated 19 October 2016. The members of the CIO are its trustees and membership cannot be transferred to anyone else. Therefore, only the trustees of the CIO are able to vote on any matter relating to the CIO. The CIO is also governed by its Bye Laws dated 21 October 2016. The Bye-Laws can be changed, but only by a resolution passed at a properly convened meeting of the trustees.
## **Appointment of trustees**
As set out in the Constitution, trustees are appointed by a resolution passed at a properly convened meeting of the charity trustees. The chair of trustees is nominated by the trustees of the CIO and may at any point revoke such appointment. When considering the appointment of trustees, the board has regard to the requirement for any specialist skills needed for the effective administration of the CIO.
## **Trustee induction**
Having mostly had personal contact with a local Lighthouse, new trustees are often well aware of our objectives and the work we undertake. As such, the induction of new trustees is minimal. New trustees receive a copy of the current version of the Constitution and Bye Laws, a copy of the most recent Trustees’ Annual Report and statement of accounts, and the Charity Commission’s ‘Charity Trustee Welcome Pack’ and ‘The essential trustee: what you need to know, what you need to do (CC3)’ guide. All of the Trustees are also required to complete the NSPCC on line training course for charity trustees.
## **Organisation**
The board of trustees, which can have up to eight members, administers the CIO, with responsibilities for different areas. The Director reports to the Chair of Trustees, Volunteers with management responsibilities report to the Director. The board meets at least three times a year, in accordance with the Bye Laws.
All trustees, and members of committees, give their time voluntarily and received no benefits from the charity.
## **Key management remuneration**
Key management staff received remuneration of £38,281 (2019: £35,616) during the year. The salary was decided by the trustees and will be reviewed annually and benchmarked against national rates for Youth and Community workers.
## **Section 2: Objective & Activities**
Lighthouse Central has been set up to:
- Promote the Christian faith primarily in children and young people by initiating and supporting the organisation of non-residential Christian holiday clubs, which are free of charge with all costs met from voluntary donations, fundraising events, grants and sponsorship.
- To do this in conjunction with Christian churches in their locality through the work of all denominations wishing to participate.
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## **Significant activities**
During the last 12 months we have:
- Produced an on line live TV show as an alternative to the “in-person” summer Lighthouse week due to Covid restrictions which was viewed by 17,401 households throughout the UK and abroad.
- Produced an on line Christmas event and a Light Party as an alternative to Halloween which were watched by over 2,000 households
- Spoken to a large number of individuals and churches regarding starting new Lighthouses nationwide
- Identified several locations where it is likely new Lighthouses will commence in the next few years
- Raised finance from individuals, the local Dioceses, trusts and organisations and more recently engaged Fundraising professionals to assist us to gain access to other available funding
- Continued to develop and improve resources provided to the existing Lighthouses
- Carried out ongoing work to improve our registration database and website
- Held our fourth Lighthouse Central Conference to encourage and inspire local Lighthouse leaders
## **Public benefit**
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘Public benefit: running a charity (PB2)’.
Lighthouse Central facilitates the provision of free children’s holiday clubs which are open to all irrespective of beliefs. They provide a great week of fun activities and teaching and strengthen relationships in the community with several churches working together.
In 2020 due to the pandemic we were unable to run the physical Lighthouses on site but continued to deliver public benefit to children, young people and parents with a Lighthouse experience on line open to everyone and provided free of charge.
## **Section 3: Achievements & Performance**
Due to Covid-19, the local Lighthouse sites were not able to run the usual week-long holiday club in July/August 2020. Lighthouse Central was able to support the families that would normally attend by providing a week long programme accessible to all on line. This included:
- Full online admin system enabling child registration
- A mixture of live and pre-recorded presentations using professional presenters working with many of the local Lighthouse presenters
- Craft sessions
- Mindfulness sessions based on the Bible story for the day
- Music and action songs, drama, games and sport
- A full alternative on-line provision for those with Special Educational Needs, signed and appropriate to their needs
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The local Lighthouses remained closely involved in the programme and generously supported with the funding requirements. In addition, one off on-line events were produced at Christmas and a “Light Party” was offered as an alternative to Halloween celebrations.
## **Chairman’s Report for 2020**
Lighthouse is a non-residential week long holiday club for children run by Christians from local churches working together, bringing churches and communities together around children. In most years we reach around 5,000 children across 12 sites, supported by 3,000 volunteers.
We are passionate about seeing children from all walks of life and abilities, those with faith and without, encountering God in a fun-filled week with teaching, sport, craft, performing arts and music.
Lighthouse Central brings together everything local churches need to run a Lighthouse, delivering administrative support, content and leadership.
Each one of the 12 established Lighthouses is an independent charity who raise their own funds and make all local arrangements.
Our model shows financial self-sustainability for the central charity once there are around 50 Lighthouses using our package and until then, we are reliant on financial donations from both existing and new supporters.
Our expectation for 2020 was that we would see more communities commit to launching new Lighthouses and that the target of 50 Lighthouses could be achieved within ten years. In 2020 we had two new Lighthouses ready to launch in South Bletchley and Shelswell, a group of rural churches north of Bicester. Unfortunately, the Coronavirus pandemic meant that we could not launch these Lighthouses, however they remain ready to go as soon as restrictions are lifted.
We continue to talk as widely as possible to potential new sites and are looking forward to establishing more new locations in 2022.
With the lockdowns and other restrictions imposed on public gatherings due to the pandemic, our plans for Lighthouse week 2020 had to change radically and no Lighthouses ran as physical entities.
Rather than cancel Lighthouse 2020, we looked for an innovative way to deliver the fun, faith and engagement of Lighthouse with an online daily live TV show hosted on a child friendly Christian app, that contained as much of the usual Lighthouse content as possible – Bible teaching, worship songs with actions. Craft, Drama, Games and Gunge.
In a ‘normal’ year Lighthouse will host 5,000 children supported by 3,000 volunteers. Lighthouse Live was watched by over 17,400 individual households and we estimate each of those had at least two children and an adult participating.
In addition to two daily live TV shows we produced ‘Safe Harbour’, with content designed for children that present with challenging behaviours. This included bible stores with sign language, a daily Prayer Craft and a contemplative prayer mindfulness session each day
Not only did Lighthouse Live connect with the existing twelve Lighthouses, it also reached a far wider audience as people tuned in from around the country and beyond, with 59 locations outside the current Lighthouse catchment zones.
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We can now build on this relationship to share our faith as widely as possible and have a proven, flexible, creative format that truly engages children and families. We have already produced a Light Party alternative to Halloween and a Christmas Show and are working on Easter activities for 2021.
## **Section 4: Financial Review**
## **Financial position**
Due to the impact of Covid-19, none of the Lighthouses were able to run the usual holiday weeks in July. The funding model of the Lighthouse subscriptions covering the running costs of Lighthouse Central and a proportion of the director costs was therefore not appropriate this year. Faced with having no Lighthouses running in 2020, Lighthouse Central decided to use crowd funding together with generous donations from the local Lighthouses and churches to fund a professionally produced on-line alternative. These two funding sources were able to cover the production expenses of the summer, Christmas, and Light Party events. Most of the local Lighthouses were also able to pay a subscription based on 2019 attendance. This together with reserves have enabled the on-going funding of the full-time director costs. This role is essential to grow the numbers of Lighthouses with the aim that in the long term, the increased subscriptions will enable the charity to be self-sustaining. We were very thankful, at the end of a difficult year, to receive notification of grant awards from The Oxford Diocese and Allchurches Trust as well as a generous gift from an individual. This has enabled us to end the year with a surplus. We recognise however, that 2021 will be just as challenging. It is very difficult to achieve growth in the number of Lighthouses during this current period of uncertainty and without additional external funding we may be unable to fund the director full time. From January, the director is being flexibly furloughed for 3 months. We remain optimistic however after the recent funding awards and in January 2021 we have started to work closely with professional fundraisers.
## **Principal funding sources**
The principal funding source for the CIO are donations from the beneficiaries of the CIO. Donations from individuals and trusts have also been sources of funding.
## **Reserves policy**
None of the £31,671 reserves are restricted as to their use. The trustees regularly review the reserves of the charity which are held to meet the ongoing salary costs of the director together with running costs incurred prior to receiving subscriptions from the Lighthouses. The trustees consider that reserves should cover 6 months running and salary costs in normal circumstances.
## **Going concern**
In 2021 we will continue to develop a network of “Friends of Lighthouse” to raise further funding from individuals as well as continuing to work with Christian organisations and trusts. We will also be working with two professional fundraising companies to raise significant funding to support growth and sustainability. We plan to hold a fundraising lunch hosted by our patron when Covid-19 restrictions permit. The trustees have a reasonable expectation that fundraising efforts together with the current reserves will enable Lighthouse Central to continue in operational existence for at least one year from the date of approval of the accounts.
## **Funds in deficit**
There are currently no funds in deficit.
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## **Principal risks and uncertainties**
In light of the ongoing Corona virus situation it is again unlikely that the local Lighthouses will be able to run in their usual format in 2021. It is also difficult to grow the numbers of Lighthouses in the current climate of uncertainty. Whilst “face to face” events would be the preferred option, an on line offering may be required in summer 2021 as in 2020. This means that subscriptions from Lighthouses will again not be paid to Lighthouse Central in the normal way. In 2020 all of the local Lighthouses generously contributed to the production costs of the on-line offering but with reduced reserves of their own, may not be able to support Lighthouse Central in 2021 to the same extent. It is for this reason that we have started to work with professional fundraisers to assist us with targeting new areas of funding to sustain us through this period and to put us on a more secure financial footing. We have also taken the decision to flexibly furlough our director 2 days a week between January and March to reduce costs. The trustees have deliberately not committed to significant overheads such as premises, to minimise costs. Indeed Lighthouse Central continues to rely heavily on the work of volunteers and services generously donated by Peters Research Ltd such as IT skills and administrative time as well as office space and computer hardware and software.
## **Section 5: Declaration**
The trustees declare that they have approved this trustees’ report.
Signed on behalf of the charity’s trustees:
Full name: Mr Graeme Slocombe Position: Chair of Trustees Date: 20 February 2021
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## **INDEPENDENT EXAMINER'S REPORT O THE TRUSTEES OF LIGHTHOUSE CENTRAL**
I report on the accounts for the year ended 31 December 2020 set out on pages 10 to 13.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.
## 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) of the 2011 Act); and
- to state whether particular matters have come to my attention.
## **Basis of the 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 statements below.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that, in any material respect, the requirements: - to keep accounting records in accordance with Section 130 of the 2011 Act; and
- to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mr Paul Nye Sandford House Lucas Road High Wycombe Buckinghamshire HP13 6QG
## **20 February 2021**
9
## **LIGHTHOUSE CENTRAL STATEMENT OF FINANCIAL ACTIVITIES**
**for the year ended 31 December 2020**
||||**2020**|**2019**|
|---|---|---|---|---|
||||**Total funds**|**Total funds**|
||||**£**|**£**|
|**INCOME AND ENDOWMENTS FROM**
|Notes||||
|Donations|||**55,810**|**17,949**|
|Gift Aid on donations|||**652**|**238**|
|**Charitable activities**|||||
|On line music sales|||**115**|**0**|
|Sale of merchandise and volunteers’ t-shirts to Lighthouses|||**0**|**11,851**|
|Membership subscriptions and service costs from Lighthouses|||**14,954**|**20,985**|
|Fundraising income|||**242**|**910**|
|Investment income||2|**7**|**21**|
|**Total**|||**71,780**|**51,954**|
|**EXPENDITURE ON**|||||
|**Charitable activities**|||||
|Staff|||**38,281**|**35,616**|
|Travel and subsistence , course attendance|||**2,053**|**3,752**|
|Purchase of merchandise and volunteers’ t-shirts|||**0**|**11,784**|
|Fundraising expenses|||**588**|**750**|
|Annual conference|||**396**|**403**|
|Teaching material development & delivery|||**22,721**|**3,757**|
|Computer costs|||**0**|**566**|
|Administration costs|||**1,206**|**1,553**|
|Charity donation|||**100**|**1,000**|
|**Total**|||**65,345**|**59,181**|
|**NET INCOME/(EXPENDITURE)**|||**6,435**|**(7,227)**|
|**Net movement in funds**|||**6,435**|**(7,227)**|
|**RECONCILIATION OF FUNDS**|||||
|**Total funds brought forward**|||**25,236**|**32,463**|
|**TOTAL FUNDS CARRIED FORWARD**|||**31,671**|**25,236**|
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## **LIGHTHOUSE CENTRAL**
## **BALANCE SHEET At 31 December 2020**
|||**2020**|**2020**
**2019**|
|---|---|---|---|
|||**Total funds Total funds**|**Total funds Total funds**|
||Notes|**£**|**£**|
|**CURRENT ASSETS**||||
|Cash at bank and in hand||**24,158**|**24,158**
**26,610**|
|Debtors|5|**8,525**|**8,525**
**237**|
|**CREDITORS**||||
|Amounts falling due within one year|6|**(1,012)**|**(1,611)**|
|**NET CURRENT ASSETS**||**31,671**|**25,236**|
|**NET ASSETS**||**31,671**|**671**
**25,236**|
|**FUNDS**||||
|Unrestricted funds||**31,671**|**31,671**
**25,236**|
|**TOTAL FUNDS**||**31,671**|**671**
**25,236**|
The financial statements were approved by the Board of Trustees on 20 February 2021 and were signed on its behalf by:
G Slocombe - Chair of Trustees
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## **LIGHTHOUSE CENTRAL NOTES TO THE FINANCIAL STATEMENTS**
## **for the year ended 31 December 2020**
## **1. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
## **Financial reporting standard 102 - reduced disclosure exemptions**
The charity has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':
- the requirements of Section 7 Statement of Cash Flows.
## **Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Taxation**
The charity is exempt from tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can 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. There were no donations received during the year which were restricted in their use.
## **Pension costs and other post-retirement benefits**
The charity has made contributions to a pension scheme totalling £895 during the year to 31 December 2020. (2019: £750)
## **2. INVESTMENT INCOME**
|Deposit account interest|**2019**
**2019**
£
£|
|---|---|
||7
21|
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## **LIGHTHOUSE CENTRAL**
## **NOTES TO THE FINANCIAL STATEMENTS - CONTINUED for the year ended 31 December 2020**
## **3. TRUSTEES' REMUNERATION AND BENEFITS**
There was no trustees' remuneration or other benefits in the year ended 31 December 2020. (2019: nil)
## **Trustees' expenses**
During the year to 31 December 2020 no Trustee expenses were reimbursed. (2019: £NIL)
## **4. STAFF COSTS**
The average monthly number of employees during the year was as follows:
|**2020**|**2019**|
|---|---|
|**1**|**1**|
No employees received emoluments in excess of £60,000.
## **5. DEBTORS**
|Diocesan Development Fund Grant
Grant from Allchurches Trust
Gift Aid receivable from HMRC|**2020**
**2019**
**£**
**£**
**2,500**
**0**
**6,000**
**0**
**25**
**237**|
|---|---|
||**8,525**
**237**|
## **6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Tax, national insurance and pension
Director’s expenses- travel & subsistence|**2020**
**2019**
**£**
**£**
**813**
**794**
**199**
**817**|
|---|---|
||**1,012**
**1,611**|
## **7. RELATED PARTY DISCLOSURES**
Donations totalling £1,796 were received from trustees or close relatives of trustees of the charity. (2019: £1,700)
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