2022-03-31-accounts

Registered number: 02441319 Charity number: 702314 THE FIVE LAMPS ORGANISATION (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Armstrongwatson. Accountants, Business & Financial Aclvisers

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) CONTENTS Page Reference and Administrative Detsils of the Companyy its Trustees and Advisers Trustees. Report Trustees. Responsibilities Statement Independent Auditors, Report on the Financial Ststements Consolidated Statement of Financial Activities 2-18 19 20-24 25 Consolidated Balance Sheet 26 Company Balance Sheet Consolidated Statement of Cash Flows 27 28 Notes to the Financial Statements 29-57

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Trustees Patricia Chambers, Chair Vivienne Holmes, VI￿ Chair Jamie Houlders Trevor Walson Company reglstered number 02441319 Charlty reglstered number 702314 Reglstered offlce Eldon Street Thornaby Slocklon on Tees TS17 7DJ Chlef executlve offlcer Lisa Pickard Independent audltors Armstrong Watson Audit Limited Chartered Accounlanls & Statutory Auditors York House Northallerton North Yorkshire DL6 2XQ 8ankers Unity Trust Bank 4 Brindley Place Birmingham B12JB Page 1

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2022 TRUSTEES RESPONSIBILITIES STATEMENT The Trustees are pleased to present their Annual Report providing an overview of the period ending 31 sl March 2022120211221 and setting out plans for the future. 2.1 ACHIEVEMENTS AND PERFORMANCE 2.1.1 Overview Five Lamps continued to experience the ongoing impacts of the Covid-19 pandemic during 2021122 as well as sought lo ensure the Charity could recover and be sustainable for the future. In addition, the global economic pressures added to the challenging national economic landscape have placed many of our ServI￿S under more strain than ever before. These Statements report a consolidated loss of £539,899 reducing the net asset value of the Charity 10 £75,229. During the last quarter of the financial year to March 2022, the Directors of Five Lamps Trading Ltd IFLTI and the Trustees entered into discussions with the Social Investment Lenders to address the financial impact resulting in the delays incurred in 2021122 which it was accepted had a negative impact on the performance of FLT in 2021122 as well as the charity. These discussions continued into the new financial year and were finally concluded in December 2022. As a result, the holders of the Tranche B Loan Notes have agreed lo waiver the interest charged for the financial years ending March 2021 and March 2022, lotalling £416,219. This interest liability has been recorded in both the Five Lamps Trading fi'nancial statements and the consolidated Group accounts in both 20211221£185,7951 and the prior year1£230,4251. Had the agreements been reached prior to the end of the financial year the Trustees would be reporting a consolidated loss of £488,962 as shown below, and positive net assets of £491,508. FLT Accounts 2021122 2020121 Reported Loss for the financial year Interest waived Restated Loss for the financial year (1,049,590) 185,795 863,795 (1,112,604) 230,425 882.179 Group Accounts (Charity) 2021122 2020121 Reported Loss for the financial year Interesl waived Restated Loss for the financial year (539,899) 185,795 354,104 {456,894) 230,425 226,169 During 2021122, the Trustees changed the Corporate structure and delivery model lo better manage these risks and ensure continuity of services for our customers and their changing needs. The most significant change relates lo our wholty owned Limited Company with Shares, Five Lamps Trading IFLTI Limited company number 08029251.This company files ils own Financial Statements but sits within the Five Lamps Organisation., its trading activity is consolidated and included wlhin these Financial Statements and Trustees report. Separate Directors, report and Financial Statements are filed for FLT. The negative nel asset position within FLT has worsened In the year to £2,104,798 as a result of a pre-tax loss of £1,049,590. This is due to three primary factors.. - Page 2

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 In November 2021, the Trustees with support from our Social Investment Funders 'lnveslors', agreed lo transfer all new personal lending activity into the Charity lo operate under the Financial Conduct Authority IFCAI registration number 65611. New income into FLT ceased. Cash balances were moved from FLT into Five Lamps Organisalion by means of an Upstreaming Loan lo enable personal lending lo be delivered by the Charity. Investor Interest and staff costs remained within the Trading Company. As a result of these changes the Social Investment Funder Loan Notes activity combines FLT and a ringfenced activity within charity. The aggregate of like for like comparison lo operating periods reported 2021122 income at £882,600 and a loss before taxation of £896,600. This activity increased its provision for bad debts by £249,000 against a nel loan book of £2,000,494 and a negative net asset posib'on of £2,104,000. Upslreaming was critical to the future delivery of affordable lending as a CDFI (Community Development Finance Inslitutionl and to ensure Five Lamps remain viable into the future and is able to repay the loan notes at a future dale. 11 does however make the presentation and year on year comparison of the Charities standalone performance more complex. However, the Trustees present this as a Statement lo the consolidated accounts. Whilst the FLT accounts will be filed with a worsening outlook, the consolidated accounts reflect the sum of all activity and therefore present a like for like comparison. 2.1.2 Financial Review The Slalement of Financial Activities for the year, the Balance Sheet as of 31 March 2022 and associated notes are sel out on pages 27 to 57. The total income for the year to 31 st March 2022 was £3,129,545 12020121- £4,225,694). Group nel assets reduced from £615,127 10 £75,229 due lo a reported loss of £896,000 in our Investor funded activity as reported above. The impact of post-year end Investor interest changes is also reported above. Excluding the aforementioned loss, the charity made a surplus of £96,101 compared to £344,290 in 2020121. The Trustees, intention is to hold not less than £100,000 al any point in time in aC￿sSible and unrestricted cash balances to ensure the Charity can manage ils activities and discharge ils operating liabilities in the event of a significant drop in funding. Cash balances throughout 2021122 and in the intervening period be￿een filing these accounts have remained above £100,000. This policy is monitored quarterly by the Trustees with the threshold increased lo £200,000 to mitigate the risks associated with continued economic uncertainly. 2.2 STRUCTURE, GOVERNANCE AND MANAGEMENT 2.2.1 Oryanisational structure and decision making In presenting the Trustee report and financial statements of the charitable company (the Charity) for the year ended 31 March 2022, the Trustees hereby confirm that they comply with current slatulory requirements, the Company's governing documents, and the provisions of the lalesl Statement of Recommended Practice ISORPI 'Accounling and Reporting by Charities. issued in March 2005. The legal and administrative information on page 1 forms part of this report. 2.2.2 structure. Governance and Management The Five Lamps Organisation IFLOI is a Registered Charity 17023141 and Company Limited by Guarantee 124413191 The company was registered under a Memorandum of Association which established the objects and powers of the charitable company and Ils Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Five Lamps Trading Limited IFLTI {080292511 is a wholly owned trading subsidiary of The Five Lamps Organisalion. FLT is a Limited Company by Shares. The Directors of the FLT company are also charity trustees for the purposes of charity law and under the company's articles are known as members of the Management Committee. Page 3

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 The Trustees continuously review governing documents. The most recent formal amendment approved by the Charity Commission was In December 2013 which provided for the extension of operations lo the whole of England. Since October 2017, The Five Lamps Organisalion has also been registered with the offi￿ of the Scottish Charity Regulator, under reference SC047839. 2.2.3 Charitable Objects Our charitable objects provide for operations and charitable activities 'within England and Scotland, lo reflect the geographic growth and diversity of the organisation and ils services. Our Objects promote for 'lhe benefit of the public of urban or rural regeneration in areas of social and economic deprivation, within England and Scotland, by all or any of the following means.. The relief of financial hardship among people living or working within England and Scotland by providing such persons with goods andlor serVI￿S which they could not otherwise afford through lack of means. The prevention and relief of poverty by providing education, goods, and services lo individuals in need. The relief of unemployment for the benefit of the public in such ways as may be thought fit, including assistance lo find employment. The advan￿ment of education, training or retraining particularly among socially, economically, and financially excluded people and the provision of work experience for unemployed people. The provision of fi'nancial assistance, technical assistance, business advice or consultancy in order lo provide training and employability for unemployed people in cases of financial or other charitable need through help in selling up their own business or to existing businesses. The creation of training and employment opportunities by the provision of workspa￿, buildings, or land for use on favourable terms. The provision of housing for those who are in conditions of need andlor the refurbishment of such housing. The provision of public health facilities and childcare. The provision of recreational facilities for the public or those who by reason of their youth, age, infimiity or disability, financial hardship, or social and economic circumstances, have need of such facilities. The development of skills and capacity in those living in socially and economically disadvantaged communities to enable them to better identify and help meet their needs and lo participate more fully in society., and Any other purposes currently recognised as charitable and any new charitable purposes which are similar lo another charitable purpose. bl dl gl h) kl The Powers of the charity now state: The charity has the power to do anything which is calculated lo further ils Objectlsl or is conducive or incidental lo doing so. In particular, the charity has the power to raise funds. In doing so, the charity musl not undertake any taxable permanent trading activity and must comply with any relevant statutory regulations. lo buy, lake on lease or in exchange, hire or otherwise acquire any property and to maintain and equip il for use. lo sell, lease or otherwise dispose of all or any part of the property belonging lo the charity. In exercising this power, the charity musl comply as appropriate with sections 36 and 37 of the Charities Act 1993, as amended by the Charities Act 2006. lo borrow money and to charge the whole or any part of the propety belonging lo the charity as security for repayment of the money borrowed or as security for a grant or the discharge of an obligation. The charity must comply as appropriate with sections 38 and 39 of the Charities Act 1993, as amended by the Charities Act 2006, if il wishes lo mortgage land. lo cooperate with other charities, voluntary bodies, and slatulory authorities and lo exchange information and advi￿ with them. Page 4

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 lo establish or support any charitable trusts, associations or institutions formed for any of the charitable purposes included in the Objects lo acquire, merge with or enter into any partnership or joint venture arrangement with any other charity lo set aside income as a reserve against future expenditure but only in accordance with written policy about reserves. lo employ and remunerate such staff as are necessary for carrying out the work of the charity. The charity may employ or remunerate a director only lo the extent il is permitted lo do so by article 7 and provided it complies with the conditions in that article. lo deposit or invest funds., employ a professional fund manager and arrange for the investments or other property of the charity lo be held in the name of a nominee in the same manner and subject lo the same conditions as the trustees of a trust are permitted to do by the Trustee Act 2000., and lo provide indemnity insurance for the directors in accordance with, and subject to the conditions in, section 73F of the Charities Act 1993. 2.2.4 Governance The Trustees of Five Lamps Organisation retain overall oversight of the strategy and operations across the whole organisalion. Whilst FLT has its own Board of Directors, the Trustees relain oversight of ils activities and oullurns. During 2021122, the Trustees entered into an Upstream Loan agreement with FLT and subsequently agreed to ringfence former FLT activity into a specific Charity account held with Unity Bank. This account has been securilized lo the Social Investment Funders. This ensures a like for like arrangement lo that entered into since 2018. At the same time, it protects the Charitable activities and liquidity. Five Lamps Trading IFLTI has its own Board of Directors and presents a Directors report to accompany the fi'nancial slatemenls. The report is included within the Trustees Statement. The Board of FLT also includes a non-execulive Director appointment for both Tranche A and Tranche B Social Investment Funders. Due lo the A noleholders not nominating a Director to the Board, since 31 sl March 2022, the Trustees and Directors agreed lo an additional Observer arrangement rolaling be￿een the relevant A noleholders. This strengthens governance and builds effective partnerships and transparent management of risk and opportunity. The Governance structure also includes an Audit & Risk Committee with delegated responsibility for the Charities Risk Register and matrix,. as well as ensuring the delivery of the Organisalion's audited accounts and fi'nancial slatemenls. Due lo Covid19 and current economic uncertainty, this Committee is delegated to scrutinize and ensure the robustness of the organisation's bad debt provision lo ensure il is sufficient lo mitigate risk and cover exposure. The Trustees are pleased lo confirm that following the one-off adjustment lo the 2020121 accounts and subsequent effective management, more than 360/0 of the loan book is provided for. Trustees have confi'dent that the charity could in the event of another major economic event, withstand a further 50/0 of the loan book being provided for. During 2021, the Trustees with financial support from the Social Investment Funders, commissioned an independent review of ils affordable lending activities and specifically the delivery and future viability of the loan note instrument and financial model underpinning the lending operations. This independent review gave assuran￿ that the charities approach lo bad debt provisioning and management of bad debts was robust and fit for purpose, with no recommendations for change. The review was commissioned to inform strategic decisions around the future of lending, Five Lamps Trading and the relationship with the Social Investment Funders. In April 2021, FLT suspended its new lending activity pending the review outcome. The preferred route was lo reconfigure FLT lo be able lo deliver al cost lending however Company Law did not support a move from a Limited Company with Shares structure lo either a Limited Company by Guarantee or a Cic (Community Interest Company). The risk and likelihood of delays in obtaining the required FCA permissions to lend in a new entity, the Trustees varied the Governance structure and inler-company relations to deliver lending within the charity, with ils relevant permissions. Page 5

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 In July 2021, an interim upstream loan was put in place be￿een FLT and FLO lo enable lending lo recommence. The full upstream and new lending structure took effect from November 2021. In December 2021, the Trustees amended the governance structure lo include a new Lending Committee. standing independent lo the FLT Board and reporting to the Trustees, this Committee has oversight of all lending activity, lending risk and is delegated lo ensure compliance with and delivery of the upstream loan agreement. The charities governan￿ structure enables effective decision making, scrutiny and risk management al the right level in the business. The Trustees are satisfied, following ils internal self-assessment, that the structure is more than fit for purpose to deliver against the Charity Commissions Trustees Responsibilities as well as lo discharge Companies House expectations. The addition of the new Lending Committee further strengthens this. Whilst all new lending activity currenuy sits within FLO, FLT remains able lo lend and deliver financial inclusion, within our slruclure. The established asset lock principal in FLT that ensures 1000/0 of profil is reinvested back into the business, either through increased personal lending andlor gift aid direct lo the Charity Ifor delivery of our charitable objectives and specifically financial inclusion) remains in place. Any forecast profil from the personal lending activities remains within the charity. 2.2.5 Board Purpose The Board of Trustees of the Five Lamps Organisalion and the Five Lamps Trading Board of Directors, purpose is lo ensure the delivery of ils aims and objectives and business plans by providing leadership, strategic direction, and challenge, and at the same time ensuring effective control and oversight of the business and ils operations whilst acting responsibly towards employees, stakeholders, and society. 2.2.6 Board Key Responsibilities Managing organisational performance and risk. To develop and review continually. the organisation's strategy, objectives, performance, slalutory compliance, and risk, ensuring the measurement of impact on our customers and communities. Leadership and strategy To lead the development of the Five Lamps. Vision, Values and Strategic Direction. strategic planning and implementation To create coherent, strategic plans and timetables, monitor performance and review outcomes and impact. Leading and delivering change To plan for slralegic, transformational change and continuous service improvement proactively and positively in The Five Lamps Organisation's service delivery. Business Finance Opportunity To assess and evaluate the key strategic, financial, and commercial opportunities and investment issues facing The Five Lamps Organisation, in the context of the complex political, economic, sociological, technical, and legal context in which it operates. Communication To promote the work of The Five Lamps Organisation lo a variety of external partners, stakeholders, and other parties. The Board employs the ServI￿S of a minute taker. Day to day responsibility for the provision of services and operation of the business rests with the Group Chief Executive. During the course of 2021122 the Executive team comprised of the Group Chief Executive, Director of Strategic Finance and the Director of Corporate Setvices. In August 2021, the Director of Corporate Setvices left the Page 6

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Charity. Two new roles were created and appointed to the Executive Team.. al Director of Conduit Operations and bl Head of Business Development and Assurance. 2.2.6 Related party relationships The Trustees and Directors have all filed nil returns confirming that there no related party transactions in the Charity. Two non-execulive Board Directors can be appointed lo the FLT Board from the Social Investment Funders in line with the loan instrument. One is in place and have a related party transaction in terms of the social investment loan and relevant loan note their Company, Big Issue Invest has in the Trading Company. IThe Security Trustee of the executed loan note instrument is also a non-execulive direclor.I 3.0 Risk Management The Trustees ensure risk identification and risk management are a key priority. The external events of the last few years have highlighted the exposure of significant risks outside the Trustees direct control. To ensure the Charity is best placed lo mitigate ongoing and future such risks, the Trustees have strengthened risk management to ensure lighter control and reporting on risks we can Influen￿ lo provide Confiden￿ and a cushion to deal with unexpected risks materialising. The Board of Trustees and the Directors of the Trading Company maintain a continuous review of the major risks to which each company, each service area and cost centre and the charity is exposed lo. Identified risks are included in a Risk Register and a Risk Management Matrix that, where appropriate, includes details of systems, policies, procedures, or new management actions lo control and miligale the impact of risk if it materialises. The governance structure includes an Audit & Risk Committee that has delegated responsibility for monitoring and ensuring management of the risk register and matrix as well as identifying and reporting new risks lo the Boards. During 2021122 the Scheme of Delegations and Internal Financial Controls were reviewed and updated and are now subject lo annual reviews as well as spot checks and internal testing. The Charity seeks to manage some of these risks through a range of Insurance cover. Our Insuran￿ cover spans public and employer's liabilty, professional indemnity, directors and Offi￿r'S liability, buildings and contents and specialist cover such as lift Installations and a climbing wall. These are all subject lo review and market testing on a regular basis with the latest review taking place in January 2022. Our insurance cover includes the following.. Cover Amount Insured PubliclProducts Liability Professional liability Management Liability Entity Defence Employers Liability £10m £2m £1m £250K £10m Our Insurance policies includes cover for Directors, responsibility, crime and cybercrime. Each Board identifies and agrees ils own risk management matrix that is then delegated to and updated and reviewed al each Audit & Risk Committee, which meets at least four times per annum. Currently there a 54 specific risks across the organisalion, which are being monitored and management actions taken to mitigate. The Executive Team review these monthly and a number are cascaded into operational risk management plans lo ensure a three lines of defence approach to risk management and governance. Risks identified across the business are reported lo the Audit & Risk Committee via the risk register. Page 7

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 A specific risk map is in place for our Home Care service. As well as PPE and other infection control challenges, this service is exposed to greater risks due to the clients we provide care lo, safeguarding issues as well as CQC regulatory and commissioning body requirements. The delay in the reform of Adult Social Care and the conclusion of the fair cost of care review has increased the financial and repulalional risk to the charity. The bespoke risk map and regular risk reviews has ensured that no major risk has malerialised. An internal staff led Health & Safely Committee meets regularly lo ensure statutory Complian￿ across all of our buildings. All Five Lamps sub-conlraclors must satisfy a health and safely check as part of a 12-monlh due diligen￿ check and update of all of their relevant policies and insurance schedules. The nature of our services, which often work with the most disadvantaged and marginalised groups, or with young and older people, ne￿Ssi1ate either of the levels of disclosure. All our staff appointments are subject lo satisfactory enhanced disclosure. 3.1 Covid 19 Pandemic In 2020121 a new risk for both the Charity and Trading Company was added 'Failure lo deal with the impact of COVID. Covid-19 has and continues lo significantly impact on Five Lamps and our customers. Al the start of the pandemic all of our services, excepting Homecare were temporarily moved to home working and amended risk registers were implemented for this. During 2022 the organisalion has returned to office-based working but implemented a hybrid working philosophy lo support colleagues and lo minimise the risk of spread of infection which disproportionately impacts on the business. Our home care Servi￿ was exposed to the greatest risk during Covid. As reported above, a standalone risk map was successfully implemented and managed during this lime. Conduit Loans, our personal lending product was significantly impacted. Revenue income was drastically reduced, and consumer market fell during periods of lockdown. The risk has been miligaled through the new lending model which includes an interest deferral and interest repayment schedule agreed with the Social Investment Lenders. All of this has been independently verified through the independent review concluded in August 2021. Subsequent to the year end, 31st March 2022 further agreement has been reached to waive interest to expedite the recovery of the lending model and lo redu￿ the risk to refinancing due in 2024125. The Trustees maintained a high level of governan￿ and oversight during the Pandemic, with Board and committee meeting held virtually with increased communication be￿een meetings and routine risk updates produced for Trustees and Directors. During the Pandemic, the Trustees ensured a comprehensive review of all major financial risks lo the charity including the independent review of lending, a growth strategy for homecare and a value for money review of all cost cenlres and service areas. The Trustees are pleased to report that as a result, all service areas excepting lending are now self-sufficienl or contributing lo a charitable service. 3.2 Emerying Risks Whilst in the recovery phase of the risk management plan, further new risks have emerged.. Cost of living crisis Customers.. given the nature of the charitable objectives, our customer demographic is significantly impacted by high inflation and cost of living pressures. This is changing how our customers access and pay for all of our services. Income & Fundraising.. Similar to other charities and VCSE'S, donations, fundraising and access lo charitable grants is become more challenging as people have less to give. Threats to the charity income streams has increased on the risk register Employment.. the cost of increasing pay, terms and conditions to reflect external market pressures. Energy Crisis As well as impacting on our customers and direcuy impacting on increasing financial exclusion, the inslabilily and cost of the energy market is directly impacting on the operating costs of the charity. Employment Risks As well as the risk of maintaining salaries commensurate with inflation, the current employment market is Page 8

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 deslabilising the organisation's workforce, with talented colleagues being recruited by other organisalions able lo pay premium rates and offer conditions of employment Five Lamps cannot match. As a small organisalion, higher than expected staff turnover has a disproportionate impact on the day-to-day operations and strategic progress of the charity. Bad Debt Risk All three of these new risks can, if not managed, negatively impact on the charities bad debt policy and provision. Following the one-off adjuslmenl to reflect the Covid-19 risk in 2020121, the routine monitoring, review and stress lesling of the bad debt provision has been comprehensively embedded across the business. Due lo the financial impact of Covid and other factors on the Charity's balance sheet and nel worth, the Trustees recognise that prudent and timely provisioning is essential as the cushion lo make relrospeclive amends becomes less. The approach lo bad debts that provides at the point of loan disbursal, has been independently evaluated and confi'rmed as fil for purpose and robust. During 2021122 the provisioning approach has been further developed and strengthened. With £2,087,779 provided at 31st March 2022 equivalent lo 35.40/0 of the loan book, the Trustees are satisfied that this is sufficient lo mitigate the risk of current exposure and the policy is sufficient lo mitigate the risk of increased exposure lo bad debts. Al the time of signing the Financial Statements and Accounts, Trustees revisited the current position., 370/0 of the group's loan book1£2,439,0001 is provided for and the balance of the loan book that was in place at 31st March 2022 is now provided for al 43.20/0 In addition, the following risks have been uplifted in the risk register.. Adult Social Care: the lack of funding lo cover the actual cost of care including paying a fair wage lo home care assistants is a major risk for the charity as staff turnover remains high as we lose colleagues to non-care employers who can pay more than the charity and offer guaranteed contracts. Regulation.. increased burden of regulation.. Pressures on CQC are widely reported however the increased expectation on care providers is a fi'nancial and regulatory risk FCA.. increased regulatory reporting plus requests for information and the new Consumer Duly., all of which place pressure on resource within the charity. Audits on compliance with external legislation are completed each year and we have strengthened the role of our Business Development and Assurance Manager, adding more emphasis on Risk and Assurance across the business. Continuous improvement audits of our HR policies and procedures throughout the organisation are routinely completed with specialist support from Croner Assist ensuring we remain compliant and working according to good practice. Whilst our HR activities are underwrillen by an employment indemnity, we also ensure we minimise the risk of any claims through regularly updates, training and briefings. 3.3 Quality Assurance & Statutory Regulators Five Lamps has a strong focus on service quality and compliance and has invested significantly as part of our risk management strategy and commitment to customer experience and social impact. In 2021122 a new role of Head of Business Development and Assurance was created and appointed to the Executive Team along wrth a Director of Conduit Operations. Both of these new roles have regulatory and statutory compliance embedded with a focus on quality- We are regulated by the.. Care Quality Commission ICQCI - Five Lamps is regulated by the Care Quality Commission for ils domiciliary home care services with registrations for al Five Lamps Home Care IEldon Slreell and bl Parkside Court Extra Care Scheme Financial Conduct Authority IFCAI - Both FLO IFCA Reference 656112) and FLT {FCA Reference 7918481 are aulhorised and regulated by the FCA. During the year there have been no regulatory breaches or adverse regulatory issues lo report with either body. The Domiciliary home care service is currently recorded as 'Good' following a CQC inspection in June 2021. Page 9

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 sin￿ the year end a separate CQC inspection was held at our Parkside Court Extra Care scheme. The initial assessment identified some areas 'Requires Improvement,, but this outcome remains under review. Five Lamps participated in an FCA Forbearance survey including some on site assessment and verification of our pro￿sseS and no areas of non or partial compliance were identified. 4.0 PRINCIPAL ACTIVITIES During the financial year, 2021122, the Charity continued to be disproportionately affected by continuing and longer than anticipated Covid-19 pandemic. This continued lo be a challenge for management and staff and delayed the planned financial recovery. We are proud to have sutvived the pandemic. We are proud lo have sustained the significant financial and social impact and be able to continue to deliver against all of our charitable objectives and strategic aims. Whilst the financial implications have been greater than inits'ally forecast, the Trustees have ensured the Charity is in the best possible position to rebuild ils financial strength and retain and build on its reputation both as a local charity invested in its local communities, and as a national charity playing a lead role in tackling financial exclusion and poverty premium challenges. Since our last Trustees Statement and Principal Activities, we have continued to punch above our weight and find new and innovative ways to complement what we already do to continue to deliver charitable ServI￿S and products. A few highlights are included below and will be accompanied by a 2020- 2022 Charity report including our next social impact report. 4.1 Five Lamps Organisation the charty We are ex￿ptIOnallY proud of the resilience and strength of the charity during these unprecedented limes achieved through the delerminalion our highly skilled and committed workforce. Five Lamps has been in existence for 35 years. We know the threat to viability many charities are facing. Despite the redU￿d net asset value in our group accounls1£75,299} this has been carefully managed throughout the year lo ensure maximum use of our assets lo deliver during the year and to plan for continued recovery and growth in future years. Since the year end, the balan￿ sheet position has changed due lo the agreement noted above. Had that agreement been in place al Balan￿ Sheet dale the nel assets would have been £491,508. Whilst il is disappointing this could not be included within the actual accounts as the decision was made post 31st March 2022, il does significantly improve our financial viability which will be evidenced in the 2022123 accounts. During 2021122 we received donations and grants of £381,520 which went direct into the delivery of servI￿s. The Trustees record their formal appreciation lo all our partners, organisalions and supporters who share our vision and determination lo continue lo be able to deliver charitable services and support in the future. 4.2 Youth Services Covid-19 resulted in the temporary closure of our bespoke youth services facility, The Youthy, as we could not deliver the much-needed face lo face engagement and support. The Trustees are pleased that with the support of furlough funding, we were able lo sustain all of the youth worker posts who retumed to work in September 2021 and have been instrumental in rebuilding the service. During lockdown we adapted and delivered services lo local young people in their communities with a particular focus on ICT support, food poverty and loneliness and isolation. Since re-opening, we have begun the implementation of our strategic objective lo revitalise The Youthy and as it moves into ils 21 st year to refocus it as a community hub. 4.3 Home Care & Health and Social Care Despite working in the most unique and unprecedented operating environment, against the backdrop of the risks associated with Covid-19, we are delighted that our commitment lo providing domiciliary home care lo support local people to live independently within their own homes and lo alleviate the pressure on both the NHS and social care services has been and continues lo be realised. Delivering more than 3000 hours of care and support is a significant achievement. Our Domiciliary Care team have pul our service users central al even al the most challenging limes, we have pulled the stops out to ensure personal care plans were maintained. As a charity, we went the extra mile lo ensure isolated and vulnerable service users had the support they needed. During the year, we were delighted lo maintain the Primary Care Provider status with Stockton on Tees Borough Page 10

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Council and now provide home care services across the South of Slocklon including Thornaby, Ingleby Barwick, Yarm and Eaglescliffe as well as spot contracts where we know we can provide the Servi￿ under the secondary provider status which was also retained. Similarly, we retained primary care provider for an Extra Care scheme at Parkside Court. We recognise the invaluable Importan￿ of training to ensure we have a skilled and professional home care workforce. In 2021, we invested into our in-house training service, which with the help of bespoke training rooms and role play service user environments, we have ensured all new colleagues complete an in -house training and induction programme and all existing home care colleagues have regular refresher training. This team also deliver bespoke Emergency First Aid at Work training lo the wider Charity team. The original vision for this service was to provide it for other organisations lo generate income bul also lo ensure a high standard of care provision across the area. Due to Covid, this did not materialise, bul il forms parts of our plans for 2022123. As a Charity, we commit lo 'Make People Matter,. This includes our colleagues as well as our service users. The Trustees are exceptionally concerned al the delays in tackling the health and social care crisis and specifically resolved the actual cost of care exercise to ensure care is paid for at the right price. Our partnership with stockton Borough Council has ensured we can put our care staff central, and we are grateful for their continued support & investment. In the meantime, the Trustees and Executive will continue lo lobby, and use lived experiences lo build a strong case for change and investment into social care and to tackle health inequality. In November 2021 we expanded and now have a spot contract with Middlesbrough Council. In addition to the home care services we provide, under our Health & Social Care remit, we also deliver.. A Hospitsl Discharge and Home from Hospital Service. This is a rapid care service supporting people on their discharge from hospital for up to 14 days while their primary provider package is being estsblished. End of Life Continuing Health Care. We provide end of life care lo service users within their homes, working with a team of professionals lo meet the care needs and wishes of Servi￿ users and their families Private home care packages for families who are not eligible for adult social care funded support bul still need support to live independently and safely. 4.4 Employability & Enterprise Our Employability and Enterprise Team deliver the Youth Employability Initiative which support 1 >29-year old's who are not in employment, education or training. Our experienced Advisors work with them to remove the barriers to employment to prepare them for the world of work or business enterprise. During the pandemic we adapted our setvice to continue lo deliver and supported 153 people into employment or self-employment making a positive impact to the Teesside economy. During the year our longstanding contracts with the Northeast Enterprise Agency Limited and Hartlepool Borough Council came to an end. We are delighted that in total 380 people received our support, with 148 going on lo employment or self-employment. 4.5 Helping Hands. We have been delivering the 'Helping Hand. scheme on behalf of Northeast local authorities for more than 12 years. During that time, we have assisted more than 860 households with a loan, mainly lo bring owner occupied properties up to a decent living standard as well as to renovate empty homes, undertake disabled facilities adaptations and lo support relocations due lo compulsory purchase. In 2021122 we provided this Servi￿ in Northumberland, North Tyneside, Gateshead, Sunderland, Hartlepool, Redcar & Cleveland, Slocklon and Darlington 4.6 Empty Homes The funding for this Empty Homes Community Grants Programme concluded in 2015 bringing 48 long term empty homes back into use across Durham and Darlington councils. Our balance sheet reflects that we own former purchase and repair properties, and our Statement of Page11

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Consolidated Financial Activities reflect the income. 4.7 Conduit Loans Conduit Loans is the brand name for our affordable personal loans. Both the charity and the trading company can operate under this brand. Since inception in 2018, the lending delivered ulilising the social investment loan notes of c£4.8m has been undertaken within Five Lamps Trading as a separate entity albeit owned by the 1009/0 shareholder, the Five Lamps Organisation, the charity. During 2021122 and following the independent review of our investor lending model and associated activity, il was agreed that FLT would no longer issues new loans although it would continue lo manage its existing loan book. A lolal of £2million was upslreamed from FLT to FLO via an Upstream Loan Agreement into a securilised and ring-fenced Unity Bank account where lending activity is now trading. Whilst the upstream agreement was be￿een FLT and FLO, the social investment lenders security Iruslee was paty to the Agreement. Five Lamps also agreed lo a variation lo the Debenture held over the Charity lo include a replication of the arrangements held in FLT for the new ringfenced account. The social investment lenders interest in the ringfenced account along with the loan book value of all loans disbursed from and collected into this account is secured through an identical charge over the asset. Historically, the Social Investment Funders required all lending went through the trading company,. this included historical lending and new opportunities delivered by the charity, including for example our Conduit Scotland activity. The standalone accounts for FLT no longer include any activity funded by the charity or other sources. Where FLO is delivering Conduit Loans in ils own right and using funds other than investor loan notes, these transactions all sit within the charity and outside the ringfence arrangements. During the year, the Trustees are delighted that, with support from the Scottish Government and £500,000 grant funding, the charity has been able to deliver lending to tackle financial exclusion and lo help alleviate the financial pressures on the charity. Whilst this has been slow lo take off, it provided an invaluable lifeline to continue lending and lo utilise overheads when the FLT lending was paused. We are delighted lo report that unlike many others, we have managed lo sustain the unprecedented pressures associated with delivering unsecured personal loans during a period of significant economic instability and reduced consumer confiden￿. Whilst these accounts evidence an operating loss on our lending activity that has depleted our nel asset value, we recognise that lending is a cash intensive business and relies on cash being disbursed lo generate the income and lo recycle cash for on lending. The Trustees planned and budgeted for a further operating loss in lending in 2022123 confident in the knowledge the file our statements in a stronger position for the future that will enable us lo manage the loss in advance of the profilabilily commencing in 2023124. This has been achieved as a result of our resilience, risk management and support from our Social Investment Lenders. The Trustees remain resolute in our charitable aim to continue to grow our affordable lending and financial inclusion aclivilies. This will be central lo our future activity, investment and plans for diversification as we respond to the worsening financial exclusion with millions of people unable lo access mainstream credit and experien￿ financial inequality 'poverty premium. and are vulnerable lo high cost or unregulated lending. Added lo this the impact of rising cost of living, more people are becoming financially excluded. Access lo ethical fi'nance is even more important during periods of national and personal economic uncertainly. Five Lamps is determined lo prove that our affordable lending activities are commercially viable and attractive for future investment and support alongside showcasing the invaluable social impact and positive difference a Conduit Loan makes. Key successes include.. £2,077,341 of loans were disbursed to 2,928 households in 2021122 generating a social impact of c£682k (calculate based on £225 per loan) Maintained and marginally improved loan collection and bad debt performance ensuring it does not exceed the maximum 160/0 threshold at any given lime. Ensuring Sign off of a new lending and financial model agreed with Social Investment Lenders to beller reflect customer demand and to support scale up and future growth. Page 12

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Made the Conduit Loan available on cost comparison sites, securing new partnerships for growth. Invested £50k to update our systems and processes and to develop our first and new Conduit Lending App that will give our customers increased control of their loan and enable us lo support customers lo repay their loan. 11 will also be used to enable different loan product applications to be made, assessed, disbursed and evaluated. 4.8 Partnerships & Social Investment Lenders Five Lamps does not and cannot work in isolation. The ongoing viability of the charity and our ability to deliver our charitable objectives is best achieved through partnerships and innovation. Our thanks go to our eight social investment lenders who have been supportive, patient and flexible as we have navigated the risks faced over the last few years. Similarly, our appreciation goes to Big Society Capital for the Covid Business Interruption Loan Scheme ICBILSI which enabled us to recover from the pause in lending and unexpected impact of an extended pandemic. As well as our financial partnerships, the Trustees recognise that everything we do in the charity is made better through partnerships ranging from partnerships with the local authority, with membership organisalions including Responsible Finan￿ and Calalysl, with other voluntary sector or charity groups such as Little Sprouts and consortia of charities including Cornerhouse, and Cultivate Tees Valley that work together with us lo deliver Youth Services across the Borough. In yet another challenging and Unpre￿dented year, partnerships have been pivotal and there are loo many to specifically mention bul the Trustees recognise the added value of each individual and organisalion. The Trustee Report is signed jointly by Patricia Chambers (Chair of Five Lamps Trusleesl and Vivienne Holmes Ivice Chairl. Five Lamps Trading: Directors Report to the Trustees and to accompany the standalone accounts for filing The principal activities of Five Lamps Trading Company IFLTI is affordable personal loans for those unable lo access mainstream funding and lo alleviate the impact of financial hardship Icharitable objecll. We are pleased to present our 2021122 Directors report to complement the Trustees report and to be included in the Five Lamps, Group Financial Statements. The Directors report provides an overview of business activity and accompanies the financial statements related to FLT registered with Companies House number 08029251. Five Lamps Trading is a separate company that sils as a subsidiary within the Five Lamps Organisalion and whilst a separate Limited Company with Shares, it is owned by the charity as the 1 OOQ/o shareholder. Ils activities are included in the Charities consolidated accounts and Trustees report. To comply with Company House requirements, the Directors also have to file the FLT accounts excluding the charitable activities. This Directors report serves both purposes. For those ac￿SsIng the FLT accounts via Companies House please refer to the full Trustees report at www.fivelamps.org.uk or the Charities Commission. 5.1 Business Activity 2021-22 Summary 2020121 has been an extraordinary year for Five Lamps Trading Limited. Significant slruclural and trading changes have been made lo.. Reduce the future losses from the lending activity Protect the charity against higher than expected reduction in ils nel worth Improve the potential of future refinancing in years, lime Adapt our lending product to meet the changing needs of customers including a higher APR rate lo increase eligibility and access. Agree a new strategic recovery and growth plan for Conduit Loans. By 31st March 2022, FLT had been reconfigured to only focus on affordable lending utilising the Social Page 13

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Investment Lenders loan notes of c£4.9m. Given the whole of FLT is held in security against the loan notes, all non-related activity is now managed within the Five Lamps Organisation charity. During 2020121 the Directors identified that the corporate structure of FLT as a Company Limited by Shares prohibited us from delivering true purpose of a Community Development Finance Institution and affordable loans as an allernalive to high cost short term lenders. The 2020121 review clearly identified that the current product was not covering the on costs to deliver the loan. other CDFI'S are able to offer loans with a representative APR higher than 1 OOQ/o With exemptions from the Financial Conduct Authority IFCAI. The FCA would not grant FLT an exemption as it is not a charity or Cic Icommunity Interest Company) even though it is solely owned by Five Lamps Oryanisalion, a charity and is subject lo a 1000/0 asset lock. The Directors along with the Trustees explored a range of options including setting up a new Cic or charity within the Five Lamps Organisation to ringfence the social investment lenders activity. This remains the preferred roule bul was not achievable within the timescale needed to protect the viability of the Charity and to stem losses. In April 2021, the Directors paused all lending within FLT to mitigate the risk. Together with the Trustees and the support plus some funding from the Social Investment Lenders, an independent review of FLT and specifically the lending model was commissioned. This concluded in July with the final report received in August 2021 which confi'rmed that the lending model and business strategy, with all ils relevant assumptions was fit for purpose. Subsequently a decision was taken to Upstream funds from FLT into FLO to replicate the investor relationship within the Charity and for all loans lo be disbursed by Five Lamps Organisalion. An Upslreaming Agreement for the sum of £2m loaned money from FLT lo FLT was enacted in November 2021. This is a no interest bearing loan. From August 2021 wth an initial upstream of £500k, lending activity previous managed in FLT was undertaken in FLO. Five Lamps Trading .' Collects and manages the existing loan book up lo 31.3.21. Accrues the liability and is responsible for the payment of investor interest Accounts for the Conduit staffing costs. Report to the Social Investment Funders on the combined value and operating performance of both entities.. FLT and the ringfenced activity in FLO. Five Lamps Organisalion.. Disburses and collects principal and interest from all new loans. Covers the majority of the delivery costs Provides a designated ringfenced bank account for all transactions and the management of the £2m upstream loan that is securitized lo the Social Investment Funders. Is obligated lo ensure that FLT has sufficient liquid funds lo discharge ils liabilities. FLO transfers cash lo FLO to maintain positive cash balan￿s. Produces the hybrid accounts lo enable the FLT Directors to report against the delivery of the Loan Note Instrument and against the new approved lending Irecovery model). Trustees monitor progress against the model and set maximum toleran￿S for risk appetite and loss. From a Social Investment lender perspective, they receive the same information. For the purpose of filing stalulory Accounts and Financial Statements, the accounts only include the activity contained within. The loss in FLT is presentalionally worse than the sum of both ringfen￿d activities and disproportionally worse than 2020121. At 31st March 2022, the FLT Board of Directors report a year end loss of £1,049,590 compared to £1,112,604. Had FLT been able to continue lo deliver lending, the loss for 2021122 would have been reduced lo £896,590. However, the surplus of £153,000 sils within the Five Lamps Organisation as a result of the changes resulting from negotiations with our Social investment Funders. Page 14

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 £2,077,341 of loans were disbursed to 2,928 households in 2021122 generating a social impact of c£682k Maintained and marginally improved loan collection and bad debt performance ensuring it does not exceed the maximum 160/0 threshold at any given lime. Ensuring Sign off of a new lending and financial model agreed with Social Investment Lenders to Lenders lo better reflect customer demand and lo support scale up and future growth. Made the Conduit Loan available on cost comparison sites, securing new partnerships for growth Invested £50k to update our systems and processes and to develop our first and new Conduit Lending App that will give our customers increased control of their loan and enable us lo support customers lo repay their loan. It will also be used to enable different loan product applications lo be made, assessed, disbursed and evaluated. The Directors also report that subsequent to the 2021122, the Tranche B Social Investment Funders have agreed lo waive their interest owing up to 31.3.22. Had this been agreed in the reporting year, the loss in FLT would have been £863,795 and on all of Social Investment Funder activity would have been £710,795 At the year end, the nel liability position of FLT was £2,104,758. These losses have been supported by the Board of Trustees Icharilyl in pursuance of ils longer term charitable objectives and lo mitigate the risk of the Social Investment Lender Debenture being evoked in the future. 5.2 Leadership Team During the year, the Executive team included the Group Chief Executive who is a Director of the company, a Director of Corporate Services and an Interim Strategic Finance Director. In August 2021 following the departure of the Director of Corporate Services, new roles were created al Head of Business Development and Assurance and bl Director of Conduit Operations. To complement the increased focus on strategic financial planning, these roles increased the focus on quality, risk management and delivery of a growth agenda for lending. The Directors continued lo ulilise outsourced support from Ellison Ray for their affordable lending and financial modelling expertise. 5.3 Future The Directors continue lo oversee the financial performance of the FLT company whilst noting il will continue lo deleriorale until such time as the loan notes are refinanced as the income and profit sils outside of the trading entity. In addition, the Directors will continue to oversee delivery against the Loan Note Instrument and the financial lending model as well as discharge its responsibility to report on covenant compliance. sin￿ the year end, the Directors as well as the Trustees have continued to engage with the Social Investment Lenders to secure more efficient ways to expedite recovery and lo generate profit in the last few years of the Loan Notes. The Directors would like lo thank all eight lenders for their flexibility and agreement reached lo deferral and reschedule interest payments from 2022 to 2025. Furthermore, the Directors expressly wish lo thank the majority B note lenders who have agreed lo waive the interest accrued to 31 st March 2022 lotalling £416,220 to improve the financial health and resilience of both FLT and lending. Finally, the Directors wish to thank the Board of Trustees who remain commilled lo personal lending and ils pivotal role in addressing financial exclusion and the poverty premium impacts having an inability lo ac￿SS mainstream credit has on the people and communities we support. The charity has invested significantly in FLT and lending and absorbed losses within the consolidated balance sheet. Covid-19 and the cosl-of-living crisis has directly impacted and pushed back the forecast lending profil by hvo years. With the support of Trustees and Social Investment Lenders, the lending business is now back on track to realise a profit in 2023124. Social Impact Reporting Five Lamps is passionate about ils ability to deliver and eviden￿ social impact. The planned 18-month social Page 15

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 impact report due in 2022 was delayed. A new communications strategy has been agreed along with investment into new roles a} Performance and Data analyst who will extract the data and evidence to showcase social impacts and bl Executive Support and Marketing offi.￿r who will work with the Chief Executive and Executive team to produce and publish a social impact report early in 2023. Whilst a formal document has not been published in the reporting year, social impact reports are provided lo our lenders on a monthly basis, and we publish good news stories and real examples of the difference our services and products have made to people's lives when supporting financial, economic or social inclusion. PLANS FOR THE FUTURE 7.1 strategic direction and future plans Five Lamps has a 35-year history of delivering and forging partnerships lo promote and deliver social. financial,. and economic inclusion and lo invest in the local communities particularly across Stockton on Tees and across Teesside. Nationally we are committed lo being a leading CDFI supporting financial inclusion high-cosl short term credit and l or the lack of access of affordable credit. We are committed to retaining and building on our heritage and using this experience to grow where our services and products can help change people's lives. We have a proven track record of being versatile and able to respond to new initiatives and opportunities and have become well placed al influencing and helping lo bring about change. Surviving the unprecedented challenges of the last few years and seeing the impact this has also had on individuals, families, businesses and communities we know that our charitable activities and services and needed now more than ever. With a clear and strengthened financial fooling, the Executive Team, Trustees and Directors share a renewed passion to build on our suc￿sSeS and innovate to improve social, economic and financial inclusion. In 2022123 we will be publishing our new 5-year Corporate plan which will revisit and expand on the priorities agreed for 2022 as follows.. Recognised brand and purpose for our charity. We know the services and products we provide are needed more now than ever. We plan lo ensure our brand and activities are beller marketed and well known. We will be creating a new Community Events position. Moving from charitable activities that are reliant on grant and other funding, we plan to build on and make our fundraising activities an integral part of what we do. Ensure our assets and value We will be consolidating our premises and assets lo build on the Eldon Street head office being the hub of the charity with the Youthy being the hub for youth engagement and inclusion. We have secured the purchase of Eldon Street and will be investing to strengthen ils value. Our people: we want to be an employer who people enjoy working with and want to work for A new cultural strategy is lo be implemented with the values of the organisation being updated and future proofed. We are reviewing our terms and conditions lo ensure where we are able to, we support our colleagues lo cope with increasing inflation, rising cost of living and increased lax and Nl contributions. Mental health and a healthy workforce are a priority for us to ensure that our staff are supported and happy in their work. Continue lo develop our agile working policy and support colleagues, where they can, to work flexibly and remotely, being trusted and accountable for their delivery and performance. Page 16

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Governance Recruit new Trustees with specific skills and experiences to help us deliver our vision, ensure the oversight and achievement of the future targets and to complement the existing Trustees, including a new Audit and Risk Chair. A review of the FLT Governance structure and Board of Directors as their terms of office come lo an end. A review of the governance structure across the Group lo ensure the right balance of focus and challenge is ￿ntred in the areas to best manage risk and support new opportunities. Financial Health & Resilience. We have survived some of the biggest challenges Five Lamps has ever experIen￿d. We want to build on this lo ensure we have reserves in the tank for the future and as well as being able to survive future risks and challenges, we are best place lo pursue new opportunities. Complete a financial health check and independent support on future refinancing and funding opportunities Ensure regular market and funding potential assessment lo ensure Five Lamps accesses and benefits from relevant funds and grants that complement our priorities. Undertake a value-added assessment of all of our functions and activities. Carbon Neutral We recognise the pressure and necessity to protect our planet and ensure its viable for future generations. As part of this, in 21122 we embark on our first assessment of our carbon footprint and impact we have on the environment and publish our plans for reducing our impact. We have started this through electric bikes for our care staff bul will be looking lo lake this further and al the same time explore initiatives that can support the customers and communities we serve with improved affordability as result of carbon neutral aclivilies. Digital Transfomiation. We plan lo ensure our ServI￿S and contracts are accessible via evolving digital channels and technology. We plan to develop a digital shift strategy to outline how we can become more effective through digital innovation and technology as well as improve the social, financial, and economic impact we make. Social Impact Everything we do is about delivering a positive social, financial, or economic impact and Making People Matter. This year we plan to showcase some of the brilliant work we have done and plan lo do and use this as a foundation and catalyst lo refocus and grow the Five Lamps Charity. STRATEGIC DIRECTION AND FUTURE PLANS Our Mission.. To Transform Lives, Raise Aspirations and Remove Barriers to Social, Economic & Financial Inclusion Our Business.. A nationally recognised charitable business working with excluded individuals and families in the most disadvantaged communities. Oelivered Through: Trusted Brand Quality Assured Services Making People Maller Superior Contract Performance Measured Social Impact Social Investment Skilled & Motivated Workforce Expanding Geographic Reach Revenue Generated via Stronger Balance Sheet Making People Matter Treating people with respect Releasing potential Page 17

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Keeping confidentiality Enabling and empowering people to help themselves Challenging self-perceplions and encouraging self-self-worth Ourvalues are: To make people matter, by releasing their potential and encouraging self-worth Perfomiance matters, by achieving targets and meeting quality standards Quality matters. by assuring quality and achieving contemporary quality standards To make communities matter, by understanding neighbourhoods and their needs including everyone Measuring impact matters. by collecting social and economic data across the full range of our business and producing an annual Social Impact Report OISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who are Trustees al the lime when this Trustees, report is approved has confirmed Ihal.. so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information. AUDITORS The auditors, Armstrong Watson Audit Limited have indicated their willingness lo continue in offi￿. The Designated Trustees will propose a motion re appointing the auditors at a meeting of the Trustees. This report was approved by the Trustees, and signed on their behalf by.. P Chambers Trustee V Holmes Trustee 20112122 20112122 Page 18

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022 The Trustees (who are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees, Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to". select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP IFRS 1021., make judgments and accounting eslimales that are reasonable and prudent", stale whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial ststemenls., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 19

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE FIVE LAMPS ORGANISATION Opinion We have audited the financial statements of The Five Lamps Organisation (the 'parenl charitable company'l and its subsidiaries (the 'group'l for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the slate of the Group's and of the parent charitable company's affairs as at 31 March 2022 and of the Group's incoming reSoUr￿S 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. 8asls for oplnlon We conducted our audit in accordance with International Standards on Audits'ng IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the Auditors, responsibilities for the audit of the financial ststemenls section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wrth these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons relatlng to golng concern We have nothing to report in respect of the following matters in relation to which the ISAS IUKI require us to report lo you where.. the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate., or the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubl about the Group's or the parent charitsble company's ability to continue to adopt the going concern basis of accounting for a period of al least ￿e1ve months from the date when the financial slalements are aulhorised for issue. Page 20

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE FIVE LAMPS ORGANISATION ICONTINUEDI 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 Auditors, Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicilly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misslaled. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required lo report that fact. We have nothing lo report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given In the Trustees. Report including the Strategic Report for the financial year for which the financial statements are prepared is consislenl with the financial statements. the Trustees, Report and the Strategie Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our kn￿edge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, Report including the Strategic Report We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement 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. Page 21

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE FIVE LAMPS ORGANISATION ICONTINUEDI Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such intemal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Group's 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 altemalive but to do so. Page 22

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE FIVE LAMPS ORGANISATION ICONTINUEDI Auditors. responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo delect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below.. Our approach lo identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows". the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills lo identify or recognise non-compliance with applicable laws and regulations, we identified the laws and regulations applicable to the company through discussions with directors and other management. and from our commercial knowledge and experience of the sector the company operates in,. we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, and identified laws and regulations were communicated within the audit team regulady and the team remained alert lo instances of non-compliance throughout the audit. We assessed the susceptibility of the financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by." making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud", and considering the internal controls in place to mitigate risks of fraud and non•compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we". performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries lo identify unusual transactions", and assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias. In response to the risk of irregularities and non•compliance with laws and regulations, we designed procedures which included, but were not limited lo". agreeing financial statement disclosures to underlying SLJPPOrting documentation,. and enquiring of management as to actual and potential liligalion and claims. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al. www.frc.or .uklauditorsres onsibililies. This description forms part of our Auditors, Report. Page 23

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE FIVE LAMPS ORGANISATION ICONTINUEDI Use of our report This report is made solely to the charitable company's members, as a body, in accordance wth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those matters we are required lo stale lo them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and ils members, as a body, for our audit work, for this reFX)rt, or for the opinions we have formed. Simon Tumer (Senior Statutory Auditor) for and on behalf of Armstrong Watson Audit Limited Chartered Accountants & Statutory Auditors Northallerton Dale.. 2111212022 Page 24

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Unrestricted funds 2022 Restricted fund$ 2022 Total fund$ 2022 Total funds 2021 Note Income from: Donations and1￿8cleS Charitable activities other trading activities Investments 258,942 1,560,649 480.564 25.696 719,588 258,942 1,587,877 480.564 25.736 776,470 610,227 1,460,405 7,520,874 19,700 614,488 27,228 40 56,882 Other income Total incomo Expenditure on: Raising funds Charitable activities Exceptional expenses 3,045.439 84.150 3,129.589 4,225,694 77.282 3,571,218 77.282 3,832,206 97,610 3,870, 182 774, 796 260,988 Total expendlture 3,648.500 260.988 3,909.488 4,682,588 Net movement in funds before other recognised gains Other recognised gains: Gains on revaluation of fixed assets {603.0611 {176.8381 {779.8991 (456,894) 240,000 240,000 Net movement In funds {363.0611 {176.8381 {539.8991 (456,894) Reconciliation of funds.. Total funds brought forward Net movement in funds 101.460 {363,0611 513.667 {176,8381 615.127 {539,8991 1,072,021 (456,894) {261.6011 336.829 75.228 615,127 Total funds carried foNiard Page 25

20/12/2022 Pat Chambers (Chair) and Vivienee Holmes (Vice Chair)

20/12/2022

20/12/2022

Pat Chambers (Chair) and Vivienne Holmes (Vice Chair)

~~20/12/22~~

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Cash flows from operating activities Nel cash used in operating activities 1382,128) 48,450 Cash flows from investing activitios Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Nel movement in loan book 330 (7,676) 600,361 (22,484) 446.621 Net cash provided by investing activities 424,137 593.015 Cash flows from financing activities Cash inflows from new borrowing 751,280 Net cash provlded by flnanclng actlvltles 751,280 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 42,009 1,392,745 1.917.915 525, 170 Cash and cash equlvalents at the end of the year 1,959,924 1,917,915 The notes on pages 29 to 57 form part of these financial statements Page 28

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 General infomiation The principal accounting policies adopted, judgements and key sources of eslimalion uncertainty in the preparation of the financial statements are as follows.. Accounting policies 2.1 Basis of preparatlon of flnanclal statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Five Lamps Organisalion meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise ststed in the relevant accounting policy. The Consolidated Ststemenl of Financial Activities ISOFAI and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented ils own Statement of Financial Activities in these financial ststemenls. 2.2 Company status The company is a registered charity and company limited by guarantee. The members of the company are the Trustees named on page . In the event of the company being wound up, the liability in respect of the guarantee is limited lo £1 per member of the company. The company is a charitsble company domiciled in England and Wales, registration number 02441319 and charity number 702314. The registered office is Eldon Street, Thomaby, Slocklon-on-Tees, TS17 7DJ. 2.3 Golng concern The Trustees have prepared the financial ststemenls on a going concern basis. This is having taken account of the historic losses of the group I company as well as covenant waivers in the year. In reaching their conclusion the Trustees have considered cash flow forecasts up to al least 31st March 2024 and considered monthly and quartedy trends and at all times, cash is expected to remain above £500k and therefore able to withstand any delays or changes to income. Trustees have considered the forecasts for both FLO and FLT including ringfenced lending activity and subject these to challenging sensitivity tests around income. All of these tests can be mitigated and l or ensure cash balances do not fall below £200k minimum level. None of these tests would create a loss that would result in a negative net asset. The Trustees are satisfied of the going concern status., as the assumption in the lending model, previously a cause for uncertainty have been independently validated in the year and reported as reasonable and feasible. This has given the Trustees enhanced confidence in the forecasts to deliver improving nel assets over the next two operating period 22123 and 23124. Page 29

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl 2.4 Taxation The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets the definition of a charitable company for UK COfFX)ration tax purposes. Accordingly, the company is potentially exempl from taxation in respect of income or capital gains received wthin categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 2.5 Incoming resources Income lax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is reC(￿niSed in the period in which il is receivable and to the extent the goods have been provided or on completion of the service. lil Grants and Donations.. Income from grants and donations, including capital grants, is included in incoming resources when receivable, except as follows". lal When donors specify that donations and grants given to the Charity musl be used in future accounting periods, the income is deferred until those periods. Ibl When donors impose conditions which have to be fulfilled before the Charity becomes entitled to use such income. the income is deferred and not included in incoming resources until the pre conditions for use have been met. When donors specify that grants and donations, including capital grants are for particular restricted purposes, which do not amount lo pre conditions regarding entillemenl, this income is included in incoming resources of restricted funds when receivable. Investment Income Investment income is included when receivable by the Charity. Fees and Similar Income Fees receivable and charges for services provided and for the use of premises are accounted for in the period in which the service is provided. Commercial Trading Operations Income from commercial trading operations is included in the period in which the group is entitled to receipt, and comprises the turnover of the trading subsidiary including rental income from external sources. 2.6 Resources expended Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable activities and governance costs are costs incurred on the company's educational Page 30

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl 2.6 Resources expended {continued) operations, including support costs and costs relating lo the governance of the company apportioned to charitable activities. Resources expended are accounted for on an accruals basis, inclusive of any VAT which cannot be recovered. Expenditure on grants is recorded once there is an unconditional commitment lo pay the grant or the grant has been paid, whichever is the eadier. Certain expenditure is directly attributable to specific activities and has been apportioned to the costs of those activities as follows". Management and administration costs- by reference to the total income generated by each project. Staff costs- by reference lo the estimated lime spent by staff on each project. Premises costs and office costs- by reference to the estimate floor space land related room rental value) occupied by each project. Expenditure on charitable activities is incurred on direclly undertaking the activities which further the Group's objectives, as well as any associated support costs. 2.7 Fund accounting General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Designated funds comprise unreslricled funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements Restricted funds are funds which are to be used in accordance with specific reslriclions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial slalements 2.8 Tangible fixed assets and depreciation Tangible fixed assets costing £500 or more are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying valLJe of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial aclivilies. Tangible fixed assets are initially recognised al cost. After recognition, Ljnder the cost model, tangible fixed assets are measured al cost less accumLJlaled depreciation and any accumulated impairment losses. All costs incLJrred lo bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Page 31

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl 2.8 Tangible fixed assets and depreciation Icontinuedl Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straighl-line method. Depreciation is provided on the following bases.. Freehold propety Long-term leasehold propety 20/0 Straight line Straight line over term of lease or 2¥0 slraighl line 25D/D straight line 25D/D straight line 25D/D straight line 25D/o straight line Plant and machinery Motor vehicles Fixtures and fittings Office eqLJipmenl 2.9 Other investments Fixed asset pr(￿raMMe related investments (loan bookl are accounted for on the basis of estimated net realisable valLJes li.e. capital amounts recoverable) at each balance sheet date. Interest receivable on these investments is recognised within the Statement of Financial Activities when earned. Programme related investments are reviewed al least annualty for impairment, an adjustment is made lo provide for amounts considered to be irrecoverable, but only once normal recovery procedures have been followed and no further repayments have been made. Other fixed asset investments are stated al cost. Current asset investments are staled at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses on revaluations and disposals throughout the year lil Associated undertakings Investments in unlisted investments are stated at cost less impairment. 2.10 Investment properties Investment properties whose fair value can be measured reliably wlhout undue cost or effort shall be measured at fair value recognised in profil and loss 2.11 Operating leases Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term 2.12 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company", this is normally upon notification of the interest paid or payable by the Bank. 2.13 Debtors Trade and other debtors are recognised al the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Page 32

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl 2.14 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.15 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates il will pay to settle the debt or the amount it has received as advanced payments for the goods or services it musl provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the lime valLJe of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost 2.16 Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and SLJbsequenlly measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.17 Significant judgements Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed lo be reasonable under the circumstances. The loan book is reviewed on an annual basis for impairment based on an expectation of recoverability of the OLJtstanding balance. 2.18 Pensions The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. 2.19 Fund accounting General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific reslriclions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and Ljse of each restricted fund is set out in the notes lo the financial statements. Page 33

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Critical accounting estimate$ and areas of judgment Management consider there to be an element of judgement and uncertainty in determining the carrying value of the loan debtor book. Accordingly management has assessed the performance of each debtor based on available financial and management information. Where that information shows a net realisable value less than carrying management recognise an impairment against said asset accordingly. The management team routinely monitor and review loan debtors and investments on a monthly basis and present to the directors on a quartedy basis for consideration. Provision for identified recovery issues are made on a case by case basis with additional provision to reflect historic loss rate experience. The Trustees have undertaken sensitivity analysis on Groups net assets and its ability lo withstand further macr(Feconomic impacts. An increase in the provision equivalent lo 50/0 of the gross loan book Ic£295kl would not prevent the Charity from retaining ils going concern and continued viability. As at December 2022, an extraordinary addition lo the balance sheet would change the Group's net assets to c£200k. Income from donations and legacies Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Donations and other voluntary income 258,942 258,942 Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Donations and other voluntary income 24,159 586,068 610,227 Income from charitable activities Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Health and communities Finance and enterprise Young people 1,460,339 100,310 1,460,339 127,538 27,228 Total 2022 1,560,649 27,228 1,587,877 Page 34

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Income from charitable activities {continued} Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Health and communities Finance and enterprise Young people 7,224, 192 7,224, 192 191,602 44,611 191,602 44,611 Total 2021 7,224, 192 236,273 7,460,405 Investment income Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Ga￿ge rental income Cafe rental income other income Interest income 5,225 13,533 6,934 5,225 13,533 6.934 40 25,696 40 25.736 Unreslrict&d funds 2021 Restricted funds 2021 Total funds 2021 Garage rental income Cafe rental income 5, 700 5, 700 14,000 14,000 5, 700 14,000 19,700 Page 35

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Other incoming resources Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Furlough income Interest generated by programme related investment (loan debtor bookl Grant income Bad debts recovered 79,536 79.536 430,484 207,296 2,272 13,176 43,706 443.660 251,002 2,272 719,588 56,882 776.470 Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Interest generated by pr(￿raMMe related investment (loan debtor bookl Grant income Furlough income Other income 36,839 96,786 66,502 212 36,839 363,905 213,157 587 267,719 146,655 375 474,749 200,339 674,488 Analysls of expendlture on charltable actlvltles Summary by fund type Unrestrlcted Restrlcted funds funds 2022 2022 Total funds 2022 Management and administration Finance and enterprise Depreciation re properties 3,522,355 222 5,180 255,828 3,527,515 256.050 48.641 48,641 3,571,218 260,988 3,832,206 Page 36

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Analysis of expenditure on charitable activities Icontinuedl Summary by fund type Icontinuedl Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Management and administration Health and communities Finance and enterprise Young people Depreciation re properties 2,236,64T 654,358 402,268 2,236,64T 882,413 605,976 99,818 45,328 228,055 203, 708 99,878 45,328 3,338,601 531,581 3,870, 182 Exceptional items Total funds 2022 One off bad debt provision In the current accounting year there is no exceptional item for bad debts as the provision has soley accrued in line with the Groups bad debt policy. Unrestricted funds 2021 Total funds 2021 One off bad debt provision 714,796 714, 796 Page 37

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Analysis of expenditure by activities Activities underLiken directly 2022 Support costs Total funds 2022 2022 Management and administration Finance and enterprises Depreciation re properties 2,977,936 256,049 48,641 549,579 3,527.515 256.049 48,641 3,282,626 549,579 3,832.206 Activities undertaken directly 2021 Support costs 2021 Total funds 2021 Management and administration Health and communities Finance and enterprises Young people Depreciab'on re properties 1, 742,069 882,414 605,975 99,818 45,328 494,578 2,236,647 882,414 605,975 99,818 45,328 3,375,604 494,578 3,870, 782 Page 38

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Analysis of expenditure by activities Icontinuedl Analysis of direct costs Mgmt and admin Young people 2022 Health 2022 Finance 2022 2022 Staff costs Premises costs General office costs Trading company expenses Grants payable to individuals to assist with Individuals Bad debts write off Publicity and advertising Activities costs Subscriptionslaffilialions Motor expenses Mobile phones Consultancylfacilitators fees 2,015,771 70,900 59,401 769,223 54,199 222 878 2,519 198,655 48 6,417 9,746 13,559 558 15,944 15,539 407 2,977,936 256,050 Total funds 2022 Dep'n 2022 Staff costs Premises costs 2,069.970 71.122 59,401 769,223 3.397 198,655 6,465 48,641 9.746 13.559 558 16,351 15.539 General Offi￿ costs Trading company expenses Grants payable to individuals to assist with individuals Bad debts write off Publicity and advertising Depreciation Activib"es costs Subscriptionslaffilialions Motor expenses Mobile phones Consullancylfacilitators fees 48,641 48,641 3,282,627 Page 39

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Analysis of expenditure by activities Icontinuedl Analysis of direct costs {continued} Mgmt and admi 2021 Young people 2021 Health 2021 FNnance 2021 Staff costs Premises costs General office costs Trading company expenses Grants payable to individuals to assist with Individuals Finance income and expenses Bad and doubtful debts 299, 785 28,477 26,850 623,064 802,680 7,846 12,133 518,112 1,048 4,321 75,221 17,888 2,618 1,233 7,829 29,038 2, 732 742,277 Publicity and advertising Training and accreditslion costs Activities costs Cafe and vending costs Subscriptionslaffilialions Motor expenses Mobile phones Other costs 31 42 290 1, 186 5,065 18,515 410 11,745 194 1, 155 5,100 11,968 2,176 9, 714 5,051 9,621 726 465 43,668 Consultancylfacilitators fees 1, 742,069 882,414 605,975 99,818 Page 40

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Analysis of expenditure by activities Icontinuedl Analysis of direct costs {continued} Total funds 2021 Depn 2021 Staff costs Premises costs General office costs Trading company expenses Grant payable to individuals lo assist with employment Finance income and expenses Bad and doubtful debts 7,695, 798 55,259 45,922 623,064 3,965 750, 106 29,038 363 Publicity and advertising Depreciation Training and accreditation costs Activities costs Cafelvending costs Subscriptionslaffilialions Motor expenses Mobile phones Other costs Consultancylfacililators fees 45,328 45,328 6,251 18,925 71,939 1,155 16,005 60,687 71,797 45,328 3,375,604 Analysis of support costs gmt and admin 2022 Totsl funds 2022 staff costs Premises costs General office costs Publicity and advertising Bank charges re loan funds Professional fees 406,416 5,295 1,588 85 12,621 123,574 406,416 5,295 1,588 85 12.621 123,574 549,579 549.579 Page 41

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Analysis of expenditure by activities Icontinuedl Analysis of support costs Icontinuedl Mgmt admi 2021 Total funds 2021 Staff Costs Premises costs General costs Publicity and advertising Bank charges Professional fees 426,098 4,283 22,197 229 426,098 4,283 22,197 229 6, 109 35,662 6,109 35,662 494,578 494,578 11. Auditors. remuneration 2022 2021 Fees payable lo the Company's auditor for the audit of the Company's annual accounts 16,000 16,000 12. Staff costs Group 2022 Group 2021 Company 2022 Company 2021 Wages and salaries Employer Nl Contribution to defined contribution pension schemes 1,856,170 150,309 1,903,415 126,838 1,509,220 121,306 1,502,295 96,729 44.718 45,569 37.597 37,033 2.051.197 2,075,822 1.668.123 1,635,457 Page 42

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Staff costs {continuedl The average number of persons employed by the Company during the year was as follows." Group 2022 No. Group 2021 No. Company 2022 No. Company 2021 No. Direct charitable work Administration 92 38 92 10 18 130 130 112 102 In the current and previous accounting year, no trustees received any remuneration, benefits in kind or reimbursement of expenses. As part of the main insurance taken out by this company, insurance is taken out to protect the trustees against any loss arising from neglect or default of its trustees and Offi.￿rs. One of the trustees was paid remuneration of £6,000 12021.. £6,000) in the year ended 31 March 2022 and this was paid by the subsidiary company. The remuneration paid was due to lo a Iruslee being a director of the subsidiary company, Five Lamps Trading Limited. Costs incurred in relation to key management personnel were £228,900 in total12021'. £173,837). The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. Group 2022 No. Gmup 2021 No. In the band £60,001- £70,000 In the band £80,001- £90,000 In the band £90,001- £100,000 Page 43

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THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 13. Tangible fixed assets Icontinuedl Freehold Land and Buildings This comprises the building known as The Youthy which was built primarily for the young people of Thomaby. Due to the unique design of The Youthy and the purpose for which it was built, there is no readily available method of arriving al a realistic market value. The unique natLJre of the building means that it is difficult lo value it on a normal commercial basis. The Youthy was valued in November 2011 at £500,000 for the purposes of securing bank facilities bul this figure is not considered to be appropriate lo use as the carrying value in the financial statements. An alternative method is lo measure its 'value in use, at an amount based upon expected futLJre cash flows, but this allemalive method is also considered not to be appropriate. One further altemalive, which is more relevant to this property. is to use replacement cost which exceeds the carrying value at 31 March 2021 of £551,00512021". £568,753). AII in all, it is considered unlikely that The Youlhy will have suffered material permanent impairment in value since it was originally bLJiIt and, in the opinion of the Iruslees, a carrying value based on original cost less depreciation continues to be appropriate for accounting purposes. At the end of the financial year the charity purchased the property known as The Five Lamps Centre which had been leased from Slocklon BoroLJgh Council for a total cost of £14,089. The property was revalued on PLJrchase giving rise lo a revaluation SLJrplus of £240,000. This property wll continue to be use for it management and adminislralion and the operation of various projects. Investment property Included in freehold land and buildings is an investment property valued at £32,500. In the opinion of the directors this is a reasonable estimate of the market value a131 March 2022. If investment properties had not been revalued they would have been included at the historical cost of £21,01412021. £21,0141. Leasehold Land and Buildings These comprise bNo a buildings from which the Charity rLJns part of its managemenu administration and various projects. The terms of the leases on these properties, over which the expenditure is written off, are as follows.. South Thornaby Community Resource Centre (Carying value- £86,51 $1 The current lease with Stockton Borough Council is for a period of 25 years from February 2000 and any expenditure is being written off over the remainder of that period. Page 46

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. Investment property Group Freehold investment property Valuation At 1 April 2021 32.500 At 31 March 2022 32,500 The investment property has been valued in the 2020 accounting year by Allied Surveyors & Valuers at £32,500 and the directors have reviewed these valuations and concur that it is based upon the key assumptions that relate to the investrnenl portfolio and their experience of the property market al the current balance sheet date. 15. Fixed asset investments Unlisted Loan book investments Total Group Cost or valuation At 1 April 2021 Additions 6.115,440 1,872,862 12,120,827} 14.000 6,129,440 1,872,862 2,120,827) Disposals At 31 March 2022 5.867.475 14.000 5.881.475 Impaimient At 1 April 2021 Charge for the year 1,943,491 198,655 1,943,491 198,655 At 31 March 2022 2.142.146 2,142.146 Net book value At 31 March 2022 3.725,329 14.000 3,739.329 At31 March 2021 4, 171,949 14,000 4,185,949 Page 47

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 15. Fixed asset investments Icontinuedl Investments in subsidiary companies Loan book Total Company Cost or valuation At 1 April 2021 Additions 850.002 2,257.723 1,872,862 1523,4851 3,107.725 1,872,862 {523,4851 Disposals At 31 March 2022 850.002 3,607.100 4,457.102 Impaimient At 1 April 2021 Charge for the year Unallocaled amounts 526.988 198,6S5 526,988 198,655 At 31 March 2022 725.644 725.644 Net book value At 31 March 2022 850.002 2,881.456 3.731.458 At31 March 2021 850,002 1, 730, 735 2,580,737 Principal subsidiaries The following was a subsidiary undertaking of the Company.. Name Company number Registered office or principal Principal aetivity place of business Five Lamps Trading Limited 08029251 Same as the The Five Lamps Organisation Lending and property management Class of shares Holding Included in consolidation Ordinary 1000/ts Yes Page 48

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 15. Fixed asset investments Icontinuedl The financial results of the subsidiary for the year were.. Name Income Expenditure ProfitllLossl I Surplusl (Deficit) for the year Net assets Five Lamps Trading Limited 480,564 11,530,1541 11,049,590> 12,104,7581 16. Debtors Group 2022 Group 2021 Company 2022 Company 2021 Due wlthln one year Trade debtors Other debtors Prepayments and accrued income Grants receivable 67,694 120,126 16.922 24,554 50,012 78,905 34,497 74,969 67,694 104,870 15.239 24,554 48,597 6,300 31,105 74,969 229,296 IT8,383 212,357 160,977 17. Current asset investments Group 2022 Group 2021 Company 2022 Company 2021 Listed investments 80 80 80 80 Group listed investments The market value of the listed Investments al 31 March 2022 was £8012021 '.£801. Company listed investments The market value of the listed Investments al 31 March 2022 was £8012021 '.£801. Page 49

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 18. Creditors: Amounts falling due within one year Group 2022 Group 2021 Company 2022 Company 2021 Trade c￿dItorS Amounts owed to group undertakings Other laxalion and social security Pension fund loan payable Other creditors 224,338 99,269 96,159 3,050,000 53.464 85, 749 852,276 43,057 62.123 1.517 488,368 69,165 50,208 1,689 637, 733 453,373 263,872 59,391 433,326 101,330 Accruals and deferred income 845.511 1,242,272 3.522.886 1,515, 738 The following liabilities disclosed under creditors due within one year are secured by the company.. Bank loans £Nil 12021.. £Nill. The bank and other loans are secured by various fixed and floating charges including a first legal charge over'The Youlhy,, Thornaby Road, Thornaby and the client loan portfolio. Page 50

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 19. Creditors: Amounts falling due after more than one year Group 2022 Group 2021 Bank loans Other loans Accruals and deferred income 500,000 4,812,500 628.555 320,088 4,824,219 5.941.055 5,144,307 The following liabilities disclosed under creditors due after more than one year are secured by the company". Other loans £4,812,50012021". £4,824,818) and are split between T￿nChe A Noleholders Icapitall and Tranche B Noteholders - £2,875,000 Icapitall. £1,937,500 The bank loans and other loans are secured by various fixed and floating charges including a first legal charge over'The Youthy,, Thomaby Road, Thornaby and the client loan portfolio. None of the other loans outstanding are repayable over five years. Page 51

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 20. Statement offunds Statement offunds- currentyear Balance at 31 March 2022 Balance at 1 April 2021 Gainsl ILo$sesl Income Expenditure Unrestricted funds General Funds 101,460 3,045,436 I3,648,5001 240,004 {261,6001 Restricted funds Finance and enterprise 513,667 84,110 {260,9881 336,829 Total of funds 615,127 3,129,546 I3,909,4881 240,1)44 75,229 Page 52

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 20. Statement of funds Icontinuedl Statement offunds- prioryear Balance at 31 March 2021 Balance at l Apnl 2020 Transfers in/oul Income Expenditure Unrestricted funds Designated funds Youth empowerment scheme Growih fund 556,293 1, 108,536 f556,293J (1, 108,536) 1,664,829 (1,664,829) General funds General Funds (164,940) 3, 189,074 (4, 151,007) 1,228,333 101,460 Total Unrestricted funds 1,499,889 3,189,074 14,151,007) (436,496) 101,460 Restricted funds Health and communities Employability and training Finance and enterprise Young people 57,201 (361,676) (27,093) (96,300) 170,854 {228,055) 361,676 744,468 121,298 (203, 708) (99,818) 573,667 74,820 1427,8681 1,036,620 1531,5811 436,496 513,667 Totsl of funds 1,072,021 4,225,694 (4,682,588) 615,127 Page 53

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 20. Statement of funds Icontinuedl Designated funds In prior years, the Trustees designated funds for the following purposes.. Youth Empowerment Scheme Growth FLJnd The Trustees have decided to release the designated funds back to the general funds lo enable maximum flexibility for the Charity to direct its resources to where the need is greatest. The Trustees will review this policy every year and designate funds when they see fit. Restricted Fund$ Health and Communities The charity operates a Homecare service, the Parkside Court Extra Care Scheme and several other related care services with private clients, NHS and local authorities. During the year to 31 March 2021 the Charity has benefitted from a number of grants to enhance this service and provide greater support during the COVID pandemic. Employability and Training In prior years the charity has operated Employability and Training activities. These activities are now complete and the transfer on the fund from unreslricled funds is lo clear a negative balance from an overspend on this activity in prior years. Finance and Enterprise The charity operates several Financial Inclusion and Enterprise Activities. The balance on the fund at 31 March 2021 includes £500k received from Social Investment Scolland. Young People The charity operates a variety of Youth Services from ils youth club "The Youthy and by outreach and community programmes. The transfer from general funds is lo clear the negative balance brought forward on the fund which is due lo overspends in prior years. Page 54

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 21. Summary of funds Summary of funds- current year Balance at 31 March 2022 Balance at 1 April 2021 Gainsl ILo$sesl Income Expenditure General funds Reslricled funds 101.460 513,667 3.045.436 13.648.500) 84,110 {260,9881 240,004 {261,6001 336,829 615.127 3.129,546 13,909.4881 240,044 75.229 Summary of funds- prior year Balance at 31 March 2021 Balance at l April 2020 Transfers in/oul Incomg Expenditure Designated funds General funds Reslricled funds 1,664,829 (164,940) 3, 189,074 (427,868) 1,036,620 (1,664,829) 1,228,333 436,496 f4, 151,007) (531,581) 101,460 513,667 1,072,021 4,225,694 (4,682,588) 615,127 22. Analysis of net assets betsveen funds Analysis of net assets betsveen funds - current year Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Tangible fixed assets Fixed asset investments 900,665 3,739,329 32,500 1,852,471 1845,5101 15,941,055) 900.665 3,739,329 32,500 2,189.300 {845,5101 15,941,055) Investment property Current assets Creditors due within one year Creditors due in more than one year 336,829 Totsl 1261,6001 336,829 75.229 Page 55

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 22. Analysis of net assets between funds Icontinuedl Analysis of net assets between funds - prior year Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Tangible fixed assets Fixed asset investments Investment propety Current assets Creditors due within one year Creditors due in more than one year 686,877 4,185,950 32,500 1,582,712 11,242,272) 15,144,307) 686,877 4, 185,950 32,500 2,096,379 (1,242,272) f5, 144,307) 513,667 Total 101,460 513,667 615,127 23. Reconciliation of net movement in funds to net cash flow from operating activities Group 2022 Group 2021 Nel expenditure for the year las per Statement of Financial Activities} 1779,899} (456,894) Adjustments for: Depreciation charges Decreasellincreasel in debtors Increase in creditors 48.696 {35,117} 384,192 45,327 10,283 449, 734 Net cash provided byllused inl operating activities 1382,128} 48,450 24. Analysis of cash and cash equivalents Group 2022 Group 2021 Cash in hand 1,959,924 1,977,915 Totsl cash and cash equivalents 1.959,924 7,917,915 Page 56

THE FIVE LAMPS ORGANISATION IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 25. Analysis of change$ in net debt At 1 April 2021 Cash flows At 31 March 2022 Cash at bank and in hand Debt due within 1 year Debt due after 1 year Liquid investments 1,917,916 11,6901 15,144.3071 80 42,009 173 1,959,925 11,5171 1168.193} 15,312.5001 80 3,228,001) 1126,011) I3,354,0121 26. Controlling party Throughout the year the Charity was under the control of the board. 27. Related party transactions The charity owns 1 OOQ/o of the share capital of Five Lamps Trading Limited, company number 08029251. Transactions be￿een Five Lamps and Five Lamps Trading Ltd during the year were as follows.. During the year Five Lamps Trading gifted £NIL 12021.. £Nill as a donation lo The Five Lamps Organisalion. 28. Assets and Liabilities held as an intemiediary agent - group and charity The Private Housing Financial Assistan￿ Programme was created lo help local authorities in the north east of England lo provide loans lo needy homeowners for the purpose of helping them lo improve their housing conditions. Five Lamps was appointed to manage the above Programme on behalf of 12 local authorities, using Sunderland City Council as the contracting authority. Five Lamps holds the relevant funds on behalf of the local authorities in a designated client bank account. This asset and the associated liability lo the local authorities are excluded from Five Lamps, Balance Sheet. There is a debenture agreement dated 12 October 2010 in favour of Sunderland City Council solely in respect of these funds. This debenture does not apply lo any other Five Lamps assets. At 31 March 2022, the funds held on the above client bank account lolalled £1,391,969 12021.. £1,421,374) and this is returnable lo the local aulhorilies. The accounting for these assets and liabilities are presented in notes 15,18 and 19 within these financial slalements. Page 57